Thursday October 6 Ag News

Nebraska Farmers Union Convention Planning Underway

December 9-10, 2011 at Midtown Holiday Inn in Grand Island
Key Speakers & Issues:
Friday AM – National Farmers Union Legislative Update & Farm Bill Report with Michael Stranz (NFU Government Relations Representative)
Friday AM – Ethanol Update – Todd Sneller (Executive Director of the Nebraska Ethanol Board)
Friday Noon Luncheon Keynote Speaker – Governor Dave Heineman
Friday PM – Panel discussion on state & federal beef checkoff issues – Alan Guebert, Dr. C. Robert Taylor (Auburn University),  & Dave Wright (President, Independent Cattlemen of Nebraska)
Friday PM – GIPSA Update – Alan Guebert, C. Robert Taylor, & Michael Stranz
Friday PM – An economic review of U.S. law and the expanded power and control of corporations – Dr. C. Robert Taylor
Friday Night Banquet Speaker – Alan Guebert (National Ag Journalist)
Saturday AM – State Senator Panel
Saturday AM – Concentration of fertilizer ownership. This will include a report of Dr. C. Robert Taylor’s study findings



USDA Issues Conservation Reserve Program Rental Payments to Help Safeguard Soil and Water on 417,000 Farms

The U.S. Department of Agriculture (USDA) will distribute Conservation Reserve Program (CRP) rental payments to participants across the country. USDA’s Farm Service Agency administers CRP, while technical support functions are provided by public and private sector partners. CRP is a voluntary program that helps agricultural producers safeguard environmentally sensitive land and provide millions of acres of habitat for game and non-game wildlife species. Participants enroll in CRP contracts for 10 to 15 years. Currently, total CRP enrollment stands at 29.9 million acres.

“CRP protects millions of acres of American topsoil from erosion and is designed to safeguard the America’s natural resources,” said FSA Administrator Bruce Nelson. “By reducing water runoff and sedimentation, CRP protects groundwater and helps improve the condition of lakes, rivers, ponds, and streams. Acreage enrolled in the CRP is planted to resource-conserving vegetative covers, making the program a major contributor to increased wildlife populations in many parts of the country.”

The Commodity Credit Corporation (CCC) makes annual rental payments based on the agriculture rental value of the land, and it provides cost-share assistance for up to 50 percent of the participant's costs in establishing approved conservation practices.

USDA also issues non-rental CRP payments throughout the year. These payments include a 50 percent expense reimbursement for establishing and managing cover as well as incentive payments for enrolling eligible high priority conservation practices.

Beginning today, producers holding 752,000 contracts on 417,000 farms will receive an average CRP rental payment of $55.06 per acre. Producers will earn an average payment of $4,115 per farm enrolled in the program. Included in the totals are 414,000 contracts (5.1 million acres) for continuous CRP enrollments and 338,000 contracts (24.8 million acres) enrolled under general CRP. In all, the payments total approximately $1.7 billion.

A table located at www.fsa.usda.gov/Internet/FSA_File/apportstate091311.pdf, lists acreage enrollments by state, number of contracts, number of farms, acres enrolled as of the end of the 2011 fiscal year and CRP projected rental payments for fiscal year 2012.



Iowa Corn Promotion Board Congratulates NJIT Researchers Honored for Corn-Based Work

New Jersey Institute of Technology (NJIT) researchers Anthony East, Michael Jaffe, Yi Zhang and Luiz Catalani will be among more than 40 inventors and 13 New Jersey companies, universities and the U.S. Army to be honored Nov. 10, 2011 by the Research & Development Council of New Jersey.  Researchers will be recognized for innovative patent work spanning 13 research and business development categories, including:  biomaterials, defense, environmental, industrial processes, information technology, manufacturing, materials technology, medical health, medical imaging, pharmaceutical, pharmaceutical process, renewables.  The Iowa Corn Promotion Board (ICPB) has been collaborating with NJIT researchers on this patent.

Council President Anthony Cicatiello says, “Some of the most innovative R&D in the world is done right here in New Jersey.. The Council is proud not only to celebrate our foremost scientists, but to bring their work to life on the big screen so everyone can see the faces of those who are changing our world.”

Jaffe, a research professor, heads the NJIT team.  In 2009, “Thermoset Epoxy Polymers from Renewables Resources” was awarded US patent #7,619,056 (issued 11/17/2009) for a chemical derived from sugar.   At the event, it will receive a patent award in the renewables category.  The new material uses a corn based chemical, isosorbide, to create a derivative that may replace bisphenol A (BPA) in epoxy resins currently used in a number of adhesives and coatings of consumer products, including those used in the lining of tin cans.  The NJIT researchers also received another patent (#7,947,785, issued 5/24/2011) to compliment this earlier one. 

Jaffe has been developing sugar-based materials in conjunction with the ICPB in an effort to promote and create new, commercially attractive, sustainable chemistries from wider uses of corn.  This new sugar derivative can be obtained from corn. The two patents are part of a series filed by the ICPB and NJIT to develop applications and markets for sugar-based chemistry.

Jaffe’s work with sugar-based chemicals has captured the attention of other researchers in his field. A recently written chapter by Jaffe about this work has remained on the must-read list of the prestigious American Chemical Society Symposium series for months.

“Renewable materials made from corn are gaining ground for new industrial plastics markets,” said Rod Williamson, Iowa Corn Director of Research and Business Development. “Making epoxy from corn can be a win-win for public health, plastic

The Iowa Corn Promotion Board has been working with NJIT and Jaffe since 2005 as part of a larger Research and Business Development commitment to invest in the future uses of corn.



Auto Alliance, RFA underscore cooperative commitment to new technologies

Today, the CEO of the Auto Alliance, Mitch Bainwol, joined Renewable Fuels Association President and CEO Bob Dinneen to address the annual meeting of the RFA held in Washington, DC.  In remarks, both leaders reaffirmed their industries’ commitment to developing and implementing renewable fuel technologies to reduce America’s dependence on foreign oil.  Additionally, they highlighted areas in which both industries can work together.

Bainwol and Dinneen released the following statement:
“Both the automotive and ethanol industries are defined by their constant innovation and evolution.  We firmly believe that America can secure its energy future and create jobs by investing in new vehicle and fuel technologies that harness the innovative power of American workers to redefine how we power our cars.  Despite current differences over how to best increase the amount of ethanol included in America’s fuel supply, automotive and ethanol interests all agree that renewable fuels are a path down which America must head.  The automotive and ethanol industries have had a productive and cordial relationship for many years and we fully expect this relationship to remain strong.  Issues like higher level ethanol blends levels and vehicle emissions regulations will require the continued cooperation of both industries if this nation is to successfully address its energy, economic and environmental challenges."



Secretary Vilsack Announces Investments to Support Economic Development and Job Creation in Rural America
Nebraska Receives $840,000

Agriculture Secretary Tom Vilsack has announced funding awards that will support rural communities, help create jobs and build regional economies in 34 states. Vilsack made the announcement during the Rural Wealth Creation and Livelihoods Conference, sponsored by the USDA Economic Research Service and the Ford Foundation.

The Nebraska Ethanol Industry Coalition in Lincoln, Nebraska will utilize a Rural Business Opportunity Grant of $100,000 to educate the public within areas of identified rural communities, located within a 6 state region of Nebraska, Iowa, Kansas, Georgia, Maryland and Florida. Outreach and marketing tools will be provided to E85 retailers, Flex Fuel Vehicle manufacturers and dealers, local stakeholders, State governments and policymakers.  By accentuating the economic, environmental and security benefits of purchasing Flex Fuel Vehicles the expected outcome is to motivate consumers to use higher than 10 percent blends of ethanol/renewable fuels.  The final objective is to boost demand for fueling stations to install at least 10,000 new flex fuel pumps within 5 years and boost rural development and net farm income by up to 36 percent by the year 2022.  This Flex Fuel Vehicle awareness project will establish a minimum of one job.  Statistics show that the U.S. fuel ethanol industry has already created nearly 500,000 jobs nationwide.  The intended outcome of the Flex Fuel awareness program is to generate results of nearly doubling the current production capacity of the existing ethanol industry, which would create more jobs in primarily rural areas and increase revenues for agricultural producers.

Three River Telco in Lynch, Nebraska has been selected to receive a $740,000 Rural Economic Development Loan that will relend to Brown County Hospital at zero percent interest for the new multi-slice computerized tomography (CT) scanner and building addition to house the new scanner.  As a result, medical care will be improved for the many rural residents of Brown, Blaine, Cherry, Keya Paha and Rock counties that are served by the hospital.  This project will result in two part time jobs.

"These funds will help local business leaders, communities, and disadvantaged agricultural producers take more of a collaborative and regional approach toward jobs creation, business development and economic growth," said Vilsack.

Projects funded as part of USDA's regional initiative will focus on strategic planning activities to improve economic conditions in rural areas, particularly in underserved communities. The initiative will help communities to connect and cluster their economies geographically based on their self-identified strengths, so they are able to increase productivity and build more robust, sustainable economies.

The Secretary announced investments through the Rural Business Opportunity Grants (RBOG) program which supports regional planning activities to improve economic conditions in rural areas; the Small and Socially-Disadvantaged Producer Grant program, and the Rural Economic Development Loan and Grant program, which support job creation efforts, business development and strengthens economic growth in rural communities.

Under the Rural Economic Development Loan and Grant program, USDA provides grants to local utilities which use the funding to establish revolving loan funds.  Loans are made for projects that will create or retain jobs in rural areas. For a complete list of applicants selected for funding, which is contingent upon recipients meeting the terms of their agreements, please click here.

The announcement is part of a series of rural infrastructure investments expected by Secretary Vilsack during the next two weeks. This effort supports the goal of the American Jobs Act, which makes critical infrastructure improvements to put people back to work immediately.



National Milk Explains 'Foundation for the Future' at Dairy Expo

Supporters of an effort to overhaul the way farmers are paid for their Class III milk are optimistic that lawmakers will eventually approve a new plan pending in Congress. On Wednesday, agriculture reporters got a glimpse of the 'Foundation for the Future' program being proposed by the National Milk Producers Federation. The initiative led to the introduction of the 'Dairy Security Act of 2011' in the House of Representatives last week by Minnesota Congressman Collin Peterson and Rep. Mike Simpson of Idaho, which seeks to eliminate the current dairy price support program and replace it with a safety net mechanism that would pay producers a settlement when milk prices fall below profitable levels.

NMPF Spokesman Chris Galen says the program, which would be voluntary to producers who choose to sign-up for it, would likely be popular among legislators because it's designed to save the federal government money while giving farmers more options to protect their bottom line.

"The government will actually spend less on implementing this program than what the current Milk Income Loss Contract program (which is set to expire next year) is costing them now," Galen said. "With the new Super Committee looking for ways to cut deficit spending, and with the farm bill negotiations ready to begin, we feel this proposed solution will be a great fit going forward."

Specifically, the dairy security bill offers participants access to the 'Dairy Producer Margin Protection Program,' which would issue insurance payments when the difference between the milk price and feed prices drop below $4.00 per hundredweight of milk. Extra coverage can be added to accommodate for expected herd and production growth. The government would cover part of the premium of the policy, while producers would kick-in a modest fee.

Farms would also be able to sign-up for a 'Dairy Market Stabilization Program,' designed to limit production for short periods to prevent steep milk price declines in the market or other prolonged low-margin profit situations. If the producer wishes to enroll in the margin insurance program, they will automatically be part of the the same stabilization program.

Thirdly, the bill directs the USDA to eliminate cumbersome end-product price formulas and make allowances, and create a new, more market-oriented means of establishing farm-level prices. A majority vote of producers would be needed to put these changes into effect.

National Milk CEO Jerry Kozak says the legislation has some new improvements from an earlier version of their program--such as extending the basic level of margin insurance coverage to 80 percent of a producer's production history; and allowing them to purchase insurance for growth.

"Ultimately, the proposal changes in the way Class III milk is priced from a complicated end-product formula method to a more market-oriented competitive pricing system," Kozak said. "Is it a perfect system? No. But if we try to make it perfect, it won't fly. I think it's the best option we have.. and the status quo will not continue to work."

Kozak said the process started after the industry lost billions of dollars when the dairy economy collapsed in 2009. Since then, his group has talked to over 1,300 producers and held hearings all over the country to gather input on a better solution.



Northey: 12 Groups Get Help to Promote Specialty Crops

Iowa Secretary of Agriculture Bill Northey Wednesday announced that the Iowa Department of Agriculture and Land Stewardship will be awarding $260,549 in grants to Iowa organizations to help enhance the competitiveness of specialty crops grown in Iowa. The Department received $276,526.15 through the Specialty Crop Block Grant Program from the USDA Agricultural Marketing Service to support the program.

"Specialty crops are a very important part of Iowa agriculture as they allow farmers to diversify and give customers access to locally grown products," Northey said. "These federal funds will support food safety, research and marketing efforts that will encourage Iowans to choose fruits, vegetables, nuts and flowers that are produced right here in our state."

Iowa agricultural non-profit organizations, cooperatives, specialty crop industry associations or organizations, and producer groups were eligible to apply for funding to enhance the competitiveness of specialty crops.

The Department also invited public comment from specialty crop stakeholders to help identify priorities for the program and established a Review Committee to help review, evaluate, and make recommendations on which grant proposals submitted to the Department should receive funding.

The maximum grant award from the Department to sub-grantees is $24,000 and administrative and indirect costs are not allowed.

Grant funds shall be used for projects that benefit and enhance the competitiveness of specialty crops industry as a whole, and cannot be for projects that directly benefit a particular product or provide a profit to a single organization, institution, or individual.

"Specialty Crops" that are eligible under this program are fruits and vegetables, tree nuts, dried fruits and horticulture and nursery crops, including floriculture. The funds not passed through to Iowa organizations will be used by the Department to administer the grant.

The full list of 12 grant recipients follows here:
-- Iowa Nursery and Landscape Association - $12,350 to expanding educational programming for Iowa's green industry professionals through a webinar series and accompanying on-line modules
-- Golden Hills Resource Conservation and Development - $18,343 for building capacity for southwest Iowa local food producers to increase specialty crop competitiveness in the region
-- Iowa State University (Dr. Gleason) - $23,784 for virtual field days to develop web-based resources to enhance competitiveness of Iowa fruit and vegetable growers
-- Iowa State University (Erin Hodgson) - $22,170 to support improving detection and management strategies for insects in Iowa grapes
-- Iowa State University (Dr. Randall) - $23,805 for research on bio fumigation potential to promote woods grown American ginseng
-- Iowa State University (Dr. Randall) - $20,077 to establishing standards for the fertilization of fir trees to assist Iowa Christmas tree growers
-- Iowa Food Systems Council - $23,475 to study the feasibility of fruit and vegetable value-added processing in Iowa's congregate meal site kitchens
-- Iowa Fruit and Vegetable Growers Association - $4,000 for expanding Iowa's fruit and vegetable industry through grower education
-- Southern Iowa Resource Conservation and Development - $24,000 for Farm to where you are: Creating and Enhancing Markets for Southern Iowa Specialty Crop Producers
-- Iowa Nut Growers Association - $20,791 for Connecting Iowa Nut Growers: Past-Present-Future
-- Iowa State University (Mark Honeyman) - $12,700 for efforts to increase production of pear and peach with improved cultivars to increase profitability and consumption of Iowa specialty crops
-- Iowa Department of Agriculture and Land Stewardship - $55,054 to support connecting growers and schools through the Farm to School Program



USDA Approves Minnesota’s TB-Free Status

The Minnesota Board of Animal Health today announced that the U.S. Department of Agriculture (USDA) has approved Minnesota’s application for statewide bovine Tuberculosis (TB) Free status, effective October 4, 2011. The approval comes six years after the discovery of an infected beef herd in July 2005.

In recent years, status downgrades have been the cause of increased testing and movement requirements for Minnesota cattle, both in-state and out. With U.S. Department of Agriculture (USDA) approval, the status upgrade will bring relief to most Minnesota cattle producers.

“The farmers in Minnesota have worked tirelessly alongside the Board of Animal Health and the USDA to eliminate this disease quickly,” said Minnesota State Veterinarian and Board of Animal Health Executive Director Dr. Bill Hartmann. “We have raised the bar in disease eradication by working together, working quickly, and working effectively. Minnesota is a model of how it should be done.”

Though Board of Animal Health requirements will be reduced for most, livestock farmer should call the state of destination prior to interstate movement of animals. Other states may require additional testing, permits, or official identification of livestock.

“With this victory comes the responsibility of the Board to ensure our state remains free of the disease. To provide extra assurance that TB is eliminated, surveillance will continue in cattle herds in the Management Zone,” said Hartmann.

Producers in the former Modified Accredited Advanced (MAA) Zone will no longer be required to obtain permits or test individual animals prior to moving cattle. An additional whole-herd test will be required of former MAA Zone herds. Producers in the smaller Management Zone will continue slightly modified testing and movement requirements.

The Department of Natural Resources will also continue management of deer populations and surveillance of hunter harvested wild deer in the bovine TB area until testing indicates that the disease has been eliminated in deer. 2010 was the first calendar year since 2005 with no confirmed bovine TB positive wild deer detected.