Thursday December 29 Ag News

AGP Annual Meeting Jan. 19-20 near Omaha

Members and guests will be joining their fellow cooperators at the 28th Annual Meeting of Ag Processing, Inc. on Jan. 19 and 20 near Omaha. The meeting will be held at the Embassy Suites Hotel & Conference Center in LaVista, Neb.

Election of directors will take place, along with management and financial reports on Fiscal 2011. Board nominees include:  from area 1 including Iowa, Gold-Eagle Cooperative General Manager Brad Davis of Goldfield, Iowa;  from area 2 including Minnesota, North and South Dakota, and Wisconsin, LaBolt Farmers Grain Company Board Chair Bruce Granquist of LaBolt, South Dakota;  and from area 3 including Illinois, Kansas, Missouri and Nebraska, Ag Partners Cooperative Board Member Larry Oltjen of Hiawatha, Kansas.  Copies of the 2011 AGP Annual Report will be distributed to member cooperatives.

In addition to an entertaining program for spouses, entertainment, guest speakers and exhibits, there will be special drawings for members and members' spouses for 12 $500 Visa gift cards throughout the annual meeting.

The guest speakers include James M. Olson, Dennis Gartmann and Carol Grace Anderson.

Born in LeMars, Iowa, Olson has a B.A. and a J.D. in international law from the University of Iowa. He was a career officer in the Directorate of Operations of the Central Intelligence Agency, serving mostly overseas in clandestine operations. He served as chief of counterintelligence at CIA headquarters in Langley, Va. Overseas assignments included the former USSR, Austria, and Mexico. He has experience in international affairs, economics, trade negotiations, intelligence support to the military and the law enforcement community, counterintelligence, counterterrorism, counter narcotics, and technical collection systems. He was a senior intelligence advisor to several U.S. ambassadors and had extensive liaison with many government agencies. He is also the author of "The Ten Commandments of Counterintelligence" and "Fair Play: The Moral Dilemmas of Spying".

Gartman has been involved in the capital markets since 1974 after graduating from North Carolina State University. He started his career at Cotton, Inc. and went to NCNB National Bank in Charlotte, N.C., before joining A.G. Becker & Company in Chicago. He was an independent member of the Chicago Board of Trade until he moved back to Virginia to run the futures brokerage operation for the Sovran Bank, and began producing "The Gartman Letter". Gartman has lectured on capital market creation to central banks and finance ministries around the world, and has taught classes on derivatives for the Federal Reserve Bank's School for Bank Examiners. He served as an outside director of the Kansas City Board of Trade from 2006-2008. He now serves on the Investment Committee of North Carolina State University.

Anderson is a sought-after speaker and best-selling author. She is a successful motivational expert and host of her own online show: "Get Fired UP!" She's been published in four languages and also contributed to the mega-best seller "Chicken Soup For The Soul" series.

Registration information for the annual meeting have been mailed to all AGP member cooperatives. For more information, contact the member and corporate relations office at 800-247-1345, ext. 5017.



Northeast Nebraska RC&D Council Meets

The Northeast Nebraska RC&D Executive Committee met on Tuesday, December 27, 2011 for the last meeting in 2011.

A new project was discussed and agreed upon for an upcoming E-Waste Recycling Event to be held during the month of February at the RC&D office.  The Council will know whether a grant will be forthcoming in January to help with this project.  More information will be available soon, so please watch your local paper and RC&D website for more details.

Northeast Nebraska RC&D will be hosting the Nebraska RC&D State Conference September 25 – 27, 2012 tentatively to be held in Wayne, NE.  Plans are being made for a successful Conference and hopefully bringing people from across the State to the Northeast Nebraska area.  A tentative theme of the Conference is “Reduce – Reuse – Recycle”. 
      
A new 2012-2014 Strategic Plan prepared by Volunteer Jan Jorgensen and a 2012 budget were reviewed for  full board approval next month.

The next Council Meeting will be held in Hartington at Outdoorsmen Productions, LLC on January 23, 2012  at 1:30 p.m.  Everyone is welcome to attend.   



ASA Tells Story of Success for Soybean Growers in 2011

American Soybean Association (ASA) farmer-leaders recently reviewed some of the key accomplishments from a year that saw ASA serve soybean farmers by protecting and increasing the market value and opportunities for U.S. soybeans.

“ASA members play an effective role in domestic and international policy development,” said ASA President Steve Wellman, a soybean producer from Syracuse, Neb. “Working with our state affiliates and industry partners, ASA advanced soybean farmer interests in numerous areas in 2011.”

The essential elements of ASA’s 2012 Farm Bill proposal that would help farmers manage risk were included in the Farm Bill developed by the House and Senate Agriculture Committees in 2011.

“Even though the Super Committee process failed, ASA’s collaborative work with Ag Committee leadership and the progress made on a revenue program that complements crop insurance will be key to maintaining our forward momentum toward a Farm Bill next year,” said ASA Chairman Alan Kemper, a soybean producer from Lafayette, Ind. Kemper served as ASA President in 2011.

ASA successfully pressed for passage of free trade agreements with South Korea, Colombia and Panama that represent nearly $3 billion in additional agricultural exports. ASA also worked to maintain access for U.S. soybean exports to the European Union (EU) by addressing the EU’s Renewable Energy Directive.

ASA worked to protect the GPS signals and equipment important to farmers by urging additional testing of the interference caused by a proposed nationwide broadband network.

“Record U.S. soybean production and export values and record biodiesel production were clear indicators of the benefit of ASA’s long-term efforts to increase both domestic and international market demand,” Kemper said. “While we are proud of our work, this is a shared record of accomplishment that was made possible by the work of ASA, our state affiliates, the soybean checkoff at both the national and state levels, and our industry partners.” 

“ASA had a highly successful year in 2011 for our members and soybean farmers, and 2012 promises to be a year full of challenges,” added Wellman. “ASA will continue its close involvement in the development of the new Farm Bill; defend biodiesel’s renewable fuel standard and work to extend the biodiesel tax incentive; fight regulatory overreach; and increase market access for U.S. soybeans.”

See ASA’s complete summary of accomplishments for soybean growers in 2011 at http://www.soygrowers.com/policy/ASA_2011Accomplishments.pdf.



Pork Demand from Abroad Supports U.S. Hog, Corn Markets

Increased export demand for U.S. pork is raising pork profitability and leading to an overall rise in the national hog inventory according to a December reports released by the U.S. Department of Agriculture's National Agricultural Statistics Service and Economic Research Service. The National Corn Growers Association welcomes this growth, which translates into stronger demand for corn and distillers dried grains.

"Corn farmers value our relationship with the hog industry, which consistently provides an important market for our product," said NCGA President Garry Niemeyer. "In 2011-12 marketing year, it is estimated that hogs will consume 960 million bushels of corn. As demand grows for pork both internationally and domestically, corn farmers benefit also thus reinforcing the importance of cooperation among all sectors in the agricultural community."

USDA Economic Research Service projects a significant increase in pork exports during the fourth quarter of 2011, with 1.4 billion pounds of pork exported during this period. This 22 percent increase over fourth quarter exports in 2010, if realized, would set total 2011 U.S. pork exports at more than 5.1 billion pounds. Further agency estimates indicate these levels will hold in 2012.

In addition to strong demand for U.S. pork abroad, domestic demand could also see a slight increase in 2012. Service estimates foresee this demand increase as the market balances against projected reductions in beef and poultry production.

The rise in demand has already increased production, which should be sustained in the coming year. NASS reports indicated that, as of December 1, the total U.S. hog inventory stood at 65.9 million head, two percent higher than at that time last year with the breeding herd expanding at the same rate during that period. While the rate of sows farrowing fell by one percent from September 1, an increase in the number of viable pigs produced per litter hit a record high of 10.02 offsetting the drop in sows.

The overall increases in pork production, export and in domestic demand have not only resulted in a rise in demand for corn, but also in demand for distillers dried grains, an ethanol co-product. Hog sector interest in and demand for DDGs increased steadily over the past few years to take advantage of the quality protein option that it offers at a low cost.



Weekly Ethanol Stocks, Plant Output Up

Domestic ethanol inventories posted a modest build of 11,000 barrels (bbl) to 17.674 million bbl during the week-ended Dec. 23, putting the total supply 4.9% higher than a year earlier, according to data released Thursday by the Energy Information Administration.  The inventories climbed as production from domestic plants increased 19,000 barrels per day (bpd), or 2.0%, to 962,000 bpd last week, which is 5.4% above the level seen a year ago.

On demand, refiner and blender net inputs came in at 836,000 bpd last week, up 1,000 bpd, or 0.12%, from the prior week and 1.3% higher than the year-ago level.  Refiner and blender net inputs represent a major portion of implied demand for ethanol.

Meanwhile, implied demand for motor gasoline rose 44,000 bpd to 8.923 million bpd for the week, while four-week average demand at 8.8 million bpd was down 5.6% from the year-ago level.



Crop Insurance Payouts Climb Over $7 Billion in 2011

Crop insurance companies have paid out more than $7.1 billion and climbing in claims so far this year, which makes 2011 second only to 2008's $8.6 billion in the total value of indemnities paid out to farmers.

The combination of several large-scale floods in the Central U.S., record droughts in the southern plains, a strong tropical storm in the Northeast and a hard freeze in Florida set the stage for the widespread agricultural losses.

Without insurace, many say the major losses from natural disasters or market fluctuations could have lead to widespread bankruptcies and foreclosures.

According to the USDA, net farm income is forecast at $100.9 billion for 2011, up $21.8 billion for a rise of 28 percent from 2010. All three measures of farm sector earnings (net farm income, net cash income, and net value added) are forecast to rise more than 18 percent in 2011.



Mosaic To Reduce Phosphate Production

Mosaic Co. said it would cut phosphate production by up to 250,000 tons over the next three months in response to market oversupply, though still expects record demand for crop fertilizers next year.

The company said dealers and distributors had delayed buying ahead of the North American crop season because of wider economic uncertainty. Prices had fallen but are seen recovering as farmers use an above-average amount of crop nutrients next year.

The cut by the world's largest producer of potash and phosphate for crop use comes just four weeks after Mosaic told investors the market was in balance, with global demand for the two nutrients seen rising by as much as 12% in the 2012/2013 growing season.

"The current spot prices in this market do not reflect our outlook for the business, nor do we think they are sustainable," President and Chief Executive Jim Prokopanko said in a statement.  Global industry phosphate production is expected to reach 60 million tons this year, rising to a record 64 million in 2012, Mosaic told investors last month.

Mosaic and rivals such as Potash and Germany's K+S AG have benefited from rising worldwide needs for food, with fertilizer capacity increases countered by rising demand.  However, in recent months spot-market prices have been tumbling as buyers have been delaying purchases and reducing inventories.



China DDG Imports Down

China's imports of distillers dried grains fell 48.6% in the first 11 months to 1.5 million metric tons, the state-backed China National Grain and Oils Information Center said Thursday.

The corn-based animal feed was the subject of an antidumping probe against U.S. exporters, which the Ministry of Commerce on Wednesday said it would extend by six months to June 28.  (see more below) 

Imports of the agricultural commodity this year have continued to come largely from the U.S., the CNGOIC said, attributing the sharp decline to Beijing's antidumping investigation.

Imports of U.S. DDG rose 3.8 times last year from 2009 to 3.16 million tons, sparking bilateral trade tensions. In 2008, China imported just 45,000 tons of the commodity, which is a byproduct as corn is turned into ethanol.

Before 2008, there were "hardly any" DDG imports, the CNGOIC said.



Chinese Government to Extend U.S. DDG Anti-Dumping Probe

Almost exactly one year after launching an anti-dumping probe into distillers dried grains exported to China from the U.S, the Chinese government announced Wednesday it will extend that probe until June 28 before making a final ruling. 

China's Commerce Ministry said that the case was "special and complicated" and warranted the extended months for their investigation.

China institute the probe the week before New Year's last year, claiming the alleged U.S. dumping of DDG into their livestock markets presented unfair competition on the country's own ethanol producers who could not produce DDG as cheaply because of high domestic corn prices.

Some in the industry believed the move was part of the continuing trade disputes between the U.S. and China. In 2009, China imposed antidumping duties on U.S. chicken to prevent the U.S. from harming its own poultry industry, prompting the U.S. to file a complaint with the World Trade Organization against China, complaining its wind power subsidies were unfair.

Some considered the move puzzling, since China cannot provide all the feed it needs for its livestock industry and must import feedstuffs such as corn, soybeans and DDG.

The probe, however, caused DDG exports to China to plummet, as Chinese buyers ceased their purchases in fear that high tariffs could be implemented as a result of the probe.

According to the U.S. Department of Agriculture's Foreign Agricultural Service, China's DDG imports in the first 10 months of 2011 totaled slightly more than 1.1 million metric tons of DDG in the first 10 months of 2010, a marked decrease from nearly 2.2 mmt in the first 10 months of 2011. The total DDG imports to China for 2010 were more than 2.5 mmt, a staggering figure considering China only began importing U.S. DDG in 2007.

The U.S. Grains Council had announced in mid-December that Chinese interest in U.S.-produced DDG seemed to be on an upswing, especially after the Council held a series of successful DDG workshops in Guangzhou and Qingdao.

The U.S. Grains Council has worked extensively toward a positive resolution to the investigation to preserve trade relations.