Tuesday January 3 Ag News

Great Nebraska Tractor Ride 2011 on RFD-TV

The NEW 2011 Great Nebraska Tractor Ride will air on RFD - TV for one hour several times this week.  Scheduled times are...
Wednesday January 4     2:00pm Central Time
Thursday January 5         12:00am Central Time
Friday January 6             12:00 noon Central Time

There is the possibility of more times in the future.  Also, it's labeled as Classic Tractor Fever.

Three hours of ADDITIONAL unedited video footage is available on the two DVD set with additional interviews with the Tractor Riders.  Plus a 2 1/2 minute highlight video.  An order form for listeners is available at www.nebraskatractorride.com under Merchandise.  Enjoy viewing! 



Nebraska Soybean Board Announces Call for Candidates in Districts 1, 3 and 6

There are three district seats on the Nebraska Soybean Board (NSB) eligible for election this year. Soybean producers in Districts 1, 3 and 6 are invited to run for election to the Nebraska Soybean Board by filing a candidacy petition by the April 15, 2012 deadline. The election of Board Members will be conducted via direct-mail ballots and candidate information will be provided to all producers residing within the district in which an election is to be held.

District seats open are:
District 1: Counties of Antelope, Boyd, Cedar, Holt, Knox, Madison and Pierce. 
District 3: Counties of Butler, Colfax, Dodge, Douglas, Sarpy, Saunders and Washington.
District 6: Counties of Fillmore, Jefferson, Gage, Saline, Seward and Thayer.

Candidates for the NSB seats must be:
• A Resident of Nebraska
• 21 years of age or older
• Soybean producer in Nebraska for at least five previous years

NSB Board Members receive no salary but are reimbursed for expenses incurred while carrying out Board business and will serve a three-year term that would begin October 1, 2012.  Prospective candidates must collect the signatures of 50 soybean producers in their district using an official Nebraska Soybean Board Candidacy Petition and return such petition to the Nebraska Soybean Board office on or before April 15, 2012, to be eligible for placement on the ballot. To obtain a candidacy petition, contact Victor Bohuslavsky at the Nebraska Soybean Board by calling 402-432-5720.



Seeking Candidates for Position on the United Soybean Board

The Nebraska Soybean Board (NSB) is seeking candidates to fill a United Soybean Board (USB) Member position.  If you are an interested soybean farmer, please contact the NSB office.

USB is made up of 69 farmer-members who oversee the investments of the soybean checkoff on behalf of all U.S. soybean farmers. Checkoff funds are invested in the areas of animal utilization, human utilization, industrial utilization, industry relations, market access and supply. As stipulated in the Soybean Promotion, Research and Consumer Information Act, USDA’s Agricultural Marketing Service has oversight responsibilities for USB and the soybean checkoff.

USB Members receive no compensation but are reimbursed for expenses incurred while carrying out Board business.  USB Members serve three-year terms.

This position is open to all soybean farmers in Nebraska. NSB will nominate two candidates and the final appointment will be made by the USDA Secretary of Agriculture.  The USDA has a policy that membership on USDA boards and committees is open to all individuals without regard to race, color, national origin, gender, religion, age, disability, political beliefs, sexual orientation and marital or family status. 

Anyone interested in applying needs to meet the following criteria:
Be involved in a farming operation that raises soybeans.
Be a resident of Nebraska.
Be at least 21 years of age.

For more information, please contact Victor Bohuslavsky at 402-432-5720, before the March 1, 2012 deadline.  Interested candidates will need to submit a personal biography before March 1, 2012.   This can be mailed to:  Nebraska Soybean Board, 3815 Touzalin Ave., Ste. 101, Lincoln, NE 68507.



Secretary Vilsack Announces Cattlemens Beef Board Appointments

Agriculture Secretary Thomas J. Vilsack today announced 29 appointments to the Cattlemen’s Beef Promotion and Research Board. All appointees will serve 3-year terms.  “These appointees represent a cross section of the beef industry and I am confident that beef producers and importers of cattle, beef and beef products will be well served by them," said Vilsack.

Newly appointed members representing cattle producers are: Leo C. Sutterfield, Jr., Ark.; Phyllis K. Snyder, Colo.; Sarah K. Childs, Fla.; Kimberly Brackett, Idaho; Stacy M. McClintock and Perry L. Owens, Kan.; Daniel C. Smith, Ky.; Leon Kreisler, Mo.; Lyle V. Peterson and Linda M. Nielsen, Mont.; Douglas A. Temme and Sherry A. Vinton, Neb.; Wesley L. Grau, N.M.; Patrick L. Becker, N.D.; Terry L. Wyatt and Barbara A. Jacques, Okla.; Joyce A. Bupp, Pa.; Gerald R. Sharp, S.D.; Ted A. Greidanus, Southwest Unit; Richard A. Winter, Paul H. Looney, Jr., G. Hughes Abell, Lavina G. Sartwell, and Thomas R. Alger, Texas; and Frank H. Maxey, Jr., Va.

Newly appointed members representing importers are: Andrew N. Burtt, Va.; Stephen K. Edwards, Va.; Cristobal J. Hutton, Ill.; and Joakim A. Holzner, Colo.



Hay Markets Will Continue to Be Reported

The USDA Agriculture Marketing Service has reversed its decision to stop issuing hay market reports. Earlier this year AMS targeted reports from several hay markets that affect Iowa producers, such as those at Rock Valley and Maurice as ones they would no longer provide after last week, reports the Iowa Cattlemen's Association. The proposed move was going to be made in response to budget cuts, although none of the positions working on those reports were to be eliminated.

Thanks to the response from many Iowa producers who called their members of Congress, the USDA has reversed the decision, and now will continue to issue the reports.

"Cattle producers need those reports, especially now," said Kent Pruismann of Rock Valley. Pruismann noted that the drought in the southern U.S. has driven hay prices higher than they'd normally be. Pruismann is a customer of the Rock Valley Hay Auction, which has been selling hay and straw for over 60 years.

Paul McGill, the owner/manager of Rock Valley Hay Auction, gave credit to the producers who contacted their congressmen to request that all hay markets continue to be reported. "It worked!" he said. McGill's customers come primarily from four states: Iowa, South Dakota, Minnesota and Nebraska. He provided contact information of congress members to his customers for making those phone calls.

McGill also made sure to thank those who work for USDA Market News. "We appreciate and value their hard work," he said.

The Rock Valley Hay Auction has average annual sales of 4,000 loads.



Federal Judge Finds California's Low Carbon Fuel Standard Unconstitutional

A judge in Federal District Court in Fresno, California, today sided with America's ethanol industry in ruling that the State of California's Low Carbon Fuel Standard (LCFS) is unconstitutional.  Judge Lawrence J. O'Neill agreed with the arguments that the LCFS is in violation of the Commerce Clause the U.S. Constitution.

In a joint statement, RFA President and CEO Bob Dinneen and Growth Energy CEO Tom Buis said: "The state of California overreached in creating its low carbon fuel standard by making it unconstitutionally punitive for farmers and ethanol producers outside of the state's border. With this ruling, it is our hope that the California regulators will come back to the table to work on a thoughtful, fair, and ultimately achievable strategy for improving our environment by incenting the growth and evolution of American renewable fuels." 

The groups filed their suit on December 24, 2009 and asserted that the California LCFS violates the Commerce Clause by seeking to regulate farming and ethanol production practices in other states.  The Commerce Clause specifically forbids state laws that discriminate against out-of-state goods and that regulate out-of-state conduct.  With its original filing, the groups noted, "The LCFS imposes excessive burdens on the entire domestic ethanol industry while providing no benefit to Californians. In fact, in disadvantaging low-carbon, domestic ethanol, the LCFS denies the people of California a genuine opportunity to clean their air, create jobs, and strengthen their economic and national security. One state cannot dictate policy for all the others, yet that is precisely what California has aimed to do through a poorly conceived and, frankly, unconstitutional LCFS."

On this claim the Court found that the LCFS discriminates against out-of-state corn-derived ethanol and impermissibly regulates extraterritorial conduct.   As a result, the Court issued an injunction. Judge O'Neill also ruled that CARB failed to establish that there are no alternative methods to advance its goals of reducing GHG emissions to combat global warming.

The ruling allows CARB to appeal Judge O'Neill's decision immediately to the U.S. Court of Appeals for the 9th Circuit.  RFA and Growth Energy will defend the Judge's decision that the LCFS is unconstitutional in any appeal that may be filed by CARB.



U.S. Corn Mission Sees Potential in Vietnam

Corn Mission to VietnamAs the entrepreneurial spirit in Vietnam continues its rapid growth, U.S. farmers see increasing potential in this rapidly growing market. During a recent mission to the country, organized by the U.S. Grains Council, participants saw first-hand the opportunities in this market while also learning the importance of a carefully nuanced approach to the expansion of U.S. agricultural exports in this region.

The nine team members, all of which represent state corn marketing groups, met with international customers and key foreign government officials with whom they shared insight into the U.S. corn supply and quality in 2011. Vietnam, which has the fastest growing corn market in Asia, currently fills its corn needs with domestically grown crop and imports from nearby countries, but the group left meetings encouraged that this market has the potential to import U.S. corn.

"The dramatically changing consumer habits will increase grain demand in Vietnam. We need to continue to educate Vietnamese buyers and farmers on benefits of buying from the United States," said Corn Marketing Program of Michigan President Pat Feldpausch, who participated in the mission. "The United States has a dependable system that provides transparency and risk management. We are a consistent supplier and buyers get better value for their purchases. Buying corn from nearby countries or from Ukraine is a risk. You may get a bargain but it's a gamble."

While there, the delegation attended a Council seminar conducted by USGC Consultant Dr. Budi Tangendjaja on the use of U.S. distillers dried grains with solubles at a local feed mill.

"Vietnam is an agile user of U.S. DDGS," said Ohio Corn Marketing Program Vice Chairman Paul Herringshaw following the seminar. "It's a good product that helps every ration. It's a great source of protein, and it's replacing Indian soybean meal and other competitive ingredients. Still we need to continue to educate the Vietnamese buyers on the numerous benefits of DDG to increase the volume moving into the country."

In 2010, Vietnam became the 15th largest market for U.S. agricultural products. U.S. agricultural exports to Vietnam grew fivefold from $216 million in 2006 to $1.3 billion in 2010. Vietnam is the 8th largest market for U.S. feedstuffs, doubling over the past two years and valued at $151 million in 2010.



The 2012 Crystal Ball - 5 Ethanol Stories to Watch in the Year Ahead

2011 was an exciting year for American ethanol production.  Evolutions in the marketplace, advancements in technology, and progress in policy have all set the stage for a new era in American ethanol production.   Gone is the tax incentive that helped build the industry and then was allowed to expire after it had served its purpose.  Also gone is the tariff on imported ethanol.  Still in place, however, are the Renewable Fuel Standard (RFS) and a marketplace that is now comprised of 10 percent ethanol and growing.

With this backdrop, here are five stories to watch for in 2012, in the humble opinion of the Renewable Fuels Association:

1. First commercial availability of E15 blends for MY2001 and newer vehicles.  The RFA is working very hard to finalize federal requirements to certify E15 blends.  Once completed, getting E15 blends into the marketplace becomes a state-by-state march, with some states like Iowa and Illinois ready to go as soon as the federal requirements are completed.  When E15 gallons are first legally available is still up in the air, but we are betting it happens in the first half of 2012.

2. Free and fair trade of ethanol.  In addition to being the world’s largest producer, consumer, and exporter of ethanol, American ethanol producers are also the lowest cost producer.  With this emergence, new challenges from ethanol interests in other nations have arisen.  Whether it is the European Union anti-dumping investigation or the vacillating ethanol policies in Brazil, a fair resolution to trade challenges will be important to the continued growth and evolution of domestic ethanol production.

3. “You want the truth?  You can’t handle the truth!”  The upcoming year promises to see a great deal of legal activity surrounding American ethanol use.  The recent ruling by a federal judge that California’s Low Carbon Fuel Standard (LCFS) is unconstitutional will be appealed.  And, arguments in the oil/food processing/environmental lobbying industry lawsuit against EPA’s approval of E15 have yet to be heard.  All of this, as well as international litigation, promises to keep legal beagles busy in the year and years to come.

4. Wave on wave of RFS challenges.  The conventional wisdom is Congress will accomplish even less in 2012 than it did last year – with it being an election year and all.  While this may prove to be true, it will not stop those who oppose American renewable fuels from seeking to dismantle the RFS.  We expect the barrage of unsubstantiated attacks on the RFS to continue and even intensify as the tax credit that long served as the boogeyman for anti-ethanol interests has expired.

5. Answering cellulosic ethanol challengers.  Construction is slated to begin on commercial scale cellulosic ethanol biorefineries with production to follow in early 2013.  These facilities would be the first commercial-scale project of their kind in the world.  In order to assure these efforts are successful, Congress must renew key tax provisions for cellulosic ethanol producers before they expire at year’s end.  The RFA, and its partner organization, the Advanced Ethanol Council, will make extending these policies a top legislative priority. 

Obviously, there are a host of issues with regard to America’s ethanol and energy sector that will deserve our attention.  Eliminating unnecessary subsidies for the petroleum industry and accurately accounting for carbon emissions from transportation fuels are good examples.  But we believe these five storylines will have the most lasting impact on ethanol production in the U.S.



USDA Announces Commodity Credit Corporation Lending Rates for January 2012

The U.S. Department of Agriculture's Commodity Credit Corporation (CCC) today announced interest rates for January 2012. The CCC borrowing rate-based charge for January 2012 is 0.125 percent, unchanged from 0.125 in December 2011. For 1996 and subsequent crop year commodity and marketing assistance loans, the interest rate for loans disbursed during January 2012 is 1.125 percent, unchanged from 1.125 in December 2011.

In accordance with the 2008 Farm Bill, interest rates for Farm Storage Facility Loans approved for January 2012 are as follows, 1.375 percent with seven-year loan terms, down from 1.500 in December 2011; 2.000 percent with 10-year loan terms, down from 2.125 in December 2011 and; 2.250 percent with 12-year loan terms, down from 2.375 percent in December 2011.



December Farm Prices Received Index Declined 8 Points

The preliminary All Farm Products Index of Prices Received by Farmers in December, at 176 percent, based on 1990-1992=100, decreased 8 points (4.3 percent) from November. The Crop Index is down 15 points (7.3 percent) but the Livestock Index increased 1 point (0.6 percent). Producers received lower prices for corn, soybeans, wheat, and lettuce and higher prices for eggs, broilers, cattle, and broccoli. In addition to prices, the overall index is also affected by the seasonal change based on a 3-year average mix of commodities producers sell. Increased monthly movement of wheat, milk, broilers, and hay offset the decreased marketing of corn, soybeans, cattle, and grapes.  The preliminary All Farm Products Index is up 23 points (15 percent) from December 2010. The Food Commodities Index, at 168, decreased 4 points (2.3 percent) from last month but increased 20 points (14 percent) from December 2010.

Prices Paid Index Down 1 Point
The December Index of Prices Paid for Commodities and Services, Interest, Taxes, and Farm Wage Rates (PPITW) is 205 percent of the 1990-1992 average. The index is down 1 point (0.5 percent) from November but 16 points above (8.5 percent) December 2010. Lower prices in December for feed grains, complete feeds, diesel, and gasoline more than offset higher prices for feeder pigs, mixed fertilizer, supplements, and feeder cattle.

Prices Received by Farmers
All Crops:  The December index, at 191, decreased 7.3 percent from November but is 12 percent above December 2010. Index decreases for feed grains & hay, oilseeds, and fruits & nuts more than offset index increases for potatoes & dry beans and upland cotton.

Food grains: The December index, at 217, is 7.7 percent below the previous month but 1.9 percent above a year ago. The December all wheat price, at $6.45 per bushel, is down 81 cents from November but 1 cent above December 2010.

Feed grains & hay: The December index, at 238, is down 5.9 percent from last month but 18 percent above a year ago. The corn price, at $5.44 per bushel, is down 40 cents from last month but 62 cents above December 2010. The all hay price, at $177 per ton, is up $1.00 from November and $66.00 from last December. Sorghum grain, at $10.10 per cwt, is 60 cents below November but $1.31 above December last year.

Cotton, Upland: The December index, at 155, is up 1.3 percent from November and 16 percent above last year. The December price, at 93.7 cents per pound, is up 1.2 cents from the previous month and 12.5 cents above last December.

Oilseeds: The December index, at 206, is down 4.2 percent from November but 3.5 percent higher than December 2010. The soybean price, at $11.10 per bushel, decreased 60 cents from November and is 50 cents below December 2010.

Livestock and Products
The December index, at 158, is 0.6 percent above last month and 18 percent higher than December 2010. Compared with a year ago, prices are higher for cattle, milk, hogs, eggs, calves, turkeys, and broilers.

Meat animals: The December index, at 158, is unchanged from last month but 24 percent higher than last year. The December hog price, at $64.00 per cwt, is down 40 cents from November but $11.70 higher than a year ago. The December beef cattle price of $121 per cwt is up $1.00 from last month and $22.90 higher than December 2010.

Dairy products: The December index, at 152, is down 2.6 percent from a month ago but 19 percent higher than December last year. The December all milk price of $19.80 per cwt is 60 cents less than last month but $3.10 higher than December 2010.

Poultry & eggs: The December index, at 163, is up 5.8 percent from November and a year ago. The December market egg price, at $1.10 per dozen, increased 23.8 cents from November and is 18.1 cents above December 2010. The December broiler price, at 47.0 cents per pound, is up 2.0 cents from November and 1.0 cent above a year ago. The December turkey price, at 75.4 cents per pound, is down 2.6 cents from last month but up 7.7 cents from a year earlier.



November 2011 Dairy Product Production Highlights

Total cheese output (excluding cottage cheese) was 886 million pounds, 0.3 percent above November 2010 but 1.2 percent below October 2011.  Italian type cheese production totaled 383 million pounds, 0.6 percent below November 2010 but 0.1 percent above October 2011.  American type cheese production totaled 348 million pounds, 0.7 percent above November 2010 but 1.3 percent below October 2011.  Butter production was 153 million pounds, 14.2 percent above November 2010 and 4.4 percent above October 2011.

Dry milk powders  (comparisons with November 2010)
Nonfat dry milk, human - 120 million pounds, up 2.9 percent.
Skim milk powders - 39.6 million pounds, up 106.1 percent.

Whey products  (comparisons with November 2010)
Dry whey, total - 77.5 million pounds, down 2.5 percent.
Lactose, human and animal - 80.0 million pounds, up 5.1 percent.
Whey protein concentrate, total - 36.2 million pounds, up 3.5 percent.

Frozen products  (comparisons with November 2010)
Ice cream, regular (hard) - 53.1 million gallons, up 4.2 percent.
Ice cream, lowfat (total) - 26.1 million gallons, up 12.2 percent.
Sherbet (hard) - 2.43 million gallons, down 9.0 percent.
Frozen yogurt (total) - 3.25 million gallons, down slightly.



Showers Ease Stress On Some Of Brazil's Southern Soybean, Corn

Light showers fell on some of the dry soybean and corn fields of southern Brazil over the weekend, refreshing the crops.  Around an inch of rain fell on parts of western Parana and northern Rio Grande do Sul on Saturday, but missed key regions in northwestern Rio Grande do Sul, according to the local Somar Meteorologia weather service.  However, no further rain is forecast for the south this week and the six- to ten-day forecast promises little rain.

Despite the recent concerns about dry weather in the south, no alteration was made to two major crop estimates released Monday.  Celeres maintained its 2011-12 soybean crop forecast at 75.6 million metric tons, marginally higher than the 75.0 mmt produced last year, despite the stress caused by a dry December in Parana and, to some extent, in Rio Grande do Sul.  Meanwhile, ABIOVE, the Brazilian soy crushers association, held its forecast at 74.6 mmt, up from its more conservative 2010-11 crop number of 74.3 mmt.

Brazil's Southernmost State Sees Mounting Corn Damage
Brazil's southernmost state of Rio Grande do Sul could have lost up to 40% of its summer corn crop because of the dry weather that has plagued planting regions since November, according to Emater, the state farm research bureau.  Forecasters were pegging Brazil's 2011-12 corn production at up to 63 mmt, between the summer and the subsequent winter crops, going into December. These numbers will likely be reduced across the board in January.



FAO: Food Prices May Ease in 2012

Prices of some foods may ease slightly in 2012 due to a slowing global economy but are unlikely to drop drastically from the high levels reached last year, the new director-general of the U.N.'s Food and Agriculture Organization said on Tuesday.

Jose Graziano da Silva, the Brazilian who replaced Senegal's Jacques Diouf at the helm of the FAO at the start of 2012, said volatility in food markets was likely to continue and that more people would be at risk of hunger due to economic instability.

"Prices will not be going up as in the last two to three years but will also not drop down. There may be some reductions but not so drastic, in the short term," Graziano da Silva told a news conference in Rome.

"Volatility will remain, that is clear," he said.

Global food prices measured by the FAO hit a peak last February but have been falling since June as crops have improved and concerns about global economic turmoil have reined in demand growth.

High food prices have helped fuel inflation and contributed to the civil unrest which created the so-called Arab Spring last year.

Graziano da Silva said he did not expect the economic slowdown in Europe to impact funding for FAO projects, because the amount countries donated was such a small proportion of gross domestic product that they were unlikely to cut it.

But he said the slowdown was likely to increase the number of people at risk of hunger in the world, which the organization estimated at 925 million people in 2010.

"We will have more work to do, with more people hungry, more people unemployed, and we will need new ways to assist them," he said, as he began a term of three and a half years.