Thursday January 16 Ag News

 Issues to take into consideration by the beef industry in 2025
Alfredo DiCostanzo, Nebraska Beef Systems Extension Educator

Just like that! We are starting the midyear of the third decade of the 21st century. Development and application of emerging technologies is in full swing. Individuals in most countries have access to technology and computer applications available only to a few in previous decades.

What does this mean to those participating in the beef industry? Perhaps at an operation level not much, but responses to influences external and internal to the industry are fast and lead to highly responsive markets, which lead to rapid changes in prices of beef, cattle, feed, and other inputs.

Beef cow inventory and heifer retention. These items have been on our minds for at least two years. We all look with some degree of interest to the next USDA report on cattle inventory later this month. Considering that heifer retention has been light to nonexistent, given feeder prices and drought, the beef cow inventory is expected to be under 28 million cows placing it as the lowest beef cow inventory since 1962.

Carcass weights and beef production. Beef production through the end of November in 2023 and 2024 was nearly identical (24.8 billion pounds). Heifer and steer slaughter counts were also

similar (23.6 million); heifers made up 40% of the harvest both years. Declines in beef (18%) and dairy (12%) cow and bull (7%) slaughter counts were made up by 2% plus heavier steer and heifer carcass weights (i.e., beef of greater quality).

This would mean that, if intentions to retain heifers in 2025 approach one percentage unit, using average slaughter weights and counts from 2024, one would expect to see a deficit of 80 million pounds in 2025 for every percentage unit heifer retention. Fewer cows in inventory from previous years would also represent fewer fed cattle to harvest in 2025.

How big will this decline be? This is a difficult figure to predict.

During herd rebuilding years, approximately 2 million beef cows are harvested yearly. During herd liquidation years, from 3 to 3.5 million cows are harvested yearly. In 2014 (2.4 million) and 2024 (2.7 million), the number of beef cows harvested declined dramatically from the previous liquidation year highs of 3 to 3.5 million. Concurrently, steer and heifer slaughter counts declined from 23.2 to 21.9 million head between 2013 and 2014 but they have not declined between 2023 and 2024. A large decline in steer and heifer slaughter counts is expected.

During the current cycle, between 2022 and 2023, steer and heifer slaughter dropped over 1 million head. During the previous cycle, between 2013 and 2014 and again between 2014 and 2015, steer and heifer slaughter dropped over 1 million head each time. Therefore, it is safe to expect that the industry is due to see a large drop in fed cattle harvest even if intentions to rebuild the herd are not expressed.

I believe it would be safe to project that 1 million fewer head of cattle (steers and heifers) will be harvested in 2025. This figure would include any heifers retained for heifer expansion. Beef and dairy cow slaughter is not expected to exceed 2.5 million. Using average carcass weights for all cattle harvested in 2024 (850 lb), one would expect to see a decline in beef production of 850 million pounds (approximate that figure to 1 billion pounds). Definitive intentions to retain heifers in 2025 will increase this deficit.

Demand and prices. Interestingly, beef production from 2021 to 2024 averaged 25.5 billion pounds. During the last cycle, between 2012 and 2014, beef production averaged 23.2 billion pounds. Therefore, the beef industry proved two things: 1) it can produce more beef with fewer cattle, and 2) the beef produced is of greater value.

With these observations in mind, we can expect the American consumer to continue to purchase beef at increasing prices. However, saying this is expectation is limitless is not wise. On the other hand, other factors external to the price of beef such as fuel, housing or a greater calamity befalling humanity would motivate the American consumer to consider alternatives to consuming beef.

Factors that will slow or stop the cattle price hike. One was already mentioned: economic factors forcing the consumer to look to alternatives to consuming beef.

Within the beef industry, any strategy adopted by packers or resulting from government intervention that facilitates access to lower priced beef imports would have a negative effect on prices (packer purchase of less expensive lean trimmings in 2015 contributed to a rapid decline in fed cattle prices).

Lastly, as is always the case, eventually, heifer retention will lead to greater cattle inventories and supply of cattle and beef. However, ensuring that more heifers survive to weaning and breeding should reduce the need to keep more heifers away from feedlots to build the herd.



NSDA Names 2024 Philip H. Cole Industry Person of the Year
 
The Nebraska State Dairy Association (NSDA) has named Dr. Paul Kononoff, a Professor and Dairy Nutrition Extension Specialist at the University of Nebraska-Lincoln, as the 2024 recipient of the prestigious Philip H. Cole Industry Person of the Year award.
 
This annual award recognizes an individual who has made significant contributions to advancing the Nebraska dairy industry through leadership, innovation, and dedication.
 
Kris Bousquet, Executive Director of the Nebraska State Dairy Association, commended Dr. Kononoff’s achievements, stating: "Dr. Kononoff is respected as one of the brightest minds in dairy cattle  nutrition in the world. His commitment to research, mentorship of countless students, and his unwavering support of Nebraska’s dairy producers have had a profound impact on our industry. There is no one more deserving of this recognition than Paul.”
 
Dr. Kononoff has published over 100 scientific peer review articles and advised 31 graduate students. In recent years, he has spearheaded groundbreaking research, securing a substantial grant for the University of Nebraska-Lincoln to study how genetic and microbial factors can be manipulated to reduce methane production in cattle . His efforts have also focused on chemical characterization of feed, especially those grown in Nebraska, and understanding how they can be used to support the cow's needs for energy and protein during lactation. Kononoff serves as a board member of both the NSDA and the Dairy Council of Nebraska. He is also the Editor-in-Chief of the Journal of Dairy Science and served on the National Academies of Sciences, Engineering, and Medicine committee to outline the nutrient requirements for dairy cattle.
 
Dr. Kononoff’s dedication to the Nebraska dairy industry reflects the spirit of the Philip H. Cole Industry Person of the Year award, which honors those who go above and beyond to support the growth and success of the state’s dairy sector.

The NSDA will formally present the award to Dr. Kononoff at the 2025 Nebraska State Dairy Association Annual Meeting & Tradeshow on February 25th in West Point, Nebraska where dairy producers, industry leaders, and stakeholders will gather to celebrate his achievements. For more information about the Nebraska State Dairy Association Annual Meeting & Tradeshow, visit nebraskamilk.org or call 402.421.4472.



Nebraska Cattlemen Foundation Now Accepting Scholarship Applications for the 2025-2026 Academic Year

The Nebraska Cattlemen Research and Education Foundation (NCF) announced they are now accepting scholarship applications for the 2025-2026 academic year from qualified youth in Nebraska with an interest in the beef industry.

NCF President Loren Berger stated, “The future success of the beef industry relies on students with a passion and desire to grow in knowledge of our way of life. NCF looks forward to providing young people with opportunities to make a lasting impact on beef cattle production.”

The prestigious Nebraska Cattlemen Beef State Scholarship awards a $10,000 scholarship to an outstanding college junior, senior or graduate-level student. Eligible students must be residents of Nebraska and be enrolled in a Nebraska college or university pursuing a beef industry-related degree. The scholarship will be awarded based on student need, Nebraska beef industry involvement including past achievements and future plans, and academics. Completed applications are due by Saturday, March 15, 2025. Incomplete applications and applications received after the due date will be disqualified. Finalists will be invited to a personal interview with the selection committee.

NCF offers numerous other $1,000 minimum scholarships, awarded on the basis of academic achievement, beef industry involvement, and goals/quality of application. Completed applications are due by Saturday, March 15, 2025. Incomplete applications and applications received after the due date will be disqualified. Scholarship recipients must be a high school senior or college student, have a "C" or higher grade point average, and be enrolled or intending to enroll full time in a college or university that offers a bachelor's degree, an approved vocation or trade school, or a state accredited junior college.

Applications are available on the Nebraska Cattlemen website. Questions can be referred to Ashley McClinton at AMcClinton@necattlemen.org or by calling the NCF office at (402) 475-2333.

All scholarship winners will be announced during the Nebraska Cattlemen Annual Midyear Meeting in June 2025.



Nebraska Soybean Board Seeks Soybean Farmers Interested in United Soybean Board Nominations

The Nebraska Soybean Board (NSB) is seeking soybean farmers interested in filling two of Nebraska’s four director positions with the United Soybean Board (USB), for a three-year term.

"Nebraska farmers have always been leaders in shaping the future of the soybean industry, and serving on the United Soybean Board is an incredible opportunity to make an even greater impact," says Andy Chvatal, NSB executive director. "Your insights can help guide investments that drive innovation, open new markets and deliver real results for soybean farmers across the nation."

USB’s 77 volunteer farmer-leaders work on behalf of all U.S. soybean farmers to achieve maximum value for their soy checkoff investments. These volunteers create value by investing in research, education and promotion with the vision to deliver sustainable soy solutions to every life, every day. They focus on three priority areas: infrastructure and connectivity, health and nutrition, and innovation and technology.

To become a Nebraska member of USB, applicants must:
  - Be a soybean producer actively engaged in growing soybeans in Nebraska and own or share the ownership and risk of loss for those soybeans.
  - Be nominated by a Qualified State Soybean Board and submit a completed application.

NSB directors will submit a “first preferred choice nominee” and “second preferred choice alternate” for the open positions to the U.S. Department of Agriculture (USDA) for consideration. The Secretary of Agriculture will make the final appointment. The USDA has a policy that membership on USDA boards and committees is open to all individuals without regard to race, color, national origin, gender, religion, age, disability, political beliefs, sexual orientation and marital or family status. The appointed individual is eligible to serve a total of three consecutive terms.

To be considered for the national leadership position, interested farmers need to submit a USDA Background Information Form before the February 28, 2025, deadline. To obtain this form, contact Andy Chvatal at the Nebraska Soybean Board office at 402-441-3240.

For more information about USB, visit unitedsoybean.org.



CVA Hosts Winter Grain Meetings

You're Invited!

Join the Central Valley Ag Grain Team for a Customer Appreciation Meal and Market Outlook Discussion as we address some key questions for 2025 including:
- What are realistic price possibilities on old crop bushels?
- How can I successfully market grain in low priced environments?
- Key themes to watch in 2025 and 2026

Plus, one registered winner who attends a meeting will be chosen at random and receive a new crop Hedge-to-Arrive with no service fee!

Meeting Dates
January 21st | 10:30 am | Oakland, NE
January 21st | 5:00 pm | Humphrey, NE
January 22nd | 5:00 pm | St. Edward, NE
January 29th | 5:00 pm | Laurel, NE
February 5th | 10:30 am | Royal, NE
February 10th | 5:00 pm | Elgin, NE
February 11th | 10:30 am | Seward, NE
February 12th | 10:30 am | Hampton, NE
February 12th | 5:00 pm | Polk, NE
February 18th | 10:30 am | Shelby, NE

RSVP Today at this web site: https://www.surveymonkey.com/r/BCBJBTG.  



NRD Legislative Conference Brings Together Elected Leaders, Highlights Partnerships

The Nebraska Association of Resources Districts hosts their annual Legislative Conference to highlight partnerships and discuss natural resources policy at the Lincoln Embassy Suites Jan. 28-29, 2025.

The two-day conference brings together Natural Resources Districts (NRDs), elected officials and public-private partners integrally involved in conservation, technology, and policymaking. The conference also provides attendees an opportunity to learn how Nebraska’s NRDs work with landowners, state and federal agencies, and members of the public to protect Nebraska’s natural resources.

Governor Jim Pillen will kick off the event Tuesday, Jan. 28, followed by a property tax reform panel with the Nebraska Chamber of Commerce, Nebraska Farm Bureau, and Nebraska Association of School Boards; and a discussion of proposed legislation of interest to the NRDs. During the evening Senators Reception, NRD leaders will meet with state senators to discuss natural resources challenges and successes in the districts.

The conference continues Wednesday, Jan. 29, with breakout sessions for attendees, including:
    Improving Nitrogen-Use Efficiency for Corn in Nebraska: In-Season Management
    Natural Resources Conservation Service (NRCS) Dam Rehabilitation
    Revitalizing Irrigation: Restoring Aging Canals for Sustainable Water Management
    Update on Nebraska Department of Environment and Energy’s ONE RED Program
    Examining the Effect of Fertilizer Application Practices on Soil Nitrate and Water Quality
    Funding the Future: Strategies for Infrastructure Implementation
    Maximizing Producer Profits through Carbon-Smart Practices and the 45Z Tax Credit
    Nebraska Hydrology
    Eastern Nebraska Water Resources Assessment (ENWRA) Recharge Mapping and Focus Area Assessments
    Update on the Resilient Soils Act and the Nitrogen Reduction Act
    Bringing Life Back to Methodist Cove: Harlan County Lake Ecosystem Restoration

More than 300 natural resources stakeholders are expected to attend the conference, which is presented by Nebraska’s Natural Resources Districts with a range of local and national sponsors including Blue Cross Blue Shield Nebraska, Eastern Nebraska Water Resources Assessment (ENWRA), HDR, Houston Engineering Inc., JEO Consulting Group, Olsson, Nebraska Department of Natural Resources, The Daugherty Water for Food Global Institute and The Nebraska Water Center.

Conference registration is available on the Nebraska Association of Resources Districts’ website: https://www.nrdnet.org/events.



Crop Production Estimates Available for 2025 Growing Season

Iowa farmers can estimate the cost of producing various crops in 2025 by using data published in the January edition of Ag Decision Maker.

The article “Estimated Costs of Crop Production” https://www.extension.iastate.edu/agdm/crops/html/a1-20.html includes average production costs for corn, corn silage, soybeans, alfalfa and pasture maintenance. Decision tools https://www.extension.iastate.edu/agdm/decisiontools.html, as well as web-based calculators https://www.card.iastate.edu/tools/ag-decision-maker/crops/, are available that allow farmers to enter their own numbers, so they can estimate production costs on their own farm.

Production costs are always important to know in advance of the planting season, but even more so during a period of tighter profit margins in the crop market.

“The economic outlook for 2025 continues the pattern we ended 2024 with, where prices have fallen below production costs and any opportunities for profits will be limited this year, barring significant changes with either smaller production or greater usage,” said Chad Hart, professor in economics and economist with Iowa State University Extension and Outreach.

Hart said the report shows a 2% to 3% decline in the cost of corn production, driven mainly by lower fertilizer and chemical costs compared to 2024, whereas soybean costs are 1% higher. Total cost per bushel is impacted by higher trend yields used in the budgets, resulting in 1% to 6% declines overall. Land cost is projected to be stable, with increases in labor and machinery costs.

The report provides estimates for common crop rotations, including corn following corn, corn following soybeans and corn following silage. The report lists specific costs commonly associated with each crop, including seed, fertilizer, machinery use and labor. Budgets for various production methods are also included, such as low-till and strip-till budgets for corn and soybeans. Machinery costs reflect both new and used equipment and are up 3% to 4% in the 2025 projections.

Due to differences in soil condition, the quantity of inputs used and other factors, production costs will ultimately vary from farm to farm. Labor is treated as a fixed cost in the report, because most labor on Iowa farms is supplied by the operator, family or permanent hired labor.

Historical estimates of Iowa crop production costs are also available at Ag Decision Maker, dating back to 2000.

Farm bill decisions
Other important tools are also available in the January Ag Decision Maker update, including decision tools to help farmers select the appropriate farm bill program https://www.extension.iastate.edu/agdm/crops/html/a1-33.html. Options include Price Loss Coverage and Agricultural Risk Coverage, with options for individual farm coverage or county-level coverage. The tools help farmers analyze and select the best option for their own operation.

The current farm bill has been extended through Sept. 30. Ann Johanns, extension program specialist in farm management, said with price changes in the projections for ARC-CO and PLC, it is a good time for producers to consider if their current enrollment best fits their operation’s risk management needs. USDA’s Farm Service Agency dates to make changes to program enrollment for ARC and PLC for the 2025 crop year are open from Jan. 21 to April 15, 2025.



Weekly Ethanol Production for 1/10/2025

According to EIA data analyzed by the Renewable Fuels Association for the week ending January 10, ethanol production notched 0.6% lower to 1.10 million b/d, equivalent to 45.99 million gallons daily. Yet, output was 3.9% higher than the same week last year and 7.2% above the five-year average for the week. The four-week average ethanol production rate decreased 0.2% to 1.10 million b/d, which is equivalent to an annualized rate of 16.97 billion gallons (bg).

Ethanol stocks swelled 3.6% to 25.0 million barrels, the largest weekly level since the end of April 2024. Stocks were 2.7% less than the same week last year but 3.9% above the five-year average. Inventories built across all regions except the Midwest (PADD 2).

The volume of gasoline supplied to the U.S. market, a measure of implied demand, slipped 1.8% to 8.33 million b/d (127.97 bg annualized). Yet, demand was 0.7% more than a year ago and the five-year average.

Refiner/blender net inputs of ethanol rebounded 6.4% to 829,000 b/d, equivalent to 12.74 bg annualized. Net inputs were 0.7% less than year-ago levels but 0.7% above the five-year average.

Ethanol exports declined 19.4% to an estimated 125,000 b/d (5.3 million gallons/day). It has been more than a year since EIA indicated ethanol was imported.



Retail Fertilizer Prices Start 2025 Mixed

It's a new year but virtually the same old retail prices for fertilizers. Continuing the same trend as at the end of 2024, prices for all eight major fertilizers saw no significant movement in either direction during the first week of January 2025. DTN designates a significant move as anything 5% or more.

Average retail prices for five fertilizers were slightly higher than the previous month. Those were potash, which had an average price of $444 per ton, 10-34-0 $615/ton, anhydrous $735/ton, UAN28 $326/ton and UAN32 $365/ton.

Prices for the remaining three fertilizers were slightly lower than a month ago. DAP had an average price of $738/ton, MAP $808/ton and urea was at $490/ton.

On a price per pound of nitrogen basis, the average urea price was $0.53/lb.N, anhydrous $0.45/lb.N, UAN28 $0.58/lb.N and UAN32 $0.57/lb.N.

Three fertilizers are now higher in price compared to one year ago. MAP is 1% more expensive, while both DAP and 10-34-0 are 2% higher looking back to last year. The remaining five fertilizers are lower. UAN28 is 3% less expensive, anhydrous is 5% lower, both urea and UAN32 are 7% less expensive and potash 13% lower compared to last year.



NCGA Releases Targets to Increase Agricultural Competitiveness

The National Corn Growers Association (NCGA) today published its 2025 Corn Competitiveness Report providing a roadmap for the incoming Trump administration and the new Congress to bolster the economic outlook for farmers and rural America. The report comes as corn growers are forecasted to face a third year of negative returns in 2025.

“The U.S. is a corn-producing superpower, growing about one-third of the world’s corn and doing so more sustainably than anywhere else on earth,” the report noted. “But the future of this American-grown powerhouse is in jeopardy as costly and burdensome regulations and outdated, unfavorable policies hinder American corn farmers’ market access resulting in high costs and low market prices.”

According to the report, the U.S. can turbocharge American competitiveness by focusing on six key targets:
    Increasing global market access for U.S. corn
    Expanding the use of U.S. corn in ethanol
    Strengthening farm risk management
    Preserving the American farm family legacy and farmland access
    Protecting access to agricultural innovations  
    Strengthening use of U.S. corn in American products
     
The report provides specific examples of the ways in which the U.S. can achieve these targets. These include developing new foreign markets, passing legislation that will expand consumer access to higher blends of ethanol, ensuring sensible regulations are in place and extending estate tax exemptions.

​​​​​​​“If the United States is going to build the greatest economy in history, supporting American corn farmers is foundational,” the report noted. “Corn growers need an environment where they can be innovative, productive and profitable. An environment with unobstructed access to necessary inputs, management tools and markets.”

Corn grower leaders argue that a change in Washington offers an opportunity to address these challenges. They say by following the report’s recommendations, the Trump administration and Congress can boost the economy and ensure American corn growers are competitive on the world stage.  



USDA Publishes Interim Rule on Technical Guidelines for Climate-Smart Agriculture Crops Used as Biofuel Feedstocks

Wednesday, the U.S. Department of Agriculture (USDA) announced the publication of an interim rule on Technical Guidelines for Climate-Smart Agriculture Crops Used as Biofuel Feedstocks. The interim rule establishes guidelines for quantifying, reporting, and verifying the greenhouse gas (GHG) emissions associated with the production of biofuel feedstock commodity crops grown in the United States. These guidelines will facilitate the recognition of climate-smart agriculture within clean transportation fuel programs, creating new market opportunities for biofuel feedstock producers while enhancing climate benefits.

“The new guidelines are a win for farmers, biofuel producers, the public, and the environment. The action today marks an important milestone in the development of market-based conservation opportunities for agriculture,” said Agriculture Secretary Tom Vilsack. “Today’s action also builds on the Biden-Harris Administration’s historic work to create greater opportunity for homegrown, renewable biofuels. From making E15 more widely available at gas station pumps and approving record biofuel levels, to investing in infrastructure to help communities invest in biofuels, to accelerating a future for Sustainable Aviation Fuels, this Administration created pathways for economic growth that will reverberate for generations to come.”

“America’s farmers play a critical role in building the clean energy economy,” said White House Senior Advisor for International Climate Policy John Podesta. “Today’s announcement from USDA reinforces the important role climate-smart agriculture plays in our rural economy, including in fueling clean transportation solutions, as well as the importance of providing pathways for unbundled, science-based accounting of the carbon benefits of climate-smart practices that help farmers earn more for what they grow.”

The rule issued today establishes a framework to connect climate-smart agriculture (CSA) practices applied in the production of feedstock crops with reductions in the carbon footprint of biofuels. The rule includes three feedstock crops: corn, soy, and sorghum. It also covers CSA practices that could reduce GHG emissions or sequester carbon, including reduced till and no-till; cover cropping; and nutrient management practices, such as the use of nitrification inhibitors. Importantly, the interim rule allows for adoption of CSA practices both individually or in combination. This means that participating farmers would have the flexibility to adopt the CSA practices that make sense for their operation, while still being able to produce feedstocks with reduced carbon intensities under the rule.

Through this interim rule, USDA is establishing standards that can be used to quantify, track, and report the impacts of these practices. The interim rule establishes voluntary guidelines that may inform the development of requirements for other programs which incentivize low-carbon biofuels.

Establishing quantification and verification standards for climate-smart practices helps to ensure that the net GHG emissions reductions from these practices are real, thereby improving credibility and confidence, which could facilitate market opportunities for U.S. farmers growing biofuel feedstocks. In addition to reducing GHG emissions and increasing carbon sequestration, CSA practices can also generate additional environmental benefits, including improved water quality and soil health.

The interim rule includes guidelines on the following:
    Biofuel feedstock crops and entities in the biofuel supply chain;
    Quantification of farm-level crop-specific carbon intensity;
    Chain of custody standards for entities in the biofuel supply chain, including traceability and recordkeeping standards;
    Auditing and verification requirements; and
    Climate-smart agriculture practice standards for the biofuel feedstock crops included under the rule.

USDA is also publishing a beta version of the USDA Feedstock Carbon Intensity Calculator (USDA FD-CIC) to facilitate the quantification of farm-level crop-specific carbon intensity. USDA FD-CIC allows for the calculation of a farm-scale carbon intensity in line with the standards in the interim rule. USDA will complete a peer-review process to finalize the methodology and resulting carbon intensities included in USDA FD-CIC. USDA will evaluate and respond to the public feedback and peer-review provided on USDA FD-CIC, after which USDA will establish a final version. Until that time, users should consider values from USDA FD-CIC as preliminary. As part of this process of testing and feedback prior to finalization, the public will have the opportunity to examine and download USDA FD-CIC to experience how it would operate.

USDA is requesting public comment on the interim rule to help inform future revisions or additions to the final rule. Interested parties are welcome to submit comments on any aspect of the rule. The interim rule will be posted for public inspection on January 16 on www.regulations.gov and will be published on January 17. Interested parties may submit comments during the 60-day public comment period.



Latest Climate Smart Guidance Could Open New Profit Opportunities for Soy Growers

The U.S. Department of Agriculture (USDA) today announced an interim final rule on technical guidelines for measuring carbon reductions from climate smart agriculture (CSA) practices under the 45Z program. If adopted, the rule would better position U.S. soybean farmers to access incentives for utilizing practices that generate positive environmental outcomes, improve soil health and help meet the growing demand for biofuels.
 
Brent Swart, president of the Iowa Soybean Association (ISA) and soybean farmer from Spencer, issued the following statement:
 
“Today’s interim final rule released today by USDA could move the needle on farmers’ ability to participate in the booming renewable fuels space, all while helping to reduce emissions and unlock new profit opportunities for the crops we produce. If realized by the incoming administration, the rule would provide a broader range of qualifying CSA practices—providing farmers with greater flexibility to make on-farm decisions that best fit their operation’s unique needs.
 
“While this guidance is not yet final and thus not actionable by farmers and their partners, it is a step in the right direction. We are committed to working with the U.S. Treasury and the Internal Revenue Service to ensure that these interim rules become actionable. We look forward to working with lawmakers and the incoming administration to provide feedback and ensure soybean farmers and the state’s biofuel producers are well positioned to fully access this market opportunity and reduce the carbon intensity for biofuels.”
 
ISA has long championed biofuel policy that supports Iowa’s farmers. This interim rule contains several wins that are a direct result of the advocacy of the Iowa Soybean Association and our partners. Under this proposal, new practices such as reduced till and split fertilizer application were added, alongside existing practices like no-till and cover crops. Additionally, the requirement to bundle multiple practices together was also removed. The association will submit public comment on the proposal in the near future.



Release of Climate Smart Ag Guidance Could Boost Farm Income and Help Unlock New Markets for Biofuels Producers

Wednesday U.S. Secretary of Agriculture Tom Vilsack announced an interim final rule regarding technical guidelines for calculating carbon reductions from climate smart agriculture (CSA) practices. If adopted, this would allow farmers to capture an economic reward for agronomic practices that improve environmental outcomes, while providing biofuels producers another option for meeting the growing international demand for low carbon fuels.

“The interim final rule released today by USDA could be a major step forward in unlocking the potential to reduce farm-level carbon and thereby reduce the carbon intensity for biofuels,” said Iowa Renewable Fuels Association (IRFA) Executive Director Monte Shaw. “There are several improvements from the previous CSA program, including more practices and flexibility. Just as importantly, a quick review of the new carbon calculator seems to show farmers would be given full credit for CSA practices instead of an artificially reduced number as in the previous iteration. Secretary Vilsack has once again pushed the envelope forward based on sound science and data. IRFA looks forward to digging into the proposal and providing feedback to help make it ever better.”

Included in the released interim final rule is a wider range of qualifying practices and greater farm-level flexibility, along with additional fertilizer options. The carbon calculations are specific to individual counties to ensure the best accuracy. The rule outlines procedures for quantifying, verifying and reporting CSA impacts.

“It is important to note that, if finalized, this CSA program could be not only adopted into federal policies like the 45Z Clean Fuel Production Tax Credit, but also into state clean fuel policies and international carbon programs as well,” added Shaw. “With the reliance on the best data and science and the imprint of the USDA, the onus going forward should not be on why a carbon program should adopt CSA, but rather on how they could possibly justify not recognizing CSA.”



NCGA Reacts to USDA Rule Impacting Biofuel Tax Credit

The U.S. Department of Agriculture published an interim rule today that provides guidelines for climate smart agriculture practices for crops used for biofuels.

The tax credit, part of the Inflation Reduction Act, is designed to help the agricultural industry make inroads into the aviation sector. Farmers have long awaited today’s release.

The new rule removes the requirement to bundle climate smart practices and instead allows corn to qualify as an eligible feedstock if individual practices are used to grow it. But farmers have also asked for more clarity on how they will benefit from the law.

“We are appreciative of Secretary Vilsack for ushering the process along and increasing the number of corn bushels that would qualify for the tax credit,” said Illinois farmer and National Corn Growers Association President Kenneth Hartman Jr. “It is still unclear whether that is enough to enable farmer participation.”

Additional opportunities for improvement would include the use of a book and claim system and the expansion of practices that would qualify for the credit, both of which would allow for greater farmer participation.

USDA will open a 60-day public comment period in which NCGA will continue to communicate the role farmers are playing in producing feedstocks for biofuels.

“Corn growers are poised to meet this market demand if given the opportunity,” Hartman said. “We look forward to working with the Trump administration as this process evolves.”



ACE Welcomes USDA Guidelines to Create Meaningful Opportunities for Farmers, Biofuel Producers

Wednesday, the American Coalition for Ethanol (ACE) welcomes the U.S. Department of Agriculture (USDA) interim final rule “Technical Guidelines for Climate-Smart Agriculture (CSA) Crops Used for Biofuel Feedstocks,” to help create meaningful opportunities for farmers and biofuel producers through the implementation of sustainable practices. USDA also issued a Feedstock Carbon Intensity Calculator (USDA-FD-CIC) to quantify greenhouse gas emissions per bushel from corn and other domestic feedstock crops.
 
USDA’s rule aligns with ACE’s feedback to the department and our commitment to promote climate-smart farming practices and improving the procedures for quantifying, reporting and verifying their effect so farmers and biofuel producers get properly rewarded under clean fuel programs, including the 45Z Clean Fuel Production tax credit. The rule mentions ACE’s Regional Conservation Partnership Program (RCPP) projects, which will serve as a valuable resource to inform updated greenhouse gas (GHG) credit values for CSA practices, improving the accuracy of GREET and addressing perceived “information gaps” currently preventing farmers and ethanol producers from monetizing CSA practices in regulated markets.
 
While the Trump Treasury Department holds ultimate authority in crafting final guidance for the 45Z tax credit, ACE welcomes USDA lending its expertise to how CSA practices are handled to help provide a strong foundation for ensuring clean fuel programs reward innovative, verifiable sustainability efforts.
 
ACE CEO Brian Jennings expressed gratitude for USDA’s leadership, stating:
 
"We commend Secretary Vilsack and the Office of Chief Economist for taking critical steps to support farmers and biofuel producers in achieving verifiable carbon reductions through climate-smart practices. We’re pleased to see greater flexibility for farmers, including the stacking of practices and a departure from the all-or-none bundled approach previously required under 40B. ACE looks forward to continuing our collaboration with USDA and the Treasury Department as it finalizes the 45Z Clean Fuel Production tax credit under the incoming administration, ensuring these efforts are accurately recognized and rewarded.
 
“The ACE-led USDA-Natural Resource Conservation Service (NRCS) Regional Conservation Partnership Programs (RCPPs) are designed to help improve the accuracy of the GREET model, and we look forward to partnering with Argonne scientists and USDA, particularly in how climate-smart agriculture crops are calculated under GREET and USDA’s new feedstock carbon intensity tool, to ensure farmers and ethanol producers can maximize on 45Z and future programs.”
 
USDA is requesting public comment on the interim rule to help inform future revisions or additions to the final rule until March 18.
 
In related news, the U.S. Department of Energy’s Argonne National Laboratory issued its updated Greenhouse gases, Regulated Emissions, and Energy use in Technologies (GREET) model (45ZCF-GREET), following the U.S. Treasury Department’s Friday announcement with preliminary 45Z guidance.
 
“Since 45Z is based on lifecycle greenhouse gas emissions, every single point of carbon intensity has value, which makes it essential to get the details around modifications to the GREET model right, and we also thank the Department of Energy scientists for continuing to evolve this gold-standard lifecycle modeling tool,” Jennings added.



National Farmers Union Secures Government Action Against John Deere’s Monopoly Power

National Farmers Union (NFU) proudly supports the lawsuit filed by the Federal Trade Commission (FTC) and the attorneys general of Minnesota and Illinois against John Deere & Co., alleging the company’s repair restrictions violate competition laws. NFU filed a formal complaint with the FTC and has long been at the forefront of the fight for farmers’ right to repair.

“NFU filed the formal complaint with the FTC to uphold farmers’ basic economic right to repair their own equipment. Today’s lawsuits mark a key victory in this fight for family farmers and ranchers, recognizing that monopolies should not stop farmers from being able to repair their own equipment,” said NFU President Rob Larew. “When we prevail, farmers will have the power and freedom to fix their equipment faster and at a lower cost. We commend the FTC on this decisive step to safeguard farmers’ rights.”

For years, NFU has championed farmers’ rights to access the tools, information and software necessary to repair their own machinery. John Deere’s repair policies block farmers from fixing their own equipment and force them to rely on a limited number of dealers. This had led to exorbitant costs and significant operational delays during critical planting and harvesting periods. A 2023 study by the US Public Interest Research Group found that U.S. farmers could save as much as $1.2 billion a year if manufacturers like John Deere stopped imposing repair restrictions.

The signatories on the complaint include the Nebraska Farmers Union and the Iowa Farmers Union.