Tom Field is the new director of the Engler Agribusiness Entrepreneurship Program and the Paul Engler Chair of Agribusiness Entrepreneurship at the University of Nebraska-Lincoln's Institute of Agriculture and Natural Resources.
"I am really excited about this opportunity to be a steward of Paul Engler's gift. I have a high regard for Paul Engler and for his business and the career he built. I also feel fortunate to work with Mark Gustafson," said Field, who started his position Jan. 3, but will work with Gustafson, who is continuing as the program's founding director, until the end of June. Before coming to Nebraska, Field was the executive director of producer education for the National Cattlemen's Beef Association in Centennial, Colo.
The Engler program began in 2010 with a gift from the Paul F. and Virginia J. Engler Foundation to the University of Nebraska to establish a permanently endowed fund to support agribusiness entrepreneurship in the Institute of Agriculture and Natural Resources. The gift provides student scholarships and program support for student courses, a lectureship series, entrepreneurship training camps, internship placement assistance, student travel and more.
Ronnie Green, Harlan vice chancellor of the Institute of Agriculture and Natural Resources, appointed Field to the position.
"We could not have found a more perfect fit for a leader for the Engler Agribusiness Entrepreneurship program than Tom Field," Green said. "He is widely recognized internationally as one of the very top university teachers in agriculture and brings a wealth of experience in creativity and entrepreneurship from his professional experience, including the development of 'out of the box' programs, such as the Beef Industry Leadership graduate program at Colorado State University and more recently new approaches to producer education at the National Cattlemen's Beef Association."
Green said UNL will quickly become known globally as the "destination location" for the very best student experience in development of entrepreneurial skills and problem solving.
The program will continue to prosper and grow under Field's energy, enthusiasm and leadership, honoring the vision and commitment of Paul Engler to make a difference through empowering student entrepreneurship, said Steve Waller, dean of the College of Agricultural Sciences and Natural Resources.
"Field's desire to assume the leadership of the Engler Agribusiness Entrepreneurship Program speaks volumes to the quality and importance of this innovative program and the wonderful foundation created in the first two years by the founding director, our first two student cohorts and the faculty that support the curriculum," Waller said.
Field said he is looking forward to working with the young people in this program, providing them experiences that help them become employers and community builders.
Within his first six months he plans to build partnerships within UNL, Nebraska and in public and private entities to make the program successful.
"A chance to build catalytic partnerships is hopefully what I bring to the table," he said. "We face a unique business environment. There is a lot of uncertainty, but this just requires unconventional thinking."
At the National Cattlemen's Beef Association, Field led professional staff in coordinating and delivering educational services to the 30,000 members of the NCBA via Cattlemen's Colleges, "Cattlemen to Cattlemen" on RFD-TV, and diverse populations.
While administering a budget of $1.1 million, Field increased attendance at national education events nearly 20 percent in 2010 and increased profitability from educational material sales by 21 percent from 2008 to 2009.
Field earned his doctorate, master's and bachelor's degrees in animal sciences from Colorado State University. Before joining the NCBA, he was a professor in the Department of Animal Sciences at Colorado State University, where he had worked since 1984.
Field is the co-owner of Field Land and Cattle Company in Gunnison, Colo.
He and his wife, Laura, have three sons in college -- Justin, Sean and Trae.
Women in Ag Conference Feb. 23-24 in Kearney
Nebraska women will learn to take charge of their futures and invigorate themselves through fellowship, education, innovation and networking during the Women in Agriculture Conference Feb. 23-24 at the Holiday Inn in Kearney.
The theme for this year's Women in Agriculture Conference is "Innovation for the Future." Participants will find dozens of workshops, "funshops," and speakers that will help them develop management skills in every facet of agriculture, said Cheryl Griffith, Nebraska Women in Agriculture coordinator.
"We encourage women involved in any type of agriculture production or those working in the industry to attend this year's conference, Griffith said. "In addition to the workshops, participants also can visit the 22 booths set up for display."
The two-day workshop begins Feb. 23 with 9 a.m. registration. The program will kick off with a welcome followed by keynote speaker Ronnie Green, University of Nebraska vice president and Institute of Agriculture and Natural Resources Harlan vice chancellor. One of two keynote speakers, Green will share his vision for IANR.
On Feb. 24, the morning keynote speaker Tina Henderson, director of communications services at Nebraska Farm Bureau, will talk about how farmers and ranchers will continue to be in the spotlight with consumers and how they can tell consumers where their food comes from using social media and speaking to local community groups.
Participants also will be able to choose from more than 30 workshops spread out over five sessions throughout the conference. On the evening of Feb. 23, participants will enjoy a wine tasting sponsored by the Nebraska Winery and Grape Growers Association before dinner and after dinner can attend "funshops." These offer participants a fun way to network and learn in a non-pressure setting, Griffith said.
"We also couldn't do this without our sponsors," Griffith said. "This year's premier sponsors are Reinke Manufacturing, Nebraska Farm Bureau, Farm Credit Services of America and the Nebraska Soybean Board." Entertainment will be provided by the University of Nebraska at Kearney "Nebraskats."
The conference will conclude after lunch on Feb. 23 with capstone speaker Juli Burney. Burney is a nationally-known award-winning teacher, humorist and author from Nebraska.
Early registration of $100 per person is due by Feb. 10. Beginning Feb. 11, the fee is $120. The fee includes workshop materials, registration, breaks, lunch and dinner on Feb. 23 and breakfast and lunch on Feb. 24.
A block of rooms has been reserved through Jan. 23 for conference participants at the Kearney Holiday Inn. Call 308-237-5971 for reservations.
For more information or to register visit http://wia.unl.edu/, call 800-535-3456 or mail a completed registration form and check payable to University of Nebraska to Women in Agriculture, UNL Agricultural Economics, 303 Filley Hall, Lincoln, NE 68583-0922.
Steinfeldt New Regional FB Manager in Iowa
Iowa Farm Bureau Federation (IFBF) is proud to announce Ryan Steinfeldt as the new regional manager for IFBF's region 13, which includes Audubon, Guthrie, East Pottawattamie, Cass, Adair and Union counties.
Steinfeldt will work with county officers, committees and members to help develop and carry out program activities, organize and assist with the annual membership campaign and supervise the operation of county Farm Bureau offices in the region.
"We are happy to have Ryan managing region 13," said Joe Johnson, director of IFBF field service. "His experience, knowledge and understanding of farm issues and rural Iowa will serve our members well."
Prior to this position, Steinfeldt, a graduate of Simpson College, worked in the insurance industry for 12 years.
Steinfeldt grew up on a family farm in Wayne County, raising hogs, cattle and row crops.
Various educational opportunities being offered at 2012 Iowa Pork Congress
The Iowa Pork Producers Association is offering a variety of educational opportunities at the 2012 Iowa Pork Congress. Several seminars and training/certification sessions have been scheduled during the two-day show Jan. 25 and 26 at the Iowa Events Center in Des Moines. All of the sessions are offered at no additional cost to registered participants.
Several outstanding pork industry experts will facilitate sessions on Iowa governmental regulations, swine diets, Porcine Reproductive and Respiratory Syndrome, animal well-being, 2012 markets and niche pork markets. National Pork Board and National Pork Producers Council representatives will give attendees an update on what’s happening at the national level.
Animal welfare expert and university communications and public relations professor Dr. Wes Jamison will present the keynote address on Jan. 25. He will discuss animal welfare trends and public relations strategies for the pork industry. Pork Congress attendees also can attend PQA Plus® and TQA® certification sessions, as well as confinement site manure applicator training.
Wednesday, January 25 Seminars
● Iowa Regulations & Nuisance Case Update
Eldon McAfee – Beving, Swanson & Forrest
9:15 a.m. – 10:15 a.m.
● Diet Decisions for the $ and the Hog
Part I – Less obvious implications of using alternative ingredients in practical diets
Dr. John Patience - Iowa State University
Part II – Feeding for pork quality: Impact of DDGs
Dr. Kenneth Prusa- Iowa State University
10:30 a.m. – Noon
● Dreaming of a World without PRRS
Part I – Evaluating regional projects and opportunities for PRRS elimination
Dr. Bob Morrison - University of Minnesota
Part II – Proven practical strategies for PRRS-free herd
Dr. Jim Lowe - Carthage Veterinary Service, LTD.
12:15 p.m. – 1:45 p.m.
● “The Power of Activist Communications: Making Meaty Messages” – Keynote Presentation
Dr. Wes Jamison – Palm Beach Atlantic University
2 p.m. – 2:45 p.m.
Underwritten by the National Pork Producers Council
●Riding the Roller Coaster: Economic Outlook
Dr. Steve Meyer – Paragon Economics, Inc.
3 p.m. – 4 p.m.
Underwritten by National Hog Farmer
Training Sessions
● Pork Quality Assurance Plus Certification
Dave Stender - Iowa State University Extension Swine Specialist
10 a.m. – Noon
● Transport Quality Assurance Certification
Mark Storlie - Iowa State University Extension Swine Specialist
1 p.m. – 3 p.m.
Thursday, January 26 Seminars
● Animal Well-Being Decisions for Modern Pork Production
Part I – Safe and Effective Animal Movement
Dr. Matt Ritter - Elanco Animal Health
Part II - Euthanasia, Concern Reporting & ISU Research
Dr. Suzanne Millman- Iowa State University
9:15 a.m. – 10:15 a.m.
● Your Investment at Work: National Organization Update
Part I- Policy, regulations & trade
Neil Dierks - CEO, National Pork Producers Council
Part II- Pork Checkoff programs
Bill Winkelman – V.P. of Producer & Industry Relations, National Pork Board
10:30 a.m. – Noon
● Building Your Value-Added Market: Production Panel
Jim Compart – Compart Duroc
Mark Lane – Niman Ranch
Dave Stender – Iowa State University Extension Swine Specialist
12:15 p.m. – 1:45 p.m.
●Understanding Contracts and Liens
Eldon McAfee - Beving, Swanson & Forrest
2 p.m. – 3 p.m.
Training Sessions
● Confinement Site Manure Applicator Certification
Jeff Prier – Iowa Department of Natural Resources
Angela Rieck-Hinz – Iowa State University
10 a.m. – Noon
All seminars and training sessions are hosted on the lower level of Hy-Vee Hall at the Iowa Events Center. All of the seminars are funded by the Pork Checkoff! The Iowa Pork Congress is open to all pork producers, allied business partners and others involved in the pork industry. Show hours are 9 a.m. to 5 p.m. Jan. 25 and 9 a.m. to 4 p.m. Jan. 26. Admission at the door is $10. For more information, contact the Iowa Pork Producers Association at (515) 225-7675, (800) 372-7675 or visit www.iowaporkcongress.org.
Iowa Pork Producers Association to hold annual Taste of Elegance
The Iowa Pork Producers Association Restaurant and Foodservice Committee will hold its annual Iowa Pork Taste of Elegance on Jan. 23 at the downtown Des Moines Marriott.
Eleven of Iowa’s top chefs will put their best original pork entrees on the line for the right to be named Chef Par Excellence in this exciting and elegant culinary competition. The goal of the contest is to inspire new and innovative ways to menu pork at the state’s best restaurants.
A visiting chef from Manitoba, Canada, also is competing, but only for the People’s Choice Award.
A panel of three food industry professionals will taste and critique each entrée. The winners of the competition will be selected on the taste, originality and presentation of their entrée.
In addition to Chef Par Excellence, the 2nd and 3rd place chefs will receive Superior Chef and Premier Chef honors. Cash prizes will be awarded to the top three chefs and the winner will be invited to compete in the national Taste of Elegance contest in the spring. At the conclusion of the event, one of the chefs will receive the People’s Choice Award, which is decided by the invited guests.
The Iowa Pork Taste of Elegance reception is an invitation-only event, but anyone is welcome to attend. Interested persons can contact IPPA’s Alison Swanson at (800) 372-7675. The event is semi-formal and invited guests can enjoy samples of the various pork entrees, hors d’oeuvres and fine wines from six Iowa wineries.
The 2012 Iowa Pork Taste of Elegance reception will begin at 6:30 p.m.
The competition is open to any restaurant or chef in the state. The 2012 contestants are:
Chef Aaron King, Dos Rios/Big City Burgers & Greens/Catering DSM, Des Moines
Chef Patricia Weidner, Prairie Meadows Racetrack & Casino, Altoona
Chef Rick Beaulieu, Bev’s On The River, Sioux City
Chef Jon Nelson, Diamond Jo Casino, Dubuque
Chef Ephraim Malag, Tournament Club of Iowa, Polk City
Chef Rob Thomas, Manitoba
Chef Justin Scardina, La Rana Bistro, Decorah
Chef Andrew James Weis, Caroline’s Restaurant/Hotel Julian, Dubuque
Chef Bryan Manning, Hotel Fort Des Moines/Raccoon River Brewing Co., Des Moines
Chef Robert Day, The Faithful Pilot Café & Spirits, Le Claire
Chef Henry Rodriguez, Otis & Henry’s Bar & Grill, Waterloo
Chef Daniel Ankrum, Art House Café, Waterloo
Canal Could Make Transportation More Competitive
Dredging the lower Mississippi River to an adequate depth is a real issue affecting inland waterways and it will be even more important when the Panama Canal comes online in 2014, said Mike Steenhoek, executive director of the Soybean Transportation Coalition, on Friday.
For grain leaving southern Louisiana destined for Asia, the limiting factor on the size of the ship is the canal, which can only clear ships with a draft of 39 1/2 feet or less. Draft measures how deep a ship sinks due to its cargo. The new channel will allow ships with a 50 foot draft to pass through, five feet deeper than the Mississippi River's congressionally mandated channel depth.
"We're not going to be able to go up to 50 feet in the near future most likely, but we should be able to go up to 45 feet" on ships carrying grain, Steenhoek said. "Once you go from that 39 1/2 feet up to 45 feet, that allows a ship to be loaded with 13,300 metric tons of additional soybeans, which is just shy of 500,000 bushels. Depending on what price per bushel you use, that's approximately $5.5 to $6 million dollars of additional value per ship just going from 39 1/2 feet to 45 feet."
By making ocean going vessels more efficient, it makes river transport of agricultural goods even more economical. Steenhoek called it a ripple effect.
Currently, grain transported via barge to export terminals draws from about 70 miles on each side of the river, be it the Mississippi, Ohio or Illinois. The Soybean Transportation Coalition estimates the range that delivers to river ports will expand by 91 miles, so producers within 161 miles of a navigable river will find it beneficial to deliver there.
"There are areas of the country where, up to this point, inland waterways really haven't been a viable option for them because it doesn't make sense from a dollars-and-cents perspective. But if you're making ocean transportation more efficient, then all of a sudden that draw area has expanded. There are going to be areas where people are going to be putting pencil to paper and crunching some numbers and figuring out that maybe we move our grain to the river and load it there."
That's going to have a favorable impact on rail rates as well, he added. "We see throughout the country that when an area has options for shipping via more than one mode or more than one railroad, the transportation costs are more relaxed.
"But, again, the moral of the story is we could see barge transportation become more economical, but it all is a function of whether or not we maintain our inland waterways. ... There's real dollars and real profitability at stake with this issue."
November Pork Exports Record-Large; Beef Exports Also Strong
U.S. pork exports set another monthly volume record in November, according to statistics released by USDA and compiled by the U.S. Meat Export Federation (USMEF), which helped offset record-high production and provide a significant boost to pork cutout values. Exports totaled 217,080 metric tons valued at $597.85 million - up 22.5 percent and 35 percent, respectively, over November 2010. This boosted the January-November volume total to 2.04 million metric tons (up 18 percent year-over-year) and the value total to $5.526 billion (up 27 percent). This puts U.S. pork export value, which had never reached $5 billion before this year, on pace to approach the $6 billion mark in 2011.
November beef exports also performed well, reaching 105,268 metric tons valued at $456.25 million. This was steady with the October 2011 volume and up slightly in value. On a year-over-year basis, November exports were up 4 percent in volume and 17 percent higher in value from the very strong totals recorded in November 2010. This boosted the January-November export total 22 percent higher in volume than a year ago to 1.179 million metric tons, and up 35 percent in value to $4.944 billion. When December results become available, beef export value will eclipse the $5 billion mark for the first time ever.
Per-head pork export value soars to nearly $60 in November
November pork exports equated to nearly 29 percent of total production (including variety meat). In terms of muscle cuts only, exports still totaled 24 percent of total production. Export value per head slaughtered set a new monthly record at $59.98, which was $15 higher than a year ago. For January through November, the percentage of total production exported equated to 27 percent, or 23 percent when including only muscle cuts. This compares to 23.7 percent and 19 percent for the same period in 2010. Export value for the year averaged $55.21 per head, compared to $43.72 per head a year ago.
U.S. pork continues to perform remarkably well in Japan, with November results up 6 percent in volume and 17 percent in value over a year ago. For January-November, exports to Japan totaled 451,509 metric tons, nearly matching the 2008 volume record of 451,853 metric tons. Export value reached $1.79 billion, easily setting a new record and setting the stage for a year-end value total that could threaten the $2 billion mark.
“USMEF has continued to market U.S. pork aggressively in Japan, because we know this it is a valuable and fiercely competitive market,” said USMEF President and CEO Philip Seng. “When we first broke the $1 billion barrier in 2005, some speculated that this market may have peaked. They said so again in 2008, when exports hit $1.5 billion. To be approaching $2 billion is remarkable, and it shows just how vital Japan is to the bottom line of the U.S. industry.”
November exports were also bolstered by strong results in the China/Hong Kong region, which set another monthly record at 66,993 metric tons valued at $140.2 million. For the year, export volume to this region was up 68 percent to 428,683 metric tons and export value nearly doubled to $794.6 million.
Pork exports to South Korea continued to build on a record year, with November results up 62 percent in volume to 11,673 metric tons and more than double in value to $35.6 million. For the year, exports to Korea have soared by 126 percent in volume (172,791 metric tons) and 176 percent in value ($453.7 million).
Exports volume to Mexico was lower in November at 47,295 metric tons (down 12 percent) but value remained steady at $94.7 million. Despite volume for the year being down 3 percent to 477,221 metric tons, Mexico remains the leading volume destination for U.S. pork. Export value for the year ($925.3 million) was up 4 percent from 2010’s record pace, and by year’s end may break $1 billion for the first time.
November results pushed pork exports to Canada to new record totals in both volume (188,250 metric tons, up 14 percent) and value ($673.8 million, up 20 percent). Other markets that have topped their previous records in 2011 include Australia (58,631 metric tons valued at $187.8 million) and Central-South America (66,352 metric tons valued at $171.3 million).
Beef export value nearly $220 per head in November, more than $200 for 2011
November beef exports equated to 14 percent of total production when including variety meat, or 11 percent for muscle cuts only. This was consistent with the 2011 average but up significantly from the 2010 ratios of 11.7 percent for total production and 9 percent for muscle cuts. November exports equated to $219.73 per head of fed slaughter, up $41.50 from a year ago. For January-November, export value averaged $204.27 per head - more than $50 higher than the previous year’s average.
Beef exports to Canada posted another strong month, solidifying it as the leading value destination for 2011 and ensuring a $1 billion performance by year’s end. For January through November, exports to Canada totaled 174,122 metric tons (up 27 percent) valued at $940.5 million (up 43 percent).
Mexico is still the volume leader for U.S. beef exports, despite a slight slowdown in volume in November. Export volume in November was down 4 percent to 21,884 metric tons, but value still climbed 6 percent to $84.6 million (trailing only Japan). For the year, exports to Mexico were up 5 percent in volume to 234,888 metric tons and were 23 percent higher in value to $902.8 million.
Japan was the leading value destination for U.S. beef in November at $85.3 million, up nearly 40 percent from a year ago. Export volume was 18 percent higher at 14,312 metric tons. For the year, exports to Japan were up 29 percent in volume to 148,182 metric tons and 38 percent in value to $812.1 million.
November exports to South Korea, Hong Kong and the Middle East were all lower than a year ago, but all of these markets were still up solidly for the year. In fact, Hong Kong and the Middle East had already set new annual volume and value records in October.
Exports to Russia were also slightly lower in volume in November but more than 60 percent higher in value. Russia had already set a new annual value record in October which has now reached $243.6 million. Led by surging exports to Chile, the Central-South America region has also set new records this year for both volume (23,340 metric tons, up 50 percent) and value ($75 million, up 76 percent).
“There is much to be excited about this year with regard to U.S. beef exports,” Seng said. “Not only are we going to break $5 billion for the first time ever, we are gaining back valuable market share in Asia and taking exports to new heights in other regions across the globe. Demand for U.S. beef has never been greater, and this is generating a lot of momentum for 2012.”
Lamb exports set new value record
U.S. lamb export value reached $27.76 million through November, up 49 percent from a year ago and just edging the previous annual record of $27.75 million (set in 2006) with a month remaining in the year. Lamb exports had already topped their previous high in volume, but strong November results pushed export volume for the year to 16,958 metric tons (up 79 percent from a year ago). Strong performance in Mexico and Canada accounted for much of this growth, but results have also been solid in Central America, the Middle East and the southeastern Caribbean islands.
Double Deck Trailer Ban in Highway Safety Bill
Cindy Schonholtz, Professional Rodeo Cowboys Association
Unfortunately, the U.S. Senate Committee on Commerce, Science and Transportation recently included the double deck trailer ban in S. 1950, the Commercial Motor Vehicle Enhancement Act of 2011. Section 905 of S. 1950 prohibits the transportation of all horses in double deck trailers, not just those bound for slaughter. This measure is currently waiting for further consideration on the Senate floor. The U.S. House Committee on Transportation and Infrastructure will likely mark up its version of the Highway Bill in early February.
You may be curious as to why Congress is trying to expand this provision. This issue has been a strong interest of Senator Kirk (R-Ill.). While Senator Kirk was serving in the U.S. House of Representatives, he stated he introduced this legislation after an accident in Wadsworth, Illinois in October, 2007 involving the overturning of a double deck trailer carrying 59 Belgian draft horses. According to accident reports the driver ran a red light causing the accident. Several other accidents cited in background information supporting the ban were caused by driver error. Unfortunate accidents such as this remind those transporting livestock that continued education on transportation safety is vital. The welfare of the livestock we are transporting is our top priority and we must communicate this fact and not allow special interest groups to destroy our industries.
The U.S. Department of Agriculture currently regulates the transport of horses to slaughter and recently strengthened those regulations, but there are currently no other federal regulations on horse transportation. Passage of this provision would possibly lead to further restrictions on livestock transportation.
Rodeo stock contractors stand to suffer adverse effects if a ban on transporting on in double deck trailers is imposed. The rodeo industry actively opposes the ban with the following facts:
- While transporting horses and all livestock, the main goal should always be the safety of the trailer (i.e. headroom, road worthiness, etc.). As with any form of transportation, accidents may happen and the focus of any potential legislation should be on safe transport, rather than the banning one specialized form of transportation.
- Stock contractors transport rodeo horses in double deck trailers which are specially ordered or specially modified in order to safely transport horses. These modifications may include changes made to ramps and doorways to safely accommodate horses.
- Rodeo horses must be fit and able to perform when they arrive at their destination. Thousands of horses are successfully hauled each year in specially modified double deck trucks.
- Many stock contractors have one level created with a higher clearance (up to 84 inches). The level with the lower floor to ceiling clearance is used to haul timed event cattle or bulls.
- The average height of a horse is approximately 60 inches. Floor to ceiling clearance in most double level trailers used to haul bucking horses range from 71 to 75 inches. This leaves from 11 to 15 inches of headroom for the average horse in these modified trailers, more than adequate.
- Taller rodeo horses are transported in the single level areas at the front and back of the modified trailers which may have up to 9 feet of floor to ceiling clearance.
- The majority of bucking horses used in professional rodeos today come from breeding programs where they are specifically bred to buck. These horses are conditioned to riding in specially modified double level trailers from a young age.
We must stand together and educate our representatives in Congress on the negative consequences of this legislation. Please start today by contacting your elected officials in Congress and urging them to oppose provisions in the Highway Bill that prohibit the transport of horses in double deck trailers.
ASA Statement on President’s Proposed Consolidation of Trade Agencies
While the American Soybean Association (ASA) supports initiatives to improve government efficiency and eliminate redundancy, we have strong concerns about at least one aspect of the President’s proposal, and that is with the plan to merge the Office of the U.S. Trade Representative (USTR) with other trade agencies. We believe that USTR should remain an independent agency within the Executive Office of the President (EOP), focusing on trade negotiations, trade agreements and trade enforcement. By being an independent office within the Executive Office of the President, USTR serves a critical function in supporting and balancing the divergent trade interests of each sector of the U.S. economy, while consistently advocating the reduction of trade barriers. USTR’s efforts have been vital to the growth of American agricultural exports. We are concerned that folding USTR into a massive Department of Commerce or Industry structure would significantly weaken the coordination role played by USTR on trade interests across sectors, and the work on agricultural trade opportunities and barriers would be diminished. We therefore support continuing the current structure and functions of the Office of the U.S Trade Representative.
The U.S. soybean industry exported a record 1.5 billion bushels of soybeans in the 2010/2011 marketing year as a direct result of the dedication of soybean farmers coupled with fertile export markets. With the support of USTR, the federal government took great strides toward ensuring the continued development of these markets with the passage of free trade agreements with Panama, Colombia and South Korea. This progress toward opening new markets for farmers and ranchers must be enhanced, not diminished, under any consolidation proposal.
ASA looks forward to closely examining the trade agency consolidation proposed by the President today. We will work with Congress and the Administration to ensure that market opening and trade enforcement efforts for agricultural goods will not be diminished under any final plan. Agricultural exports are just too important to our nation’s economy, rural America, soybean farmers, and the livestock industries we supply.
November Ethanol Exports Set Record
U.S. exports of denatured and undenatured (non-beverage) ethanol set a new monthly record of 152.5 million gallons (mg) in November, according to government data released this week. Brazil was the leading destination for U.S. product and accounted for nearly half of total shipments for the month. Canada, Mexico, and the Netherlands were among other top destinations.
Year-to-date total exports through November stood at 1.02 billion gallons (bg), meaning exports were on pace for a 2011 calendar year total of 1.11 bg. Notably, these exports did not qualify for the ethanol blender’s tax credit, as the ethanol was not blended with gasoline prior to exportation.
“Exports have become an important part of the business model for American ethanol producers,” said Geoff Cooper, Vice President of Research and Analysis at the Renewable Fuels Association. “American ethanol producers are the lowest cost provider of motor fuel today and have ample supplies available to help meet ethanol demand around the globe. While the preference for American producers would be to use more ethanol domestically through use of higher ethanol blends like E15, E30 and E85, overseas markets will remain a viable and important part of America’s ethanol industry.”
In December, Cooper raised the issue of U.S. policies that perversely incent the import of ethanol from Brazil. Cooper coined the phenomenon the “Ethanol Shuffle". While import data for November is not yet available, anecdotal evidence suggests the “Ethanol Shuffle” continued in November and will continue into 2012.
On the co-products side, November exports of distillers dried grains with solubles (DDGS) totaled 538,174 metric tons (mt), the lowest monthly tally of the year. China was the top market (140,741 mt), followed by Mexico (117,108 mt), and Canada (53,458 mt). Year-to-date exports of DDGS stood at 7.08 million mt, meaning exports are on pace for 7.72 million mt for the calendar year. That total would be down 14% from 2010’s record exports of 9.03 million mt.
UN's Food Price Index Ends 2011 with Sharp Decline
Food prices fell in December 2011 with the FAO Food Price Index dropping 2.4 percent, or five points from November, FAO said this week.
At its new level of 211 points, the Index was 11.3 percent (27 points) below its peak in February 2011. The decline was driven by sharp falls in international prices of cereals, sugar and oils due to bumper 2011 crops coupled with slowing demand and a stronger US dollar. Most commodities were affected.
However, although prices dropped steadily in the second half of 2011, the Index averaged 228 points in 2011 - the highest average since FAO started measuring international food prices in 1990. The previous high was in 2008 at 200 points.
Commenting on the new figures, FAO Senior Grains Economist Abdolreza Abbassian said that it was difficult to make any firm prediction on price trends for the coming months.
"International prices of many food commodities have declined in recent months, but given the uncertainties over the global economy, currency and energy markets, unpredictable prospects lie ahead," Abbassian said.
Among the principal commodities, cereal prices registered the biggest fall, with the FAO Cereal Price Index dropping 4.8 percent to 218 points in December. Record crops and an improved supply outlook sent prices of major cereals declining significantly. Maize prices fell 6 percent, wheat 4 percent and rice 3 percent. In 2011, the FAO cereal price index averaged 247 points, up some 35 percent from 2010 and the highest since the 1970s.
The FAO Dairy Price Index averaged 202 points, almost unchanged from November. All dairy products were up slightly with the exception of butter, which dropped by 1 percent. Over the whole year, dairy products were on average 10 percent dearer than in 2010, with particularly strong gains witnessed for skim milk powder and casein, which gained 17 percent each. More modest increases were seen for butter and whole milk powder prices, which progressed by 11 percent, and cheese, by 8 percent.
A Blueprint for Stronger Service at USDA
Ag Secretary Tom Vilsack
Last week, I announced a Blueprint for Stronger Service at USDA. It is our effort to make sure that in this era of reduced budgets, the folks who live, work and raise their families in rural America don’t see reduced services from the Department.
Over the past three years, USDA has made significant investments in rural America and supported farmers and ranchers. Today the farm economy is thriving, with record income and exports – and the unemployment figure in rural America has fallen faster than in other parts of the country.
But these are tough times. Since 2010, USDA’s budget has been cut by $3 billion dollars – a 12% reduction. To help preserve the success we’re seeing in the countryside, we had to take a close look at the way we do business with less money, a smaller staff, and more complex programs.
Over the past year, USDA has offered early retirement for our staff and substantially reduced our travel and supplies budgets. We took a comprehensive look at our administrative services to find savings in areas like technology and human resources. It was not enough. In order to avoid layoffs or furloughs we looked at our footprint across the country and made plans to close and consolidate more than 250 offices, many of which have only one or two employees.
While this was a tough call, the other option was an interruption in service that results from furloughs and employee layoffs – and we’re committed to avoiding that path. Instead, we have a plan that will create optimal use of USDA’s employees, better results for USDA customers, and greater efficiencies for American taxpayers. You can learn more about it at our website: USDA.gov/StrongerService.
Like families and businesses across the country, USDA cannot continue to operate as we did 50 years ago. The Blueprint allows us to keep our commitment to streamlining services for farmers and ranchers – and making more services available online. It will allow us to innovate, modernize, and be better stewards of the taxpayers’ dollars. It means we’ll build a stronger department to meet the evolving needs of rural communities and the agricultural economy in the 21st century.
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