Wednesday February 1 Ag News

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.

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.  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

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.   Interested candidates need to submit a USDA Background Information Form before the March 1, 2012 deadline.

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 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.

To obtain a USDA Background Information Form, please contact Victor Bohuslavsky at 402-432-5720.   Complete and return the form to the Nebraska Soybean Board, 3815 Touzalin Ave., Ste. 101, Lincoln, NE 68507, before the March 1, 2012 deadline.



NEBRASKA DELEGATON ANNOUNCES 2012 NEBRASKA BREAKFAST SCHEDULE

Nebraska’s congressional delegation announced this year’s schedule for the Nebraska Breakfast, the gathering held each Wednesday Congress is in session for Nebraskans to meet with members of the delegation.

“We’re pleased to kick off another year of this great tradition and look forward to the give-and-take these breakfasts offer,” said Senators Ben Nelson and Mike Johanns, and Reps. Lee Terry, Jeff Fortenberry and Adrian Smith. “Nebraskans have a chance to introduce themselves, tell us why they are in Washington, and what issues are of particular concern to them. All five members of the delegation are able to respond to their issues, tell them what we’re working on that particular week and offer some insight as to what they might expect.”

The 2012 Nebraska Breakfasts, with Nelson serving as host, will be held on:
February:   1, 8, 15, 29
March:        7, 21, 28
April:          18, 25
May:           9, 16
June:           6, 20, 27
July:            11, 18, 25
August:       1
September: 12

The Nebraska Breakfast originated in 1943. It was the idea of U.S. Senator Hugh Butler, who wanted to meet informally each week to discuss legislation with other members of the Nebraska Congressional delegation. They began inviting guests to the weekly gatherings, and soon a tradition was born.

The Nebraska Breakfast, now in its sixth decade, is the oldest and only ongoing state gathering for constituents on Capitol Hill. Every Wednesday when the House and Senate are both in session, Nebraskans can meet and visit with their delegation.

The breakfast is usually held in the Dirksen Senate Buffet on the "B" level of the Dirksen Senate Office Building at 8:00 a.m.  Nebraskans can make a reservation to attend by contacting any of the delegation member’s offices, or by visiting their websites:
Senator Nelson:  202-224-6551;  Bennelson.senate.gov
Senator Johanns: 202-224-4224; Johanns.senate.gov
Rep. Terry:         202-225-4155;  Leeterry.house.gov
Rep. Fortenberry 202-225-4806; Fortenberry.house.gov
Rep. Smith:          202-225-6435; Adriansmith.house.gov



Labor Dept. Changes Child Labor Plan

Under pressure from farm groups, the Labor Department has agreed to modify a plan that's intended to keep children away from some of the most dangerous farm jobs.

The proposal now will include broader exemptions for children whose parents are part owners or operators of farms, or have a substantial interest in a farm partnership or corporation, officials said Wednesday. The rules would ban children younger than 16 from using most power-driven equipment and prevent those younger than 18 from working in feed lots, grain bins and stockyards.

Farm groups had complained that the initial rules -- proposed last year -- would upset traditions where children often work alongside their parents and relatives to learn how a farm operates.

The rule's original language exempted youths only on farms wholly owned or operated by their parents, but did not include thousands of farms owned by closely held corporations or partnerships of family members and other relatives.

Labor Secretary Hilda Solis said her agency would work with the Agriculture Department to ensure that the rules reflect the concerns of rural communities.

"The Department of Labor appreciates and respects the role of parents in raising their children and assigning tasks and chores to their children on farms," Solis said in a statement.

American Farm Bureau President Bob Stallman called the decision a positive step, but predicted the rules would still have "a detrimental effect on family farms." He said they would create an even tighter supply of farm labor that is already in short supply.

"Laws and regulations need to be sensible and within reason, not prohibiting teenagers from performing simple everyday farm functions like operating a battery-powered screwdriver," Stallman said.

Labor officials say their goal is to better protect children who are more vulnerable to injury when performing tasks like driving tractors. The fatality rate for farm workers aged 15 to 17 is four times higher than in non-farm industries, according to a study from the National Institute for Occupational Safety and Health. The study found that 74 percent of children under age 15 who were killed on the job from 2003 to 2010 were employed in agriculture.

The Labor Department estimates the rule would affect fewer than 56,000 workers.

Agriculture Secretary Tom Vilsack said the decision to broaden exemptions show the Labor Department listened to the nation's farmers.

"This announcement and the additional opportunity for comment represent a common-sense approach to strengthen our agricultural economy while keeping farm kids safe," Vilsack said.

More than 30 lawmakers from farm states had called on the department to rescind the rules, saying they would have a negative impact on rural employers and interfere with parents' ability to train the next generation of farmers.

One of those lawmakers, Kansas Republican Sen. Jerry Moran, called the decision Wednesday "promising news" but said the overall proposal remains "a threat to the future of agriculture." He said the new rules would prohibit children from performing common farm tasks like rounding up cattle on horseback, operating a tractor, or cleaning out stalls with a shovel and wheelbarrow.

Solis said the Labor Department would propose the modified rules this summer and offer a separate comment period on those changes. The agency will continue to review more than 18,000 comments it has already received.

Until the new exemption is made final, the Labor Department's Wage and Hour Division will apply current laws that ban children from performing certain hazardous occupations.



USDA Announces CRP General Sign-up

Acting Under Secretary for Farm and Foreign Agricultural Services (FFAS) Michael Scuse announced today that the U.S. Department of Agriculture (USDA) will conduct a four-week Conservation Reserve Program (CRP) general signup, beginning on March 12 and ending on April 6. CRP has a 25-year legacy of successfully protecting the nation's natural resources through voluntary participation, while providing significant economic and environmental benefits to rural communities across the United States.

"It is USDA's goal to ensure that we use CRP to address our most critical resource issues," said Scuse. "CRP is an important program for protecting our most environmentally sensitive lands from erosion and sedimentation, and for ensuring the sustainability of our groundwater, lakes, rivers, ponds and streams. As always, we expect strong competition to enroll acres into CRP, and we urge interested producers to maximize their environmental benefits and to make cost-effective offers."

CRP is a voluntary program available to agricultural producers to help them use environmentally sensitive land for conservation benefits. Producers enrolled in CRP plant long-term, resource-conserving covers to improve the quality of water, control soil erosion and develop wildlife habitat. In return, USDA provides participants with rental payments and cost-share assistance. Contract duration is between 10 and 15 years. Producers with expiring contracts and producers with environmentally sensitive land are encouraged to evaluate their options under CRP. Producers also are encouraged to look into CRP's other enrollment opportunities offered on a continuous, non-competitive, signup basis.

Currently, about 30 million acres are enrolled in CRP; and contracts on an estimated 6.5 million acres will expire on Sept. 30, 2012.

Offers for CRP contracts are ranked according to the Environmental Benefits Index (EBI). USDA's Farm Service Agency (FSA) collects data for each of the EBI factors based on the relative environmental benefits for the land offered. Each eligible offer is ranked in comparison to all other offers and selections made from that ranking. FSA uses the following EBI factors to assess the environmental benefits for the land offered:
-    Wildlife habitat benefits resulting from covers on contract acreage;
-    Water quality benefits from reduced erosion, runoff and leaching;
-    On-farm benefits from reduced erosion;
-    Benefits that will likely endure beyond the contract period;
-    Air quality benefits from reduced wind erosion; and
-    Cost.

Over the past 25 years, farmers, ranchers, conservationists, hunters, fishermen and other outdoor enthusiasts have made CRP the largest and one of the most important in USDA's conservation portfolio. CRP continues to make major contributions to national efforts to improve water and air quality, prevent soil erosion by protecting the most sensitive areas including those prone to flash flooding and runoff. At the same time, CRP has helped increase populations of pheasants, quail, ducks, and other rare species, like the sage grouse, the lesser prairie chicken, and others. Highlights of CRP include:

    CRP has restored more than two million acres of wetlands and two million acres of riparian buffers;
    Each year, CRP keeps more than 600 million pounds of nitrogen and more than 100 million pounds of phosphorous from flowing into our nation's streams, rivers, and lakes.
    CRP provides $1.8 billion annually to landowners—dollars that make their way into local economies, supporting small businesses and creating jobs; and
    CRP is the largest private lands carbon sequestration program in the country. By placing vulnerable cropland into conservation, CRP sequesters carbon in plants and soil, and reduces both fuel and fertilizer usage.

In 2010, CRP resulted in carbon sequestration equal to taking almost 10 million cars off the road.

In 2011, USDA enrolled a record number of acres of private working lands in conservation programs, working with more than 500,000 farmers and ranchers to implement conservation practices that clean the air we breathe, filter the water we drink, and prevent soil erosion. Moreover, the Obama Administration, with Agriculture Secretary Vilsack's leadership, has worked tirelessly to strengthen rural America, implement the Farm Bill, maintain a strong farm safety net, and create opportunities for America's farmers and ranchers. U.S. agriculture is currently experiencing one of its most productive periods in American history thanks to the productivity, resiliency, and resourcefulness of our producers.

For more information on CRP and other FSA programs, visit a local FSA service center or www.fsa.usda.gov.



Cattle Industry Kicks Off Annual Convention in Nashville

National Cattlemen’s Beef Association (NCBA) President Bill Donald said with roughly 6,000 cattlemen and women registered for the 2012 Cattle Industry Convention and NCBA Trade Show, the event offers something for everyone. The convention, which kicked-off today, Feb. 1, 2012, in Nashville, Tenn., is the largest annual gathering of the beef industry and Donald said it promises to be a convention to remember.

“Nashville is a legendary city known for its rural roots and country beats and this week America’s cattlemen and women are taking the city by storm. We’re here to highlight some of the successes of the past year while also setting goals and priorities for what lies ahead,” Donald said. “From today’s Cattlemen’s College sessions to the many other educational events that will take place over the next three days, cattlemen and women will have the opportunity to hear directly from the experts about how to sustain and improve their operations.”

After learning about the latest trends and technologies in the industry during Cattlemen’s College and attending the NCBA Trade Show, convention goers will have the opportunity to attend committee meetings and take part in NCBA’s grassroots policy process, Donald said.

“It is important to let the voice of our producers be heard. The grassroots policy process is the backbone and the strength of NCBA. Cattlemen come together to discuss policy priorities and then chart the course forward for NCBA,” Donald said. “From cattle health and federal lands to marketing and tax policy issues, there will be critical issues addressed this week.”

While cattlemen and women will be hard at work during the day, Donald said there will be many opportunities to enjoy the Nashville culture at entertainment events, including a Honky Tonk Party, Thur., Feb. 2, and a Cowboy’s Night at the Opry, Fri., Feb. 3, which will be held at The Grand Ole Opry, and feature performances by the legendary Charlie Pride and Little Jimmy Dickens as well as Josh Turner and more.

With so many events taking place during the convention, Donald encouraged all who are registered to download the 2012 Cattle Industry Convention app to their smart phones  to see the schedule of events, locations, maps and receive alerts before, during and after the event. Visit www.beefusa.org for more information about the convention.



Better Beef Sales: Beef Up Knowledge at the Meat Case

The National Cattlemen's Beef Association (NCBA) and the Beef Checkoff Program partnered with Merck Animal Health to launch Better Beef Sales, a new web-based retail training program to help boost knowledge about today’s beef and how it’s produced.

These organizations recognized the need for more training of meat-counter employees after Merck Animal Health conducted a series of consumer panels. The panels found that consumers identify the staff behind the counter as experts. Carrie Thomas, account manager for food chain affairs for Merck Animal Health, said the need for training was quickly confirmed during retailer discussions.

“We conducted four panels in two cities. One of the key take away messages from those meetings was consumers still identify the person in the “white coat” behind the meat counter — the ‘butcher’ — as the beef expert,” said Thomas. “And, we want them to be beef experts. To do that, we need to arm them with information about today’s beef supply and how it’s produced.”

Consumer decisions about the products they buy are now far more complex than they were in the recent past. Some consumers take into account how animals were raised, sustainability, animal welfare and a whole host of practices employed by cattle-farm families and ranchers. Questions on those topics aren’t always easily addressed by the individuals responsible for putting beef on people’s plates — retail meat counter employees. This new initiative is intended to bridge the knowledge gap between the consumer and their food. Retail employees can play a critical role in bridging that gap.

Better Beef Sales education program consists of a series of six web-based training modules for the retail meat counter employees on the front lines of consumer marketing. Topics covered in the videos include: types and quality of beef offered today; sustainability of today’s beef; animal welfare practices; beef-improvement technologies; and ways retailers can add value to the meat case.

“As cattle numbers continue to decrease and retail beef supplies become tighter, it’s going to take more effort to keep beef center of the plate,” said Thomas. “We want to make sure retail employees and consumers understand how their beef is produced and how these wholesome, quality products end up on our dinner tables.”

To learn more about the Better Beef Sales retail education program, visit beefretail.org.



NCBA Backs Department of Labor’s Reconsideration of On-Farm Child Labor Regulations
National Cattlemen’s Beef Association (NCBA) President Bill Donald welcomed a crowd of roughly 6,000 cattlemen and women to Nashville, Tenn., for the 2012 Cattle Industry Convention and NCBA Trade Show with news that the U.S. Department of Labor announced today, Feb. 1, 2012, the agency’s intent to reconsider a portion of its proposed rule related to on-farm child labor. Donald commended American farmers and ranchers for making their voices heard on the proposed rule, which could have restricted, and in some instances totally prevented, America’s youth from working on farms and ranches.

“You’ve all probably heard of the Department of Labor’s proposed rule that would prevent youth under the age of 15 from working on farms and ranches. The department announced this afternoon that they will re-evaluate the original proposal. This is big news. Your voices – our voices – were heard,” he said. “This issue goes to the very fiber of who we are in this country. It goes right to the fact that businesses are looking to fill positions with farm and ranch kids because they have a work ethic. They do their chores before they get on the school bus and do them again when they get home. So thanks to all of you, the Department of Labor listened finally.”

Specifically, the department will reconsider the “parental exemption” portion of the proposal. According to Donald, the proposed rule would have prevented youth under the age of 15 years from working on farms or ranches owned by anyone other than their parents. He said it failed to take into consideration youth working for an aunt or uncle or for a partnership with which their family is involved. He added in rural America, working on a neighbors’ farm or ranch is a way of life and taking away that opportunity for America’s youth would result in fewer people entering into production agriculture.

The Department of Labor received thousands of comments on the proposed rule and announced they would continue seeking input on the “parental exemption” language. The department said it expects to re-propose a rule in early summer 2012. Donald said the agency did not go far enough and should scrap the provision completely.

“Rather than strapping our hands behind our backs and preventing American youth from learning the ropes of food and fiber production from today’s farmers and ranchers, the department should scrap this provision completely. Instead, it should work with farmers and ranchers to ensure the rules on the books are workable,” Donald said. “Rules and regulations, including those related to America’s youth working on farms and ranches, need to ensure safe working conditions. But the original proposal simply goes too far. Cattlemen’s voices were heard today. We will continue working to ensure our kids and grandkids have the opportunity to earn a living producing the safest, most nutritious beef in the world.”



Beef Promotion Boosts Sales in El Salvador

The beef checkoff recently conducted a retail beef promotion with Super Selectos, the largest supermarket chain in the Central American nation of El Salvador, in cooperation with meat distributor Alimentos Campeón. The promotion was conducted at 18 high-end Super Selectos retail locations.

El Salvador is the most densely populated country in Central America, with a population of about 6 million. Four of Central America’s 12 largest cities (San Salvador, Soyapango, Santa Ana and San Miguel) are located in El Salvador. Consumers there are most familiar with domestic beef or beef imported from Nicaragua. In either case, the beef is from grass-fed cattle and severely lacking in tenderness.

The objective of the promotion was to better acquaint Super Selectos customers with grain-fed beef and educate them on the superior quality and enjoyment offered by U.S. products. Beef cuts featured in the promotion included inside and outside skirt, ribeye, striploin, knuckle, short rib, top blade and coulotte.

Click here to learn more about your checkoff investment in foreign marketing programs...  



Good News … Mostly

A five-year look at consumer data from the checkoff-funded Consumer Beef Index (CBI), identifies some key trends, including: an ongoing rise in the percentage of consumers that say the positives of beef outweigh the negatives (a key tracking measure tied to the Beef Industry Long Range Plan); more consumers saying they intend to eat more beef in the future versus less; and a smaller percentage of consumers saying they have heard a story about a beef “issue” in the news. Of concern is the slightly reduced frequency of weekly beef meals, a trend many consumers tie to the recession and lingering concern about the nutritional merits of beef relative to other protein choices. For a full overview and shifts over time, visit CBI...   



USDA Announces Commodity Credit Corporation Lending Rates for February 2012

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

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



Irrigation Causing Declines in the High Plains Aquifer

Groundwater withdrawals for crop irrigation have increased to over 16 million acre-feet per year in the High Plains Aquifer, according to a recent U.S. Geological Survey study.

The USGS study shows that recharge, or the amount of water entering the aquifer, is less than the amount of groundwater being withdrawn, causing groundwater losses in this already diminished natural resource. Crop irrigation is the largest use of groundwater in the aquifer, and, over the past 60 years, has caused severe water-level declines of up to 100 feet in some areas. The new USGS findings address concerns about the long-term sustainability of the aquifer.

"The High Plains Aquifer is Nature's nearly perfect water storage system: self-recharging, safe from natural disasters, readily accessed over a broad area, and with copious capacity," said USGS Director Marcia McNutt. "And yet in less than 100 years we are seriously depleting what took Nature more than 10,000 years to fill."

The High Plains aquifer underlies about 175,000 square miles in parts of eight states – Colorado, Kansas, Nebraska, New Mexico, Oklahoma, South Dakota, Texas, and Wyoming – and is a major source of groundwater irrigation in the region. The High Plains region supplies approximately one-fourth of the nation’s agricultural production.

"Because groundwater losses are greater than recharge, water levels in many parts of the aquifer are currently declining," said Jennifer Stanton, USGS scientist and an author of the report. "Such information can inform groundwater management decisions made by state and local agencies."

The new USGS study also compares previously published data with new methods for estimating recharge and groundwater withdrawals and provides an assessment of the strengths and weaknesses of those methods.



Ethanol Stocks Rise to Record 20.9M Bbl

Domestic ethanol inventories posted a build of 1.14 million barrels (bbl), or 5.8%, to a record high of 20.945 million bbl for the week-ended Jan. 27, putting total supply 10.9% higher than the level seen a year ago, according to data released Wednesday by the Energy Information Administration.  Total U.S. ethanol stocks have now increased for seven straight weeks. They have increased 3.842 million bbl since Dec. 9, 2011, when the string of builds began.

The most recent supply build came as ethanol production from domestic plants rose 5,000 barrels per day (bpd), or 0.5%, to 939,000 bpd last week while up 3.3% from a year ago.

Meanwhile, implied demand, measured by refiner and blender net inputs, fell 3,000 bpd or 0.4% to 771,000 bpd from the prior week, although that level of demand was still 0.7% higher than a year ago.

Elsewhere, the EIA reported that implied demand for motor gasoline fell 131,000 bpd to 7.967 million bpd for the week while four-week average demand at 8.1 million bpd was down 7.3% from the level seen a year-ago. Implied gasoline demand was at lowest weekly level since September 2001.



USDA:  Dairy Products December 2011 Highlights

Total cheese output (excluding cottage cheese) was 929 million pounds, 2.4 percent above December 2010 and 4.2 percent above November 2011.  Italian type cheese production totaled 409 million pounds, 3.5 percent above December 2010 and 6.4 percent above November 2011.  American type cheese production totaled 371 million pounds, 1.2 percent above December 2010 and 5.6 percent above November 2011.  Butter production was 166 million pounds, 5.2 percent above December 2010 and 8.9 percent above November 2011.

Dry milk powders  (comparisons with December 2010)
Nonfat dry milk, human - 150 million pounds, up 8.0 percent.
Skim milk powders - 36.6 million pounds, up 34.6 percent.

Whey products  (comparisons with December 2010)
Dry whey, total - 83.0 million pounds, down 7.1 percent.
Lactose, human and animal - 85.7 million pounds, up 3.7 percent.
Whey protein concentrate, total - 39.6 million pounds, up 5.8 percent.

Frozen products  (comparisons with December 2010)
Ice cream, regular (hard) - 50.3 million gallons, down slightly.
Ice cream, lowfat (total) - 24.5 million gallons, up 16.3 percent.
Sherbet (hard) - 2.42 million gallons, down 17.7 percent.
Frozen yogurt (total) - 3.27 million gallons, up 11.0 percent.



 
ADM Reports Second Quarter 2012 Earnings of $80 Million or $0.12 per Share

Archer Daniels Midland Company (NYSE: ADM) today reported financial results for the quarter ended Dec. 31, 2011. The company reported net earnings for the quarter of    $80 million, or $0.12 per share, both down 89 percent from the same period one year earlier. Adjusted earnings per share —which excludes the impact of LIFO, PHA-related impairment charges and other adjustments—was $0.51 per share, 58 percent lower than the prior year quarter. Segment operating profit, after excluding the impact of the PHA-related charges, was $648 million, down 52 percent from the record quarter a year ago.

“It was a tough quarter,” said ADM Chairman and CEO Patricia Woertz. “The operating environment was challenging. Ongoing weakness in global oilseeds margins, lower results in corn and poor international merchandising results hurt our second quarter profits.

“We remain optimistic about the long-term fundamentals of our business and the growing earnings power of our company,” added Woertz. “We continue to execute our plan to drive shareholder value: prioritizing capital projects, implementing productivity measures and returning capital to shareholders through increased dividends and share buybacks.”

Weak Global Oilseeds Margin Environment Continues to Impact Earnings
Oilseeds operating profit in the second quarter was $253 million, down $72 million from the same period one year earlier.

Crushing and origination operating profit fell $61 million to $139 million. Continued weakness in global oilseeds crushing margins, particularly in Europe, reduced overall results. The prior year’s quarter reflected a $71 million pretax gain related to the acquisition of the controlling interest in Golden Peanut. In addition, last year’s results included significant, negative mark-to-market timing effects which were not repeated this year.

Refining, packaging, biodiesel and other generated a profit of $74 million for the quarter, essentially flat from year-ago levels.

Oilseeds results in Asia for the quarter were in line with last year, principally reflecting ADM’s share of the results from its equity investee Wilmar International Limited.

Additional highlights from the quarter include:
•  Integrating Elstar Oils S.A., the rapeseed crushing, refining, packaging and biodiesel business in Poland.
•  Increasing efficiency at the Olomouc, Czech Republic, sunflower seed crushing and refining facility.
•  Expanding ADM’s biodiesel presence with plans for a biodiesel plant at ADM’s Lloydminster, Canada, canola crushing facility.

Corn Processing Results Weaker, Reflecting PHA Impairment Charge
Corn processing reported an operating loss of $133 million, a decrease of $532 million from the same period one year earlier. The loss reflects $339 million in asset impairment charges related to the PHA renewable plastic production facility at Clinton, Iowa. Excluding the PHA impairment charges, corn processing operating profit of $206 million represented a $193 million reduction. Overall net corn costs were up, reflecting economic hedging benefits recognized in the prior year.

Sweeteners and starches operating profit decreased $46 million to $73 million. Export demand for sweeteners remained strong, though higher net corn costs more than offset higher average selling prices and increased sales volumes.

Bioproducts results in the quarter decreased $486 million to a loss of $206 million, including the  $339 million PHA impairment charges and the absence of ownership gains from last year. Ethanol margins were good into December, when they declined significantly as industry production increased and exports declined. 

Agricultural Services Down from Exceptionally Strong Year-ago Quarter 
Agricultural Services operating profit was $158 million, down $268 million from the exceptionally strong period one year earlier.  Merchandising and handling earnings decreased on poor international merchandising results and a reduction in U.S. grain exports from the prior year’s record levels. Earnings from transportation operations were steady.

Other Businesses Deliver Strong Results, Excluding Significant Mark-to-Market Timing Effects
In the second quarter, profit from ADM’s Other businesses was $31 million, down $181 million from the same period one year earlier. Excluding net timing effects, the results in other processing were comparable to last year’s strong results.

In other processing, profits fell $150 million to $10 million. Results in the segment were impacted by $127 million in mark-to-market net timing losses in cocoa. Last year’s results reflected $23 million in net timing gains. The underlying performance in cocoa remained strong, driven by cocoa powder demand. Wheat milling results remained steady.

Other financial declined $31 million to $21 million on lower results of ADM’s captive insurance subsidiary.