Thursday April 12 Ag News

FCS of America Should Pay Their Fair Share of Taxes
George Beattie, President & CEO, Nebraska Bankers Association

Today, we are in a great debate about our national debt.  As a society and a government, we need to determine how best to live within our means. We need to decide what we can afford and who should be the recipients of tax credits.

Omaha-headquartered Farm Credit Services of America made $456.4 million in after-tax profits in 2011.  They provided for just $9.4 million in total federal and state taxes - just 2 percent of their pre-tax income!  If you look at their 2011 annual report, Farm Credit Services of America would have paid as much as $163 million in federal income taxes alone in 2011 if they were taxed like banks.  Instead, the federal government provides them a significant tax advantage:  profits Farm Credit Services of America earns on its real estate loans are tax exempt.  This federal benefit has a history of paying big dividends to Farm Credit Services of America.  In 2010, Farm Credit Services of America paid just $308,000 in total taxes on income of $419 million.

Farm Credit Services of America recently has been running advertisements throughout the state that make a big deal about the "dividends" they are paying customers who borrow from them (by the way, only 29 percent of their total loans are to Nebraskans).  Farm Credit Services of America portrays their dividend program as giving back to borrowers and their communities.  They also claim they are the only lender who "shares" with their customers.

On behalf of the more than 220 taxpaying banks across our state, I take exception to this type of advertising.  Banks in Nebraska pay their fair share of both federal and state taxes at a much higher rate - 36 percent to 39 percent of income.  Tax contributions from Nebraska banks help support our federal government and keep teachers in our schools, law enforcement on our streets, and our highways in good repair.  We honor our commitment to Nebraska because we believe in the future of our great state and our country.

Instead of advertising that they are "sharing" their wealth with a limited number of Nebraskans, Farm Credit Services of America should pay their fair share of taxes.



NRCS Honors Volunteers During National Volunteer Week

USDA’s Natural Resources Conservation Service (NRCS) is celebrating National Volunteer Week April 15-21 by honoring Earth Team volunteers and expressing appreciation for their dedicated service and commitment to conservation. The Earth Team is NRCS’ volunteer workforce.  Nationally, in fiscal year 2011, 22,000 Earth Team volunteers donated 435,653 hours of service totaling $9.3 million.

NRCS State Conservationist Craig Derickson said Earth Team volunteers are making an environmental impact in Nebraska. Last year, 1,221 volunteers donated over 17,000 hours in Nebraska.

“That’s worth $26,080 of benefit to our customers and savings to the taxpayers,” said Derickson. “These are impressive numbers and we are grateful for the help, but also recognize that more conservation work needs to be done, so there are plenty of volunteer opportunities available with NRCS statewide.”

Created in 1985, the Earth Team program offers many opportunities to individuals over the age of 14 interested in helping improve the Nation’s natural resources. Earth Team volunteers help NRCS conservationists offer private landowners conservation technical assistance to teaching and generating awareness about conservation through the use of community projects. Over a half-million Earth Team volunteers have donated $336 million worth of time helping NRCS with its conservation mission since 1985.

“The NRCS theme for this year puts it best,” said Derickson. “We are ‘Celebrating Earth Team Volunteers in Action.’  Earth Team volunteers allow us to stretch available resources and help us put additional conservation practices on the ground.  Their volunteer efforts help us improve our land and wildlife habitats, clean our water and air, and help us improve the environment for everyone.”

Derickson said he hopes National Volunteer Week will motivate others to volunteer to help NRCS with their conservation mission. “Earth Team volunteers work closely with our staff and they play an important role in our state’s conservation work. They take on a variety of conservation assignments, and many Earth Team volunteers tell us they find their volunteer work enjoyable and personally very rewarding.”



Fort Dodge Company Plans Major Expansion

Responding to double digit sales growth over the last five years, officials with Calcium Products, Inc. (CPI) Wednesday announced a major expansion to their Fort Dodge manufacturing facility. The new plant will be able to meet the growing demand for SuperCal SO4, a naturally-mined sulfur fertilizer and superior quality gypsum product used by growers across North America.

"SuperCal SO4, one of several soil amendment products we manufacture, has led industry sales as farmers and growers better understand the importance calcium and sulfur has on plant health, vitality and crop production," explained Craig Dick, CPI vice president of sales and marketing. "Because of increased demand for a naturally-mined product such as SuperCal SO4 we've made the strategic decision to double our production levels over the next two years and enable capabilities to produce even more in the near future."

The community is invited to attend CPI's ground breaking on April 17 at 2 p.m., north of their existing Fort Dodge plant at 2063 Quail Ave.

Calcium Products, Inc. officials estimate the new facility will allow them to increase their employee base by up to 10% while supporting the local and Iowa economies with increased sales. Currently CPI sells much of their natural soil amendment products out of state.

"We are proud to be an Iowa-based, employee-owned company; our customers know they are dealing with a company that exhibits Iowa values and work ethic. That, along with our ability to produce some of the most pure, high-quality products on the market, has enhanced our customers' experience," added Dick.

The company also has a production facility in Gilmore City, Iowa, with warehouses and distribution centers in Alden and Aplington, Iowa.



NCBA Statement on FDA Guidance Documents on Antibiotic Use, Proposed Veterinary Feed Directives

The U.S. Food and Drug Administration (FDA) announced today its intent to publish in the Federal Register on Fri., April 13, 2012, its final Guidance 209 and a draft proposed rule on veterinary feed directives. Tom Talbot, a California beef producer, large animal veterinarian and current chairman of the National Cattlemen’s Beef Association's (NCBA) Cattle Health and Well-Being Committee, issued the following statement.

“Raising healthy cattle is the top priority for cattle farmers and ranchers. They work with veterinarians and animal health experts to implement comprehensive herd-health plans, which include the judicious use of antibiotics to prevent, control and treat any cattle health issues. NCBA is pleased that FDA has resisted unscientific calls to completely ban the use of antibiotics and antimicrobials in cattle and other livestock species. However, we remain concerned with regulatory actions that are not based on peer-reviewed science or that set the precedent to take animal care and health decisions out of the hands of veterinarians.

“NCBA raised concern with FDA’s Guidance 209 in 2010 because the agency lacked the necessary science in its recommendations. Antimicrobial resistance is multifaceted, extremely complex issue that cannot be adequately addressed solely by focusing on the use of antibiotics in animal agriculture. Prudent and responsible evaluation of this issue must consider animal, human and industrial use of antibiotics. While we appreciate the agency working with industry on the implementation of Guidance 209, we remain committed that a strong science foundation is critical before moving forward with this guidance.

“The goal of giving veterinarians greater oversight of antibiotic use in food animals is commendable but cattlemen are concerned with the feasibility of implementing the veterinary feed directives given practical hurdles, including a current shortage of veterinarians in many rural areas throughout the country and the increased record-keeping burden it could have on the day-to-day requirements veterinarians currently face. We are pleased FDA has committed to working with farmers and ranchers, veterinarians and with the U.S. Department of Agriculture to seek additional information and address these concerns specifically to ensure family-owned farms and ranches are not negatively impacted by this regulation.

“Cattle producers have a strong track record of working with veterinarians in the prudent and appropriate use of antibiotics and other herd health tools. Through multiple industry-led initiatives, including the Beef Quality Assurance Program and the Producer Guidelines for Judicious Use of Antimicrobials, cattle farmers and ranchers work hand-in-hand with veterinarians to select and use antibiotics carefully and only when needed. NCBA will continue carefully reviewing FDA’s documents and working with the agency on these and all other issues related to the health and well-being of America’s cattle herd to ensure producers have the tools they need to continue producing the safest beef supply in the world.”



Iowa Beef Center Director Here for the Long Haul

The Iowa Beef Center (IBC) at Iowa State University (ISU) has a new director, and chances are good you’ve already met him. Dan Loy, who led IBC in an interim capacity for two years, was named permanent director this spring by his predecessor John Lawrence. In 2010, Lawrence left the IBC director position to become the College of Agriculture and Life Sciences associate dean for extension programs and outreach and director of extension for agriculture and natural resources.

He said the decision to name Loy as director was an easy one.

“Dan has the experience and the expertise to lead the center,” Lawrence said. “His willingness to work with faculty, staff, students and producers to make Iowa’s beef industry efficient and profitable is valuable, and his reputation among beef industry colleagues is highly regarded.”

Loy is just the third director for the center, which began in 1996 through a legislative mandate. He joined the Iowa State faculty as extension beef specialist in 1982, and has been involved in a variety of research, teaching and extension opportunities since then.

“John’s legacy of 12 years of leadership at IBC gave us a sound foundation and I realized I had some big boots to fill,” Loy said. “Two years later, I can say that those boots have traveled a few miles and are well broken in. I’ve learned that we have a great team of ISU faculty and staff members who are determined to do the best job we can.”

He said Lawrence and vice president for ISU Extension and Outreach Cathann Kress have encouraged cooperation and collaboration with internal and external groups and organizations, and that’s a big part of what makes IBC successful in spite of recent budget challenges and staff reductions.

“We decided that through teamwork and innovation the center could continue to be responsive to the needs of Iowa’s beef industry,” Loy said. “But we haven’t done it alone. We’ve succeeded through partnerships. It’s those organizations, companies and agencies that have worked with us that have helped us move forward and better serve our constituents.”

He said IBC will continue to build the resources and partnerships necessary to bring cutting edge research based information to the Iowa beef industry, and welcomes comments, questions and suggestions.

“Feel free to give us a call at 515-294-BEEF or drop an email to beefcenter@iastate.edu. I encourage you to get to know the ISU Extension beef program specialist in your area. You can check our website, www.iowabeefcenter.org, or contact your county extension office to find your specialist,” Loy said.

“Personally, the boots have been polished and resoled. I, along with the rest of the faculty and staff of the IBC, are in it for the long haul, and we look forward to working with you,” he said.



Soy Transportation Coalition to Testify at Hearing on Inland Waterways

Mike Steenhoek, executive director of the Soy Transportation Coalition (STC), will serve as one of five witnesses before next week’s hearing of the House Transportation and Infrastructure Subcommittee on Water Resources and Environment.

The Wednesday, April 18 hearing, "How Reliability of the Inland Waterway System Impacts Economic Competitiveness," will offer Steenhoek and the soy industry an opportunity to underscore the critical need for investment in the nation’s waterways infrastructure.

The STC has commissioned analyses on transportation issues that impact U.S. soybean producers, including a study currently underway on inland waterways infrastructure. More information is available at www.SoyTransportation.org.



Report Pegs Value of Soy Chemicals Market at $13 Billion

Global Industry Analysts, Inc., released a comprehensive report this week on the global soy chemicals market, which projects demand for soy chemicals to reach $13 billion by 2017. According to a press release, the report, titled "Soy Chemicals: A Global Strategic Business Report," provides a comprehensive review of trends, issues and industry activities; profiles of major companies; and market estimates and projections for major regional markets. End-use segments analyzed include plastics, biodiesel, food and beverages and others.

“The plastics segment is forecast to display maximum potential for growth driven by growing demand for renewable plastics and polymers,” stated the report. “Further, the narrowing cost differential between petroleum-based polyols and soy oil-based polyols and enhanced performance of soy chemicals over petrochemical-based materials in recent years has increased the interest in soy chemicals for production of foams, coatings and adhesives.”

Examples of soy chemicals include methyl soyate, soy waxes, soy fatty acids, polyols, isoflavones, lecithin, and refined industrial soy oil. Global Industry Analysts suggests that increases in crude oil prices and the need for new energy sources from eco-friendly feedstocks, including soybeans, is expected to spur investment in soy chemicals. The company cites renewable sourcing goals, sustainability, and decreasing landfill capacity, as well as an ongoing research and development activities of soy industry participants as factors pushing the demand for soy chemicals.



Argentina Soy Forecast Revised Down
Prospects for Argentina's 2011-12 soybean crop continue to dim due to an earlier drought, with production unlikely to top 44 million metric tons, the Buenos Aires Cereals Exchange said Thursday.  That's down 1 million tons from the exchange's forecast from last week and represents a drop of 10.5% on the year.

A severe drought battered the 2011-12 soy crop in December and January, cutting yields and leading many farmers to put off planting. That means that a much larger share of the crop is late-planted soy, which is still developing and is vulnerable to cold. Farmers are beginning to harvest the early soy, but much will remain in the fields through as late as July.

Argentina leads global soyoil and soymeal exports and ranks third in soybean exports. Global soy prices have been buoyed in recent weeks by signs that the soybean crops in both Argentina and Brazil will come in much lower than initial expectations due to the drought blamed on the La Nina weather phenomenon and an early arrival of cold weather.



Farmers Save Energy with Swine Ventilation Management

Proper management of furnace and ventilation controller settings in hog buildings can reduce propane and electricity costs. A new publication from Iowa State University Extension and Outreach illustrates the impact controller settings can have on furnace run time and energy consumption in swine production facilities.

"Managing swine ventilation controller settings to save energy" (PM 2089T) is available to download from the Extension Online Store, https://store.extension.iastate.edu/.

"By managing on-off temperature settings for the system controller, energy consumption for a hog facility can often be reduced," said Jay Harmon, ISU Extension agricultural engineer. "With proper adjustments, furnace run time can be minimized to avoid expending excessive energy from the building while still maintaining proper air quality."

This publication summarizes furnace and ventilation controller terminology such as setpoint, offset and differential. It also illustrates a specific example for modifying the furnace offset to minimize furnace run time while still maintaining good air quality within the building.

Proper management of furnace and ventilation controller settings in hog buildings can reduce propane and electricity costs. A new publication from Iowa State University Extension and Outreach illustrates the impact controller settings can have on furnace run time and energy consumption in swine production facilities.

"By managing on-off temperature settings for the system controller, energy consumption for a hog facility can often be reduced," said Jay Harmon, ISU Extension agricultural engineer. "With proper adjustments, furnace run time can be minimized to avoid expending excessive energy from the building while still maintaining proper air quality."

This publication summarizes furnace and ventilation controller terminology such as setpoint, offset and differential. It also illustrates a specific example for modifying the furnace offset to minimize furnace run time while still maintaining good air quality within the building.

The Farm Energy publications are part of a series of farm energy conservation and efficiency educational materials being developed through the ISU Farm Energy Initiative. The purpose is to increase farmers' awareness of opportunities for improving efficient use of farm energy. The initiative also will help farmers and utility providers to explore alternatives to reduce farm energy demand and to improve overall profitability in a rapidly changing energy environment.

The Farm Energy publications are part of a series of farm energy conservation and efficiency educational materials being developed through the ISU Farm Energy Initiative. The purpose is to increase farmers' awareness of opportunities for improving efficient use of farm energy. The initiative also will help farmers and utility providers to explore alternatives to reduce farm energy demand and to improve overall profitability in a rapidly changing energy environment.



Gas Prices Inch Lower, Diesel Higher

The U.S. average retail price of regular gasoline decreased 0.2 cent this week to stay at $3.94 per gallon, 15 cents per gallon higher than last year at this time. The West Coast price was down about three cents to $4.20 per gallon, while the Rocky Mountain price increased four cents to $3.79 per gallon.

The Gulf Coast price increased about two cents to $3.82 per gallon, while the Midwest price decreased five cents to $3.86 per gallon. Rounding out the regions, prices on the East Coast increased almost four cents to $3.95 per gallon.

The national average diesel fuel price increased 0.6 cent to $4.15 per gallon, 7 cents per gallon higher than last year at this time. The West Coast was the only region where the price decreased, dropping one cent to $4.41 per gallon.

The Midwest and Gulf Coast prices both rose to $4.06 per gallon, and the Rocky Mountain price increased to $4.13 per gallon. The East Coast price has been flat for the last three weeks at $4.19 per gallon.



Individual Giving Council: Give to FFA, we’ll match your contribution

Eight people from throughout the country that comprise a special advisory council for the National FFA Foundation are issuing a challenge to FFA and agricultural education supporters everywhere: Give to FFA and we’ll match your gift.

The National FFA Foundation’s 2012 Individual Giving Council is comprised of volunteers Elin Miller of Oregon, Paul Mulhollem of Kentucky, Mark Timm of Indiana, Jack Pitzer and Corey Rosenbush, both of Virginia, Rick Malir of Ohio, Lynette Marshall and Glenn Stith, both of Iowa, and founding member Charlie Fischer. Through individual giving, the group has collectively contributed more than $312,000 to FFA over the next three years to create a new matching-gift program called the Leadership Challenge.

Effective today, each new gift, regardless of the amount, or any increase in prior giving that allows an FFA contributor’s total gift to meet or exceed $1,000 will be matched dollar for dollar by Leadership Challenge funds up to $100,000.

The council’s goal is to lead the way in individual giving to support FFA and agricultural education, create a new culture of philanthropy dedicated to FFA and its members by emphasizing the importance of individual contributors and motivating them to give.”

“This is the first time in the 85-year history of FFA that we have had a group of individuals come together, create a pool of donations and offer that pool as matching-fund incentives to encourage others as individuals to give to FFA,” said Rob Cooper, executive director of the National FFA Foundation. “By giving as an individual donor, those who choose to support FFA are helping smart, talented and determined FFA members become tomorrow’s leaders in the agricultural industry. Tomorrow’s leaders will develop new strategies and technologies that will ensure a safe, abundant and affordable food supply for us all.”



ACE’s infographic illustrates how the Renewable Fuels Standard is working

The American Coalition for Ethanol (ACE) is releasing an ‘infographic’ entitled “It’s Working” which provides a vivid depiction of how the Renewable Fuels Standard (RFS2) and ethanol are reducing oil imports and saving Americans money at the pump.

ACE Executive Vice President Brian Jennings says the infographic’s attention-grabbing charts and statistics were an important part of the group’s recent DC fly-in and can be used to educate the media and general public about the benefits of ethanol.

“We felt the need to create a unique and informative tool about what the RFS and ethanol are accomplishing during our fly-in.  Sixty ACE members hand-delivered it to nearly 200 congressional offices and, based upon their feedback, the infographic enabled them to make a persuasive case about the need to keep the RFS intact,” said Jennings.  “We encourage all grassroots ethanol supporters to make good use of this valuable resource by sharing it with their policymakers and local media.”

The infographic cites data from the U.S. Energy Information Administration and other reliable third-parties and depicts noteworthy ethanol accomplishments since enactment of the RFS, including helping reduce oil imports and replace the need for 485 million barrels of imported oil, how U.S. ethanol production is greater than the gasoline which could be produced from the Arctic National Wildlife Refuge, Bakken Shale Oil Formation, and proposed Keystone XL pipeline combined, and how ethanol helps save consumers money.

The infographic is available on the ACE website by clicking this link: http://www.ethanol.org/pdf/contentmgmt/ACEInfographic_downloadable.pdf.  



Brazil's UNICA Sees Higher Sugarcane Harvest in 2012-13

The Brazilian Sugarcane Industry Association, known as UNICA, Thursday released its latest estimate for the next sugarcane harvest projecting that 509 million tons will be harvested in Brazil's South-Central region during the 2012-2013 season, up 3.19% from the prior year's harvest.  Out of that projected sugarcane harvest, 48.75% will be turned into sugar while 51.25% will be turned into 21.49 billion liters of fuel ethanol.  Of that total ethanol output forecast, 14.54 billion liters will be hydrous ethanol, which is usually used by flex-fuel vehicles in Brazil, while 6.95 billion liters will be anhydrous ethanol, which is usually exported.  The 2012-2013 estimates for hydrous ethanol output is up 11.1% from the prior year while estimates for anhydrous ethanol are down 6% year-on-year.



Senator Addresses Agriculture, Economic Challenges

U.S. Senator Roy Blunt shared his thoughts on today's political environment with St. Louis Agribusiness Club members and guests at a lunch this week, co-sponsored by the National Corn Growers Association. NCGA CEO Rick Tolman was on hand to thank the senator for his work on behalf of U.S. agriculture, and draw attention to the lengthy list of unresolved issues that concerns farmers.

"When big decisions are being made, government stands still," said Sen. Blunt, R-Mo. "We are going to have to decide who we as Americans want to be. Do we want to follow Europe's path and have government outgrow our economy, or do we want a government we can afford?"

As ranking member of the Appropriations Committee's Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies, Sen. Blunt played a vital role in writing and passing the 2012 agriculture appropriations bill. The senator conveyed his pride in being able to maintain vital support for research and extension at land grant universities, capacity building grants for non-land grant colleges of agriculture, and competitive funding under USDA's Agriculture and Food Research Initiative.

When asked if he thought a farm bill could be completed this year, Sen. Blunt said he thought some extension of the current bill was more likely. "Although something could be accomplished in the Senate that we could live with, that won't happen in the House," Blunt said.

Because of his background as a history teacher and university president, Blunt brings a unique perspective to his work in public service. He commented on government's lack of progress these past two years, and pointed out similar junctures during the administrations of Thomas Jefferson, Andrew Jackson, Abraham Lincoln, both Roosevelts, Lyndon Johnson and Ronald Reagan. He said he believes that we will have another year of gridlock before government will be back to business and make the necessary hard decisions it is now avoiding.



Larger Tractor Sales Up in March

The Association of Equipment Manufacturers' monthly "Flash Report," says the sales of all tractors in the U.S. for March 2012 were down 3% compared to the same month last year.  For the month, two-wheel-drive smaller tractor (under 40 HP) were down 3% from last year, and 40 & under 100 HP were down 6%. Sales of two-wheel-drive 100+ HP were down 4% from last year, and four-wheel-drive tractors were up 15% for the month. Combine sales were down 26% for the month.

For the first three months of 2012, two-wheel drive smaller tractors (Under 40 HP) are down 0.5% from last year, while 40 & under 100 HP are up 3%. Sales of 2-wheel drive 100+ HP are up 2%, while 4-Wheel Drive tractors are down 0.9% for the year.  So far this year, a total of 33,630 tractors were sold, which compares to 33,284 sold through March 2011.  Sales of combines for the first three months totaled 1,319, a decrease of 43% over the same period in 2011.



LAST CHANCE TO NOMINATE A FARM MOM FOR AMERICA’S FARMERS MOM OF THE YEAR

            Monsanto’s search for the next America’s Farmers Mom of the Year is winding down, but there’s still time to nominate your favorite farm mom for the national title and up to $10,000 in prize money. Nominations will be accepted through April 23 at www.AmericasFarmers.com.

            For its third year, Monsanto will again partner with American Agri-Women to spearhead the judging process. Each of five regional winners will receive $5,000 and will be featured on AmericasFarmers.com from May 1–12, where online voting will determine the national winner. The new America’s Farmers Mom of the Year will be announced on the site on Mother’s Day, May 13, and she will receive an additional $5,000.

             “From the outpouring of entries we’ve received thus far, it’s clear that farm moms are loved and appreciated by their families, students, neighbors and friends,” says Consuelo Madere, America’s Farmers spokesperson. “I encourage everyone whose life has been impacted by a farm mom to visit AmericasFarmers.com and nominate her before the contest ends this month. It’s one small way to say ‘thank you’ and ‘Happy Mother’s Day’ to that extra-special farm mom.”

            April Hemmes, America’s Farmers Mom of the Year 2011 for the Midwest Region, feels the contest is a great opportunity to recognize women in the male-dominated farming industry. “I think this effort really brings awareness to farm women, who are often under-recognized,” she says. “This contest is a great way to tell her you love her and she’s doing a great job.’”

            Bette Lu Lerwick, America’s Farmers Mom of the Year 2011 national winner, recalls the day she received the call telling her she had won. “I was very surprised, and a little astounded, to be honored for the things I do just living my life, here on the farm in my little Wyoming community,” she says. “I’m so glad that Monsanto is recognizing this very real, very necessary side of farming.”

            Anyone can submit a nomination by visiting AmericasFarmers.com and explaining how their favorite farm mom contributes to her family, farm, community and the agricultural industry. Complete eligibility requirements and official rules can be obtained on the website or by sending a self-addressed, stamped envelope to America’s Farmers Mom of the Year, 914 Spruce Street, St. Louis, MO 63102. The nomination deadline is Monday, April 23.