January 16, 2018

Crop Insurance Change Directly Impacts Northern Plains

In a move that’s estimated to result in as much as $1.4 Billion worth of savings over 10 years, USDA’s Risk Management agency has announced it is removing the 10% buy up option for prevent plant claims in the 2018 and succeeding crop years.  The move came as a surprise to many industry experts, who said USDA did not consult with any commodity organizations before announcing the change.  The 5% buy up option will remain in place.

This isn’t the first time removal of the 10% prevent plant buy up option has come up.  USDA under the Obama Administration several times floated the idea, although the Agency at that time tried to run the change through Congress.  This time, RMA appears to have simply changed the policy provisions, although the changes are in line with spending cuts previously proposed.  A spokesman for the group says the changes are also the result of a Office of the Inspector General report from 2013 that determined RMA needed to  improve prevent plant provisions to be more cost effective and to encourage producers to plant a crop, where possible.

The cuts to prevent plant buy up coverage are expected to impact primarily the Northern Plains.  Over the 20 years from 1994 to 2013, RMA paid out nearly $4 billion in claims.  Of that amount, just over $2 billion went to producers in North Dakota and another $680 million went to producers in South Dakota.  That’s according to a study by Agralytica Consulting completed in 2015.  By comparison, the 5% buy up option paid out just $23.5 million over the same time span, although the study acknowledges that largely because so few producers took that option.

 

 

2018 Cattle Industry Convention Quickly Approaching – AUDIO

The 2018 Cattle Industry Convention and NCBA Trade Show will be here before you know it, and helping kick off that event in Phoenix Jan. 30-31 will be Cattlemen’s College, the premier education opportunity for cattlemen around the country.

Josh White, the executive director of producer education for the National Cattlemen’s Beef Association, which hosts the event, says there are many special things about this year’s event…tape

White 2018 Convention

White says live animal demonstrations will be another unique aspect of this year’s event…tape

Live Animal Demonstrations

According to White, also new to the 2018 Cattlemen’s College is an encore for the most popular classes…tape

Cattlemen’s College

White says it’s always wise to plan ahead for this kind of event…tape

Book Soon

White says there’s a chance to save money and headaches by not procrastinating…tape

Final Thoughts

Learn more and register online at www.beefusa.org.

South Dakotan Elected Chair of United Soybean Board

Lewis Bainbridge, a soybean farmer from South Dakota, was elected chair of the United Soybean Board (USB). Bainbridge, a third-generation farmer, previously served the board as USB vice chair. The soy checkoff, which works to maximize profit opportunities for U.S. soybean farmers through national investments, continues focusing on the areas of meal, oil and sustainability to increase farmer profit opportunities.

“We are very good at growing soybeans in the United States,” says Bainbridge. “Now, we need to focus on maximizing value of this crop.”

Knowing that volume alone is no longer enough to maintain market share is helping shape Bainbridge’s vision for the coming year. 

“In my time as chair, I want to continue the progress we have made in the past few years in differentiating our product and strengthening our competitiveness in the global marketplace, as well as building relationships with end users of U.S. soy,” says Bainbridge.

Bainbridge believes that by working together, the board and new CEO, Polly Ruhland, will continue making investments that benefit all soybean farmers.

Along with Bainbridge, USB elected nine directors to the USB Executive Committee:

  • Keith Tapp, Vice Chair – Kentucky
  • Jim Carroll, Secretary – Arkansas
  • Dan Farney, Treasurer – Illinois
  • John Dodson – Tennessee 
  • Gregg Fujan – Nebraska 
  • Woody Green – South Carolina
  • Meagan Kaiser – Missouri 
  • Rochelle Krusemark – Minnesota 
  • Mark Seib – Indiana

The farmers also selected members to serve on the Strategic Management Committee. Those farmers include Jacob Parker, North Carolina; Ray Schexnayder, Louisiana; and Doug Winter, Illinois.

USB’s 73 farmer-directors work on behalf of all U.S. soybean farmers to achieve maximum value for their soy checkoff investments. These volunteers invest and leverage checkoff funds in programs and partnerships to drive soybean innovation beyond the bushel and increase preference for U.S. soy. That preference is based on U.S. soybean meal and oil composition and the sustainability of U.S. soybean farmers. As stipulated in the federal Soybean Promotion, Research and Consumer Information Act, the USDA Agricultural Marketing Service has oversight responsibilities for USB and the soy checkoff.