Wednesday April 25 Ag News

Korea Retailer Pulls US Beef

(AP) -- Two major South Korean retailers pulled U.S. beef from their stores Wednesday following the discovery of mad cow disease in a U.S. dairy cow. Reaction elsewhere in Asia was muted with Japan saying there's no reason to restrict imports.

South Korea's No. 2 and No. 3 supermarket chains, Home Plus and Lotte Mart, said they halted sales of U.S. beef to calm worries among South Koreans. But within hours, Home Plus had resumed sales and cited a government announcement of increased inspections. Lotte kept its suspension in place.

South Korea is the world's fourth-largest importer of U.S. beef, buying 107,000 tons of the meat worth $563 million in 2011.

South Korea imports U.S. beef from cows less than 30 months old and there is no direct link between U.S. beef imported into South Korea and the infected animal, the country's agriculture ministry said in a statement. The infected U.S. cow was older than 30 months.

But the ministry decided to step up inspections of U.S. beef and request detailed information on the case from the United States -- initial measures to appease public concern while avoiding possible trade conflicts.

Japan: No Reason to Restrict Imports
In Japan, officials said the country's import policy was unchanged.  Japan, the world's third-largest consumer of U.S. beef and veal, restricts its imports of U.S. beef to cows of 20 months or younger.  "There is no need for change," in Japan's import rules, Chief Cabinet Secretary Osamu Fujimura said.

But the latest mad cow case may jeopardize moves to expand American beef sales in Taiwan, where the government recently sparked protests by allowing sales of U.S. beef containing ractopamine, a growth additive.

Taiwan's legislature on Wednesday indefinitely postponed a planned discussion on U.S. beef imports. It is likely the government engineered the delay, fearing that the opposition would stoke sentiment against U.S. beef.

There was no immediate response from China's government. Beijing no longer has an outright ban on U.S. beef but exporters have been unable to overcome continued barriers involving inspection of the meat.

Hong Kong's food safety regulator said it was staying in close contact with U.S. authorities who had confirmed the cow was not slaughtered for human consumption.



Smith Statement on Misguided Child Labor Rule

Congressman Adrian Smith (R-NE) released the following statement after it was reported the Department of Labor was moving forward with its proposal to limit youth involvement in agriculture: 

“The Labor Department’s decision shows how out of touch this Administration is with Rural America and our way of life,” said Smith. “This rule will not only prevent youth from working on a family farm, but there are concerns it will also stop young people from participating in educational programs like 4-H and FFA, or even make it illegal to help a neighbor in need.”

On September 2, 2011, the Department of Labor published a Notice of Proposed Rulemaking which dramatically would alter current child labor laws as they relate to agriculture.  On December 16, 2011, Smith signed a bipartisan letter along with 152 bipartisan Members of Congress urging Labor Secretary Hilda Solis to re-evaluate a proposed rule, which would place burdensome restrictions on youth participation in agriculture. In October, Smith signed a bipartisan letter with 77 other House Members which secured an extension of the public comment period on the rule.



NCGA Disappointed in Senate Farm Bill Delay

National Corn Growers Association President Garry Niemeyer released the following statement in response to the postponement of the Senate Agriculture Committee’s 2012 farm bill markup:  “The National Corn Growers Association is disappointed with the delay in the Senate Agriculture Committee’s markup of the 2012 farm bill.  Our organization is committed to working with members of Congress and other organizations on this vital piece of legislation.  The process needs to be done responsibly and judiciously but it needs to be done as soon as possible.”



Wheat Growers Call For Senate Mark-Up, Farm Bill Progress

The following is a statement from Erik Younggren, National Association of Wheat Growers president and a wheat farmer from Hallock, Minn., on the pending Senate Agriculture Committee mark-up of the 2012 Farm Bill.  “We urge the Senate Agriculture Committee to hold and complete its mark-up of 2012 Farm Bill legislation this week.  We understand the importance of building consensus around the key provisions of this important legislation. We also know crafting a bill that addresses the wide range of needs is a herculean task. But time is short – for committee approval, Senate floor time and full consideration by agriculture leaders in the House of Representatives.  The next crop year for wheat farmers will be here in a few short months. These producers need to know a strong, crop-insurance-based safety net will be available to them after the current farm bill expires on Sept. 30. Now is the time for forward movement.”



Center for Rural Affairs urges Senate to Amend Farm Bill

The Center for Rural Affairs called upon Senate Agriculture Committee members to adopt crucial amendments to the Farm Bill proposal currently before the committee. They were expected to begin debate on amendments today, Wednesday, April 25th.

“Unfortunately, the farm bill proposal before the Senate Ag Committee slashes investment in rural small business development and value-added agriculture while increasing crop insurance subsidies for some of the nation’s largest farms and wealthiest landowners. There are opportunities to fix some of these issues right now, while the Committee debates amendments to the bill,” said Traci Bruckner of the Center for Rural Affairs.

According to Bruckner, the amendment offered by Senator Sherrod Brown (D-OH) and Senator Ben Nelson (D-NE) is an important first step. It would deny farm subsidies to individuals with taxable income over $500,000 and married couples making over $1 million. The money saved would be invested in revitalizing rural communities through small business development, beginning farmer programs, value added agriculture and assistance for small towns in updating water and sewer systems.

Likewise, Bruckner stated that the amendment offered by Senator John Thune (R-SD), Senator Mike Johanns (R-NE), Senator Ben Nelson (D-NE) and Senator Sherrod Brown (D-OH) helps reverse the perverse incentive in current farm policy to break up marginal, erosion prone grasslands.

“Their amendment limits crop insurance benefits and premium subsidies for crops grown on native sod or land that a producer cannot verify has ever been tilled,” Bruckner continued.

As the Senate Agriculture Committee begins debating the next farm bill, they will undertake consideration of over 100 amendments offered by members of the committee. According to Bruckner, this is a time when much of the direction of the Senate Farm Bill will be determined.

“Moreover, in today’s economy it is more important than ever that the Senate make wise choices,” said Bruckner.

She further explained that under current and proposed farm policy, if one corporation farmed an entire state - her home state of Nebraska, for example - then the federal government would pay 60 percent of its crop insurance premiums on every acre, every year, even in times of record profits.

“This does not reflect rural America’s priorities or our values. We face a simple choice, either lavish subsidies on mega-farms, or, invest in rural America’s future. The best choice is obvious,” Bruckner added. “And there will never be a more important time for rural Americans to let their Senators know how they come down on that choice than right now.”



Applications Open for IFBF Young Farmer Award

Beginning and young farmers face many challenges as they start their farms and work to expand their operations; from rising costs of land and feed to changing regulations and rules. But many are excelling at their careers in agriculture and the Iowa Farm Bureau Federation (IFBF) honors the top young farmers in the state at the organization's annual meeting each December.

IFBF encourages young farmers, ages 18-35, to apply for the Young Farmer Achievement Award, which recognizes successful young farmers who excel in managing their farms and demonstrate outstanding leadership in their industries and communities. The Achievement Award is sponsored by John Deere. Applications for the award must be submitted to the Iowa Farm Bureau Federation by May 11.

The winner receives a year's lease for a John Deere Tractor/loader combo or a TX Gator, John Deere Financial certificate, video, plaque and trips to the annual meetings of the American Farm Bureau Federation, GROWMARK and the IFBF Young Farmer group. All applicants receive up to three hours of farm financial planning assistance.

"Being recognized with this award was so gratifying for my wife and me," explained Justin Dammann, a Page County farmer and 2011 award winner. "I knew that we were on the right track with our management, environmental practices and balancing work and family. Farm Bureau has been an important part of our professional development and we wanted to strive for this recognition."

Applications can be downloaded at www.iowafarmbureau.com in the Young Farmer section. All applications are confidential.



New Swine ID Tags Now Available

Metal swine identification tags, long a bane of the industry, may soon be a thing of the past. Iowa State University Extension and Outreach swine veterinarian James McKean said the Iowa Department of Agriculture and Land Stewardship has developed a new plastic version as a replacement for metal tags.  This will be good news for many producers.  "The tags are available from Iowa practicing veterinarians and are considered official ID for both intrastate and interstate transport of swine," he said. "The plastic tags should be easier to apply and retain for show pigs, feeder pigs and others that may be moved."  The new tags, manufactured by All-Flex, are triangular in shape, approximately an inch and a half from top to bottom and from side to side at the widest point.



Paterson Named to Coordinate NCBA Producer Education Program

John Paterson, Ph.D., a cattle producer and well-known beef cattle extension specialist who was previously with Montana State University (MSU) in Bozeman, has joined the National Cattlemen’s Beef Association (NCBA) as the organization’s executive director for producer education.  He replaces Tom Field, Ph.D., who was named director of the University of Nebraska Engler Agribusiness Entrepreneur Program.

“J.P. has long been recognized as one of our industry’s premier communicators and educators, and his leadership will be pivotal as we continue to enhance NCBA’s producer education program,” said James O. “Bo” Reagan, NCBA senior vice president for research, education and innovation. “The challenges facing our industry continue to grow in the areas of animal welfare, sustainability, beef safety, increased production efficiencies and consistently delivering a high quality product to our domestic and global consumers. We believe J.P. is the right person to provide proactive leadership for our industry in addressing these issues.”

Paterson received his Ph.D. in Beef Cattle Nutrition from the University of Nebraska, and from 1979 to 1993 was on the faculty of the Animal Science Department at the University of Missouri. He was a beef extension specialist at Montana State University from 1996 to 2012.

Among the numerous industry awards Paterson has received are the National Extension Award from the American Society of Animal Science and the Distinguished Service Award from the Western Section of the American Society of Animal Science. He has authored and co-authored more than 200 peer-reviewed manuscripts and proceedings papers and given 87 invited presentations since 1996.

Paterson and his wife, Diana, have three children; Courtney, a pediatrician in Denver; Terrill, a Ph.D. candidate at MSU; and Cameron, a high school teacher in Macon, Georgia. 



EPA Releases March Biodiesel Volume

The EPA said Wednesday that 101 million gallons of biodiesel were produced in March, reporting year-to-date production of 236 million gallons through the end of March.  Biodiesel production is reported under the EPA's Biomass-based Diesel category in the Renewable Fuel Standard (RFS). To view the figures, visit the EPA's website here...  http://www.epa.gov/otaq/fuels/rfsdata/2012emts.htm. The EPA numbers show a total of 108 million gallons of Biomass-based Diesel, but that figure also includes renewable diesel.

Last year, the biodiesel industry set a new production record of nearly 1.1 billion gallons, supporting more than 39,000 jobs across the country. Made from an increasingly diverse mix of resources such as agricultural oils, recycled cooking oil and animal fats, biodiesel is the first and only EPA-designated Advanced Biofuel that's produced on a commercial scale across the U.S. It is produced in nearly every state in the country and is used in existing diesel engines without modification.



Energy Information Administration Offers Weekly Ethanol Numbers  

Domestic ethanol inventories were drawn down last week, falling 116,000 bbl or 0.5% to 21.852 million bbl for the week-ended April 20 after rising in the prior week, according to data released today by the Energy Information Administration.  The EIA data also showed ethanol production from domestic plants fell 19,000 bpd or 2.1% to 865,000 bpd last week while down 2.0% from the year-earlier level.



USDA:  Milk Production, Disposition, and Income, 2011 Summary

Milk production increased 1.8 percent in 2011 to 196 billion pounds. The rate per cow, at 21,345 pounds, was 197 pounds above 2010. The annual average number of milk cows on farms was 9.19 million head, up 75,000 head from 2010.

Cash receipts from marketings of milk during 2011 totaled $39.5 billion, 26.0 percent higher than 2010. Producer returns averaged $20.25 per hundredweight, 23.9 percent above 2010. Marketings totaled 195.3 billion pounds, 1.8 percent above 2010. Marketings include whole milk sold to plants and dealers and milk sold directly to consumers.

State:          Cows       # Prod/cow - # Milkfat/cow - Milkfat% - Total # milk prod   -   Marketing $
Iowa .......:   204,000   -    21,309    -      791       -       3.71     -     4,347,000,000  -  888,675,000
Nebraska :    57,000    -   20,579     -     772       -       3.75      -    1,173,000,000  -  248,358,000



Bennet Amendment to Senate Farm Bill Dairy Program Costs Farmers $400 Million

A proposed amendment to the Senate Agriculture Committee’s farm bill draft would cost dairy farmers more than $400 million in additional expenses, according to the National Milk Producers Federation (NMPF).

The Senate Agriculture Committee postponed consideration today of the 2012 Farm Bill, but when that process resumes, Sen. Michael Bennet (D-CO) is expected to offer an amendment to make dramatic changes to the dairy title of the legislation. Bennet’s amendment would increase the cost to dairy farmers on the margin insurance program “by as much as a staggering $429 million in the next five years,” said Jerry Kozak, President and CEO of NMPF.

“Senator Bennet’s amendment is both bad policy and bad politics,” Kozak said. “It drives up the cost of this program to farmers, and it erodes the careful political and economic balance that the Senate Ag committee has created.”

The dairy portion of the Senate farm bill proposal replaces three existing dairy programs, and uses the budget savings from those to help pay for the Dairy Producer Margin Protection Program. A basic, $4 level of margin insurance is free to farmers, although there are up-front administrative fees tied to the volume of milk insured under the program. If a farmer wishes to insure a larger margin, the premium rates increase with the level of protection.

Under the Bennet amendment, the costs to the dairy farmer – of both the initial administrative fee, and the supplemental premium rates – are greatly increased.

“Senator Bennet’s amendment would raise the overall price tag of the insurance program to farmers. Dairy processors say they agree with the concept of margin insurance, but with this amendment, they’re jacking up the cost of the program to farmers by millions of dollars a year, and once again shifting the risks of the marketplace away from them, onto the backs of our hard-working dairy farmers,” Kozak said.

NMPF has calculated the additional aggregate cost to farmers of the Bennet amendment, based on the average milk production of farms of in six size categories.

Each year of the farm bill, the additional cost paid by dairy producers would be $37 million for $4 of margin protection, and $86 million of $6 margin protection. Over the five-year lifespan of the farm bill, those figures balloon to $186 million, and $429 million.

Yesterday, NMPF wrote a letter to members of the Senate Agriculture Committee to oppose the Bennet amendment, reminding them of “the hard work that senators on both sides of the aisle have put into the completion of this mark. Please don’t allow last-minute amendments such as this to thwart all the effort that has been made to this point.”



Argentina Soy Escapes Most Frost Damage

A series of frosts swept across Argentina's southern farm belt this week, auguring the imminent arrival of the southern hemisphere winter but largely sparing the late soybean crops from significant damage.

Farmers have harvested close to half of the 2011-12 soybean crop. Virtually all of the fields have reached maturity and aren't vulnerable to frost any more, said Buenos Aires Cereals Exchange crop analyst Esteban Copati.

Yields from Argentina's soybean crop are disappointing in many fields due to drought in December and January that affected early plantings and led many farmers to put off soybean planting until late January. As a result, the short growing season for much of the crop trimmed potential output, Copati said.

Early in the season many analysts had predicted 2011-12 soybean output to top the 49 million metric tons grown last season, but now most local forecasters are talking about production of around 43 million tons.



Burger King pledges shift to 'cage-free' eggs, gestation crate-free pork

Burger King Corp. pledged Wednesday to begin buying eggs only from farms that don't cage their hens, a step beyond its fast food competitors' efforts to push for better treatment of food-producing animals.

Burger King also announced it will begin buying pork only from producers that do not use controversial gestation stalls to confine sows.  The announcement was praised by the Humane Society of the United States. 

It will take five years to complete the transition to buying only "cage-free" eggs for the breakfast sandwiches and burritos served at Burger King's 7,200 restaurants across the U.S., the company said in a statement.

Farms can make the switch to cage-free production, but not overnight, said Gene Gregory, chief executive of the farm group United Egg Producers. New production facilities have to be built or existing ones have to be converted, he said, and producers generally don't make the change until they are contracted to do so by buyers because of the expense involved.

It costs an extra 25 to 40 cents per dozen to produce cage-free eggs, Gregory said.

Farmers produce about 250 billion eggs per year in the U.S., but only a small percentage of those come from uncaged hens, according to data maintained by the United Egg producers. Of the 10.5 million laying hens in 2010, only about 4% were not in cages.

Burger King Corp. operates more than 12,500 locations worldwide.

Related:  HSUS Addresses Domino’s Executives at Shareholder Meeting about Extreme Confinement of Pigs
At the annual shareholder meeting of Domino’s today, a representative of The Humane Society of the United States intended to challenge the company about allowing its pork suppliers to confine breeding pigs in tight crates that HSUS says virtually immobilize them. Domino’s is the world’s second-largest pizza chain with more than 9,700 locations.



Statement Of The National Pork Producers Council On Burger King’s Decision On Sow Housing

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

With regard to Burger King’s decision to require its pork suppliers to phase out individual sow housing, the National Pork Producers Council is concerned that such action will significantly increase production costs – and eventually consumer prices – force U.S. hog farmers out of business and lead to more consolidation of the pork industry, all with no demonstrable health benefits to sows.

NPPC supports the position taken by the American Veterinary Medical Association and the American Association of Swine Veterinarians, which recognize gestation stalls and group housing systems as appropriate for providing for the well-being of sows during pregnancy. In fact, the key factor that most affects animal well-being is husbandry skills – that is, the care given to each animal. There is no scientific consensus on the best way to house gestating sows because each type of housing system has inherent advantages and disadvantages.

While NPPC respects the right of companies to make business decisions that are in their best interests, it seems that Burger King was bullied by an animal rights group whose ultimate goal is the elimination of food-animal production. The Humane Society of United States has no concern for the hog farmers who care for their pigs every day, for families struggling to purchase food or for the hog farms that likely will go out of business – costing rural America thousands of jobs – because of its campaign against America’s farmers and ranchers.