Monday October 24 Ag News

Nebraska to Hold Special Session Regarding Oil Pipelines
Heineman and Unicameral to Seek Solution on Siting

Today, Gov. Dave Heineman announced that he will be calling the Nebraska Unicameral into Special Session to determine if siting legislation can be crafted and passed for pipeline routing in Nebraska. The purpose of the Special Session will be to find a legal and constitutional solution to the siting of oil pipelines within the state.

“The key decision for current pipeline discussions is the permitting decision that will be made by the Obama Administration, which is why I have urged President Obama and Secretary of State Clinton to deny the permit,” said Gov. Heineman. “However, I believe Nebraskans are expecting our best efforts to determine if alternatives exist. Therefore, I will be calling a special session of the Nebraska Legislature to have a thoughtful and thorough public discussion about alternative solutions that could impact the route of the pipeline in a legal and constitutional manner.”

Gov. Heineman worked with State Senator Mike Flood of Norfolk, Speaker of the Legislature, to set the starting date of the Special Session for Nov. 1.



Center for Rural Affairs applauds Beginning Farmer and Rancher Opportunity Act introduced today

The Center for Rural Affairs praised the introduction today of the Beginning Farmer and Rancher Opportunity Act of 2011, a cross-cutting initiative aimed at helping the next generation of farmers and ranchers enter into agriculture and take advantage of emerging markets.  The bill is sponsored by Representative Jeff Fortenberry (R-NE) and Representative Tim Walz (D-MN). Senator Tom Harkin (D-IA) and other members of the Senate Agriculture Committee will introduce a companion bill in the Senate when next in session.

“As the average age of the American farmer continues to increase, it is critical for the well-being of rural America that young people engage in farming and agricultural entrepreneurship. This legislation provides common-sense incentives to young farmers and ranchers, helping overcome the initial challenges facing those who wish to establish their careers in agriculture and raise families on the farm,” said Representative Jeff Fortenberry who represents Nebraska’s first Congressional district and is a co-sponsor of the Beginning Farmer and Rancher Opportunity Act.

“We commend Representative Fortenberry and the other sponsors for introducing this bill. Their legislation is smart, cost-effective public policy that will create jobs and invest in the future of rural America,” said Traci Bruckner, Assistant Director for Rural Policy of the Center for Rural Affairs. “It addresses obstacles that often prevent beginning farmers and ranchers from getting their operation started.”

The Beginning Farmer and Rancher Opportunity Act contains several key elements, including:
-    Reauthorizing the Beginning Farmer and Rancher Development Program, a beginning farmer and rancher training and support initiative. It would increase mandatory funding from $75 million to $125 million over the next 5 years to help meet growing demand for the program, and include a new priority on agricultural rehabilitation and vocational training programs for military veterans.
-    $30 million in annual funding for the Value Added Producer Grants Program and will retain the priority for projects benefiting beginning farmers and ranchers as well as a set-aside of program funding for these projects.
-    Creating savings and enhancing lending provisions that help beginning farmers and ranchers access credit and establish a pattern of savings.
-    Providing conservation incentives to assist beginning farmers and ranchers and socially disadvantaged farmers and ranchers to establish conservation practices and sustainable systems on their farms and ranches.

“When you compare the numbers from the 2007 and 2002 Census of Agriculture, you see a big drop in the number of younger farmers in agriculture as their primary occupation. The revitalization of rural America depends, in large part, on reversing that trend,” explained Bruckner.

“It can be difficult to get started in the world of agriculture,” said Garrett Dwyer, a beginning rancher and former Marine infantryman from Bartlett, NE. “Skyrocketing costs of buying or renting land make entry into farming and ranching a daunting task.” Dwyer traveled to D.C. in June to participate in a nationwide fly-in called, “Sound Investments to ensure the Next Generation of Beginning Farmers and Ranchers.”

According to Dwyer, more beginning farmers and ranchers are needed because without a new generation of beginners, the land will concentrate in large farms. “And that will cause the permanent loss of opportunity for family farms, ranches, and rural communities and squander the chance to shift to a more sustainable system of agriculture,” explained Dwyer.

Bruckner explained that the introduction of these bills in both the House and the Senate is a crucial step in focusing more of the public investment in the 2012 farm bill on the next generation of farmers and ranchers. Congressional investment in beginning farmers and ranchers is an investment, by all Americans, in the future of rural America. 

“And it is money well spent,” continued Bruckner.



2,4-D Resistant Waterhemp Found in Nebraska

A waterhemp population from southeast Nebraska has been confirmed to be resistant to 2-4-D. The resistant population is believed to be limited to a few fields.

UNL Research on Suspected Population
In 2009 we received a report of a warm season grass field with a waterhemp population that was no longer being controlled by 2,4-D. Seed from this field was collected in 2009 and 2010 and greenhouse dose response trials were conducted to determine if the population was herbicide resistant.

Resistant waterhemp
When compared to a susceptible population, the suspect population was 10-fold more tolerant to 2,4-D. In the greenhouse, a dose of 5 fl oz/ac of 2,4-D (Lo-vol ester, 3.8 lb ae/gal) reduced growth of the susceptible population by 50%. In contrast, 54 fl oz/ac were required to reduce the growth of the suspect population by 50%. In a 2011 study conducted in the field where seed from the suspect population was collected,  plants were treated with 2,4-D doses of 0.25  to 64 qt/ac (64 times a typical use rate). At 28 days after treatment (DAT), plants treated with 64 qt/ac were stunted compared to untreated plants and showed injury symptoms characteristic of 2,4-D, but were recovering. At 84 DAT, individual plants that had been treated with 64 qt/ac recovered sufficiently to produce seed.

We believe these results warrant labeling this population as “2,4-D resistant.” This is the sixth herbicide mechanism-of-action (Synthetic auxins) to which waterhemp has developed resistance in the United States, and the third reported in Nebraska.
Why Waterhemp?

Waterhemp is the predominant pigweed (Amaranthus) species in eastern and south central Nebraska fields and is problematic throughout much of the Corn Belt. It is well adapted to reduced tillage cropping systems that rely primarily on herbicides for weed control. Waterhemp has succeeded because it emerges from May through August, allowing late emerging plants to avoid herbicides.

Waterhemp is a dioecious species, which means that male and female flowers occur on separate plants. Because of this and the large number of seeds produced per female plant, genes favorable for survival under a particular selection pressure (such as repeated use of a specific herbicide) rapidly spread throughout a population. When a single herbicide is used repeatedly over many years, there is a high risk of herbicide resistant populations developing. Since 1993 waterhemp populations have been reported to have evolved resistance to atrazine (Photosystem II inhibitors), imazethapyr and chlorimuron (ALS-inhibitors), fomesafen and lactofen (PPO-inhibitors), glyphosate (Glycines), and mesotrione and tembotrione (HPPD-inhibitors).

Multiple Resistance Herbicide Populations
Of particular concern are waterhemp populations where individual plants are resistant to three or more herbicide mechanisms-of-action. In these instances, growers have fewer, effective weed management options. When populations with multiple-herbicide resistance are then managed with the one or two remaining herbicide mechanisms-of-action that are still effective, the likelihood of the population evolving resistance to those herbicides is high. The herbicide use pattern in the field where the resistant population was collected  included an annual burndown application of atrazine, metolachlor, and 2,4-D followed by a postemergence application of 2,4-D. Research is underway at UNL to determine whether this waterhemp population has developed resistance to additional herbicide mechanisms-of-action.

Reducing the Spread of Herbicide Resistance
New technologies that confer resistance to 2,4-D and dicamba (both synthetic auxins) are being developed to provide additional herbicide options for postemergence weed control in soybean and cotton. The development of 2,4-D resistant waterhemp in this field is a reminder and a caution that these new technologies, if used as the primary tool to manage weeds already resistant to other herbicides such as glyphosate, atrazine or ALS-inhibitors, will eventually result in new herbicide resistant populations evolving. This will limit the value of those technologies to farmers.  To minimize the risk of developing herbicide resistant weeds:
-    rotate effective herbicide mechanisms of action,
-    tank-mix multiple effective herbicides, and
-    use effective doses.

Where possible, use an integrated weed management plan that also includes non-chemical weed control options such as crop rotation and tillage. Carefully monitor fields for changes in susceptibility to the herbicides being used and contact a UNL extension office when resistance is suspected. If multiple plants survive in a field, and that species is known to have developed resistance elsewhere to herbicides used in that field, it may be prudent to remove the survivors before they produce seed.



Tax Incentives for Businesses to Purchase Equipment Set to Decline Dec. 31

If you have been thinking of purchasing equipment, an IRS Section 179 provision that changes Dec. 31 can help you justify buying or leasing it before then. And if you haven’t been considering acquiring equipment, now may be a good time to do so if it fits your business model.  A featured article in the November issue of the Nebraska Cattleman magazine explores this topic.

Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year. That means that if you buy (or lease) a piece of qualifying equipment, you can deduct the full purchase price from your gross income. It’s an incentive to encourage businesses to buy equipment and invest in themselves. The Section 179 deduction can meet business owner expectations if the proper planning is done in advance.

When your business buys certain items of equipment, it typically gets to write them off a little at a time through depreciation. In other words, for example, if your company spends $50,000 on a machine for agricultural use, it gets to write off the $50,000 over seven years. But the purpose behind Section 179 is to motivate businesses to add more equipment this year. For most small businesses adding equipment, software and vehicles totaling less than $500,000 in 2011, the entire cost can be writtenoff on the 2011 tax return.

If you purchase a 100,000 piece of equipment, the entire cost can be deducted on the 2011 tax return. Assuming a 35 percent tax rate, your cost for the $100,000 equipment would be $65,000. “This is a good example,” says Kyle Gifford, a member in Gifford & Cox, LLC, an accounting firm in North Platte that is a NC Associate Member. “With section 179 and a bonus provision, customers can get two good tax answers in 2011.”

The article goes on to outline other provisions which can benefit livestock and crop producers.

For example, designed with businesses in mind, almost all types of “business equipment” qualify for the Section 179 deduction. Regarding vehicles, generally, the vehicle must have a gross vehicle weight (GVW) in excess of 6,000 pounds.

Also, the equipment must be purchased and put into use between January 1, 2011 and December 31, 2011. For example, buildings must be completed by Dec. 31, not just purchased.

In addition, the November magazine includes these other features:  NC Convention schedule and registration;  How per capita consumption versus demand affects our industry; Corn: sell it or feed it?; Beef Industry Employment 101 -- be diligent in how you classify and report agricultural employees; and more.

The entire magazine is online at www.nebraskacattlemen.org, just click on the icon at the bottom of the home page.



2011 Co-op 100 List

Each year, the National Consumer Cooperative Bank (NCB) Co-op 100 announces the top 100 cooperatives in America, highlighting the business activity and economic power of these member-owned, member- controlled businesses. The only annual report of its kind, the NCB Co-op 100 is an important indicator of cooperative business activity across the country.

Total Revenue - $193,806,000,000

Top 10 (name, city of home office, 2010 revenue in millions of dollars)
CHS Inc., St. Paul, MN, $25,268 
Land O'Lakes, Inc., St. Paul, MN, $11,146   
TOPCO Associates LLC, Skokie, IL, $10,405 
Dairy Farmers of America, Kansas City, MO, $9,880  
Wakefern Food Corp., Elizabeth, NJ, $9,458  
Associated Wholesale Grocers, Kansas City, KS,  $7,252
GROWMARK, Inc., Bloomington, IL, $$6,132
Agribank, FCB, St. Paul, MN, $3,975 
Unified Grocers, Inc., Commerce, CA, $3,921 
HealthPartners, Inc., South Bloomington, MN, $3,578  

Others of Interest in Agricultre...
12. Ag Processing, Inc., Omaha, NE, $3,288 
24. Associated Milk Producers, Inc., New Ulm, MN, $1,709
36. Affiliated Foods Midwest Co-op Inc., Norfolk, NE, $1,248
49. South Dakota Wheat Growers Association, Aberdeen, SD, $1,041
87. Aurora Cooperative Elevator Company, Aurora, NE, $607
90. Farmers Cooperative, Dorchester, NE, $576



6 elected National FFA officers for 2011-12 at close of 2011 National FFA Convention

Six students from throughout the country were elected National FFA officers for 2011-12, an announcement made to a packed and excited house of FFA members at Conseco Fieldhouse today to officially close the 84th National FFA Convention.

Ryan W. Best of New Mexico, Jason Troendle of Minnesota, Kenneth D. Quick Jr. of New York, Alicia Hodnik of Wisconsin, Cain Thurmond of Georgia and Seth Pratt of Idaho have been elected National FFA officers for 2011-12.

Best, of Portales, N.M, will serve as National FFA president. He is a junior at New Mexico State University majoring in agricultural and extension education. Best is a member of the Elida High School FFA Chapter in Elida, N.M., led by advisor Rodney Savage. He is the son of Kent and Sherri Best.

Troendle, of Charles, Minn., has been elected National FFA secretary. He is a freshman at Bethel University majoring in economics and environmental studies. The son of Fred and Sandra Troendle, he is a member of the St. Charles High School FFA Chapter in St. Charles, Minn., led by advisors Craig Will and Willie Lubahn.

Quick Jr., of Granville, N.Y., will serve as National FFA Eastern Region vice president. The son of Michael and Connie Yopp, he is a freshman at Cornell University majoring in international agricultural and rural development and applied economics and management. Quick is a member of the Triton High School FFA Chapter in Erwin, N.C., led by John Hardee, Allen West, Andy Nelson and Andy Cole. He is the son of Michael and Connie Yopp.

Hodnik, of Walworth, Wis., has been elected National FFA Central Region vice president. She is a sophomore at University of Wisconsin at River Falls, majoring in agricultural education with an emphasis on biotechnology. Hodnik is a member of the Big Foot Union High School FFA Chapter in Walworth, Wis., led by advisors Rick Henningfeld and Lisa Konkel. She is the daughter of Fred and Debra Hodnik and Donald Weber and Sharon Montgomery.

Thurmond, of Jefferson, Ga., will serve as National FFA Southern Region vice president. The son of Phil and Susie Thurmond, he is a freshman at University of Georgia majoring in agricultural and applied economics. Thurmond is a member of the Jefferson High School FFA chapter in Jefferson, Ga., led by Ken Bray, David Calloway and Cliff Tippens. He is the son of Phil and Susie Thurmond.

Pratt, of Blackfoot, Idaho, will serve as National FFA Western Region vice president. He is freshman at the University of Idaho majoring in agricultural science, communications and leadership. Pratt, the son of Mark and Wendy Pratt, is a member of the Blackfoot High School FFA Chapter in Blackfoot, led by advisor Travis Henderson.

For the next year, the national officer team will be the face and spirit of FFA. Collectively, they’ll travel more than 100,000 miles throughout the country as they engage top leaders in business, government and education and lead a host of personal growth and leadership training seminars for FFA members. The team will also help set policies that will shape the future of the National FFA Organization and promote agricultural literacy in general.

Nominees for national office must first qualify at the state level to represent their state FFA association. They must submit a detailed application that highlights their academic accomplishments and showcases contributions to their local communities. Those seeking national office must also submit an essay that explains their desire to be elected to national office.

At the national FFA convention, candidates participate in five rounds of interviews, take an in-depth written test and complete two writing exercises. A panel of nine state FFA officers comprises a nominating committee that recommends the six national FFA officers to a group of 450 FFA convention delegates.



Farm American ready to bring FFA on track in 2012

As the National FFA Organization celebrated a record-setting year last week at the 84th National FFA Convention, an agreement with Farm American and Furniture Row Racing has put agricultural education on the fast track in 2012.

Together, FFA and Farm American announced today that the National FFA Organization will become a communications partner with Farm American for the 2012 NASCAR Sprint Cup Series Season. FFA and Farm American will work hand in hand in furthering American agriculture by telling the story of agriculture's important role both today and tomorrow.

The National FFA Organization, on the heels of announcing major increases in nationwide membership in the past year, will support Farm American's effort to grow the role the of American agriculture because of the basic connection it has with the goals of FFA and agriculture education.

"FFA is all about making a positive difference in the lives of our members by expanding their leadership and career horizons," said National FFA Organization COO Bill Fleet. "By working with Farm American to increase the stature of American agriculture, we're hoping to increase their future career possibilities while also assisting American agriculture as a whole."

The Farm American program promotes the importance of U.S. agriculture, which employs directly and indirectly more than 22 million people in the American workforce. The details and schedule of the 2012 Farm-American program are still being worked out and will be announced at a later date.

"Furniture Row Racing is humbled to have earned the support of the National FFA Organization," said Furniture Row Racing general manager Joe Garone. "Farm American is about preserving and protecting – an effort to bring awareness to the importance of keeping America's food supply produced in the United States. FFA members are our future farmers, ranchers and teachers and our future soil, crop and livestock scientists and future political decision makers. There is no greater beneficiary of the Farm American program than FFA members across this country."

Denver, Colo.-based Furniture Row Racing team spearheaded the Farm American program in 2010 with a special paint scheme at selected races on its No. 78 Chevrolet driven by Regan Smith. The program continued at select races in 2011 – most recently at the NASCAR Sprint Cup Series race at Kansas Speedway Oct. 9. Smith finished 7th in the season-opening Daytona 500 in February and won the Southern 500 at Darlington Raceway in May.

"FFA members are the future of agriculture and there’s no better validation of the Farm American program than to have the future of food production join our efforts to connect agriculture messaging to NASCAR fans," said Regan Smith, driver of the No. 78 Farm American Chevrolet for Furniture Row Racing. "We want our agriculture jobs and food to remain here in the U.S."



RFA, Alt Fuel Groups Press for Open Fuel Standard

The Renewable Fuels Association (RFA), the nation’s largest ethanol trade association, is joining with leaders in other alternative fuel industries to press Congress to enact an Open Fuel Standard (OFS).  On Capitol Hill, the effort is being championed by Representatives John Shimkus (R-IL) and Elliot Engel (D-NY) who have introduced H.R. 1687.  The collective effort is known as the Open Fuel Standard Coalition, www.openfuelstandard.org. 

“Americans need a choice at the pump and the Open Fuel Standard would allow them to pick an ethanol blend that meets their needs,” said RFA President and CEO Bob Dinneen who will be a panelist at an October 25th Capitol Hill briefing.  “The OFS would also create market space for other alternative fuels that are critical to our nation’s energy future.  Giving Americans a choice in both the fuels they use and the vehicles they drive is quintessentially American and empowers them to take control of our energy future.  That means more alternative fueling infrastructure like blender pumps and more vehicles capable of using a range of fuel options.  At the end of the day, this isn’t about picking one alternative or renewable fuel over another.  This effort is about ending our costly and dangerous addiction to oil.”

Dinneen will be joining former National Security Advisor Robert McFarlane, NASCAR driver Kenny Wallace, and other experts on alternative fuels and the dangers of our addiction to imported oil for a Capitol Hill event on Tuesday, October 25.

The OFS Coalition will present an Energy Security Roundtable, hosted by Reps. Shimkus and Engel, in 2218 Rayburn HOB from 2:00 - 3:00 p.m.  That event will be followed by media availability with Reps. Shimkus, Engel and representatives from the organizations forming the Open Fuel Coalition.  RSVP information can be obtained by emailing Grant Culp at grant.culp@mail.house.gov.

The Open Fuel Standard (H.R. 1687) will put a permanent competitive constraint on the price of oil by opening the fuel market to non-petroleum alternatives.  Once the OFS is in effect, hundreds of billions of dollars now being drained from our economy to pay for foreign oil could go instead to American businesses and workers to produce our fuel right here at home, thereby creating millions of jobs and slashing our deficit.



Judge: Suit Against HFCS to Proceed

A federal judge has ruled that the case brought by U.S. sugar farmers against corn processors to stop their false advertising about high fructose corn syrup must go forward, the Sugar Association announced Saturday.

According to U.S. District Judge Consuelo B. Marshall, who issued two opinions comprising her ruling on Friday, "Plaintiffs have met their burden in showing a reasonable probability of success on their argument that the statements are false."

The judge also ruled that the challenged statements in the Corn Refiners Association's multi-million dollar campaign "constitute 'commercial speech.'

"There is evidence in the record indicating that defendants have themselves made statements about the different chemical make-up between table sugar and HFCS," the judge wrote. "Plaintiffs have also submitted studies and papers that support its allegation that CRA's claim that HFCS is sugar and/or natural is false and/or misleading."

According to the lawsuit, consumers have increasingly sought to avoid products containing HFCS because of a wide range of health concerns. The lawsuit claims that the CRA has engaged in false advertising about these concerns.



Good Start To Argentina Planting

Rains over recent days have helped Argentine corn and wheat crops while setting the stage for smooth soy planting, which will begin in earnest next month, meteorologists said on Monday.  It has been a wet month in Argentina's fertile Pampas after September dryness delayed some corn plantings and caused worries about the development of 2010/12 wheat.  Most of Argentina's 2011/12 corn has been sown. Wheat is flowering and farmers have begun to plant soy, most of which is set to go into the ground in November.

Argentina is the world's No. 3 soybean exporter and the top supplier of soymeal and soyoil. Its main growing areas are in the central eastern provinces of Buenos Aires, Santa Fe, Entre Rios and Cordoba.  Argentina is also the world's No. 2 corn supplier after the United States. The South American country produced a record 22.9 million tonnes in 2010/11, the government says.



Safras: Brazil 11/12 Soy +1%

Brazil's 2011/12 soybean crop now being planted was projected at a record 75.3 million tonnes, up 1 percent from 74.3 million tonnes this season, crop analysts Safras e Mercado said in its latest forecast.  The forecast is roughly in line with grain sector consultants Celeres who see the new crop at 75.2 million tonnes versus 74.9 million tonnes from the old crop.  The government's official forecast from crop supply agency Conab is seen at 72.2-73.3 million tonnes in the new crop, down from the 75.3 million tonnes harvested earlier this year, which would make it the largest annual drop in decades.