Monday January 8 Ag News

 Summit Contracting Announces Completion of Purchase Agreement with Petersen Ag Systems

Summit Contracting, a South Dakota leader in the construction of farm and grain systems, is pleased to announce the completed acquisition of Nebraska-based Petersen Ag Systems. Effective January 1, 2024, this marks a substantial expansion of Summit Contracting’s service areas and product lines into Norfolk and Osmond, Nebraska, and Onawa, Iowa.

Tyler Samuelson, CEO of Summit Contracting, has a deep respect for Petersen Ag Systems' legacy. "We are sincerely grateful for the opportunity to join with Petersen Ag Systems. Their esteemed reputation, dedication to quality, and customer-oriented approach resonate deeply with our core values at Summit Contracting. Our united focus is on fostering strong customer relationships, nurturing our team’s well-being, and constructing durable, high-quality farm structures that withstand the test of time," Samuelson states.

Petersen Ag Systems, which holds a rich and respected history dating back to 1937, will undergo a rebranding to embrace its new identity as part of Summit Contracting. This transition represents not just a change in name, but a continuation of a legacy built on service, reliability, and quality.

Henry Aschoff, President of Petersen Ag Systems, kindly shared his confidence in Summit Contracting's ability to honor and elevate the legacy that Petersen Ag Systems has established. “In Summit Contracting, we’ve found a partner that mirrors our commitment to customer satisfaction and exceptional service. Their family-oriented approach promises a bright future for our employees, customers, and the communities we serve,” Aschoff noted.

Since its founding in 2009, Summit Contracting has experienced growth, adding locations in Brookings and Pierre, South Dakota, as well as Seward, Nebraska, and Sioux Center, Iowa. This expansion further diversifies Summit’s product offerings, introducing new capabilities like seed treaters and center-pivot irrigation systems, with a promise to uphold the high standards Petersen Ag Systems’ customers are accustomed to.

“We are devoted to maintaining the high standards of product and service quality that Petersen Ag Systems customers have trusted over the years,” Samuelson added. “We view this acquisition as a privilege, bringing together two families of employees and customers. It's a step towards new possibilities for our combined workforce, our loyal customers, and our companies.”



Governor Pillen Calls for 40% Reduction in State Property Taxes

Today, Governor Jim Pillen called for a 40% reduction in state property taxes in 2024. He is asking the Nebraska Legislature as well as chambers of commerce to partner in achieving that goal, stating it is a necessity for all Nebraskans.

“Property taxes are so out of whack, you don’t even need to own property to be adversely affected,” said Gov. Pillen. “We need to do this for the countless Nebraskans who have worked, raised a family, and educated their kids here, by giving them the opportunity to retire in Nebraska. Our current property tax structure is taxing lifelong Nebraskans out of their homes – it is unacceptable.”

Addressing high property taxes is the Governor’s top priority during the current legislative session.

“In 2023, state property taxes exceeded $5 billion. In the last six years alone, property tax collections skyrocketed $1.3 billion. We need transformational property tax reform to get us down to around $3 billion annually,” said Gov. Pillen.

The Governor convened a 40-person workgroup in July to study the issue of property taxes and home valuations. The group, made up of state senators, representatives from the Nebraska State Chamber of Commerce, the Lincoln and Omaha chambers of commerce, agriculture industry groups and others, all agreed it was not enough to keep property taxes level. A significant reduction was required.

“Nebraska is already the best place to live, work, and raise a family,” said Gov. Pillen. “In order to stay competitive with other low tax states, we need to reduce property taxes by 40%. This reduction will drive economic growth through workforce and new business development.”

Gov. Pillen wants to work with the Legislature to determine the right path forward. He made clear that any plan would incorporate a hard cap on county and city spending. The state, he said, would be leading by example.

“We will reduce state spending by 3% this fiscal year, followed by another 6% in fiscal year 2025, while ensuring that state services improve through efficiencies and technology,” said Gov. Pillen.

Proposals also include front-loading property tax credits instead of requiring taxpayers to claim them, to further provide state aid to schools and reduce state spending. It would also require expanding the state’s tax base.

“Everything is on the table. We must ignite this discussion,” said Gov. Pillen. “We must be bold and courageous in our pursuit of property tax reform, because we owe it to all Nebraskans.”



Statement by Mark McHargue, President, Regarding Governor’s Call for Property Tax Reform

“We greatly appreciate Governor Pillen’s leadership and efforts to reduce the property tax burden on Nebraskans. Achieving meaningful tax reform to lower property taxes requires difficult conversations. To his credit, the governor has not shied away from those conversations, and we thank him. We believe we are heading in the right direction when it comes to tax reform and look forward to continuing to work with him and others to deliver meaningful property tax relief Nebraskans deserve.”



Secretary Naig Applauds 8th Circuit Court Decisions on 2019 and 2021 Agriculture Trespass Laws

Iowa Secretary of Agriculture Mike Naig released the following statement today after the 8th Circuit Court unanimously overruled the District Court and upheld Iowa’s 2019 and 2021 agriculture trespass laws as constitutional:

"The Eighth Circuit Court’s unanimous decision is a victory for Iowa farmers, the Constitution, and the rule of law. The Legislature and Gov. Reynolds enacted these laws to safeguard our ag community and protect our food security. It is welcome news that Iowa producers can now be protected from trespassers and it sends a clear message to those who maliciously target our livestock farms.”



Farm Transitions Conference Will Provide Expert Insight to Succession Planning Questions

If you’re looking for answers to your farm transition questions or simply wanting to review your current plan, consider attending the 2024 Farm Transitions Conference Feb. 8-9 in Ames.

This two-day event is organized by the Beginning Farmer Center at Iowa State University and features locally and nationally recognized speakers, as well as farmers and producers from Iowa.

Day one: Transition planning
Younger farmer and older farmer shaking hands in field by Budimir Jevtic/stock.adobe.com.The first day will focus on transition planning, with a welcome address by Bill Northey, former Iowa Secretary of Agriculture. He will talk about his experiences with Iowa agriculture and the importance of transition planning in the face of uncertainty.

David Oppedahl, a policy advisor with the Federal Reserve Bank of Chicago, will discuss recent land values and inflation trends that are impacting agriculture, followed by the “2024 Ag Market Outlook” by Chad Hart, extension grain market economist with ISU Extension and Outreach.

According to the 2022 Iowa Farmland Ownership and Tenure survey, 80% of Iowa farmland is owned by someone not planning to sell. As such, the importance of farm leases and negotiations will continue to increase for both beginning and established farmers as well as farmland owners. Ann Johanns, program specialist with ISU Extension and Outreach, will join extension ag economist Alejandro Plastina and Jeff Troendale, of Hertz Farm Management, for a discussion on the critical role of farm leases in long-term business planning.

In the afternoon, speakers will address topics including Iowa’s new retired farmer income tax law, beginning farmer loans and tax credits, tools for transferring farm management, and the USDA’s role in supporting farmers.

The first day will conclude with a presentation by Kiley Fleming, of the Iowa Mediation Service, on the importance of communicating your goals to the people who are impacted by your decisions. Attendees will learn practical ways to navigate generational differences and reframe difficult conversations.

“Whether you want to begin farming, you are looking to transition your farm to the next generation, or you are a producer somewhere in between, this conference is for you,” said Kitt Tovar Jensen, manager of the Beginning Farmer Center. “Come learn about opportunities, pitfalls to avoid and tools required for a successful farm transition.”

Day two: Estate planning
The second day will cover many themes in estate planning. Attendees will be empowered to make strategic decisions after learning more about the available legal tools, potential tax implications and the basics of farmland appraisals.

Jeanne Bernick, of Pinion (formerly K·Coe Isom), will discuss the role strategic thinking plays in the success of any operation, whether just beginning or fine-tuning after years of planning.

The same morning, Jennifer Harrington, staff attorney with the Center for Agricultural Law and Taxation at Iowa State, will discuss the different types of asset ownership that can affect farm succession, as well as common legal tools like wills, trusts and substitute decision-making options.

Harrington’s colleague, Kristine Tidgren, will discuss how taxes will impact the transfer of assets. Tidgren is the director of the Center for Agricultural Law and Taxation at Iowa State University. This session will cover potential tax liabilities that can occur during life and upon death.

Afternoon speakers include Paul Dietmann, of Compeer Financial, who will discuss the various strategies and resources available for accessing farmland. Catherine DeLong, water quality program manager with ISU Extension and Outreach, will discuss the pivotal role of conservation strategies in preserving agriculture’s legacy.

The conference will conclude with a panel discussion of farmers Kathy and Caroll Hoksbergen of Pella. The couple recently decided to sell their fourth-generation farm to new, non-family owners and will share their experiences and advice.

“I am really excited about this year’s event and the lineup of quality speakers who will be presenting,” said Tovar Jensen. “We have attorneys, tax preparers, lenders, mediators and everyone else associated with farm succession. Equally important, we have actual farmers who will share real-world experiences.”

Register to attend in person or through a live-streamed webinar by Jan. 31 to reserve your complimentary copy of Estate and Succession Planning for the Farm, a 100-page workbook published this fall by ISU Extension and Outreach.

To register, visit https://www.regcytes.extension.iastate.edu/farmtransitions/. For more information, visit the Beginning Farmer website. Tovar Jensen can be reached at 515-357-6680 or kwtovar@iastate.edu.



Cull Cow and Beef Prices Bounce Higher
David P. Anderson, Extension Economist, Texas A&M AgriLife Extension Service

Cull cow and bull prices moved a little higher to end the year on a positive note. After hitting $100 per cwt in early August, 90 percent lean cutter grade cows declined through most of the Fall getting to $78 per cwt in early December. Those grade cows closed out the year $85.86 per cwt. Other grades, including premium white, breaker, and boner grades also increased to end the year at their highest levels in more than a month.

The cow-beef cutout finished the year at $202 per cwt, a slight uptick from the prior week. It looks like the cutout will begin 2024 at almost $10 per cwt ahead of January 2023, where it began last year at $194 per cwt.

The overall decline in fed cattle prices certainly impacted cull cow prices. But, cull prices normally decline in the Fall as large numbers of cull cattle are sent to market. Weekly beef cow slaughter hit its high for the year, 83,200 head, in mid-November. When combined with reduced dairy culling, weekly total cow slaughter this Fall did not reach a new high for the year. The largest weekly total cow slaughter was 148,800 head back in mid-January. The combination of 2023 beef cow slaughter declining 11 percent from 2022 and dairy cow slaughter increasing 1.3 percent led to a total decline of 5.7 percent in 2023. We should expect a year-over-year decline in cow slaughter again in 2024.

What to Watch
Weekly cow slaughter can be very large early in the year so, a relative increase in culling in January and February should not be a surprise. More cattle on feed than a year ago and recent record high fed cattle weights should mitigate beef production declines even though smaller overall beef supplies will remain. The winter storm on its way for the next 1-2 weeks should impact production and consumer beef purchases adding a little volatility. Overall, the normal seasonal increase in cull cow prices should be in play this year at even higher price levels than last year.



The U.S. Agricultural Trade Deficit Could Reach Record Highs for 2023. Is There Cause for Concern?

For the third time in five years, agricultural trade in the United States will be at a deficit — when a country imports more than it exports.

As of November, the U.S. imported $20 billion more in agricultural products than it exported in 2023, which would set a record for biggest deficit in a calendar year in nearly a century if the trend continues through the last month of the year.

For some farmers, this year’s big deficit is a sign that trade has taken a hit and other countries may be out trading the U.S. However, some economists argue there are logical explanations behind what has created such an eye-popping deficit — including rising imports, a strong American dollar and basic supply and demand.

“Trade deficits aren’t something we should be inherently worried about,” said Bill Ridley, a professor at the University of Illinois Urbana-Champaign, who studies international trade.

Over the last five years, agricultural exports have climbed from $141 billion in 2019 to nearly $196 billion in 2022, according to data from the U.S. Department of Agriculture. In both 2020 and 2021, agricultural trade was at a surplus, or the opposite of a deficit, where exports exceed imports.

In the 2023 calendar year, the U.S. has reported exporting $143 billion and importing $163 billion. At this time last year, the country had exported about $18 billion more. Data for the remainder of the year is scheduled to be published Jan. 11.

“The U.S. is very much still the breadbasket to the world,” said Doug McKalip, chief agricultural negotiator for the U.S. Trade Representative, the government agency responsible for promoting trade. “We're growing things and successfully exporting them around the globe. So there's certainly a lot more to it than what might meet the eye initially.”

To Ridley, the Illinois professor, analyzing all agricultural trade markets in one lump can be misleading. While all share similarities, looking at individual commodities paints a more accurate picture, he said.

For example, exports of soybeans, the most profitable commodity, have been robust this year, Ridley said. Through October, Americans exported $21.38 billion worth of soybeans this year. In 2022, a record year, that figure stood at $23.81 billion during the same time frame.

Corn exports also remain high. This year, $11.1 billion worth of corn has been sold and shipped abroad, according to USDA data. At the same time last year, the U.S. exported $16.5 billion.



USDA Reminds Producers of Upcoming Discrimination Financial Assistance Program Deadline

The U.S. Department of Agriculture reminds farmers, ranchers and forest landowners that January 13, 2024, is the deadline to apply for the Discrimination Financial Assistance Program (DFAP). This program is made possible by the Inflation Reduction Act, which provided $2.2 billion in funding.

Farmers, ranchers, and forest landowners who experienced discrimination by USDA in its farm loan programs prior to January 1, 2021 and/or are currently debtors with assigned or assumed USDA farm loan debt that was the subject of USDA discrimination that occurred prior to January 1, 2021, are eligible for this program.

Applications may be submitted online through the program website at 22007apply.gov, in person at a DFAP local office, or by mail. The full list of offices and their operating hours can be found at 22007apply.gov/local-assistance.html. There is no cost to apply for this program and free technical assistance is available. More information can be found on the program website or by calling 1-800-721-0970. Offices will remain open until 8:00 p.m. local time and the call center will be available until midnight PST on the day of the deadline.

In September, after receiving feedback from potential applicants, nongovernmental program administrators, and community-based organizations, USDA extended the deadline to January 13, 2024. This provided potential applicants six months to prepare applications. The previous deadline was October 31, 2023. There will be no further extensions to the deadline.

Applications submitted after the following deadlines will not receive consideration:
    Applications submitted by mail (including overnight mail) must be postmarked no later than January 13, 2024.
    Applications submitted in person at a local office must be received by 8 p.m. local time on January 13, 2024.
    Applications submitted online must be submitted (not merely started) by 11:59 p.m. PST on January 13, 2024. Online submissions must use the website portal—applications and supporting documentation received by email are not able to be considered.

After the application deadline, local offices will be open until January 17, 2024, to allow for timely drop off of supporting documents for applications submitted by January 13, 2024, but applications will not be accepted after January 13, 2024. All customer offices will be closed starting January 18, 2024. All customer offices will be closed starting January 18, 2024.

The program’s call center will remain open until after program payments are made, from 8 a.m. EST to 8 p.m. PST, with English- and Spanish- speaking agents available, seven days per week (except Federal holidays) for the next several weeks, and weekdays after February 18, 2024.

Since the passage of the Inflation Reduction Act, USDA has worked diligently to design DFAP in accordance with the law and with significant stakeholder input. This includes working closely with the non-governmental program administrators who are conducting outreach, assisting with the financial assistance application process, processing applications, managing program call centers, and operating local offices. USDA has also worked with eight trusted community partners who are also providing outreach and application support. The entities involved in the DFAP application process have engaged in outreach at the local, state, and national levels. Thousands of virtual and in-person outreach and technical assistance events have been conducted across the country, in addition to the assistance provided at local program offices.

For the purposes of this program, a claim of discrimination may be based on different treatment you experienced because of race, national origin or ethnicity (including status as a member of a Native American Tribe), sex, sexual orientation, gender identity, religion, age, marital status, disability, or in reprisal/retaliation for prior civil rights activity. The information submitted through the application form is the only application requirement for this program. Incomplete applications will be evaluated on the basis of the information that is included. There will not be any hearings, appeals, or other processes to apply to this program. Potential applicants are encouraged to apply in advance of the deadline to allow time to resolve any questions on the application.



NEW CAMPAIGN USES ART & FACTS TO EXPOSE THE DAIRY INDUSTRY
press release

The renowned anonymous street artist, Praxis, animal activist Jamie Logan, and the non-profit, The Truth About Diary, have launched a daring new multi-city campaign entitled, “Peeling Back the Veil.” The art-centric campaign features impactful billboards, posters, demonstrations and an LED video truck featuring undercover footage taken from dairy farms.

The campaign accuses big agriculture of lying to the public and employing false and grossly misleading advertising terms such as “happy cow,” “locally sourced,” and “grass-fed.” Flying in the face of these claims is the statistic that 90% of animals raised for food are factory-farmed, according to the Johns Hopkins Bloomberg School of Public Health.

Praxis’ striking murals serve as visual narratives, challenging viewers to confront dairy consumption's ethical and environmental implications by metaphorically peeling back the veil on the industry's practices. The campaign’s call to action is to use the QR code which directs viewers to www.thetruthaboutdairy.com.

Discussing the timeliness of the campaign, Praxis states, “I cannot sit idly by while the archaic dairy industry inflicts cruelty and suffering. I use my art as my voice to speak up for those who cannot.”

The billboards are now up in New York City and are set to debut in Los Angeles, Denver, Sacramento, and the New York state capital of Albany. In addition to the new billboards, posters and demonstrations will be displayed in various cities including New York, Philadelphia, Los Angeles, and San Francisco.

Grassroots activist Jamie Logan discusses the opportunity that this presents by stating, “Billboards are critical for mass exposure as those of us who care passionately about the welfare of animals strive to reach the widest audience possible.” She further adds, “Partnering with Praxis and The Truth About Dairy ensures this campaign includes both rational and emotional elements.”

“The campaign comes on the heels of the dairy industry ramping up its own advertising spend in what appears to be a desperate move,” states marketing executive Lori Amos. Lori further states, “To stay relevant, Big Dairy has hired notable celebrities such as Queen Latifah, Cardi B, and Aubrey Plaza to hawk dairy and they do so with not-so-subtle jabs towards the growing plant-based dairy category.” According to the U.S. Department of Agriculture, dairy consumption has declined from 45 gallons per person in 1945 to less than 16 gallons per person in 2022.



Carbon, Oxygen and Hydrogen Fertility in Corn Production

Phosphorus, potassium, sulfur and nitrogen. All are traditional nutrients growers plan to put into soil each year to help maximize their yield potential. But did you know there are three other major components that are often overlooked?

Carbon, oxygen and hydrogen make up nearly 94% of the dry weight of the corn plant and play a pivotal role in grain yield. But they are rarely, if ever, part of a fertility plan. Instead, these nutrients are considered “freebies” because they do not need to be applied as fertilizer in crop production.

Carbon, oxygen and hydrogen are principal components of starch, protein, oil and fiber, which comprise about 85% of the final grain yield. The remaining 15% is water. They are important nutrients, but what can corn producers do to increase carbon, oxygen and hydrogen uptake?

The key to managing these essential nutrients is to manage soil water. If the soil contains too much water, mitochondria in the corn root cells suffocate from lack of oxygen and die, leading to overall root death.

If the soil contains too little water, evapotranspiration is limited, plant stomates close, and very little carbon dioxide and oxygen are captured in stomatal chambers. Reduced carbon dioxide levels limit the amount of carbon that is converted into sugar. Reduced oxygen levels inhibit mitochondrial respiration for energy production. Limitations of both functions reduce grain yield.

As long as soil water content is greater than the wilting point and not over field capacity, corn grows properly. Management practices to better ensure maximum corn growth and yield include:
    Install tile drainage to more rapidly remove excess water during rainy periods.
    Manage soil tillage to create a soil structure that allows maximum water percolation and capture from rain or irrigation.
    Improve the soil structure to allow better water retention.
    Conserve soil moisture by maintaining surface residue to reduce evaporation.
    Fertilize properly to allow the corn plant to efficiently capture carbon.
    Select hybrids that perform well in drier environments.