Monday October 17 Ag News

Nebraska Agribusiness Club To Honor Two Agriculturalists Nov. 3

Two Nebraskans have been selected to receive Public Service to Agriculture Awards at the Nebraska Agribusiness Club’s 45th annual awards banquet November 3 at Hillcrest Country Club in Lincoln.  The 2011 honorees are Rodney K. Gangwish of Shelton and Larry E. Sitzman of Lincoln, according to Kyla Wize, chair of the Club’s Awards Committee. Entertainment will be provided by “The Conchords” of Beatrice, whose members include Ryan Broker, Scott Spilker, Jeff Davis and Stacy Williams.

Wize said the banquet is open to the public. Tickets are $25 each before October 26 and $30 each after October 26 and through the day of the banquet.  Reservations can be made by contacting Dayle Williamson, 5315 Thies Cove Dr., Lincoln, Neb. 68516, phone 402-441-3178 or 402-488-5590 or e-mail daylewilli@aol.com. Checks should be made payable to the Nebraska Agribusiness Club.

Gangwish has been involved in production agriculture for more than 35 years and operates 2,000 acres growing corn, seed corn and soybeans. He holds a degree in agronomy from the University of Nebraska–Lincoln (UNL). Throughout his career, he has developed a reputation for being an innovative irrigated farm operator with a passion for serving the industry, agricultural organizations and his community. Gangwish was elected to the Nebraska Hall of Agricultural Achievement and has been a leading proponent of international trade, greater economic development opportunities for agricultural producers and a leadership role model. He has been an effective spokesman for agriculture at the state, regional and national levels. A past president of the Nebraska and National Corn Growers Associations, he worked extensively in Washington, D.C., developing policy for the General Agreement on Tariffs and Trade (GATT), the North American Free Trade Agreement (NAFTA) and the 1996 farm bill. He also served on both the Agricultural Advisory Committee of the Chicago Board of Trade and the Ag Advisory Committee to the Commodity Futures Trading Commission in Washington. He and his wife Jane, have two sons and a daughter.

Sitzman attended UNL and began his career on the family’s diversified farm near Culbertson raising cattle, corn, soybeans, dry edible beans, alfalfa, wheat and eco-fallow sorghum. He served as director of the Nebraska Department of Agriculture from 1991 to 1999 and initiated agricultural trade missions that continue today to promote sales of Nebraska agricultural products overseas. He served as vice president of Sand Livestock of Columbus from 1999 to 2003 where he conducted business and fostered relationships with international markets. Sitzman was involved in farm machinery marketing from 2003 to 2007. Since 2007 he has served as executive director of the Nebraska Pork Producers Association promoting pork products and protecting the interests of pork producers in the state by monitoring legislation and regulation. A graduate of the Nebraska LEAD Program, he was named LEAD Alumnus of the Year and honoree of the year by the Nebraska Corn Board. He received the AgRelations Award from the Nebraska Council on Public Relations for Agriculture, the Jewish National Fund Tree of Life Award and was elected to the Nebraska Hall of Agricultural Achievement. He and his wife, Sally, have three married sons, Eddie, Eric and Jason and four grandchildren.


   
Fall Soil Sampling for Next Year’s Fertilizer Decisions
Gary W. Hergert, Charles Shapiro, Charles Wortmann, Richard Ferguson, Tim Shaver
Extension Soils Specialists

Farmers have made excellent progress on this fall’s harvest and it’s time to think about next year’s fertilizer needs. The steady climb in fertilizer prices over the last year, the volatility in grain prices, and the precipitation and flooding extremes across Nebraska this past year make it even more important to do a good job of soil sampling this fall. Recent rains across the state should provide great conditions for sampling after harvest.

This year has produced a range of precipitation across Nebraska. Varying corn yields due to N leaching, disease, or weather damage produce variability in soil residual nitrate-N. Because soil nitrate is mobile, soil sampling is the only reliable way to determine what is left in your soil. Soil samples for nitrate should be taken to at least a three-foot depth for next year’s corn crop.

Our NebGuide, Guidelines for Soil Sampling (G1740), covers field division, sample numbers, and sample depths. Another publication, Soil Sampling for Precision Agriculture (EC154) has additional information.

To see the impact of current fertilizer and corn prices on N recommendations, use the Corn Nitrogen Recommendations Calculator, a UNL Excel® spreadsheet.  (View other soil management tools at http://cropwatch.unl.edu/web/soils.)  Changes in UNL N recommendations due to prices are based on the corn:N price ratio ($6/bu of corn and $ 0.60/lb N = 10:1 corn/nitrogen price ratio). Traditionally, this ratio has been in the 8:1 to 10:1 range.

Nitrogen Fertilizer Prices
Nitrogen prices have continued to climb since spring 2010. Prices for urea in Figure 2 are averaged over several sources calculated weekly, giving equal weight to prices published by major trade publications for granular urea FOB vessel from the Middle East, southeast Asia, the U. S. Gulf, and Latin America.

Retail urea prices are approximately $600/ton plus or minus $25/ton, depending on your area of the state. Prices for spring should be back down around $570/ton which is about $0.60/lb of N. Currently, UAN solution is also as high in cost as urea per pound of N. Ammonia continues to increase, especially on world markets due to production problems in the Caribbean. Prices range from $800/ton to $875/ton depending on when your dealer bought its supply. If production problems are fixed, spring prices should be around $750 or less per ton ($0.45/lb of N).

Information from your soil tests plus fertilizer prices and expected selling price for your corn are used in calculating the recommended nitrogen rate. Current nitrogen fertilizer prices (ammonia lower cost, urea or UAN higher) range from $0.50 to $0.70 per pound of N. Because pricing depends on an individual’s marketing plan, a range of fertilizer and corn prices can be used in the spreadsheet to look at the most profitable N recommendations. With corn in the $6 -$7 range and nitrogen in the $0. 50 to $0.70 range, the recommended N rate for 200 bu/ac corn would range from 185 to 240 lb N/acre.

Phosphorus
Phosphorus prices for 18-46-0 (DAP) have increased significantly since early 2010 but have leveled off recently. Next spring this product is expected to be over $700 per ton at the farm level.  Ammonium polyphosphate (10-34-0) prices currently are at a premium compared to dry.

Manure Nutrients
High fertilizer prices increase the value of manure. Fall and spring soil sampling are not useful in predicting the nutrients available from recent manure application, due to the extended period when manure releases its nutrients. Nitrogen availability can be estimated based on when the manure was applied, the application rate, the concentrations of organic and ammonium-N, and the application method. For more information on how this is determined, view the UNL webcast, Manure Application and Nutrient Management, at https://connect.extension.iastate.edu/p88906821/?launcher=false&fcsContent=true&pbMode=normal.

To take full advantage of manure N, sidedress some or all fertilizer N; use the pre-sidedress nitrate test to determine the rate.

Other manure nutrients such as P and Zn are generally applied in sufficient amounts with a uniform manure application to fully meet crop requirements for two or more years.

Recommendations
-    Take soil samples this fall as the first step to producing a profitable crop for 2012.
-    The best way to minimize fertilizer expenses and maximize profit is to only put on the nutrients you need.
-    Concentrate on the nutrients that have been shown to produce yield increases.
-    Products and nutrients that don’t have a research-based recommendation should be tested in small areas before being used extensively.



Nebraska Has Key Role in Addressing Global Food Needs

Nebraska is at the epicenter of the challenge of increasing food production to meet the needs of a world population expected to reach more than 9 billion people by 2050, said the vice chancellor of the University of Nebraska-Lincoln's Institute of Agriculture and Natural Resources.

Ronnie Green was the keynote speaker at the Heartland Transatlantic Conference on Food and Fuels Monday morning at the State Capitol. The conference, which also includes a visit to UNL's East Campus, continues Tuesday. It showcases Nebraska agribusiness prowess. Diplomatic officials from countries including France, Germany, Austria, the Czech Republic, the Slovak Republic and Estonia have joined Nebraska representatives at the conference, which focuses on the vital role Nebraska agribusiness and research plays in meeting the global demands for food and fuels.

"Nebraska is truly at the epicenter of innovating food production to meet the challenges of doubling the quantity of safe and high quality food for an anticipated global population of over 9 billion people by 2050," Green said.

"To be successful, this production must occur while sustaining our natural resource base as well as growing alternative energy sources," Green said.

Green noted that IANR's work in foods, fuels and water security is central to addressing the challenges. By 2050, he said, the world's population will grow by 40 percent and will require twice the food it needs now, and 70 percent of that additional food must come from efficiency-improvement technologies. One-third of the world's population already suffers from water shortages; by 2025, two-thirds likely will be affected.

"Agriculture is responsible for 70 percent of all water withdrawals," Green said. "We must grow more food with less water."

Nebraska already is a leader in global agriculture, Green said. It has the largest aquifer, is first nationally in commercial red meat production, second in ethanol production capacity and fourth in value of ag productions sold.

That agricultural strength, coupled with UNL's leadership in education and research, positions the state well to address the world's food challenges.

The new Robert B. Daugherty Water for Food Institute will help lead the way. This research, education and policy institute is committed to helping the world efficiently use its limited fresh water resources. Sustainability is critical, Green said.

IANR's longtime strengths are well-suited to the world's needs, he added.

"Our work in the areas of plant science innovation, livestock innovation, energy sciences research, water research and in ag and food policy will continue to be essential as we address these global challenges," Green said.

The conference is sponsored by IANR, Nebraska Secretary of State John Gale, and the Nebraska Department of Agriculture.

Gale said, "Nebraska is one of the leading states in America in terms of agriculture and ethanol production. Nebraska's significant agricultural capabilities and natural resources will be called on to meet the future food and energy challenges of the world."

"The conference is a wonderful opportunity for diplomatic officials to visit our state, network with key Nebraska representatives and hear about the exciting developments in the state," he added.



Valmont Announces Record Third Quarter Results

Valmont Industries, Inc., Omaha, a manufacturer of engineered products for infrastructure, and mechanized irrigation equipment for agriculture, and a provider of coating services, reported sales for the third quarter of $672.2 million compared with $527.8 million for the same period of 2010. Third quarter 2011 net earnings were $42.1 million, or $1.59 per diluted share, versus third quarter 2010 net earnings of $25.9 million, or $0.98 per diluted share.

"Increased revenue in every segment and a significant improvement in the operating performance of our businesses with strong market fundamentals resulted in a 27% sales gain and a 53% improvement in operating income," said Mogens C. Bay, Valmont's chairman and CEO. "Substantially higher irrigation equipment sales had the greatest impact on third quarter revenue gains. Farmers increased their investment in pivots to improve productivity in light of strong feed-grain demand. Significantly higher North American Utility Support Structures Segment sales resulted from increased investment in the transmission grid by electric utilities. Increased revenues in the Engineered Infrastructure Products Segment mostly reflect higher international revenues. Coatings Segment sales increased due to improved revenues in the Asia-Pacific region."

The Irrigation segment was 22 paercent of third quarter sales, Valmont reported.

Center pivot and linear move mechanized irrigation equipment and parts for agriculture in global markets
Global sales were $150.6 million, an increase of 71% over 2010. In international markets, sales increases were broad-based and supported by firm global crop prices. North American demand was significantly higher, even during the seasonally slow summer months. An increase in aftermarket parts sales due to irrigation equipment operating longer in hot weather, further supported North American sales increases.

A growing world population and a move towards higher protein in diets are resulting in increased global demand for feed-grains. Consequently, crop prices have remained firm for most of the year driving expectations for record farm incomes. We believe this environment motivated farmers to seek productivity enhancing tools to maximize income. Since mechanized irrigation equipment is one of the highest-return capital investments farmers can make to increase production, demand for Valmont's products was substantially higher.

Operating income more than doubled to $23.8 million and was 15.8% of segment sales. The rise in operating income was driven by volume increases and the resulting operating leverage.

Looking ahead to the fourth quarter, Bay said, "We are reconfirming our guidance for earnings per share for the year to be in the range of $5.70-5.90. However, because of the deteriorating economic outlook in general over the past few months, particularly in Europe, we now expect results to be in the mid-to-lower end of that range.

"Going forward, our outlook remains positive. Demand for Utility Support Structures is rising. Recent order activity and a growing backlog support our expectations for a strong fourth quarter and 2012.

"In the irrigation business, a growing global demand for feed-grains to sustain dietary improvement and historically high farm income levels support a positive outlook.

"Our outlook for the Engineered Infrastructure Products Segment is mixed. In North America and Europe, we face reduced government spending and uncertain economic conditions. However, in the Asia-Pacific region we expect our operations to benefit from economic growth and new infrastructure investment, albeit at slower growth rates than in recent history.

"Coatings segment results will be mostly driven by economic conditions in North America and industrial demand in the Asia-Pacific region."



Interpreting Manure Nutrient Analyses Made Easier

Iowa State University Extension and Outreach has recently released a publication that complements existing extension manure management resources. How to Interpret Your Manure Analysis, PM 3014, explains the value of manure sample analyses that indicate nutrient concentrations. Such analyses help define application rates that increase the potential of manure as a crop nutrient source.

"Having your manure analyzed is the best way to determine nutrient concentration," said Tom Miller, ISU Extension swine specialist. "This publication explains the numbers producers see in laboratory analysis results and tells how to use those numbers in the nutrient management planning process."

The publication explains how frequently to sample, what tests to request, what the results mean and how to use those results in a nutrient plan. "How to Interpret Your Manure Analysis" also provides examples of lab reports and a list of common conversions.

"Viewing the publication online allows readers to click on highlighted text and reach Web pages with additional nutrient planning information," said Angie Rieck-Hinz, ISU Extension program specialist. The publication can be viewed online or downloaded from https://store.extension.iastate.edu/ItemDetail.aspx?ProductID=13669. The print version of the publication can be ordered by contacting the ISU Extension Online Store at 515-294-5247 or emailing pubdist@iastate.edu.



Corn Growers Thank Ag Committees for Farm Bill Spending Proposal

National Corn Growers Association President Garry Niemeyer released the following statement in response to the House and Senate Agriculture Committees’ proposed reductions in farm bill spending:

“NCGA appreciates the bipartisan work of the chairs and ranking members of the House and Senate Ag Committees to reach an agreement on farm bill spending reductions.  Our farmers have previously stated we are willing to do our part to help reduce the deficit.

“The highest priority for NCGA is securing a strong crop insurance program.  In addition, we support revenue-based risk management programs that address gaps not covered by crop insurance.  This type of program would deliver assistance only when it is needed. Everyone must play a part to help with our nation’s financial situation. America’s corn farmers are pleased to see that the House and Senate Ag Committee leaders are taking responsible steps to meet that challenge.”



Ethanol Plant Algae to Feed Poultry
Green Plains Renewable Energy, Inc. and BioProcess Algae, LLC announced in a news release Monday the successful completion of the first round of algae-based poultry feed trials. The algae strains produced for the feed trials demonstrated high energy and protein content that was readily available, similar to other high value feed products used in the feeding of poultry today.

The algae strains used in the feed trials were grown in BioProcess Algae's Grower Harvester reactors co-located with Green Plains' ethanol plant in Shenandoah, Iowa. The test was conducted in conjunction with the University of Illinois led by Carl M. Parsons, a leading expert in the field of poultry sciences.

"This was the first time we tested algae as a poultry feed-product and many of the qualities found were similar to high protein soymeal, but with higher energy content," said Parsons.

Tim Burns, CEO of BioProcess Algae, said, "Based on these first-round tests, we will continue the development of this and other high-quality animal feed products from our algae."

He added, "With our Grower Harvester reactors at commercial scale, we will continue to focus on driving our cost of production down with a larger build-out of reactors at the Green Plains Shenandoah ethanol plant over the next several months in order to profitably supply feedstock for food, feed and fuel markets."

In addition to the high energy and protein content, the testing found amino acid profiles similar to existing feed components. The University of Missouri analyzed the results and provided an independent third-party validation.



Farm Bill Deficit Deal Must Include Real Reform

In response to a letter from Congressional Agriculture Committee leadership recommending a $23 billion farm spending cut, the Center for Rural Affairs urged that a portion of the savings come from ending the single most wasteful and counterproductive feature of current farm policy - unlimited federal crop and revenue insurance subsidies to the nation's largest farms and wealthiest landowners.

“Any serious reform of federal farm programs must cap federal crop and revenue insurance subsidies to mega farms,” said Chuck Hassebrook, Executive Director of the Center for Rural Affairs. “They are the most expensive element of farm programs, costing $7 billion annually. And if one big corporation farmed all of America, USDA would pay 60 percent of its insurance premiums every year on every acre for protection from low prices and crop failure.”

Hassebrook explained that the nation’s largest farms will continue to use unlimited premium subsidies to drive smaller operation out of business.

“Why should the federal government pay 60% of crop insurance premiums on every acre of the largest farms in America in the midst of record high farm income and record federal deficits,” asked Hassebrook?

Hassebrook also pointed out that loopholes in the cap on other farm payments must also be closed.  Senators Chuck Grassley (R-IA) and Tim Johnson (D-SD) have introduced legislation to close those loopholes, but it is not incorporated in any proposal from either Congress or the White House to date.

The Center for Rural Affairs called on Congress and on the Administration to stand up to powerful mega-farm interests, cap their subsidies and reinvest the savings in rural development programs that support small business and beginning farmers and ranchers, create jobs for ordinary rural Americans and build a more vibrant future for small town America.



NCBA, PLC Welcome EPA Decision to Retain Current Dust Standard
— Groups Still Support Legislation to Prevent Future Threats 

The National Cattlemen’s Beef Association (NCBA) and the Public Lands Council (PLC) welcomed news from Environmental Protection Agency (EPA) Administrator Lisa Jackson that the decision has been made to retain the current coarse particulate matter (dust) standard. This decision is subsequent to the onslaught of pressure from NCBA, PLC and several members of Congress to convince EPA not to regulate farm dust at levels twice as stringent as the current standard. According to Bill Donald, NCBA president and Montana rancher, the groups maintain that no science-based evidence exists that would justify the burdensome, costly regulation that would have resulted in farmers and ranchers being fined for working in dusty environments in rural America.

“This is refreshing news. The consequences of EPA regulating farm dust at levels twice as stringent as the current standard would have undoubtedly forced many farmers and ranchers into nonattainment, which would have resulted in enormous fines and would have jeopardized the future of many farms and ranches,” said Donald. “While we are pleased with Administrator Jackson’s decision to lean on common sense and science, this issue is far from resolved.”

Donald said the fact that family farmers and ranchers are subject to a federal dust standard in the first place is unreasonable. NCBA and PLC are still concerned that EPA could consider imposing unmanageable dust regulations on farmers and ranchers in the future. This is why NCBA and PLC continue to support legislation, Farm Dust Regulation Prevention Act, proposed by Senator Mike Johanns (R-Neb.) and Congresswoman Kristi Noem (R-S.D.). NCBA and PLC were joined by 124 other organizations in a letter to the House Subcommittee on Energy and Power supporting H.R. 1633, the dust prevention bill. This legislation would essentially exempt farmers and ranchers from the federal regulation of dust as long as it is regulated at the state or local levels of government.

John Falen, PLC president and Nevada rancher, said dust is a reality in rural America and a state approach makes much more sense than the “one-size-fits-all approach” by the distant federal government.

“The fact is there is no science showing that farm dust is a health risk at ambient levels. It’s amazing to think that one agency’s heavy hand could have such a wide-reaching and devastating impact on so many farming and ranching families across the country,” said Falen. “In the short-term, livestock producers have scored a victory but we all need to be aware that this issue could come back to in the future. We must rally together and support legislative action to prevent the future threat of unreasonable dust regulation.”



USDA Ends, Scales Back 14 Reports
USDA Data Budget Cut in 2011, May Be Reduced for 2012

Fourteen reports, ranging from the July U.S. cattle inventory to annual bulletins on hops and honey, will be eliminated or issued less often to save money, the Agriculture Department said on Monday.  The USDA said it acted due to budget cuts imposed last fiscal year and that more reductions are likely in the current fiscal year.  Cuts of up to 5 percent of the budget for the National Agricultural Statistics Service are pending in Congress.  "As a result, the agency is discontinuing or reducing a wide range of agricultural survey programs," the NASS said.  It said similar data would be available in reports issued less frequently or in the Census of Agriculture, conducted every five years. The next such census is in 2013 to cover 2012 activities.

Affected by the cutbacks were:
-- Annual Reports on Farm Numbers, Land in Farms and Livestock Operations -- Eliminate.
-- Catfish and Trout Reports -- Eliminate.
-- Annual Floriculture Report -- Eliminate.
-- January Sheep and Goat Report -- Eliminate.
-- Chemical Use Reports -- Reduce frequency of commodity coverage.
-- July Cattle Report -- Eliminate.
-- Distiller Co-Products for Feed Survey -- Eliminate.
-- Annual Bee and Honey Report -- Eliminate.
-- Annual Hops Production Report -- Eliminate.
-- Monthly Potato Stocks Report -- Reduce from monthly to quarterly.
-- Annual Mink Report -- Eliminate.
-- Fruit and Vegetable in-season forecast and estimates -- Reduce from monthly and quarterly to annual report.
-- Nursery Report -- Eliminate.
-- Rice Stocks June and September reports -- Eliminate but continue January, March and August reports.

The USDA announced the cutbacks in conjunction with a data-users meeting with commodity analysts in Chicago.




International Chefs to Headline USMEF Pork Butt Initiative

Three chefs and the winner of one recipe contest from the Caribbean, China, Japan and South Korea will take center stage on Thursday afternoon, Nov. 3, as the U.S. Meat Export Federation (USMEF) unveils the promotional program it is implementing around the world for the undervalued pork cut, the pork butt.

Identified in 2010 by USMEF processer and exporter members as a pork cut that would benefit from additional exposure in the international marketplace, the pork butt has been the subject of increased attention in recent months as USMEF’s international directors have educated buyers in the food service and retail sectors regarding this flavorful and tender cut.

“We see incremental opportunities for the pork butt in a number of our markets,” said Dan Halstrom, USMEF senior vice president of global marketing and communication. “As our industry partners around the world get a chance to taste this cut and learn of its superior quality and value, we expect interest will continue to grow.”

The chefs will demonstrate how the pork butt fits into the cuisine of their respective countries and provide samples for those in attendance. The demonstration will be held at approximately 5 p.m., at the end of the Joint USMEF Pork & Allied Industries and National Pork Board Trade Committee meeting. The meeting is part of USMEF’s Strategic Planning Conference, Nov. 2-4, 2011, at the Hotel El Conquistador in Tucson, Ariz.

USMEF recently conducted a pork butt recipe contest in Japan to help create greater awareness of a cut that is not widely known among Japanese consumers. The winner was American Pork Butt with Plum Wine Sauce, which will be prepared by the contest winner at the Nov. 3 meeting.

In South Korea, USMEF participated in a month-long promotion with a leading cooking magazine to highlight the adoption of U.S. pork butt recipes by five “A-list” restaurants in Seoul. It is fairly unusual for top Seoul restaurants to feature pork on their menus, since it is generally considered to be a lower-cost meat used for home meal preparation.



Japan Mulls Easing Beef Import Rules
Japan has begun considering easing restrictions on beef imports from the U.S. that were imposed over fears of mad cow disease, government sources said Sunday.

Support appears strongest for a proposal that would allow beef from cattle aged 30 months or younger to be imported into Japan, rather than the current limit of 20 months or younger.

Prime Minister Yoshihiko Noda could broach the issue during a summit meeting with U.S. President Barack Obama next month at the earliest, the sources said.

Japan banned imports of U.S. beef in December 2003, when the first U.S. case of mad cow disease was confirmed. It lifted the ban in December 2005 but imposed conditions that included limiting U.S. beef imports to meat from cattle aged 20 months or younger.

The brain-wasting disease is believed to be caused by abnormal prions, a type of protein. It can occur after the prions accumulate in an animal's body over a long period.

Japan reinstated the import ban in January 2006 after a veal shipment from the United States was found to contain part of a backbone, a risk material banned under the bilateral beef trade agreement. The ban was lifted again in July that year under the same conditions.



Pork Producers Could See Increased Profitability

Stronger hog prices and lower feed costs have put the pork outlook back into the black for the coming year, says a Purdue Extension agricultural economist.

According to the U.S. Department of Agriculture's Hogs and Pigs report, there has been little increase in the country's breeding herd. With growing demand and a fairly stable-sized breeding herd, producers can expect to return to profitability in the next 12 months. The USDA also reported in its September Grain Stocks report that corn inventories now are higher than expected, reducing the cost of feed.

"Pork producers have largely settled for the status quo because of the uncertainty over feed prices," said Chris Hurt. "As a result, the USDA says the breeding herd has expanded only slightly as producers awaited the corn and soybean yield and price outcomes of the 2011 growing season."

According to the USDA, the breeding herd increased 0.6 percent nationwide in the last year. Most of the expansion has occurred in traditional Midwestern hog production states, where the herd was up by 4 percent in Missouri; 3 percent each in Ohio, Indiana and Nebraska; and 1 percent in Iowa.

"While the breeding herd only increased fractionally, pork production will be up by a larger percentage due to the surging sow productivity," Hurt said. "This summer, the number of pigs per litter set a new quarterly record at a bit above 10 pigs."

He said there is a possibility that the yearly average will be at 10 pigs or more for the first time. In 2005, the weaning rate was just nine pigs per litter, meaning there has been an annual productivity growth of about 2 percent.

Hurt said pork production for the coming year will be up 2 percent to 3 percent, led by higher sow productivity and by somewhat higher market weights and lower feed prices.

"While pork production will be higher in the next 12 months, hog prices are expected to be higher - led by strong demand," he said. "The stronger demand will come from very low levels of beef available in the domestic market and from continued growth in pork exports."

In the past 12 months live hog prices have averaged about $62 per hundred weight but are expected to jump to $66 for the next 12 months.

Hurt also said he expects feed costs to be lower, including lower corn and soybean meal prices. "Total feed costs are forecast to be about $1.75 per hundredweight lower in the coming 12 months," he said.

Previously, pork producers targeted $7 cash corn prices as the threshold for profitability. Corn prices above $7 meant losses, while prices below $7 could mean profits, Hurt said. Expected corn price averages for the next 12 months are about $6.10 per bushel.

"These corn prices well below $7 turn the profit outlook positive," Hurt said. "In the past 12 months, estimated profits were about $5 per head. In the next 12 months, that turns to expected profits above $15 per head, which would be the highest estimated returns since 2006 when corn prices were still low."

But even as profits increase, Hurt said most producers aren't likely to expand their operations because there is still much uncertainty about world economic growth and the impacts on pork demand and feed prices.

"When corn prices can change 40 cents in one day, pork producers know the profit outlook can be altered quickly," he said. "If the current profit outlook holds over the next six months, then further expansion can be expected by the March or June USDA reports."



New Reports Fault Speculation for Volatile Commodity, Food Prices

Two new reports independently concluded that speculation in the commodities market is having an unduly large effect in driving prices for goods like gasoline and food higher for all Americans.  These reports come in advance of the October 18 meeting of the Commodities Futures and Trading Commission (CFTC) to discuss commodity index funds, a chief mechanism for speculative trading in the market, and in the midst of increasing angst with Wall Street business as usual as demonstrated by the Occupy movement.

The first report from the non-profit organization Better Markets concludes, “Research analyzing commodity markets for the last 27 years shows that Wall Street’s speculative trading through commodity index funds is causing market disruptions, interfering with price discovery, increasing the costs for businesses to hedge, and needlessly pushing prices higher for all Americans. It shows how the biggest banks, all bailed out by the taxpayers in 2008, are lining their pockets at the expense of America’s families and farmers.”

According to the research from Better Markets, speculative commodity index funds are currently influencing the market with between $200 and $300 billion of investment.  These speculative traders are the largest single group of traders in the market, outpacing producers and users of physical commodities and the more traditional speculative traders.

A second report from economic analysis firm Cardno Entrix buttresses the findings of the Better Market analysis.  According to Cardno Entrix, “[It] is clear that [commodity] prices are likely higher than justified purely by fundamentals and the commodity markets have become more volatile as the volume of trading by index funds and other non-commercial traders has increased sharply.”

While trading by commercials has increased, non-commercial trading volume has grown far faster in recent years. The creation of paper bushels reflected by speculative non-commercial trading is 3 to 4 times the number of physical bushels of corn being used. Since trading volume represents a measure of intensity or pressure behind a price trend, the significant increase in both the level of futures contracts and the ratio of futures trading to physical corn use – which use has increased significantly over the past decade – further illustrates the impact of the futures market on corn prices.

These are just two reports in a growing body of research linking rising food and energy prices to excessive speculation.  Earlier this month, scores of economists, PhD’s, and other researchers urged members of the G20 to take action curb excessive speculation in food commodities.  Their letter can be read here.

“The reasons commodity markets move up and down are complex, but it is increasingly indisputable that the speculation on steroids we have seen in recent years by parties with no intent to take delivery of any physical commodity is disproportionately hurting Americans in their pocketbooks,” said RFA President and CEO Bob Dinneen.  “Higher energy and grain prices driven by excessive speculation make everything American consumers buy more expensive.  Meanwhile, speculators are making billions for many of the same financial institutions taxpayers were forced to bailout just 3 years ago.  Perhaps it’s also time for an Occupy CBOT movement drawing attention to the detrimental impact excessive non-commercial speculation has on all Americans who need to eat or drive to work.”



USDA SECRETARY TOM VILSACK RETURNS TO COMMODITY CLASSIC

Commodity Classic will once again have the opportunity to welcome U.S. Secretary of Agriculture Tom Vilsack as a keynote speaker for an expected crowd of more than 4,800 farmers and other attendees during the event’s General Session, to be held March 1 in Nashville, Tenn.

“The secretary’s return for a third straight visit is testament to the value of our grower constituency in Washington,” National Corn Growers Association President Garry Niemeyer said. “Given the concerns farmers have around the federal budget and 2012 farm bill discussions, the secretary’s message will be of great importance to attendees.”

”We are privileged and honored to have Secretary Vilsack as the keynote speaker for the Commodity Classic General Session,” said American Soybean Association President Alan Kemper. “The secretary’s visit will be a highlight of this dynamic event where farmers share ideas, network and learn about future trends in agriculture.”



Syngenta Introduces 105 New Corn Hybrids for the 2012 Planting Season

Syngenta, one of the world’s leading agricultural seed and crop protection providers, has introduced 105 new corn hybrids for the 2012 planting season. These include 24 new hybrids featuring the Agrisure Viptera™ 3111 trait stack, which provides breakthrough control of the broadest spectrum of above- and below-ground insects available. Syngenta has also released additional new hybrids that feature the Agrisure Viptera™ 3110 trait stack that are a good choice for areas where rootworm management is not a primary concern.

This year, growers also have access to hybrids with the Agrisure Viptera™ 3220 trait stack for reduced refuge. This trait stack offers growers dual modes of action against above-ground corn pests—including corn borer and corn earworm—with a five percent structured Corn Belt refuge. These hybrids are also a good choice for areas where growers are not concerned about rootworm management.  Hybrids with the reduced-refuge Agrisure 3122 trait stack are also available for the 2012 planting season and feature dual modes of action against both corn borer and corn rootworm.

These new hybrids offer growers additional choices to maximize yield performance under various growing conditions and soil types.

“This year’s hybrids provide growers with a more complete lineup of elite corn genetics for 2012, developed to provide industry-leading insect control and exceptional herbicide tolerance in corn,” said Eric Boersma, corn genetics portfolio manager, Syngenta. “With the extent of our expanded corn portfolio, growers will be able to find the hybrids necessary for maximum growth and yield in their local area.”

The 24 hybrids available with the Agrisure Viptera™ 3111 trait stack combine the Agrisure Viptera™ trait with the Agrisure® 3000GT triple stack. This breakthrough corn trait package provides an in-seed defense against the multi-pest complex, which includes black cutworm, corn earworm, fall armyworm, Western bean cutworm, dingy cutworm, stalk borer and sugarcane borer, among others. Syngenta estimates damage from these pests cost U.S. corn growers 238 million bushels of corn and over $1.4 billion in annual yield and grain quality losses.1 In recent field trials, the Agrisure Viptera 3111 trait stack nationally delivered a 7.3 bu/A advantage under ear-feeding insect pressure.2

Other hybrids within the new product line-ups include the Agrisure 3000GT triple stack, the Agrisure GT/CB/LL trait stack and the Agrisure GT trait. These expanded line-ups are designed to provide growers with high-yielding, genetically diverse hybrids with dependable agronomics.

Syngenta received deregulation from the USDA for the Agrisure Viptera trait in April 2010. Since then, the Agrisure Viptera trait has received approval in all key import markets, including all those markets recommended by both the NCGA and BIO. The technology has been approved for cultivation in Canada, Argentina and Brazil, and for import in the key markets of Australia, Japan, Mexico, New Zealand, the Philippines, Russia, Belarus, Kazakhstan, Indonesia, Korea and Taiwan. Syngenta applied for Chinese approval of its Agrisure Viptera trait in March 2010 (upon approval in Brazil) and currently expects to receive regulatory clearance by the end of the first quarter of 2012.