Wyoming Archives - Morning Ag Clips https://www.morningagclips.com/category/wyoming/ America's #1 Ag News Source Fri, 27 Dec 2024 22:35:47 +0000 en-US hourly 1 https://www.morningagclips.com/wp-content/uploads/2024/02/cropped-MAc-Logo1-1-32x32.png Wyoming Archives - Morning Ag Clips https://www.morningagclips.com/category/wyoming/ 32 32 NCBA Warns Cattle Producers That Corporate Transparency Act Reporting Requirements Will Return https://www.morningagclips.com/ncba-warns-cattle-producers-that-corporate-transparency-act-reporting-requirements-will-return/ Thu, 26 Dec 2024 20:25:46 +0000 https://www.morningagclips.com/?p=657589 WASHINGTON — The National Cattlemen’s Beef Association (NCBA) warned cattle producers that Corporate Transparency Act filing requirements are back in effect following a court decision that reverses the injunction that previously halted this mandate. “The Corporate Transparency Act requires millions of family farmers and ranchers to file complex paperwork and disclose beneficial ownership information with the […]

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WASHINGTON — The National Cattlemen’s Beef Association (NCBA) warned cattle producers that Corporate Transparency Act filing requirements are back in effect following a court decision that reverses the injunction that previously halted this mandate.

“The Corporate Transparency Act requires millions of family farmers and ranchers to file complex paperwork and disclose beneficial ownership information with the federal government under penalty of severe fines and jailtime,” said NCBA Executive Director of Government Affairs Kent Bacus. “FinCEN should do the right thing and provide a realistic delay to the Corporate Transparency Act until Congress has an opportunity to provide a permanent fix that protects family farmers and ranchers.”

On Monday, the Fifth Circuit Court of Appeals lifted a nationwide preliminary injunction on the enforcement of the Corporate Transparency Act, holding that the government is likely to prevail in a constitutional challenge. This decision places many small businesses in jeopardy that have not yet filed Beneficial Ownership Information with the Financial Crimes Enforcement Network (FinCEN), a division of the U.S. Department of the Treasury.

In light of the Fifth Circuit’s decision, FinCEN announced it will delay enforcement of the Corporate Transparency Act until January 13, 2025—just three weeks from now. This delay does not allow enough time for millions of small businesses to comply with the law, and it is deeply concerning that FinCEN will proceed with enforcing this law when it has failed to give adequate notice and instructions to law abiding family business owners.

NCBA will continue fighting for a permanent solution that protects cattle farmers and ranchers from this overreaching mandate. In the meantime, cattle producers are advised to consult their attorney and/or tax professional regarding this new development.


The National Cattlemen’s Beef Association (NCBA) has represented America’s cattle producers since 1898, preserving the heritage and strength of the industry through education and public policy.  As the largest association of cattle producers, NCBA works to create new markets and increase demand for beef.  Efforts are made possible through membership contributions. To join, contact NCBA at 1-866-BEEF-USA or membership@beef.org.

–National Cattlemen’s Beef Association

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Merry Christmas & Happy New Year! https://www.morningagclips.com/merry-christmas-happy-new-year/ Mon, 23 Dec 2024 23:40:46 +0000 https://www.morningagclips.com/?p=657420 GREENWICH, N.Y. — Wow! 2024 is drawing to a close. Where did the year go? I hope all of you will be able to look back on the year’s greatness. Put your pencil to paper as you consider all you learned from 2024; some very important lessons were sprinkled in there. To give time for […]

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GREENWICH, N.Y. — Wow! 2024 is drawing to a close. Where did the year go?

I hope all of you will be able to look back on the year’s greatness. Put your pencil to paper as you consider all you learned from 2024; some very important lessons were sprinkled in there.

To give time for reflection and enjoyment this holiday season, we will not be sending out our daily emails the week between Christmas and New Year’s. The Morning Ag Clips’ daily email will resume on Thursday, January 2, 2025.

There will still be news articles published on our site, so make sure to stay up-to-date by going to morningagclips.com. Every day there will be something new, and there will be an editor watching for breaking ag news every day. But like you, we all need a break, and the only way to get it is to be extremely intentional about it, so we are!

Here’s to you, your family, and a prosperous and healthy New Year! We will see you in 2025!

With love,
Kate

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In the Cattle Markets: Dec. Cattle on Feed Report & Cautionary Note on “Demand Destruction” https://www.morningagclips.com/in-the-cattle-markets-dec-cattle-on-feed-report-cautionary-note-on-demand-destruction/ Mon, 23 Dec 2024 10:00:51 +0000 https://www.morningagclips.com/?p=657479 LAKEWOOD, Colo. — On Friday, December 20 USDA NASS released the latest Cattle on Feed report (https://usda.library.cornell.edu/concern/publications/m326m174z?locale=en ). December 1st inventory was estimated at 11.98 million, on par with 2023. Placements in November were estimated at 1.80 million, down 4% from 2023 while marketings were estimated at 1.73 million, down 1% from 2023. Overall, this report […]

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LAKEWOOD, Colo. — On Friday, December 20 USDA NASS released the latest Cattle on Feed report (https://usda.library.cornell.edu/concern/publications/m326m174z?locale=en ). December 1st inventory was estimated at 11.98 million, on par with 2023. Placements in November were estimated at 1.80 million, down 4% from 2023 while marketings were estimated at 1.73 million, down 1% from 2023. Overall, this report was in line with pre-report expectations and likely will not be a market-mover with interest transitioning to 2025 reports including the January Cattle Inventory report.

I expect the January Cattle Inventory report to show some additional liquidation has occurred leading to a smaller calf crop in 2025. It seems most likely that the summer of 2026 is the soonest substantial national heifer retention may begin. While there is recently elevated uncertainty around international trade that should not be overlooked, most anticipate domestic beef availability to decline perhaps by 2-3% per year (per person) in 2025 and 2026.

Given this setting and the opportunity for some extended armchair-pondering around the holidays, some context on economic concepts and an important historical reminder is prudent. Economists analyzing the beef industry use the term “demand” to refer to the willingness and ability to buy beef at a specific price. A change in beef demand is not triggered by changes in beef prices but rather by consumer income or wealth adjustments, changes in prices of other goods, or perceptions of beef quality evolving. To this later point, the clear improvement in overall beef quality (simple example is Prime or Upper Choice percentage versus past decades) has been core to beef demand growth (see K-State demand indices here: https://agmanager.info/livestock-meat/meat-demand/monthly-domestic-meat-demand-indices-usdabls-data/monthly-domestic-0 ).

As we turn to 2025 it is important to pause and connect the dots around things such as current feedlot supplies, future breeding herd size and corresponding beef availability, and what one may expect at the retail and food service level. Yes, lower beef supplies are expected and with that, most anticipate higher end-user beef prices. In fact, the industry should be hoping for that! Research with Melissa McKendree, Ted Schroeder, and Nathan Hendricks (https://onlinelibrary.wiley.com/doi/full/10.1093/ajae/aaz034 ) shows that feeder cattle sellers stand to gain the most when beef demand grows, and lose the most when demand falters.

If alternatively, lower beef availability is observed in conjunction with flat or lower beef prices, then beef demand clearly declined. In that unfortunate situation, economic viability for most in the industry also declines. While some younger market participants may dismiss this scenario, recall the 1980s & 90s was a period largely characterized by a shrinking herd, weakening beef demand, and overall decline in industry vitality. Indeed, lower beef volumes alone do not guarantee higher beef nor cattle prices. This experience is worth periodic reflection as the industry has made massive improvements that should not be overlooked or taken for granted. To the extent that beef prices increase reflecting stable or growing beef demand that indeed is a market outcome that should not only “be allowed” but encouraged. While the term “demand destruction” is likely to appear more in coming months, industry stakeholders are encouraged to take pause and in fact hope that higher prices develop reflecting stable or growing beef demand.

Finally, and most importantly I wish all readers a Merry Christmas, the ability to see the true reason for the season, and a joyous New Year.

cattle feed livestock

— Glynn T. Tonsor, Ph.D., Department of Agricultural Economics, Kansas State University

Livestock Marketing Information Center

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Interior Department Finalizes Framework for Future of Solar Development on Public Lands https://www.morningagclips.com/interior-department-finalizes-framework-for-future-of-solar-development-on-public-lands/ Fri, 20 Dec 2024 18:32:20 +0000 https://www.morningagclips.com/?p=657259 WASHINGTON — The Department of the Interior has announced an updated Western Solar Plan to help guide efficient and environmentally responsible solar energy permitting on public lands across the West.  The plan will guide the siting of solar energy proposals in areas with fewer resource conflicts,  advance the nation’s growing clean energy economy, help lower energy costs for consumers, create good-paying jobs, tackle the climate […]

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WASHINGTON — The Department of the Interior has announced an updated Western Solar Plan to help guide efficient and environmentally responsible solar energy permitting on public lands across the West.  The plan will guide the siting of solar energy proposals in areas with fewer resource conflicts,  advance the nation’s growing clean energy economy, help lower energy costs for consumers, create good-paying jobs, tackle the climate crisis and advance clean air and environmental justice priorities, in support of the goal of achieving a 100-percent clean electricity grid by 2035.

“Under the Biden-Harris administration, the Interior Department has moved at the pace needed to meet the moment and swiftly grow a robust and sustainable clean energy economy while protecting precious resources in America’s public lands. With an updated Western Solar Plan, created with extensive input from the public, the Department will ensure the responsible development of solar energy across the West for decades to come,” said Secretary Deb Haaland.

“Solar energy is an affordable and fast-growing component of the nation’s modern power supply and is helping the United States build a strong and resilient clean energy economy. The updated Western Solar Plan will ensure that solar project permitting is more efficient and offers clarity for project developers while maintaining flexibility to adapt to local needs and concerns,” said Principal Deputy Assistant Secretary for Land and Minerals Management Dr. Steve Feldgus.

The Department’s clean energy work on public lands is guided by the Bureau of Land Management (BLM). Since January 2021, the BLM has approved 45 renewable energy projects on public lands and exceeded the goal to permit 25 gigawatts of renewable energy by 2025. Overall, the BLM has permitted clean energy projects on public lands with a total capacity of more than 33 gigawatts – enough to power more than 15 million homes. This year, the BLM also issued a final Renewable Energy Rule that will lower consumer energy costs and the cost of developing solar and wind projects, improve project application processes, create jobs, and incentivize developers to continue responsibly developing solar and wind projects on public lands.

The updated Western Solar Plan, developed with substantial public input, builds on this momentum to guide BLM’s management of solar energy proposals and projects on public lands. The plan updates the 2012 Western Solar Plan, which covered six southwestern states: Arizona, California, Colorado, Nevada, New Mexico, and Utah, to include Idaho, Montana, Oregon, Washington and Wyoming. The updated plan uses lessons learned and best practices to guide a strategy for the West — identifying lands near transmission lines and previously disturbed lands as available while excluding sensitive areas like specially protected lands, lands containing important cultural resources, and critical wildlife habitat. Siting projects away from areas where they may conflict with other resources and uses will help ensure responsible development, speed the permitting process, and provide greater predictability to the solar energy industry.

The updated Western Solar Plan identifies the availability of over 31 million acres of public lands across the 11 Western states for utility-scale solar project applications; however, only approximately 700,000 of those acres are anticipated to be developed by 2045 to meet projected demand. The larger available area allows for greater flexibility in considering solar proposals. No solar projects are authorized through this planning effort; all individual proposed projects must still undergo site-specific environmental review with opportunity for public comment before a decision is made on whether to approve them.

This action builds on dozens of executive actions that the Biden-Harris administration has taken to accelerate and improve federal permitting so that we can deliver more projects more quickly. The median time to complete Administration the most complicated reviews is more than six months faster than the prior Administration. In addition, the Biden-Harris administration has permitted twice as many renewable energy projects on public lands compared to the prior Administration.

Approval of the updated Western Solar Plan follows a draft plan published in January 2024 and a proposed plan published in August 2024, reflecting input received from a wide range of stakeholders, governments, and other interested parties along the way. The proposed plan was subject to a 30-day public protest period and 60-day governor’s consistency review before the BLM made the decision to approve the plan.

For more information on the updated Western Solar Plan, please visit the Federal Register Notice webpage or visit the project’s National NEPA Project Register (ePlanning) website.

— Department of the Interior

Bureau of Land Management

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Exclusive Offerings From the Angus Foundation Available in January https://www.morningagclips.com/exclusive-offerings-from-the-angus-foundation-available-in-january/ Thu, 19 Dec 2024 16:45:03 +0000 https://www.morningagclips.com/?p=657111 OKLAHOMA CITY — The month of January kicks off an exciting new year full of opportunities to support the Angus Foundation’s mission of advancing education, youth and research. With numerous offerings available in conjunction with the Cattlemen’s Congress in Oklahoma City, the upcoming month is set to inspire generous support for the Angus Foundation in […]

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OKLAHOMA CITY — The month of January kicks off an exciting new year full of opportunities to support the Angus Foundation’s mission of advancing education, youth and research. With numerous offerings available in conjunction with the Cattlemen’s Congress in Oklahoma City, the upcoming month is set to inspire generous support for the Angus Foundation in 2025.  another year of generous support for the Angus Foundation.

Angus Foundation Heifer Package

Each year the Angus Foundation Heifer Package leads off the National Angus Bull Sale. The 2025 heifer package is donated by Pollard Farms of Waukomis, Oklahoma.

The heifer, POLLARD Rita 4012 (AAA* 20875621), is a daughter of EXAR Cover the Bases 0819B and out of a productive, young two-year-old that is “on her way to the donor pen,” said Dr. Barry Pollard of Pollard Farms. She stems from the PF W34 Rita 4139, a long-time donor in the Pollard Farms program.

Rita is an elite donor prospect. She exemplifies the phenotypic and numerical balance that Dr. Pollard and his crew strive to produce, ranking in the top 1% for $C, Marb, $G, $AxH and $AxJ; top 2% for $B and $W; top 5% for RADG; top 10% for WW, YW, and HP; top 15% for CED, BW, PAP, and $M; top 20% for RE; and top 25% for CW and $F.

The heifer package also includes an Advanced Reproductive Technology Package from Trans Ova Genetics; trucking to the buyer donated by Lathrop Livestock Transportation; and 30 days of mortality insurance donated by Jeanne Conover, Livestock Insurance Agent with Conover Auction Service.

The sale starts at 2 p.m. on Friday, January 10, 2025, at Cattlemen’s Congress in Oklahoma City.

To learn more about the Angus Foundation Heifer Package visit bit.ly/2025HeiferPackage.

Fund the Future Offerings

A special feature to the January events is the Angus Foundation “Fund the Future” donation lot that will sell. The Bases Loaded Sale, held January 7 at Heritage Place in Oklahoma City, will feature a heifer pregnancy donated by Riverbend Ranch with complimentary trucking included by Lathrop Livestock Transportation.

This headlining female of the Riverbed and Vintage Angus programs, sells as Lot A with 100% of the proceeds benefiting the Foundation’s mission. The Fund the Future program allows breeders to donate proceeds from a designated sale lot to the Angus Fund, which provides unrestricted dollars to support the breed.

This Fund the Future donation lot features a heifer pregnancy from the $194,000 valued second-generation Riverbed Ranch donor, Miss Belle 9209 and sired by the American Angus Association’s Sire of the Year, Connealy Craftsman. The anticipated due date is February 24, 2025.

Angus Herdsman Social

The Foundation and Association will again host a celebration for the Angus family at the 2025 Cattlemen’s Congress. The Angus Herdsman Social serves as an evening of fellowship in Oklahoma City, Friday, January 10.

The doors of the Cattlemen’s Bar in Barn 3 will open at 3:45 p.m. following the National Angus Bull Sale. The social will feature the announcement of the 2025 Angus Herdsman of the Year, food, refreshments and a group of auction and raffle items to benefit the Foundation’s mission.

Auction highlights include a men’s and/or women’s custom-made cowboy hat from Greeley Hat Works, a set of whiskey barrel chairs and a custom cowhide bag from Holy Cow Couture. A 2025 National Finals Rodeo ticket package, among other exciting items and experiences, is available for bidding.

Those interested in any of the January events and offerings supporting the Angus Foundation are encouraged to contact Jaclyn Boester, Angus Foundation executive director, at JBoester@Angus.org, or their regional manager. To learn more about the Angus Foundation and its mission, visit angus.org/foundation.

–Molly Biggs, Communications Specialist
American Angus Association

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In the Cattle Markets: Strong Calf Prices Finish the Year https://www.morningagclips.com/in-the-cattle-markets-strong-calf-prices-finish-the-year/ Wed, 18 Dec 2024 21:43:55 +0000 https://www.morningagclips.com/?p=656990 LAKEWOOD, Colo. — Cattle and beef markets are wrapping up the fourth quarter on a very strong note – especially for smaller animals. Calf prices for 5-6 weight animals in the southern plains have advanced better than $50/cwt in the last four weeks. And prices for 4-5 weight animals have moved further. The fall run […]

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LAKEWOOD, Colo. — Cattle and beef markets are wrapping up the fourth quarter on a very strong note – especially for smaller animals. Calf prices for 5-6 weight animals in the southern plains have advanced better than $50/cwt in the last four weeks. And prices for 4-5 weight animals have moved further. The fall run is apparently over.

Live fed cattle prices remain strong with cash trades better than $190 but prices for the year look range-bound to me between $180 and just better than $190. The boxed beef cutout value is holding better than $300 with a mix of performance at the primal level. Rib prices have been seasonally outstanding, and tenderloins have also been strong. Loins are showing some seasonal weakness as is ground beef. End meats are showing solid price levels but not much in terms of improvements. Once the market retreats from the strong rib purchases, and the Choice-Select spread seasonally softens, much will be determined by Chucks and Rounds. Also, this will be the period the market moves into the time of year when packer margins are the weakest. My point? The strong finish to the year in calf prices has little to do with what is going on downstream.

It is also not reacting to grain market news. Information from recent Crop Production and WASDE reports suggest some firming of feed grain prices. After a series of reports through the summer where production steadily increased, the November reports communicate some softening of yields, overall production, and a modest tightening of stocks-to-use. However, forage prices remain much below prior years and availability is substantially better.

Carcass weights remain truly impressive and have backed up very little from the four weeks at 960-pound average steer weights – heifers are following suit. It will be interesting, and important, to see the magnitude of any seasonal decline in weights. How much of the 40-pound increase based on the same week of the year prior persists? With lower corn prices and longer feeding periods then heavy weights will persist. But how heavy and what are the possible further increases?

These weight increases in all likelihood hang over the market as well as do the front-loaded cattle on feed inventories. The calculated cattle on feed over 150 days has been larger than any of the proceeding years – other than 2020 – but this inventory has been moving lower through the summer and fall. The exception is November’s number. The inventory of these long-fed animals has been large relative to what is seen in the 120 days on feed inventory. Inventories on feed over 120 days are this month tighter than 2023. Whereas the 150-day number is even compared with last year. Again, big numbers and weights now – and back through the summer and fall – but the prospect is for change come the first quarter. The pipeline is full for the near term with less so into next year. But then there are first-quarter packer margins to navigate.

The Markets

What does the technical picture say? Live cattle and feeder cattle futures have again posted strong rallies in September, October, and November. However, the market currently sits at resistance formed in the spring, and the spring strength was less than the excitement from this time last year. Approaching resistance is a sell signal. Cow-calf producers need to be getting ready and looking hard at LRP into next year. And I have talked to several that received payment this year. I see next year’s GFX contract looking a lot like this year’s. Strong sell-offs, strong up moves, and a lot of underlying volatility. And that is until herd building begins in earnest. As always, watch your charts. And add that Cattle on Feed report to the list. Placements through the spring will be an important signal.

— Stephen R. Koontz, Department of Agricultural and Resource Economics, Colorado State University

Livestock Marketing Information Center

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USCA Looks Ahead to 2025 https://www.morningagclips.com/usca-looks-ahead-to-2025/ Thu, 12 Dec 2024 16:48:21 +0000 https://www.morningagclips.com/?p=656131 SAN ANTONIO, Texas — The U.S. Cattlemen’s Association (USCA) convened in San Antonio, Texas last week for their Annual Meeting, presented by Anipro Xtraformance Nutrition and AgRisk Advisors, and in partnership with USCA affiliate Independent Cattlemen’s Association of Texas. The meeting provided ample opportunity for networking, education, and policy discussions. “I appreciate all the directors, […]

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SAN ANTONIO, Texas — The U.S. Cattlemen’s Association (USCA) convened in San Antonio, Texas last week for their Annual Meeting, presented by Anipro Xtraformance Nutrition and AgRisk Advisors, and in partnership with USCA affiliate Independent Cattlemen’s Association of Texas. The meeting provided ample opportunity for networking, education, and policy discussions.

“I appreciate all the directors, members, sponsors, and partners who joined us in San Antonio last week,” USCA President Justin Tupper said. “The Annual Meeting is a critical time to set the direction of the association for the year ahead and join in conversation on issues impacting the industry. The meeting hosted a number of panels focused on hot-button issues and the group has a renewed momentum to make positive change as we enter a new year with a new administration.”

Panel presentation topics this year included emerging technologies, Beef Checkoff, livestock risk protection, and mandatory animal ID. In addition, Certified Angus Beef Director of Commercial Industry Relations Troy Marshall shared a look at the industry and how the branded beef program has impacted its history. Farm Service Agency (FSA) Administrator Zach Ducheneaux provided an overview of the tools FSA has to support its producers.

USCA reviews its policies every two years and accepts new policy submissions at the Annual Meeting. This year, new policies were presented regarding animal health and ID, all of which will be sent to the membership on the year’s official ballot.

USCA also welcomed newly appointed Board of Directors members who will be placed on the upcoming ballot, including Todd Clemons (Region XI: Florida and Georgia); Luke Frantz (Region XIV: Ohio, Wisconsin, Illinois); and Curtis Thomas (Region I: Washington, Oregon, Alaska, and Hawaii).

The USCA Annual Meeting sets the policies and focus of the Association for the year ahead, which will culminate this year in the USCA DC Fly-In. Issues to be included for discussion include Animal ID, Producer Profitability and Competition, Trade and more. Any USCA members interested in participating in the 2025 fly-in should contact USCA’s Federal Policy Director Kalina Reini: kalina@wssdc.com.

–U.S. Cattlemen’s Association

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Funding Opportunity Drives Innovation in Sustainable Packaging for Specialty Crop Exports https://www.morningagclips.com/funding-opportunity-drives-innovation-in-sustainable-packaging-for-specialty-crop-exports/ Wed, 11 Dec 2024 18:10:23 +0000 https://www.morningagclips.com/?p=655973 WASHINGTON — The Foundation for Food & Agriculture Research (FFAR), in partnership with Clemson University (Clemson) and the International Fresh Produce Association’s Foundation for Fresh Produce (FFP), today announced a request for research, scale and commercialization applications that can expand U.S export markets through innovative packaging solutions. Emerging global restrictions on single-use and plastic packaging limit […]

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WASHINGTON — The Foundation for Food & Agriculture Research (FFAR), in partnership with Clemson University (Clemson) and the International Fresh Produce Association’s Foundation for Fresh Produce (FFP), today announced a request for research, scale and commercialization applications that can expand U.S export markets through innovative packaging solutions.

Emerging global restrictions on single-use and plastic packaging limit specialty crops’ access to international markets. To accelerate packaging innovation that facilitates market access, the U.S. Department of Agriculture Foreign Agricultural Service (USDA FAS) has awarded $5 million each to Clemson and FFP to establish the Sustainable Packaging Innovation Lab, with FFAR partnering in its implementation.

The Sustainable Packaging Innovation Lab will provide up to twenty awards between $50,000 and $250,000 for research that leads to the development and commercialization of scalable, sustainable packaging solutions, including replacements for single-use packaging.

Packaging plays an important role in the export of fresh fruits, vegetables and other specialty crops, ensuring that food safely travels from the farm to the consumer’s table and supporting production traceability. Exporters now face increasing demands from foreign regulators and consumers to either avoid packaging or use sustainable alternatives.

“Innovative and sustainable packaging solutions are essential for the future of food and agriculture. They reduce environmental impacts, ensure food safety, extend product shelf life and support global market access,” said FFAR Scientific Program Director Dr. Constance Gewa. “As we face increasing restrictions on single-use plastics, developing alternatives is critical to meeting consumer demands and achieving a more sustainable food system.”

FFAR is hosting an informational webinar about this opportunity on January 13, 2025, from 1-2:30 p.m. EST. Participants must register to attend.

Applications are due February 12, 2025, by 5 p.m. EST. For more information, visit the Sustainable Packaging Innovation Lab open opportunity webpage.


Foundation for Food & Agriculture Research 

The Foundation for Food & Agriculture Research (FFAR) builds public-private partnerships to fund bold research addressing big food and agriculture challenges. FFAR was established in the 2014 Farm Bill to increase public agriculture research investments, fill knowledge gaps and complement U.S. Department of Agriculture’s research agenda. FFAR’s model matches federal funding from Congress with private funding, delivering a powerful return on taxpayer investment. Through collaboration and partnerships, FFAR advances actionable science benefiting farmers, consumers and the environment.

–Foundation for Food & Agriculture Research

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New Marketing Assistance Available for Specialty Crop Producers https://www.morningagclips.com/new-marketing-assistance-available-for-specialty-crop-producers/ Tue, 10 Dec 2024 17:44:58 +0000 https://www.morningagclips.com/?p=655779 WASHINGTON — The U.S. Department of Agriculture (USDA) Farm Service Agency’s (FSA) $2 billion Marketing Assistance for Specialty Crops (MASC) program, aimed at helping specialty crop producers expand markets and manage higher costs, is now accepting applications from Dec. 10, 2024 through Jan. 8, 2025. Funded by the Commodity Credit Corporation, MASC was announced in November […]

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WASHINGTON — The U.S. Department of Agriculture (USDA) Farm Service Agency’s (FSA) $2 billion Marketing Assistance for Specialty Crops (MASC) program, aimed at helping specialty crop producers expand markets and manage higher costs, is now accepting applications from Dec. 10, 2024 through Jan. 8, 2025. Funded by the Commodity Credit Corporation, MASC was announced in November alongside the $140 million Commodity Storage Assistance Program for facilities impacted by 2024 natural disasters.

“Specialty crop growers have typically faced higher marketing and handling costs relative to non-specialty crop producers due to the perishability of fruits, vegetables, floriculture, nursery crops and herbs,” said FSA Administrator Zach Ducheneaux. “Through this marketing assistance program, we can expand U.S. specialty crop consumption and markets by providing specialty crop producers the financial support needed to help them engage in activities that broaden and enhance strategies and opportunities for marketing their commodities.”

MASC helps specialty crop producers meet higher marketing costs related to:

  • Perishability of specialty crops like fruits, vegetables, floriculture, nursey crops and herbs;
  • Specialized handling and transport equipment with temperature and humidity control;
  • Packaging to prevent damage;
  • Moving perishables to market quickly; and
  • Higher labor costs.

MASC Eligibility 

To be eligible for MASC, a producer must be in business at the time of application, maintain an ownership share and share in the risk of producing a specialty crop that will be sold in calendar year 2025.

MASC covers the following commercially marketed specialty crops:

  • Fruits (fresh, dried);
  • Vegetables (including dry edible beans and peas, mushrooms, and vegetable seed);
  • Tree nuts;
  • Nursery crops, Christmas trees, and floriculture;
  • Culinary and medicinal herbs and spices; and
  • Honey, hops, maple sap, tea, turfgrass and grass seed.

Applying for MASC 

Eligible established specialty crop producers can apply for MASC benefits by completing the FSA-1140, Marketing Assistance for Specialty Crops (MASC) Program Application, and submitting the form to any FSA county office by Jan. 8, 2025. When applying, eligible specialty crop producers must certify their specialty crop sales for calendar year 2023 or 2024.

New specialty crop producers are required to certify 2025 expected sales, submit an FSA-1141 application and provide certain documentation to support reported sales i.e., receipts, contracts, acreage reports, input receipts, etc. New producers are those who began producing specialty crops in 2023 or 2024 but did not have sales due to the immaturity of the crop, began producing specialty crops in 2024 but did not have a complete year of sales or will begin growing specialty crops in 2025.

MASC applicants, established and new, must also submit the following information to FSA if not already on file at the time of application:

  • Form AD-2047, Customer Data Worksheet.
  • Form CCC-902, Farm Operating Plan for an individual or legal entity.
  • Form CCC-941, Average Adjusted Gross Income (AGI) Certification and Consent to Disclosure of Tax Information.  
  • Form FSA-942, Certification of Income from Farming, Ranching and Forestry Operations, if applicable, for the producer and members of entities.
  • A highly erodible land conservation (sometimes referred to as HELC) and wetland conservation certification (Form AD-1026 Highly Erodible Land Conservation (HELC) and Wetland Conservation (WC) Certification) for the ERP producer and applicable affiliates.
  • Other Documentation if requested by FSA to support reported specialty crop sales.

Most producers, especially those who have previously participated in FSA programs, will likely have these required forms on file. However, those who are uncertain or want to confirm the status of their forms or producers who may be new to conducting business with FSA, can contact their local FSA county office.

For MASC program participation, eligible specialty crop sales only include sales of commercially marketed raw specialty crops grown in the United States by the producer. The portion of sales derived from adding value to a specialty crop (such as sorting, processing, or packaging) is not included when determining eligible sales. Further explanation of what is considered by FSA for specialty crop sales as well as an online MASC decision tool and applicable program forms, are available on the MASC program webpage.

MASC Payments 

For established specialty crop growers, those who certify crop sales in 2023 or 2024, FSA will calculate MASC payments based on the producer’s total specialty crop sales for the calendar year elected by the producer. Payments for new producers will be based on their expected 2025 calendar year sales. Payment calculation details and examples are available on the MASC webpage or related questions can be directed to local FSA county office staff.

FSA will issue MASC payments after the end of the application period. If demand for MASC payments exceeds available funding, MASC payments may be prorated, and the payment limitation of $125,000 may be lowered.  If additional funding is available after MASC payments are issued, FSA may issue an additional payment.

Specialty crop producers interested in applying for MASC benefits, are encouraged to review the program fact sheet for detailed information on program eligibility, required documentation, payment calculations and more.

More Information 

Additional information on MASC is available in the Notice of Funding Availability, which went on public inspection in the Federal Register on Dec. 9, 2024.

FSA helps America’s farmers, ranchers and forest landowners invest in, improve, protect and expand their agricultural operations through the delivery of agricultural programs for all Americans. FSA implements agricultural policy, administers credit and loan programs, and manages conservation, commodity, disaster recovery and marketing programs through a national network of state and county offices and locally elected county committees. For more information, visit fsa.usda.gov.

USDA touches the lives of all Americans each day in so many positive ways. Under the Biden-Harris administration, USDA is transforming America’s food system with a greater focus on more resilient local and regional food production, fairer markets for all producers, ensuring access to safe, healthy and nutritious food in all communities, building new markets and streams of income for farmers and producers using climate smart food and forestry practices, making historic investments in infrastructure and clean energy capabilities in rural America, and committing to equity across the Department by removing systemic barriers and building a workforce more representative of America. To learn more, visit usda.gov.

–USDA

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In the Cattle Markets: Insurance Observations https://www.morningagclips.com/in-the-cattle-markets-insurance-observations/ Mon, 09 Dec 2024 22:00:46 +0000 https://www.morningagclips.com/?p=655673 LAKEWOOD, Colo. — Recently a producer asked if Livestock Risk Protection (LRP) premiums adjusted with volatility in the market like options do. The quick response was yes; as futures prices and options premiums change, so do LRP premiums. Like options, LRP has several moving parts. However, expected (or implied) volatility is the only aspect that […]

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LAKEWOOD, Colo. — Recently a producer asked if Livestock Risk Protection (LRP) premiums adjusted with volatility in the market like options do. The quick response was yes; as futures prices and options premiums change, so do LRP premiums. Like options, LRP has several moving parts. However, expected (or implied) volatility is the only aspect that is not known. A comparison of LRP and options when volatility is both low and high would provide some empirical evidence that both respond to volatility in a similar way. The implied volatility can be backed out of premiums. The CME Group provides LEVL, which is an index of volatility levels for nearby live cattle contract. Recently the volatility in that market has been about 12 percent or a relatively low level for live cattle. Back in late August the volatility was higher, above 16 percent.

How do the premiums compare under different volatility levels? An at-the-money put option on the April Live Cattle contract settled last Friday at $5.05 per cwt. Similar LRP coverage had a full cost of $6.37 per cwt., as LRP is generally more expensive before its subsidy is applied. A put with a $160 strike price settled at $0.35 per cwt. and the $160 LRP coverage was $0.42 per cwt. The full cost is similar at low volatility levels across strike prices for both options and LRP. What about when the volatility was higher? An at-the-money on the December Live Cattle contract settled at $6.10 cwt. on August 20. Similar LRP coverage was also higher at $8.26 per cwt. or more expensive before its subsidy. The driver behind the premium differences can be reduced to differences in the volatility across the different dates.

Since the start of this insurance year, LRP (and Livestock Gross Margin insurance) have not been available for sale on days with Cattle on Feed reports. The NASS publication Price Reactions After USDA Livestock Reports tracks the changes in cash prices before and after Cattle on Feed reports. When tasked, our students have trouble finding consistent biases or differences in magnitude around the reports. We use it as a prelude for seeking patterns in futures prices around reports too. Is there some consistent bias that is, not yet, common knowledge in the market?

The Cattle on Feed report is released on Fridays after trading has closed for futures and options markets. Predicting price responses is complicated by the nature of reports. Sometimes surprises move nearby live or feeder futures. Sometimes surprises move deferred months. Maybe the implied volatility is high on report dates and falls the next trading day. However, the shortest duration for LRP is 13 weeks out and premiums which mutes volatility changes. That aspect should not concern hedgers anyway. If the volatility is irrationally high on report dates, then not buying coverage on those dates would make hedgers better off.

— Matthew Diersen, Risk & Business Management Specialist, Ness School of Management & Economics, South Dakota State University

Livestock Marketing Information Center

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