Friday October 18 Ag News

Rural Mainstreet Economy Falls to Four-Year Low
Farm Equipment Sales Fall for the 15th Straight Month

For a 14th straight month, the overall Rural Mainstreet Index (RMI) sank below growth neutral, according to the October 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 October sank to 35.2 from 37.5 in September. 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, elevated input costs and falling farmland prices pushed the overall reading below growth neutral for the 14th straight month,” said Ernie Goss, PhD, Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business.

Bank CEOs were asked which presidential candidate would be the most supportive of the Rural Mainstreet Economy. Approximately, 85.2% indicated former President Trump would be the most supportive of the rural economy with 3.7% naming Vice-President Harris and the remaining 11.1% identifying another candidate.

Approximately, 61.5% of bankers indicated that the financial position of farmers in their service area had deteriorated over the past six months. The remaining 38.5% reported that farmers’ financial position was unchanged over the past six months.

Farming and ranching land prices: For the fifth time in the past six months, farmland prices sank. The region’s farmland index fell to 38.5, a six-year low, from September’s 43.8. “Elevated interest rates and higher input costs along with below breakeven grain prices have significantly reduced farmer demand for ag land,” said Goss.

On average, bank CEOs reported that over the past six months, only 18.1% of farmland buyers were non-farmer investors.

According to trade data from the International Trade Association (ITA), regional exports of agriculture goods and livestock for 2024 year-to-date rose to $7.8 billion from $7.7 billion from the same period in 2023, for a 1.2% gain.

Farm equipment sales: The farm equipment sales index for October slumped to 18.8 from 19.0 in September. “This is the 15th straight month that the index has fallen below growth neutral. Higher borrowing costs, tighter credit conditions and farm income losses are having a negative impact on the purchases of farm equipment,” said Goss.

Below are the state reports:
Nebraska: The Nebraska RMI for October slumped to 33.5 from 35.1 in September. The state’s farmland price index for October dropped to 36.9 from 42.7 in September. Nebraska’s October new hiring index increased to 45.8 from 42.7. According to trade data from the ITA, regional exports of agriculture goods and livestock for 2024 year-to-date expanded to $571.8 million from $395.3 million from the same period in 2023, or a 44.6% gain.

Iowa: September’s RMI for the state decreased to 37.1 from 44.0 in September. Iowa’s farmland price index for October sank to 38.6 from 45.7 in September. Iowa’s new hiring index for October  rose to 52.8 from September’s 52.4. According to trade data from the ITA, regional exports of agriculture goods and livestock for 2024 year-to-date sank to $1.0 billion from $1.1 billion from the same period in 2023, or a 2.3% reduction.

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.



Donations Accepted to Help Western North Carolina Farmers

Stef Mundil grew up on a farm, with her two brothers and three sisters near Humphrey, helping their parents raise cattle, hogs and other small livestock. Her parents also raised field corn, seed corn and soybeans.

So, it probably should not come as a surprise that the Northeast Community College Health & Wellness instructor started to think about how horrible the recent hurricanes were, especially for the farm families in western North Carolina.

“Living in small-town Nebraska, my parents instilled in me that we are here on this earth to help our neighbors, give what we can, and always give our best away,” Mundil said.

She and her friends went into action, collecting supplies and making plans to get it to North Carolina.

“First and foremost, our concern is with the people of the Southeast. We do know that many people have lost their lives due to this terrible storm, along with their entire livelihood. Farms and livestock have been swept away by the flooding, and we put ourselves in their shoes and we would want someone to come and help us out. I envision western North Carolina being a little like Nebraska. People show up for each other and give more than they are able,” Mundil said.

On the Northeast campus, donation boxes can be found in the lobby on the upper and lower levels of the Ag, Allied Health Building and the Cox Activities Center lobby.

Larger, heavier livestock supplies -- such as feed, fence posts, farm supplies -- can be dropped off in the AAA parking lot across from Bomgaars in Norfolk on Saturday, Oct. 19, from 10 a.m. to 3 p.m.

Donations of new/gently used coats, gloves, hats, boots, etc. are also needed as the weather has begun to turn cold in North Carolina.

Throughout this process, livestock producers from around the Midwest have reached out with donations. And as word spread, Mundil and her friends were connected to others, including an individual in Nebraska who used to live in North Carolina and still has family and friends there.

“This has been extremely helpful when trying to line up donation drop-offs and determine what people are most needing at this time in the recovery process. We are planning to leave for North Carolina at the end of October. We will be pulling a stock trailer, hopefully jam-crammed with supplies,” Mundil said.

Donations at Northeast will be accepted through Friday, Oct. 25. Anyone with questions may email Mundil at stefanie@northeast.edu.

“As my friend has said daily since we decided to do this, God has put it on our hearts to help out, and the least we can do is travel a few hours to help a few people get back on their feet,” she said.



Blezek Awards Aim to Keep Agricultural Education Teachers in Nebraska

The Nebraska Farm Bureau Foundation awarded 20 teachers with funds in support of agricultural education and FFA programs in Nebraska.

“The Dr. Allen G. and Kay L. Blezek Teacher Retention Award is an investment in the future of Nebraska agriculture,” said Megahn Schafer, executive director of the Nebraska Farm Bureau Foundation. “We are very proud to support these teachers as they get established in their classrooms and communities. The return on investment is clear as the number of schools that offer agricultural education and FFA grows, and alumni go on to contribute to Nebraska’s number one industry.”

Recipients are all agricultural education teachers in their first through fifth year of teaching. Teachers are eligible for increasing awards over time. As the teachers’ impact grows in the classroom, in their FFA chapters, and in their communities each year, the award recognizes their service and supports their efforts.  A longtime program of the Nebraska Farm Bureau Foundation, the award was renamed in recognition of an estate gift from Dr. Allen Blezek. Dr. Blezek was an agricultural education teacher, the first director of the Nebraska LEAD program, and a founding member of the Nebraska Farm Bureau Foundation board of directors.

The 20 recipients of the scholarships are Nickolas Birdsley, Sarpy County; Danie Brandl, Platte County; Kaydie Brandl, Platte County; Kiley Codner, Hall County; Amanda Hafer, Madison County; Hunter Hill, Franklin County; Toriann Holly, Jefferson County; Cara Holtorf, Saline County; Karlee Johnson, Wayne County; Hallett Moomey, Buffalo County; Katie Nolles, Holt County; Jocelyn Pohl, Morrill County; Christy Schuler, Lancaster County; Kelsey Schulte, Nance County; Miranda Segner, Seward County; Kelsey Steinkraus, Chase County; Alex Stocker, Merrick County; Aurora Urwiler, Cedar County; and Payden Woodruff, Hall County.



Weekly Ethanol Production for 10/11/2024

According to EIA data analyzed by the Renewable Fuels Association for the week ending October 11, ethanol production increased 0.4% to a 4-week high of 1.04 b/d, equivalent to 43.76 million gallons daily. Output was 0.7% more than the same week last year and 3.0% above the five-year average for the week. Yet, the four-week average ethanol production rate decreased 0.2% to 1.02 million b/d, which is equivalent to an annualized rate of 15.71 billion gallons (bg).

Ethanol stocks ticked up 0.5% to 22.3 million barrels. Stocks were 5.5% more than the same week last year and 7.0% above the five-year average. Inventories built across the Midwest (PADD 2) and Gulf Coast (PADD 3) but thinned across the other regions.

The volume of gasoline supplied to the U.S. market, a measure of implied demand, recoiled 10.7% to 8.62 million b/d (132.51 bg annualized). Demand was 3.6% less than a year ago and 4.5% below the five-year average.

Refiner/blender net inputs of ethanol remained unchanged at 912,000 b/d, equivalent to 14.02 bg annualized. Net inputs were 0.3% less than year-ago levels but 1.6% above the five-year average.

Ethanol exports were estimated at 140,000 b/d (5.9 million gallons/day), which is 0.7% below the prior week. It has been 56 weeks since imports of ethanol were recorded.



Thousands of Farmers Could Unknowingly Face Federal Fines or Jail Time

Time is running out for thousands of farmers who may face steep fines and possible jail time for failing to file their businesses with the federal government. Jan. 1, 2025, is the deadline to file Beneficial Ownership Information (BOI) with the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN). New analysis in a Market Intel by American Farm Bureau Federation economists shows more than 230,000 farms are required to file, but government data indicates less than 11% of all eligible businesses nationwide have done so.

The Corporate Transparency Act of 2021 required businesses to register any “beneficial owner” of a company in an effort to combat money laundering. Many farms are structured as either a c-corporation, s-corporation or limited liability company (LLC), which are now required to be registered if they employ fewer than 20 employees or receive under $5 million in cash receipts – which covers the vast majority of farms.

“The use of LLCs is an important tool for many farms to keep personal and business assets separated, but small businesses often lack the staff to track and stay in compliance with changing rules and regulations,” said AFBF President Zippy Duvall. “It’s clear that many farmers aren’t aware of the new filing requirement. Unclear guidance and lack of public outreach are now putting thousands of America’s farmers at risk of violating federal law.”

Businesses that fail to file, or do not update records when needed, could face criminal fines up to $10,000 and additional civil penalties of up to $591 per day. Failure to file could also lead to felony charges and up to two years in prison.

“The greater farm economy will also be impacted by CTA requirements,” AFBF economists write. “Many feed and supply stores, crop marketers like grain elevators and the greater rural business community are also likely required to file their BOI and subject to penalties if they do not comply. The regulatory burdens and potential enforcement crackdowns could have ripple effects throughout the entire food, fiber and fuel supply chains.”

Farmers are encouraged to contact an accountant or attorney if they are unsure whether they are required to file their business's BOI with FinCEN.



Annual Grain Export Total Announced, Ethanol Sets New Record
USGC

The U.S. Department of Agriculture (USDA) recently released U.S. agricultural export data from marketing year 2023/2024. U.S. ethanol exports soared to more than 1.7 billion gallons, setting a new record in the process.

Export data for marketing year (MY) 2023/2024 has been released by the U.S. Department of Agriculture and sales of U.S. grains in all forms (GIAF) increased to more than $48 billion, bolstered by a record 1,746,490,298 gallons of ethanol sold internationally and a single-market record 23.4 million metric tons (924 million bushels) shipped to Mexico.

The new ethanol record does not include an estimated 140.5 million gallons of ethanol exported to Japan in the form of ethyl tert-butyl ether (ETBE), emphasizing the incredible accomplishments of the U.S. biofuels industry during the past year.

“We applaud U.S. farmers and producers for their outstanding efforts in increasing exports this marketing year, and especially to ethanol producers who continue their trajectory of outstanding growth to meet global market demands,” said Ryan LeGrand, U.S. Grains Council (USGC) president and CEO.

“While we are all taking time to celebrate the good news from the GIAF report, USGC staff members are already well into their work to make MY 2024/2025 even better for the U.S. agricultural industry and we look forward to continuing to develop markets, enable trade and improve lives on behalf of U.S. producers.”

Buoyed by its record corn imports, Mexico kept its place as U.S. agriculture’s number one overall trading partner, purchasing 35,016,923 metric tons (1,378,546,224 bushels) of GIAF equivalent. Japan moved into second place over China, a sign of success from the ongoing efforts of the Council and its partners to defend and expand the Japanese market from competing origins.

Colombia skyrocketed into becoming the fourth largest trading partner for U.S. agriculture thanks to a 129.9 percent increase in purchases. Canada, South Korea, Taiwan, the European Union, Guatemala and Vietnam rounded out the top 10 markets in MY 2023/2024.



Sales Numbers At Southeast Asia Agricultural Cooperators Conference Announced

Sales numbers from the Southeast Asia U.S. Agricultural Cooperators Conference have been announced, with nearly three million metric tons of U.S. agricultural goods sold at the event.

Sales numbers have been released from the 20th Southeast Asia (SEA) U.S. Agricultural Cooperators Conference (ACC), recently held in Ho Chi Minh City, Vietnam by the U.S. Grains Council (USGC), U.S. Soybean Export Council (USSEC) and U.S. Wheat Associates. Survey results showed nearly 3 million metric tons (MT) (118 million bushels) of U.S. agricultural products, including more than one metric ton (40 million bushels) of coarse grains and corn co-products, were negotiated during the conference.

“Every major market player is here. Working with our fellow cooperators, USSEC and U.S. Wheat Associates, has made this event the premier, can’t miss trade event in SEA,” said Caleb Wurth, USGC regional director for Southeast Asia and Oceania (SEA&O).

Nearly 500 participants from more than 20 countries gathered at ACC to discuss the future of global agriculture. The conference regularly draws participants from other regions, including end users from South and North Asia.

Aside from the business-to-business opportunities, ACC featured presentations from expert speakers on a wide variety of topics affecting agricultural production and trade, with innovation in grain shipping and logistics emerging as the main talking points during the conference.

With global trade corridors facing increasing pressure—from bottlenecks in the Panama Canal to geopolitical tensions—the event highlighted the need for more efficient transportation routes for U.S. agricultural exports. Speakers noted that the Pacific Northwest has emerged as a cost-effective route for U.S. grain and soybean exports, providing a competitive advantage over other global suppliers.

“With increased pressures from competing origins, this conference is critical to display the value of partnering with the U.S. agricultural industry,” said Jolene Reissen, president of the Iowa Corn Growers Association, a supporter of the SEA ACC. “Providing spaces for U.S. exporters to market our commodities is paramount to value at the farm.”



Speakers Announced for NIAA’s 14th Annual Antibiotics Symposium

The National Institute for Animal Agriculture’s (NIAA) Antibiotics Council co-chairs, Dr. Heather Fowler and Dr. Alexandra Medley have been leading the Symposium planning team in preparing a Symposium program with an extensive list of impressive speakers. NIAA will host the 14th Annual Antibiotics Symposium in Denver, Colorado at the Colorado State University’s SPUR Campus from November 19-21, 2024.

In August, NIAA convened animal agriculture leaders in Atlanta, Georgia to meet with human and animal health experts at the Centers for Disease Control and Prevention (CDC) prior to their antimicrobial resistance discussion with leaders at the 79th UN General Assembly. Through ongoing discussions with public health leaders, animal agriculture leaders identify opportunities to concretely improve One Health outcomes. Additionally, farmers, ranchers, and veterinarians provide context about on-farm and ranch practices regarding the use of antibiotics and antimicrobials.

The Symposium program will continue to lead animal agriculture’s work in a One Health approach to antimicrobial stewardship and combatting antimicrobial resistance (AMR). Animal agriculture will benefit from the expertise and guidance of the following speakers and topics at the 14th Annual Antibiotics Symposium:

Retaining Rural Health Professionals for One Health
Dr. Elizabeth Strand, University of Tennessee – Knoxville

Communication across the value chain
Dr. Ken Opengart, 3 Birds Consulting
Dr. Renata Ivanek, Cornell University
Dr. KatieRose McCullough, The Meat Institute

Surveillance of resistance across the One Health spectrum
Dr. Jay Garland, U.S. Environmental Protection Agency
Keira Stuart, National Veterinary Services Laboratories
Helen Johnston, Colorado Department of Public Health & Environment
Dr. Heather Tate, Food & Drug Administration
Dr. Alan B. Franklin, U.S. Department of Agriculture – APHIS/WS
Dr. Kaitlin Tagg, CDC NARST
Dr. Randy Singer, University of Minnesota
Dan Kullot, Dairy Farmers of America

Barriers to reduction and stewardship (all sectors)
Dr. Paul Plummer, University of Tennessee/NIAMRRE
Dr. Chelsey Shively, U.S. Department of Agriculture – APHIS
Dr. Kartik Cherabuddi, University of Florida

Accessing and Leveraging Dashboards for AMR and AMU
Dr. Amanda Kreuder, Iowa State University
Dr. Casey Cazer, Cornell University
Dr. Armando E. Hoet, The Ohio State University
Matt Sutton-Vermeulen, NASDA [Context Network]
Dr. Kate Huebner, Food & Drug Administration
Dr. Delfy Gochez, World Organization for Animal Health
Claudine Kabera, Food & Drug Administration

Metrics beyond use
Dr. Valerie Morley, Ginkgo Bioworks
Claudine Kabera, Food & Drug Administration
Dr. Chelsey Shively, U.S. Department of Agriculture
Dr. Randy Singer, University of Minnesota
Dr. Kris Johannsen, NIAMRRE

Join NIAA and animal agriculture stakeholders at the 14th Annual Antibiotics Symposium in November. To register and review the agenda, visit www.AnimalAgriculture.org.



PLC Welcomes UNR Study That Busts Common Cattle Myth

The Public Lands Council (PLC) hailed a recent University of Nevada, Reno (UNR) study that shows that the digestive process of cattle renders cheatgrass seeds effectively inert, virtually eliminating any ability for those seeds to germinate into new plants. This study effectively busts the common myth that has incorrectly blamed cattle for spreading invasive cheatgrass plants across western landscapes through grazing.

“As a grazing permittee, I have seen firsthand how the presence of cattle on allotments drastically reduces the amount of cheatgrass and other invasive plants compared to areas without livestock. This study proves that the spread of cheatgrass is not happening through as a byproduct of grazing and should be an incentive for federal agencies to work more with ranchers on range conservation and removing invasive plants like cheatgrass that are known to fuel catastrophic wildfires,” said PLC President and Colorado grazing permittee Tim Canterbury. “It has to happen now. With over 6.1 million acres of land burned nationwide so far this year, it is past time to double down on grazing as the best way to eliminate invasive plants and protect our country’s natural resources from wildfires. Thanks to the Nevada Department of Agriculture and University of Nevada, Reno for completing this comprehensive study and all they do to support the ranching community.”

The results from the UNR study confirm what rangeland managers have seen through careful management of grazed lands: the timing of grazing on federal lands removes cheatgrass density that allows native grasses a chance to establish and grow, improving biodiversity and giving native grasses the space to establish greater dominance.  These environmental outcomes are just some of the voluntary conservation work ranchers undertake to maintain rangeland, but ranchers often face serious regulatory barriers due to gaps in science or social misconceptions.

“This study is a perfect example of commonsense meeting environmental realities: livestock have long been maligned for spreading cheatgrass across the West, despite cheatgrass exploding on rangelands where livestock have been reduced or removed. At the same time, we’ve seen a massive increase in acres affected by catastrophic wildfire, which creates perfect conditions for cheatgrass to take over a landscape,” said PLC Executive Director Kaitlynn Glover. “What we see in the West today is a perfect storm of mismanagement and misinformation, and this study is a huge step in the right direction in applying real solutions to real problems, like late season grazing on cheatgrass stands. If seeds can’t survive the digestion process, cattle are the ideal tool: grazing immediately reduces fine fuel buildup to reduce fire risk, neutralizes seeds to prevent regermination next year, and provides critical organic matter to support native grass stands in the following year. Thank you to the researchers that took the time to conduct this labor-intensive study and prove that grazing is the best conservation practice for our western landscape.”



Organic crop farming faces shrinking profits

Farmers producing organic crops like corn, soybeans, and wheat are facing financial challenges as commodity prices decline, according to a recent study by Argus.

As prices return to pre-pandemic levels, farmers are left struggling to cover their costs, leading to a record low net return of just $42 per acre, despite improved crop yields, according to the Argus report. The outlook for 2025 is similar.

“In the short term, the low ratio has pushed some operations to plant alternative crops in search of decreased costs or improved revenues,” the insight paper read.

The number of organic farms in the U.S. has declined by nearly 5% over the past five years, from 18,166 in 2017 to 17,321 in 2022, according to the latest Census of Agriculture data. If negative returns persist, more farmers may switch to conventional crops.

Furthermore, organic crop prices have dropped. Organic feed-grade corn fell to a record low of $7.78 per bushel, down $2.95 from last year, according to Argus. Organic soybean prices, while still higher than pre-pandemic levels, decreased to a three-year low of $20.07 per bushel.

“Organic farmers have been shifting acres into alfalfa and considering selling into conventional markets to deal with the low premiums,” according to the Argus study.

Argus warned that the outlook for 2024-25 is equally precarious. Based on current trends, organic farmers could face further financial challenges.

“At August price levels, with operating costs and yield holding constant with 2023-24, organic corn would produce a negative return of -$66/acre,” the report noted.

In contrast, sales for organic items have increased. The U.S. organic food market is estimated to be worth $88.04 billion in 2024, and grow to $255.65 billion by 2034



Deere lays off more workers in Iowa, Illinois as farm slump hits sales

Deere & Co. is cutting close to 300 workers at factories in Iowa and Illinois, adding to a string of layoffs as the agricultural equipment giant copes with a slowdown in sales.

In Illinois, the company is laying off 287 employees effective Jan. 3, including 200 workers at its Harvester Works combine factory in East Moline, and 7 workers at its Seeding and Cylinder operations in Moline.

An additional 80 employees at Deere’s Davenport Works facility in Iowa, which makes construction equipment, have also been cut. Deere said the layoffs were due to reduced demand for tractors amid a weakening farm economy and not related to plans to shift some production from the U.S. to Mexico.

Deere has now cut more than 2,000 jobs this year — including salaried positions — as declining grain prices pressure farmer financials and leave them less willing to buy new equipment.

The company’‘s third quarter revenue was down 17% as sales of tractors and other equipment took a nosedive, according to its latest earnings report. In addition to layoffs over the past year, the company has signaled that it plans to move some production from the U.S. to Mexico in a move that’’s sparked broad pushback from politicians including former President Donald Trump.

The Harvester Works factory in East Moline, Illinois, employs 1,880 workers, with the majority working production and maintenance jobs. The company said it has 625 employees at Deere’s Seeding and Cylinder operations in Illinois, while the Davenport factory in Iowa has 1,024 workers.