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March 26, 2020
A five-minute summary of AAI, regulation, and industry activities for members of the largest state agribusiness association in the nation.
COVID-19 UPDATE
REMINDER: The main office in Des Moines is closed to visitors. AAI staff is still available to help you with your member needs via phone or email. Phones are still being answered during normal business hours. If you'd like to reach a specific member of the staff please visit our staff listing online.
AAI COVID-19 ACTIVITIES FOR AGRIBUSINESS

The Emergency Declarations due to COVID-19 continue to be issued frequently. We are in regular communication with our many partners at the state and federal levels to stay abreast of changes and continue to work toward additional answers for a number of pressing issues that affect Agribusiness Association of Iowa members.

The current end date for the Emergency Declaration in Iowa is April 16, 2020. This can be extended by Governor Kim Reynolds if the COVID-19 virus outbreak requires it.

Pesticide Applicator Testing

All applicators with a valid certification on December 31, 2019 have until the end of 2020 to renew.

WHAT’S AHEAD – AAI is working with IDALS and several of our members to find ways to bring on new applicators. This may take the form of “Applicator Trainees” or “Applicator Apprentices” or some other title that will not need meet the ordinary requirement of Certified Applicators. Watch for more information to come soon on this issue. We understand the urgency surrounding this issue for those of you in the agronomy retail business.

Commercial Drivers Licenses & Transportation 

Requirements for renewals have been postponed during the Emergency Declaration. 

The Federal Motor Carrier Safety Administration (FMCSA) provided guidance that explicitly states movement of agricultural goods, including fertilizer, seed, and other inputs, is covered by the Emergency Declaration as essential. The Hours of Service requirements are waived during the emergency when hauling essential goods. 

At the state level, weights have been increased to 90,000 pounds on state roadways, much like during a harvest proclamation. This does not apply to Interstate roadways.

WHAT’S AHEAD – This issue is multi-layered and requires coordination between federal and state regulators. AAI continues to work with national partners and the state DOT on rules that would qualify more drivers during the emergency, and also to find ways to license new drivers during a time when DOT testing sites are shut down due to the coronavirus. The already tight supply of CDL drivers combined with the current health pandemic, is causing large concerns in our industry.

Valero Not Honoring Contracts

This week, ethanol producer Valero notified corn suppliers that they will not honor contracts to buy corn in at least two of their Iowa locations. We understand margins are very tight in this business, and because of this, we expect additional temporary closings of ethanol facilities in Iowa and around the country. However, we anticipate arbitration, or even litigation, where there is a failure to honor contracts appropriately. 

Delivery contracts for ethanol plants involve both AAI grain retail members and individual farmers. We are currently working on this issue with AAI’s legal counsel and other agricultural organizations with affected members. Once more information is known about steps moving forward, we will share additional details with our members. 

A Voice for Agribusiness in Iowa

As our members continue to conduct business to the best of their ability in this uncertain time, your voice is continuing to be heard. Staff members are taking part in multiple teleconferences with the Iowa Department of Agriculture and Land Stewardship during the week and having additional conversations to continue working on the issues you are sharing with us. We also are working and conversing with ARA, NGFA, AFIA, ASTA, and TFI to make sure we are sharing how federal issues are affecting you in Iowa.

Your input is valuable. If you have any specific concerns about how the COVID-19 response is affecting your business, that we are not already addressing, please contact anyone on our AAI staff to share those ideas and concerns. Office phones and cell numbers are listed on the website.
Additional information can be found on the AAI COVID-19 page: agribiz.org/COVID-19

Click here for the AAI COVID-19 email update from Tuesday.

Federal Guidance Designating Ag as Essential Highlighted in Letter to State Governors

Following the updated guidance from the Department of Homeland Security’s Cyber Security and Infrastructure Security Agency (CISA), a letter from more than 40 agriculture groups was sent to all 50 governors urging the state leaders to be mindful of supply chain impacts of the response to COVID-19. This letter mirrors the letter sent to President Trump last week.

The letter asks each governor to incorporate CISA’s guidance to help state and local governments identify and manage the essential workforce within their states. CISA issued guidance last week identifying food and agriculture employees as Essential Critical Infrastructure Workers.


Dicamba Training Availiable Online

Online training sessions have been approved for the state of Iowa. Info can be found at
AAI Calendar of Meetings & Events


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Note:
Until further notice, all committee and board meetings will be held via conference call. 

Conference call access information will be listed in calendar invitations.
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March

Executive Committee Meeting
March 27
9:00 AM
Conference Call

April

AAI Board Meeting
April 2
10:00 AM
AAI Board Room
Conference Call


  • There will be no push back against a refiner ruling and more results from a China trade deal
  • IDALS wants auction barns to take precautions in the pandemic and agriculture statistics are still set to come out this week
  • Iowa ag businesses are donating to help make more hand sanitizer
  • A coronavirus relief bill has dollars for nutrition and agriculture sectors are defined as critical infrastructure


Watch episodes from the past week anytime online!

HIGHLIGHTS FROM THE NEWS
Iowa's farmers have reduced phosphorus loss by 22% over the past couple of decades. Now they're using the same approach (involving innovation and collaboration) to tackle the state's nitrate goals.

This little tree is decades old. Goes to show some of our best works take time. Gardeners know that and farmers do too. Iowa State University research shows that farmers have met their phosphorus reduction goals to improve water quality, but it didn't happen overnight.

Mike Naig, Iowa Secretary of Agriculture: We're down 20% on phosphorus over the last couple of decades. That's because we have brought focus, we have brought resources, we have done outreach...the approach works. But it will take time.

U.S. Department of Agriculture Service Centers are encouraging visitors to take proactive protective measures to help prevent the spread of coronavirus.

As part of our commitment to farmers and ranchers, USDA Service Centers will continue to be open for business by phone appointment only and field work will continue with appropriate social distancing. While our FSA and NRCS program delivery staff at the Service Centers will continue to come into the office, they will be working with our producers by phone, and using online tools whenever possible.

Producers can find their Service Center’s phone number at farmers.gov and more information about Coronavirus and USDA Service Centers at www.farmers.gov/coronavirus.  
A vote on the nearly $2 trillion economic stimulus package is expected today in the Senate.

The package would provide $14 billion to the USDA’s Commodity Credit Corporation and $9.5 billion for livestock, specialty crops, and local food systems.

Ethan Lane, vice president of government affairs, with the National Cattlemen’s Beef Association, says NCBA is pleased that the package includes assistance for cattle producers, but challenges are ahead.  

“That’s a pretty big group of stakeholders to have to share that same pot of money given the scope of this issue,” he says. “We’re grateful that they included something for us, but we’re now going to have a job ahead of us to ensure that our producers that are continuing to endure quite a bit of financial hardships are able to stay in business and keep that supply chain of beef moving to the grocery store because we are part of that critical infrastructure the president has talked about and keeping those store shelves full for consumers is our number one priority right now.”

Iowa Secretary of Agriculture Mike Naig issued the following statement in response to the Trump administration’s decision to allow the 10th Circuit Court of Appeal’s ruling, which limited the use of small refinery waivers, to stand.

“We appreciate President Trump’s administration for upholding the unanimous 10th Circuit Court's decision,” said Secretary Naig. “Unfortunately, our biofuels producers are still struggling through the economic downturn, trade uncertainty and plummeting fuel demand. Many plants are reported to be ceasing production or closing. But, today, this is welcome news in a very uncertain time. President Trump’s actions signal that he has no intention of leaving rural America behind.”

The renewable fuels industry accounts for more than $5.3 billion — or about 3 percent — of Iowa’s GDP, $2.5 billion in household incomes and more than 48,000 jobs. 

The American Feed Industry Association (AFIA), along with 23 state and regional feed and grain associations, called on state officials around the country today to maintain access to businesses providing animal food amid proposed state plans to close “non-essential businesses” to curtail the spread of the novel coronavirus disease (COVID-19). The plea comes after some states released response plans that excluded animal food manufacturing facilities, transportation and agricultural and non-agricultural retail establishments from their lists of “essential businesses.” In an urgent letter, the groups stated that these businesses should be reclassified because not doing so would hinder the animal food industry’s ability to continue feeding America’s livestock, poultry and pets, threaten the U.S. food supply and drive up prices for farmers, ranchers, pet owners and consumers.

The Senate advanced by a vote of 96-0 its Coronavirus Aid, Relief & Economic Security Act (CARES Act) in a vote late Wednesday night in the third tranche of assistance offered by Congress as it attempts to respond to the economic fallout from the coronavirus (COVID-19). For farmers, the final $2 trillion package includes some specific requests, such as additional lending authority to for the Commodity Credit Corp. (CCC) and livestock and disaster assistance.

The COVID-19 impact on agriculture includes a rapid and unanticipated decline in commodity prices, the likely closure of ethanol plants, the dramatic decline in full-service restaurant and school meal demand and the reduction in direct-to-consumer sales.

Ahead of the final deal, 48 agriculture groups, including the American Farm Bureau Federation, joined together in calling on Congress to expand the U.S. Department of Agriculture’s borrowing authority under the CCC. The agreement includes a $14 billion increase in USDA’s borrowing authority under the CCC, consistent with a long history of the CCC being tapped to responsibly support agriculture in times of crisis, and $9.5 billion to assist specialty crop producers, direct retail farmers and livestock operators.

On March 26, the Natural Resources Conservation Service produced a report using data and products from the National Water and Climate Center and other agencies. The report focuses on seasonal snowpack, precipitation, temperature, and drought conditions in the U.S.

Widespread minor flooding this spring is expected in the Midwest, resulting from months of ongoing rainfall with saturated soils. From the NOAA press release: “The greatest risk for major and moderate flood conditions includes the upper and middle Mississippi River basins, the Missouri River basin and the Red River of the North. Moderate flooding is anticipated in the Ohio, Cumberland, Tennessee, and Missouri River basins, as well as the lower Mississippi River basin and its tributaries.” Forecasts for a wet spring in some areas will contribute to any flooding conditions.

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