Trouble viewing? View as Webpage
May 7, 2020
A five-minute summary of AAI, regulation, and industry activities for members of the largest state agribusiness association in the nation.
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 IN ACTION
Pesticide Certification Backlog and Crop Planting Near Completion 

During the Crop Production conference call with the Iowa Department of Agriculture and Land Stewardship (IDALS) on Thursday, there was wide consensus that corn and soybeans are largely in the ground despite the difficulties the novel coronavirus has brought this spring. Updates from participants were largely focused on issues other than the growing season.  

For its part, IDALS reports that commercial pesticide applicator certification applications from March are nearly complete with a much smaller number of applications needing processed from April. There are also plans in the works to provide a modified version of in person testing, according to Deputy Secretary Julie Kenney.  

During the call, participants shared that the Paycheck Protection Program has raised lots of questions and the recent Iowa Supreme Court ruling is also raising concerns about how grain will be handled during harvest. It was also noted that there is a new challenge with maintaining social distancing and protecting employees now that seed is in the ground and farmers are wanting more direct contact with service providers. 

Many are looking ahead to this fall when grain consumption may begin to again increase. 

Association leadership has played a large role in keeping the membership represented during this unprecedented time. These individuals have provided excellent input and guidance regarding issues of concern and developing new ideas to address those concerns. 

In addition to participation from AAI CEO Joel Brinkmeyer and other staff members, association representation on the weekly call include:  

  • Shelly Kruse, GROWMARK, Inc., AAI Executive Committee, AAI Board Secretary 
  • Mark White, Smith Fertilizer & Grain, AAI At-Large Director, Transportation Committee Chair 
  • Bill Beukema, Stateline Coop, AAI Divisional Grain Director, Grain Committee Chair 
  • Tom Hauschel, Heartland Co-op, Grain Committee Member 
  • Hovie Tinsman, Twin State, Inc., Past Chairman (2004) 

The association would like to recognize the dedication of these individuals for participating in the weekly Crop Production calls for the last seven weeks.  

If you, as a member company, have concerns or ideas you would like brought to the group calls, please contact Reilly Vaughan 515-250-6011 / reilly@agribiz.org or Joel Brinkmeyer 515-450-8630 / jbrinkmeyer@agribiz.org.  

Other associations represented during the weekly calls include Iowa Corn, Iowa Soybean Association, Iowa Farm Bureau, ISU CALS Dean Dan Robison, other ISU staff, and Secretary Mike Naig and staff. 
Efforts Underway to Limit Liability for Essential Businesses 

As essential work carries on at the direction of executive orders and Defense Production Act directives, and in an effort to stabilize the food supply chain, employers across the nation are facing increased risks of litigation and punitive claims by employees exposed to COVID-19 – a risk that only grows as state economies begin to reopen.  

A letter with wide support from industry groups, including our national partners American Feed Industry Association, National Grain and Feed Association, Agricultural Retailers Association, and The Fertilizer Institute, was sent to federal legislative leaders this week. The letter seeks to provide businesses with targeted and limited safe harbors for employers acting in good faith, in the best interest of the public good. Note this is not a blanket protection from all liability, but rather protection for companies working to provide essential goods in the safest manner possible.  

Agricultural Businesses Eligible for Disaster Grant Loan 

On Monday, the Small Business Administration announced that farms and other agricultural businesses will be eligible to apply for grants and low-interest, long-term loans through the Economic Injury Disaster Loan (EIDL) program. For over 30 years, the SBA has been prohibited by law for providing disaster assistance to agricultural businesses. The EIDL portal opened on Monday to accept applications.  

Congress fixed the prohibition to allow agricultural businesses access to the SBA grants and loans in the Coronavirus Aid, Relief and Economic Security Act (CARES Act), a coronavirus relief package. For businesses that filled out applications prior to being eligible, there is no need to reapply. 

The EIDL portal can be accessed here.
Ag Products Backing Up In The System 

During the weekly IDALS Livestock Teleconference on Tuesday attended by AAI CEO Joel Brinkmeyer, commodity group representatives shared how the COVID-19 pandemic is affecting meat, poultry, egg, and milk production in the state.  

  • Pork processing is down 35% from the same time last year 
  • Beef processing is down 38% from the same time last year 
  • Dairy producers are targeting a 10% reduction 
  • Egg flocks are being reduced by 20% or more 

The backlog of animals will be causing issues both short term and long term, including changes in feed and reduction of herds. Commodity prices are low and supply is high, but the consumer is facing shortages as Wendy’s stops selling burgers at some stores and Costco limits meat buying. Tyson executives perhaps summed it up most succinctly in their recent description of the situation, “The food chain is broken.” 

One small glimmer of positive news – though operating at a slower pace that normal, most packing plants in the state are currently functioning. 
Pork Resource Center 

Because of the extreme situation, Iowa Department of Agriculture and Land Stewardship launched a Resource Coordination Center (RCC) to help Iowa livestock producers who have been impacted by the COVID-19 supply chain disruptions. The RCC is a collaboration with the Iowa Pork Producers Association (IPPA), the Iowa Pork Industry Center and Iowa State University Extension and Outreach. 

Through the RCC, livestock industry experts, state agencies and technical specialists will help producers explore every option to harvest livestock and meet the protein needs of Iowans. The RCC will also connect producers with technical resources as they work through difficult and emotional decisions, including animal welfare euthanasia and disposal. 

Iowa livestock producers can call the RCC at (515) 725-1005, Monday through Friday between 8 a.m.-4:30 p.m., or fill out a help form anytime at iowafarmerhelp.com .

COVID-19 has caused supply chain disruptions that are forcing producers to make emotional and stressful decisions. If producers are feeling overwhelmed, they can call the Iowa Concern Hotline at 1-800-447-1985 to get free, confidential support, 24/7. 
AAI Encourages Commercial Applicators to Participate in SeedFieldCheck by FieldWatch

Those registered with the FieldWatch system through the state of Iowa as an applicator have access to SeedFieldCheck reporting which shows where field workers are currently active and where seed companies plan to have active workers in the following 24 hours. 

SeedFieldCheck is integrated into the existing FieldWatch crop and apiary registry and will help seed companies more effectively communicate the location and presence of seed field workers to pesticide applicators. The information will be available in near real-time allowing seed companies the ability to make edits and update plans quickly and replace the endless circulation of emails and paper or electronic maps to targeted applicators. 

The Agribusiness Association of Iowa encourages all commercial applicators to register with FieldWatch. Companies and pesticide applicators who are currently registered with FieldWatch will need to specifically add the SeedFieldCheck capability. This will allow a full report of sensitive crops, apiaries, and active field workers to registered users.

SeedFieldCheck is a pilot project launched in the state of Iowa by the Iowa Seed Association, Iowa Agricultural Aviation Association and FieldWatch®, and includes participation by Bayer, Becks, Corteva, Remington Seeds, and Syngenta. 

The FieldWatch registry was initially implemented in Iowa in 2016 through a monetary award presented to IDALS by the Agribusiness Association of Iowa Foundation. Initial donors include the Iowa Agriculture Aviation Association, Syngenta Crop Protection, Dow AgroScience, GROWMARK Foundation, Monsanto, BASF, Bayer CropScience, Iowa Wine Growers Association, Crop Production Services, Inc., Helena Chemical, and Meridian Agriculture.

To read the IDALS press release click here.
AAI Calendar of Meetings & Events


---

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.

---

AAI Board of Directors Meeting
July 9
10:00 AM

Golf Tournament #1
July 21
Fox Ridge Golf Course
Dike, Iowa
(tentative)

Golf Tournament #2
July 22
Emerald Hills Golf Course
Arnolds Park, Iowa
(tentative)

Golf Tournament #3
August 10
The Legacy Golf Club
Norwalk, Iowa
(tentative)

Golf Tournament #4
September 17
TBA Location
(tentative)

---


  • Iowa cattle producers concerned coronavirus assistance may not be enough 

  • Lack of funding for depopulation scenarios and new trade negotiations begin 

  • Farmers planted a record amount of soybeans last week 

  • US Ag Secretary hopeful processing plants will open soon 

  • A major Iowa agriculture show is changing its name 

Watch episodes from the past week anytime online!

HIGHLIGHTS FROM THE NEWS
Iowa Senator Joni Ernst is now calling on the U.S. Department of Agriculture to support egg farmers affected by COVID-19.

In a letter to USDA Secretary Sonny Perdue, Ernst urged the department to include egg producers in the Coronavirus Farm Assistance Program and to consider buying liquid egg product to distribute to families in need.

In the letter, she wrote, "Our farmers and ranchers are doing their part to help the nation navigate the effort to contain the COVID-19 outbreak. Iowa’s egg industry is no different. Iowa is home to over 55 million egg laying hens. Most of Iowa’s egg production goes toward supporting our nation’s commercial food service. With restaurants and other commercial facilities closed down or limiting operations, our egg industry has seen a drastic drop in demand and as a result some have had to dump product.”


The Trump administration is expressing confidence that the worst of the meatpacking disruptions is behind us. At a meeting in the Oval Office on Wednesday, Agriculture Secretary Sonny Perdue predicted packing plants would be fully operational within 10 days. “I think we've turned the corner,” he said.

The meeting, which included Iowa Gov. Kim Reynolds and Vice President Mike Pence, came one day after Perdue directed meatpackers that have slowed or closed plants to document that they are in compliance with worker safety guidelines issues by OSHA and CDC. He said plants should get back in operation as “soon as they are able” but didn’t threaten enforcement action. 

On Friday, Pence will head to Iowa, where he’ll hold a roundtable with ag and food supply leaders at the headquarters of Hy-Vee, a Midwest supermarket chain, one of many grocers that are limiting consumer meat purchases.


Iowa Attorney General Tom Miller joined other state attorneys general in calling Tuesday for a federal investigation into suspected price fixing among beef processors.

In a letter to U.S. Attorney General William Barr, Miller and the top prosecutors from nine other states asked the U.S. Department of Justice to look into whether the country’s biggest beef processors are colluding against cattle ranchers and consumers. The attorneys general said the price of boxed beef remains “healthy” even as cattle futures have dropped.

Cargill, JBS USA, National Beef and Tyson Foods account for about 80% of beef processing in the United States.

“Given the concentrated market structure of the beef industry it may be particularly susceptible to market manipulation, particularly during times of food insecurity, such as the current COVID-19 crisis,” the attorneys general wrote.


Agriculture and manufacturing are at the heart of Iowa’s economy, accounting for 38% of the state’s gross domestic product, according to a new economic analysis from Iowa State University.

The report goes beyond traditional jobs and income data reported by the U.S. Bureau of Economic Analysis and measures all labor and supplies required to provide a commodity or service for export. Dave Swenson, associate scientist of economics, says the model provides a more complete picture of an industry’s economic impact.

“It allows important sectors like agriculture and manufacturing to declare the fraction of the total economy that they support,” Swenson said. “Another advantage is that it helps sort out industries that primarily produce items sold to out-of-state buyers and sectors that primarily support other in-state industries or households.”


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.


BE ENGAGED | BE INFORMED
WATCH THE AGRIBUSINESS REPORT EACH DAY

Cedar Rapids - KCRG
Des Moines - WHO-TV
Ottumwa - KYOU-TV

You can follow David Geiger on Twitter to get all things agribusiness:
 @GEIGERREPORTS


STAY ENGAGED WITH AAI

The Agribusiness Association of Iowa is on multiple social media platforms. We publish event and learning session updates on our social media accounts.

Twitter

Facebook

Stay Connected | Stay Informed