Friday August 16 Ag News

 Rural Mainstreet Economy Fell to 2024 Low: Farmland Prices Sink for Third Time in Past Four Months

For a 12th straight month, the overall Rural Mainstreet Index (RMI) sank below growth neutral, according to the August survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy.

Overall: The region’s overall reading for August sank to 40.9 from 41.3 in July. It was the lowest reading since November of last year. The index ranges between 0 and 100, with a reading of 50.0 representing growth neutral.

“Weak agriculture commodity prices, sinking agriculture equipment sales and declining farm exports pushed the overall reading below growth neutral for the 12th straight month,” said Ernie Goss, PhD, Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business.

This month, bankers were asked to compare the current business environment in their area to that prior to Covid-19. Approximately 22.8% reported business conditions were worse while 18.2% indicated business conditions were improved compared to pre-Covid. The remaining 59.0% indicated conditions had barely changed.

Farming and ranching land prices: For the third time in the past four months, farmland prices sank. The region’s farmland index fell to 45.5 from Julys 52.2. “Only 9.1% of bank CEOs reported that farmland prices expanded from July levels,” said Goss.

According to trade data from the International Trade Association, regional exports of agriculture goods and livestock for 2024 year-to-date were down $198 million, or 3.6%, from the same period in 2023.

Farm equipment sales: The farm equipment sales index for August slumped to 16.7, its lowest level since January 2017, and down from July’s 19.0. “This is the 13th straight month that the index has fallen below growth neutral. Higher borrowing costs, tighter credit conditions and weak grain prices are having a negative impact on the purchases of farm equipment,” said Goss.

Banking: The August loan volume index rose to a very strong 75.0 and was up from July’s 67.4. The checking deposit index slumped to 34.1 from 45.5 in July. The index for certificates of deposits and other savings instruments dropped to 52.3 from 65.9 in July.

Despite falling farm commodity prices and farm income, bankers, on average, reported loan delinquency rates had increased by only 1.1% over the past six months.

Bankers were asked to identify the greatest threat to regional banking operations over the next 12 months. Approximately 60.9% named falling farm commodity prices; 17.6% identified the Fed’s too high interest rates; 8.1% reported rising regulatory costs; 6.4% named low loan demand; and the remaining 8.1% identified other factors.

Below are the state reports:
Nebraska: The Nebraska RMI for August sank to 36.5 from 38.6 in July. The state’s farmland price index for August slumped to 43.6 from 50.3 in July. Nebraska’s August new-hiring index sank to 43.1 from 47.8 in July. According to trade data from the International Trade Association, exports of agriculture goods and livestock for 2024 year-to-date were up by $136.8 million, or 39.3% from the same period in 2023.

Iowa: August’s RMI for the state slumped to 44.2 from 49.5 in July. Iowa’s farmland price index for August improved to 53.4 from 50.9 in July. Iowa’s new hiring index for August rose to 51.6 from 49.0 in July. According to trade data from the International Trade Association, exports of agriculture goods and livestock for 2024 year-to-date were down by $12.6 million, or 1.4% from the same period in 2023.

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



USDA and Nebraska Award Over $2.5 Million to Projects that Strengthen Food Supply Chain Infrastructure

The U.S. Department of Agriculture’s (USDA) Agricultural Marketing Service (AMS) today announced it has partnered with Nebraska to award over $2.5 million for 15 projects through the Resilient Food Systems Infrastructure Program (RFSI) to build resilience across the middle of the supply chain and strengthen local and regional food systems.

“Projects funded through the Resilient Food Systems Infrastructure program are building strength and resilience in Nebraska’s food system, diversifying agricultural markets, creating new revenue streams for small and mid-sized producers, and providing economic opportunities for local communities,” said USDA Marketing and Regulatory Programs Under Secretary Jenny Lester Moffitt. “USDA is grateful for Nebraska’s support strengthening local and regional agricultural supply chains.”

Through this program, the Nebraska Department of Agriculture will fund 15 projects, including seven Infrastructure Grants and eight Equipment Grants to support middle of the supply chain infrastructure.

Examples of Funded Projects:
    The Ho-Chunk Community Development Corporation will use an Infrastructure Grant to purchase equipment and expand facility space to help tribal farmers scale up their food production and processing which will ensure the tribal community has access to locally sourced, healthy food year-round.
    Family Service Lincoln’s Community Crops program will increase access for underserved farmers by using an Equipment Grant to increase processing, cold storage, and transportation to wholesale and direct-to-consumer markets.
    Using Infrastructure Grant funding, City Sprouts will develop HarvestHub, a shared-use wash, pack, and processing facility in Omaha that will provide urban and peri-urban growers with a low-cost/free, food-safe indoor facility where they can efficiently wash, package, process, and store specialty crops before distribution to end-users.

This awarded funding is part of the $420 million available through Resilient Food Systems Infrastructure grant program to build capacity within the middle of the supply chain and support local and regional producers funded by the Biden-Harris Administration’s American Rescue Plan. Through this program, AMS has entered into cooperative agreements with state agencies, commissions, or departments responsible for agriculture, commercial food processing, seafood, or food system and distribution activities or commerce activities in states or U.S. territories.



ACE Leadership, USDA Secretary Vilsack Kicked Off 37th Annual ACE Conference in Omaha

The American Coalition for Ethanol (ACE) 37th annual conference kicked off in Omaha yesterday with remarks from U.S. Department of Agriculture (USDA) Secretary Tom Vilsack, as well as updates from the organization’s leadership, including ACE Board President Dave Sovereign, representing Iowa-based Golden Grain Energy, ACE CEO Brian Jennings and ACE Chief Marketing Officer Ron Lamberty, and a keynote address from Lee Blank, CEO of Summit Carbon Solutions.
 
Recognizing the two-year anniversary of the Inflation Reduction Act on August 16, Secretary Vilsack’s remarks touched on the Department’s investment in ACE’s Regional Conservation Partnership Program (RCPP) and its Higher Blends Infrastructure Incentive Program (HBIIP).
 
"As we mark the second anniversary of the Biden-Harris Administration's Inflation Reduction Act, we are celebrating the ways that this historic investment in clean energy is delivering on the President's promise to strengthen American energy independence, lower costs, and create lasting economic growth for generations to come," U.S. Department of Agriculture Secretary Tom Vilsack said. "USDA is working with ACE through the Regional Conservation Partnership Program to invest Inflation Reduction Act funds in the field as we create new markets for farmers and biofuel producers, and we are also working together to help make E15 more widely available to save millions of dollars for the American people while ensuring that producers can tap into additional opportunities like Sustainable Aviation Fuels. We appreciate our partnership with ACE to help communities invest in homegrown biofuels through the Higher Blends Infrastructure Incentive Program, which aims to lower fuel costs for families, generate new revenue streams for American farmers and businesses and bring good-paying jobs to rural communities."
 
Jennings remarks spoke to ACE’s work to make corn ethanol the undisputed, gold-standard, clean fuel of the future.
 
“Agriculture is part of ACE’s DNA, so we are in a unique position to set the standard, which is why the USDA has entrusted us to lead an effort ultimately designed to help ethanol producers and farmers unlock new markets and profit opportunities through climate-smart agriculture,” Jennings said.
 
The interest in ACE’s RCPP projects illustrates the importance of this work. Over the past few weeks, ACE has conducted meetings with more than 500 farmers interested in learning about the opportunity, and those farmers have expressed interest in enrolling nearly 250,000 acres in ACE’s project, approaching five times available funding.
 
“…despite the deep concern in rural America about corn prices, the farmers who attend our meetings understand how ethanol has benefited them over the years, and they are optimistic about the future opportunity to sell low carbon corn to ethanol producers,” Jennings said. “Farmers and ethanol producers are already part of the climate solution; the work ACE is doing will solidify corn ethanol as the gold-standard clean fuel of the future.”
 
Jennings’ remarks also covered how ACE is working alongside biofuel champions in Congress to continue pushing for legislation to allow E15 year-round, staying vigilant to protect the integrity of the Renewable Fuel Standard — particularly in light of the D.C. Circuit Court sending the small refinery exemptions (SREs) denied by the Biden Administration EPA back to the Agency for further review — and the work needed to help farmers and ethanol producers maximize on tax credit opportunities under the IRA.

In addition to ACE leadership and Secretary Vilsack’s remarks, Lee Blank provided an update on Summit Carbon Solutions’ pipeline project. Other Thursday general session speakers included Mackenzie Boubin with the U.S. Grains Council, who shared an update on ethanol markets around the globe; Marty Ruikka with The ProExporter Network, who shared biofuel feedstock projection realities for renewable diesel and sustainable aviation fuel; and a panel of speakers discussing the current state of GHG modeling and how to unlock new markets and tax credits with climate-smart agriculture. Visit ethanol.org/events/conference/ for more about the agenda and speakers, and the virtual newsroom for updates from the event.



HUSKER RESEARCHERS USE MACHINE LEARNING TO HELP IDENTIFY YIELD OPPORTUNITIES

University of Nebraska–Lincoln scientists have harnassed the power of machine learning and large-scale data analysis to enhance the Global Yield Gap Atlas, creating benefits for agricultural producers worldwide.

“This is very exciting. We are now able to estimate the yield potential for every single piece of cropland around the world,” said Patricio Grassini, professor with the University of Nebraska–Lincoln’s Department of Agronomy and Horticulture and principal investigator of the atlas.

The advancement offers producers an opportunity to benchmark current productivity and guide sustainable intensification of agricultural systems on a global scale, Grassini said.

Fernando Aramburu-Merlos, a research assistant professor in agronomy and horticulture, led the efforts to develop a “metamodel” approach that takes advantage of machine learning’s ability to assemble and analyze a complex range of soil, climatic and cropping system information.

The resulting maps, focusing on corn, wheat and rice, provide highly detailed and accurate information on how much of a crop can be produced at a specific location under the best conditions.

“With this metamodel, we take full advantage of the large amount of data collected by the atlas over the last 12 years to get a global product that is ready and easy to use by scientists, farmers and companies,” said Aramburu-Merlos, an expert in crop simulation modeling.

Aramburu-Merlos and coauthors explain the refined analytical approach in a new paper recently published in the journal Nature Food.

“Over the past decade, substantial improvements in computing power, spatial information on soil and climate, and advancement in the use of machine learning for geospatial analysis have provided new tools that can help address the limitations of bottom-up and top-down approaches,” the authors wrote.

Aramburu-Merlos, who joined Grassini’s lab as faculty in 2022, has strengthened the department’s expertise in computational and crop simulation. Aramburu-Merlos and Grassini coauthored the new paper with Martin van Ittersum and Marloes P. van Loon at Wageningen University and Research in the Netherlands, who are co-leading the Global Yield Gap Atlas initiative.

The metamodel approach enhances the atlas’s existing bottom-up methodology, incorporating a broader range of data sets and applying an analytical approach that improves accuracy. This allows ag producers to access detailed, location-specific data for yield potential.

With this information, farmers can diagnose their current performance and explore strategies to close the gap between actual and potential production, considering local climate and soil conditions.

“Applications go well beyond farm level,” Grassini said. “The refined capacity to estimate yield potential offers governments, international organizations and charitable foundations with a transparent and objective approach to understand where the largest opportunities for yield improvement exist.

“(The metamodel data) provide key inputs to inform their investments on agricultural research and development programs.”



Nebraska Cattlemen Announces Hire of Ashley McClinton as Office Manager

Nebraska Cattlemen is pleased to announce the hire of Ashley McClinton as the office manager. Ashley McClinton is a native of Louisiana and made Lincoln, Nebraska her home in November 2019. She holds a BA in Theatre from Centenary College of Louisiana and an MFA in Stage Management from the University of Missouri, Kansas City. After working throughout the country for various professional theatre companies, she landed in Pittsburgh, Pennsylvania for 10 years where she worked in administrative coordinator, executive assistant, and event planning positions at Carnegie Mellon University. After moving to Lincoln, Ashley served as the Administrative Coordinator for the Nebraska Farm Bureau Foundation where she supported a thriving team promoting agricultural education throughout the state.

Ashley is married to John McClinton, a Senior Farm Bill Biologist with Pheasants Forever, and mother to 11-month-old Buddy McClinton.

Ashley stated, “I am thrilled to join the team of Nebraska Cattlemen! After relocating to Nebraska in late 2019 I quickly became immersed in the robust agriculture industry and its thriving culture. I am blessed to continue to work with producers, via the Nebraska Cattlemen, and help support all their endeavors for the great Beef State!”

Executive Vice President, Laura Field said, “I am excited to have Ashley joining our team at Nebraska Cattlemen. She brings a wealth of experience and knowledge to the office manager role and will be a great asset to the membership.”

McClinton will begin her duties on August 28, 2024.



439 Century and Heritage Farm Families Honored at the 2024 Iowa State Fair

Iowa Secretary of Agriculture Mike Naig and Iowa Farm Bureau Federation President Brent Johnson honored 439 Iowa farm families with Century or Heritage Farm designations at the 2024 Iowa State Fair. The program celebrates farms that have been owned by the same families for 100 and 150 years, respectively.

This year, 277 Century Farms and 162 Heritage Farms were recognized during ceremonies in the historic livestock pavilion on the Iowa State Fairgrounds. To date, more than 21,000 Century Farms and 2,000 Heritage Farms have been recognized throughout Iowa. The Century Farm program began in 1976 as part of the Nation’s Bicentennial Celebration. The Heritage Farm program began in 2006.

“The families that own and steward Century and Heritage Farms play a crucial role in maintaining Iowa's rural tradition, contributing to our state's identity, and sustaining our agricultural economy. Year after year and decade after decade, through hard-won successes and by overcoming obstacles, these innovative families embody remarkable strength, resilience, and grit,” said Secretary Naig. “The opportunity to celebrate each family’s legacy, hear their inspiring stories and personally congratulate each family makes this unique event my favorite of the entire year.”

The recognition is made possible through a partnership between the Iowa Department of Agriculture and Land Stewardship and the Iowa Farm Bureau Federation.

“Being recognized as an Iowa Century or Heritage Farm is a testament to the work ethic and perseverance required to reach that milestone,” said Brent Johnson, Iowa Farm Bureau Federation President. “It’s a privilege to honor these hardworking farm families and celebrate their family farm legacies and the positive impact made on our state.”  



Iowa fair dairy show stays strong

The number of dairy exhibitors at this year’s Iowa State Fair remains consistent with 2023, despite concerns about the spread of avian flu.

The required testing of cows for the virus has slightly changed the makeup of participants, with more heifers female cattle that have not yet produced milk present this year compared to milking cows.

According to Mike Eilers, superintendent of dairy cattle for the fair, “overall, the numbers are similar to last year,” but many exhibitors chose to bring only heifers to avoid the risks associated with milking during the fair.

This decision is a practical one, as milking has been identified as a potential vector for the virus. As a result, the fair has shut down its “I Milked a Cow” activity and the milk parlor in the dairy barn.

Exhibitors with cows that need to be milked during the fair are required to bring their own equipment and safely dispose of the milk. Eilers noted that many producers keep their heifers in separate locations where they are not exposed to cows being milked, further reducing the risk of spreading the virus.

Despite these precautions, the quality of the livestock at the fair has not diminished. Eilers shared that this year’s heifer show was one of the best they’ve ever had, showcasing the resilience and dedication of the exhibitors.

Although Iowa has reported 13 outbreaks of the virus in dairy herds, all confined to the far northwest corner of the state, no new cases have been detected since late June.

The American Veterinary Medical Association, along with the U.S. Department of Agriculture, the Food and Drug Administration, and the Centers for Disease Control and Prevention, maintains that the commercial milk supply remains safe, as milk from infected animals is either destroyed or pasteurized, a process that eliminates harmful bacteria and viruses.

In response to the virus, Iowa Secretary of Agriculture Mike Naig announced in June that all cows slated for transport to fairs or shows must undergo testing within a week of the event.

This statewide order, effective July 1, aims to balance the opportunity for exhibitors to showcase their animals while protecting livestock and minimizing the potential spread of the virus.

Looking ahead, Eilers is optimistic that with continued testing and no new cases reported, the Iowa State Fair can return to normal operations by next year. “Hopefully this is not something that lasts for years,” he said.



Four Women Managing Farmland Forums Offered in September

Four Women Managing Farmland Forums and Annie’s Project 20th Anniversary Celebrations will be offered across Iowa in the first week of September. The free events take place on Sept. 3 in Atlantic, Sept. 4 in Iowa City, Sept. 5 in West Union and Sept. 6 in Storm Lake, from 10 a.m. to 3:30 p.m.

The one-day regional forums are a valuable opportunity to refresh your conservation, leasing and estate management skills while networking with other women in agriculture. Topics will include soil erosion and water management, landowner responsibilities and the economics of farmland, as well as trusts, taxes and succession planning.

Kristine Tidgren speaking to a class.Women of all ages make important decisions about land leasing, conservation practices and transition and estate plans. The forums are designed to help attendees meet their long-term farmland management goals. By combining strategies, women can design equitable farmland leasing, adoption of conservation practices and efficiencies in transitions to next generation farmers.

Well over 3,000 Iowa women completed Annie’s Project or Annie’s Inspired multi-session farm management courses since 2004. Nearly 1,000 women have participated in Women in Ag Leadership conferences since 2017. The changes these women made not only benefited their families, farms and agribusinesses, but also contributed to a stronger Iowa agricultural system through financially stable businesses, improved conservation practices and closer community networks.    

The forums are a thank you to all those who made Annie’s Project a successful program in Iowa and a welcome to all those who haven’t yet participated. Over the noon hour, there will be a pictorial slide show celebrating and honoring the contributions and milestones of Iowa women in agriculture over the past 20 years.  

Did you know …
    The number of Iowa women farmers counted in the USDA Census of Agriculture increased from 27,258 in 2002 to 50,263 in 2022.
    The percentage of women enrolled in Iowa State University’s College of Agriculture and Life Sciences increased from 43% in fall 2003 to 59% in fall 2023.

Each regional forum will be slightly different. The northeast Iowa forum will feature a tour of Susan Kuennen’s conservation practices and fen beginning at 8:30 a.m.; and local farmer Natalie Eick Paino will share her story of opening the gates at Hightail Delivery over the noon hour.

The southeast Iowa forum will feature Rabail Chandio, assistant professor, ISU Department of Economics and leading researcher for the annual Iowa Land Values Survey; as well as Ilsa DeWald, Johnson County local food and farm manager at Johnson County Historic Poor Farm, who will share about the power of women and diversity in agriculture.

Registration is free and required so that everyone has a chair and a lunch. Local agendas and online registration can be found at https://www.extension.iastate.edu/womeninag.

This program is financially supported by a USDA NIFA Critical Agriculture Research and Education grant (2021-68008-34180) and a Farm Credit Services of America gift through the Iowa State University Extension and Outreach Women in Ag program.



ASA President Testifies at Senate Appropriations Field Hearing

ASA President Josh Gackle of Kulm, North Dakota, was invited to testify August 15 at a Senate Appropriations Committee subcommittee field hearing titled, “Perspectives on the Future of Agriculture Research and Technology.”

Gackle, who grows soy and other crops alongside his dad and brother on their family farm, highlighted the positive impact of agriculture on the U.S. economy before providing an overview of funding streams related to agriculture research and technology and how the funding and related policies directly help soybean farmers.

“The benefits can be transformational and far-reaching, including generating a stable, sustainable supply of soybeans; improving farmer resilience; driving product development and market demand; and building efficient infrastructure. These benefits flow to farmers and throughout the entire value chain,” Gackle explained.

The third-generation farmer pointed to ASA’s Policy Resolutions book, developed annually by farmers and soy states, and which this year contains 26 resolutions specifically addressing agricultural research to support and maintain a viable, profitable, resilient and sustainable soybean industry.

“To plant, market, and transport over 80 million acres of soybeans each year, we rely on ag research and technology to move us forward,” said Gackle, who also addressed how research and development resources – public, private, and checkoff – have a high return on investment and are complementary.

Gackle cited specific and diverse examples of research and technology impacting agriculture: precision ag technologies that improve efficiencies of critical inputs, including land, water, fertilizer, and pesticides—but adoption of which is hampered by farmer affordability; investments in seed technologies that make production possible in colder, drier climates such as North Dakota; initiatives that support farmers’ mental health by improving understanding of farming’s very real challenges, identifying solutions, and connecting farm and ranch families with stress assistance services; new end uses and expanded global markets for soy; the building of efficient infrastructure, which is necessary for moving crops to market and enhancing the competitiveness of U.S. agriculture; and agriculture research to sha pe and inform both the industry and the public.

Importantly, the ASA leader explained how farmers, including those within the soybean industry, are contributing their own efforts and resources to support advances in research, innovation, and technology—including investing financial resources directly into critical projects through the soy checkoff. He emphasized the importance of protecting the soy checkoff from harmful amendments that may arise in the appropriations or farm bill reauthorization processes.

The hearing in Wheatland, North Dakota, was hosted by Senate Appropriations’ Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies, with North Dakota Senator John Hoeven presiding.



Inaction on Traceability is Unacceptable
By Mark Eisele, Wyoming Cattle Producer and NCBA President

The future of the U.S. cattle industry hinges on our ability to swiftly respond to disease outbreaks. Yet, some groups and individuals continue to fight the tools that could protect our livelihoods. The most recent rule to come under fire is USDA’s animal disease traceability regulation.
 
In the face of a potential FMD outbreak, every minute counts. The choice between outdated methods and advanced technology could mean the difference between a controlled situation and a nationwide catastrophe. Imagine the chaos of an FMD outbreak, with markets shuttered, and producers frantically searching for nearly illegible metal bright tags in the pouring rain. This is not a future we can afford. Some argue that these changes are unnecessary or burdensome, the reality is that clinging to outdated ideas, practices and technology puts our entire industry at risk.

USDA’s new rules call for the use of an electronic identification (EID) tag in breeding cattle, 18 months of age and older, being transported across state lines. This class of cattle has required an ID tag for more than a decade. USDA is simply changing the technology from a metal bright tag to an updated EID tag.

Innovation has always been the backbone of American agriculture. The use of EID tag technology is not just a step forward; it’s a necessity for an industry that must be prepared for anything in a time of porous borders and uncertain global politics. USDA’s rule will allow cattle to be tracked more quickly in the event of foot and mouth disease (FMD) or similar emergency, when time is critical. We all know that the metal clips in the ears of cattle are nearly impossible to read after a year or two. We also know that reading them, writing down the information from the tag and transferring it to a database is slow, cumbersome and subject to human error. These issues can be alleviated by simply running a wand over an EID tag, making traceability faster and less error prone.

There are still issues and concerns with USDA’s effort to upgrade technology. One of the issues that must be addressed is how data is gathered and stored. Producer privacy is paramount to this effort. NCBA has long advocated for tag data to be held by private, third-party companies, like CattleTrace, rather than USDA. A third-party holder of information helps protect producer privacy while also allowing the rapid traceback required in the event of a disease outbreak. Cost is the other factor that NCBA has worked to alleviate. To help lower the costs of USDA’s rule, NCBA was able to secure $15 million in funding for the purchase of EID tags, to ensure that cattle producers aren’t saddled with added compliance costs.
 
None of us in the agricultural community desire more government intrusion in our businesses or our lives. NCBA has stood on the front lines fighting, and might I say winning, many of those issues for decades. We have always stood for industry solutions to industry problems and worked to be proactive in creating those solutions. Those whose only answer is “no,” and those individuals and groups who would allow perfect to be the enemy of good, have created a vacuum that the government is more than happy to fill. It is past time for us, as cattle producers, to create an industry-led and industry-controlled solution to disease traceability. Our current system and the ability to rapidly respond to a real disease outbreak is insufficient to protect each of us and our livelihoods. Now is the time for the cattle industry to lead, not lag.