Tuesday April 24 Ag News

Finally... Some Truth in Advertising... (the radio guy says tounge-in-cheek)

Some of my friends in agriculture are circulating this video about the Humane Society of the United States.  It's a great satire video... funny for those who know the true intentions of HSUS.  But for those that are unaware, please, it is your and my duty to educate them about HSUS and their true goal of eliminating animal agriculture.  Anyway, have fun watching the video!  http://www.youtube.com/watch?v=XTrhQd9GHlE&sns=em. 



STATEMENT BY AGRICULTURE DIRECTOR GREG IBACH REGARDING BSE FINDING

Nebraska Agriculture Director Greg Ibach offered this comment today following an announcement by the United States Department of Agriculture (USDA) that a case of bovine spongiform encephalopathy (BSE) has been found in a California dairy cow.

“The United States has in place a number of science-based protocols to assure the production of safe, wholesome beef and dairy products.  Because of these protocols, the finding of an atypical case of BSE should not alter the international trading landscape.

“We are operating under the same circumstances as yesterday. Consumers worldwide can continue to enjoy beef and dairy products from Nebraska.”



Nebraska Cattlemen Statement on USDA Announcement on Positive BSE Test Result

Nebraska Cattlemen issued the following statement regarding the U.S. Department of Agriculture’s (USDA) confirmation of an atypical case of bovine spongiform encephalopathy (BSE) in a dairy cow in central California.

“USDA confirmed this afternoon a positive test result as part of its targeted surveillance program to test cattle for BSE. USDA has confirmed this dairy animal was discovered at a rendering facility and was never presented for human consumption and poses zero risk to human health. The bottom line remains the same – all U.S. beef is safe.

“America’s cattle producers’ top priority is raising healthy cattle. As such, the U.S. beef community has collaborated with and worked with animal health experts and government to put in place multiple interlocking safeguards over the past two decades to prevent BSE from taking hold in the United States.”

“This animal didn’t enter the food supply at any time,” stated Dr. John Clifford, USDA Chief Veterinary Officer. “The safety of our food is addressed through our interlocking safeguards and through the removal of any type of material that can contain the BSE agent. We continually protect public health through the removal of these materials.”



NCBA Statement on USDA Announcement regarding Positive BSE Test Result

National Cattlemen’s Beef Association Cattle Health and Well-being Committee Chairman Tom Talbot issued the following statement regarding the U.S. Department of Agriculture’s (USDA) confirmation of an atypical case of bovine spongiform encephalopathy (BSE) in a dairy cow in central California.

“USDA confirmed this afternoon a positive test result as part of its targeted surveillance program to test cattle for BSE. USDA has confirmed this dairy animal was discovered at a rendering facility and was never presented for human consumption and poses zero risk to human health. The bottom line remains the same – all U.S. beef is safe.

“America’s cattle producers’ top priority is raising healthy cattle. As such, the U.S. beef community has collaborated with and worked with animal health experts and government to put in place multiple interlocking safeguards over the past two decades to prevent BSE from taking hold in the United States. This effort was recognized in May 2007 when the World Organization for Animal Health (OIE), the leading international body for animal health, formally classified the United States as a controlled risk country for BSE. The controlled risk classification recognizes that U.S. regulatory controls are effective and that U.S fresh beef and beef products from cattle of all ages are safe and can be safely traded due to our interlocking safeguards.

“USDA’s ongoing BSE surveillance program tests approximately 40,000 high-risk cattle annually, bringing the total of tested animals to more than 1 million since the program began. BSE is fast approaching eradication worldwide. According to USDA, there were only 29 cases of BSE worldwide in 2011, which is a 99 percent reduction since the peak in 1992 of more than 37,300 cases.

“We commend USDA and animal health experts for effectively identifying and eliminating the potential risks associated with BSE.”



National Milk Producers Federation Statement on USDA BSE Announcement
Jerry Kozak, President and CEO

America’s dairy farmers are encouraged that the on-going surveillance and inspections performed by federal authorities continue to ensure that bovine spongiform encephalopathy (BSE), or mad cow disease, does not enter the U.S. food supply.

The U.S. Department of Agriculture (USDA) announced Tuesday that a BSE-infected animal was detected in California, in a dairy cow that was presented at a rendering plant. Three previous cases of BSE have been discovered in the U.S. in the past nine years.

Although details about the age and origins of the animal are being withheld pending further investigation, NMPF offered the following points about the issue:
·         Milk and dairy products do not contain or transmit BSE, and animals do not transmit the disease through cattle-to-human contact. The infectious prions that transmit BSE are found in neurological tissues, such as brains and spinal cords.
·         The United States put regulations in place in 1997 to prohibit ruminant protein from being used in animal feed. This applies to all cattle, dairy and beef alike.
·         Non-ambulatory animals – those that cannot walk – are not allowed to be processed at facilities where meat animals are handled. This regulation helps ensure that animals that are unwell are not entered into the food supply.



Johanns Statement on BSE
Sen. Mike Johanns (R-Neb.) today released the following statement regarding the news that an adult dairy cow in California tested positive for bovine spongiform encephalopathy (BSE):
"The most important facets of this detection are that the cow in question was identified through our rigorous system of interlocking safeguards; it did not enter the food chain; and that American beef continues to be among the safest in the world. Because the U.S. remains fully compliant with international animal health standards, there should be no impact on trade. Americans and the entire world should continue to be confident in the safety of American beef."



Johanns Presses for Answers on MF Global

U.S. Sen. Mike Johanns (R-Neb.) today spoke at the Senate Banking Committee’s hearing on MF Global’s collapse. Johanns questioned witnesses about how the firms’ trust account was maintained, before its fall.  Below is an excerpt from Johanns’ remarks:

“In the final weeks of MF Global, the sky fell in. Now, my understanding, to me it seems so basic, having been a lawyer, where you maintain a trust account. Someone gives you money you put it in the trust account, you are not authorized to say, ‘Gosh, it’s been kind of a rough month this month, clients aren’t paying their bills, or whatever, so I’ll just borrow money out of the trust account.’ That is in effect what they did here.”

Click here to see a video of his remarks...  http://johanns.senate.gov/public/?p=Transcripts&ContentRecord_id=c462acad-96cc-4a69-aedc-25bf7b6c2c60&ContentType_id=b6318fce-8687-41ec-8756-d043d52ef7d2. 



West Point Site of Climate Change Workshop

The Center for Rural Affairs along with the High Plains Regional Climate Center and the University of Nebraska Public Policy Center will host a free climate education workshop in West Point, Nebraska, on Tuesday, May 1, 2012 at the Horizon Inn and Suites from 7 p.m. until 9 p.m. The event is free and open to the public.

Dr. Tapan Pathak, Extension Educator for climate variability and climate change in the School of Natural Resources at the University of Nebraska - Lincoln will visit with attendees to discuss tools to aid in farming decisions, potential effects of climate change in the region, and climate variation across the state. His focus is on applying climate variability and climate change science to communicate risks, adaptation, and mitigation strategies to communities across Nebraska.

“Climate is always changing. In the short term, such as an hour or a day, we see changes in weather. Similarly, over a longer period such as 50 or 100 years, we see changes in variables such as temperature and precipitation,” commented Virginia Wolking, Rural Organizer with the Center for Rural Affairs.

According to Wolking, this presentation will focus on climate change, the causes and indicators of climate change, and also tools that can be used to aid in gardening as well as farming decisions. There will also be an opportunity for discussion about how climate variability has affected gardening and farming in the past and about the potential effects of climate change in the region.

Wolking will be joined by colleague Johnathan Hladik, Center for Rural Affairs Energy Policy Advocate as they discuss work the Center for Rural Affairs is conducting on climate and energy.

When and Where:
Tuesday, May 1st, 2012
7pm-9pm
Horizon Inn and Suites
301 Plaza Drive (near the junction of Hwy 275 and Hwy 9)
West Point, Nebraska

“Attendees will learn about a variety of topics related to climate and weather including precipitation, planting dates and the impacts of changing climate patterns," continued Wolking. "I attended a similar workshop in Lincoln, and I learned a lot about climate and weather.  We hope to see you there.” 



Sorghum Groups Announce Industry Awards

The Nebraska Grain Sorghum Producers Association’s annual appreciation banquet was the setting for presentation of the annual service awards given by the NeGSPA and the Nebraska Grain Sorghum Board.  The awards are presented annually to recognize an individual or organization for contributions to the development, promotion and advancement of the grain sorghum industry.

NeGSPA – Industry Service Award
Allen “Al” Dutcher, State Climatologist, UNL School of Natural Resources, was honored by the Nebraska Grain Sorghum Producers Association for his support and contributions to the Association, especially in the area of education and communication.  He has worked with NeGSPA for the past nine years to bring the weather outlook to the program for the Sorghum Profitability Seminars – an annual series of meetings that focus on marketing, production and management of sorghum.

“Al is widely known and respected for his expertise and message as the State Climatologist,” said Don Bloss, Pawnee City, NeGSPA President.  “We are pleased that he is willing to share his time and talent to be a part of our sorghum education program.”
 
Nebraska Grain Sorghum Board – Service to Sorghum Award
The Service Award presented by the Nebraska Grain Sorghum Board was given to Jennifer Rees, Extension Educator, UNL Cooperative Extension Service, Clay County.

Jenny is cited for her support, spirit and enthusiasm in working with the Grain Sorghum Board to educate and expand awareness about grain sorghum to both producers and consumers.  Over the past few years, the Grain Sorghum Board has supported Jenny’s research and extension efforts on two projects – both of which have produced valuable outcomes for the industry.

On the consumer front, Jenny coordinated the efforts of a team of UNL Extension nutritionists and ag educators, the Celiac Sprue Association, and dieticians to develop a series of bulletins containing reliable information regarding the use of sorghum in gluten-free diets and to increase awareness of sorghum as a value-added product.  “These publications have been posted on UNL’s food website, shared through email listserves, and distributed at many, many state and national conferences, trade shows and agriculture fairs, reports Barbara Kliment, Executive Director of the Nebraska Grain Sorghum Board.  “They have, in fact, become an integral part of our overall educational effort to promote food applications for sorghum.  Testimonials from celiacs, dieticians and nutritionists are evidence of the importance to share the message about the nutritional value of sorghum and its virtues as a nutritious, wholesome and gluten-free grain.”

Jenny is equally passionate and dedicated to her work in the field.  For the past three years, she has been the principle investigator on a water usage study in the Lawrence, NE area to evaluate sorghum, corn and soybeans in dryland fields.  Watermark sensors and ET gauges were used to establish baseline numbers for crop water usage for these three crops.

“Jenny has shared the field data at various sorghum conferences and field days and through UNL Extension media outlets,” said John Dolnicek, Lawrence, member of the Grain Sorghum Board.  “It’s been my pleasure to work with Jenny in hosting this field study on my farm.  These three years of data should solidify findings for eventual journal publication.”



New FAPRI Analysis Indicates Effectiveness of Dairy Policy Changes Proposed for Farm Bill

A new analysis of the dairy policy changes being considered by the House and Senate Agriculture Committees finds that the reforms will have a minimal effect on milk production and dairy product exports, the National Milk Producers Federation (NMPF) said today.

At the same time, two other national farm groups, the American Farm Bureau Federation (AFBF) and the National Council of Farmer Cooperatives (NCFC), have endorsed the changes in dairy policy that NMPF is pushing for on Capitol Hill. The groups sent a letter today to the Senate in support of the dairy reforms.

The new analysis was prepared by Dr. Scott Brown of the University of Missouri and the Food and Agriculture Policy Research Institute (FAPRI), and was commissioned by the House Agriculture Committee, which is holding a hearing this Thursday on dairy policy. Brown’s report analyzes the Dairy Security Act that the Senate Agriculture committee is also including in the Farm Bill draft it will consider this week. The program features a voluntary margin insurance program to protect against low milk prices or high feed costs, with a basic level of coverage available to all producers for free, and a supplemental, expanded level of coverage available for farmers to purchase. If farmers enroll in the Dairy Producer Margin Protection Program,  they will also be subject to the Dairy Market Stabilization Program, which asks them to reduce their milk output when margins are very low.

The key take-away from the FAPRI report is that the dairy reforms reduce margin volatility at the farm level, without negatively affecting the supply of milk to either domestic or international markets, according to NMPF.

“This new assessment should calm any concerns on Capitol Hill that the U.S. dairy industry will be in any way diminished or hobbled by the changes we want to make,” said Jerry Kozak, President and CEO of NMPF. “In fact, by reducing the chances that farmers will lose their equity, these policy reforms will strengthen our industry and make it more competitive in the long term.”

Brown’s study shows that, on average over the period of 2012-2022, there are only small effects on milk availability if the provisions of the Dairy Security Act are in place. Even with 70 percent of the milk supply participating in the program, the analysis shows that supplies average just one tenth of one percent (0.1%) less than the without the program [p. 9].

The impact of the Dairy Market Stabilization program on exports is minimal as well. For example, exports of nonfat dry milk would average just four million pounds lower, or 0.3 percent.

The program’s impact on consumer prices also would be minimal. The Brown analysis shows that during the eleven-year period studied, the national farm-level All-Milk price would average just five cents per hundredweight higher, or less than one-half cent a gallon [p. 10]. Such a small change is not likely to have any impact on retail prices for milk, cheese or other consumer products.

“This report corroborates the research that our own economists have conducted on this program, and demonstrates that margin volatility for farmers is reduced without milk prices being unduly raised. There are only small effects on the milk supply, so dairy product trade impacts are very small. Importantly, neither the margin protection nor the market stabilization programs will operate often, or for long periods of time. They are triggered in when needed, and they trigger back out when they are not,” Kozak said.



ASA Supports Senate Ag Farm Bill Chair’s and Ranking Member’s Mark, Urges Timely Committee Action

In response to the mark of the 2012 Farm Bill released Friday by the Chair and Ranking Member of the Senate Committee on Agriculture, Nutrition and Forestry, the American Soybean Association (ASA) voices its overall support of the draft language, and calls on the Committee to approve the mark quickly in the interest of passing the Farm Bill as soon as possible:

"ASA overall strongly supports the mark of the Chair and Ranking Member of the Senate Agriculture Committee for the 2012 Farm Bill," said ASA President Steve Wellman, a soybean farmer from Syracuse, Neb. "ASA supports the decision to achieve $23 billion in savings over ten years under the bill. Farmers and ranchers are willing to do their fair share to address our nation’s fiscal problems, but America’s investments in food, agriculture, and conservation should not be cut disproportionately."

ASA’s position on various provisions of the mark are indicated below, including several for which ASA would support changes and refinements as the Senate begins mark-up of the bill this week. ASA supports timely approval of the Committee’s bill in order to expedite the process of enacting new farm legislation as soon as possible in 2012.

ASA’s title-by-title positions on the Chair’s Mark for the 2012 Farm Bill are:

Title I – Commodity Programs
Repeal of Existing Programs: ASA recognizes and supports the need to replace existing farm support programs, including Direct Payments, Counter-Cyclical Payments, and ACRE, in order to achieve the Committee’s deficit reduction objective.

Agriculture Risk Coverage (ARC) Program: We support using remaining baseline funding to establish the Agriculture Risk Coverage (ARC) Program, which includes provisions similar to the "Risk Management for America’s Farmers" proposal developed by ASA last fall. ARC would partially offset revenue losses at either the farm or the county level on a commodity-specific basis using average plantings and prevented planted acres in 2009-2012 to establish a payment acre cap. Payment acres under the farm and county options would be set at 60 percent and 75 percent of this acreage, respectively, with payment on prevented planted acres at 45 percent. ARC would apply to losses that exceed 11 percent of a revenue benchmark, not to exceed 10 percent of total revenue loss.

ASA believes the additional risk management provided under ARC would complement revenue protection provided through the crop insurance program, without influencing planting decisions and distorting production. The combination of these programs would enable and encourage producers to continue to seek to maximize total returns from the market rather than from the prospect of receiving government payments. Allowing farmers full planting flexibility to follow market signals has been the most important farm policy for the past 16 years.

Marketing Assistance Loan Program: ASA supports maintaining marketing assistance loans at current levels, which will allow this program to continue to be available as a financing and marketing tool for producers.

Payment Limits: ASA supports re-instituting current payment limitations.

Title II – Conservation
ASA supports the simplification, flexibility, and consolidation of agricultural conservation programs. We support the priority given to working lands in the Chair’s mark and the gradual reduction of Conservation Reserve Program acres to 25 million from the current level of 30 million acres by 2017.

Program Consolidation: ASA supports the consolidation of 23 existing conservation programs into 13.

Conservation Compliance: ASA supports requiring conservation compliance as a condition for eligibility to receive benefits under Title I commodity programs.

Title III – Trade
MAP and FMD: ASA strongly supports continuation of full annual funding for the Market Access Program (MAP) at $200 million and the Foreign Market Development (FMD) Program at $34.5 million, as included in the mark.

Food for Peace Program: ASA supports full funding for the Food for Peace Program. However, the mark diverts millions annually from funding the purchase and delivery of U.S. commodities under the Program.

The mark proposes to convert the developmental "safe box" from a $450 million fixed amount to only 15-30 percent of Program funding. ASA supports providing that the amount be the greater of $425 million or 30 percent of the total amount made available to carry out emergency and non-emergency food assistance programs under Title II.

The mark requires that at least 70 percent of the costs of commodity procurement and shipment be recovered when the commodity is sold. ASA supports providing that the sale of agricultural commodities be made at fair market value in the country in which they are sold.

McGovern-Dole Program: ASA supports continued full funding of the McGovern-Dole International Food for Education and Child Nutrition Program.

Title VII – Research
ASA supports reauthorization of funding for university research and extension.

ASA supports establishment of the Foundation for Food and Agriculture Research, a nonprofit that will advance the research mission of the Department by supporting agricultural research activities focused on addressing key problems of national and international significance.

Title IX – Energy
The Senate mark authorizes but does not include mandatory funding for energy programs. ASA supports efforts to provide mandatory funding for the following programs.

Biobased Market Program: ASA supports the provision to expand and improve the Biobased Market Program through a targeted biobased-only procurement requirement, designation of intermediate ingredients and assembled products, auditing, outreach and promotion activities, and an economic impact study. Funding in the mark is authorized at $2 million per year for five years. The program received $9 million over five years in the 2008 Farm Bill. ASA supports providing mandatory funding of $3 million per year or total mandatory program funding of $15 million over five years to allow USDA to more effectively carry out the Biobased Market Program.

Biodiesel Education Program: ASA strongly supports continuation of the Biodiesel Education Program, which was authorized in the Senate mark at $1 million per year for five years. ASA supports an increase to $2 million per year in mandatory funding.

Title XI – Crop Insurance
ASA strongly supports the efforts made to protect and strengthen crop insurance as a risk management tool. ASA supports new provisions, included in the mark, that:
-    Authorize supplemental coverage for farmers to buy a county-level revenue policy in addition to individual coverage.
-    Authorize separate enterprise units for irrigated and non-irrigated crops.
-    Increase the transitional yield plug from 60 to 70 percent.
-    Authorize FCIC to allow for corrections after the sales closing date to ensure that information is consistent with the information reported to the Farm Service Agency (FSA).
-    Require USDA to implement an acreage report streamlining initiative project.



Agricultural Export Coalition Hopeful Senate Ag Committee Will Support Continued Export Program Funding

In a letter dated April 19, 2012, 127 members of the Coalition to Promote U.S. Agricultural Exports urged Senate Agriculture Committee Chairwoman Debbie Stabenow (D-MI) and Ranking Minority Member Pat Roberts (R-KS) to maintain funding for U.S. Department of Agriculture (USDA) export programs when the Committee on Agriculture, Nutrition, and Forestry considers reauthorization of a new Farm Bill. The coalition members called specifically for funding the Market Access Program (MAP) at no less than $200 million annually and the Foreign Market Development (FMD) program at no less than $34.5 million, the same funding levels in the current Farm Bill.

“We were very pleased to see full funding for MAP and FMD in the Farm Bill draft Chairwoman Stabenow released late last Friday,” said coalition chairman Mike Wootton, a senior vice president with Sunkist Growers cooperative. “We urged the entire committee to support that position.”

That is important, Wootton said, because foreign governments are seeking to emulate the success of MAP and FMD with their own competing programs.

MAP and FMD are distinct programs administered by USDA’s Foreign Agricultural Service that address different aspects of export market development. The programs bring together non-profit U.S. agricultural trade associations, farmer cooperatives, non-profit state-regional trade groups, small businesses and USDA to develop results-oriented, strategic plans and share the costs of implementing them to support the U.S. agricultural industry’s international marketing.

“More than 1.1 million Americans have jobs that depend on agricultural exports,” the organizations said. “We are strongly supportive of the Administration’s commendable goal through the National Export initiative of doubling U.S. exports over five years. For U.S. agriculture, MAP and FMD are key tools in making this a successful effort.”

MAP and FMD are highly successful, cost-effective public-private partnerships with a far-reaching economic impact, the coalition members said. The farmers, cooperatives and small businesses must first put up their own money to be eligible for MAP and FMD funds. With MAP, for example, estimated industry investment is now more than 60 percent of total annual export development spending, up from about 45 percent in 1996 and less than 30 percent in 1991.

The letter cited a recent study by IHS Global Insight finding that MAP and FMD are highly effective programs with a substantial return on investment. The USDA-commissioned study showed that increased MAP and FMD spending in market development since 2002 substantially increased U.S. export market share and increased U.S. agricultural export value by $6.1 billion per year. The study also found that export gains between 2002 and 2009 substantially increased U.S farm cash receipts and net income that, in turn, reduced U.S. domestic farm support payments and the net cost of farm programs by $54 million per year. Overall, the study showed, for every additional $1 expended by government and industry on market development during this period, U.S. food and agricultural exports increased by $35.



NCGA Welcomes Japanese Delegation for 2013 Corn Market Discussions

Yesterday, the National Corn Growers Association welcomed a high level team of Japanese officials to discuss planting intentions, weather forecasts, farm programs and potential demand-drivers including ethanol.  The visit also served as a chance to reaffirm the importance farmers place on their trade relationship with Japan, which continues its historic role as the largest export market for U.S. corn.

"It is essential that we recognize that our trade relationship with Japan is built not only upon simply filling a need but also upon sharing a common goal, fostering trust and working together to build mutually beneficial opportunities," said NCGA Vice President of Production and Utilization Paul Bertels. "We realize, as do our international trade partners, that there are a variety of markets offering grains for import.  What helps set us apart as a long-term partner are meetings such as this.  Working with our valued colleagues, providing clear and accurate information and collaborating on current issues of importance reinforces the bonds essential to healthy trade."

While the discussions covered many areas, each subject arose in relation to Japanese interest in the availability of U.S. corn in 2013.  The delegation, and Japanese importers and government officials more broadly, are focusing on availability in order to more accurately forecast possible price scenarios for corn and the long-term competiveness of Japanese feeders and corn millers.

The delegation included Japan External Trade Organization Director of Agriculture Daisuke Kojo, Agriculture and Livestock Industries Corp International Research Counselor Yasufumi Ueda and Consul Yoshinobu Mimura of the Consulate General of Japan at Chicago.



Fertilizers Prices Continue to Move Higher

Prices for urea and UAN solutions continue to rise, according to retail fertilizer prices tracked by DTN for the third week of April 2012.  Six of the eight major fertilizers were higher compared to a month earlier. Urea led the way once again, now posting higher prices for seven weeks in a row. The nitrogen fertilizer was 18% higher compared to the third week of March and had an average price of $738/ton.  DTN's average price for urea has climbed $185/ton during the last 10 weeks. Two months ago, during the week of Feb. 20-24, the average price was just $553/ton.

Also appreciably higher again were the UAN solutions. UAN28 was 12% more expensive and UAN32 was 15% higher compared to month ago. UAN28 had an average price of $425/ton while UAN32 was at $483/ton.  In addition, MAP, potash and anhydrous were higher as well. All three fertilizers were up just slightly with MAP having an average price of $697/ton while potash was at $662/ton and anhydrous was at $766/ton.

The remaining two fertilizers were lower compared to a month ago but really not by any significant amount. DAP had an average price of $637/ton and 10-34-0 was at $787/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.80/lb.N, anhydrous $0.47/lb.N, UAN28 $0.76/lb.N and UAN32 $0.75/lb.N.

Four of the eight major fertilizers are still showing double-digit increases in price compared to one year earlier. Leading the way higher is urea. The nitrogen fertilizer is 51% higher compared to last year while UAN32 jumped 15% higher, UAN28 is 14% more expensive and potash is 11% higher compared to the second week of April 2011.  Two fertilizers have seen just slight price increases compared to a year earlier. Anhydrous is now 3% more expensive and 10-34-0 is 1% higher compared to last year at this time.  The two remaining fertilizers, DAP and MAP, are now actually priced lower compared to one year ago. DAP is now 6% lower while MAP has decreased 1% in price.



USDA Announces 2012 County Loan Rates for Wheat, Feed Grains and Oilseeds

The Commodity Credit Corporation (CCC) today announced county loan rates for the 2012 crops of wheat, corn, grain sorghum, barley, oats, soybeans and other oilseeds (sunflower seed, flaxseed, canola, rapeseed, safflower, mustard seed, crambe and sesame seed). The rates are posted on the Farm Service Agency (FSA) website at http://www.fsa.usda.gov/pricesupport.  The 2008 Farm Bill authorizes the national loan rates for the 2012 crops of wheat, feed grains and oilseeds at these levels:
Wheat - $2.94 per bushel
Corn - $1.95 per bushel
Grain Sorghum - $1.95 per bushel
Barley - $1.95 per bushel
Oats - $1.39 per bushel
Soybeans - $5.00 per bushel
Other Oilseeds - $10.09 per hundredweight for each "other oilseed"



Higher Milk Output is Keeping Prices Lower

Last week's announcement by the USDA that milk production was up in the 23 major dairy states in March means prices will probably not be rising anytime soon. Dr. Bob Cropp, professor emeritus with the University of Wisconsin Cooperative Extension, stated in his monthly Dairy Situation and Outlook report that a boost in the number of cows being milked, along with above-normal increases in milk per-cow are to blame for this strong increase in milk production.

"Milk production is exceptionally high in all western states," Cropp pointed out, while adding that only Pennsylvania had lower production in the eastern region. "In the Upper Midwest, Wisconsin had 3,000 more cows and a 4.2-percent increase in milk production. This strong increase in milk production is straining the capacity of manufacturing plants in the West and Upper Midwest. As a result, some dairy cooperatives in the West have asked their producers to reduce milk production, and are paying a substantially lower price for a portion of the milk of those producers who don't."

Simply put, Cropp says more milk means an increase in dairy product production and the building of dairy stocks. He adds that sluggish fluid milk sales means more of the milk production needs to be used for manufactured dairy products.

Meanwhile, Cropp says dairy exports continue to be an important part in moving increased dairy product production overseas.

"Dairy exports were a record last year accounting for 13.3-percent of U.S. milk production on a total milk solids basis and added real strength to dairy product prices," he says. "USDA forecasts exports to be lower this year, with exports on a milk-fat basis down 11.6-percent due mainly to less butter exports, and down just 3.8-percent on a skim-solids basis due to continued favorable nonfat dry milk/skim milk powder exports."

Compared to last year, exports for the first two months showed nonfat dry milk/skim milk powder up five-percent, cheese up three-percent, and lactose up two-percent.

With more milk, more dairy product production and more stocks, dairy product prices have been depressed, he said. CME butter during April ranged from $1.425-$1.455/lb. and currently is at $1.4125/lb. CME 40-pound cheddar blocks ranged from $1.4875-$1.51/lb., and currently is at $1.51/lb.. Dry whey, which was near 70¢/lb. in the last quarter of 2011 is now in the range of 48¢-55.25/lb. And nonfat dry milk, which was above $1.60/lb. last summer is now in the $1.17-$1.30/lb. range.

"Lower dairy product prices results in lower milk prices. The March Class III price was $15.72/cwt., compared to $19.40/cwt. a year ago. The Class III price for April will also be near $15.70/cwt. The March Class IV price was $15.35/cwt. compared to $19.41/cwt. a year ago. The Class IV price for April will be lower, near $14.85/cwt."

Cropp says high feed costs and favorable cow slaughter prices could eventually result in a slow down in production; but that remains to be seen.

Current dairy futures show a very modest price recovery. Class III futures fall to a low of $14.75/cwt. for June, don't reach $16/cwt. until September, and remain in the low $16's for the remainder of the year.



Corn Association Staff Comes Together

Last week, staff from the National Corn Growers Association and state corn associations across the country met in St. Louis to share insights gained over the past year and coordinate efforts for the next.  With more than 100 attendees including state association executives, program directors and communicators, the conference also provided a forum to discuss pressing issues facing farmers including potential farm bill legislation and ethanol promotion.

"We all understand that, by working together, we magnify the effectiveness of our organizations and subsequently our ability to create positive change for farmers," said NCGA CEO Rick Tolman. "While each state organization has specific circumstances unique to its area, farmers across the country share many common issues.  Accordingly, it only logically follows that the state and national organizations serving them collaborate in such a fashion."

The week began as NCGA staff from both the Washington and St. Louis offices met to discuss ongoing projects and opportunities to increase communication.  Following the traditional meetings, the group toured the Cargill elevator and grain loading facility located directly across the Mississippi River in Illinois.  During the tour, staff had the opportunity to delve into the importance of inland waterways to corn farmers, explore possible production and usage shift which would influence the flow of grain, and see first-hand how corn is tested, accepted and loaded.

Then, state association staff joined with national to begin an in-depth look at some of the exciting activities and programs that have achieved success since they last met in April 2011.  Each state took a chance to share some of their accomplishments, knowledge gained from the process of implementing tactics and to provide a glimpse of projects on the horizon.  In turn, national staff deeply involved in various legislative and regulatory issues and those heading a broad array of communications and market support programs presented brief overviews of recent successes and forecasts of what is to come.

In addition to sharing experiences and ideas, attendees participated training seminars that focused on a variety of state-requested areas of interest including improving social media presence, discussions on major market changes, analysis of consumer attitudes and new technology workshops.  Using the chance to fine-tune skills, update knowledge of rapidly evolving issues and tools and further discuss broader situations with important implication, state and national staff alike worked diligently to improve skill sets and hold constructive conversations that will aide them in forming and implementing programs.



U.S. Soy: Naturally Sustainable

The United Soybean Board (USB) and soy checkoff have begun leading an effort to demonstrate the high sustainability performance of U.S. soy to customers who increasingly demand products grown using sustainable practices. USB continues to collaborate with the American Soybean Association, U.S. Soybean Export Council (USSEC) and several state soybean checkoff boards to compile specific examples that show how U.S. soy production is sustainable.

The organizations intend to use the information to ensure U.S. soybean farmers' freedom to operate and open market access for U.S. soy across the globe. It will encompass all U.S. soy and all U.S. soybean farmers.

"We're taking an overall view of what's already being done by U.S. soybean farmers to become more sustainable and informing our customers around the world about it," says USB International Marketing program chair Sharon Covert, a soybean farmer from Tiskilwa, Ill. "U.S. soybean farmers have always been sustainable; it's at the heart of what we do. We have a tremendous amount of research to show how sustainable we've become."

As more customers demand sustainably sourced products and ingredients, checkoff-funded research provides facts that show U.S. soy meets those demands. USB's life-cycle analysis of soy production and processing and measurements against key sustainability metrics show U.S. soybean farmers continuously improving their sustainability performance.

"This is a time-sensitive issue, giving us an opportunity to avoid trade interruptions with any of our U.S. soy customers who demand sustainable soy," says USSEC Chairman Roy Bardole, a soybean farmer from Rippey, Iowa. "In fact, this provides an opportunity to open markets in the European Union, where sales of U.S. soy could be seriously inhibited in the future because of sustainability issues. It will be a huge boost to our efforts there."



RABO AGRIFINANCE ADDS TO SOUTH DAKOTA TEAM

Rabo AgriFinance announces the appointment of Eric Roskens as a relationship manager in South Dakota. He will work from his home office in Emery, SD as well as the North Sioux City, SD field office.

Rabo AgriFinance is a provider of capital and financial solutions to U.S. agricultural producers and agri-businesses. Roskens will work with farmers and ranchers in the region to help them grow and succeed by providing agriculture real estate loans, operating lines of credit, crop insurance and more.

“Rabo AgriFinance has experienced tremendous growth in the Dakotas over the past decade. Adding Eric to the team enhances our ag lending services as we work toward becoming the premier ag lender throughout South Dakota and beyond,” says Mike Huber, senior relationship manager at the North Sioux City office. “Eric’s proven record of successfully partnering with growers and producers shows he will be a strong asset to Rabo AgriFinance, as well as our current and future clients.

Roskens brings more than 10 years of lending experience during his time with community banks in Nebraska, Minnesota and South Dakota. He earned his bachelor’s degree in agriculture from South Dakota State University.

“As a native South Dakotan, I am pleased to be continuing my work with farmers and ranchers in the area,” notes Roskens. “Rabo AgriFinance has the expertise and industry knowledge to back the lending needs and opportunities of our clients, and I’m looking forward to being part of that.”



Consumer-Driven Organic Market Surpasses $31 Billion

The U.S. organic industry grew by 9.5 percent overall in 2011 to reach $31.5 billion in sales. Of this, the organic food and beverage sector was valued at $29.22 billion, while the organic non-food sector reached $2.2 billion, according to findings from the Organic Trade Association's 2012 Organic Industry Survey. These and other organic-related statistics are being discussed this week in conjunction with the trade association's 2012 Policy Conference and Hill Visit Days here in Washington.

"The U.S. organic sector continues to show steady and healthy growth, growing overall by 9.5 percent during 2011, and, for the first time, surpassing the $30 billion mark," said Christine Bushway, OTA's executive director and CEO.

She added, "Consumers are increasingly engaged and discerning when they shop, making decisions based on their values and awareness about health and environmental concerns. For them, it matters whether foods are genetically engineered, or produced using practices that are good for their families. Price is still an issue, but with the wide availability of private label products and many venues for organic products, they have many choices for where to shop and a variety of products from which to choose."

Overall organic product sales growth of 9.5 percent continued to outpace total sales of comparable conventionally produced food and non-food items, which experienced 4.7 percent growth. The growth in organic sales is proof the consumer is willing to pay for value-added products.

Organic food sales experienced 9.4 percent growth in 2011. The easing of the recession, consumer price inflation due to input price increases, and consumers' increasing desire for convenience products were all factors that elevated growth for the year. The organic food sector grew by $2.5 billion during 2011, with the fruit and vegetable category contributing close to 50 percent of those new dollars. The fastest-growing sector was the meat, fish & poultry category, posting 13 percent growth over 2010 sales, but still remaining the smallest of the eight organic food categories.

Organic food sales now represent 4.2 percent of all U.S. food sales, up from 4 percent in 2010.

Meanwhile, organic non-food sales, which reached $2.2 billion in 2011, experienced strong 11 percent growth, while total comparable non-organic items grew only 5 percent.

Prospects for 2012 and 2013, as indicated through the 2012 survey results, indicate that organic food and non-food sales will continue to sustain growth levels of nine percent or higher.