New Soy Processing Plant to be Built in Norfolk, Nebraska
A new, state-of-the-art soybean crushing plant will be built in Madison County near Norfolk, NE, pending state and local approvals. “This will be the first modern soybean processing facility to begin operations in Nebraska,” said Nick Bowdish, president and CEO of N Bowdish Company LLC, which develops value-added projects for the ag sector.
Groundbreaking on the 480-acre site is slated for the spring of 2022, added Bowdish, who is spearheading the development of Norfolk Crush, LLC. He is also helping lead the development of Platinum Crush, a new soybean crush plant in Buena Vista County, Iowa, where construction begins next month.
Norfolk Crush will own the new Nebraska facility, which will cost approximately $375 million to build. The plant will crush 38.5 million bushels of soybeans annually, or 110,000 bushels daily. It will also create 50 to 55 high-quality jobs.
Norfolk Crush has selected Fagen, Inc. to be the engineering, procurement and construction (EPC) contractor for the plant.
“Fagen, Inc. is excited to work with Nick Bowdish on another fantastic project,” said Chris Howard, president and CEO of Fagen, Inc. “The Norfolk area is a great location for a soybean crush facility, which will make a lasting, positive impact on the region.” When discussions for the project began last summer, the Fagen team expected the project to move quickly, Howard said. “In October of 2021, we began engineering efforts and secured the major equipment required to meet the planned mobilization date and to bring the plant operational in 2024.”
The Nebraska Central Railroad Company and Union Pacific Railroad will serve Norfolk Crush. “Union Pacific is proud to partner with Norfolk Crush to serve Nebraska’s ag community with service from the new soybean crush facility,” said Jason Hess, Union Pacific vice president of marketing and sales bulk. “Our network provides access to domestic and export markets, giving Norfolk Crush flexibility to compete globally.”
“All of us at the Rio Grande Pacific Corporation, and more specifically, our subsidiary railroad the Nebraska Central Railroad Company, want to applaud Norfolk Crush, LLC for selecting Norfolk, Nebraska, as a site for their new soybean crushing facility,” said Michael Haeg, Rio Grande Pacific Corp’s vice president of marketing and sales. “We fully recognize that they had several options to choose from in selecting a location for this new facility. They will be a terrific partner with the City of Norfolk, as well as neighboring soybean producers, who will have a new value-added outlet to market their future soybean production.”
Projects like Norfolk Crush will help Nebraska remain an agricultural powerhouse. “The driving force behind our success is the hard work of innovators and leaders like Nick,” said Nebraska Governor Pete Ricketts. “Under his leadership, value-added projects have enhanced our agriculture sector by better enabling our farmers, ranchers, and feeders to do what they do best: feed and fuel the world. Norfolk Crush will be a great addition to support our soybean production in the state.”
Norfolk Mayor Josh Moenning said the community is excited about this significant investment in Norfolk and Madison County. “This value-added ag venture not only creates great jobs in and around our community, but it provides area farmers with additional market options by preparing products for use in rapidly growing national markets like renewable diesel. It’s agricultural investment that will benefit Norfolkans and northeast Nebraskans for years to come.”
Norfolk Crush, by the Numbers
Norfolk Crush will produce 847,000 tons of soybean meal per year (2,420 tons per day) for livestock feed markets, 450 million pounds of crude soybean oil per year (1.28 million pounds per day), and 77,000 tons of pelleted soybean hulls per year (220 tons per day). The soymeal and soy hulls (which contain highly digestible fiber) will be used in livestock feed rations.
Soybean oil from Norfolk Crush can be used for a variety of applications, including the rapidly expanding renewable diesel industry.
Norfolk Crush will be able to unload trucks at 60,000 bushels per hour, saving farmers and truckers a great deal of time when they deliver soybeans to the plant.
“A modern crush plant is a farmer’s dream,” said Craig Ebberson, who farms in the Belden area. “Our closest plant is an hour away, and it’s notorious for having 3- to 4-hour waits. Norfolk Crush will increase demand for soybeans in our area, adding more profit potential. I’ve experienced first-hand the positive impact of doing business with facilities under Nick’s leadership. His hands-on approach makes the difference.”
Midwest Soybean Gall Midge Webinar Series
Register Now - Feb. 15th and 22nd at 10 am CT
Since its discovery as a new species in 2019, soybean gall midge continues to be found in new counties across five states in the Midwest. For some growers, the presence of soybean gall midge had a significant impact on soybean yield. The persistence of this new pest in existing areas and its presence in new counties highlight the need to stay up-to-date on the latest research-based information.
Researchers from four midwestern states have developed a two-part webinar series consisting of several short talks with time for discussion. Growers, consultants, educators, and industry representatives are encouraged to join these free webinars. Registration is required and two CCA credits will be available.
On Feb. 15th, you can get the latest multi-state update on the distribution of soybean gall midge, important scouting tips, and information on the ecology of soybean gall midge. Learn about data collected in 2021 on its distribution in a field as well as the challenges with insecticide applications.
On Feb 22nd, you can get first-hand knowledge on the ongoing and upcoming potential strategies for soybean gall midge. Knowing and understanding these strategies will be critical for the development of successful, long-term pest management for soybean gall midge.
Webinars will start at 10 a.m. CT. Go to soybeangallmidge.org and follow the link to register.
Ethanol Forum Invites National Speakers to Highlight Emerging Tech and Policies
Biofuels’ stakeholders and experts from across the nation will join the annual Ethanol: Emerging Issues Forum March 23-24 in La Vista, Nebraska, to explore cutting-edge innovations and tangible solutions being implemented by biofuels’ leaders, the agricultural sector, and political partners taking a clean-fuel approach to climate action and industry growth.
The Nebraska Ethanol Board and Renewable Fuels Nebraska organize the forum, which is in its 16th year. It brings together ethanol producers and others integrally involved in production, technology, policymaking and marketing of biofuels and its co-products.
We are covering a lot of exciting topics, including:
Ethanol’s role in environmental health & justice
Farming CI accounting & sustainability
Industry policy forecast
Carbon Capture & Sequestration, Sustainable Aviation Fuel, and other renewable chemicals
Innovative uses for ethanol and its co-products
Retailer market growth and more!
Registration and a detailed agenda are available at https://bit.ly/EIF2022. College and university students are welcome to attend at no cost. Early-bird registration closes Feb. 24.
The Ethanol: Emerging Issues Forum is presented by the Nebraska Ethanol Board and Renewable Fuels Nebraska with a range of local and national sponsors. Signature sponsors include Bio Nebraska, CoBank, Husch Blackwell, Kutak Rock, NAQS, Nebraska Corn Board, and Navigator Ventures, LLC. Supporting sponsors include American Coalition for Ethanol, CTE Global, Inc., Fluid Quip Technologies, Pacha Soap Co., Renewable Fuels Association, and USDA Rural Development. If you are interested in sponsoring this event, contact Amber.Rucker@nebraska.gov.
Volesky named interim director of Center for Grassland Studies
Jerry Volesky has been named the interim director of the University of Nebraska-Lincoln’s Center for Grassland Studies.
Volesky is a professor in the Department of Agronomy and Horticulture and a Nebraska Extension range and forage specialist at the West Central Research, Extension and Education Center in North Platte.
The mission of the center is the implementation of focused, interdisciplinary research, education and service programs and activities that emphasize the role of grasslands as a natural resource and enhance the efficiency, profitability and sustainability of grasslands and turfs. The annual Fall Seminar Series, the Nebraska Grazing Conference and the university’s prairies, such as Nine-Mile Prairie, are overseen by the center.
Two undergraduate degree programs, PGA Golf Management and Grassland Systems, are also administered by CGS.
“I am looking forward to the opportunity to serve in the role of Interim Director for CGS. My goal is to have the center continue the high level of success in fulfilling its mission and objectives,” Volesky said.
Volesky’s position is an equal split between conducting research and providing Extension programming. His work has been directly related to the center’s mission and has focused on grazing management and forage systems on native range and seeded pasturelands in the Nebraska Sandhills.
“To me, a very enjoyable part of my position has been the opportunity to conduct much of the research in the Nebraska Sandhills at both the Gudmundsen Sandhills Laboratory and the Barta Brother Ranch,” Volesky said.
Volesky’s Extension programming efforts have covered all aspects of rangeland, grassland and forage management. He has been co-teacher of the Nebraska Ranch Practicum, his signature Extension program, for over 20 years.
“I would say the most enjoyable aspect of my job has been being able to work directly with producers and landowners in helping them solve specific problems; and many times, being able to use results and knowledge gained from past research,” Volesky said.
High-Clearance Robotic Irrigation System to be Studied in Iowa
U.S. Department of Agriculture Secretary Tom Vilsack recently announced a $1.2 million award to fund a high-clearance robotic irrigation system that will eventually be used in Iowa. The project, which aligns nutrient application timing to a crop’s nutrient needs to improve efficiency and reduce nutrient loss, is a collaborative of Iowa State University, the 360 Yield Center and The Ohio State University.
Engineers with Iowa State University Extension and Outreach are directly involved with the project.
The initiative is one of 19 projects funded by the USDA under the Conservation Innovation Grants program. CIG is a competitive program that supports the development of new tools, approaches, practices and technologies to further natural resource conservation on private lands. These projects focus on helping agricultural producers mitigate the effects of climate change and increase the resilience of their operations.
“Innovation is key to addressing the climate crisis and conserving the natural resources we all depend on,” said Terry Cosby, chief of the Natural Resources Conservation Service. “CIG partners are using the latest science and research to come up with solutions that work for farmers, ranchers and foresters and help ensure the longevity of American agriculture.”
Agricultural engineering specialists with ISU Extension and Outreach will lead Iowa State’s research efforts. The team includes Daniel Andersen, Kapil Arora, and Matthew Helmers, as well as Kelvin Leibold, farm management specialist with ISU Extension and Outreach.
“This collaborative project between Iowa State University, Ohio State University and 360 Yield Center intends to demonstrate an innovative unified strategy of in-season application of commercial or animal nutrients along with water application to reduce nutrient losses while improving profitability with increased grain yields,” said Arora.
Andersen said, “This project on high-clearance robotic irrigation converges to find profitable solutions for the needs of present-day Iowa agriculture while protecting the environment.”
Additional researchers and industry collaborators will include Scott Shearer (Lead-Ohio State), Elizabeth Hawkins (Ohio State), John Fulton (Ohio State), Kevin King (USDA-Agricultural Research Service), Ramarao Venkatesh (Ohio State) and Justin Koch (360 Yield Center).
Naig Calls on Department of Justice to Expedite Cattle Market Investigation
Iowa Secretary of Agriculture Mike Naig today commented on the recent beef packer court settlement and the Department of Justice (DOJ) investigation into potential price disparities and anticompetitive practices in the live cattle market.
“Iowa’s hardworking livestock producers have waited more than two years while the DOJ investigates price disparities in the cattle market. With this court settlement, our cattle producers still do not have the market transparency they need to protect their long-term viability and continue raising the high-quality beef that processors and consumers demand,” said Secretary Naig. “It is imperative that the DOJ finish this investigation and release its findings to provide much-needed transparency for Iowa cattle producers.”
Farm Bureau Calls on DOJ for Update on Meatpacker Investigation
The American Farm Bureau Federation sent a letter today to Attorney General Merrick Garland, asking the Department of Justice to provide an update on its investigation into the meatpacking industry. The Department of Justice began an investigation after excessive volatility in the live and fed cattle markets caused by the COVID-19 pandemic in 2020.
“With over 80% of the fed cattle market controlled by only four major packing companies, we are concerned about the control these firms have,” AFBF President Zippy Duvall wrote. “We look forward to hearing from the Department of Justice regarding their investigation, so we can update Farm Bureau members and assure them that adequate government oversight is being conducted in the nation’s cattle markets, and that the markets remain fair for businesses, farmers and all American families.”
Farm Bureau asked for a written update on the volatility in the live and fed cattle markets within 90 days.
Soy Growers Celebrate House Passage of Biofuels Bill
The Iowa Soybean Association (ISA) commends the Iowa House of Representatives for the successful passage of House File 2128. The bill, as proposed by Gov. Kim Reynolds, would improve consumer access to biofuels and introduce new credits for higher blends of biodiesel.
Robb Ewoldt, ISA president and soybean farmer from Davenport issued the following statement:
"The passage of the Governor’s Biofuel Access Bill by the Iowa House means continued investment in reliable, low-carbon biodiesel production and access is even closer to becoming reality.
“To increase the demand for homegrown soy and keep Iowa’s 40,000 soybean farmers in a position to succeed, expanding access to biofuels is essential. Legislation should continue to support our soybean growers by ensuring biodiesel remains a viable fuel option – especially if Iowa is to remain the national leader in its creation. Biodiesel production supports 13% of the per bushel price of soybeans, which equated to approximately $1.78 per bushel in 2021. It also reduces feed costs for livestock producers by $25 to $40 per ton.
“We commend the leadership of Gov. Reynolds, Speaker Grassley and Rep. Hein in bringing this important legislation to the forefront of this session. A special thank you to ISA’s dedicated board of directors and advocate members for their continued support of this critical legislation.
“With the bill now moving on to the Senate for consideration, Iowa soybean farmers are encouraged to voice their support by contacting their state senator today. We look forward to working with policymakers across the Senate to continue improving consumer access to biofuels.”
Nominate for the 10th Annual Iowa Farm Environmental Leader Award
Iowa Gov. Kim Reynolds, Lt. Gov. Adam Gregg, Secretary of Agriculture Mike Naig and Department of Natural Resources Director Kayla Lyon invite Iowans to nominate individuals or families in their communities for the 10th Annual Iowa Farm Environmental Leader Award. Nominations will be accepted until Monday, May 2, 2022, to be considered for the 2022 awards ceremony held at the Iowa State Fair.
Farmers and landowners who invest in conservation practices, like cover crops or wetlands, and incorporate best management practices into their operations to improve and protect the state’s natural resources are eligible for the award. They must also actively serve as leaders in the agriculture community.
“Iowa farmers are known for leading by example,” said Gov. Reynolds. “Generations of Iowa farmers have utilized practical conservation practices and have gone above and beyond to be good stewards of our land while feeding the nation. Every year, we get to recognize their efforts and thank them during the Iowa Farm Environmental Leader Awards and share their successful stories to inspire other farmers to adopt similar practices.”
“This year marks the 10th anniversary of recognizing farmers and landowners who are working to improve soil health and water quality in their farming operations,” said Secretary Naig. “They’re not only dedicated environmental stewards, but also leaders in their own communities by showing others how to do the same. These efforts are helping to positively impact our state and downstream.”
“It is important to recognize Iowans who lead by investing in conservation stewardship as part of their agriculture operation,” said Director Lyon. “Generations from now will benefit from the concerted effort these farmers and landowners have made today to protect Iowa's lands and waters while preserving Iowa’s proud agricultural heritage.”
An appointed committee representing both conservation and agricultural groups will review the nominations and select the winners. The recipients will be recognized on Wednesday, Aug. 17, 2022, at the Iowa State Fair. Gov. Reynolds, Lt. Gov. Gregg, Secretary Naig and Director Lyon will present the winners with an Iowa Farm Environmental Leader Award and a yard sign donated by Bayer.
Since the creation of the award in 2012, nearly 700 farm families have been recognized. The nomination form and a list of previous awardees can be found at iowaagriculture.gov/farm-environmental-leader-awards.
USDA Announces Appointments to the Cattlemen’s Beef Promotion and Research Board
The U.S. Department of Agriculture today announced the appointment of 35 members to serve on the Cattlemen’s Beef Promotion and Research Board. All appointed members will serve three-year terms beginning February 2022 and ending February 2025.
Newly appointed members are:
Nebraska – David W. Hamilton, Thedford; and Becky Potmesil, Alliance
Iowa – David C. Bruene, Kelley; and E. Michael Holden, Scranton
South Dakota – VeaBea Thomas, Harrold; and Laurie Johnson, South Shore
Kansas – Evan Lesser, Palco; and Larry W. Kendig, Osborne
Minnesota – Bill Post, Chandler
Missouri – Alfred Brandt, Linn
Arizona – Sine Kerr, Buckeye
Colorado – Constance Hass, Trinidad
Louisiana – John M. Thompson, Saint Francisville
Michigan – Monte J. Bordner, Sturgis
Mississippi – Janet Gent Parker, Seminary
New Mexico – Boe C. Lopez, Springer
North Carolina – Brian D. Warren, Newton Grove
Oklahoma – Angie Meyer, Okarche
Tennessee – Kristina Oldfield McKee, Lebanon
Texas – Wesley Ratcliff, Oakwood; Ernie A. Morales, Devine; Bilynn Johnson, Happy; and David Henderson, Tennessee Colony
Utah – John Y. Ferry, Corinne
Wisconsin – Arin Crooks, Lancaster; and Tammy Wiedenbeck, Lancaster
Wyoming – Gwen Geis, Gillette
Mid-Atlantic Unit – Creed Ward, Volga, West Virginia
Northeast Unit – Warren W. Nop, Middlebury, Vermont
Southwest Unit – Kristin A. McQueary, Elko, Nevada; Brandon VanderPoel, Visalia, California; and Cortney Blasingame-Lawrence, Woodlake, California
Importer Unit – Stephen Sothmann, Washington, DC; Jason Frost, Washington, DC; and Steven D. Hobbs, Great Falls, Montana
The board is authorized by the Beef Promotion and Research Act of 1985 and is composed of 101 members representing 34 States and 5 units. Members must be beef producers or importers of beef and beef products nominated by certified producer organizations. More information about the board is available on the Agricultural Marketing Service (AMS) Cattlemen's Beef Board webpage.
Minnesota Cattleman Becomes New NCBA President
Don Schiefelbein, a central Minnesota native, seedstock breeder and cattle feeder became the new NCBA president during the 2022 Cattle Industry Convention, held this week in Houston. Schiefelbein and his family operate Schiefelbein Farms, a diversified farming operation in Kimball, Minn.
“I’m very fortunate to have been involved in the cattle industry through several different avenues and have seen the positive results when people come together,” said Schiefelbein. “As NCBA’s incoming president, I will continue bringing people together for the benefit of the industry.”
The 2022 NCBA officer team, approved by the NCBA board of directors, took office at the end of this year’s convention. Todd Wilkinson of South Dakota was named president-elect and Mark Eisele of Wyoming was elected vice president. Nebraska rancher Buck Wehrbein was elected chair of the NCBA Policy Division and stocker/backgrounder Gene Copenhaver of Virginia was elected policy vice chair. Brad Hastings of Texas and Clark Price of North Dakota were elected as chair and vice chair of the NCBA Federation Division, respectively.
Before returning to the family farm, Schiefelbein served as the executive director of the American Gelbvieh Association, and previously worked for the North American Limousin Association after graduating from Texas A&M University. Schiefelbein has a long history of industry service, most recently in the role as chair of the Beef Industry Long Range Planning Committee. He has also held several positions on committees and the board of directors of the American Angus Association. In addition, Schiefelbein is a past president of the Minnesota Cattlemen’s Association.
As he looks to his year as NCBA president, Schiefelbein is serious about helping lead NCBA’s fight for policies and a business climate that supports cattle producing families. It’s all part of maintaining the opportunity to make a living on the land.
“To me, I just sit in awe of how many people have the opportunity to do something they love to do and would love to do every day with their family by their side,” Schiefelbein said. “There's just not many places in this world that gives you that opportunity.”
Schiefelbein plans to focus on several priorities, including ensuring NCBA members’ voices are heard as the organization continues to grow, uniting its membership and making sure NCBA is at the forefront of issues that impact the cattle industry to protect producer interests. He also plans to continue the organization’s focus on producer profitability and build upon the work in the sustainability space to create opportunities for members and their ability to pass on their operations to the next generation.
Engaging with the Cattle Industry at #CattleCon22
This week, the National Corn Growers Association (NCGA) participated in the Cattle Industry Convention & NCBA Tradeshow to engage with corn’s largest animal ag consumer, beef cattle. The National Cattlemen’s Beef Association Annual Cattle Industry and Trade Show, #CattleCon22, was attended by thousands in the ag industry, including representatives of the National Corn Growers Association who were on hand to talk about beef and corn’s sustainability story.
“The beef industry consumes over 1.25 billion bushels of corn annually,” said NCGA Market Development Director Sarah McKay. “It’s important for us to engage with our partners and talk to them about not only some of the exciting research and projects we are working on in the feed space but also the sustainable synergies between beef and corn production. We have a great story to tell in this space, and it’s important to continue working together to share that narrative.”
NCGA hosted a Learning Lounge session, “Sizzlin’ Sustainability: Meating Consumer Demand with Corn-Fed Beef,” through the Market Development Action Team’s (MDAT) sponsorship of the Cattlemen Education Series (CES). The panel covered corn and beef’s sustainability relationship and how it ties into the overall marketability of beef while also discussing how these efforts deliver return on investment for ranchers and Certified Angus Beef (CAB). Panel participants included Troy Schneider, Chairman for MDAT; NCGA Chairman John Linder; Nicole Erceg, Director of Communications at CAB; and the panel was moderated by Sarah McKay, NCGA Director of Market Development.
One out of four bushels of added corn demand is due to beef and pork exports, with the beef industry providing $5.7 billion in corn value. DDGS account for nearly 8% of total domestic corn usage.
NCBA Member Testifies on Cattle Industry Sustainability
Today, NCBA member and rancher Kim Brackett testified before the U.S. House Agriculture Subcommittee on Livestock and Foreign Agriculture on the cattle industry’s leadership in sustainability and conservation practices.
“Cattle producers are America’s original conservationists, and we work hard every day to ensure that we can pass our operations on to the next generation,” Brackett said. “Our family, along with cattlemen and women from across the country, are committed to remaining environmentally, economically and socially sustainable for generations to come.”
Specifically, Brackett pointed to the biodiversity benefits that come from ranchers’ land management practices, wildfire prevention and upcycling of nutrients provided by cattle grazing, and cattle producers’ continued focus on being good stewards of the land. Brackett’s testimony follows the August 2021 release of the producer-developed cattle industry sustainability goals. The goals include:
- Demonstrate the climate neutrality of U.S. cattle production by 2040.
- Create and enhance opportunities that increase producer profitability and economic sustainability by 2025.
- Enhance trust in cattle producers as responsible stewards of their animals and resources by expanding educational opportunities in animal care and handling programs to further improve animal well-being.
- Continuously improve the cattle industry’s workforce safety and well-being.
Brackett is a rancher based in southern Idaho. Currently, she is the chair of the National Beef Quality Assurance Advisory Board and president-elect of the Idaho Cattlemen’s Association. Previously, she served as chair of the Cattle Industry’s 2025 Long Range Plan Task Force.
USDA, DOJ Launch Online Tool Allowing Farmers, Ranchers to Report Anticompetitive Practices
Farmers and ranchers now can anonymously report potentially unfair and anticompetitive practices in the livestock and poultry sectors using an online tool the U.S. Departments of Agriculture (USDA) and Justice (DOJ) launched today. The launch of the new tool, located at farmerfairness.gov, will advance the goals of the Biden-Harris Administration’s Action Plan for a Fairer, More Competitive, and More Resilient Meat and Poultry Supply Chain, including by creating more competitive agricultural markets that are fairer to producers and consumers. As part of the agencies’ enforcement partnership, the agencies are signing an interagency Memorandum of Understanding to further foster cooperation and communication between the agencies and effectively process the complaints received through the portal.
“This new online tool will help USDA and the Justice Department address anticompetitive actions and create livestock and poultry markets that are fairer to our nation’s producers,” said Agriculture Secretary Tom Vilsack. “I encourage producers who are aware of potential violations of competition laws to submit information to the portal so we can take appropriate action to create more competitive markets in the agricultural sector.”
“When we talk about protecting competition in the agricultural sector, we are talking about whether a farmer or a rancher will be paid a fair and competitive price for their goods and labor. When we talk about protecting consumers in this context, we are talking about whether food will be affordable for everyone in America,” said Attorney General Merrick B. Garland. “Today’s launch of farmerfairness.gov – a one-stop shop to report potential violations of our competitions laws – will allow the Justice Department and USDA to collaborate early, enforce the law vigorously, and ensure economic opportunity and fairness for all.”
Complaints or tips will go through a preliminary review by USDA Packers and Stockyards Division staff and Department of Justice staff. If a complaint raises sufficient concern under the Packers and Stockyards Act or antitrust laws, it will be selected for further investigation by the appropriate agency. This action may lead to the opening of a formal investigation.
Users can submit information under their names or may submit anonymous complaints. If a complainant provides their personal information, DOJ or USDA staff will only contact them if additional information is needed. To submit an anonymous complaint, users can provide information about the potential violation without including their names or contact information.
For any information provided, DOJ and USDA will follow their respective Privacy and Confidentiality Policies found at: DOJ Confidentiality and USDA Privacy. Packers and Stockyards regulations regarding confidentiality also apply: PSD Confidentiality. DOJ and USDA commit to supporting relevant whistleblower protections, including newly applicable protections for criminal antitrust complainants against unlawful retaliation.
The meatpacking industry has consolidated rapidly in recent decades. Meanwhile, farmers’ share of the value of their agricultural products has decreased, and poultry farmers, hog farmers, cattle ranchers and other agricultural workers may struggle to retain autonomy and to make sustainable incomes. For example, ranchers received more than 60 cents of every dollar a consumer spent on beef 50 years ago, compared to approximately 39 cents today. Hog farmers fared worse over the past 50 years, as their share of the consumer dollar fell from between 40 to 60 cents 50 years ago to approximately 19 cents today.
Producers who choose not to use the farmerfairness.gov portal also can submit complaints or tips about potentially anticompetitive practices by emailing PSDComplaints@usda.gov; calling (833) 342-5773; or mailing Stop 3601, 1400 Independence Ave. SW, Washington, D.C., 20250-3601.
Signup for Free USDA Webinars on Tax Information on Livestock Sales and Disaster Losses
Tax season is just around the corner and there are a variety of important considerations for farmers and livestock producers. USDA has partnered with agriculture tax experts around the country to connect producers to important tax information related to their operations. In February USDA is hosting two informational webinars on income tax treatment of livestock sales and disaster losses. Join us on February 7th and 8th for presentations featuring JC Hobbs of Oklahoma State University to learn about the special tax rules that may apply to your operation.
Monday, February 7, 2022: 3:00 PM Eastern Time (US and Canada)
Income Tax Treatment of Weather-Related Sales of Livestock
Breeding, dairy, or livestock (excluding poultry) sold due to drought, flood, or other weather-related condition are potentially eligible for special tax treatment, as this sale is considered an involuntary conversion. This presentation will cover the application of these tax rules which allows for the postponement of gain recognition when replacement animals are purchased.
The gain from the sale of any livestock, including poultry, in excess of the normal number of animals sold annually due to drought, flood, or other weather-related condition may allow the reporting of gain to be postponed until the following year. Special tax rules apply, allowing the postponement to occur. This presentation will cover the rules and procedures that must be followed to postpone the reporting of gain.
Tuesday, February 8, 2022: 3:00 PM Eastern Time (US and Canada)
Income Tax Rules that Apply to Disaster Losses
The tax treatment for losses of property due to disasters varies depending upon whether the item was personal, business or investment property. In addition, consideration is given to the amount of the loss impacted by insurance proceeds, the tax basis of the property at the time of the loss, or disaster payments received. This presentation will cover the tax treatment that applies to losses of property resulting from a disaster.
Register for both webinars on https://www.farmers.gov/your-business/beginning-farmers.
USDA Provides Update on Implementation of Forthcoming Disaster Assistance
Today, the U.S. Department of Agriculture (USDA) provided an update at the Cattle Industry Convention on forthcoming assistance for agricultural producers impacted by weather-related disasters in calendar years 2020 and 2021.
“Over the past two years, as agricultural producers have struggled with the ongoing impacts of the COVID-19 pandemic, many have been hard-hit by more frequent and more intense natural disasters,” said Robert Bonnie, Under Secretary for Farm Production and Conservation. “With the help of Congress, USDA is working to deliver $10 billion in much-needed relief, including $750 million for livestock producers impacted by the severe drought. As we work to administer this assistance, we remain guided by our goals to streamline the application process to reduce the burden on producers, proactively include underserved producers who have been left out of past relief efforts and encourage participation in existing risk management tools that can help producers weather future extreme weather events.”
Background
On September 30, 2021, President Biden signed into law the Extending Government Funding and Delivering Emergency Assistance Act (P.L. 117-43). This Act includes $10 billion in assistance to agricultural producers impacted by wildfires, droughts, hurricanes, winter storms, and other eligible disasters experienced during calendar years 2020 and 2021. Additionally, the Act specifically targets $750 million to provide assistance to livestock producers for losses incurred due to drought or wildfires in calendar year 2021.
According to Under Secretary Bonnie, USDA will follow a two-phased process to administer relief to eligible livestock and crop producers, with the first phase utilizing a streamlined process that relies on existing data that producers have already reported to USDA.
Phase One for Livestock Producers
For impacted ranchers, USDA will leverage Livestock Forage Disaster Program (LFP) data to administer relief. LFP is an important tool that provides up to 60 percent of the estimated replacement feed cost when drought adversely impacts grazing lands. FSA continues to tally 2021 LFP applications filed by the January 31, 2022, deadline, but early estimates show 74,000 applications totaling more than $500 million in payments to livestock producers under LFP.
While LFP has provided a critical infusion of assistance for ranchers, widespread and severe drought conditions, especially in the Western and Plain states, last year drove prices for feed 50 percent or more above the feed cost formula.
Congress recognized requests for aid go beyond this existing program and provided specific funding for livestock producers in 2021.
For the first phase of livestock assistance, USDA intends to:
Use existing LFP application data;
Streamline the application process to require no or minimal additional paperwork; and
Distribute at least half the $750 million through the first phase by the end of March 2022.
Phase One for Crop Producers
The broader program to provide assistance to crop producers will follow a two-phased process similar to that of the livestock assistance with implementation of first phase this spring. Phase one of the crop assistance program delivery will use existing Federal Crop Insurance or Noninsured Crop Disaster Assistance Program data as the basis for calculating initial payments.
Making the initial payments using existing safety net and risk management data will both speed implementation and further encourage participation in these permanent programs, including the Pasture, Rangeland, Forage Rainfall Index Crop Insurance Program, as Congress intended.
Phase Two for Livestock and Crop Producers
The second phase of both the livestock and crop programs will fill additional assistance gaps and cover eligible producers who did not participate in these existing programs.
NMPF and USDEC Statement on Senate Introduction of Ocean Shipping Reform Act
The National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) today commended lawmakers for introducing bipartisan Senate legislation to address the shipping challenges the dairy industry and other U.S. agricultural sectors are facing. The legislation, should it become law, would help alleviate delays and disruptions at U.S. ports that have been a critical part of the export supply chain challenges plaguing U.S. exporters.
Sponsored by Senators Amy Klobuchar (D-MN) and John Thune (R-SD), the Ocean Shipping Reform Act (S. 3580) is the Senate response to the House version (HR 4996) passed by a wide bipartisan vote (364 – 60) in December. Senators Baldwin (D-WI), Hoeven (R-ND), Stabenow (D-MI), Marshall (R-KS), Peters (D-MI), Moran (R-KS), Blumenthal (D-CT), Young (R-IN), Kelly (D-AZ), Blackburn (R-TN), Booker (D-NH), and Ernst (R-IA) also joined as original cosponsors of the bill.
“The supply chain challenges that have beset American exporters pose significant difficulties for U.S. dairy producers, causing over $1.3 billion in export losses for our sector during the first three quarters of 2021,” said Jim Mulhern, president and CEO of NMPF. “We greatly appreciate the leadership of Sens. Klobuchar and Thune to introduce legislation that will encourage many of the ocean carriers to stop unfair practices. We are committed to working with the Senators and their colleagues in Congress as legislation moves forward to ensure that a final law delivers the changes our exporters most urgently need to see.”
“This Senate bill takes strong strides to address many of the challenges dairy exporters have faced, including securing export vessel bookings and combatting unfair detention and demurrage charges, vital issues to ensure our products reach their intended destinations,” said Krysta Harden, president and CEO of USDEC. “When we can’t export our products, we not only jeopardize our foreign customer relationships and markets, but we also lose value-added opportunities that create jobs and investment in the United States. We look forward to continuing to work with Senators Klobuchar and Thune, and others in Congress, to address outstanding concerns and provide for the strongest possible reforms.”
USDEC and NMPF will continue to work with the Senate to strengthen the measure further as it advances through Congress.
USDEC and NMPF, in collaboration with their member Supply Chain Working Group, have leveraged a multi-pronged approach with Congress and the administration from early 2021 to address the supply chain disruptions plaguing the dairy industry, including unprecedented fees, container availability, and lack of transparency. Foreign-owned ocean carriers’ practices have been a sizable component of those problems. The organizations have provided input into the legislative text and worked closely with the sponsors of this bill to advance Congressional efforts to update the Shipping Act to encourage more reasonable and equitable access to the export shipping supply chain.
Beyond legislation, NMPF and USDEC also continue to work with Congress and the administration to identify additional measures to ease the congestion – including calling for further expanding port hours of operation, increased data transparency, and investments in key supply chain infrastructure.
North American Meat Institute Supports Klobuchar-Thune Ocean Shipping Reform Act
The North American Meat Institute (Meat Institute) today called for the U.S. Senate to pass a bipartisan bill to address unreasonable ocean carrier practices that are undermining competitiveness of American exporters including the meat and poultry industry. The bill, the Ocean Shipping Reform Act was introduced by Senators Amy Klobuchar (D-Minn.) and John Thune (R-S.D.)
“The problems at our ports include delays of shipments of American made goods to overseas trading partners due to the unreasonable practices of foreign-owned ocean carriers,” said Julie Anna Potts, President and CEO of the North American Meat Institute. “These delays are a huge cost to meat and poultry companies as their perishable products await transport.”
Carriers are declining or cancelling export cargo bookings, while frequent ship delays and cancellations with little or no notice to exporters is delaying shipments by weeks or even months. The resulting inability of shippers to deliver their products on schedule affects the reliability of American exports, and decreases export values and market share.
According to the Agriculture Transportation Coalition on average 22 percent of US agriculture foreign sales could not be completed due to ocean carrier practices including: exorbitant freight rates; declined booking requests; unreasonable freight and demurrage/detention charges; and failure to communicate schedules in a timely manner.
The Meat Institute also supports The Ocean Shipping Reform Act of 2021, introduced by U.S. Representatives John Garamendi (D-Calif) and Dusty Johnson (R-S.D.) which was approved by the House with a vote of 364-60.
National Institute for Animal Agriculture Selects Inaugural Cohort for New Leadership Program
The inaugural class participating in the National Institute for Animal Agriculture’s (NIAA) Advanced Training for Animal Agriculture Leaders have been selected and will convene Feb. 8-10, 2022.
NIAA is providing an opportunity for emerging leaders in agriculture to gain next-level leadership and professional development training specifically focused on the animal agriculture segment of the industry. Advanced Training for Animal Agriculture Leaders is sponsored by the United Soybean Board and was created by NIAA to empower professionals in the early to midpart of their careers to build on previous leadership development experiences and collaborate with peers across the industry.
The 16-month program, concluding with a capstone project, combines five in-person meetings with additional virtual working sessions and focuses on four areas of development: critical thinking, leadership development, connecting and relating skills, and operational excellence.
“Part of NIAA’s mission is to foster collaboration and cooperation throughout the industry, and we intentionally developed this program to build upon existing leadership experiences, so professionals advance their leadership and, specifically, collaboration skills,” said Kevin Maher, NIAA Chairman of the Board. “We are excited to offer this opportunity as it’s an essential part of advancing our efforts in exploring, discussing, learning and developing knowledge for continuous progress in animal agriculture.”
The inaugural cohort represents a range of agricultural sectors to advance animal agriculture’s role in today’s food system. They are:
Rebecca Barnett, National Association of State Departments of Agriculture
Tera Barnhardt, Animal Welfare Consulting & Research, LLC
Pierce Bennett, Livestock Marketing Association
Kaitlyn Briggs, Dairy Management, Inc.
Ryan Goodman, Beef Runner
Todd Hanten, Hanten’s Dairy, Inc.
Katherine Harrison, Harrison Farms
Michelle Hiscocks, Iowa State University Department of Animal Science
Madison Hopcia, Upstate Niagra Cooperative
Josh Luth, Innovation Center for US Dairy
Karaline Mayer, Kansas Department of Agriculture Division of Animal Health
Eric Moore, Norbrook, Inc.
Alaina Sill, Seaboard Foods
Hayley Springer, Pennsylvania State University
Reginald Strickland, Strickland Farming Group
“With checkoff support to grow leaders, we are confident this program will serve as an applied learning experience to put their new leadership skills into action,” said Ed Lammers, Health & Nutrition Coordinator for the United Soybean Board, and farmer from Hartington, Neb.
To learn more about the program, its sponsors, and how to participate in the next cohort, visit https://www.animalagriculture.org/leadership-program/.
SDR Ventures Advises Acuity Ag Solutions, a Subsidiary of Maschhoff Family Foods on Acquisition by Fast Genetics, a Subsidiary of STgenetics
SDR Ventures is pleased to announce that Acuity Ag Solutions ("Acuity" or "the Company"), a subsidiary company of Maschhoff Family Foods ("The Maschhoffs" or "MFF") has been acquired by Fast Genetics a subsidiary of STgenetics ("STgen"). SDR served as the exclusive sell-side advisor to Acuity and The Maschhoffs throughout the transaction process.
Carlyle, Illinois-based Acuity is a rapidly growing swine genetics business founded by The Maschhoffs - the largest family-owned pork production business in North America. The Maschhoffs formed Acuity in the mid-2000s to select a pig that was more fit for their commercial production system. The success of their selection program led to the launch of Acuity Ag Solutions. The Maschhoffs are the largest family-owned pork producer in the U.S. and were ranked number 6 in the USA and number 18 globally on the National Hog Farmer's, 2020 Global Mega producer list.
The roots of Maschhoffs Family Foods date back to 1851 in Carlyle, Illinois. Maschhoffs Family Foods has preserved its family culture throughout its history. Throughout the past decade, MFF has brought the company to its current size of more than 180,000 sows, with a 7-state footprint. Today, the business finds itself in a unique position. It is one of the largest family-owned hog production networks in North America. And, yet, the family values remain embedded in the culture.
Acuity will now join Fast Genetics with the goal of becoming the most technologically advanced swine breeding stock company in the world. Current, as well as new customers, can look forward to a wider variety of breeding stock, faster genetic improvement from new breeding programs, and even better customer service from a larger team to support their needs. Acuity will continue to provide genetics for The Maschhoffs' system, focused on producing a full value pig. They are credited for developing a novel genetic selection program capable of using a Commercial Test Herd to establish a proven crossbred EBV program. Fast Genetics and Acuity share the same belief and passion for delivering the most value to customers through a "commodity plus strategy".
"We are excited about this next phase of genetic development within The Maschhoffs' system. This new alignment with Fast Genetics will add considerable value to our pork value chain," said Dr. Bradley Wolter, CEO of The Maschhoffs. "Our team is incredibly thankful for the level of dedication and professionalism that the SDR Ventures team showed throughout the entire process, as they ensured that the legacy of the Acuity brand would be well-positioned for enduring success."
"As we explored the options for the Acuity business, it became increasingly apparent that Fast Genetics and STgen would be a great strategic partner for both The Maschhoffs and all the other Acuity stakeholders including customers, employees, management, and its supply-chain partners. The SDR Ventures team is eager to watch the alliance of Acuity and Fast Genetics flourish for years to come," commented Eric Bosveld, Senior Advisor of Food & Agribusiness at SDR Ventures.
Fast Genetics was purchased by ST Genetics in 2015 from HyLife, a Canadian-based pork producer, processor, and important customer. Fast Genetics will continue to lead the industry in providing producers with the most stable supply of high health, balanced and efficient animals. Fast Genetics is also piloting the use of sex sorted sperm and advanced DNA testing which will benefit The Maschhoffs and other Acuity customers. Fast Genetics and Acuity have complementary infrastructure, personnel, and genetic lines which will accelerate proprietary technology improvements and drive results to producers.
"Collaboratively, we are looking forward to a bright future in maximizing the value they can deliver to producers around the world. Our new partnership will give producers a wider variety of products to access and will increase our nucleus herd size for more rapid genetic improvement. With the best genetics and technologies, we are well-positioned to grow our global distribution together," added Juan F Moreno, CEO of STgen.
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