Friday March 30th Hogs and Pigs Report and other Ag News

NEBRASKA HOG INVENTORY UNCHANGED

Nebraska inventory of all hogs and pigs on  March 1, 2012, was 3.10 million head, according to the USDA’s National Agricultural Statistics Service, Nebraska Field Office.  This was unchanged from March 1, 2011, but down 2 percent from December 1, 2011.  Breeding hog inventory, at 390,000 head, was up 5 percent from March 1, 2011, and up 1 percent from last quarter.  Market hog inventory, at 2.71 million head, was down 1 percent from last year, and down 2 percent from last quarter.  

The December 2011-February 2012 Nebraska pig crop, at 1.82 million head, was up 3 percent from 2011.  Sows farrowing during the period totaled 175,000 head, unchanged from last year.  

Nebraska hog producers intend to farrow 180,000 sows during the March-May 2012 quarter, down 3 percent from the actual farrowings during the same period a year ago.  Intended farrowings for June-August 2012 are 180,000 sows, unchanged from the actual farrowings during the same period the previous year.  



Iowa: Highest March 1 Inventory on Record 

On March 1, 2012  there were 19.7 million hogs and pigs on  Iowa  farms according  to  the USDA National Agricultural Statistics  Service  –Hogs  and Pigs  report.   The March  1  inventory was  up  4 percent  from  a  year  ago  and  became  the highest March 1 inventory on record.  The December 2011-February 2012 pig crop was 4.94 million head.   A  total of 480,000 sows farrowed with an average litter size of 10.3 pigs per sow.   As of March 1, producers planned to farrow 485,000 head of sows and gilts  in  the March-May 2012 quarter. Farrowing intentions for the June-August 2012 period were estimated at 480,000 as of March 1, 2012. 



United States Quarterly Hog Inventory up 2 Percent

United States inventory of all hogs and pigs on March 1, 2012 was 64.9 million head. This was up 2 percent from  March 1, 2011, but down 2 percent from December 1, 2011.  Breeding inventory, at 5.82 million head, was up 1 percent from last year, and up slightly from the previous quarter. Market hog inventory, at 59.1 million head, was up 2 percent from last year, but down 2 percent from last quarter.

The December 2011-February 2012 pig crop, at 28.7 million head, was up 3 percent from 2011. Sows farrowing during this period totaled 2.88 million head, up 1 percent from 2011. The sows farrowed during this quarter represented 50 percent of the breeding herd. The average pigs saved per litter was a record high 9.97 for the December-February period, compared to 9.80 last year. Pigs saved per litter by size of operation ranged from 7.30 for operations with 1-99 hogs and pigs to 10.00 for operations with more than 5,000 hogs and pigs.

United States hog producers intend to have 2.89 million sows farrow during the March-May 2012 quarter, down 1 percent from the actual farrowings during the same period in 2011, and down 1 percent from 2010. Intended farrowings for June-August 2012, at 2.88 million sows, are down 2 percent from 2011, and down 2 percent from 2010.

The total number of hogs under contract owned by operations with over 5,000 head, but raised by contractees, accounted for 47 percent of the total United States hog inventory, up from 46 percent last year.



NEFB Launches ‘Let Me Get My Hands Dirty’ Campaign

Nebraska Farm Bureau has launched “Let Me Get My Hands Dirty,” a year-long campaign for adults and children to voice their concerns over the Department of Labor’s proposed regulation dealing with children working in agriculture. The campaign's theme centers on the idea of allowing young people to continue to “get their hands dirty” on the farm because the rule greatly limits what children under the age of 15 could do on any farm or ranch.

“As I stand here today surrounded by hundreds of blue jacket-wearing Nebraska FFA students, I am here to say that Nebraska Farm Bureau will not stand by and allow the DOL to attack the core and heritage of Nebraska agriculture,” Nebraska Farm Bureau President Steve Nelson said March 29 at the 2012 Nebraska State FFA Convention in Lincoln.

“This proposed rule is unbelievably restrictive and it will prevent young people from being able to get their hands dirty on farms and ranches across the state. FFA students would not even be allowed to follow their own motto, ‘Learning To Do, Doing To Learn, Earning To Live, Living To Serve,’” he said.

DOL’s proposed rule is written so broadly that it would prevent children who are working on a farm that isn’t owned by their parents from doing such basic tasks such as climbing on a ladder over six feet tall, working with livestock, or even operating a battery-powered flashlight or screwdriver. While children working on their parent’s farms and ranches would likely be exempt, the rule would still affect a large number of children.

“The safety of children working in agriculture is always our first priority. However, it simply does not make sense for the DOL to limit or restrict what children have historically been allowed to do on farms and ranches when all they are looking for is to gain agricultural experience or make money for college,” Nelson said.

Nebraska Farm Bureau is asking 4-H and FFA students, detasslers and anyone with an interest in agriculture to sign a paper handprint. The prints will be collected and eventually sent to DOL to illustrate how many people, both young and old, are opposed to the proposed rule.

“How can a child learn the proper way to handle livestock or the safe way to be around farm machinery if they are prevented from even being allowed to do these basic tasks? If we prevent children from doing basic chores on the farm or ranch, who will be there to feed you and your family?” Nelson asked.

Farm Bureau is also encouraging individuals to share their story about how this rule would affect the future success of agriculture. Visit www.nefb.org and click on the “Let Me Get My Hands Dirty” logo to send your story to DOL.

“We hope these stories will help put a face on this issue for officials at the DOL and will clearly demonstrate how this misguided rule will do nothing but harm the future and well-being of American agriculture,” Nelson said.



Johanns Sponsors Legislation Permanently Repealing Death Tax

U.S. Sen. Mike Johanns (R-Neb.) is cosponsoring legislation to permanently repeal the federal estate tax, commonly referred to as the death tax. The Death Tax Repeal Permanency Act was introduced by Sen. John Thune (R-S.D.) and currently has over 30 cosponsors.

“The loss of a family member should not be a taxable event, and Americans should not be forced to sell the family business, farm or ranch just to pay it,” Johanns said. “Nebraskans who have worked to create a better life for their children should be able to pass down the fruits of their labor without penalty.”

This legislation would repeal the estate and generation-skipping transfer taxes, currently set at a 35 percent tax rate with a $5 million exemption.  Unfortunately, in 2013, the estate tax rate is scheduled to increase to 55 percent with a $1 million exemption.

According to a study by Douglas Holtz-Eakin, the former director of the non-partisan Congressional Budget Office, repealing the death tax could create 1.5 million additional small business jobs and decrease the national unemployment rate by nearly one percent.

This legislation is identical to legislation introduced in the House of Representatives by Rep. Kevin Brady of Texas.



IBACH HIGHLIGHTS PLANS FOR UPCOMING TRADE VISIT TO SOUTH KOREA

Nebraska Department of Agriculture (NDA) Director Greg Ibach will lead a group of Nebraska agriculture leaders on a trade visit to South Korea March 31 – April 5.

“With the U.S.-Korea Free Trade Agreement taking effect earlier this month, the timing was right for Nebraska to highlight our agricultural products and to lay the groundwork for future long-term trade cooperation,” said Ibach.

Joining the Director will be Steve Nelson, representing the Nebraska Farm Bureau; Scott Spilker, representing the Nebraska Pork Producers; Steve Hanson, representing the Nebraska Beef Council; Brent Robertson, representing the Nebraska Wheat Board; and Stan Garbacz, the international trade representative for NDA.

During their time in South Korea, the group will meet with meat and grain industry representatives, tour processing facilities and feed mills and participate in special events that will feature Nebraska beef and pork products.

“The Korean markets hold great potential for the Nebraska agriculture industry, especially for beef, pork and grains, all of which will see tariffs drop,” Ibach said. “We will be meeting with potential future customers during several activities and building relationships.”

The U.S. International Trade Commission estimated an increase in U.S. agricultural sales to Korea of $1.9 billion to $3.8 billion once the trade agreement is fully implemented. South Korea was Nebraska’s fifth largest trade partner in 2011, with imports of $331 million.



Nebraska corn farmers investing nearly $3 billion to plant 10.3 million acres 

Nebraska’s corn farmers intend to plant 10.3 million acres of corn this year, the U.S. Department of Agriculture said today. It takes about $270 per acre to get the corn crop planted and off to a good start, meaning Nebraska corn farmers plan to invest some $2.8 billion this spring.

“Farmers make this multi-billion dollar investment every spring in the hope of producing more corn per acre, as they strive to get better every year,” said Kelly Brunkhorst, the Nebraska Corn Board’s director of research. “USDA’s planting intention numbers today, if realized; show how farmers respond to market signals with the investment necessary to meet demand.”

Good prices are the market signal for more corn acres, yet planting numbers can change depending on springtime weather. Last year’s March estimate, for example, was higher than previous years’ planted acres and increased further, when USDA realized weather allowed greater opportunity for additional corn acres.  Last year’s 9.85 million planted acres was the largest since the 1930’s – and farmers intend to top that by 450,000 this year.

Nationally, USDA said farmers intend to plant 95.9 million acres this year, up 4 percent from last year’s 91.9 million acres. If realized it will be the most planted acres in the United States since 1937 when an estimated 97.2 million acres were planted.

“Unseasonably warm weather so far this spring, has allowed farmers in most Midwestern states to complete field work and fertilizer application, and for some begin planting already, but most farmers in Nebraska will hold off until mid-April because crop insurance coverage doesn’t take effect until then and there’s still the risk of frost,” Brunkhorst said.

Historically in Nebraska, farmers begin planting in mid-April and wrap up as quickly as possible in May.

On average, farmers spend about $270 per acre to get the crop in the ground and off to a good start, based on estimates calculated by the University of Nebraska Extension. Multiplied by the 10.3 million acres USDA estimates Nebraska farmers will plant this year; provides the $2.8 billion investment by the state’s corn farmers. That figure does not include land costs, labor or equipment – it’s purely inputs like seed and fertilizer.

“Those are the things farmers buy every year from their cooperative or other companies,” Brunkhorst said. “If you figure a 2.5 multiplier, the full economic impact of planting reaches some $7.0 billion. Yet the economic value of that crop is even greater, when harvested and that corn is converted to meat, milk and eggs, ethanol, distillers grains, bioplastics and more. Corn is the foundation for all of that, so getting the crop in the ground and off to a good start this spring is critical. Then it’s up to the weather through the growing season to harvest.”

USDA today also reported corn stocks, or the amount of corn in storage in Nebraska and across the country. Nationally, stocks as of March 1 were 6.0 billion bushels, down 8 percent from last year.

In Nebraska, there were 686.6 million bushels in storage as of March 1, 10.3 percent less than a year ago. Of that, 350.0 million bushels were stored on farms, and 336.6 million were stored off-farm.



Iowa Corn Farmers Respond To Planting Report

This morning the USDA released their 2012 perspective plantings report.  It indicated corn acreage across the U.S. will be up 4 percent from 2011 and 9 percent higher than 2010, to 95.9 million acres.  This will represent the highest corn acreage in the United States since 1937 when an estimated 97.2 million acres were planted. A record number of acres are planned for corn in 2012 in Iowa.

Iowa Corn Promotion Board (ICPB) Chair, Deb Keller from Clarion reported, “Today’s report is the first official indication that U.S. producers are responding to the market signals to expand their corn production area.”

It is important to note that the March intentions are just that, an intentions report and historically it could shift 15% as the planting season rolls on.  In actual practice, the May 15 plantings report from the USDA more closely correlates with the final acres planted.

“Iowa farmers currently have a plan on what they will be planting in their fields,” said Keller.  “The important thing to remember is that these planting intentions are dependent on what the weather is going to be like this spring and so far it has been ideal.”



Iowa Soybean Association Responds to USDA Crop Report

This morning, the United States Department of Agriculture (USDA) released its report of spring planting intentions.

Nationally, soybean acres are projected at 73.9 million acres, 99 percent of the 74.98 million acres in 2011, while corn is expected to be at 95.86 million acres, which is 104 percent of the 91.92 million acres planted to corn in 2011.

Iowa growers’ intentions for planting soybeans are projected at 8.8 million acres, 94 percent of the 9.35 million acres planted to soybeans in Iowa in 2011. Record Iowa corn acres acreage is expected in Iowa, with a projected 14.6 million acres, which is 104 percent of the 14.1 million acres planted to corn in Iowa in 2011.

Iowa Soybean Association (ISA) President Dean Coleman says, “We may see a shift to more bean acres as this report will improve the corn/soybean ratio.”

Having just returned from a trade mission to China and Thailand, Coleman and other ISA leaders expect Chinese demand for soybeans will continue to grow, driven by urbanization, and U.S. soybeans will take “a significant portion of a much larger market,” according to ISA CEO Kirk Leeds.

For instance, Leeds says, “Chinese officials tell us they expect China's hog production industry will 'only' grow 5 percent in 2012. But they have 650 million hogs. A 5 percent increase would be 30 million hogs."

While China also imports soybeans from South American growers such as Brazil and Argentina, reports of this year's South American soybean production continue to decline as more land is harvested.

Coleman concludes, “We will need more soybean acres, considering the drought in South America and the need to have the bushels available for our domestic and foreign partners.”

The USDA will issue a report in late June showing actual plantings.



The Beef Marketing and Production Environment

One of the important jobs of market research, other than just conducting checkoff-funded studies, is to scan the environment and look for issues and trends that can affect the marketing climate for beef. Rick McCarty, vice president of issues analysis and strategy for the National Cattlemen’s Beef Association, contractor to the beef checkoff, likes to quote Michael Kami, strategic planning expert:  “It’s important to keep your eyes on the things you can’t see.” Part of the function of market research is to determine the genesis of trends and how those trends are driving consumption and affecting consumer acceptance of beef.

He says, “We analyze how consumers are relating to beef; we analyze what they think is important in a food; and we analyze how well they think beef is performing on those attributes – taste, convenience, nutrition, safety and so forth. Are there changes in consumer’s perception of beef that are good that we need to try to reinforce; are there some that are not so good that we need to work on and communicate to consumers more effectively?”

McCarty says market research really helps drive all program areas of the checkoff, from culinary initiatives – do consumers know how to prepare a new product; to chefs – how would they take this new product and prepare it in the restaurant; to issues management – defending the reputation of beef. “If we protect that environment, everything works better: promotion programs work better, advertising works better. So we play a little offense in helping our promotion people promote our product; and we play some defense to help our issues management people protect the marketing environment for our product.” (:20 seconds)

A monthly snapshot of trends and issues is developed to help state beef councils and industry thought leaders keep current on what’s going on in the marketing environment for beef.  This snapshot also helps a trends advisory panel, made up of a group of industry experts, to set the editorial content of the Beef Issues Quarterly – the industry’s issues management journal. Some of the more recent topics in food trends are: snacking is on the rise, burgers are hot, social media is changing food culture and labels at retail are important. McCarty gives us an example of one of the trends that was picked up recently that has implications for beef.

McCarty says, “One of the trends was this desire for consumers to get health and wellness services at their supermarket – that’s a huge trend. Supermarket chains have registered dietitians on staff to help their customers choose healthful foods and of course you know beef needs to be in that mix – beef needs to be a player. These RDs who are helping consumers choose healthful foods need to understand the benefits of beef. So that’s an example of a trend that we picked up by sort of casting this wide net of issues and trends going on.”



Iowa Pork Producers embrace food safety, animal well-being programs

Iowa pork producers have reached a new milestone as 15,000 Iowa pork producers, employees and others with pork industry interests have been certified through the Pork Quality Assurance (PQA) Plus® program.

PQA Plus was launched in 2007 as a continuous improvement program outlining 10 good production practices in the areas of food safety and animal well-being. Individuals are first certified through an educational program. Following certification, producers invite PQA Plus advisors to conduct an objective assessment of practices on the farm and work with the advisor to implement improvements. Individual certification and site assessments must be completed every three years to maintain PQA Plus certification and site status.

A random sample of assessed sites is selected each year for third-party verification of the program. Data from this verification will be used to help determine necessary areas for improvement and increased education for producers.

More than 5,800 Iowa pork production sites also have completed the site assessment portion of PQA Plus. According to the National Pork Board, more than 80 percent of U.S. pork currently originates from a PQA Plus-assessed site.

Additionally, nearly 8,000 Iowa pig-handlers have completed the Transport Quality Assurance (TQA) training.

“PQA Plus helps show everyone we care about our animals and the safety of food we produce. It helps us continually educate our producers and employees and contributes to continuous improvement of our industry,” said Bill Tentinger, 2012 Iowa Pork Producers Association (IPPA) president. “By demonstrating their dedication to PQA Plus, TQA and other continuous improvement programs, Iowa pork producers have shown they take great pride in providing a safe, wholesome and healthy product for people around the world.”




Brazil: Infrastructure Investment Showing Results, New Shipping Patterns = More Competition for U.S.

Changes in Brazil's main corn exporting corridors could have implications for the nation's ability to compete with the United States, according to Alfredo Navarro, the U.S. Grains Council country representative.  Navarro, who tracks Brazil's export logistics and port use, already sees an evolving pattern in the 2001 to 2011 period.

"In 2001, no corn was exported through the North corridor ports of Manaus, Santarem and Sao Luiz," Navarro said. "By 2007, 1.1 percent of Brazil's corn was shipped through Manaus, and last year 8.4 percent of the corn shipped from northern ports.

In the first part of 2012, shipments from the northern ports were 31.7 percent of total volume, a sharp increase from the same period in 2011.

"That is small compared to the potential in the region and the number of hectares planted," Navarro continued, attributing the disparity to inadequate infrastructure for port access. "The government has not realized how much Brazil's poor transportation network affects competitiveness."

The data also shows a startling export shift to Brazil's southeastern ports of Espirito Santo and Sao Paulo, which shot from a 4.8 percent share of corn exports to 59 percent by 2011. Brazil's southern ports (Parana, Santa Catarina, and Rio Grande do Sul) dropped from a near monopoly (95.1 percent in 2001) to a 32.5 percent share of corn exports in 2011.

Navarro's tracking also looks at inland supply routes that access Brazil's ports, where he noted that funds allocated for improvements have not been spent as intended, and corruption has delayed key construction projects.

At the same time however, Brazil is seeing more private investments to improve infrastructure and export reliability.



Brits Favor Pork When Eating Out

The popularity of pork is growing when people in the United Kingdom are eating out of the home with bacon leading the way. New figures from NPD Group/Crest show that pig meat, including pork, bacon, sausages and ham, the most consumed red meat in the out-of-home market with 68.7 percent of all red meat servings.

It also experienced the greatest increase in servings in 2011 compared with a year ago. The figures show total pig meat servings increased by 8.1.

In the main this growth was driven by bacon, which saw servings grow by 29.5 percent and sausages, which grew by 21.3 percent. Ham has also moved up the charts, by 11.7 percent and pork saw an increase of 4.6 percent.

BPEX foodservice trade manager, Tony Goodger, says quality assured bacon is a fantastic ingredient for all types of menus.

"Sausages made from quality assured pork also continue to be one of the most popular foods eaten out of home, appealing to both adults and children alike," Goodger said. "Both are relatively low-cost proteins and, in the current climate when every penny counts, chefs are clearly recognising their profit potential."



USDA Works for Farmers, Sportsmen and the Environment
Ag Secretary Tom Vilsack

America’s farmers are among our first and finest conservationists. At USDA, we support their work to protect natural landscapes, improve water and air quality, and preserve wildlife habitat, forests and soil.

In addition to environmental benefits, this work helps drive economic growth and creates good, middle class jobs – particularly in rural communities. Farmers who help the environment improve their bottom line. Fishing, hunting, hiking, boating and other outdoor recreation adds $730 billion to our nation’s economy each year and supports millions of jobs.

That is why President Barack Obama launched his America’s Great Outdoors initiative to help re-connect Americans with the outdoors and create local partnerships focused on the long-term health of our nation’s landscapes. In the past months, as part of that effort, USDA took steps to work with landowners, farmers and ranchers conserving these lands while promoting outdoor recreation opportunities that create jobs and drive economic growth.

First, along with the Department of the Interior, USDA recently announced a new $33 million plan to use innovative approaches to restore and protect habitats for wildlife, including seven at-risk species and other vulnerable game species.

Working with sportsmen, this Working Lands for Wildlife partnership will help the economy by promoting abundant wildlife habitat that offers great opportunities for hunting, fishing, wildlife viewing and other types of outdoor recreation. To help raise a generation of Americans who are excited about spending time outdoors, USDA’s Forest Service provided funding to enhance outdoor children’s programs in 18 states.

Second, we are improving and strengthening the Conservation Reserve Program (CRP), which currently enrolls 30 million acres of idled farmland to support farmer income, clean our water and preserve soil.

In the past months, USDA announced the opportunity for producers to enroll a total of 1.75 million acres of land in new CRP initiatives to preserve grasslands, wetlands and wildlife habitat. As crop prices remain strong and an estimated 6.5 million CRP acres expire later this year, this effort will help us target our resources to the most environmentally sensitive lands. It will improve farm income and job-creating recreation opportunities, encouraging producers to enroll in practices benefitting pollinators, ducks, upland birds and critical ecosystems, with an increased signing incentive. With this effort – alongside a broader ‘general’ sign-up for the program – we’ll continue to add to CRP’s 25-year legacy of addressing our nation’s most critical resource issues.

In the years to come, USDA will continue to build partnerships and strengthen our conservation programs to promote good farmer incomes, as well as opportunities for sportsman and outdoor recreation. Our nation’s lands provide us with abundant food, fiber and fuel. They are an essential piece of vibrant and diverse rural economies. Best of all, conserving farms, ranches, and forests also means a healthier environment for the next generation and a stronger economy in the decades to come.