IFB Weekly: Most Recent Talking Points

Note: For IFB’s full comprehensive talking points, please contact your local county Farm Bureau or visit the Leaders’ Portal.

Illinois Agriculture at a Glance

Headline Messages:

96% of Illinois’ 70,900 farms are family owned.
Illinois has 27 million acres of farmland – 24 million cropland acres, 824.1K pastureland acres, 1.4 million forestland acres.
In 2021, Illinois ranked:
- #1 in the nation in soybean production and #2 in corn production.
- #4 in the nation in pork production.
- #2 in the nation for farmers markets.
Renewable Fuels in Illinois:
- Illinois ranks 3^rd nationwide in ethanol production and 4^th in the nation in biodiesel production.
$1 out of every $10 generated in Illinois comes from agriculture.

Supporting Messages:

More than $137 billion in Illinois’ economic activity stems from production-agriculture-related industries.
Illinois food and agriculture businesses account for more than $359 billion in economic output in the state.
Cook County derives $17.8 million in economic activity from agriculture and related industries.
1 in 17 Illinois jobs are related to agriculture; agriculture and related industries account for more than 482,000 jobs in Illinois.
Illinois agriculture contributes $25.1 billion in gross receipts from sales of crops & livestock.

Why Does the Farm Bill Matter for Everyone?

Food security: America’s public investment in agriculture through farm bill programs helps secure our domestic food supply and keep our country strong while consumers get the benefits of high-quality, affordable food.
Jobs: The food and agriculture industry supports nearly 21.5 million U.S. jobs (that’s more than 14% of U.S. employment) and contributes more than $1 trillion to U.S. gross domestic product.
Conservation: The farm bill’s investment in ag research and conservation programs are critical to ensuring the productivity and sustainability in our farms and domestic food supply.
Risk Management: We all depend on the success of American agriculture so it’s important for America’s farmers and ranchers to be supported by strong farm programs as they face down weather disasters, high supply costs and inflationary pressures. Managing risk is critical to keep food on our tables.
Addressing Hunger: The farm bill includes nutrition programs intended to ensure the most vulnerable among us have access to healthy, affordable food.

General Inflation Talking Points

Source: American Farm Bureau Federation Market Intel Report, Feb. 8, 2023; USDA Farm Income Forecast, Feb. 7, 2023; Illinois Farm Bureau

Headline Messages:

Inflation remains at the top of American’s minds heading into the spring planting season.
Farmers aren’t alone in facing a tough economy, but many family farms are struggling to hang on in the face of skyrocketing input costs.
Like consumers, farmers are price-takers not price-makers.
USDA’s most recent Farm Sector Income Forecast (Feb. 7, 2023) reports U.S. net farm income to fall nearly 16% from last year while costs are expected to increase 4% on top increased production expenses.
Increased operating costs, lower prices for livestock and crops, and the end of pandemic-related assistance are among the factors contributing to a loss in farm income, down $136.9 billion.
While fuel and fertilizer costs are expected to decline from record highs, marketing, storage and transportation costs are forecast to increase 11%; labor to increase 7%.
The farm in come forecast is a stark reminder that America’s farmers are not reaping big benefits from higher prices at the grocery store.
While some commodity prices are rising, farmers are being hit by circumstances beyond their control – supply and labor cost increases, drought and avian influenza to name a few.
That is why the farm bill is so important and must be passed this year.
Farm bill programs enable farers to manage risks and weather the storm of challenges to continue stocking the pantries of America’s families.

IFB Joins Call for Congress to Pass National E15 Law

Source: FarmWeekNow.com, Illinois Farm Bureau, American Farm Bureau Federation

Background: More than 250 companies, including state and national agricultural, biofuel and energy industry groups, are calling for Congress to pass a law permitting year-round sales of E15. Illinois Farm Bureau, Illinois Corn Growers Association, Illinois Fuel and Retail Association, Illinois Manufacturers’ Association, Illinois Renewable Fuels Association and the Chemistry Industry Council of Illinois joined the call.

A letter was sent to party leaders in the U.S. House and U.S. Senate on Dec. 7. The letter stated legislators should “quickly adopt” the Consumer and Fuel Retailer Choice Act of 2022.

Headline Messages:

The bill would make a regulatory change in the Clean Air Act’s fuel volatility to allow year-round sales of ethanol blends higher than 10%.
Continuous access to E15 would provide more flexibility in the nation’s fuel supply chain.
The bill would also provide more certainty to the gasoline marketplace and reduce the chances of political disputes over the higher blend.
The Environmental Protection Agency proposed increasing the total volume of biofuels that refiners must blend with conventional fuels by nearly 2 billion gallons over the next three years.
Under the rule, corn-ethanol volumes would remain largely unchanged from the 2022 requirement of 15 billion gallons.
Volumes would increase to 15.25 billion gallons for 2024 and 2025.
The targets would help increase consumer demand for E15.

Supporting Messages:

The blending of homegrown, renewable fuels will allow the U.S. to extend its oil reserves and potentially drive down the cost of fuel.
Higher ethanol blends not only lower the price of fuel but are also better for the environment.
When compared to gasoline, ethanol reduces GHG emissions by about 50%.
Homegrown fuel increases the United States’ energy independence.

Food vs. Fuel (courtesy of AFBF):

Main Messages
- In the long run this is not a “one or the other” issue. We have the resources to do both.
- Many acres planted to supply biofuels would not have been planted at all without that demand.
- Russia is a major supplier of energy as well as fertilizer. The current situation is complicated by the loss of access to fuel and food supplies at the same time.
- Russia and Ukraine account for 12% of the total calories in world food trade.
- Farmers have risen to the challenge of meeting the needs of food and fuel before and they stand ready to do the same again.

Inflation costs for fuel (courtesy of Illinois Corn):

Why E15?
- Lower cost of fuel - Ethanol has been priced an average of 80 cents less per gallon than unblended gasoline at wholesale through March, and drivers currently save up to 20 cents or more per gallon where E15 is available.
- Better for the environment - Compared to gasoline, ethanol reduces GHG emissions by about 50 percent.
- Energy Independence – corn grown here, ethanol produced here, fuel source would not be dependent on global conflicts or supply.
- Builds Local Communities – over 4000 jobs and around $37 million in state and local revenue.
Can I use E15?
- E15 (also called Unleaded 88) is approved for use in all model year 2001 and newer vehicles by the Environmental Protection Agency.
- Unleaded 88 is the most tested fuel in history without any fuel performance issues. Before Unleaded 88 began being sold at retail locations, it was tested for more than 6 million miles using 86 vehicles from various manufacturers, makes, models and years.
- Automakers also provide full warranty coverage for E15 for more than 93 percent of vehicles on the road today.

Avian Flu, Egg Prices Talking Points

Source: Illinois Farm Bureau; Illinois Department of Agriculture; American Farm Bureau Federation; United States Department of Agriculture

Overview:

A strain of H5N1 (avian influenza) highly capable of causing disease in birds was identified in wild and domestic birds in Illinois in 2022.
Pressured by tighter-than-usual shell egg inventories, robust demand stemming from the holiday baking season, and from export, wholesale egg prices have skyrocketed
Midwest egg prices reached record high prices in December with an average wholesale price of nearly $4.50
(Dec. 20, 2022 – next report to come Jan. 20ish) United States egg production totaled 8.87 billion (7.62 billion table eggs & 1.25 billion hatching eggs) during November 2022, down 5 percent from last year.
The average size of the table-egg flock supporting this production was estimated at 308.3 million, 5.1% down from last year.
HPAI has had a significant impact on the supply of turkey available in the United States in 2022.
Turkey production is below this time last year and is forecast to be lower yet in 2023.
Fewer turkeys raised combined with strong demand, inflation and growing demands on food systems have led to record high prices for turkey and other poultry products such as table eggs.
Inflation running at 7% to 9% in recent months is robbing consumers (and farmers) of their buying power.
Food price inflation is even higher, and other factors include supply chain disruptions and the war in Ukraine, with other countries pulling back on exports to protect domestic supplies.

Supporting Messages

The current strain is different than previous outbreaks and so far does not seem to infect people easily or cause severe illness in people.
The CDC assessment for this strain of avian influenza is considered low risk for the general public but continues to monitor individuals exposed to virus-infected birds for illness.

Statistics (Current as of Feb. 7, 2023):

USDA has confirmed 755 flocks have tested positive for HPAI – 315 Commercial and 440. Backyard; affected 58.35 million birds (turkeys, chickens, anything avian).
There are currently 47 states with at least one confirmed infected flock.
HPAI hasn’t been detected in any commercial flocks in Illinois.

New EPA Waters of the United States Rule

Background: The U.S. Environmental Protection Agency and Army Corps of Engineers on Dec. 30 issued a new rule defining Waters of the United States under the Clean Water Act. Under the new rule, large waterways, like interstate rivers and streams and adjacent wetlands, would have federal protection. Wetlands would be considered adjacent if they are connected to larger waterways with “relatively permanent” surface water connections, or if they have a “significant” hydrologic or ecological “nexus” to those protected tributaries.

Headline Messages:

Illinois Farm Bureau is extremely disappointed in EPA’s new Waters of the United States (WOTUS) Rule.
Farmers care about clean water and preserving the land. They shouldn’t need teams of lawyers and consultants to farm their land.
EPA’s new rule creates overly complex regulations for what is considered “navigable waters” on their land.
Continuation of the old “significant nexus test” will create more regulatory uncertainty on large areas of private farmland miles from the nearest navigable water.
The timing of this new rule, while the U.S. Supreme Court is nearing a decision on the scope of the Clean Water Act, is equally confusing.
A ruling in this case could send WOTUS back to the drawing board, so it makes no sense for EPA to issue a rule that will only cause more disruption and uncertainty.
We call on EPA to recognize the burden overreaching regulations place on farmers, to respect the statute and not write the term “navigable” out of Clean Water Act regulations.