Monday July 15 Ag News

 Biden-Harris Administration Invests $110 Million in Meat and Poultry Processing to Strengthen Food Supply Chain, Increase Competition, and Lower Food Costs

U.S. Department of Agriculture (USDA) Secretary Tom Vilsack announced today that the Biden-Harris Administration is making investments that will strengthen American food supply chains, increase independent meat and poultry processing capacity, create more, new and better markets for producers, and lower food costs.

Thanks to funding from President Biden’s American Rescue Plan, USDA is investing nearly $110 million through the Meat and Poultry Processing Expansion Program (MPPEP) and the Local Meat Capacity (Local MCap) Grant Program.

“The Biden-Harris Administration and USDA are advancing a sustainable vision of agriculture that prioritizes the needs of hardworking producers and small businesses and keeps rural communities strong,” said Secretary Vilsack. “Thanks to historic resources from President Biden’s American Rescue Plan, USDA is working to give farmers and ranchers a fairer chance to compete in the marketplace, which will increase local food options and lower costs for American families.”

The investments are part of USDA’s efforts to create a more competitive agricultural system, advance President Biden’s Investing in America Agenda, and support the Administration’s Action Plan for a Fairer, More Competitive, and More Resilient Meat and Poultry Supply Chain, which dedicates resources to expand independent processing capacity. Together these actions help to lower food costs by spurring competition and strengthening supply chains.

Meat and Poultry Processing Expansion Program

Nebraska
ASC Lockers LLC, West Point - $1,062,155 grant
ASC Lockers is a small red meat processor that has been in business since 2012. Located in Cuming County, one of the top five counties nationally in terms of cattle production, ASC Lockers will double their processing capacity as well as their staff, adding 12 new full-time staff as a part of this project. With the expanded capacity, ASC Lockers will offer significantly more processing availability and services to local producers selling directly to consumers and into local schools, restaurants and grocery stores.

Noah's Ark Processors LLC, Hastings - $10,000,000 grant
Noah's Ark Processors is a based in Hastings, Nebraska and is one of three Kosher beef distributors in the country. With support from MPPEP - Phase 2, they will double their cattle slaughter and processing capacity by expanding their facility and its processing floor. This expansion will allow Noah's Ark Processors to serve an additional 54 producers while fully meeting the domestic and international demand for Kosher beef. This project is expected to create 40 new jobs.

USDA’s Rural Development has provided 59 awards totaling over $291.4 million through MPPEP to expand processing capacity and strengthen the food supply chain. MPPEP is funded by President Biden’s American Rescue Plan.

Local Meat Capacity Grant Program
USDA is awarding $26.9 million to 33 projects in 23 states through the Local Meat Capacity (Local MCap) grant program to expand processing within the meat and poultry industry. Today’s announcement builds on the first round of $9.5 million awarded to 42 projects announced in March 2024.

This second set of awards through Local MCap is for both Equipment Only and Processing Expansion project types. Simplified equipment only projects fund projects from $10,000 to $250,000 to purchase processing equipment such as meat grinders, stuffers, and smokers. Processing expansion projects are eligible to receive between $100,000 and $5 million to increase processing or rendering capacity through activities such as facility upgrades, equipment purchases, and training. For example:

Promoting Iowa's Livestock Slaughter and Value-Added Processing
Recipient: Nelson Locker
City: Hartley, IA
District: IA-004
Project Type: Simplified Equipment Only
Award Amount: $248,178
Nelson Locker, located in rural northwestern Iowa, has been operating in their community since 1968 as a service provider of livestock slaughter and raw further processing. USDA grant funding will be directed towards equipment upgrades in their processing and retail room as well as cold storage, notably replacing old machinery with modern technology such as an Enviro-Pak Smokehouse, Thompson Grinder, and a Biro Band Saw. These enhancements will streamline  operations, enable the launch of new value-added product lines, support the creation of two new full-time jobs and allow Nelson Locker to serve 25% more producers.

In April 2023, USDA announced up to $75 million available for Local MCap to fund innovative projects designed to build resilience in the meat and poultry supply chain by providing producers with more local processing options and strengthening their market potential. This grant program is targeted to support meat and poultry processors with smaller-scale projects, with a goal to increase processing availability and variety for local and regional livestock producers. The program is administered by the Agricultural Marketing Service (AMS) and is authorized by the American Rescue Plan.



Forage Field Day set for August 6

I-29 Moo University, SDSU Extension, University of Nebraska-Lincoln Extension, and the Northern Plains Forage Association will co-host a field day for forage producers from 9:15 a.m. to 3:30 p.m. on Aug. 6 at the Haskell Ag Lab in Concord, Nebraska. Check-in begins at 8:45 a.m.

Forage Field Day is a regional event that brings together experts, producers, and industry professionals to provide field tours, panel discussions and presentations on forage-related topics. Registration is required and can be completed at https://go.iastate.edu/OSTYGR.

This year’s event kicks off with a listening session for an alfalfa revenue insurance program with AgriLogic Consulting and the National Alfalfa and Forage Alliance. The session will give producers and industry members an opportunity to learn about the product and provide input.

For cattle owners, Wisconsin dairy farmer Daniel Olson will speak on growing and using digestible forages in dairy rotations, and Shelby Gruss, Iowa State University assistant professor and Extension Forage Specialist, will talk about optimizing forage availability with cover crop grazing.

Other sessions will feature AgSpire, a sustainable agriculture consulting agency; alfalfa diseases and pests; a workshop dedicated to making a silage harvest plan; a panel discussion by event speakers; and a visit to cover crop plots with a presentation on summer annuals for forage and soil health.

Sara Bauder, SDSU Extension Forage Field Specialist, said the event’s goal is to provide hands-on and classroom experience evaluating forages and management practices that producers and industry professionals can use.

“The word forage encompasses so many different things and different crops,” Bauder said. “There’s always something new to look at. We have a lot of high-quality private and commercial forage producers in this region. This is a unique event because it focuses on forages specifically.”

Participation is free for students and Northern Plains Forage Association members, or $30 for non-members. Reduced price registration is being offered through several forage grower and dairy groups in the region.

Registration is required and can be completed at https://go.iastate.edu/OSTYGR.

For more information on the event and reduced-price registration, contact Fred Hall, Iowa State University Extension and Outreach Dairy Specialist, at 712-737-4230 or fredhall@iastate.edu.



Papio NRD Board of Directors Elects Officers

At its July 11, 2024, meeting, the Papio-Missouri River Natural Resources District Board of Directors elected officers to serve the District for the coming year (July 2024 – July 2025).

Tim McCormick in Subdistrict 4 was elected Papio NRD Board Chairperson. Larry Bradley in Subdistrict 3 will serve as Vice Chairperson.

Richard Tesar in Subdistrict 5 was re-elected as both Papio NRD Board Secretary and Nebraska Association of Resources Districts (NARD) Director.

Tim Fowler in Subdistrict 8 was re-elected to serve as Papio NRD Board Treasurer and NARD Alternate Director. Patrick Bonnett in Subdistrict 9 was re-elected Assistant Treasurer.

The Papio NRD Board of Directors is an 11-member board that sets policy for Papio NRD programs and projects and oversees the District’s annual budget.



Nebraska's Dostal starts with USGC

Emma Dostal joined the U.S. Grains Council as communications coordinator and will be responsible for the department’s administrative tasks and supporting the development of the Council’s weekly newsletter, social media pages and website.

Dostal is a recent graduate from the University of Nebraska and interned with the Council during the summer of 2022. She also has experience as a communications intern for the Nebraska Water Center and as a public and congressional affairs intern at the U.S. Department of State.

“I’m thrilled to welcome Emma back to the team in a permanent capacity after her successful internship with us,” said Bryan Jernigan, USGC director of communications. “Her familiarity with the Council’s mission, membership and procedures will help her hit the ground running and be a strong asset to the communications department.”



Nebraska Grazing Conference Scheduled for August 6 & 7 in Kearney

The 2024 Nebraska Grazing Conference will be Aug. 6 and 7 at the Younes Conference Center in Kearney, Nebraska.  This year’s conference features speakers highlighting soil health and grasslands as well as a session on public wildlife and private rangelands.

A field tour kicks off the conference on Tuesday, Aug. 6 from 9 to 11:30 a.m. at the Platte River Prairies south of Wood River.  Grassland soils and soil health will be the focus of this field activity.  The field tour discussion will be led by Chris Helzer (The Nature Conservancy), Patrick Freeze (Ward Labs), and Greg Pec (University of Nebraska — Kearney).  There is no fee to attend the field tour.

The formal part of the conference will begin Tuesday at 1 p.m. with recognition of the Trumler Ranch, who was the 2023 Leopold Conservation Award winner.  Chris and Jenifer Trumler operate the ranch near Rockville, Nebraska.

The primary focus of the afternoon program will be on soil health and grasslands with speakers covering soil health measurements, carbon markets, grassland productivity, and grassland stability.  Speakers include Jerry Hatfield (USDA-ARS), Bijesh Maharjan (University of Nebraska — Lincoln), Dave Wedin (UNL), and Riley Hackbart (USDA-NRCS).

On Tuesday evening, there will be a banquet with Dr. Ray Ward as the featured speaker. Dr. Ward will reflect on a career in soils and plant quality analysis.

The second day of the conference is devoted to the topic of public wildlife and private rangelands.  Speakers include Larkin Powell (UNL), Jenny Prenosil, Luke Meduna, and Adam Kester (Nebraska Game and Parks Commission).

To learn more about the conference or to register, or for information for sponsors or exhibitors, go to https://grassland.unl.edu/nebraska-grazing-conference .  Questions about the conference may be directed to Jerry Volesky at jerry.volesky@unl.edu.

Sponsor and exhibitor booths will showcase new programs, equipment, and products to conference participants.



ALEC-sponsored workshops boost ag educators’ animal science knowledge

Sometimes a helpful way to support Nebraska ag teachers is to treat them like a student. That’s been the theme since 2011 as agricultural educators participate in intensive summertime training sessions sponsored by the University of Nebraska–Lincoln’s Department of Agricultural Leadership, Education and Communication.

This year’s sessions, held June 18-20 at Lakeview High School in Columbus, focused on animal science and used the national Curriculum for Agricultural Science Education (CASE) program. Twenty-one ag instructors from Nebraska and five other states (Iowa, Kansas, Colorado, Arkansas and California) participated in about 40 hours of workshop instruction and activities.

"These professional development workshops allow teachers to gain hands-on experience, network with other teachers and feel empowered before entering their classrooms in the fall," said Monty Larsen, an ALEC faculty lecturer who provides outreach support for Nebraska agricultural and skilled technical science educators.

One lab involved study of livestock biology through reproductive tract dissections of beef, sheep and swine. In another lab, teachers created and used a calorimeter that calculated the energy level of various feedstuffs. In still another, educators studied and discussed pedigree data on the occurrence of physical traits from one generation to the next.

All materials and activities in the CASE Institute workshops are classroom-ready, to give the teachers a student perspective and promote educators’ classroom effectiveness in approaching the subjects.

Teachers each summer praise how the workshops facilitate networking among ag educators. "Participants develop a strong sense of community by going through the entire curriculum, much like students in their own classrooms," Larsen said. "This provides a network of colleagues who can offer suggestions or even provide support as they teach the curriculum."

ALEC has hosted CASE sessions each summer in Nebraska since 2011, with the exception of the COVID years of 2020-21. CASE training focuses each year on a different ag-education subject. Topics include animal science, plant science, environmental science issues, ag equipment maintenance and technology, and agricultural research and development.

"I can think of no other professional development which focuses on building community within the participants from the first day," Larsen said. "Participants frequently can network with each other either individually or in a small group setting. This is imperative for building a circle of mentors for young teachers who are entering a very high demand, yet demanding, career."

The demographics for the CASE training are similar to those for agricultural educators in Nebraska and nationwide. More than 50% of the workshop participants have less than five years’ experience.

"So, younger teachers understand the benefit of having valuable curriculum, which is engaging, inquiry-based, with a focus on STEM and careers," Larsen said. "But these professional development opportunities aren’t just for young or inexperienced teachers. There were several teachers with over 10 years of experience using this professional development to hone their craft and fortify teaching strategies as well as curriculum."

The ALEC Department, Larsen said, "is committed to developing a strong professional relationship with each agricultural educator in our state to maintain a high level of great agricultural educators through outreach and support of their faculty and staff."



Smith Statement on EPA's Announcement of Delayed RVO Timeline

Rep. Adrian Smith (R-NE), released the following statement regarding the Environmental Protection Agency's recent announcement it expects to finalize Renewable Volume Obligation (RVO) numbers for biofuels under the Renewable Fuel Standard (RFS) for years 2026-2028 in December 2025, despite a statutory requirement the RVO numbers be finalized November 1, 2024.

"Long-term planning is crucial for the ability of American producers to meet consumer demand for biofuels and move the agriculture industry forward. By again ignoring the statutory deadline and delaying the announcement of 2026 RVOs, President Biden’s EPA will leave hard-working farmers, consumers suffering under inflated fuel prices, and rural economies in the lurch. I urge the administration to reconsider its negligent posture and expeditiously propose robust RVO numbers to strengthen American energy independence."



Ricketts Blasts EPA’S RVO Timeline Delays: “Another Example of Biden’s War on American Energy Producers & Consumers”

Today, U.S. Senator Pete Ricketts, Ranking Member of the Environment and Public Works Subcommittee on Clean Air, Climate, and Nuclear Safety, blasted the Biden Environmental Protection Agency for announcing expected delays to finalize Renewable Volume Obligation (RVO) numbers:

“Delaying the announcement of 2026 RVOs is yet another example of Biden’s war on American energy producers and the consumers that rely on them. With gas prices up over 48% since Biden became President, the U.S. should be prioritizing renewable fuels production. American-made biofuels save consumers money at the pump, make us less reliant on foreign oil, and create good jobs in rural states like Nebraska.”

The timeline delays will impact biofuels under the Renewable Fuel Standard (RFS) for years 2026-2028. The EPA announced finalized numbers will be published in December 2025, despite a statutory requirement the RVO numbers be finalized November 1, 2024.



Fischer Advances Additional $16 Million for Construction of Agricultural Research Service Facility at UNL

U.S. Senator Deb Fischer (R-Neb.), a member of the Senate Appropriations Committee, secured $16 million in additional funding for the U.S. Department of Agriculture (USDA) Agricultural Research Service (ARS) facility at the University of Nebraska-Lincoln’s (UNL) Innovation Campus.

The funding was included in the Fiscal Year (FY) 2025 Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act. It builds upon the $25 million Senator Fischer secured for the facility in the FY 2024 Appropriations Bill.

Senator Fischer also secured funding in this year’s bill to support both the National Drought Mitigation Center (NDMC) at UNL and the National Ag Producers Data Cooperative led by UNL.

The legislation, which must still be voted upon by the U.S. Senate and the U.S. House of Representatives, was advanced today by the Senate Appropriations Committee.

“This bill includes new funding for the second phase of construction of UNL’s ARS Center, which will expand Nebraska’s leading role in agricultural innovation. This hub for research will attract students, scientists, and industry leaders focused on turning research into products and solutions in the field,” said Senator Fischer.

Additional details on the Nebraska projects Senator Fischer secured are below.

ARS National Center for Resilient and Regenerative Precision Agriculture:
$16 million appropriated to continue construction of the ARS National Center for Resilient and Regenerative Precision Agriculture facility at UNL’s Innovation Campus.

NDMC at UNL:
Secured $3 million in program funding to help build resiliency to drought.

National Ag Producers Data Cooperative:
Secured $1 million in program funding to help promote collaboration between researchers and stakeholders to develop a framework for a standardized, secure system to process agricultural data.

Senator Fischer also secured language that would:
1) Prioritize ARS research critical for the beef industry at the U.S. Meat Animal Research Center in Clay Center, Nebraska.
2) Require the USDA to better utilize the Conservation Loan Program as a Precision Ag Loan Program.
3) Push the USDA to provide advanced cost share on the Emergency Conservation Program.
4) Require reporting on lab-grown and plant-based protein labeling.



Sac County ‘‘Batch and Build’’ Water Quality Projects Announced

Iowa Secretary of Agriculture Mike Naig announced today that the Iowa Department of Agriculture and Land Stewardship has formed a partnership with Sac County and the Sac County Soil and Water Conservation District to launch the first phase of the North Raccoon Edge-of-Field Project within the county.

Landowner outreach is just beginning within the county, but the initial goal of the first phase of this water quality project is to install more than 30 bioreactors and saturated buffers in the North Raccoon River watershed. These edge-of-field practices, which are outlined in the science-based Iowa Nutrient Reduction Strategy, are proven to improve water quality and reduce the loss of nutrients into Iowa’s waterways.

Iowa’s innovative “batch and build” model modernizes the project management process by installing batches of conservation practices on multiple farms at once, therefore allowing a faster acceleration of water quality progress. As a result of this efficient and cost-effective model, Iowa is setting records for conservation implementation, and is building momentum behind our statewide water quality efforts. To date, Iowa now has nine batch and build agreements in place that cover 16 Iowa counties including Sac, Calhoun, Wright, Cedar, Hardin, Jasper, Boone, Benton, Tama, Linn, Grundy, Black Hawk, Buchanan, Story, Polk and Dallas.

“I invite and encourage all Sac County farmers and landowners to learn about how they can join this exciting water quality partnership,” said Secretary Naig. “Saturated buffers and bioreactors are proven to keep nutrients out of our rivers, lakes and streams and our batch and build model gets them installed efficiently. We are building conservation momentum across Iowa and by forming this partnership in Sac County, we can accelerate the installation of these practices to further improve Iowa’s water quality.”

Sac County will act as the fiscal agent for the project and provide contracting oversight for practice installation. The Iowa Department of Agriculture and Land Stewardship will reimburse Sac County for eligible project construction costs and provide technical, design and engineering support. The Sac County Soil and Water Conservation District will enter into maintenance agreements with landowners, provide technical assistance and issue a certification upon completion. Agriculture’s Clean Water Alliance will lead landowner outreach and provide technical assistance to the project.

“I am looking forward to working with landowners in Sac County and coordinating with the Iowa Department of Agriculture and Land Stewardship, Iowa State University researchers and local contractors in completing the installation of water quality practices through a batch and build process,” said Brian Blomme, Drainage Engineer for Buena Vista, Calhoun and Sac Counties. “We all must work together in protecting and improving the quality of water and implementing the correct practices when it is cost effective to do so. I encourage any interested landowner to reach out to us if they are interested in participating”



CHS Reports Third Quarter Fiscal Year 2024 Earnings

CHS Inc., the nation's leading agribusiness cooperative, today released results for its third quarter ended May 31, 2024. The company reported quarterly net income of $297.3 million and revenues of $9.6 billion compared to net income of $547.5 million and revenues of $12.0 billion in the third quarter of fiscal year 2023. For the first nine months of fiscal year 2024, the company reported net income of $990.5 million and revenues of $30.1 billion compared to record net income of $1.6 billion and record revenues of $36.1 billion in the first nine months of fiscal year 2023.

Third quarter fiscal year 2024 highlights:
    Financial performance was solid across our segments, although earnings were down from historically strong results in fiscal year 2023.
    Revenues decreased due to weaker commodity prices.
    Weaker grain and oilseed demand led to an earnings decline in our Ag segment compared to the prior year.
    More challenging market conditions, including less favorable refining margins, led to lower earnings in our Energy segment versus the previous year.
    Our equity method investments, led by our CF Nitrogen investment, performed well in evolving market conditions.

"Through the first nine months of our fiscal year, we have delivered strong financial results, including the third highest net income in our history," said Jay Debertin, president and CEO of CHS Inc. "Although we continue to feel the adverse impacts of softening margins for ag and energy commodities, CHS is well positioned to navigate this commodity cycle downturn through a strong focus on cost control and efficiency. We are performing well and our supply chain investments enable us to connect farmers and member cooperatives with the inputs and services they need to help feed a growing global population."

Energy
Pretax earnings of $97.9 million for the third quarter of fiscal year 2024 represent a $101.1 million decrease versus the prior year period and reflect:
    Decreased refining margins due to higher industry capacity utilization rates bringing additional refined fuel supply to the market, partially offset by lower costs for renewable fuel credits
    Higher costs for heavy Canadian crude oil

Ag
Pretax earnings of $108.5 million represent a $125.0 million decrease versus the prior year period and reflect:
    Lower crush margins in oilseed processing due to weaker meal and oil demand
    Decreased margins for wholesale and retail agronomy products, partly offset by higher volumes sold
    Compressed margins for our grain and oilseed product category caused by softer demand for U.S. commodities as trade flows shift as a result of a competitive global grain market

Nitrogen Production
Pretax earnings of $52.4 million represent a $3.9 million decrease versus the prior year period, attributed to decreased market prices for urea and UAN.

Corporate and Other
Pretax earnings of $51.1 million represent an $18.2 million decrease versus the prior year period, primarily reflecting lower equity income from Ventura Foods, which experienced less favorable market conditions for oil-based food products.



New Study Showcases Corn Farming’s Contribution to the Economy

Corn growers were responsible for a $151 billion boost to the U.S. economy in 2023, according to a new report released this week by the National Corn Growers Association (NCGA).

The report, entitled NCGA Economic Contribution Study for 2023, looked at a number of ways in which corn growers shaped the economy, including  economic output, contributions to the gross domestic product, tax revenues, labor income and employment statistics.
 
“This report highlights the crucial role America’s corn growers play in our nation’s agricultural and economic value chain,” said NCGA Lead Economist Krista Swanson who authored the analysis. "The data show that growers remain deeply rooted in rural America where they serve as pillars of economic growth. They work to foster technological innovation, expand commercial opportunities, advance free trade, build the bioeconomy, and feed a hungry world.”
 
In 2023 U.S. corn farmers produced 15.3 billion bushels of corn, valued at $73.9 billion, across 289,382 farms dedicated to growing corn for grain, according to the report.
 
Corn grower production directly contributed $20.7 billion to the gross domestic product and provided $12 billion in labor wages and benefits.

The economic impact of corn farming extended across 524 different industry sectors in all 50 states, reinforcing its broad influence on the national economy.

The report comes as corn prices have dropped and corn growers face many challenges, including higher input costs, tariffs and some trade barriers. NCGA leaders say the report should serve as a reminder to policymakers that corn grower contributions are important.

“The data in this report illustrate the critical role farmers play in shaping the U.S. economy,” said Minnesota farmer and NCGA President Harold Wolle. “Yet, we are facing many challenges that need to be addressed by America’s policymakers. Our message to Congress is to act on legislative and regulatory issues, like the farm bill, that will support our work.”

The study relied on IMPLAN, an economic analysis software, to calculate the direct, indirect, and induced impact of corn farming for grain production on the U.S. economy at the state and national level.



NCBA Concludes Successful Summer Business Meeting

Grassroots members of the National Cattlemen’s Beef Association (NCBA) concluded a successful Summer Business Meeting in San Diego, CA last week. Cattle producers discussed top issues facing the cattle industry including risk management, taxes, and business regulation.

“Our grassroots members are the backbone of NCBA, and I am extremely proud of how they made their voices heard through our centuries old grassroots policy process,” said NCBA President and Wyoming rancher Mark Eisele. “The policies passed at the Summer Business Meeting will direct our association’s advocacy efforts in Washington to strengthen our industry’s profitability, reduce crippling government regulation, and safeguard our way of life for the future. Thank you to everyone who attended this meeting and spoke up on the issues facing our industry.”

The new policies passed by NCBA members direct the association to improve disaster relief and risk management programs, advocate for reduced capital gains tax, and oppose burdensome business registration and reporting requirements like the Corporate Transparency Act. Several existing policies were also renewed or amended.

NCBA members also discussed the implementation of USDA’s new animal disease traceability rule that will take effect in November.

“The USDA rule moves the cattle business forward allowing more efficient and accurate means of tracing animal movement in the event of a disease outbreak, which is crucial as diseases like Foot-and-Mouth Disease continue to spread around the globe,” said Eisele. “USDA has made the decision to switch from visually readable to both visually and electronically readable tags for certain classes of cattle moving interstate. NCBA has already secured funding to help defray the cost of making this change and we will continue pushing for additional funding and privacy for producer data. NCBA policy also supports the work of U.S. CattleTrace, which is an extremely important partner in the efforts to increase the adoption of EID tags and overall herd traceability. CattleTrace is an excellent resource for producers seeking to implement a traceability program for their herd.”

USDA’s traceability rule updates a previous 2013 rule that requires intact cattle 18 months of age or older, rodeo and exhibition cattle, and dairy cattle moving interstate to have a visually readable ear tag. The new traceability rule simply switches the type of tag from visually readable to both electronically and visually readable. This new rule will take effect on Nov. 5, 2024.

The Summer Business Meeting is one of two annual meetings to set policy for NCBA. Learn more about the NCBA grassroots policy process at ncba.org.



Beef Trade Update
James Mitchell, Ph.D., Extension Livestock Economist, University of Arkansas
    
USDA ERS published the latest beef trade data last week, showing a decline in beef exports compared to a year ago. Specifically, U.S. beef exports declined 2.9 percent in May compared to a year ago. Beef imports were 10.4 percent higher in May 2024 compared to last year. Total beef exports for January through May are 4.9 percent below 2023 levels, and Jan-May beef imports are 19.5 percent above last year.

The top five destinations for U.S. beef account for 76 percent of total beef of May 2024 beef exports. These countries include Japan, South Korea, China, Mexico, and Canada. Japan, the leading country for U.S. beef, accounts for 21 percent of total exports in May 2024. Five countries account for 83 percent of U.S. beef imports in May 2024. These countries include Canada, Australia, New Zealand, Mexico, and Brazil. Imports from Canada in May are 22 percent of the May beef import total.

USDA in the June WASDE forecasts 2024 beef exports at 2.818 billion pounds, or 7.2 percent lower than 2023 exports. The USDA forecast for 2025 beef exports is 2.500 billion pounds, or 11.3 percent lower than the current 2024 forecast. Several factors contribute to lower beef exports in 2024 and 2025. These factors include economic conditions in the U.S. and other countries, exchange rates, and the relative value of U.S. beef compared to our competitors. Perhaps it is more obvious that exporting more of something is difficult when less is produced.

Weekly U.S. beef production is averaging 1.5 percent below last year. USDA forecasts 2024 beef production at 26.657 billion pounds or 1.4 percent lower year over year. USDA forecasts a 4.6 percent decline in 2025 beef production. Most of the decline in current beef production comes from declines in cow slaughter. However, as smaller calf crops and fewer heifers when herd expansion does begin, fed cattle slaughter will decline significantly. So, domestic beef production will become one of the main factors contributing to lower expected beef exports when herd expansion begins.

USDA forecasts 2024 beef imports at 4.171 billion pounds or 11.9 percent higher than 2023 beef imports. The USDA forecast for 2025 beef imports is 4.225 billion pounds and is 1.3 percent higher than the current 2024 forecast. The domestic ground beef market is the main driver of U.S. beef imports and is highly correlated with the rate of domestic cow slaughter which is the other source of lean trim for ground beef.



Growth Energy Writes More Than Half of Fourth-Round HBIIP Grant Applications

Last week, Growth Energy—the leading voice of America’s biofuel industry—celebrated another round of applications for the U.S. Department of Agriculture’s (USDA) Higher Blends Infrastructure Incentive Program (HBIIP), writing more than half of all applications submitted by site count.

During the fourth round, Growth Energy wrote 64 percent of applications, including applications for 43 retailers servicing over 300 stores. This effort could result in more than 900 new E15 dispensers, nearly 400 new E85 dispensers, and over 500 new dispensers for biodiesel blends.

“Helping our retail partners to expand access to affordable, earth-friendly options at the pump is a core part of our mission at Growth Energy,” said CEO Emily Skor. “As consumer demand for higher biofuel blends like E15 continues to soar, our market development team is proud to have supported more than half of all Higher Blends Infrastructure Incentive Program applications this round.”

Since USDA opened the process in 2022, Growth Energy has helped a total of 100 retailers comprising over 800 stores file grant applications.  

USDA will offer one more round of funding opportunities this year with an option for a contingency round if there are leftover funds. Retailers interested in learning more or in getting help with higher blends infrastructure grants are encouraged to contact Growth Energy’s Market Development team at MarketDevelopment@growthenergy.org. Retailers can learn more about Growth Energy at the Retailer and Supplier Hub.