Wednesday October 19 Ag News

Winter Feeding Topic of UNL Extension Beef Program

The second session of the University of Nebraska-Lincoln Extension Mid-Plains BEEF Educational Series will be from 9:30 a.m. to 4 p.m. Nov. 16 at UNL's Agricultural Research and Development Center near Mead. Registration begins at 9 a.m.

The Mid-Plains BEEF Educational Series provides an opportunity for beef producers to enhance the value of their cattle operations, as the program draws upon the expertise of extension educators and specialists from across Nebraska.

Once the flurry of harvest activity has passed, cattle start to graze cornstalks. Beef producers have plenty to consider as herds hit the fields and winter feeding programs get underway. Determining stocking rate, grazing time, cow health, cost and availability of winter feed supplements are just a few of the components that should be considered in a systems approach to beef production.

The program is designed for producers, veterinarians, college students and others involved in the beef industry. Participants will learn more about the systems approach to beef cattle production through these multi-session, hands-on learning experiences in beef production, economics and forage management.

The Mid-Plains BEEF Educational Series is a multi-session program. It began in June and the final session will be Jan. 25, 2012. Participants may choose to attend one or all three sessions.

The November program will focus on: grazing stalks, mineral supplementation, feeding and storing distillers grains, third trimester cow health, body condition scoring, production costs and budgets and leasing.

All of these components are part of a systems approach with a connection between production, economics and forage management.

In January, focus will turn to: pasture revitalization, cover crops, calving and understanding EPDs.

Registration for the November program is requested by Nov. 9 and registration for the January program is requested Jan. 18. The fee is $60 per session which includes educational materials, noon meal and breaks.

The Mid-Plains BEEF Educational Series is an effort by a team of southeastern Nebraska Extension educators. To register or obtain more information, contact them at: Lindsay Chichester, Richardson County, 402-245-4324; Sara Ellicott, Saunders County, 402-624-8030; Jessica Jones, Johnson County, 402-335-3669; Darci McGee, Nuckolls/Thayer Counties, 402-768-7212 or 402-225-2381; Monte Stauffer, Douglas/Sarpy Counties, 402-444-7804 or Steve Tonn, Washington County, 402-426-9455.



NE Corn Board to Meet

The Nebraska Corn Board will hold its next meeting, Thursday, November 10, 2011 at Embassy Suites in Lincoln, Neb.   The Board will address regular board business.  The meeting is open to the public.  A copy of the agenda is available by calling either 402/471-2676 or 800-NECORN1 or by emailing janet.miller@nebraska.gov.   The Nebraska Corn Board is a self-help program, funded and managed by Nebraska corn farmers.  Producers invest in the program at a rate of ¼ of a cent per bushel of corn sold.  Nebraska corn checkoff funds are invested in programs of market development, research and education.



USW Brings Chinese Wheat Buyers to the United States

A team of executives from Guangzhou Huaren Grain Trading Co., Ltd., in the People’s Republic of China will visit the United States Oct. 19 to 28, 2011, to gain an understanding of the U.S. wheat handling and export system. The team is sponsored by U.S. Wheat Associates (USW) and will meet with the Oregon Wheat Commission, the Wheat Marketing Center, the Washington Grain Commission, the Nebraska Wheat Board, the Chicago Board of Trade and U.S. grain trading companies during its visit.

“This organization holds import/export rights for cereal and feed grains,” said USW People's Republic of China/Hong Kong Regional Vice President Matt Weimer, who will lead the team. “It is a purchasing agent for several Chinese flour millers that currently need imported, high-quality wheat to blend with domestic wheat to help meet increasing demand for more premium wheat food products.”

Weimar said to continue positioning U.S. wheat as the most valuable choice to meet that need, the team’s visit will help demonstrate U.S. wheat crop quality and how the U.S. wheat supply system works to ensure specifications are met.

In China, USW also offers personalized consultation for flour millers and wheat food processors. For example, Dr. Gary Hou, technical director and Asian foods specialist with the Wheat Marketing Center, travelled to China last April as a USW whole grain products consultant. Hou presented technical aspects of using whole wheat flour versus refined flour presented to nearly 200 participants at the first ever Whole Grain Foods Development International Forum.

Following the conference, Hou and USW Country Director Andy Zhao, who is based in Beijing, visited flour mills to discuss the benefits of using U.S. wheat in whole grain products. For example, they noted how U.S. soft white (SW) wheat could help maintain the bright white color preferred by Chinese consumers. Additionally, they showed how the stronger gluten in U.S. hard red winter (HRW) or hard red spring (HRS) wheat could address technical challenges with including the bran and germ in flour.

In just the first four months of the current marketing year, China has imported more than 11 million bushels of U.S. wheat including 5.3 million bushels of HRS, 2.6 million bushels of SW, and 3 million bushels of soft red winter (SRW) wheat. That is more than double what China imported in 2010/11 and more than it imported in 2009/10. COFCO, a diversified products and services supplier in agribusiness and food industries, is the largest importer of U.S. wheat in China.

Weimar said the team will also investigate opportunities to import U.S. wheat in containers, a delivery method preferred over bulk vessel shipments in many parts of China. Australia is currently meeting Chinese container load demand of as much as 18 million bushels per year.



Hoegemeyer Hybrids Announces New Corn, Soybean Lineup for 2012

Hoegemeyer Hybrids announces 23 new corn hybrids and soybean varieties for 2012.

“At Hoegemeyer Hybrids, we’ve spent more than 70 years listening to our customers and providing them with the right products to meet the unique needs of growers in the Western Corn Belt,” says Stephan Becerra, Hoegemeyer general manager. “We’ve added to our corn and soybean lineup for 2012, with a complete offering of western-focused seed genetics and technology.”

Of the 18 new corn hybrids, six include the Optimum® AcreMax® and Optimum® AcreMax® Xtra insect protection system, available in the HPT® brand. Optimum AcreMax insect protection offers growers a single-bag refuge option in areas only needing above-ground insect protection, while Optimum AcreMax Xtra insect protection is an option for single-bag refuge in areas needing both above- and below-ground insect protection.

Hoegemeyer will also offer five new soybean varieties in 2012, in addition to a complete line of sorghum, alfalfa and grass seed.

“Hoegemeyer is proud to be a regional seed company that offers farmers choice, agronomic advice and personal service specifically for the Western Corn Belt. Our 2012 corn and soybean lineup provides the right genetic combinations paired with the right technology to maximize yield potential,” Becerra says.

A variety of seed treatments are also available for all Hoegemeyer products.




Weekly ethanol production data for the week ending 10/14/2011

According to EIA data, ethanol production averaged 908,000 barrels per day (b/d) – or 38.14 million gallons daily.  That is up 48,000 b/d from the previous week.  The 4-week average for ethanol production stood at 868,000 b/d for an annualized rate of 13.3 billion gallons.  Stocks of ethanol stood at 17.1 million barrels.

Gasoline demand for the week averaged 361.1 million gallons daily.  Expressed as a percentage of daily gasoline demand, daily ethanol production was 10.56%.

On the co-products side, ethanol producers were using 13.768 million bushels of corn to produce ethanol and 102,474 metric tons of livestock feed, 90,481 metric tons of which were distillers grains, according to RFA calculations.  The rest is comprised of corn gluten feed and corn gluten meal.  Additionally, ethanol producers were providing 3.93 million pounds of corn oil daily.



September Milk Production up 1.9 Percent
                       
Milk production in the 23 major States during September totaled 14.8 billion pounds, up 1.9 percent from September 2010. August revised production at 15.3 billion pounds, was up 2.3 percent from August 2010. The August revision represented an increase of 17 million pounds or 0.1 percent from last month's preliminary production estimate.  Production per cow in the 23 major States averaged 1,742 pounds for September, 12 pounds above September 2010.  The number of milk cows on farms in the 23 major States was 8.47 million head, 101,000 head more than September 2010, and 1,000 head more than August 2011.

July - September Milk Production up 1.4 Percent
Milk production in the United States during the July - September quarter totaled 48.7 billion pounds, up 1.4 percent from the July - September quarter last year. The average number of milk cows in the United States during the quarter was 9.21 million head, 83,000 head more than the same period last year.



World Dairy Expo Has Record Setting Year

The recent World Dairy Expo in Madison has released its attendance figures for 2011 and show officials say this year's event was one of the best of all time. WDE Spokesperson Janet Keller announced that a record 2,587 head of dairy cattle were exhibited by 1,130 exhibitors at the Alliant Energy Center in early October.

"Sunny skies and unusually warm weather helped to create a memorable event for all that participated in the 2011 World Dairy Expo," Keller said.

Show people came from 37 states and seven Canadian provinces to vie for the coveted Grand Champion and Supreme Champion titles. The show's supreme champion came from Canada, as 'Eastside Lewisdale Gold Missy,' exhibited by Morsan Farms, Van Ruinen Dairy Ltd., Mark Butz and Gert Andreasen of Ponoka, Alberta took top honors. Junior Show Supreme Champion was awarded to 'South Mountain Voltage Spice-ET,' exhibited by Ben Sauder from Tremont, Illinois.

Total attendance for World Dairy Expo was 68,006 visitors, with 2,699 registered international guests from 90 countries. Visitors from Canada, Mexico, Ireland, China and Germany topped the list of international guests during the five-day event.

The trade show set new participation levels with 810 exhibiting companies from 28 different countries on-site displaying everything needed for dairy cattle management.

Meanwhile, the World Forage Analysis Superbowl entries also set a new record with a 43-percent increase in entries from 23 states.

Keller says plans are already underway for next year's event, which is being held October 2-6, 2012.



NCGA Asks Farmers, Allies to Speak Out Against Petition Seeking Ban on Atrazine

This spring, a group seeking to ban the use and production of atrazine submitted a petition to the Environmental Protection Agency. Consistent with its goal of openness and transparency in the regulatory and scientific processes, the EPA posted this petition on its website for public comment. The National Corn Growers Association asks that farmers and their allies take advantage of this opportunity before the window for submission closes on November 14.

"It is imperative that we speak out in support of the current policies regulating atrazine use," said Dean Taylor, chair of NCGA's Production and Stewardship Action Team. "This herbicide has played a vital role in farming for more than five decades, both increasing corn productivity and allowing for the use of practices that protect our environment."

The information submitted by Save the Frogs in this petition does not justify a change in regulations, Taylor said. Current, reputable research indicates no effects by atrazine on amphibians. Following an agency review in 2007, the EPA itself addressed one of the most common charges leveled by critics, stating "that atrazine does not adversely affect amphibian gonadal development based on a review of laboratory and field studies, including studies submitted by the registrant and studies published in the scientific literature." In its 2010 update, the EPA found that no additional testing was warranted to address this issue at this time.

Independent groups conducting research into possible effects of atrazine on amphibians corroborate the EPA's conclusions. As recently as last year, scientists from respected institutions such as the Australian Pesticides and Veterinary Medicines Authority, the World Health Authority and Yale University have issued multitudinous reports confirming that the proper use of atrazine has not been shown to have negative health effects on either humans or amphibians despite decades of extensive research.

Conversely, atrazine has a long-standing record of allowing growers to increase corn productivity by an average of 5.7 bushels per acre while implementing environmentally-friendly practices such as no-till farming, which helps reduce soil erosion and protect wildlife habitats. Utilized in more than 60 countries in Asia, Africa, Australia, South America and the Middle East, U.S. farmers use atrazine on more than half of all corn acreage, on two-thirds of sorghum acreage, and up to 90 percent of sugar cane acreage in some states.

Additionally, atrazine fights weed resistance by maximizing the performance of many other herbicides. In doing so, it minimizes the pressure of herbicide selection for resistant weeds. According to a 2003 EPA estimate, farming without atrazine would cost corn growers as much as $28 per acre in alternative herbicide costs and reduced yields. The impact today would be even greater due to the current price of corn.



ASA Supports Revenue-Based Farm Program
Sends Joint Letter with NCGA and NFU to Agriculture Committees

The American Soybean Association (ASA) today called on the Congressional Agriculture Committees to consider moving to a revenue-based farm program when they make further recommendations to the Joint Select Committee on Budget Reduction by Nov. 1.

“The realities of the current federal budget and debt crises make it imperative to find a viable risk management approach that can replace several existing programs,” said ASA President Alan Kemper, a soybean producer from Lafayette, Ind., in a joint letter also signed by the National Corn Growers Association (NCGA) and National Farmers Union (NFU). “A new revenue-based program should be designed to complement rather than overlap or replace the existing crop insurance program, which is a key part of the farm program safety net.”

The letter was sent following agreement by Republican and Democrat leaders of both the House and Senate Agriculture Committees to recommend $23 billion in spending reductions in programs currently authorized under the 2008 Farm Bill. The Committee leaders indicated that they would make further recommendations to the Joint Committee on how these cuts should be made among the various titles of the farm bill by Nov. 1. Eighty-four percent of the agriculture budget is comprised of nutrition programs, including SNAP (food stamps), with most of the balance in commodity and conservation programs.

“We would note that, under a revenue-based program, compensation for losses that exceed a certain threshold would only be made as they are incurred, on all production and only on a portion of the loss,” the letter stated. “This stands in contrast with the current Direct Payment program under which farmers receive payments regardless of whether they produce a crop or incur a loss.”

Kemper added that “many producers participate in the crop insurance program at levels that require losses of 30 percent or more before they are compensated. With the elimination of other elements of the farm safety net, a program is needed to offset part of these losses should they occur.”

Under the Budget Control Act, the Joint Committee has until Nov. 23, to propose legislation that would reduce federal deficits over the next 10 years by a minimum of $1.2 trillion. Congress would need to pass the bill, without amendments and by simple majorities in both Houses, by Dec. 23, and President Barack Obama would need to sign it to prevent automatic program cuts from being made in 2013 that would particularly impact agriculture.

“ASA looks forward to working with the Committees in their effort to provide details on their deficit recommendation to the Joint Committee,” Kemper said.



Grassley, Johnson Press for Farm Payment Limits

Senators Chuck Grassley and Tim Johnson have requested that the deficit reduction committee save more than $1.5 billion by including their legislation that places a hard cap on farm payments at $250,000 per married couple ($125,000 per individual).

"Our bill maintains the much needed safety net for farmers so we are assured that the American people will have a safe, abundant and inexpensive food supply. It also closes loopholes that have reduced urban support for the farm bill," Grassley said. "This is an easy way to save some additional funds in what's a very difficult task."

"Particularly given the budget environment we're in, it's important that our farm programs are effectively targeted to those who need the assistance the most: the small and medium-sized family farmers. I hope that our bill can be incorporated into any recommendations made by the deficit reduction committee," said Johnson.

Grassley and Johnson introduced the legislation on June 9, 2011. The legislation would set a limit of $250,000 for married couples for farm payments in an attempt to better target farm program payments to family farmers. Specifically, the bill caps direct payments at $40,000; counter-cyclical payments at $60,000; and marketing loan gains (including forfeitures), loan deficiency payments, and commodity certificates at $150,000. The bill also improves the standard which the Department of Agriculture uses to determine farmers who are actively engaged in their operations.



Dairy Situation and Outlook 
Bob Cropp, Professor Emeritus University of Wisconsin Cooperative Extension University of Wisconsin-Madison

With milk production increasing relatively strong for both August and September and softness in both U.S. dairy sales and dairy exports dairy product prices have weakened which means lower farm milk prices. USDA estimated August milk production 2.1% higher than a year ago with some slow down for September production, up 1.7%. The September increase was due to 1.0% more milk cows than a year ago but just 0.7% more milk per cow. While cheese and butter sales have been favorable fluid milk (beverage milk) sales have been about 1.6% lower than a year ago. Nonfat dry milk/skim milk powder exports for the period of January through July were 36% higher than a year ago, but August exports were up just 1%. For this same period cheese exports were 41% higher than a year ago, but were 10% lower in August. Butter exports which were running well above year ago levels through June, up 57% from a year ago, dropped 36% below a year ago in July and 6% below in August.

On the CME, 40-pound cheddar blocks which were above $2 per pound from early June to mid-August were $1.72 as of October 19th. CME cheddar barrels which were also above $2 per pound from early June to mid-August were also $1.72 per pound as of October 19th. CME butter which was over $2 per pound from early January through early September was $1.86 as of October 19th. West nonfat dry milk was running above $1.60 per pound from May to the end of July and is now trading in the $1.42 to $1.495 range. Dry whey prices have been the exception. With continued strong exports West dry whey continue to trade in the $0.61 to $0.6375 per pound range adding support to Class III prices.

Class III milk set new record highs for July and August at $21.39 and $21.67 respectively. The Class III price declined to $19.07 for September and will be near $17.90 for October. Class IV milk was $20.33 for July, $21.14 for August, $19.53 for September and will be near $18.30 for October.

Farm milk prices for the remainder of the year and into 2012 will be impacted by the level of milk production. The relatively strong increases in milk production continue to be driven by increases in the West and Southwest. Compared to a year ago, September milk production was up 4.7% for Arizona, 0.6% for California, 6.3% for Colorado, 2.9% for Idaho, 4.4% for New Mexico, 10.1% for Texas and 1.8% for Washington. California's increased milk production was considerably lower than its August increase of 2.9%, the result of 1.4% more cows but 0.8% less milk per cow. In the Upper Midwest, milk production was down 0.7% for Minnesota and just 1.8% and 1.5% higher respectively for Wisconsin and Iowa. In the Northeast, milk production was up slightly in New York, 0.1% and down 1.5% for Pennsylvania. In the Southeast, Florida's production was up 11.3%.

Class III futures are well below $17 for the first half of 2012 with some improvement after that but still below $17 for the last half of 2012 through September of 2013. Hopefully prices will turn out better than this. On the positive side for higher prices is cheese production. Cheddar cheese production for the month of August was 2.4% lower than a year ago and for the year-to-date 2.9% lower. Total cheese production was below a year ago for both July and August and up just 1.9% year-to-date. August 31st American cheese stocks were just 1.3% higher than a year ago and total cheese stocks even with a year ago. If cheese sales can continue to show some growth, along with anticipated favorable dry whey prices this would add support to Class III prices.

A growth in milk production well under 2% would help to support higher milk prices. USDA estimates milk production to end up 1.6% higher for 2011 with another 1.3% increase in 2012. If Class III prices do drop well below $17 this winter, with high feed prices increased herd culling, less herd expansions and increased exiting of dairy producers can be anticipated. This would slow increases in milk production and support higher milk prices. The increase in cow numbers, which increased month-to-month beginning October of last year through August of this year may have already stopped. The estimated 9.209 million head for September was the same as August. High feed prices will also dampen increases in milk per cow. Unless dairy exports decline significantly, and this is not anticipated, there is a good probability milk prices could strengthen and be higher than what Class III futures are now showing by the second and third quarters of 2012. But, the $20 Class III prices experienced this year are not likely in 2012.



Travel Fellowships Offered to Young Producers
 — NCBA Offers $250 Travel Vouchers for Annual Convention

 The National Cattlemen’s Beef Association (NCBA) is offering financial assistance to young producers who wish to attend the 2012 Cattle Industry Convention and NCBA Trade Show. NCBA is offering ten $250 travel fellowships to Young Producer’s Council (YPC) members to assist with travel costs and registration.

 YPC is an active player in NCBA policy development and is working to cultivate more peer members to serve as industry advocates. NCBA members between the ages of 18-35 qualify as YPC members and are encouraged to apply for one of the fellowships.

 The fellowships will help young producers attend the convention in Nashville, Tenn., Feb. 1-4, 2012. Ben Neale, YPC president and rancher from McMinnville, Tenn., said the opportunity to get involved with NCBA members and staff at the convention will be beneficial to all young producers.

 “We encourage all YPC members to consider applying for these fellowships and to get involved with the YPC program,” Neale said. “This is a great opportunity for young members to engage in policy decisions, network with many industry leaders and grow as leaders in this organization.”

 In order to apply for the 2012 Travel Fellowship, sponsored by NCBA, applications must be submitted by Nov. 11, 2011. Applications are available on NCBA’s website at www.beefusa.org. Any questions regarding the application or application process should be directed to Ben Neale at bneale@thebeefconnection.com or to Travis Hoffman at travis.hoffman@colostate.edu.  



DuPont Sues Monsanto Again
DuPont Claims Patent Infringement

DuPont Co. filed a patent-infringement suit against Monsanto Co.

In a brief statement, DuPont alleged Monsanto violated its patent for a seed production technique, one that "increases seed corn vigor to improve germination under stress." The suit was filed in the Southern District of Iowa.

Later Tuesday, Monsanto called the suit baseless and said it "appears to be another in a series of frivolous claims initiated by DuPont." It said the complaint relates to defoliating corn plants with herbicides Paraquat or Roundup, an approach not used in any Monsanto production fields. Monsanto said that it believed the lawsuit wouldn't have any practical effect on current or future business and that it would defend itself from the attack.

Rivals Monsanto and DuPont are no strangers in the courtroom. Since 2009, they have been embroiled in litigation over DuPont's genetically modified soybean seed Optimum GAT, with Monsanto claiming DuPont violated its patent and DuPont countering with a suit on antitrust grounds.

A DuPont spokesman said later Tuesday that the latest suit is unrelated to the soybean dispute.