Tuesday October 25 Ag News

Sign-Up for 2010 Crop Losses to Begin November 14, 2011; 2012 DCP and ACRE Sign-Up to Begin January 2012

USDA Farm Service Agency (FSA) recently announced that enrollment for 2010 crop losses under the Supplemental Revenue Assistance Payments (SURE) Program will begin November 14, 2011.  Sign-up for the 2012 Direct and Counter-Cyclical Program (DCP) and the Average Crop Revenue Election Program (ACRE) will begin January 23, 2012.

Eligible producers who suffered losses during the 2010 crop year are encouraged to visit their local FSA office to learn more about the SURE Program and how to apply.  The SURE program provides financial assistance for crop production and/or quality losses due to a natural disaster.  Because the 2008 Farm Bill does not authorize advance direct payments for 2012, the 2012 DCP and ACRE sign-up will begin on January 23, 2012.  This will allow county office employees to expedite disaster assistance sign-up this fall.

As noted above, sign-up for 2010 crop losses under SURE will begin November 14, 2011.  Sign-up for 2011 crop losses will be accepted in the fall of 2012, after the 2011 farm revenue data becomes available.  Producers in counties that were declared a 2010 Secretarial Disaster and any county contiguous to those counties may be eligible if they suffered a 10 percent loss or greater on any crop of economic significance.  Thurston County Farm Service Agency County Executive Director Josie Waterbury says Thurston County was contiguous to a disaster declared county in 2010.  Producers in counties that were not declared a Secretarial Disaster or were not contiguous to such counties would qualify if they had over a 50 percent loss.

If producers think that they may qualify for a SURE payment, they are encouraged to contact their local county office in order to schedule an appointment.

For more information on the 2010 SURE program or to schedule an appointment, please contact your county FSA office.



Low Stress Weaning Proves Valuable Option for Producers
Larry Howard, UNL Extension Educator, Cuming County 

Calves enrolled in value-added programs have to be weaned at least 45 days before their sale date. In those 45 days, calves must grow and gain weight efficiently. Also, it’s important for calves to go through the weaning process with a minimum of stress and begin gaining immediately.

In recent years, weaning strategies have been studied because methods to reduce calf-stress have become very important to producers. California researchers just used a fence to separate calves from their dams to wean, known as fenceline weaning. Researchers compared these calves to those weaned separately from their dams, known as separate weaning. The separate calves couldn’t see or hear their dams.

Researchers monitored calf behavior for five days after weaning. Fenceline weaned calves and cows spent 60 percent and 40 percent of their time respectively within 10 feet of the fence during the first two days. During the first three days they bawled and walked less, and ate and rested more compared to the more traditionally weaned calves. Those differences were gone by the fourth day. Seven days after weaning, all calves were managed together. After two weeks, fenceline calves gained 23 more pounds than traditionally separate calves, a difference that continued even after 10 weeks when fenceline calves gained 110 pounds compared to 84 pounds for traditionally separate calves.

Calves that eat more during the first days after weaning should stay healthier than those that don’t. Ohio State University researchers conducted a study that indicated fenceline calves had a lower incidence of respiratory diseases.

Fenceline weaning requires well-maintained fences and adequate water supplies for both sides of the fence. Producers should remember a large number of cattle will be congregated in a small area for several days, so it’s important that enough water is available for both cows and calves.    

Control Winter Annual Weeds Now
This fall has been great for pennycress, mustards, henbit, and downy brome to get started in your alfalfa.  Treat them now if you want to avoid heavy weed pressure next spring. 

This has been a nice fall.  Good weather has blessed many areas and much of the alfalfa still is green after a few light freezes, but it also has been a great fall for winter annual weeds to get started in that green alfalfa.  Check your fields and you might find small henbit plants or mustard rosettes or short seedlings of downy brome.  This density and robust start suggests heavy weed growth next spring.  If left uncontrolled they could grow rapidly, reducing alfalfa yield, thinning stands, and lowering forage quality.

To avoid next spring’s weed infestation, spray fields before soils freeze up.  Probably the three best herbicides to use right now are Sencor, Sinbar, and Velpar.  All three do an excellent job of controlling pennycress, mustards, and downy brome.  Raptor might be a better choice if henbit is your biggest problem.

You can wait and be successful with spring spraying.  The risk with this thinking, though, is that spring spraying must be done before alfalfa greens up or you will injure your alfalfa plants.  Usually, there are only a few days in spring where alfalfa is dormant, weeds are actively growing, and it’s not too wet or windy.  Most of the time, fields don’t get sprayed at all or they get sprayed late and alfalfa suffers some setback.

Take advantage of opportunities now to control weeds in your alfalfa.  That way you won't be plagued by them next spring.




Legislation Aims to Draw New Generation of Farmers

Congressman Jeff Fortenberry (NE-01) and Congressman Tim Walz (MN-01) are leading a bipartisan initiative to revitalize rural America by encouraging young people to engage in farming operations and agricultural entrepreneurship.  They have introduced H.R. 3236, the Beginning Farmer and Rancher Opportunity Act of 2011, in the U.S. House of Representatives.   Walz and Fortenberry are both members of the House Agriculture Committee.  Companion legislation will be introduced in the U.S. Senate in coming weeks.

“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,” Fortenberry said.  “Exciting new opportunities are emerging in production agriculture export markets, value-added goods and local foods systems, conservation, and energy generation. This legislation provides practical 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.”

"We have to make sure America’s next generation of family farmers have the support they need to continue providing a safe, abundant food supply," said Rep. Walz. “This legislation is a smart, effective way to support our local economies and create local jobs.”

The average age of the U.S. farmer is 57.  The average age in Nebraska is 56, and in Minnesota it is 55. The Beginning Farmer and Rancher Opportunity Act seeks to ready a new generation of American ag producers by modifying and improving upon existing farm programs to help reduce the steep financial burdens of setting up an agricultural business.

Fortenberry is chairman of the Agriculture Committee’s Subcommittee on Department Operations, Oversight, and Credit.



Nebraska Counties Eligible for Emergency Loans

Farm Service Agency (FSA) State Executive Director, Dan Steinkruger, announced that family farmers in two Nebraska counties may be eligible to apply for low interest Emergency (EM) loans due to physical and production losses caused by flooding that occurred from April 1, 2011 and continuing. The counties named are: Cedar and Dixon.

These two Nebraska counties became eligible for this assistance because they are contiguous to one or more of the three South Dakota counties that were designated on October 12, 2011 by the Secretary of Agriculture.

In addition, with a qualifying loss, this designation makes producers eligible for the Supplemental Revenue Assistance Program (SURE). With this disaster declaration, producers that have suffered at least a 10% loss on a crop in their farming operation will be able to apply for SURE benefits. Applications for 2011 SURE, will begin after the 2011 crop marketing year has ended which will be in the fall of 2012.



NCBA Stays Firm on Farm Dust
— NCBA Past President Testifies to Stop EPA from Regulating Dust Permanently

Although rumors are circulating that refer to the Environmental Protection Agency’s (EPA) attempt to regulate farm dust as a myth, a hearing hosted by Chairman Ed Whitfield (R-KY) of the House Subcommittee on Energy and Power cleared up what many call profound misconceptions. Testifying on behalf of the National Cattlemen’s Beef Association was Steve Foglesong, immediate past president of the organization and a rancher from Astoria, Ill. Foglesong said ranchers are pleased EPA has decided not to propose to lower the standard for coarse particulate matter (dust) this year but the issue is far from resolved.

He said EPA does not have a consistent track record of doing what it proposes. In fact, in 1996 EPA proposed to remove the dust standard altogether, only to bring it back in the final rule. In 2006, EPA proposed to exempt farm dust. That exemption also disappeared in the final rule. Foglesong said even if EPA retains the current dust standard, the opportunity remains for the agency to tighten it in the future. Unless Congress passes the Farm Dust Regulation Prevention Act, he said that threat remains. Chairman Whitfield said family farmers and ranchers need flexible, science-based regulations, rather than an EPA guessing game.

“EPA’s unprecedented wave of stringent and inflexible regulations pose a serious threat to the economy,” said Whitfield. “Now, this overly aggressive EPA has discussed focusing their efforts on family farms under the guise of revising the National Ambient Air Quality Standards for particulate matter.  With record high unemployment and deficits, it is beyond understanding as to why EPA would even think about regulating farm dust.”

Foglesong testified that the regulation of dust under the Clean Air Act (CAA) is supposed to be based on a finding by scientists of adverse health effects. Historically, he said there has been no evidence of adverse health effects from farm dust at ambient levels. But EPA has decided to regulate it anyway. In 2006, EPA based its decision on the precautionary principle.

“That’s right, EPA’s dust regulation is not based on science but on caution,” said Foglesong. “In an effort to bring a little common sense back into the process, cattlemen believe the best solution is for Congress to pass the Farm Dust Regulation Prevention Act of 2011. That way regulatory decisions regarding dust will be left to state and local government instead of the federal one-size-fits-all approach.”

He cautioned that no one can be sure of the outcome of the rulemaking until it is final. Foglesong still worries about the future since the CAA requires the standard come under scrutiny every five years. He said the only way to provide certainty to farmers and ranchers is for Congress to pass the Farm Dust Regulation Prevention Act introduced in the Senate and the House of Representatives.

“The fact is, farmers and ranchers want and need certainty about this issue. Regulatory uncertainty is unnecessary and unproductive,” said Foglesong. “If EPA follows through and does not revise the dust standard, such an action would only provide us with certainty for five years. It provides no relief to those producers who are spending more than $1,000 per day on dust control measures right now. We need immediate, permanent relief from federal dust regulation on farms. And cattlemen believe the best way to achieve that is by passing the Farm Dust Regulation Prevention Act.”



Record Biodiesel Production Continues in September
EPA Reports 119 Million Gallons for Month

A U.S. record 119 million gallons of Biomass-based Diesel were sold during the month of September, the EPA reported Monday. That marks the sixth consecutive monthly record and is an 8 percent increase over the previous high of 110 million gallons in August.  Biodiesel makes up the vast majority of the EPA's Biomass-based Diesel category under the Renewable Fuel Standard program, representing about 95 percent of the volume this year. Through September, biodiesel sales total 686 million gallons for 2011. To view the EPA's numbers visit the EMTS website here.

Biodiesel is America's first Advanced Biofuel - a renewable, clean-burning diesel replacement that is creating good-paying jobs, reducing U.S. dependence on foreign petroleum and improving our environment. It is produced in nearly every state in the country and will support more than 31,000 U.S. jobs in 2011 while replacing nearly 1 billion gallons of petroleum diesel. Made from an increasingly diverse mix of resources such as agricultural oils, recycled cooking oil and animal fats, it is the first and only commercial-scale fuel produced across the U.S. to meet the EPA's definition as an Advanced Biofuel. Biodiesel can be used in existing diesel engines and meets strict specifications of ASTM D6751.



RFA applauds Big 3’s commitment to FFVs, releases comprehensive list

The Renewable Fuels Association (RFA) today commended General Motors, Ford Motor Company, and Chrysler for meeting their pledge to produce 50 percent of their new vehicles as flexible fuel vehicles (FFVs) by 2012.  Flexible fuel vehicles are cars, pickups, or SUVs capable of using any blend of ethanol up to 85 percent of the gallon, or E85.

“Ethanol-ready vehicles are essential if Americans are to increase our use of domestically-produced ethanol and reduce our reliance on imported oil,” said RFA President and CEO Bob Dinneen.  “In order to see this industry continue to grow and evolve, including the commercialization of new ethanol technologies, we must continue to invest in FFVs, blender pumps, and other infrastructure to maximize the benefits of using a homegrown renewable fuel.  The RFA commends the Big Three for living up to their commitment and challenges other automakers to follow their lead.”

According to data compiled by the RFA from expected FFV model production and conversations with General Motors and Ford Motor Co., America’s “Big 3” are on pace to produce half of all new vehicles as FFVs in 2012.  Currently, there are approximately 9 million FFVs in use.  The RFA has compiled a list of FFVs available by make, model and model year.  To see if your vehicle may be a FFV, download the list here.

“Vehicles are just one part of the plan needed to open America’s fuel market to higher level ethanol blends and other alternative fuels,” said Dinneen.  “Investments in blender pumps that can dispense a wide range of ethanol blends and the passage of legislation like the Open Fuel Standard are needed to end oil’s monopoly on how Americans get to work or go on vacation.  With changing federal regulations and fuel quality needs in the years to come, ethanol producers and automakers have an opportunity to work constructively together to help America achieve its environmental and energy security goals, all while creating jobs and economic opportunity here at home.”

The RFA is joining with national security experts and alternative fuel industries to push for enactment of an Open Fuel Standard (OFS) that would help level the playing field for new fuel technologies.   



DDGS valued at 1.22:1 when compared to traditional corn, soy feed rations

A new report from the U.S. Department of Agriculture (USDA) found that the animal feed produced by U.S. ethanol plants (known as distillers grains or DDGS) is replacing even more corn and soybean meal in livestock and poultry feed rations than previously thought. The report’s findings have important implications for discussions regarding ethanol’s impact on feed grains availability, feed prices, land use effects, and the greenhouse gas (GHG) impacts of producing corn ethanol.

According to the report by USDA’s Economic Research Service (ERS), “Findings demonstrate that, in aggregate (including major types of livestock/poultry), a metric ton of DDGS can replace, on average, 1.22 metric tons of feed consisting of corn and soybean meal in the United States.”

Every 56-pound bushel of corn processed by a dry mill ethanol plant generates 2.8 gallons of ethanol and approximately 17.5 pounds of animal feed. In essence, the new ERS report dispels the conventional assumption that every bushel of corn processed by an ethanol plant generates an amount of feed equivalent to just one-third of the original corn bushel. ERS underscored this point by stating, “Feed market impacts of increased corn use for ethanol are smaller than that indicated by the total amount of corn used for ethanol production because of DDGS.” In fact, ERS found the amount of feed (corn and soybean meal) replaced by the DDGS represents nearly 40 percent (on a weight basis) of the corn used in the associated ethanol production process for a given crop year.

“The value of the animal feed produced by the ethanol industry has long been misunderstood, understated and misrepresented,” said Geoff Cooper, RFA Vice President of Research & Analysis. “Distillers grains continue to be the industry’s best kept secret, despite the fact that we are producing tremendous volumes of this high value feed product today. DDGS and other ethanol feed products significantly reduce the need for corn and soybean meal in animal feed rations. Over the past several years, distillers grains have been one of the most economically competitive sources of energy and protein available on the world feed market. While some critics of the ethanol industry attempt to downplay the role of DDGS, the facts simply can’t be ignored.”

One of the reasons that one ton of DDGS can replace more than one ton of conventional feed is that its energy and protein content are concentrated. Only the starch portion of the corn kernel is converted to ethanol, while the protein, fat, fiber and other components are concentrated and passed through the process to the distillers grains. Grain ethanol feed product volumes approached 39 million metric tons in the 2010/11 marketing year, an amount of feed that would produce nearly 50 billion quarter-pound hamburger patties. Nearly 25% of U.S. ethanol feed output is exported to countries around the world to feed livestock and poultry.

More complicated, but no less important, is the impact of DDGS on land use change and the GHG emissions associated with corn ethanol production. Most existing biofuel regulations, including California’s Low Carbon Fuels Standard (LCFS), significantly undervalue the contribution of DDGS when assessing the net GHG impacts of corn ethanol. For instance, the California Air Resources Board (CARB) assumed for its LCFS analysis that one metric ton of DDGS replaces only one metric ton of corn, with no substitution of soybean meal. Using information from the new ERS report would significantly increase corn ethanol’s GHG emission benefits.

“The RFA has long pointed out that the importance of DDGS is being undervalued by the regulatory agencies responsible for federal and state regulations that require a GHG assessment of ethanol,” said Cooper, highlighting two 2009 reports sponsored by RFA that reached similar conclusions as the new ERS report. “USDA’s new analysis clearly shows the importance of accurate DDGS accounting.  The Environmental Protection Agency and CARB should immediately adopt these new findings into their GHG modeling for the RFS2 and LCFS.  The resulting decrease in ethanol’s lifecycle GHG emissions could be significant.”



Weekly Outlook: Cattle Can Eat Corn, Too

Cattle feeders are going to use more corn than previously expected according to USDA's latest Cattle on Feed report that showed 5 percent more cattle in the nation's feedlots, said Purdue University economist Chris Hurt.

"The real surprise was the higher number of placements in September that has resulted in over one-half million more cattle being fed than a year ago. Feed grains used by cattle in feedlots from the 2011 crop will now likely be more than 5 percent higher than was fed from the 2010 crop," he said.

Although calves can eat corn, they can also add weight with forages. The surprisingly high rate of placements in September indicates that corn had gotten "cheap" relative to forages, he said.

"December corn futures fell by $1.75 per bushel during September, which was enough to shift the feedlot outlook from bleak to rosy. Managers responded by buying lightweight animals as placements of calves under 700 pounds were up a remarkable 14 percent," he said.

The implication of placing such a large number of young calves is that they will be on feed a long time and eat a lot of feed grains. The broader implication for the corn market is that most end users of corn saw a similar shift in their industry's outlooks as corn prices fell, he added.

Also contributing to the interest in putting young calves in the feedlot has been a bullish finished cattle market. April 2012 live cattle futures moved $2 per hundredweight higher in September, and have since added another $2 in October. On Oct. 21, April 2012 futures approached $130.

"Three factors are driving the bullish cattle market: the anticipation of very limited 2012 domestic beef supplies; foreign buyers of U.S. beef who are willing to pay the high prices; and a more optimistic tone for the world economy," he said.

Per capita availability of beef in 2012 will be down to just 54.3 pounds according to USDA estimates. That is a startling 17 percent reduction since 2007 when high corn prices (and drought more recently) sent the beef industry into a liquidation tailspin, Hurt said.

"Foreign markets are buying a record amount of beef at record high prices. USDA now expects a record 2.7 billion pounds of beef to be exported this year, representing a record 10 percent of domestic production," he said.

A new record is expected to be set next year with 11 percent of production moving to foreign consumers. In sharp contrast, in 2007 only 5 percent of production was exported when the U.S. was still in the grips of lost exports due to BSE discoveries beginning in late 2003, Hurt noted.

According to Hurt, U.S. equity markets were concerned about the European debt crisis and slow global economic recovery in August and September. "There was even some talk of a potential repeat of the global financial crisis that had occurred in the fall of 2008," he said.

Although the European concerns have not been solved, markets have reduced the odds of the doomsday outlook, and the S&P 500 has rallied 14 percent since the first trading day of October, he said.

Hurt said that finished cattle prices are expected to trade in the low $120s for the rest of this year and increase modestly in the winter. The 2012 spring price rally is expected to increase prices to the higher $120s for March, April and May, with summer prices cooling to the mid-$120s. Record annual prices are expected for 2012, averaging in the low to mid-$120s, compared to the previous record, which will be set this year near $115.

"The high level of September calf placements was a demonstration that corn futures prices below $6.00 per bushel were too low and created opportunities for end users such as cattle finishers to lock in favorable financial returns. It is the first indication from the animal sector that there is a rebuilding of corn use now due to 'low' corn prices," he said.

Hurt said the optimism of the cattle industry probably suggests that corn prices will have continued upward mobility to equate costs with potential livestock returns.

"The same can be said for the pork industry and again brings into question the low level of corn feeding that USDA continues to use in their supply and demand estimates," he said. "They have feed and residual use down 2 percent while animal numbers and use appear to be closer to up 2 percent."

If this is so, this represents an added 150 to 200 million more bushels for feed use. In addition, slightly smaller corn use for ethanol reduces distiller's availability. Added to the accumulating corn demands of the animals industries are very strong margins for the ethanol industry and their ability to pay much more for corn than current prices, he said.



Fertilizer Prices Rise Slightly

Prices of most types of fertilizer showed some slight upward movement since early October, but are markedly higher than prices from the same period a year ago, DTN found in its weekly survey of more than 300 retailers nationwide.

Retail prices of 10-34-0 show the steepest gains for the third week of October, compared to a year earlier. The starter fertilizer now averages $823 per ton, about $316/ton or 62% above prices a year ago. Anhydrous prices rose slightly to $813/ton in the survey, about 24% higher than the same time last year.

Prices of DAP averaged $713/ton, 17% over price levels a year ago.  Prices of MAP averaged $744/ton, 12% higher than prices a year ago.

At $661/ton, retail potash prices were about 32% higher than the same time last year. Urea prices averaging $620/ton were 37% above a year ago.

Prices of UAN28 averaged $407/ton, up 25% from a year ago. Prices of UAN32 averaged $456/ton, 26% above prices in October 2010.



Agriculture Secretary Vilsack on Priorities for the 2012 Farm Bill

Agriculture Secretary Tom Vilsack spoke at the John Deere Des Moines Works on USDA priorities for the 2012 Farm Bill. Below are the Secretary’s remarks as delivered:

“I appreciate the opportunity to be here at John Deere to talk about a subject which I think is a very, very important; and that is about the priorities for the upcoming legislation, often called the Farm Bill.

“Now, this legislation and the bills that Congress will pass is really about keeping pace with the changing needs of agriculture and the challenges which face rural America.  It's about providing an adequate food supply for our nation and the world. And the choices that these lawmakers will make will help shape agricultural, food, and rural development policy and will help determine what our farms and our rural communities look like.

“It's also going to determine where our energy supply comes from and if we all eat. So we need to think bigger than the words "Farm Bill" suggest.  After all, for decades this bill has been about a whole lot more than just farming. It's been about energy, it's been about nutrition, it's been about jobs. Now, some may keep calling it the Farm Bill out of convenience, or maybe even out of tradition; but I think we're doing it a disservice.

“If we want this legislation to have the support of the other 98 percent of Americans who don't farm, we've got to remind those Americans why this legislation matters to them and to their families.

“Now, first of all, I want to acknowledge that there are considerable external pressures that will affect this effort.  Fiscal and political realities about the size of our debt and the deficit have inspired a very tight budget environment.

“Last week a bipartisan leadership group in Congress submitted a proposal to the Joint Select Committee on Deficit Reduction, also known as the Supercommittee, to cut $23 billion out of the bill over the next ten years.  And though these numbers are by no means final, it is a reminder to all of us that if we want this legislation to accomplish a lot, we have to understand that there will be considerably less funding in which to do it. So our priorities must be clear.  We simply need to do more with less.

“We have to simplify existing programs; we need to reduce redundant provisions; and we need to put a premium on creating innovative solutions to address our current and future problems, also recognizing the importance of making targeted investments to keep agricultural productivity high and our rural communities vibrant. So today I want to offer some thoughts on those priorities.

“Let me begin with our responsibility to strengthen American agriculture. Many folks don't realize this, but American farmers and our agricultural industries contribute in no small way to the economic health and strength of our great country.

“Agriculture is responsible for one out of every twelve jobs in our economy.  The folks who work here, the UAW machinist folks who I met with earlier, they can tell you the work in this plant is directly tied to how significant and strengthened the agricultural economy is.

“What we do on the farm ripples through the economy and helps to create jobs, particularly when agriculture is thriving. What's more, the productivity of American farmers and ranchers help American families stretch their paychecks.

“Americans spend, on average, about 6 to 7 cents out of every dollar they earn on food. This is far less than families around the world.  It gives us the freedom and the flexibility to spend or invest in other parts of the economy. And today I'm proud to say that agriculture is a bright spot in the American economy.

“After adjusting for inflation, farming income today is at its highest level in nearly 40 years, farm debt is falling, and farm equity is growing.  In short, American agriculture is on sound footing. But we didn't get here by accident.

“We're here because of the policies and the investments that have been made over the course of many decades.  We're here because we've focused on three core principles that have helped to shape the success of American agriculture, and those principles need to be protected and advanced as Congress works on legislation.

“The three principles can be simply stated: We need to maintain a strong safety net, we need to support sustainable productivity, and we need to promote vibrant markets. As they work on this bill, Congress must agree on the right mix of policies to provide an adequate safety net for those who need it.  High input costs means agriculture will always remain a high risk.  A bad crop, ruined by a natural disaster or an unpredictable price collapse, can put a hard-working farm family out of business quickly.  These families rely on a strong safety net.

“This year I visited farms across the country who were devastated by natural disasters.  I met farmers this spring who were never able to plant a crop because their land was flooded.  I saw fires and droughts in the southwest destroy forests and grazing land.  And this fall I stood in fields of fruits and vegetables that were ready for harvest but were ruined by Hurricane Irene.  It was a visceral reminder of how important the safety net is for our farmers, ranchers, and our producers.

“In my conversations with these producers, I heard about parts of the safety net that are working pretty well.  I also heard about parts that weren't. The SURE program isn't sure enough or swift enough, ACRE is not simple enough, and crop insurance may not cover enough.

“There are a few things that came up over and over again in my conversations with these farmers, and they need to be addressed in the next Farm Bill. Farmers recognize that the safety net makeup will likely change, but the production and protection it affords ought not to be compromised. And here are several keys to make sure that that protection and production are protected:

“First, producers need assistance quickly after they lose their crops to a natural disaster.  Their bankers are not going to wait two years to make loan payments and receive those loan payments, and they can't expect -- nor can we expect -- our producers to wait two years to have the safety net kick in.

“Second, the safety net needs to reflect the diversity of American agriculture.  That is to say, it needs to work for all kinds of farms.  It can't favor the planting of one crop over another.  It needs to make sense for farmers, and it needs to work for ranchers.  It's got to work for row crop farmers in Iowa, specialty crop producers in upstate New York, cattle ranchers in Texas, or rice or cotton farmers in Louisiana.

“Third, the programs that comprise the safety net have got to be simple and understandable. Programs shouldn't discourage farmers from applying, they shouldn't be too costly to attain, or too slow to matter.

“And, finally, the safety net has got to be accountable and justifiable to the 98 percent of us who do not farm.  We have a responsibility to the American people to use their resources wisely and to provide assistance only when it's needed. Congress has a tremendous opportunity to make sure the safety net works for all of our producers, and it's extremely important that they get it right.

“As I said, agriculture will always be risky, but good policy can avoid needless risks. While established farmers may have enough equity in their farms and ranches to survive a bad year or two, that's not necessarily true for beginning farmers or ranchers.  The program design also needs to take that distinction into account and appreciate that distinction. So as we strengthen the safety net, we should also make it easier for young people or older people, who have never done it before, to begin farming.

“Why is this important?  Well, it's simple. America has an aging farming community.  In the past five years, we've seen a 20 percent decrease in the number of farmers under the age of 25; and based on the last ag census; the average American farmer is 57 years of age.  Nearly 30 percent of American farmers are over the age of 65, which is almost double the number of folks in the workforce over 65. Now, some of these folks want to slow down or retire; but they have no one to take over the farming operation.  That challenges us to find new ways, through tax policy, through regulations, through our credit programs or other programs, to help transition farms to the next generation.

“We'll need a community effort to recruit, train, and support this new generation of farmers and ranchers; and we need to make sure that it's for operations of all sizes.

“Now, the second key principle I alluded to earlier centers on sustaining agricultural productivity.  Farmers and ranchers and growers must be able to produce an affordable and appealing product each and every year.

“Our farmers are the most productive in the world, and that leadership position must be maintained.  Today there's no question that American farmers can produce enough to feed our nation, but that hasn't always been the case.  Over the past 60 years, yields per acre of major crops -- corn, soy, wheat, and cotton -- have doubled, tripled, and in some cases even quadrupled.

“At the same time, livestock production and specialty crop production have become far more efficient.  Now, this evolution was not pre-ordained. Producers embraced new science and new technologies and production techniques we see here at this plant. We laid the foundation for this incredible productivity through a sustained investment in research; and Congress must find ways to support research that is focused on crop production and protection, on livestock production and protection. 

“Studies have shown that public investments in agricultural research earn a 20 dollars-to-1 return of investment in the U.S. economy.  Once that information is disseminated to farmers, ranchers, and producers, they take it and make -- make it work. And these benefits extend beyond just economic returns.  Research also leads to improved soil and water and air quality, and they help us to design strategies that will enable us to deal with the impacts of the changing climate.

“Public funding for agricultural research has remained basically flat-lined since the 1990s, clearly not keeping pace with other federally-supported research; and a recent USDA study sounded a warning signal to all of us that there is a direct link between increases in agricultural investment on research and agricultural productivity. If we continue to flat-line our commitment to research, our productivity will likely suffer; this at a time when our productivity will have to continue to increase to meet the global demand for food.

“Now, in addition to research, conservation is also an equally important component and strategy for sustainable productivity.

“In the 1930s a terrible drought and years of overworked farms led to the Dust Bowl, and millions of tons of soil were swept into the air.  Since then USDA has worked with farmers and ranchers and producers to improve the land and make it more productive through conservation.

“USDA has forged voluntary partnerships with land owners yielding real public benefits.  In the last 30 years producers have reduced soil erosion by more than 40 percent, and agriculture has now become the leading cause of restoring wetlands, whereas before, it was the leading cause of wetland loss.

“All of this is providing cleaner and better water for American people. Farmers understand why all of this matters. They understand the need for healthy and productive soil and the need for a plentiful water supply, and they appreciate that voluntary conservation programs support both needs.

“Now, in the past three years, USDA has looked for better ways to target conservation investments; and as a result, today we have a record number of acres enrolled in conservation programs. Guided by science, farmers will work to use the right conservation program and practices in the most critical areas of their farms.

“An analysis proves that this approach of voluntary conservation works; but, clearly, we cannot afford to let up.  That's why we're maximizing our efforts by embracing locally-driven conservation programs and by entering partnerships that focus on large landscape-scale conservation programs.  We have one here in the upper Mississippi River. We should also combine that strategy with an approach that gives farmers and ranchers regulatory certainty when they adopt certain conservation practices.

“I want to encourage Congress to continue their commitment to improve conservation programs, to maintain a robust investment in voluntary conservation assistance and to encourage our efforts towards regulatory certainty tied to conservation. Fewer programs, more flexibility, simpler applications, and a streamlined process for applying will help target our resources effectively and efficiently.

“Now, given limited federal resources, we also need to find creative ways to incent the private sector to invest in conservation.

“Now, if we can measure, and if we can verify the positive results of conservation, we can encourage the development of local markets in which businesses can purchase that result which will allow them to meet one of their regulatory requirements.  Leveraging private sector resources will avoid a decline in conservation practices in the face of fewer dedicated federal resources.

“Now, the final principle for promoting our agricultural productivity and protecting our farms obviously involves promoting strong markets.  Now, as Congress works on this bill, they should recognize we need vibrant, fair, and diverse markets at home and abroad for our farmers, ranchers, and producers of all types and all sizes.

“USDA has expanded markets for American goods abroad for decades, working aggressively to break down trade barriers with our global partners. At home we're reaching out to producers and enterprises of all sizes with information about how they can get into the export game, how they may be able to export their goods, and how they can make the financing to make it work. And these efforts have had a real impact.

“Over the past five years, U.S. agricultural producers have doubled the total value of their exports; and this year will be the best year we've ever had for American exports.  They'll top $137 billion, $20 billion more than last year. This will allow us to have a record trade surplus in agricultural production and products of $42 billion; and this will support, as importantly, nearly a million jobs.

“Just last week, to help build on this success story, President Obama signed trade deals with Colombia, Panama, and South Korea.  And this is going to add an additional $2.3 billion of agricultural exports for a range of products.

“Every additional billion dollars of agricultural sales helps to generate 8400 jobs at home.  So it not only helps improve the bottom lines for farmers and ranchers, but it also puts people to work. Congress can continue this success story and build on it with continued investments in USDA's trade promotion programs, which studies have shown return a -- $31 for every dollar we invest return on investment.

“Frankly, folks, the American brand of agriculture is the envy of the world.  We need to make sure that it always remains that way. Now, at the same time we look to expand opportunities here at home for producers, we also have to look at folks and opportunities for ways in which producers can access local and regional markets.

“Local food is one of the fastest growing segments of agriculture.  In the past decade direct consumer sales have doubled.  Making connections so that a farmer can sell at a local school or hospital, or even a neighbor down the road, creates good-paying jobs in our rural communities and keeps the wealth created from the ground close to home.

“Congress should continue the work that was started in 2008 to support our specialty crop producers with improved risk management tools and expanded market promotion.

“Now, this is more than just a Farm Bill. It also deals with nutrition.  That's why farmers aren't the only ones that need a safety net.  In a tough economy, families that struggle through tough times and seniors living on fixed income may also need help as well.  That's why we have the Supplemental Nutrition Assistance Program.

“Today, through that program, which we commonly refer to as SNAP, 44 million low-income Americans can put healthy, nutritious food on the table.  That number's coming down from an all-time high earlier this year as more Americans are finding  work with the creation of nearly 2 million private- sector jobs over the last 19 months.

“For many families SNAP is a bridge to self-sufficiency.  In fact, you may be surprised to know that half of all new SNAP participants leave the program within eight months.  To many Americans, they have an incomplete picture of who actually receives these SNAP benefits and who's benefiting from them.

“I suspect virtually everyone in this audience probably knows someone at some point in time who's a beneficiary of this program.  Now, over the last 20 years that program has transitioned from a welfare program to one that is primarily utilized by working families and seniors. Children of those working families are nearly half of all of the SNAP beneficiaries, and the elderly make up nearly 8 percent.  At the same time, only 8 percent of SNAP beneficiaries are those who receive cash welfare.

“In other words, 92 percent do not.  That's not what most people in America think. So we've got to continue to impress upon Americans the importance of this program, but we also have the responsibility to strengthen it.  And since the beginning of the Obama administration, we've worked to eliminate waste, reduce inefficiencies, and combat fraud in the program.  As a result, SNAP's error rate last year was the lowest in the program's history.

“By conducting more than 850,000 investigations into suspected SNAP fraud last year, we stopped payments to tens of thousands of individuals who weren't qualified and sanctioned more than 1800 stores for improper trafficking of SNAP benefits or other violations.  And we want to work with Congress to continue this work, to improve our data collection, to reduce our error rate, and to stop fraud.

“Any legislation considered by Congress involving farming in rural areas of America must also address the needs of the nearly 50 million people who live in those areas who don't necessarily farm.

“Now, there are bright spots in rural America today.  Production agriculture has had a significant success; emerging renewable energy strategies show great promise; consumers' interest in food that's created locally has created new opportunities for small and large firms involved in those local and regional food systems; and USDA has helped to drive job creation with the effective use of taxpayer dollars.

“For instance, we've helped to create or save nearly 105,000 jobs in rural America by partnering with local financial institutions to lend over $5 1/2 billion to several thousand rural businesses that were locating or expanding into America.  These resources leveraged another 15 to 20 billion dollars of private investment. We've helped to finance over 435,000 home loans in over 20,000 rural communities; 5,100 rural water and wastewater projects have been funded by USDA, putting people to work and providing clean water for nearly 17 million rural Americans; and we continue to invest in rural electrification, nearly $18 billion in the last two and a half years, to modernize that system.

“Now, by structuring our fees and our interest rates properly, these programs cost little, if anything, to the federal taxpayers; but all of them help to create jobs and improve quality of life. With this in mind, Congress should seize the opportunity to improve rural development programs in this next Farm Bill to make sure that the federal government is the best possible partner it can be for businesses and for people who want to live, work, and create business opportunities in rural communities.

“We need to make it easier for people to access USDA-supported programs, we need to reduce the number of programs, we need to simplify the process for applying for those programs, and we need to focus our efforts on firms that wish and need capital to invest in rural America.  We need to promote regional development to leverage our resources to the fullest extent.

“Now, one area of determined effort needs to continue to be a focus on the growing biobased economy, with a particular emphasis on renewable energy and biofuels.

“Rural America has done a great job of helping to develop the domestically-produced renewable energy and fuel.  That job must continue because when we create those opportunities, we create jobs, we reduce our reliance on foreign energy sources, and we enhance our national security.

“USDA has to have the tools to be able to continue to help this biobased and biofuel and renewable energy economy, and we need to make sure that it's vibrant in all regions of the -- of the country. Continuing our investment in renewable energy, biofuel, and biobased products will improve the bottom line for farmers as we find creative ways to use that which they grow.

“It will help create jobs in rural America simply because many of the   businesses, the biorefineries, and the industries, will be located where the product is, and we will substantially reduce our reliance on foreign oil.

“Just in the last couple of years, as a result of the expansion of the biofuel industry, we've gone from importing 60 percent of our oil to 52 percent.

“The President has challenged us to reduce our dependence on foreign oil by one-third in a decade.  That's roughly 18 percent.  That 18 percent is roughly equivalent to that which we currently import from the Middle East, a fairly unstable part of the world; and that instability reflects itself in the prices we pay at the pump.

“As a result of our biofuel industries, consumers across America are paying about $0.90, on average, less for gas than they would otherwise pay.  So it's a great opportunity for consumer choice, it's a job creator, and it improves income opportunities for farmers.

“Now, I recognize that the assistance we provide to this industry will likely be more targeted and more limited in the future; but we have momentum in many areas of the country to focus on nonfood feed stocks which will allow us to expand the production of advanced biofuels.  I'm committed to working with Congress to build on that momentum.

“Just recently we announced an opportunity with the Department of the Navy and the Department of Energy to build a drop-in fuel for aviation from nonfood feed stocks that will be grown and created in rural America.

“The Navy has agreed to purchase the fuel produced by biorefineries that we're going to help build.  The commercial aviation industry is excited about this opportunity because this fuel will allow them not only to have more stable pricing, but also will enable them to deal with whatever greenhouse gas regulations may be imposed upon them by other countries in the future.  This is an absolute opportunity for us to grow thousands and thousands of jobs in rural America.

“This is the type of program, this is the type of effort that needs to be continued.  That's why I'm hoping that Congress, as it looks at the Farm Bill, understands and appreciates the significance of the BCAP program and the REAP program, two programs that are continued -- worthy of continued investment.

“Just in 2009 and 2010 USDA invested in more than 22,000 renewable energy projects.  We're pursuing this next generation of advanced biofuels by helping communities and companies invest to build those biorefineries, we're funding regional research, and we're helping farmers to establish those biofuel crops.  We're supporting the farmers, ranchers, and businesses taking risks to pursue those new opportunities, and we're helping to establish the infrastructure to put renewable fuel in all of America's gas tanks.  Congress's effort has got to continue to offer strategic support to these important industries.

“Now, today, I believe very, very strongly, as I stand here today, in a bright future for American agriculture in rural America.  In fact, for American agriculture, it's as bright as it can be.  That's why this farm, food, jobs bill -- whatever you'd like to call it -- has got to build on the agricultural economy that we have today.

“We have to improve that economy with a strong safety net, a commitment to conservation, and a focus on market development; and this bill must also continue to provide for food assistance for families that are playing by the rules, working hard to provide for their families.

“And, finally, the bill has to give renewed life to rural America by leading our nation's effort to, once again, get back in the business of what's done here at this plant of making, creating, and innovating things that not only we need in this country, but the rest of the world wants and desires.  That will allow us to export, helping to create jobs here in America.

“It's been a long time coming, but rural America's making a comeback, and Congress's important work on this bill will lead to a much brighter, more hopeful, and more optimistic future for rural America. And I'm here today to tell you that USDA stands ready to help.



Clint Bowyer and American Ethanol Win at Talladega!

Kansas native and American Ethanol spokesman, Clint Bowyer, won his first race of the year in dramatic fashion at Talladega Superspeedway on Sunday as he raced to the front in the last lap to claim victory in the Good Sam Club 500. This also marks Bowyer's first race win since becoming spokesman for American Ethanol, of which the National Corn Growers Association is a founding member.

"We are all incredibly proud of Bowyer and elated to congratulate him on this important victory," said NCGA NASCAR Advisory Committee Chair Martin Barbre. "This win is also important for American ethanol. While every winner in every race this season won using a 15 percent ethanol blend, it puts ethanol in the spotlight as a high-performance, sustainable, domestic fuel source."

In addition to his trip to Victory Lane, Bowyer also won the American Ethanol Green Flag Restart Award in Talladega. He will receive the award during the seventh race in the season-ending Chase championship next Sunday at the Martinsville Speedway in Virginia.

Bowyer, who grew up in Emporia, Kan., paired up with Richard Childress Racing teammate Jeff Burton as a draft-push partner in the closing laps and then jumped out in front of Burton in the final lap of the 188 lap race. It was Bowyer's first win of 2011 and his fifth career victory. The win also marked the 100th Sprint Cup Series win for Richard Childress Racing and its sixth win of 2011 - the most of any Cup team.



Brazilian Soybean Planting Rattles Along

Brazilian soybean planting has been going at full steam for the last two weeks, aided by ample showers that have fallen across most of the grain belt.  As a result, farmers had already planted 21% of an estimated 61 million acres as of Friday, moving forward a massive eight percentage points from the week before, according to the local Safras e Mercado farm consultancy.  Planting is now well ahead of the five-year average of 13% for this stage of the season, despite a dry last two weeks of September that prevented producers in Mato Grosso from starting early.

Planting is most advanced in Mato Grosso, the No. 1 soy state and traditionally the first to plant, where 40% of the projected soybean crop is already in the ground, up sharply from 13% at the same point in 2010 when the late arrival of spring rains delayed the crop. At this rate, Mato Grosso planting will finished a couple of weeks in mid-November.

Parana, the No. 2 soy state in the south, is close behind Mato Grosso with 38% planted as of Friday, up from 28% last week. In past years, the soybean harvest spread down from center-west to south, but recently farmers in the north and west of Parana have been planting earlier to allow time for a winter corn crop.



CWT Assists with 3.9 Million Pounds of Cheese Export Sales

Cooperatives Working Together (CWT) has accepted 13 requests for export assistance from Dairy Farmers of America, Darigold and United Dairymen of Arizona to sell a total of 1,778 metric tons (3.920 million pounds) of Cheddar and Monterey Jack cheese to customers in Asia, North Africa and the Middle East. The product will be delivered October 2011 through March 2012.

In 2011, CWT has assisted members in making export sales of Cheddar, Monterey Jack and Gouda cheese totaling 35,774 metric tons (78.9 million pounds) to 23 countries on four continents. That is the equivalent of 789 million pounds of milk, the annual production of 37,600 cows.
 
Assisting CWT members through the Export Assistance program positively impacts producer milk prices in the short-term by reducing inventories that overhang the market and depress cheese prices. In the long-term, CWT’s Export Assistance program helps member cooperatives gain and maintain market share, thus expanding the demand for U.S. dairy products and the farm milk that produces them.

CWT will pay export bonuses to the bidders only when delivery of the product is verified by the submission of the required documentation.



Gas Prices Could Continue to Slide

Retail gasoline prices have dropped about 50 cents a gallon since the spring, and motorists could see them slide another 20 cents before the end of the year.  The national average, which slipped to $3.446 per gallon on Tuesday, should continue to fall at least through the new year, according to the Energy Information Administration.

Prices have declined for a few reasons: Motorists drive less in the fall than in the summer, and refineries are allowed to make lower-cost winter fuel blends.  Experts say motorists are cutting back because they can't afford to buy more. Prices flirted with $4 per gallon in May, and a gallon of regular is still about 63 cents higher than it was a year ago. Overall gasoline is expected to be at a record average high of $3.52 per gallon this year.



Stem Rust-Resistant Wheat Landraces Identified

U.S. Department of Agriculture scientists have identified a number of stem rust-resistant wheat varieties and are retesting them to verify their resistance. Stem rust occurs worldwide wherever wheat is grown. Over a large area, losses from stem rust can be severe, ranging from 50 to 70 percent, and individual fields can be destroyed.

Agricultural Research Service plant pathologist Mike Bonman at the agency's Small Grains and Potato Germplasm Research Unit in Aberdeen, Idaho, and his colleagues screened more than 3,000 wheat landraces from the National Small Grains Collection against new races of the stem rust pathogen found in wheat fields in Kenya. Landraces with confirmed resistance are being crossed with susceptible wheat to determine the genetic basis of the resistance.

Field trials in Kenya to screen for resistance are vital to this work, according to Bonman, who worked at the International Rice Research Institute (IRRI) for 9 years before coming to ARS. He is now working collaboratively with the International Maize and Wheat Improvement Center (CIMMYT) near Mexico City, and the Kenya Agricultural Research Institute (KARI).

The research team's goal is to find new genes for resistance to a rust strain called Ug99, because that strain has the capacity to overcome many of the resistance genes that have been used for the past 50 years. This work will help Africa's growers now and will help suppress disease and reduce damage in developing countries. It also will prepare the United States for Ug99 if the disease arrives domestically.



Another Farmland Price Record Set in Iowa
The northwest Iowa farmland market posted another one for the record books this month. On October 4, 120 acres in Sioux County sold for $16,750 an acre.  The 160-acre farm involved is located just northwest of Hull, north of Sioux Center, reports the Landowner newsletter.

The offering featured two tracts. Tract 1, 120 gross acres, with 116.5 tillable acres carried a Corn Suitability Rating (CSR) of 70 versus a county average of 64.8.  That tract brought a total of $2,010,000, according to auctioneer Del Beyer, Beyer Auction & Realty, Sioux Center, who handled the auction along with realtor Ben Jans, Jans Real Estate, Inc., also of Sioux Center.  Tract 2, 40.67 gross acres and 40.3 tillable aces with a CSR of 68 brought $13,100 per acre. Buyers and contending bidders are area farmers, Beyer says.