Wednesday November 20 Ag News

 Governor and Delegates Build Relationships in Czech Republic & German During Trade Mission

Governor Jim Pillen and a delegation of agency, agriculture, manufacturing, military and university representatives completed a trade mission to the Czech Republic and Germany, two countries with which Nebraska boasts significant and positive ties.

Final days in Germany included meetings with Bayer and Evonik, two companies with facilities in Nebraska. The group also took part in a meet-and-greet reception with Albers Beef, which has a reputation for selling high-quality beef from Omaha.   

“They have been buying Nebraska beef for over 20 years and they can’t talk enough about the quality,” said Gov. Pillen. “We’ve had an incredibly high-value trip and we’ve developed relationships with great people which will enable us to do even more business.”

Jim Ramm, a cow-calf producer from Holt County and board member on the Nebraska Beef Council said he was overwhelmed by the reception the group received in Germany and the interest shown in how Nebraska producers raise and care for their animals. Now, he’s looking forward to returning the favor.

“They want to come to America and come to Nebraska and see how we do things. And so, if anybody from Burwell is listening, you’ve got to make room. We’re going to have a whole lot of folks from Germany coming to the rodeo.”

Gov. Pillen, Department of Economic Development (DED) Director K.C. Belitz and Director Sherry Vinton from the Department of Agriculture (NDA) also met with Hendrik Wüst, the Minister President of North Rhine-Westphalia. He oversees a highly populated region in Germany where key sectors include automotive, chemical, energy, nanotech, and healthcare.

Dir. Belitz said he was struck by the commonalities between manufacturers that operate in Nebraska and their parent companies in Germany. A large portion of German manufacturers are still family-owned.

“There are a lot of similarities in how we see the world and how their values match with ours,” said Dir. Belitz. “That’s part of why having German companies in Nebraska is such a good fit.”

“We’re here to learn about German standards and the high quality they have. We’re also showing them the standards that we have in Nebraska and looking forward to working together in partnership so we can continue to produce the highest quality, safest foods that our consumers and consumers around the world demand,” said Dir. Vinton.

The early part of the trade mission to the Czech Republic included a roundtable discussion with the Ministry of Agriculture. There, talks included collaborations to detect and mitigate animal disease and the signing of an agreement for sharing information and best practices on that important issue.

Czechia is a significant producer of cattle, pigs, and milk products. Kris Bousquet, executive director of the Nebraska State Dairy Association (NSDA) said given the importance of dairy in Europe, this trip provided an excellent opportunity for establishing relationships with leadership from Czechia and the European Dairy Association.

“Reflecting on the trade mission, our accomplishments and our understanding of the challenges the European agriculturists face, it makes me grateful to live in Nebraska, because of our state’s unwavering support of agriculture,” said Bousquet.

One of the long-standing relationships Nebraska shares with the Czech Republic is through its military. For more than 30 years, the Nebraska National Guard has partnered with the Czech Armed Forces under the Department of Defense National Guard Bureau State Partnership Program. Through that arrangement, representatives have taken part in mutual military exercises, information and operation sharing and dignitary visits. During the trade mission, Gov. Pillen and members of the Nebraska National Guard met with Minister Jan Lipavský with the Czech Ministry of Foreign Affairs.

“We talked about the evolution of that partnership and where we are heading in the future,” said Colonel John D. Williams, NENG’s Director of Joint Staff. “What we’ve done primarily over the past 30 years is worked to build interoperability and strengthen our ability to resolve conflict in the world. There is really no limit to what we’re able to do to train together and prepare together. The Czech military is easily one of our strongest allies.”  

While in Germany, Gov. Pillen and delegation members took part in EuroTier 2024. Gov. Pillen delivered the keynote at the Cattle & Pig Event, then returned the following day to take part in the exhibitor event, which included a display featuring Nebraska. EuroTier is focused on promoting technical and scientific advances in the food and agricultural industries and attracts thousands of exhibitors from more than 50 countries annually.

“It’s clear that we make the best products, we have the best agriculture, and we have the most innovation and entrepreneurship anywhere in the world,” summarized Gov. Pillen. “And we need to continue building great relationships so that we have access to international markets. Our vision is to do the things necessary for creating more value-added agriculture in Nebraska.”



Farmers and Ranchers Should Note Upcoming Corporate Transparency Act Deadline

Time is running out for thousands of farmers and ranchers 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 new Financial Crimes Enforcement Network (FinCEN) created under the Corporate Transparency Act of 2021.

“The use of Limited Liability Companies (LLCs) and other formal organizational structures serve as important tools for numerous farms and ranches to maintain a distinction between personal and business assets. However, small businesses frequently do not have the personnel necessary to monitor and adhere to evolving rules and regulations. It is evident that a significant number of farm and ranch families are unaware of the recent filing obligations,” said Mark McHargue, Nebraska Farm Bureau president.

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 most farms.

Businesses that fail to file, or do not update records when needed, could face criminal fines of 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.

Nebraska Farm Bureau has developed a comprehensive question-and-answer guide designed to assist farmers and ranchers in understanding the implications of the CTA for their operations. This guide is available online at www.nefb.org.

“It is critical for Nebraska’s farmers and ranchers to be aware of and understand these new requirements is essential for staying compliant. Producers should be reviewing their ownership structure and gathering the necessary information about beneficial owners.” said McHargue.

NEFB is encouraging farmers and ranchers to contact an accountant or attorney if they are unsure whether they are required to file their business’ BOI.



PSC ISSUES 2024-2025 PRO-AG GRANT APPLICATION AND PROGRAM SCHEDULE

The Nebraska Public Service Commission (PSC) has approved an Order (C-5600) issuing the 2024-2025 Precision Agriculture Infrastructure Grant (PRO-AG) program schedule and application materials.

Created through the Precision Agriculture Infrastructure Grant Act, the PRO-AG program paves the way for awarding grants annually to accelerate rural economic development by helping to provide connectivity and supporting technology to farm sites in rural areas of Nebraska.

“We think there’s immense potential for innovative precision agriculture projects that could benefit from this funding opportunity,” said PSC Chair Dan Watermeier. “With over a million dollars available for the upcoming year, we encourage all eligible and interested parties to participate in the application process.”

The PRO-AG program is divided into two distinct subprograms: Connectivity, and Devices and Technology. Each subprogram is designed to fulfill a specific purpose. Applicants can submit multiple project proposals but must apply separately for each subprogram. Applications will be assessed individually. Each application will be considered on its own merits within the subprogram in which it is filed.

The available funding for the 2024-2025 fiscal year is $1,129,077.71. The amount will be divided equally among the two subprograms with $564,538.85 in grant funding available for each. To date, the Commission has awarded over $678,000 in funding through the PRO-AG grant program.

Commissioner Watermeier said, “The Precision Agriculture Grant Act allows for a broad range of eligible uses. We encourage prospective applicants to explore new ways that precision agriculture can be used to promote ag productivity in Nebraska.”

Application materials and a detailed program guide can be found on the Precision Agriculture Infrastructure Grant Program (PRO-AG) page of the PSC website. Applications for the 2024-2025 program year open on December 13 and are due on or before January 17, 2025, at 5:00 p.m., (CT). Applications should be emailed to < psc.broadband@nebraska.gov >. Grants will be awarded by the end of April.



ISU Extension Dairy Webinar: “What Does This Season’s Corn Silage Look Like?” Dec. 3

The Iowa State University Extension and Outreach Dairy Team monthly webinar series continues Tuesday, Dec. 3 from 12 noon to 1 p.m.

The program “What does this season’s corn silage look like?” features a presentation by Neal Wininger, Feed and Forage Consultant with Dairyland Labs, Arcadia, Wisc.

Wininger will discuss what the lab analysis from this year's corn silage samples are telling him about the quality of the crop and what producers can anticipate about how it will convert into milk in the tank.

Producers, dairy consultants, and industry representatives can attend the webinar by registering at https://go.iastate.edu/CORNSILAGE24. There is no registration fee; however, registration must be done at least one hour prior to the program to receive the URL.

For more information, contact the ISU Extension and Outreach Dairy Field Specialist in your area: in Northwest Iowa, Fred M. Hall, 712-737-4230 or fredhall@iastate.edu; in Northeast Iowa, Jennifer Bentley, 563-382-2949 or jbentley@iastate.edu; in East Central Iowa, Larry Tranel, 563-583-6496 or tranel@iastate.edu; in Ames, Dr. Gail Carpenter, 515-294-9085 or ajcarpen@iastate.edu.



Feedlot Forum 2025 features “Cattle Feeding in a Changing Environment”

High-priced feeder cattle, inflation, volatile markets, and weather have pressured the bottom line for cattle feeders. Beth Doran, beef specialist for Iowa State University Extension and Outreach, said these pressures and methods of coping are the focus of this year’s Feedlot Forum 2025.

"Feedlot producers agree that profitability has become harder to come by," she said. “The return from finishing a 1500-pound yearling steer the past 11 months has averaged $28 per head."

The popular forum is scheduled for Jan. 14 from 9 a.m. to 3 p.m. at the Terrace View Event Center on the south side of Sioux Center. It includes the following topics and speakers.
    Beef-on-Dairy Health and Carcass Quality – Garland Dahlke, Iowa Beef Center
    Economics of Extending the Days on Feed – Grant Crawford, Merck Animal Health
    Genetic Merit Pricing Task Force – Dustin Puhrmann, ICA Feedlot Council
    Usability and Basics of Livestock Risk Protection and Livestock Gross Margin –  Zach Tindall, Producers Livestock
    Ag Market Outlook for 2025 and Beyond – Chad Hart, Iowa State University      

An outstanding trade show will highlight 20-plus industry-leading businesses providing the latest technology in cattle nutrition, animal health, food safety, feedstuff harvest, housing, manure management, marketing, and cattle management.

Registration (which includes lunch) is $25 per adult or $10 per student and is due Jan. 6 to ISU Extension and Outreach Sioux County.  For more information or to register, visit the conference website https://www.extension.iastate.edu/sioux/feedlot-forum or call Sioux County Extension at 712-737-4230.



IDALS announces the Closing of Iowa’s Last Remaining Ag Drainage Wells

Iowa Secretary of Agriculture Mike Naig today celebrated the closing of the state’s last remaining Agricultural Drainage Wells (ADWs), concluding a more than quarter-century of sustained effort to close 195 of these drainage structures.

ADWs were drilled into fractured limestone and connected to farm field drainage tiles. They were constructed by private landowners and farmers in the early to mid-1900s to discharge tile drainage into underground aquifers. This produced a direct conduit for stormwater to enter groundwater while the landowner or neighbors also used the same aquifers for their well drinking water.

Secretary Naig visited the final Humboldt County project today near Gilmore City, which involved 8 different properties with 13 different landowners that all had to agree for this project to move forward. The innovative project, which has been in the planning or construction phase for six years, resulted in the closing of seven ADWs with the drainage re-directed into a water quality wetland spanning 137 acres.

“The closure of Iowa’s Ag Drainage Wells represents a significant milestone in our efforts to improve Iowa’s water quality. Improving water quality takes time, commitment, and dedicated funding, but this demonstrates that when there is a strategy and funding in place, this impactful work can get done successfully,” said Secretary Naig. “I want to thank everyone who has played a role throughout this ongoing effort – farmers, landowners, engineers, conservation professionals, legislators and many other engaged public and private partners, including the Soil and Water Conservation Districts and County Boards of Supervisors. I’m pleased that we can now close this chapter even as we continue to push forward with our many other water quality and conservation initiatives across the state.”

The Iowa Legislature enacted the Iowa Groundwater Protection Act in 1987, which required that ADWs be studied. The Department developed an inventory, and it was determined that the state had approximately 300 ADWs. Approximately one-third of the wells were closed either by landowners or with funding from the Watershed Improvement Review Board or were determined to be non-functioning. This left 195 ADWs to be closed, with 178 of them located in Humboldt, Pocahontas or Wright Counties. The Iowa Department of Natural Resources began monitoring and permitting the remaining ADWs until they could be closed.

The Iowa Department of Agriculture and Land Stewardship received its first appropriation directed toward closing ADWs in 1997. This was used to close 37 ADWs in Pocahontas County. As funding became available over the years, the Department continually worked to close as many as possible per year. In total, the Department has received approximately $25 million in state appropriations from the Iowa Legislature, with the last appropriation in Fiscal Year 2021. These public funds have been paired with nearly $12 million in landowner and partner contributions.



Agricultural credit conditions in the Tenth District continued to deteriorate at a gradual pace in the third quarter
Francisco Scott and Ty Kreitman, Kansas City Federal Reserve

Agricultural credit conditions in the Tenth District continued to deteriorate at a gradual pace in the third quarter. According to responses from the Survey of Agricultural Credit Conditions, farm income in the region was sharply lower, loan repayment was slightly slower and problem loan rates grew slightly. Loan demand increased as working capital declined and lenders reported an increase in asset liquidation. Despite the moderation in credit conditions and interest rates remaining at multi-decade highs, farm real estate values remained firm.

The outlook for the farm sector nearing the end of 2024 remained subdued alongside weak crop prices. Farm income and credit conditions continued to weaken more in areas most concentrated in crop production while the strength of cattle prices provided some support to other portions of the region. The considerable reduction in profits for crop producers has weakened farm balance sheets, increased demand for financing and could put further pressure on agricultural credit conditions in the months ahead.

Section 1: Farm Finances and Credit Conditions
The pace of decline in farm income intensified as crop prices remained weak. About 60% of respondents reported that farm income was lower than a year ago and only 10% reported an increase, which was the lowest share since 2020. Despite strong cattle prices, incomes in the region have contracted alongside sharply lower crop prices.

Farm incomes were comparably weaker in areas more concentrated in crop production. According to respondents, incomes weakened the most in Kansas, Missouri and Nebraska. In Oklahoma, conditions were largely stable, with 30% of lenders reporting incomes that were lower than a year ago and another 30% reporting that incomes were higher.

As farm finances softened further, the pace of decline in loan repayment rates picked up gradually. About 25% of respondents reported that farm loan repayment rates were lower than a year ago and less than 5% reported an increase. Looking ahead to the next three months, nearly 40% expected rates of repayment to decline.

Deterioration in repayment was expected to be particularly notable for crop operations in the coming months. Respondents anticipated a considerable deterioration in repayment rates for corn, soybean and wheat producers but expected conditions for ranchers and feedlots to improve. For lenders with hog and dairy customers, loan repayment was expected to decline slightly in the coming months.

Alongside tighter repayment capacity, loan quality weakened slightly across the region. On average, about 6% and 3% of responding banks’ loan portfolios were on the watch and classified lists, respectively. Lenders in nearly all states reported a slight increase in problem loan rates following historically strong loan quality in recent years.

Asset liquidation also increased notably from recent years. About 60% of responding banks reported that at least a fraction of farm borrowers planned to sell assets in the coming months to improve working capital or make loan payments. About a fifth of respondents reported that more than 10% of borrowers had liquidation plans.

Section 2: Interest Rates, Lending Activity and Farmland Values
Interest rates on farm loans inched lower alongside recent cuts in benchmark interest rates. Lenders reported a modest 15 basis point decrease in average interest rates for ag loans, following two quarters of virtually no change. The spread between rates on operating loans and farm real estate reached 81 basis point, about twice as high as the average observed after 2010.

Despite fewer opportunities for profits in the crop sector, agricultural real estate values held firm. The value of nonirrigated cropland was 5% higher than one year ago in the third quarter. Irrigated cropland and ranchland values also increased from a year ago but at a more modest pace of 0.3% and 1.6%, respectively. Cash rents on irrigated and nonirrigated cropland were nearly unchanged from a year ago, while rents on ranchland increased about 4% and have been more volatile in recent periods.

Farm loan demand remained high, while fund availability continued to moderate. A higher share of lenders reported an increase in demand for non-real estate ag loans from a year ago, and an even higher share expected growth in demand for loans in the coming months. While more respondents reported a decline than an increase in fund availability, expectations for the coming months were more balanced.

Competition for deposits also remained high but less fierce than a year ago. More than 60% of respondents reported higher competition for deposits this year, down from the more than 80% in 2023. Almost 75% of banks in Western Missouri indicated stronger competition for deposits, the highest among the states in the region, while a little more than half of contacts in the Mountain States and Oklahoma indicated more competition for deposits.

A total of 135 banks responded to the Third Quarter Survey of Agricultural Credit Conditions in the Tenth Federal Reserve District—an area that includes Colorado, Kansas, Nebraska, Oklahoma, Wyoming, the northern half of New Mexico and the western third of Missouri.



New program will reward Scoular soybean producers for sustainable farming practices

Scoular soybean producers will benefit from a new program offering financial incentives for following sustainable farming practices.

The per-acre incentives are offered through a national “Climate-Smart” program funded by the U.S. Department of Agriculture. Scoular’s participation reflects the strides the company is making in sustainability, ranging from trialing emissions-reduction technology to launching a regenerative agriculture pilot program.

The Climate-Smart program rewards producers in certain regions for implementing practices that reduce greenhouse gas emissions, promote carbon sequestration, and improve soil health. The soybeans Scoular will source through the program will be marketed to brands and retailers, allowing the sustainability benefits to be passed through the supply chain.

“Sustainability is important for our company and is crucial for the agriculture industry,” said Eric Kresin, a General Manager in Scoular’s Grain Division. “We are excited we can support producers in their sustainability efforts. This program highlights our commitment to building a more sustainable and resilient agricultural system for generations to come.”

Producers in the new program must use one of the following practices to be eligible for incentives: conservation crop rotation; no-till; cover crop; nutrient management; and reduced till.

Scoular recently processed its first Climate-Smart soybeans at the company’s state-of the-art grain- cleaning facility in Andres, Illinois.  

Jake Willrett, a sixth-generation family farmer in Malta, Illinois, who works with Scoular, grows soybeans that have qualified for the Climate-Smart program and says his family has used sustainable farming practices for decades. The program’s financial incentives are helpful, he said, but what is most important to him is that it promotes sustainability.

“I’m a steward of the land,” he said. “It’s my job to take care of it.”

The Climate-Smart effort is known officially as the Transforming the Farmer to Consumer Supply Chain project.  The USDA funding is through Partnerships for Climate-Smart Commodities and represents a pioneering collaboration between industry partners led by Carbon A List.