Wednesday November 23 Ag News

2012 Nebraska Pork Producers Mentor Applications Being Accepted

The Nebraska Pork Producers Association wants students to be a part of the Pork Mentoring Class of 2012. If students are connected to agriculture and believe in the future of the pork industry, they are encouraged to apply! $500 scholarships are available for college-age students who have an interest in the pork industry – they don’t have to be a pork producer! Students can even earn college credit to help get one step closer to graduating. Applications are due December 5th. Students may apply for this opportunity online at www.nepork.org, or request an application by emailing kyla@nepork.org The NPPA Mentor program is directed under Kyla Wize, NPPA Education Director. Wize stated, “The NPPA Mentor program provides young adults an opportunity to identify future career goals and to evolve into strong agricultural advocates.” The NPPA Mentor program was established in 1999. Over ninety students have completed the program and over $40,000 in scholarships have been awarded. Each year the Mentors participate in activities that encourage personal growth, leadership development, expanded knowledge of the pork industry, and community engagement. A $500 scholarship is awarded upon the completion of the program.



Farmers Tax Guide Now Available
Larry Howard, UNL Extension Educator, Cuming County

Farmers can better understand their 2011 tax returns with help from a guide available through the University of Nebraska-Lincoln Extension. The 2011 Farmers Tax guide has illustrated examples, a sample return and describes available deductions.  Cuming County Extension Educator Larry Howard says the tax guides are in and are free to local producers.  They can be picked up at the UNL Extension office in Cuming County, area tax preparers or any Cuming County bank.

Grazing Stockpiled Grass During Winter
Grass remaining for winter grazing can really help cut feed costs for stock cows.  Grazing winter range or pastures has many benefits.  It can save as much as a dollar a day per cow compared to feeding expensive hay.  It removes old growth so next spring’s pasture is fresher.  And some weeds may be eaten that cattle won’t touch during summer.  All with little damage to your dormant pasture.

But, the way you manage your cattle during winter grazing can have a big effect on its success.  For instance, maybe you have a goal of feeding as little protein supplement as possible while winter grazing.  Then you must make sure your stocking level is light enough so cattle can select just the higher quality plant parts to eat.  Another strategy might be to stretch winter pasture as far as possible.  Then restricting animal access to small areas at a time might be best.  Or, if you use winter range just as a filler when you limit feed corn, corn by-products, or other nutrient dense feeds, then high stocking levels and unrestricted access might be best.

Whatever your strategy, though, consider carefully what kind of nutrition animals are getting from the pasture so you neither underfeed nor overfeed expensive supplements.

Winter grazing is a great opportunity to reduce winter feed costs.  With the right grazing strategy, it can help you meet many of your feeding goals.

Testing and Feeding Tobacco-Brown Hay and Silage
Last summer’s weather caused much hay to be baled too wet or silage chopped too dry.  Hay baled too wet or silage chopped to dry can get excessively hot and cause certain chemical reactions to occur.  These chemical reactions and the heat that produces them will darken your forage and make it smell sweet like caramel.

Livestock often find such hay or silage very palatable.  But, the chemical reaction that caused this heat-damaged forage also makes some of the protein become indigestible.  Unfortunately, tests for crude protein cannot distinguish between regular crude protein and this heat-damaged protein.  As a result, your forage test can mislead you into thinking you have more usable protein in your forage than actually is there.

If your forage test is done using NIR, heat-damaged protein may be one of the analyses reported.  If the heat-damaged protein is high enough, the test also will report an adjusted crude protein that is different from the regular crude protein.  However, the NIR test for heat-damage may not be accurate enough for you if your ration contains a lot of this forage and has little or no extra protein in it for your cattle.

What you need to do when heat-damaged protein is suspected is request from your lab a chemical analysis for heat-damaged protein.  Then use this test to correctly adjust the amount of crude protein your forage actually will provide to your animals.

Forage tests can tell us a lot about the nutrient supplying ability of our forages.  But we need to make sure we conduct the right tests and then use the results wisely.



Nebraska Farm Bureau to Elect New President Dec. 6

Nebraska Farm Bureau delegates will elect a new president for the state's largest agricultural organization at the Farm Bureau annual meeting, set for Dec. 5 and 6 at Kearney's Younes Convention Center.  Keith Olsen of Grant, Farm Bureau president since 2002, is not seeking re-election. Three Farm Bureau leaders are seeking the presidency:
-- Steve Nelson of Axtell, currently first vice president of Nebraska Farm Bureau.
-- Mark McHargue of Central City, currently second vice president of Nebraska Farm Bureau.
-- Larry Hudkins of Malcolm, a former member of the Nebraska Farm Bureau Board of Directors.

Delegates also will elect three members of the Farm Bureau Board of Directors. Sherry Vinton of Whitman, Jason Kvols of Laurel and Andy DeVries of Ogallala are seeking re-election. Other candidates for the presidency or board may be nominated just prior to the election, set for the afternoon of Dec. 6.

The Farm Bureau House of Delegates also will establish policy for the organization on state issues and recommend policy on national issues to the American Farm Bureau, which holds its national meeting in January. Delegate discussion is based on resolutions received from Nebraska's County Farm Bureaus.

At the state level, the delegates will consider whether the state's laws pertaining to commodity checkoffs should be updated. Farmers who grow crops and livestock pay a per-bushel or per-head tax that is used for research, education and promotion of the commodity. Delegates will discuss whether the current checkoff amounts provide enough resources to accomplish the goals of the checkoff programs; the relationship between the checkoff boards and state government; and relationships between checkoff boards and the corresponding grower association, Jay Rempe, Farm Bureau vice president/governmental relations, said Tuesday.

"A few years, there was a suggestion that checkoff funds could be diverted to assist the state budget. The overwhelming view of our members is that the checkoffs should only be used for their intended purposes, so there will be discussions about the level of autonomy for the boards and a 'firewall' to protect the funds."

Conservation easements, particularly those that are perpetual, also are on the delegates' agenda. "There is concern about using public monies, such as from the Environment Trust Fund, to buy easements or land that is then restricted. This increases competition for farmland and may drive up prices," Rempe said. Resolutions from the County Farm Bureaus emphasize the need for landowners to fully understand easements before signing them, he said, and there is general opposition to allowing them to be perpetual.

Other delegate discussion topics include looking for ways to restructure county government to make it more efficient; support for assessing working farmsteads as agricultural land rather than as acreage sites; and support for exempting farmers and their agents from calling Diggers Hotline when they sample soil to a depth of four feet.

National issues before the delegates include discussion of the Farm Bill, which will likely be written in the usual manner because of the Super Committee's failure to offer a budget reduction plan, Rempe said.

"There is a lot of support for crop insurance as the key component of a safety net for farmers. Direct payments will likely be eliminated, so there is concern for capturing some of those savings to fund a better crop insurance program or a risk management program of some type," he said.

Resolutions from County Farm Bureaus also express continued support for the Conservation Reserve Program. Cutting CRP acres has been proposed to aid in deficit reduction and because of concern about having enough land available for crop production because of current short supplies, Rempe said.

Other convention events include Olsen's final address to Farm Bureau members (Dec. 5, 10:30 a.m.); remarks from American Farm Bureau President Bob Stallman (Dec. 5, 11:30 a.m. luncheon); remarks by McDonald's Corporation Executive Debbie Roberts on her company's policies on food production (Dec. 5, 9:15 a.m.); and remarks by Matt Lohr, Virginia commissioner of agriculture and presentation of Farm Bureau's highest honor, the Silver Eagle Award (Dec. 6, 6:30 p.m. banquet).



2011 Backyard Farmer TV ratings Best in Program's History

As "Backyard Farmer" enters its 60th year of production, it has something else to celebrate. Ratings for the popular garden show reached an all-time high this year.

May sweeps reached 23,500 households, which was about a 46 percent increase in audience across the state, said Backyard Farmer Producer Brad Mills. The show was averaging 14,000 households since 2007.

"I think people are getting a lot more serious about growing their own food and they want to know how to do that," Mills said. "We've been concentrating on getting people back to their own backyards and getting the most out of their home gardens."

Mills also attributes the ratings to younger people who are buying homes for the first time and then want answers on how to make their surroundings look better.

"The show offers quick, economical and unbiased answers. We've always been able to fulfill those two priorities -- growing your own food and making your landscape surroundings more pleasant to the eye as well as conservation and reducing pesticide use," he said.

Mills hopes these priorities will take the show another 60 years.

The show also received a bumper crop of emails, letters, samples and phone calls, Mills said.

It also is the most downloaded UNL program, said EdMedia's Mark Hendricks. In addition, the show has made a splash on iTunes U and YouTube, consistently being in the Top 10 of the science category on iTunes and No. 17 overall on iTunes U -- a distribution system for everything from lectures to language sessions, films to labs, audio books to tours and a way to get educational content into the hands of students and others.

The show also receives thousands of hits on its YouTube channel at http://www.youtube.com/user/bucslim.

"It's not just Nebraska anymore, it's going across the country," Mills said.

Mills will continue to offer viewers more infomation on its YouTube channel with fall and winter gardening issues -- from snow blower information to preparing your flower beds for winter.

To watch "Backyard Farmer" live from April through early September tune in Thursdays at 7 p.m. Central Time on NET1. Check your local listings for replay times on NET 2 and NET3.



USDA: Red Meat Production Inches Higher in October

Commercial red meat production for the United States totaled 4.27 billion pounds in October, up slightly from the 4.26 billion pounds produced in October 2010.

Beef production, at 2.22 billion pounds, was 1 percent below the previous year. Cattle slaughter totaled 2.86 million head, down slightly from October 2010. The average live weight was down 9 pounds from the previous year, at 1,289 pounds.

Veal production totaled 10.5 million pounds, 8 percent below October a year ago. Calf slaughter totaled 72,600 head, up 2 percent from October 2010. The average live weight was down 23 pounds from last year, at 252 pounds.

Pork production totaled 2.03 billion pounds, up 2 percent from the previous year. Hog slaughter totaled 9.91 million head, up 2 percent from October 2010. The average live weight was down 1 pound from the previous year, at 275 pounds.

Lamb and mutton production, at 11.7 million pounds, was down 11 percent from October 2010. Sheep slaughter totaled 174,600 head, 14 percent below last year. The average live weight was 134 pounds, up 4 pounds from October a year ago.

January to October 2011 commercial red meat production was 40.8 billion pounds, up 1 percent from 2010. Accumulated beef production was up 1 percent from last year, veal was down 3 percent, pork was up 2 percent from last year, and lamb and mutton production was down 8 percent.

State Production Numbers, October 2011 (million pounds, % of Oct. 2010)
Nebraska ...........: 641.7,  102%      
Iowa ..................:  587.6,  101%      
South Dakota .....:  98.7,  111%



Gasoline Marketers Join Coalition for E85

The Society of Independent Gasoline Marketers of America (SIGMA) has officially joined the Coalition for E85 in the effort to have 85 percent ethanol designated as an alternative fuel under the tax code.

The recently-launched coalition is made up primarily of fuel retailers who are concerned about the future of E85 once the Volumetric Ethanol Excise Tax Credit (VEETC, or blender's credit) expires without renewal at the end of the year. "E85 as an alternative fuel is defined everywhere in the U.S. code, except for the Internal Revenue code," explains tax code specialist Jeff Trinca, who is working with the coalition. It has not been included within the tax code in the past in order to avoid "double dipping" in tax credits because of the existing blender's credit.

With the expiration of the blenders' tax credit at the end of this year, the coalition "would like E85 to be included in the definition of alternative fuels with propane, natural gas and others so there's a level playing field," Trinca said. He noted that the coalition is only looking for a five year bridge to get the infrastructure in to be competitive with gasoline.

Trinca says efforts are underway to get a bill introduced in Congress to address the issue before the end of the year.



Weekly ethanol production data for the week ending 11/18/2011

According to EIA data, ethanol production averaged 917,000 barrels per day (b/d) – or 38.514 million gallons daily.  That is up 1,000 b/d from the previous week.  The 4-week average for ethanol production stood at 915,000 b/d for an annualized rate of 14 billion gallons.

Stocks of ethanol stood at 17.5 million barrels.

Gasoline demand for the week averaged 360.9 million gallons daily.  Expressed as a percentage of daily gasoline demand, daily ethanol production was 10.67%.

On the co-products side, ethanol producers were using 13.904 million bushels of corn to produce ethanol and 103,207 metric tons of livestock feed, 93,114 metric tons of which were distillers grains.  The rest is comprised of corn gluten feed and corn gluten meal.  Additionally, ethanol producers were providing 4.22 million pounds of corn oil daily.



Attend Commodity Classic – Where America’s Farmers Meet with Success
Countdown to Classic – 100 days until Commodity Classic

Corn, soybean, wheat and sorghum growers who attend the 17th Annual Commodity Classic, March 1-3 in Nashville, Tenn., will get the inside scoop on what’s new from the people making it happen at America’s largest farmer-led, farmer-focused convention and trade show.

“Commodity Classic is unlike any other agricultural event,” said Commodity Classic co-chair Martin Barbre. “This is where something as simple as a casual conversation with another grower can lead to ground-breaking and money-making improvements on the farm.”

Growers come to Commodity Classic to learn what will make them an even better farmer. The trade show offers attendees a venue to see and discuss the latest innovations with top industry leaders. The event’s orientation and focus is all about farmers and helping farmers. An atmosphere of openness and peer exchange, educational sessions and candid policy briefings make Commodity Classic a yearly pilgrimage for those seeking to advance in U.S. agriculture.

 Online housing and registration will open soon for this one-of-a-kind, can’t-miss event open to all friends of soybeans, corn, wheat and sorghum.

 Commodity Classic is presented annually by the National Corn Growers Association, American Soybean Association, National Association of Wheat Growers and National Sorghum Producers. The event offers a wide range of learning and networking opportunities for growers in the areas of production, policy, marketing, management and stewardship—as well as showcasing the latest in equipment, technology and innovation. For more information, visit www.CommodityClassic.com.



Expect Higher Milk Prices... But Not For Long

Dr. Bob Cropp says he has some good news and some bad news for the dairy industry going into the holiday season. In this month's Dairy Situation and Outlook report, the professor emeritus with the University of Wisconsin-Extension says the recent spike in dairy product prices will likely result in a slightly bigger milk check for producers of Class III milk this month. Cropp predicts the November Class III price to be higher than the October's $18.03 per hundredweight price. But he doesn't foresee cheese holding their higher values for much longer.

"Cheddar blocks had hit a low of $1.69 per pounds on October 25, but then started a recovery reaching $2.00 per pounds on November 15," Cropp said. "Cheddar barrels were a low of $1.69 per pounds on October 21, but then also started a recovery reaching $2.05 per pound on November 15. The question is whether cheese prices can hold at this higher level? The likely answer is 'no,' with different opinions how far prices will fall."

Cropp said holiday cheese orders are already filled and milk production and milk composition are now higher. He also notes that butter prices could show further weakness, with little change in nonfat dry milk prices.

"The increase in butter production over a year ago has been double-digit since March, up 21-percent in September and 16.6-percent year-to-date," the report stated. "While September 30 butter stocks were 16-percent higher than a year ago, stocks were still 22.6-percent below the five-year average for this date."

Butter exports, which were running well above a year ago, have experienced declines in July through September; while year-to-date exports were still 23-percent higher than a year ago, he said.

Meanwhile, the dairy marketing expert says 2012 will probably not be as profitable as this past year for Wisconsin dairy farmers. He says USDA's November 'Milk Supply and Demand Estimates' forecasts the U.S. all-milk price for 2012 to average $1.55-$2.35 lower than 2011. But he's quick to point out that circumstances can develop changing final milk prices.

"Looking back at December 2010 forecasts for the year 2011, the forecasts were much lower than actual milk prices turned out," Cropp said. "Currently, Class III futures for 2012 are rather flat, averaging about $16.90 cwt.; and Class IV futures average $16.00 cwt.."

He says domestic milk and dairy product sales will continue to be hindered by the weak economy. The level of U.S. dairy exports, while still favorable, is forecasted lower. And the world milk supply is higher, with strong recovery in milk production in Oceania and expected increase in overall production in EU countries, which are the two major exporters competing against the U.S.

And the outlook report says the cost to produce a hundred pounds of milk will remain relatively high this winter, as high corn, soybean meal and hay prices will effect the bottomline. Nationally, October alfalfa hay prices are up 72-percent compared to a year ago, with largest increases in the west and southwest.



CME Ups MF Global Funds Guarantee

CME Group Inc. moved to shake loose more customer cash and other collateral trapped within MF Global Holdings Ltd., increasing its financial guarantee on those funds to $550 million.  MF Global's Oct. 31 bankruptcy filing stunned Wall Street and left thousands of investors, hedge funds, pit traders and other clients scrambling to recover funds housed within the failed brokerage's accounts.

In a bid to hasten the return of customer money, CME Group, operator of the futures exchange, had pledged $250 million earlier this month to the trustee overseeing MF Global's liquidation.  CME on Tuesday said it would increase that guarantee to $550 million. CME said it will grant MF Global's bankruptcy trustee latitude to "make larger interim distributions of cash to customers now, given the monumental task he faces to sort through the considerable data and claims in order to complete the MF Global liquidation."

In the statement, Craig Donohue, CME Group's chief executive, said: "The protection of our customers and the integrity of all futures markets continue to be our two chief concerns, and today we are taking aggressive action to further assist customers and restore confidence to the marketplace."



Deere Completes Record Year With Fourth-Quarter Earnings of $670 Million

Net income attributable to Deere & Company was $669.6 million, or $1.62 per share, for the fourth quarter ended October 31, compared with $457.2 million, or $1.07 per share, for the same period last year.  For fiscal 2011, net income attributable to Deere & Company was $2.800 billion, or $6.63 per share, compared with $1.865 billion, or $4.35 per share, last year.

Worldwide net sales and revenues increased 20 percent, to $8.612 billion, for the fourth quarter and were up 23 percent to $32.013 billion for the full year. Net sales of the equipment operations were $7.903 billion for the quarter and $29.466 billion for full-year 2011, compared with $6.564 billion and $23.573 billion for the corresponding periods last year.

"John Deere has completed another year of exceptional achievement," said Samuel R. Allen, chairman and chief executive officer. "Our success reflects a continued pattern of strong customer response to our innovative lines of equipment coupled with the skillful execution of business plans aimed at expanding our global competitive position."

During the year, Deere introduced a record number of products and announced plans for six new factories, in China, Brazil and India. "John Deere's record performance is a further tribute to our operating model, which stresses rigorous cost management and asset efficiency," Allen stated. "As a result, we are achieving unprecedented financial results and generating healthy levels of cash flow. These dollars are funding growth throughout the world and also are being shared directly with investors in the form of dividends and share repurchases."

Summary of Operations
Net sales of the worldwide equipment operations increased 20 percent for the quarter and 25 percent for the year. Sales included a favorable currency-translation effect of 2 percent for the quarter and 3 percent for the year and price increases of 3 percent for both periods. Equipment net sales in the United States and Canada rose 14 percent for the quarter and 17 percent for the year. Outside the U.S. and Canada, net sales were up 31 percent and 38 percent for the respective periods, with favorable currency-translation effects of 4 percent and 7 percent.

Deere's equipment operations reported operating profit of $955 million for the quarter and $3.839 billion for the year, compared with $716 million and $2.909 billion last year. Results were better for both periods largely due to higher shipment volumes and improved price realization. These factors were partially offset by increased raw-material costs, higher manufacturing-overhead costs related to new products, and higher research and development expenses. In addition, full-year results were impacted by higher selling, administrative and general expenses.

Net income of the company's equipment operations was $552 million for the quarter and $2.329 billion for the year, compared with $357 million and $1.492 billion last year. The same operating factors mentioned above, along with a lower effective tax rate, affected both the quarterly and annual results.