Wednesday December 21 Ag News

Nebraska Profts from the Farm Boom
Jason Henderson, Omaha Branch Executive, Kansas City Federal Reserve

A booming farm economy fueled economic gains in Nebraska during the third quarter. Nebraska farmers harvested bumper crops, boosting farm income despite a modest slide in crop prices. In addition, livestock prices climbed higher, driven by strong export demand. Rising farm income spurred record year-over-year farmland value gains across the state. In fact, cropland values surged approximately 40 percent compared to the third quarter of last year, and ranchland values jumped 26 percent. With the farm economy heating up, rural areas of Nebraska enjoyed stronger sales, from Main Street merchants to farm equipment dealers.  

Nebraska’s manufacturers also benefted from rising demand for farm-related products. Led by agricultural equipment sales, Nebraska’s durable goods exports rose further. Moreover, strong foreign appetites for U.S. food products kept food processing plants busy. Nebraska’s manufacturers met production schedules with a combination of new hires and overtime shifts.

Residential real estate activity in Nebraska showed some modest signs of improvement in the third quarter, while commercial construction held steady. A spurt in home sales during the quarter prompted an uptick in building permits. Yet, home prices languished, remaining below year-ago levels. With vacancy rates for existing commercial properties holding frm, there was little demand for new ofce or industrial space.

Nebraska’s job growth held at a healthy pace nearly 2.0 percent above year-ago levels, almost double the national rate. Private sector job creation continued to drive Nebraska’s employment growth as government positions declined further. With a 5.0 percent increase in retail sales compared to last year, store managers and leisure and hospitality frms ramped up hiring before the holiday shopping season. Nebraska’s labor markets remained tight as the state’s unemployment rate held at 4.2 percent, half national levels.

Agriculture and Manufacturing
Strong commodity prices and bumper crops boosted farm incomes in Nebraska during the third quarter. Ample rainfall during the summer produced above-average crop yields and green pastures across the state. Hearty global demand for food and biofuels products amid tight supplies underpinned historically high crop prices. Rising export demand also strengthened cattle and hog prices, although livestock operators continued to pay high input costs. After seeing a surge of more than 20 percent above year-ago levels in the frst half of the year, Nebraska’s agricultural bankers reported an uptick in farm income during the third quarter, which farmers used to pay of operating loans. 

Nebraska farmland values reached record highs as rising farm income fueled robust demand for farmland. Compared to the third quarter of last year, Nebraska cropland values soared approximately 40 percent higher and ranchland values jumped 26 percent. Moreover, many agricultural bankers felt that Nebraska farmland values had yet to peak and anticipated cash rental rates would rise further. Strong farm income also prompted some capital spending on equipment and machinery.

Foreign demand for Nebraska’s manufactured goods promoted production at both durable and non-durable goods plants. During the third quarter, the value of durable goods exports surged 37 percent above year-ago levels, driven by a sharp increase in agricultural machinery shipments. Growing demand for processed food products in East Asia spurred a 23 percent year-over-year increase in the value of non-durable goods exported in the third quarter. Robust factory activity supported a 3.4 percent jump in manufacturing employment, with additional hiring at railroad companies and specialized trucking frms.



Nebraska Enters Second Winter with La Nina Conditions

The state is entering its second straight winter with La Nina conditions in the Equatorial Pacific, but the Nebraska state climatologist said that won't necessarily mean the same kind of winter in 2012.

With the redevelopment of La Nina conditions this fall, there was considerable discussion among climatologists as to whether 2011 winter trends would return in force during this upcoming winter, said Al Dutcher, Nebraska state climatologist.

So far the answer is no, he said.

First and foremost, equatorial sea surface temperatures are averaging about 1.5 degrees Celsius below normal, while last year at this time the basin was nearly 3 degrees Celsius below normal, Dutcher said.

"In layman terms, the current La Nina is rated as a weak to moderate event, compared to last year's rating of exceptionally strong," he said.

In addition, since La Nina was so strong last year, the northern jet stream was especially active and winter storm activity was concentrated across the northern and north central Rockies eastward through the Great Lakes and northeast.

Seasonal snowfall across the southern Rockies during the 2011 winter was less than 60 percent of normal as the primary storm track remained north of this area.

Also, the jet stream pattern during the past 30 to 45 days has exhibited a tendency toward a split flow pattern once systems move into the Pacific Northwest.

"A portion of the energy moves into the northern Rockies, then shifts into the northern Plains," Dutcher said. "The remaining energy dives down into the southwestern U.S., then the subsequent cutoff upper air low slowly drifts around the southern Great Basin region. Only when another trough approaches the Pacific Northwest is there enough energy to kick the low eastward toward Texas."

What does this really mean?

Essentially, the upper air lows moving across Texas are robbing the northward transport of moisture into the northern Plains, he said. As a result, the upper Plains trough moisture patterns are dependent on Pacific Ocean moisture instead of the Gulf of Mexico.

"Unfortunately, this Pacific moisture is intercepted by the northern Rockies and Cascades before it reaches the northern plains," Dutcher said. "During the past 30 to 45 days, more moisture has fallen across portions of south central Kansas, eastern Oklahoma, and north central through northeast than fell in the previous 12 month period.

"Nebraska has been caught dead center between these two pieces of energy," Dutcher said.

If the southern plains low begins to lift northeastward before the northern plains trough arrives, enough moisture moves northward to produce rain and/or snow. If the northern Plains trough wins out, then a dry and cold pattern materializes and the southern plains moisture gets shunted east of Nebraska, he said.

The two competing forces of energy eventually merge east into a strong upper air trough east of Nebraska, which results in heavy moisture events for the eastern Corn Belt.

"As long as this pattern continues, areas of southwest through east central Nebraska will likely have the best opportunity to receive normal to above normal moisture," he said. "Unfortunately, the established northern Corn Belt dry pattern will likely continue for north central and northeast Nebraska. Even if moisture returns to normal, soil temperatures will be a key as to the effectiveness of the precipitation events."

Dutcher said with the absence of significant snowfall across the Plains region of Montana and the Dakotas, he would currently rate the flooding potential this coming spring as low.

"We are seeing decent snow accumulations across the northern Rockies, but not like last winter. Winter storm production has hit all parts of the Rockies, so moisture is not being concentrated in one specific region so far this winter," he said.

Precipitation and Temperature Forecasts
The latest Climate Prediction Center forecast for the January-March temperature forecast indicates above normal temperatures for the southern Plains, extending northward to the extreme southeastern Nebraska. The precipitation forecast indicates below normal moisture for the southern Plains, extending northward to the Kansas-Nebraska border. Wet conditions are anticipated for the northern Rockies and eastern Corn Belt.

A more worrisome forecast for Nebraska would be the February-April and March-May precipitation forecasts, Dutcher said.

The CPC indicates that below normal moisture should cover the southern and central Plains region, extending northward to include much of Nebraska. This scenario would suggest that the northern Plains dryness is not likely to disappear until April or later.

Lincoln, Neb., climate data also suggests that drier than normal, less than 50 percent of normal moisture, occurs during the months of February and March when the Equatorial Pacific is under the influence of a La Nina signal.

It also suggests that the eastern Corn Belt will remain wet and flooding and/or planting delay issues will likely occur this spring in the Ohio and mid-Mississippi river valleys.

Snowfall activity should increase across the northern Rockies in spring, Dutcher said.

The current snow pack is rated normal to below normal in the headwater region of the Platte and Missouri watersheds because most of the recent snows have been across the southern Rockies.

"There is enough reservoir storage space in these two watersheds to handle normal to slightly above normal snowfall without major flood concerns," he said. "However, if snowstorm activity picks up by winter's end, then this outlook could change. But for right now, I would rate the flood potential as average to below average."



ACHIEVING A MORE PROFITABLE OPERATION:  Iowa Corn Growers Announce 2012 Crop Fair Schedule

The Iowa Corn Growers Association (ICGA) and Iowa Corn Promotion Board (ICPB) will again join with local sponsoring groups to host 15 free crop fairs across Iowa this winter.

“Our crop fairs are an established tradition for many growers,” said Don Mason, Iowa Corn director of grower services.  “They make top experts available at local gatherings where farmers can ask questions and tap into the latest information on issues that affect their profitability.”

Mason especially thanked local sponsoring groups and businesses for making the crop fair program possible: “We would not have been able to offer up-to-date information to thousands of farmers without the support of our sponsors. “

Dates and locations for this year’s crop fair schedule include:
                Jan. 4 in Sioux City
                Jan. 5 in Fremont, Nebraska
                Jan. 6 in Burlington
                Jan. 16 in Tama
                Jan. 17 in Brooklyn
                Jan. 25 in Fayette
                Jan. 30 in Ames
                Feb. 1 in Paullina
                Feb. 1 in New Hampton
                Feb. 10 in Boone
                Feb. 14 in Oakland
                Feb. 15 in Orient
                Feb. 17 in Bayard
                Feb. 20 in Missouri Valley
                Feb. 22 in Fort Dodge
                Feb. 28 in Bloomfield
                Mar. 1 in Villisca
                Mar. 5 in Clayton

For full program details on individual crop fairs, go to www.iowacorn.org or call 515-225-9242.



NDA SPONSORS NINTH ANNUAL POSTER CONTEST

Nebraska Department of Agriculture (NDA) Director Greg Ibach today announced the opening of the annual NDA Agriculture Week in Nebraska Poster Contest.  Entering its ninth year in 2012, the contest is open to all Nebraska youth in the first through sixth grades.  This year’s theme is, “Nebraska Agriculture: Feeding My Family.”

“Nebraska’s number one industry is agriculture, and this poster contest gives our youth an opportunity to have a discussion about the importance of agriculture in their daily lives,” said Ibach.  “Each year we hear from teachers who have invited farmers and ranchers into their classrooms, had local FFA members talk with the younger students, and taken field trips to local farms to help their students learn more about agriculture and where their food comes from.”

The entry deadline for the contest is February 21, 2012.  The winners will be announced during National Ag Week (March 4-10).

The contest is broken down into three age divisions:
·         First and second grade students
·         Third and fourth grade students
·         Fifth and sixth grade students

Winning entries will be featured on the NDA web site and potentially in promotional materials and other publications.

Contest rules and official entry forms are available on-line at www.agr.ne.gov/kids.  Contest questions can be directed to Christin Kamm at (402) 471-6856 or by e-mail at christin.kamm@nebraska.gov.



Deere to Expand Iowa Sprayer Manufacturing Plant

Deere & Company confirmed it plans to expand the manufacturing capacity at the John Deere Des Moines Works following the actions taken by the Iowa Economic Development Authority and the City of Ankeny to provide incentives to retain jobs in Iowa.

In applying for consideration under current programs of the IEDA and the City of Ankeny, Deere committed to the retention of 400 jobs as a direct result of the company's expansion plans and said it plans to invest $85 million in capital improvements, including supplier tooling, to add a new 300,000-square-foot building for product assembly.

"This action is another important step as we continue to invest to meet worldwide customer demand for John Deere products," said Mark von Pentz, president of Deere's Worldwide Agriculture & Turf Division. "Expansion of the Des Moines Works helps us meet the need for equipment that John Deere customers use to meet the growing global demand for food."

In the new building, John Deere Des Moines Works, located in Ankeny, Iowa, will add production capacity for self-propelled sprayers - a product already manufactured at the factory. Construction of the new building is set to begin in the spring of 2012 and Deere expects that manufacturing of products could begin by spring of 2013.

In total, current employment at the John Deere Des Moines Works is approximately 1,900, an increase of nearly 500 employees in the past 24 months.



Northey Unveils 2013 Budget Request with Governor

Following several years of significant budget cuts that has left the Iowa Department of Agriculture and Land Stewardship funded at the same level it was in the 1990's, Iowa Secretary of Agriculture Bill Northey Tuesday laid out the Department's fiscal year 2013 funding request in a public meeting with Iowa Governor Terry Branstad.

The Department's general fund appropriation has been cut from $21.2 million in fiscal year 2009 to $16.5 million in the current fiscal year, or a 22 percent reduction. As a result, the Department lost a total of 58 employees since 2008 and is at the lowest staffing levels in 25 years.

In today's request, Northey asked that $1.69 million of Department's $3.09 million cut over the past four years be restored. If this entire request if funded the Department's fiscal year 2013 general fund budget would be $18,189,893, which is still 14.5 percent below 2009 levels.

Northey explained how the funds would be used to backfill some of the losses in the Department's Weights and Measures, Pesticide and Animal Industry Bureaus. Funds would also be used to meet mandatory increased costs facing the Department due to union agreements, IPERS and increased health costs.

"We believe now is the time for the Governor and Legislature to consider starting to restore part of the funding to these key priorities," Northey said. "The Department has great employees that have worked very hard to get the work done and meet our code responsibilities, but continued attrition would be a concern. That's why we've come forward with this proposal and look forward to continuing to discuss it with the Governor and Legislators."

In the meeting Northey also laid out number of water quality priorities for the Department with proposed funding from the Environment First fund, which receives a standing appropriation from the Rebuild Iowa Infrastructure Fund.

The Department's Environment First funding has been cut from $15.8 million in fiscal year 2009 to $12.4 million in fiscal year 2012, which is a 21.5 percent reduction. The Department's total Environment First funding request for fiscal year 2013 is $19.2 million, an increase of $6.8 million.

These funds would be used for the Department's urban conservation program, ag drainage well closure, water shed protection fund, additional cost share to support farmers installing conservation practices and the Conservation Reserve Program.

Northey also requested funding that would allow for the reinstatement of 9 state soil secretary positions and 6 state soil technician positions. Twenty-one field offices are currently without a state secretary and fourteen technicians have been lost in the last two years.

"I understand state funding remains very tight and that is unlikely to change in the upcoming fiscal year, but the dramatic budget cuts experienced by the Department have had an impact and we think the time is right to make our case to restore some of those cuts," Northey said. "The work of the Department is important to all Iowans and these funds would help make sure we are able to continue to serve the people of Iowa and meet our code mandated responsibilities."



January Sign Up for Iowa Counties to Evaluate CAFOs

Counties interested in evaluating proposed locations of confinement facilities that need a construction permit must sign up by Jan. 31.

Counties that would like to participate must adopt and file a construction evaluation resolution before the board of supervisors submits the resolution to the DNR between Jan. 1 and 31.

"This is an opportunity for counties to provide input to producers on site selection, and the type of structures and facility management being proposed," said Gene Tinker, coordinator of the DNR animal feeding section. "County supervisors can review and comment on the master matrix that producers submit."

Producers in counties that file the resolutions must meet higher standards than other permitted sites. They must earn points on the master matrix by choosing a site and using practices that reduce impacts on the environment and the community.

Counties that participate in the master matrix process may send staff to accompany the DNR on site visits to proposed locations. The county board of supervisors may also appeal the DNR's preliminary approval of a permit to the Environmental Protection Commission.

Approximately 86 counties have filed resolutions each year since the master matrix went into effect in 2003.

Counties that have adopted a resolution should mail it to Jerah Sheets at the DNR, 502 E. Ninth St., Des Moines, IA 50319 or fax it to 515-281-6794. Sign-ups occur annually during the month of January for the upcoming February through January.

Most confinement feeding operations that need to apply for a construction permit are subject to the matrix. For more information on which operations are affected, check the DNR website under animal feeding operations at www.iowadnr.gov/afo. Look under Confinements - Construction Requirements -- Permitted - Master Matrix.

Additional information for counties is available on the Iowa State Association of Counties website at www.iowacounties.org under master matrix -- construction evaluation.



NCGA Announces National Corn Yield Contest Winners for 2011

Advanced production techniques, informed growing practices and improved seed varieties helped corn growers achieve high yields in the National Corn Growers Association 2011 National Corn Yield Contest. Despite the challenging weather conditions that plagued the Corn Belt throughout the year, entrants continued to far surpass the national average corn yield, even doubling it in some circumstances.

The National Corn Yield Contest is in its 47th year and remains NCGA’s most popular program for members. With 8,425 entries, the 2011 NCGA National Corn Yield Contest set a new participation record again this year. This is a 18 percent increase over 2010 (7,125) and an incredible 70 percent increase over 2007 (4,932).

“While this contest provides individual growers a chance for good-natured competition with their peers, it also advances farming as a whole,” said Dean Taylor, chairman of NCGA’s Production and Stewardship Action Team. “The techniques and practices contest winners develop provide the basis for widely used advances that benefit the industry.  This contest highlights how innovation, from both growers and technology providers, allows us to meet the growing demand for food, feed, fuel and fiber in a sustainable manner.”

The 18 winners in six production categories had verified yields averaging more than 313.107 bushels per acre, compared to the projected national average of 146.7 bushels per acre in 2011.

While there is no overall contest winner, yields from first, second and third place farmers overall production categories ranged from 277.5 to 429.0 bushels per acre.

Click here for a list of national winners...  http://www.ncga.com/uploads/useruploads/2011cyc_national_winners.pdf

Click here for a list of the state winners...  http://www.ncga.com/uploads/useruploads/cyc_state_winners_2011.pdf

“Many of our members joined NCGA so that they could participate in the National Corn Yield Contest and test their skills as a grower,” said Brandon Hunnicutt, chairman of NCGA’s Grower Services Action Team. “While many join to gain entry, their view of the organization, and corresponding level of participation, evolves.  Once a contest participant looks more closely at our activities and achievements on behalf of all American growers, they see the value in a grassroots approach that unites the voices of corn farmers across the country to affect change.  Reluctant joiners turn into vital members, spokespeople for their industry and active advocates of NCGA membership.”

The national and state contest winners will be honored at the 2012 Commodity Classic in Nashville, Tenn. March 1-3. Contest winners will also be featured in a special edition of Farm Journal magazine.



Questions Remain over LightSquared Spectrum Usage

Over the past year, the National Corn Growers Association has monitored issues surrounding the wireless broadband company LightSquared. While the Federal Communications Commission considers approval of LightSquared's proposed terrestrial based broadband network, NCGA remains concerned about the effects it would have on precision farming. GPS technology has become an important tool for farmers as they improve their efficiency in seed, fertilizer and fuel usage.

"Strong and speedy Internet access is important to our growers, so NCGA supports the expansion of broadband in rural America," said Ethan Mathews, manager of Public Policy and Regulatory Affairs for NCGA said. "However it must not come at the expense of high-precision GPS."

Although LightSquared states that solutions to the interference problem have been developed by several independent companies, the company has yet to provide access to either the test results or the devices.  Further, the FCC and the National Telecommunications and Information Administration are continuing their evaluation of theGPS interference issue. NCGA will look to the FCC and NTIA to ensure the issue has been resolved without loss to accuracy and performance.

In addition, NCGA will continue to work closely with John Deere, the American Farm Bureau Federation, the National Association of Wheat Growers and the American Soybean Association to ensure the GPS technology remains available to our farmers.



Weekly ethanol production numbers

According to EIA data, ethanol production averaged 943,000 barrels per day (b/d) – or 39.6 million gallons daily.  That is up 5,000 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 14.43 billion gallons.

Stocks of ethanol stood at 17.7 million barrels.

Gasoline demand for the week averaged 372.9 million gallons daily.  Expressed as a percentage of daily gasoline demand, daily ethanol production was 10.62%.

On the co-products side, ethanol producers were using 14.298 million bushels of corn to produce ethanol and 106,134 metric tons of livestock feed, 95,754 metric tons of which were distillers grains.  The rest is comprised of corn gluten feed and corn gluten meal.  Additionally, ethanol producers were providing 4.34 million pounds of corn oil daily.



Ethanol growth not leading to cropland expansion, new USDA report shows

An in-depth analysis of U.S. land use patterns released today by the U.S. Department of Agriculture shows total cropland decreased by 34 million acres from 2002 to 2007, the lowest level since USDA began collecting this data 1945. The USDA report also shows significant increases in forestland, grassland and rangeland during the five-year period. The Renewable Fuels Association (RFA) said the new report is one more addition to the mounting body of evidence that proves increased ethanol production has not resulted in expansion of total U.S. cropland or a decline in grassland and forest.

“Using real data from the real world, this report from USDA shows yet again that U.S. cropland is not expanding in response to increased ethanol demand,” said RFA President Bob Dinneen. “The report also shows that forest and grassland increased dramatically during a period when ethanol production more than tripled. This is more proof that the wild predictions of ethanol causing cropland expansion and conversion of forest and grassland are just plain wrong.”

Meanwhile, the report shows land dedicated to urban areas and special-use areas (roads, industrial areas, rural residences, etc.) increased dramatically. “It is ironic that the land use debate has fixated on biofuels, when the actual culprit of land conversion has clearly been urban and suburban sprawl,” Dinneen said. “Subdivisions full of mini-mansions, big box stores, shopping malls, and parking lots are encroaching on productive farmland across the country.”

According to the authors, “Urban land acreage quadrupled from 1945 to 2007, increasing at about twice the rate of population growth over this period. Land in urban areas was estimated at 61 million acres in 2007, up almost 2 percent since 2002 and 17 percent since 1990 (after adjusting the 1990 estimate for the new criteria used in the 2000 Census).”

The estimated acreage of grassland pasture and range increased by 27 million acres (almost 5 percent) between 2002 and 2007, while forest-use land increased 20 million acres (3 percent) from 2002 to 2007, “continuing a trend that became evident in 2002 and reversing an almost 50-year downward trend.”

RFA encourages the policymakers and regulators responsible for penalizing crop-based biofuels for indirect land use change to take a close look at the new USDA report. “There is simply no substitute for real data,” Dinneen said. “Our renewable energy policies and regulations should be based on what is actually happening on the ground, not on hypothetical results from black box economic models.”

The USDA report is available here... http://renewablefuelsassociation.cmail5.com/t/y/l/ydhuduy/hyutwydj/u/. 



Congress Jeopardizes Thousands of Jobs by Failing to Extend Biodiesel Tax Incentive

Thousands of jobs supported by the U.S. biodiesel industry are at risk as Congress appears to have reached a legislative impasse without extending a critical tax incentive that is slated to expire on Dec. 31.

"We're disappointed," said Anne Steckel, vice president of federal affairs for the National Biodiesel Board. "Jobs and the economy are supposed to be the top priority in Washington, yet Congress has left thousands of workers in limbo heading into the holidays by failing to extend this tax incentive. It's a missed opportunity, and we are urging Congress to pass an extension immediately next year to limit the economic damage."

"We appreciate our bipartisan supporters in the House and Senate who worked hard to include the incentive in year-end legislation recently, and we look forward to building on that support when Congress returns," Steckel added.

The biodiesel industry has seen a remarkable turnaround this year after Congress reinstated its $1-per-gallon tax incentive following a one-year lapse in 2010. When the credit lapsed, dozens of plants shut down and thousands of jobs were lost as 2010 production plummeted to about 315 million gallons, the lowest level since 2006.

Through the end of October of this year, according to the latest EPA figures, the industry had set a new annual production record of more than 802 million gallons and could triple the 2010 production volume by the end of the year.

This year's increased production will support some 39,000 jobs - up from fewer than 13,000 last year - while generating at least $3 billion in GDP and $628 million in federal, state and local tax revenues, according to a recent economic study. In addition to creating jobs and economic activity, biodiesel is reducing U.S. reliance on foreign oil, bolstering economic and national security by diversifying our fuel supply, and reducing tailpipe pollution and greenhouse gas emissions.

"Biodiesel is a young industry with tremendous promise. It's the first and only EPA-designated advanced biofuel being produced on a commercial-scale nationwide," Steckel said. "But if we're serious about diversifying our energy supply and embracing an 'all of the above' energy policy so that our economy isn't held hostage to sustained $100-a-barrell oil prices, Congress has to step up and help make it happen."

Biodiesel is a renewable, clean-burning diesel replacement that can be used in existing diesel engines and meets a strict ASTM fuel specification. Made from an increasingly diverse mix of resources such as agricultural oils, recycled cooking oil and animal fats, it is the first and only commercial-scale fuel used across the U.S. to meet the Environmental Protection Agency's definition as an advanced biofuel. It is produced in nearly every state in the country.



Obama Administration Releases Food Safety Tips, New Report on Efforts to Protect Consumers from Foodborne Illness

In preparation for the holiday season, Secretary of Health and Human Services Kathleen Sebelius and Agriculture Secretary Tom Vilsack today issued a progress report highlighting the accomplishments and strategies of President Obama’s Food Safety Working Group (FSWG) combined with useful information for consumers on safe food handling. The interagency group, chaired by Sebelius and Vilsack, was established in 2009 to advise the President on how to strengthen the U.S. food safety system for the 21st century through a coordinated federal agency approach.

“As families across the country share in this holiday season, it is important to reiterate our commitment to protecting the food supply and our desire to remain vigilant to protect the American people,” said Secretary Vilsack.  “We have taken a number of steps to improve the safety of America’s meat and poultry supply in recent years and the President’s Food Safety Working Group has proven to be a vital component to our work.”

“When we gather around our holiday tables, we shouldn’t ever have to worry about the safety of our food,” said Secretary Sebelius. “We have the safest food supply in the world, but we can always do more to protect consumers. The best way to ensure food safety is by building prevention into our food safety system, and we will take another step in that direction when the Food and Drug Administration issues proposed rules under the Food Safety Modernization Act.”

Using a three dimensional approach of prevention, surveillance and response, the FSWG has provided for increased coordination and collaboration between the federal agencies responsible for food safety enforcement. FSWG member departments and agencies share information and experience about all aspects of food safety which strengthens the scientific and technical infrastructure to support a modern food safety system.

By clarifying responsibilities and improving accountability, the FSWG has already made great strides to strengthen the nation’s food safety system. For instance, the FDA implemented the Egg Safety Rule in 2010, which is expected to prevent 79,000 illnesses associated with eating raw or undercooked eggs and save $1 billion each year. In addition, the FDA, in partnership with USDA’s Agricultural Marketing Service, established a Produce Safety Alliance at Cornell University to develop educational and training materials for growers of all sizes. And just this week, the FDA announced the creation of the Food Safety Preventive Controls Alliance (FSPCA) to develop training courses and materials on preventing food contamination for both people and animals during production.

The report also highlights CDC’s most comprehensive estimates of foodborne illness since 1999. CDC provided another important piece to the interagency group’s efforts by making sure that policies aimed at reducing infections work. Its June Vital Signs report pointed to success in reducing E. coli by almost half. Moving forward, CDC’s seven FoodCORE sites are aggressively conducting outbreak investigations in partnership with public health laboratories and environmental health specialists.

The FSWG report released today also chronicles efforts made over the three years by USDA’s Food Safety and Inspection Service (FSIS) to safeguard the food supply and provide consumers with clear information about the foods they purchase.  FSIS set new standards for poultry establishments which may prevent as many as 25,000 foodborne illnesses annually.  Further, the Department announced a zero tolerance policy for six additional strains of Shiga toxin-producing E. coli (STEC) which will launch in 2012 and a new “test and hold” policy that requires facilities to hold product until microbiological testing can determine it is safe to release into commerce.

The FSWG’s accomplishments to date represent efforts toward a stronger food safety system that will deliver greater value, better prevent illnesses, and more effectively promote the well-being of the American people. The FSWG also focused on consumer education by creating a centralized information source at FoodSafety.gov. The site offers information on ways to prevent foodborne illness, current food recalls, and how to keep food safe, especially around the holidays.

Building on those achievements, the FSWG will continue to strengthen the food safety system through increased prevention, enhanced surveillance, and faster response.

The FSWG also plans to continue its efforts to improve food safety by collaborating more with state and local health and agriculture agencies, and food producers, as well as providing education to consumers. Fostering outreach and maintaining strong partnerships at the state and local levels will further sustain and enhance our food system.



CHS Opens Singapore Office, Browne to Lead

CHS Inc., the nation's leading farmer-owned cooperative, announced today it has opened an office in Singapore, and Rick Browne, senior vice president, Grain Marketing, will lead the expansion and growth of CHS Asia-Pacific business platform. Browne will be based in Singapore.

"While CHS has been doing business in the Asia-Pacific region for a number of years, we are intensifying our focus on this dynamic, growing market," says Mark Palmquist, CHS executive vice president and chief operating officer, Ag Business. "Increasing our profile in global commodities is one of the company's strategic aspirations."

CHS also recently opened an office in Seoul, South Korea, in addition to existing Asia-Pacific offices in Hong Kong and Shanghai, China.

Browne joined CHS in 1979 as a grain merchandiser and has held a variety of grain marketing merchandising and management positions in St. Paul, Minn., and Portland, Ore. He was named senior vice president in 2001 and has led the CHS North American Grain Marketing platform since that time. In early 2011, Browne also assumed management responsibility for the CHS Crop Nutrients business.

Browne also represented CHS on the board of directors for TEMCO, Horizon Milling, LLC and the National Grain and Feed Association. He earned a bachelor's degree agricultural economics and business management from the University of California-Davis.



China Buys Less Soy From US

China, the world's top soy buyer, imported 34.8% less of the oilseed from the United States in November than a year ago, as South American supplies cut into the U.S. share of China's huge market, data from the General Administration of Customs of China showed on Wednesday.

That compared with robust annual import growth of 39.4% from the United States in November 2010.

In November, China imported 2.467 million metric tons of soy from the United States, which is on track to be eclipsed by Brazil as the world's largest exporter of the oilseed.

The dramatic shift in market share comes at the beginning of the peak sales season for the United States. China's imports from Brazil were up 92% on the year at 1.33 mmt, and those from Argentina jumped 87.6% to 1.7 mmt.

China imported a total of 5.69 mmt in November, the second highest monthly import level ever. Crushers increased imports to replenish low stocks at home as crushing margins improved.

In the first 11 months of the year, Brazil had surpassed the United States as the largest exporter to China, with exports up 6.8% on the year at 19.8 mmt, while the United States exported 18.75 mmt, up 0.24% on the year. China imported a total of 47 mmt in the period.

China's soy imports in 2011 were expected to decrease for the first time since 2004, due to the release of a large volume of soy and edible oil stocks as Beijing sought to cool food inflation in the first half of the year, which had hurt crushing margins at soy plants.

China is expected to import 52 mmt of soy in 2011, down 5.1% from 2010, according to an estimate by the official China National Grain and Oils Information Center.