OMAHA (DTN) -- USDA will require testing of lactating dairy cows crossing state lines for the H5N1 virus after fragments of the virus were found in tests of commercial dairy products.

QUICK DETAILS

-- USDA is now going to require H5N1 testing for all lactating dairy cows moving across state lines.

-- USDA also will mandate that laboratories and state veterinarians report all positive influenza A tests in livestock to USDA's Animal and Plant Health Inspection Service (APHIS).

-- FDA is now doing much broader testing of dairy products nationally to determine the extent of H5N1 fragments in pasteurized dairy products.

-- FDA said H5N1 is neutralized by pasteurizing. They have been testing H5N1 in chicken eggs and the heat needed to destroy the virus in chicken eggs is lower than pasteurizing.

-- CDC says there is a low risk to human health and has seen no increase in foodborne illnesses.

ORDER ON CATTLE MOVEMENT

USDA is issuing an order Thursday that will go into effect April 29 requiring dairy farmers sending lactating cows across state lines to have those cows tested for H5N1 before they can move. The testing at USDA labs would likely take one to three days, though USDA is looking to develop more rapid tests that can be used in the field, said Mike Watson, administrator for USDA's Animal and Plant Health Inspection Service.

Producers with cows that test positive will be required to provide epidemiological information on those cows, including animal movement tracing information, especially if they intend to move the cattle across state lines.

Cows that test positive would remain on their home farms and then be retested in 30 days before they could move across state lines, Watson said. He repeated that the virus is not fatal for cows, and they mostly recover quickly.

"We believe the current risk to the public is low and we continue to see infected cows recover after supportive care with little to no associated mortality," Watson said.

Watson and FDA officials indicated there have been situations where dairy farms have been reluctant to allow officials on their farms to test cattle. "That has been improving most recently," he said.

In another security measure, USDA's federal order will require labs and state veterinarians to report any positive influenza A cases in livestock to APHIS.

So far, USDA has reported 33 dairy herds in eight states have been confirmed as infected by USDA's National Veterinary Services Laboratories. The latest was another Idaho dairy on April 19.

Vilsack said the focus remains on lactating dairy cows because that is when cows are testing positive. Vilsack also said USDA will cover the costs of the tests.

The testing order does not apply to beef cattle and USDA so far has not found any positive H5N1 infections in beef cattle.

At least one dairy cow going to slaughter was asymptomatic, but USDA tested the cow's lung and it came back positive. The cow was condemned and did not enter the food supply.

H5N1 SPREADING MULTIPLE WAYS IN DAIRY COWS

In terms of spreading, USDA has noted spread between cows in the same herd, spread from cows to poultry and spread between herds, and now more testing has found asymptomatic cows that are positive without any signs of illness. Watson said there is likely spread due to mechanical transmission on farms such as from equipment in dairy parlors.

Agriculture Secretary Tom Vilsack said there have been at least eight instances in which a dairy farm has infected an adjacent poultry farm. USDA officials said that was validated because the sequence of the virus was identical on both the dairy farms and the poultry operations.

"This is a novel circumstance that's not been confronted before, that's why there's a premium in knowledge and information and testing," Vilsack said.

FEDERAL RESPONSE RAMPING UP

The tests showing fragments of the virus in commercial dairy products moved federal officials to open up Wednesday about what they know.

Officials held two separate press calls Wednesday. FDA and the Centers for Disease Control, along with USDA, held a call to talk about the safety of the milk supply and increased testing of dairy products. USDA then held a separate call to discuss the department's federal order on dairy cow testing and movement.

FDA reported Tuesday that samples of tested milk products had found genetic material of the H5N1 virus, but pasteurization had destroyed the effectiveness of the virus.

Don Prater, FDA acting director of Food Safety and Applied Nutrition, said the positive finding of the H5N1 virus in dairy products has prompted the FDA to conduct a nationwide testing program for dairy products.

"We take this current situation and the safety of the milk supply very seriously. FDA and USDA have indicated that based on information currently available, our commercial milk supply is safe because both of the pasteurization process and the diversion or destruction of milk from sick cows. This remains the case right now.

When asked about how destroyed fragments of the H5N1 virus got into commercial dairy products, Vilsack pointed out cows with symptoms of the virus produced milk that is discolored and thicker than normal milk and that milk is being destroyed. But cows that were asymptomatic did not show those signs.

"We do know there were asymptomatic cows -- cows that had the virus but didn't necessarily exhibit any sign that milk ... didn't necessarily give any indication that it had had virus," Vilsack said.

Vilsack added it's important to reiterate that the virus did not survive pasteurization.

PRODUCER GROUP RESPONSE

The National Milk Producers Federation called USDA's testing actions "appropriate" due to the presence of virus in dairy herds and the focus on both human and animal health.

"Today's announcements and actions underscore that continued concern and focus on the well-being of animals and those who care for them," said Gregg Doud, president and CEO of NMPF.

Doud added that USDA, FDA and scientific research has established that the consumer milk supply is safe. Pasteurization renders the H5N1 virus, like other viruses, inactive, an important reminder to consumers of its value as a basic safeguard for human health. "We appreciate that these agencies are sharing this message, which will help alleviate any concerns consumers may have."

USDA's federal order: www.aphis.usda.gov/sites/default/files/dairy-federal-order.pdf

Also see, "FDA Finds Fragments of HPAI Virus in Pasteurized Milk Samples," https://www.dtnpf.com/…

Chris Clayton can be reached at Chris.Clayton@dtn.com

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(c) Copyright 2024 DTN, LLC. All rights reserved.

LINCOLN, Neb. (DTN) -- Energy-related payments to farmers for oil, natural gas and wind production have continued to be a significant form of farm income and vary widely depending on where farmers operate, according to a new study by USDA's Economic Research Service (ERS).

ERS studied data from USDA's Agricultural Resource Management Survey in its analysis covering 2011-20, finding that 3.5% of farms received energy payments and the average annual payment was more than $30,000.

It found average annual energy payments were as high as $62,944 in 2013 and as low as $14,032 in 2020 and tracked "closely over time" with oil prices, according to study findings.

"Energy payments were more common in counties producing oil and natural gas than in those with wind energy development," the study said. "Larger farms were significantly more likely to receive energy payments and higher payments on average."

ERS said higher crude oil prices through 2014 led to increases in the size of energy payments to farms with oil or natural gas resources.

Here are nine characteristics of farms receiving energy payments from 2011-20, according to the ERS:

-- Average annual energy payments were the largest and most common in the Plains region of Kansas, Nebraska, North Dakota, Oklahoma, South Dakota and Texas where energy production is most abundant. ERS found that 7.4% of farms in those states received payments with the largest at $39,087.

Payments were least common at 1.45% of farmers in Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi and South Carolina and the smallest at an average of $10,953 in Illinois, Indiana, Iowa, Michigan, Minnesota, Missouri, Ohio and Wisconsin.

-- Farmers were between an estimated 4.5% and 5.6% more likely to receive energy payments if located in oil and natural gas-producing counties than in counties with only wind energy production.

-- On average, payments were higher in counties with only oil and natural gas production at $32,167 than in those with only wind energy production at an average of $17,303.

"However, the median payment in wind counties was larger than the median payment in oil and gas counties," the study said.

"This difference is due to an uneven distribution of oil and gas payments, which included a large number of small payments and a small number of very large payments. This report did not find a statistically significant difference in the size of energy payments after accounting for farm size, location, and the asymmetric distribution of oil and gas payments."

-- ERS said the likelihood of and size of energy payments increased with the size of the farm.

"Midsize family farms (with gross cash farm income between $350,000 and $999,999) were more likely to receive energy payments; non-family farms were less likely," the report said.

"Controlling for other factors, payments were larger for midsize and large-scale family farms (with gross cash farm income of $1 million or more). Although the average payment size varies by farm operator demographic groups, this report did not find a statistically significant difference in energy payments after accounting for farm size and geography. This suggests that location, farm size, and energy market conditions were the key determinants of payment size."

-- ERS said it found Hispanic farm operators and those farmers with less education were less likely to be receiving energy payments, "even after accounting for other farm characteristics and location."

-- In 2020, 54% of all family farms had negative income from farming, ERS said, and 51% of farmers and their families sought other opportunities to earn income, such as working off-farm.

-- From 2011-20, on average, a small fraction of farmers received energy payments.

"This is in part because many farm operators (40% in 2017) did not own their land, and most agricultural producers (81% in 2014) did not own the mineral rights associated with their land," ERS said.

"The average payment was substantial, however, at $30,482. Payments were particularly large during the early years of the sample when oil prices were high and rising. Payments averaged $38,788 in 2011, increased to $62,944 in 2013, and then fell to $14,000 to $25,000 between 2015 and 2020. The total payments reached a maximum of $4.4 billion in 2014 before declining in subsequent years."

The average annual payment from energy, however, exceeded average government payments of $19,858. "In 2013, the average energy payment was 60% of the typical value of off-farm income. In 2020, however, during the COVID-19 pandemic when energy payments and off-farm income were lower, energy payments represented just 15% of off-farm income."

-- Less than 2% of farmers owning fewer than 100 acres received payments compared to more than 13% with more than 1,000 acres. "Energy payment size similarly grows with farm size, although the size of payments does not differ dramatically between the 101 to 500 and 501 to 1,000-acre groups, each with average payments of about $26,000. Payments for those owning fewer than 100 acres averaged $12,351 while among farm operators owning more than 1,000 acres, payments were four times that value ($56,797)."

-- ERS said as farmers' education increases, so does the "likelihood of receiving energy payments and the magnitude of the payments."

Just 2.2% of farms that have an operator with less than a high school diploma received payments, with an average of $19,331.

"Among those with a college degree or more, 4.2% of farmers received a payment, with an average of $43,278. The implication is that those who have more formal education are more likely to benefit from energy production on their farm."

Read the USDA report: https://www.ers.usda.gov/…

Todd Neeley can be reached at todd.neeley@dtn.com

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OMAHA (DTN) -- Average retail prices for all eight major fertilizers were up from last month in the third week of April 2024, marking the fourth consecutive week all prices have been higher, according to sellers surveyed by DTN.

Despite the increases, no fertilizer price was up significantly, which DTN designates as anything 5% or more.

The average price for DAP was $780 per ton, MAP $830/ton, potash $513/ton, urea $585/ton, 10-34-0 $641/ton, anhydrous $794/ton, UAN28 $364/ton and UAN32 $418/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.64/lb.N, anhydrous $0.48/lb.N, UAN28 $0.65/lb.N and UAN32 $0.65/lb.N.

The Fertilizer Recommendation Support Tool (FRST) announced a nationwide release on Monday, according to a blog post at the University of Minnesota Extension Minnesota Crop News website (https://blog-crop-news.extension.umn.edu/…). FRST is a decision aid that provides an unbiased science-based interpretation of soil test phosphorus and potassium values for crop fertilization.

The project is a collaboration of over 100 soil science and agronomic professionals representing 50 universities, four divisions of USDA, several not-for-profit organizations and one private-sector partner. The University of Minnesota is represented on the project by Extension nutrient management specialist Daniel Kaiser.

Right now, FRST provides critical phosphorus and potassium soil test values. In the next phase, FRST will provide research-based phosphorus or potassium rate response information to assist farmers in selecting the minimum fertilizer rates expected to produce maximal crop yield.

For more information about FRST, visit www.soiltestFRST.org and click on "Tool."

Most fertilizers are lower compared to one year ago, but one fertilizer is slightly higher. MAP is 2% higher looking back a year.

The remaining fertilizers are lower. DAP is 6% less expensive, urea is 7% lower, 10-34-0 13% less expensive, UAN28 is 14% lower, UAN32 is 18% less expensive and both potash and anhydrous are now 20% lower compared to a year prior.

DTN gathers fertilizer price bids from agriculture retailers each week to compile the DTN Fertilizer Index. DTN first began reporting data in November 2008.

In addition to national averages, MyDTN subscribers can access the full DTN Fertilizer Index, which includes state averages, here: https://www.mydtn.com/….

Russ Quinn can be reached at Russ.Quinn@dtn.com.

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(c) Copyright 2024 DTN, LLC. All rights reserved.

LINCOLN, Neb. (DTN) -- Archer Daniels Midland's (ADM) Chief Financial Officer Vikram Luthar will resign effective on Sept. 30, 2024, amid a federal investigation into the company's accounting practices.

ADM said in a filing Monday with the U.S. Securities and Exchange Commission that Luthar will receive an annual cash performance award of $743,419, as well as company shares for his 2021 performance.

Luthar is the top executive to leave the firm since ADM disclosed accounting problems in its nutrition division. The U.S. government initiated two investigations and was required to revise six years of financial reports.

Luthar was placed on administrative leave beginning in January 2024 when ADM launched an internal investigation. He joined ADM in 2004 as CFO of its nutrition division after a stint with General Motors. Luthar became ADM's overall CFO in 2022.

ADM reported in March 2024 that it found sales between company business units were reported incorrectly. This means, according to ADM, the company overstated its annual operating profit in the nutrition segment by 9.2%.

The company reported Monday that it reached a "transition agreement" with Luthar.

"Until such resignation date, Mr. Luthar will be available to assist the company and provide transitional support as needed as a non-executive employee," ADM said in a 10-K filing with the SEC.

"While employed during the transition period, Mr. Luthar will continue to be paid his base salary and be eligible to participate in the company's benefit plans subject to their terms."

As part of the resignation agreement, ADM said Luthar "agrees to reasonably cooperate" in connection with "any matter with which the ADM colleague was involved or any existing or potential claim, investigation, administrative proceeding, lawsuit or other legal or business matter."

Reuters reported in March that current and former ADM employees received grand jury subpoenas from the U.S. Department of Justice, which typically order the production of documents or to provide testimony.

Todd Neeley can be reached at todd.neeley@dtn.com

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(c) Copyright 2024 DTN, LLC. All rights reserved.

This article was originally published at 3:03 p.m. CDT on Monday, April 22. It was last updated with additional information at 3:54 p.m. CDT on Monday, April 22.

**

OMAHA (DTN) -- The winter wheat crop's good-to-excellent condition rating dropped 5 percentage points nationwide last week, likely due to dry conditions and possible frost damage in some areas, USDA NASS said in its weekly Crop Progress report on Monday. Meanwhile, corn and planting progress continued ahead of their five-year average paces last week.

A stretch of wetter weather forecast to begin later this week and continue into early May could flip the situation, though, with winter wheat benefiting from the moisture but row-crop planting facing delays.

CORN

-- Planting progress: Corn planting moved ahead 6 percentage points last week to reach 12% complete nationwide as of Sunday. That's now equal to last year's progress and 2 points ahead of the five-year average of 10%. "Texas corn is 68% planted and Missouri is 47% done, while major corn-producing states Iowa and Illinois are 13% and 11%, respectively," said DTN Senior Analyst Dana Mantini.

-- Crop development: 3% of corn was emerged as of Sunday, 1 point ahead of both last year and the five-year average of 2%.

SOYBEANS

-- Planting progress: 8% of soybeans were planted nationwide as of Sunday. That is equal to last year's pace and is 4 percentage points ahead of the five-year average of 4%. "Louisiana's soybean crop is 42% planted compared to the average of just 25%, and Mississippi is 28% planted -- 5 percentage points above the average," Mantini noted. "Illinois is 11% planted, and Iowa is just 8% planted."

WINTER WHEAT

-- Crop development: 17% of winter wheat was headed as of Sunday. That is 1 point ahead of 16% at this time last year and 4 points ahead of the five-year average of 13%.

-- Crop condition: 50% of the crop was rated in good-to-excellent condition, down 5 points from 55% the previous week but still up from 26% a year ago. Sixteen percent of the crop was rated very poor to poor, down from 41% a year ago. "Major winter wheat producer Illinois' crop is rated 83% good to excellent, with Kansas' crop at 36% good to excellent and 26% rated poor to very poor," Mantini said.

SPRING WHEAT

-- Planting progress: 15% of spring wheat was planted as of Sunday, 11 points head of 4% last year and 5 points ahead of the five-year average of 10%. "Washington's spring wheat is 60% planted, and Idaho is 55% planted," Mantini said. "Minnesota is 18% planted, well ahead of its 3% average, while North Dakota is just 7% planted. South Dakota, at 40% planted, is well ahead of its 21% average."

-- Crop development: 2% of spring wheat was emerged, 1 point ahead of 2% last year but 1 point behind the five-year average of 3%.

THE WEEK AHEAD IN WEATHER

Farmers across the nation's midsection will have a few suitable days for fieldwork this week before an extended period of wet weather sets in, according to DTN Ag Meteorologist John Baranick.

"A very active pattern is about to set up across the middle of the U.S., and that's going to bring some very wet weather to much of the Plains and Midwest later this week and probably the first half or so of May," Baranick said. "I will never tell farmers what to do, but if they have some time over the first half of this week to get some work done, I would take the opportunity. It might be hard to find better conditions for a while.

"What is going to change is that a ridge will generally build over the East while we see system after system in the pipeline move into the West, develop, and then move from the Central or Southern Plains through the Midwest and Great Lakes. That overall background situation is what will drive multiple storm systems to move through ag country starting on Thursday and then come at a rapid pace for at least two weeks. These systems will come with widespread showers and thunderstorms, heavy rain, severe weather, and strong background winds, creating hazards for fieldwork and potentially for winter crops. At the same time, this rain is needed over most of the Plains and western Midwest, so it is a kind of double-edged sword.

"Not all areas will get heavy rain out of each storm. But with breaks likely being short-lived, this could push back progress a bit into May. That is not overall a bad thing for most areas, but it could have an impact.

"Winter wheat producers in the southwestern Plains finally have some really good chances at meaningful rain. It may not be perfect, but the setup does favor increased and above-normal precipitation over the next couple of weeks."

To view weekly crop progress reports issued by National Ag Statistics Service offices in individual states, visit http://www.nass.usda.gov/…. Look for the U.S. map in the "Find Data and Reports by" section and choose the state you wish to view in the drop-down menu. Then look for that state's "Crop Progress & Condition" report.

**

Editor's Note: How are your crops looking? Are they better, worse or right on track with USDA NASS' observations this week? Send us your comments, and we'll include them in next week's Crop Progress report story. You can email comments to Anthony.greder@dtn.com or direct message him on Twitter @AGrederDTN. Please include the location of where you farm.

**

Anthony Greder can be reached at anthony.greder@dtn.com

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(c) Copyright 2024 DTN, LLC. All rights reserved.

LINCOLN, Neb. (DTN) -- Northeast Iowa residents continue to see dangerous levels of nitrates in drinking water and environmental groups have asked the U.S. Environmental Protection Agency (EPA) to investigate and take steps to clean it up in a petition filed on April 16.

The groups asked the EPA to take "immediate action" under the Safe Drinking Water Act to launch nitrate remediation in the region that features intensive livestock and crop production.

The petition, spearheaded by the Iowa Environmental Council and Food and Water Watch, said private and public wells have regularly exceeded the federal limit of 10 milligrams of nitrate per liter of drinking water for years.

State officials have taken steps to cut nitrate pollution in the karst region of Iowa but the petition said it hasn't been enough.

"The ongoing, persistent contamination of the karst region's water supplies, despite these efforts, demonstrates their ineffectiveness," the environmental groups said. "If EPA fails to step up, the ongoing contamination will continue."

In karst landscapes, dissolving bedrock creates sinkholes, caves, springs, sinking streams and other features. Karst includes limestone, marble, gypsum and other rock types. Those features make groundwater more susceptible to contamination.

The groups asked EPA to require Iowa officials to identify residents who drink from private wells, provide alternative drinking water sources, create a plan to implement drinking water analysis for all residents and develop plans to reduce nitrate concentrations.

The petition also calls on EPA to investigate the state's permit requirements and best management practices for nutrient management from concentrated animal feeding operations and investigate other possible sources of nitrate pollution.

The groups asked EPA to determine what enforcement measures should be used to reduce nitrogen pollution from CAFOs and other "industrial agriculture" sources and to provide a timetable to reduce nitrate contamination.

The petition requests that EPA prohibit CAFOs in the region from "opening, expanding or modifying operations" in the karst region "unless and until nitrate concentrations in wells with historically high levels of nitrate consistently fall below the MCL of 10 mg/L."

A year ago, a similar petition was filed with EPA asking for similar steps to address nitrate pollution in the karst region of southeast Minnesota.

"EPA acknowledged the urgency of this problem in responding to a similar petition filed in Minnesota," the group said in the latest petition. "That petition addressed the same geologic formation and many of the same underground sources of drinking water. The EPA must act now to address this long-ignored health crisis in Iowa and ensure clean drinking water for Iowans."

The petition said about 250,000 people rely on community water systems and 63,000 access drinking water from private wells in northeast Iowa.

Also, the Iowa Department of Natural Resources identified 989 medium and large animal feeding operations with nearly 1.1 million animals in the region as of 2022.

The petition said that up to 80% of nitrate loading in karst regions is often traced to nitrogen fertilizers "quickly flushed" from soils into the karst and groundwater systems during rains.

"According to an analysis of USDA's recently released agricultural census data, Iowa's animal production industry produces far more animal waste than any other state -- 109 billion pounds of manure annually, a 78% increase since 2002 and more than 25 times the state's human population," the groups said in their petition.

"In the 12-county area, much of the land cover is devoted to agriculture. Over the last few decades, more acreage has been converted to row-crop production, with most of the conversion from pasture/grassland. There is a high concentration of agriculture in a sensitive karst landscape with a high sensitivity to groundwater contamination," according to the petition.

"Despite Iowa applying for and being granted 'primacy' under the SDWA, state and local officials have failed to do what is needed to correct the pervasive threat to human health. The data confirm that past measures employed by the state have been unsuccessful at reducing nitrate concentrations in crucial drinking water sources to below federal and state standards."

Todd Neeley can be reached at todd.neeley@dtn.com

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NEVADA, Iowa (DTN) -- Lina Kahn, the chairwoman of the Federal Trade Commission, appeared to listen intently as farmers told her why her agency should step in and block the $3.6 billion sale of an Iowa nitrogen fertilizer plant to Koch Industries.

More than 100 farmers attended a listening session on Saturday with Kahn and FTC staff organized by the Iowa Farmers Union. The farmers oppose Netherlands-based Orascom Constructions Industries (OCI) selling the seven-year-old fertilizer plant on the Mississippi River near Wever, Iowa, in the state's southeast corner.

An added twist to the plant sale is that it comes after an estimated $545 million in federal, state and local tax incentives were approved to help OCI build the plant and operate it. As incentive packages were being put together more than a decade ago, then-Gov. Terry Branstad blamed Koch Industries for spreading complaints about the project. "They want to keep out competition," the Des Moines Register quoted Branstad at the time.

Koch is one of four companies -- along with CF Industries, Nutrien and Yara -- that control 75% of nitrogen supplies

Republicans in Iowa backed the tax credits for OCI but have been largely silent about the sale since it was announced in December. Iowa Democrats opposed funding for OCI, but Democratic legislators wrote the Department of Justice and other federal and state agencies earlier this year calling for investigations into the sale.

"What's going to happen to those hundreds of millions of dollars in tax incentives that were given out to continue this system? Are we going to see the tax incentives that still exist, the ones that are ongoing, be transferred to Koch as they come in and acquire what would be more consolidation and less competition and increasing input prices?" said Iowa state Rep. Megan Srinivas, a Democrat. "Are we going to have them pay back some of what has already been utilized, especially because the whole purpose of having them here has been defeated?"

The plant produces roughly 2 million metric tons (mmt) of nitrogen fertilizer products with the bulk of it liquid UAN.

In selling the plant, OCI also is selling its stake in a fertilizer company in Abu Dhabi. Combined, the two sales are worth $6.2 billion in cash going back to OCI, which wants to "return capital to shareholders," along with looking for other investments in the energy space.

MISSOURI FARMERS WEIGH IN

Harold Beach and Derek England drove to the meeting from Edina, Missouri, where they are board members for Northeast Missouri Cooperative Services Inc. Farmers in that area also rely heavily on the Iowa Fertilizer Co. to add some competition to local fertilizer prices. England said Iowa Fertilizer Co. was offering nitrogen products $70 a ton less than other regional suppliers this spring, including CF Industries and a Koch plant.

"The northeast corner of Missouri is pulling a lot of nitrogen out of that plant as well, and it has definitely had a moderating effect," England said. He added, "Without fail, Koch has always had the highest prices in our area. What is that plant going to be changing once Koch owns it?"

Beach said the sale matters even to small cooperatives. He called on Kahn to have the political will to halt the sale. "I would like you to be fearless and courageous, and be a Teddy Roosevelt, because it matters to all of us."

FTC ROLE

Kahn would not say whether the FTC is investigating the Iowa Fertilizer Co. sale, but she did indicate that holding a public listening session is one of the typical steps the FTC takes when looking into anti-competitive moves.

"If we see monopolistic practices in the market, we're going after them," she said.

Kahn said the FTC typically files a federal lawsuit if its investigation finds antitrust problems in a sale. "Ultimately it's the courts that decide whether we should let it go through or should we not let it go through."

Kahn pointed to other FTC work in agriculture, such as suing two major pesticide companies for not allowing generic manufacturers of pesticides into the market. The FTC also has worked on farmers' rights to repair their own equipment, which drew applause from the crowd.

"We've been reviving our work against illegal repair restrictions," Kahn said. "We've brought a whole set of lawsuits in that vein and are going to be continuing to push forward."

Josh Manske, a board member of the Iowa Farmers Union, was one of multiple farmers who called on the FTC to look into market manipulation of nitrogen prices. The farmers highlighted how nitrogen prices in both 2012 and 2022 soared as corn prices increased.

"It's always interesting when the price of No. 2 corn goes up, our fertilizer goes up," Manske said.

KOCH RESPONDS

A spokesman for Koch Fertilizer in an email to DTN said the company was aware of Saturday's listening session and respects the right of people to voice their opinion. Still, Koch believes the FTC will allow the sale to go forward.

"We have received support from many customers and are confident the Federal Trade Commission will allow our transaction to proceed after they have concluded their analysis and customer outreach," Koch stated.

The company added, "This acquisition builds on the $2 billion in investments we have made in our North American facilities to increase production, enhance safety and reliability, and improve our customers' access to the products and service they need to feed and fuel the world."

Koch stated the company is committed to growing production at the plant in Wever.

"We have been impressed by the Wever employees and look forward to welcoming them to the Koch Fertilizer family. Together, we will continue our history of providing our Corn Belt customers with the excellent products and service they need and deserve."

FARMERS UNION ENGAGEMENT

The Iowa Farmers Union and 18 other groups, including the National Farmers Union and the Union of Concerned Scientists, wrote the Department of Justice and FTC, along with state officials, calling on them to halt Koch's purchase.

Aaron Lehman, president of Iowa Farmers Union, said the proposed sale would reduce the competition in the fertilizer industry the plant was built to produce. In an op-ed, he said of the sale, "It is another painful example of public investments being misused to increase monopolies."

On Saturday, Lehman noted, "The fact that this room is full of concerned citizens here on April 20 right in the middle of a busy spring fieldwork season is a testament to the importance of our topic."

For the National Farmers Union, the fight over the Iowa Fertilizer Co. also fits directly into the "Fairness for Farmers" campaign, which NFU launched three years ago specifically to deal with anti-competitive market practices within agriculture.

"This is huge to have Chair Khan and the resources of the FTC to hear from those in the community who are going to be directly impacted," said Rob Larew, NFU's president, who also attended the listening session.

DIFFERENT TAKE

Scott Henry, who farms near Nevada, said he supports "holding bad actors accountable," but he also noted OCI was originally an Egyptian-owned company when the project began. Now, it could be sold to a U.S.-based company. He urged some caution in ensuring Koch gets a fair shake.

"We have a domestic-owned company looking to buy it," Henry said. "And so, I do think from a foreign-interest standpoint, there are some wrinkles here that we need to just be careful because I do want to continue to support American companies regardless of what I may believe or not believe about their political beliefs or other practices."

Chris Clayton can be reached at Chris.Clayton@dtn.com

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(c) Copyright 2024 DTN, LLC. All rights reserved.

By DTN Staff

This article was originally published at 2:03 p.m. CDT on Friday, April 19. It was last updated with DTN analysis at 2:33 p.m. CDT on Friday, April 19.

**

OMAHA (DTN) -- Cattle and calves on feed for the slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 11.8 million head on April 1, 2024. The inventory was 1% above April 1, 2023, USDA NASS reported on Friday.

The inventory included 7.27 million steers and steer calves, up 2% from the previous year. This group accounted for 61% of the total inventory. Heifers and heifer calves accounted for 4.56 million head, up 1% from 2023.

Placements in feedlots during March totaled 1.75 million head, 12% below 2023. Net placements were 1.69 million head. During March, placements of cattle and calves weighing less than 600 pounds were 330,000 head, 600-699 pounds were 260,000 head, 700-799 pounds were 460,000 head, 800-899 pounds were 466,000 head, 900-999 pounds were 170,000 head, and 1,000 pounds and greater were 60,000 head.

Marketings of fed cattle during March totaled 1.71 million head, 14% below 2023.

Other disappearance totaled 57,000 head during March, 8% above 2023.

DTN ANALYSIS

"Friday's Cattle on Feed report comes as a sweet surprise to the cattle complex, as placements were expected to be lower, but the actual 12% decline compared to a year ago wasn't forecast," said DTN Livestock Analyst ShayLe Stewart.

"To break the placement data down more thoroughly, there were exactly 1,746,000 head of feeder cattle placed in March of 2024, which is 12% less than a year ago, and 8% less than a month ago. When comparing Friday's data to a year ago, there wasn't one weight division that saw greater placements year over year. When comparing Friday's data to the placements seen last month, the only weight division that saw greater month-over-month placements was the feeders weighing 1,000 pounds or more. And the only states that saw greater month-over-month placements were Texas (up 3%) and Oklahoma (up 8%), which could be being influenced by feeder cattle imports from Mexico.

"Analysts forecast total on-feed numbers to be around 102% of a year ago, but to the market's surprise, total on-feed numbers came in at 11,838,000 head, which is just 1% more than a year ago. Yes, total on-feed numbers are greater than a year ago, but thankfully, the report's data didn't surpass the market's expectations. And seeing the number of cattle marketed less than expected isn't bewildering given that packers have decreased processing speeds to manage supplies.

"All in all, Friday's Cattle on Feed report will likely be seen as neutral to somewhat supportive but likely won't have much of an effect on Monday's trade."

**

DTN subscribers can view the full Cattle on Feed reports in the Livestock Archives folder under the Markets menu. The report is also available at https://www.nass.usda.gov/….

(c) Copyright 2024 DTN, LLC. All rights reserved.

LINCOLN, Neb. (DTN) -- Consumers will continue to have access to E15 this summer after the Biden administration on Friday granted an emergency waiver.

For the third-consecutive year the Environmental Protection Agency announced an emergency fuel waiver in response to the ongoing effects of the war in Ukraine and the Middle East.

The EPA was running up against a hard May 1 deadline for terminals to be able to continue selling E15 to retailers.

"This action will provide communities with relief at the pump from ongoing market supply issues created by the ongoing war in Ukraine and conflict in the Middle East by increasing fuel supply and offering a variety of gasoline fuel blends from which consumers can choose," EPA said in a news release.

"This waiver will help consumers protect themselves against fuel supply shocks by reducing our reliance on imported fossil fuels, continuing to bolster U.S. energy independence, all while supporting American agriculture and manufacturing. Current estimates indicate that on average, E15 is about 25 cents a gallon cheaper than E10."

In about two-thirds of the country E15 cannot be sold from terminals starting on May 1 and at retail stations starting on June 1.

"Because the RVP of E10 and E15 gasoline used by consumers will be the same, EPA does not expect any impact on air quality from this limited action," the agency said.

"EPA's research has shown no significant impact on evaporative emissions when the 1-psi waiver is extended to E15. With no significant impacts on emissions from cars and trucks, EPA expects consumers can continue to use E15 without concern that its use in the summer will impact air quality."

EPA's emergency fuel waiver will go into effect on May 1 when terminal operators would otherwise no longer be able to sell E15 in the affected regions of the country and will last through May 20 which is the statutory maximum of 20 days.

EPA said it would continue to monitor the gasoline supply with industry and federal partners, and the agency "expects to issue new waivers effectively extending the emergency fuel waiver until such time as the extreme and unusual fuel supply circumstances due to the ongoing war in Ukraine and conflict in the Middle East are no longer present."

In February 2024, the EPA issued a final rule allowing eight Midwest states to permanently sell year-round E15 but delayed the effective date to 2025. The states include Illinois, Iowa, Minnesota, Missouri, Nebraska, Ohio, South Dakota and Wisconsin.

American Coalition for Ethanol CEO Brian Jennings said in a statement the industry was grateful the administration listened to the calls for a waiver.

"ACE members pushed EPA to take this action during our D.C. fly-in last month and nearly 200 of our grassroots advocates contacted President Biden and Administrator (Michael) Regan this month in support of an emergency waiver before the start of the 2024 summer driving season," Jennings said in a statement.

"Today's action is an important reminder that higher ethanol blends play a critical part in our nation's energy security as well as contribute significant climate and air quality benefits. A permanent solution to year-round E15 will ensure these benefits aren't left to the whim of ad hoc agency decision making in the future."

Emily Skor, CEO of Growth Energy, said the continued E15 sales will give consumers lower-cost options.

"Given ongoing supply threats stemming from unrest in Ukraine, the Middle East, and Red Sea shipping routes, this waiver will serve as a valuable shield against volatile fuel costs and help more working families benefit from E15, which has been saving drivers 10 to 30 cents per gallon," she said.

Renewable Fuels Association CEO and President Geoff Cooper said the waiver will allow "uninterrupted sales of E15" while extending gasoline supplies, preventing fuel shortages, protecting air quality and reducing carbon emissions.

Cooper said the waiver is needed but pointed to the need for a permanent legislative solution.

"For the environmental and economic benefits of E15 to be fully realized, the marketplace needs long-term certainty," he said.

"It's time for Congress to pass legislation -- like the 'Nationwide Consumer and Fuel Retailer Choice Act' -- that would deliver permanent year-round access for E15 and finally break the cycle of ad hoc, stop-gap emergency waivers."

Minnesota farmer and NCGA President Harold Wolle said in a statement the waiver was "good news for corn growers" and rural Americans who will "benefit economically from this decision" and for consumers who will save money at the pump.

Joshua Shields, Poet LLC's vice president of corporate affairs said that maintaining E15 access would "bring big benefits to drivers as we head into the summer driving season when gas prices typically rise. This decision will play a crucial role in ensuring Americans have the freedom to fuel with a clean, affordable option at the pump when they need it most."

Read more on DTN:

"E15 Year-Round Waiver Granted," https://www.dtnpf.com/…

Todd Neeley can be reached at todd.neeley@dtn.com

Follow him on social platform X @DTNeeley

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