Friday May 11 Ag News

UNL Extension DNA Technology Meeting Offered June 27 at Clay Center

"DNA Technology: Where we've been, where we are, and where we're headed" will be the topic of a June 27 conference at the U.S. Meat Animal Research Center at Clay Center.

This is a constantly evolving technology, said Matt Spangler, University of Nebraska-Lincoln Extension beef genetics specialist. Participants will learn about DNA technology as it relates to making selection decisions in beef cattle and the changes in application and research discoveries over the past 12 months.

The conference will begin at 11:30 a.m. with lunch and end at 5 p.m.

Presentations and speakers include: Marker Assisted-EPD for other Breeds: A Changing Paradigm, Spangler; Reduced Cost Genotyping Strategies, Mark Thallman, U.S. MARC; Reduced SNP Panels -- Creation, Realistic Expectations, and Use in Different Livestock Industries, Alison Van Eenennaam, University of California-Davis; Erosion of MBV Accuracy Overtime, Megan Rolf, Oklahoma State University; Is bigger better? Efficacy of HD (770K) Panel, Steve Kachman, UNL; Deletion Impacting Fertility, Tara McDaneld, U.S. MARC; Feed Efficiency: What Role will Genomics Play?, Bob Weaber, Kansas State University.

The conference will conclude with a wrap-up discussion lead by Spangler.

Registration is $10 to cover handouts and lunch. For more information, contact Spangler at 402-472-6489, mspangler2@unl.edu. To RSVP for lunch by June 11, contact Terri Behl at tbehl1@unl.edu or 402-472-6411.



Rural Futures Conference Participants Agree Hard Work, Challenges Are Ahead

As first steps go, participants agreed, the inaugural University of Nebraska Rural Futures Conference was a big one, helping to set the stage for creation of the new Rural Futures Institute.

But the next steps are fraught with huge challenges, speakers said Thursday afternoon as the three-day conference ended. The conference drew about 450 people; its aim was to help set the agenda for the institute, which is expected to be in operation by the fall.

The institute is being established to build partnerships between the university and rural communities in an effort to help rural areas be resilient, sustainable and innovative.

"We already know how to do this," said Ellen Weissinger, senior vice chancellor of academic affairs at UNL. "We have a 140-year track record" as a land-grant university in helping agriculture prosper and innovate.

"We just need to take that model and apply it to even more areas of rural life," Weissinger added.

After a morning of informal small-group conversations that surfaced hundreds of ideas, large and small, for the institute, afternoon discussion featured both excitement and cautions about the work ahead.

Several people observed that the conference was rather insular, dominated by academics from UNL and other universities, and the institute must move beyond that to be successful. Mary Kay Quinlan, associate professor of journalism at UNL, said some suggested the institute consider a youth advisory board and encouraged it not to leave out community, state and tribal colleges.

The institute will challenge the four campuses of the NU system to collaborate and cooperate in ways they haven't before, said Roni Reiter-Palmon, professor of psychology at the University of Nebraska at Omaha. "This system, this organization is not designed for interdisciplinary work," she said.

Another closing-panel participant, David Procter, director of engagement and community development at Kansas State University, warned against the "danger of overpromising what can be done by the institute."

And Matt Rezac, director of rural community partnerships at the Omaha-based Sherwood Foundation, cautioned the university against creating a new bureaucracy, what he called "another corridor of mystery for people on the outside, another layer that people don't quite understand."

Weissinger said the institute's work won't be universally popular and not everything it does will succeed.

"If we do our jobs well, we will explore ideas that will be discomforting," she said. "Given the scope and breadth and complexity, we're going to have to be patient while we fail."

But much of Thursday's discussion focused on the excitement and potential surrounding the Rural Futures Institute.

"There's an urgency to get this done. There's a sense of hope," said Esmeralda Cruz, an extension assistant from Purdue University. "People really believe something can come out of this. It's not just one more conference you go to and nothing gets done."

Weissinger said UNL faculty are primed to lead such an effort because "by and large, they find meaning in the fact that they work in Nebraska."

Sam Cordes, a former UNL rural sociologist who's now retired from Purdue, added "We ultimately have to see ourselves as public servants ... We do have a responsibility to do this type of work."

Cordes, a senior advisor for the institute, noted he's been involved in rural development for 40 years. "I have never seen anything considered that's even remotely close to what's being considered here."

"This discussion needed to happen," said Ronnie Green, NU vice president for agriculture and natural resources and Harlan vice chancellor of the university's Institute of Agriculture and Natural Resources. "We're going to learn a lot from what we heard from you."



Iowa Farm Bureau Applauds 2012 Legislature

Iowa Farm Bureau Federation (IFBF), the largest grassroots farm organization in the state, applauds Iowa lawmakers for measures passed this year which protect property owners, increase conservation funding and protect responsible Iowa livestock farmers from fraud.

Several measures passed in this legislative session that impact property taxes paid by landowners and homeowners. IFBF applauds two legislative issues that directly impact property owners including a combined $27 million increase to the homestead property tax credit and ag land and family farm property tax credit, providing for direct property tax relief," said IFBF President Craig Hill, a Milo crop and livestock farmer. Additionally, the legislature reinstated the statewide dollar cap to ensure that property tax contributions to the mental health system remain limited and controlled. "These efforts, along with fully funding the legislature's K-12 education commitments, provide protections for property taxpayers and assure limited and controlled use of property tax dollars for these services."

While IFBF had several priority issues win bi-partisan approval in the 2012 legislative session, members are particularly pleased to see increased conservation and water quality cost-share funding for programs which are currently experiencing a backlog of unfunded projects. "Farm Bureau members are pleased that lawmakers decided to increase state funding for incentive-based, voluntary conservation and water quality programs, including the Ag Drainage Well Closure program. Farmers know a 'one size fits all' approach doesn't work when it comes to conservation measures, but they do know what works best on their land. Conservation measures such as buffer strips, terracing and other soil-protection and water quality measures have helped Iowa farmers reduce erosion by more than 30 percent since 1982, but requests for cost-share dollars to implement them have been grossly underfunded," said Hill. The increase in the Ag Drainage Well Closure program and Conservation Cost-Share program will translate into enhanced water quality and soil conservation in Iowa.

Another high priority issue for Iowa family farmers which won passage in the 2012 legislature was the Agriculture Protection Bill. The bi-partisan House File (HF) 589 creates penalties for those who fraudulently gain access to a farm with the intent to cause harm. "It's about misrepresentation of character," said Hill. "Good farmers don't want to think that someone is sitting on the sidelines, watching bad things happen, just because they have some covert motive." HF 589 creates new penalties for those who make false statements to gain access to a farm, or misrepresent themselves on an employment application to hide their intended misconduct or purpose. It also penalizes organizations or persons who aid or abet someone who misrepresented facts to gain access to a crop or livestock farm.

Farm Bureau members will continue to work towards improving Iowa's infrastructure, an area which was not addressed by this year's legislature. "Many of Iowa's roads and bridges are in need of significant structural improvements, and we continue to fall further behind every year. Clearly, this problem will not go away without additional funding; that's why Farm Bureau members have identified a fuel tax increase as the most equitable, feasible funding method," said Hill.



Small Livestock Producers Can Check, Improve Water Quality

Spring rains bring the proverbial flowers, but they can also create runoff problems for unroofed livestock operations.

Now beef and dairy farmers have an opportunity to evaluate and test how runoff from their cattle yards affects waters below the yard. There are new resources, too, for farmers with small and mid-sized operations who want to improve runoff management and water quality.

A coalition of commodity groups, educational and public agencies has joined to provide practical and affordable materials and water test kits for farmers.

"These test kits are easy and quick, and the only person who knows the results is the farmer," said Matt Deppe, CEO of the Iowa Cattlemen's Association. "Once farmers evaluate the effectiveness of their runoff controls, they can turn to new educational resources designed especially for cattle yards that do not need NPDES permits. These materials can guide them to cost-effective ways to make changes in their yard management or control structures that will better protect Iowa's waters," he said.

For many farmers with small and mid-sized operations, visually inspecting the cattle yard, and testing for ammonia in waters that run below the cattle yard can ease concerns about meeting state regulations on water quality. While there may be other potential problems, like high bacteria levels, ammonia tests are fast and simple to do. A free video and fact sheet on how to test the waters are available on the Iowa Manure Management Action Group's (IMMAG) and Iowa Department of Natural Resources' websites at www.iowadnr.gov/afo/.

The test kits can be checked out at about 20 Iowa State University Extension and Outreach offices. Find the location nearest you on the IMMAG website at www.agronext.iastate.edu/immag/smallfeedlotsdairy.html, or call the local Extension office for more information.

Demonstrations of the kits and discussion of the materials will be covered during field days of small cattle yards planned for this summer and fall. Dates for those field days will be posted to the IMMAG website.

The time to inspect and test is during or shortly after a rainfall, when water is running off the cattle yard.

If a farmer discovers a problem, the new publications can steer the farmer to affordable solutions to control and contain manure runoff in "Small Open Beef Feedlots in Iowa -- a producer guide." A similar manual with design and management tools for dairy farmers will be available soon.

"We are convinced that cattle and dairy producers want to do the right thing to protect our water resources," said Bill Ehm, DNR administrator of environmental services. "These test kits and educational tools will provide them with the information they need to do just that."

Educational and testing materials are part of the Water Quality Initiative for Small Iowa Beef and Dairy Feedlot Operations, a two-year plan to provide resources for farmers with small or mid-sized open lots. Partners in the project include the Iowa Cattlemen's Association, Iowa Department of Agriculture and Land Stewardship, Iowa Department of Natural Resources, Iowa State Dairy Association, Iowa State University Extension and Outreach, USDA-Natural Resources Conservation Service and the U.S. Environmental Protection Agency, which has provided partial funding through a Section 319 grant.



ISA hires Member Communications Manager

Joe Murphy has joined the Iowa Soybean Association (ISA) staff as Member Communications Manager.  In this newly-created position, Murphy will assist in communicating the association’s programs and activities and the work and involvement of ISA members to internal and external publics using copy writing, photography and digital media. He’ll also successfully position new and emerging issues important to the ISA and its members to a variety of audiences.

In addition, Murphy will assist in the continued growth and success of the Iowa Food & Family Project (FFP), a purpose-driven initiative launched last year by the ISA dedicated to celebrating the miracle of food and the integrity and achievements of those who provide it. The Iowa FFP is committed to enhancing consumer awareness, trust and understanding of today’s farms and uniting Iowans in conversations about food and farming through personal engagement and advocacy. More than 30 affiliates support the Iowa FFP, including farm organizations, food relief associations, businesses and food retailers. Guided by a 17-member advisory team, the organization is proud to serve as presenting sponsor of the Iowa Games and supporter of Live Healthy Iowa.

Murphy is well-versed on agricultural issues and is an experienced and award-winning journalist and photographer. He’s served as managing editor of the Britt News-Tribune, staff photographer and reporter for the Clinton Herald and most recently, served as writer and photographer for the Iowa Farm Bureau Federation.

“I look forward to serving Iowa’s soybean growers and the association in this new role,” says Murphy, a native of Forest City. “The ISA is a dynamic and growing organization that’s helping create new opportunities for soybean producers while developing innovative campaigns that unite all Iowans in conversations about food, fiber and renewable fuels.”



Pork Exports Post Strong First Quarter Growth; Beef Results Mixed

U.S. pork exports finished the first quarter 8 percent higher in volume (598,058 metric tons) and 20 percent higher in value ($1.66 billion) than last year’s record pace, according to statistics released by the USDA and compiled by the U.S. Meat Export Federation (USMEF).

At the same time, the value of beef exports for the quarter rose 4 percent (to $1.25 billion) on 10 percent lower volumes (266,388 metric tons).

March pork export volume of 198,972 metric tons was 8 percent lower than a year ago, but up 6 percent from February 2012. Export value of $570.5 million was 3 percent higher than last year and up 8 percent from the previous month. These results were led by excellent growth in the China/Hong Kong region and by strong performance in Mexico, Japan and Canada.

Beef export volume in March of 89,803 metric tons was 23 percent lower than last year but up 3 percent from February. March export value of $438.5 million was down 8 percent year-over-year but was 7 percent higher than the previous month.

“A 20 percent increase in pork export value for the first quarter is extraordinary, especially considering the record performance of last year,” said USMEF President and CEO Philip Seng. “On the beef side, market access issues and price sensitivity are making volume growth difficult in some markets, but we are pleased to see export value remaining above last year’s record pace, even on smaller volumes.”

Pork export value per head sets new monthly record
March pork export value was particularly strong on a per-head-slaughtered basis, reaching $59.92. This was nearly $4 higher than a year ago and set a new monthly record, surpassing the previous high of $59.53 set in November 2011. Exports equated to 27.8 percent of total U.S. production of muscle cuts plus variety meat, and 24 percent when including muscle cuts only.

Mexico remains the leading market for U.S. pork on a volume basis, with first quarter exports up 17 percent in both volume (162,721 metric tons) and value ($299.7 million). Exports to Japan, which nearly reached the $2 billion mark in 2011, were up just 1 percent in volume (122,899 metric tons) but also achieved a 17 percent increase in value to $530.6 million. Exports to the China Hong/Kong region, which came on very strong in the second half of 2011, were 30 percent higher in volume in the first quarter (115,642 metric tons) and surged 82 percent in value to $234.9 million.

Other first quarter market highlights included:
-    Exports to Canada were up 26 percent in volume (55,916 metric tons) and were one-third higher in value at just under $200 million.
-    In Russia, where U.S. pork now has better potential for expansion under a global tariff rate quota, exports were up 20 percent in volume (15,510 metric tons) and 36 percent in value ($47.9 million).
-    Led by a strong performance in Colombia, exports to the Central and South America region expanded 9 percent in volume (20,603 metric tons) and 16 percent in value ($53.5 million).

In South Korea, pork exports surged in the early months of 2011 because of culling of the domestic swine herd (due to foot-and-mouth disease) and a temporary duty-free tariff rate quota for some cuts of imported pork. Consequently, year-over-year exports to Korea were lower in the first quarter of 2012 – down 27 percent in volume (53,590 metric tons) and 12 percent in value ($154 million). It is important to note, however, that these totals were still more than double the volume and triple the value recorded in the first quarter of 2010.

“While domestic supplies are recovering in Korea, we are still creating new opportunities for U.S. pork.” Seng said. “The lower tariffs made possible by the Korea-U.S. FTA will enhance the competitiveness of U.S. pork in terms of price, and help us further expand the presence of chilled pork and value-added pork products in the retail and foodservice sectors. These marketing strategies have proven very effective in Japan, and I believe we can have similar success across north Asia.”

While beef export volume slows in some markets, value remains solid
March beef export value equated to $204.65 per fed steer and heifer slaughtered, down slightly from the March 2011 total of $205.40. Beef exports accounted for 12 percent of total U.S. production when including both muscle cuts and variety meat, and 9 percent for muscle cuts only. These ratios were lower than a year ago (15 percent and 11 percent, respectively).

Despite a 13 percent decline in volume, Mexico remained the leading destination for U.S. beef (55,725 metric tons) and exports to Mexico managed a 5 percent increase in value to $250.9 million. Export volume to Canada was steady with last year at 36,834 metric tons, but 15 percent higher in value at $215.4 million.

In Japan, where the Food Safety Commission continues to examine BSE-related age and product restrictions on U.S. beef, exports were down 7 percent in volume (29,695 metric tons) but up 10 percent in value ($194 million). The United States continues to gain market share, as Australia’s exports to Japan have fallen 14 percent in 2012.

Other first quarter market highlights included:
-    Exports to Russia reflected a shift toward higher-value muscle cuts, as volume increased 4 percent to 14,463 metric tons but volume surged 85 percent to $59.9 million. As with pork, U.S. beef faces a more favorable access situation in Russia as the U.S. tariff rate quota for muscle cuts was expanded from 41,700 metric tons in 2011 to 60,000 metric tons this year.
-    While exports to some Middle East markets slowed, Egypt continued to post very strong results – increasing 12 percent in volume (31,466 metric tons) and 18 percent in value ($47.7 million). As a result, exports to the Middle East region were up slightly in volume (35,480 metric tons) and 10 percent in value ($78.9 million).
-    Led by outstanding results in Chile, exports to the Central and South America region increased 44 percent in volume (8,383 metric tons) and 94 percent in value ($32.5 million). Exports to Peru and Guatemala also posted impressive value growth.

Market access issues took a toll on U.S. beef exports to Taiwan (down 18 percent in volume to 5,554 metric tons and 11 percent in value to $35.1 million), where controversy over ractopamine residue testing has made for a very unsteady business climate. Drastically lower import quotas have lowered U.S. beef exports to Indonesia, where volume (601 metric tons) was down 86 percent and value ($2.4 million) was down more than 60 percent. (Though not reflected in these results, Indonesia also imposed new market access restrictions as a result of the BSE case announced April 24.) Year-over-year exports were also lower for Korea, but this was largely due to a surge in export activity in early 2011. First-quarter performance in Korea was fairly consistent with the second half of 2011. U.S. beef has also continued to gain market share in Korea this year, as Australia’s exports have declined by 37 percent.

“Despite a decline in export volume, prospects for U.S. beef remain positive across the globe,” Seng said. “We are, for the most part, encouraged by the response to the recent BSE case. Nearly every trading partner followed established science and did not alter our level of market access. We remain hopeful that Japan will open to a wider range of products later this year and that access issues in other Asian markets will also be addressed. Consumer demand for U.S. beef is solid, but we need to eliminate trade barriers and maintain an active presence in these markets in the face of aggressive competition if we want to keep export value strong and get back to the record volume pace established in 2011.”

Lamb export value up slightly despite slump in volume
Lower exports to the Caribbean and a sluggish market for variety meat held back the first quarter performance of U.S. lamb. Export volume was down 18 percent to 3,295 metric tons, while value increased slightly to $6.4 million. Led by strong exports to Canada, lamb muscle cuts achieved a 12 percent increase in value ($4.4 million) despite a 9 percent decline in volume (1,484 metric tons).



The U.S. Farmers & Ranchers Alliance Impacts America’s Food Conversations

The U.S. Farmers & Ranchers Alliance (USFRA) held their spring meetings in St. Louis, Mo. The purpose of this event was to conduct the Board of Directors meeting and bring the Communications Advisory Committee (CAC) and Task Force members together for first face-to-face meeting.

“In its first 18 months, USFRA has made a significant impact on the conversation America is having about how its food is produced,” said USFRA Chairman Bob Stallman, president of the American Farm Bureau Federation. “Through our Food Dialogues, U.S. farmers and ranchers are actively engaging in this conversation by telling their personal stories of continuous improvement in the operations.”

With nearly 80 affiliate and industry partner organizations supporting USFRA to date, Stallman stated these meetings allowed representatives from a majority of those organizations to convene and collaborate on activities in which USFRA will be engaging. Seventy individuals discussed USFRA’s movement and the need to continue effective dialogue with top influencers and consumers.

“While there was some discussion of the progress to date, there was definite synergy around the movement USFRA has started, and excitement about the next steps to create more momentum,” said CAC Chair Forrest Roberts, CEO of the National Cattlemen’s Beef Association (NCBA).  After CAC and task force members concluded meeting, the Board of Directors convened. Roberts said the remaining communications activities were outlined and approved, all tying back to USFRA’s key objectives.

USFRA’s key objectives are to increase share of voice in key media; provide information to policymakers/government officials; engage key customers decision makers; work with leading national influencers to create partnerships; and increase role of farmers and ranchers as the voice of animal and crop agriculture.

“The USFRA Board of Directors approved 2012-13 plans presented by the CAC, which included five key activities designed to enhance consumer confidence in today’s agriculture,” said Stallman. USFRA will host a June Food Dialogue in Los Angeles and a single Food Dialogue event in New York City in November in conjunction with the fall USFRA Board of Directors meeting. USFRA will also begin the process of producing a documentary telling today’s farmers stories, as well as launch a search for the “faces of agriculture” program.  The AGgregator, will be a web search tool that will be housed on the www.fooddialogues.com website.



NGFA, NAEGA Urge CFTC to Solicit Public Comments on Issues Raised by Plan to Expand Electronic Futures Trading Hours

The NGFA and North American Export Grain Association (NAEGA) on May 10 urged the Commodity Futures Trading Commission (CFTC) to institute a 30-day public comment period to provide time to assess issues related to announced plans by the InterContinental Exchange (ICE) and CME Group to launch expanded electronic trading hours this month for grain and oilseed futures and options contracts.  In a joint letter to the CFTC, the two organizations cited inadequate advance consideration with stakeholders of important ancillary issues raised by the two exchanges’ plans to expand electronic trading to 22 hours per day as justification for CFTC intervention.  In its May 3 notification to the CFTC announcing its intent to expand electronic trading hours for grain and oilseed contracts, the CME Group had maintained that "there were no substantive opposing views" expressed.  [Click here to access the CME Group notice.]  If the CFTC finds it is not feasible to institute a public comment period, the NGFA and NAEGA urged the agency to approach both ICE and the CME Group to encourage them to self-initiate a delay in their respective scheduled implementation dates. 
   
The NGFA and NAEGA also emphasized that any delay in the expansion of electronic trading necessitated by the opportunity for public comment should apply to all futures exchanges equally.  This would include the Kansas City Board of Trade and MGEX (formerly the Minneapolis Grain Exchange) that have signaled they will follow suit with the CME Group.

In their joint petition to the CFTC, the NGFA and NAEGA stressed that they did not oppose "some reasonable and properly constructed expansion" of electronic trading hours, noting that some member companies believe doing so would enable hedging of cash grain and oilseed transactions over a longer period of the day.  But the groups did warn that as currently structured, both ICE's plan to launch 22-hour electronic trading of new grain and oilseed contracts starting May 14 and the CME Group's plan to expand its existing electronic trading to 22 hours effective May 20 "raise serious issues that could lead to competitive inequalities and impose significant additional costs” attributable to personnel requirements, as well as computer and accounting system changes.

"Neither the ICE contracts nor the CME Group's plan to expand electronic trading hours were vetted properly with appropriate market participants" prior to their respective announcements, the NGFA and NAEGA maintained.  "It is safe to say there are significant and substantive opposing views as to whether these plans, as currently constituted, are of net benefit" to those using the futures markets for hedging and risk-management purposes.

The NGFA and NAEGA specifically cited the following concerns surrounding the expansion of electronic trading that warrant further evaluation:
-    Allowing electronic trading to be open during the release of key statistical and economic reports issued by the U.S. Department of Agriculture (USDA).  Currently, electronic and open-outcry trading does not begin until 9:30 a.m. Central time, two hours after the release of crop production, crop progress, grain stocks, planted acreage and other potentially market-moving USDA reports.  The NGFA and NAEGA said they believe it would be "prudent" that such reports be released while futures and options markets -- including electronic trading -- are closed, or that there be a "break" in trading activity to give market participants an opportunity to assess and analyze information and adjust their market positions before trading resumes.  "Trading through the release of these reports could lead to extreme volatility immediately following their release," the NGFA and NAEGA said.  "Further, there is currently unequal access to USDA report data because of different Internet connection speeds and analysis capabilities."

-    The impact on back-office personnel, as well as computer and accounting systems, used to reconcile trading activity, given different closing times for open-outcry (1:15 p.m. Central for CME Group’s CBOT contracts) and electronic trading (4 p.m. Central for CBOT contracts and 5 p.m. Central for ICE).  The NGFA and NAEGA noted that the current 1:15 p.m. Central time closing for both open-outcry and electronic trading for CBOT grain and oilseed contracts provides sufficient time to allow firms to close out and reconcile their trading activities and perform required accounting and other back-office functions before electronic trading reopens at 6 p.m.  "If electronic trading remains open through the late afternoon or early evening, firms -- especially those operating in the Eastern time zone -- will be faced with adding personnel and/or paying overtime to work into the evening hours."  The NGFA and NAEGA also cited the difficulty confronting firms when trying to assess -- in an extremely short time period -- the types of software and systems changes that will be needed to accommodate expanded electronic trading hours and different closing times for open-outcry and electronic trading.

The two organizations also cited such practical concerns as:
-    How cash grain purchasers will price bids to producers when open-outcry trading is closed and settlement prices have been established, while electronic trading remains open.
-    The mechanics of how margin requirements will be determined by exchange clearinghouses given two different closing times -- one for open-outcry and the other for electronic trading.
-    Potential discrepancies between hedgers' cash market positions and their brokerage statements at the end of the trading day.

"We believe there is no compelling reason why 22-hour electronic trading needs to begin immediately," the NGFA and NAEGA concluded, noting that each of the issues raised would benefit from an opportunity for public comment and further dialogue with ICE and CME Group.  "It is much preferable that expanded hours and new contracts be analyzed in a deliberate fashion for effects on cash and futures markets, market volatility and producer-customer relationships than to rush to implementation unnecessarily."

CME Group Supports Giving Market Participants More Time Before Implementing Expanded Electronic Trading Hours, Provided Delay Applies to All Exchanges
In a statement issued in response to the NGFA and NAEGA's request to the CFTC, the CME Group said it was "suppoive of any measures that offer market participants additional time to prepare for expanded grain trading hours, provided all futures exchanges are subject to the same schedule for implementation of the new hours."  Saying it recognized that expanded electronic trading hours to 22 hours per day "represents a significant change for industry participants," the CME Group noted that it had been "working closely with the NGFA, other organizations and our customers to address these changes and help them prepare for the transition."



Survey: Consumers Not Avoiding Biotech Foods, Don't Want Labels
(from NAWG newsletter)

A new survey of U.S. consumer perceptions of agricultural technology shows a strong majority would be willing to purchase foods made with wheat produced using biotechnology if the innovations delivered nutritional or environmental benefits.

The survey was sponsored by the International Food Information Council (IFIC), which released the results Thursday.

Overall, most consumers surveyed indicated favorable or neutral impressions of plant biotechnology, with no one surveyed saying they are avoiding foods with biotech-derived ingredients.

Asked to describe what additional information they would like about food products, less than 1 percent of the survey respondents said they want to see information about biotech-derived ingredients on product labels.

Comparatively, nearly 9 percent of respondents said they’d like to see more about a food’s nutrition and about 6 percent of respondents said they’d like to see more about food safety. The vast majority, 76 percent, said they could not think of anything they’d like to see added to a food’s label.

The recent survey is IFIC’s 15th food technology survey since 1997, the longest running of its kind.

Compared to the last IFIC technology survey in 2010, the results of this survey show little change in attitudes among consumers with regards to their overall impression of using biotechnology in wheat to produce food products like bread, crackers, cereal and pasta.

Consumers indicated they are supportive of biotechnology when considering its potential benefits. For instance, about 70 percent of consumers surveyed this year indicated they would be willing to buy products made from wheat produced using biotechnology if it provided additional nutritional benefits or was grown using less land, water or pesticides. Because wheat is the most widely grown crop in the world and the source of 20 percent of the world’s food calories, these attributes could have tremendous benefits.

Wheat produced using biotechnology is not in commercial production anywhere in the world, and the introduction of biotech wheat is still an estimated seven to 10 years away.

However, scientists at public universities and private companies in the United States and around the world have increased their commitments to wheat improvement in recent years and are working with both conventional and biotech breeding tools to develop new varieties that will improve yield and reduce input needs.

The National Association of Wheat Growers, which represents U.S. wheat growers domestically, and U.S. Wheat Associates, which represents U.S. wheat growers in overseas markets, are committed to providing wheat farmers with the opportunity to utilize biotechnology to increase productivity while decreasing environmental impacts.

More about the wheat value chain’s work toward wheat biotechnology is at www.wheatworld.org/biotech and  www.uswheat.org/whatWeDo/tradePolicy/biotech.

More results from the IFIC technology survey are at http://www.foodinsight.org.



Global Biofuels Industry Projected to Support More Than 2 Million Jobs by 2020

The biofuels industry contributed $277.3 billion to the global economy in 2010, according to a report commissioned by the Global Renewable Fuels Alliance (GFRA). Authored by research firm Cardno Entrix, the report outlines the economic footprint of the biofuels industry and shows global biofuel production produced some 29 billion gallons in 2010, supporting nearly 1.4 million jobs.

The report projects the biofuel industry will produce more than 50 billion gallons and support over 2.2 million jobs by 2020.

The majority of future growth is expected to come from developing nations in Asia and Africa.

"It is promising to see the global biofuels industry growing during these difficult economic times," said Bliss Baker, spokesperson for GFRA. "The global biofuels industry is a bright spot in the current world economy and is contributing billions of dollars to output and creating hundreds of thousands of jobs all while reducing our reliance on crude oil."

Baker said a growing biofuels industry in developing nations will help bring jobs and prosperity while reducing reliance on oil, noting that the report demonstrates the how far the biofuels industry has come in the past decade, while showcasing the industry's continued growth.



CBO Study of U.S. Energy Security Underscores Need to Diversify Fuel Supply
A Congressional Budget Office report released this week by Senate Energy Chairman Jeff Bingaman (D-NM) asserts that having less flexibility in the choice of fuels contributes to the volatility of prices for transportation fuels.

"A substantial amount of oil is produced in countries that are vulnerable to disruptions resulting from geopolitical, military, or civil developments, and few countries other than Saudi Arabia have much spare production capacity in the near term to offset such disruptions," the CBO report states. "In contrast, the U.S. markets for natural gas, coal, nuclear power, and renewable energy either are less prone to long-term disruptions or have significant spare production and storage capacity."

Some nine percent of the energy consumed in the United States comes from renewables, and while most sources of renewable energy tend to be reliable, some sources, such as wind and solar, can experience short-term natural disruptions. But, the report notes, as the network of renewable-energy facilities expands and becomes more geographically diversified, temporary interruptions in one location could be offset by production from other locations.

Bingaman last October asked the CBO to study the factors that underlie energy security within the U.S. economy. Bingaman also asked CBO to highlight the types of policies that might be undertaken to reduce the U.S.’s vulnerability to energy market disruptions.

Released Wednesday, the study examined the various commodities used to generate energy in the United States, focusing on the two largest energy-consuming sectors of the U.S. economy – electricity and transportation.

"This report is a lucid look at those key factors," Bingaman said. "It illustrates why some of the slogans used in our energy policy debates actually don’t reflect how world energy markets work, and thus lead us away from the most useful steps we could take to improve our energy security."

Acknowledging the value of alternative fuel sources, such as biofuels, Bingaman said, "As many experts, and now the CBO, have repeatedly observed, every barrel of oil that we avoid using in the U.S. transportation sector makes our economy stronger, not to mention our personal pocketbooks, and less vulnerable to the volatility of the current marketplace."

Bingaman said the report underscores the need to keep increasing domestic oil production, "but the long-term solution to the challenge of high and volatile oil prices is to continue to reduce our dependence on oil, period."

He noted that reducing dependence on oil is a "a strategic vision that has been articulated and embraced in the past on a bipartisan basis – by President George W. Bush in his 2006 State of the Union Address and by a large bipartisan majority in Congress in the Energy Independence and Security Act of 2007. That bipartisan path is still the best approach today."

Report: Rising U.S. Oil Production Will Not Reduce Price Volatility, Military Commitment
Elsewhere in Washington, a message similar to that conveyed in Bingaman's CBO report was delivered by the Energy Security Leadership Council, a group U.S. business leaders and retired military officers.

In its report, the council asserts that increasing domestic production will not protect American consumers from volatile oil prices and will not decrease the nation's military commitments to protecting oil supply lines in the Middle East and in other unstable regions of the world.

The report says a hike in domestic oil production will reduce our trade deficit and provide jobs, but says oil will forever be a global market vulnerable to price shocks.

"The fact is that the world market ‑ on which the U.S. economy depends ‑ derives a significant quantity of its supplies from geopolitically risky countries in the Middle East and North Africa," the report states. "More broadly, the number of threats to oil flows is as high today as it has ever been, and the consequences of a disruption for the U.S. economy are just as dire."



ASA Shows Support of Transportation Bill Priorities for Ag Producers

As the House-Senate Conference Committee begins their work to develop a Surface Transportation Reauthorization bill, commonly referred to as the "highway bill," ASA has signed on to three letters to conferees in support of priorities for agricultural producers.

Maintaining and clarifying the hours-of-service exemption for agriculture is a top ASA priority for the highway bill. ASA and 18 other agricultural groups signed on to a letter supporting the hours-of-service exemption provisions, stating that without the hours-of-service exemption for agriculture, there could be severe disruptions to the delivery of critical farm supplies to farm operations during peak times of the year.

ASA also supports the Realize America’s Maritime Promise (RAMP) Act, which would ensure that monies collected in the Harbor Maintenance Trust Fund are utilized in full for their intended purpose of operations and maintenance, including dredging activities. ASA and 11 other agricultural groups signed on to a letter to conferees expressing support for inclusion of the RAMP Act provisions in the final highway bill. The provisions were included in the House-passed bill.

In addition, ASA was one of 12 agricultural groups on a letter to conferees in support of the freight rail provisions in the Senate-passed highway bill. These freight rail provisions are modest steps intended to provide a better balance between shipper and carrier interests in rail policy deliberations at the Surface Transportation Board (STB), and make the agency more accountable, transparent and effective. Specifically, these provisions require STB to post a report on pending complaints every three months; increase maximum relief in rate cases; establish time lines for rate cases; require a study on how STB will apply its revenue adequacy pricing constraint; and require quarterly reports to Congress on the status of regulatory proceedings. Taken together these provisions are intended to bring a better balance between carrier and shipper interests at the STB.



Farmers Eye Soy's Third-Largest Export Market

More than 75 million bushels of whole U.S. soybeans made their way to Japan last year, thanks to strong demand for quality soy. Next week, a delegation of U.S. soybean farmers representing the United Soybean Board (USB), the American Soybean Association (ASA) and the U.S. Soybean Export Council (USSEC) plan to honor the 50th anniversary of the Japan Oilseed Processors Association (JOPA). The organization has worked with U.S. soybean farmers to meet demand for U.S. soy in Japan.

Today's strong trade relations with Japan started in 1956, when a team of representatives of the Japanese soy industry visited the United States. Ever since, JOPA, which represents 20 Japanese oilseed processors, has been a key ally for the U.S. soy industry. Today, nearly 70 percent of Japanese soybean imports originate from the United States.

"Japan has grown to be one of our most valued customers," says Vanessa Kummer, USB chair and a soybean farmer from Colfax, N.D. "Because customers in Japan serve as one of our largest markets abroad, soy ranks as the top U.S. agricultural export and makes a large net contribution to the U.S. agricultural trade balance. The soy checkoff, along with my fellow farmers representing ASA and USSEC, mark this very symbolic milestone with our Japanese customers and remain committed to meeting their soy needs."

"Japan's oilseed processing sector has long been a trusted partner for American soybean farmers," says ASA First Vice President Danny Murphy, a soybean farmer from Canton, Miss. "The American Soybean Association opened its first overseas international market development office in Japan in 1956, and U.S. soy exports to Japan have grown to more than $1 billion annually today. We are honored to join our Japanese counterparts and colleagues in celebrating the accomplishments of the Japanese Oilseed Processors Association as it celebrates its 50th anniversary, and we look forward to continuing the Japanese-American partnership."

"Our partnership with the Japanese crushing industry, which is the third largest buyer of U.S. soybeans, is stronger than ever," says Roy Bardole, USSEC chairman and soybean farmer from Rippey, Iowa. "U.S. soy farmers take the relationship with JOPA very seriously. We are committed to do what we can to ensure another 50 successful years as their partner."

Prior to formal recognition marking JOPA's anniversary, the U.S. group plans to visit a soy processing plant and feed mill at a major port near Tokyo.



Small, Mid-Sized Tractor Sales Up in April

The Association of Equipment Manufacturers' monthly "Flash Report," shows the sales of all tractors in the U.S. for April 2012 were up 12% compared to the same month last year.  For the month, two-wheel-drive smaller tractor (under 40 HP) were up 17% from last year, and 40 & under 100 HP were up 12%. Sales of two-wheel-drive 100+ HP were down 4% from last year, and four-wheel-drive tractors were down 5% for the month.  Combine sales were down 24% for the month.

So far in the year 2012, a total of 54,512 tractors were sold, which compares to 51,956 sold through April 2011.  For the first four months, two-wheel drive smaller tractors (under 40 HP) are up 7% from last year, while 40 & under 100 HP are up 6%. Sales of 2-wheel drive 100+ HP are up 0.1%, while 4-Wheel Drive tractors are down 2% for the year.  Sales of combines for the first four months totaled 1,899, a decrease of 39% over the same period in 2011.



FFA Names 50 Individuals as the 2012 New Century Farmers

The National FFA Organization has selected 50 outstanding young people to participate in the 2012 New Century Farmer program. This exclusive, highly competitive program develops young men and women committed to pursuing a career in production agriculture.

Participants representing 24 states will take part in an intensive seminar July 8-14 in Johnston, Iowa. They will learn from each other and industry experts during a series of workshops and sessions. Topics will include the global marketplace, farm financing, demographic trends and risk management. New Century Farmers will hear from motivating and informative keynote speakers who will educate them on the risks and rewards involved with production agriculture. In addition to classroom learning, students will experience the latest developments in agricultural technology.

Among those selected include:
Nebraska - Travis Poppe, Megan Rice, Andrew Stech
Iowa - Joshua Hitzhusen, Rob Mensing
South Dakota - Maria Rausch, Ana Schweer

The New Century Farmer program is sponsored by Pioneer Hi-Bred, a DuPont business; Case IH; CSX Corporation; and Farm Credit; with media partner Successful Farming as a special project of the National FFA Foundation. The program is designed to provide participants with valuable skills and knowledge applicable to their own farming operations. In addition, they will build a network of colleagues that will benefit them throughout their careers.

The National FFA Organization provides agricultural education to 540,379 student members in grades seven through 12 who belong to one of 7,489 local FFA chapters throughout the U.S., Puerto Rico and the Virgin Islands.



A Reflection on Trade
Shannon Schlecht, U.S. Wheat Associates Director of Policy

World trade week begins May 14, providing an opportunity to recognize the importance of trade and how it affects each of our lives. For producers, consumers, exporters and importers, trade is not a one-way street. It requires the exchange of goods and services for a win-win partnership.

How often have you stopped to think about trade? For most of you, I expect many of the products you eat, wear and use every day were not made in your home country.

But trade is much more than just buying and selling these final products. Global supply chains take many inputs, perhaps some from your country and others not, to put together a finished product. Open trade policies allow end product manufacturers to benefit from materials and expertise located around the world. 

For agriculture, trade is especially significant. The World Trade Organization (WTO) estimated world agriculture trade at $1.4 trillion in 2010, representing roughly 10 percent of global goods traded that year. This is of particular important to wheat, as roughly 20 percent of global production is exported each year.

The United States produces reliably abundant wheat crops virtually every year. That wheat is in demand around the world, imported, processed into flour and then either consumed locally or exported as a finished product. U.S. wheat might also be exported to a country for use in aquaculture or feed rations, which, in turn, are used for seafood or meat products, which may be sold to yet another country. Open trade policies allow goods, like wheat, to move as a raw material or as a value-added food product to where in the world it is in demand. 

There is no doubt that trade provides benefits for you, me, farmers, consumers, exporters and importers around the world, by providing markets for our products as well as purchasing options at competitive prices. Take a moment during this next week to think about the impact of trade and share the story with others. 



“The Peoples’ Department: 150 Years of USDA”
USDA Secretary Tom Vilsack

On May 15, we will recognize the 150th anniversary of the founding of the U.S. Department of Agriculture.  On that date in 1862, President Abraham Lincoln signed into law an act of Congress establishing USDA.

Two and a half years after he established the Department, in what would be his final annual message to Congress, Lincoln called USDA "The People's Department."

President Lincoln knew the importance of agriculture to our prosperity – particularly at a time when about half of all Americans lived on the farm. And while that number today stands at about 2 percent, our values are still rooted in rural America.

As the United States has changed and evolved over the years, at USDA we have not lost sight of Lincoln’s vision. Through our work on food, agriculture, economic development, science, natural resource conservation and a host of other issues, USDA has impacted the lives of generations of Americans.

And over the past three years, we have furthered that commitment to this nation.

USDA has supported producers – making a record number of farm loans, maintaining a strong safety net, and expanding markets to drive record exports.

We’ve stood by rural communities – supporting more than 6,000 community facilities projects, providing more than 50,000 loans to help rural businesses create jobs, and investing in thousands of infrastructure projects that have delivered modern broadband, water and electric services to millions.

We’ve enrolled a record number of acres in conservation programs, and laid out a sensible new planning rule for 193 million acres of National Forests to promote job growth while conserving the environment.

USDA has continued its history of groundbreaking research. For example, we’ve invested about $320 million to accelerate research on the next generation of renewable energy – so we can create jobs and ensure America’s energy security for years to come.

And we’re helping families lead healthy lives. USDA provides nutrition assistance for one in four Americans, enabling them to put healthy meals on the table, even when times are tough, and we’re serving healthier school breakfast and lunch to 32 million kids a day.

Today, USDA truly remains a “Peoples’ Department” that touches the life of every American. Folks depend on us. That’s why I’m committed to leveraging the efforts of our Department and more than 100,000 hardworking USDA employees to continue creating jobs, supporting rural communities and helping our country prosper.

As we commemorate 150 years of accomplishments, USDA is looking forward to addressing the changing needs of agriculture and rural America.

For our small towns and communities looking to compete in a globalizing world, we’ll be there with access to broadband, critical infrastructure and support for new businesses.

USDA will continue its support for the next generation of renewable fuels and help promote advanced, bio-based products.

And we’ll keep working closely with America’s agricultural producers to maintain a dependable safety net for their work – which ultimately is connected to 1 in 12 American jobs – and ensure the food supply we need to feed a growing world population.

I hope Americans will join us in our commemoration of 150 years of USDA. This is a great time to learn about this Department’s contributions to the strength of our nation, and to see how we can continue to partner with Americans working to provide a better life for their families.

I invite everyone to visit www.usda.gov/usda150 to learn more about USDA’s history and our plans for the future – as the “Peoples’ Department” continues serving all Americans, every day and every way.