Tuesday February 7 Ag News

Cornhusker Economics Conferences Set Across Nebraska in February and March

The seventh annual Cornhusker Economics Conference will focus on the ag outlook and management decisions for farmers and ranchers at five locations across the state in late February and early March.  The conference is offered by University of Nebraska-Lincoln Extension and the Department of Agricultural Economics and is sponsored in part by funding from the Nebraska Soybean Board.

The conferences will start on Feb. 28 in Columbus during the day and in Lincoln in the evening. Other conferences will follow on Feb. 29 in Clay Center during the day and North Platte in the evening and will wrap up on March 1 during the day in Alliance. The day sessions in Columbus, Clay Center, and Alliance are scheduled from 10 a.m. to 2:30 p.m. and the evening sessions in Lincoln and North Platte will be from 4:30-9 p.m. (all local times). The conferences will cover a number of key topics affecting farm management and production decisions for 2012.

This year's conferences will feature specialists from UNL Extension and the Department of Agricultural Economics together with experts from Kansas State University, Iowa State University and the Livestock Marketing Information Center in Denver, Colo.

The opening session at each meeting will focus on the agricultural outlook, covering livestock, crops, and land and leasing issues.

Dan O’Brien of Kansas State University will return this year to share his insight on grain and oilseed outlook and risk management decisions in today’s uncertain markets. While market volatility shows the need for sound hedging strategies, concerns about futures market performance and the recent MF Global bankruptcy affecting hedge margin accounts raise questions about the best path ahead for managing market risk. O’Brien will bring his experience and analysis of futures market performance to bear on the issues and discuss implications for producer decisions.

Shane Ellis, livestock marketing specialist at Iowa State University, and Jim Robb, director of the Livestock Marketing Information Center, will discuss the outlook for livestock markets and producer profitability. With outlook for meat demand and continued reductions in cattle supplies, the market fundamentals look strong, but must weigh against grain supplies and feed prices. Ellis and Robb will both bring their expertise to the situation and provide guidance for producer marketing and production decisions in 2012.

The land market has also been moving in the past year and UNL Extension Educators Allan Vyhnalek, Robert Tigner and Tom Holman will use their local knowledge and analysis to discuss land markets and leasing arrangements with implications for producer decisions.

The closing session will feature a focus on agricultural policy and the direction for new farm programs. Brad Lubben, policy specialist, will discuss the policy outlook in Washington and the major policy developments that could affect agriculture in 2011. Then, Lubben will team with UNL Extension educators to discuss specific directions for the new farm bill and implications for farm programs, conservation programs, and risk management decisions.

More information and details on the meetings are available on the web at the Department of Agricultural Economics homepage (http://agecon.unl.edu). Advance registration of $25 is necessary to confirm meeting meals and materials and is available by contacting the local Extension office listed for each location. You can also contact Lubben at 402-472-2235 or any one of the educators listed with the meeting locations for additional information.

Locations, Dates, and Information:
Columbus: Tuesday, Feb. 28, 10 a.m. to 2:30 p.m., Duster's Restaurant, 2804 13th Street. Contact: Allan Vyhnalek, Platte County Extension, 402-563-4901, avyhnalek2@unl.edu
Lincoln: Tuesday, Feb. 28, 4:30 to 9 p.m., Lancaster County Extension Office, 444 Cherrycreek Road, Suite A. Contact: Tom Dorn, Lancaster County Extension, 402-441-7180, tdorn1@unl.edu
Clay Center: Wednesday, Feb. 29, 10 a.m. to 2:30 p.m., Clay County Activities Building, Clay County Fairgrounds, West Johnson Street. Contact: Jennifer Rees, Clay County Extension, 402-762-3644, jrees2@unl.edu
North Platte: Wednesday, Feb. 29, 4:30 to 9 p.m., West Central Research and Extension Center, 402 West State Farm Road. Contact: Randy Saner, Lincoln-McPherson County Extension, 308-532-2683, rsaner2@unl.edu
Alliance: Thursday, March 1, 10 a.m. to 2:30 p.m., Alliance Country Club, 2472 County Road 62. Contact: Tom Holman, Scotts Bluff County Extension, 308-632-1480, tholman1@unl.edu



U.S. Fish and Wildlife Service and National Park Service to Host Public Meetings Regarding Conservation Efforts with Willing Landowners along the Missouri River in Northeast Nebraska and Southeast South Dakota

To increase conservation efforts and recreational opportunities along the Missouri River, the U.S. Fish and Wildlife Service (FWS) and National Park Service (NPS) are proposing to work in partnership with willing landowners and local communities.

Efforts will be focused upon the Missouri River between Ft. Randall Dam to the Running Water Bridge and upstream the Niobrara River to the Spencer Dam.  This area is referred to as the Niobrara Confluence.  The other area, called the Ponca Bluffs, is centered on the Missouri River from Gavins Point Dam to Sioux City, Iowa.

The FWS and NPS will work with local communities and willing landowners to conserve stretches of the Missouri River that have significant natural resource, recreational, or cultural value. The opportunity to preserve, and even improve, important natural river processes and habitats for fish and wildlife would benefit the visitors, neighbors, and local communities of the Niobrara Confluence and Ponca Bluffs areas, now and into the future.  Through a combination of actions along a spectrum from restoration efforts, conservation easements, or land acquisition, the unique nature of the Missouri River would be maintained and in some cases, restored to its former glory.  These efforts would not result in increased regulations or alter dam operations; but provide for increased wildlife habitats, protection of culturally and historically important sites, and improved recreational access.

Individual or group representatives may visit the project website (http://parkplanning.nps.gov/niob-ponca) to learn more or to provide comments.  The FWS and NPS will gather public input as part of public scoping during the month of February. Public scoping comments will be accepted until March 12, 2012.  Received public comments will be considered by the NPS and FWS during development of a Land Protection Plan.  There will be another opportunity to comment on the draft Land Protection Plan in the fall of 2012.

Public meetings regarding the proposal will begin with an open house at 5:30 p.m. local time where individuals can meet one-on-one with the FWS and NPS staff; followed by a short presentation at 6:30 p.m. with time for additional discussion afterwards.  The meetings will be at the following dates and locations:

Tuesday, February 21, 2012
5:30 p.m.-8:00 p.m.
The Outdoor Campus
4500 S. Oxbow Ave.
Sioux Falls, South Dakota

Thursday, February 23, 2012
5:30 p.m.-8:00 p.m.
W.H. Over Museum
1110 Ratingen Street
Vermillion, South Dakota

Friday, February 24, 2012
5:30 p.m.-8:00 p.m.
WFLA Hall
Spruce and Park Avenues
Niobrara, Nebraska



Livestock Master Matrix Passes in 88 Iowa Counties

In January 88 counties notified the Iowa DNR that they plan to evaluate construction permit applications and proposed locations for animal confinements by using the master matrix.

Animal producers in these counties must meet higher standards than other confinement producers who also need a construction permit. They must earn points on the master matrix by choosing a site and using practices that reduce impacts on air, water and the community.

With 11 exceptions, all counties will use the matrix during the next 12 months. The following counties will not use the matrix in 2012: Decatur, Iowa, Jasper, Keokuk, Lee, Mahaska, Osceola, Plymouth, Wapello, Warren and Washington.

Counties that adopt the master matrix can provide more input to producers on site selection, the proposed structures and proposed facility management. Participating counties can also join in DNR site visits to a proposed confinement site.

While all counties may submit comments to the DNR during the review process for permit applications, counties that adopt the master matrix can also appeal approval of a preliminary permit to the Environmental Protection Commission.

The deadline for enrolling in the program is Jan. 31 of each year.

Producers and citizens can obtain more information and view a map of participating counties by looking for preconstruction requirements for permitted confinements at www.iowadnr.gov/afo.

The matrix affects only producers who must get a construction permit for a confinement. Generally, these include proposed construction, expansion or modification of confinement feeding operations with more than 2,500 finishing hogs, 1,000 beef cattle or 715 mature dairy cows.



Federation of State Beef Councils Takes Action during Cattle Industry Convention

The Federation of State Beef Councils, a division of the National Cattlemen’s Beef Association (NCBA), elected officers and discussed key organizational structure during its board meeting Feb. 4, at the 2012 Cattle Industry Convention and NCBA Trade show in Nashville, Tenn.

Elected 2012-13 Federation chairman was Craig Uden, a cow-calf producer and feeder from Elwood, Neb. Richard Gebhart, a Claremore, Okla., cattleman, was elected vice chairman. Uden, who served as Federation vice chairman last year, succeeds David Dick, a cow-calf operator from Sedalia, Mo.

Newly elected to represent the Federation as regional vice presidents on the NCBA executive committee are Garry Wiley, Mich., Region I; Clay Burtrum, Okla., Region IV; and Sid Viebrock, Wash., Region V. They join the existing RVPs: Jennifer Houston, Tenn., Region II; Terri Carstensen, Iowa, Region III; Jane Frost, N.M., Region VI; and Becky Walth, S.D., Region VII. Richard Ayers, a veal producer from Argyle, N.Y., replaces Ray Krones, Indiana, as the Federation’s veal representative to the executive committee.

The Federation also approved eight of its 10 representatives to the Beef Promotion Operating Committee (BPOC), which decides the final national checkoff program plan each year. As Federation chair and vice chair, who are standing BPOC members, Uden and Gebhart will serve, as well as 2012 Federation representatives Jerry Bohn, Kan.; Jerry Effertz, N.D.; Steve Hanson, Neb.; Cevin Jones, Idaho; Irv Petsch, Wyo.; Linda Joy Stovall, Texas; Sid Viebrock, Wash.; and Becky Walth, S.D.

The Federation named its FY 2012 Federation Advisory Council (FAC), comprised of state beef council executives who advise the Federation on a variety of issues and initiatives. New FAC members include Traci Bracco, Idaho; Elizabeth Harsh, Ohio; Heather Buckmaster, Okla.; and Kevin Thielen, Kan., who was also chosen as 2012 FAC vice chairman.  They join the existing FAC members: Ann Wittmann, Wyo., 2012 FAC chairman; Sammy Blossom, Miss.; Jim Handley, Fla; Dina Reitzel Chacon, N.M.; and Richard Wortham, Texas, immediate past chairman.

Discussed in the convention Federation Forum was a proposal that would alter the Joint Committee structure between NCBA and the Cattlemen’s Beef Board (CBB). The proposal, which was approved by the CBB and NCBA during the convention, outlines how joint checkoff committees will function.  A second, more detailed proposal is set to be discussed at the summer 2012 conference in Denver.



Beef Board Elects 2012 Leadership

The Cattlemen’s Beef Board seated new members and elected 2012 officers, as well as members of its Executive Committee and the Beef Promotion Operating Committee, during its annual meeting in Nashville Feb. 4.  During its final meeting at the 2012 Cattle Industry Convention in Nashville, the Beef Board unanimously elected New Mexico seedstock producer Wesley Grau to serve as 2012 chairman of the Board, Arkansas cow-calf producer Weldon Wynn to serve as vice chairman; and Idaho rancher Kim Brackett to fill the  position of Beef Board secretary/treasurer for 2012.

After being appointed by U.S. Secretary of Agriculture Dec. 28, 2011, a total of 29 Board members were seated for service on the Beef Board, after taking the oath of office from USDA Marketing Specialist Craig Shackelford during a CBB meeting on Feb. 2.  New members seated and the states they represent include Thomas Alger, Texas; Patrick Becker, N.D.; Andrew Burtt, importer; Sarah Childs, Fla.; Stephen Edwards, importer; Kim Holzner, importer; Cristobal Hutton, importer; Barbara Jacques, Okla.; Leon Kreisler, Mo.; Paul Looney, Jr., Texas; Stacy McClintock, Kan.; Linda Nielson, Mont.; Perry Owens, Kan.; Lyle Peterson, Mont.; Sugie Sartwelle, Texas; Gary Sharp, S.D.; Leo Sutterfield, Jr., Ark.; Doug Temme, Neb.; Sherry Vinton, Neb.; Richard Winter, Texas; and Terry Wyatt, Okla.  Reappointments and the states they represent include: Hughes Abell, Texas; Kim Brackett, Idaho; Joyce Bupp, Pa.; Wesley Grau, N.M.; Ted Greidanus, Southwest Region; Hank Maxey, Va.; Daniel Smith, Ky.; and Phyllis Snyder, Colo.

NEW BEEF BOARD OFFICER TEAM
Newly elected Beef Board Chairman Wesley Grau is a partner in Grau Charolais Farm and Ranch and also raises wheat. He served as vice chairman of the Beef Board for the first half of 2011 before filling a partial term as CBB chairman during the second half of the year. He is also past president of the New Mexico Cattle Growers Association, past president of the New Mexico Beef Cattle Performance Association, member of the American International Charolais Association and NCBA, and past president of the New Mexico Wheat Growers Association. Wesley has served as chairman of the Operating Committee and CBB Executive Committee, chairman of the Joint Producer Communications Committee in 2010, and previously served on the Joint Advertising Committee and the CBB Administration Subcommittee.

This year’s Beef Board Vice Chairman Weldon Wynn owns Wynn Beefmaster Farms and Wynn Rice and Soybean Farm. In addition, he and his wife own and operate Wynn Insurance Agency. He is an active member of his community and industry, including service on the board of directors of the Pine Bluff National Bank of Star City; former emcee and judge of the National Beef Cook-Off; National Beef Ambassador judge; past president and active member of the Arkansas Cattlemen’s Association; member of the University of Arkansas Animal Science 2000 Advisory Council; past president, treasurer, and fair manager of the Lincoln County Fair, among many others. On the Beef Board, Weldon served as secretary/treasurer during the first half of 2011 before being elected to fill a partial term as vice chairman during the second half of the year. He has also served on the Beef Promotion Operating Committee, the CBB Executive Committee, the Joint Advertising Committee, for which he served as vice chair in 2010, and the Joint Beef Industry Budget Committee.

Newly elected CBB Secretary/Treasurer Kim Brackett is a cow-calf/stocker from Castleford, Idaho. She has been an active member with the Idaho Beef Council, serving as chair, vice chair and treasurer; Idaho Cattle Association, serving as committee and sub-committee chair; and the 71 Livestock Association. Kim was an active member of the Beef Board and the Joint Producer Education Committee during her first term. She was reappointed by the U.S. Secretary of Agriculture in December 2011 to serve a second consecutive three-year term.

CBB EXECUTIVE COMMITTEE
The 12-member CBB Executive Committee includes the Board’s three officers and eight members elected at large. The CBB elected the following members to its 2012 Executive committee: CBB Vice Chairman Weldon Wynn, who will serve as chairman of the Executive Committee; and members Wesley Wynn (CBB chairman); Kim Brackett (CBB secretary/ treasurer); Anne Anderson of Texas; Dean Black of Iowa; Laurie Bryant, an importer; Will Frazee of Iowa; Linda Gilbert of South Dakota; Brian Healey of Oklahoma; Hank Maxey of Virginia; and Eric Smith of Alabama.

The Executive Committee operates under the direction of and within the policies established by the full Board and is responsible for carrying out Beef Board policies and conducting business and making decisions necessary to administer the terms and provisions of the Act and Order between meetings of the full Board.

OPERATING COMMITTEE
The Beef Promotion Operating Committee was created by the Beef Promotion Research Act to help coordinate state and national Beef Checkoff Programs. The 20-person committee includes 10 members of the Cattlemen’s Beef Board, among them the Board’s three officers and seven others elected directly by Beef Board members.

CBB members elected to the 2012 Beef Promotion Operating Committee during the annual meeting in Nashville include: Chairman Wesley Grau; Vice Chairman Weldon Wynn; Secretary/Treasurer Kim Brackett; Joyce Bupp of Pensylvania; Spencer Ellis of Wyoming; Chuck Kiker of Texas; Kristy Lage of Nebraska; Jimmy Maxey of California; John Schafer of Minnesota; and Gary Sharp of South Dakota.



Korean Lifestyle Magazine Profiles Real American Steak

The high-end South Korean lifestyle magazine, Luxury, devoted 12 pages of its current issue to steak, and a significant portion of that special feature focused on U.S. prime beef, dry-aged American beef and restaurants that feature them.

Korean consumers’ perception of U.S. beef is improving, steadily returning to the positive levels of 2003 when American beef was the dominant imported beef. That was evidenced by the fact that five of the seven restaurants spotlighted in Luxury sold U.S. ribeye and striploin steaks in conjunction with domestic (Hanwoo) tenderloins. Two restaurants offered Australian ribeyes.

The taste profile of grain-fed U.S. beef, along with its competitive price, are driving demand for the American imports and helping foster a substantial interest in dry-aged beef.

“U.S. ribeyes and striploins meet the preferred specifications for dry aging,” said Jihae Yang, USMEF-Korea director, who was interviewed for the Luxury article. “Hanwoo beef, which is in high demand from Korean-style barbecue restaurants, is too expensive considering the loss after dry-aging. U.S. beef is the true leader in this category.”

One influential Korean restaurateur and beef expert, Young-sik Park, chief executive officer of SG Dine Hill which operates six high-end restaurants in Seoul, commented in the article that U.S. beef is “nutritionally great,” and referenced a “healthy menu campaign” which recommends that children eat red meat daily.

Similarly, the meat buyer for the upscale Shilla Hotel, Yong-ju Lee, stated his confidence in U.S. beef because the cattle are raised on corn, soybeans and grass, and “vitamin-packed” chilled beef is imported to Korea without preservatives.

“As more Koreans travel around the world, the more familiar they become with premium cuisine,” said USMEF’s Yang. “The trend toward focusing a beef menu on U.S. prime beef started with Goo STK, a Seoul restaurant that made its name by serving only U.S. prime steaks. Now, U.S. beef is rising in the perception of consumers who view it as the centerpiece of a special meal.”

A report issued last week by South Korea’s Rural Economic Institute (KREI) was fairly bullish for U.S. beef consumption in Korea, noting that a January 2012 survey found that 52.3 percent of consumers had purchased U.S. beef compared to 48 percent in 2011 and just 22 percent in 2010. When consumers who purchase U.S. beef were asked what they would cut back on in favor of U.S. beef, about 41 percent said Australian beef and 30 percent said domestic beef.

Per capita beef consumption increased by more than 20 percent in 2011 to 10.7 kg (23.5 pounds). This is a remarkable increase of nearly 60 percent from 2005 and 2006 when U.S. beef was absent from the market.

Through the first 11 months of 2011, U.S. beef exports to South Korea were up 38 percent in volume and 32 percent in value versus 2010, reaching 139,663 metric tons (307.9 million pounds) valued at $618.3 million.



APHIS Discussion of Streamlined Approvals Highlights Meeting of Biotech Working Group

Members of the American Soybean Association’s (ASA) Biotech Working Group met in Washington, D.C. last week to discuss, among other items, a new effort on the part of the USDA’s Animal and Plant Health Inspection Service (APHIS) to streamline the approval process of new biotech traits.

Michael Gregoire, deputy administrator for APHIS’ Biotechnology Regulatory Services Program, spoke before the group comprising soybean farmer leaders and industry stakeholders on his agency’s initiative to increase efficiencies in the regulatory review process for new biotech traits.

“The soybean industry and its farmers have much to gain from biotech innovations that increase yield, improve nutrition, resist disease, offer competition and alternatives in the marketplace, and help in managing weed resistance issues, and we’re lucky to have a seemingly continuous pipeline of these innovations awaiting approval,” said ASA President Steve Wellman, a soybean farmer from Syracuse, Neb. “To hear that APHIS is invested in making the approvals process more efficient is encouraging to both farmers and to biotech innovators.”

Additional presentations at the Biotech Working Group Meeting included an update on the biotech approvals process within the Chinese marketplace by USDA Foreign Agricultural Service’s Mark Petry, as well as a review of the biotech landscape in the European Union. The meeting also included consultations with individual technology companies on their biotech pipelines, the status of regulatory clearances in foreign markets, and stewardship plans for new biotech traits.

Formed by ASA in 2007, the Biotech Working Group comprises farmer-leaders and staff from ASA, the United Soybean Board, the U.S. Soybean Export Council, and the major technology companies that are developing new biotech soybean events.



Sensenbrenner E15 bill just another stall tactic to higher ethanol use

Earlier today, the House Science Committee approved a bill that would require even more study of E15 blends than the millions of miles of testing already conducted by the Dept. of Energy and EPA.  The Renewable Fuels Association President and CEO Bob Dinneen responded to the bill, sponsored by WI Rep. Jim Sensenbrenner (R), with the following statement: 

"With many members of Congress complaining about the federal government impeding the ability of small businesses to create jobs, this bill would inject parochial politics into the scientifically established process of approving new fuels.  In approving E15, the Department of Energy tested vehicles over millions of driving miles - the equivalent of some 4,700 round trips from Washington to Milwaukee.  To suggest more testing is needed is nothing more than a stall tactic that has but one outcome – our continued addiction to oil."

"This bill is a perfect example of Congress trying address a problem that doesn't exist.  Understandably, concerns will be raised any time a new fuel is introduced.  The concerns raised, however, are largely superficial and do not require the intervention of Congress to resolve.  America's ethanol industry has been working with auto companies and fuel suppliers for over a year to address any concerns and misconceptions that persist.  This bill would reverse the progress private industry has already achieved and threaten the job creation that would stem from an increased use of domestic renewable fuels."

The Clean Air Act is very clear as to the method for approving new fuels and fuel additives and has been used successfully to introduce a wide range of fuels including E10 and Ultra Low Sulfur Diesel.  In fact, the approval of E15 for model year 2001 and newer vehicles represented the most exhaustive testing of a new fuel ever conducted.



Additions Bring Expertise, Enthusiasm to NCGA Team

The National Corn Growers Association welcomes Dr. Pam Keck, who joins the organization as director of biofuels programs and business development.  Keck, a multi-faceted scientist and educator, brings more than 20 years of experience in the agricultural and biofuels industry, academia and not-for-profit research to the position.

"Pam is an incredibly valuable addition to our team, and we are excited to be able to utilize her broad knowledge base to further enhance our biofuels program," said NCGA Vice President of Production and Utilization Paul Bertels.  "She is uniquely suited to the position because, in addition to her scientific achievements, Pam also excels as a communicator, thus facilitating the informed discussion and decision-making that are crucial in this area."

Keck most recently contracted with Monsanto, coordinating an outreach program that brought together schools and scientists.  She has previously taught chemistry at both Southern Illinois University, Edwardsville and Lewis and Clark Community College. She has also served as assistant director of workforce development and scientific projects at the National Corn-to-Ethanol Research Center.

Also an author, whose work has appeared in a variety of publications including Science and the Journal of Chemical Education, Keck earned her doctorate in organic chemistry from The Pennsylvania State University.   More recently, she has shared her love of science and education to inspire youth interest by writing her first children's book, Burps Are Chemicals Too!

The Production and Utilization Department will also benefit from the recent addition of Administrative Assistant Maggie Fogerty.  Supporting activities of the Trade Policy and Biotechnology Action Team, Fogerty hit the ground running, having already assisted in the team's recent meeting.

"In just a few weeks, we have clearly seen many examples of how Maggie's can-do attitude and calm competence benefit our team," said Bertels.  "Her ability to handle ever-evolving situations effectively, while maintaining a cheerful, professional demeanor, has already earned her the respect of her colleagues.  We look forward to entering what will certainly be another busy period knowing that we can count on her solid support."

Prior to NCGA, Fogerty worked as a sales assistant at Hartford Life.



Fertilizer Prices Hold Steady

Retail fertilizer prices tracked by DTN continue to show prices plateauing, as has been the case for the last three weeks.  In DTN's weekly retail fertilizer survey for the last week of January, seven of the eight major fertilizers slipped lower compared to a month earlier; however, these drops were fairly slight. DAP had an average price of $663 per ton, MAP $714/ton, urea $553/ton, 10-34-0 $821/ton, anhydrous $786/ton, UAN28 $385/ton and UAN32 $428/ton.  The remaining fertilizer, potash, was slightly higher compared to last month. Potash had an average price of $660/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.60/lb.N, anhydrous $0.48/lb.N, UAN28 $0.69/lb.N and UAN32 $0.67/lb.N.

Three of the eight major fertilizers are continuing to show double-digit increases in price compared to one year earlier. Leading the way higher is 10-34-0. The starter fertilizer skyrocketed in price last year but has fallen back some in recent months. It is now is 25% higher compared to the fifth week of January 2011.  Potash has jumped 15% while urea has increased 13% from a year ago.  Four fertilizers have seen just slight price increases compared to a year earlier. UAN28 is now 9% more, anhydrous 7%, UAN 32% 5% and MAP 2% compared to last year.  The remaining fertilizer, DAP, is now actually lower compared to one year ago. The phosphorus fertilizer is now 1% lower.



Mosaic Cuts Potash Production

The Mosaic Company, Plymouth, Minn., has announced a reduction of up to 20 percent in planned potash production from February through May 2012.  This curtailment will result in lower operating rates at Mosaic's mines, but is not currently expected to result in any employee layoffs or material mine shutdowns.

"Cautious dealer sentiment continues to delay purchases and lower near-term demand for potash," said Jim Prokopanko, president and chief executive officer. "Farmer economics remain strong, and we continue to expect an above average application season in North America and record-setting global potash shipments in 2012. While we are confident fundamentals will ultimately prevail, we've taken steps that reflect the near-term supply and demand balance for potash."

The Mosaic Company is one of the world's leading producers and marketers of concentrated phosphate and potash crop nutrients.  Mosaic is a single-source provider of phosphate and potash fertilizers and feed ingredients for the global agriculture industry.



Celerus: Drought Hits Brazil's Soy
Soy Crop Estimate Falls to 72.04 MMT

Brazil's 2011/12 soybean crop forecast fell to 72.04 million metric tons from 74.4 mmt in early January, as the effects of a prolonged dry spell plays out on the world's second biggest soy crop, grain analysts Celeres said on Monday.  Brazil harvested a record 74.9 mmt of soy last season.

In its seventh survey of the grain belt, Celeres said planted area of soybeans is seen stable from the previous estimate at 25.1 million hectares (62 million acres), up 3.8% from the last season.  The monthly drop in the forecast was based on a sharp decline in yields. Productivity fell 7.3% from a year ago to 2.873 mt a hectare, Celeres estimates. In January yields were seen at 2.969 mt a hectare.

While yields rose against last year in several northeastern soy producing regions, they were unable to totally offset the losses caused by the strong drought in the southern soybean growing states of Parana and Rio Grande do Sul.

Celeres said the soy crop's development in the south is still relatively young, which means rains could stop any further declines in yields.  Weather forecasters Somar say rains are headed for the southern soy states this week, especially in Rio Grande do Sul.

Brazil's 2011/12 corn crop is seen at a record 60.6 mmt, down from the 61.98 mmt forecast in early January, Celeres said.



CWT Assists with 7.2 Million Pounds of Butter and Cheese Export Sales
Cooperatives Working Together (CWT) has accepted 35 requests for export assistance from Bongards, Dairy Farmers of America, Darigold, Foremost Farms, Land O’Lakes, Upstate-Niagara subsidiary O-AT-KA and United Dairymen of Arizona to sell a total of 1,707 metric tons (3.763 million pounds) of Cheddar cheese and 1,547 metric tons (3.411 million pounds) of butter to customers in Asia, Europe, the Middle East and North Africa. The product will be delivered February through June 2012.

In 2012, CWT has assisted member cooperatives in making export sales of Cheddar, Monterey Jack and Gouda cheese totaling 17.0 million pounds and butter totaling 14.4 million pounds to 14 countries on four continents.

Assisting CWT members through the Export Assistance program positively impacts producer milk prices in the short-term by reducing inventories that overhang the market and depress cheese prices. In the long-term, CWT’s Export Assistance program helps member cooperatives gain and maintain market share, thus expanding the demand for U.S. dairy products and the farm milk that produces them.

CWT will pay export bonuses to the bidders only when delivery of the product is verified by the submission of the required documentation.



USDA Moves Analysts
Nine New Regional Centers to Focus on In-Depth, Cheaper Analysis

The Agriculture Department, the primary source of U.S. crop and livestock data, will create nine regional centers in a move to provide more in-depth analysis while saving money, said Agriculture Secretary Tom Vilsack on Monday.

The centers, due to open in 2013, will be staffed by analysts who now work in state offices. The centers are the latest change in USDA reporting as it adjusts to federal budget cuts. USDA has eliminated half a dozen reports in the past year and said it would not report as often on vegetables and 13 fruit crops.

Best-known of USDA reports are the monthly crop reports that estimate U.S. crop output and a companion report that forecasts crop output and consumption worldwide. Futures markets may soar or plunge depending on USDA's forecasts. USDA statistics are the final, official word on U.S. agriculture.

"We're going to remain the gold standard," said Vilsack in announcing the regional centers. He said they "will give us the opportunity to dive more deeply into data" and provide more accurate data.

Traders and analysts grumble perennially over USDA's data, which may disagree with their own estimates. Complaints are louder nowadays when grain supplies are tight and market prices are volatile. Some question if USDA is losing its edge. A small change in a government forecast can have large impact.

USDA's statistical agency produces roughly 500 reports annually, from counting the cattle and hog populations to estimating plantings of dozens or crops, the size of their harvests and how many bushels of corn or soybeans are in U.S. grain bins.

Congress allotted $158.6 million for the National Agricultural Statistics Service this fiscal year, $7 million less than USDA requested but a 1% increase from the previous year, when funding was cut by 3% in an effort to reduce the federal deficit.

Besides budget cuts, USDA is going through a large turnover in staff. Some 7,000 workers retired or accepted buy-outs in six months, said Vilsack, and half of the workforce of 100,000 is within five years of retirement age.

USDA says the regional centers would save money in the long run, will alleviate staffing shortages in some locations, save money on rent and allow enhanced research, improved software and better security. Officials did not say how many jobs were affected.



Orlando Biodiesel Vehicle Showcase Features Orange County Choppers

An Oklahoma soybean farmer, a tattooed biker from New York, and a NASA transportation officer may sound like a joke set-up. But when it comes to green these guys don't kid around. Their stories and some amazing new biodiesel-powered vehicles are being showcased this week at the 2012 National Biodiesel Conference & Expo in Orlando.

Attendees at the biggest biodiesel event of the year were witness to history in the making today as Paul Teutul, Sr., the iconic founder of New York's custom motorcycle shop Orange County Choppers, rumbled into the expo hall of the Gaylord Palms convention center astride his newest "American Chopper", fueled by America's Advanced Biofuel® - clean, domestically produced biodiesel.

CIMA Green, a New Jersey based physical energy commodity trading company, partnered with Paul Sr. and Orange County Choppers to create a high performance motorcycle with the capability to run on a B20 (20 percent biodiesel / 80 percent petroleum diesel) fuel blend.  The motorcycle will be featured on an upcoming episode of the hit Discovery Channel show American Chopper in March, followed by appearances at a number of other events throughout the year to showcase the power and performance of biodiesel in this custom-built bike with production-scale aspirations.

The adrenaline rush continued as Brent Hajek, an Oklahoma soybean farmer and owner of Hajek Motorsports, took the stage to showcase his land speed record-setting Ford F250 Super Duty pickup. Brent and his truck set two new land speed records at the Bonneville Salt Flats in Utah last summer: first achieving a record speed of 171.123 mph running on regular diesel, and then smashing the previous record for a B20 powered vehicle by clocking an amazing 182 mph on the biodiesel blend. Hajek set out to prove that B20 isn't only cleaner and greener, but it has the ability to perform better than petroleum diesel even under the most demanding conditions.  Or as Brent likes to say, "Just because it's 'green' doesn't mean it's slow!" 

Representatives from NASA and Florida Power & Light were also on-hand to tout how some of the greenest fleets in Florida depend on B20 biodiesel blends to get the job done in vehicles such as NASA's H1 Hummer and FP&L's bucket truck from International.  Ford Motor Company also showcased its brand-new 2012 Ford F250 Super Duty pickup - the workhorse for America's fleets.  All of Ford's 2011 and forward model Super Duty diesel trucks have been approved for use with B20 biodiesel blends.      

Rounding out the display were three vehicles demonstrating the promise and benefits of using biodiesel in diesel-electric hybrid vehicles.  Hino Trucks, a Toyota Group Company, featured its groundbreaking new 2012 Hino 195h medium-duty truck, one of the first hybrid trucks approved for use with B20 biodiesel blends.  Meanwhile a team of engineers from the non-profit group BDCOTSRUS revealed their Progressive Automotive X-Prize contender - a Diesel Electric eXperimental Vehicle (DEX-V) built from commercial off-the-shelf parts and capable of reaching speeds higher than 90 mph while achieving fuel economy of greater than 100 miles per gallon operating on B20 or higher biodiesel blends.  And finally, the future of biodiesel took on a luxurious look as CIMA Green presented its next major biodiesel project - the awe-inspiring Fisker Karma hybrid electric sports car, due for a diesel-electric option later this year.

National Biodiesel Board Technical Director Steve Howell summed up the event by saying, "Never before have we seen such an exciting and diverse collection of biodiesel-powered vehicles available for fleets and consumers who want maximum performance while maintaining minimum impact on the environment.  And the fact that all of the diesel vehicles showcased here today are now approved for use with B20 biodiesel blends is a testament to the great advances in high quality fuel production made by the biodiesel industry over the past several years.  We are excited to see what promise the future will hold for biodiesel and the next generation of diesel vehicles."