Thursday March 29 Ag News

Governors Support Finely-Textured Beef

A coalition of governors is joining forces to support the U.S. beef industry and set the record straight about lean finely-textured beef.

Lean finely-textured beef is a 100 percent beef, 95 percent lean, nutritious, safe, quality and affordable beef product eaten by Americans for 20 years. The production and food safety technologies employed to make lean finely-textured beef are USDA-approved, and it is produced in USDA-inspected meat processing facilities.

Govs. Terry Branstad (Iowa); Sam Brownback (Kansas); Lt. Gov. Matt Michels, standing in for South Dakota Gov. Dennis Daugaard, who is on a trade mission in China; Nebraska Gov. Dave Heineman; and Rick Perry (Texas) Wednesday jointly issued the following statement:

"Our states proudly produce food for the country and the world - and we do so with the highest commitment toward product safety. Lean, finely textured beef is a product that is backed by sound science. It is unfortunate when inaccurate information causes an unnecessary panic among consumers.

"By taking this safe product out of the market, grocery retailers and consumers are allowing media inaccuracies to trump sound science. This is a disservice to the beef industry, hundreds of workers who make their livings producing this safe product and consumers as a whole.

"Ultimately, it will be the consumer who pays for taking this safe product out of the market. The price of ground beef will rise as ranchers work to raise as many as 1.5 million more head of cattle to replace safe beef no longer consumed because of the baseless media scare.

"We urge grocery retailers, consumers, restaurants and members of the media to seek the facts behind lean finely-textured beef. Science supports keeping the lean beef product on grocery store shelves for the benefit of American agriculture and consumers alike."

Already, more than 650 workers in Kansas, Texas and Iowa have been temporarily laid off. According to the National Meat Association, as many as 3,000 American jobs will be affected when suppliers are also factored in.

The coalition of governors and state leaders today toured BPI's South Sioux City, Neb. facility and later met with media.



Statement from NCBA President JD Alexander Regarding USDA, State Leaders Defending Safety of US Beef

After weeks of misleading media reports about lean finely textured beef, which has ultimately resulted in more than 650 individuals losing jobs in Kansas, Iowa and Nebraska, top elected leaders from Kansas, Iowa, Nebraska, Texas and South Dakota joined forces with U.S. Secretary of Agriculture Tom Vilsack and Under Secretary for Food Safety Elisabeth Hagen to support the safety of this product and all U.S. beef. NCBA President J.D. Alexander issued the following statement to praise the leaders for their efforts.

“Cattlemen are delighted to see state leaders from Iowa, Kansas, Nebraska, South Dakota and Texas saying enough is enough by clarifying the importance of beef in diets and its role in providing jobs and economic growth. The outspoken and visible support from Secretary Vilsack and Under Secretary Hagen represents a united effort to restore confidence in the beef I proudly produce and feed my own family.

“We have the safest beef supply in the world, but that didn’t stop the race for ratings and the misinformation overload scaring consumers and throwing the country into absolute chaos. This started out as yet another careless and irresponsible distortion of the facts that spiraled into real jobs and real families in already struggling economies being thrown aside.

“Irresponsible attacks will ultimately result in a domino effect from farm to fork. The wave of chaos has calmed a bit and now is the time to help dissect fact from fiction with our consumers here in the United States and abroad. I am honored to be a part of the beef community providing safe and nutritious beef for families around the globe.”



Smith Supports Nebraska & Entire U.S. Beef Industry

Congressman Adrian Smith (R-NE) released the following statement in support of the U.S. beef industry after a coalition of governors toured BPI’s South Sioux City facility:  “Beef production is critical to Nebraska’s economy,” said Smith. “Lean, finely textured beef is a nutritious, safe, and affordable product which is subject to a USDA-approved, science-based process. Instead of obscuring the facts, we should celebrate our producers whose priority is the long-term safety and security of our nation’s food supply.”



2012 On-Farm Research -" Upgrading the Ride"
Keith Glewen, UNL Extension Educator

As some of you have heard, we are upgrading the thrills associated with conducting on-farm research with UNL Extension. Starting in 2012 we are partnering with the Nebraska Corn Growers Association to expand on-farm research across the corn growing regions of Nebraska. Both the Quad Co. group in the York/Hamilton area and those of you in the Dodge/Saunders/Lancaster/Cass/Butler group will be merged into the new venture.

The good news is the Corn Board/Corn Growers will be covering the expenses associated with conducting the research. Additionally, we can focus on production topics critical to the profitability and sustainability of growing corn in Nebraska. Collectively generating data across multiple growing environments typically has more power than one or two growers addressing a topic on an annual basis per location.

The three topics we will focus on in the 2012 growing season are:
1. Irrigation - Water application management in corn production
2. Nitrogen Management in corn production, both irrigated and dryland
3. Corn populations study in irrigated and dryland.

Let me be the first to say that if you come to us with a topic to investigate which is more important to your operation than the three listed above, we won't turn you away. Also, we will honor the topics and protocols we have developed for all who Dave Varner and I met with during the January/February time frame. There are a few of you who have the precision ag. technologies in place to conduct on-farm research on the go. We encourage you to continue to do this and we welcome the opportunity to crunch the numbers with you as we have in the past. We still love soybeans so if you should need help with a on-farm study addressing that crop, please share your ideas with us as well.

As many of you know, Dr. Dave Varner has moved to the Southeast Research & Extension Center as Associate Director, and therefore, Gary Zoubek, Extension Educator in York County and myself will be coordinating day to day operations of the Nebraska On-Farm Research Network and the Nebraska Ag. Water Management Network.

We realize some of you don't have irrigation capabilities and your nitrogen was applied last fall, but the door is still open to conduct a corn population study.  Since many of you helped pioneer the first on-farm research effort, we welcome and encourage you to join us on this "new ride" as we move forward in discovering new production related answers.  I have attached a web link to our website which provides additional information: http://ardc.unl.edu/onfarmresearch.shtml.  



Groundwater Levels Generally Up Over Last Year

Groundwater levels rose or were unchanged throughout much of Nebraska over the past year, but over the past 30 years, there have been markedly different changes in eastern Nebraska compared to western Nebraska.

The latest statewide groundwater monitoring report by the University of Nebraska-Lincoln's Conservation and Survey Division shows mixed results, depending on where and over what period of time groundwater levels are measured, but over the past five years, and especially over the past year, the news for Nebraska's groundwater levels is generally good.

"The five-year period from spring 2006 to spring 2011 was characterized by groundwater level rises in almost all areas of the state except the Southwest and Panhandle Tablelands," CSD and UNL School of Natural Resources groundwater geologist Jesse Korus said.

From spring 2010 to spring 2011, 70 percent of the wells monitored for the report rose in groundwater levels, with 36 percent showing rises of more than a foot. Only 11 percent of monitored wells showed declines of more than a foot.

"The (groundwater level) rises over the past five years are a result of a combination of factors, including increased flows in streams and canals, decreased irrigation withdrawals and increased aquifer recharge compared to the several dry years prior to 2006," said SNR geoscientist Mark Burbach, who co-authored the report with Korus and CSD cartographer Les Howard.

"Nebraska Statewide Groundwater-Level Monitoring Report 2011" is the latest in a series of groundwater-level change maps and reports dating to 1954.

The 23-page illustrated report details and maps changes in Nebraska groundwater levels over the last year, over the past five and 10 years, from predevelopment of irrigation to spring 2011 and, new with this report, from predevelopment to spring 1981 and from spring 1981 to spring 2011. It also includes average daily streamflows in 2010 and other related information.

The report's authors chose to include maps comparing periods before and after 1981 because "several recorder wells in south-central Nebraska show markedly different patterns of groundwater level fluctuations during these two periods, and we wanted to investigate whether or not these patterns were consistent statewide," Korus said.

"Up to 1981 groundwater declines were generally equal in magnitude in eastern and western areas of the state," Korus said.

In general, the 30-year period after 1981 shows some significant increases in groundwater levels in the eastern half of the state, with equally significant declines in some areas of the Panhandle and Southwest Nebraska.

"Some but not all of these trends are reflective of statewide precipitation patterns compared to the long-term norms," Korus said. "The hypothesis is that the post-1981 recovery of groundwater levels in central and eastern Nebraska resulted from a combination of factors, including reduced (groundwater) withdrawals during several long periods of above-average precipitation, increased irrigation efficiencies, increasing rates of recharge and the aquifer equilibrating to the new conditions imposed on it by irrigation development decades earlier."

Overall, from predevelopment of irrigation to spring 2011, the "long-term groundwater level changes in Nebraska primarily reflect aquifer depletion in areas of dense irrigation development and increases in storage due to seepage from canals and reservoirs," Burbach said.

Predevelopment water levels are estimated, but generally occurred before the early to mid-1950s depending on when intensive groundwater irrigation began.

Average daily streamflows across Nebraska also got a considerable boost from above-average precipitation over much of the state in 2010.

"Average daily streamflows were higher than the 30-year average for most of Nebraska's streams in 2010," Korus said. Highest discharges occurred in some tributaries to the Republican, Elkhorn, North Platte, White and Little Nemaha rivers.

Groundwater level change maps included in the report can be downloaded free at the SNR web site at http://snr.unl.edu/data/water/groundwatermaps.asp. Maps from previous years, dating to 1954, also are archived there. Efforts to monitor the state's groundwater levels began in 1930.

Data for the maps, graphs and reports is based on recorded measurements from more than 6,000 observation wells taken by 27 organizations, including each of Nebraska's 23 Natural Resources Districts, U.S. Geological Survey, Central Nebraska Public Power and Irrigation District, U.S. Bureau of Reclamation and CSD.

Groundwater level change maps rely on well readings recorded as close to April 1 as possible, before the start of the irrigation season.

The full report, "Nebraska Statewide Groundwater-Level Monitoring Report 2011," (Nebraska Water Survey Paper Number 79), can be purchased for $15 online at both snrsales@unl.edu or Amazon.com or at the Nebraska Maps and More store, first floor Hardin Hall, UNL East Campus, N. 33rd and Holdrege Sts., Lincoln.



'Early' Early-spring Weed Management
Bob Hartzler and Mike Owen, Department of Agronomy, Iowa State University

The unusually warm weather may create additional weed challenges this spring. Winter annuals in no-till fields will likely accumulate much more biomass prior to planting than normal and therefore use more soil moisture, tie up more nutrients and potentially interfere with planting and crop establishment. In addition, weeds such as horseweed (marestail) will grow more rapidly and reach growth stages that are difficult to control much sooner than in a “normal” spring.

Due to these potential problems, applications of burndown herbicides in early April may be beneficial and improve the control of winter annual and early spring annual weeds. An additional benefit of earlier application dates for the burndown is minimizing the risk of including 2,4-D at the higher rates (i.e. 2 pts/A of LV-4) in the program. Of course, there is the important assumption that planting dates are not moved proportionally earlier.

Many farmers will want to include preemergence herbicides with these early spring burndown treatments. While this may provide a clean seedbed at planting and crop emergence, the longevity of weed control is likely to be shortened significantly. The magnitude of this reduction will depend on the time period and weather encountered between application and planting, and the herbicide rate. The rates of many preemergence products have been reduced due to the reliance on postemergence products, primarily glyphosate. If applications are going to be made a few weeks earlier than normal, carefully evaluate the product rates in order to maximize the contribution of the preemergence herbicide(s) to residual weed control after crop emergence.

Preemergence herbicides are a key component of herbicide resistance management. But to be effective, they need to be used in a manner that results in significant control of the target species. Very early applications of preemergence herbicides or reduced rates will greatly reduce their effectiveness on late-emerging weeds such as waterhemp, or large-seeded species such as giant ragweed. Many products specify split applications where a portion of the product is applied early and a remainder is applied at, or shortly after planting. This approach could be beneficial this year where an extended period of weed control may be needed due to early applications resulting from prevailing weather conditions.



ASA Supports Efforts to Establish Foundation for Food and Agriculture Research

The American Soybean Association (ASA) applauds the leadership of Senate Agriculture Committee Ranking Member Pat Roberts (R-Kan.) and Chairwoman Debbie Stabenow (D-Mich.) for their efforts to establish a Foundation for Food and Agriculture Research (FFAR), an organization designed to encourage greater investment in research, public/private research partnerships and other ventures that foster innovation in the industry. The senators are sponsoring a bill to establish FFAR that will be introduced to the Senate today. ASA President Steve Wellman, a soybean producer from Syracuse, Neb., offers the following statement of support:

“For so many years, American agriculture has met the challenge of producing better, healthier and more abundant food, feed, fuel and fiber, all while using fewer resources. Moving forward, our industry will be put to the stiff test of feeding a global population projected to pass 9 billion by 2050. Time and time again, our industry has met these challenges with creativity, innovation, and groundbreaking best practices that reach far beyond the farm. These advances depend on the continued investment of both the public and private sectors in agricultural innovation. ASA and soybean farmers across the country applaud Ranking Member Roberts and Chairwoman Stabenow for their foresight in proposing the Foundation for Food and Agriculture Research, and we look forward to working together to tackle the challenges on the horizon.”



ISA trade team returned from China & Thailand

Iowa Soybean Association (ISA) President Dean Coleman of Humboldt, President-elect Mark Jackson of Rose Hill, CEO Kirk Leeds and Director of Market Development Grant Kimberley, along with Lt. Gov. Kim Reynolds, returned earlier this week from an 11- day trade mission to China and Thailand.

The trade mission was particularly timely given China Vice President Xi Jinping’s visit to Iowa in February. While in China, the delegation was warmly received by the Vice President at a reception and meeting in the Great Hall of the People in Beijing. Highlights of the trip included:

1.    The delegation was recognized for the warm hospitality extended by Iowans to Vice President Jinping. At numerous meetings with high-ranking officials, the message was repeated of the importance of working as partners to improve food safety, increase food stability and enhance environmental sustainability.

2.    China is the world’s largest soybean importer, consuming nearly one of every four rows of U.S. soybeans. In 2011, U.S. farmers produced 3 billion bushels of soybeans. Iowa ranked first nationally with a soybean harvest totaling 466 million bushels.

3. The trade mission also included a visit to Thailand, where the goal was to engage previous customers in face-to-face communication, with hopes to regain market share for Iowa and U.S. soybeans. The Iowa delegation visited a large soybean crushing plant and soybean oil refining facility, and hosted a large, festive reception for past and potential customers.

4. Thai customers indicated they prefer to process U.S. soybeans, which are cleaner and have more consistent quality than South American soybeans. They do have concerns about protein content. That feedback resulted in good conversation about amino acid profiles and feed trial results. In addition, the discussion of transportation costs provided an opportunity to explain how AGP’s new export terminal at the Port of Grays Harbor in Aberdeen, Washington, reduces transit time for U.S. soybeans and results in significant savings in transportation costs.

5. Lt. Gov. Reynolds told a Thai audience, “Part of our mission on this trip is to re-introduce Iowa soybeans to you.” She invited Thai industry leaders to Iowa to “take advantage of the opportunity to visit an Iowa farm and visit an Iowa cooperative, so we can demonstrate to you that Iowa is a leader in soybean quality and can play an important role in your market.”



Vets applaud Veteran Farmers Project

Last week, 25 military veterans gathered in Ithaca, Nebraska at the Agricultural Research and Development Center, to attend a workshop designed to provide veterans interested in starting their own farms or ranches with advice and resources. Participating veterans applauded the workshop and the effort to assist veterans who want to farm or ranch in getting started.

“An event like the one the Center for Rural Affairs put on was exactly what we needed.  It was really encouraging to know that this information and these resources are available," said Daniel Apolius.  Daniel and his wife Cynthia, who also attended the workshop, are both veterans residing in Lincoln, Nebraska and want to start farming someday.

"The workshop provided not only education toward our goals but it was a great networking tool," continued Apolius. "A workshop like this that tries to reach out to returning veterans helps them know there really are career paths into farming and ranching.”

“I've already shared information I learned at the workshop with other veterans about FSA beginning farmer programs and the Center for Rural Affairs," Apolius added. “And we got a lot out of the farmers’ presentations as well as the Farmer-Veteran Coalition discussion.”

The full day workshop covered a great deal of information and introduced veterans to resources and programs for farm and ranch startup, followed by a tour of the activities at the University of Nebraska’s Ag Research Center.  Farmers Dave Welsch from West Blue Farm in Milford, Nebraska and Evrett Lundquist from Common Good Farm in Raymond, Nebraska shared information on how they grow and sell their crops, as well as how they got started in farming and suggestions for veterans in attendance about how to connect with established farmers to assist them with land access and potential mentoring opportunities.

“We had a great time and learned a lot about what is out there to help new farmers,” said Steven McDermott, a veteran from Lincoln, NE, who attended the workshop along with his partner Kerry Kubert. “I wish this would have been done a long time ago as I would have been doing my dream now instead of just getting to the point that we are, just getting the business plan in place.” The couple plan to start a specialty crop farm and value-added production business.

According to Kathie Starkweather of the Center for Rural Affairs, who is managing the Farmer Veteran Project, attendees were provided with resources to help them find financing and access to land.  The USDA Farm Service Agency shared information on their beginning farmer programs; AgrAbility talked about their program that helps disabled veterans get into farming; and Farmers Union spoke about crop insurance.

Michael O’Gorman discussed the work of the Farmer-Veteran Coalition. Veterans were also informed about Nebraska College of Technical Agriculture’s Combat Boots to Cowboy Boots program. Center for Rural Affairs staff presented materials on financing, federal farm and conservation programs that would apply to veteran and beginning farmers and ranchers, and land access including the Center for Rural Affairs’ Land Link program, which matches beginning farmers with landowners.

“The different programs that match farmers that are wanting to exit the field and those that want to get started is a great program,” continued McDermott.

“It was an honor for us to give something back to these young men and women who served their country,” said Starkweather. “It was exciting to  hear the questions that came up and to watch as veterans connected with established farmers and speakers to learn more about their experiences.  We look forward to assisting veterans achieve their dreams of farming or ranching and returning to rural areas.

“And we cannot give enough thanks to our partners - Farmer-Veteran Coalition, Nebraska Farmers Union, AgriAbility Project, the Farm Service Agency and of course, USDA’s Risk Management Agency for providing funding for the project,” added Starkweather.

A free lunch for workshop attendees was sponsored by Nebraska Farm Bureau, Nebraska Veterans of Foreign Wars and Farm Credit Services.

Additional information on the workshop agendas and later farm tours is online at www.cfra.org/veteran_farmers_project.



'Healthy Farms, Healthy Kids Nebraska' Funded

The Nebraska Sustainable Agriculture Society (NSAS) youth program, "Healthy Farms, Healthy Kids Nebraska!" has been funded. The goal of "Healthy Farms, Healthy Kids Nebraska!" is to increase the capacity and opportunity for youth interested and involved with sustainable and organic agriculture in Nebraska.

"This program will continue to lay the foundation for the next generation of farmers and those interested in supporting farmers, by affording youth the opportunity to be an active participant in where, why and how their food is produced," said William Powers, executive director of NSAS.

A major part of the program is funding for the growing youth program at the annual NSAS Healthy Farms Conference. During the conference in February, youth were able to participate in numerous workshops including; beekeeping and native pollinators, the Tree Adventure at Arbor Day Lodge, history of root vegetables and many more. Another part of the program is taking youth and youth groups to area farms that are utilizing sustainable and organic principles on their farms. One of the farms youth will have the opportunity to visit is a certified organic dairy farm and participates in a pasture walk and learn about rotational grazing as well as value-added opportunities in dairy. Another farm specializes in pastured poultry as well as vegetable and fruit production.

The funding for "Healthy Farms, Healthy Kids Nebraska!" comes from a SARE Youth Educator Grant. For more information about SARE Grants please visit, www.northcentralsare.org/. If you are interested in participating in the program or have a group interested in participating please contact William Powers at healthyfarms@gmail.com or 402-525-7794.



US Ethanol Stocks, Production Dip
Domestic ethanol inventories were drawn down 85,000 barrels (bbl) to 22.628 million bbl for the week-ended March 23, according to fresh data from the Energy Information Administration, although stocks are up 12.6% from a year ago.  Total U.S. ethanol stocks have risen by 5.57 million bbl, or about 32.6%, since Dec. 9, 2011, when a string of supply builds began.

Meantime, ethanol production from domestic plants declined 4,000 barrels per day (bpd) to 889,000 bpd last week, and is down 1.5% from the year-ago level.  The 4-week average for ethanol production stood at 895,000 b/d for an annualized rate of 13.72 billion gallons.

Implied demand, as measured by refiner and blender net inputs, rose 3,000 bpd to 807,000 bpd from the prior week. Refiner and blender net inputs represent a major portion of implied demand for ethanol.

Elsewhere, the EIA reported that implied demand for motor gasoline rose 331,000 bpd to 8.71 million bpd for the week-ended March 23 while four-week average gasoline demand at 8.4 million bpd was down 6.1% from the level seen a year ago. Expressed as a percentage of daily gasoline demand, daily ethanol production was 10.21%.

On the co-products side, ethanol producers were using 13.479 million bushels of corn daily to produce ethanol and 100,056 metric tons of livestock feed, 90,271 metric tons of which were distillers grains. The rest is comprised of corn gluten feed and corn gluten meal. Additionally, ethanol producers were providing 4.09 million pounds of corn oil daily.



Natural Gas Price Drops to 10-Year Low
Natural gas prices tumbled to a 10-year low Thursday after a surprising jump in U.S. supplies.

The futures price dropped sharply in New York after the government reported that natural gas inventories expanded well beyond what analysts expected. The country's total supply grew by 57 billion cubic feet last week to a level that's now 59 percent above the five-year average.

There's enough gas in storage to supply all the country's needs for more than a month, and analysts say storage facilities across the U.S. will be pushed close to capacity in coming months.

The U.S has enjoyed a bounty of natural gas for the past few years thanks to advances in well drilling that have allowed energy companies to tap vast, petroleum-soaked layers of shale rock. The boom in production wasn't as noticeable at first because of unseasonably warm summers and cold winters that forced homeowners to use more gas.



Bill Blocking E15 Lawsuits Eyed
Gas-station owners wouldn't be liable for problems caused by certain blends of ethanol fuel under a bill a pair of Republican lawmakers is preparing to introduce as early as Thursday, according to people familiar with the draft legislation.

The bill is designed to block lawsuits related to E15, a gasoline blend with 15% ethanol.

The Environmental Protection Agency has said E15 can, if used properly, be used in cars with model years 2001 and later. But older engines may not be able to handle the fuel without malfunctioning.

The auto and gasoline industries worry that they could be held liable if E15 was put in the wrong engine, damaged a gas station storage tank or caused some other harm because it was misused.



March Farm Prices Received Index Up 5 Points

The preliminary All Farm Products Index of Prices Received by Farmers in March, at 186 percent, based on 1990-1992=100, increased 5 points (2.8 percent) from February. The Crop Index is up 8 points (3.9 percent) and the Livestock Index increased 3 points (1.9 percent). Producers received higher prices for soybeans, corn, broilers, and cattle and lower prices for milk, strawberries, snap beans, and lettuce. In addition to prices, the overall index is affected by the seasonal change based on a 3-year average mix of commodities producers sell. Increased monthly movement of soybeans, strawberries, broilers, and milk offset decreased marketings of corn, cattle, cotton, and wheat.The preliminary All Farm Products Index is up 13 points (7.5 percent) from March 2011. The Food Commodities Index, at 173, increased 5 points (3.0 percent) from last month and March 2011.

Prices Received by Farmers
All crops: The March index, at 213, increased 3.9 percent from February and is 7.6 percent above March 2011. The index groups with the largest contributions to the increase were feed grains & hay, oilseeds, commercial vegetables, and fruits & nuts.

Food grains: The March index, at 230, is 1.8 percent above the previous month but 1.3 percent below a year ago. The price of March all wheat, at $7.24 per bushel, is up 14 cents from February but 31 cents below March 2011.

Feed grains & hay: The March index, at 276, increased 3.0 percent from last month and is 20 percent above a year ago. The corn price, at $6.48 per bushel, is up 20 cents from last month and 95 cents above March 2011. The all hay price, at $181 per ton, is $5.00 higher than February and $55.00 higher than March 2011. Sorghum grain, at $11.30 per cwt, increased 50 cents from February and 70 cents from March last year.

Cotton, Upland: The March index, at 154, is up 1.3 percent from February and 11 percent above last year. The March price, at 93.6 cents per pound, is up 1.2 cents from the previous month and 9.2 cents above last March.

Oilseeds: The March index, at 235, increased 6.8 percent from February and is 3.1 percent higher than March 2011. The soybean price, at $13.10 per bushel, increased 90 cents from February and is 40 cents higher than March 2011.

Livestock and products:
The March index, at 161, is 1.9 percent above last month and 5.9 percent higher than March 2011. Compared with a year ago, prices are higher for cattle, broilers, eggs, calves, hogs, and turkeys. The price for milk is down from last year.

Meat animals: The March index, at 169, is up 1.8 percent from last month and 12 percent higher than last year. The March hog price, at $65.70 per cwt, is up 20 cents from February and $2.80 higher than a year ago. The March beef cattle price of $130 per cwt is up $3.00 from last month and $15.00 higher than March 2011.

Dairy products: The March index, at 133, is down 2.2 percent from a month ago and 15 percent lower than March last year. The March all milk price of $17.40 per cwt is 30 cents lower than last month and down $3.00 from March 2011.

Poultry & eggs: The March index, at 174, is up 8.1 percent from February and 16 percent above a year ago. The March market egg price, at 79.1 cents per dozen, increased 12.2 cents from February and is 13.9 cents above March 2011. The March broiler price, at 57.0 cents per pound, is up 4.0 cents from February and 8.0 cents above a year ago. The March turkey price, at 68.5 cents per pound, is up 3.5 cents from the previous month and 8.6 cents from a year earlier.

Prices Paid Index up 1 Point
The March Index of Prices Paid for Commodities and Services, Interest, Taxes, and Farm Wage Rates (PPITW) is 210 percent of the 1990-1992 average. The index is up 1 point (0.5 percent) from February and 9 points (4.5 percent) above March 2011. Compared with February, higher prices in March for diesel, gasoline, feed grains, and concentrates offset lower prices for nitrogen, potash & phosphate, feeder cattle, and supplements.



USDA Announces Milk Income Loss Contract Program Payment Rate for February Production

U.S. Department of Agriculture (USDA) Farm Service Agency (FSA) Administrator Bruce Nelson today announced the February payment rate for the Milk Income Loss Contract (MILC) program. The February MILC payment rate is $0.3895043 per hundredweight. This is the first time there has been a payment for MILC since April 2010.

“Dairy producers are affected by the market price for milk and the price of feed to sustain their herds,” said Nelson. “While milk prices have remained above the $16.94 base used in the MILC calculation, the increase in feed prices has triggered payments because of the feed ration component.”

MILC payments are triggered when the Boston Class I milk price falls below $16.94 per hundredweight, after adjustment for the cost of dairy feed rations. MILC payments are calculated each month using the latest milk price and feed cost.

The 2008 Farm Bill authorized MILC through Sept. 30, 2012. Producers must meet the Average Adjusted Gross Income requirement and provide marketing data to the FSA County Office in order to qualify. New dairy producers can apply for program benefits anytime through Sept. 30, 2012, at local FSA offices.

Additional information about the MILC program can be found at http://www.fsa.usda.gov/Internet/FSA_File/milc2011.pdf, or by visiting a local FSA Service Center.



USDA: Crop Survey Response Rates Down
The response rate among farmers to key government crop surveys has gradually fallen in recent years, a U.S. Department of Agriculture official said Wednesday.

Farmer response rates in recent rounds of the agency's quarterly agricultural surveys have been around 75% to 80%, down about five percentage points from a decade ago, said Joe Prusacki, director of the statistics division at the USDA's National Agricultural Statistics Service.

The survey is used by the federal government to determine how many acres farmers will plant with key crops such as corn and soybeans. The USDA also surveys farmers quarterly to determine how much grain is in storage.

Possible reasons for the decline in participation include growing anti-government sentiment among farmers and difficulty getting them to answer their phones if they have caller ID and don't recognize the number, Prusacki said. The USDA also collects data for the survey online and through other means.

The USDA surveys more than just farmers for its grain storage reports. Response rates are generally higher--around 90%--for non-farm sites such as mills and elevators that store grains or oilseeds, Prusacki said.

The falling farmer response rate has "not really" affected the accuracy of the USDA reports, Prusacki said, adding that the agency tracks trends in its data.



USDA Explores Feasibility of Alternative Energy Production at Airports

A recent study conducted by researchers from the U.S. Department of Agriculture's (USDA) Animal and Plant Health Inspection Service (APHIS) highlights the potential for alternative energy production at airports. The study findings were published in an article titled "Airports Offer Unrealized Potential for Alternative Energy Production" in Environmental Management and indicates that airports may want to consider converting to alternative fuels where it is both economically and environmentally beneficial.

"Some available grasslands at airports have the potential to spur the type of innovation we need to build American-made, homegrown biofuels and biobased products that will help to break our dependence on foreign oil and move our nation toward a clean energy economy," said Agriculture Secretary Tom Vilsack. "Converting airport grasslands to biofuel, solar or wind production not only provides more environmentally-sound alternative energy sources for our country, but may also increase revenue for airports and reduce the local abundance of potentially hazardous wildlife to aircraft. Such efforts may be particularly beneficial for rural economic development, as many rural airport properties contain expansive grasslands that potentially could be converted to biofuel crops or other renewable energy sources."

While federally obligated airports have restrictions on how land may be used, the Federal Aviation Administration (FAA) is committed to working with airports interested in pursuing the potential for changes in land use to support alternative energy production.

Researchers at the USDA-APHIS National Wildlife Research Center (NWRC) note that many airport properties are already managed to reduce wildlife abundance and habitat quality as part of efforts to avoid wildlife collisions with aircraft. Once biofuel crops are identified for airport use that have low wildlife-strike risks compared to existing airport landcovers, converting grasslands to these land uses could produce renewable energy and also provide airports with an additional source of revenue.

Ongoing and future NWRC research hopes to identify renewable energy practices, including specific types of biofuel crops, which limit use by wildlife hazardous to aircraft and are compatible with safe airport operations. NWRC researchers and collaborators are currently studying wildlife use of solar arrays and adjacent airport grasslands in Arizona, Colorado and Ohio, as well as wildlife use of experimental plots containing switchgrass and mixed warm-season native grasses in Mississippi. Researchers note the economic profitability of biofuel, solar or wind production will vary markedly, but will depend primarily on yield, establishment and maintenance costs, opportunity costs of land (i.e., land rental or revenue from other commodities), and processing or utilization costs. For many airports where land is currently available, the benefits may outweigh the costs. For related photos, please see http://www.flickr.com/photos/usdagov/sets/72157629261940922/.

The USDA-APHIS National Wildlife Research Center is the research arm of the wildlife services (WS) program. NWRC's field station in Sandusky, Ohio, is dedicated to providing a scientific foundation for WS and FAA programs that reduce wildlife collisions with aircraft. NWRC research is focused on understanding the nature of wildlife hazards on and near airports, developing management tools to reduce those hazards, and providing WS, airport personnel, and the FAA with information on the latest strategies for controlling wildlife hazards.



Mosaic Reports Third Quarter Results

The Mosaic Company, Plymouth, Minn., reported third quarter fiscal 2012 net earnings of $273 million, compared to $542 million a year ago. The decline was primarily driven by lower potash volumes and higher phosphate raw material costs. Earnings per diluted share were $0.64 in the quarter compared to $1.21 in the quarter last year. In the 2012 quarter, earnings per diluted share were negatively impacted by notable items totaling $0.08, primarily foreign currency transaction losses. Mosaic's net sales in the third quarter of fiscal 2012 were $2.2 billion, flat with the same period last year, as growth in phosphate sales was offset by declines in potash sales.

"We are continuing to make significant strategic progress for long-term success even as we work through seasonal and cyclical market factors, and we feel very good about our business momentum," said Jim Prokopanko, president and CEO of Mosaic. "Our potash expansion initiative remains on track and on budget, as we bring several major projects to completion this calendar year. Our innovative premium phosphate product, MicroEssentials, continues to win an increasing share of North American sales, and we will have new capacity in fiscal 2013.

"During the third fiscal quarter, we reached two important agreements to resolve matters that created uncertainty for investors. We reached an agreement on our potash tolling dispute, which will result in 1.3 million tonnes of peaking capacity for Mosaic beginning in January 2013, and we reached a settlement agreement to allow us to return to full operation at the South Fort Meade phosphate mine. We also demonstrated both the strength of our balance sheet and our commitment to shareholders by increasing our annual dividend by 150 percent."

Mosaic's gross margin for the third quarter of fiscal 2012 was $522 million, or 24 percent of net sales, compared to $854 million, or 39 percent of net sales, a year ago. Third quarter operating earnings were $414 million, a decrease of 46 percent compared to $771 million a year ago. The decreases in gross margin and operating earnings were driven primarily by lower potash volumes and higher phosphate raw material costs.