Monday April 23 Ag News

Storing Hay Outside Takes Extra Management
Steve Tonn, UNL Extension Educator, Washington County

This year the hay baling season is starting early.  It is shaping up to be a year that producers will want to pay extra attention to how they store their hay bales. The value of hay and the additional month of exposure to the elements will add to the challenge of storing hay outstide. 

Over one-fourth of the nutrients in a bale of hay can be lost due to weathering between now and feeding next winter. To minimize these losses, making dense, evenly formed bales and stacks is important. They will shed water better and sag less than a soft core or less dense package. Use net wrap or plastic twine spaced no more than four inches apart on round bales to maintain bale shape and provide a smooth surface that encourages water runoff.  University of Wisconsin research has shown that net wrapped alfalfa bales shed rainfall a little better than the string wrapped bales.  Grass hays seemed to form a
better thatch and have even less loss.  

Store hay on an elevated, well-drained site so it won’t soak up moisture from wet soils or standing water.  Especially avoid terrace valleys, fences and tree lines that cause rain or snow to accumulate and prevent wind and sunshine from drying off wet bales. Storing bales on crushed rock, pallets or tires will allow rainwater to runoff and keep the bottoms of the bales from wicking up moisture from the soil.

Do not stack bales so that water runs off of one bale end and soaks into the adjacent bale.  Never stack round bales during the rainy season unless they are covered or unless they are fed soon.  Also avoid placing bales in a row with the twine ends touching one another. Instead, it is best to place round bales or stacks so there is about one foot of air space on all sides for good ventilation.  Round bales also store well when flat ends are butted end to end in a cigar-like shape.  Place these rows north and south so prevailing winds will not cause snow drifts and so both sides of the row can receive sunlight for drying.

The outer 4 inches of a 6 –foot – diameter round bale is 21% of that bale.  The outer 12 inches is more than half the bale.  The wetter the weather, the more the loss.    This makes hay storage even more important.

Follow these guidelines and you will lower your storage losses, increase feed quality and improve animal performance.



AGP’s Grays Harbor Storage & Receiving Facility Dedicated

Ag Processing Inc (AGP), the largest cooperative soybean processing company in the world, last week held dedication ceremonies to showcase its new storage silos and receiving building at its Port of Grays Harbor (PGH) Terminal 2 near Aberdeen, Wash. More than 100 people participated in the ceremony, including AGP Board members and staff, representatives from AGP Cooperatives, Port of Grays Harbor Commissioners and staff, representatives and members of the International Longshore and Warehouse Union (ILWU), city and state officials, and representatives from the BNSF® Railway and RailAmerica's Puget Sound and Pacific short line railroad.

PGH Executive Director Gary Nelson welcomed guests and introduced speakers including PGH Commission President Chuck Caldwell, ILWU Local 24 President Mike Brown, AGP Chairman Brad Davis and AGP CEO Marty Reagan. "[It was] nearly a decade ago when the strong bonds between the farmers of the Midwest and the partners here in the Pacific Northwest joined," Davis told the audience. "Today is a new chapter in this ongoing success story."

AGP now has the ability to load a ship while at the same time unloading grain to the storage silos to effectively manage rail cars. The facility has a combined handling capacity of up to 1,500 metric tons (60,000 bushels) per hour. The storage silos can accommodate several ag products including soybean meal, corn, soybeans and DDGS, and gives AGP the flexibility to load multiple products to a single customer.

ASA Project Development Director Bob Callanan was invited to participate to record video of the event and the new facilities for an AGP-sponsored presentation that will be distributed later this year to customers in Asia to promote U.S. agricultural exports from Grays Harbor. Kansas Soybean Commission Director of Field Services Dennis Hupe and North Dakota Soybean Growers Association Vice President Brent Kohls also participated.



Alfalfa: Early Spring, Early Cutting?
Bruce Anderson, UNL Extension Forage Specialist

With early spring temperatures alfalfa is already to the point when you would take the first cutting.   The first alfalfa cutting often is the most important one of the year. It usually produces the most yield and its forage quality changes fastest from day to day. Alfalfa started growing like gangbusters this spring, is knee high in many places, and looks like it could be ready to cut right now.  But should you?

The first thing you should consider is health of your alfalfa. If it is healthy and developing normally although early, and you can use extra high quality forage, there should be no harm in cutting at this early calendar date. However, if you don’t need that extra high quality, wait a little longer. Tonnage can increase substantially between first bloom and full bloom. You still might end up cutting a couple weeks earlier than usual while starting the harvest year off with a boost in yield. Protein concentration and other quality factors will be a little lower but I don’t think they'll be too bad.

The alfalfa I have seen this spring looks like it has finer stems than usual for first cutting, which might keep quality higher for any comparable stage of maturity.

There are some risks, though, in waiting. Will you have good haying weather when you decide to cut? Will insects or diseases attack plants and lower yield or quality?

Selecting the right time to cut hay always is a challenge. This year it may be particularly hard to decide. Other field work is competing and we have no experience with this early season.

Still, I think it’s a nice problem to have.



Winter Wheat Developing Early, Vulnerable to Late Freeze
Drew Lyon, UNL Extension Cropping Systems Specialist

Winter wheat in most of Nebraska is about two weeks ahead of normal development. This increases the risk from freeze injury. If the crop is not damaged by a freeze, it probably will be filling under lower temperatures, which lengthens the filling period. Temperatures above 85°F during the filling period shorten the filling period and reduce yields, even if sufficient water and nutrients are available.

Major freeze injury was seen in western Nebraska on May 9 and 10, 1981, when freezing temperatures occurred near McCook. Winter wheat, which was at a normal development stage at that time, had just headed and growers experienced major losses. Decatur County, Kansas, which adjoins Red Willow County (McCook), also had major losses to its winter wheat crop in 1981. Those counties each had the highest winter wheat losses from the freeze for each of their states. Major injury to winter wheat and other crops occurred in Nebraska by the freezes that occurred in late May 1992.

On the positive side, earlier development decreases the time for disease and insects to build to economically damaging levels. Producers and crop consultants need to scout fields regularly and treat where economical.



Timing Critical to Treating Stripe Rust in Wheat
Randy Pryor, UNL Extension Educator, Saline County

The spray window for producers to decide if they are going to use a fungicide to prevent disease development on wheat flag leaves is occurring right now instead of in May, when it more typically occurs. This week Extension Plant Pathologist Stephen Wegulo and I surveyed quite a few wheat fields in Saline County and found stripe rust widespread.

Stripe rust, caused by P. striiformis, normally occurs in Nebraska during cool periods in early June. It’s unusual and unfortunate to see it this early. Stripe rust develops at slightly cooler temperatures (55-75°F) than does leaf or stem rust. Once temperatures exceed 75°F, stripe rust develops slowly. Cool temperatures and moisture during the last one two weeks have been conducive to stripe rust development.

The decision to apply a fungicide should be based on the amount of disease in the field, the yield potential, and the susceptibility of the variety planted. Fungicides are most effective if applied when disease levels are still low and flag leaves are out and still clean. One of the fields we surveyed near Tobias had high yield potential but was a susceptible hybrid with early onset of disease at high levels in the lower canopy. While the decision to spray seems appropriate, we can’t say with certainty that it will pay to spray. That assessment will come at harvest.

With stripe rust already present in many fields, it is important to note that you need a fungicide with both preventive and curative activity. Most of the grain fill period will occur in May this year instead of in June. High wheat yields are possible if adequate moisture and mild weather occurs during grain fill, the same weather that favors stripe rust. If adequate moisture occurs, double cropping opportunities will exist with an expanded growing season window that we normally don’t see.



Nebraska Family Honored by the Beef Improvement Federation

The Beef Improvement Federation (BIF) announced the BIF Commercial Producer of the Year for 2012 on Thursday, April 19, 2012. The Maddux Cattle Company from Wauneta, Nebraska was selected for their outstanding management practices and leadership within the beef industry.

“The Maddux Ranch is an effective user of commercially proven technology,” said Dr. Jim Gosey, University of Nebraska Professor Emeritus, Animal Science Department. “Maddux Ranch is deserving of the BIF Commercial Breeder Award because of their consistent business driven approach to building a better beef production system.”

Maddux Cattle Company is a cow/calf, yearling cattle operation located in southwest Nebraska. Taylor and Clara Maddux homesteaded the ranch in 1886. Jack and John Maddux, the third and fourth generation owner/operators of the ranch, manage the ranch. Jack, John and their ranch manager were at the BIF Convention on April 19th to accept the award.

Both Jack and John have served in many roles statewide and nationally providing leadership and in advisory capacities.  Nebraska Cattlemen is proud of the Maddux family and nominated them for this award.



Total Red Meat Production Slightly Higher in 2011

Total red meat production for the United States totaled 49.4 billion pounds in 2011, slightly higher than the previous year. Red meat includes beef, veal, pork, and lamb and mutton. Red meat production in commercial plants totaled 49.2 billion pounds. On-farm slaughter totaled 127 million pounds.

Beef production totaled 26.3 billion pounds, down slightly from the previous year. Veal production totaled 138 million pounds, down 4 percent from last year. Pork production, at 22.8 billion pounds, was 1 percent above the previous year. Lamb and mutton production totaled 153 million pounds, down 9 percent from 2010.

Commercial cattle slaughter during 2011 totaled 34.1 million head, down slightly from 2010, with federal inspection comprising 98.4 percent of the total. The average live weight was 1,277 pounds, down 2 pounds from a year ago. Steers comprised 49.3 percent of the total federally inspected cattle slaughter, heifers 29.0 percent, dairy cows 8.7 percent, other cows 11.3 percent, and bulls 1.7 percent.

Commercial calf slaughter totaled 852,500 head, 3 percent lower than a year ago with 98.4 percent under federal inspection. The average live weight was 263 pounds, up 1 pound from a year earlier.

Commercial hog slaughter totaled 110.9 million head, 1 percent higher than 2010 with 99.2 percent of the hogs slaughtered under federal inspection. The average live weight was up 3 pounds from last year at 275 pounds. Barrows and gilts comprised 96.9 percent of the total federally inspected hog slaughter.

Commercial sheep and lamb slaughter, at 2.16 million head, was down 12 percent from the previous year with 92.4 percent by federal inspection. The average live weight was up 4 pounds from 2010 at 138 pounds. Lambs and yearlings comprised 93.0 percent of the total federally inspected sheep slaughter.

There were 867 plants slaughtering under federal inspection on January 1, 2012 compared with 841 last year. Of these, 633 plants slaughtered at least one head of cattle during 2011 with the 14 largest plants slaughtering 55 percent of the total cattle killed. Hogs were slaughtered at 604 plants, with the 12 largest plants accounting for 58 percent of the total. Likewise, 5 of the 253 plants that slaughtered calves accounted for 54 percent of the total and 3 of the 507 plants that slaughtered sheep or lambs in 2011 comprised 60 percent of the total head.   

Nebraska, Iowa, Kansas, and Texas accounted for 49 percent of the United States commercial red meat production in 2011, down 1 percentage point from 2010.
(state, 2011 prod in million pounds, 2010 prod in million pounds)
Nebraska .....:  7,163.9   -   7,135.7
Iowa .............:  6,591.8   -  6,570.2
Kansas ........:  5,341.1   -   5,380.0
Texas ..........:  5,143.2   -   5,060.1



ICA Members Work on Two Capitol Hills

It's been a busy two weeks for leaders of the Iowa Cattlemen's Association. They have been to both the nation's Capital and the Iowa Capitol to discuss legislative issues.

Five Iowans made the trip to Washington, D.C., last week to join about 300 cattle producers from around the country who attended NCBA's Legislative Conference. ICA President Ross Havens said Iowa's elected representatives heard them, understanding that they represented the thoughts and ideas of 9,500 ICA members. "They understand that the strength of Iowa's economy is in agriculture, so they listened to the concerns we brought to them," Havens said.

"While we'd like to see the 'death tax' go away, everyone's on board with holding it at its current level," Havens said. Under current rules, the estate tax is 35% for the part of the estate that exceeds $5 million. Congress needs to act this year to keep it there; otherwise it reverts to pre-2001 levels of 55% on estates over $1 million.

Havens said Iowa's U.S. Senators and Representatives also are on the same page regarding recent court rulings regarding antibiotics. On Apr. 13 of this year, a federal court decision would require FDA to prove the safety of penicillin and tetracyclines for use in livestock feed. ICA, NCBA and Iowa's congressional delegation all agree that the court should not be involved in such decisions. Cattle producers work with veterinarians to implement herd health practices and the judicious use of antibiotics every day, and that relationship should continue without court interference.

Earlier this month, about 30 members of the ICA board provided both food for thought and ribeye steak sandwiches at the Iowa State Capitol in Des Moines. The ICA board of directors met at the Capitol for their April meeting, and took the opportunity to make one-on-one contacts with their House and Senate district representatives.

ICA also served more than 650 steak sandwiches to legislators, their staffs, and other state employees, including Governor Terry Branstad, Lt. Gov. Kim Reynolds, and Bill Ehm, the administrator for Environmental Protection Division of the Iowa Department of Natural Resources.

To end the day's meeting, most of the ICA board members traveled to Iowa State University in Ames where they participated in an educational event about lean, finely textured beef. The event was organized by the Block and Bridle Club, and included speakers from the meat science department, American Meat Institute, and Iowa Beef Industry Council.



Corn Growers Appreciate Senate Ag Committee Farm Bill

National Corn Growers Association President Garry Niemeyer released the following statement in response to Senate Agriculture Committee’s proposed 2012 farm bill legislation:
“We greatly appreciate the work by Senate Agriculture Committee Chairwoman Debbie Stabenow and Ranking Member Pat Roberts to put forth a well-crafted 2012 farm bill.  The National Corn Growers Association is pleased to see the Committee listened to the concerns of our nation’s corn growers and have done a great job keeping our priorities under consideration while drafting the legislation. NCGA believes the Committee print is consistent with what our members have been advocating.  While we understand this is the first step in a very long process, we applaud the Senate Ag Committee for holding a markup and hope the House Agriculture Committee will swiftly follow suit.  We look forward to our continued work with members and staff on this important piece of legislation and urge Congress to pass a farm bill this year.”



E15 clears final federal hurdle with fuel survey initiation

After three years, the American ethanol industry has finally satisfied all federal requirements for E15 commercial sales as set by the partial E15 waiver granted by the U.S. Environmental Protection Agency (EPA).  Starting today, 99 ethanol producers have funded a nationwide fuel survey as required by the partial waiver that represents the final federal hurdle to E15 availability.

Announcing the news, the Renewable Fuels Association, Growth Energy, and the American Coalition for Ethanol praised the industry for stepping up to the plate to help bring E15 to the market.  Despite owning just a handful of the nation’s 160,000 gas stations that will be the actual participants in the survey, ethanol producers are providing the lion’s share of funding for this survey in order to bring a higher performing, lower cost fuel to the market in E15.

“Americans remain under siege by high gas prices.  While rhetorical battles in Washington are waged to find a solution to lowering prices, America’s ethanol producers are stepping up to bring a cleaner, cheaper, and more American-made fuel to the market.  With this survey in place, E15 is now ready in the eyes of EPA for commercial sale,” the groups stated.

Efforts to bring E15 to pumps across the nation will now focus on states where regulatory issues must be addressed.  Some states, like Iowa, Illinois, and Kansas are prepared for E15 and sales of E15 could commence as soon as all parties are registered with EPA and are implementing the Misfueling Mitigation Plan approved by EPA.

Additional challenges, including pending litigation and anti-ethanol posturing by some in Congress, make predicting the exact timeframe for the growth of E15 sales volumes unwise.

“America’s ethanol industry is committed to giving consumers greater choice at the pump by making E15 a commercial reality,” said RFA, Growth Energy, and ACE.  “We will work diligently with the petroleum industry, gas retailers, automakers, and consumers to ensure E15 is used properly.  But we will not stand idly by and allow some of these interests to make wild and unsubstantiated claims about ethanol and E15 in order to malign ethanol and scare consumers.  The fact remains that E15 is the most tested fuel ever approved by EPA and is perfectly safe and effective for those engines approved in the waiver.”

The fuel survey is required annually and will be conducted by RFGSA.  The survey will be collecting more than 7500 samples each year of all gasolines available nationwide and will begin on May 1, 2012.



World Pork Production is Expanding

USDA's Foreign Agriculture Service is predicting that this year's world pork production will be up 2.7% from 2011. Several of our key foreign markets are showing growth in their hog numbers. China, the third largest buyer of U.S. pork last year, is expected to increase its pork production by 4.0% this year. Pork production in South Korea, last year's number five foreign customer, is expected to be up 17%. Increased foreign production could hurt U.S. pork exports. Last year we exported a record 22.8% of our pork production. Given the weak U.S. economy, strong exports are crucial to hog prices.

Calculated domestic pork demand during February was up 0.6% compared to a year earlier. Export demand for U.S. pork was up 1.6% in February. Packer demand for hogs was 1.6% higher this February than last.

Retail pork prices in March averaged $3.49 per pound, down half of a penny from February, but up 13.3 cents from March 2011.

The average live price for 51-52% lean hogs in March was $61.86/cwt, down $2.08 from February and 77 cents lower than in March 2011.

Hog slaughter totaled 2.084 million head last week, up 2.0% from the week before and up 1.2% compared to the same week last year. Barrow and gilt carcass weights for the week ending April 7 averaged 206 pounds, unchanged from the week before and up one pound from a year ago. The average barrow and gilt live weight in Iowa-Minnesota last week was 276.4 pounds, up 0.3 pounds from a week earlier, up 4.2 pounds from a year ago, and above a year earlier for the 21st consecutive week



CWT Assists with 3.4 Million Pounds of Cheese and Butter Export Sales, Adds AMF to Product List

Cooperatives Working Together (CWT) has accepted 11 requests for export assistance from Dairy Farmers of America, Darigold, Foremost Farms, and Maryland & Virginia Milk Producers Cooperative to sell a total of 1,186 metric tons (2.615 million pounds) of Cheddar and Monterey Jack cheese and 341 metric tons (0.752 million pounds) of butter to customers in Africa, Asia, the Middle East and South America. The product will be delivered May through July 2012.

CWT also announced today that, beginning the week of May 7th, it will begin accepting requests for export assistance for Anhydrous Milk Fat (AMF). This decision was the result of a thorough economic review of world market fundamentals and the potential return on investment for dairy producers.

In 2012, CWT has assisted member cooperatives in making export sales of Cheddar, Monterey Jack and Gouda cheese totaling 46.0 million pounds, and butter totaling 39.2 million pounds, to 26 countries on four continents. On a butterfat basis, the milk equivalent of these exports is 1.280 billion pounds, or the same as the annual milk production of 60,900 cows.

Assisting CWT members through the Export Assistance program positively impacts producer milk prices in the short-term by reducing inventories that overhang the market and depress cheese and butter prices. In the long-term, CWT’s Export Assistance program helps member cooperatives gain and maintain market share, thus expanding the demand for U.S. dairy products and the farm milk that produces them.

CWT will pay export bonuses to the bidders only when delivery of the product is verified by the submission of the required documentation.



Korean Consumers, Bloggers Visit with U.S. Industry Leaders

A group of 22 South Korean consumers, including 11 food-oriented bloggers, got a unique opportunity to enjoy a U.S. beef and pork cooking demonstration while hearing personal insights from American industry leaders in Seoul earlier this week.

Korean consumers are very interested in understanding the sources of their food, so a presentation by Leann Saunders, a Colorado wife and mother who also happens to be a rancher, businesswoman and secretary/treasurer of the U.S. Meat Export Federation’s executive committee, was very timely.

Saunders explained for the consumer group that she grew up on a ranch where her father and grandfather still work. She spoke on behalf of the U.S. beef industry, and discussed the commitment her family shares with other ranchers to do their best to protect natural resources and produce high quality, safe beef.

"It was fascinating meeting with Korean consumers and these trusted bloggers,” said Saunders. “It is very obvious that while we speak different languages and come from different cultures, we all want the same thing when it comes to our food choices and feeding our families. We all want safe, healthy, cost-effective alternatives. Consumers worldwide want transparency, authenticity and more information about the families behind their food."

The U.S. pork industry was represented by Becca Hendricks, National Pork Board assistant vice president of international marketing, who explained the industry’s “We Care” program which demonstrates producers’ commitment to raise pork responsibly. She also reviewed innovations the industry has introduced over the past 50 years to produce safe, affordable, versatile, nutritious and tasty pork.

“Events like this help garner consumer interest and respect for U.S. pork,” said Hendricks. “In South Korea, consumers tend to trust their peers on issues of health and nutrition, so our presentations and the chef demonstrations were well-received. The U.S. pork industry’s efforts are moving more towards influencing consumers directly. It helps gain trust in our product as well as allowing consumers to taste a great recipe.”

USMEF President and CEO Philip Seng introduced the program, which included two celebrity chefs, Chef Lee Sang-hak and Chef Shin Hyo-seob, who are very popular with Korean consumers. Their cooking demonstration gave the participants a sampling of U.S. beef chuck eye roll skewers with black olive Chimichurri sauce and U.S. pulled pork sandwich.

Representing the luxurious Westin Chosun hotel in Seoul, Chef Lee praised the quality of U.S. beef while Chef Shin, who is part of a U.S. pork radio advertising campaign, stressed the good taste and quality of American pork. “It is more credible to hear from the people from the U.S. how cattle and hogs are raised and beef and pork are produced,” said one consumer.

“The U.S. meat stories from the homemakers from the U.S. have touched my heart,” said one blogger. “It was a great time. I always have a good time when I participate in USMEF’s activities because you can get valuable information as well as you can taste delicious meat.”

Funding for the seminar was provided through the USDA Market Access Program (MAP) as well as the Beef Checkoff and Pork Checkoff programs.

In 2011, South Korea was a leading market for both U.S. beef and pork exports, buying 154,019 metric tons (339.6 million pounds) of beef valued at $686 million, and 188,307 metric tons (415.1 million pounds) of pork valued at $497.1 million. The recent implementation of the Korea-U.S. Free Trade Agreement is expected to enhance export opportunities for both in the coming years.



Valmont Announces First Quarter Results

Valmont Industries, Inc., Omaha, a leading global manufacturer of engineered products for infrastructure, mechanized irrigation equipment for agriculture, and a provider of coating services, reported sales for the first quarter of $717.4 million compared with $567.9 million for the same period of 2011. First quarter 2012 operating income was $82.8 million versus $45.3 million in 2011. First quarter 2012 net earnings were $52.3 million, or $1.96 per diluted share, versus first quarter 2011 net earnings of $25.6 million, or $0.97 per diluted share.

"Record first quarter sales of both irrigation equipment and utility structures were the primary drivers of first quarter results," said Bay. "This, combined with favorable weather conditions, stable input costs and double-digit sales growth in all of our segments resulted in a record first quarter performance.

"Profitability in the Irrigation Segment benefited from volume leverage and improved manufacturing productivity. While volumes and profitability in the Utility Support Structures Segment rose significantly, margins continue to reflect competitive pricing on large project shipments. The operating performance of the Engineered Infrastructure Products Segment improved as a result of better performance in the North American and Asia-Pacific regions. However, in general, the demand for lighting and traffic products still suffers from the lack of a long-term U.S. highway bill and the restraint in government spending in many parts of the world. In the Coatings Segment, the quality of operating results improved due to volume leverage and increased productivity. Financial results in the businesses classified in "Other" improved as well.

"The positive impact of volume leverage on our businesses resulted in a substantial improvement in operating income as a percent of sales."

First Quarter Segment Review:
-- Utility Support Structures Segment (26% of 1st Quarter Sales) -- Steel and concrete structures for the global electric utility industry. Sales of $191.2 million were 52% higher than 2011. The sales increase reflects large project demand to upgrade the North American transmission grid. In addition, unseasonably mild weather in North America contributed to a favorable environment for production and shipping during the quarter. The need to add capacity and improve the reliability of the North American electrical transmission grid continues to drive demand for utility transmission structures. A period of underinvestment in transmission capacity in North America followed by a period of rapid economic growth in the 1990s resulted in the need for transmission infrastructure improvements to better support increased electricity demand. In addition, occasional outages within the grid highlighted vulnerabilities to its reliability. Provisions of the 2005 Energy bill were designed to address these shortcomings, which have led to utilities increasing their investment in transmission infrastructure. We believe the current demand for large project orders is part of a longer cycle of investment that will lead to thousands of new miles being added to the transmission grid over the next 10 years. This trend supports a positive long-term outlook for our utility business. Sales in international utility markets were lower, as increased sales in the Asia-Pacific region were more than offset by lower project sales to emerging markets. Operating income increased 86% to $25.1 million and was 13.1% of sales. The increase in operating income was due to the positive impact of volumes and the associated operating leverage.

-- Irrigation Segment (27% of 1st Quarter Sales) -- Center pivot and linear move mechanized irrigation equipment and parts for agriculture in global markets. Sales rose 30% to $196.3 million, reflecting favorable drivers in the agricultural economy: The outlook for farm income continues to be strong. Crop commodity prices remained at high levels during the first quarter. Dry weather in the Midwest agricultural regions of North America heightened concerns about soil moisture levels for the upcoming planting season. This, along with the drivers of improved productivity and water conservation, led to increased purchases of irrigation equipment. International markets experienced modest growth in sales with most regions showing increases. Operating income grew 61% to $38.4 million and was 19.6% of segment sales. The improvement in operating income was the result of lower input costs, increased productivity and volume leverage.

-- Engineered Infrastructure Products Segment (26% of 1st Quarter Sales) -- Lighting, traffic and highway safety products, wireless communication structures and components, and industrial gratings and access systems worldwide. First quarter sales were $197.9 million, a 17% increase over 2011. In North America, commercial lighting product sales rose. Transportation lighting and traffic product sales were higher, in part reflecting the positive impact of mild winter weather conditions. Sales of wireless communication structures and components also rose. In international markets, European lighting and traffic structures market conditions remained challenging. In the Asia-Pacific region, sales of Webforge branded industrial gratings and access systems rose, supported by continued investment in the mining and industrial economies in the region. Highway safety product sales were higher in Australia. Sales of wireless communication and lighting products were flat in China. Operating income increased more than threefold to $8.0 million, or 4.1% of segment sales. Increased sales and the associated operating leverage led to the improvement in profitability.

-- Coatings Segment (11% of 1st Quarter Sales) -- Hot-dip galvanizing, and other coatings to protect against corrosion of steel and aluminum in global markets. Sales of $82.8 million were 13% greater than last year. The increase in demand was broad-based and evident in both North American and Australian markets. The effects of a modest economic recovery in North American markets, with an accompanying increase in industrial production, were favorable drivers for galvanizing demand. Industrial activity in the Asia-Pacific region was higher than last year, when severe weather conditions disrupted demand in Australia.

Operating income increased 60% to $16.5 million or 19.9% of segment sales as a result of higher volumes, improved productivity and somewhat lower input costs.



AGCO Opens Newly Expanded Parts Facility Near Kansas City

AGCO announced the expansion of its Missouri parts facility to a full-service parts distribution center.  The facility, located in Independence, Mo., covers 900,000 square feet and now includes $100 million of parts inventory, an increase of nearly 40 percent.

The effort by AGCO to expand this center and increase its inventory is expected to improve order responsiveness by 66 percent and lower parts delivery times by two to three days, compared to previous efforts.  Changes implemented will result in next-day delivery of in-stock parts and earlier delivery of emergency and priority shipments for nearly 90 percent of the dealers served by the Kansas City PDC.

This is the third AGCO Parts facility to be upgraded to a full-service PDC in the last two years. Collectively, the upgrades offer significant benefits for customers to reduce shipping times, since now one-half (four of eight) of AGCO Parts' North American PDC locations are full-stocking.



Mild Winter: Pests and Diseases Likely on the Rise

Mild temperatures have kick-started an early planting season this year, as well as the potential for increased pests and disease pressures for growers.

In fact, entomologists already are seeing significant captures of black cutworm and true armyworm in Iowa, Missouri, Indiana and Illinois.

Scouting the fields may be one of the best ways to successfully manage damage to young plants, say experts from Pioneer Hi-Bred, a DuPont business.

"Below freezing temperatures normally kill most pests and diseases or sets them back a bit," says Paula Davis, Pioneer senior manager for insect and disease traits. "Given this year's mild winter conditions, however, we might see insect and disease activity earlier and more of it."

Because seed treatments vary in the degree of control against different pests and diseases, Davis says farmers should keep a close eye on their crops as the growing season progresses.

Potential Pests to Watch For
Several insects should be carefully monitored during the planting season:
-  Black cutworm - Black cutworms are most commonly drawn to weedy fields with high plant residue and weedy field boundaries. Clear, tilled fields generally see lower levels of infestations. Although fields that use no-till or conservation tillage and use a burndown herbicide to control weeds are still at risk. A timely application of a burndown herbicide in spring can kill potential host plants.  Davis recommends that, if using a burndown herbicide, growers should wait at least a week before planting to reduce the risk of cutworms moving from dying weeds to seedling corn. Another good protection against black cutworms are corn hybrids with Herculex® I technology.
-  True armyworm - True armyworms migrate north in the spring and prefer to lay eggs in grassy areas. Small grains, pastures and corn planted near grassy areas are at greatest risk of damage.
-  Corn flea beetle - Corn flea beetles can cause severe plant damage and reduce yields through the possible transmission of Stewart's bacterial wilt. Although most corn hybrids are resistant to Stewart's bacterial wilt, it is still important to scout for flea beetles. The most effective management tactic is to use an insecticide seed treatment first. Insecticides also may be applied as foliar sprays if insect populations are abundant according to each state's recommended threshold.
-  Bean leaf beetle - Mild winters increase overwintering survival of bean leaf beetles. Adults are strongly attracted to early-planted soybean fields - making the newly emerging plants more at risk for damage. When scouting for bean leaf beetles, look closely in soil cracks or under debris where they typically like to hide.

Potential Diseases to Monitor
-  Pythium and Phytophthora - These water molds are favored by cool, wet conditions that delay emergence. Phytophthora is much more aggressive when soil temperatures are above 55 degrees and soils are saturated for more than 24 hours.
         
"Seedling diseases caused by fungi can be extremely destructive on corn and soybeans," says Scott Heuchelin, Pioneer research scientist, field pathology. "Fungicidal seed treatments are a great way to protect the seedling for the first few weeks until the plant has emerged and is well established," he says. "Suboptimal field conditions, such as prolonged saturated soils, can diminish a fungicidal seed treatment's effectiveness. Saturated soils also stress the germinating seed with low oxygen conditions that make germinating seeds more susceptible to fungi like Pythium and Phytophthora."

Management Suggestions
Compared to other seasons, the importance of scouting the fields for insect pests has never been greater. Fields with previous seedling blight issues and no-till or non-rotated fields are at greater risk of seedling blights. To catch possible problems early on, ideally growers should examine their fields at least once a week and observe emergence. Delayed or uneven emergence may indicate a fungal or insect pest is affecting seedling establishment.

Heuchelin says if there are any indicators of pest or disease pressure, growers can look to their local Pioneer agronomist for guidance.