Wednesday May 13 Ag News - Smith on Year-round E15 - Heifer Development at HAL - '26 NE Custom Rates Survey Published - Milk De-pooling and impact to dairy farmers - Corn Growers Spotlight Fertilizer Prices - and more!

Smith Sets the Record Straight on Nationwide, Year-Round E15 

Tuesday, Congressman Adrian Smith (NE-03), co-chair of the biofuels caucus, joined a bipartisan group of his colleagues at a press conference urging Congress to lower prices at the pump for consumers and increase much-needed market access for ag producers by passing his Nationwide Consumer and Fuel Retailer Choice Act.  
 
During his remarks, Smith set the record straight by debunking E15 opponents' false claims while encouraging his colleagues to support commonsense policy as opposed to political gamesmanship. Smith was joined by National Corn Growers Association President Jed Bower, along with U.S. Representatives Nikki Budzinski (IL-13), Michelle Fischbach (MN-07), and Shontel Brown (OH-11). 

On Supporting Commonsense Policies:
"The American people deserve access to affordable, reliable fuel options, and American producers deserve policies grounded in commonsense—not political gamesmanship. That is exactly what nationwide, year-round E15 delivers.

Unfortunately, there has been a smear campaign full of misinformation aimed at preventing nationwide, year-round E15 from becoming a reality.  Now more than ever it is important for me to set the record straight."

On Expanding Choices for Consumers: 
"Our opponents claim this legislation is an unfunded mandate. That is simply false. My Nationwide Consumer and Fuel Retailers Choice Act does not require retailers to sell E15, nor does it force anyone to blend or market a new fuel product. What it does is provide certainty and flexibility for retailers who choose to offer E15 during the remaining three months of the year. It expands consumer choice—it does not impose government mandates."

On Lowering Prices at the Pump: 
"They say 'E15 raises prices for consumers.' When in reality, E15 does the opposite. In fact, it has proven to lower prices at the pump by 30 cents per gallon on average. At a time when families are already stretched thin, lower fuel costs matter, and that is exactly what E15 delivers."

On Increasing Market Access for Biofuels Producers: 
"Corn prices remain under pressure, and if Congress fails to create stronger domestic markets, we may once again be forced into expensive ad-hoc disaster assistance. 

Nationwide, year-round E15 is expected to increase corn demand by more than two billion bushels annually, creating stronger markets for producers while reducing the likelihood of future taxpayer-funded bailouts. This is not wasteful spending—it is smart policy."

On Achieving American Energy Independence: 
"This debate comes down to a simple question: do we want more affordable fuel, stronger energy independence, and expanded markets for American agriculture—or do we want to continue allowing uncertainty and politics to stand in the way?

I believe the answer is clear. Nationwide, year-round E15 is good for consumers, good for producers, and good for America." 



Heifer Development Program Continues at Haskell Ag Lab

The Haskell Agricultural Laboratory is pleased to announce that heifers are once again in our feedlot. Operating as the Haskell Ag Lab Heifer Development Center, the program is currently welcoming producer cattle, providing a dedicated environment focused on developing replacement heifers for producer’s home herds. 
 
A key component of this initiative is the reproductive management of the heifers, which includes the capability to perform artificial insemination up to two times to help ensure breeding success. This will allows producers to focus on the long-term productivity of their replacements with the support of the laboratory’s facilities. 
 
Enrolled heifers can receive genetic testing and pelvic measurements, providing producers with essential insights into the structural soundness and genetic potential of their animals. By integrating these diagnostic tools, the program helps producers make more informed decisions for their operations, ensuring that the heifers returning to their herds are well-developed. 
 
This program serves as a valuable resource for regional producers looking to enhance their breeding programs through development services. For those seeking more specific details regarding the program, please contact HAL Farm Operations Manager Logan Dana at 402-584-3852. 



2026 Nebraska Custom Rates Report Published
Glennis McClure, NE Extension Educator, Farm and Ranch Management Analyst 

The biennial Nebraska Custom Rates Report is now available through Nebraska Extension on the Center for Agricultural Profitability's website. Information in the report is based on survey data collected from 108 Nebraska respondents with rates included for 123 different custom operations and services.

The report provides market rate information as a reference for those offering custom work and for their potential customers. Custom service providers should also consider ownership and operating costs when setting rates. Information presented in the state summary and full report should be used only as a guide when determining what to charge or pay for custom operations.

Agricultural custom rate charges vary across the state. Therefore, the Nebraska Custom Rates Report groups survey responses by Nebraska Agricultural Statistics Districts. Several factors contribute to rate differences reported by survey participants, including field and job size, soil conditions, and the number of responses received for each operation. Some operators may charge below-market rates to neighbors or relatives. Rates may also change from year to year because of expense differences and local market conditions.

Determining an appropriate charge for custom machine hire and agricultural services should include consideration of current market rates reported in the survey, local demand for specific services, and availability of operators in the area.

Fuel cost is a major machinery expense and fluctuates over time. The 2026 custom rates survey data was received primarily during the first quarter of 2026. The statewide average expected farm-delivered diesel fuel rate reported by participants was $2.93 per gallon, with a range of $2.20 to $4.00 per gallon.

Since the survey period, diesel prices have increased. For example, if diesel fuel rises from $2.93 to $4.11 per gallon, that is an increase of $1.18 per gallon. If a power unit uses 0.85 gallons per acre for a specific operation, an additional $1.00 per acre would be needed to cover the increased fuel cost.
Using Ownership and Operating Costs to Set Rates

In addition to market rates reported in the survey, establishing custom service fees should include machine ownership and operating costs, with a profit margin added if desired.

The Center for Agricultural Profitability developed the Agricultural Budget Calculator (ABC) program to help producers determine production costs for their enterprises, including machinery and equipment costs. Producers and custom operators can use the online program to enter machinery information such as purchase value, expected ownership period, annual use, fuel prices, labor costs, repair expense, and field coverage rates to estimate operating costs per acre.

Fuel, repair, and salvage value calculations from the American Society of Agricultural and Biological Engineers (ASABE) are used in the ABC program.

Determining a rate to charge for agricultural custom services should be no different than pricing services in any other industry. First, review current market rates such as those reported in the Nebraska Custom Rates Report. Next, calculate total ownership and operating costs. Finally, add a profit margin if desired.

Full summaries from the custom rates survey, including regional rates for the eight Nebraska Statistics Districts and statewide averages, are published as University of Nebraska–Lincoln Extension Circular EC823 and are available on the Center for Agricultural Profitability's website cap.unl.edu.



Secretary Naig Congratulates Johnston on Being Named New Home of Vylor’s Headquarters  

Iowa Secretary of Agriculture Mike Naig welcomed the announcement that Vylor will plant their new corporate headquarters in Johnston, Iowa: 

“This announcement is tremendous news for Iowa and Iowa agriculture. We congratulate the city of Johnston, Polk County and the state partners who helped make this possible, and we welcome this new chapter for a company with deep and historic agricultural roots in our state. 

This decision reinforces that Iowa is a welcoming place for businesses to invest and thrive. With a competitive tax and regulatory climate, a highly skilled workforce, and an environment for innovation, Iowa is built for growth. 

Planting the headquarters here sends a strong signal to Iowa farmers that this company values being in the heart of agriculture and close to the customers it serves every day. I look forward to working alongside Vylor’s leadership to support Iowa farmers and strengthen our state’s agriculture community.” 



Understanding The Impact Of Milk Market De‑Pooling On Producer Paychecks
Fred M. Hall
Northwest Iowa Extension Dairy Specialist
Iowa State University Extension

Volatility in federal milk pricing and widening spreads between Class III and Class IV milk prices are once again putting dairy producers on alert as milk de-pooling activity intensifies across several Federal Milk Marketing Orders (FMMOs).

Milk de-pooling occurs when handlers voluntarily remove milk used for manufacturing—primarily Class II, III, or IV milk—from the federal revenue pool. While Class I beverage milk must remain pooled, processors of cheese, butter, powder, and other manufactured products can choose to leave the pool when manufacturing values exceed the uniform blend price.

The current market environment has created one of the most extreme incentives for de-pooling in recent history. As of early May 2026, Class IV futures for May and June were trading roughly $5 per hundredweight above Class III futures. Industry analysts note in June 2020, when USDA’s Food Box program was active, Class III futures were significantly higher than Class IV contracts by $8.14/cwt., but the current difference between Class IV and Class III is the highest ever. Historically de-pooling activity accelerates whenever one class of milk dramatically outperforms another. In 2020, pandemic-related government food purchases caused cheese prices to surge, pushing Class III prices more than $8 per hundredweight above Class IV. That spike triggered significant de-pooling and led to deeply negative Producer Price Differentials (PPDs) for many dairy farmers.

Today’s market rally is being driven largely by strong nonfat dry milk and Class IV pricing. Many cooperatives and processors may find it financially advantageous to de-pool milk to capture the full Class IV value rather than share revenues through the blended FMMO pool.

For dairy producers, the consequences can be significant. While de-pooling benefits processors by allowing them to avoid paying large sums into the pool, it often reduces the blend price they pay to farmers who remain in the pool. Negative PPDs may reappear on milk checks, particularly in cheese-heavy orders in the Upper Midwest and Central regions.

The Central FMMO region's March 2026 pooling data already illustrates the impact. Total pooled milk volume fell to 1.35 billion pounds, compared to more than 1.50 billion pounds during March 2025. At the same time, Class III utilization jumped to 48.2 percent while Class IV utilization dropped to just 12.0 percent, reflecting aggressive de-pooling by Class IV manufacturers.

Fluid milk (Class I) processors face additional pressure because they cannot de-pool and must pay the higher of the advanced Class III or Class IV skim milk pricing factors. Those higher costs may eventually translate into increased retail milk prices for consumers.

USDA’s upcoming advanced pricing announcements and All-Milk price reports later this month will be closely watched as producers evaluate the growing impact of de-pooling on milk checks, processor economics, and overall dairy market profitability.



Corn Growers Fight for Transparency, Competition in Fertilizer Market

Corn growers continue to raise alarms about high fertilizer costs, including during a hearing on fertilizer affordability today before the Senate Agriculture Committee.

“In August, South Dakota farmers will begin to seriously plan and make decisions regarding the 2027 corn crop, however it is nearly impossible for them to know what market conditions will look like at that time,” South Dakota Corn Growers Association President Trent Kubik told the committee. “The majority of corn farmers are therefore concerned about fertilizer price and availability as they look forward.”

Kubik was one of many corn grower representatives from across the country who flew in this week, during the middle of planting season, to share their perspective with members of Congress and advocate for the passage of the Fertilizer Transparency Act, which was introduced by Sens. John Thune (R-SD) and Amy Klobuchar (D-Minn.), and several other bills on the matter that are pending in Congress.

“Farmers are saddled with an economic situation that is unsustainable, with skyrocketing fertilizer prices coupled with corn prices that can’t support those costs,” said Matt Frostic, Michigan corn farmer and National Corn Growers Association (NCGA) first vice president, during a visit to Capitol Hill. “The fertilizer industry has become more consolidated, more concentrated, and more unworkable for farmers.”

Kubik also addressed concentration of the fertilizer market during the hearing, noting that only a handful of domestic companies supply the U.S. market.

“Over the past 40 years, fewer and fewer fertilizer firms serve the U.S. farmer due in no small part to industry mergers,” Kubik told the committee. “By almost any measure, these are highly concentrated markets.”

The problem with fertilizer supply and costs worsened in 2020 after the Commerce Department, acting on a petition filed by Mosaic, a U.S.-based company, imposed duties on phosphate fertilizers imported from Morocco and Russia. Mosaic claimed at the time that unfairly subsidized foreign companies were flooding the U.S. market with fertilizers and selling the products at extremely low prices. The petition was supported by J.R. Simplot.

As a result of the decision, at least one Moroccan company halted shipments of phosphate fertilizers into the U.S., which led to record-high fertilizer prices that only abated slightly in subsequent years, only to be impacted again recently by events in the Middle East.

Meanwhile, in a further blow to farmers, Mosaic announced this week that it will scale back domestic production of phosphate fertilizer even as the company is still pushing for increasing duties on imports of Moroccan phosphate, and while they continue to deliver shareholder profitability.

The announcement spurred the ire of the National Corn Growers Association.

“The leaders at Mosaic continue to make one self-serving move after another, and always at the expense of the farmers who buy their products,” Frostic said. “If Mosaic wants to cite financial challenges as a reason for needing to cut production, maybe it’s time they finally recognize the stress they have put on farmers in recent years. The least they could do is call for an end to the duties on phosphate imports from Morocco.”

Frostic said NCGA will continue to sound the alarms and push for congressional action until fertilizer prices come down.



Winter Wheat Production Down 25 Percent from 2025

Winter wheat production is forecast by USDA at 1.05 billion bushels, down 25 percent from 2025. As of May 1, the United States yield is forecast at 47.6 bushels per acre, down 7.3 bushels from last year's average yield of 54.9 bushels per acre. Area expected to be harvested for grain or seed totals 22.0 million acres, down 14 percent from last year.

Hard Red Winter production, at 515 million bushels, is down 36 percent from a year ago. Soft Red Winter, at 301 million bushels, is down 15 percent from 2025. White Winter, at 232 million bushels, is down 5 percent from last year. Of the White Winter production, 8.03 million bushels are Hard White and 224 million bushels are Soft White.



Ranchers Welcome Return to Common-sense Land Management

American Farm Bureau Federation President Zippy Duvall commented today on Bureau of Land Management actions to update grazing regulations and rescind the misguided Conservation and Landscape Health Rule.

“Ranchers appreciate Department of the Interior Secretary Doug Burgum and President Trump for working to provide certainty to ranchers who use public lands for livestock grazing, which is crucial to the success of farmers and ranchers in the Western United States. Modernizing decades-old grazing regulations will provide more flexibility for updated management practices and will help ranchers rebuild America’s cattle herds. Ranchers care for the land they’ve been entrusted with, and responsible stewardship of public lands helps to reduce wildfires, control invasive species, and promote overall health benefits to the land.

“Rescinding the Conservation and Landscape Health Rule and updating grazing regulations recognizes the important balance our country has achieved on public lands. It ensures ranchers have critical access to rangelands, which ultimately supports the stability and availability of homegrown protein for America’s families.”