Livestock Revenue Insurance, November 2000

This study outlines several possible structures for livestock revenue insurance. The policies take the form of an exotic option—an Asian basket option. The actuarially fair premiums for these policies are equal to the prices of the options they represent. Due to the complexity of pricing Asian basket options, we have combined two techniques for pricing options to reach the actuarially fair premiums. Projected premiums, producer welfare, and program efficiency are evaluated for the insurance products and existing market tools. Using efficiency ratios and certainty equivalent returns, we compare the insurance policies to strategies involving existing futures and options.

The Long-Run Impact of Corn-Based Ethanol on the Grain, Oilseed, and Livestock Sectors: A Preliminary Assessment, November 2006

The ongoing growth of corn-based ethanol production raises some fundamental questions about what impact continued growth will have on U.S. and world agriculture. Estimates of the long-run potential for ethanol production can be made by calculating the corn price at which the incentive to expand ethanol production disappears. Under current ethanol tax policy, if the prices of crude oil, natural gas, and distillers grains stay at current levels, then the break-even corn price is $4.05 per bushel. A multi-commodity, multi country system of integrated commodity models is used to estimate the impacts if we ever get to $4.05 corn. At this price, corn-based ethanol production would reach 31.5 billion gallons per year, or about 20% of projected U.S. fuel consumption in 2015. Supporting this level of production would require 95.6 million acres of corn to be planted. Total corn production would be approximately 15.6 billion bushels, compared to 11.0 billion bushels today. Most of the additional corn acres come from reduced soybean acreage. Wheat markets would adjust to fulfill increased demand for feed wheat. Corn exports and production of pork and poultry would all be reduced in response to higher corn prices and increased utilization of corn by ethanol plants. These results should not be viewed as a prediction of what will eventually materialize. Rather, they indicate a logical end point to the current incentives to invest in corn-based ethanol plants.

Final Report for the Iowa Livestock Industry Waste Characterization and Methane Recovery Information Dissemination Project, 2003

The Iowa livestock industry generates large quantities of manure and other organic residues; composed of feces, urine, bedding material, waste feed, dilution water, and mortalities. Often viewed as a waste material, little has been done to characterize and determine the usefulness of this resource. The Iowa Department of Natural Resources initiated the process to assess in detail the manure resource and the potential utilization of this resource through anaerobic digestion coupled with energy recovery. Many of the pieces required to assess the manure resource already exist, albeit in disparate forms and locations. This study began by interpreting and integrating existing Federal, State, ISU studies, and other sources of livestock numbers, housing, and management information. With these data, models were analyzed to determine energy production and economic feasibility of energy recovery using anaerobic digestion facilities on livestock faxms. Having these data individual facilities and clusters that appear economically feasible can be identified specifically through the use of a GIs system for further investigation. Also livestock facilities and clusters of facilities with high methane recovery potential can be the focus of targeted educational programs through Cooperative Extension network and other outreach networks, providing a more intensive counterpoint to broadly based educational efforts.

Emerging Biofuels: Outlook of Effects on U.S. Grain, Oilseed, and Livestock Markets, 2007

Projections of U.S. ethanol production and its impacts on planted acreage, crop prices, livestock production and prices, trade, and retail food costs are presented under the assumption that current tax credits and trade policies are maintained. The projections were made using a multi-product, multi-country deterministic partial equilibrium model. The impacts of higher oil prices, a drought combined with an ethanol mandate, and removal of land from the Conservation Reserve Program (CRP) relative to baseline projections are also presented. The results indicate that expanded U.S. ethanol production will cause long-run crop prices to increase. In response to higher feed costs, livestock farmgate prices will increase enough to cover the feed cost increases. Retail meat, egg, and dairy prices will also increase. If oil prices are permanently $10-per-barrel higher than assumed in the baseline projections, U.S. ethanol will expand significantly. The magnitude of the expansion will depend on the future makeup of the U.S. automobile fleet. If sufficient demand for E-85 from flex-fuel vehicles is available, corn-based ethanol production is projected to increase to over 30 billion gallons per year with the higher oil prices. The direct effect of higher feed costs is that U.S. food prices would increase by a minimum of 1.1% over baseline levels. Results of a model of a 1988-type drought combined with a large mandate for continued ethanol production show sharply higher crop prices, a drop in livestock production, and higher food prices. Corn exports would drop significantly, and feed costs would rise. Wheat feed use would rise sharply. Taking additional land out of the CRP would lower crop prices in the short run. But because long-run corn prices are determined by ethanol prices and not by corn acreage, the long-run impacts on commodity prices and food prices of a smaller CRP are modest. Cellulosic ethanol from switchgrass and biodiesel from soybeans do not become economically viable in the Corn Belt under any of the scenarios. This is so because high energy costs that increase the prices of biodiesel and switchgrass ethanol also increase the price of cornbased ethanol. So long as producers can choose between soybeans for biodiesel, switchgrass for ethanol, and corn for ethanol, they will choose to grow corn. Cellulosic ethanol from corn stover does not enter into any scenario because of the high cost of collecting and transporting corn stover over the large distances required to supply a commercial-sized ethanol facility.

Events That Guarantee Your Right To Buy Medicare Supplement Insurance, March 2007

You have a six-month open enrollment period when you are enrolled in Medicare Part B for the first time at age 65 or older. The six-month period begins the date your Medicare Part B begins. During your open enrollment period: • You cannot be turned down for any plan (A-L) being sold in Iowa. • You cannot be charged a higher premium based on your health. • You will not have a waiting period before benefits are paid for pre-existing health conditions IF you had previous health insurance coverage, AND you apply within 63 days of the end of previous health insurance, AND you were covered for at least 6 months under that health plan.

09008-005 Hewitt Creek Final Report

The primary goal of the Hewitt Creek watershed council is to have Hewitt-Hickory Creek removed from the Iowa impaired waters (303d) list. Hewitt Creek watershed, a livestock dense 23,005 acre sub-watershed of the Maquoketa River Basin, is 91.2% agricultural and 7.5% woodland. Since 2005, sixty-seven percent of 84 watershed farm operations participated in an organized watershed improvement effort using a performance­ based watershed management approach, reducing annual sediment delivery to the stream by 4,000 tons. Watershed residents realize that water quality improvement efforts require a long-term commitment in order to meet their watershed improvement goals and seek funding for an additional five years to continue their successful watershed improvement project. Cooperators will be provided incentives for improved environmental performance, along with incentives and technical support to address feedlot runoff issues and sub-surface nitrate-nitrogen loss. The Phosphorus Index, Soil Conditioning Index and cornstalk nitrate test will be used by producers as measures of performance to refine nutrient and soil loss management and to determine effective alternatives to reduce nutrient and sediment delivery. Twenty-five livestock operations will improve feedlot runoff control systems and five sub-surface bioreactors will be installed to reduce nitrate delivery from priority tile-drained fields. The Hewitt Creek council will seek additional cost-share funding for high-cost feedlot runoff control structures, sediment control basins and stream bank stabilization projects.

06012-006 Lime Creek NPS Project Final Report

Lime Creek is a sub-watershed of the Cedar River above; approximately 25 miles from Cedar Rapids. The lower half of the stream is on the Iowa 2004 Section 303(d) impaired waters list. Monitoring by the Cedar River Watershed Monitoring Coalition documents that Lime Creek delivers above average amounts of nitrate+ nitrite-N, ammonia-Nand total phosphorus (above the 901 percentile) compared to other Cedar River sub-watersheds. The Cedar Rapids water utility is concerned about increasing delivery of nitrate+nitrate to the Cedar River, which provides drinking water for about 125,000 people in the area. A group of local citizens has formed the Lime Creek watershed council with the goal of reducing pollutant delivery to the creek and promoting sustainable, watershed-wide action by producers, urban and rural residents for improved environmental management. The council has established a performance-based program that rewards cooperators for improvement in research-based test and index scores which directly measure environmental impact of BMPs. The Iowa Com Growers Association is funding the performance rewards. The Watershed Coalition is contributing in-kind monitoring. Council and performance cooperators participate primarily with commitment of their own resources. WIRB funds will be used to increase program cooperators and for staff support. In addition to improvement of water quality in Lime Creek, the project will establish baseline values for arket-based a pro ch to valuing pollutant reduction by intensive livestock operations in eastern Iowa.