Tuesday November 8 Ag News

Landlord/Tenant Cash Lease Workshops

Cash Rental rates for farmland has nearly doubled in the past 6 years.  Volatility in the grain markets is wilder than ever.  Landlords want to be treated fairly, yet want to keep their current tenant.  Tenants are afraid of losing their rent; yet don’t want to be saddled with rent payments that may not be profitable.

These and other land lease issues will be discussed at the Landlord/Tenant Cash lease workshops being held State-Wide in November and December of 2011.  The main purpose of these workshops is to help with establishing and maintaining positive farm leasing relationships.

In this area, the meeting will be at the Nielsen Community Center in West Point, NE.  Call the UNL Extension Office in Cuming County at 402/372-6006 to reserve your space for the meeting in West Point.  All of the workshops are being sponsored by the Nebraska Soybean Board.  They begin with the registration at 5:00 and conclude at 9:00 p.m. at each location.  A meal and handouts are provided.  Participation is limited; to register contact the local Extension Office hosting the workshop.  The workshops are free, but you need to register to reserve your spot.

Other sites:  November
14 – Syracuse-Syracuse National Bank – call Johnson County Extension; 402-335-3669
15 – Wilbur-Sokol Hall – call Saline County Extension; 402-821-2151
28 – Broken Bow-Country Club – call Custer County Extension; 308-872-6831

December
6 – Hastings-Adams County Fairgrounds – call Adams County Extension; 402-461-7209
7 – Central City-Community Room – call Merrick County Extension; 308-946-3843
12 – Fremont-Extension Office – call Dodge County Extension; 402-727-2775
13 – West Point-Nielsen Community Center – call Cuming County Extension; 402-372-6006
14 – Neligh-Imperial Steak House - call Antelope County Extension; 402-887-5414

Topics for discussion include: 1) Expectations from the lease, including goal setting for the rental property; 2) Lease communication, determining appropriate information sharing for both the tenant and landlord; 3) Relatives – tips for farm leases that include relatives; 4) Irrigation System questions, as they pertain to setting lease rates; 5) Alternative cash lease arrangements, flexible provision considerations for your situation and 6) Other topics like grain bin rental will be covered as time allows.

Allan Vyhnalek, Tim Lemmons and Jessica Jones, UNL Extension Educations, will present on these topics and provide common sense tips during the presentation.  It is very helpful if both the tenant and landlord can attend together.

Putting together the right lease isn’t about what is being discussed at the coffee shop, or what a University survey of cash lease rates says; it is about what fits both the landlord and tenant for their circumstance and situation.  Attending this presentation will provide a set of ideas to work from as those specifics are discussed.

For more information or assistance, please contact Allan Vyhnalek, Extension Educator, University of Nebraska-Lincoln, Extension Office in Platte County.  Phone: 402/563-4901.




Bioheat: The Evolution of Oilheat Advertising campaign blankets New York City

Residents who use oilheat to heat their homes have the power to change - without changing a thing. They can choose Bioheat®, a home heating fuel made with biodiesel, a renewable, cleaner-burning fuel that supports American jobs.

That's the message of a new Bioheat advertising campaign underway in New York City that aims to empower oilheat customers who want a better, cleaner fuel.

Starting Oct. 24, New York City buses and the subway system will be covered with Bioheat ads. Radio commercials are already airing on six highly rated CBS stations.

"Choose the cleaner, renewable home heat without changing equipment. Bioheat. It's the evolution of oilheat," says one version of the radio commercial.

Bioheat is made by combining oilheat with biodiesel, a renewable fuel made from sustainable resources such as soybean oil, recycled grease and other fats and oils. Biodiesel is America's advanced biofuel. To be called Bioheat, the fuel must contain at least 2 percent biodiesel. It is cleaner burning, cost-competitive with oilheat, and does not require modifications to the oilheat system.

“A few years ago we reviewed research that Nebraska farmers wanted the benefits of biodiesel but weren’t aware it was an option for their farming operations.  The Nebraska Soybean Board (NSB) ran an ad campaign to drive farmers to ask their fuel supplier for biodiesel, and the result moved the needle to greater biodiesel usage,” said Greg Anderson, Nebraska soybean farmer and Governing Board member of the National Biodiesel Board.  “We seek to do the same in New York City, to promote biodiesel made from soy.”
The ads direct consumers to the Bioheat website, bioheatonline.com, which has been revamped in conjunction with the campaign to be more user friendly to consumers and oilheat dealers alike. Facebook users can also "join the evolution" on the new Bioheat Facebook page.

"This campaign is a critical step in empowering consumers to use a truly renewable product, contribute to energy security, and support American jobs," said John Maniscalco, CEO of the New York Oil Heating Association.

An early proponent of Bioheat, Maniscalco was instrumental in passing an air quality bill that ensures Bioheat is used within the city for heating homes and buildings. Starting in October 2012, all heating oil sold within New York City will contain at least 2 percent biodiesel.

“Farmer-leaders of the soybean checkoff have targeted New York City because it is a trendsetter and a model for market development and expansion.  There is tremendous potential for growth as other cities and states in the northeast see the advantages of bioheat vs. conventional heating oil,” Anderson stated.

The effort is Bioheat's largest advertising campaign to date, and is funded by the National Biodiesel Board and the Nebraska Soybean Board. The NBB is in the midst of another advertising campaign - the national Advanced Biofuel Initiative, which includes television commercials on network news shows.

Anderson concluded that, “Fuel distributors, fuel marketers, and biodiesel manufacturers from New York City have told us that biodiesel made from soy is their preference and they want our product.  This is the largest marketing opportunity for soybean oil that I have ever seen, made possible by the farmer-driven soybean checkoff.  This new market will give Nebraska farmers greater profit opportunities in the coming years.”



Nebraska Wind Power 2011 Conference Early Registration Deadline Extended

The Nebraska Wind Working Group is pushing back its early registration deadline for the Nebraska Wind Power 2011 Conference at the Younes Conference Center in Kearney from November 7th to Friday, November 11th.  The conference dates are November 15-16.  “We believe the registration problems have been solved, but if anyone has registration problems or questions we urge them to call us at 402-476-8815,” said John Hansen Nebraska Farmers Union President and Nebraska Wind Working Group Co-Chair.  “We thank the Nebraska Energy Office for their ‘all hands on deck’ effort to get the registration problems solved as soon as possible.”  

Last week the Nebraska Energy Office website used for registration experienced some technical difficulties as it was moved to a new site, so it has become necessary to extend the deadline.  The discounted pre registration rates are $60 per person and $30 per student.  After November 11th online registrations and at the door the fees will be $75 per person and $45 for students.  Registration fees include meals.

Student scholarships are still available.  For scholarship information, call Nebraska Farmers Union at 402-476-8815.

This year’s conference will include three separate tracks, 30 sessions, 60 speakers making 89 presentations, and over 40 commercial exhibitors and sponsors.

The keynote speaker for Tuesday’s luncheon is James J. Hoecker, Past Chairman of the Federal Energy Regulatory Commission from 1997 to 2001.  During that time he was responsible for instituting regional transmission organizations to administer the wholesale electric power system and streamlining the regulatory system.  He is currently Senior Counsel and Energy Strategist for the Husch Blackwell lawfirm.  

Wednesday’s keynote speaker is Nicholas (Nick) Brown, President and Chief Executive Officer of the Southwest Power Pool, Inc.  Since Nebraska is now aligned with the Southwest Power Pool, their regional transmission planning and development directly impacts Nebraska’s state planning and development.  State transmission development directly impacts the future development of Nebraska’s wind energy resources.

To view a complete listing of speakers and sessions visit the Nebraska Energy Office Website at:  http://neo.ne.gov/renew/wind-working-group/2011conference/agenda.htm.          

For Registration:  http://neo.ne.gov/renew/wind-working-group/2011conference/register.htm.

For Conference information:  http://neo.ne.gov/renew/wind-working-group/2011conference/2011announce.htm.



Iowa Farm Bureau Supports State Road Funding Recommendation

With rural roads making up nearly 90,000 miles of the state’s 114,000-mile road system, the Iowa Farm Bureau Federation (IFBF) applauds the Governor’s Transportation 2020 Citizen Advisory Commission recommendation for an additional 8 to 10 cents per gallon fuel tax.           

“Our roads and bridges have been severely impacted over the years by flooding and neglect, negatively impacting all of Iowa, but especially our rural communities, businesses and farms. Our members believe it’s imperative to repair the roads and bridges to help rural Iowa thrive,” said Craig Lang, IFBF president. “We believe that an increase in the fuel tax is the fairest way to fund those repairs because it charges people who actually use the roads whether they live in Iowa or are from out of state.”

Lang notes that IFBF delegates in 2008 passed policy calling for the fuel tax increase to repair the state’s roads and bridges.

The tax increase recommendation was made to the Iowa Department of Transportation (IDOT) this week after several listening sessions around the state. The recommendations will be submitted to the Iowa Legislature by the IDOT by the end of the year.  The IDOT reports that Iowa needs an additional $215 million per year to meet critical roadway needs and the recommended increase will generate $184 million to $230 million per year.              



USDA to Release Crop Report on Schedule

The U.S. Department of Agriculture will release a monthly crop report as scheduled on Wednesday, despite a brokerage's request to delay the release due to MF Global Holding Ltd.'s bankruptcy.  Commodities brokerage R.J. O'Brien had sent a letter to the agency earlier Monday asking the monthly report be delayed until Nov. 14 to deal with fallout from MF Global's bankruptcy. MF Global filed for bankruptcy last week, and many of its customers are having their accounts transferred to R.J. O'Brien.

R.J. O'Brien had said the extra time was needed as traders seek to transfer accounts and recover money from MF Global "They need more time to properly fund accounts that have that have been assigned to new [futures commission merchants]," said Rich Feltes, senior vice president of research for R.J. O'Brien.  A CME Group (CME) spokesman said the exchange has not asked the USDA to delay Wednesday's report.

The monthly USDA reports update supply and demand forecasts for a variety of agricultural commodities, and often cause significant price swings. The USDA said Monday afternoon it would not delay the report.  "USDA will release Wednesday's reports as scheduled," an agency spokesman said. 

Delaying the report would have been a rare step for the USDA. CME floor traders said they could not recall a delay in recent memory, aside from the Sept. 11 terrorist attacks, although R.J. O'Brien said the report has been cancelled in the past due to blizzards in the Washington, D.C., area.



UAN32 Higher, Other Fertilizer Prices Remain Calm

Retail fertilizer prices tracked by DTN for the first week of November 2011 continue to show very little price movement -- with one exception.  For the first time in months, UAN32 has begun to show some strength. The liquid nitrogen is up 10% compared to the first week of October. The average retail price of the liquid nitrogen is set at $503 per ton, above the $500/ton level for the first time since the first week of November 2008.

Prices for six of the remaining seven major fertilizers were higher compared to a month earlier, but none of the fertilizer prices rose significantly. MAP had an average price of $745/ton, potash $660/ton, urea $621/ton, 10-34-0 $820/ton, anhydrous $799/ton, and UAN28 $408/ton.

One fertilizer was slightly lower compared to one month earlier. DAP had an average price of $710/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.68/lb.N, anhydrous $0.49/lb.N, UAN28 $0.73/lb.N and UAN32 $0.79/lb.N.

Seven of the eight major fertilizers continue to show double-digit increases in price compared to one year earlier. Leading the way higher is 10-34-0. The starter fertilizer has skyrocketed early this year but has fallen back some in recent months and is now 60% higher compared to the first week of November 2010.  Urea has jumped 36%, UAN32 35% and potash 30% from a year ago. UAN28 is 25% higher and anhydrous has climbed 17% compared to year earlier.  Gains for the two phosphorus fertilizers continue to bring up the rear. MAP is 11% more expensive while DAP is 9% higher compared to November of 2010.



The Grand Ole Opry Sets the Stage for Commodity Classic Attendees

An exclusive performance at the Grand Ole Opry awaits those attending the Evening of Entertainment at the 2012 Commodity Classic, March 3 in Nashville, Tennessee. Commodity Classic is the nation's largest farmer-led, farmer-focused conference and trade show, presented annually by the National Corn Growers Association, American Soybean Association, National Association of Wheat Growers and National Sorghum Producers.

“The Grand Ole Opry has launched country music careers and hosted entertainment icons,” said Commodity Classic co-chair Jeff Sollars. “This year Commodity Classic attendees are lucky to have the chance to visit the place that led the way for Nashville to become Music City.”

“The Opry’s rich legacy of showcasing legendary and rising talent is testament to the level of top entertainment attendees can look forward to experiencing,” said Commodity Classic co-chair Martin Barbre. “Unforgettable moments have happened on this most famous of country music stages, and you won’t want to risk missing this one.”

Since its humble beginning as a simple radio broadcast in 1925, the Grand Ole Opry has featured a mix of country legends and the contemporary chart-toppers. Every year, hundreds of thousands of people make pilgrimages to Nashville to see the show live. Millions more tune in to Opry broadcasts on television, the radio and the Internet.  The Evening of Entertainment is generously sponsored by Monsanto.

Commodity Classic offers a wide range of learning and networking opportunities for growers and the agricultural industry in the areas of production, policy, marketing, management and stewardship, while providing state-of-the-art exhibits of the latest in equipment, technology and innovation. For more information, visit www.CommodityClassic.com.



CHS Opens Office in Korea

CHS Inc., the nation's leading cooperative, today announced it has opened an office in Seoul, South Korea, intended to strengthen business with that nation's growing customer base.

"Korea is an important, strategic demand base for corn, soybeans, wheat and distillers dried grains with solubles (DDGS)," says Brian Schouvieller, CHS vice president of international business. "CHS has done business in Korea for many years. With this office, Korean customers will further gain acceptance of our farmer-owned business model. We plan to build on that base to serve more Korean customers and expand this market for our member-owners."

Charles Kim, who will manage the CHS Korea office, will be responsible for further building customer relationships and risk management. Prior to joining CHS, Kim was general manager and president of Cargill Korea Limited and also held an oilseed processing merchandising and risk management position for Cargill in the United States.

CHS growth in Asia-Pacific markets like Korea is a key component to adding volume and market access for long-term stakeholder value. "Expanding our global capabilities and footprint in agriculture and energy commodities is one of the company's strategic aspirations," Schouvieller said.

CHS also has international marketing offices in Argentina, Brazil, Bulgaria, Canada, China, Hong Kong, Hungary, Jordan, Romania, Russia, Serbia, Spain, Switzerland and Ukraine.



CoBank Reports Higher Quarterly Earnings

The Denver-based CoBank, which is a cooperative bank serving agribusinesses and rural infrastructure providers throughout the United States, announced financial results for the third quarter of 2011.  Quarterly net income rose 29 percent to $169.9 million, compared with $132.0 million in the third quarter of 2010. Net interest income for the quarter was $252.0 million, compared with $226.3 million a year ago. Average loan volume for the third quarter was $47.6 billion, compared to $44.5 billion for the same period in 2010.

For the first nine months of 2011, net income increased 25 percent to $562.7 million, compared to $451.0 million during the same period in 2010.  Net interest income increased 23 percent to $829.7 million, from $674.9 million in the prior-year period.

Total loan volume for the bank at September 30, 2011 was $45.0 billion.

Growth in the bank's agribusiness portfolio was the primary driver of stronger financial performance during the quarter, as has been the case throughout the year.  During most of 2011, prices for corn, wheat, soybeans and other agricultural commodities have been higher than they were in 2010, leading to increased borrowing from cooperatives that finance their inventories and receivables.



Pioneer Hi-Bred Introduces 33 New Soybean Products for 2012

Pioneer Hi-Bred, a DuPont business, has added 33 new soybean products to its lineup for 2012 to provide growers improved traits and yield-boosting qualities.  "Pioneer soybean breeders focus on delivering strong agronomic traits paired with top-end yield potential," says Don Schafer, Pioneer senior marketing manager for soybeans. "Pioneer continues to deliver products that meet growers' needs on a field-by-field basis, targeting the right product for the right acre."

New Pioneer® brand soybean products range from Group 00 through mid-Group V. New varieties with resistance to soybean cyst nematode (SCN) and brown stem rot lead the soybean product lineup for 2012. Also in the lineup are a non-glyphosate resistance variety and four PlenishTM high oleic soybean varieties.

Key products in this year's lineup include the following:
-    900Y61 (RR) is a new leader well-suited for the northern Red River Valley of Minnesota and North Dakota, and into Manitoba, Canada. It provides Phytophthora resistance with the Rps1c gene, along with outstanding iron deficiency chlorosis and moderate white mold protection. Additionally, it has outstanding harvest standability.
-    92Y75 (RR) is a high-performance product for Minnesota, North Dakota and South Dakota, with resistance to SCN and Phytophthora. This product also provides good tolerance to sudden death syndrome and brown stem rot.
-    93Y15 (RR), an early Group III product, has resistance to SCN, Phytophthora root rot and frogeye leaf spot. Additionally, this product displays solid tolerance to brown stem rot.
-    94Y50 (RR) is a mid-Group IV maturity leader with exceptional field emergence and harvest standability across a wide range of soils including drought-prone. It features SCN resistance and favorable Phytophthora field tolerance.
-    95Y10 (RR), a new leader in early Group V, displays very good sudden death syndrome tolerance plus excellent field emergence and harvest standability. It also provides SCN resistance.

Through targeted contract opportunities, Pioneer offers growers in Indiana, Ohio and Michigan four new PlenishTM high oleic soybean varieties: 92Y54 (RR), 92Y61 (RR), 93Y23 (RR) and 93Y30 (RR). These Y Series soybeans feature strong agronomic traits and high yield potential for growers. "At Pioneer, we consistently deliver soybean products with traits growers want and need," Schafer says.



Deere & Company Announces Additional Investments in Russia

Deere & Company announced plans to invest approximately $32 million to expand its production capacity in Orenburg, Russia. Deere has purchased and will renovate a factory in the city and move existing operations in Orenburg to the new, larger facility.

"We believe Russia will continue benefiting from demographic and macroeconomic trends that require increased food production from global agriculture," said Mark von Pentz, president of John Deere's Agricultural & Turf Division. "Russia has the agronomic potential to become a pan-Eurasian breadbasket."

The investment announced today will increase the available manufacturing space for John Deere in Orenburg by 600 percent, resulting in additional production processes being localized and an expanded product offering from four current models to fifteen models of seeding, tillage, and application equipment.

"Orenburg is an ideal location because of its proximity to customers who do small-grain farming," said Eric Hansotia, vice president of John Deere's Global Crop Care Business. "In addition, Orenburg provides excellent access to skilled workers and a strong educational system."

Deere assembles seeding equipment in the current Orenburg facility. The expanded operation has been supported by the local and regional governments in Orenburg as a means to continue agricultural and economic development in the region.

Deere's direct investment in Orenburg will result in placement of fabrication, paint, and assembly operations. Including the $32 million of Deere's capital investments, officials said the project represents investments of approximately $50 million in total for the region when including improvements in the local supply base and other costs.

"By expanding manufacturing in Russia, John Deere strengthens our support for dealers and customers and our focus on the important markets in Russia and the CIS," von Pentz added.

Earlier this year, Deere announced that it would double the manufacturing space at its Domodedovo production facility near Moscow and establish its own leasing company in Russia for the sale of agriculture, construction and forestry machinery.