Tuesday October 11 Ag News

Follow Guidelines, Organize Records When Culling Cows
Larry Howard, UNL Extension Educator, Cuming County

The fall means it’s time for calf weaning, pregnancy checking of cows and cow culling. When culling cows, it’s important that producers follow the Beef Quality Assurance guidelines.

It’s rare drug residues of pharmaceutical products violating drug residue regulations are found in carcass tissues of cull beef cows. Cow-calf producers need to work closely with a large animal veterinarian in their area and follow their directions carefully to ensure violations don’t occur.

Reading the product label also is important. Most medications require producers keep the treated animal for the withdrawal time indicated on the label. The withdrawal time is the time that has to pass between the last treatment and when the animal will be slaughtered for human consumption. Withdrawal times can be from zero to 60 days or more, but it’s the producer’s responsibility to make sure they follow those times.

Residue issues fall under the producer’s responsibility, too. There are four rules producers should follow:
-- Wait until the withdrawal time on the label passes or the time indicated by the veterinarian passes before marketing animals for food
-- Only use approved medications for cattle and exactly as prescribed by the veterinarian or as directed on the label
-- Don’t hesitate to ask questions and rely on the relationship with the veterinarian
-- Be organized and keep detailed records of medications given to individual animals, including the date of administration, route of administration, dosage given, lot or serial number of product given, person delivering the product and label or prescription listing of withdrawal dates.

Keep all records for at least three years after the animal is sold.  For examples of records, go to www.beefextension.com and click on BQA Record Forms.




Swaminathan: Time to Shift from Green to Evergreen Revolution

To ensure global food security amid climate change and price volatility, the world must transition from the Green Revolution to an evergreen revolution, and the University of Nebraska-Lincoln can be a key player, the world's first World Food Prize laureate told a Lincoln audience Monday.

Dr. M.S. Swaminathan spoke at UNL as the inaugural speaker in the Institute of Agriculture and Natural Resources' Heuermann Lecture series.

Swaminathan is known as a world leader in sustainable food security, and as the catalyst of the green revolution movement in India from 1960-1982 that moved the country from having the world's largest food deficit to producing enough grain to feed its people.

But the increased chemical use and irrigation that were key to that progress are no longer environmentally sustainable, Swaminathan said, adding that annual yield growth rates of major cereal grains have begun to slow in developing countries. Climate change is likely to exacerbate that problem, as scientists estimate that for each 1 degree Celsius rise in mean temperature, wheat yields in India drop about 6 million tons a year.

What's needed, he said, is an evergreen revolution that eliminates chemical use, reduces irrigation and produces long-term, sustainable growth in yields to feed the world's growing population, Swaminathan said.

"We need to promote climate-resilient farming," he added.

Swaminathan said part of the solution to "widening the food basket" is to curb the growth in food demands of developed countries such as the United States, which consume much more animal protein than less-wealthy nations. "The vegetative diet is much more efficient," he said.

He also said the expanded use of farmland to produce biofuels rather than food in developed countries raises an important question: "How much land can you divert from food purposes?"

Efforts in Swaminathan's native India to address the food-security challenges include proposed legislation that would guarantee a monthly supply of grain to families, establish a national system of grain storage and reform the public distribution system. Critical to this effort, he added, is the adoption of a "life-cycle approach" to food security that places special attention on children's nutrition in their first 1,000 days of life.

As in the original Green Revolution, Swaminathan said, "political will and farmers' skill are two major determinants" of future agricultural progress.

On the political side, Swaminathan warned that funding for agricultural research has dropped in both developed and developing countries. That's a concern because continuing, publicly funded research remains a key to ag progress. He noted, for instance, development of a new, more efficient rice hybrid with 25-50 percent higher yields and improved water- and nutrient-use efficiencies.

Swaminathan referred to his late friend, Norman Borlaug, known as the father of the Green Revolution, whose "anticipatory research" was so important to feeding the world. That same spirit is needed today, he added.

"The University of Nebraska is a flagship university in terms of responding to these needs and taking advantage of these opportunities," Swaminathan said.

Swaminathan's lecture came at the invitation of University of Nebraska President James B. Milliken and the Robert B. Daugherty Water for Food Institute. In March 2011, Milliken and Swaminathan jointly hosted a symposium in Chennai, India, on managing water resources for food security, sponsored by the Indo-US Science and Technology Forum.

After Swaminathan spoke, he was given the Willa S. Cather Medal, conferred on individuals whose words and actions uphold the highest values of humanity and service to the world. Previous honorees include Archbishop Desmond Tutu, Harry Belafonte and Mikhail Gorbachev.

The Heuermann lectures are made possible through a gift from B. Keith and Norma Heuermann of Phillips, long-time university supporters with a strong commitment to Nebraska's production agriculture, natural resources, rural areas and people. The Heuermanns were at Monday's lecture, and they were thanked by Ronnie Green, Harlan vice chancellor of IANR and NU vice president.

The second Heuermann lecture is Nov. 10, featuring UNL grains breeder P. Stephen Baenziger. More information is available at heuermannlectures.unl.edu



Panel May Suggest $20B-$33B in Ag Cuts
Revenue Assurance Would Become Keystone of Ag Support

The Senate Agriculture Committee may suggest up to $33 billion in budget cuts, primarily from crop subsides, as its share of government-wide belt-tightening, a panel member said on Tuesday.

House and Senate committees face a deadline of Friday to submit recommendations to the 12-member "super committee" that is charged with proposing at least $1.2 trillion in cuts over the next decade.

There have been suggestions to cut agriculture by at least $15 billion while President Obama proposed $33 billion.

Iowa Senator Charles Grassley told reporters "right now, there is a real possibility" of a bipartisan agreement among Agriculture Committee members. He said it would involve cuts of $20 billion to $33 billion, including elimination of the $5 billion a year direct-payment subsidy.

In its place, the government would adopt revenue assurance as the central pillar of U.S. farm supports. A government-run program would shield grain, cotton and oilseed growers from "shallow" losses caused by low prices or poor yields. Crop insurance would cover large losses.

Revenue assurance is widely mentioned as the possible foundation for the 2012 farm law. Groups representing corn, soybean, cotton and dairy producers have proposed versions of revenue assurance for inclusion in the law. They say their proposals will cost less than current subsidies.

Two farm lobbyists said while discussions were under way among Senate Agriculture Committee members, agreement was not within sight.

Nor was it clear if the House Agriculture Committee would agree on a joint statement.

"Right now, I think people are really wary about what to do," said one of the farm lobbyists.

Two issues for farm-state senators are whether to require growers to practice land stewardship as a condition of eligibility for crop insurance and whether to cut public nutrition programs along with crop subsidies. Nutrition programs, such as food stamps and school meals, will account for 75 percent of Agriculture Department spending in the future.



Bill Introduced to Shorten Depreciation for Farm Equipment

Senator Klobuchar (D-MN) and Representative Herger (R- CA 2) introduced bills S. 700 and H.R. 1747, to permanently reduce the depreciation schedule for agricultural equipment by two years to five.  Doing so will put agricultural equipment on parity with construction equipment which has a similar use pattern and lifespan.

Supporters say the tax reform will have significant economic benefits to the farming and ranching community.  Since agricultural equipment is typically financed over a five year period, an economist with the American Farm Bureau estimates that aligning the two would add $850 million to farm income in a typical year within the five year depreciation schedule.

Additionally there are environmental and safety benefits as a shorter depreciation schedule encourages farmers and ranchers to purchase more modern equipment that deploys advanced technologies.

Understanding and support for the agricultural equipment depreciation bills is growing. Currently the Senate bill has eight and the House has 30 co-sponsors including the Chair and Ranking Member of the Senate Agriculture Committee and the Ranking Member of the House Agriculture Committee.



Little Movement Seen Again in Fertilizer

Fertilizer prices tracked by DTN for the first week of October 2011 continue to show very little movement in either direction as the fall harvest is in full swing across the Midwest.

Seven of the eight major fertilizers were higher compared to the first week of September, but none of the fertilizers showed any significant rise. DAP had an average price of $715/ton, MAP $744/ton, potash $660/ton, urea $620/ton, 10-34-0 $819/ton, UAN28 $405/ton and UAN32 $457/ton.  One fertilizer was slightly lower compared to one month earlier. Anhydrous had an average price of $795/ton.

On a price-per-pound-of-nitrogen basis, the average urea price was at $0.67/lb.N, anhydrous $0.48/lb.N, UAN28 $0.72/lb.N and UAN32 $0.71/lb.N.

All eight major fertilizers are now showing double-digit increases in price compared to one year earlier. Leading the way higher is 10-34-0. The starter fertilizer has skyrocketed in recent months and is now 81% higher compared to the first week of October 2010.  Urea has jumped 41% higher while potash has climbed 38% higher and UAN32 has increased 35% from a year ago. UAN28 is now 31% higher and anhydrous has climbed 24% higher compared to year earlier.  The two phosphorus fertilizers continue to bring up the rear. DAP is 19% more expensive while MAP is 18% higher compared to October of 2010.



Cargill reports first-quarter fiscal 2012 earnings

Cargill reported $236 million in earnings from continuing operations in the fiscal 2012 first quarter ended Aug. 31, a 66 percent decrease from $693 million in the same period a year ago. Last year’s first quarter included an additional $190 million in earnings from Cargill’s former majority investment in The Mosaic Company. First-quarter 2012 revenues rose 34 percent to $34.6 billion.

“It was a tough quarter. With results down from recent levels, we’re focused on regaining our earnings momentum,” said Greg Page, Cargill chairman and chief executive officer. “Cargill is backed by a strong balance sheet, with broad resources and capabilities, including those we are gaining from a diverse group of acquisitions over the past 12 months. We’re well prepared to invest and grow through innovation, our partnerships with customers and the resiliency built into our business mix.”

Page said the change in Cargill’s results is due in large part to the persistently high degree of uncertainty in the global economic environment, which injected turbulence into commodity markets and limited prudent trading opportunities. The prevailing “risk-on, risk-off” dynamic in financial markets also caused capital to move in and out of commodities rapidly, which reinforced taking a disciplined approach to risk-taking. Other factors included acquisition-related expenses and outlays related to the flooding on U.S. inland waterways, which increased freight costs and required measures to be put in place to protect supply chains to customers.

Among the five business segments, earnings rose in agriculture services due to crop input sales related to weather-delayed plantings and the demand for grain handling, storage and marketing services in the lead up to the North American harvest. Results in the origination and processing segment decreased from last year’s solid first quarter, negatively affected by the combination of adverse weather, reductions in projected grain supplies and the weakening world economy. In the food ingredients and applications segment, the food ingredient businesses on a combined basis nearly matched last year’s record-high performance. Results among the segment’s animal protein businesses were weaker due in large part to higher livestock and feeding costs in North America relative to domestic demand; exports remained firm. The risk management and financial segment was hurt by the stress in financial markets caused by growing economic, fiscal and political concerns on both sides of the Atlantic. Industrial earnings softened on lower seasonal demand.