Sustainable aviation fuel could grow into the largest new market ever seen for U.S. farm commodities thanks to the start of production at LanzaJet Freedom Pines Fuels. However, groups in Midwestern states say they could miss out on the opportunity without low-carbon ethanol, which requires carbon capture and sequestration.

Iowa Renewable Fuels Association executive director Monte Shaw says, "Today and every day going forward, American farmers and ethanol producers are losing demand until we get carbon capture and sequestration online." Iowa Corn Usage and Production Committee Chair Dan Keitzer adds, “LanzaJet Freedom Pines Fuels will use a variety of low carbon sustainable ethanol, making this an eye-opening experience to what Iowa corn farmers could expect to be a part of."

No Iowa ethanol plant currently has a carbon intensity score low enough to qualify as an SAF feedstock. Only one plant in the U.S., using CCS, is currently producing SAF-friendly ethanol.

Sustainable aviation fuel could grow into the largest new market ever seen for U.S. farm commodities thanks to the start of production at LanzaJet Freedom Pines Fuels. However, groups in Midwestern states say they could miss out on the opportunity without low-carbon ethanol, which requires carbon capture and sequestration.Iowa Renewable Fuels Association executive director Monte Shaw says, "Today and every day going forward, American farmers and ethanol producers are losing demand until we get carbon capture and sequestration online." Iowa Corn Usage and Production Committee Chair Dan Keitzer adds, “LanzaJet Freedom Pines Fuels will use a variety of low carbon sustainable ethanol, making this an eye-opening experience to what Iowa corn farmers could expect to be a part of."No Iowa ethanol plant currently has a carbon intensity score low enough to qualify as an SAF feedstock. Only one plant in the U.S., using CCS, is currently producing SAF-friendly ethanol.-NAFB

First Sustainable Aviation Fuel Plant Represents Opportunity

The American Farm Bureau Federation concluded its 2024 Annual Convention setting policy direction for the organization this year.

Passing a farm bill this year is the top priority for Farm Bureau members, followed by labor and artificial intelligence data privacy. Delegates voted to create new policy to address the growth of artificial intelligence in agriculture, which has the potential to enhance farming practices and conserve resources, but AFBF says privacy rights must be respected.

Delegates also voted to stabilize wage rates for guest workers and revise H-2A and H-2B programs.They reaffirmed their support for increasing reference prices in the farm bill and maintaining a strong crop insurance program, including expanding eligibility to ensure more commodities are covered. Additionally, Farm Bureau delegates agreed to say in the Rural Communications section of the policy book,

"We support vehicle manufacturers continuing to include AM radio in vehicles.” Beyond policy changes, AFBF President Zippy Duvall and Vice President Scott VanderWal were unanimously re-elected for another two-year term.

The American Farm Bureau Federation concluded its 2024 Annual Convention setting policy direction for the organization this year.Passing a farm bill this year is the top priority for Farm Bureau members, followed by labor and artificial intelligence data privacy. Delegates voted to create new policy to address the growth of artificial intelligence in agriculture, which has the potential to enhance farming practices and conserve resources, but AFBF says privacy rights must be respected.Delegates also voted to stabilize wage rates for guest workers and revise H-2A and H-2B programs.They reaffirmed their support for increasing reference prices in the farm bill and maintaining a strong crop insurance program, including expanding eligibility to ensure more commodities are covered. Additionally, Farm Bureau delegates agreed to say in the Rural Communications section of the policy book,"We support vehicle manufacturers continuing to include AM radio in vehicles.” Beyond policy changes, AFBF President Zippy Duvall and Vice President Scott VanderWal were unanimously re-elected for another two-year term.-NAFB

American Farm Bureau Establishes 2024 Policies

As planting season approaches, Missouri corn growers are getting the opportunity to air their concerns to officials with the Missouri Corn Growers Association.  

The association will hold its District One winter meeting tomorrow in Mound City. 

Missouri Corn CEO Bradley Schad says these meetings are an opportunity to let growers know their voices are being heard 

"We just want to make sure that we're doing everything we can to help them on their farm to where they can stay in their seat on the tractor or combine whatever that be, we're getting into planting season," Schad tells KFEQ/St. Joseph Post. "And just before we get in there, we want to reach out to them and see if there's anything at all that we need to be doing more of for them, we're doing everything we can that we know of." 

The association has held a series of meetings throughout the month and will have more coming over the next month to hear growers ahead of planting season. 

Schad says one of the biggest challenges growers face is the markets. 

Despite a lingering drought that plagued last year's growing season, Schad says Missouri saw a great corn harvest 

"We still averaged 153 according to USDA and we're going to produce 561 million bushels supposedly from what USDA says," Schad points out. "So, it's really exciting that we had a monumental drought and still came out with yields like that." 

The District One meeting will be held at 6pm at the Mound City Distillery.   

By MATT PIKE St. Joseph Post As planting season approaches, Missouri corn growers are getting the opportunity to air their concerns to officials with the Missouri Corn Growers Association. The association will hold its District One winter meeting tomorrow in Mound City. Missouri Corn CEO Bradley Schad says these meetings are an opportunity to let growers know their voices are being heard "We just want to make sure that we're doing everything we can to help them on their farm to where they can stay in their seat on the tractor or combine whatever that be, we're getting into planting season," Schad tells KFEQ/St. Joseph Post. "And just before we get in there, we want to reach out to them and see if there's anything at all that we need to be doing more of for them, we're doing everything we can that we know of." The association has held a series of meetings throughout the month and will have more coming over the next month to hear growers ahead of planting season. Schad says one of the biggest challenges growers face is the markets. Despite a lingering drought that plagued last year's growing season, Schad says Missouri saw a great corn harvest "We still averaged 153 according to USDA and we're going to produce 561 million bushels supposedly from what USDA says," Schad points out. "So, it's really exciting that we had a monumental drought and still came out with yields like that." The District One meeting will be held at 6pm at the Mound City Distillery.

With planting season nearing corn growers concerns will be heard during local meeting

New farm bill policy disagreements on top of spending bills and other fights are adding more hurdles to passing a farm bill this year.

Senate Ag Chair Debbie Stabenow alluded to her proposal in a recent interview, to help farmers without pulling funds from feeding or climate programs key for Democrats.

But it would direct funds away from ARC and PLC reference prices to crop insurance.

“We have over 130 different crops that use crop insurance extremely effectively, and it’s paid out immediately when there’s a disaster. We have 22 crops that utilize the commodity title, ARC and PLC, also important. But it’s delayed in the payout, usually by a year.”

Driving her point further, Stabenow says many PLC crops already benefit from reference price ‘accelerators’ in the ’18 farm bill.

“If we only continue current law, over half the commodities that get PLC, will see a ten to 15-percent increase, currently. And so, to me, we should be focusing on those who aren’t.”

Politico later reported Stabenow’s plan would force producers who want to enroll in the new crop insurance offering to opt out ARC and PLC.

Top Ag Republican John Boozman told the paper his staff’s looking at the idea, but other Republicans and some Democrats are not thrilled with forcing farmers to choose.

The American Farm Bureau continues to argue for both an increase in reference price support triggers and crop insurance improvements.

New farm bill policy disagreements on top of spending bills and other fights are adding more hurdles to passing a farm bill this year.Senate Ag Chair Debbie Stabenow alluded to her proposal in a recent interview, to help farmers without pulling funds from feeding or climate programs key for Democrats.But it would direct funds away from ARC and PLC reference prices to crop insurance.“We have over 130 different crops that use crop insurance extremely effectively, and it’s paid out immediately when there’s a disaster. We have 22 crops that utilize the commodity title, ARC and PLC, also important. But it’s delayed in the payout, usually by a year.”Driving her point further, Stabenow says many PLC crops already benefit from reference price ‘accelerators’ in the ’18 farm bill.“If we only continue current law, over half the commodities that get PLC, will see a ten to 15-percent increase, currently. And so, to me, we should be focusing on those who aren’t.”Politico later reported Stabenow’s plan would force producers who want to enroll in the new crop insurance offering to opt out ARC and PLC.Top Ag Republican John Boozman told the paper his staff’s looking at the idea, but other Republicans and some Democrats are not thrilled with forcing farmers to choose.The American Farm Bureau continues to argue for both an increase in reference price support triggers and crop insurance improvements.-NAFB

More Farm Bill Hurdles

More than 70 current and past state FFA officers started the new year by exploring Australia and the various types of agriculture the country offers.

It was part of the International Leadership Seminar for State Officers, supported by FFA corporate donors Bungee and John Deere. While in Australia, the students explored Sydney. Then they traveled to Canberra, where they visited with the counselor for agricultural affairs, agricultural specialists and agricultural marketing specialists based at the U.S. Embassy, a representative from the National Farmers' Federation, and a representative from the Australian Rural Leadership Program.

They visited perennial pastures, Angus cattle farms, and more. While visiting the Darlington Point District, they explored one of Australia’s most productive farmland, where rice and other cereal crops, fruits and vegetables, grapes, and citrus are grown. Students also visited Australia's only independent agricultural college. They wrapped up their journey in Melbourne, exploring the city and visiting a wildlife sanctuary.

More than 70 current and past state FFA officers started the new year by exploring Australia and the various types of agriculture the country offers.It was part of the International Leadership Seminar for State Officers, supported by FFA corporate donors Bungee and John Deere. While in Australia, the students explored Sydney. Then they traveled to Canberra, where they visited with the counselor for agricultural affairs, agricultural specialists and agricultural marketing specialists based at the U.S. Embassy, a representative from the National Farmers' Federation, and a representative from the Australian Rural Leadership Program.They visited perennial pastures, Angus cattle farms, and more. While visiting the Darlington Point District, they explored one of Australia’s most productive farmland, where rice and other cereal crops, fruits and vegetables, grapes, and citrus are grown. Students also visited Australia's only independent agricultural college. They wrapped up their journey in Melbourne, exploring the city and visiting a wildlife sanctuary.-NAFB

FFA Members Explore Agriculture in Australia

A bill introduced last week in the Iowa Senate seeks to provide resources to small grocery store owners fighting to keep their stores open amidst economic and workforce challenges and competition from big box retailers.

The legislation would create the Grocer Reinvestment Fund and establish a grant and loan program to help locally-owned grocery stores selling perishable foods invest in their businesses. Cynthia Farmer, policy associate with the Center for Rural Affairs, says, "The Grocer Reinvestment Fund and Program would provide financial support to grocers for cost-saving efforts and business efficiency to ensure long-term sustainability."

The Iowa Economic Development Authority will oversee the grant and loan program if the bill passes. Funding will be available to grocery stores that sell canned and frozen food; fresh fruits and vegetables; and fresh meat, fish, and poultry. The business must employ 25 or fewer individuals and plan to create new jobs or increase compensation for existing employees.

A bill introduced last week in the Iowa Senate seeks to provide resources to small grocery store owners fighting to keep their stores open amidst economic and workforce challenges and competition from big box retailers.The legislation would create the Grocer Reinvestment Fund and establish a grant and loan program to help locally-owned grocery stores selling perishable foods invest in their businesses. Cynthia Farmer, policy associate with the Center for Rural Affairs, says, "The Grocer Reinvestment Fund and Program would provide financial support to grocers for cost-saving efforts and business efficiency to ensure long-term sustainability."The Iowa Economic Development Authority will oversee the grant and loan program if the bill passes. Funding will be available to grocery stores that sell canned and frozen food; fresh fruits and vegetables; and fresh meat, fish, and poultry. The business must employ 25 or fewer individuals and plan to create new jobs or increase compensation for existing employees.-NAFB

Iowa Senate Bill Would Support Small Grocers

Small family farms were more likely to have greater financial vulnerability than other farms, according to data from USDA’s Economic Research Service.

Researchers calculated the operating profit margin by taking the ratio of profit to gross farm income to find that in 2022, between 52 and 79 percent of small family farms, depending on the farm type, were at the high-risk level. If the operating profit margin is less than ten percent, the operation is considered at high financial risk.

When the measure is between 10 and 25 percent, the operation is considered at medium financial risk, and if above 25 percent, the operation is at low financial risk. A majority of small-scale family farms, which have a gross cash farm income of up to $350,000, earn most of their income from off-farm sources. For these farms, farm profitability is not necessarily essential to the survival of the household.

Small family farms make up 88 percent of all farms but account for only 19 percent of the total value of production.

Small family farms were more likely to have greater financial vulnerability than other farms, according to data from USDA’s Economic Research Service.Researchers calculated the operating profit margin by taking the ratio of profit to gross farm income to find that in 2022, between 52 and 79 percent of small family farms, depending on the farm type, were at the high-risk level. If the operating profit margin is less than ten percent, the operation is considered at high financial risk.When the measure is between 10 and 25 percent, the operation is considered at medium financial risk, and if above 25 percent, the operation is at low financial risk. A majority of small-scale family farms, which have a gross cash farm income of up to $350,000, earn most of their income from off-farm sources. For these farms, farm profitability is not necessarily essential to the survival of the household.Small family farms make up 88 percent of all farms but account for only 19 percent of the total value of production.-NAFB

Small Family Farms at Highest Financial Risk

Agriculture Secretary Tom Vilsack is in Georgia promoting USDA's school meals and sustainable aviation fuel this week.

Vilsack Tuesday&nbsp; is visiting a high school in East Point, Georgia, participating in a roundtable with child nutrition efforts. The discussion focuses on efforts to expand access to healthy meals for more students and improve the nutritional quality of those meals. Wednesday, Vilsack will provide Keynote remarks at the grand opening of LanzaJet Freedom Pines Fuels in Soperton, Georgia. The facility is the world’s first facility dedicated to the production of sustainable aviation fuel from ethanol.

The visit comes as the Environmental Protection Agency released Public Data for the Renewable Fuel Standard, including final production volumes for 2023. EPA’s data shows that U.S. production of biomass-based diesel – including biodiesel, renewable diesel, sustainable aviation fuel, and heating oil – reached four billion gallons in 2023. Both domestic production and use of advanced biomass-based diesel grew by one billion gallons in 2023, compared to 2022.

Agriculture Secretary Tom Vilsack is in Georgia promoting USDA's school meals and sustainable aviation fuel this week.Vilsack Tuesday&nbsp; is visiting a high school in East Point, Georgia, participating in a roundtable with child nutrition efforts. The discussion focuses on efforts to expand access to healthy meals for more students and improve the nutritional quality of those meals. Wednesday, Vilsack will provide Keynote remarks at the grand opening of LanzaJet Freedom Pines Fuels in Soperton, Georgia. The facility is the world’s first facility dedicated to the production of sustainable aviation fuel from ethanol.The visit comes as the Environmental Protection Agency released Public Data for the Renewable Fuel Standard, including final production volumes for 2023. EPA’s data shows that U.S. production of biomass-based diesel – including biodiesel, renewable diesel, sustainable aviation fuel, and heating oil – reached four billion gallons in 2023. Both domestic production and use of advanced biomass-based diesel grew by one billion gallons in 2023, compared to 2022.-NAFB

Vilsack Traveling to Georgia to Tout SAF, School Meals

Quicker expensing of farm equipment and tax breaks for high-interest costs are part of a sweeping bipartisan tax bill that just advanced to the full House.

The bill reported on a 40 to three vote by the House Ways and Means Committee restores full and immediate expensing for farm and other equipment.&nbsp; Missouri Republican Representative and Committee Chairman Jason Smith

“This bill also expands 100 percent expensing, which allows employers to fully deduct the cost of equipment and machines that increase productivity and worker wages. When this policy was originally implemented, investment in American businesses grew 20 percent.”

But farm and other business face another challenge addressed in the bipartisan House and Senate bill.

“Right now, small and mid-sized businesses are getting hammered by interest rates that are the highest in 23 years. Restoring this provision will create more than 850,000 jobs and 58 billion in additional take-home pay for workers.”

And more broadly, the bill helps rural communities.

“This bill includes tax relief for communities across the country that have been upended by manmade and natural disasters.”

Hurricanes, floods and wildfires among them.&nbsp; Separately and less likely to become law lacking bipartisan backing, a reprise of earlier death tax repeal bills, the latest by Iowa Republican Randy Feenstra with support from 162 lawmakers.

Quicker expensing of farm equipment and tax breaks for high-interest costs are part of a sweeping bipartisan tax bill that just advanced to the full House.The bill reported on a 40 to three vote by the House Ways and Means Committee restores full and immediate expensing for farm and other equipment.&nbsp; Missouri Republican Representative and Committee Chairman Jason Smith“This bill also expands 100 percent expensing, which allows employers to fully deduct the cost of equipment and machines that increase productivity and worker wages. When this policy was originally implemented, investment in American businesses grew 20 percent.”But farm and other business face another challenge addressed in the bipartisan House and Senate bill.“Right now, small and mid-sized businesses are getting hammered by interest rates that are the highest in 23 years. Restoring this provision will create more than 850,000 jobs and 58 billion in additional take-home pay for workers.”And more broadly, the bill helps rural communities.“This bill includes tax relief for communities across the country that have been upended by manmade and natural disasters.”Hurricanes, floods and wildfires among them.&nbsp; Separately and less likely to become law lacking bipartisan backing, a reprise of earlier death tax repeal bills, the latest by Iowa Republican Randy Feenstra with support from 162 lawmakers.-NAFB

Ag Tax Breaks Win House Panel Boost

Following shifts in U.S. food spending during the COVID-19 pandemic, food-at-home spending was only 2.7 percent higher in November 2023 compared with November 2019.

Food-away-from-home spending remained elevated at 14.6 percent higher, according to new data from USDA’s Economic Research Service. After an initial jump in inflation-adjusted food-at-home spending in March through May 2020, the spending leveled off, averaging just 2.8 percent higher in December 2020 compared with 2019.

Even as prices increased throughout 2021 and 2022, inflation-adjusted food-at-home spending also increased, with monthly spending in these years averaging 7.2 percent higher than the corresponding months in 2019. Food at home spending has trended back toward pre-pandemic levels since the peak difference of 9.5 percent in March 2022.

By contrast, food away-from-home spending initially fell during the pandemic but reversed quickly and outpaced 2019 spending starting in June 2021. Food at home spending peaked at 14.8 percent higher in March 2023 compared with March 2019.

Following shifts in U.S. food spending during the COVID-19 pandemic, food-at-home spending was only 2.7 percent higher in November 2023 compared with November 2019.Food-away-from-home spending remained elevated at 14.6 percent higher, according to new data from USDA’s Economic Research Service. After an initial jump in inflation-adjusted food-at-home spending in March through May 2020, the spending leveled off, averaging just 2.8 percent higher in December 2020 compared with 2019.Even as prices increased throughout 2021 and 2022, inflation-adjusted food-at-home spending also increased, with monthly spending in these years averaging 7.2 percent higher than the corresponding months in 2019. Food at home spending has trended back toward pre-pandemic levels since the peak difference of 9.5 percent in March 2022.By contrast, food away-from-home spending initially fell during the pandemic but reversed quickly and outpaced 2019 spending starting in June 2021. Food at home spending peaked at 14.8 percent higher in March 2023 compared with March 2019.-NAFB

Food-at-home Spending Drops Close to pre-COVID Levels

American Farm Bureau Federation President Zippy Duvall encouraged AFBF members to press Congress to pass a new Farm Bill.

Speaking at the AFBF annual convention in Salt Lake City, Utah, which kicked off Sunday, Duvall told members of AFBF, “I’m asking you to send a resounding message to Congress to deliver a new farm bill for our farms and our country.” Duvall continued, “The road to a new farm bill has become longer than any of us would have liked, but together we can see it through.”

Many believe Congress needs to act in the first half of the year to complete a farm bill and avoid the thick of election season this fall. Representative Blake Moore, a Republican from Utah, told the audience making a personal connection with lawmakers works best. He says, “Most members of Congress, whether they have a ‘D’ or an ‘R’ in front of their name, they do believe there is a need for strong agriculture.”

American Farm Bureau Federation President Zippy Duvall encouraged AFBF members to press Congress to pass a new Farm Bill.Speaking at the AFBF annual convention in Salt Lake City, Utah, which kicked off Sunday, Duvall told members of AFBF, “I’m asking you to send a resounding message to Congress to deliver a new farm bill for our farms and our country.” Duvall continued, “The road to a new farm bill has become longer than any of us would have liked, but together we can see it through.”Many believe Congress needs to act in the first half of the year to complete a farm bill and avoid the thick of election season this fall. Representative Blake Moore, a Republican from Utah, told the audience making a personal connection with lawmakers works best. He says, “Most members of Congress, whether they have a ‘D’ or an ‘R’ in front of their name, they do believe there is a need for strong agriculture.”-NAFB

AFBF Makes Call for Farm Bill Passage

Agriculture Secretary Tom Vilsack Monday announced USDA is investing $207 million in renewable energy and domestic fertilizer projects.

Vilsack made the announcement at the 105th annual American Farm Bureau Federation convention in Salt Lake City, Utah. Vilsack says, “The investments announced will expand access to renewable energy infrastructure and increase domestic fertilizer production, all while creating good-paying jobs and saving people money on their energy costs that they can then invest back into their businesses and communities.”

USDA is investing in projects in 42 states, funded through the Rural Energy for America Program and the Fertilizer Production Expansion Program. The Rural Energy for America Program awards total $157 million for 675 projects in 42 states. Projects financed through the Fertilizer Production Expansion Program will help U.S. farmers increase independent, domestic fertilizer production.

Agriculture Secretary Tom Vilsack Monday announced USDA is investing $207 million in renewable energy and domestic fertilizer projects.Vilsack made the announcement at the 105th annual American Farm Bureau Federation convention in Salt Lake City, Utah. Vilsack says, “The investments announced will expand access to renewable energy infrastructure and increase domestic fertilizer production, all while creating good-paying jobs and saving people money on their energy costs that they can then invest back into their businesses and communities.”USDA is investing in projects in 42 states, funded through the Rural Energy for America Program and the Fertilizer Production Expansion Program. The Rural Energy for America Program awards total $157 million for 675 projects in 42 states. Projects financed through the Fertilizer Production Expansion Program will help U.S. farmers increase independent, domestic fertilizer production.-NAFB

USDA Investing $207 Million in Clean Energy and Domestic Fertilizer Projects

Congress has voted to extend temporary funding again to keep the government open, but in the process, likely produced more delays in writing a farm bill and more frustration among Ag members. “No progress” is how GOP Senator Joni Ernst described farm bill efforts almost four months after the last farm bill expired and was extended by one year.

That as House and Senate lawmakers extended temporary funding until March to keep USDA and other federal agencies open. Iowa Senator Ernst was asked outside the Senate about the impact of continued fights over full-year spending bills on the farm bill.

“Exactly, I mean it will affect the farm (bill). It will affect everything else, so we need to get our work done, but you know what the problem is. Chuck Schumer’s not allowing us to bring these approps bills across the floor of the Senate.”

The Senate just passed just three of 12 full-year spending bills, the House seven, while defeating USDA’s over a mail-order abortion pill rider and farm and other cuts. Ag Democrats are also frustrated. Senate Ag Chair Debbie Stabenow.

“There’ve been many delays, as it relates to the churning and the chaos.”

With more to come as House Speaker Johnson faces renewed pressure from Freedom Caucus conservatives to fight the Senate over social policy and border immigration riders. And fights continue for scarce farm bill dollars. Ernst on Secretary Vilsack’s focus on CCC funds as a solution.

“I don’t know that that’s the magic bullet. But he may know more than I do. I hope he does. But they need to sit down at the table together between Chairman Stabenow, between ranking member Boozman and Secretary Vilsack.”

Congress has voted to extend temporary funding again to keep the government open, but in the process, likely produced more delays in writing a farm bill and more frustration among Ag members. “No progress” is how GOP Senator Joni Ernst described farm bill efforts almost four months after the last farm bill expired and was extended by one year.That as House and Senate lawmakers extended temporary funding until March to keep USDA and other federal agencies open. Iowa Senator Ernst was asked outside the Senate about the impact of continued fights over full-year spending bills on the farm bill.“Exactly, I mean it will affect the farm (bill). It will affect everything else, so we need to get our work done, but you know what the problem is. Chuck Schumer’s not allowing us to bring these approps bills across the floor of the Senate.”The Senate just passed just three of 12 full-year spending bills, the House seven, while defeating USDA’s over a mail-order abortion pill rider and farm and other cuts. Ag Democrats are also frustrated. Senate Ag Chair Debbie Stabenow.“There’ve been many delays, as it relates to the churning and the chaos.”With more to come as House Speaker Johnson faces renewed pressure from Freedom Caucus conservatives to fight the Senate over social policy and border immigration riders. And fights continue for scarce farm bill dollars. Ernst on Secretary Vilsack’s focus on CCC funds as a solution.“I don’t know that that’s the magic bullet. But he may know more than I do. I hope he does. But they need to sit down at the table together between Chairman Stabenow, between ranking member Boozman and Secretary Vilsack.”

 Frustration Builds Over Farm Bill Delays

Crop Life America and several other groups joined together on Capitol Hill to urge immediate action by lawmakers to renew the Miscellaneous Tariff Bill.

“A passage of the Miscellaneous Tariff Bill that’s fully retroactive would help farmers’ access to the essential pesticide products they need to grow food for the U.S. and the World,” CropLife America said in a statement. “A renewed MTB would mean lower input prices resulting in decreased price pressures for U.S. farmers, ranchers, and consumers.”

The American Chemistry Council was another of the groups pushing for renewal of the MTB.

“The bill would support advanced manufacturing in the United States and domestic chemical production used to make products in key agriculture, food production, and industrial sectors, including information technology, renewable energy, and automotive goods,” said the ACC.

The previous MTB expired in December 2020, and since then, businesses continued to pay $1.3 million per day in tariffs.

Crop Life America and several other groups joined together on Capitol Hill to urge immediate action by lawmakers to renew the Miscellaneous Tariff Bill.“A passage of the Miscellaneous Tariff Bill that’s fully retroactive would help farmers’ access to the essential pesticide products they need to grow food for the U.S. and the World,” CropLife America said in a statement. “A renewed MTB would mean lower input prices resulting in decreased price pressures for U.S. farmers, ranchers, and consumers.”The American Chemistry Council was another of the groups pushing for renewal of the MTB.“The bill would support advanced manufacturing in the United States and domestic chemical production used to make products in key agriculture, food production, and industrial sectors, including information technology, renewable energy, and automotive goods,” said the ACC.The previous MTB expired in December 2020, and since then, businesses continued to pay $1.3 million per day in tariffs.-NAFB

Groups Press for Miscellaneous Tariff Bill

Ag Secretary Tom Vilsack announced a pilot program to allow more cattle producers and meat processors to access better markets through USDA’s official beef quality grading and certification.

The Remote Grading Pilot for Beef, developed by the AMS, matches simple technology with robust data management and program oversight to allow a USDA grader to assess beef carcass characteristics and assign the official quality grade from a remote location, reducing costs and location as barriers to participation in the voluntary grading service.

“On average, a beef carcass that grades as USDA Prime is valued at hundreds of dollars more than an ungraded one,” Vilsack says. “But the costs for this voluntary USDA service often prevent smaller scale processors and the farmers and ranchers they serve from using this valuable marketing tool.”

Consumers and buyers and sellers of beef rely on USDA quality grades, including Prime, Choice, and Select, to indicate quality.

Ag Secretary Tom Vilsack announced a pilot program to allow more cattle producers and meat processors to access better markets through USDA’s official beef quality grading and certification.The Remote Grading Pilot for Beef, developed by the AMS, matches simple technology with robust data management and program oversight to allow a USDA grader to assess beef carcass characteristics and assign the official quality grade from a remote location, reducing costs and location as barriers to participation in the voluntary grading service.“On average, a beef carcass that grades as USDA Prime is valued at hundreds of dollars more than an ungraded one,” Vilsack says. “But the costs for this voluntary USDA service often prevent smaller scale processors and the farmers and ranchers they serve from using this valuable marketing tool.”Consumers and buyers and sellers of beef rely on USDA quality grades, including Prime, Choice, and Select, to indicate quality.-NAFB

USDA Launches Pilot Beef-Grading Program

Senate Ag Committee Chair Debbie Stabenow wrote a letter to her colleagues on their work to write a new farm bill. She outlined several proposals for strengthening the farm safety net in the new bill.

While calling the 2018 Farm Bill a “strong foundation” for American farmers, she also says, “The 2024 Farm Bill is an opportunity for the Committee to make improvements, modernize dated elements, and address emerging challenges American farmers face.” Her vision for modernizing the safety net centers around principles like programs being targeted to active farmers, providing farmers choice and flexibility, and sending them timely assistance.

She also says officials need to expand the reach of programs to help more farmers and address the emerging risks farmers face. “Crop insurance is a key tool to meaningfully advance each of those goals,” she said in the letter. “Farmers want better affordability and a more straightforward and streamlined process.”

Senate Ag Committee Chair Debbie Stabenow wrote a letter to her colleagues on their work to write a new farm bill. She outlined several proposals for strengthening the farm safety net in the new bill.While calling the 2018 Farm Bill a “strong foundation” for American farmers, she also says, “The 2024 Farm Bill is an opportunity for the Committee to make improvements, modernize dated elements, and address emerging challenges American farmers face.” Her vision for modernizing the safety net centers around principles like programs being targeted to active farmers, providing farmers choice and flexibility, and sending them timely assistance.She also says officials need to expand the reach of programs to help more farmers and address the emerging risks farmers face. “Crop insurance is a key tool to meaningfully advance each of those goals,” she said in the letter. “Farmers want better affordability and a more straightforward and streamlined process.”-NAFB

Stabenow Releases Letter on the Farm Bill

Although the U.S. food supply is one of the safest, foodborne illness is a public health concern. The Food and Drug Administration has a new rule requiring detailed records for certain foods as they move through the supply chain, which can help trace the source of a potential outbreak.

FDA has taken steps like issuing guidance to help implement the rule. The Government Accountability Office has recommended that the FDA finalize its plans for implementing the rule to help industry and regulators prepare for compliance by January 30, 2026. In November 2022, the FDA promulgated a final rule on food traceability to help identify the source of outbreaks of foodborne illness.

When developing the new rule, FDA established a list of certain foods for which enhanced recordkeeping is required. Entities handling an item on the list must maintain records, including a traceability plan for specific points in the supply chain.

Although the U.S. food supply is one of the safest, foodborne illness is a public health concern. The Food and Drug Administration has a new rule requiring detailed records for certain foods as they move through the supply chain, which can help trace the source of a potential outbreak.FDA has taken steps like issuing guidance to help implement the rule. The Government Accountability Office has recommended that the FDA finalize its plans for implementing the rule to help industry and regulators prepare for compliance by January 30, 2026. In November 2022, the FDA promulgated a final rule on food traceability to help identify the source of outbreaks of foodborne illness.When developing the new rule, FDA established a list of certain foods for which enhanced recordkeeping is required. Entities handling an item on the list must maintain records, including a traceability plan for specific points in the supply chain.-NAFB

GAO Pushes FDA on Food Safety

JEFFERSON CITY, Mo. (AP) — On the first business day of the new year, Missouri Treasurer Vivek Malek began accepting applications for about $120 million of state-subsidized, low-interest loans to small businesses, farmers and affordable housing developers.

Within six hours, Malek had so many requests for the money that he had to&nbsp;<a href="https://treasurer.mo.gov/newsroom/news-and-events-item?pr=2d796735-a82e-4215-8b83-c1c159e7c95f">cut off applications</a>.

“The demand is huge, and it is real,” Malek said.

Missouri's situation, though extreme, is not entirely unique. From New York to Illinois to Montana, states have seen surging public interest in little-known programs that use state funds to spur private investment with bargain-priced loans. The programs have taken off after a series of key interest rate hikes by the Federal Reserve made virtually all&nbsp;<a href="https://apnews.com/article/treasury-yield-rates-wall-street-mortgage-aa78d3c3c50728ed62291a58695f3cd0?utm_source=copy&amp;utm_medium=share">loans more expansive</a>, whether for farmers purchasing seed or businesses wanting to expand.

To&nbsp;<a href="https://apnews.com/article/federal-reserve-inflation-prices-interest-rates-cuts-815e42c425cff3e76e89b8f37aaa52f4?utm_source=copy&amp;utm_medium=share">combat inflation</a>&nbsp;in consumer prices, the Fed raised its benchmark interest rate 11 times from March 2022 to last July, setting it at a two-decade high.

Under so-called linked-deposit programs, states deposit money in banks at below-market interest rates. Banks then leverage those funds to provide short-term, low-interest loans to particular borrowers, often in agriculture or small business. The programs can save thousands of dollars for borrowers by reducing their interest rates by an average 2-3 percentage points.

States typically cap the amount of money available for such discounted rates at either a flat dollar amount or a percentage of their total fund balances, because the programs result in less earnings for the state. Many states have built large surpluses from pandemic-era revenues, meaning they have more money available to deposit in banks.

Though most states don't currently offer such programs, some that shelved them when interest rates were low are now considering whether to revive them to aid financially-strapped businesses and residents.

“I can say in talks with other state treasurers that there is a definite increased interest in treasury money, whether that is through a linked-deposit program or a different vehicle," said Illinois Treasurer Michael Frerichs, who is president of the National Association of State Treasurers.

Illinois has nearly $950 million of deposits linked to low-interest loans for farmers, businesses and individuals. That's up substantially from past years. In 2015, Frerichs said, the state's agricultural investment program had just two low-interest loans. By 2022, that had grown to $51 million of loans. Last year, Illinois made $667 million of low-rate deposits for agricultural loans.

With rising demand, Frerichs recently raised the program’s overall cap from $1 billion to $1.5 billion.

Though smaller in scope, New York's program also has seen an explosion of applicants.

In 2022, New York had 42 applications for state deposits in financial institutions linked to $20 million in low-interest loans. Last year, that rose to 317 applications linked to more than $220 million of loans, said Rafael Salaberrios, a senior vice president who manages capital access programs at Empire State Development, New York's economic development agency.

“As the banks see the benefit, they are inundating us with applications — and that’s a good thing,” Salaberrios said. He added: "The linked deposit has allowed for the growth of small businesses to continue even during these high (interest) rate environments.”

Because of rising demand, Missouri's linked-deposit loan program neared its statutory cap of $800 million last May. After some existing loans expired, the treasurer's office was able to reopen applications at 10 a.m. on Jan. 2. By 4 p.m. that day, it had approached the cap again — receiving 142 applications totaling over $119 million — and closed the application window.

About half the applications came on behalf of customers of just two financial institutions — OakStar Bank and FCS Financial, a leading agricultural lender. FCS Financial had over 100 additional applications in line to submit when applications were cut off, said Brian Zimmerschied, vice president for its commercial crop lending team.

BTC Bank in rural Bethany, Missouri, had planned to turn in about dozen applications on behalf of its customers. But it missed out entirely because of the quick cutoff, bank CEO Doug Fish said.

Among those left disappointed was Jason Bernard, a farmer near Bethany who had hoped for a low-interest loan to help purchase this year's supply of seed, fertilizer and chemical spray.

With higher interest rates, "it’s a lot harder to make it, just because your payments,” Bernard said.

The Missouri treasurer's office is&nbsp;<a href="https://house.mo.gov/Bill.aspx?bill=HB1803&amp;year=2024&amp;code=R">backing legislation</a>&nbsp;to raise the program's cap from $800 million to $1.2 billion, which would mark a 50% increase in capacity. The expansion could cost the state $12 million of potential earnings, though that could be partly offset by the economic activity generated from those loans, according to a legislative&nbsp;<a href="https://documents.house.mo.gov/billtracking/bills241/fiscal/fispdf/3236H.01I.ORG.pdf">fiscal analysis</a>.

In Montana, lawmakers last year authorized a new program to address a shortage of affordable housing. The Montana Board of Investments launched a linked-deposit loan initiative in October that received $77 million of applications within two months, reaching a self-imposed cap and forcing it to close applications sooner than expected.

Republican state Rep. Mike Hopkins, who sponsored the housing incentive legislation, was thrilled with the response.

“We’re in a bit of a jam in the state of Montana" for affordable housing, Hopkins said, and “we were able to get money out the door as quickly as possible.”

Officials in Iowa, Kansas and Ohio also told the AP they had increased demand for programs that deposit state money in banks to provide low-interest loans. The number of such loan recipients in Kansas tripled from 2022 to 2023. In Ohio, the amount of money provided for those loans rose by two-thirds during that time, to more than $600 million.

Oklahoma's linked-deposit program has been dormant since 2010 amid low interest rates, but at least two banks recently contacted the treasurer's office about the possibility of restarting it, said Deputy Treasurer Jordan Harvey.

Texas Agriculture Commissioner Sid Miller said he hadn't approved any linked deposits for low-interest loans since taking office in 2015 — until last year, when he approved his first two.

“There wasn’t much need because interest rates were cheap," Miller said.

"But now that the rates are up," Miller added, “it could be a viable program, and we could help some people.”

<figure>
 <img src="https://media.eaglewebservices.com/public/2024/1/1705584027458.png" alt="Missouri Treasurer Vivek Malek stands near a poster promoting drought conditions and state aid programs on Jan. 4, 2024, at his Capitol office in Jefferson City, Mo. Agricultural entities are among several categories of businesses that can receive low-interest loans backed by deposits of state funds made by the treasurer's office. Participation in such programs has grown in various states. (AP Photo/David A. Lieb)" />
 <figcaption>Missouri Treasurer Vivek Malek stands near a poster promoting drought conditions and state aid programs on Jan. 4, 2024, at his Capitol office in Jefferson City, Mo. Agricultural entities are among several categories of businesses that can receive low-interest loans backed by deposits of state funds made by the treasurer's office. Participation in such programs has grown in various states. (AP Photo/David A. Lieb)</figcaption>
 </figure>JEFFERSON CITY, Mo. (AP) — On the first business day of the new year, Missouri Treasurer Vivek Malek began accepting applications for about $120 million of state-subsidized, low-interest loans to small businesses, farmers and affordable housing developers.Within six hours, Malek had so many requests for the money that he had to&nbsp;<a href="https://treasurer.mo.gov/newsroom/news-and-events-item?pr=2d796735-a82e-4215-8b83-c1c159e7c95f">cut off applications</a>.“The demand is huge, and it is real,” Malek said.Missouri's situation, though extreme, is not entirely unique. From New York to Illinois to Montana, states have seen surging public interest in little-known programs that use state funds to spur private investment with bargain-priced loans. The programs have taken off after a series of key interest rate hikes by the Federal Reserve made virtually all&nbsp;<a href="https://apnews.com/article/treasury-yield-rates-wall-street-mortgage-aa78d3c3c50728ed62291a58695f3cd0?utm_source=copy&amp;utm_medium=share">loans more expansive</a>, whether for farmers purchasing seed or businesses wanting to expand.To&nbsp;<a href="https://apnews.com/article/federal-reserve-inflation-prices-interest-rates-cuts-815e42c425cff3e76e89b8f37aaa52f4?utm_source=copy&amp;utm_medium=share">combat inflation</a>&nbsp;in consumer prices, the Fed raised its benchmark interest rate 11 times from March 2022 to last July, setting it at a two-decade high.Under so-called linked-deposit programs, states deposit money in banks at below-market interest rates. Banks then leverage those funds to provide short-term, low-interest loans to particular borrowers, often in agriculture or small business. The programs can save thousands of dollars for borrowers by reducing their interest rates by an average 2-3 percentage points.States typically cap the amount of money available for such discounted rates at either a flat dollar amount or a percentage of their total fund balances, because the programs result in less earnings for the state. Many states have built large surpluses from pandemic-era revenues, meaning they have more money available to deposit in banks.Though most states don't currently offer such programs, some that shelved them when interest rates were low are now considering whether to revive them to aid financially-strapped businesses and residents.“I can say in talks with other state treasurers that there is a definite increased interest in treasury money, whether that is through a linked-deposit program or a different vehicle," said Illinois Treasurer Michael Frerichs, who is president of the National Association of State Treasurers.Illinois has nearly $950 million of deposits linked to low-interest loans for farmers, businesses and individuals. That's up substantially from past years. In 2015, Frerichs said, the state's agricultural investment program had just two low-interest loans. By 2022, that had grown to $51 million of loans. Last year, Illinois made $667 million of low-rate deposits for agricultural loans.With rising demand, Frerichs recently raised the program’s overall cap from $1 billion to $1.5 billion.Though smaller in scope, New York's program also has seen an explosion of applicants.In 2022, New York had 42 applications for state deposits in financial institutions linked to $20 million in low-interest loans. Last year, that rose to 317 applications linked to more than $220 million of loans, said Rafael Salaberrios, a senior vice president who manages capital access programs at Empire State Development, New York's economic development agency.“As the banks see the benefit, they are inundating us with applications — and that’s a good thing,” Salaberrios said. He added: "The linked deposit has allowed for the growth of small businesses to continue even during these high (interest) rate environments.”Because of rising demand, Missouri's linked-deposit loan program neared its statutory cap of $800 million last May. After some existing loans expired, the treasurer's office was able to reopen applications at 10 a.m. on Jan. 2. By 4 p.m. that day, it had approached the cap again — receiving 142 applications totaling over $119 million — and closed the application window.About half the applications came on behalf of customers of just two financial institutions — OakStar Bank and FCS Financial, a leading agricultural lender. FCS Financial had over 100 additional applications in line to submit when applications were cut off, said Brian Zimmerschied, vice president for its commercial crop lending team.BTC Bank in rural Bethany, Missouri, had planned to turn in about dozen applications on behalf of its customers. But it missed out entirely because of the quick cutoff, bank CEO Doug Fish said.Among those left disappointed was Jason Bernard, a farmer near Bethany who had hoped for a low-interest loan to help purchase this year's supply of seed, fertilizer and chemical spray.With higher interest rates, "it’s a lot harder to make it, just because your payments,” Bernard said.The Missouri treasurer's office is&nbsp;<a href="https://house.mo.gov/Bill.aspx?bill=HB1803&amp;year=2024&amp;code=R">backing legislation</a>&nbsp;to raise the program's cap from $800 million to $1.2 billion, which would mark a 50% increase in capacity. The expansion could cost the state $12 million of potential earnings, though that could be partly offset by the economic activity generated from those loans, according to a legislative&nbsp;<a href="https://documents.house.mo.gov/billtracking/bills241/fiscal/fispdf/3236H.01I.ORG.pdf">fiscal analysis</a>.In Montana, lawmakers last year authorized a new program to address a shortage of affordable housing. The Montana Board of Investments launched a linked-deposit loan initiative in October that received $77 million of applications within two months, reaching a self-imposed cap and forcing it to close applications sooner than expected.Republican state Rep. Mike Hopkins, who sponsored the housing incentive legislation, was thrilled with the response.“We’re in a bit of a jam in the state of Montana" for affordable housing, Hopkins said, and “we were able to get money out the door as quickly as possible.”Officials in Iowa, Kansas and Ohio also told the AP they had increased demand for programs that deposit state money in banks to provide low-interest loans. The number of such loan recipients in Kansas tripled from 2022 to 2023. In Ohio, the amount of money provided for those loans rose by two-thirds during that time, to more than $600 million.Oklahoma's linked-deposit program has been dormant since 2010 amid low interest rates, but at least two banks recently contacted the treasurer's office about the possibility of restarting it, said Deputy Treasurer Jordan Harvey.Texas Agriculture Commissioner Sid Miller said he hadn't approved any linked deposits for low-interest loans since taking office in 2015 — until last year, when he approved his first two.“There wasn’t much need because interest rates were cheap," Miller said."But now that the rates are up," Miller added, “it could be a viable program, and we could help some people.”

States expand low-interest loan programs for farms, businesses and new housing

Senate Ag Chair Debbie Stabenow insists a long-overdue farm bill can get done this year if all parties are serious. It’s been more than three-and-a-half months since the 2018 farm bill expired and was extended by one year.

Asked outside the Senate chamber if another extension would be needed, Stabenow had this caveat.

“We can get this done if people are serious if people are serious about it. I’m serious about it. If people want to come together and do it in a bipartisan way, which we’ve always done, and do the doable, we can absolutely pass a farm bill.”

But disagreements over how to spread fixed funding between nutrition and crop support triggers or reference prices have stood in the way, as have broader appropriations fights and delays.

“So, we’ve lost revenue in that process. And then, as we move forward, all of these delays have focused CBO on appropriations, so we couldn’t get scores. And it’s just…there’ve been many delays, as it relates to the churning and the chaos.”

Stabenow says USDA Secretary Tom Vilsack’s focus on using CCC dollars as he did to boost foreign marketing programs is just one answer to funding a new farm bill.

“But CCC is part of that. The commitment that Senator Schumer made to me to add some additional money, unheard of, to find some money outside the farm bill to put in. We’re looking at everything we can. Frankly, I think this is very doable in reference prices.”

Stabenow says crop insurance, with its immediate payout for over 130 crops, has been highly effective, but ARC and PLC less so with payout delays of a year or more. So once a farm bill is up in her panel, Stabenow says she wants to focus on those things with the quickest payout for the most producers.

Senate Ag Chair Debbie Stabenow insists a long-overdue farm bill can get done this year if all parties are serious. It’s been more than three-and-a-half months since the 2018 farm bill expired and was extended by one year.Asked outside the Senate chamber if another extension would be needed, Stabenow had this caveat.“We can get this done if people are serious if people are serious about it. I’m serious about it. If people want to come together and do it in a bipartisan way, which we’ve always done, and do the doable, we can absolutely pass a farm bill.”But disagreements over how to spread fixed funding between nutrition and crop support triggers or reference prices have stood in the way, as have broader appropriations fights and delays.“So, we’ve lost revenue in that process. And then, as we move forward, all of these delays have focused CBO on appropriations, so we couldn’t get scores. And it’s just…there’ve been many delays, as it relates to the churning and the chaos.”Stabenow says USDA Secretary Tom Vilsack’s focus on using CCC dollars as he did to boost foreign marketing programs is just one answer to funding a new farm bill.“But CCC is part of that. The commitment that Senator Schumer made to me to add some additional money, unheard of, to find some money outside the farm bill to put in. We’re looking at everything we can. Frankly, I think this is very doable in reference prices.”Stabenow says crop insurance, with its immediate payout for over 130 crops, has been highly effective, but ARC and PLC less so with payout delays of a year or more. So once a farm bill is up in her panel, Stabenow says she wants to focus on those things with the quickest payout for the most producers.-NAFB

Stabenow Says a Farm Bill Can Get Done This Year if Parties Serious

The radio industry hit an important milestone as the number of lawmakers in the House who back efforts to make AM radio mandatory in vehicles has reached 200. The list has grown even as the proposed AM Radio in Every Vehicle Act has yet to make much legislative progress in the House.

Insider Radio says the growth in support could be critical if bill sponsors try to attach the measure to a piece of must-pass legislation like a spending bill. National Association of Broadcasters spokesman Alex Siciliano credits grassroots support for helping broadcasters to gain so many cosponsors of the Act during the past year.

“AM radio is continuing to reach a vast audience of 82 million listeners each month, and they’ve been very engaged in telling Congress how important this medium is to them in light of the threat by vehicle makers to remove AM from vehicles,” he says.

The radio industry hit an important milestone as the number of lawmakers in the House who back efforts to make AM radio mandatory in vehicles has reached 200. The list has grown even as the proposed AM Radio in Every Vehicle Act has yet to make much legislative progress in the House.Insider Radio says the growth in support could be critical if bill sponsors try to attach the measure to a piece of must-pass legislation like a spending bill. National Association of Broadcasters spokesman Alex Siciliano credits grassroots support for helping broadcasters to gain so many cosponsors of the Act during the past year.“AM radio is continuing to reach a vast audience of 82 million listeners each month, and they’ve been very engaged in telling Congress how important this medium is to them in light of the threat by vehicle makers to remove AM from vehicles,” he says.-NAFB

Record Support for AM Radio in the House

Growth Energy, the nation’s largest biofuels trade association, published its 2024 federal policy priorities.

“These are policy decisions that will shape the next era of growth in plant-based energy and climate solutions,” says Growth Energy CEO Emily Skor. “We hope these priorities serve as a roadmap for elected officials seeking to support biomanufacturing facilities at the heart of America’s bioeconomy.”

The policy priorities focus on ensuring drivers can use more lower-carbon, lower-cost bioethanol at the pump at home and abroad. The group wants to restore permanent, unrestricted access to E15 year-round nationwide. Growth Energy also wants to use bioethanol to expeditiously advance the national transportation carbon reduction goals.

They want to make sure the Department of Energy incorporates the best science and makes limited changes to the GREET model as it relates to the 408 Sustainable Aviation Fuel Tax Credit. They want to ensure changes are finished by March 1, 2024.

Growth Energy, the nation’s largest biofuels trade association, published its 2024 federal policy priorities.“These are policy decisions that will shape the next era of growth in plant-based energy and climate solutions,” says Growth Energy CEO Emily Skor. “We hope these priorities serve as a roadmap for elected officials seeking to support biomanufacturing facilities at the heart of America’s bioeconomy.”The policy priorities focus on ensuring drivers can use more lower-carbon, lower-cost bioethanol at the pump at home and abroad. The group wants to restore permanent, unrestricted access to E15 year-round nationwide. Growth Energy also wants to use bioethanol to expeditiously advance the national transportation carbon reduction goals.They want to make sure the Department of Energy incorporates the best science and makes limited changes to the GREET model as it relates to the 408 Sustainable Aviation Fuel Tax Credit. They want to ensure changes are finished by March 1, 2024.-NAFB

Growth Energy Outlines 2024 Policy Priorities

The National Cattlemen’s Beef Association strongly supports the Death Tax Repeal Act introduced in both the House and Senate. NCBA says it’s unconscionable for cattle producers to face a tax that forces them to sell all or part of their family’s farm or ranch due to the death of a family member.

“With the cost of farmland rising rapidly, the Death Tax presents a significant threat to the future of family farms and ranches,” says NCBA President Todd Wilkinson of South Dakota. “Most cattle producers have significant assets but are cash-poor and operate on thin margins, leaving them with few options when they are saddled with an unexpected tax liability.”

The NCBA says some producers get forced to sell off assets, including land, livestock, farm equipment, and even their home. Current death tax relief expires at the end of 2025, and it’s vital that Congress acts soon to provide permanent relief.

The National Cattlemen’s Beef Association strongly supports the Death Tax Repeal Act introduced in both the House and Senate. NCBA says it’s unconscionable for cattle producers to face a tax that forces them to sell all or part of their family’s farm or ranch due to the death of a family member.“With the cost of farmland rising rapidly, the Death Tax presents a significant threat to the future of family farms and ranches,” says NCBA President Todd Wilkinson of South Dakota. “Most cattle producers have significant assets but are cash-poor and operate on thin margins, leaving them with few options when they are saddled with an unexpected tax liability.”The NCBA says some producers get forced to sell off assets, including land, livestock, farm equipment, and even their home. Current death tax relief expires at the end of 2025, and it’s vital that Congress acts soon to provide permanent relief.-NAFB

NCBA Keeps Pushing for Death Tax Relief

New non-real estate farm lending activity at commercial banks continued to decline in the fourth quarter of 2023.

The volume of new non-real estate farm loans in the final months of 2023 was about 15 percent less than the previous year. The number of new loans did increase from the previous year, but the average loan sizes were considerably lower. The sharp climb in farm loan interest rates abated during the quarter as average rates increased modestly for some types of loans and dropped slightly for others.

Despite a reduction in new loans compared to late 2022, 2023’s outstanding farm debt balances reported by commercial banks grew steadily through the third quarter of 2023. Elevated production costs, higher interest expenses, and lower commodity prices increased the financing needs of many producers.

The Kansas City Fed says strong liquidity in recent years likely supplemented the borrowing needs of some operations throughout 2023.

New non-real estate farm lending activity at commercial banks continued to decline in the fourth quarter of 2023.The volume of new non-real estate farm loans in the final months of 2023 was about 15 percent less than the previous year. The number of new loans did increase from the previous year, but the average loan sizes were considerably lower. The sharp climb in farm loan interest rates abated during the quarter as average rates increased modestly for some types of loans and dropped slightly for others.Despite a reduction in new loans compared to late 2022, 2023’s outstanding farm debt balances reported by commercial banks grew steadily through the third quarter of 2023. Elevated production costs, higher interest expenses, and lower commodity prices increased the financing needs of many producers.The Kansas City Fed says strong liquidity in recent years likely supplemented the borrowing needs of some operations throughout 2023.-NAFB

Farm Lending Activity Remains Muted

Secretary Vilsack recently suggested use of Commodity Credit Corporation Funds as a remedy for the lack of farm bill funding to increase crop subsidy triggers or reference prices. And that idea may have support, even among its critics.

Vilsack insists the $30 billion CCC fund is a silver bullet and told a farm audience recently.

“The ARC payments and the PLC payments and the CRP payments all come from the Commodity Credit Corporation, so they’ve done it in the past. They just need to get to a point where they understand and appreciate, that is the easiest and simplest and best way to get a farm bill done.”

House and Senate conservatives want limits on CCC use for things like climate smart programs but seem flexible otherwise.

Ag Senator Chuck Grassley—hospitalized this week with an unspecified infection--introduced the USDA Spending Accountability Act.

“Secretaries of Agriculture, both Republican and Democrat, have used excess funds in the CCC, for their own agenda. It’s become one of the most costly tools in the farm safety net. Importantly, it will stop USDA from undermining the role of Congress, in writing the upcoming farm bill.”

And save some $8 billion, half of which Grassley would spend on deficit reduction, but the rest for farm programs.

Senate Ag Chair Debbie Stabenow with Ranking Ag Republican John Boozman asked Secretary Vilsack last year for trade promotion help from the CCC.

“A large part of that is already the way we fund the farm bill, so it’s not that there’s additional.”

Vilsack later announced use of $2.3 billion in CCC funds for export promotion and international food aid.

“The decision that we’re making and the decision we were asked to make by Senators Boozman and Stabenow is designed to provide some additional boost, at a time when it is challenging for the drafters of the farm bill to provide the resources necessary to meet all of the demand.”

Secretary Vilsack recently suggested use of Commodity Credit Corporation Funds as a remedy for the lack of farm bill funding to increase crop subsidy triggers or reference prices. And that idea may have support, even among its critics.Vilsack insists the $30 billion CCC fund is a silver bullet and told a farm audience recently.“The ARC payments and the PLC payments and the CRP payments all come from the Commodity Credit Corporation, so they’ve done it in the past. They just need to get to a point where they understand and appreciate, that is the easiest and simplest and best way to get a farm bill done.”House and Senate conservatives want limits on CCC use for things like climate smart programs but seem flexible otherwise.Ag Senator Chuck Grassley—hospitalized this week with an unspecified infection--introduced the USDA Spending Accountability Act.“Secretaries of Agriculture, both Republican and Democrat, have used excess funds in the CCC, for their own agenda. It’s become one of the most costly tools in the farm safety net. Importantly, it will stop USDA from undermining the role of Congress, in writing the upcoming farm bill.”And save some $8 billion, half of which Grassley would spend on deficit reduction, but the rest for farm programs.Senate Ag Chair Debbie Stabenow with Ranking Ag Republican John Boozman asked Secretary Vilsack last year for trade promotion help from the CCC.“A large part of that is already the way we fund the farm bill, so it’s not that there’s additional.”Vilsack later announced use of $2.3 billion in CCC funds for export promotion and international food aid.“The decision that we’re making and the decision we were asked to make by Senators Boozman and Stabenow is designed to provide some additional boost, at a time when it is challenging for the drafters of the farm bill to provide the resources necessary to meet all of the demand.”-NAFB

Vilsack CCC Farm Bill Remedy Has Some Support Even From Critics

The marketing year 2023/24 global soybean production forecast has increased by 0.1 million metric tons this month to 399.0 million metric tons.

USDA’s Monthly Oil Crops Outlook shows higher production in Argentina, the United States, Paraguay, Russia, China, and Bolivia more than offset lower production in Brazil. Global soybean trade for 2023/24 is forecasted to be up from last month and stands at 170.9 million metric tons due to higher exports from Paraguay and Russia.

The global soybean crush is nearly unchanged this month, as higher crush in Argentina, India, Egypt, and Thailand offsets the reduced crush volume in Brazil. Global soybean ending stocks are forecast at 114.6 million metric tons, up 0.4 million metric tons from last month's forecast and 12.7 million metric tons above last year's level.

In the latest Crop Production report by USDA, U.S. soybean production was raised by 35.2 million bushels on higher yields. The harvested acreage is reduced this month 0.4 million acres on lower harvested area.

The marketing year 2023/24 global soybean production forecast has increased by 0.1 million metric tons this month to 399.0 million metric tons.USDA’s Monthly Oil Crops Outlook shows higher production in Argentina, the United States, Paraguay, Russia, China, and Bolivia more than offset lower production in Brazil. Global soybean trade for 2023/24 is forecasted to be up from last month and stands at 170.9 million metric tons due to higher exports from Paraguay and Russia.The global soybean crush is nearly unchanged this month, as higher crush in Argentina, India, Egypt, and Thailand offsets the reduced crush volume in Brazil. Global soybean ending stocks are forecast at 114.6 million metric tons, up 0.4 million metric tons from last month's forecast and 12.7 million metric tons above last year's level.In the latest Crop Production report by USDA, U.S. soybean production was raised by 35.2 million bushels on higher yields. The harvested acreage is reduced this month 0.4 million acres on lower harvested area.-NAFB