Friday March 07 Ag News

YEUTTER INSTITUTE EXPERTS EXPLAIN TRADE IMPACTS ON NEBRASKA AG PRODUCERS

As international trade issues receive growing attention, it is important for Nebraskans to understand the ramifications for the state’s ag sector and overall economy. The Clayton Yeutter Institute of International Trade and Finance is uniquely positioned to meet that need.

The institute, named after former U.S. Trade Representative Clayton Yeutter, stands out for its multidisciplinary approach encompassing agricultural economics, law, business and policy making.

Three of the institute’s faculty chairs have written a report examining the economic ramifications and legal background for U.S. tariffs recently imposed on China, Mexico and Canada.

Those U.S. trade actions are separate from the administration’s recently announced intention to study and later impose “reciprocal tariffs” on individual countries, depending on their level of tariffs and non-tariff barriers.

“The administration is signaling that it intends to make trade policy an ongoing, high-profile part of its agenda, connected to overall economic policy,” the institute said. “Decisions will impact businesses, farmers, consumers, the economy and the trading system.”

Understanding the multiple issues involved in the administration’s trade actions “requires legal, economic and diplomatic lenses — an approach that defines the Yeutter Institute,” the report said.

The new U.S. tariffs on goods from China, Mexico and Canada can be expected to erode the export competitiveness of Nebraska’s ag sector and decrease its access to export markets due to trading partners’ retaliation, the Yeutter analysis found.

Increased U.S. tariffs on crude oil imports from Canada and Mexico, for example, would increase the cost of all refined fossil fuel products in the U.S., wrote John Beghin, Mike Yanney Yeutter Institute Chair and professor of agricultural economics. New U.S. tariffs would also affect fertilizer prices, since the U.S. imports most of its potash from Canada.

The tariff on China imposed Feb. 4 by the administration is likely to produce a negative economic impact on the U.S. larger than that during the 2018 U.S.-China trade war, wrote Edward Balistreri, Duane Acklie Yeutter Institute Chair and professor of economics. The new U.S. tariff action not only broadens the set of Chinese goods subject to the trade tax, but has triggered China’s trade retaliation on U.S. energy goods, motor vehicles and agricultural equipment.

The Trump administration is breaking new legal ground by basing the new tariffs on a 1977 law, the International Emergency Economic Powers Act, not used previously for tariff justification, wrote Matthew Schaefer, Clayton Yeutter Chair and professor at the University of Nebraska College of Law.

As a result, any legal challenges are likely to face an uphill climb, since U.S. courts have traditionally given very wide latitude to presidential actions under the 1977 law, Schaefer wrote.

Nebraska’s economic well-being is closely connected to the global marketplace. The state ranks fifth as an agricultural exporting state, with $10 billion in sales abroad in 2022. Overseas sales account for about 30% of the state’s total agricultural receipts, according to the Nebraska Farm Bureau. More than half of the state's soybean crop is sold outside the U.S.

The institute’s interdisciplinary approach stems from the experience of Clayton Yeutter (1930-2017), a Eustis, Nebraska, native, for whom the institute is named. He earned three degrees from the university: a Bachelor of Science, law degree and doctoral degree in agricultural economics. His career encompassed the private sector, as president of the Chicago Mercantile Exchange, as well as agricultural economics and government service as U.S. secretary of agriculture and U.S. trade representative.

The institute is part of the university’s Institute of Agriculture and Natural Resources.



National Biochar Survey and Biochar On-Farm Experimentation Opportunity

Producers are invited to participate in a new biochar research initiative, which will assist industry professionals with identifying obstacles in biochar use, and providing guidance on incentives and support for biochar adoption on farmland in the U.S.

American Farmland Trust (non-profit organization), US Biochar Initiative (non-profit organization), the University of Nebraska, and Cornell University are working on a Conservation Innovation Grant to test biochar across the U.S. with on-farm research. If you are interested in conducting on-farm research with biochar, please contact Dr. Guillermo Balboa or Michael Kaiser.

If you are a farmer applying or interested in applying biochar, please take the national biochar survey https://www.surveymonkey.com/r/BiocharNation. You have the opportunity to enter a drawing to win a $100 gift card as a thank you for your participation. The survey will take around 15 minutes to complete.

The goal of this survey is to better understand who is applying biochar, and why and where. We aim to identify the factors influencing farmers’ success and persistence with applying biochar on their farms and examine the possible barriers. The survey results will provide a blueprint for supporting greater successful adoption of sustainable, fit-for-purpose biochar use among farmers.

If you are an ag service or biochar provider, please share this survey broadly with your network to get it into the hands of farmers who use or are interested in biochar. We greatly appreciate any help in widely disseminating this national survey.

This survey is funded by the Natural Resources Conservation Service (NRCS) On-Farm Trials Conservation Innovation Grants national program (NR233A750011G029) and was designed in collaboration with AFT’s biochar partners. For questions or inquiries, contact Ellen Yeatman, social science analyst.



Ricketts, Klobuchar Introduce Renewable Fuel for Ocean-Going Vessels Act

Thursday, U.S. Senators Pete Ricketts (R-NE) and Amy Klobuchar (D-MN) introduced the Renewable Fuel for Ocean-Going Vessels Act. The bipartisan bill would allow companies to preserve Renewable Identification Number credits (RINs) under the Renewable Fuel Standard (RFS) program, when the fuel for use is in ocean-going vessels.

“Expanding the use of biofuels like renewable diesel strengthens American energy independence, supports Nebraska agriculture, and reduces emissions,” said Senator Ricketts.“This bipartisan bill will deliver new market opportunities for Nebraska farmers who have played a crucial role creating a strong renewable diesel economy.”

“Domestically produced biofuel strengthens our energy independence, supports our farmers, and boosts rural economies,” said Senator Klobuchar. “This common sense legislation will expand markets for farmers and fuel producers by providing ocean-going vessels a lower carbon fuel.”

“Ocean-going cargo ships, tankers, and passenger vessels have a need for low-carbon, low-sulfur biodiesel and renewable diesel which provides an additional market for biofuels,” said Congresswoman Mariannette Miller-Meeks (IA-02), the bill’s lead in the U.S. House of Representatives. “This legislation allows for RINs to be generated for renewable marine fuel without requiring an obligation on any parties. I thank my colleagues for supporting this legislation which opens the door for communities, like farmers in Iowa, to engage, and be involved, in the marine fuel industry and conversation.”

“This bill is a win for everyone who values stronger markets, cleaner energy, and a stronger, safer America,” said Dawn Caldwell, Executive Director of Renewable Fuels Nebraska. “It’s a commonsense step to put renewable energy to work on the high seas, which will support our country’s farmers and producers while moving us one step closer to energy independence. We’re grateful to Senator Ricketts for leading on this issue that is so crucial to Nebraskans. And we call on his colleagues in Congress to pass it quickly and look forward to President Trump signing it into law.”

BACKGROUND:
The RFS excludes “fuel used in ocean-going vessels” from the definition of transportation fuels and from refiners’ and blenders’ obligations. Refiners and blenders are currently required to retire RINs from any biodiesel and renewable diesel used in vessels with Class 3 engines operating in international waters, including the Great Lakes. In the first ten months of 2023, more than 5 million D4 RINs were retired under this rule.

The Environmental Protection Agency, however, allows companies to generate and use RINs for “additional renewable fuel,” which includes heating oil and jet fuel. The Renewable Fuel for Ocean-Going Vessels Act would expand the RFS definition of additional renewable fuel and allow companies to use or sell the RINs associated with biodiesel and renewable diesel used in ocean-going vessels.



Trade Groups Applaud Bipartisan, Bicameral Renewable Fuel for Ocean-Going Vessels Act
 
Thursday, Clean Fuels Alliance America and other groups representing agriculture and maritime fleets thanked Senate and House champions for introducing the bipartisan Renewable Fuel for Ocean-Going Vessels Act. Sens. Pete Ricketts (R-NE) and Amy Klobuchar (D-MN) sponsored the legislation in the Senate. Reps. Mariannette Miller-Meeks (R-IA), John Garamendi (D-CA) and six others sponsored identical legislation in the House of Representatives.

The legislation designates renewable fuel used in ocean-going vessels as an “additional renewable fuel” eligible for credit under the Renewable Fuel Standard. It will enable companies to preserve Renewable Identification Number credits (RINs) in the RFS program when renewable fuel is used in certain maritime vessels.

Joining Clean Fuels in supporting the legislation are National Oilseed Processors Association (NOPA), North American Renderers Association (NARA), World Shipping Council, Iowa Biodiesel Board, California Advanced Biofuels Alliance, and other groups seeking to increase use of low-carbon fuels and reduce carbon emissions in international shipping and travel.



Dollars and sense considerations of extending days on feed in the feedlot

Increasing days on feed for feedlot cattle isn’t a new idea. However, several research studies in recent years have shown that as cattle get bigger a large percentage of their weight gain is in the form of carcass weight gain. Grant Crawford, associate director of cattle technical services at Merck Animal Health, said this concept, termed carcass transfer, allows cattle feeders the opportunity to extend days-on-feed and increase profitability on certain groups of cattle. This is particularly true if cattle are sold on a carcass-weight basis.

Crawford, who spoke at the 2025 Feedlot Forum in northwest Iowa, said the current situation with low grain prices, near record-high fed cattle prices, and near record-high feeder cattle prices offers a unique situation.

“Current feeder cattle prices make profit projections very narrow, and there may be an advantage to adding more pounds to the cattle that are already in the feedlot-and already paid for,” he said. “Especially compared with purchasing and placing a lighter weight feeder and taking the risk that these new cattle may not produce a profit.”

Crawford explained some recent research regarding increased carcass weight and live weight gain per day.

“A very rough estimate of carcass transfer is that 75% of live weight gain during the extended feeding period (extending past the normal finishing weight) is in the form of carcass weight,” he said. “The research we have conducted shows steers gain approximately 2 lbs/day carcass weight, and 2.6 lbs/day live weight with extended days-on-feed. These estimates can be used to predict performance, incremental cost-of-gain, and added revenue from extending days-on-feed.”

Extending days-on-feed typically makes more sense for cattle feeders who sell their cattle on a carcass weight basis rather than a live weight basis. This is because of the high percentage of weight gain in the form of carcass weight toward the end of the feeding period, Crawford said.

Also, extending days can be risky when selling cattle on a grid basis. Though extending days may be advantageous for increasing premium quality grades like Prime and Certified Angus Beef, it will likely also increase potential carcass discounts such as Yield Grades 4 and 5 and overweight carcasses.

Heifers versus steers also can make a difference. Heifers are earlier maturing and therefore may realize carcass discounts - Yield Grades 4 and 5 especially - earlier than steers. They’re also less efficient than steers.

While current market dynamics allow producers this opportunity, changes in those dynamics of higher feed prices and lower fed and/or feeder cattle prices, the opportunity to extend days-on-feed may diminish.

Producers interested in learning more about how more days on feed could work in their operation can compare past similar groups, Crawford said. Finished weights and carcass weights at typical days-on-feed, feed intakes at heavy weights, and carcass characteristics are important to know. It also is important to know how often the producer sees late-term deads or morbidities, as this can vary greatly across feedlots.

Bottom line, Crawford said, is it’s important to be pragmatic.

“’One in the hand vs two in the bush’ is fitting here, because there definitely is risk in feeding cattle longer,” he said. “For example, larger cattle can be hard on pens, fences, and feeders. Any death loss in market-ready fed cattle is expensive. Weather can also play a major factor and any potential gains can easily be offset by mud, heat stress, cold stress, etc.



Nominate a Conservation Leader for the Iowa Farm Environmental Leader Award

Gov. Kim Reynolds, Secretary of Agriculture Mike Naig and Department of Natural Resources Director Kayla Lyon invite Iowans to nominate individuals or families who are conservation leaders in their community for the 2025 Iowa Farm Environmental Leader Award.

The award recognizes farmers and farm families who go above and beyond to take voluntary actions to improve and protect our state’s natural resources, including our soil and water, while serving as leaders within their communities. Since the creation of the award in 2012, 821 farm families have been recognized.

“There is no group more wholeheartedly committed to conservation than our farm families, whose way of life depends on leaving the land and water better than they found it,” said Gov. Reynolds. “The Farm Environmental Leader Awards are an opportunity to recognize those who have excelled in doing just that, even while they also carry out their responsibility to feed and fuel the world. I look forward to honoring the remarkable legacy they’re leaving at the Iowa State Fair.”

The recipients of the award will be honored during a ceremony on Wednesday, Aug. 13, 2025, at the Iowa State Fair. Gov. Reynolds, Lt. Gov. Cournoyer, Secretary Naig and Director Lyon will present each awardee with an Iowa Farm Environmental Leader Award sign and certificate.

“Iowa continues to break conservation records, and that would not be possible without committed farm families and landowners who are increasingly putting more water quality and soil conservation practices into action,” said Secretary Naig. “This award offers an opportunity to recognize worthy farmers and farm families who are true conservation leaders. We’re excited to celebrate their commitment to conservation during the 2025 Iowa State Fair.”

To be considered for recognition in 2025, nominations will be accepted through May 5, 2025.

“We always look forward to recognizing farmers and landowners throughout our state who include conservation practices as a focal part of their farm legacy,” said Director Lyon. “The award recipients are leading by example, proving that agriculture and natural resources are intertwined."

The nomination form can be found on the Iowa Department of Agriculture and Land Stewardship’s website. An appointed committee representing conservation and agricultural groups will review the nominations and select the winners.



Thousands of Farmers Call for Immediate Action on E15

A letter signed by nearly 9,000 corn growers and advocates from 47 states was sent to House and Senate leadership today calling for action to remove an obsolete federal policy that prevents the sale of fuel with 15% ethanol blends, often referred to as E15, during the summer months.

“A legislative solution for consumers to access year-round E15 comes at no cost yet would provide critical support to our nation’s energy sector, overdue relief to American families, and provide necessary economic security to rural communities,” the letter said.

The letter was sent by the National Corn Growers Association (NCGA) to Senate Majority Leader John Thune (R-S.D.), Minority Leader Chuck Schumer (D-N.Y.), House Speaker Mike Johnson (R-La.) and Minority Leader Hakeem Jeffries (D-N.Y.).

The sheer number of signatures in the letter is testament to the strong sentiment about increased ethanol demand among farmers, especially as commodity prices drop and input costs increase.  

“Standardizing year-round E15 will result in an increase in corn demand of about 2.3 billion bushels per year,” the letter stated. “Considering that about one-third of corn produced in the U.S. is used for ethanol production, this demand creation will result in an impressive improvement in profitability for operations across the nation – and rural communities will reap the benefits.”

Moving a legislative fix to year-round E15 across the finish line has been a goal of growers for years. Congress came close to approving a legislative fix at the end of 2024 but fell short.

In mid-February, corn grower allies in the House and Senate introduced the Nationwide Consumer and Fuel Retailer Choice Act to address the issue and, along with corn grower leaders, have pushed hard for its passage.



Secretary Rollins Thanks President Trump for Trade Actions with Mexico and Canada

U.S. Secretary of Agriculture Brooke Rollins today praised President Donald J. Trump’s action to make adjustments to tariffs imposed on imports from Canada and Mexico that fall under his historic United States-Mexico-Canada Agreement (USMCA) in addition to a reduction of tariffs on potash, a key ingredient in fertilizers that farmers depend on.  

“President Trump’s announcement which includes a reduction of tariffs on potash not already covered under the USMCA from 25% to 10% is a critical step in helping farmers manage and secure key input costs at the height of planting season while reinforcing long-term agricultural trade relations,” said Secretary Rollins. “The temporary tariff exemption for Canada and Mexico is a smart, strategic move to keep trade negotiations on course while delivering real results for American agriculture. Canada must commit to fair trade practices—including those in dairy, eggs, and poultry, and Mexico must maintain open markets. Once again, the President’s leadership ensures that U.S. farmers remain at the forefront—fighting for fair trade, lower costs, and stronger market access.”



Soy Farmers Appreciate Tariff Reprieve

“U.S. soybean farmers are appreciative of the administration’s announcement March 6 temporarily suspending tariffs on Canada and Mexico,” said Caleb Ragland, ASA president.

“Cross-border trade between our three nations is vital for the continued success of U.S. agriculture, and we appreciate the president’s work to protect our sector. We were particularly heartened to see a drop in duties for imports of Canadian potash, on which our farmers rely,” the soybean farmer from Magnolia, Kentucky, explained.

International trade is a critical pillar of U.S. agriculture, and soybeans are the country’s largest exported commodity. Over 50% of the domestic soybean crop is destined for customers around the world, so market access—both expansion and maintenance—is a top priority for ASA.

“We encourage the administration to immediately engage with its counterparts in China to pursue a continuation of the Phase One trade agreement negotiated by President Trump and signed in 2020. The Phase One agreement brought much-needed tariff relief for farmers while addressing issues pertaining to market access, intellectual property protections and other issues important to U.S. agriculture and our country at large.

Instead of a tit-for-tat trade war, U.S. soybean farmers support engaged negotiations by the Trump administration to bring about commitments to expand market access in China and protect farmers from retaliation. This is especially critical considering the current challenging farm economy,” Ragland said.



Farm Bureau Appreciates Mexico & Canada Tariff Delay

American Farm Bureau Federation President Zippy Duvall commented today on President Trump’s decision to delay tariffs on Mexico and Canada until April 2, 2025.

“Farm Bureau appreciates President Trump for delaying tariffs on imports from Mexico and Canada for another month. The pause will ensure farmers and ranchers can continue to export American agricultural goods to both countries without fear of retaliatory tariffs.

“Ensuring the safety of America’s families and leveling the playing field for trade is a worthy goal, but unfortunately, farmers and rural communities often suffer from tariff retaliation. More than 20% of U.S. farm income comes from exports, with Mexico and Canada being agriculture’s largest trading partners, and approximately 85% of potash – a key ingredient in fertilizer – is imported from Canada.

“Farm Bureau has been engaging with the White House, USDA, and the U.S. Trade Representative’s office to emphasize the impact of tariffs on America’s farmers and ranchers, who are already suffering through a third straight year of losses on almost all major crops. We encourage the administration to continue working toward permanently resolving issues with Mexico and Canada to preserve important markets and to ensure farmers have access to the supplies they need to keep America’s pantries stocked.”



ARA Applauds Trump Administration’s Tariff Postponement & Reduction for Canadian Potash

Agricultural Retailers Association (ARA) President & CEO Daren Coppock released the following statement expressing gratitude to the Trump administration for hearing the concerns of agriculture and granting today’s tariff reduction on imported potash:

"Given that the United States sources over 85 percent of its potash from Canada, this exemption is crucial to prevent supply disruptions and cost increases that could adversely affect farmers nationwide.

"Canadian potash, a vital nutrient for U.S. crop production, plays an indispensable role in ensuring robust crop yields and maintaining the competitiveness of American agriculture. While this reduction will ease access to potash, if other imported fertilizer products remain subject to tariffs, those costs will be passed on to growers.

"Tariffs on imports will impact the cost and availability of other crop inputs used by farmers, and retaliation to tariffs will cost U.S. producers in terms of access to offshore markets. However, today’s decision is helpful and much appreciated.

"We commend the administration’s responsiveness to concerns raised by ARA, other agricultural industry stakeholders, and members of Congress. This is a step in the right direction, and ARA remains committed to collaborating to promote policies that support the agricultural supply chain, safeguard food security, and enhance the prosperity of farming communities across the nation."



U.S. Ethanol and DDGS Exports Experience Vigorous Start to the New Year

U.S. ethanol exports kicked off 2025 with momentum, climbing 2% in January to reach a nine-month high of 198.1 million gallons (mg), fueled by surging shipments to India. Canada retained its position as the top destination for the 46th consecutive month despite a 14% decline to 53.9 mg, with denatured ethanol making up 90% of the total. India tripled its imports to 35.1 mg—the highest in four years—marking a 21.3 mg jump from December. Exports to the European Union slowed 15% from December’s record high to 30.3 mg, predominantly shipped to the Netherlands, while the United Kingdom slashed imports in half to 14.1 mg. Other larger markets included Colombia (up 24% to 13.4 mg), the Philippines (down 4% to 11.3 mg), and Brazil (up 22% to 9.5 mg, a nine-month high). China remained virtually absent from the market.

The U.S. imported 1.7 mg of fuel ethanol in January, predominantly from Brazil. Additionally, 12.5 mg of industrial ethanol were imported, of which 68% was from Brazil and 26% was from Canada.

U.S. exports of dried distillers grains (DDGS), the animal feed co-product generated by dry-mill ethanol plants, slipped 24% in January to a 21-month low of 811,480 metric tons (mt) on mixed global demand. Mexico and South Korea strengthened their positions, collectively capturing 41% of total DDGS exports—Mexico increased shipments by 17% to 229,331 mt, while South Korea lifted 10% to 105,644 mt. Other expanding markets included Japan (up 13% to 46,391 mt), Thailand (up 55% to 25,335 mt), and China (up 20% to 20,569 mt). However, several key markets scaled back purchases, including Vietnam (-11% to 93,606 mt), Canada (-12% to 66,996 mt), Indonesia (-28% to 54,389 mt, a 2-year low), Turkey (-51% to 47,541 mt), and the European Union (-46% to 26,387 mt). The remaining 12% of DDGS exports were distributed across 19 countries.