Monday October 28 Ag News

 Nebraska farm income projected to decline in 2024

Nebraska net farm income is projected to decline in 2024, according to a new report from the Rural and Farm Finance Policy Analysis Center.

The center, working with agricultural economists from the Center for Agricultural Profitability at the University of Nebraska-Lincoln, said in its “Fall 2024 Nebraska Farm Income Outlook” that Nebraska’s 2024 net farm income is estimated at $7.69 billion. 

After record-setting farm income levels in 2023, Nebraska farm income declines in 2024. “In 2024, total farm receipts are projected to decline by $1.40 billion (-4%), as the $1.16 billion (6%) increase in livestock receipts would only partially offset the $1.64 billion (-12%) fall in crop receipts and the $0.90 billion (-52%) reduction in crop insurance indemnities,” said the report.

Despite declining 17% in 2024, Nebraska net farm income is still expected to become the third highest on record, following 2023 and 2021. The report also compares the projected 17% reduction in state net farm income to the projected 6.2% decline in the U.S. net farm income projected by Mizzou’s Food and Agricultural Policy Research Institute (FAPRI-MU).

Other key findings from the report include:
    Despite an increase in production levels for field crops, lower prices reduce crop receipts by 12% in 2024. Lower corn and soybean receipts account for a majority of the decline in receipts.
    Nebraska’s cattle inventory is projected to grow slightly in 2024, increasing by 164,000 head, as forage conditions improve across the state. Livestock receipts are projected to increase by $1.2 billion in 2024.
    Production expenses are set to increase in 2024, as rising purchased livestock, and rent expenses offset reductions in feed, fertilizer, and fuel expenses.

“As producers are adapting to current market realities of falling commodity prices and rising production expenses, but the coming year presents challenges but also opportunities for long-term profitability,” said Brad Lubben, an agricultural policy specialist with Nebraska Extension and a co-author of the report. "While Nebraska farm income is expected to decline further in 2025, the state's diversified agricultural base, notably continued strength in its livestock sector, will continue to play a crucial role in mitigating the impacts of lower crop prices and production challenges."

The Fall 2024 Farm Income Outlook is co-published by the Center for Agricultural Profitability at the University of Nebraska-Lincoln and RaFF at the University of Missouri, which provides objective policy analysis and informs decision makers on issues affecting farm and rural finances. The center collaborates with a number of states to develop farm income projections with local expertise.

“RaFF’s Farm Income Outlook for calendar years 2024 and 2025 is intended to inform policymakers, industry analysts, and agricultural practitioners about the expected profitability of the local agricultural sector and its main drivers. RaFF’s state-level projections complement and add granularity to national projections by the USDA and FAPRI-MU, providing valuable insights on local agricultural trends” said RaFF Director Alejandro Plastina.  

The full report and data tables can be found at https://cap.unl.edu/farm-income.

Farm Income Webinar
Lubben and Plastina will present a webinar covering 2024 Nebraska and U.S. farm income and outlook at noon Central time on Oct. 31. Registration is free at https://cap.unl.edu/farm-income.



NDA honors 2024 Governor's Excellence in Leadership Award winners

At the Nebraska Department of Agriculture (NDA) we have amazing people who are dedicated and determined to keep our agriculture industry strong and to help Nebraskans live better lives. October is Nebraska Public Servants Recognition Month. Two NDA employees were honored recently for receiving Governor’s Excellence in Leadership awards.  Congratulations to Dr. Kaylie Fritts, DVM and Becky Rezac who both work in NDA’s Animal and Plant Health Protection focus area.

In her two years with NDA, as Deputy State Veterinarian, Dr. Kaylie Fritts has become a crucial and central member of the Animal Health team. She excels at developing relationships with the Animal Health team, the field staff she supervises, local veterinarians, Nebraska producers, and state and federal agency officials. Dr. Fritts has played a vital role in strengthening NDA's Animal Health Emergency Management Program which helps Nebraska better prepare to handle animal diseases, maintain the health of Nebraska’s livestock industry, and keep the state’s economy strong.  

Becky Rezac currently serves as the Administrative Programs Officer for NDA’s Animal and Plant Health Protection. During her time with NDA, Becky has proven to be an invaluable member of the team. She consistently demonstrates exceptional leadership skills, particularly in her role as a mentor and guide to NDA’s office support staff. From sharing information about office applications and procedures, to directing calls, Becky is always willing to lend a hand. Her willingness to learn and her strong work ethic continue to make a lasting impact on NDA and the Nebraskans we serve.



Nebraska Sheep & Goat Producers Association Annual Meeting and Education Program 11/9/24

The Nebraska Sheep and Goat Producers Association Annual Meeting and Education Program will be held at the Meat Animal Research Center, located at 120 West Fairfield St., Clay Center Nebraska.

The program will start with a tour of the facilities at 9:00 am followed by the following seminars and speakers:
    Improving Out of Season Lambing by Tom Murphy, USDA ARS Meat Animal Research Center, Research Geneticist
    Improving Performance in Pasture Lambing by Brad Freking, USDA ARS Meat Animal Research Center, Research Geneticist
    Economic Impacts of Mastitis and ways to reduce its occurrence by Tom Murphy
    Goat Production and Management in Nebraska, John Wallace, Olive Branch Goats Palmyra Nebraska
    Balancing Data and Phenotype during Ram Selection by Issac Brunkow, Shepherd USMARC

To register go to https://nebraskasheepandgoat.org/education/  or call Melissa Nicholson at or by phone 308-386-8378.  



Free Farm and Ag Law Clinics Set for October, November

Free legal and financial clinics are being offered for farmers and ranchers across the state in October and November. The clinics are one-on-one in-person meetings with an agricultural law attorney and an agricultural financial counselor. These are not group sessions, and they are confidential.

The attorney and financial advisor specialize in legal and financial issues related to farming and ranching, including financial and business planning, transition planning, farm loan programs, debtor/creditor law, debt structure and cash flow, agricultural disaster programs, and other relevant matters. Here is an opportunity to obtain an independent, outside perspective on issues that may be affecting your farm or ranch.

Clinic Dates
    Tuesday, Oct. 29 — Fairbury
    Thursday, Oct. 31 — Norfolk

    Friday, Nov. 8 — Fairbury
    Wednesday, Nov. 13 — Norfolk

To sign up for a free clinic or to get more information, call the Nebraska Farm Hotline at 1-800-464-0258.  Funding for this work is provided by the Nebraska Department of Agriculture and Legal Aid of Nebraska.



Congressman Flood: Federal Agencies Should Reject Anti-Meat Diet Recommendations

Friday, U.S. Congressman Mike Flood issued a statement following the announcement of new recommendations from the 2025 Dietary Guidelines Advisory Committee.

“The far left’s war on your grocery list is expanding. In this latest volley, the 2025 Dietary Guidelines Advisory Committee has taken aim not only at meat, but also at potatoes and other foods that are staples of a healthy diet. Meat is the most efficient way to deliver protein, and potatoes contain basic nutrients like potassium and Vitamin C. Meat and potatoes underpin our country’s food security. I urge both the U.S. Department of Agriculture and U.S. Department of Health and Human Services to reject these ill-informed recommendations and the activist thinking which is trying to reshape our diets and the way of life for the farm families who grow our food.”



USDA Rural Development Invites Nebraska to Apply for Funding for Clean Energy Generation

U.S. Department of Agriculture (USDA) Rural Development Acting State Director Nebraska Joan Scheel Friday announced that USDA is inviting Nebraska to apply for funding for its BioEconomy initiative proposal. The funding opportunity will come from USDA’s Empowering Rural America (New ERA) program, which helps rural Americans transition to clean, affordable, and reliable energy. New ERA program funding allows select public utilities and member-owned rural electric cooperatives to apply for up $200 million.

“Farmers, rural business owners and electric providers are the backbone of our economy,” USDA Secretary of Agriculture Tom Vilsack said. “The investment opportunity the Biden-Harris Administration is announcing today will support rural communities as they transition to clean energy and drive economic prosperity in Nebraska and across this nation.”

“Nebraska is leading the way in bioeconomy initiatives that will revitalize our rural communities while working to decarbonizing the planet,” said Governor Jim Pillen.

The proposed program funding would be used by Nebraska Electric Generation and Transmission Cooperative, Inc. (NEGT) to procure 725 megawatts of wind and solar energy in Butler, Burt, and Custer Counties, and would supply electricity to nearly 170,000 homes.   

“NEGT is grateful for the invitation and eagerly looks forward to collaborating with the Rural Utilities Service staff,” said General Manager Darin Bloomquist. “Our goal is to provide, low-cost, clean, renewable energy to the wonderful state of Nebraska for many years to come.” 



Iowa Department of Agriculture and Land Stewardship Provides Update on the Circumstances Involving Pure Prairie Poultry, Inc.

On September 30, Pure Prairie Poultry, Inc. notified the Iowa Department of Agriculture and Land Stewardship that, due to their financial position, they were unable to purchase feed for approximately 1.3 million broiler chickens located at 13 Iowa farms.

Upon notification, the Department coordinated with state and federal agencies, as well as industry partners, to seek a possible solution. With no immediately available solution and citing significant potential animal welfare concerns, the Department, under its authority in Iowa Code Chapter 717, sought an emergency court order to take over the care, custody and control of the birds located within Iowa.

On October 2, the Department’s emergency petition was granted, which authorized the Department to immediately provide for the feed and care of the birds. Pursuant to Iowa Code, a hearing was then scheduled for October 8 in order for the Court to approve a plan for the final disposition of the birds.

On that same day, October 2, Pure Prairie Poultry, Inc. also ceased operations at its Charles City processing plant and laid off its workers. With no processor readily available for the birds, the Department actively pursued numerous other processors and markets, and solicited offers for the purchase of the birds. Due to the structure of the broiler industry, large-scale processors have limited ability to increase their processing capacity utilizing the open market.

The Department was able to secure an initial offer to purchase all 1.3 million birds and had a tentative agreement in place for all birds to be processed as they reached market weight, pending court approval. The Department provided notice to the interested parties of the potential agreement. On October 7, the day before the scheduled hearing, attorneys for some of the other interested parties notified the Department that they would assert their lien rights and security interests in the chickens, including against the buyer’s proceeds from the sale of the post-processed meat. Citing costs surrounding potential litigation due to the lien claims, the buyer backed away from their offer.

During the hearing on October 8, the parties agreed to allow additional time to find a resolution for the birds, with the Court continuing the hearing to October 11.

In the interim, the Department pursued other potential buyers and processors, and even explored whether the broilers could be processed and donated to help Iowans facing food insecurity. However, because of the continuing lien and claim risks combined with the timeliness, logistics and scale required, the Department was unable to find a processor available. After exhaustive efforts, no credible offers or proposals materialized.

The Court reconvened the hearing on October 11 and the Department detailed all the efforts made to secure an offer for the birds. The other parties to the matter were also unable to provide the Court with any offers for the birds. Given the unavailability of buyers and lack of processing capacity combined with the ever-increasing feed and yardage costs, as well as the taxing of Department staff resources managing broilers with no end-market, the Court granted the Department authorization to begin depopulation. The court required the Department to begin the depopulation process with the largest and least marketable birds in the unlikely event that a credible last-minute market solution could be found for some of the younger broilers. Though the Department believes depopulation should always be a last resort, it provides finality to this unfortunate circumstance, limits the ever-increasing costs to the taxpayers of Iowa and prevents any potential animal welfare issues.

In accordance with the court order, depopulation commenced on Thursday, October 17, utilizing humane methods and guidelines approved by the American Veterinary Medical Association (AVMA). The depopulation was overseen by licensed veterinarians employed by the Department. Depopulation of all Pure Prairie Poultry, Inc. birds located at Iowa farms concluded on Friday, October 25. Each farm is now utilizing composting as the means to dispose of the birds.

The Department will pursue all available avenues to recoup taxpayer costs from responsible parties, including through possible future legal remedies.



Secretary Naig Issues Statement on the Pure Prairie Poultry Situation

Iowa Secretary of Agriculture Mike Naig provided the following statement today regarding the situation involving Pure Prairie Poultry, Inc.:

"This is an incredibly unfortunate situation and raises serious questions about USDA's oversight of taxpayer dollars. Congress should exercise its oversight authority to ensure that something like this does not happen again and that those responsible are held accountable."



Nationally Regarded Presenters Available For Interviews At Siouxland Al Lenders Seminar

Agricultural lenders, consultants and farm financial advisors will receive current useful, research-based information during the Siouxland Agricultural Lender’s Seminar on Wednesday, October 30 with registration at 8:30 a.m. and programing from 9 a.m. to 3:30 p.m. at Dordt Ag Stewardship Center located at 3648 US HWY 75, Sioux Center.

The list of nationally recognized presenters for the seminar includes:
    “Right to Repair Legislation” – Jennifer Harrington, Staff Attorney at the Center for Agricultural Law and Taxation, Iowa State University
    “The Ever-Changing Game of the Used Machinery Market: What Goes Up Must Come Down” – Joe Everitt, Owner of Joel’s Tractors and Auction LLC
    “Milk Market Update” – Dr. Leonard Polzin, Dairy Markets and Policy Outreach Specialist with UW-Madison
    “Family Farm Transitioning and Succession Planning” – Joy Kirkpatrick, Farm Succession Specialist, Center for Dairy Profitability, UW-Madison, Wisconsin
    “Through Another Lens: Women in Ag Lending” –Val Weis, Commercial Lending Officer, Farm Credit Services of America.
    “Commodity Market Outlook” – Joseph Lensing, Farm Management Specialist, Iowa State University Extension and Outreach

The presenters will be available for interviews over the noon hour or after their presentations. A separate area will be available.

If you have questions, please call me prior to the event at 641.257.9508. This will be your only opportunity to enjoy a one-on-one live interview with these leaders in agriculture.



IRFA Applauds Gov. Newsom for Directing CARB to Accelerate E15 Approval Process in California

Friday, California Governor Gavin Newsom directed the California Air Resources Board (CARB) to accelerate the E15 approval process in the state. California is the only state yet to approve the sale of E15 (15% ethanol blends). Iowa Renewable Fuels Association (IRFA) Executive Director Monte Shaw made the following statement:

“E15 will reduce California fuel prices by 20 cents a gallon. It will reduce carbon emissions. It will reduce smog-forming emissions. And approving E15 will create new demand for up to 500 million gallons of ethanol. Heck, approving E15 in California is better than a grand slam for the Dodgers in the World Series. IRFA members applaud Governor Newsom for stepping up to the plate and telling the bureaucrats to get the E15 approval process moving.”



Growth Energy Statement on California Governor Newsom's Directive on E15

Growth Energy, the nation’s largest biofuel trade association, issued the following statement Friday after California Governor Gavin Newsom issued a directive to the California Air Resources Board (CARB) to expedite measures that could lead to lower gas prices without compromising environmental protections. This includes studying "how California could increase ethanol blending in gasoline (E15), which studies have shown could reduce prices while maintaining environmental protections."

“We thank Gov. Newsom for voicing his support to approve E15, which can lower fuel costs for California families while helping to decarbonize the state’s light-duty vehicles," said Growth Energy CEO Emily Skor. "We stand ready to assist the governor’s office and state to complete the approval process and permit the sale of this more affordable and environmentally-beneficial fuel option, which Americans have already relied on to travel 120 billion miles.”  



RFA Thanks Gov. Newsom for Directing Expedited Approval of E15 in California

The Renewable Fuels Association Friday applauded California Gov. Gavin Newsom for directing the state’s Air Resources Board (CARB) to expedite the approval of E15, gasoline containing 15 percent ethanol. California is the only state in the country that doesn’t currently allow the sale of lower-cost, lower-carbon E15.

In a letter to CARB Chair Liane Randolph today, Gov. Newsom wrote, “Given the potential for allowing E15 gasoline to increase fuel supply and reduce gasoline prices, with little to no environmental harm, it is prudent for CARB to prioritize resources that would allow for the expeditious completion of this process. Therefore, I am directing CARB to accelerate its action on this critical issue.”

In a related news release, Newsom stated, “There’s massive potential for this to be a win-win for Californians: lowering gas prices by up to twenty cents per gallon while keeping our air clean. It builds on our efforts to keep gas prices low by holding Big Oil accountable and helping prevent price spikes at the pump.”

Gov. Newsom’s letter cited a recent study by economists at the University of California, Berkeley and United States Naval Academy that showed E15 could result in a $0.20 per gallon price decrease for the state’s drivers, saving California families up to $2.7 billion per year.

“We sincerely appreciate Gov. Newsom’s efforts to accelerate the approval of the cleaner, greener E15 fuel blend in California,” said RFA President and CEO Geoff Cooper. “Not only does E15 reduce greenhouse gas emissions and harmful tailpipe pollution, but it also delivers significant savings at the pump. Allowing the sale of E15 would provide economic relief to California families, while at the same time providing important environmental benefits.”

Newsom’s news release also highlights recent vehicle testing from the University of California, Riverside showing that “blending in gasoline would not affect NOx emissions and would reduce particulate emissions.”



2024-25 National FFA Officer Team Elected During 97th National FFA Convention & Expo

The 2024-25 National FFA Officer Team was elected Saturday during the final session of the 97th National FFA Convention & Expo in Indianapolis.

Students from Illinois, Ohio, Kentucky, California, Georgia and Wisconsin were elected by National FFA Delegates to serve as 2024-25 National FFA Officers. They will lead the organization for the next year.

These members were selected from 37 candidates vying for the honor. Candidates participated in an extensive interview process with the National FFA Officer Nominating Committee before the selection.
    Thaddeus Bergschneider of Illinois was elected national president. He is a former member of the Franklin FFA Chapter.
    Luke Jennings of Ohio was elected national secretary. He is a former member of the Felicity-Franklin FFA Chapter.
    Caroline Groth of Kentucky was elected eastern region vice president. She is a former member of the Locust Trace FFA Chapter.
    Abigale Jacobsen of California was elected western region vice president. She is a former member of the Elk Grove FFA Chapter.
    Jack Lingenfelter of Georgia was elected southern region vice president. He is a former member of the Coffee High FFA Chapter.
    Mary Schrieber of Wisconsin was elected central region vice president. She is a former member of the East Troy FFA Chapter.

Each year, during the National FFA Convention & Expo, six student members are elected by delegates to represent the organization as national officers. Delegates elect a president, secretary and vice presidents representing the country's central, southern, eastern and western regions.

Throughout their year of service to the National FFA Organization, the officers will interact with business and industry leaders; thousands of FFA members and teachers; corporate partners; government and education officials; state FFA leaders; the general public; and more. The team will lead personal growth and leadership training conferences for FFA members throughout the country and help set policies to guide the future of FFA and the next generation of leaders.
The National FFA Organization is a school-based national youth leadership development organization of more than 945,000 student members as part of 9,163 local FFA chapters in all 50 states, Puerto Rico and the U.S. Virgin Islands.



USDA Makes Acreage Reporting Improvements to Allow Flexibility for Urban and Innovative Producers  
Urban and innovative agriculture producers will be able to more easily participate in U.S. Department of Agriculture (USDA) programs as a result of acreage reporting improvements. These improvements, implemented by USDA’s Farm Service Agency, provide more flexibility for reporting acreage on a smaller scale and identifying innovative planting practices like multi-level planting or vertical farming practices.  

An acreage report documents crops and where they are grown on a farm or ranch along with the intended use of the crop. Filing an accurate and timely acreage report for all crops and land uses, including failed acreage and prevented planted acreage, can prevent the loss of program benefits.  

“Through USDA’s urban agriculture initiative and the opening of USDA offices within urban settings, our Farm Service Agency offices are more frequently engaging with urban and innovative producers,” said Zach Ducheneaux, FSA Administrator. “Filing an acreage report is an important requirement to receive many USDA program benefits, and our small-scale agricultural producers, including urban and innovative producers, will notice a simpler acreage reporting process that better reflects the scope of their unique operations.”

Acreage Reporting Improvements
FSA’s acreage reporting software previously allowed acreage to be reported down to .0001 acres, approximately a four-square foot area. Producers will now be able to report acreage-based crops at a minimum size of .000001 acre, approximately a 2.5-inch by 2.5-inch area.    

Additional improvements will distinguish alternate growing methods such as crops grown within multiple levels of a building, or crops grown using multi-level or multi-layer growing structures such as panels or towers within a container system. This change allows the distinction of vertical farming practices. Urban and innovative producers will also have the option to report plant inventory along with their acreage-based report, allowing producers to better report the full scope of their operation.  
 
Producers can contact FSA at their local USDA Service Center for acreage reporting deadlines that are specific to their county.       

USDA Urban Service Centers
USDA is committed to working with farms of all sizes and in all locations, including those in urban areas. USDA works with agricultural producers through a network of more than 2,300 Service Centers nationwide. To better serve urban farmers, USDA is establishing 17 new Urban Service Centers.    

The Urban Service Centers are staffed by FSA and Natural Resources Conservation Service (NRCS) employees and offer farm loan, conservation, disaster assistance and risk management programs.

To find exact locations and contact information for these Urban Service Centers or to learn how to prepare for a USDA Service Center appointment, producers can visit farmers.gov/your-business/urban-growers/urban-service-centers.    

For questions, producers should call their FSA county office. Urban operations that are not located near one of the Urban Service Centers can contact one of the more than 2,300 Service Centers across the country by visiting farmers.gov/service-locator.  



Sustainable Aviation Fuel Could Spark U.S. Agricultural Economy, but Policy Questions, Market Uncertainties Remain

Sustainable aviation fuel could emerge as the next opportunity for substantial growth in U.S. biofuels production with proper market and regulatory incentives. Agricultural feedstocks are poised to play a leading role in the supply chain for domestic SAF production. However, any meaningful growth opportunities will be largely dependent on favorable policies and adequate incentives for farmers and the wider biofuels industry.

According to a new report from CoBank’s Knowledge Exchange, the anticipated guidance for the 45Z tax credit, also known as the Clean Fuel Production Credit, will be a determining factor for the extent of agriculture’s role in SAF production. Authorized in the Inflation Reduction Act, the 45Z tax credit is intended to encourage domestic production of clean transportation fuels. It replaces the 40B tax credit for SAF production and is set to take effect Jan. 1, 2025.

“The 40B tax credit guidance for SAF fell short in effectively incentivizing farmers to adopt the prescribed set of on-farm conservation practices required to be eligible for the credit,” said Jacqui Fatka, farm supply and biofuels economist with CoBank. “Farmers are hoping the new guidance offers more flexibility to employ practices that are applicable to their individual operations. The 40B guidance reflected a one-size-fits-all approach, which is certainly not the case for farms spanning the entire country.”

The advent of low-carbon biofuels ushered in an era of new market opportunities for U.S. farmers, beginning with ethanol in 2005 and continuing more recently with biodiesel and renewable diesel. Increased demand for corn and soybean oil for use in the production of cleaner-burning transportation fuels has supported farm incomes and strengthened rural economies, particularly during periods of low commodity prices. SAF is unlikely to offer a short-term solution for lower commodity prices but does provide longer-term opportunities to revitalize rural America.

Farmers and renewable fuel producers are also hoping for longer-term policies that provide more market certainty. The Inflation Reduction Act only authorized the 45Z tax credit for three years beginning in 2025. “The lack of longer-term incentives, as well as a lack of offtake agreements from the airline sector, will limit adoption and growth in the market,” Fatka added.

Federal and state policy initiatives designed to reduce greenhouse gas emissions and imports of foreign oil have successfully bolstered domestic production of renewable transportation fuels in the past. The Energy Policy Act of 2005 authorizing the Renewable Fuel Standard set the stage for rapid expansion of ethanol production.

The Sustainable Aviation Fuel Grand Challenge, announced by the Biden administration in September 2021, set production goals of 3 billion gallons of SAF by 2030 and 35 billion gallons by 2050 to satisfy 100% of domestic airline fuel demand.

According to the latest government dashboard of SAF projects, between 2.6 billion and 4.9 billion gallons of SAF may be produced annually by 2030, creating a clear pathway to achieve the SAF Grand Challenge near-term goal. However, it will be dependent on policy initiatives and market conditions that give biofuel producers the flexibility to expand production capacity of both renewable diesel and SAF.

While the 45Z tax credit is set to take effect on Jan. 1, 2025, the final guidance has yet to be issued. The government is finalizing an updated Greenhouse gases, Regulated Emissions and Energy Use in Technologies model, which could include improved accounting for climate-smart ag practices. According to Fatka, the delay is causing uncertainty for farmers, biofuel producers and other market participants.

“Biofuel producers are unlikely to move forward on any expansion plans until the new guidance is published,” said Fatka. “And the delay creates more uncertainty for farmers as they make decisions about planting, input purchases and conservation programs for 2025.”