Thursday March 8 Ag News

UNL Survey: Agland Values Jump 31 Percent in 2011

Nebraska's agricultural real estate values jumped 31 percent in the last year, the largest increase in the 34-year history of the University of Nebraska-Lincoln's annual survey.

The 2012 UNL Nebraska Farm Real Estate Survey "confirms what most people close to agriculture already knew -- agricultural land values across the state have shot upward in recent months," said Bruce Johnson, the UNL agricultural economist who conducts the survey.

Preliminary survey results show the state's all-land average value as of Feb. 1 to be at $2,410 per acre, 31 percent above the year-earlier level. The annual gain is a new record in both dollar amount and percentage.

Cropland especially showed significant value gains in every region of the state, with increases of 35 percent or more noted in several areas.

"Clearly, a booming cash-grain economy in 2011 translated into spirited bidding for cropland," Johnson wrote in this week's Cornhusker Economics, a weekly publication of UNL's Department of Agricultural Economics. "And, at the same time that demand was robust, the amount of land for sale in any given local area was generally minimal."

Johnson said survey reporters said the land-transfer market has been so thin that it's difficult to get a good reading on it.

Grazing land classes showed more modest value gains for the year, but overall for the state still showed a 19 increase for non-tillable grazing land. The tillable grazing land class, which is land considered to be potentially converted to cropland, recorded significantly higher values and larger higher percentage value gains in those areas of the state where no moratoriums preclude further irrigation expansion.

Reflecting the great resource diversity across the state, the per-acre values of land vary significantly. For example, the average value of center pivot irrigated land (pivot not included in the value) ranges from about $2,600 per acre in the Northwest District to nearly $8,000 per acre in the East District, with the highest quality irrigated land exceeding $10,000 per acre. Dryland cropland values show an even greater spread of more than seven-fold from west to east.

UNL survey reporters also reported higher cash rental rates for 2012 for all the land classes. But the percentage advances of cash rents over the previous year were considerably below the land value advances. For cropland, the cash rent advances usually fell in the 10 percent to 20 percent range.

Johnson said it's reasonable to ask whether the gains of last year are sustainable.

"If one assumes that farm incomes will remain at 2011 earnings levels or higher, then one may answer with a guarded yes," he wrote. "However, more likely is an immediate future that is economically volatile for production agriculture, triggered by weather patterns, the strength of the dollar, interest rates, international financial fallouts, and political unrest both here and abroad.

"That said, there is no question that some retreat of these value advances could easily happen in the next few years," Johnson added, calling that a "reality reset.

"And it may be just what is needed as market participants are able to more accurately assess the underlying market fundamentals," he said.

Final figures from this year's report will be available later this spring. For more information see the Department of Agricultural Economics newsletter at the departmental website, www.agecon.unl.edu.



Platte Valley Cattlemen Monthly Meeting March 20th

The Platte Valley Cattlemen monthly meeting is scheduled for March meeting will be on Tuesday, March 20th, at Wunderlich’s Catering in Columbus.  The topic for the evening will be presented by Nebraska Cattlemen on Nutrient Management.  NDEQ nutrient management specialist will give a presentation on new and expanding regulations.  NDEQ and other industry specialists will also be in attendance to answer any questions.  Please note this meeting is on Tuesday night.  Social hour will begin at 6:00 p.m. and is being sponsored by Settje Agri-Services & Engineering, Inc.   The meal will be at 7:00 p.m., sponsored by We Support Agriculture, JES Environmental Services Inc., Nutrient Advisors LLC, and Settje Agri-Services & Engineering, Inc.



Smith Commemorates National Agriculture Day

Congressman Adrian Smith (R-NE) released the following statement in commemoration of National Agriculture Day:  “Nebraska’s agricultural producers embody the can-do spirit which makes our nation exceptional,” said Smith. “Our farmers and ranchers provide nourishment around the world and continue to contribute to one of the brightest parts of our economy. This alone is a tremendous source of pride for Nebraskans. National Agriculture Day gives us an opportunity to reflect on the important role producers play in America’s success story.”



Northey: Ag Day Opportunity to Celebrate Iowa

Iowa Secretary of Agriculture Bill Northey Wednesday said that National Ag Day is an opportunity to celebrate the many contributions agriculture makes to the state. National Ag Day is March 8 and is designed to recognize and celebrate the abundance provided by agriculture.

"On a day designed to recognize the abundance provided by agriculture, Iowa has a lot to celebrate," Northey said. "Iowa is the national leader in the production of corn, soybeans, pork, eggs and ethanol while also being among leaders in the number of farmers markets. A wide variety of agribusinesses, biotechnology, renewable energy and other ag related businesses also have their home here. All of this is due to the quality of our land and the productivity of our farmers."

Total cash sales from our farms have nearly than doubled from $12.2 billion in 2002 to $23.2 billion in 2010. Preliminary estimates show agriculture sales from Iowa farms could be close to $30 billion in 2011.

In 2011 Iowa farmers again lead the nation in production of:
-- Corn (2.36 billion bushels, 172 bushels per acre, 19% of U.S. total)
-- Soybeans (466 million bushels, 50.5 bushels per acres, 15% of U.S. total)
-- Hogs (19.8 million on hand, 30% of U.S. total)
-- Eggs (52.1 million layers, 14.5 billion eggs)

Iowa is second nationally in red meat production, cash receipts, net farm income and overall agriculture export value of $7 billion. Iowa farmers are also in the top ten nationally in turkey, dairy, beef, goat and lamb production.

"Iowa was founded because of agriculture and it continues to be our state's leading industry," Northey said. "National Ag Day is an opportunity to highlight all that agriculture means to Iowa, but also all that Iowa agriculture means to the world."

The agriculture products raised in Iowa are in strong demand around the world. Iowa is second nationally in overall agriculture export value with $7 billion in exports annually.

In addition to exporting the agricultural goods raised in the state, the agriculture technologies developed and built in Iowa are also in demand around the world. This includes livestock production systems, crop production equipment, seed technology and others.

The top five importers of Iowa agricultural, value added and manufactured goods are Canada, Mexico, Japan, China and Germany.

"Iowa is a national and international leader in agriculture and well positioned to continue to grow," Northey added.



Nebraska Farm Bureau Veteran Olsen Joins 25x'25 Steering Committee

Keith Olsen, the former president of the Nebraska Farm Bureau and for nearly 20 years a member of the state bureau's Board of Directors, has accepted a position on the 25x'25 National Steering Committee.

The 25x'25 Alliance is made up of nearly 1,000 endorsing partner organizations who believe that by 2025, America's farms, ranches and forestlands can meet 25 percent of the nation's energy needs with renewable energy - biofuels, biomass, wind energy, solar power, geothermal energy and hydropower - all while providing an abundant, affordable and safe supply of food, feed, fiber and fuel.

Olsen, who is from Grant, NE, retired in December after nine years as the state farm bureau's president. He has been a member of the Nebraska Farm Bureau since 1967, becoming vice president in 1997 before being elected president in 2002. He was elected to the board of directors of the American Farm Bureau Federation in 2004. He is also a director of Farm Bureau Life, Farm Bureau Property & Casualty and Western Ag. In February 2003 he became a director of Blue Cross-Blue Shield of Nebraska.

Olsen received a Bachelor of Science degree in agricultural economics in 1967, and since then has been raising dryland wheat and corn on 3,000 acres in southwest Nebraska. He is also a producer and marketer of certified seed wheat, and was a self-employed tax practitioner for a number of years.

Nebraska has experienced remarkable growth in renewable energy, including biofuel and wind energy production. On-farm facilities, including anaerobic digesters, solar panels and small wind turbines, as well as some geothermal development, also are showing strong potential in the state.

"I believe my background as a farmer and my involvement in public policy on both the state and national level will serve me well on the Steering Committee," Olsen said of the appointment. "During my years with Farm Bureau, I have had the opportunity to work for the development of alternative fuels. As a producer, I have changed farming methods that have made my farm more energy efficient. It is experience that I can use in helping 25x'25 meet its goals and help this country prepare to meet the energy and food needs of an increasing world population."

"Keith will bring some honest farming perspective to our steering committee," said Bill Richards, steering committee co-chair. "He understands the practical application and benefits of bringing solutions to many of our energy challenges from the land. We will benefit greatly from Keith's years of leadership in Nebraska and U.S. agricultural circles."

"It's important that as we pursue the 25x'25 vision, we must take advantage of the experience of a veteran agricultural producer like Keith," said Read Smith, the other steering committee co-chair. "With Congress drafting a new Farm Bill, Keith's views on how that legislation may enhance our pursuit of the 25x'25 goal will be valued."



NFU Completes 110th Anniversary Convention   

National Farmers Union (NFU) concluded its 110th Anniversary Convention in LaVista yesterday after four days of speakers, breakout sessions, tours, and policy discussion. More than 500 Farmers Union members from across the country attended the event.

“Convention is the most important even of the year for Farmers Union, because it is where our members determine our policy for the coming year,” said NFU President Roger Johnson. “It is particularly important that we focus on our top priorities this year, since we will be writing the next farm bill and be doing so under significant budgetary constraints.”

Farmers Union delegates re-elected President Roger Johnson and Vice President Claudia Svarstad and passed special orders of business relating to investment priorities in the 2012 Farm Bill, the Market-Driven Inventory System, Country-of-Origin Labeling, dairy, beginning farmer programs, the beef checkoff, and cuts to rural U.S. Postal Service offices. Members heard from numerous speakers, including U.S. Secretary of Agriculture Tom Vilsack, Reps. Collin Peterson, D-Minn., and Jeff Fortenberry, R-Neb., and Growth Energy CEO Tom Buis.

Convention attendees also had the opportunity to attend breakout sessions on topics such as using charitable donations to create tax savings, beginning farmers and ranchers, dairy, the Market-Driven Inventory System (MDIS), farm safety, grassroots advocacy, Farmers Union’s Place in global agriculture, gaining access to credit, renewable energy and climate policy, and the roles of women in agriculture and philanthropy.

“The farm bill is a complex piece of legislation that affects so many portions of the agriculture industry,” said Johnson. “We had breakout sessions and speakers to discuss various components of the bill to help educate our members on the different aspects of the bill. This allowed them to make more informed choices as they discussed organizational policy.”

NFU Delegates Adopt Special Orders on Dairy Policy, Beef Checkoff    
National Farmers Union (NFU) delegates adopted four special orders of business, and amended a previously passed order this morning at the 110th Anniversary Convention in La Vista, Neb.

“Through the special orders passed today, Farmers Union delegates have indicated the priorities of the national organization,” said NFU President Roger Johnson. “The issues covered in these orders are critical to U.S. family farmers, ranchers and fishermen and we will work over the coming year with the administration and Congress to be sure our voices are heard.”

Delegates amended a previous order related to the 2012 Farm Bill addressing interstate meat shipments. The new order reads that the livestock title should include language that deems products inspected under a state cooperative agreement, which are equal to or exceed USDA inspection standards, eligible for interstate trade.

In light of recent information stating accountability issues concerning the beef checkoff and implementation of programs, NFU delegates adopted a special order directly related to the checkoff.

“NFU supports amending the Beef Promotion Act, thereby allowing the Cattlemen’s Beef Board (CBB) to become a completely independent and freestanding organization,” the order says. “The amended Act should state that no organization may receive contracts for more than 50 percent of the total checkoff dollars on an annual basis. No beef checkoff dollars can be used to pay for any portion of salaries or benefits of people employed by a policy/lobbying organization or of an individual consultant/lobbyist.”

The order continues, “NFU calls for complete separation between any policy organization and the Federation of State Beef Councils to provide for complete checkoff accountability. We also believe any increase in the checkoff should have to be tied to a two-year periodic producer referendum on the checkoff program. Finally, NFU calls for the rewrite of the beef checkoff act to house the program with other mandatory checkoff programs.”

To represent U.S. family dairies, the delegates passed a special order urging any changes to dairy policy acknowledge the lack of market power among dairy farmers by including meaningful supply management tools.

“If margin insurance goes forward, efforts to ensure that family dairies can remain competitive must be instituted, such as premium subsidies for the first four to five million pounds of milk to help offset the cost of the margin insurance program should be included in the program,” the statement says.

In a third special order, NFU calls on Congress to replace the fast-track trade authority with a forward-looking trade negotiating process that ensures U.S. trade expansion.

In support of beginning farmers, the delegation passed a special order that stated support for the Beginning Farmer and Rancher Opportunity Act of 2011 as a way to support beginning farmers and ranchers.

“U.S. Secretary of Agriculture Tom Vilsack has stated a goal of establishing 100,000 new farmers and ranchers,” the order says. “In order to continue to address these critical concerns, additional legislation and federal action, including the 2012 Farm Bill, must be enacted and funded to meet the unique needs and barriers facing beginning farmers and ranchers and ensure they can enter and sustain farming or ranching as a viable livelihood.”

Delegates also passed a special order supporting maintaining the current level of U.S. Postal Service (USPS) service.

NFU Delegates Outline 2012 Farm Bill Priorities, Continue Support for COOL 
National Farmers Union (NFU) delegates passed three special orders of business today, setting priorities for farm bill negotiations and maintaining its support for Country-of-Origin Labeling (COOL).

NFU delegates adopted a special order of business calling for the inclusion of the Market-Driven Inventory System (MDIS) in the 2012 Farm Bill. A study of MDIS, commissioned by NFU, found that over the next ten years, farmers and ranchers would receive a slightly higher income under MDIS compared to current policies. Under MDIS policies, the federal government would spend approximately 40 percent of what it would if current policies were extended. The study estimated that the current policies would cost a total of $65 billion, while MDIS policies would cost $26 billion from 2012 to 2020. The value of exports sold would also increase $15 billion dollars under MDIS policies during the period studied.

“NFU calls on Congress to enact a new federal farm bill that uses MDIS as its central component to maintain a return on the cost of production plus an opportunity for reasonable profit for farmers and ranchers,” the statement says.

Relating to investment in the 2012 Farm Bill, a second order called for adequate funding for the U.S. Department of Agriculture (USDA) microloan programs, reestablishing the link between federal crop insurance eligibility and compliance with conservation requirements, and including a means of protecting farmers against catastrophic losses in the next farm bill. NFU also called for robust, mandatory funding of the Rural Energy for America Program, the Biomass Crop Assistance Program, and the Biorefinery Assistance Program.

“Agriculture is a primary driver of our rural and national economy, providing employment for one in 12 Americans, and is a job-creating industry based upon sustained production by approximately 2.2 million family farmers and ranchers,” the order states. ”The next farm bill must be written to serve the needs of farmers and ranchers in times of need so that agriculture can continue to be a job-creating industry for all of America.”

The special order of business also urged Congress to include a strong livestock title in the 2012 Farm Bill that includes mandatory interstate shipment of meat products from state-inspected meat plants, improved food safety provisions, and the creation of the Livestock Indemnity Program and Livestock Forage Program, among other provisions. NFU delegates also said that nutrition programs such as Supplemental Nutrition Assistance Program should be reauthorized at 2008 levels or higher and that USDA should provide Electronic Benefit Transfer machines free of charge to all farmers markets, community-supported agriculture systems, farm stands, and other direct marketing outlets so federal nutrition program recipients may use their benefits at healthy food locations.

In the order related to COOL, NFU calls on the office of the United States Trade Representative (USTR) to negotiate with Mexico and Canada to resolve the dispute while preserving the country-of-origin labeling law. Should that fail, the USTR must appeal the WTO decision because it is a frontal assault on U.S. sovereignty, the transparency and integrity of our domestic markets, adversely impacts U.S. food consumers by denying them the information they need to make informed buying decisions, denies U.S. farmers and ranchers the opportunity to differentiate their high quality food products in their own U.S. marketplace, and will compound the problems of a negative balance of trade deficit.

“NFU has been an outspoken proponent for COOL from the very beginning,” said NFU President Roger Johnson. “The delegates were passionate about this issue and will refuse to accept the WTO’s recent decision without a fair fight. We are proud of the work U.S. farmers and ranchers do to provide an abundant and high quality food supply. We urge the USTR to take action that will allow us to label food so that we can meet the demands of our customers.”



High Participation in Program Shows Producers’ Commitment to Conservation Stewardship

State Conservationist Craig Derickson announced that USDA’s Natural Resources Conservation Service (NRCS) in Nebraska received 1,044 applications for the first Conservation Stewardship Program (CSP) ranking period of the fiscal year.

CSP has been a popular program in Nebraska.  In the last two years, out of the applications received in the state, over 1,600 contracts in 91 counties have been enrolled into CSP. 

Nationwide, NRCS received 17,654 applications for CSP.  NRCS expects to enroll a total of 10.8 million acres into the program in fiscal year 2012.

“Farmers and ranchers in Nebraska who are deeply committed to being even better stewards of natural resources have proved once again that CSP is a program that works for them,” Derickson said.  “NRCS looks forward to working with producers to bring the benefits of quality conservation to their operations.”

CSP offers payments to producers who maintain a high level of conservation on their land and agree to adopt higher levels of stewardship.  Eligible lands include cropland, pastureland, rangeland and non-industrial forestland.

CSP is offered in all 50 states, tribal lands and the Pacific and Caribbean areas through continuous sign-ups.  Administered by NRCS, this Farm Bill program provides many conservation benefits including improved water, soil, and air quality, decreased soil erosion, and enhanced wildlife habitat.



ASA Supports Poultry Industry as USTR Takes Action against Indian Trade Barriers

The American Soybean Association (ASA) reaffirms its longstanding support of the U.S. poultry industry after yesterday’s announcement from the Office of U.S. Trade Representative (USTR) that the United States will challenge India’s prohibition on imports of U.S. poultry with the initiation of dispute settlement proceedings before the World Trade Organization (WTO).

ASA President Steve Wellman offers the following statement on the USTR’s action:

“ASA stands firmly beside our industry colleagues at the U.S. Poultry and Egg Export Council, the National Chicken Council and the National Turkey Federation as USTR seeks to open the Indian market to U.S. poultry exports,” said Wellman. “Animal agriculture is the soybean industry’s largest customer, and over 90 percent of U.S. soybeans produced are used as a high-quality protein source for animal feed. If the barriers to U.S. poultry exports to India were eliminated, those exports would top $300 million per year, meaning a dramatic increase in demand for soybean meal as poultry feed. We will continue to monitor these developments and encourage an outcome that is in the best interest of American farmers.”



Iowa Farm Bureau Offers the Ultimate Grain Game

Grain is the name of the game in a new commodity challenge simulation being offered by the Iowa Farm Bureau Federation (IFBF).

Running through Oct. 12, Iowa Farm Bureau members can participate in a commodity challenge simulation to learn more about markets, pricing and risk management...but without risking real bushels and money. Iowa Farm Bureau members involved in the simulation are allocated virtual grain (75,000 bushels of corn and 25,000 bushels of soybeans) and challenged to make wise marketing decisions for the 2012 new crop to be harvested in October.

"The goal of this grain marketing challenge isn't selling the highest price, but learning how to effectively manage the risk associated with today's volatile markets," explained Ed Kordick, IFBF commodity services manager. "We want to help farmers understand how to use various tools and see how they work with real markets. Risk management is the focus."

Members can join the simulation challenge at any time. They receive educational materials by e-mail and online. Participants must be members of their county Farm Bureau to access the simulation. To register, go to www.iowafarmbureau.com and click on the hotbox banner. For more information, contact Kordick at ekordick@ifbf.org or 515-225-5433.



La Nina Could Be Done by End of April 2012

The La Nina weather pattern blamed for a devastating drought in Texas and a bad dry spell in South America should be gone by the end of April, but its impact will persist in large swathes of the southern United States which may complicate conditions for farmers planting their spring crops.

The U.S. Climate Prediction Center said in a monthly update released on Thursday that La Nina is rapidly weakening and is expected "to transition to ... neutral conditions by the end of April 2012."

"La Nina-like impacts are expected to persist into the upcoming season," the CPC, an office under the National Oceanic Atmospheric Administration, explained.

The report fine-tuned the time frame when La Nina would dissipate. La Nina is an abnormal cooling of waters in the equatorial Pacific which can last for years and wreaks havoc over weather conditions in Asia and the Americas.

Its more infamous counterpart, El Nino, leads to a heating of those waters while sparking drought in Southeast Asia and Australia and floods in South America.

CPC said drier-than-average conditions are seen across Florida, the Gulf Coast and the southwestern United States.

Above-average rain is forecast for the Ohio valley and the lower Great Lakes region of the U.S..



NBB Calls on Senate to Extend Tax Incentive

The National Biodiesel Board issued the following statement Thursday as the Senate was poised to take up an amendment from Sen. Debbie Stabenow, D-Mich., that would extend the $1 per gallon biodiesel tax incentive:  "We applaud Sen. Stabenow for introducing this amendment and we urge all senators to support it," said Anne Steckel, vice president of federal affairs at the National Biodiesel Board. "This is about creating good-paying jobs and building up a U.S. energy industry that will help end our dangerous vulnerability to the kinds of oil price spikes we're seeing now."



Vilsack: Passing Farm Bill is Critical

Agriculture Secretary Tom Vilsack made it clear in his speech to a standing-room-only crowd of farmers and ranchers at Commodity Classic last week that the most important item on the agriculture agenda is passing the Farm Bill and getting it done soon.

"This job of writing a Farm Bill is not an easy task, but delaying is not going to make it any easier," Secretary Vilsack said on Friday during the general session at the Commodity Classic in Nashville, Tennessee, USA. "It is incumbent on all of us to make sure that we send a consistent message to our members of Congress that we expect action this year."

He said U.S. agriculture needs the certainty of the Farm Bill to understand what the rules will be. He noted that the Farm Bill must allow the industry to build on the progress recently seen in agriculture as experienced in the record farm income last year.

The flagship of the Farm Bill is a safety net which starts with a solid, stable crop insurance program.

"We've worked hard to expand crop insurance the last three years and will work hard to ensure that crop insurance is available to all producers," Secretary Vilsack said. "Last year, 55 million acres were struck with natural disasters, and UDSA will pay out a record amount of indemnity this year. We've paid out the over $30 billion of indemnity payments over the last three years. And that tells you a lot about the importance of this program."

As the Farm Bill is being crafted, he hopes the members of Congress will take into consideration that there is a difference between those beginning in farming and those who have been around for a while.



CSPI to Discuss Antibiotics in Animal Ag with House, Senate

On Thursday, the nonprofit Center for Science in the Public Interest and the Johns Hopkins Center for a Livable Future lead discussions among scientific experts on what they call the inappropriate use of antibiotics in animal agriculture. CSPI released a white paper analyzing 38 outbreaks of foodborne illness linked to pathogens that exhibited antibiotic resistance. Last year, antibiotic-resistant pathogens on meat and poultry products sparked three major outbreaks, causing 167 reported illnesses and one death. Emerging evidence also indicates that farmers, their families, and others who live and work near livestock and poultry farms are at increased risk of contracting resistant infections.

Honorary hosts include Rep. Louise Slaughter and Sen. Dianne Feinstein, while the conveners are Caroline Smith DeWaal, CSPI, and Dr. Robert S. Lawrence of the Johns Hopkins Center for a Livable Future.

Experts participating include Dr. Jim R. Johnson, University of Minnesota School of Medicine, Infectious Diseases Society of America; Dr. Stuart Levy, Tufts University School of Medicine, Alliance for the Prudent Use of Antibiotics; Dr. Lance Price, TGen Center for Food Microbiology and Environmental Health; and Dr. Tara Smith, University of Iowa College of Public Health.

The discussion focused on "The Science Is Clear: Inappropriate Antibiotic Use in Animal Agriculture Threatens Public Health" and include presentations and discussions regarding antibiotic resistance.  The event was held in the morning for the House and in the afternoon for the Senate.

According to its media release, CSPI held the event because "research has shown that the daily dosing of healthy food animals with antibiotics to promote growth (and prevent infection that could arise from unsanitary conditions) is a major reason for the rise in drug-resistant bacteria. These bacteria can spread on farms, through air and water, and in food to infect humans. Current agricultural use of antibiotics contributes to the rising trend of antibiotic-resistance and the spread of superbugs that are harder and more expensive to treat."



Smithfield Foods 3Q Down 61%

Smithfield Foods Inc.'s fiscal third-quarter earnings fell 61% on restructuring charges and higher costs as the country's top pork producer's sales increased slower than expected.

Smithfield -- whose brands also include John Morrell, Armour and Farmland --has seen its revenue increase in recent quarters on strong demand from foreign markets. But like other livestock producers, the company's bottom line faces challenges from persistently high feed costs. Smithfield had warned that its hog-production business could face losses in the fiscal third quarter as corn costs jumped and prices for animals fell on a seasonal basis.

For the quarter ended Jan. 29, Smithfield Foods reported a profit of $79 million, or 49 cents a share, down from $202.6 million, or $1.21 a share, a year earlier. Excluding items such as charges to streamline Campofrio's manufacturing operations and debt-extinguishment costs, earnings fell to 69 cents from 84 cents. Sales jumped 9.2% to $3.48 billion, aided by higher average prices and volume in the pork segment.

Total pork sales -- the biggest contributor to Smithfield's revenue -- rose 11%, reflecting an increase of 19% for fresh pork and 6.2% for packaged meats. A key area of expansion for many meat companies, including Smithfield, is branded and packaged meat products as they are typically more profitable than sales of commoditized products like live animals and fresh meat.

The hog-production segment's sales jumped 17%, while its international business saw a 1.3% rise.



USDA and Interior Announce Wildlife Conservation Efforts to Support Local Economies and Preserve Farm and Ranch Traditions

Agriculture Secretary Tom Vilsack and Secretary of the Interior Ken Salazar today announced a new $33 million partnership with farmers, ranchers and forest landowners to use innovative approaches to restore and protect the habitats for wildlife, including seven at-risk species and other vulnerable game species.

The announcement of the Working Lands for Wildlife partnership follows last week's White House Conference on Conservation that spotlighted community-driven conservation efforts as part of President Obama's America's Great Outdoors Initiative.

"America's natural resources play a significant role in building a strong and vibrant economy," said Secretary Vilsack. "Agricultural lands with healthy and abundant wildlife habitat support strong incomes for our farmers and ranchers and provide great opportunities for enhancing hunting and fishing, outdoor recreation and wildlife viewing."

"This innovative partnership aligns our goals of empowering America's farmers and ranchers to continue working their lands, while furthering conservation of imperiled species, such as the greater sage grouse, through voluntary measures," Secretary Salazar said. "The Working Lands for Wildlife initiative will allow us to focus our resources where we can do the most good and will serve as a model for a more efficient, more effective, and more cooperative way to improve the health and diversity of working landscapes and strengthen local economies."

Under this strategy, Federal, state and local wildlife experts jointly identify at-risk species that would benefit from targeted habitat restoration investments on private lands. Using the best available science, the partners will prioritize restoration actions on a large regional scale to most cost effectively focus assistance. In return for voluntarily making habitat improvements on their lands, the Federal government will provide landowners with regulatory certainty that they will not be asked to take additional conservation actions.

USDA's Natural Resources Conservation Service (NRCS) and Interior's U.S. Fish and Wildlife Service (FWS) will jointly prepare species recovery tools such as informal agreements, safe harbor agreements and habitat conservation plans to provide regulatory certainty to landowners. The goal is to have these tools in place for all priority species by the end of the year. The seven species initially selected for this expanded campaign are: greater sage-grouse, New England cottontail, bog turtle, golden-winged warbler, gopher tortoise, lesser prairie-chicken and the Southwestern willow flycatcher.

Today's announcement kicks-off the sign-up for Working Lands for Wildlife. Landowners can sign-up to manage and restore high-priority habitats for the seven specific wildlife species that are located across the country. Applications within the priority habitat areas will receive highest consideration.

Interested producers and landowners in targeted areas can enroll in the Wildlife Habitat Incentive Program (WHIP) on a continuous basis at their local NRCS field office. NRCS funds from WHIP will share the cost of conservation practices with landowners in areas known to support one or more of the selected species. For example, two conservation practices that improve sage-grouse habitat are prescribed grazing and brush management. In the past two years, ranchers implemented grazing systems on 1.3 million acres of large sagebrush to improve cattle forage and increase hiding cover for nesting birds. The additional grass cover is projected to increase sage-grouse populations by 8 to 10 percent.

For 14 years, WHIP has worked to protect, restore or develop fish and wildlife habitat for many species, including those considered at-risk. Since 2003, about $310 million has been committed to 23,000 farmers, ranchers and landowners to provide wildlife treatments on four million acres of private working lands.



Global Wheat Production May See New Record in 2012

FAO forecast that 2012 world wheat production will be the second highest on record at 690 million tonnes and also announced that international food prices rose one percent in February - the second increase in two months. FAO's quarterly Crop Prospects and Food Situation report forecast a 2012 wheat crop 10 million tonnes or 1.4 percent down from the record 2011 harvest but still well above the average of the past five years.

Although plantings have increased or are forecast to increase in many countries this year in response to continuing strong prices, a return to normal yields is expected in areas where record highs were achieved last year, the report said. But it was still too early for a global forecast of 2012 cereal output, it added.

Crop Prospects also noted a firming of international cereal prices in recent weeks due to tightening current wheat supplies and concerns over the impact of severe cold weather in Europe and the Commonwealth of Independent States.