Wednesday August 26 Ag News - Corn Silage and Kernal Processing - CAP Land Management Webinar Tomorrow - Landowners & Renewable Energy Leases - RFS Small Refinery Exemptions could top 1.8 billion - and more!

Appraising crops through cattle feeding
Alfredo DiCostanzo, Nebraska Beef Systems Extension Educator

The economic approach to assigning economic value to a crop grown for the feedlot (it could be in association with a family member or another partner unit) is based on a simple principle. Subtract the value of off-farm expenses from the gross return (generally receipts of cattle sold, but manure value as fertilizer should also be included here) and assign the balance to the cropping operation.

From the gross value of the economic return (cattle sales), one subtracts the cost of all other items used in the cattle feeding process including cattle, yardage (which includes labor, fuel and oil, repairs, utilities, facilities depreciation, etc.), veterinary medicine expenses, purchasing and selling costs including trucking, and feed or supplements (distillers grains, micro-ingredients, supplements, additives, etc.) purchased off the farm. The balance is then assigned to the crop operation to pay for feed raised on the farm.

Following this approach, the feedlot activity results in zero return. Therefore, one must calculate an acceptable return to the feedlot activity, generally prime lending rate plus 2 points. Currently, that value is 10% annual return. This return is applied to the feedlot activity using the investment in cattle feeding (using the figures from the feedlot closeout for example) and feeding period say 210 days or 58% of a year, which translates to 5.75%. If feeding a single lot for 210 days results in a 1-million-dollar investment, then a reasonable net profit to the feedlot activity is $57,500.

This return must be subtracted from the balance left over from the calculation of gross return minus off-farm expenses to ascribe a proper feedlot activity return. Once this is accomplished, the balance (positive or negative) belongs to the farming activity.

The next challenge is the proper allocation of value from this balance to each crop using in the feedlot activity. Using the energy contribution of each feed ingredient to the diet, the allocation to each crop raised on the farm is obtained.

The examples I am using included three lots of cattle fed between the fall of 2025 and this summer. Cattle performed well in the feedlot, gaining at 3.7 lb daily for cattle starting at 600 to 700 lb and finishing at around 1,500 lb. As expected, feed conversion was great, under 6.4 lb feed per lb gain.

When assigning economic value to the farming activity after allocating off-farm costs and feedlot profit, corn ranged from $6.50 to $8.90/bushel or between 166% to 224% the value at the local grain market. At an average yield of 200 bushels to the acre and cost of $1,000 per acre, the farming operation received $1,300 to $1,780 per acre and made between $300 and $780 per acre because of the feedlot activity.

Similar values were assigned to high-moisture corn (between 170% and 230% of their market value). Interestingly, both crops used to provide fiber in the diet benefited greatly. Corn silage and hay value were over 216% and 144%, respectively, greater than their market value. This would imply that corn silage was valued at over $80 and hay at over $200 per ton, respectively.

This exercise can be applied to backgrounding or even cow-calf operations. Regardless of application, and despite the poor conversion efficiency (or any other perceived negativity including methane emissions), these are examples of how cattle operations improve the value of land and contribute to economic development.



KERNEL PROCESSING FOR QUALITY CORN SILAGE 
- Ben Beckman, NE Extension Educator 

High value silage depends on maintaining chop quality throughout harvest. Do you know how to reliably monitor your silage quality?

Energy from corn silage comes in a large part from starch in the grain itself. After consuming, the outer seed coat impedes starch digestion.  To counter act this, many modern choppers are fitted with a kernel processor, that physically crushes or damages the grain and stalks, improving digestibility.  Correctly setting these rollers is critical.  Too close and machine wear increases, too far apart and the kernels aren’t broken and digestibility is decreased.  

To achieve high-quality silage, catching any problems with the processor as soon as possible is critical. To do this, grab a 32 oz. cup and at least once an hour during harvest, grab a sample from the pile.  

Next spread the sample out on a flat surface like a card table near the pile and go through the kernels.  Count all the kernels that are ½ or greater in size. You can also put the sample into a bucket of water.  The kernels will sink to the bottom and stalks and leaves will float.  Skim/drain off the top layer and again count any kernels that are ½ or greater in size.

For both methods, the goal is to have 2 or fewer whole or ½ size kernels in your count.  Anything over that and word can be passed to the chopper to adjust the processing.

For those who don’t have access to a kernel processer, keeping chop length short can help accomplish similar results.  Shortening chop length to 3/8 inch for machines without a processor will do more kernel damage and maintain similar fiber particle size.  For those whose priority is not particle size, mostly beef producers, dropping down to ½ inch chop length will damage even more kernels and provide the additional benefit of helping get a better pack.



CAP Webinar: Nebraska Cash Rents - Lease Deadlines, Rental Rates, and Fair Agreements
Aug 27, 2026 12:00 PM 

Nebraska landowners and tenants should begin reviewing their lease arrangements before the September 1 deadline for terminating or changing the terms of a verbal agricultural lease. This webinar will explain the deadline, examine the newly released USDA NASS county cash rental rates, identify changes from 2025, and demonstrate practical methods for establishing equitable cash rents for the 2027 growing season.

With Anastasia Meyer and Jim Jansen, Extension Agricultural Economists, UNL Center for Agricultural Profitability.

Register for the live webinar at the Center for Agricultural Profitability's webinar page, https://cap.unl.edu/webinars. 



New resource helps landowners navigate renewable energy lease agreements

Farmers and landowners are increasingly being approached about leasing land for solar, wind, and battery storage projects. According to the Center for Rural Affairs, these agreements can create opportunities to generate long-term, stable income from their property as renewable energy development grows.

A new fact sheet from the Center for Rural Affairs aims to help landowners better understand the leasing process.

“Renewable energy development can be a strong opportunity for rural landowners, but lease agreements are long-term commitments that deserve careful review,” said Laura Priest, policy associate with the Center. “Understanding each step of the process helps landowners protect their interests, set clear expectations, and build a productive relationship with developers.”

The fact sheet provides information on the renewable energy leasing process, from early conversations with a developer to site review, lease negotiations, construction, operation, and eventual decommissioning. 

The process often begins with an initial consultation, when a developer gathers basic information about the property. If the site appears to be a good fit, the developer may then conduct a more detailed evaluation of factors that will impact the success of the development.

“Marginal or lower-producing agricultural land may be especially well suited for some projects, allowing landowners to generate predictable payments over multiple years from acres that are less productive for traditional farming,” Priest said. “Projects can also incorporate dual-use solar practices that keep land in agricultural use through grazing, crop integration, or beekeeping.”

The fact sheet also highlights things to consider before entering into a lease option, notice of intent, or long-term agreement. Landowners are encouraged to ask questions, seek professional guidance, and understand that organizations can support them through the process.

“Clear communication from the beginning is key,” Priest said. “A strong agreement should address not only how the project begins, but how the land will be used, maintained, and restored over time.”

To read and download the fact sheet, visit cfra.org/publications. 



Reported Refinery Exemptions Could Undermine Domestic Soybean Demand

The Iowa Soybean Association is raising serious concerns over reported changes to small refinery exemptions under the Renewable Fuel Standard (RFS) that could significantly reduce domestic demand for biofuels made from U.S. soybeans.

Reports indicate exemptions for the 2025 compliance year could exceed 1.8 billion Renewable Identification Number (RIN) credits, nearly twice the level the U.S. Environmental Protection Agency anticipated when establishing current biofuel blending requirements. If approved, the increased exemptions could eliminate an estimated 500 million gallons of biomass-based diesel demand and cost U.S. soybean farmers approximately $1 billion in lost revenue during a period of already tight profit margins.

“The strength of the U.S. soybean industry depends on maintaining and expanding domestic markets for soybeans and soybean oil and reducing our reliance on China,” says ISA President Tom Adam, a soybean farmer from Harper. “Iowa farmers need certainty that policies supporting domestic biofuel demand will be upheld.”

Adam says President Trump made the right call for farmers and rural America when he set the current renewable volume obligations. Backtracking on his commitment to the farmers who supported him would be devastating and felt for months and years to come.

“We urge the administration to maintain a strong RFS and ensure refinery exemptions don’t erode the demand created by increased biofuel volumes.”

For Iowa’s soybean farmers, maintaining strong domestic demand for soybean oil is critical. Biomass-based diesel represents an important market for Iowa-grown soybeans, supporting soybean prices, farm income and economic activity throughout rural communities. Iowa is the nation’s leading producer of biodiesel and soybean oil. In 2025, Iowa used 1.68 billion pounds of soybean oil to produce 224.5 million gallons of biodiesel. This volume is equivalent to nearly 144 million bushels of soybeans, or roughly 24% of the state’s total crop.

ISA urges the administration to reject any attempt to expand the use of small refinery exemptions that would undermine the RFS, reduce biofuel demand and negatively affect soybean farmers.



Massive Refinery Exemptions Would Undo Progress Under Trump’s 2026-2027 RFS Blending Levels

This week biofuels markets have been thrown into chaos over rumors that the EPA may grant nearly double the forecasted amount of refinery exemptions (SREs) from the 2025 Renewable Fuel Standard (RFS) blending levels. In March, the EPA forecasted less than one billion gallons of exemptions for 2025, but now it now has been reported the agency plans to exempt 1.8 billion gallons. Such an action would undermine the progress made since President Trump finalized record RFS blending levels in March.

“President Trump rightly garnered much praise in March by finalizing the most robust RFS blending levels in history,” said Monte Shaw, Executive Director of the Iowa Renewable Fuels Association. “To reverse course now by granting massive levels of unjustified refinery exemptions would be bad policy, bad economics, and bad for farmers. We are hoping this is just another false rumor floated in the media to roil the markets so some credit trader can try to make a buck. But if there is substance behind the rumors, it is not too late to change course and to commit to a robust RFS – a commitment President Trump made in March, a commitment that is working, and a commitment that EPA should not undermine.”

In March, EPA announced that it would clear a backlog of refinery exemption requests from the previous administration covering the 2023-2025 compliance years. The agency adopted a Dept. of Energy methodology to evaluate the requests. In order to minimize the damage to renewable fuel producers, the EPA agreed to reallocate 70% of the exemptions to the remaining obligated parties. At that time, renewable fuels supporters argued for 100% reallocation and few, if any, refiner exemptions. However, combined with record-breaking RFS blend levels for 2026-2027, most biofuels supporters remained generally positive.

“If a new methodology is adopted that grants nearly all refinery exemption requests for the 2025 compliance year, that would equate to roughly one billion lost biofuel gallons,” said Shaw. “And the damage wouldn’t stop there. Applied to 2026-2027, it would mean nearly a billion lost gallons each year going forward as well. So-called record-breaking RFS levels don’t mean a thing if they are reversed through unjustified refinery exemptions. IRFA members urge President Trump to throw this rumor on the ash heap of history, to stand by his commitment to American farmers, and to order the EPA to deny the baseless claims of economic harm by some refiners at a time of record refinery profits.”

Since the EPA finalized the RFS blending levels for 2026-2027 in March, there has been a strong resurgence of biodiesel production in Iowa and around the country, with record production during the last few months. The strong RFS rule that Trump finalized was having an undeniably positive impact.

“Since President Trump put the RFS back on track in March, it has been doing exactly what it was supposed to – driving demand for biofuels. Both biodiesel and ethanol demand hit records this year. In Iowa, we had biodiesel plants that were shuttered or running at very reduced rates. Today they are producing at full capacity, buying soybean oil from our farmers, and hiring back workers that had been let go. It would be reckless and almost unimaginable to pull the rug out from under this success story at the request of a handful of oil refiners that are certainly not suffering from economic hardship during this time of high oil and fuel prices.”



ASA Sounds Alarm: Soybean Farmers Cannot Afford Another Blow to Domestic Demand

The American Soybean Association is sounding the alarm over reports that small refinery exemptions for the 2025 Renewable Fuel Standard (RFS) compliance year could far exceed previous government projections, delivering a major blow to domestic biofuel demand when U.S. soybean farmers can least afford it.

Recent reports and analysis indicate small refinery exemptions from RFS compliance year 2025 could total more than 1.8 billion Renewable Identification Number (RIN) credits under a newly revised methodology being developed. Such a massive volume of RFS compliance exemptions would be nearly double what the Environmental Protection Agency (EPA) had assumed when it published the final 2026-2027 Renewable Volume Obligation Rule. The final biofuel blending rule published earlier this year by the Trump Administration included historic increases in biofuel volumes, boosting domestic demand for biofuels and U.S. soybeans. ASA applauded President Trump and EPA for supporting policies that drive demand, encourage industry investment, and improve local on-farm basis.

If EPA approves small refinery exemption petitions at levels that significantly exceed EPA’s earlier assumptions embodied in current biofuel blending rules, the result will be long-term damage that effectively undercuts the positive actions taken by the Trump Administration. The significant increase in biofuel volumes exempted from the RFS could eliminate around 500 million gallons of biomass-based diesel demand, cost U.S. soybean farmers approximately $1 billion in lost revenue, and put oil refiner interests ahead of farmers, rural communities, and expanded domestic biofuel supplies.

“At a time when soybean farmers are already struggling to support our farms, we cannot afford for the rug to be pulled out from under one of our most important sources of domestic demand,” said ASA Vice President Dave Walton, a soybean farmer from Iowa. “The Trump Administration has been tirelessly supporting policies that expand markets for biofuels made from U.S. soybeans, and we cannot reverse course just as the biofuel industry is beginning to realize the benefits. Domestic biofuel policy succeeds when it supports American farmers producing American energy, not when it gives oil refiners another break at a time when they are experiencing record profits. We hope the President and White House maintain their commitment to U.S. farmers and reject proposed actions that destroy these newly expanded markets in exchange for a giveaway to oil refiners.”

Biomass-based diesel provides a critical and growing domestic market for soybean oil, supporting soybean prices, rural jobs, and economic activity across the country. The reported small refinery exemption actions would run counter to the administration’s stated goals of strengthening American energy dominance, expanding domestic energy production, and supporting rural economies. American-grown biofuels diversify the nation’s fuel supply while creating a reliable domestic market for U.S. agriculture.

ASA has long advocated for the denial of compliance waivers, or small refinery exemptions, which erode the integrity of the RFS by reducing biofuel demand and impacting farmers by lowering the value of soybean crops.

ASA is urging President Trump and officials in the White House to reject any proposal that seeks to broaden the formula used to determine refinery exemptions from biofuel blending requirements in a way that would hurt farmers and erase demand for biofuels. Instead, ASA urges the administration to maintain exemptions no greater than what the EPA estimated using historically backed market data when it published the current biofuel blending rule. 



NFU Urges White House to Reject Small Refinery Exemptions

National Farmers Union (NFU) President Rob Larew gave the following statement Tuesday regarding reports that the Trump Administration would be issuing Renewable Fuel Standard (RFS) exemptions for small refineries.

“Every small refinery bypass is another market stolen from farmers. While oil companies post record profits, family farmers face record losses. The White House needs to reconsider this potential action and choose family farmers over big oil.”