Thursday November 3 Ag News

JOHANNS BILL RESTORES STATE ROLE IN CLEAN AIR STANDARDS

U.S. Sen. Mike Johanns (R-Neb.) today is introducing legislation that would require the Environmental Protection Agency (EPA) to respect longstanding state prerogatives when it comes to enforcing federal Clean Air Act standards. Unless action is taken, states are facing an accelerated timeline to comply with new EPA regulations that could lead to layoffs, tens of millions of dollars in increased utilities costs, and dramatically increased electricity prices for many Americans. The bill introduced today by Johanns would require EPA to give states at least two years to submit their own regulatory plan and prohibits EPA from implementing a federal plan if states have not been given enough time.

"EPA is crafting new rules left and right with little to no regard for their practicality and negative consequences," Johanns said. "Complying with these rules under the current timeline is not feasible and freezing states out of the process is wrong. Our states deserve the chance to develop their own rules under a reasonable timeline to protect jobs and avoid skyrocketing electricity bills, which is exactly what this legislation accomplishes. I've met with many representatives of public power providers in Nebraska, large and small, and their frustration with EPA's unreasonable approach cannot be exaggerated. We all want clean air and a healthy environment, but federal rulemaking cannot occur in a vacuum."

States have long been given the power to develop their own regulatory regimes, with federal intervention occurring only under limited circumstances. EPA in recent months has taken steps to disregard this process by implementing federal emissions rules on a rushed timeline without giving states adequate time to develop their own plans.

Under this legislation, compliance with EPA's Cross-State Air Pollution Rule (CSAPR), which addresses power plant emissions the agency has identified as crossing state lines, would be delayed until states have been given at least two years to develop a state regulatory plan. The EPA rule became final in July 2011 and requires compliance just six months later, by January 2012. The significant changes demanded by this rule make compliance by January virtually impossible.



USMEF Conference Kicks Off in Tucson

The U.S. Meat Export Federation's (USMEF) 35th Anniversary Strategic Planning Conference opened Wednesday in Tucson, Ariz., with a wide range of guest speakers, each of whom offered a unique perspective on the importance of red meat exports.

Dr. Harry Kaiser, a Cornell University economist, presented the findings of his recently completed study on the effectiveness of USMEF’s foreign marketing efforts. “An Economic Analysis of the U.S. Meat Export Federation’s Export Market Development Programs” was commissioned by USMEF to quantify the returns that the U.S. Department of Agriculture’s Foreign Agricultural Service (FAS) and the beef, pork, corn and soybean checkoff programs receive from their investments in USMEF’s export market development programs. The independent study was funded by the USDA and Dr. Kaiser was chosen from several researchers who proposed to do the research.

“Basically what we found is very good news,” Dr. Kaiser told the audience. “The U.S. Meat Export Federation’s beef and pork market development programs were found to have a positive and statistically significant impact on imports of U.S. red meat in all of the eight markets that were analyzed.”

The economic model showed that combined producer and USDA marketing expenditures increased U.S. red meat exports by more than 30 percent per year.

“If we compare the results of this study to the results of 16 published studies for other commodities, the bottom line is that these USMEF programs have had a larger impact on import demand than the majority of similar programs for other commodities.”

Bill Rupp, president of JBS USA’s beef division, also addressed the audience on the importance of exports, driving home the critical role the international markets play in his company’s profitability.

“When you look at some of the products that we export, you see a price volatility in some cases,” Rupp said. “But there’s a constant return over what we could expect if we had to ‘disappear’ these products into a domestic market. So I want to say thanks for the great job USMEF does in helping us promote and position our products in the export markets. Clearly today, we’re not in business without strong international growth.”

John Bellinger, CEO of Food Safety Net and Agri-West International, spoke not only to the importance of exports to the U.S. meat industry, but also to the health of the entire U.S. economy.

“There’s one way for our country to get out of this economic recession,” Bellinger said. “We have to export our way to prosperity. Do you think China became an economic powerhouse by selling to its own people? They exported. They exported their way out of poverty. We’re just trying to export our way out of a little recession – China exported its way out of poverty.”

USMEF Chairman Keith Miller and President and CEO Philip Seng also addressed the opening general session audience, recapping export results in 2011 and discussing the challenges that lie ahead. Market updates were provided by regional directors who represent USMEF in Japan, Mexico, Central America, South America, Europe, Russia and the Middle East.

Thursday’s general session will include a global market review and updates from China, Taiwan, South Korea and the ASEAN region. Committee activity on Thursday will include meetings of the USMEF Exporter Committee, Beef and Allied Industries Committee, Pork and Allied Industries Committee and the Feedgrain and Oilseed Caucus.



NCGA CEO Sees Growing Potential for Ag Exports to China

“Over the past 25 years, we kept predicting China would grow into an important market for U.S. agriculture ‘in a few more years.’ I hadn’t realized, and I’m guessing many growers haven’t realized that in 2010 China became our number one export market,” reported Rick Tolman, chief executive officer for the National Corn Growers Association.

Tolman, who traveled to China with U.S. Grains Council President and CEO Thomas C. Dorr, found dramatic changes compared to 11 years ago when he served as Council's executive director for international operations.

“Now they have become a great export market for us, especially for soybeans, cotton, distiller’s dried grains, and wood,” he noted. “They are taking some corn, too. There needs to be more awareness of their importance among U.S. growers.”

Chinese sources delivered a wide range of messages about China’s long-term outlook as a customer for U.S. corn, Tolman reported: “We heard everything from ‘absolutely not, never’ to ‘yes, and there will be significant growth over the next few years.’”

“In my opinion, the environment is right for U.S. sales to grow further. With economic growth and population growth, China can become a more and more significant market for us,” he concluded.

Changing attitudes on both sides of the Pacific could further benefit the U.S.-China trade relationship, according to Tolman.

“Among the general public, we tend to think about China in terms of a U.S. trade deficit, but in agriculture, the United States has a comparative advantage and our trade balance with China is positive. We have a growing agricultural trade surplus.

“I was thinking that our relationship is most often described in terms of our differences – whether it’s over currency or some other issue – and that’s what makes the headlines. But our differences should pale in comparison with our huge trading relationship,” he said. “We need to focus less on our disputes and more on where we have interests in common and good reasons to work together.”

Tolman also warned of the dangers of linking trade with other issues.

“It is very clear from listening to them that our political leaders on both sides tie trade into politics, and we need to change that culture. Trade ought to be independent of politics – we should have learned that from the grain embargoes in the 1970s or from the recent delays in confirming free trade agreements,” he said.

“We in agriculture have a lot to gain, and we should work on getting over that.” 

Despite World Economy, India Poised for Growth
India’s growth outlook “appears more subdued than last year,” but analysts still expect to see it hover around 8 percent, reported U.S. Grains Council Consultant Amit Sachdev.

The International Monetary Fund now pegs Indian growth at 7.8 percent for 2011/2012, citing challenges from high inflation and higher interest rates, which could dampen demand. The Prime Minister’s Economic Advisory Council, meanwhile, projects growth close to 8 percent.

The Reserve Bank of India recently raised interest rates for the twelfth time in 18 months in an effort to slow inflation and reduce demand, but since borrowing by Indian households is low, consumers have liquidity to absorb the increase. Monthly installment payments on loans represent less than one percent of Indians’ total household income.

Even with a slowdown, India’s growth is likely to outstrip many other nations’ this year. India is now the world’s fourth-largest economy, following the United States, China and Japan, and is about to surpass the Japanese economy in size. In 2010, the Japanese economy was valued at $4.31 trillion, but since then, the tsunami and earthquakes have meant major economic losses. Meanwhile, India’s economy, valued at $4.06 trillion last year, has continued to grow.

In the agricultural sector, India’s government is trying to boost production, including especially the output of oilseeds and pulses, and scientists at the Indian Council of Agricultural Research are concentrating especially on developing crop varieties that require less water.

This year, however, the issue has been excessive precipitation, as monsoon rains were 39 percent above normal in the first week of September. While heavy rains are likely to increase crop plantings, they are also delaying the harvest of mature crops, including cotton, soybeans, onions and corn.



August 2011 & Weekly Ethanol Production 10/28/2011

It's a new month and the middle of the week, so that means a double dose of ethanol production data from the RFA and our friends at the Energy Information Administration.

In August 2011, ethanol production averaged nearly 908,000 barrels per day (b/d).  That is up from 891,000 b/d in July and a year over year increase of 37,000 b/d.  EIA also reported ending stocks of  17.9 million barrels, or 19.2 days of supply based upon RFA calculations of 933,000 b/d of total ethanol demand in August.  Additionally, EIA reported 456,000 gallons of imports versus export demand of 52.3 million gallons.

Weekly ethanol production data for the week ending 10/28/2011
According to EIA data, ethanol production averaged 916,000 barrels per day (b/d) – or 38.472 million gallons daily.  That is up 7,000 b/d from the previous week and the highest weekly average since January.  The 4-week average for ethanol production stood at 898,000 b/d for an annualized rate of 13.77 billion gallons.

Stocks of ethanol stood at 17.2 million barrels.

Gasoline demand for the week averaged 357.76 million gallons daily. 

Expressed as a percentage of daily gasoline demand, daily ethanol production was 10.75%.

On the co-products side, ethanol producers were using 13.889 million bushels of corn to produce ethanol and 103,070 metric tons of livestock feed, 91,979 metric tons of which were distillers grains.  The rest is comprised of corn gluten feed and corn gluten meal.  Additionally, ethanol producers were providing 4.37 million pounds of corn oil daily. 

The co-products calculations in this report reflect an update in assumptions made by the RFA based upon industry research and publicly available data on feed and corn oil production at U.S. ethanol biorefineries.   Specifically, the RFA makes the following assumptions:
1.) industry weighted average ethanol yield of 2.77 gallons/bushel of corn processed;
2.) dry mills represent 89% of current operating capacity;
3.) 35% of operating dry mill capacity is extracting corn oil;
4.) Dry mills extracting corn oil produce 15.75 lbs. distillers grains and 0.55 lbs. corn oil per bushel;
5.) Dry mills not extracting corn oil produce 16.75 lbs. distillers grains per bushel;
6.) Wet mills produce 13.5 lbs. corn gluten feed, 2.5 lbs. corn gluten meal, and 1.3 lbs. corn oil per bushel.



House Ag Subcommittee Holds Hearing on TMDL Implementation Plans and Impacts on Farmers
(from the National Corn Growers Association)

Today, the House Agriculture Subcommittee on Conservation, Energy and Forestry held a hearing on the EPA's Total Maximum Daily Load (TMDL) for the Chesapeake Bay watershed. TMDLs are a common pollution control mechanism established by the Clean Water Act. The TMDL for the Chesapeake Bay watershed sets a firm limit on the amount of nitrogen, phosphorus and sediment that can be discharged in six states and the District of Colombia. Today's hearing focused on state Watershed Implementation Plans (WIPs) and their impacts on rural communities.

EPA Region 3 Administrator Shawn Garvin testified on behalf of the Agency, and he was asked tough questions about the validity of the Chesapeake Bay computer model, which forms the basis for the TMDL. Members of the Subcommittee expressed concerns that EPA's flawed model does not take into account many of the voluntary best management practices that are currently undertaken by farmers in the watershed. In addition, Congressman Bob Goodlatte (R-VA) stated that the cost of implementing the TMDL and WIPs could cost into the billions, yet a cost-benefit analysis has never been conducted for the regulation.

It was also noted by subcommittee members that this same regulatory approach might be considered for other watersheds across the country, including the Mississippi River Basin and Great Lakes, which is why the precedent causes great concern for all of American agriculture.

NCGA and other agricultural allies filed a lawsuit in federal court in Pennsylvania in January challenging the legality of the Chesapeake Bay TMDL, including the scientific validity of the computer modeling. A decision in the case is not expected until next year.



ISU's Vet Medicine and Human Sciences Fully Accredited

The Vice President for Research and Economic Development at Iowa State University announced that the university's College and Sciences received full accreditation of their animal programs and facilities.

The organization granting the accreditation is the Association for the Assessment and Accreditation of Laboratory Animal Care (AAALAC) International. The AAALAC evaluates organizations that utilize animals in research, teaching or testing to ensure and promote animal well-being.

Iowa State's program underwent an extensive internal self-study of all aspects of animal care and use, including policies, animal housing and management, veterinary care and facilities. External evaluators then conducted an on-site assessment.

Mary Sauer, Iowa State's Attending Veterinarian and representative on the Institutional Animal Care and Use Committee, coordinated the self-study and assessment process at Iowa State.

"This accreditation shows that ISU is committed to continuous improvement in our animal care and use program," she said. "AAALAC complemented us on the strong administrative support for our program as well as our active and engaged animal care and use program."

The process involved the Office of the Vice President for Research and Economic Development, Lab Animal Resources, the Office for Responsible Research, the Department of Environmental Health and Safety, and the College of Veterinary Medicine and the College Human Sciences, as well as Iowa State's Institutional Animal Care and Use Committee.

"This was made possible by the work of a large team of ISU faculty and staff working together," said Sauer.

Ronald Morgan, director of Iowa State's Laboratory Animal Resources, prepared facilities for the AAALAC evaluation and responded to inquiries. He says this is a major accomplishment for Iowa State.

"The report was very complimentary on the upkeep of our facilities," said Morgan.

After an institution earns accreditation, it must be re-evaluated every three years in order to maintain its accredited status.

Lisa K. Nolan, the Dr. Stephen G. Juelsgaard Dean of the College Veterinary Medicine, congratulated the Iowa State faculty and staff whose efforts made the accreditation possible.

"AAALAC accreditation is an important step toward a better future for Iowa State," she said.



Eighteen Iowa College Students Named To Iowa Corn Collegiate Advisory Team

Eighteen Iowa college students have been named to the second Iowa Corn Collegiate Advisory Team.

The Iowa Corn Collegiate Advisory Team (CAT) is sponsored by the Iowa Corn Growers Association and the Iowa Corn Promotion Board.  The Iowa Corn CAT assists the Iowa Corn Growers Association (ICGA) and the Iowa Corn Promotion Board (ICPB) in developing programs that target and enhance Iowa Corn’s relationship with students who are pursuing careers in agricultural production and agriculture business and industries.

“The newly named Iowa Corn Collegiate Advisory Team is made up of excellent students from across Iowa who are passionate about the future of agriculture in our state,” said Bob Hemesath, an ICGA director and chair of the committee overseeing the program.  “We are excited to work with this team on ideas and programs that will benefit future leaders of the agriculture industry.”

Participants of the newly selected team are:  Adam Bierbaum, Iowa State University; Kasey Deaver, Des Moines Area Community College; Brent Drey, Iowa State University; Kyle Fischer, Iowa State University; Dalton Frana, Ellsworth Community College; Clayton Hester, Kirkwood Community College; Cale Juergensen, Iowa Lakes Community College; Jordan Lyon, Muscatine Community College; Tyler Martens, Southwest Community College; Joe Mickelson, Graceland University; Evan Sieck, Iowa State University; Shaniel Smith, Indian Hills Community College; Chanel Vorrath, Iowa Western Community College; and Tyler Woodward, Dordt College.

Also chosen to return to the CAT from the inaugural team are: Alyssa Foster, Iowa State University (transferred from Kirkwood Community College); Andrew Lauver, Iowa State University; Logan Lyon, Iowa State University (transferred from Ellsworth Community College); and Steve Roose, Iowa Central Community College.



USDA Farm Service Agency Urges Farmers and Ranchers to Vote in County Committee Elections Beginning Friday, Nov. 4

The U.S. Department of Agriculture’s (USDA) Farm Service Agency (FSA) Administrator Bruce Nelson announced today that the 2011 FSA county committee elections will begin tomorrow, Nov. 4, with USDA mailing ballots to eligible voters. The deadline to return the ballots to local FSA offices is Dec. 5, 2011.

“The role and input of our county committee members is more vital than ever at a time when our country faces important choices regarding the funding and operation of our government,” said Nelson. “New county committee members provide input and make important decisions on the local administration of disaster and conservation programs. With better participation in recent years, we have also seen promising increases in the number of women and minority candidates, helping to better represent the richness of American agriculture. ”

County committee members are an important component of the operations of FSA and provide a link between the agricultural community and USDA. Farmers and ranchers elected to county committees help deliver FSA programs at the local level, applying their knowledge and judgment to make decisions on commodity price support programs; conservation programs; incentive indemnity and disaster programs for some commodities; emergency programs and eligibility. FSA committees operate within official regulations designed to carry out federal laws.

To be an eligible voter, farmers and ranchers must participate or cooperate in an FSA program. A person who is not of legal voting age, but supervises and conducts the farming operations of an entire farm may also be eligible to vote. Agricultural producers in each county submitted candidate nominations during the nomination period, which ended on Aug. 1.

Eligible voters who do not receive ballots in the coming week can obtain ballots from their local USDA Service Center. Dec. 5, 2011, is the last day for voters to submit ballots in person to local USDA Service Centers. Ballots returned by mail must also be postmarked no later than Dec. 5. Newly elected committee members and their alternates will take office Jan. 1, 2012.

Close to 7,700 FSA county committee members serve in the 2,244 FSA offices nationwide. Each committee consists of three to 11 members who serve three-year terms. Approximately one-third of county committee seats are up for election each year. More information on county committees, such as the new 2011 fact sheet and brochures, can be found on the FSA website at http://www.fsa.usda.gov/electionsor at a local USDA Service Center.



SOYBEAN FARMERS GAIN WEED MANAGEMENT OPTIONS, INCENTIVES WITH 2012 ROUNDUP READY PLUS® WEED MANAGEMENT SOLUTIONS PLATFORM

Soybean farmers in the Plains, Midwest and Northeast regions will have more choices for managing weeds and earning financial incentives under the 2012 Roundup Ready PLUS® Weed Management Solutions platform, Monsanto Company announced today. Valent’s Cobra and Phoenix herbicides will provide additional post-emergence weed control and each can earn farmers $3/acre.

The Roundup Ready PLUS platform serves as a resource for recommendations on weed management in Roundup Ready crops backed by third-party endorsements, and offers incentives to farmers for using multiple modes of action in their weed control systems. Soybean farmers can receive up to $10 per acre in incentives under the 2012 platform. Corn farmers are eligible for separate incentives.

“Roundup Ready PLUS continues to improve based on academic recommendations and farmer experience,” said Chris Reat, Roundup Marketing Manager. “This season, we’re adding more choices and increasing the total dollar amount per acre a farmer can receive. Most importantly, Roundup Ready PLUS continues to represent a sustainable, effective and economical weed control strategy supported by many industry academics.”

In addition to Valent, the Roundup Ready PLUS platform partners include Syngenta AG, FMC Corporation, Makhteshim Agan of North America, Inc. (MANA), and AMVAC Chemical Corporation. Each of the industry partners supply important products to the Roundup Ready PLUS platform including both pre- and post-emergence herbicides. To see detailed information about recommendations and incentives included in the Roundup Ready PLUS Weed Management Platform, go to www.RoundupReadyPLUS.com.



Argentina OKs GM Corn Strain

Swiss agroscience group Syngenta AG has received approval from Argentine authorities for a new strain of genetically modified corn it will start to sell in the South American country for the 2012-13 season, the company said in a statement Thursday.  Argentina is the world's second-largest corn exporter behind the U.S. Syngenta has already launched the corn in Brazil, the world's third largest corn exporter.  The new corn strain combines the Bt11, MIR162 and GA21 traits which make the corn resistant to a host of boring insects and the herbicide glyphosate, the company said.  Argentina is a big backer of genetic modification technology in crops, with the vast bulk of its grain output based on transgenic seed varieties.