Friday September 20 Ag News

Rural Mainstreet Economy Fell to Early Pandemic Low - 40% of Farmers Expect to Lose Money in 2024

For a 13th straight month, the overall Rural Mainstreet Index (RMI) sank below growth neutral, according to the September 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 September sank to 37.5 from 40.9 in August. It was the lowest reading since the beginning of the pandemic in spring 2020. The index ranges between 0 and 100, with a reading of 50.0 that represents growth neutral.

“Weak agriculture commodity prices, sinking agriculture equipment sales and elevated input costs pushed the overall reading below growth neutral for the 13th straight month,” said Ernie Goss, PhD, Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business.

Farming and ranching land prices: For the fourth time in the past five months, farmland prices sank. The region’s farmland index fell to 43.8 from August’s 45.5. “Only 4.2% of bank CEOs reported that farmland prices expanded from August levels,” said Goss.

On average, bank CEOs expect farmland prices to decline by 5.3% in the next 12 months. “Of greater concern, approximately one-fourth of bankers anticipate a 10% to 20% downturn in farmland prices over the next year,” said Goss.

According to trade data from the International Trade Association, regional exports of agriculture goods and livestock for 2024 year-to-date were up by $57.0 million (0.8%) from the same period in 2023.

Farm equipment sales: The farm equipment sales index for September increased to 19.0 from 16.7. “This is the 14th straight month that the index has fallen below growth neutral. Higher borrowing costs, tighter credit conditions and negative farm income are having a negative impact on the purchases of farm equipment,” said Goss.

Across the region, bankers expect approximately 39.1% of farmers to experience negative 2024 farm income.

Below are the state reports:
Nebraska: The Nebraska RMI for September slumped to 35.1 from 36.5 in August. The state’s farmland price index for September dropped to 42.7 from 43.6 in August. Nebraska’s September new-hiring index sank to 42.7 from 43.1 last month. According to trade data from the International Trade Association, exports of agriculture goods and livestock for 2024 year-to-date were up by $140.1 million or 37.8% from the same period in 2023.

Iowa: September’s RMI for the state decreased slightly to 44.0 from 44.2 in August. Iowa’s farmland price index for September sank to 45.7 from 53.4 in August. Iowa’s new hiring index for September rose to 52.4 from August’s 51.6. According to trade data from the International Trade Association, exports of agriculture goods and livestock for 2024 year-to-date were down by $8.1 million or 0.8% 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 that covers 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.



Nebraska farm income surges to record $9.27 billion

The USDA Economic Research Service (ERS) reported that Nebraska’s net farm income surged to a record-setting $9.27 billion in 2023, a significant increase of $2.67 billion or 40 percent from 2022. This record level exceeded the previous high of $8.044 billion set in 2021 by more than $1 billion. Agricultural economists from the University of Nebraska and the University of Missouri had predicted last year’s income would be around $7 billion, making the new figures a surprising development.

The rise in Nebraska’s farm income marks the fifth increase in the last six years, with the state’s 40 percent growth second only to Oklahoma’s 44 percent increase. Nebraska was among just six states to experience income growth in 2023, while the national net farm income declined by 20 percent.

Livestock Sector Boosts Income:
The livestock sector was the primary driver of Nebraska’s income growth, with livestock receipts exceeding $18 billion for the first time, an increase of more than $2 billion from 2022.

Record-high cattle prices played a crucial role in this surge. Combined crop and livestock receipts reached a record $32.1 billion, making it the second consecutive year these receipts surpassed $32 billion. Nebraska’s receipts were the fourth highest in the nation, trailing only California, Iowa, and Texas.

Expenses and Government Payments:
Lower feed expenses, down by 24 percent, helped livestock producers increase profitability. While expenses for other inputs such as fertilizer, fuel, and electricity were up slightly by one percent, overall expenses rose by just three percent. This was a much smaller increase compared to previous years. Additionally, government payments contributed $624 million to the state’s income, up by $65 million from 2022.

Looking ahead, the ERS projects a four percent decline in U.S. net farm income for 2024. Nebraska’s updated farm income estimates are expected this fall, but it’s unlikely that the record $9 billion figure will be matched again this year.



Biden-Harris Administration Announces Final Awards through Landmark Meat and Poultry Processing Investment

U.S. Department of Agriculture (USDA) Secretary Tom Vilsack announced today that USDA is awarding more than $35 million in grants to 15 independent meat processors in 12 states to increase processing capacity, spur competition to expand market opportunities for U.S. farmers and create jobs in rural areas. This marks the final investment in the Meat and Poultry Processing Expansion Program (MPPEP), funded by President Biden’s American Rescue Plan, which was first launched in 2022.

The investments announced today also advance the President’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.

“For the past four years, the Biden-Harris Administration has advanced a sustainable vision of agriculture that prioritizes the needs of the hardworking producers and small business owners who keep rural communities strong,” Secretary Vilsack said. “Through investments like these, USDA is working to give farmers and ranchers a fair chance to compete in the marketplace, which will increase local food options and lower grocery costs for American families.”

Since the beginning of the program, USDA has provided 74 awards totaling more than $325 million through MPPEP to expand processing capacity and strengthen the food supply chain.

Many projects are still in development and have already increased the processing capacity at these facilities by more than 800,000 cattle, 14,000 hogs, 23 million chickens and 5 million turkeys annually. Additionally these projects are serving almost 900 additional meat and poultry producers and have created more than 1,200 new jobs.

As part of today’s announcement, the funding will help build new processing plants, create hundreds of jobs, give local producers and entrepreneurs better business opportunities, and give consumers more options at the grocery store. For example:

Nebraska - Borchard Custom Cut and Processing dba Dundy County Processors - $1,160,368
Dundy County Processors is a family-owned beef and pork processing business in rural Benkelman, Nebraska. Utilizing MPPEP - Phase 2 funding, they will construct a new facility to double processing capacity, begin operating under federal inspection, and significantly increase their production of value-added products. With this new increased capacity, they will be able to work with an additional 100 local producers. These improvements will also allow Dundy County Processors to access new wholesale and value-added markets.

The awards will benefit people living in Arkansas, Colorado, Hawaii, Idaho, Indiana, Michigan, Minnesota, Missouri, Montana, Nebraska, New York and Pennsylvania.



Watts selected to lead UNL Food Processing Center

Ellie Watts, an experienced leader with strong ties to Nebraska’s food processing industry, has been selected as the next Director of the Food Processing Center at the University of Nebraska-Lincoln. She will begin her new role Oct. 14.

Watts, a graduate of the UNL’s Food Science and Technology Department, has held a variety of roles within Nebraska’s food manufacturing and food processing sector. Over her 20-year career, she has held product development positions with TreeHouse Foods, Rembrandt Foods and ConAgra Brands. Most recently, she was the Director of Research and Development at ConAgra Brands.

Watts credits her UNL education, which included hands-on work in the Loeffel Meat Lab, with preparing her for a career in Food Science.

“It’s been really exciting to work in so many aspects of food processing, utilize the knowledge I learned at UNL as a student, dig into the industry, apply that to new product development, and now return to the University,” she said.

Located on Nebraska Innovation Campus and housed within the UNL Department of Food Science and Technology, the Food Processing Center is designed to support the food industry. The Food Processing Center provides a combination of consulting, educational, technical and business development services to both start-ups and established food businesses of all sizes. The director of the Food Processing Center manages business development relations, market the center’s capabilities, coordinates projects and ensures the center’s financial stability. The director also works to make sure the Food Processing Center is working collaboratively with the research, teaching and extension platforms of the university.

“The Food Processing Center plays a critical role in fulfilling our land-grant mission,” said Rich Bischoff, associate vice chancellor for UNL’s Institute of Agriculture and Natural Resources. “Ellie brings a wonderful blend of leadership, passion, expertise and energy to her new role, and I am excited to see how the Food Processing Center grows and evolves under her leadership.”

Watts said she was looking forward to many things about beginning her new role. She is excited to work with university experts in microbiology, food for health and food allergens and other areas. She looks forward to meeting Food Science and Technology students, many of whom work at the center to develop foundational skills that serve them throughout their careers. And she is excited to work with food manufacturing businesses and entrepreneurs across Nebraska and elsewhere.

“What I think is so exciting about the food industry is food is so personal for people.  With food, you are nourishing your family, you’re entertaining, you’re taking care of your health,” Watts said. “And at the Food Processing Center, we can leverage our largest industry and support our commodities while also creating something really personal for consumers.”



Commercial Red Meat Production Down 2 Percent from Last Year

Commercial red meat production for the United States totaled 4.59 billion pounds in August, down 2 percent from the 4.68 billion pounds produced in August 2023.

Beef production, at 2.29 billion pounds, was 3 percent below the previous year. Cattle slaughter totaled 2.70 million head, down 7 percent from August 2023. The average live weight was up 37 pounds from the previous year, at 1,388 pounds.

Veal production totaled 3.1 million pounds, 26 percent below August a year ago. Calf slaughter totaled 17,000 head, down 36 percent from August 2023. The average live weight was up 40 pounds from last year, at 313 pounds.

Pork production totaled 2.29 billion pounds, down slightly from the previous year. Hog slaughter totaled 10.9 million head, down 2 percent from August 2023. The average live weight was up 4 pounds from the previous year, at 282 pounds.

Lamb and mutton production, at 10.5 million pounds, was down 1 percent from August 2023. Sheep slaughter totaled 176,400 head, 4 percent below last year. The average live weight was 117 pounds, up 4 pounds from August a year ago.

By State    (million pounds - % of Aug '23)
Nebraska ......:       660.9            100       
Iowa ............:        743.6             97       
Kansas .........:        508.9             99       

January to August 2024 commercial red meat production was 36.4 billion pounds, up 1 percent from 2023. Accumulated beef production was down 1 percent from last year, veal was down 14 percent, pork was up 2 percent from last year, and lamb and mutton production was up 2 percent.



Iowa Governor’s Delegation, India Businesses Form Coalition for Future Development

The Honorable Kimberly (Kim) K. Reynolds, Governor of the State of Iowa, met with key agribusiness leaders during a roundtable discussion hosted by the U.S. Soybean Export Council (USSEC) in Mumbai on September 16, 2024. This meeting was a part of a larger trade mission being led by the Governor to explore investment opportunities, build relationships and expand trade in India.

Reflecting on the event, Governor Reynolds added, “During my time in India, I have learned that Iowa’s and India’s values and agricultural goals are aligned in many ways. This coalition demonstrates the strong relationship our two countries have and will be a catalyst for long-term success. Iowa is not only a great place to work, live, and invest but it can be a strong partner for agricultural trade to support India’s growth in the years to come.”

In 2022, U.S.-India trade of goods and services was valued at an estimated $191.8 billion.[1] But the potential for bilateral trade expansion and economic growth is yet to be unlocked. India and Iowa share many commonalities, as both rely on agriculture as the foundation for their economy.  For example, India is a leading country in egg production and Iowa is the largest producer of eggs in the United States.

Under Governor Kim Reynolds’ leadership, the India/Iowa coalition was formed with Balram Yadev of Godrej Agrovet and Brent Johnson of the Iowa Farm Bureau Federation as inaugural co-chairs, with USSEC as the convener. This significant partnership aims to increase cooperation in mutually beneficial activities focusing on food and nutrition security. Both India and Iowa are already aligned in their efforts toward workforce development, with Prime Minister Modi’s ‘Skills India’ initiative and Governor Reynolds’ ‘Preparing Iowa’s Next-Gen Workforce’ vision highlighting common goals in developing human capital and driving economic growth.

Remarking on this achievement, Mr. Yadev, Managing Director of Godrej Agrovet added “Collaboration is a key pillar to achieving success.  Both Iowa and India share many agricultural commonalities and we’re proud to be a co-chair on this historic achievement. Our actions here will pave the way for prosperity for many years to come.”

USSEC works in international markets across the globe, advancing global nutrition through capacity-building, knowledge sharing and delivering solutions across animal and human utilization sectors. This new alliance between India and Iowa will help expand market access, paving the way for a food and nutrition secure future.

“As India’s economy rapidly expands, two common constraints will emerge—access to raw materials and upskilling its labor force.  USSEC stands at the vanguard of addressing these two challenges and we’re proud to bring together a coalition of India titans and partners from Iowa to act as a catalyst for India’s continued growth,” remarked Kevin Roepke, Regional Director for South Asia and Sub-Saharan Africa for the U.S. Soybean Export Council.

Other notable attendees at the roundtable included The Honorable Michael (Mike) Naig, Secretary of Agriculture for the State of Iowa; Brent Swart, President – Board of Directors of the Iowa Soybean Association; Sandeep Singh, CEO of Bunge India; Sanjeev Asthana, CEO of Patanjali and Sudhakar Desai, CEO of Emami.



IFBF Hosts Summer Policy Conference in West Des Moines

Iowa Farm Bureau Federation (IFBF) voting delegates discussed and debated issues impacting Iowa farmers and rural communities during the two-day Iowa Farm Bureau Summer Policy Conference in West Des Moines early this month. The policies shaped by county Farm Bureau voting delegates provide the roadmap for the organization’s policy advocacy in 2025.

“Our unique grassroots policy development process includes input from all 100 county Farm Bureaus who surface and prioritize issues throughout the year,” said Iowa Farm Bureau President Brent Johnson.  “Members should be proud of their year-long effort to research, discuss and enact meaningful policy to move Iowa agriculture forward.”

Voting delegates discussed a variety of important state and national issues, including the USDA Young and Beginning Farmer Loan Program.  As agriculture faces several current economic challenges, delegates supported policy to improve the efficiency and loan options for the USDA Young and Beginning Farmer Loan Program.

Other policy discussions included livestock disease transmission, fence maintenance on government land, crop carbon intensity scoring and unmanned aerial system spraying, resulting in the established policies that will guide the organization in 2025.  As Iowa’s largest general farm organization, members representing all sectors of Iowa agriculture, and every county in the state, shared personal examples to highlight the impacts of policies on their farms.

IFBF’s Summer Policy Conference is the final step of the year-round grassroots policy process in each of the 100 county Farm Bureaus across the state. The policy set by delegates guides the organization’s policy direction for the upcoming year.  National policies are subject to debate during American Farm Bureau Federation (AFBF) policy discussions, which will take place at the AFBF Annual Convention in San Antonio, Texas, January 24-29, 2025.



Iowa Corn Collegiate Advisory Team Applications Now Open

Applications are open for the Iowa Corn Collegiate Advisory Team (CAT) program, which focuses on increasing college students’ understanding of the corn industry. During the one-year program, students will visit the Capitol, tour industry leaders' operations and expand their network and knowledge outside of the classroom. Applications are available on Iowa Corn’s website and are due September 27, 2024.  

“The Iowa Corn Collegiate Advisory Team (CAT) has had a profound impact on my agricultural journey, fostering both personal and professional growth,” said Delia Swanson of Iowa State College of Agriculture & Life Sciences. “Through my involvement with the CAT Team, I had the opportunity to network with peers from various colleges and universities across Iowa, all united by a shared passion for the agricultural industry. Building connections within the agricultural sector is so important, and programs like CAT play a vital role in helping young individuals, like myself, establish these networks early on in their lives.”

"Developing strong leaders is essential at Iowa Corn," said Ralph Lents, President of the Iowa Corn Promotion Board. "We, along with other commodity organizations, count on the leadership of dedicated farmers and producers to steer us forward. The Collegiate Advisory Team helps cultivate the careers and leadership potential of the next generation of farmers and agricultural industry leaders."

2024- 2025 Schedule of Events:
    Session 1: November 7-8, 2024 – Iowa Corn Office – Johnston, IA
    Session 2: January 23-24, 2025 – Capitol Visit & Iowa Corn Office – Des Moines, IA
    Session 3: April 3-4, 2025 – Iowa Corn Office, Farm Tour or Industry Tour
    2025 Iowa Corn Grassroots Summit (optional) – All college students and ICGA members are invited

Any post-secondary student who has completed high school and is attending an Iowa college of university to pursue a career in agriculture is encouraged to apply. If you or someone you know might be interested, please contact Denise Forney, Iowa Corn Vice President of Talent and Organizational Development at dforney@iowacorn.org. For more information, visit www.iowacorn.org/CAT.   



Naig Urges Iowans to ‘Keep Safety Top of Mind’ this Harvest Season

With the busy harvest season commencing across the state, Iowa Secretary of Agriculture Mike Naig is urging Iowans to keep safety top of mind in the field, around the farm and on the road. In recognition of National Farm Safety and Health Week, Secretary Naig has provided some safety tips for both farmers and drivers as well as resources for Iowans needing mental health support.

“As we enter this busy harvest season, I’m urging everyone to keep safety top of mind. There will be a lot of large equipment in the fields and on the road at all hours of the day and night, so I encourage everyone to slow down, show patience and give each other some grace. Let’s all do our part to ensure a safe and productive harvest season for everyone in the field, around the farm and on the road,” said Secretary Naig. “Given the stress, long hours and challenges in the ag economy, it’s also important for farmers and those involved in agriculture to prioritize their mental health and well-being. No one should have to face these challenges and struggles alone; there are resources and help available to Iowans.”

Farming can be physically exhausting and mentally demanding, and agriculture remains one of the most dangerous industries in America. By incorporating the following safety tips and resources, we can better ensure a safe and productive harvest season.

For Drivers and Road Safety
    Be Patient: Farm equipment often moves slowly. Be patient and wait for a safe opportunity to pass, considering that it may be difficult to see around large machinery.
    Keep a Safe Distance: Stay a safe distance behind farm equipment, especially when that equipment is turning or slowing down, to avoid collisions.
    Signal Awareness: Be aware that farm equipment may make wide turns and may not always be able to signal. Watch for hand signals or other indicators from operators.
    Avoid Distractions: Stay focused on the road and avoid distractions like texting or using your phone when driving near farm equipment.

For Farmers
    Safe Operation: Avoid shortcuts and stay alert while operating machinery.
    Emergency Equipment: Ensure a first-aid kit is well stocked, a fire extinguisher is in working order and your cell phone is charged and easily accessible at all times.
    Equipment Maintenance: Regularly inspect and maintain all farm machinery. Ensure that guards are in place and signals, lights and safety features are functioning properly.
    Proper Training: Follow the guidelines for operating equipment. Ensure that everyone operating farm equipment has proper training.
    Protective Gear and Chemical Storage: Wear appropriate personal protective equipment (PPE) such as gloves, goggles and hearing protection. Store chemicals in their original containers with proper labels and always use them according to their label.
    Safety Around Grain Bins: Never enter a grain bin unless necessary and only if you have proper training and safety equipment. Do not work alone.

Mental Health
    Stress Management: Engage in stress-relief activities and take breaks when needed. Activities such as exercise and hobbies as well as plenty of sleep can help.
    Talk About It: If you are feeling overwhelmed or stressed, do not hesitate to reach out to family, friends or mental health professionals. Iowa State University Extension and Outreach has farm stress resources available that were created in part through a grant from the Iowa Department of Agriculture and Land Stewardship.  
    Iowa Concern Hotline: The Iowa Concern Hotline at 1-800-447-1985 offers confidential mental health support and resources for those in need.

For additional resources on farm safety and wellness, visit the National Education Center for Agricultural Safety, Iowa’s Center for Agricultural Safety and Health, or the North Central Farm and Ranch Assistance Center.



U.S. Grains Council Builds Relationships In Panama

Earlier this month, the U.S. Grains Council (USGC) held a feed pelleting training for a major agricultural association in Panama to help enhance its feed formulas and improve livestock health. Pictured, USGC Marketing Specialist for Latin America (LTA) Angelica Rios (front, center) and USGC Feed Grains Consultant Alejandro Gonzalez (rear, leftmost) pose with attendees during the training seminar.

To strengthen and increase U.S. corn and corn co-product exports to Panama, the U.S. Grains Council (USGC) recently engaged with Coopagro, an association of 29 aquaculture, pork and poultry producers in the country, to conduct a feed pelleting training program for its members.

“Coopagro requested this training to enhance the efficiency of its pelleting operations and providing a great opportunity for the Council to gain a deeper understanding of the needs and use applications of different grains among Panamanian producers,” said Angelica Rios, USGC marketing specialist for Latin America (LTA).

Coopagro serves its membership by consolidating supply and production chains to offer a reliable and competitively priced source of animal feed. The organization accounts for nearly 20 percent of Panama’s annual corn imports, purchasing 120,000 metric tons each year, making it a valuable partner for the Council and the U.S. agricultural industry.

Rios was joined by USGC Feed Grains Consultant Alejandro Gonzalez and Auburn University Poultry Science Extension Specialist and Associate Professor Wilmer Pacheco for the program that attracted 20 stakeholders from Panamanian agricultural sectors.

The training began with an overview of the feed pelleting process, including strategies to improve mash conditioning, equipment operation, pellet quality and how to formulate diets depending on species. The program continued with several visits to local farms to observe how producers are using and implementing the pelleting process to enhance operational efficiency.

After the program, Rios and USGC Regional Director for LTA Marri Tejada met with Javier Ho, dry bulk leader at the Panama Canal Authority, to maintain a mutually beneficially relationship with the vitally important trade conduit.

“The U.S. and Panama enjoy a healthy trade partnership, and collaborating with organizations like Coopagro will be essential to increase U.S. corn exports to the country, especially as consumer demand for protein continues to rise,” Rios said. “This training program will result in higher-quality animal feed that benefits the livelihood of Panamanian producers and consumers and promotes livestock health, and simultaneously expands a market for U.S. growers.”