Monday April 30 Ag News

Planting Soybeans Early Results in Increased Yield
Jim Specht, UNL Professor of Agronomy and Horticulture

Planters are rolling throughout the state and, given the size of today’s equipment, corn planting is rapidly progressing.

Based on UNL research, we would encourage you to consider planting your soybeans as soon as possible—preferably before the end of April for the southern two-thirds of Nebraska and or the first week of May for the northern third of Nebraska. While evening temperatures have been low, consider the percent risk of frost for emerged plants not planted seeds. The above recommendation considers a 10% risk of frost 7-10 days after planting, the time when soybeans would most likely emerge.

Why plant early? Five years of UNL small plot and on-farm research has proven that early planted soybeans yield more than late planted beans—regardless of whether the spring has been cold and wet or warm and dry. Soybeans are a photoperiod-sensitive crop so the goal is to allow the plant to use the sun’s energy to accumulate as many nodes as possible as day length decreases after June 21. Nodes are important because that’s where pods, seeds, and ultimately yield are produced.

Three years of on-farm research have resulted in an average of 3 bu/ac yield increase (with a range of 1-10 bu/ac depending on the year and the planting date range of early versus later planting). With today’s soybean prices, a 3 bu/ac yield increase adds up... a $30/acre advantage at $10 beans, $42/acre with $14 beans or $54/acre if beans were to hit $18/bu.  We do recommend a fungicide/insecticide seed treatment to reduce the risk of damping off diseases and bean leaf beetles which tend to feed on early-planted soybeans.



Scout Early Emerging Soybeans for Bean Leaf Beetles
Tom Hunt, UNL Extension Entomologist, Northeast REC, Haskell Ag Lab
Keith Jarvi, UNL Extension Educator, Dakota, Dixon, and Thurston counties

Accurately predicting spring bean leaf beetle infestations in Nebraska is difficult. You would think that the uncommonly warm winter we had would favor bean leaf beetle survival; however, persistent snow cover and moderate winter temperatures are most favorable for beetle survival.

Extremely warm, open winters can cause beetles to become active prematurely, resulting in increased metabolism and reduction of fat reserves, starvation, desiccation, or simply exposure to inclement weather. The best thing to do when we have very warm winters is to be vigilant and expect the unexpected.

Bean Leaf Beetle Biology
Bean leaf beetles have two generations a year in Nebraska. Because they overwinter as adults, three periods of beetle activity are seen in the growing season:
    Overwintering colonizers,
    F1 generation (offspring of the colonizers, the true first generation), and
    F2 generation (the generation that will overwinter).

Bean leaf beetles overwinter as adults in leaf litter (woodlots) and soybean residue. They become active fairly early in the year (April-May), and often can be found in alfalfa prior to soybean emergence. As soybeans emerge, the beetles quickly move to the seedling plants, feeding on cotyledons and expanding leaf tissue. These overwintered beetles, called colonizers, mate and begin laying eggs. Females live about 40 days and lay from 125 to 250 eggs. After egg-laying is complete, the colonizing population dwindles as the beetles die. A new generation of beetles (F1) will begin to emerge in late June to early July. The F1 beetles mate and produce a second generation of beetles (F2) that begin to emerge in mid- to late August.

Bean leaf beetles vary in color, but are usually reddish- to yellowish-tan. They are about ¼ inch long and commonly have two black spots and a black border on the outside of each wing cover. These spots may be missing, but in all cases there is a small black triangle at the base of the wings near the thorax.

Because they move to soybean fields so soon after seedling emergence, early-planted fields will usually have more beetles and suffer the most injury, particularly if they are the only beans up and available for the beetles to move into. Although the defoliation the beetles cause can appear quite severe, research in Nebraska and elsewhere has shown that it usually does not result in economic damage. Soybean plants can compensate for a large amount of early tissue loss, so it takes a considerable amount of beetle feeding to impact yield. Generally, soybeans planted during the normal soybean planting window in Nebraska are not colonized by enough beetles to cause economic injury.

Recommendations
Sampling seedling soybeans can be somewhat difficult. Wind, shadows, and movement often cause beetles to drop from the plant and hide under dirt clods or in cracks in the soil. We suggest walking carefully along 10-15 feet of row, being careful not to let your shadow cover the row, count beetles on or near the plants, and calculate how many you have per plant. If you can stay at least 3 feet to the side of the row, that would also be less likely to alarm the beetles. Sample at least five locations in the field.

Remember that early-planted, temporally isolated soybeans are the most susceptible. If economic thresholds are reached, many insecticides are available for bean leaf beetle control. All will do an adequate job if applied according to label directions. For those that plant early, regularly have economic levels of colonizing bean leaf beetles and /or have a history of bean pod mottle virus (a bean leaf beetle vectored disease), neonicotinoid insecticide seed treatments may be warranted.

Early Weed Control
If early season defoliation occurs, early season weed management may be necessary. For example, with no defoliation, weeds can remain in the crop up to the V4 stage (third trifoliate) without significantly affecting yield. However, at 30% and 60% defoliation, weeds require removal by the V3 and V1 stages, respectively.

Some producers treat bean leaf beetle on seedling soybeans to reduce the subsequent F1 and F2 generations; however, UNL Extension does not recommend this practice. There are many environmental factors that can impact beetle populations throughout the growing season, making it impractical to use spring beetle numbers to accurately predict if beetle populations will reach economically damaging levels in August.

Regular scouting and the use of the appropriate economic thresholds are the best way to manage late season bean leaf beetle in soybean. Late-season economic thresholds will be included in CropWatch later this summer.



Timely Fungicide Application May be Warranted in Wheat
Stephen Wegulo, UNL Extension Plant Pathologist, Lincoln

Stripe rust continues to develop in wheat fields, particularly in southern and eastern Nebraska. It was confirmed in Saunders and Lancaster counties on April 24 and there was an unconfirmed report of the disease in southwest Nebraska this week. Stripe rust assessment in a state wheat variety trial in Saline County on April 26 showed high levels of disease in some lines.

Warm, dry weather April 24-25 slowed development of stripe rust; however, the change to cool, wet weather toward the end of week should favor stripe rust. Regular scouting of wheat fields for stripe rust should continue and fungicide should be applied if the flag leaf is at risk of infection. The decision to spray should be based on
-    yield potential,
-    variety susceptibility, and
-    forecast weather conditions.

New Stripe Rust
There is evidence that the race of stripe rust this year may be new since some previously resistant varieties are showing susceptibility. Even if the variety planted is considered to be resistant, it is possible that the resistance may be overcome by the current race of stripe rust.

Leaf spot diseases (mainly tan spot) and powdery mildew are also present in wheat fields and should not be overlooked. Any fungicide applied to control stripe rust will also control these diseases.
 
Wheat Viruses
Wheat streak mosaic virus and Triticum mosaic virus have consistently been confirmed in samples submitted to the UNL Plant and Pest Diagnostic Clinic, and virus symptoms have been seen in surveyed fields with varying degrees of incidence and severity. There have been reports of some fields that have been severely affected by virus infections. Barley yellow dwarf has been seen at low levels in most fields and at significant levels in a few fields.

Little can be done during the current growing season to control virus infections. The wheat curl mite that transmits both wheat streak mosaic virus and Triticum mosaic virus survives best on wheat, but can also survive on grassy weeds. To reduce wheat virus problems in the next growing season:
♦ Control volunteer wheat and grassy weeds in the field before planting this fall.
♦ Plant resistant/tolerant varieties.
♦ Avoid early planting.
♦ Control weeds and aphids (the vectors of barley yellow dwarf virus).



NPPC Praises Domino’s For Rejecting HSUS Proposal

Domino’s Pizza shareholders last Wednesday rejected – by a majority vote of 80 percent – a resolution from the Humane Society of the United States (HSUS) requiring its pork suppliers to stop the use of gestation stalls. The National Pork Producers Council hailed the move as a vote for common sense.

Animal activist groups recently have influenced several prominent foodservice companies, including McDonald’s, Wendy’s and Burger King, to make poorly informed decisions on sow housing.

“The vote to reject the HSUS resolution was a vote for common sense,” said NPPC President R.C. Hunt, a pork producer from Wilson, N.C. “We appreciate Domino’s belief that America’s farmers, veterinarians and other animal agriculture experts are better suited than activist groups to determine what the best animal care practices are.”

U.S. pork producers care about their animals and rely on the experience and knowledge of animal care experts, including the American Veterinary Medical Association and the American Association of Swine Veterinarians, when designing housing and handling their animals. These associations recognize both gestation stalls and group housing systems as appropriate for providing for the well-being of sows during pregnancy.

“Removing sow stalls has no demonstrable health or welfare benefits to animals,” said Dr. Liz Wagstrom, NPPC chief veterinarian. “In fact, the key factor that most affects animal well-being is husbandry skills – that is, the care given to each animal. There is no scientific consensus on the best way to house gestating sows because each type of housing system has inherent advantages and disadvantages.”

America’s pork farmers are committed to producing safe, affordable and healthy foods for consumers, using industry customs and practices that have been designed with input from veterinarians and other animal-care experts. Providing humane and compassionate care for their pigs at every stage of life is one of the We Care ethical principles to which U.S. hog farmers adhere.



A Positive Step Forward on the Farm Bill
Senator Mike Johanns
Last week, the Senate took a very positive step toward improving federal farm policy. An update of the farm bill passed overwhelmingly out of the Agriculture Committee, enjoying strong support from both Democrats and Republicans. This bill is an improvement for American agriculture: it's simple, it's straightforward, and it's more market-oriented. Better yet, it's fiscally responsible and will help to cut our country's troubling budget deficit.

Certainly the most pressing issue of our time remains our mounting debt, and the farm bill was drafted with this in mind. The bill saves more than $23 billion in farm and nutrition programs, while helping producers manage their risk and ensuring we continue to address hunger. Having a committee come together in a bipartisan way to cut spending in a responsible manner is a breath of fresh air.

I've met with many of you over the past year, often times at my Ag Policy Perspectives events, to discuss the new farm bill. Your thoughts and ideas are reflected in the legislation we crafted in the Agriculture Committee. The crop insurance program has been effective and popular, and it will continue to be a central risk management tool for farmers and ranchers. There has also been broad acknowledgement that direct payments must be made a thing of the past, and this farm bill steers us in that direction. The Adjusted Gross Income cap has also been reduced, further targeting government farm supports to producers who need it most.

I am pleased to report that several of my ideas and amendments are included in the bill. I've long been an advocate for policies which support beginning farmers and ranchers as well as returning veterans looking to start careers in farming. These proposals were roundly supported and included in the bill. It is critical that our federal farm policy keeps in mind the future generations of ag producers.

Another area I was glad the committee spent time discussing was trade. The bill also includes an amendment of mine to ensure USDA continues to prioritize trade. The recently enacted trade agreements with Korea and Colombia shouldn't be stopping points. We must keep working to level the playing field for our producers by lowering trade barriers around the globe. Having served previously as Agriculture Secretary, it's my opinion that trade policies at USDA can be better focused and coordinated, and my amendment will have the department evaluate improvements.

The farm bill is by no means perfect, but it is a positive turning point for American farm policy. It will benefit farmers and ranchers, it will benefit the American people, and it helps get our country back on a fiscally sustainable path. I was pleased to support it and look forward to its consideration in the full Senate.



Farm Bureau PAC Names Terry 'Friend of Agriculture'

NFBF-PAC, Nebraska Farm Bureau's political action committee, named Rep. Lee Terry a "Friend of Agriculture" and is endorsing him in his re-election race to represent Nebraska's Second Congressional District,  Chairman Mark McHargue said.

"Agriculture is the backbone of Nebraska and it's also crucial to Omaha's economic vitality. Congressman Terry understands this and has worked hard on behalf of farmers and all the citizens of the district," he said. McHargue is a hog farmer from Central City and first vice president of Nebraska Farm Bureau.

Congressman Terry has a solid record of supporting small businesses and promoting economic growth, McHargue said. "He's worked to help keep the U.S. and U.S. agriculture competitive in world markets and he stood with farmers in opposing onerous new regulations coming from the EPA."

"Congressman Terry's tireless work in trying to stop the EPA from implementing greenhouse gas regulations, duplicative Clean Water Act regulations as well as many others, help Nebraska farmers, rancher and business owners alike," McHargue said.



Farm Loan Volumes Rise and Agricultural Finances Strengthen
Jason Henderson, Kansas City Federal Reserve, Omaha Office

Non-real estate farm loan volumes rose in the first quarter, led by a surge in capital spending that boosted intermediate-term loan volumes. According to loan survey data from the week of Feb. 6, 2012, loans for farm machinery and equipment held at high levels with a sharp jump in the volume of intermediate-term loans made for unspecified purposes. With low cow inventories lifting feeder cattle prices, banks also made larger short-term loans to the livestock sector. However, strong farm income for crop producers kept operating loan volumes relatively flat heading into planting season. Farm loan portfolios at small and mid-sized banks increased by almost a third compared to last year, and farm loan portfolios at large lenders grew by more than 20 percent.

Though loan volumes rose at both large and small agricultural lenders in the first quarter, the composition of their farm loan portfolios varied. Large banks made more intermediate-term loans that were typically rated as moderate risk. Small and mid-sized banks had a larger share of short-term operating and livestock loans that were generally rated as low risk. However, small and mid-size lenders also had a higher concentration of long-term farm real estate loans in their farm loan portfolios compared with large lenders, heightening their exposure to a potential correction in the farmland market. 

Agricultural banks ended 2011 with their best financial performance in three years. The return on assets at agricultural banks in the fourth quarter rose for the second straight year, and annual net income distributions strengthened. Producers paid down debt with elevated farm incomes, reducing delinquency rates and net charge-offs for both farm real estate and non-real estate loans. Bankers reported plenty of funds were available for farm loans at historically low interest rates.

Farmland values continued to climb even with more farmland for sale at year-end. As farmland values soared by as much as 40 percent compared to last year, an increasing number of landowners auctioned off their land holdings. While non-farm investor interest helped keep bidding brisk, farmers remained the main purchasers of farmland, particularly when prices reached record levels.

First Quarter National Farm Loan Data
A rise in capital spending and larger loans to the livestock sector expanded non-real estate farm loan portfolios in the first quarter. According to loan survey data collected Feb. 6-10, 2012, non-real estate loan volumes rose 26 percent compared with last year, driven by a spike in intermediate-term, large loans for unspecifed “other” purposes. In addition, first quarter loan volumes for farm machinery and equipment approached the peak levels seen last year. Average effective interest rates on farm machinery and equipment loans edged up to 4.8 percent in the frst quarter.

High feeder livestock prices boosted the volume of short-term loans made to the livestock sector in the first quarter. A steady decline in cow inventories limited supplies and supported higher prices for feeder cattle. With strong demand for meat, particularly from foreign markets, livestock feeders borrowed to maintain production levels. In fact, the average size of feeder livestock loans rose above $100,000 three out of the last four quarters. Average effective interest rates on feeder livestock loans increased to 5.2 percent in the frst quarter.

First quarter operating loan volumes remained below historical averages but were comparable to year-ago levels. Strong farm income during the past couple of years lessened the need for short-term operating loans to fnance production inputs. Average effective interest rates on operating loans held steady at 5.0 percent in the first quarter.

While loan volumes expanded at all commercial banks in the frst quarter, the composition and risk ratings of farm loan portfolios varied by lender size. Farm loan portfolios at large agricultural banks (more than $25 million in farm loans) had a higher concentration of “other” loans for unspecifed purposes. Operating loans represented the largest share of loan portfolios at small and mid-sized agricultural banks (less than $25 million in farm loans), with other loan categories more evenly spread. Large lenders classifed the vast majority, 85 percent, of rated farm loans as moderate or higher risk while most farm loans at small and mid-sized lenders carried a low or minimal risk rating. 

Fourth Quarter District Agricultural Conditions
Farmland values reached record highs in many crop-producing regions, even with an increase in the number of farms for sale. Since last year, the average value of nonirrigated cropland rose more than 30 percent in Nebraska and South Dakota and more than 20 percent in Kansas, Iowa, Minnesota, North Dakota, northern Illinois and northern Indiana. Irrigated cropland also posted strong value gains, particularly in drought areas of the southern Plains, where supplemental water aided crop development. Bankers in the Kansas City District noted more farmland on the market compared with last year as record values enticed some landowners to sell. Still, robust demand for farmland, especially from farmers, drove prices higher. In fact, some bankers in the Chicago, Kansas City and Richmond Districts expected the upward trend in farmland values would continue into 2012.

Overall demand for farm loans remained weak in the fourth quarter despite additional capital spending at year-end. Bankers in the Chicago, Kansas City, Minneapolis and Richmond Districts noted increased capital spending at the close of 2011 as producers upgraded equipment and completed construction of farm buildings before tax depreciation rules expired. Still, most Federal Reserve Districts noted sluggish operating loan demand as many farmers paid cash for crop inputs. After falling in 2011, feeder cattle and dairy loans were expected to hold steady in the Chicago, Dallas and Richmond Districts. Interest rates for intermediate-term loans edged down, and interest rates on operating and real estate loans fell in all districts except Richmond.

Farm credit conditions strengthened further as farmers paid off loans in the fourth quarter. According to Federal Reserve surveys, loan repayment rates at agricultural banks continued to climb, most notably in the Chicago District. In the Kansas City and Dallas Districts, crop insurance and land lease revenues from mineral rights supported farm income and loan repayment rates in drought areas. In addition, loan renewals and extensions fell in all Districts but San Francisco. With weak loan demand, ample funds were available for farm loans and very few borrowers were referred to non-bank credit agencies. Bankers in the Chicago, Richmond and San Francisco Districts generally eased collateral requirements compared with last quarter, while slightly more bankers in the Dallas, Kansas City and Minneapolis Districts raised collateral requirements on non-real estate farm loans.



NEW Cooperative, Iowa Food & Family Project partner on agricultural advocacy

NEW Cooperative, Inc., Fort Dodge, Iowa, has joined the Iowa Food & Family Project as its newest food and agricultural advocacy partner.  “We welcome NEW Cooperative to the growing group of partners who are committed to sharing information with people interested in healthy food and the integrity of the farmers, processors and retailers who provide it,” says Aaron Putze, director of communications for the Iowa Soybean Association and coordinator of the Iowa Food & Family Project.

The goal of the Iowa Food & Family Project is to unite Iowans in conversations about food through personal engagement, advocacy and collaboration. It involves the support of more than 30 farm organizations, retailers, businesses and food-relief associations.  The Iowa FFP delivers on its mission by serving as Presenting Sponsor of the Iowa Games and supporter of Live Healthy Iowa. It engages Iowans by coordinating unique food and agricultural experiences at the Summer Iowa Games and Iowa State Fair. It also coordinates the FFA “Planting A Seed” Grant Program and “Special Delivery. Homes. Help. Hope. For Haiti.”

“NEW Cooperative members understand and value efforts that connect farmers and consumers and are eager to support the Iowa Food and Family Project and become involved in its activities,” says Brent Bunte, NEW Coop general manager. “We’re also hopeful our participation will encourage other coops across the state to join in supporting efforts that inspire greater awareness and trust of today’s farmers and their commitment to providing wholesome food for everyone.”

Putze says the Iowa FFP and NEW Cooperative, along with the other Iowa FFP food-advocacy partners, will work together to sponsor and conduct unique and timely communications and ag engagement programs across the state.



April Farm Prices Received Index Down 7 Points

The preliminary All Farm Products Index of Prices Received by Farmers in April, at 177 percent, based on 1990-1992=100, decreased 7 points (3.8 percent) from March. The Crop Index is down 5 points (2.4 percent) and the Livestock Index decreased 7 points (4.4 percent). Producers received lower prices for broilers, corn, cattle, and eggs and higher prices for soybeans, onions, hay, and oranges. In addition to prices, the overall index is also affected by the seasonal change based on a 3-year average mix of commodities producers sell. Increased monthly movement of cattle, strawberries, milk, and broilers offset the decreased marketing of soybeans, corn, wheat, and cotton.

The preliminary All Farm Products Index is up 1 point (0.6 percent) from April 2011. The Food Commodities Index, at 166, decreased 5 points (2.9 percent) from last month but is unchanged from April 2011.

All crops:
The April index, at 205, decreased 2.4 percent from March but is 2.5 percent above April 2011. Index decreases for feed grains & hay and food grains more than offset the index increases for oilseeds, fruits & nuts, and commercial vegetables.

Food grains: The April index, at 223, is down 1.8 percent from the previous month and 8.6 percent below a year ago. The April price for all wheat, at $6.87 per bushel, is down 32 cents from March and $1.14 below April 2011.

Feed grains & hay: The April index, at 265, declined 2.2 percent from last month but is 0.8 percent higher than a year ago. The corn price, at $6.14 per bushel, is down 21 cents from last month and 22 cents below April 2011. The all hay price, at $190 per ton, is up $47.00 from March and $9.00 from last April. Sorghum grain, at $10.40 per cwt, is 50 cents below March and down $1.30 from April last year.

Cotton, Upland: The April index, at 151, is up 1.3 percent from March and 5.6 percent above last year. The April price, at 91.6 cents per pound, is up 1.4 cents from the previous month and 4.9 cents from last April.

Oilseeds: The April index, at 247, is up 6.0 percent from March and 5.1 percent higher than April 2011. The soybean price, at $13.80 per bushel, increased 80 cents from March and is 70 cents above April 2011.

Livestock and products:
The April index, at 153, is down 4.4 percent from last month and 1.9 percent from April 2011.  Compared with a year ago, prices are lower for milk, eggs, and hogs. Prices for cattle, broilers, calves, and turkeys are up from last year.

Meat animals: The April index, at 163, is down 1.8 percent from last month but 3.2 percent higher than last year. The April hog price, at $62.60 per cwt, is down $2.60 from March and $5.20 lower than a year ago. The April beef cattle price of $125 per cwt is down $3.00 from last month but $6.00 higher than April 2011.

Dairy products: The April index, at 129, is down 2.3 percent from a month ago and 14 percent lower than April last year. The April all milk price of $16.90 per cwt is down 30 cents from last month and $2.70 lower than April 2011.

Poultry & eggs: The April index, at 159, is down 8.6 percent from March but 0.6 percent above a year ago. The April market egg price, at 64.2 cents per dozen, decreased 14.9 cents from March and is 24.5 cents below April 2011. The April broiler price, at 51.0 cents per pound, is 6.0 cents lower than March but 2.0 cents above a year ago. The April turkey price, at 73.4 cents per pound, is up 4.4 cents from the previous month and 7.7 cents from a year earlier.

Prices Paid Index Unchanged
The April Index of Prices Paid for Commodities and Services, Interest, Taxes, and Farm Wage Rates (PPITW) is 21 percent of the 1990 1992 average. The index is unchanged from March but 10 points above (4.9 percent) April 2011. Higher prices in April for complete feeds, concentrates, hay & forages, and supplements offset lower prices for feeder cattle, feeder pigs, feed grains, and LP gas.



CWT Assists with 2.4 Million Pounds of Cheese and Butter Export Sales

Cooperatives Working Together (CWT) has accepted 13 requests for export assistance from Dairy Farmers of America, Darigold, Foremost Farms, Maryland & Virginia Milk Producers Cooperative and United Dairymen of Arizona to sell a total of 393 metric tons (866,417 pounds) of Cheddar and Monterey Jack cheese and 712 metric tons (1.570 million pounds) of butter to customers in Africa, Asia, the Middle East and South America. The product will be delivered May through July 2012.

In 2012, CWT has assisted member cooperatives in making export sales of Cheddar, Monterey Jack and Gouda cheese totaling 46.9 million pounds and butter totaling 40.8 million pounds to 26 countries on four continents. On a butterfat basis, the milk equivalent of these exports is 1.322 billion pounds, or the same as the annual milk production of 62,950 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.



International Food Aid and Development Conference Scheduled for May 7-9, 2012, in Kansas City, Mo.

The U.S. Department of Agriculture (USDA) and the U.S. Agency for International Development (USAID) announced today that the 14th annual International Food Aid and Development Conference will be held in Kansas City, Mo., May 7-9, 2012. The theme of this year’s conference is “From Harvest to Basket: Weaving Together Agricultural Markets and Food Security.”

Special guest speakers include the Republic of Congo’s Minister of Education Rosalie Kama-Niamayoua, Angola’s Ministry of Education National School Feeding Coordinator Domingos Torres, USDA’s Acting Under Secretary for Farm and Foreign Agricultural Services Michael Scuse, USAID’s Assistant Administrator Nancy Lindborg, Pioneer Hi-Bred President Paul Schickler, and Chicago Council on Global Affairs Senior Fellow and Professor Emeritus of the University of Illinois at Urbana-Champaign Dr. Robert Thompson.

The International Food Aid and Development Conference provides a forum to address policy and operational issues related to food aid and development, as well as ways to improve communication and cooperation among government, non-profit charitable and non-governmental organizations, and agricultural and transportation industry representatives. The conference also gives participants an opportunity to network with one another and discuss food security, nutrition, public-private partnerships, sustainable school feeding, commodity management, storage, and quality control, and food aid operations, programming, collaboration, monitoring, and evaluation.



EU Policy May Stop Soy Biofuel Imports

(Dow Jones) -- Imports of palm oil and soybean biofuels to the European Union could be stopped under two of three options that top EU policymakers will consider to ensure the use of the most climate-friendly biofuels, a document seen by Dow Jones Newswires showed.

The document will form the basis for discussions by the 27 EU commissioners Wednesday when they are expected to pick one option.

The Indirect Land Use Change caused by biofuels is among Europe's most controversial climate policies because the bloc's biofuels market, one of the most promising worldwide, is at stake. An EU target to have 10% renewable energy fuelling transport by 2020 -- likely to be met mainly with biofuels -- has triggered billions of investments in biofuel production and affected global trade patterns.

According to the document, two of three options proposed would effectively ban imports of palm oil and soybean biofuels because the biodiesels from them emit too many greenhouse gases. Argentina, Malaysia and Indonesia are the main exporters to the EU.

Rapeseed biodiesel -- of which the EU has a strong domestic production -- would be allowed. But its use would be discouraged under the option that's most likely to be selected because it provides a compromise among diverging positions within the commission.

The Indirect Land Use Change relates to CO2 emissions caused by displacement of crops to meet higher demand for biofuels. To grow more biofuel crops farmers are potentially encouraged to cut down forests and move into peat lands, both of which absorb high levels of carbon dioxide. Further deforestation and loss of peat land could occur as food crops would also be displaced by biofuels. As a consequence, an increased use of biofuels would actually raise CO2 emissions, according to this argument.

According to two of the options on the table, for a biofuel to count toward the 10% renewable energy target it would have to emit at least 60% less CO2 than fuels derived from conventional oil. While such a provision would be an indirect way of helping to counter reduced carbon capture due to change of land use and deforestation, it would still have an impact on which biofuels would be used in the EU.

"Biodiesels derived from palm oil and soy bean would fall considerably short of the revised 60% greenhouse gas saving threshold, meaning that imports of these biofuels would effectively be prevented," the document said.

Soy bean and palm oil fuels are used to produce biodiesel that is important in Europe where a large majority of cars run on diesel. Biodiesels are also generally considered to drive higher indirect emissions from land use change than other biofuels.

The paper points out that rapeseed -- the most popular crop for EU biodiesel, mainly produced in Germany, Spain, France and Italy -- would eventually meet the 60% threshold, thanks to improvements in its production.



CNH Global Releases Healthy Earnings Report

Farm and construction equipment maker CNH Global N.V. posted a quarterly profit that handily beat analysts' estimates on higher margins and the strength of the North American agriculture market. Rising prices of food commodities including corn, wheat and soybean have boosted farmers' incomes and they can afford to buy high-margin machinery, especially in North America.

CNH Global, the world's second largest maker of farm equipment after Deere & Co., also reaffirmed its full-year revenue growth of 5 percent. It expects global agricultural and construction equipment markets to remain positive in 2012.

First-quarter net income rose to $269 million, or $1.11 per share, from $138 million, or 63 cents per share, a year ago.  Sales rose 22 percent to $4.64 billion. Operating margin increased to 8.8 percent from 6.5 percent in the year-ago quarter.  Agricultural equipment sales rose 18 percent while construction equipment jumped 41 percent.

The company makes tractors, combines, planters, forklifts and sked steer loaders under the Case and New Holland brands among others.



Judge Denies MF Global Customer Bid to Block Insurance Funds
A bankruptcy judge shot down an attempt by an MF Global Holdings Ltd. (MFGLQ) commodities customer to block the firm's executives, including former Chief Executive Jon S. Corzine, from accessing millions of dollars in insurance proceeds.

Judge Martin Glenn of the U.S. Bankruptcy Court in Manhattan on Monday denied Sapere Wealth Management LLC's request for an injunction that would block MF Global's executives from drawing $30 million in available insurance funds while Sapere appeals their right to payment. The insurance covers the costs the executives may face defending themselves against "wrongful act" lawsuits.

Glenn has already shot down as "frivolous" a prior request from Sapere that the insurance funds instead be set aside for it and some 25,000 other commodities customers whose $1.6 billion in funds went missing from MF Global's segregated customer accounts upon its collapse last year. His order Monday says Sapere's latest request doesn't fall in line with well-established legal precedent.

"Settled case law in this circuit and elsewhere establishes that the individual insureds cannot be denied contractually provided insurance protection when their employers are insolvent because others may have claims on the insurance policies as well," Glenn wrote in his order.

The judge added that Sapere's request, filed Friday, "includes a number of misstatements and mischaracterizations" of his prior ruling regarding the insurance funds. Glenn declined to address those in his ruling against the request.

Sapere's attorney, John J. Witmeyer III, said Monday afternoon that the firm would ask a U.S. district court, where it will appeal the executives' right to tap the insurance policies, to block the payout while it's appeal is pending.

Sapere had argued it would suffer "irreparable harm" if the executives were allowed to draw the funds while it continues to fight their right to payment, arguing that there is a "substantial likelihood" that it would prevail.

"Every dollar that is spent funding the defenses of the various directors and officers is money that cannot be spent to compensate commodities customers for the cumulative $1.6 billion loss they have suffered from their segregated accounts," Sapere said in court papers.

Several weeks ago, Glenn agreed to free up some $375 million in insurance proceeds over the objections of Sapere and others. He capped executives' use of the funds at $30 million, though he said they could request more later.

"Although [MF Global] commodity customers have unquestionably suffered severe financial harm, accusations of misconduct provide no basis for denying the individual insureds insurance protection under the...policies," Glenn wrote in an opinion dated April 10.

Last week, Glenn denied an appeal by Sapere in its bid to jump ahead in the line of creditors waiting for payment in MF Global's bankruptcy case.

MF Global Holdings, the parent company of the brokerage, filed for Chapter 11 bankruptcy protection on Oct. 31. The brokerage isn't in bankruptcy protection but is being unwound under the Securities Investor Protection Act