Wednesday March 2 Ag News

Corn Costs and Cattle Placement Weights
Elliott Dennis, Extension Livestock Economist, University of Nebraska - Lincoln

On Friday February 25th the USDA released the Cattle on Feed report. Average industry estimates were that there would be approximately 1% more cattle on feed February 1, 2022, approximately 1% less cattle placed on feed in January 2022, and 3% less cattle marketed in January. The USDA report closely aligned with pre-report estimates: 1% higher for cattle on feed, 1% less cattle placed, and 3% less cattle marketed. Of note is that the February 1 cattle on feed was the largest since the USDA began collecting data in 1996 – a seemingly common occurrence as of late.

The February Cattle on Feed report provided a snapshot of the number of cattle and calves that were on feed and were marketed from cattle feedlots with less than 1,000 head. The report indicated that approximately 18% of the cattle and calves on feed were in feedlots that had less than 1000 head and accounted for approximately 13% of all cattle marketed. The 10-year average (2013-2022) is 18.3% of cattle on feed and 12.9% of marketings. For perspective, using USDA-NASS data, feedlots with less than 1000 head capacity represent 92.2% of all feedlots operating in the United States – down from 98.1% in 1996.

While the number of cattle on feed has been increasing to record levels, the weight cattle have been placed has changed in 2022 relative to the five-year average (2016-2020). Cattle weighing less than 700 lbs. account for 6.5% more of the cattle in Texas, 1.9% more of the cattle in Nebraska, and 1.2% more of the cattle in Kansas. More than 75% of this change came from feedlots moving away from 700-799 lb. feeder cattle. The remaining 25% came from feedlots moving away from 800+ lb. feeder cattle. Colorado was different having 1.18% more of the cattle in the 700-799 lb. weight class.

There are several factors that contribute to the placement weight decision of feeder cattle by feedlots. The two most important factors this year appear to be the deferred live cattle contracts and the price of corn. The deferred contracts of Oct’22 (143.125), Dec’22 (147.550), Feb’23 (150.925), and Apr’23 (153.225) all are providing signals to producers to increase placements but in deferred months. These contracts are pricing in potential drought, strong domestic beef demand, record export levels, feeder cattle prices, corn, and other input prices.

CME corn futures seem have only seemed to rise in both the nearby and deferred contracts. Rising corn prices are not necessarily an issue as long the live cattle futures likewise continues to rise. However, it does have an impact on the weight feedlots choose to place in the feedlot which in-turn affects the feeder cattle price-weight slide. The impact of higher corn prices on the feeder-cattle price-weight slide is well documented (e.g. Dhuyvetter and Schroeder 2000). Using their estimates and current live cattle prices, live cattle price volatility, corn price volatility, and projected corn prices of $5.50/bu., $6.50/bu., and $7.50/bu., Figure 1 shows what we could expect in the change of feeder cattle prices relative to a 650 lb. steer. For lower corn prices, feeder cattle prices will decline more rapidly as the weight increases. This occurs because when the corn price is lower, lighter weight feeder cattle are worth more relative to heavier weight because the cost of gain is low. Ultimately, the price-weight slide will adjust whether the corn market strengthens ($7.50/bu. corn) or weakens ($5.50/bu.).

So why could we see feedlots continue to place lighter feeder cattle? Feedlots want to place lighter cattle with higher feed prices due to cattle performance and ultimately total feed consumed. The decision to place lighter cattle has important implications for overall beef production, production timing, and feedlot profitability. Cattle that are placed in feedlots at lighter weights have lower average daily gain (ADG), lower feed conversions (AFC), longer days on feed, and lighter harvest weights. One question is that given these performance parameters and feedlots desire to spend the same amount of money on feed costs (here consisting entirely of corn) regardless of different placement weights, is what would we expect harvest weights to be? Using final weights, total days on feed and gain in the feedlot are also calculated. Assuming ADG and AFC are constant, the only way to reduce total feed costs would be to reduce harvest weights.

This has two broad industry implications for the quantity and quality of beef production. First, total quantity of beef production will likely decrease putting upward pressure on boxed beef and thus retail beef prices in deferred months. Second, smaller carcass weights are associated with more cattle grading USDA Select. As more cattle grade USDA Select, the Choice-Select spread will widen providing incentives to feed cattle longer to heavier harvest weights.



IDALS, APHIS Confirm Case of HPAI in Western Iowa

The Iowa Department of Agriculture and Land Stewardship and the United States Department of Agriculture (USDA) Animal and Plant Health Inspection Service (APHIS) have confirmed a positive case of highly pathogenic avian influenza (HPAI) in Pottawattamie County, Iowa. The virus was found in a non-commercial, backyard poultry flock.

According to the U.S. Centers for Disease Control and Prevention, the recent HPAI detections in birds do not present an immediate public health concern. No human cases of these avian influenza viruses have been detected in the United States. It remains safe to eat poultry products. As a reminder, the proper handling and cooking of poultry and eggs to an internal temperature of 165 ˚F kills bacteria and viruses.

“We recognize the threat HPAI and other foreign animal diseases pose to Iowa agriculture,” said Secretary Mike Naig. “We have been working with USDA, livestock producers and other stakeholders to develop, test and strengthen our foreign animal disease preparedness and response plans since the 2015 HPAI outbreak. While a case like this is not unexpected, we are working with USDA and other partners to implement our plans and protect the health of poultry flocks in Iowa.”

All bird owners, whether commercial producers or backyard flock owners, should practice good biosecurity, prevent contact between their birds and wild birds and report sick birds or unusual deaths to state/federal officials. Practicing good on-farm biosecurity is the best way to keep livestock healthy. Biosecurity resources and best practices are available at iowaagriculture.gov/biosecurity.

About HPAI
HPAI is highly contagious, viral disease affecting bird populations. HPAI can travel in wild birds without those birds appearing sick, but is often fatal to domestic bird populations, including chickens and turkeys. The virus can spread through droppings or nasal discharge of an infected bird, which can contaminate dust and soil.

Signs of HPAI include:
    Sudden increase in bird deaths without any clinical signs
    Lack of energy and appetite
    Decrease in egg production
    Soft- or thin-shelled or misshapen eggs
    Swelling of the head, eyelids, comb, wattles, and hocks
    Purple discoloration of the wattles, comb, and legs
    Gasping for air (difficulty breathing)
    Coughing, sneezing, and/or nasal discharge (runny nose)
    Stumbling or falling down
    Diarrhea

If producers suspect signs of HPAI in their flocks, they should contact their veterinarian immediately. Possible cases should also be reported to the Iowa Department of Agriculture at (515) 281-5305.

For updates on this developing situation, please visit https://iowaagriculture.gov/animal-industry-bureau/avian-influenza.



Leopold Conservation Award Comes to Iowa

A prestigious award program celebrating voluntary conservation on farmland and forestland is coming to Iowa.

The Leopold Conservation Award® recognizes agricultural landowners who inspire others with their dedication to ethical land, water and wildlife habitat management. The award is named in honor of renowned conservationist Aldo Leopold. In his influential 1949 book, “A Sand County Almanac”, Leopold called for an ethical relationship between people and the land they own and manage.

Sand County Foundation and national sponsor American Farmland Trust annually present the Leopold Conservation Award to farmers, ranchers and forestland owners in 24 states for extraordinary achievement in voluntary conservation. In Iowa, the award is presented with state partners: Conservation Districts of Iowa, Farmers National Company, and Practical Farmers of Iowa.

Owners of farm and forest land in Iowa may apply for the award themselves or be nominated by another party. The Iowa application can be found at www.sandcountyfoundation.org/ApplyLCA.

Applications will be reviewed by an independent panel of agricultural and conservation leaders. The application deadline is July 1, 2022.

The recipient receives $10,000, and their conservation success story will be featured in a video and in other outreach. The recipient will be announced at The Big Soil Health Event in Cedar Falls in December.

“Recipients of this award are real life examples of conservation-minded agriculture,” said Kevin McAleese, Sand County Foundation President and CEO. “These hard-working families are essential to our environment, food system and rural economy.”

“As the national sponsor for Sand County Foundation’s Leopold Conservation Award, American Farmland Trust celebrates the hard work and dedication of farmers, ranchers and forestland owners,” said John Piotti, AFT President and CEO. “At AFT we believe that conservation in agriculture requires a focus on the land, the practices and the people and this award recognizes the integral role of all three.”

“The landowner plays a critical role in the conservation of America’s farmland resources. Sustainable practices not only benefit the local environment and community, but also improves the quality and value of the land as an asset for the current owner, and future generations,” said Clayton Becker, Farmers National Company President. “This is why Farmers National Company is honored to sponsor this prestigious award recognizing hard work and a commitment to conservation.”

“The conservation ethic inspired by Aldo Leopold is very strong in Iowa. He was born and raised in Iowa where he learned to love the land. That same land is now loved and preserved by many other great conservationists,” said John Whitaker, Conservation Districts of Iowa Executive Director.

"The dedication these farmers and landowners exhibit to preserving Iowa's natural resources is exceptional. We're honored to help elevate their leadership and commitment to conservation," said Sally Worley, Practical Farmers of Iowa Executive Director.

The Iowa Leopold Conservation Award is made possible through the generous support of American Farmland Trust, Conservation Districts of Iowa, Farmers National Company, Practical Farmers of Iowa, Sand County Foundation, Soil Regen, USDA Natural Resources Conservation Service, and Iowa Corn.   



Conservation Planning in Farmland Leasing Is Topic of Webinar

The Iowa Learning Farms conservation webinar taking place March 9 at noon CST will feature Ann Johanns, an extension education specialist with Iowa State University Extension and Outreach. Johanns supports the Farm Management team at ISU Extension and Outreach, providing risk management education for agricultural producers and landowners across Iowa. She also coordinates farm management materials for the Ag Decision Maker website.

In the webinar, “Farmland Leasing Considerations in Conservation Systems Adoption,” Johanns will highlight tools and materials available to aid in making informed decisions regarding conservation practices that can protect and sometimes improve land value, protect natural ecosystems and often increase performance and profitability. She will also offer insights to help tenants and landowners cooperatively negotiate land use and management agreements. In addition, the webinar will provide participants with tools for planning and implementing sustainable conservation systems on land they own or rent.

“Whether you are a renting agricultural producer or landowner, understanding conservation practices that can improve land value and performance should be fundamental considerations for achieving economic and environmental goals,” said Johanns. “Implementation of conservation practices is vital for long-term sustainability of Iowa farmland. And, with over half of Iowa farmland under some form of rental agreement, being equipped with relevant information about conservation practices can facilitate collaborative efforts and if appropriate, inclusion of conservation plans in farmland leases.”

Participants are encouraged to ask questions of the presenter. People from all backgrounds and areas of interest are encouraged to join.

To participate in the live webinar, shortly before noon CST on Wednesday, March 9:
    To access online, click this URL, https://iastate.zoom.us/j/364284172, or go to https://iastate.zoom.us/join and enter meeting ID 364 284 172.
    To access from a dial-in phone line, dial +1 312 626 6799 or +1 646 876 9923  with meeting ID 364 284 172.

The webinar will also be recorded and archived on the Iowa Learning Farms website, so that it can be watched at any time.

A Certified Crop Adviser board-approved continuing education unit has been applied for. Those who participate in the live webinar are eligible. Information about how to apply to receive the CEU will be provided at the end of the live webinar.



Over 200 Iowa Biofuel Supporters Pack the Capitol in Support of Biofuels Access Bill

Today over 200 Iowa biofuels supporters from around the state packed the Iowa State Capitol rotunda to show support for the Iowa Biofuels Access Bill.
 
House File 2128 passed the Iowa House last month by a strong bipartisan vote of 82 to 10 and is now pending in the Iowa Senate. Members of the Iowa Renewable Fuels Association, Iowa Corn Growers Association, and Iowa Soybean Association gathered to encourage the Senate to pass the bill. The bill was originally introduced by Gov. Kim Reynolds.
 
“Recent geopolitical disruptions and subsequent energy price spikes serve as a stark reminder of the importance of homegrown renewable energy solutions like biofuels,” said Iowa Renewable Fuels Association President Devin Mogler. “The Governor’s Iowa Biofuels Access Bill would help ensure that consumers have a choice for lower cost, cleaner options from right here in Iowa.”
 
HF2128 would give Iowa drivers increased access to lower-cost biofuel blends like E15. It would also expand fuel retailers’ grant opportunities to upgrade infrastructure to offer higher blends while also protecting older stations from having to make costly upgrades.



USDA Makes Available Additional $80 Million in Funding to Support Long-Term Resilience in the Dairy Industry

The U.S. Department of Agriculture (USDA) today announced an additional investment of $80 million in the Dairy Business Innovation (DBI) Initiatives. In November 2021, DBI awarded $18.4 million to three current Initiatives at University of Tennessee, Vermont Agency for Food and Marketing and University of Wisconsin, and $1.8 million to a new initiative at California State University Fresno. Under the existing DBI program, which was previously announced through a FY21 Request for Applications (RFA), each Initiative will now have the opportunity to submit additional proposals for up to $20 million in American Rescue Plan funds to further support processing capacity expansion, on-farm improvements, and technical assistance to producers.

“The pandemic has demonstrated that dairy producers and regional dairy processors, particularly those engaged in value-added production, faced systemic shocks over the past several years,” said Agriculture Secretary Tom Vilsack. “We have heard directly from producers and processors – particularly organic producers and processors in the Northeast – on how we can work with the industry to build long-term resilience of regional dairy supply chains. The Dairy Business Innovation Initiatives have supported regional-focused efforts tailored to the needs of dairy farmers and businesses locally. This additional funding will expand the capacity of the four initiatives to provide technical assistance and sub-grants exponentially.”

Since its inception in 2019, DBI initiatives have provided valuable technical assistance and sub-grants to dairy farmers and businesses across their regions, assisting them with business plan development, marketing and branding, as well as, increasing access to innovative production and processing techniques to support the development of value-added products. Separate from this supplemental ARP funding, AMS plans to announce a new DBI Request for Applications later in FY22 contingent upon appropriations.

AMS supports U.S. food and agricultural products market opportunities, while increasing consumer access to fresh, healthy foods through applied research, technical services, and Congressionally funded grants.

To learn more about AMS’s investments in enhancing and strengthening agricultural systems, visit www.ams.usda.gov/grants.



New Farmer-Leaders Appointed to United Soybean Board

The U.S. Department of Agriculture announced the appointment of nine new U.S. soybean farmers to serve on the United Soybean Board (USB) and reappointed eight directors for an additional term. Farmer-leaders will serve a three-year term.

“With different uses of soy continuing to grow, this is an exciting time to be a USB farmer-leader. I look forward to working with these passionate individuals who will bring additional perspectives and insights, expanding our group of creative and innovative thinkers,” said Ralph Lott, USB Chair and farmer from New York. “The reappointed leaders bring back valuable experience, having worked through our Value Creation Framework process determining future checkoff investments. Together, we will move U.S. Soy forward and bring value back to the farm gate of all U.S. soybean farmers.”

“This group of farmer-leaders represents a variety of operations and unique points of view across the many growing regions of our country,” said Meagan Kaiser, USB Vice Chair and farmer from Missouri. “We all share a common goal to maximize the profit opportunities for every U.S. soybean farmer, and I’m eager to work together to strengthen our collective future.”

Newly appointed farmer-leaders include:
    Arkansas – Robert Petter, De Valls Bluff
    Georgia – Jesse Patrick, Madison City
    Indiana – Jim Douglas, Flat Rock
    Minnesota – Patrick O’Leary, Benson
    Missouri – Robert Alpers, Prairie Home
    North Dakota – Cindy Pulskamp, Hillsboro
    South Dakota – Tim Ostrem, Centerville
    Virginia – Shannon Tignor Ellis, Champlain
    Wisconsin – Nancy Kavazanjian, Beaver Dam (one-year term)

Reappointed farmer-leaders include:
    Illinois – Lynn Rohrscheib, Fairmount
    Iowa – April Hemmes, Hampton
    Kentucky – Brent Gatton, Bremen
    Louisiana – Garrett Marsh, Tallulah
    Nebraska – Tony Johanson, Oakland
    North Carolina – Benjamin Derek Potter, Grantsboro
    Ohio – Jeff Magyar, Orwell
    Pennsylvania – Andrew Fabin, Homer City

Newly appointed alternate(s) are:
    Georgia – Mark Ariail, Carnesville
    New Jersey – Fred R. Catalano, Woodstown (one-year term)
    South Carolina – Charlie Whiten, Westminster (two-year term)
    Eastern Region – Mark H. Kable, Charles Town, West Virginia (one-year term)

U.S. soybean farmers receive an estimated $12.34 in value for every dollar they invested in the checkoff. Those investments continue to fund programs that build preference for U.S. soybeans across the country and around the world. Authorized by the Soybean Promotion, Research, and Consumer Information Act, the checkoff is composed of 78 members representing 29 states, in addition to the Eastern and Western regions. The number of seats on the board is determined based on bushels produced in their region. Members must be soybean farmers nominated by a Qualified State Soybean Board.



Weekly Ethanol Production for 2/25/2022

According to EIA data analyzed by the Renewable Fuels Association for the week ending February 25, ethanol production slowed by 27,000 barrels per day (b/d), or 2.6%, to 997,000 b/d, equivalent to 41.87 million gallons daily. Production was 17.4% more than the same week last year, which was affected by the pandemic and the continued effects of adverse weather, but 7.6% less than the same week two years ago. The four-week average ethanol production volume decreased 1.1% to 1.006 million b/d, equivalent to an annualized rate of 15.42 billion gallons (bg).

Ethanol stocks tightened by 2.3% to 24.9 million barrels. Stocks were 11.2% higher than a year ago but 0.1% less than the same week two years ago. Inventories thinned across all regions except the Midwest (PADD 2), which recorded record high reserves.
                                                                                                              
The volume of gasoline supplied to the U.S. market, a measure of implied demand, rose 1.0% to 8.74 million b/d (134.03 bg annualized). Gasoline demand registered 7.3% higher than a year ago but 4.8% less than the same week two years ago.

Refiner/blender net inputs of ethanol increased by 0.6% to 876,000 b/d, equivalent to 13.43 bg annualized and a nine-week high. Net inputs were 7.6% more than a year ago but 2.3% less than the same week two years ago.

There were zero imports of ethanol for the fifth consecutive week. (Weekly export data for ethanol is not reported simultaneously; the latest export data is as of December 2021.)



U.S. Farm & Biofuel Leaders Call for Swift Action to Unleash Lower-Cost Biofuels

America’s top biofuel and farm advocates called on President Biden to swiftly expand access to plentiful, lower-cost biofuels as Russia’s invasion of Ukraine pushes fuel prices closer to record levels. The Environmental Protection Agency (EPA) is soon expected to finalize biofuel blending requirements for 2021 and 2022 and address a controversial bid to retroactively alter volumes set for 2020. The following joint statement was issued by the Advanced Biofuels Business Council, American Farm Bureau Federation, Clean Fuels Alliance America, Growth Energy, National Farmers Union, and Renewable Fuels Association:

“American-made biofuels are the only abundant, affordable, homegrown alternative to oil that can immediately extend the domestic supply of liquid fuels. It was the right solution when experts warned time and again that the Organization of the Petroleum Exporting Countries (OPEC) and Russia would not protect American drivers from inflated fuel costs. Today, the economic case for biofuel blends is as clear as the sign posts outside every fueling station. Ethanol is trading at a steep discount compared to unblended gasoline, often 50 to 60 cents per gallon, and consumers are driving out of their way every day to capture the extra 15 cents or more per gallon savings on higher blends like E15.

“Now is the time to move quickly to put the RFS back on track to expand clean energy production, reduce emissions, and finally protect the economy from volatile oil prices. The administration also must act immediately to allow year-round sales of E15 through existing infrastructure, which will help hold down costs and reduce demand for oil imports. For too long, critics have clouded basic arithmetic with misdirection and spin – but the economics show that biofuels save the average household around $250 annually, and the best academic research, confirmed by federal agencies, shows homegrown ethanol and biomass-based diesel cut total, lifecycle climate emissions by 46-74 percent. Nationwide, E15 alone could save drivers an extra $12 billion or more. Greater energy and climate security is available at the stroke of a pen by this EPA.

“Swift action to finalize long-awaited biofuel requirements, including a return to statutory requirements and strong growth in advanced biofuels in 2022, is part of ‘a critical strategy to secure a clean, zero-carbon energy future,’ as EPA Administrator Regan emphasized this December. We urge regulators to quickly address the feedback offered by farm and biofuel leaders and accept no excuses for delay in finalizing a plan for growth that finally closes the book on those wagering against clean, affordable energy made in America.”



Stable Launches Price Hedging on Mercaris Organic and Non-GMO Prices

Stable announces the launch of organic grain and oilseed hedging capabilities, utilizing prices published by Mercaris. The unique combination of Stable’s price risk management tools and Mercaris’ organic and non-GMO indices will allow producers and consumers of organic corn and soybeans to protect their businesses against volatile price movements for the first time in history.

Stable is a global commodity price risk management platform operating across 7,000+ agricultural markets, with contracts backed by A-rated reinsurers. Stable’s platform allows industry participants to directly manage price risk in key commodities across their sectors. Stable offers price protection for commodities that aren’t traded on futures exchanges by offering simple and targeted options-based risk management solutions that settle directly against reference prices published by entities such as Mercaris. All hedging strategies are bespoke, low risk and require no maintenance margin.
“As a farmer's son myself, I know first-hand how important managing price risk can be. We’re delighted to be able to bring this game-changing risk management capability to the organic grain and oilseed markets to help businesses invest in the future with confidence.” - Richard Counsell, Founder & CEO of Stable USA Inc.

Since 2012, Mercaris has helped its customers capitalize on the growing demand for organic and non-GMO agriculture by providing market information and analytics tailored to the needs of the identity-preserved agriculture industry. Mercaris focuses its data and products on the organic and non-GMO grains, oilseeds, and dairy markets across all regions of the United States and Canada.

Mercaris provides market-based tools, including data, analysis and trading, for the sustainable, identity-preserved agricultural sector. Their services help support and foster the growth of agricultural practices that protect and build soil, water and air quality, as well as protect both human and animal health in the communities in which they work. By fulfilling their mission, Mercaris also enables others in the value chain to contribute to broader goals of environmental sustainability and increased access to information in otherwise underserved markets.

“A large part of managing risk in organic and non-GMO markets involves ensuring the most up-to-date and accurate grain pricing information is available to our partners. Mercaris is proud to be able to work with Stable to provide more businesses with the market data they require to continue their growth and success well into the future." - Kellee James, Founder & CEO of Mercaris

Enabling hedging of organic grains and oilseeds revolutionizes hedging for agricultural and food businesses of every size and sector. Stable is partnering with Mercaris to launch organic corn and organic soybean price protection tools, with the aim to expand to wider markets in the future.



Former Ag Committee Chairman Sets the Record Straight on Farmer Investments in Climate-Smart Practices
Collin Peterson, former chairman of the House Agriculture Committee

Watching the video series on American agriculture that the New York Times recently published reminded me that those of us who champion agriculture and rural America have a lot of work to do to overcome negative perceptions about what it takes to feed and fuel our world.  

Americans in communities large and small have for years been working to find common-sense solutions to climate change, and it is unnecessarily polarizing to have far left-leaning activists distract from this task by using false sensationalism to place blame for pollution solely on the shoulders of U.S. agriculture.  

The New York Times series is rife with inaccuracies, which even U.S. Department of Agriculture Undersecretary Robert Bonnie, formerly of the Environmental Defense Fund, called “horrible.”  

Using half-truths and outright lies to belittle the farmers and ranchers who provide us with a reliable and affordable supply of food is detrimental to our shared mission to protect the planet. So, let us set the record straight.

U.S. agriculture accounts for less than 10 percent of GHG (greenhouse gas) emissions, according to the Environmental Protection Agency (EPA). This puts U.S. agriculture behind transportation (29 percent), electricity (25 percent), industrial (23 percent), and commercial and residential sources (13 percent). In fact, on a net basis, U.S. agriculture and forestry eliminate more GHGs than they produce, removing some 729 million metric tons of CO2 equivalent in 2017 alone.  

While beef cattle are often targeted for the methane they naturally emit, in reality, a recent government study concluded that U.S. beef cattle account for just 3.3 percent of GHG emissions.

Despite their small share of GHG emissions, America’s farmers and ranchers have invested significantly in proven technologies and conservation management practices to protect our land, air, water, and wildlife while also further reducing GHGs. This includes no-till farming, the planting of cover crops, the introduction of biotechnology, the use of methane digesters, and even specially formulated cattle diets to reduce burping.

In fact, over the last 70 years, U.S. agriculture has tripled production while usage of land, energy, fertilizer, and other inputs has remained fairly steady.  Moreover, roughly 140 million acres of farmland have been dedicated to conservation and habitat preservation objectives.  

The activists who on one hand say they want to slow or stop climate change, on the other hand are steadfast in their opposition to these innovations in agriculture.  

Let’s just be clear. If these so-called environmentalists were able to wave their magic wand and implement their pie-in-the-sky ideas, it would frankly jeopardize the food supply that ensures Americans seldom experience empty shelves and guarantee that food costs would skyrocket and become unaffordable to the average family who carefully budgets for their weekly meals.  

Activists in these videos deliberately conflate farms and ranches with large corporate food companies and meat packers in their attempts to sway public opinion. This sleight of hand is akin to purportedly giving you a glimpse into the lives of the average Amazon employee by showing images of Jeff Bezos’ yacht. It is an insult to our intelligence.  

A government report last year affirmed that 98 percent of farms and ranches are family-owned and even the small number of nonfamily farms are often made up of relatives and neighbors who opt to farm together. But we do not have to rely on statistics to be confident in this: a short road trip into rural America is all the evidence anyone needs.  

When confronted with these facts, environmental activists simply declare that everyone else is wrong and that the whole spectrum of political leaders — from Senators Elizabeth Warren (D-MA) and Bernie Sanders (I-VT) to former President Donald Trump and Senator Mitch McConnell (R-KY) — are in on the conspiracy.

As the former Democratic Chairman of the House Agriculture Committee, I can tell you firsthand that they are wrong. Congress has been working alongside U.S. agriculture for years to enact voluntary, incentive-based initiatives to reduce and sequester GHGs and achieve other important environmental objectives.  

Farms and ranches are, in fact, already regulated under a vast number of environmental laws — ranging from the Clean Water Act to the Endangered Species Act. But to achieve even greater air and water quality, soil health, wetlands and wildlife protection, and other important public policy objectives, lawmakers from both sides of the aisle understand that we must partner with farmers and ranchers under the incentive-based conservation programs authorized under the Farm Bill.   

While environmental activists deplore the idea of voluntary, incentives-based programs, the Biden Administration has fully embraced the approach, recognizing that U.S. agriculture can not only reduce and sequester the small levels of GHGs emanating from the farm and ranch but can also offset significant GHGs from other sectors — an important realization given the ambition of cutting U.S. GHGs by fully 50 percent in just eight years.        

Meanwhile, opponents of common-sense farm policies would rather hunt for a solution in search of a problem by convincing the public that we cannot fix the climate problem until we fix American agriculture — even though it is American agriculture that holds the key to the solution they are seeking.

That’s a shame.  



Bayer Corn Trait Gains EPA Approval: VT4PRO™ with RNAi Technology to Launch in US as Early as 2024

Bayer announced today the commercial registrations from the EPA for the traits that will enable the commercialization of its newest corn product, VT4PRO™ with RNAi Technology, in the United States. VT4PRO™ Technology* will provide US farmers an additional option within the already-strong Bayer corn product portfolio to help control troublesome above-ground and below ground pests.

VT4PRO™ Technology will mark the first product that combines the power of the three modes of built-in action in Trecepta® Technology, an elite above-ground pest package for corn that controls insects such as corn earworm and western bean cutworm, along with an RNAi-based mode of action, the latest defense to help manage corn rootworm.

“We’re excited about the potential of this product and believe it will provide tremendous value for farmers, helping provide added protection against some of the toughest corn pests,” said Scott Stein, North America Corn Product Management Lead. “The addition of VT4PRO™ Technology to our portfolio gives farmers another choice in Bayer’s already-robust product lineup. We anticipate that this offering will have a broad geographic fit and will provide corn growers the widest spectrum of insect defense from Bayer.”

A complement to Bayer’s existing portfolio, VT4PRO™ Technology will complement other products like SmartStax® PRO Technology and offer an additional option for growers looking for products that will perform well in low-to-moderate corn rootworm pressure conditions, along with potential higher risk for corn earworm or western bean cutworm.

“This product is another example of Bayer’s commitment to developing and delivering innovative products for farmers through our corn product pipeline,” said Stein. “With an annual investment of more than $2 billon, we’re dedicated to developing technology that provides innovative solutions that help growers address the tough challenges they face on their farms.”

Bayer plans to conduct large scale field testing of VT4PRO™ Technology during the 2022 and 2023 growing seasons with the potential to launch commercial volumes as early as 2024, pending state registrations.



AMVAC, Azotic North America Collaborate to Develop, Commercialize N-Fixation Product Envita For SIMPAS-applied Solutions

AMVAC® and Azotic North America are pleased to announce a collaboration to develop and commercialize nitrogen-fixation product Envita™ as an exciting addition to the expanding SIMPAS-applied Solutions™ portfolio.

Envita is a naturally occurring food-grade bacteria that allows a plant to fix nitrogen. Envita can be applied in-furrow to multiple crops including corn and soybeans, where it quickly establishes itself within the plant and grows with the plant as the plant grows. Unlike rhizobia, which does not begin forming nodules until the root system is taking form, Envita starts to fix nitrogen very quickly and lasts season long. This provides the plant with an additional source of nitrogen during critical growth periods where nitrogen loss may occur due to environmental conditions. Envita provides a constant, season-long supply of nitrogen from within the cells of the plant exactly where and when nitrogen is needed the most for yield.

Envita joins a growing portfolio of SIMPAS-applied Solutions (SaS), which are products prescriptively applied with patented SmartCartridge® container technology and using the SIMPAS® application system to address unique agronomic needs. Across the SaS portfolio are insecticides, nematicides, fungicides, micronutrients, and solutions for soil health and fertilizer efficiency. (See more about SIMPAS-applied Solutions below.)

"With this new addition to SIMPAS-applied Solutions, growers will be able to utilize the precision of the SIMPAS system in areas where risk of nitrogen loss is greater such as in low-lying areas and on slopes," said Jim Lappin, Director of SIMPAS Portfolio and Alliances at AMVAC. "This is important because applying additional units of synthetic nitrogen in high-yielding zones can begin to have a diminishing rate of return as N rates go higher. Envita provides an alternate source of nitrogen that continues as the plant grows or in conditions where uptake of synthetic N may be challenged."

Lappin said Envita is an ideal complement to the SIMPAS system, which growers are adopting to address agronomic needs where whole-field applications are not economically warranted or where variable rates of at-plant inputs deliver better return. SIMPAS gives growers the flexibility to apply exactly what's prescribed, precisely where it's needed.