Tuesday May 5 Ag News

Nebraska Farm Bureau Asks Congressional Delegation to Assist Nebraska Livestock Producers

The COVID-19 pandemic has caused significant challenges in Nebraska’s agricultural economy, especially for cattle, pork, and poultry producers who have been particularly affected by both price decreases as well as significant logistical challenges connected to the slowdown or closure of meat processing facilities due to the pandemic. . Nebraska Farm Bureau (NEFB) is urging Congress to support additional funding for agriculture in any pandemic response package that moves through Congress.

“For pork and poultry producers, the possibility of needing to euthanize animals is quickly becoming a reality due to the closure of packing plants across the country,” said Steve Nelson, NEFB president.  It is hope President Trump’s recent Executive Order will provide for the safe reopening of those plants, as soon as possible.”

In this next round of funding, NEFB would strongly support three specific efforts that would help the entire agriculture industry.

“We hope more funds can provide any necessary personal protective equipment (PPE) to meat packing facilities to ensure the safety of those who are working so hard to process the livestock produced by our members and needed by the rest of the nation and world. Additional funds are needed to support an indemnity program to help compensate producers who have had to euthanize animals. Also, funds are needed to provide monetary assistance to those contract producers who don’t own the animals but are contracted to care and feed them. Those producers were unfortunately left out of the USDA’s Coronavirus Food Assistance Program (CFAP) but will likely still see monetary losses due to fewer or even no animals running through their facilities,” said Nelson.

Cattle and dairy producers are also experiencing significant economic loss during this crisis as market downturns and packing plant slowdowns are hitting their bottom lines. According to a recent analysis conducted by a number of agricultural economists and led by Dr. Derrell S. Peel from Oklahoma State University, the U.S. cattle industry is expected to experience losses of $13.6 billion due to the pandemic. Unfortunately, those losses are expected to largely occur within the cow-calf sector with losses totaling an estimated $3.7 billion, or $111.91 per head for each mature breeding animal in the United States.

NEFB broke the analysis down further and found that Nebraska revenue losses alone would equal $823 million or 10 percent of the state’s cattle receipts in 2018. NEFB also estimates that Nebraska dairy producers stand to lose $69-87 million depending on the class of milk. While cattle and dairy producers will likely see some support from USDA’s CFAP, it will likely fall short of covering the needs of these important industries. “We hope Congress can include another round of funding for our state’s cattle and dairy producers who make up billions of dollars in economic activity in our state, and ensure any payment limits, if needed, would be significantly increased to realistically capture the capital needed in all segments of the livestock industry,” Nelson stressed in his letter.

Nebraska’s livestock industry is extremely important to Nebraska’s economy as well as our nation’s food supply. As Congress continues to provide much needed aid to many segments of our nation’s economy, we believe our nation’s agricultural industry, and more specific our livestock industry, must be included in the next package that moves to the President’s desk.



AG PETERSON, MIDWEST ATTORNEYS GENERAL URGING FEDERAL INVESTIGATION OF MEAT PACKING INDUSTRY PRACTICES

Attorney General Doug Peterson and the Attorneys General from ten other Midwestern states are urging the Department of Justice to pursue a federal investigation into suspected national price fixing by meat packers in the cattle industry.

In a letter to U.S. Attorney General William Barr, the Attorneys General expressed concern over the likelihood of manipulation of the market for processed beef. The four largest meat packing companies control more than 80% of the beef processing in the United States. The shelf price of beef is exceptionally high, while cattle prices are low and continue to dive. The concern over market manipulation has increased with beef prices reaching record levels as consumers stockpile meat in response to the COVID-19 pandemic, but cattle prices remain low and are decreasing.

The Attorneys General say the pricing margins are a sign that meat packers are using their ability to control the market for processed beef and take advantage of the situation in a manner that could violate the federal antitrust law. In addition to harming cattle producers, this potentially illegal practice hurts consumers nationwide, many of whom are themselves struggling because of loss of employment and reduced incomes.

Peterson and the other Attorneys General believe the situation warrants a full federal investigation because the alleged anticompetitive conduct harms consumers and cattle ranchers across the United States.

“We are specifically asking the Department of Justice to lead a thorough examination of the competitive dynamics of this industry. Now, more than ever, we need to dedicate our collective resources to promote competition and protect consumers.”



Fischer Applauds Letter from State AGs Calling for Probe of Meat Packers for Potential Illegal Practices

U.S. Senator Deb Fischer (R-Neb.), a member of the Senate Agriculture Committee, released the following statement today after Nebraska Attorney General Doug Peterson joined state attorneys general from ten other states in writing a letter to the U.S. Department of Justice. The letter called for an investigation into beef packers for potential anticompetitive behaviors, particularly during the COVID-19 crisis.

“I spoke with Attorney General Peterson last month about this issue, and I applaud him for taking an important step toward protecting Nebraska’s cattle producers and feeders. It’s concerning to see serious price losses for producers while packers are seeing record profits. I have been pushing hard for investigations, and agree that an inquiry by the DOJ would help gather the needed information to ensure the integrity of the beef supply chain during this pandemic,” said Senator Fischer.

In April, Senator Fischer wrote a letter to the U.S. Department of Agriculture calling for the department to expand its existing investigation of beef pricing margins to include recent market impacts as a result of COVID-19. Following her letter, the USDA announced that it would expand its investigation.

Senator Fischer also wrote to Senate Judiciary Antitrust Subcommittee leadership calling for a public hearing to examine competition and claims of possible market manipulation. Consequently, Chairman Mike Lee (R-Utah) and Ranking Member Amy Klobuchar (D-Minn.) wrote their own letter to the DoJ calling for investigations into potential anticompetitive activity.



Iowa Cattlemen share concerns; request details regarding Coronavirus Food Assistance Program

The Iowa Cattlemen’s Association executive committee and feedlot council spoke with Under Secretary Bill Northey on Friday, May 1, about the Coronavirus Food Assistance Plan. Northey is the Under Secretary for USDA’s Farm Production and Conservation and his department will facilitate the payments to producers as part of that program.

Chief concerns include the reported $125,000 payment limit per commodity. According to Brad Kooima, a cattle producer, broker, and member of ICA’s feedlot council, the losses associated with 400 head of fed cattle exceed that payment limit. More than 20% of Iowa feedlots fall into that category.

The other primary concern is the expected coverage of losses. Preliminary information states that 85% of losses between January 1 and April 15  and only 30% of the losses after April 15 will be covered. With feedlot price decreases expected to cost producers $477.05 per head in May and June, compared to losses of less than $244 per head in February and March, it is clear that the most significant economic damages are yet to come.

Under Secretary Northey was unable to provide more detailed information about the payment program, but shared concerns regarding the limited funding available, which must be split between several commodities. ICA leaders reiterated the fact that there is no other safety net available for the cattle industry, and that losses have been historic.

“It is too bad that we are forced to look to the federal government to help with the huge losses that our industry is now suffering; but that is where we are,” said Bob Butcher, a cattle feeder and banker from Holstein. “This would be the first time in my career that direct payments have been made to cattlemen for financial losses. We have no LDP or ARC payments, no MFP payments or even production insurance such as Federal Crop Insurance to provide a safety net for cattle producers.”

Under Secretary Northey said he expects more details about the CFAP to be released in the coming weeks.



Hy-Vee to Limit Meat Purchases

Hy-Vee, Inc. announces that effective today it will limit meat purchases at all of its locations.

Hy-Vee Statement:  We continue to work with industry leaders so we are prepared for any possible fluctuations in product and can best serve our customers. At Hy-Vee, we have product available at our stores but due to worker shortages at plants as well as an increase in meat sales, customers may not find the specific items they are looking for. Because of this, we are going to put a limit on customer purchases in the meat department. Effective Tuesday, May 5, each customer will be limited to four packages of a combination of fresh beef, ground beef, pork and chicken when they checkout at all Hy-Vee locations.



Farm Service Agency Highlights 2020 Spring Crop Acreage Reporting Process

USDA’s Farm Service Agency (FSA) offices in Nebraska currently are open to phone and virtual appointments only but can still work with producers on timely filing crop acreage reports. FSA staff can provide assistance over the phone, by email and through virtual meetings via a software program called Microsoft Teams.

The deadline for acreage certification is July 15, 2020. This includes common spring-planted crops, such as corn, soybeans, and grain sorghum, but also includes Conservation Reserve Program acres and perennial grass.

“In order to comply with FSA program eligibility requirements, all producers must file an accurate crop acreage report by the deadline,” said Nancy Johner, Nebraska FSA State Executive Director. “Our FSA staff still is able to assist producers in completing acreage reports, including providing maps.”

Johner said certification plans may vary by county office, but in general customers can assist FSA by:
-    Paying close attention to email or mail from their County FSA office that outlines the process put in place for 2020 spring certification, and then follow the requested steps; and
-    Keeping good records of what is planted, where it is planted and when it was planted, and then ensuring the transfer of that information to FSA using the process outlined by their county office, as soon as possible following the completion of planting.

FSA offices are using Microsoft Teams software to virtually meet with producers to review maps and documents for certification. Producers who want to schedule a virtual appointment would download the Microsoft Teams app on their smart phone and call the FSA county office for an appointment. Producers also can use Microsoft Teams from their personal computer without downloading software.

“Producers will be able to work with their county office on available options for completing the certification process,” Johner said.

After completed maps and all acreage reporting information is received, FSA will make the certification updates and then contact the producer to acquire signatures on the completed Report of Acreage form (FSA-578).

The following exceptions apply to acreage reporting dates:
-    If the crop has not been planted by the acreage reporting date, then the acreage must be reported no later than 15 calendar days after planting is completed.
-    If a producer acquires additional acreage after the acreage reporting date, then the acreage must be reported no later than 30 calendar days after purchase or acquiring the lease. Appropriate documentation must be provided to the county office.

Producers should also report crop acreage they intended to plant, but due to natural disaster, were unable to plant. Prevented planting acreage must be reported on form CCC-576, Notice of Loss, no later than 15 calendar days after the final planting date as established by FSA and USDA’s Risk Management Agency.

Noninsured Crop Disaster Assistance Program (NAP) policy holders should note that the acreage reporting date for NAP-covered crops is the earlier of the dates listed above or 15 calendar days before grazing or harvesting of the crop begins.

For questions, please contact your county FSA office. To locate your county FSA office visit farmers.gov/service-center-locator.

USDA Service Centers are open for business by phone appointment only and field work will continue with appropriate social distancing. While program delivery staff will continue to come into the office, they will be working with producers by phone and using online tools whenever possible. All Service Center visitors wishing to conduct business with the FSA, Natural Resources Conservation Service, or any other Service Center agency are required to call their Service Center to schedule a phone appointment. More information can be found at farmers.gov/coronavirus or www.fsa.usda.gov/ne.



Tips for In-season Nitrogen Management in Corn
Charles Wortmann - NE Extension Soil and Nutrient Management Specialist

For much of Nebraska, spring precipitation has been slightly below normal, providing some of the best field conditions for pre-plant fertilizer nitrogen applications in recent years. Great weather is appreciated, but there are still considerations that justify shifting more nitrogen application to in-season versus pre-plant.

One concern is N loss when fertilizer-N was not incorporated. Fertilizers containing urea (such as dry urea and liquid UAN) need to be either injected, incorporated into the soil, or have a ½” of precipitation or irrigation to move them into the soil to stop ammonia volatilization. While urease inhibitors can help provide protection against volatilization, water is eventually needed to stop loss for surface-applied N.

You may wonder how much ammonia volatilization loss can occur with surface-applied fertilizer-N? Unfortunately, N loss through ammonia volatilization is difficult to predict or easily quantify, but it is greater with the following conditions: high soil pH, low cation exchange capacity, more surface crop residues, wet soil, insufficient rainfall, high temperature, and higher N rates.

In addition to volatilization, N loss may also occur due to leaching of nitrate with heavy precipitation and denitrification with soil water-logging, which may have localized occurrence this spring. Another disadvantage of applying all N pre-plant is that we can’t adjust for differences in actual nitrogen availability. For instance, actual N availability may be less than expected if the release of manure N is lower than expected or if uptake of N by a cover crop and N immobilization by cover crop residue is more than expected.

To account for this variability and reduce N losses, consider applying more of your fertilizer-N in season. The amount of fertilizer-N to be applied in-season can be estimated with the Late Spring Soil Nitrate Test (LSNT, also called the Pre-sidedress Soil Nitrate Test or PSNT) or by use of crop canopy reflectance sensing.  Read more on this here... https://cropwatch.unl.edu/2020/tips-season-nitrogen-management-corn. 



2020-2021 Nebraska FFA State Officer Announcement
NE FFA Foundation newsletter

Join us for a Facebook Live watch party! Tune in this Thursday, May 7 at 3:30 pm cst to for a Facebook Live announcing the 2020-21 Nebraska FFA State Officer Team.  Click here to go to our Facebook page and join the watch party on Thursday... https://t.e2ma.net/click/xnujic/dodbypc/d80yjj.

2020-2021 Celebrate Nebraska FFA Days
Next up, mark your calendars for May 21-21. The Nebraska FFA Association will be celebrating virtual Celebrate Nebraska FFA Days. This is an effort to hold a virtual state convention and all awards and recognition from convention will be announced, state officers will deliver their retiring addresses, sponsors will be recognized, as well as State FFA Degree recipients and other student recognition. Be watching for specific links and times.



Nebraska Extension dean and director announces retirement

Nebraska Extension Dean and Director Chuck Hibberd, a Lexington native who fostered a spirit of innovation and collaboration within the organization, will retire on June 30.

Hibberd spent seven years at the helm of Nebraska Extension. Under his leadership, Nebraska Extension, housed within the Institute of Agriculture and Natural Resources at the University of Nebraska-Lincoln, has moved toward a new way of thinking about the role of Extension, one that’s less about providing answers to questions and more about working with farmers, ranchers, community leaders and families to learn from each other and solve problems together.

“There is so much indigenous knowledge in Nebraska,” Hibberd said. We’re not going to solve the most vexing problems in this state if we don’t gather information from all sources and use that collective knowledge to create robust solutions.”

Hibberd’s professional path started at the University of Nebraska-Lincoln, where he received his bachelor’s degree in animal science. It was his fourth major, but the first one that stuck, thanks in large part to a professor who helped him figure out how to make the courses from his first three majors count toward an animal science degree. That same professor, Merlyn Nielsen, also encouraged him to attend graduate school.

Hibberd received his master’s and doctorate degrees from Oklahoma State University, and upon graduation, he joined the faculty there. His expertise was in beef cattle nutrition and management, and he quickly became involved in Extension programs across Oklahoma, sharing his own research of how beef cows might benefit from various nutritional and management strategies. Hibberd holds two patents from his work at Oklahoma State University.

Hibberd loved the teaching opportunities Extension provided and the opportunity to work with producers and allied industry partners. He also quickly came to love teaching students, eventually chairing a university-wide committee on first-year student success and winning the top teaching award at OSU for his work.

He worked at Oklahoma for 12 years then moved with his family to Scottsbluff to lead the Panhandle Research and Education Center. Among the most memorable projects Hibberd worked on was positioning western Nebraska as a hotbed for the production of chicory, which can be roasted, ground, and combined with or used in place of coffee. Panhandle Research and Education Center faculty and staff, local business leaders, and community members all worked together to start a chicory processing plant in Scottsbluff that kicked off a local chicory industry.

“The community helped fund that project,” Hibberd said. “We couldn’t have done it without them, and they couldn’t have done it without us, a great example of a public/private partnership that worked.”

After nearly 13 years in Scottsbluff, Hibberd moved with his family to Indiana, where he became the director for Purdue Extension. Five years later, when the Extension dean and director position opened at UNL, he returned to his home state, drawn by Nebraska Extension’s reputation for excellence and creativity.

“I didn’t come back to Nebraska because I’m from Nebraska,” Hibberd said. “I didn’t come back because I wanted to work for the University of Nebraska. I came back because I really thought that Nebraska Extension was in a place to continue to grow and evolve in ways that would be fun and exciting and valuable for Nebraskans.”

Over the seven-plus years Hibberd has served as dean and director of Nebraska Extension, he has found that to be true.

During his tenure at UNL, more than 100 Extension professionals at all 83 county offices responded to the worst natural disaster in recent Nebraska history during the floods and blizzard in March of 2019. Immediately, Extension professionals jumped to action to coordinate volunteers from across the state and country who came to help, to assist producers with myriad issues related to livestock, crops and equipment, and to help homeowners and neighborhoods deal with flood water. A year later, Hibberd fostered Nebraska Extension’s efforts to provide resources to producers dealing with market disruptions, parents trying to balance working with suddenly homeschooling their children, rural Nebraskans struggling with their mental health and more during the state’s response to COVID-19.

Nebraska’s 4-H program, which has always been strong, has grown to 142,000 participants statewide — that’s one in three Nebraska youth between the ages of 8 and 18, including over 40,000 4-Hers in Omaha and Lincoln. It’s the highest participation rate in the country.

And Nebraska Extension has shifted to a new model of service. The Extension professionals across the state have continued to serve local producers, communities, businesses and families. But they also work in interdisciplinary teams designed to take on statewide issues important to Nebraskans, such as integrated crop and livestock systems, irrigation efficiency, food access and early childhood development. 

“Nebraska has a strong tradition of excellence in Extension, and under Chuck’s leadership, Extension has become even stronger and better equipped to serve all Nebraskans,” said Mike Boehm, University of Nebraska vice president and Harlan Vice Chancellor for the Institute of Agriculture and Natural Resources at UNL. “He is strategic, extremely collaborative and he has empowered Extension professionals all across Nebraska to deepen their relationships with community leaders, producers, gardeners, parents, educators and many others across the state. His commitment to county-based partnering and his impacts across Nebraska and beyond will be felt for years to come.”

Dave Varner, associate dean and director of Nebraska Extension, will serve as interim dean and director until a permanent replacement is found via a national search.

Varner began his extension career with a college internship in 1986. Since then, he has served as an Extension assistant, educator, associate district director, and held interim director positions at the Southeast Research and Extension Center and the Eastern Nebraska Research and Extension Center, both located near Mead. He also has co-led the Nebraska Extension disaster response and recovery team. He has served as associate dean and director since January 2017.

“Extension professionals care so deeply about the well-being of Nebraskans and make a difference in the lives of Nebraskans every day,” Varner said. “Nebraska extension is deeply committed to the residents of our state and always ready for the next challenge. That’s what I love about the organization.”

In his retirement, Hibberd plans to stay involved with UNL as a volunteer, and to spend time with his family, including 16-month-old twin grandchildren. Beyond that, he said, he plans to continue to learn and teach, as he has his entire life.

And he’ll continue to draw inspiration from his experiences in Nebraska.

“I’ve never seen a place where people get stuff done like they do here. And that spirit of accomplishment is delivered in ways that aren’t just valuable for them, but they’re truly valuable for other people, their communities and their state,” Hibberd said. “That spirit of can-do, that spirit of generosity…I think that’s pretty unique to Nebraska, and that’s why it’s been really special not only to grow up here, but also to finish my career in this amazing place.”



Virtual Field Scouting Basics Workshop Is May 14

Iowa State University Extension and Outreach will offer a virtual Field Scouting Basics Workshop on Thursday, May 14. Due to restrictions as a result of the COVID-19 pandemic, the workshop will be offered as a free webinar. Designed for beginner-level crop scouts, as well as those looking to receive a refresher course on crop scouting principles, this workshop will illustrate the importance of crop scouting, pest management and methods for making successful decisions and evaluations in the field. The webinar will run from 9 a.m. to 3 p.m., and will be broken down into two sessions: 9-11 a.m. and 1-3 p.m.

“While COVID-19 has shut down many facets of our daily lives and routines, farming in Iowa and the North Central region is a critical component to not only the state’s economy, but the global food supply,” said Warren Pierson, program specialist with ISU Extension and Outreach. “Though we here at FEEL would prefer to continue offering a unique, hands-on learning environment for patrons, we know that farmers, certified crop advisers, crop scouts and other agricultural professionals will need to have the proper training in order to complete their jobs and tasks. Crop scouts are often the first to find issues in fields and their reports help drive important pest management decisions.”

FEEL is the Field Extension Education Laboratory, an interactive agricultural demonstration lab.

ISU Extension and Outreach specialists and field agronomists will provide instruction on crop staging and development, and weed, insect and crop disease identification in Iowa corn and soybean production. Participants will also learn principles of integrated pest management and an overview of basic field scouting skills including sample collection, observation and documentation. During the webinar participants may submit questions online, which will be answered by the team of specialists as time allows.

The Field Scouting Basics Workshop presentation topics and instructors include:
    Crop scouting tips and tricks – Angie Rieck-Hinz, extension field agronomist.
    Corn and soybean growth and development – Mark Licht, extension cropping systems specialist.
    Weed identification – Bob Hartzler, extension weed specialist.
    Crop plant disease identification – Ed Zaworski, diagnostician, Plant and Insect Diagnostic Clinic.
    Insect pest identification – Erin Hodgson, extension entomologist.

This free webinar will be offered through Webex. After registering for the workshop participants will receive an email with instructions and a link for joining the meeting. Participants may join through their web browser, a free downloadable app or via app available for their mobile device. Additional instructions and registration are available at www.aep.iastate.edu/scout. Pre-registration is required and will be available until the webinar begins. Participants should join the webinar at least 15 minutes in advance to ensure connections and software are working correctly.

For additional information or assistance with registration please visit http://www.aep.iastate.edu/scout.



Iowa Farmers, Landowners Should Apply Now for Cost Share Funding to Implement Water Quality Practices

Iowa Secretary of Agriculture Mike Naig announced that farmers and landowners can now sign up for cost share funds through the Water Quality Initiative. The funds can be used to help install conservation practices that improve soil health and water quality, including cover crops, no-till/strip-till practices or a nitrification inhibitor.

“During these unprecedented times when so many aspects of our lives have been disrupted by COVID-19, the conservation work has continued. There are more farmers and landowners engaged than ever before,” said Secretary Naig. “If you’ve never tried cover crops or conservation tillage, now is the time to get started. The state’s cost share program will cover some of the initial costs, and we have local technical resources to help you integrate conservation practices into your farm.”

Farmers who are planting cover crops for the first time are eligible for $25 per acre through the cost share fund. Farmers who have already experienced the benefits of using cover crops and are continuing the practice can receive $15 per acre. Growers using no-till or strip-till for the first time to reduce soil erosion and input costs are eligible for $10 per acre. Farmers who use a nitrapyrin nitrification inhibitor to apply fall fertilizer are eligible for $3 per acre through the cost-share fund.

Cost-share funding through the Iowa Department of Agriculture and Land Stewardship is limited to 160 acres per farmer or landowner. The funds will be made available in July, but farmers can start submitting applications immediately through their local Soil and Water Conservation District offices.

Farmers are encouraged to call their local Soil and Water Conservation District offices to inquire about additional cost-share available through other sources.

Last fall, 2,900 farmers and landowners participated in the cost-share program, including 1,200 farmers using the conservation practice for the first time and more than 1,700 farmers continuing the use of conservation practices. An estimated $10.2 million of private funding was invested to match the $6.1 million contributed by the state’s cost-share fund. To learn more about the state’s Water Quality Initiative, visit cleanwateriowa.org.



Beef Production and Imports
Brenda Boetel, Dept of Ag Economics, University of Wisconsin - River Falls

On April 28, 2020 President Trump invoked the Defense Protection Act to classify meat plants as essential infrastructure that must remain open. This act does not mean that slaughter and fabrication will return to pre-COVID 19 levels in the short term as plants have had to slow production due to worker absenteeism as well as greater distancing between employees on the line. For the week ending May 2, slaughter is estimated at 425,000 head, down 8.6% from a week earlier and 36.8% from the same period in 2019. Similar to cattle slaughter, beef production is down an estimated 8.3% from the week ending April 11, 2020 and 22.8% from the same period in 2019.

Meanwhile, total commitment for beef exports totaled 426,673 metric tons, up 7.6% over the same period in 2019 and total fresh and processed beef imports are up just shy of 1% for the first quarter. There has been discussion between the differences in beef produced and packaged for food service compared to retail grocery, and this same principle applies to export beef. Closing off or limiting beef exports does not necessarily mean greater amounts of beef in US retail grocery stores, nor does limiting imports mean greater cattle prices. The reason is because beef exported is not the same beef imported. Even with beef production down, the importance of keep export markets (and import markets) open is vital to the long-term health of the cattle industry.

The US is the only country able to supply large volumes of high-quality finished beef. This ability is due to the millions of acres of highly productive cropland and large expanses of grasslands, as well as the marketing system developed to finish cattle on grain. The US cattle industry cannot produce, in a cost-effective manner, all the types of beef demanded by the US consumer. In the past weeks, the market has seen the price effect of the switch from food service to greater quantities of retail grocery beef demand on primal beef cuts. Loin wholesale prices have increased 20% since middle of March, whereas Chuck wholesale prices have increased 55% since that same time period. The increase is partly due to the use of chuck for ground chuck sold at retail grocery stores. 

Ground beef in the US typically is a combination of two different products: 50% lean trimmings from grain fed cattle and 90% lean trimmings from grass fed cattle or cull cows. These two products are blended together to provide lean ground beef options for restaurants and retail grocery stores. Without these lean ground beef options, many consumers would likely turn to other leaner protein products.

Some producers believe that imports should be limited given the current cattle market and the high demand for beef at the grocery store. Without beef imports however, there would be less 90% trimmings and higher-valued cuts would need to be added to the 50% lean trimmings to produce lean ground beef. Without adequate 90% lean trimmings, the higher-valued beef would need to be ground and added to the 50% trimmings to produce lean ground beef. Given that this higher-valued beef can be exported for a greater price and then lean beef is imported at a lower price, the overall value for beef is greater and the cattle producer benefits from higher beef exports.

Regardless of the value of the exports to the producer, stopping imports and exports will not necessarily equate to greater quantity at the retail grocery store. Seasonally, imports increase between February and June, when the number of cull cows and grass-fed beef is lowest. Additionally, the US typically imports a greater quantity of beef than it exports. Limiting trade will not only reduce the availability of beef in the US, but lower the price for finished cattle.



USDA Dairy Products March 2020 Production Highlights

Total cheese output (excluding cottage cheese) was 1.12 billion pounds, 0.2 percent above March 2019 and 9.0 percent above February 2020.  Italian type cheese production totaled 488 million pounds, 1.1 percent below March 2019 but 8.8 percent above February 2020.  American type cheese production totaled 449 million pounds, 1.4 percent above March 2019 and 7.2 percent above February 2020.  Butter production was 194 million pounds, 7.5 percent above March 2019 and 3.3 percent above February 2020.

Dry milk products (comparisons in percentage with March 2019)
Nonfat dry milk, human - 173 million pounds, up 6.7 percent.
Skim milk powder - 40.8 million pounds, down 15.4 percent.

Whey products (comparisons in percentage with March 2019)
Dry whey, total - 81.6 million pounds, up 5.4 percent.
Lactose, human and animal - 96.1 million pounds, down 15.8 percent.
Whey protein concentrate, total - 39.0 million pounds, down 7.3 percent.

Frozen products (comparisons in percentage with March 2019)
Ice cream, regular (hard) - 64.0 million gallons, down 2.9 percent.
Ice cream, lowfat (total) - 37.9 million gallons, down 10.8 percent.
Sherbet (hard) - 3.11 million gallons, down 3.7 percent.
Frozen yogurt (total) - 5.62 million gallons, down 1.3 percent.



March Sees Lower U.S. Ethanol Exports but Global Sales of U.S. DDGS Firm
Ann Lewis, Senior Analyst, Renewable Fuels Assoc.
   
U.S. ethanol exports contracted in March to 139.9 million gallons (mg), down 28% following a rally in February. However, March sales were consistent with year-ago volumes. Our top three customers trimmed purchases across the board, accounting for 90% of the differential in month-on-month exported volumes. Shipments to Brazil (37.2 mg, -34%), Canada (27.5 mg, -7%), and India (19.6 mg, -59% from the Feb. record high) represented 60% of total U.S. global sales in March. An annualized export pace of 1.94 billion gallons would be implied by prorating first quarter sales, but seasonal factors and the impact of the COVID-19 pandemic will likely result in 2020 exports being well below this level.

March shipments of U.S. undenatured fuel ethanol tamped down by 41% to 59.8 mg. Brazil cut imported volumes by a third to 37.2 mg. Nigeria (5.5 mg), the Philippines (4.6 mg, -33%), and the Netherlands (3.8 mg, -65%) were other larger markets for U.S. product.

Exports of U.S. denatured fuel ethanol in March relaxed by 17% to 65.9 mg. Shipments to chief customer Canada (accounting for 40% of exported product) declined by 8% to 26.1 mg. India cut its purchases by 44% to 15.8 mg following record imports in February. Those declines were countered by upticks in South Korea (9.1 mg, up 5%) and Colombia (8.7 mg, up 46%).

Exports of U.S. ethanol for non-fuel, non-beverage purposes grew 11% to a twelve-month high of 14.2 mg thanks to the confluence of imports by several fluctuating market participants. India (3.8 mg denatured), Nigeria (2.9 mg undenatured), and Saudi Arabia (2.3 mg undenatured) were our larger customers.

The U.S. imported 13.5 mg of cane ethanol from Brazil in March, down 40%. On an annualized basis, the pace during the first quarter of the year would equate to 144.2 mg.

U.S. exports of dried distillers grains (DDGS)—the animal feed co-product generated by dry-mill ethanol plants—expanded in March by 5% to 899,730 metric tons (mt). Mexico again secured its position as our top DDGS export market as sales perked up by 15% (190,125 mt, equivalent to roughly one-fifth of global DDGS sales). U.S. shippers doubled efforts to Vietnam with 139,674 mt in DDGS exports, up 114% and a 16-month high. DDGS sales in South Korea (127,636 mt) and Indonesia (104,261 mt) were robust though marginally unchanged from February. These four markets were responsible for 62% of global U.S. DDGS shipments, with the remainder parsed out among another 33 countries. Notably, Japan (28,776 mt, -54%), Thailand (26,551 mt, -56%), and the Philippines (17,513 mt, -30%) saw sizeable declines in demand. Worldwide Q1 2020 U.S. DDGS sales imply an annualized export volume of 10.92 million mt.



Path Cleared For U.S. Sorghum Exports To Vietnam

A new pest risk assessment has been approved by both the U.S. Department of Agriculture (USDA) and Vietnam’s Ministry of Agriculture and Rural Development (MARD), opening the door for U.S. sorghum to flow into the country for high-value uses including pet food and liquor as well as a feed product for the aquaculture, poultry and swine industries.

This opening follows nearly five years of collaborative efforts by the U.S. Grains Council (USGC), the United Sorghum Checkoff Program (USCP) and the National Sorghum Producers (NSP) and work with the U.S. Department of Agriculture’s Foreign Agricultural Service (USDA-FAS) and Animal and Plant Health Inspection Service (USDA-APHIS), as well as regulators and industry in Vietnam.

It also highlights the importance of addressing a wide range of constraints to new demand opportunities for U.S. ag products and collaboration among U.S. agriculture groups with access to specialized knowledge about the many details of commodity exports.

“We are excited to see our hard work and collaboration pay off in Vietnam,” said USGC President and CEO Ryan LeGrand. “It’s been a long time coming but is a model of how by working together with industry and government good things can happen for U.S. commodities.”

“From an initial visit in 2015 by USCP and the USGC to discover the potential for sorghum in various marketplaces, to the development of a fish feeding trial followed by the release of very positive trial results, our organizations have worked to create opportunity for U.S. sorghum in Vietnam,” said Sorghum Checkoff Executive Director Florentino Lopez. “Of course, all this work would fall short without organizations like NSP that came in along the way to help steward the approvals needed to make it official. Our persistence has paid off, creating additional market opportunity for U.S. sorghum farmers.”

Work on the pest risk assessment – which outlines how U.S. sorghum must be handled to meet regulations in Vietnam – became even more critical after a vessel of sorghum originally destined for China in April 2018 was diverted to Vietnam but couldn’t be delivered because there was no pest risk assessment protocol in place.

The biggest lift during the process was establishing documentation from the industry to pass to APHIS, which then worked with Policy and Program Development on the agreement, led by USCP and NSP. USGC and both sorghum groups, along with their members, worked with FAS in Hanoi to complete the assessment.

For years, the Council and USCP have been working in country to assess potential markets for U.S. sorghum, including feeding trials to test the viability of replacing cassava with sorghum in Pangasius, a large catfish species native to Southeast Asian diets. Annual catfish production in Vietnam alone is 2.4 million tons.

The groups also hosted a delegation from the Vietnam Ministry of Agriculture and Rural Development’s (MARD) Plant Protection Division (PPD) in February to meet with representatives from the Sorghum Checkoff, FAS, APHIS and USDA’s Federal Grain Inspection Service (FGIS). In addition to attending several meetings, the delegation visited the Port of Houston to observe grain loading and met with agribusiness representatives.

Official approval from USDA-APHIS coupled with Vietnam’s pest risk assessment approval opens the door for Vietnam’s PPD to issue import licenses when Vietnamese importers request one for sorghum.

Sorghum is attractive to Vietnamese buyers seeking to diversify their sources of energy in feed and find feed sources that store better in local climates. Sorghum is gluten-free and non-biotech, which is also attractive to niche sectors in Vietnam, including the pet food industry.

The groundwork the Council, USCP and NSP built in Southeast Asia’s aquaculture sector was a critical step in seeing this opportunity to diversify U.S. sorghum’s export markets and create a pathway for U.S. sorghum into one of the fastest growing food-producing sectors in the world.

“This is an excellent model of how organizations can work together to create opportunities for U.S. farmers,” said Tim Lust, NSP and USCP CEO. “We anticipate building lasting relationships with Vietnam end-users, and we look forward to the opportunity to help meet their feed grain needs.”

“This victory is a clear example of how working together–both in industry and in governments–can lead to winners on all sides,” LeGrand said. “Vietnam will be able to meet its country’s grain and feed demands, and U.S. sorghum farmers will have access to a market that has several different sectors as potential end users for their product.”



1,600 Global Customers Attend U.S. Soy’s Digital Conference

The U.S. Soybean Export Council (USSEC) hosted a unique two-day global digital event on April 14 and 15, 2020. A first-of-its-kind event, the U.S. Soy Connection: Global Digital Conference and Situation Report showcased that the U.S. soy industry is open for business despite the global impact of the COVID-19 virus. More than 1,600 customers and soybean industry representatives from 84 countries participated in the digital conference.

Face-to-face relationships are a hallmark of the U.S. soybean industry and USSEC and the entire U.S. Soy family are working to maintain close contact with key stakeholders through technology during this period of social distancing. Connecting virtually is a seamless and nearly effortless way of communication.

One goal of the conference was to demonstrate how the 2020 planting season is moving forward, which allowed customers to see how U.S. agriculture will continue to produce high-quality, reliable, and sustainable products for global end-users. The event helped to sustain and further grow relationships between U.S. soybean farmers and their customers around the world.

“As we continue to navigate these unprecedented times, it’s more important than ever that we demonstrate to current and potential international customers the strength of our farmers and benefits of buying U.S. Soy,” said Jim Sutter, USSEC CEO. “USSEC has quickly adapted and changed tactics so we can show customers that our entire supply chain is working to ensure a sustainably and safely produced, reliable supply of soy for global customers. Throughout the conference, we showcased that despite the global impact of coronavirus, the supply of U.S. Soy remains unwavering.”

The conference highlighted the ongoing commitment to soybean production and delivery.
U.S. soybean farmer and USSEC Chairman Monte Peterson welcomed participants to the global digital conference and highlighted commitment to soybean production and partnerships with customers.

“Spring is planting season and as farmers, we have a responsibility to continue our job no matter what obstacles we face,” said Monte Peterson, a soybean farmer from North Dakota who serves as USSEC chairman and a director for the American Soybean Association (ASA). “Farmers have always been resilient in challenging situations, and this time is no different. And because 60% of our soybean crop is exported, we depend on strong partnerships with our global customers. That is all is part of the U.S. Soy Advantage.”

During the conference, participants received practical information about the industry from industry representatives, stakeholders, and U.S. soybean farmers.
    Thomas Mielke, executive director of ISTA Mielke, shared reflections on global supply and demand in light of the pandemic.
    Emily French, managing director at ConsiliAgra, discussed the implications of black swan events on the global soy marketplace.
    A panel of four U.S. soybean farmers from various geographic regions of the U.S. provided a spring planting outlook.
    A panel of representatives from exporter companies highlighted U.S. ability to meet global export demand.

On April 14, the first day of the conference, global experts discussed soybean trends and the impact of COVID-19.

“There’s no question that its agriculture that makes the world go around,” said French of ConsiliAgra. “Global agriculture continues to do what it does best, and that is feed and nurture the world. As we move through COVID-19, the value of free and reciprocal trade has never been more evident.”

Mielke shared indicators that trade is likely to increase during 2020. He said the Chinese soybean crush has exceeded expectations for the first half of the 2019-20 crop year, and that soybean meal demand is starting to increase compared to a year ago.

“In China, imports of soybeans are recovering,” he said. “We expect China to resume purchases of U.S soybeans in the coming weeks while Brazil exports (after record shipments in March and April) will start declining from May onward.”

On April 15, the second day of the conference, U.S. farmers and exporters described how they are ready and able to meet global demand. Between 2020 planting plans and the reliability of U.S. export logistics, U.S. Soy is positioned to deliver through the COVID-19 pandemic.
U.S. soybean farmer and USSEC Vice-Chairman Doug Winter shared a photo of his farm during his update about 2020 planting intentions and managing the coronavirus.

“I think everybody’s pretty optimistic about this year as far as getting started,” said Doug Winter, a U.S. soybean farmer from Illinois who serves as vice chairman of USSEC and on the United Soybean Board (USB). “We’re pretty much entertained full-time this time of year getting equipment ready, and getting seed all lined up, and getting everything organized for the planting season. We have a plan in place in case we have an employee that would happen to be infected with the COVID-19 virus, but we’re pretty self-contained and insulated out here.”

He added that working with customers is a high priority. “The communication around marketing, the quality of crop, and learning the needs of our buyers all work together to help us as farmers support our customers and make better decisions,” he continued. “Whether meeting in person or virtually, it helps us align on a common goal to increase the effectiveness and efficiency of soy.”

Other farmers echoed Winter’s optimism and expectations to produce a quality crop in 2020.

“Disruptions can take many forms for crops such as the global crisis that we’re experiencing now,” said Soren Schroder, former CEO of Bunge Limited. “The U.S. capacity runs on all coasts with highly efficient multi-modal interior logistic systems which ensure a continuous supply. Both interior and export terminals are highly automated making them more resilient. In short, the U.S. supply chain can be relied upon like no other.”

Exporters joining Schroder on this panel reinforced that soy is moving throughout the U.S. And all companies have plans in place to protect the health and safety of their workers, as well as crisis and contingency plans should a link in the chain be disrupted.

Sutter added, “Through the current uncertainties, we are committed to continued collaboration with our customers in new ways. Working together is the key to mutual success.”



AGCO Reports First Quarter Results

AGCO, Your Agriculture Company (NYSE: AGCO), a worldwide manufacturer and distributor of agricultural equipment and solutions, reported its results for the first quarter ended March 31, 2020. “AGCO delivered solid results for the first quarter under challenging conditions,” stated Martin Richenhagen, AGCO’s Chairman, President and Chief Executive Officer. “AGCO’s current priorities are the safety of our employees and serving the world’s farmers as we do our part to minimize the impact of the COVID-19 pandemic on the world’s food supply. We are facing a very dynamic environment requiring rigorous and coordinated business planning to manage our manufacturing, supply chain and aftermarket operations, to effectively serve our dealers and end-customers as well as to maintain a productive workforce. In addition to restarting factories and ramping up production, we remain focused on maintaining parts and service support for our dealers and our customers. It is rewarding to see our employees rise to the challenge to find innovative solutions to keep our business running effectively and support farmers as they continue their important work.”

Net sales for the first quarter were approximately $1.9 billion, a decrease of approximately 3.4% compared to the first quarter of 2019. Reported net income was $0.85 per share for the first quarter of 2020 and adjusted net income, excluding restructuring expenses, was $0.86 per share. These results compare to reported net income of $0.84 per share and adjusted net income, excluding restructuring expenses, of $0.86 per share for the first quarter of 2019. Excluding unfavorable currency translation impacts of approximately 3.6%, net sales in the first quarter of 2020 increased approximately 0.2% compared to the first quarter of 2019.

First Quarter Highlights
-    Reported regional sales results(1): Europe/Middle East (“EME”) (8.0)%, North America 11.2%, South America (1.4)%, Asia/Pacific/Africa (“APA”) (17.8)%
-    Constant currency regional sales results(1)(2): EME (4.7)%, North America 11.7%, South America 13.8%, APA (13.4)%
-    Regional operating margin performance: EME 9.2%, North America 11.0%, South America (5.7)%, APA (1.2)%
-    New Term Loan - $520 million facility completed in April to provide incremental liquidity
-    Repurchases reduced outstanding shares by approximately 1.0 million in the first three months of 2020
-    Full-year outlook withdrawn on March 23rd

“Our first quarter results demonstrated strong execution as we overcame COVID-19 related production disruptions in China and Europe to expand operating margins compared to the first quarter of last year,” stated Mr. Richenhagen. “Strong performance in our North America region highlighted our results driven by improved product availability and an increase in the retail demand of our products. The Precision Planting business also produced significantly improved results over the prior year in its seasonally important first quarter. Our Europe/Middle East region results remained solid but were impacted by production interruptions late in March despite a strong order board. In April, we also added over $500 million in liquidity with the completion of a new term loan facility.”

Monday May 4 Crop Progress + Ag News

CROP PROGRESS AND CONDITION

For the week ending May 3, 2020, there were 6.2 days suitable for fieldwork, according to the USDA's National Agricultural Statistics Service. Topsoil moisture supplies rated 7 percent very short, 22 short, 69 adequate, and 2 surplus. Subsoil moisture supplies rated 4 percent very short, 13 short, 81 adequate, and 2 surplus.

Field Crops Report:
Corn planted was 61 percent, well ahead of 30 last year and 38 for the five-year average. Emerged was 9 percent, ahead of 1 last year, and near 5 average.

Soybeans planted was 32 percent, well ahead of 11 last year and 10 average.

Winter wheat condition rated 2 percent very poor, 8 poor, 23 fair, 60 good, and 7 excellent.

Sorghum planted was 7 percent, ahead of 2 last year, and near 4 average.

Oats planted was 87 percent, ahead of 69 last year, and near 84 average. Emerged was 56 percent, well ahead of 30 last year, but near 58 average.

Pasture and Range Report:
Pasture and range conditions rated 2 percent very poor, 3 poor, 24 fair, 66 good, and 5 excellent.



Iowa Crop Progress & Condition Report

There were 6.1 days suitable for field work during the week ending May 3, 2020, according to the USDA, National Agricultural Statistics Service. Warm, dry weather allowed Iowa farmers to advance planting well ahead of normal.

Topsoil moisture levels rated 3 percent very short, 16 percent short, 78 percent adequate and 3 percent surplus. Subsoil moisture levels rated 2 percent very short, 8 percent short, 85 percent adequate and 5 percent surplus.

Iowa farmers planted 39 percent of the expected corn crop during the week ending May 3. Although great progress was made, in 2015 Iowa farmers were able to plant 54 percent of their corn crop during the same week. This is the first time since 2010 that at least three-quarters of the corn crop has been in the ground by May 3.

Forty-six percent of the soybean crop has been planted, a full month ahead of last year and over two weeks ahead of the five-year average. This is the highest proportion of the soybean crop planted by May 3 since records began in 1974. Farmers were able to plant over one-third of the expected soybean crop during the week ending May 3.

Only 6 percent of Iowa’s expected oat crop remains to be planted, with 54 percent of the oat crop emerged.

Pasture condition rated 65 percent good to excellent. Pastures and hay fields are greening up. Cattle movement to pastures increased this week.



US Corn Planting Passes Halfway Mark

USDA NASS' Crop Progress report on Monday was a tale of two planting situations, with row-crop planting jumping ahead of the five-year average and spring wheat planting continuing to lag behind the normal pace.

Corn planting progress jumped ahead another 24 percentage points last week to reach 51% complete as of Sunday, May 3. That was 30 percentage points ahead of last year at the same time and 12 percentage points ahead of the five-year average of 39%.  Corn emerged was 8%, ahead of the 5% last year but slightly behind the average pace of 10%.

Soybean planting also picked up speed last week, moving ahead 15 percentage points to reach 23% complete as of Sunday. That is well ahead of 5% last year and 12 percentage points ahead of the five-year average of 11%. 

In contrast to row-crop planting, spring wheat planting continued to run well behind its average pace. Twenty-nine percent of spring wheat was planted as of Sunday, ahead of 19% last year but still 14 percentage points behind the five-year average of 43%.  Six percent of the spring wheat crop had emerged, down from the five-year average of 16%.

Winter wheat conditions stabilized after two previous weeks of dropping. NASS estimated that 55% of the nation's winter wheat was rated in good-to-excellent condition, up 1 percentage point from 54% the previous week. That followed a 3-percentage-point drop in the previous week's report. The current good-to-excellent rating is below 64% a year ago.  Winter wheat was 21% headed as of Sunday versus a five-year average of 25%.

Sorghum was 22% planted, slightly ahead of 21% last year but behind the five-year average of 26%. Oats were 67% planted, compared to 48% last year and a 67% average. Oats emergence was at 44%, compared to 35% last year and a 47% average. Barley was 41% planted, ahead of 34% last year, but well behind the five-year average of 50%.

Cotton planting was 18% complete, compared to 16% last year and a 17% average. Rice was 49% planted, ahead of 45% last year but behind the average of 64%. Rice emerged was 32%, behind the average of 45%.

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Cargill in Schuyler to Temporarily Close
Jon Nash, Cargill Protein – North America Lead

“As we continue to prioritize the health and safety of Cargill employees, we have decided to temporarily idle our Schuyler protein facility. This was a difficult decision for our team as we operate an essential service, but our values are guiding our actions. Our focus now is continuing to keep our employees safe and getting our facility back to normal operations as soon as we can.

This was a difficult decision for our team who are operating an essential service and are committed to delivering food for local families and access to markets for farmers and ranchers. We care deeply about our employees and their safety. They are everyday heroes on the front lines of our food system.

To prevent food waste, we will process nearly 8 million meals-worth of protein currently in our facility as quickly as possible. We greatly appreciate our employees who are working to complete this effort. 

While this location is idled and we adapt to operating during a pandemic, our work doesn’t stop. Cargill provides an essential service to the world—providing the ingredients, feed and food that nourishes people and animals. We are working with farmers and ranchers, our customers and our employees to supply food in this time of crisis and keep markets moving.”

Background details:
Cargill’s Schuyler, Neb., protein facility will begin the process to temporarily idle effective May 4. We are taking this step out of an abundance of caution and consistent with our commitment to prioritizing employee health as our local workforce deals with the community-wide impacts of COVID-19. As we work in partnership with the union, our employees will be paid the 36 hours per week as outlined in our collective agreement.

Cargill is encouraging employees to be tested. We have also stressed the importance of social distancing for those across the community who have been impacted by the virus. We have encouraged any employees who are sick or have been with anyone with COVID-19 in the last 14 days to stay home. While operational, Cargill offered up to 80 hours of additional paid leave related to COVID-19.

We are working closely with local departments of health and medical officials to ensure appropriate prevention, testing, cleaning and quarantine protocols are followed within our facilities. For several weeks, we have taken extra steps to focus on safety and remain at normal operations – including temporary wage increases and bonuses for our employees who are on the front lines of the food system. Over the past two months, we have also implemented additional safety measures like temperature testing, enhanced cleaning and sanitizing, face coverings, screening between employee stations, prohibiting visitors, adopting social distancing practices where possible and offering staggered breaks and shift flexibility. These measures will remain in place when we resume full operation.

As we prioritize the health of our workers and collaborate with health officials, we are tentatively working toward the week of May 18 to resume operation.



Tyson Shutters Pork Processing Plant in Madison, Nebraska

Tyson Foods is suspending operations at its pork packing plant in Madison, Neb., the company announced Monday. The northeast Nebraska plant was running at a reduced capacity on Friday and Saturday while testing its workforce for COVID-19.

The plant is working with a third-party medical contractor to test all team members at the Madison plant. In the meantime, staff are performing a deep clean and sanitization of the facility during its closure. The plant will be working with the Nebraska National Guard, and state and county health officials to make sure the plant meets or exceeds state and national guidelines.

The Madison pork plant harvests 8,000 pigs a day and produces 10.6 million pounds of pork every week. The plant covers employs about 1,200 people.



Lincoln Premium Poultry Mournes Loss of Employee

Lincoln Premium Poultry shared that they learned today of the passing of an employee due an underlying health condition that was made worse by COVID-19. “We are heartbroken to learn that we lost a team member and are working to assist the family as they sort through the next steps,” said Jessica Kolterman, Director of Corporate and External Affairs.  The employee had not been at work since April 17, 2020 after asking to self-quarantine due to an underlying health issue.  “The company honored the request and only learned last week on Thursday that the employee had been diagnosed with the virus,” said Kolterman, “Our thoughts and prayers are with the family during this difficult time and we ask that the press respects their privacy as they mourn the loss, as well as the privacy of LPP team members who have lost a colleague.”

Since reporting to the public one week ago, Lincoln Premium Poultry reported an additional 13 additional cases of COVID-19 over the past week, which brings the company total to 28 cases. As of today the company has also registered 39 negative cases among employees.

“The reality is that the virus is throughout our communities, which is why it is so important to social distance at home as well as at our facilities.” said Kolterman, “Regardless, we will continue to work diligently to protect our team members in every way we can.”

Lincoln Premium Poultry has provided the opportunity for individuals over 65 to self-isolate at home, with pay.  Individuals who test positive as well as individuals with known direct contact with a person who has tested positive are also self-isolating at home with pay.  “We are excited to share that 4 team members have recovered and have returned to work.” said Kolterman.

Lincoln Premium Poultry has implemented additional protection measures recommended by UNMC, including additional screening, strict mandatory use of masks, and additional deep cleaning.  The company had previously limited visitors to the facility, stopped food service and installed dividers on tables, provided further space between workers, implemented nightly intense cleaning interventions, is taking the temperature of all entering their facilities and had provided masks to their workforce.  They have also provided a $2/hour increase to all hourly workers, which began in March, and are regularly providing chicken for their team members.  This virus is not foodborne and cannot be transmitted through food or potable water.

“With the amount of testing we have been doing, we knew the numbers would be significant this week,” said Kolterman, “Our goal has been to slow the spread of the virus, and in that goal, I believe we are succeeding.  We have not seen dramatic spikes in cases – they have come in through a slow and steady trickle.  This speaks well of the protections we have put in place and but we will continue to be vigilant in those efforts.”

Kolterman praised the LPP team, “Words cannot express how proud we are of the team at Lincoln Premium Poultry.  In spite of this challenge, they have continued producing at our projected production levels and have continued to provide product to Costco Warehouses here in Nebraska and across the western part of this country.  As fewer products are available, LPP’s team has demonstrated great commitment to providing food for our country.”



Joint Statement in Support of Nebraska Workers, Farmers and Ranchers

Nebraska Democartic Party and union leaders on Monday voiced support for farmers, ranchers and workers, calling upon elected officials to help create consistent protocols and enforcement measures to keep the food supply chain working during the coronavirus pandemic.

The impacts of Covid-19 on agriculture -- from family farmers and ranchers to workers in the fields and packing plants -- are far-reaching and serious. Our state must ensure family farmers, ranchers and workers are kept safe and healthy while providing the essential work of keeping the food chain supply strong.

We acknowledge the work already being done including House Agriculture Committee Chairman Collin Peterson (D-MN) who recently created a task force to come up with standards and protocols to keep the food chain working at all levels -- from food source, to meatpacking plants and to the grocery stores. Additionally, H.R. 6559, the COVID-19 Every Worker Protection Act of 2020, will assist in creating standards to protect workers. The Heartland Workers Center issued a set of best practices for meatpacking plants at the urging of Senator Tony Vargas. Nebraska Appleseed, ACLU and the Farmers Union have long advocated for policies to keep workers safe and level the playing field for family farmers and ranchers. And more recently, the UNMC and Ag Health Central State’s playbook and checklist to keep workers safe.

As leaders in Nebraska, we urge Governor Ricketts to not let this be a plant-by-plant response. Common baseline health and safety protocols, with an enforcement mechanism in place, need to be established immediately for all meatpacking plants across Nebraska.

Baseline protocols should include items below with a clear enforcement mechanism in place:

--Testing for all workers who show symptoms and who come in contact with individuals who are confirmed with the Covid-19.

--Universal personal protective gear provided (masks, gloves, plexiglass between workers, etc.)--at no cost for the workers--while on the floor and for when they enter and leave the workplace. The gear must be high-quality and allow them to still conduct the core functions of their jobs.

--Slowing down the line speed to allow for safe distance in the job areas where this is possible.

--If a worker is impacted with the Covid-19 on the job, sick leave should be fully paid for by the government or business rather than individuals banked PTO impacted. In short, guaranteed paid sick leave.

--American family farmers and ranchers should be given priority for their product to be purchased for meat packing plants at a fair price including the government and corporations stepping in to assist with transportation of the products to the plants.

 

Weed Control in Alfalfa Post Green-Up
Ben Beckman - Extension Educator
Megan Taylor - Extension Educator

Winter Annuals in Alfalfa
Plants like henbit, pennycress, shepherd’s purse, mustard, annual bluegrass, and cheatgrass are often a problem that seem to magically appear in alfalfa stands every spring. These winter annuals germinate in the fall and then go dormant over the winter. This gives them a head start in the spring, when they begin growing quickly as temperatures warm. This fast growth allows them to use nutrients and moisture before other plants have started to grow, and quickly mature and set seed. Scouting in early spring is the best way to categorize current weed problems and those that may become issues later in the season and into the following year. 

In established stands, we first must decide if weed pressure is worth the cost of an herbicide treatment. For the first cutting, winter annuals can lower quality and palatability. If dairy quality hay is the goal, then cost of the treatment will likely be worth the expense. If hay will be fed to dry cows in the winter, the treatment costs may not be worth the benefit.

Roundup Ready® Alfalfa
Roundup Ready® Alfalfa varieties have made herbicide treatment of challenging weeds much easier, especially in fields with actively growing alfalfa. However, as with any herbicide application, target plant size is important. Label guidelines recommend treatment of weeds before they exceed 4” in height. Additionally, it is important to make applications before the alfalfa canopy begins interfering with spray pattern and distribution of product. Also note that not all glyphosate products may be labeled for use in alfalfa.

Post Control Options for Conventional Alfalfa
For newly seeded alfalfa stands mowing can be good a control option for broadleaf weeds. Increasing the height when mowing can be a good strategy as well. This can slow the growth of broadleaf weeds, while allowing the alfalfa seedlings to re-grow with reduced weed competition. Chemical control is also an option for broadleaf and grassy weeds in both newly seeded and established stands. 

Pursuit® and Raptor® are two good post-emergent options that tend to cause less alfalfa injury and may be a better options for fields with growing alfalfa plants. Pursuit® and Raptor® are both Group 2 herbicides that can be used on established or seedling alfalfa. Pursuit® should be applied for seedling alfalfa at the 2nd trifoliate stage and when there is less than 3” of growth in established alfalfa. Raptor® should be applied when the weeds are less than 2” tall, seedling alfalfa is at the 2nd trifoliate stage and established alfalfa has less than 3” of growth. There is a 30-day feed, grazing, and harvest restriction following the application of Pursuit®. Pursuit® in particular can provide residual control for several weeks post application. These are more expensive options, but can provide control of particularly challenging weed problems.

Prowl H2O® is another product that can be used on seedling and established alfalfa as a post-emergent application. Applications can be made up to the 2nd trifoliate stage for seedling alfalfa whereas established alfalfa application can take place before the alfalfa is 6” tall. This product has a 28-day harvest restriction for applications under 4 pints of product and a 50-day restriction for anything over 4 pints of product. This product is listed as a post-emergence product, but best control is seen when applied before emergence of troublesome weeds.

In established alfalfa stands AIM® and Chateau® Herbicide SW are other options that could be used for post-emergent control only in established stands. AIM® can be used in-between cuttings up to 3” of growth, with a pre-harvest interval of 21 days. Chateau® Herbicide SW application can take place before the alfalfa is 6” tall, application after this timing could lead to damage on trifoliate. This product is not intended for alfalfa grass mixtures and do not apply this product within 25 days of planting or grazing.

For the control of downy bromegrass and annual bluegrass, Arrow® or Select Max® can be used as a post-emergent application in seedling and established alfalfa. Both products can be applied to control grassy weeds between 2 to 6” with a 15-day restriction on feeding, grazing, or harvest following application of either Arrow® or Select Max®. Always read and follow label instructions, specifically for feeding/grazing/harvest restrictions.



Big Blue River Compact Virtual Meeting to Be Held May 13

The 47th annual meeting of the Kansas–Nebraska Big Blue River Compact Administration will be held using internet meeting services on Wednesday, May 13, 2020, at 9:30 a.m. Anyone interested in water-related activities within the Big Blue and Little Blue River Basins in Kansas and Nebraska is encouraged to participate in the meeting.

The meeting will also be live-streamed and will remain available online for later viewing. Attendees who wish to interact with the Administration during the meeting should join the virtual meeting. Attendees who do not plan to interact with the Administration are encouraged to join the livestream. Links to both the virtual meeting and the livestream are posted on the KDA website at: agriculture.ks.gov/bbrc.

The Kansas–Nebraska Big Blue River Compact was entered into in 1971. The purpose of the compact is to promote interstate comity, to achieve equitable apportionment of the waters of the Big Blue River Basin and promote the orderly development thereof, and to encourage an active pollution abatement program in each state.

The Compact Administration is composed of a federally appointed Compact Chairman, currently W. Don Nelson of Lincoln, Nebraska; two state appointed representatives: Chris Beightel of the Kansas Department of Agriculture–Division of Water Resources and Jesse Bradley of the Nebraska Department of Natural Resources; and two citizen representatives: Sharon Schwartz of Washington, Kansas, and Larry Moore of Aurora, Nebraska.

To participate in the virtual meeting, or with other questions about the annual meeting, please contact Chris Beightel, acting chief engineer at KDA–DWR, at 785-564-6670 or Chris.Beightel@ks.gov. Additional information about the Big Blue River Compact and the annual meeting can be found on the KDA website at agriculture.ks.gov/bbrc.



Koontz Sends Letter On How Marketing Mandates May Negatively Impact Cattle Industry

National Cattlemen’s Beef Association (NCBA) President-Elect Jerry Bohn, today released the following statement in response to a letter from Dr. Stephen R. Koontz of Colorado State University providing additional context and clarity regarding his work on cattle markets and the use of that research in conjunction with the 30-14 proposal for mandated cash trade for live cattle:

"NCBA has been working closely with Dr. Stephen R. Koontz to develop solutions that address our concerns with the decline in negotiated cash markets and lack of price discovery. Recently there have been calls for marketing mandates with Dr. Koontz's research being used to support those proposals," said Bohn. "In response to our inquiries regarding his research on this topic, Dr. Koontz released the attached letter to correct the record and clarify his positions and findings on this topic.

"NCBA is committed to finding an industry-led solution, backed by current research and data, to increase the amount of negotiated cash trade in the industry. NCBA's Live Cattle Marketing Committee Working Group has been hard at work crafting industry-led solutions on the best methods to increase cash market activity without causing financial harm to the industry."

Background
The 30-14 policy proposal refers to beef packing companies being required by the government to purchase at least 30% of individual plant fed cattle needs in the negotiated cash market and that those purchases would be delivered to the plant within 14 days.



NMPF Appreciates USDA Dairy Purchases, Looks Forward to Additional Buys

The National Milk Producers Federation expressed appreciation to Agriculture Secretary Sonny Perdue and the U.S. Department of Agriculture for including $120 million of cheese and butter among $470 million in Section 32 food purchases it announced today. The purchases are scheduled to occur in the next two months and are in addition to purchases previously announced in the CARES Act funding.

“These Section 32 purchases will help both Americans who need high-quality nutritious food as well as U.S. dairy farmers who are experiencing unprecedented losses from the COVID-19 national emergency,” said Jim Mulhern, president and CEO of NMPF, the largest U.S. dairy-farmer organization. “The purchases will provide important and needed support to the dairy supply chain. We look forward to learning more details and to continue working with USDA on possible additional purchases.”



SBA to Make Economic Injury Disaster Loans Available to U.S. Agricultural Businesses Impacted by COVID-19 Pandemic

U.S. Small Business Administration Administrator Jovita Carranza announced today that agricultural businesses are now eligible for SBA’s Economic Injury Disaster Loan (EIDL) and EIDL Advance programs. SBA’s EIDL portal will reopen today as a result of funding authorized by Congress through the Paycheck Protection Program and Healthcare Enhancement Act. The legislation, signed into law by the President one week ago, provided additional funding for farmers and ranchers and certain other agricultural businesses affected by the Coronavirus (COVID-19) pandemic.

“For more than 30 years, SBA has been prohibited by law from providing disaster assistance to agricultural businesses; however, as a result of the unprecedented legislation enacted by President Trump, American farmers, ranchers and other agricultural businesses will now have access to emergency working capital,” said Administrator Carranza. “These low-interest, long-term loans will help keep agricultural businesses viable while bringing stability to the nation’s vitally important food supply chains.”

Agricultural businesses include businesses engaged in the legal production of food and fiber, ranching, and raising of livestock, aquaculture, and all other farming and agricultural related industries (as defined by section 18(b) of the Small Business Act (15 U.S.C. 647(b)). Eligible agricultural businesses must have 500 or fewer employees.

The SBA will begin accepting new EIDL applications on a limited basis only, in order to provide unprecedented relief to U.S. agricultural businesses. For agricultural businesses that submitted an EIDL loan application through the streamlined application portal prior to the legislative change, SBA will move forward and process these applications without the need for re-applying. All other EIDL loan applications that were submitted before the portal stopped accepting new applications on April 15 will be processed on a first-in, first-out basis.

For more information, please visit: www.sba.gov/Disaster.



Secretary Perdue Statement on Economic Injury Disaster Loans Being Available to U.S. Agricultural Businesses Impacted by COVID-19 Pandemic

U.S. Department of Agriculture Secretary Sonny Perdue today applauded the announcement that agricultural producers, for the first time, are now eligible for the Small Business Administration (SBA)’s Economic Injury Disaster Loan (EIDL) and EIDL Advance programs.

“America’s farmers, ranchers, and producers need the same help that other American businesses need during this unprecedented time,” said Secretary Perdue. “This significant new authority signed by President Trump will make a tremendous difference for America’s agricultural community.”

SBA’s EIDL portal has been closed since April 15. However, the Agency is able to reopen the portal today, in a limited capacity, as a result of funding authorized by Congress through the Paycheck Protection Program and Healthcare Enhancement Act. The legislation, which was signed into law by the President one week ago, provided additional critical funding for farmers and ranchers affected by the Coronavirus (COVID-19) pandemic.

In order to help facilitate this important change to EIDL Loan and EIDL Advance assistance eligibility, SBA is re-opening the Loan and Advance application portal to agricultural enterprises only. For agricultural producers that submitted an EIDL loan application through the streamlined application portal prior to the legislative change, SBA will move forward and process these applications without the need for re-applying. All other EIDL loan applications that were submitted prior to April 15 will be processed on a first-in, first-out basis.



USDA Announces $100 million for American Biofuels Infrastructure

U.S. Secretary of Agriculture Sonny Perdue announced the U.S. Department of Agriculture intends to make available up to $100 million in competitive grants for activities designed to expand the availability and sale of renewable fuels.

“America’s energy independence is critical to our economic security, and President Trump fully recognizes the importance of our ethanol and biofuels industries and the positive impacts they deliver to consumers and farmers with an affordable, abundant, and clean burning fuel,” Secretary Perdue said. “American ethanol and biofuel producers have been affected by decreased energy demands due to the coronavirus, and these grants to expand their availability will help increase their use during our economic resurgence.”

The Higher Blends Infrastructure Incentive Program (HBIIP) consist of up to $100 million in funding for competitive grants or sales incentives to eligible entities for activities designed to expand the sales and use of ethanol and biodiesel fuels. Funds will be made directly available to assist transportation fueling and biodiesel distribution facilities with converting to higher ethanol and biodiesel blends by sharing the costs related to and/or offering sales incentives for the installation of fuel pumps, related equipment, and infrastructure.

Additional Information:
USDA is making the grants available under the Higher Blends Infrastructure Incentive Program (HBIIP). The program is intended to increase significantly the sale and use of higher blends of ethanol and biodiesel by expanding the infrastructure for renewable fuels derived from U.S. agricultural products.

Grants for up to 50 percent of total eligible project costs, but not more than $5 million, are available to vehicle fueling facilities, including, but not limited to, local fueling stations/locations, convenience stores, hypermarket fueling stations, fleet facilities, fuel terminal operations, midstream partners and/or distribution facilities.

USDA plans to make available approximately $86 million for implementation activities related to higher blends of fuel ethanol, and approximately $14 million for implementation activities related to higher blends of biodiesel. Higher biofuel blends are fuels containing ethanol greater than 10 percent by volume and/or fuels containing biodiesel blends greater than five percent by volume.



Growth Energy Welcomes USDA Progress on Biofuel Infrastructure

Growth Energy, the nation’s largest ethanol association, welcomed the launch of a major infrastructure program under the U.S. Department of Agriculture (USDA) that promises to expand clean, affordable fuel options at the pump. Announced by USDA Secretary Sonny Perdue, the Higher Blends Infrastructure Incentive Program (HBIIP) will provide $100 million in competitive grants for infrastructure projects to facilitate increased sales of higher biofuel blends.

“We applaud Secretary Perdue and USDA for their continued work to support homegrown fuels, as well as our congressional champions who are pressing ahead with legislation to accelerate our progress," said Growth Energy CEO Emily Skor. “Growth Energy’s pioneering work with Prime the Pump helped make the original Biofuels Infrastructure Partnership a resounding success, supporting the installation of E15 at more than 2,000 retail locations. Our experience proves that the USDA’s investment will pay dividends for years to come – for retailers, farmers, biofuel produces, and motorists alike.

“Due to COVID-19, American farmers and biofuel producers are facing an economic crisis that threatens the very heart of U.S. agriculture. While we work to secure support needed to ensure that we come out of this strong and ready to rebuild the farm economy, we know that continued progress on long-term investments like HBIIP are critical to show that the light at this end of this tunnel is brighter than ever.”

Background
The USDA’s HBIIP will expand domestic ethanol and biodiesel availability by supporting infrastructure projects to facilitate increased sales of higher biofuel blends (E15/B20 or higher). This effort will build on biofuels infrastructure investments and experience gained through the Biofuels Infrastructure Partnership (BIP). USDA administered BIP from 2016-2019 through state and private partners to expand the availability of E15 and E85 infrastructure to make available higher ethanol blends at retail gas stations around the country.



RFA Welcomes Details on USDA Infrastructure Grant Program

Today, the U.S. Department of Agriculture announced more details on a $100 million grant program for activities designed to expand the availability and sale of higher blends of ethanol like E15 and E85, as well as other renewable fuel blends. Renewable Fuels Association President and CEO Geoff Cooper offered the following statement in response:

“U.S. ethanol producers today are facing the worst economic conditions in the industry’s 40-year history due to COVID-19, and they need immediate emergency relief to survive this catastrophe. Once the pandemic is over and fuel markets are showing signs of recovery, expanding infrastructure via the Higher Blends Infrastructure Incentive Program will be important to the long-term future of the ethanol industry and rural America. We thank the USDA for its efforts to support the future of renewable fuels.”



NBB Welcomes USDA Program Funding for Higher Biodiesel Blends

The National Biodiesel Board (NBB) today welcomed Secretary of Agriculture Sonny Perdue's announcement of available funding for competitive, cost-shared grants to support infrastructure for higher blends of biodiesel. USDA today issued a Notice of Funds Available for the Higher Blends Infrastructure Incentive Program (HBIIP).

Kurt Kovarik, NBB's VP of Federal Affairs, said, "NBB's members thank Secretary Perdue and USDA for supporting farmers and biodiesel producers. The Higher Blends Infrastructure Incentive Program will help the industry expand consumers' access to cleaner, better transportation and heating fuels in the future."

Of the $100 million USDA is making available, $14 million will be available to support infrastructure for biodiesel blends above 5%. The grants will match up to 50% of eligible costs or $5 million, whichever is lower. USDA anticipates making approximately 150 awards and providing assistance to 1,500 locations with the available funds.



ACE stands ready to assist fuel retailers as USDA rolls out HBIIP details to expand availability and use of higher ethanol blends

Today, the United States Department of Agriculture (USDA) announced further information and details surrounding the application process for its Higher Blends Infrastructure Incentive Program (HBIIP), which makes available up to $100 million in competitive grants for activities designed to expand the sale and use of renewable fuels, $86 million of which is reserved for higher blends of ethanol. The American Coalition for Ethanol (ACE) is focusing its market development efforts, including the fuel-marketer-focused website flexfuelforward.com, on ensuring fuel marketers know about the funding and receive any assistance they need to participate. ACE Senior Vice President and Market Development Director Ron Lamberty provided insight to USDA during the initial HBIIP stakeholder meeting and has been in close consultation with the USDA since. Lamberty released the following statement in response to today’s announcement:

“ACE is gratified to see many policies we recommended to USDA to make the program more accessible to single store and small chain operators were included in the final program. In particular, we appreciate the Targeted Assistance Goal (TAG) which makes approximately 40 percent of funds available specifically for applicants owning 10 fueling stations/locations or fewer. USDA is also offering applicants ‘consideration for geographical diversity and markets underserved by higher blends’ to help establish higher blend retail facilities in a broader geographic area, which ACE identified as critical to widespread E15 use in our recommendations to USDA.

“A very high percentage of existing stations could add E15 using mostly existing equipment, and USDA is structuring these grants so all fuel retailers — including single store and small chain owners — can receive assistance whether they need to perform simple conversions, upgrades or new infrastructure. Widespread E15 use is going to rely on conversions more than new construction, and ACE will focus on helping stations determine compatibility so they can add higher ethanol blends as quickly as they are able.  Retailers may also need assistance with the application process, which USDA has assured us has been simplified as much as possible for a federal grant program. ACE will be helping retailers navigate the grant process by providing expertise, and when needed, financial assistance to give stations the best chance of receiving grant funding.

“ACE is uniquely suited to assist single-store operators — who own 62 percent of U.S. convenience stores according to recent NACS data. From its inception, ACE's market development program has focused on helping station owners, primarily single store and small chain retailers, understand ethanol as an easy product addition that can provide a competitive advantage and a healthier bottom line. Owners who act now can use the USDA HBIIP to reduce their cost of getting ahead or keeping up with the competition, and ACE stands ready to help fuel marketers complete the application process and make the switch.

“While ACE continues to focus on securing immediate aid for the ethanol industry struggling to survive the catastrophic economic fallout of COVID-19, investments in infrastructure now will help secure long-term growth and help ethanol demand recover more quickly once the economy starts to open back up.”



Tyson Profits Fall 15% in First Quarter

Tyson Foods Inc. warned that the coronavirus pandemic will disrupt business for months to come, reducing its meat production and cutting into supplies for grocery stores and restaurants.

The top U.S. meat supplier by sales has been struggling to fulfill certain orders after COVID-19 closed some plants, executives said. Meanwhile, it is rerouting millions of pounds of meat each week, as demand shifts abruptly toward grocery stores and away from restaurants.

Tyson's efforts to keep plants operating, including chartering planes to deliver protective masks and setting up mobile health clinics, are adding costs.

"In my career, this is the most significant and severe crisis that we've gone through," Tyson Chief Executive Noel White, who has worked in the company's operations for 35 years, told reporters on a conference call.

The impact is already registering at Tyson. On Monday, it reported overall profit fell 15% to $364 million for the quarter ended March 28, during which supermarket shopping ramped up and restaurant visits fell. The company said it couldn't project profitability for the remainder of its fiscal year. Tyson's stock dropped 8% in midday trading.

COVID-19 outbreaks among workers at meatpacking plants have forced closures at Tyson and other companies like Cargill Inc., JBS USA Holdings Inc. and Smithfield Foods Inc. Other plants remain open but with curtailed operations as health worries keep many workers home. The Centers for Disease Control and Prevention last week estimated 4,913 coronavirus cases among workers at 115 U.S. meat plants, and 20 deaths.

President Donald Trump last week enacted a Korean War-era law enabling meat plants to continue operating under the discretion of the U.S. Department of Agriculture, shielding meatpackers from state or local pressure to close down as cases spread. Several of Tyson's largest beef and pork plants remain temporarily shut; and, while executives said the president's move provided a consistent national standard for meat plant operations, Tyson could shut down more plants if needed. White said

Plant closures and slowdowns have cut into overall meat production, leading some supermarket operators to brace for shortages. Tyson is dealing with shortfalls in some products for both grocery stores and restaurant customers, executives said, and the company is focusing its capacity on products that can be made the fastest and in the highest volumes.

"We're in constant dialogue to make sure those disruptions are as minimal as possible," White said.

Stay-at-home directives for consumers in most U.S. states abruptly shifted Tyson's business, with supermarkets now making up about two-thirds of the company's sales, compared with 45% normally, executives said. Restaurant chains and other food service operations usually account for about 40% of Tyson's sales, but that business is down by at least a quarter due to widespread dining room closures.

For Tyson, the supermarket surge isn't enough to make up for lost restaurant profits. The growth in sales to grocery stores is coinciding with a general shift to lower-profit products, and the company isn't planning to raise prices for supermarket customers, Tyson President Dean Banks said. The company also expects its chicken business -- which is more restaurant-dependent than its pork and beef operations -- to lose money between now and early October, when its fiscal year ends.

In response to the drop-off in restaurant business, Tyson and other chicken producers are restraining production, slowing how fast they raise birds and, in some cases, breaking eggs rather than hatching them.

Tyson said it generated $10.88 billion in sales for its latest quarter, up from $10.44 billion a year earlier, but below analysts' forecast. Tyson reported a profit following adjustments of 77 cents a share, short of the $1.04 a share that analysts expected.



Koch Agronomic Services Develops Educational Agronomy Tools for Growers and Retailers

Koch Agronomic Services (Koch) is breaking down the science and technology behind nitrogen loss and soil health. Field Notes, an online educational platform from Koch, will help arm growers and retailers with the knowledge to increase their operational efficiencies.

Throughout the year, Koch will release new Field Notes content from crop science and industry experts in the form of videos, articles and podcasts to be released onto KASFieldNotes.com.

“We wanted to offer growers and retailers a series of in-depth tools that could help explain the complexities of agronomic processes,” says Steve Coulter, senior vice president at Koch. “In the situation we’re currently facing with COVID-19, most people aren’t able to have their usual face-to-face meetings. We believe Field Notes will be extremely valuable in assisting producers determine what’s best for their operations.”

The initial content posted on the site will help growers and retailers better understand nitrogen. One of the most essential nutrients involved in plant growth, it’s vital to know how nitrogen is lost and how to best protect it. Experts will cover the following topics:
    Nitrogen cycle
    4R Nutrient Stewardship
    Three forms of nitrogen loss
    Importance of protecting your nitrogen investment
    Spring weather’s impact on nitrogen
    Managing nitrogen after cover crops

“Nitrogen touches every metabolic process in a plant, so it’s vital that we know how it works and how to protect it,” says Tim Laatsch, technical agronomy manager for Koch. “These materials should go a long way to make the science of agronomy more understandable so that nitrogen management decisions are easier to make.”

For more information, go to KASFieldNotes.com and see the content already posted to help growers implement the best practices to sustainably manage nitrogen. 

Friday May 1 Ag News

Ricketts Proclaims May as “Beef Month” in Nebraska

Today, at his daily press briefing, Governor Pete Ricketts proclaimed May as “Beef Month” in Nebraska.  He also overviewed the actions the State has taken to assist meat processors with their health and safety practices.

Steve Wellman, Director of the Nebraska Department of Agriculture, and Buck Wehrbein, Federation Division Chair for the National Cattlemen’s Beef Association, joined the Governor to celebrate Beef Month.  Shelly Schwedhelm, Executive Director of Emergency Management and Biopreparedness for Nebraska Medicine, also took part in the press conference.  She announced the availability of a new guide that offers best practices and recommendations for meat processors as they work to minimize the risk of coronavirus.  Shelly and a team of experts have toured 11 meatpacking plants over the past two weeks to provide technical assistance and further develop the guidance document, titled “Meat Processing Facility COVID-19 Playbook.”

Gov. Ricketts: Beef Month
·       Today we are celebrating Beef Month in Nebraska.
·       Beef has been a part of Nebraska’s rich history since the beginning of our state.
o  Hard-working men, women, and families came to Nebraska to pioneer the cattle industry.
o  The cattle industry grew, and it is the largest driver of our largest industry, agriculture.
·       When we think of beef, we often think of ranches, pastures, and rolling hills.  But it’s more than that.
o  It’s a main economic driver in our state.  It generates jobs throughout the entire supply chain.
o  Corn and soybean producers, feed grain suppliers, processers, packers, grocery retailers, and more are intricately connected with our beef industry.
·       The last ten years have been a decade of growth for Nebraska beef exports, with a 96% increase in total beef exports.

Director Wellman: Beef Month
·       Nebraska is known as the “Beef State” because of the wonderful, high-quality, and safe beef we produce here.
·       Our Sandhills grasslands and abundant water resources make Nebraska a great place to raise cattle.
·       Over the years, our ranchers have made substantial investments to improve how they operate.
·       We produce the same amount of beef in 2020 as we did in 1970 with one-third of the animals.

Buck Wehrbein: Beef Month
·       A year ago, our cattlemen faced floods and now we’re fighting a virus.  It’s been a powerful one-two punch.
·       Despite these challenges, our ag producers are committed to producing our premium beef.
·       We rely on food processors to help our beef reach the tables of our customers.  We’re grateful for what they do.
·       People are cooking more and eating at home more often right now. 
·       Nebraskans can go to beefitswhatsfordinner.com to find tips on cooking various cuts of meat as well as great recipes to try.

Shelly Schwedhelm: Meatpacking Safety
·       I grew up on a dairy farm and currently live on a beef farm.  I’ve also studied infectious disease and have been applying this knowledge to agricultural production.
·       The University of Nebraska Medical Center’s (UNMC’s) Global Center for Health Security has developed a new playbook for meat processors to prevent COVID-19.  You can access it by clicking here.
·       We’ve identified many best practices for meat processors:
o  Adding physical barriers.
o  Changing air flows.
o  Implementing physical distancing strategies for breaks and lunches.
o  Doing screenings as workers come to the facility.
o  Providing masks for workers.
·       Our team of infectious disease experts at UNMC has now physically visited 11 plants and virtually toured others.  We have additional on-site visits scheduled for next week.



May is Beef Month in Iowa

The Iowa Beef Industry Council is pleased to announce that May is Beef Month in Iowa. Governor Kim Reynolds has signed the May Beef Month proclamation in recognition of the importance of Iowa’s beef industry to the state’s economy. The Iowa Beef Industry Council is pleased to present the following proclamation.

    Whereas Iowa is a major beef producing state with nearly 4 million head of cattle on January 1, 2020; and

    Whereas the beef industry contributes greatly to our economy by generating approximately $4 billion in cash receipts for cattle and calves, equal to nearly 15 percent of all Iowa agricultural cash receipts; and

    Whereas today's beef is a naturally nutrient-rich food providing protein, iron, zinc and B-vitamins with more than 30 beef cuts that meet the government’s definition for “lean”; and

    Whereas Iowa is a leader in the export of value-added agriculture products, shipping high-quality Iowa beef to other countries around the world; and

    Whereas there is an ever-increasing need for better understanding of the benefits that the beef industry provides to all Iowans.

    Now therefore, I, Kim Reynolds, Governor of the State of Iowa, do hereby proclaim the month of May 2020 as Beef Month in Iowa, and urge all citizens to appreciate the contributions Iowa’s beef industry continues to provide to our state.



Fortenberry Designated Nebraska Farm Bureau “Friend of Agriculture”

U.S. Rep. Jeff Fortenberry has been designated a “Friend of Agriculture” by NEFB-PAC, Nebraska Farm Bureau’s political action committee. Fortenberry, who is seeking re-election to the U.S. House of Representatives in Nebraska’s First Congressional District, received the designation based on his ongoing efforts to advance the well-being of Nebraska’s farm and ranch families, said Mark McHargue of Central City, chairman of NEFB-PAC and first vice president of Nebraska Farm Bureau.

“Congressman Fortenberry has worked on several key issues of interest to our members. He’s been supportive of expanding market opportunities for agricultural products through new and specialty markets. He voted to support major tax reform to help lower the tax burden on Nebraska’s farm and ranch families. He’s also been a leader in working to find solutions to skyrocketing health care costs that have created significant financial hardships on farmers and ranchers,” said McHargue.

As a member of the House Appropriations Committee, Fortenberry has played a critical role in funding essential federal initiatives, while working to bring fiscal responsibility to Washington.

“Congressman Fortenberry has continued to demonstrate a strong commitment of service to agriculture. We’ve greatly appreciated his efforts and are proud to count him among those receiving our “Friend of Agriculture” designation,” said McHargue.



Free Farm and Ag Law Clinics Set for May

Free legal and financial clinics are being offered for farmers and ranchers at seven sites across the state in May 2020. The clinics are one-on-one meetings with an agricultural law attorney and an agricultural financial counselor. These are not group sessions, and they are confidential.
COVID-19: Due to the one-on-one nature of these session, organizers plan on continuing to provide this service, however, they will take necessary precautions and adjust plans as conditions change.

The attorney and financial advisor specialize in legal and financial issues related to farming and ranching, including financial and business planning, transition planning, farm loan programs, debtor/creditor law, debt structure and cash flow, agricultural disaster programs, and other relevant matters. Here is an opportunity to obtain an independent, outside perspective on issues that may be affecting your farm or ranch.

Clinic Sites and Dates
    Fairbury - Wednesday May, 13th
    Grand Island - Wednesday, May 13th
    Norfolk - Wednesday, May 20th
    Lexington, Thursday, May 21st
    North Platte - Wednesday, May 27th
    Valentine - Wednesday, May 27th

To sign up for a free clinic or to get more information, call the Nebraska Farm Hotline at 1-800-464-0258. Funding for this work is provided by the Nebraska Department of Agriculture, and Legal Aid of Nebraska.



Nebraska Grain Sorghum Board Praises Resumption of Sorghum Imports to Vietnam

The Nebraska Grain Sorghum Board (NGSB) praised the announcement that Vietnam will resume importation of sorghum beginning on May 1st, 2020. Vietnam boasts the world’s fastest-growing economy, expanding at a rate of 8%-10% year over year for the past decade.

NGSB staff participated in Governor Ricketts’ trade mission to the country in September 2019, working alongside Nebraska Department of Ag leadership, USDA Plant and Animal Health Inspection Service (APHIS) staff, the U.S. Embassy in Vietnam, and US Grains Council representatives in Southeast Asia to encourage Vietnamese acceptance of APHIS-proposed phytosanitary protocols respective to sorghum. NGSB also thanks the United Sorghum Checkoff, Sorghum Growers and many other sorghum-focused organizations also contributed to the approval of the phytosanitary agreement for sorghum importation by the Vietnamese government.

“Increasing value-added markets for sorghum, whether at home or abroad, is critical to the success of Nebraska sorghum growers, said Nate Blum, Executive Director of the Nebraska Grain Sorghum Board. “From bioplastics and ethanol to aquaculture and animal feed, Vietnam offers many opportunities for this great Nebraska product.  We are eager to further strengthen our relationships with end-users in Vietnam over the coming years.”

Blum continued, “Many agencies and individuals worked on reopening the Vietnamese market. The Nebraska Grain Sorghum Board especially thanks U.S. Ambassador Kritenbrink, Governor Ricketts, the Ministry of Ag and Rural Development (MARD) in Vietnam, the United Sorghum Checkoff Program, the U.S. Grains Council, USDA APHIS, and the U.S. Embassy staff for their diligent work to resolve this fundamental markets access issue.”



Pig Humane Handling and Disposal Tools for Producers

The National Pork Board compiled resources for producers to help manage the impact of COVID-19 on farms. The following may be helpful for emergency depopulation and disposal:
    Recommendations for the Depopulation of Swine
    Webinar: Planning for Emergency Depopulation and Disposal
    Webinar: Animal Welfare Tools for Pork Producers

https://library.pork.org/share/10AE42FE-263E-4B2A-AF87D29206B32CDA/

USDA’s Natural Resource Conservation Service (NRCS) is offering financial and technical assistance for disposal. Contact your local NRCS office.

The National Pork Board does not advocate, endorse or suggest any particular action covered in these resources, which are purely for informational purposes.



USDA Fats and Oils: Oilseed Crushings, Production, Consumption and Stocks

Soybeans crushed for crude oil was 5.76 million tons (192 million bushels) in March 2020, compared with 5.26 million tons (175 million bushels) in February 2020 and 5.38 million tons (179 million bushels) in March 2019. Crude oil produced was 2.20 billion pounds up 10 percent from February 2020 and up 5 percent from March 2019. Soybean once refined oil production at 1.54 billion pounds during March 2020 increased 13 percent from February 2020 and increased 9 percent from March 2019.

Grain Crushings and Co-Products Production
Total corn consumed for alcohol and other uses was 467 million bushels in March 2020. Total corn consumption was down 3 percent from February 2020 and down 6 percent from March 2019. March 2020 usage included 90.8 percent for alcohol and 9.2 percent for other purposes. Corn consumed for beverage alcohol totaled 4.05 million bushels, up 55 percent from February 2020 and up 17 percent from March 2019. Corn for fuel alcohol, at 412 million bushels, was down 5 percent from February 2020 and down 7 percent from March 2019. Corn consumed in March 2020 for dry milling fuel production and wet milling fuel production was 90.2 percent and 9.8 percent, respectively.

Dry mill co-product production of distillers dried grains with solubles (DDGS) was 1.66 million tons during March 2020, down 9 percent from February 2020 and down 11 percent from March 2019. Distillers wet grains (DWG) 65 percent or more moisture was 1.22 million tons in March 2020, down slightly from February 2020 and down 9 percent from March 2019.

Wet mill corn gluten feed production was 291,861 tons during March 2020, up 4 percent from February 2020 but down 4 percent from March 2019. Wet corn gluten feed 40 to 60 percent moisture was 245,209 tons in March 2020, up 4 percent from February 2020 and up 9 percent from March 2019.

Flour Milling Products
All wheat ground for flour during the first quarter 2020 was 232 million bushels, down slightly from the fourth quarter 2019 grind of 232 million bushels but up 4 percent from the first quarter 2019 grind of 223 million bushels. First quarter 2020 total flour production was 107 million hundredweight, down 1 percent from the fourth quarter 2019 but up 4 percent from the first quarter 2019. Whole wheat flour production, at 5.90 million hundredweight during the first quarter 2020, accounted for 6 percent of the total flour production. Millfeed production from wheat in the first quarter 2020 was 1.65 million tons. The daily 24-hour milling capacity of wheat flour during the first quarter 2020 was 1.61 million hundredweight.



Coalition Opposes API Petition on 2020 RFS Obligations
A coalition of ethanol and farm groups today sent a letter to the Environmental Protection Agency opposing the American Petroleum Institute’s recent petition requesting reconsideration of the 2020 Renewable Fuel Standard (RFS) final rule.

API claims reconsideration of the 2020 RFS rule is necessary in light of the coalition’s recent Tenth Circuit court victory that overturned small refinery exemptions illegally granted by EPA. The successful Tenth Circuit court challenge was brought against EPA by the Renewable Fuels Association, National Corn Growers Association, National Farmers Union, and American Coalition for Ethanol.

Specifically, API argues that the 2020 RFS rule should be revised to eliminate measures that prospectively “reallocate” RFS blending obligations expected to be lost to refinery waivers. API claims reallocation of expected waivers is no longer needed because the Tenth Circuit decision should significantly curtail the number of waivers granted. However, EPA has not yet confirmed that it will implement the tenets of the Tenth Circuit court decision nationwide, meaning reconsideration of the 2020 RFS rule would be woefully premature.

“There is no basis for revisiting or modifying EPA’s current approach until EPA acknowledges that the central tenets of the Tenth Circuit’s decision are appropriately applied throughout the country,” the groups wrote.

In fact, the 2020 RFS volumes should not be adjusted downward to remove reallocated volumes even after EPA applies the Tenth Circuit court decision nationally, according to the coalition’s letter.

“As noted by the Court, EPA’s recent abuse of its small refinery exemption authority has significantly harmed the U.S. ethanol industry. Indeed, nationally, more than four billion gallons of 2016-2018 renewable fuel volume requirements were lost due to EPA’s illegally issued small refinery waivers. Applying the Tenth Circuit decision nationally while leaving the 2020 RFS rule intact would begin to restore a small amount of the renewable fuel volume requirements lost to past small refinery exemptions; still, doing so would come nowhere near fully redressing the demand destruction wrought by the exemptions.”



LAWMAKERS URGE TRUMP TO PROVIDE IMMEDIATE ASSISTANCE, WITHOUT PAYMENT CAPS, TO HOG FARMERS
NPPC newsletter

On Thursday, more than 50 lawmakers, led by Reps. Tom Emmer (R-Minn.), Dusty Johnson (R-S.D.), Vicky Hartzler (R-Mo.), Jim Hagedorn (R-Minn.) and Emanuel Cleaver (D-Mo.), urged President Trump to provide immediate assistance to U.S. pork producers struggling as a result of COVID-19 challenges. "Over the past month, hog futures have plummeted by more than 30 percent, down to their lowest point in over 15 years. Restaurants closing their doors and the broader drop in public demand have largely fueled this decrease. However, recent processing plant closures in the Upper Midwest has severed a critical supply chain, leaving pork producing farms with nowhere to turn. Thousands of hog farmers are taking drastic measures to slow the growth cycle of their animals, but are unfortunately facing the prospect of a processing capacity incapable of accepting our inventory. These unprecedented challenges require the attention and immediate assistance from both Congress and federal agencies," wrote the lawmakers. While the recently announced USDA COVID-19 aid package is welcome news, hog farmers receive as little as $4 per hog in assistance and they are facing more than 10 times that amount in losses, the lawmakers explained. The congressmen urged the administration to remove payment limitations that "severely undermines the impact of the program for hog farmers," and the mobilization of existing farm programs to provide additional resources. The letter echoes NPPC calls for equitable, direct payments to producers without eligibility requirements. Three similar Congressional letters to President Trump were sent last week.



Livestock Marketing Association to Focus on Pricing Investigations
Larry Schnell, Vice President, Livestock Marketing Association

To say times are tough in cattle country would be an understatement. Livestock Marketing Association (LMA) member livestock auction owners and their producer customers are speaking up with significant concerns about volatility, the futures market, and especially, livestock producers not getting their fair share of the beef dollar. While COVID-19 and the Holcomb, Kan. packing plant fire last August are bringing these issues further to the forefront, they are illustrations of long-standing concerns regarding pricing and competition.

Livestock auction markets are an integral part of the process of price discovery, but our value is totally dependent on the success and profitability of the cow-calf producer, and the cattle feeder.

LMA supports the ongoing efforts by livestock organizations and individuals to bring about a pricing mechanism that would better serve the cattle feeder, and thereby the cattle producer. Our businesses are rooted in achieving competitive prices for cattle producers, and we want to see this occur throughout the beef supply chain.

To help bring that about, LMA is focusing on the investigations of the differential between the wholesale price of beef and the price that cattle feeders are receiving for their cattle. Beyond encouraging these investigations, LMA is conducting independent research and having additional discussions to pinpoint specific areas of concern for the U.S. Department of Agriculture, the Department of Justice, and hopefully, the Commodity Futures Trading Commission. This includes looking at futures market issues in addition to issues with fed cattle pricing.

The cattle industry needs answers regarding what is behind the dramatic spread between live cattle and boxed beef prices, and these investigations are critical in answering these questions. Our goal is long-term solutions that will address problems within finished cattle marketing, and a pricing mechanism that results in profitability for all segments of the industry.

These are uncertain times, and this is a difficult task. But with every challenge also comes opportunity. Consumer attention is on the fundamentals of life – and ready access to high-quality protein is one of them. Congresspeople are hearing from their cattle country constituents, and they want to help.

At LMA, we are dedicated to working with our legislative and industry allies for the betterment of the livestock industry and our consumer customers. If we focus on this, and we are successful, we’ll be setting up cattle producers to enjoy the good times and weather the tough ones for generations to come.



Livestock Producers & Meat & Poultry Industry Applaud Leadership of Trump Administration

The nation’s leading farming and ranching member organizations and the meat and poultry industry associations today sent a letter to President Donald J. Trump applauding his leadership in working with members of Congress and federal, state and local officials.  The President’s Executive Order will help ensure the integrity of the food supply chain and protect the men and women producing this vital food.

The letter was signed by Zippy Duvall, President, American Farm Bureau Federation, Colin Woodall, CEO, National Cattlemen’s Beef Association, Mike Brown, President, National Chicken Council, Neil Dierks, CEO, National Pork Producers Council, Joel Brandenberger, President and CEO, National Turkey Federation and Julie Anna Potts, President and CEO, North American Meat Institute.

The following is the text of the letter sent Friday, May 1, 2020:

Dear President Trump,

Our organizations representing the nation’s beef, pork, chicken and turkey farmers and ranchers and meat and poultry packers and processors would like to reiterate our thanks to you for your leadership and partnership with your administration, Congressional leaders, state Governors around the country and local leaders and health officials as our industry ensures the ongoing production of meat and poultry to feed Americans during the COVID-19 crisis. Feeding Americans is a non-partisan issue, and we are proud to work with our nation’s leaders to avert major supply chain disruptions and hardships for hundreds of thousands farmers and ranchers across the country and keep safe, affordable food on the plates of millions of Americans.

This week’s Executive Order enacting the Defense Production Act to keep meat plants open is a key first step toward stabilizing the current plant capacity challenge and overcoming other major hurdles facing meat producers. Given our unprecedented times and challenges in many major industries, there’s no way to know to what the extent or scope of continued disruptions might be, but we do know that, with the safety and well-being of essential people top of mind, our farmers and ranchers need and want to get their animals to market so we can continue delivering meat and poultry to consumers.

The health and safety of the essential men and women in packing plants remains paramount. Companies already have taken extra steps to protect their employees, but the additional PPE and guidance made possible by enacting the Defense Production Act is welcome news. These heroic essential men and women are providing for their own families and keeping our country fed. They deserve our thanks and our support.

As the administration develops further guidance toward implementing the DPA to keep plants open, we are committed to continuing to work with you and government leadership at every level to ensure that we are doing everything in our power on behalf of our farmers and ranchers, animals, essential people and American consumers. Thank you again for your support of our industry and the key role we play feeding Americans.



DMC Margins May Not Reflect True Dairy Losses, Even as They Plunge

With the coronavirus crisis massively disrupting dairy demand and supply chains, margins under the Dairy Margin Coverage (DMC) program fell dramatically in March and April. Even so, they may not accurately reflect the true losses producers are facing due to the unusual effects of the crisis on milk-component prices, a public-policy concern as USDA allocates billions of dollars in emergency assistance.

The DMC margin for March was $9.15 per cwt., 35 cents below the $9.50 per cwt. maximum coverage level for the program. The situation has deteriorated further in April: The full-year margin as of the April 28 forecast by USDA’s DMC Decision Tool, shown in the chart, was forecast to be $7.69, $1.81 per cwt. below the $9.50 trigger. Farmers enrolled in the program at all coverage levels, both under and over 5 million pounds of production history, would collectively receive $515 million in government payments at that margin.

Still, even margins that low – the lowest since 2009, if current margin formulas were projected backward – may understate the full loss for dairy.

Under normal circumstances in the U.S. dairy industry, the NASS-reported all-milk price used for DMC calculations behaves as what can be termed a commodity milk price. This means that, although it is determined using a survey methodology, it closely tracks the prices of the four basic dairy products: butter, cheddar cheese, nonfat dry milk and dry whey. These product prices determine federal milk marketing order class prices, which in turn determine order blend prices, which have a strong influence on prices paid to all dairy farmers. Futures prices for the four commodities can be used to forecast the all-milk price when that price effectively behaves as a commodity milk price. This happens when milk supply and demand are in reasonable balance, virtually all milk sold is processed, very little milk is sold at distressed prices, and producers whose milk is pooled on federal orders receive close to the federal order blend.

None of that has been true in recent weeks, making the issue of what the all-milk price reflects a key factor in allocating billions of dollars in payments to dairy farmers under the DMC and, potentially, under the Coronavirus Food Assistance Program (CFAP) this year. This year, dairy farmers will get little to no payment for large volumes of dumped milk, and additional large milk volumes will be sold at seriously distressed prices, none of which is reflected in a commodity milk price.

The forecast of the U.S. average all-milk price during calendar year 2020 released last month by USDA’s World Agricultural Outlook Board in the April 9 World Agricultural Supply and Demand Estimates (WASDE) report appears to recognize this issue. The forecast, $14.35 per cwt., was about $2.00 per cwt. lower than commodity milk price forecasts were indicating at the time, and the report further commented that its forecasts included “additional milk marketed but not processed”, i.e., dumped milk.

The Decision Tool’s milk price forecasts are essentially commodity milk price forecasts. If the reported all-milk prices over the next several months also account for the milk prices dairy farmers actually received, payments as determined under USDA loss calculations would be much larger.

The DMC margin calculation is required by law to use the NASS-reported all-milk price. The CFAP direct payment calculations for dairy currently being formulated by USDA will involve estimating the prices that would have been received by dairy farmers if the coronavirus pandemic had not occurred, which would be commodity milk prices because the assumed scenario would be basically normal industry conditions. Still, such a scenario should be compared with prices received under the current crisis conditions, which will not be commodity milk prices.

Although commodity prices, and hence commodity milk prices, have fallen as a result of the pandemic, actual prices received by dairy farmers will have fallen even more. If these calculations use the NASS all-milk price, it will be important that they reflect this difference. It will be critically important to see if NASS takes its cue from the interagency experts who made the April WASDE forecast when it reports the all-milk price for April a month from now.

The DMC information page on NMPF’s website offers a variety of educational resources to help farmers make better use of the program.  Find it at https://www.nmpf.org/policy_tags/dairy-margin-coverage/. 



CWT-assisted dairy product export sales top 21 million pounds in April

As America’s dairy farmers struggle in these unprecedented times, the Cooperatives Working Together (CWT) export assistance program is helping maintain and develop markets for U.S. milk. Member cooperatives have captured sales contracts that will move overseas the equivalent of 445.7 million pounds of milk in 2020.

In April, CWT members secured 116 contracts to sell 7.2 million pounds of American-type cheese, 3.2 million pounds of butter, 2 million pounds of anhydrous milkfat (AMF), 8.7 million pounds of whole milk powder (WMP), and 599,657 pounds of cream cheese. These products are going to customers in Asia, Central and South America, Europe, the Middle East, North Africa, and Oceania. They will be shipped April through October 2019.

These sales bring the total 2020 CWT-assisted dairy product exports to 16.1 million pounds of cheese, 4.3 million pounds of butter, 2 million pounds of anhydrous milkfat, 17.7 million pounds of whole milk powder, and 2.4 million pounds of cream cheese.

2020 is a challenging year for dairy farmers and their cooperatives. Doing whatever is necessary to strengthen milk prices is a must. Dairy exports will be key for both dairy farmers and dairy cooperatives in the year ahead.  CWT provides a means to move domestic dairy products to overseas markets by helping to overcome certain disadvantages such as the domestic/global price gap, shipping costs and tariffs.



FSA Reminds Producers of Ongoing Disaster Assistance Program Signup

The U.S. Department of Agriculture (USDA) has started making payments through the Wildfire and Hurricane Indemnity Program – Plus (WHIP+) to agricultural producers who suffered eligible losses because of drought or excess moisture in 2018 and 2019. Signup for these causes of loss opened March 23, and producers who suffered losses from drought (in counties designated D3 or above), excess moisture, hurricanes, floods, tornadoes, typhoons, volcanic activity, snowstorms or wildfires can still apply for assistance through WHIP+.

“To date, FSA has received more than 33,000 WHIP+ applications,” said Richard Fordyce, Administrator of USDA’s Farm Service Agency (FSA). “We want to remind producers that we are still accepting applications for WHIP+, and we encourage producers to call our offices for next steps on how to apply.”

To be eligible for WHIP+, producers must have suffered losses of certain crops, trees, bushes or vines in counties with a Presidential Emergency Disaster Declaration or a Secretarial Disaster Designation (primary counties only) for qualifying natural disaster events that occurred in calendar years 2018 or 2019. Also, losses located in a county not designated by the Secretary as a primary county may be eligible if a producer provides documentation showing that the loss was due to a qualifying natural disaster event.

For losses due to drought, a producer is eligible if any area of the county in which the loss occurred was rated D3, or extreme drought, or higher on the U.S. Drought Monitor during calendar years 2018 or 2019. Producers who suffered losses should contact their FSA county office.

In addition to the recently added eligible losses of drought and excess moisture, FSA will implement a WHIP+ provision for crop quality loss that resulted in price deductions or penalties when marketing crops damaged by eligible disaster events. To ensure an effective program for all impacted farmers, the Agency is currently gathering information on the extent of quality loss from producers and stakeholder organizations.

USDA Service Centers, including FSA county offices, are open for business by phone only, and field work will continue with appropriate social distancing. While program delivery staff will continue to come into the office, they will be working with producers by phone and using online tools whenever possible. All Service Center visitors wishing to conduct business with the FSA, Natural Resources Conservation Service or any other Service Center agency are required to call their Service Center to schedule a phone appointment. More information on Service Centers can be found at farmers.gov/coronavirus, and more information on WHIP+ can be found at farmers.gov/whip-plus.



USDA Announces Commodity Credit Corporation Lending Rates for May 2020

The U.S. Department of Agriculture’s Commodity Credit Corporation today announced interest rates for May 2020, which are effective May 1-May 31, 2020.

The Commodity Credit Corporation borrowing rate-based charge for May is 0.125 percent, down from 0.625 percent in April.

The interest rate for crop year commodity loans less than one year disbursed during May is 1.125 percent, down from 1.625 in April.

Interest rates for Farm Storage Facility Loans approved for May are as follows:
    0.250 percent with three-year loan terms, down from 0.750 percent in April;
    0.375 percent with five-year loan terms, down from 0.750 percent in April;
    0.625 percent with seven-year loan terms, down from 1.000 percent in April;
    0.750 percent with 10-year loan terms down from 1.000 percent in April; and
    0.750 percent with 12-year loan terms, down from 1.125 percent in April.