Friday April 13 Ag News

Cool Season Forage Production Field Day 

Tuesday, April 24th, 2011. 10:30 a.m., Garrison, Nebraska. 

Site #1 (Smooth brome hay field)
A).  Comparative evaluation of numerous potential products (fertilizers/growth stimulants) 
B).  Evaluation of smooth brome response to three rates of RyzUp SmartGrass 
C).  Discussion of fertility and timing needs for optimal grass production                   
Site #1 is located just west of intersection of Highway 92 and Road L on north side of Highway 92 (1 mile north of Garrison; 7 miles east of Rising City; 2 miles west on Highway 92 from intersection of Highway 15 and 92 south of David City.  

Site #2   (Mixed bluegrass and other species pasture)      
A).   Effects of RyzUp SmartGrass and ProSol 20-20-20 on early season bluegrass growth 
B).   Tips for recovering an overgrazed pasture 
Site #2 (North side of Road 30, 1 mile south of Highway 92, between J and I Roads).  Site #2 from site #1:  2 miles west, 1 mile south, 1/4 mile west)

Presenting information will be Dr. Bruce Anderson, University of Nebraska-Lincoln Extension Forage Specialist, and Michael Rethwisch, University of Nebraska-Lincoln Extension Crops
Educator.     For more information contact the University of Nebraska-Lincoln Butler County Extension office. 



February Pork Exports Well Above Last Year; Beef Export Value Remains Strong

U.S. pork exports remained well ahead of last year’s record pace through February, while beef exports trended slightly lower in volume but posted excellent results in terms of value, according to statistics released by the USDA and compiled by the U.S. Meat Export Federation (USMEF).

Pork export volume (187,629 metric tons) was 9 percent higher than in February 2011, while value ($526.2 million) was up 21 percent. For the first two months of the year, pork exports totaled 399,086 mt valued at $1.09 billion – increases of 18 percent and 31 percent, respectively. This is the first time U.S. pork export value has reached the $1 billion mark after only two months.

February beef export volume (87,131 mt) was 3 percent lower than a year ago but export value remained exceptionally strong, increasing 10 percent to $409 million. Through the first two months of the year, beef exports totaled 176,585 mt (-2 percent) valued at $815 million (+12 percent).

“Export results were quite solid, especially considering the impact of market access issues in some destinations, particularly Taiwan and Southeast Asia,” said USMEF President and CEO Philip Seng. “We continue to expand the presence of U.S. pork in all key destinations - especially in North Asia and in Western Hemisphere markets. In the beef complex, export volume may be struggling somewhat due to price, but we are having great success directing beef cuts to the markets that value them most. This is keeping beef export value very strong – well ahead of the record pace established last year.”

Value per head, percentage of total production very strong for U.S. pork
February pork exports equated to 27.7 percent of total production when including both muscle cuts and variety meat, 24 percent for muscle cuts only. This compares to 27 percent and 22 percent, respectively, in February 2011. Export value equated to $58.17 per hog slaughtered, up 14 percent from last year’s figure of $51.06.

Exports to Mexico, the largest volume market for U.S. pork, were lower than the record tonnage recorded in December and January but still outpaced last February’s results in both volume and value. For the year, exports to Mexico were up dramatically compared to the first two months of 2011 – increasing 20 percent in volume (113,424 mt) and 24 percent in value ($208 million).

Japan remains the value pacesetter for U.S. pork, as February exports were steady in volume with last year but still achieved an increase of 17 percent in value. Through February, 2012 exports to Japan were 8 percent higher than a year ago in volume (80,316 mt) and 22 percent higher in value ($342 million).

“It takes a strong effort at every level to keep these mainstay markets performing at such a strong pace,” Seng explained. “The retail, foodservice and processing sectors are all critically important to the U.S. industry’s ability to remain the leading supplier to both Japan and Mexico, and USMEF continues to target them aggressively. We also are very focused on the branded market in Japan, which offers fertile ground for expanding sales of U.S. pork.”

Other pork export highlights for the first two months of 2012 include:
-    Exports to China/Hong Kong were 39 percent higher in volume (78,193 mt) and nearly doubled in value ($158.2 million, up 94 percent). February volume, however, was the smallest since June 2011.
-    Exports to Canada increased 36 percent in volume (36,484 mt) and 45 percent in value ($129.9 million).
-    While lower tariff rates prescribed in the Korea-U.S. FTA did not take effect until mid-March, exports to South Korea increased 11 percent in volume (36,399 mt) and 28 percent in value ($104 million).
-    Exports to Australia were one-third higher in both volume (12,423 mt) and value ($38.9 million).
-    Led by strong demand in Chile and Colombia, exports to the Central and South America region increased 18 percent in volume (13,091 mt) and 23 percent in value ($34.8 million).

Destinations where export volume was lower for the year included Taiwan (steady in value at $10.4 million but down 19 percent in volume to 4,693 mt), where the controversy over ractopamine residues has created an uncertain business climate and lowered imports from all sources. Regulatory issues in the Philippines and Singapore held back exports to the ASEAN region, where export value ($18.3 million) still achieved a small increase despite an 18 percent decline in volume (7,169 mt).

Russia, Middle East, Latin America lead beef export value surge
February beef exports equated to 12 percent of production when including both muscle cuts and variety meat and 9 percent for muscle cuts only. This compares to 12.9 percent and 10 percent, respectively, in February 2011. Export value equated to $208.05 per head of fed slaughter, up 14 percent from last year’s $182.12.

Beef exports to Russia are expected to benefit from a higher muscle cut tariff rate quota (TRQ) in 2012, as the TRQ was increased from 41,700 mt in 2011 to 60,000 mt this year. January-February exports to Russia were up 58 percent in volume (9,297 mt) and tripled in value to $38.2 million. The pace was even hotter when including only muscle cuts, which increased 131 percent in volume (5,746 mt) and 238 percent in value ($29.9 million).

Egypt led strong results for U.S. beef in the Middle East, with exports to the region increasing 13 percent in volume (23,507 mt) and 19 percent in value ($53.3 million). Volumes were lower for the United Arab Emirates and Saudi Arabia, but both destinations still achieved substantial increases in value.

Led by strong results in Chile, Peru and Guatemala, exports to the Central and South America region increased 63 percent in volume (5,651 mt) and 91 percent in value ($21.8 million).

“Export growth in these markets is reflective of a very successful effort to expand the global footprint of U.S. beef,” Seng said. “At one time, these markets were only a small factor in our global results, and buyers were exclusively interested in variety meat. But the U.S. industry has made great strides in marketing beef muscle cuts, many of which are underutilized domestically.”

Other beef export highlights for the first two months of 2012 include:
-    Mexico was the leading destination in terms of both volume (38,070 mt) and value ($170.6 million). This represents a decrease in volume of 6 percent, but a 13 percent increase in value.
-    Exports to Canada, which was the only $1 billion market for U.S. beef in 2011, slipped 3 percent in volume (24,072 mt) but increased 11 percent in value ($136.9 million).
-    Exports to Japan, which are still limited to beef from cattle 20 months of age or younger, were down 5 percent in volume (19,344 mt) but increased 16 percent in value ($123.6 million).

Having set a blistering pace in early 2011, beef exports through February to Korea were down 19 percent in volume (22,850 mt) and 15 percent in value ($102 million). Conversely, exports to Taiwan were very slow in the early months of 2011 because of an unsteady regulatory environment. Taiwan’s results for this year show an increase of 26 percent in volume (4,938 mt) and 30 percent in value ($30.7 million), but market conditions remain very fragile and March results will likely be lower. Exports to Indonesia have been dramatically reduced due to smaller import quotas, which contributed to a decline in exports to the ASEAN region of 15 percent in volume (9,938 mt) and 5 percent in value ($39.2 million).

Lamb muscle cut exports higher, variety meats sluggish
U.S. lamb exports through the first two months of the year were down 10 percent in volume (2,362 mt) and 4 percent in value ($3.8 million). However this was primarily due to a soft market for lamb variety meat exports, which were down 21 percent and 15 percent respectively. Lamb muscle cuts were up 6 percent in volume (1,162 mt) and 4 percent in value ($2.5 million), driven by strong results in the Caribbean and Canada.



Meats and Cheese Drive Slight Increase in Retail Food Prices

Retail food prices at the supermarket increased slightly during the first quarter of 2012 with protein staples – meats and cheese – showing the greatest increase in price, according to the latest American Farm Bureau Federation Marketbasket Survey.

The informal survey shows the total cost of 16 food items that can be used to prepare one or more meals was $52.47, up $3.24 or about 7 percent compared to the fourth quarter of 2011. Of the 16 items surveyed, 13 increased and three decreased in average price compared to the prior quarter. The cost for the overall basket of foods increased about 7 percent compared to one year ago.

About two-thirds of the quarter-to-quarter increase in the marketbasket of foods was due to higher retail prices for sliced deli ham, sirloin tip roast, ground chuck, bacon and cheddar cheese.

“Retail prices for meats and cheese were higher in the first quarter of the year due to generally strong demand and tight supplies, a situation that carried over from 2011,” said John Anderson, an AFBF senior economist. “According to Agriculture Department data, retail meat prices probably peaked sometime in the first quarter, and wholesale prices have declined noticeably in recent weeks. This suggests that retail meat prices may decline as 2012 progresses.”

Reversing a decline in the prior quarter, sliced deli ham increased 74 cents to $5.43 per pound; sirloin tip roast increased 60 cents to $4.75 per pound; ground chuck increased 36 cents to $3.53 per pound; shredded cheddar increased 33 cents to $4.65 per pound and bacon increased 16 cents to $4.21 per pound.

Other items that increased in price compared to the fourth quarter of last year were bagged salad, up 37 cents to $2.85 per pound; flour, up 27 cents to $2.65 for a 5-pound bag; Russet potatoes, up 26 cents to $3.01 for a 5-pound bag; orange juice, up 19 cents to $3.36 for a half-gallon; apples, up 19 cents to $1.59 per pound; toasted oat cereal, up 6 cents to $3.13 for a 9-ounce box; large eggs, up 5 cents to $1.77 per dozen; and vegetable oil, up 1 cent to $2.97 for a 32-ounce bottle.

Whole milk decreased 23 cents to $3.53 per gallon; white bread decreased 7 cents to $1.85 for a 20-ounce loaf and boneless chicken breasts decreased 5 cents to $3.19 per pound.

Several items showing an increase in retail price from quarter-to-quarter also showed year-to-year increases. Compared to one year ago sirloin tip roast increased 20 percent, ground chuck increased 14 percent and sliced deli ham increased 11 percent.

The year-to-year direction of the Marketbasket Survey tracks with the federal government’s Consumer Price Index (http://www.bls.gov/cpi/) report for food at home. As retail grocery prices have increased gradually over time, the share of the average food dollar that America’s farm and ranch families receive has dropped.

“Through the mid-1970s, farmers received about one-third of consumer retail food expenditures for food eaten at home and away from home, on average. Since then, that figure has decreased steadily and is now about 16 percent, according to the Agriculture Department’s revised Food Dollar Series,” Anderson said. USDA’s new Food Dollar Series may be found online at http://www.ers.usda.gov/Data/FoodDollar/app/.

Using the “food at home and away from home” percentage across-the-board, the farmer’s share of this quarter’s $52.47 marketbasket would be $8.40.

AFBF, the nation’s largest general farm organization, has been conducting the informal quarterly Marketbasket Survey of retail food price trends since 1989. The mix of foods in the marketbasket was updated during the first quarter of 2008.

According to USDA, Americans spend just under 10 percent of their disposable annual income on food, the lowest average of any country in the world. A total of 64 shoppers in 24 states participated in the latest survey, conducted in March.

Tracking Milk and Egg Trends
For the first quarter of 2012, shoppers reported the average price for a half-gallon of regular whole milk was $2.46, up 9 cents from the prior quarter. The average price for one gallon of regular whole milk was $3.53, down 23 cents. Comparing per-quart prices, the retail price for whole milk sold in gallon containers was about 25 percent lower compared to half-gallon containers, a typical volume discount long employed by retailers.

The average price for a half-gallon of rBST-free milk was $3.42, up 8 cents from the last quarter, about 40 percent higher than the reported retail price for a half-gallon of regular milk ($2.46).

The average price for a half-gallon of organic milk was $4.19, up 28 cents compared to the prior quarter, about 70 percent higher than the reported retail price for a half-gallon of regular milk ($2.46).

Compared to a year ago (first quarter of 2011), the retail price for regular milk in gallon containers was up about 2 percent, while regular milk in half-gallon containers rose 9 percent. The average retail price for rBST-free milk increased 6 percent compared to the prior year, while organic milk was up 13 percent.

For the first quarter of 2012, the average price for one dozen regular eggs was $1.77, up 5 cents compared to the prior quarter. The average price for a dozen “cage-free” eggs was $3.39, up 42 cents compared to the prior quarter but nearly double (90 percent higher) the price of regular eggs. Compared to a year ago (first quarter of 2011), regular eggs increased 8 percent while “cage-free” eggs increased 6 percent.



Update on FTA Implementation – Colombia, Panama and South Korea Free Trade Agreements
Floyd Gaibler, USGC Director of Trade Policy

U.S.-South Korea FTA:Implementation of the free trade agreements (FTAs) continues to make progress. The U.S.-South Korea FTA entered into force on March 15. Timing was important as opposition parties continue to raise threats to oppose the agreement and achieve a majority within their parliament when elections are held in April. Timely action has averted this threat. On a related matter, the United States plans to request a renewal of discussions on the U.S. beef trade, which had been tabled by mutual agreement until the FTA went into effect.

U.S.-Colombia FTA: Progress continues in talks between the United States and Colombia on various implementation issues. The Colombian government sent to its congress a bill that would implement several obligations in the FTA, particularly related to copyrights, cross-border trade in services and intellectual property rights. After the bill is approved, it has to go to Colombia's constitutional court for a ruling on its constitutionality. Colombia must complete the bilateral labor action plan as well. Timing for implementation remains uncertain, but it is the belief that an implementation date may be announced during the Summit of the Americas conference in Colombia on April 14-15. The most aggressive timeline would be June with the expectation that it would enter into force by mid-summer.

U.S.-Panama FTA: The U.S. Trade Representative recently announced that the United States and Panama have tentatively set Oct. 1 as the implementation date for that FTA. The Panama National Assembly gave its approval of the FTA last year, but Panama still has legislation that must be approved before the FTA can take effect.

In the case of Colombia and Panama, several trade capacity-building initiatives are needed in various areas, such as administration of tariff rate quotas (TRQs). The Council has offered assistance in particular on both the corn and sorghum TRQs. In addition, we will be holding meetings in late April with Colombian government officials, feed millers and livestock and poultry producers to work with them to encourage the government to provide for an emergency or special duty exemption to allow additional quantities of corn and sorghum over and above the TRQ level.



S.D., Iowa Help Lead 31% Jump in U.S. Wind Energy Capacity in 2011

South Dakota and Iowa lead a record five states that received more than 10 percent of their electricity from wind in 2011, says the American Wind Energy Association in its 2011 annual market report.  The report shows the U.S. wind industry installed 6,816 megawatts (MW) in 2011, 31 percent higher than 2010, for a total of 46,916 MW installed in the U.S. to date. And there are more than 8,300 MW under construction, setting the stage for a strong 2012, AWEA officials say.

Seven states have at least 4,000 wind jobs apiece, and the report shows the industry’s geographic reach, stretching from Iowa to Texas to Illinois, Ohio, Colorado, California and Michigan. Meanwhile, Kansas’ position at the top of the list for under-construction wind projects is setting the stage for a very strong 2012, AWEA said.

"American wind energy is creating American jobs and affordable electricity all across the country," said AWEA CEO Denise Bode. We are powering one of the country’s biggest sources of Made-in-the-USA manufacturing jobs and a vital source of economic development despite the down economy."

Bode says that with bipartisan policy stability, American wind power has brought in as much as $20 billion annually in private investment to the United States; created one of the largest providers of new American electric generation with 35% of all new power capacity, right behind natural gas; driven technology advances that have made wind more affordable than ever; created nearly 500 new American manufacturing facilities and employed 75,000 overall, including 30,000 in the manufacturing sector, from coast to coast.

"This shows what wind power is capable of: building new projects, powering local economies and creating jobs,” said Bode. "Traditional tax incentives are working. This tremendous activity is being driven by the federal Production Tax Credit (PTC) – which leverages as much as $20 billion a year in private investment and supports tens of thousands of manufacturing jobs.”



House Ag Committee Field Hearings Continue in Kansas

The House Agriculture Committee will continue its series of farm bill field hearings next week in Dodge City, Kan. The Committee’s most recent hearing was March 30 in Arkansas, where farmers from six states testified on the importance of direct payments to themselves and the economy. After the hearing, Rep. Rick Crawford (R-Ark.) voiced his opinion that he “would not say the direct payment is dead, per se, but it’s certainly going to be challenging to keep it in place.” More information and testimony from the field hearings can be found at http://agriculture.house.gov/singlepages.aspx?NewsID=1227&LSBID=1271.



Soy Crush Could Rise to 141.5M Bu

Soybean crush rates for March in the National Oilseed Processors Association's monthly soybean crush report are expected to rise to about 141.5 million bushels on seasonal processing trends, according to a survey of industry analysts.  The month-over-month increase in the crush reflects a seasonal upturn in processing, attributed to more days for crushing in March than in February.

The crush was measured at 136.4 million bushels in February. Last year, the soy crush for March measured 134.4 million bushels.

NOPA's report on the March soybean crush is scheduled to be released Monday at 7:30am CDT. The NOPA report has added significance after U.S. Census Bureau discontinued its reporting of soybean crushings in July.

Meanwhile, the average estimate from analysts surveyed by Dow Jones Newswires is that the NOPA report will show soyoil stocks building from the prior month. The average of analysts' estimates was 2.360 billion pounds, compared to February soyoil stocks of 2.242 billion. Estimates ranged from 2.318 billion pounds to 2.417 billion pounds.



Brazil's Mato Grosso To Plant Another 5% Of Soy In '12-13

Farmers in Brazil's Mato Grosso plan to convert another 845,000 acres of land to the oilseed next season.  The Mato Grosso Agricultural Economy Institute reports area in the No. 1 soybean state will expand 4.8% to reach 18.3 million acres in 2012-13 with growth concentrated in the north and east.

International prices favor an expansion in area, but it's not just about prices. The prospect of improved logistics is also a stimulant.  Slow but steady progress has been made on surfacing key roads that link remote parts of Mato Grosso to northern ports, opening the possibility that these new corridors may finally be operational in 2013.   These routes will make it substantially easier to send produce to market from the north and east of the state and, to some extent, reduce transport costs.

It is not all good news, however. Costs of production are also expected to rise next year. The all-in average cost of planting a hectare in the state will rise 4.2%, according to IMEA.  The principle culprit is the rising price of fertilizer, which accounts for 27% of total costs.



Our View: Farm Bill Now
Garry Niemeyer, President, National Corn Growers Association

I have spent much of my time over the past month inWashingtonvisiting with members of Congress and other policy makers about the importance of the 2012 farm bill.  Each meeting seems to end in the same fashion as the others: Democrats blame Republicans and Republicans blame Democrats.  If I ask someone from the House, I hear that it is the fault of the Senate; and when I ask someone from the Senate, I hear it is the fault of the House. 

Agriculture policy historically has not just been bipartisan, it's been non-partisan.

Farmers recognize the seriousness of the federal government's financial situation and that any new legislation needs to be responsive to taxpayers. Our organization understands that programs important to agriculture will be cut. We are willing to do our part to significantly reduce government spending and move towards market-based programs that meet today's risks.  We are, to our knowledge, the only constituency to do so.

Why is this important? Agriculture is one of the few bright spots in the American economy.  Our farmers continue to be more productive and innovative.  To continue that trend, we need to have some certainty about how we plan our business.  The current farm bill expires at the end of the year.   I am glad we have moved away from the days when farmers "farmed the program" rather than for the market, but we need to know what the program is going to be for next year's crop.   We can't do that if the Congress fails to pass a farm bill.

I've heard enough "We can't get a farm bill done this year" from folks inWashington- and even from some in agriculture.  It's only the beginning of April.  We have eight months left in the year and seven until the election so that excuse won't work for us.  We need to get a bill done this year - and it can be done.

I have been wearing a button on my lapel for the past few weeks that says, "Farm Bill Now."  I will send one to any farmer in America and any member of Congress if they write me and say that they are committed getting the job done.  Let's pass a farm bill now - I have plenty of buttons!