Wednesday April 18 Ag News

FTC Complaint Filed Over Pork Council’s False and Misleading Animal Welfare Claims 
(from HSUS web site)

The Humane Society of the United States filed a legal complaint with the Federal Trade Commission, asserting that the National Pork Producers Council is engaging in deceptive advertising related to animal well-being in violation of the Federal Trade Commission Act.

The complaint alleges that the pork industry’s public descriptions of its “We Care Initiative” and deceptively-titled “Pork Quality Assurance Plus” program are riddled with numerous false claims regarding the welfare of pigs, including the trade group’s patently false claim that its PQA Plus program helps to “ensure that all animals in the pork industry continue to receive humane care and handling.”

The complaint explains how the abusive practices allowed by the We Care and PQA Plus programs are fundamentally inconsistent with the Pork Council’s public claims. The HSUS and other organizations have regularly documented practices in the pork industry that most consumers do not consider humane such as the extreme confinement of breeding sows in two-foot-wide metal cages, and painful procedures such as tail “docking,” which is typically performed without any form of pain relief.

“The pork industry spends millions misleading the public about its animal welfare record, while allowing pigs to be crammed into tiny gestation crates where they can’t even turn around for months on end,” says Jonathan Lovvorn, senior vice president for animal protection litigation at The HSUS. “Rather than investing in real animal welfare reforms, the Pork Council is betting the farm on a deceptive PR campaign designed to mislead consumers with false assurances.”

The HSUS’s complaint seeks prompt FTC action to stop the NPPC from deceiving consumers through its misleading animal care representations.



Statement On HSUS FTC Complaint

The National Pork Producers Council has learned that the Humane Society of the United States (HSUS) has filed a complaint with the Federal Trade Commission, claiming that NPPC is “engaging in deceptive advertising related to animal well-being.”

NPPC will analyze the complaint once it actually is made public and will vigorously defend against the absolutely false claims made by HSUS as set forth in a press release it issued today.

The FTC complaint is the latest attack by animal-rights activists on America’s hog farmers, an assault that seems obviously in response to the U.S. pork industry’s strident opposition to congressional legislation that would allow federal bureaucrats to tell farmers how to raise and care for their animals.

NPPC looks forward to the FTC quickly dismissing HSUS’s complaint.

America’s hog farmers are committed to providing humane and compassionate care for their pigs at every stage of life. U.S. hog farmers are the ones who ensure the well-being of their animals and who are dedicated to producing safe, affordable and healthful foods for consumers – using standards and practices that have been designed with input from veterinarians and other animal-care experts – not groups that spend well-over half of the donations they receive on soliciting more contributions and, apparently, the other portion on suing American farmers.



Lawmakers, Livestock Groups Raise Concerns with Animal Production Mandates
Lawmakers and representatives from animal agriculture joined forces to educate nearly 100 people about the deliberate emphasis farmers and ranchers place on caring for the health and well-being of their animals. During a briefing hosted by Congressmen Adrian Smith (R-Neb.) and Joe Courtney (D-Conn.), congressional staff learned about multiple voluntary, producer-led animal care programs and about the concerns farmers and ranchers have with legislation introduced in the House that would mandate strict on-farm production practices.

Congressman Smith said science must be the driving force behind public policy decisions. He said farmers and ranchers are dedicated to caring for the health and well-being of their animals.

“Ensuring public policy is driven by sound science is critical to the continued success of agriculture, and in turn, the long term safety and security of our nation’s food supply. The landscape of American agriculture continues to evolve, but the concern and care farmers and ranchers show their livestock remains unchanged,” Rep. Smith said. “Improved housing, updated handling practices and modernized health and nutrition products are the result of generations of investment and research into raising high quality animals. Every day, our producers demonstrate their dedication to providing the highest quality, safest and most affordable products in the world.”

National Cattlemen’s Beef Association (NCBA) President J.D. Alexander joined Amon Baer, an egg farmer from Minnesota; Betsy Flores, director of regulatory affairs for the National Milk Producers Federation; and Bill Luckey, a hog producer from Nebraska on a panel to explain how they care for their livestock and poultry. Each speaker raised serious concern with H.R. 3798, legislation that would codify an agreement between the Humane Society of the United States (HSUS) and the United Egg Producers (UEP) to seek federally mandated production practices for the egg industry. Alexander, who is a Nebraska beef producer, said a one-size-fits all approach to animal agriculture won’t work.

“No two farms or ranches are the same. What works for my neighbor may not work for me because all farmers and ranchers have to adapt to meet the needs of their animals, to comply with regulations and, ultimately, to satisfy consumer demand,” Alexander said. “My biggest concern with H.R. 3798 is that outside groups with no knowledge of the industry will be dictating my livelihood and potentially compromising the welfare of my livestock. This legislation creates a slippery slope. Today, it’s egg farmers but tomorrow it could be any other segment of animal agriculture and we’re not going to let that happen.”

Alexander said the groups are not alone in their opposition to mandated, prescriptive production practices. He said the World Organization of Animal Health (OIE) has acknowledged mandated animal production practices, such as those proposed H.R. 3798, are not in the best interest of promoting true animal welfare because they cannot easily be adapted or updated for different farming models. A far better approach, according to Alexander, is voluntary, producer-led programs like the beef industry’s Beef Quality Assurance (BQA) program.

“BQA works and has been successful because it was created by beef producers working with veterinarians and other animal health and well-being experts to develop guidelines based on science. Unlike strict legislative mandates that would require an act of Congress to update, BQA standards are updated regularly to reflect the latest science,” Alexander said. “No one cares more about the health and well-being of animals than the men and women who work each day raising them. Together, we will work to stop this ill-conceived attempt to take animal care decisions out of the hands of farmers and ranchers and veterinarians.”

The briefing was hosted a coalition of agricultural organizations working to stop H.R. 3798. The coalition includes NCBA; the Egg Farmers of America; the National Pork Producers Council; the National Milk Producers Federation; the American Sheep Industry; and the American Farm Bureau Federation.



National Ethanol Forum Set for Omaha

The 7th annual Ethanol Emerging Issues Forum will commence in Omaha on April 19 at the Magnolia Hotel. The event concludes on April 20.  Nationally recognized speakers, including several from Nebraska, will discuss ethanol marketing trends, technology innovations, energy policy and the impact of ethanol production and use on agriculture, the environment and energy security.  Speakers will also cover prospects for next generation biofuel plants and the economic opportunities that biofuels offer to Midwest states. The impressive list of guest speakers and topics lined up for the two day Forum can be viewed on the Nebraska Ethanol Board website...  www.ne-ethanol.org.  Also, listen for reports from the forum on the Rural Radio Network and on 840kHz - KTIC. 



Scholarships Offered to Students from Dairy Farm Families
May 15 Deadline Approaching

Students from dairy farm families in Nebraska who contribute to Midwest Dairy Association through the dairy checkoff are eligible to apply for scholarships offered by the organization. The Nebraska Division of Midwest Dairy Association will award a total of $5,000, including one $1,500 award and one $1,000 award for students studying in the dairy field, and five $500 awards for students from dairy farm families with any college major or degree.

A producer, producer’s spouse, children or grandchildren are eligible for the awards. The producer must have an active dairy operation as of January 1, 2012, and must reside in the Nebraska Division territory. Each applicant must be considered a full-time student in the fall of 2012 in a post-secondary program of any length at an accredited college or university. Awards are limited to one per family per year, but any former applicant, or former $500 or $1,000 winner can reapply for subsequent years. A $1,500 winner is not eligible to reapply.

Information and applications, which include an essay, are available at midwestdairycheckoff.com, or by calling Rod Johnson at 402-853-2028 or emailing rjohnson@midwestdairy.com. The application deadline is May 15. Winners will be announced June 13.



Iowa Farm Bureau Brings Nationally-Recognized Leaders to Iowa July 23-24

As Iowa farmers head to the fields to plant what could be one of the largest corn crops on record, the state's largest grassroots farm organization is bringing a line-up of heavy hitters to Iowa, to make sure today's boom, doesn't turn into tomorrow's 'bust.' The summit will take place July 23-24 at the Iowa State Center Scheman Building on the ISU campus.

"The Farm Crisis of the 80's taught farmers that no industry is invincible to a downturn, and with Iowa's thriving farm sector insulating much of our state from the worst hits of the recession, we have to look towards new expertise, new risk management tools, to make sure farming doesn't go the way of the auto industry," says Iowa Farm Bureau Federation (IFBF) President Craig Hill.

"There are commonalities and differences in place today that we also saw prior to the 1980's Farm Crisis; then and now, we've seen land prices and commodity prices double or triple in a relatively short period of time," says IFBF Director of Research and Commodity Services David Miller. "Although most of today's farmers have better cash flow and less debt because of low interest rates, there are other risks which threaten Iowa's agricultural prosperity, which center around unprecedented federal debt and the very real possibilities of farm program cuts, which affect the sustainability of many types of farming. Today, our market strength is more tightly connected to global markets, global weather disasters, global trade and those are the things that bring new vulnerabilities to the business of farming," says Miller.

National experts ranging from economist Danny Klinefelter of Texas A&M University and Jeff Plagge, president-elect of the American Bankers Association, to Iowa State University weather expert Elwynn Taylor, a panel of D.C. experts from the Senate and House Ag Committees and Daniel Mitchell of the D.C. 'think tank,' the CATO Institute, are among the nationally-recognized monetary, policy, trade and economic experts tapped for the July IFBF economic summit.

The price of the two-day summit is $50 for Iowa Farm Bureau members and $150 for non-members. Information about the summit, lodging, on-line registration forms and a complete listing of the panelists and schedule can be found at www.iowafarmbureau.com. Registration deadline for the IFBF economic summit is July 17.



Iowa Cattlemen Announce Environmental Award Winner from Clay County

A farm family that raises Angus seedstock and puts most of their farm acres into commercial hay production is the Iowa Cattlemen’s Association’s state winner of the Environmental Stewardship Award Program (ESAP). Greg and Lola Wood and their son Chris operate their farm operation, called BitterSweet Acres, near Greenville in Clay County.

As the Iowa ESAP winners, the Wood family has been nominated for recognition at the regional level, which includes four other states. ESAP was initiated by the National Cattlemen’s Beef Association, and each year, recognizes seven regional winners and a final national winner. Since its inception in 1991, Iowa cattle producers have won 14 regional awards and three national ones. The award is also supported by the National Cattlemen’s Foundation, Dow AgroSciences, USDA’s Natural Resources Conservation Service, and the U.S. Fish and Wildlife Service.

One practice that makes BitterSweet Acres stand out in northwest Iowa is that they have maintained forage production on more than 400 acres in the face of increasing pressure to convert to row crops. U.S. Census of Agriculture data for Clay County show that there has been a 60% drop in pasture acres between 1997 and 2007. (That 60% is equal to 54,383 acres.)  It’s likely the 2012 Census will show a continued precipitous drop. That’s why farmers who continue to put an emphasis on maintaining pasture and forage production, as BitterSweet Acres has done, increase their environmental value to the state’s natural resources every year.

Dean Gronemeyer, NRCS district conservationist for Clay and Palo Alto Counties, said “Land is under more pressure today to produce food and fiber, and I often see this trend is at the expense of the soil and water resources.” Gronemeyer noted that farmers like the Greg Wood family have shown that farming “can be done in a manner that protects the soil, water and plant resources.”

The forage operation on the farm is primarily a mix of alfalfa/orchard grass. About 35-40 acres are rotated into corn each year, using minimum tillage. The corn provides stalk bales for bedding, and acres for spreading manure when necessary.

The hay is marketed to horse owners in small bales that are packaged in 21-bale bundles, 3x3 square bales, as well as round bales. These options let the Wood family put up hay in a very efficient manner with just two people. Their marketing efforts of the forage has provided a better net return than a corn/soybean rotation.

The commercial hay operation has also changed the soil structure, which generally has poor drainage. The management of the alfalfa/grass hay has increased night crawler populations, which has mellowed the soil and increased its ability to absorb rainfall, rather than seeing the rainfall turn into runoff.

On the cattle side of the farm, the Woods run approximately 75 females that they calve out. The cattle are kept on five rotational pastures located on three farms located within five miles of each other. Each pasture is approximately 25-30 acres in size.

“The environmental goal of our farm is to achieve more production from the grazing operation through better weed control and timely grazing,” Greg said. “This is done by finding a balance in all that we do on the farm operation, such as our philosophy to graze 50% and leave 50%.” Wood said the goal is to move cattle into a pasture when the grass is about a foot tall, and then move them off when it is grazed down to about six inches..

The rate of pasture re-growth is dependent on weather and moisture, so that goal doesn’t always work perfectly. However, “the rest period between grazings does give the pasture a chance to recuperate and maintains ground cover for both wildlife and soil protection,” Greg said.

The family first implemented rotational grazing with improved pasture at the farm in 1999. Through recordkeeping, they demonstrated that calf weights can increase each year without using creep feed. In all, weaning weights have increased by 10-15% since 1999.

Weed control of musk thistle in the pastures also improved. The Woods implemented a two-time approach of chemical control as well as reducing the stocking rate to encourage a healthier stand of grass. A cool season mix of grasses is used on the improved pasture because it is hardy and grows well at the latitude of the farm operation. Fertilizer and manure application on the hills add to the organic matter and allow the grasses to compete more vigorously with the thistles and other weeds.

The biggest benefit has been the increased carrying capacity of the pastures. The Woods can stock 25% more cattle on the same acres while showing improvement of the grass quality, improved condition scoring on the cows, improved pregnancy rate, and the length of the grazing season.

In order to reduce their use/cost of the rural water system for the cattle, the Woods put in a continual flow pump at their home location that makes use of ground water. They installed a solar watering system with EQIP (Environmental Quality Incentives Program) dollars. The solar powered system has run every day, providing water to the cattle with no freeze-over or loss of water availability. This has saved $1500/year in rural water costs, and it allows them to keep cattle away from the creeks that run through the pastures so erosion can be controlled during the spring and other high water events.



Casper Testifies Before Senate Subcommittee on Importance of Asia-Pacific Region to U.S. Soybean Industry

Paul Casper, a soybean farmer from Lake Preston, S.D., and president of the South Dakota Soybean Association (SDSA), went before the Senate Finance Committee’s Subcommittee on International Trade, Customs, and Global Competitiveness Wednesday to highlight the importance of a strong and expanding relationship with trading partners in the Asia-Pacific region, and advocate for the aggressive pursuit of market-opening initiatives within the area. Representing SDSA, and the American Soybean Association (ASA), Casper cited the staggering growth and potential of the Asia-Pacific region, which represents close to 60 percent of world GDP, nearly 50 percent of world trade, and is home to more than 2.7 billion people, as a major factor in expanded export opportunities for U.S. soybean producers.

“The rapidly growing markets in the Asia Pacific region, led by China, are key drivers of U.S. soybean demand. In fact, six of the top ten foreign markets for U.S. soybeans are in the Asia Pacific region. We strongly encourage the U.S. Government to aggressively pursue market-opening initiatives throughout the Asia-Pacific region, and we strongly support the inclusion of Japan in the Trans Pacific Partnership negotiations,” stated Casper in his testimony.

Casper hailed the recently-implemented free trade agreement between the U.S. and South Korea as evidence of how expanding trade with Asia-Pacific partners benefits American producers. “Nearly two-thirds of U.S. agricultural exports to Korea are now duty-free, including U.S. soybeans for crushing and U.S. soybean meal,” he stated. “Implementation of the agreement will also trigger the gradual elimination of tariffs on refined soybean oil over five years, and the elimination of tariffs on crude soybean oil over 10 years.”

The potential inclusion of Japan in the Trans-Pacific Partnership (TPP) free trade agreement was also a critical topic in Wednesday’s testimony, as Casper reiterated the industry’s support for Japan’s entry into TPP, and encouraged the subcommittee to recognize the potential impact of the inclusion. “Soybean farmers strongly support Japan joining the negotiations,” Casper stated, pointing to increased export opportunities for U.S. dairy, pork, beef and poultry products, which require soybean meal as feed.

Casper also called on the subcommittee to echo the industry’s support for a pilot program to speed the process of approving new biotechnology traits in China. “China is the only major importing country that requires registration or deregulation of a biotech trait to be completed in an exporting country prior to even applying for import approval,” he stated. “This requirement delays commercialization of new traits in the U.S. for as much as two years after U.S. regulatory approvals are obtained.”

Finally, Casper praised the progress made possible in the Asia-Pacific region by the Foreign Market Development (FMD Cooperator) Program and the Market Access Program (MAP), authorized in the 2008 Farm Bill. “By any measure, the FMD Cooperator and MAP Programs have been tremendously successful and extremely cost-effective in helping expand U.S. exports of soybeans and other agricultural commodities,” he stated. Casper also noted soybean farmers themselves are making substantial investments in international market development through the soybean checkoff; investments that are implemented by the U.S. Soybean Export Council (USSEC). These farmer checkoff investments more than match any investments made under the FMD and MAP programs.

ASA represents all U.S. soybean farmers on domestic and international issues of importance to the soybean industry. ASA’s advocacy efforts are made possible through voluntary membership by more than 21,000 farmers in 31 states where soybeans are grown. Soybean industry efforts to expand international markets for U.S. soy are carried out by USSEC through ASA’s investment of cost-share funding provided by the Foreign Agricultural Service, support from cooperating industries, and by producer checkoff dollars invested by the United Soybean Board and various state soybean councils.



STC’s Steenhoek Testifies on Waterways Infrastructure & Importance to Soybean Industry

As part of a hearing examining the reliability of America’s aging waterways infrastructure and how it impacts economic competitiveness, Mike Steenhoek, executive director of the Soy Transportation Coalition (STC), testified on Capitol Hill this morning before the House Transportation Subcommittee on Water Resources and the Environment. Representing the STC, which comprises eleven state soybean boards, the American Soybean Association (ASA) and the United Soybean Board (USB), Steenhoek’s testimony focused on the critical need for investment in the nation’s inland waterways system. Steenhoek cited the prominence of soybeans as an export commodity, the erosion of U.S. competitive advantage in transportation, the need to invest in waterways infrastructure, and just as importantly, the need to improve the way we utilize the funding.  

“One of the primary reasons U.S. agriculture is so viable and competitive is our expansive and efficient transportation network,” stated Steenhoek. “However, the Soy Transportation Coalition and many others are gravely concerned with the condition of our inland waterway system.”  

Steenhoek pointed to a recent study from USB that projects the impact of potential lock and dam failures on the competitiveness of the soybean industry. “Unfortunately,” he said, “there is an established and growing consensus that such failures are not a matter of if they occur, they are a matter of when. … Our dilapidated lock and dam inventory is increasingly plagued by unscheduled maintenance and mechanical breakdowns. This discourages investment by those who utilize the inland waterway system toward modernization of river terminals, towing equipment, or barge fleets.”

Steenhoek’s testimony supported more investment in inland waterways and also highlighted the importance of better project management on infrastructure improvements. “One of the arguments in our ongoing analysis is examining ‘how money is allocated is just as important as how much money is allocated’,” said Steenhoek. “It is discouraging to observe how many other countries are able to construct their major infrastructure projects much more efficiently than we can. The Panama Canal expansion project is a great example. This $5.25 billion project commenced in 2007 and is scheduled to be completed in late 2014 or early 2015. The expansion project is more imposing and complex than any project we have underway or planned in our inland waterway system, yet all indications are that the project will be completed within budget and only a handful of months behind schedule. Compare this to our Olmsted Lock and Dam project that had an original cost estimate of $775 million and has recently been updated to more than $3 billion with a significant time horizon remaining before it will be completed. When examining the various reasons for our repeated cost overruns and project delays, it quickly becomes evident that a major contributing factor is the piecemeal and unpredictable manner in which we finance these projects.”

Upgrading and modernizing the locks and dams has been a long held priority of ASA. ASA supports increased funding for waterways infrastructure, and to that end, supports the Waterways are Vital for the Economy, Energy, Efficiency, and Environment Act (WAVE4) recently introduced by Rep. Ed Whitfield (R-Ky.). ASA hopes that the WAVE4 bill will initiate the dialogue and spur the action that is urgently needed to avoid catastrophic disruptions to commerce and maintain the economic competitiveness of U.S. exports. ASA strongly believes that investing in transportation infrastructure is a worthy and justifiable use of federal funds, however, recognizing the budgetary and administrative challenges that exist, ASA stands ready and willing to engage with all stakeholders on innovative ways to meet our infrastructure needs in the most efficient manner possible. 

Through its involvement in the STC, ASA advocates a transportation system that delivers cost effective, reliable, and competitive service for the soybean industry. ASA represents all U.S. soybean farmers on domestic and international issues of importance to the soybean industry. ASA’s advocacy efforts are made possible through voluntary membership by more than 21,000 farmers in 31 states where soybeans are grown.



EIA Weekly Stocks Climb

Domestic ethanol inventories rebounded last week, rising 196,000 bbl or 0.9% to 21.968 million bbl for the week-ended April 13 after three straight weekly drawdowns, according to fresh data from the Energy Information Administration released Wednesday.

Total stocks are also 9.3% higher than the year-ago level, the EIA figures show. The stocks have risen by 4.91 million bbl or about 28.8% since Dec. 9, 2011, when a string of builds that ran through March began.

Ethanol production from domestic plants fell 12,000 bpd or 1.3% to 884,000 bpd last week while up 3.2% on the year.

Implied demand, as measured by refiner and blender net inputs, rose 16,000 or 1.9% to 840,000 bpd from the prior week, while up 5.3% from a year ago.

Elsewhere, the EIA reported that implied demand for motor gasoline rose 94,000 bpd to 8.775 million bpd for the week-ended April 13 while four-week average gasoline demand at 8.7 million bpd was down 2.8% from the level seen a year ago.



Sen. Hoeven reiterates importance of Domestic Fuels Act to RFA legislative forum
Weakening imported oil’s grip on Americans necessarily means expanding the availability and use of domestically=produced renewable fuels.  Addressing the inaugural Renewable Fuels Association’s Washington Legislative Forum, Senator John Hoeven detailed the elements of the bipartisan Domestic Fuels Act, introduced in late March.

Specifically, the Domestic Fuels Act would:
• Streamline the process so that all fuels, both traditional and renewable, can be stored and dispensed with common equipment. The bill requires the EPA to develop streamlined criteria so that underground tanks can be used to dispense gasoline, diesel, ethanol or some combination of fuels, rather than requiring the use of separate tanks.
• Provide liability protection for retailers that meet the streamlined EPA standards, so that they can sell multiple types of fuel with less red tape, providing consumers with more choice and lower fuel prices.
• Establish a new pathway for retailers to ensure that their equipment is safe and legally recognized as compatible to sell new fuels, thereby reducing the cost of entry for many retailers.

“We need to make all fuels available to American consumers and businesses, and we need to do so by using market-based measures that increase competition and remove bureaucratic obstacles to producing and marketing renewable fuels,” Hoeven said. “This is really about giving customers more choice and better prices at the pump by empowering retailers to market multiple fuels using the same equipment. That’s good for the customer, good for business and good for the nation.”

“By an overwhelming majority, Americans want to have more options at the pump and that means greater availability of domestically produced renewable fuels,” said RFA President and CEO Bob Dinneen.  “Expanding the availability of fuel choices like E15 directly reduces America’s demand for imported oil and creates jobs and economic opportunities that cannot be outsourced.  The Domestic Fuels Act is a perfect example of the kind of thoughtful policies that can be created when all stakeholders work together for the common good.  The RFA is grateful to Sen. Hoeven and his colleagues for introducing this bill and seeking a common sense approach to expanding the use of domestic renewable fuels.”

Earlier this week, the RFA released results from a poll conducted in late March that showed 58% of respondents were more likely to purchase fuels with higher domestic renewable fuel content, like E15, when available.  The Domestic Fuels Act is designed to respond to this specific desire expressed by the American public.



Obama official reaffirms White House commitment to biofuels

The Obama Administration is firmly in the corner of domestic renewable fuels a top aide to President Obama told attendees of the Renewable Fuels Association’s Washington Legislative Forum held today at the Newseum in Washington, DC.

“One of those most promising [clean energy] industries has been American biofuels,” said Heather Zichal, Deputy Assistant to the President for Energy and Climate Change. “Right now, domestic biofuel production is at the highest level ever. In fact, monthly production has increased more than 40% in the last three years. That means that biofuels are already reducing our dependence on oil, cutting pollution, and creating jobs across the country.”

Zichal also referenced the need to continue the industry’s expansion and evolution.  “A year ago, the President set a goal of breaking ground on at least four commercial scale cellulosic or advanced biorefineries by 2013. That goal has been accomplished, one year ahead of schedule. Together, these projects will produce nearly 100 million gallons of advanced biofuels per year.”

Zichal continued, “[S]o last week, we were encouraged when the biofuels community stood behind EPA’s implementation of the Renewable Fuels Standard – which we think is critical tool to promote growth in renewable fuels production in the years ahead. At the same time, we’re taking steps to help level the playing field. Not only has the Administration supported repealing subsidies for oil and gas companies, the President announced yesterday that we’re taking new steps to crack down on manipulation in the oil markets to help protect consumers at the pump.”

While production is important, Zichal also underscored the Obama Administration’s commitment to infrastructure and deployment of renewable fuels and technologies.  “Now, as we produce more biofuels, it’s also important that we focus on deployment. If you think back to when America was moving from horseback to rail and then cars and trucks, we didn’t say your own your own. We laid tracks and paved roads and built bridges to accelerate the transition. We need to make a similar effort on biofuels.”

Zichal highlighted the important work being done by the U.S. Department of Agriculture and the U.S. Department of Energy to help bring growing volumes of renewable fuels like ethanol to the market.  Specifically, Zichal noted the millions of dollars USDA has authorized to help install blender pumps capable of offering a wide range of ethanol blends.

“The Obama Administration has been a trusted and reliable partner with America’s growing and evolving ethanol industry,” said RFA President and CEO Bob Dinneen.  “President Obama and his team appreciate the vital contributions already being made by existing ethanol producers and are committed to ensuring the commercialization of promising new ethanol technologies.  The RFA looks forward to working with President Obama, Ag Secretary Tom Vilsack, and other administration officials like Heather to tackle the challenging issues of reducing our dependency on imported oil and creating American jobs.”



American Corn Growers Leader Speaks Out on Climate Change Report
Keith Bolin, American Corn Growers Institute for Public Policy (ACG) board member, spoke from an ag producer's point of view about weather-related disasters at a press conference last Wednesday. Environment Illinois, the state's premier environmental watch dog group, released a report titled, “In the Path of the Storm: Global Warming, Extreme Weather, and The Impacts of Weather-Related Disasters in the United States.”  United States Senator Dick Durbin (D-IL) also spoke to the seriousness of the weather situation. 97% of the senator's constituents live in counties in Illinois affected by weather-related disasters since 2006.

Bolin, who farms near Manlius, Illinois, and who served as president of American Corn Growers Association from 2004 - 2012, said he felt there was no doubt that the weather has become more extreme, with high rainfall and severe droughts more prevalent today. He expressed concern for the ability of farmers to deal with and adapt to the changing environment. Bolin urges public policy to further develop alternative renewable energy resources, along with efforts to educate and inform agricultural producers to prepare for and adapt to the changing environment, to ensure adequate food and energy production.

“There’s simply no substitute for good soil and a stable climate for growing crops,” Bolin said. “That puts farmers at the front lines of global warming — it’s a grave threat to rural livelihoods and quality of life. That’s why I support EPA policies to cut global warming pollution from automobiles and power plants.”

Bolin said efforts to supplement fossil fuels with renewables such as ethanol, biodiesel and wind energy have already been good for rural America and will help in the mitigation of the effects of climate change.  He added, “Without them, corn would be $2.50, and we’d be figuring out how many jobs off the farm we needed to pay the bills.”



CME to Launch Black Sea Wheat Contract

CME Group Inc. (CME) will launch a wheat futures contract for the Black Sea region, an increasingly important world grain supplier, to begin trading in June.  The contract will be listed on the Chicago Board of Trade and will be traded electronically. It will be dollar-denominated.  CME said the new contract would begin trading June 6. The first contract would be for July delivery.

The new contract, subject to regulatory approval, comes as the region becomes an increasingly important global grain producer, particularly for wheat. The region has accounted for more than 20% of global wheat exports in recent years, the CME said.

"Now more than ever the world relies on the Black Sea region to produce wheat and other grains to meet our growing global demand for food," CME Managing Director Tim Andriesen said.

At times, abundant wheat supplies from the region have flooded the global market, weighing on U.S. wheat prices. But some traders have considered supplies from the region unreliable at times, due to export restrictions and variable crop quality.

That uncertainty will be one of the biggest challenges for CME in establishing the contract, traders and analysts said. Russia banned grain exports for nearly a year after a historic drought there in 2010 prompted domestic food security concerns. Earlier this year, a Ukrainian advisory firm said many traders had agreed to restrict exports in response to a government request as a cold snap prompted worries about crop damage there.

Such restrictions are unheard of in the U.S., the world's largest wheat exporter, but would loom over trade in the new Black Sea contract, traders said.

Andriesen said the exchange is "reasonably comfortable" about export flow due in part to its belief that "governments there recognize it's probably not one of the best strategies going forward."

Potential problems with export restrictions would also be limited by the fact the contract will have delivery points on the Black Sea in Russia, the Ukraine and Romania.

"If one of those countries were to shut off exports, it wouldn't disable the contract," Andriesen said in a conference call.

CME and the Ukraine announced in May 2011 their intent to create a wheat futures contract within the next 6 to 12 months.



Number of Farm Equipment 'Big Dealerships' Growing

There are at least 16 more farm equipment ownership groups in Ag Equipment Intelligence's "Big Dealers" club than at this time last year. According to Farm Equipment magazine, the trent signals an uptick in the pace of consolidation of North American farm equipment dealerships.

Ag Equipment Intelligence and Currie Management Consultants have been tracking dealer consolidation since 2009.

"In 2009, we estimated there were 151 of these dealerships in the U.S. and Canada," the report stated. "This number grew to 162 in 2010, or 6.8%. By 2011, the numbers of Big Dealers rose to 171 groups, an increase of 5.3%. During the past year, 16 additional owner groups joined the ranks of "Big Dealers," a growth rate of nearly 9% vs. the previous year, bringing the total to 187 owner groups."

Big Dealers are defined as those ownership groups that own and operate five or more retail locations selling farm equipment.