Tuesday January 14 Ag News

 Peoples Company Acquires Lincoln-based United Farm and Ranch Management

Peoples Company, a recognized leader in integrated land management, brokerage, appraisal, and energy solutions with offices across the nation, today announced it acquired Lincoln-based United Farm and Ranch Management (UFARM). UFARM, a nearly 100-year-old land management company, will add 15 employees and four offices, along with more than 90,000 acres of farm and ranch land under management, to Peoples Company’s growing team and portfolio.

“For nearly 100 years, landowners have trusted the United Farm and Ranch Management team to implement strategies to improve farm productivity and increase the value of their land. While ownership of the company is changing, the 100-year legacy of stewardship and trusted advisement of United Farm and Ranch Management will remain,” said Steve Bruere, President of Peoples Company.

Headquartered in Lincoln, UFARM has offices in Kearney, Norfolk, and North Platte. The company specializes in the management of farmland, ranches and recreational properties, and offers real estate and appraisal services.  UFARM currently manages land in five states: Nebraska, Colorado, Kansas, Missouri, and South Dakota.

Peoples Company, which is based just outside of Des Moines in Clive, Iowa, will retain all UFARM’s employees. Peoples Company has licensed brokers, appraisers, and is actively managing land in the states where UFARM has land under management.

“As we considered the next chapter for United Farm and Ranch Management, our team was focused on a partnership that provided continuity for our clients and employees, finding a team that shared our client-focused approach to land management, and offered complimentary services so our clients can reap the rewards of the new partnership,” said Chris Scow, Managing Broker and Operations Manager of UFARM. “With Peoples Company’s robust land brokerage experience, their energy management services, and their capital markets group, we believe this partnership positions our team and our clients exceptionally well for the next 100 years.”

Peoples Company’s acquisition of UFARM in Nebraska comes on the heels of their 2024 purchase of Lallman, Paulson & Brettmann, Inc. in Fremont, Neb., and their 2020 acquisition of Omaha-based Mid-Continent Properties, Inc.



Boehm to step down as IANR leader

After nearly a decade of successful leadership, Mike Boehm is stepping down in the dual role as the University of Nebraska’s Harlan Vice Chancellor for the Institute of Agriculture and Natural Resources and vice president for agriculture and natural resources.

Boehm will continue in the role through the spring semester before returning to a faculty role in the Department of Plant Pathology and working to help advance key university initiatives. Tiffany Heng-Moss, dean of the College of Agricultural Sciences and Natural Resources, will serve as the interim leader of IANR starting June 1.

In a Jan. 13 message to campus, Chancellor Rodney D. Bennett praised Boehm as a trusted partner and campus leader.

“Together, we have logged countless miles traveling across the state — from Nebraska City to Scottsbluff — meeting the remarkable people who make Nebraska unique,” Bennett said in the message to campus. “His dedication to IANR, the university and the state has been inspiring and impactful, leaving a legacy of progress and collaboration.”

A celebration for Boehm and his contributions to the university will be announced.

Through the spring semester, Boehm will work closely with Heng-Moss to ensure a smooth leadership transition.

Heng-Moss has served as dean of the College of Agricultural Sciences and Natural Resources since 2019. She led the college as interim dean from 2017 to 2019 and was associate dean for five years. She has been a faculty member at the university since 2001.

“(Heng-Moss) is deeply connected to the agricultural community across the state and around the country, and she is an accomplished educator and researcher,” Bennett said. “She is ideally situated to lead the institute during this critical period.”



USDA Finalizes Third New Regulation Under the Biden-Harris Administration to Create Fairness and Transparency for Contract Farmers

Agriculture Secretary Tom Vilsack today announced the third installment in a series of regulatory reforms under the Packers and Stockyards Act that, in combination with other updates finalized under the Biden-Harris Administration, is intended to level the playing field for farmers who raise chicken, turkeys, hogs, cattle, and sheep under contract or for sale to meat and poultry processing companies.

Specifically, the rule announced today will give chicken farmers better insight into companies’ payment rates for their birds, will institute stability and fairness in what is commonly known as the ‘tournament system,’ will provide farmers with key information on capital improvements the companies require farmers to make in order to keep or renew contracts, and give farmers stronger leverage when companies do not adhere to the rules.

“During my time as Secretary of Agriculture, time and again USDA has been confronted with the stories of farmers who lost their life’s savings or went bankrupt because of an unfair system they entered into when they agreed to raise animals for a major meat conglomerate. It is USDA’s job to advocate for farmers, and these regulatory improvements give us the strongest tools we’ve ever had to meet our obligations under the Packers & Stockyards Act,” said Agriculture Secretary Tom Vilsack. “While there is still work to be done, I am immensely proud that the Biden-Harris Administration has taken historic action to level the playing field for farmers. This complements other ways we’ve worked to enhance competition across the agriculture sector, from investing in independent processing capacity, to shoring up domestic fertilizer production, to promoting transparency around seed technology and markets. As the bedrock of so much that our society depends on, and the pillar of rural economies, farmers deserve honesty, certainty and options when it comes to their hard work.”



CHS reports first quarter fiscal year 2025 earnings

CHS Inc., the nation’s leading agribusiness cooperative, today released results for its first quarter of fiscal year 2025. The company reported net income of $244.8 million and revenues of $9.3 billion for the quarter that ended Nov. 30, 2024, compared to net income of $522.9 million and revenues of $11.4 billion in the first quarter of fiscal year 2024.

Key highlights for first quarter fiscal year 2025 financial results:
    Decreased selling prices for grains, oilseeds and refined fuels led to lower revenues.
    Despite strong sales volumes, Energy segment earnings declined due to evolving market conditions negatively impacting refining margins.
    Ag segment earnings were moderately lower due to softening oilseed crush margins compared to historically high margins in the first quarter of the prior fiscal year.
    Equity method investments continued to perform well, with the CF Nitrogen investment being the largest contributor.

“The energy industry is experiencing compressed refinery margins at the same time that U.S. agriculture is seeing a weaker farm economy with a globally competitive marketplace for grains and oilseeds,” said Jay Debertin, president and CEO of CHS Inc. “Just as we have for nearly 100 years, CHS is leveraging our efficient global supply chain, strong relationships and expertise to navigate these changing markets, while strategically investing to meet our owners’ future needs.”

Energy
Pretax earnings of $19.8 million for the first quarter of fiscal year 2025 represent a $247.1 million decrease versus the prior year period and reflect:
    Lower refined fuel margins due to less favorable market conditions, including higher U.S. refinery capacity utilization and global production
    The positive impact of lower costs for renewable fuel credits, which partially offset lower income from refined fuels

Ag
Pretax earnings of $166.7 million represent a $3.1 million decrease versus the prior year period and reflect:
    Decreased margins in oilseed processing due to a larger supply of canola and soybean meal and oil across global markets, somewhat offset by the timing impact of market adjustments
    Market-driven price decreases in wholesale and retail agronomy

Nitrogen Production
Decreased market prices for urea, partially offset by lower natural gas costs, contributed to pretax earnings of $25.2 million — an $11.2 million decrease versus the prior year period.

Corporate and Other
Pretax earnings of $47.2 million represent a $3.3 million increase versus the prior year period, primarily reflecting improved equity method investment income.



USDA Announces 2025 Enrollment Periods for Crop and Dairy Safety-Net Programs

The U.S. Department of Agriculture (USDA) announced the 2025 enrollment periods for key safety-net programs – Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) as well as Dairy Margin Coverage (DMC). Agricultural producers can submit applications to USDA’s Farm Service Agency (FSA) for ARC and PLC for the 2025 crop year from Jan. 21 to April 15 and for DMC for the 2025 coverage year from Jan. 29 to March 31.

ARC and PLC provide financial protections to farmers from substantial drops in crop prices or revenues and are vital economic safety nets for most American farms. Meanwhile, DMC provides producers with price support to help offset milk and feed price differences.  

“Our safety-net programs provide critical financial protections against commodity market volatilities for many American farmers, so don’t delay enrollment,” said FSA Administrator Zach Ducheneaux. “If you’re getting coverage through the Agriculture Risk Coverage or Price Loss Coverage programs, avoid the rush and contact your local FSA office for an appointment. Even if you are not changing your program election for 2025, you still need to sign a contract to enroll.”

“And at $0.15 per hundredweight for $9.50 coverage, risk protection through Dairy Margin Coverage is a relatively inexpensive investment in a true sense of security and peace of mind.”   

The American Relief Act, 2025 extended many Farm Bill-authorized programs for another year, including ARC and PLC as well as DMC.  

ARC and PLC
Producers can elect coverage and enroll in ARC-County (ARC-CO) or PLC, which provide crop-by-crop protection, or ARC-Individual (ARC-IC), which protects the entire farm. Although election changes for 2025 are optional, producers must enroll through a signed contract each year. Also, if a producer has a multi-year contract on the farm it will continue for 2025 unless an election change is made.   

If producers do not submit their election revision by the April 15 deadline, their election remains the same as their 2024 election for commodities on the farm from the prior year. Farm owners cannot enroll in either program unless they have a share interest in the cropland.       

Covered commodities include barley, canola, large and small chickpeas, corn, crambe, flaxseed, grain sorghum, lentils, mustard seed, oats, peanuts, dry peas, rapeseed, long grain rice, medium grain rice, safflower seed, seed cotton, sesame, soybeans, sunflower seed and wheat.   

USDA also reminds producers that ARC and PLC elections and enrollments can impact eligibility for some crop insurance products including Supplemental Coverage Option, Enhanced Coverage Option and, for cotton producers, the Stacked Income Protection Plan (commonly referred to as STAX).  

DMC
DMC is a voluntary risk management program that offers protection to dairy producers when the difference between the all-milk price and the average feed price (the margin) falls below a certain dollar amount selected by the producer.  

DMC offers different levels of coverage, even an option that is free to producers, minus a $100 administrative fee. The administrative fee is waived for dairy producers who are considered limited resource, beginning, socially disadvantaged or a military veteran.

DMC payments are calculated using updated feed and premium hay costs, making the program more reflective of actual dairy producer expenses. These updated feed calculations use 100% premium alfalfa hay.   



Survey Showing SCN’s Continued Spread Renews Focus on the Threat

Researchers have been updating the map of known soybean cyst nematode (SCN) distribution regularly since 2000, and with each update, the threat spreads. The latest update, spearheaded by Iowa State University (ISU) nematologist Greg Tylka, reveals 31 counties in 10 U.S. states reporting SCN for the first time during the 2020 through 2023 timeframe.  

In Canada, 10 rural municipalities in Quebec and three counties across Manitoba and Ontario reported SCN for the first time over that three-year span.  

SCN widespread in soybean-producing areas
Most of the primary soybean-producing areas in the U.S. and Canada overlap the SCN distribution map. In the U.S., SCN is in every county of Illinois and Iowa, the top two soybean-producing states.  

SCN costs U.S. soybean farmers more yield than any other pathogen. Losses due to SCN are double that of the next largest pathogenic threat. Based on SCN’s ongoing spread, Tylka says, “It’s reasonable to conclude that increased soybean yield losses due to the nematode will follow, if not already occurring in these areas.”  

And just because an area is not reporting SCN does not mean fields there are free of the pathogen. “Fields may be infested with the nematode for many years before infestations are discovered,” the report notes.  

Why SCN is tough to beat
After the initial discovery of SCN in North America in 1954, breeders developed soybean varieties with genetic resistance to SCN, namely PI 88788 and Peking. “A great majority of SCN-resistant soybean varieties available throughout soybean-producing areas of the U.S. and Canada were developed with resistance genetics from PI 88788,” Tylka explains. But after decades of overuse, SCN populations developed resistance to PI 88788.  

While PI 88788 resistance still dominates seed company offerings, the number of soybean varieties with Peking resistance is rising. In fact, the number of varieties with Peking resistance available to Iowa farmers in 2025 more than doubled from last year to 200, according to ISU’s annual checkoff-funded publication. The list contains a total of 920 SCN-resistant soybean varieties.  

“Farmers now have many choices of varieties with Peking SCN resistance from many brands,” Tylka says. “That enhances their ability to rotate resistant varieties, a key element of active SCN management.”

Actively managing SCN
To combat mounting resistance to PI 88788, The SCN Coalition encourages farmers to work with their trusted agronomic adviser to develop a plan, including:
    Test fields to know your numbers.
    Rotate resistant varieties.
    Rotate to non-host crops.
    Consider using a nematode-protectant seed treatment.  

Because soybeans with Peking SCN resistance will likely outyield PI 88788 resistance varieties in SCN-infested fields, it can be tempting to plant Peking over and over. But that’s a bad idea. Prolonged use of Peking SCN resistance will create its own resistance battle. The best strategy is to rotate resistance types.  

Defining SCN’s toll on a field-by-field basis
SCN robs soybean yield with little to no aboveground symptoms. For that reason, spreading awareness about the threat and its economic damage are priorities for The SCN Coalition. SCN’s wide distribution focuses attention on the pathogen and can motivate more farmers to test their fields.  

Farmers can get an estimate of what SCN is robbing their bottom line by using the SCN Profit Checker calculator https://www.thescncoalition.com/profitchecker/. Powered by data from more than 25,000 university research plots, the tool estimates the economic toll of SCN, field by field. By giving farmers the ability to put dollars and cents on SCN’s toll, the Coalition hopes to increase active management of the pathogen.  



Register Today For CattleCon 2025

While CattleCon 2025 is just around the corner, Feb. 4-6, in San Antonio, Texas, it isn’t too late to register. Whether flying or driving, make plans to join thousands of cattlemen and women for the largest cattle industry event in the country. Register in advance at convention.ncba.org or in person on-site.

Buzz Brainard, host of Music Row Happy Hour, returns as emcee to kick things off on Tuesday, Feb. 4, along with Opening General Session speaker Lieutenant Colonel Dan Rooney. A decorated F-16 fighter pilot, professional golfer, philanthropist and bestselling author, Rooney is called to “inspire people to help people.'' Rooney is best known for founding the Folds of Honor, a leading non-profit organization that provides educational scholarships for children and spouses of fallen or disabled military service members and first responders.

Wednesday morning begins with celebrating the 2025 Beef Quality Assurance Award winners. This special general session will be impactful for those looking to transition their business to the next generation or new ownership; Dr. Shannon Ferrell will examine generational changes shaping the world today including remote work and shifts in wealth creation.

Also on Wednesday, the Sustainability Forum will include a panel of industry experts discussing building operation resilience through adoption of written grazing management plans. Grazing management plans (GMPs) build resilience by establishing a baseline for observing and managing land, cattle and finances while enabling producers to make informed decisions about operational goals. Panelists will provide insights into the application of GMPs for production, drivers of adoption, socioeconomic factors and supply chain opportunities.

The final day begins with CattleFax conducting their U.S. & Global Protein and Grain Outlook Session. Randy Blach, the team at CattleFax and meteorologist Matt Makens will discuss what 2025 and beyond might look like for the cattle industry.

Throughout CattleCon, the 32nd annual Cattlemen’s College will include educational sessions with industry leaders tackling innovative topics. Other highlights include a D.C. Issues update, Today’s Beef Consumer market research update and Beef Industry Forum. The Cattle Feeders Hall of Fame banquet and Environmental Stewardship Award Program reception will recognize leaders for their achievements, and there will be more than nine acres of displays, exhibitors and education in the NCBA Trade Show.

There will be plenty of entertainment for all to enjoy. Anah Higbie, winner of the 12th annual NCBA National Anthem Contest, will perform at the Opening General Session, Paul Bogart, a CattleCon favorite, will bring his down-to-earth charm to Wednesday’s Big TX Fest, and contemporary country music star Scotty McCreery will perform following the San Antonio Stock Show & Rodeo Thursday night.

In addition, producers will be hard at work guiding both NCBA policy and Beef Checkoff programs. Annual meetings of the National Cattlemen’s Beef Association, the Cattlemen’s Beef Board, American National CattleWomen, CattleFax and National Cattlemen’s Foundation will also take place.

For more information and to register, visit convention.ncba.org.



2025 Picks Up Where 2024 Left Off
Will Secor, Extension Livestock Economist, University of Georgia

Cattle markets are off to a hot start in 2025. All through the supply chain from beef markets to feeder cattle markets, prices are up significantly year-over-year. Continuing tight supplies and strong demand remain the driving forces behind these price movements.

Boxed beef prices are up about 16% year-over-year and moved higher in the second week of January compared to the first reading of the year. Direct fed steer prices also increased this week by about 2% compared to last week and up 17% year-over-year. It is notable that these year-over-year price increases come amid higher head counts moving through negotiated cash markets this week.

In feeder cattle markets, prices are up across the country and across weights. 700-800 lb. feeder steer prices are up roughly 20 percent in the Plains and much of the Southeast. Some areas have seen more substantial increases (e.g., Oklahoma at around 24%), while others more moderate (e.g., Mississippi at around 16%). Heifer prices in this weight range have seen similar price increases.

At lower weights, prices are also higher. However, different regions have seen more pronounced differences. Many parts of the Southeast have seen 500-600 lb. steer prices proportionally higher than heavier weight feeder steers. For example, 700-800 lb. steers in Kentucky increased 23% year-over-year, while 500-600 lb. steer prices increased slightly more at 26%. 400-500 lb. steer prices in Kentucky were up by 34% year-over-year. In contrast, many western states saw prices increase proportionately less for lighter-weight feeder cattle compared to their heavier-weight counterparts.

Overall, 2025 has picked up where 2024 left off. Prices continue to move higher year-over-year. Demand appears to be steady to strong as reflected in last year’s projected large beef disappearance and higher beef prices. Moreover, additional macroeconomic data, such as the recent jobs report, suggests that the overall economy could support continued beef consumption in the year-ahead.

Additionally, cattle supplies remain tight in 2025. While aggregate supplies (i.e., overall U.S. cattle inventories) are unlikely to change in the short term, there are reports that feeder cattle imports from Mexico could begin again later this month. This could create downward pressure to some feeder cattle prices in the weeks after imports are allowed again, whenever that occurs. However, overall cattle inventory will remain constrained in the year ahead supporting higher prices going forward.