June 1, 2023

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A five-minute summary of AAI, regulation, and industry activities for members of the largest state agribusiness association in the nation.

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AAI IN ACTION

Nurse Tank Testing Workshop - June 27

Limited Seating - 50 28 seats available

Register by Friday, June 2, to Guarantee You Receive A Copy of the Early CFR 49 Regulation Book.

REGISTER ONLINE

REGISTRATION FEES

Member Rate: $195 per person

Non-Member Rate: $240 per person

Class fee includes a regulation book, student book, and lunch


Location:

CNH Industrial Ag Information Center | 23942 590th Ave | Nevada, Iowa

Click Here for Google Map

Ten Years of the Nutrient Reduction Strategy Yielding Results

It has been ten years since the Iowa Nutrient Reduction Strategy (Iowa NRS) was implemented. During that time, agriculture in Iowa has made major strides toward nutrient reduction goals. Adoption of conservation practices continues to increase, and progress is expected to continue to build over the next decade as water quality and conservation practice implementation accelerate. 


Measuring Progress On Agricultural Land

Agribusiness Association of Iowa members have been advocates for the Iowa NRS since it's inception. The association worked with other agriculture partner groups to form the Iowa Nutrient Research & Education Council (INREC), the only organization in Iowa that strategically brings together major farm & commodity organizations, major fertilizer and crop production companies, agricultural retailers, and crop advisers in a formal organization to help lead the environmental efforts of agriculture in Iowa.


One of the stated goals of INREC is measuring and demonstrating environmental progress. The annual Environmental Progress Measurement Assessment uses random, anonymous data from ag retailer records to provide a statistically sound measurement of nutrient reduction strategies used in Iowa. The results provide the official measurement of progress for non-point source nutrient reduction in Iowa.


View the results from the past five crop years on the INREC website:

Survey Results (2017-2021)

INREC Resources Webpage


The Iowa NRS Dashboard

The Iowa Nutrient Reduction Strategy measurement project was established in 2015 to track and report nutrient reduction efforts in Iowa. A program logic model was introduced to set measurable indicators of change. The logic model expands on four dimensions: Inputs, Human, Land, and Water. 


Below are few highlights from the Iowa NRS Dashboard, which reports the progress being made on the strategy goals:


  • Estimates from more than a decade ago suggest that there were as few as 10,000 acres of cover crops planted in the state. In 2021, the number jumped to more than 2.8 million acres.


  • Through the more recent development of edge of field practices, coupled with emphasis by the Iowa Department of Agriculture and Land Stewardship and partners to foster more installations, the cumulative number of acres protected by these practices, including saturated buffers and bioreactors, is 194 times higher in 2021 than it was in 2011.  


  • Because of increased, dedicated funds to expand water quality wetlands, the cumulative number of acres protected by wetlands has grown from 2,500 to 139,200 acres. 


  • Due to continued focus of public sector programs and increased interest from landowners, the cumulative acres in Iowa protected by structural erosion control practices continues to grow. These practices include terraces, ponds, grade stabilization structures, and water and sediment control basins. In addition to acres protected before 2010, nearly 290,000 additional acres from 2011 to 2021 have been protected using public sector program investment. 


  • Iowa farmers’ utilization of no-till on crop acres has grown from 6.2 million acres in 2010 to 9.5 million acres in 2021.


  • The majority of commercial Nitrogen applied to corn acres continues to occur in the spring. Of the acres with fall Nitrogen applied, an estimated 86 percent is put on with a Nitrogen inhibitor. Improved fertilizer management continues to be a priority and the Iowa Nitrogen Initiative is one example that seeks to modernize and optimize the Nitrogen recommendations for farmers in order to maximize productivity while reducing the risk of nutrient losses to the environment.


To view the entire dashboard along with interactive charts at the link below:

Iowa NRS Interactive Data Dashboards


An Op-Ed From The Iowa Secretary of Agriculture

Iowa Secretary of Agriculture Mike Naig recently published an Op-Ed about the progress toward nutrient reduction goals made during the past decade. Secretary Naig made the following comment to sum up the investment and goals of the Iowa NRS:


"Iowa’s economy depends on agriculture and agriculture depends on our natural resources. We know that positive changes to the land lead to positive improvements in the water. The investments we are making, the partnerships we are forming and the practices we are implementing will benefit not just the Iowans of today but the generations of Iowans yet to come."


The full Op-Ed is available at the link below:

Iowa's Water Quality Progress Continues to Accelerate


Get Involved

If you would like to know more about how your business can get involved and support the Iowa Nutrient Reduction Strategy, contact INREC Executive Director Ben Gleason, bgleason@agribiz.org.

AAI Drone Workshop - June 19

Get the latest from regulators, suppliers, and users

REGISTER ONLINE

REGISTRATION FEES

Member Rate: $30 per person

Non-Member Rate: $35 per person

Exhibitors: $100


Workshop:

10:00 AM – 2:00 PM | Lunch is provided


Location:

ECC Agriculture Renewable Energy Center

709 Ellsworth Avenue

Iowa Falls, Iowa 50126

Click Here for Google Map

AAI Golf Outings - First Event In Six Weeks!

Sponsored By

Want to add your company to this list? CLICK HERE FOR OPTIONS

July 13 - Okoboji, Iowa

Emerald Hills Golf Course

Aug. 24 - Amana, Iowa

Amana Colonies Golf Course

Sept. 13 - Ames, Iowa

Coldwater Golf Links

REGISTER ONLINE

AAI On The Air


WHO Radio - The Big Show | May 30, 2023

Listen To The Interview

Heavier Weight Trucks on Interstates

AAI Board Member Tracy Gathman, General Manager, Two Rivers Coop


Out And About


MEMBER VISITS

Snittjer Grain Company | Wellsburg


Valent | Osage


Cartersville Elevator | Nora Springs


We love to visit AAI members so we can better understand your business and concerns. If you would be interested in a member visit, contact Sally Thompson. sally@agribiz.org.


ASSOCIATION CALENDAR

June 6

IAAA Operation SAFE

Jefferson Municipal Airport | Jefferson, Iowa

(Rain Date June 7)


June 19

AAI Drone Workshop

10:00 AM | Agriculture Renewable Energy Center, Iowa Falls


June 21

AAI Animal Industry Committee Meeting

11:00 AM | AAI Main Office Board Room


June 27

Nurse Tank Testing Workshop

8:00 AM | CNH Ag Industry Information Center

Nevada, Iowa


June 29

AAI Board of Directors Meeting

10:00 AM | AAI Main Office Board Room


GOLF OUTINGS - REGISTER ONLINE


July 13

Emerald Hills Golf Club

Noon Shotgun Start | Okoboji, Iowa


August 24

Amana Colonies Golf Club

9:00 AM Shotgun Start | Amana, Iowa


September 14

Coldwater Golf Links

10:00 AM Shotgun Start | Ames, Iowa



AROUND THE INDUSTRY

AgGateway Mid-Year Meeting

June 12-15, 2023

Prairie Meadows Casino and Hotel

Altoona, Iowa


AgGateway welcomes Iowa Agribusiness Association members to attend its 2023 Mid-Year Meeting, June 12-15, at Prairie Meadows in Altoona, Iowa.


Technology stakeholders from across the agriculture value chain attend the Mid-Year Meeting to gain insight into the state of digital connectivity, and to find out more about the work of AgGateway. Representatives from Iowa cooperative Key Coop will be on hand and willing to share their experiences with adoption of connectivity technology that enables more efficiency, reduced shrinkage, and increased profits. 


For Conference information visit: 

2023 Mid-Year Meeting

Water Quality Cost Share Funding Available

Water quality and soil conservation cost share funding is available as part of the state’s Water Quality Initiative (WQI). These funds assist farmers with adopting proven practices, including planting cover crops, transitioning acres to no-till/strip-till or applying a nitrogen inhibitor.


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. Producers transitioning acres to no-till or strip-till are eligible for $10 per acre. New users can also receive $3 per acre for utilizing a nitrogen inhibitor when applying fall fertilizer.


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 may start submitting applications immediately through their local Soil and Water Conservation District offices. Farmers are encouraged to visit with their Soil and Water Conservation District staff to inquire about additional cost share funds available through other programs.

HIGHLIGHTS FROM THE NEWS

Grain storage costs will force elevators to lower bids, widen basis

Source: FeedStuffs

Grain Bins

The cost of storing grain, commonly referred to as the cost of carry, has soared to record highs due to rising interest rates, high commodity prices and increasing costs for labor, insurance, transportation and energy. That is putting a significant squeeze on grain elevators, which may be forced to lower their local bids on grain to manage through the unfavorable economics of holding commodities.


According to a new report from CoBank’s Knowledge Exchange, the interest-related cost of carry in the 2023-2024 crop year will increase 21% for corn, 42% for soybeans and 50% for all-wheat, year-over-year. Each of those costs is estimated to be the highest on record. The projections are based on the forecasted average annual interest rate for grain merchandisers of 7.75% for the 2023-2024 crop year, and USDA’s marketing year average price forecasts of $4.80/bu. for corn, $12.10/bu. for soybeans and $8.00/bu. for all-wheat. 


Financing the ownership of corn, wheat and soybean inventories is a major cost of carry for grain elevators. Interest expense as a percentage of the total cost of carry can vary widely among grain merchandisers and between crop years. But it can typically comprise one-quarter to one-third or more of a grain elevator’s total cost of storing grain and oilseeds.


“For grain elevators, the sharp rise in interest rates couldn’t have come at a worse time as they borrow higher-priced funds on commodities that have also remained at historically high prices,” said Tanner Ehmke, lead grains and oilseeds economist for CoBank. “And while grain elevators are motivated to move inventory as fast as possible to lower carrying costs, processors and end users will want to delay ownership of commodities to reduce their own inventory costs.” 



[...] Read Full Story

No-till revolution could stop Midwest topsoil loss in its tracks

Source: AgDaily

Intense agricultural activity beginning in the mid-1800s has eroded the U.S. Midwest’s topsoil, the rich upper layer of soil crops need to grow. Previous work has found that erosion causes nearly $3 billion in annual losses from lower crop productivity. But if more farmers adopt more sustainable “no-till” or “low-till” practices, costly erosion could be essentially halted, a new study finds.


Erosion and soil movement occur on farms when water runs across the land, wind removes fine dirt, and plows churn up and loosen the soil. The “churning” process is called tilling. Farmers till soil to loosen soil, mix in nutrients, and help suppress weed growth. But tilling can also expose more soil to wind and water, increasing erosion.


Co-authors of the new study previously found the erosion rate since the 1800s was about 2 millimeters per year, or two orders of magnitude faster than rates in pre-settler prairies. Across the Midwestern study area, about 40 percent of farms use less intensive, more sustainable alternatives to plow-based tilling. But erosion is still a big problem.


“Two millimeters per year is a lot,” said Jeffrey Kwang, a landscape modeler at the University of Minnesota who led the study. “It sounds slow, but for landscape processes, that is very fast.” The new model used in this study predicts that soil erosion is currently occurring at about 1 millimeter (0.04 inches) per year, Kwang said, “which is still a high rate.”


The new study builds on previous work that focused on the past and present by exploring the future fate of soils in the Midwest. Kwang simulated the next century of farming in the Midwest under conventional and more sustainable tilling scenarios and predicted how topsoil erosion and carbon loss would respond. His modeling focused on physical soil movement from plowing and tilling. It did not incorporate hydrologic models, as previous research on agricultural erosion has primarily focused on water rather than plowing practices.


[...] Read Full Story

With another 2.8-cent drop, diesel has fallen 16 of past 17 weeks

Source: FreightWaves

For the sixth week in a row and the 16th time in the past 17 weeks, the diesel price used for most fuel surcharges has declined.


The benchmark price was pegged by the Department of Energy/Energy Information Administration at $3.855 a gallon on Tuesday. That’s down 2.8 cents from the prior week. Since June 20 of last year — the high-water mark with a price of $5.81 — the weekly average retail diesel price is down more than $1.95 a gallon.


The drop in the DOE/EIA price came on a day when oil prices across the board experienced a significant downturn, for reasons that appeared to be tied completely to economic uncertainty over whether the debt ceiling deal negotiated over the weekend would hold. Equity markets, meanwhile, finished little changed after earlier weakness.


Ultra low sulfur diesel (ULSD) on the CME commodity exchange settled Tuesday at $2.2808 a gallon, down 8.85 cents from Friday. It was the lowest settlement for the ULSD contract since a $2.2387-per-gallon settlement on May 4.


The DOE/EIA price was released a day later than usual because of the Memorial Day holiday. There also was no CME settlement Monday.


Oil markets continue to sink even as there are more bullish rustlings among traders than bearish ones. Some of the market speculation centered on this weekend’s in-person OPEC+ group meeting in Vienna to discuss future strategy.


[...] Read Full Story

Lawsuit Targets EPA Treated-Seed Regs

Source: Progressive Farmer

Environmental groups asked a federal court on Wednesday to force the EPA to close what they say is a loophole in agency regulation that allows seeds treated with pesticides to go unregulated. The lawsuit was filed in the U.S. District Court for the District of Northern California.


The Center for Food Safety and Pesticide Action Network North America asked the court to declare the EPA in violation of the Administrative Procedure Act when it declared seeds coated with pesticides as treated articles exempted (TAE) from the same regulations required of pesticides.


The EPA in September 2022 rejected a 2017 petition filed by the groups asking the agency to regulate coated seeds. That was done after a court order.


The groups outline in the lawsuit how they believe EPA is mistaken in its classification of pesticide-coated seeds.


"EPA rests its petition denial on the claims that, not only are the seed and plant an 'article' under the exception, but the seed and living plant are the exact same article," the lawsuit said.


"According to EPA, because a seed (the 'article' treated) becomes a living plant, protection beyond the seed itself and the presence of neonicotinoids in the living tissues of the whole plant does not negate the application of the TAE. Thus, for EPA's interpretation in the denial to make logical sense, it would have to equate the seed and the whole plant, as EPA has stated in numerous places that only articles treated for the sole protection of the article itself may be exempted under the TAE."


EPA implemented regulations establishing treated article exemption in 1988.


Seeds treated with neonicotinoids are at the center of environmental contamination being cleaned up by seed companies at a former ethanol plant in Mead, Nebraska, a town of 569 residents about 40 miles north of Lincoln.


[...] Read Full Story

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