Nebraska is in the Midst of Farm Country’s Boom

The farm economy in the Great Plains states are a bright spot in the otherwise gloomy national economic picture. In states like Nebraska, the housing market is holding up just fine, the banks are making plenty of loans, and employers keep adding jobs. Retail spending in the middle of the country was strong even before the $600 tax rebates this spring, and low interest rates and a tax provision in the economic stimulus bill are helping to goose already booming sales of farm equipment and pickup trucks.

The price of farmland in Nebraska has doubled in the past three years, primarily reflecting the boom in commodity prices. The increase also reflects the impact of rate cuts by the Federal Reserve that enabled buyers to bid up land with borrowed money. But if crop prices drop toward historical norms, it could mean sharp decreases in land prices that would devastate some farmers.

The availability of loans to farmers is the strongest it has been in five years, according to a survey by the Federal Reserve Bank of Kansas City, even as banks nationwide are becoming reluctant to lend money. The reason: There wasn’t much overbuilding of housing here, so most regional banks are not saddled with the same bad mortgage and construction loans as their counterparts on the coasts. The good times are not uniform across the region; livestock producers have been pummeled by high prices for feed and fuel.

In Blair, Neb., however, long-vacant storefronts have been turned into furniture shops and restaurants in the past couple of years, and Wal-Mart is looking to open a store just down the way. The billion-dollar Cargill plant that turns grains of corn into high-fructose corn syrup and ethanol just announced another $100 million expansion, adding a Danish company that makes enzymes out of corn — a reflection of booming global demand for all types of commodities.

That prosperity also shows itself on Lyle Schjodt’s farm a few miles outside Blair, where he farms 1,000 acres of corn and soybeans, 150 head of cattle, and 1,200 hogs. He still has the first tractor he ever bought, back in 1968, in a shed. “I’ve been farming for 39 years, and I haven’t seen a better year than this one,” he said. Schjodt is upgrading his equipment; he just ordered a $120,000 Case IH planter, a massive red device that deposits seed corn every seven inches in 30-inch-wide rows. He bought a new $50,000 Ford F-350 back in the spring, too. Nationally, truck sales are battered by skyrocketing fuel costs. But auto sales are up 8% in the Omaha area so far this year, according to sales tax receipts.

Nebraska Cattlemen oppose ethanol mandates

According to Nebraska Cattlemen leaders, the ethanol hearing hosted Monday by Senators Ben Nelson and Tom Harkin in Omaha was a great opportunity to hear all sides of the energy debate. But Michael Kelsey, Nebraska Cattlemen executive vice president, said the state’s largest industry, beef, was not been invited to speak.

According to Kelsey, “renewable fuels are very important to the Midwest, and the nation as a whole,” but the Cattlemen believe that “mandating production and usage has never been good over the long term for any industry, for several reasons.” Mandates promote inefficiency and set an artificial demand, Kelsey said. “The Renewable Fuel Standard (RFS) next year will require approximately 3.5 billion bushels of corn, which is nearly 30% of what is currently grown in the U.S., Kelsey said. “Remember that the RFS is a mandate, meaning the 3.5 billion bushels of corn must be used to produce fuel and cannot be used for food, feed or export.” Kelsey added that the RFS does not promote a working relationship between industries, but instead forces a relationship.

Leadership Nebraska class learns about Panhandle agriculture

Members of the Nebraska Chamber of Commerce & Industry’s Leadership Nebraska class visited two Scottsbluff operations Wednesday, where they learned about the sugar beet industry and research being conducted at the University of Nebraska Panhandle Research and Extension Center. During the previous two days of travel, they were introduced to a variety of issues and industries connected to Nebraska agriculture.

During their time in Scottsbluff, the learned about alternative crops, feedlot research projects and some of the area’s traditional crops, such as sugar beets, corn and dry edible beans. Researchers also discussed some of the issues facing area producers, such as limited water for irrigation, and the challenges of starting new industries through the development of new crops, such as canola and camelina for biofuels.

The group also visited the offices of Western Sugar Cooperative, where they viewed videos on the sugar beet industry, from its early years in the North Platte River Valley, to today’s harvesting methods. During lunch at the Harms Center, Mitchell Valley farmer Robert Busch and Nebraska State Sen. Phil Erdman addressed challenges to western Nebraska agriculture in general and issues regarding state legislation.

According to Don Mihovk, executive director of the two-year-old program, all citizens across the state have a stake in the future of Nebraska agriculture, and cooperative efforts will make it successful. Graduates of Leadership Nebraska are expected to be actively engaged in finding solutions that will enhance Nebraska’s growth and prosperity.

They will also conduct a series of ongoing meetings and programs to strengthen relationships and enhance the knowledge gained during their Leadership experience. The 23 members of the 2008 Leadership Nebraska class include business leaders, volunteers, educators, philanthropic workers and agriculture entrepreneurs.

Cuban trade team inspects Nebraska Panhandle dry bean industry

Two Cuban trade ambassadors visited the Panhandle last week to learn about Nebraska’s dry edible bean industry.

The Cuban officials met with scientists and technicians at the University of Nebraska Panhandle Research and Extension Center Wednesday afternoon, then toured Kelley’s dry bean processing facility at Mitchell.

Leadership Nebraska class learns about Panhandle agriculture

mbers of the Nebraska Chamber of Commerce & Industry’s Leadership Nebraska class visited two Scottsbluff operations Wednesday, where they learned about the sugar beet industry and research being conducted at the University of Nebraska Panhandle Research and Extension Center. During the previous two days of travel, they were introduced to a variety of issues and industries connected to Nebraska agriculture. During their time in Scottsbluff, the learned about alternative crops, feedlot research projects and some of the area’s traditional crops, such as sugar beets, corn and dry edible beans. Researchers also discussed some of the issues facing area producers, such as limited water for irrigation, and the challenges of starting new industries through the development of new crops, such as canola and camelina for biofuels. The group also visited the offices of Western Sugar Cooperative, where they viewed videos on the sugar beet industry, from its early years in the North Platte River Valley, to today’s harvesting methods. During lunch at the Harms Center, Mitchell Valley farmer Robert Busch and Nebraska State Sen. Phil Erdman addressed challenges to western Nebraska agriculture in general and issues regarding state legislation.

According to Don Mihovk, executive director of the two-year-old program, all citizens across the state have a stake in the future of Nebraska agriculture, and cooperative efforts will make it successful. Graduates of Leadership Nebraska are expected to be actively engaged in finding solutions that will enhance Nebraska’s growth and prosperity.

They will also conduct a series of ongoing meetings and programs to strengthen relationships and enhance the knowledge gained during their Leadership experience. The 23 members of the 2008 Leadership Nebraska class include business leaders, volunteers, educators, philanthropic workers and agriculture entrepreneurs.

Nebraska policy could expand statewide cell phone coverage

Sparsely populated areas of Nebraska with no cell phone service could be helped by a new policy from the Public Service Commission. It is making millions of dollars available for new cell towers.

For years, a roughly 7% phone surcharge that Nebraskans pay has mainly been used to bolster landline service in rural areas where it’s costly to provide phone service.

The new policy makes about $5 million of the Universal Service Fund available each year to build cell towers in parts of the state with scant coverage.

Seed corn is made in high-tech labs, but companies still need low-tech labor

Growing seed corn is already big business in Nebraska, and several of the big seed companies are expanding their operations in the state. On the research end, lab technicians can splice together genes that give kernels genetic resistance to corn borers and rootworms.

But the high-tech work of seed development still relies on a month of hard labor from teenagers who detassel corn each summer. And the number of detasselers needed in Nebraska may grow because two seed companies are expanding. Monsanto is building a new processing plant between Utica and Waco. And Pioneer is spending $13 million to upgrade a similar plant near York.

Nebraska officials: Ethanol should defend itself

These days corn-based ethanol is being blamed for worldwide food shortages, inflation and environmental problems. But Nebraska Ethanol Board officials say much of the criticisms of ethanol are based on flawed information, and the industry needs to do more to defend itself. Nebraska Ethanol Board officials meeting Friday in Kearney said their industry had been slow to defend itself.

“The ethanol industry, frankly, didn’t do as good a job being proactive,” said Ethanol Board Administrator Todd Sneller. The federal Renewable Fuels Standard is being challenged on several fronts, plus tax incentives and related tariffs are set to expire at the end of 2010. Nebraska ranks second nationally in ethanol production. The state’s Ethanol Board says Nebraska’s 21 ethanol plants annually produce more than 1.3 billion gallons of ethanol, using nearly a half billion bushels of corn.

Nebraska official: Ethanol plants focused on managing risk in tough times

As corn prices soar near the $8 mark, owners and managers at Nebraska’s 21 ethanol plants are focusing on risk management techniques with their ultimate success hinging on the ability to anticipate the cyclical nature of the commodities business. Most of the companies already up and running in the state “are on pretty solid ground” in that respect, according to Todd Sneller, administrator of the Nebraska Ethanol Board.

These days, however, there is little room for error. “While we hear a lot about $7 and $8 corn, I suspect most Nebraska plants are not operating with costs at that level,” Sneller said. “Many of the managers I’ve talked to have been through these cycles before and have been managing risk and building up capital reserves. Because of that foresight they will be better able to weather these challenging economic times.” Debt is another significant variable in the health of individual plants, Sneller noted. Many of Nebraska’s plants have been in operation for a period of time, allowing them to amortize much of that debt.

State Fair Petition Drive Fails To Get Necessary Signatures

A petition drive aimed at keeping the State Fair in Lincoln has failed to gather the signatures needed to put the issue on the November ballot. FairVoteNebraska.com announced Wednesday morning it had failed to gather the signatures necessary to get a referendum on the November ballot. The group is seeking to repeal LB1116, a new state law that moves the fair to Grand Island and clears the way for the University of Nebraska to build a research and development campus on the grounds. To make the November ballot, the group needed to get 60,000 valid signatures from 5% of registered voters in 38 counties.