Thursday December 15 Ag News

Crop Production Clinics Offered at Nine Locations across the State in 2012

Crop producers and agribusiness professionals will learn how to improve their profitability and manage challenging new pest issues during the 2012 University of Nebraska-Lincoln Extension Crop Production Clinics.

The clinics will be offered at nine locations across Nebraska in January 2012. They will feature presentations from UNL Extension specialists and educators on soil fertility, soil water and irrigation management, crop production, ag business management and policy, pesticide safety, and disease, insect and weed pest management.

The clinics will be the primary venue for commercial and non-commercial pesticide applicators to renew their licenses in the categories of Ag Plant, Regulatory and Demonstrations/Research. Private pesticide applicator can be recertified by attending the clinics.

Certified Crop Advisors can earn continuing education units in the Integrated Pest Management (six CEU), Soil and Water (two CEU), Nutrient Management (one CEU) and Crop Production (three CEU). Attendees can earn a maximum of six CEU at a location.

For more information, including program topics tailored to meet the needs of cropping systems in different parts of the state, visit the Web at http://cpc.unl.edu/, contact a local UNL Extension office or call 402-472-2811 or 402-472-1632.

Registration is available online by visiting the website or is available at the door starting at 8 a.m. before each clinic, which start at 9 a.m. Cost is $60 for those re-certifying as a commercial, non-commercial or private applicator or $50 for those not re-certifying. The fee includes a noon meal, the 2012 Guide for Weed Management in Nebraska and the 2012 Crop Production Clinic Proceedings.

Dates and locations for the 2012 Crop Production Clinics are as follows:
Jan. 4, Classic's, Country Club in Beatrice
Jan. 5, The Auditorium in York
Jan. 6, Younes Conference Center in Kearney
Jan. 10, Adam's County Fairgrounds in Hastings
Jan. 11, West Central Research and Extension Center at North Platte
Jan. 12, Gering Civic Center in Gering
Jan. 17, Community Center in Ainsworth
Jan. 18, Lifelong Learning Center at the Northeast Research and Extension Center in Norfolk
Jan. 19, Midland University Event Center in Fremont.



Iowa Farmland Value Reaches Historic $6,708 Average

Average Iowa farmland value is estimated to be $6,708 per acre, an increase of 32.5 percent from 2010, according to results of the Iowa Land Value Survey conducted in November. This is the highest percentage increase ever recorded by the Iowa State University annual survey. The increase matches results of other recent surveys of Iowa farmland value -- the Chicago Federal Reserve Bank's estimated 31 percent increase in Iowa land values and the Iowa Chapter of the Realtors Land Institute's 12.9 percent increase estimated for six months of 2011. The 2011 values are historical peaks.

"The 2011 land value survey covers one of the most remarkable years in Iowa land value history," said Mike Duffy, Iowa State University economics professor and extension farm management economist who conducts the survey. "This is the highest percentage increase recorded by the survey, and the average land value of $6,708 per acre, when adjusted for inflation, is at an all-time high." The previous inflation adjusted high was in 1979.

Scott County, with an estimated $9,223 average value for all farmland, saw the highest percentage increase and highest increase in value, 37.7 percent and $2,524 respectively, of the 99 Iowa counties. However, O'Brien County farmland estimates of $9,513 were the highest average county values recorded by the Iowa Land Value Survey. The Northwest Crop Reporting District, which includes O'Brien County, reported the highest land values at $8,338, an increase of $1,983 (31.2 percent) from 2010.

"This rate of increase in 2011 has led to concerns that farmland may be the next speculative bubble," said Duffy. "Some people feel farmers are setting themselves up for a fall similar to the 1980s. Without a doubt, it's an interesting time and something to watch, but it isn't a time to panic."

Duffy said that examining some of the causes for the current increase in farmland values and the reactions is helpful in assessing the situation. Farmland values are highly correlated with gross farm income. As gross farm income increases, so will land values. In 2005, corn prices averaged $1.94 per bushel in Iowa. The preliminary estimated price for November 2011 is $6.05. Soybean prices changed from $5.54 to $11.40 over the same period.

There has been considerable variation in commodity prices over the past few years, but net farm income has increased substantially and is projected to increase even more for 2011. The Iowa State economist goes on to say, this increase in income has been the primary cause for the increase in farmland values, but not the only one.

"There are other causes for the increase," Duffy said. "Interest rates are at the lowest level in recent memory. Farmland purchased by investors went from 18 percent in 1989 to 39 percent of purchases in 2005, but investor purchases decreased this year to 22 percent."

Duffy pointed out another factor that should be considered, the relatively dismal performance of the stock market -- people want to buy farmland or are not selling it because they don't know where else to put their money. The increase in farm income, the changes in investor demand and the changes in investment alternatives have all led to a volatile market. One area where the volatility is revealed is in the number of sales. Land value survey respondents have shown considerable variation over the past few years when queried about the number of sales. Sales decreased considerably in 2009. They improved somewhat in 2010 and based on the results reported in 2011, most people are seeing more sales or at least similar sales in 2011 relative to 2010.

One of the differences is in the use of auctions; respondents noted what appears to be a rapid increase in the use of this method of sale. Preliminary analysis of 2011 sales data shows an increase in price by using an auction. As one respondent said, economics may get the person to the auction but emotion often leads to the purchase.



S.D. Cattlemen Comment on Animal Disease Traceability

The South Dakota Cattlemen's Association recently submitted comments on the Animal Disease Traceability rule proposed by USDA's Animal and Plant Health Inspection Service (APHIS). As proposed, the "Traceability for Livestock Moving Interstate" rule would require cattle crossing state lines to be officially identified and accompanied by appropriate documentation, such as a certificate of veterinary inspection or shipper's agreement.

SDCA policy advocates mandatory identification of breeding cattle to help mitigate the economic impact of a potential outbreak of a highly contagious cattle disease. However, the organization's comments specifically request the rule be revised to exempt feeder cattle, defined in the rule as cattle less than 18 months of age. Instead, SDCA urges APHIS to address feeder cattle in a separate rule after successful implementation of traceability for older cattle. If an outright exemption is not considered, SDCA proposed APHIS increase the age limit from 18 months to 24 months of age. SDCA also urged APHIS to incorporate existing individual identification tools into the traceability program.

SDCA Immediate Past President, Bill Slovek, stated in his comments, "Our industry currently utilizes individual animal identification programs for age and source verification programs, grid marketing programs, and other methods where individual animals are tracked through the production chain so as to enhance genetic improvement decision-making. These existing programs should be acceptable to meet the requirements for any new federal Animal Disease Traceability (ADT) program."

Slovek, a cow-calf producer from Philip noted, "The goal of any identification program should be to enable the cattle industry and state and federal animal health officials to respond rapidly and effectively to animal health emergencies. SDCA commends APHIS for listening to concerns of beef producers while developing this traceability program."



Ethanol CoProduct Helps Feed Chinese Livestock Industry

The U.S. Grains Council continued efforts to educate Chinese feed ingredient buyers about the many advantages of dried distillers grains from the United States. DDGS, an ethanol coproduct, act as a competitively priced, environmentally friendly source of protein for animals and present an excellent opportunity for both ingredient buyers and ethanol producers alike.

The Council, of which the National Corn Growers Association is a founding member, held workshops in Guangzhou and Qingdao, China. These day-long sessions provided the more than 450 attendees a comprehensive overview of the most current data on the DDGS market, including discussions about and analysis of the value of U.S. DDGS in particular. Organized in cooperation with FoodChina Company, the learning sessions also included presentations from respected industry officials on the use of DDGS in swine, poultry and dairy rations and on quality control procedures.

The events benefitted Council members as they afforded buyers and sellers a valuable opportunity to connect with one another.

Educational and promotion activities in this market are of especial importance as the pace of U.S. DDGS imports into China has slowed since reaching a record volume last year. While the United States continues to export large volumes into this market, the slight downturn comes on the heels of the Chinese government's initiation of an anti-dumping case last winter. U.S. shipments in the January-to-September period were down 49 percent from the previous year but still totaled almost one million metric tons, making China the number two export market for distillers grains.



Weekly ethanol production numbers.

According to EIA data, ethanol production averaged 938,000 barrels per day (b/d) – or 39.4 million gallons daily.  That is down 16,000 b/d from the record set the previous week.  The 4-week average for ethanol production stood at 935,000 b/d for an annualized rate of 14.3 billion gallons.

Stocks of ethanol stood at 17.1 million barrels.
 
Gasoline demand for the week averaged 364 million gallons daily.  Expressed as a percentage of daily gasoline demand, daily ethanol production was 10.82%.

On the co-products side, ethanol producers were using 14.222 million bushels of corn to produce ethanol and 105,571 metric tons of livestock feed, 95,246 metric tons of which were distillers grains.  The rest is comprised of corn gluten feed and corn gluten meal.  Additionally, ethanol producers were providing 4.31 million pounds of corn oil daily.



NCBA:  Study Confirms Beef’s Role in a Heart-Healthy Diet

In a first of its kind study, researchers at The Pennsylvania State University demonstrated that eating beef everyday as part of a heart-healthy diet can improve cholesterol  levels. Texas medical doctor and cattleman Richard Thorpe said the Beef in an Optimal Lean Diet (BOLD) study proves what he has known for years – lean beef not only tastes great but it also plays an important role in a heart-healthy diet.

“As a father, medical doctor and beef producer, I have proudly and confidently served my family beef and have recommended it to my patients for years,” Thorpe said on behalf of the National Cattlemen’s Beef Association (NCBA). “The BOLD study is further proof that Americans should feel good knowing the beef they enjoy eating and serving their loved ones is not only a nutrient-rich, satisfying food that provides 10 essential nutrients in about 150 calories but is good for their heart health as well.”

The BOLD study, which was funded by the Beef Checkoff, will appear in the American Journal of Clinical Nutrition in January. The study followed 36 men and women with moderately elevated cholesterol levels who consumed four diets for five weeks each to measure the impact of each diet on heart health risk factors, such as LDL (bad) cholesterol levels. The four diets evaluated were BOLD, which included an average of 4 ounces of beef per day; BOLD-PLUS, which included an average of 5.4 ounces of beef per day; the Dietary Approaches to Stop Hypertension (DASH) diet, which included an average of an ounce of beef per day; and the Healthy American Diet (HAD), which included an average of 0.7 ounces of beef per day.

Subjects following the BOLD and BOLD-PLUS diets experienced a 10 percent decrease in LDL cholesterol from the start of the study. Further, according to the study’s outcomes, after five weeks, there were significant reductions in total cholesterol and LDL cholesterol in the BOLD, BOLD-PLUS and DASH diets compared to the HAD.

“This research adds to the body of evidence concluding that there are heart-health benefits to including lean beef in your daily diet,” said Shalene McNeill, PhD, RD, and executive director, human nutrition research for NCBA, which is a contractor for the Beef Checkoff. “The BOLD study provides strong evidence that including daily lean beef in the gold-standard DASH diet has heart health benefits.”

McNeill said the BOLD and BOLD-PLUS diets are easy to follow as many recipes used in the BOLD study were from The Healthy Beef Cookbook, which includes a collection of healthy beef recipes.

“As families across the country prepare their holiday meals this month, lean beef is a perfect fit,” McNeill said. “Americans should feel confident putting beef on their dinner table knowing that it is part of the solution to building a nutrient-rich, well-balanced and heart-healthy diet.”



CME Directors Sue Corzine

The vice chairman of CME Group Inc. is suing former MF Global Holdings Ltd. Chief Executive Jon Corzine, adding to the tension between the world's largest futures exchange and what was formerly one of its largest customers.

Corzine is among the former MF Global executives named in a suit filed by CME Vice Chairman Charles Carey and fellow CME director Joseph Niciforo, along with several other Chicago-area traders, alleging the failed company improperly handled accounts of those traders and Carey's and Niciforo's trading firm, which is independent of CME.

The suit was filed in U.S. court for the Northern District of Illinois Dec. 8, but has yet to draw much notice among the flurry of legal action aimed at Corzine and MF Global.

Michael Moirano, a partner with Chicago law firm Nisen & Elliott LLC representing the plaintiffs, said he is working to get the lawsuit certified as a class action. If successful, the complaint would represent holders of the 38,000 commodity accounts maintained under MF Global at the time it went under.

Industry executives and regulators are still working to fully account for customer money that remains missing six weeks after MF Global's Oct. 31 bankruptcy filing. A trustee unwinding the firm's brokerage this week estimated that shortfall at $1.2 billion or more.

Carey, one of the best-known figures in the Chicago trading community, and his fellow plaintiffs are seeking to recover missing customer funds on behalf of all MF Global clients, plus additional damages, from Corzine and four other former MF Global executives. The suit aims to hold the former New Jersey governor and his top lieutenants personally liable for missing cash and frozen trades following MF Global's collapse. MF Global itself isn't named in the suit.



DuPont Prevails in PROaccess Arbitration With Monsanto

An arbitration panel has ruled in favor of DuPont in a dispute filed by Monsanto in May 2009. In the arbitration, Monsanto alleged that DuPont business Pioneer Hi Bred's PROaccessSM genetics distribution relationships breached Pioneer's Roundup Ready® corn and soybean licenses with Monsanto. The arbitrators' ruling denied Monsanto's claims for damages and for injunctive relief. The written decision is confidential.

"Today's ruling is good news for farmers who have shown support for choices in the marketplace by their purchases of seed through PROaccessSM genetics affiliates and distributors," said Paul E. Schickler, Pioneer president. "The arbitration panel's decision affirms DuPont's commitment to bring choices to the farmer."

"We are pleased to continue business as usual and put this dispute behind us," said Schickler. "The PROaccessSM business is an important part of Pioneer's success. Early season sales indicate 2012 will be another strong year for us."

Through its PROaccessSM business model, launched in 2008, Pioneer has acquired seven U.S. seed companies and maintains distribution relationships with two unaffiliated U.S. seed companies.



Consumers Plan to Eat Out Less in 2012

Americans will spend more time eating at home in the first half of 2012, according to a recent Harris Poll.

The survey of 2,499 adults showed 61 percent plan to decrease spending at restaurants, despite signs of a recovering economy. In the same poll, 58 percent of those responding plan to cut money allotted for entertainment next year.

A Harris Poll in 2010 showed 66 percent of respondents were planning to visit restaurants less frequently, Nation's Restaurant News reports

According to the poll, it appears consumers are trimming entertainment and dining budgets to have more money to save or invest next year. Fifty-one percent of respondents plan to save or invest more in the first six months of 2012. Even as more than half of those in the survey plan to save more next year, that figure is down one percent from last year’s survey results.

Harris Poll officials have not seen a noticeable difference in consumer spending plans over the past few years.