Friday May 25 Ag News

Beef Producers are Both Encouraged and Enthusiastic about Foreign Marketing Opportunities

This week, the U.S. Meat Export Federation (USMEF), contractor to the beef checkoff, is holding their annual meeting in New Orleans, La. Producers, packers, processors and exporters are both encouraged and enthusiastic about export markets as demand for beef remains very strong despite some of the domestic hurdles we’ve encountered in recent months and the ongoing challenge of market access. Today, USMEF regional directors provide updates from across the globe. 

Joel Haggard is senior vice president for the Asia/Pacific region.  Haggard says, “Everyone is anticipating new market access in Japan. I think that Japan also experienced an increase in import demand the second half last year – again that stabilized. There’s still concern over the safety of domestic product. On the beef side in Korea, interesting story. Although the BSE episode created relatively little consumption impact in most of the Asian countries, I would say in Korea it’s been quite significant. U.S. beef sales in Korea have been quite weak. We’re challenged in the Taiwan market because of the issue of ractopamine – there’s zero tolerance for any meat imported with traces of it. Just on China we – I think the U.S. beef industry looks very much forward to getting access to China. China’s beef imports as reported by their customs are going up again – they have record-high beef prices.”

John Brook has an update on beef exports to Europe, Russia and the Middle East. He says, “Beef in Russia is also performing well in the first quarter. Under the WTO agreement the country-specific quotas remain, but the U.S. government was successful in negotiating a significant increase in the beef quota for the United States to 60 thousand tons this year. The Middle East traditionally having been the major market for U.S. variety meats and beef livers, but now it’s seeing larger and larger quantities of muscle cuts and value meats moving to that area. To move on to Europe:  we’ve got better market access in Europe now. The duty-free beef quota will be expanded on the first of August from its current 20,000 tons to 48,200 tons. I feel very confident that U.S. beef has now made a very deep impression in Europe.”

Chad Russell concludes with news from Mexico and Central America.  He says, “Beef has been down this year 13 percent through March – they had a small uptick last year – but from the peak of 396,000 metric tons in 2008 which was the record level, we’re down now to 257,000 – a decline of 35 percent. And again, we’re down this year so far as well. I guess the one bright spot in terms of looking a little bit further out in the future, because of the severe drought, Mexicans have increased their slaughter of beef cattle last year by about 5 percent. They increased their exports of feeder cattle to the United States by about 50 percent – they exported almost 1.9 million head of feeder cattle to the United States last year. There’s going to be less Mexican beef in the marketplace today and into the future. Central America is a small market but it’s a dynamic market. For example, on high-quality beef cuts and offals, the Panamanian duty goes to zero upon implementation of the free trade agreement with Panama.”



UNL Extension Irrigation and Soils Courses Now Online at Marketplace.unl.edu

University of Nebraska-Lincoln Extension recently launched two online short courses on irrigation and soils at marketplace.unl.edu. The courses combine the convenience and flexibility of online learning with the opportunity to obtain continuing education unit (CEU) credits.

UNL Extension educator Chuck Burr said the virtual learning environment is especially suited for those whose schedules or location may prevent them from attending traditional extension training opportunities. The modules are intended for crop consultants, agency personnel, crop producers and others interested in improving their soil science or soil fertility management and irrigation management skills.

"UNL Extension still offers programs for those who prefer traditional, classroom style training," Burr said. "However, the new online course on irrigation management allows participants to learn at the click of a mouse."

UNL Extension educator Keith Glewen added, "The courses are designed to assist online learners in acquiring new knowledge. This in turn can result in management decisions which have a positive impact on financial and environmental outcomes."

The soils course aims to expand the participant's knowledge of soil science, including the origins, physical properties and chemical properties of soil. Understanding this information benefits those making management decisions related to soil fertility and crop production. This in turn can improve the efficiency of fertilizer applications, reduce nutrient loss and improve crop yields.

The irrigation management course will help increase awareness and understanding of irrigation management concepts. Agricultural water users can optimize water use efficiency and protect the quality of water resources by applying basic information about irrigation systems, crop water use and management practices.

Reducing irrigation application amounts and increasing uniformity of application leads to reduced deep percolation and runoff. The result can be reduced irrigation costs, increased efficiency, increased yields and reduced surface and groundwater contamination.


Formal admission to UNL is not required to enroll in the short courses. Register online at http://marketplace.unl.edu/extension/registration. The registration fee for each course is $50. CEU credit is available for an additional $10 per credit with a maximum of 13 credits per course.

Contact Chuck Burr at chuck.burr@unl.edu for details on the irrigation short course and Keith Glewen at kglewen1@unl.edu for information on the soils short course.



USDA Seeks Public Comment on Major Statistical Reports, Retains Current Release Times

The U.S. Department of Agriculture's Chief Economist Joseph W. Glauber announced today that USDA is reviewing release times for several major statistical reports due to recent changes in market hours by major commodity exchanges. The National Agricultural Statistics Service (NASS) and the World Agricultural Outlook Board (WAOB)—the USDA entities responsible for the reports—will seek public comment on the release times and procedures of their key statistical reports. In the coming weeks, USDA expects to publish a notice in the Federal Register advising the public of the comment period. USDA is reviewing release times of the following statistical reports: World Agricultural Supply and Demand Estimates, Acreage, Cattle, Cattle on Feed, Crop Production, Grain Stocks, Prospective Plantings, Quarterly Hogs and Pigs, and Small Grain Summary. The current USDA release times of 8:30 a.m. and 3:00 p.m. ET will remain in effect until further notice.

"It is important that USDA continue to ensure the integrity of its report release process, particularly as global exchanges move closer to 24-hour trading," said Glauber. "To this end, USDA is reviewing our procedures and will solicit public input to determine the needs of those who use our data."



CME Group to Expand CBOT Grain and Oilseed Open Out-Cry Trading Hours During USDA Crop Reports

CME Group, the world's leading and most diverse derivatives marketplace, today announced it will offer expanded floor trading hours in its CBOT grain and oilseed futures and options during major United States Department of Agriculture (USDA) Crop Reports, pending CFTC certification. The floor trading open will be changed to 7:20 a.m. CST, from 9:30 a.m. CST, on mornings of specified reports beginning June 12, 2012.

The major USDA reports that will initiate early opening include:
-    WASDE
-    Crop Production
-    Prospective Plantings
-    Acreage

The following dates will be affected for the remainder of 2012:
-    June 12 (WASDE, Crop Production)
-    June 29 (Acreage)
-    July 11 (WASDE, Crop Production)
-    August 10 (WASDE)
-    September 12 (WASDE, Crop Production)
-    October 11 (WASDE, Crop Production)
-    November 9 (WASDE, Crop Production)
-    December 11 (WASDE, Crop Production)

Products included in the expanded hours are CBOT Corn, Soybeans, Wheat, Soybean Meal, Soybean Oil, Oats, and Rough Rice futures and options.

Open-outcry trading hours will continue to close at the same time, 1:15 p.m. CST Monday to Friday.



USDA Announces Results for Conservation Reserve Program General Sign-Up

Agriculture Secretary Tom Vilsack today announced that the U.S. Department of Agriculture will accept 3.9 million acres offered under the 43rd Conservation Reserve Program (CRP) general sign-up. During the extended five-week signup, the Department received nearly 48,000 offers on more than 4.5 million acres of land, demonstrating the CRP’s continuing leadership as one of our nation’s most successful voluntary efforts to conserve land and improve our soil, water, air and wildlife habitat resources. Under Vilsack’s leadership, USDA has now enrolled nearly 12 million acres in the CRP since 2009. Currently, there are more than 29.6 million acres enrolled on more than 736,000 contracts.

“For more than 25 years, lands in CRP have helped to support strong incomes for our farmers and ranchers and produce good middle-class jobs throughout the country related to outdoor recreation, hunting, and fishing,” said Vilsack. “As the commodities produced by our farmers and ranchers continue to perform strongly in the marketplace—supporting 1 out of every 12 jobs here in the United States—it is no surprise that American producers also recognize the importance of protecting our nation’s most environmentally sensitive land by enrolling in CRP.”

Enrollment of the new 3.9 million acres will allow USDA to continue important targeting of CRP acres through continuous sign-up initiatives—including those announced earlier this year for highly-erodible land, as well as grasslands and wetlands—while also maintaining and enhancing the significant benefits that the program has already achieved. The two continuous sign-ups announced earlier this year will target an additional 1.75 million acres in total.

For the first continuous sign-up program, USDA encourages landowners with land that has an Erosion Index (EI) of 20 or greater to consider participating in the Highly Erodible Land initiative. Lands eligible for this program are typically the least productive land on the farm. In many cases the most cost-effective option to reduce erosion is to put the land into a wildlife friendly cover, which will improve habitat and reduce sediment and nutrient runoff and reduce wind erosion. For the second continuous sign-up program, landowners with sensitive grasslands, wetlands and wildlife habitat are encouraged to participate. The grasslands and wetlands initiative increases acres set aside for specific enrollments that benefit duck nesting habitat, upland birds, wetlands, and wildlife, and provides benefits for specific conservation practices, including new benefits for pollinator practices.

CRP is a voluntary program designed to help farmers, ranchers and other agricultural producers protect their environmentally sensitive land. Eligible landowners receive annual rental payments and cost-share assistance to establish long-term, resource conserving covers on eligible farmland throughout the duration of 10 to 15 year contracts.

CRP has a 25-year legacy of successfully protecting the nation's natural resources through voluntary participation, while providing significant economic and environmental benefits to rural communities across the United States. Under CRP, farmers and ranchers plant grasses and trees in crop fields and along streams or rivers. The plantings prevent soil and nutrients from washing into waterways, reduce soil erosion that may otherwise contribute to poor air and water quality, and provide valuable habitat for wildlife. Plant cover established on the acreage accepted into the CRP will reduce nutrient and sediment runoff in our nation’s rivers and streams. In 2011, as a result of CRP, nitrogen and phosphorous losses from farm fields were reduced by 623 million pounds and 124 million pounds respectively. The CRP has restored more than two million acres of wetlands and associated buffers and reduces soil erosion by more than 300 million tons per year. CRP also provides $1.8 billion annually to landowners—dollars that make their way into local economies, supporting small businesses and creating jobs. In addition, CRP is the largest private lands carbon sequestration program in the country. By placing vulnerable cropland into conservation, CRP sequesters carbon in plants and soil, and reduces both fuel and fertilizer usage. In 2010, CRP resulted in carbon sequestration equal to taking almost 10 million cars off the road.

USDA selected offers for enrollment based on an Environmental Benefits Index (EBI) comprised of five environmental factors plus cost. The five environmental factors are: (1) wildlife enhancement, (2) water quality, (3) soil erosion, (4) enduring benefits, and (5) air quality. The minimal acceptable EBI level for this sign-up was 209. The average rental rate per acre for this sign-up is $51.24.

In 2011, USDA enrolled a record number of acres of private working lands in conservation programs, working with more than 500,000 farmers and ranchers to implement conservation practices that clean the air we breathe, filter the water we drink, and prevent soil erosion. Moreover, the Obama Administration, with Agriculture Secretary Vilsack’s leadership, has worked tirelessly to strengthen rural America, implement the Farm Bill, maintain a strong farm safety net, and create opportunities for America’s farmers and ranchers. U.S. agriculture is currently experiencing one of its most productive periods in American history thanks to the productivity, resiliency, and resourcefulness of our producers.



Western Iowa No-till Field Day June 12

The annual Western Iowa No-till (WIN) Demonstration Field Day is set for June 12. This is the fifth field day to be held at the Carstens 1880 Farmstead, located just south of Shelby, Iowa. Registration and vendor displays will open at 8 a.m. with the program beginning at 9 a.m. Those with an interest in soil stewardship, whether looking for basic management ideas or a adding to long-time no-till practices, are encouraged to attend this daylong educational event.

Field day topics will include managing planter settings in heavy residue areas, use of cover crops to improve soil structure, a marketing update and weather outlook. Keynote speaker Paul Jasa, extension engineer with University of Nebraska -- Lincoln, will discuss techniques for successful long-term no-till systems for a corn/bean rotation, as well as continuous corn-on-corn. A steak sandwich lunch grilled by the Harrison County Cattlemen will be provided free of charge.

In addition to the educational sessions, there will be plenty of time for farmers to visit informational displays, vendor exhibits and to network with other producers. CCA credits also will be available for Certified Crop Advisors needing continuing education units.

There is no charge to attend this event, but pre-registration is required by June 7. Registration can be completed by emailing csgorham@iastate.edu or by calling the Harrison County Extension Office at 888-644-2105. Registrations also may be faxed to 712-644-2100 or be mailed to: ISU Extension Harrison County, 304 East 7 St., Logan, IA 51546.



USDA April 2012 Livestock Slaughter Report 

Commercial red meat production for the United States totaled 3.86 billion pounds in April, down slightly from the 3.87 billion pounds produced in April 2011.

Beef production, at 1.99 billion pounds, was 3 percent below the previous year. Cattle slaughter totaled 2.57 million head, down 6 percent from April 2011. The average live weight was up 25 pounds from the previous year, at 1,282 pounds.

Veal production totaled 9.9 million pounds, 3 percent below April a year ago. Calf slaughter totaled 56,500 head, down 4 percent from April 2011. The average live weight was down 1 pound from last year, at 295 pounds.

Pork production totaled 1.84 billion pounds, up 3 percent from the previous year. Hog slaughter totaled 8.83 million head, up 2 percent from April 2011. The average live weight was up 1 pound from the previous year, at 278 pounds.

Lamb and mutton production, at 12.9 million pounds, was down 10 percent from April 2011. Sheep slaughter totaled 181,200 head, 13 percent below last year. The average live weight was 142 pounds, up 4 pounds from April a year ago.

January to April 2012 commercial red meat production was 16.1 billion pounds, down slightly from 2011. Accumulated beef production was down 2 percent from last year, veal was down 8 percent, pork was up 3 percent from last year, and lamb and mutton production was up 2 percent.

April 2012 State total, % of April, 2011
Nebraska ..:  547.8 million pounds  - 101      
Iowa .........:  531.7 million pounds  - 101      
Kansas .....:  408.2 million pounds  -  96      



Two Iowa Farm Families Featured in Educational Program in Washington D.C. This Summer

The nation’s top crop and the farm families who grow it will return to the U.S. capital this summer for the fourth year in a row as part of the Corn Farmers Coalition educational program that debuts June 1, at Union Station, an important venue for reaching policymakers inside “The Beltway.”  Two Iowa farm families, the Lynch family from Humboldt and the Roeder family from Ida Grove will be featured in the educational program.

“Nine of the largest corn crops in U.S. history have been grown in the last decade by family farmers,” said Jay Lynch, a fifth-generation farmer from Humboldt, Iowa. “Corn is incredibly versatile, and our ability to grow it has made huge contributions to our economy and balance of trade. When people hear of this increased productivity in conjunction with the rapid environmental improvements coming from our family farmers, it gives them an important perspective.”

Corn farmers from 14 states, including Iowa, and the National Corn Growers Association are supporting the Corn Farmers Coalition program to introduce a foundation of facts seen as essential to decision making. The Corn Farmers Coalition is launching its major advertising campaign by taking over every available ad space at Union Station. The effort will also put prominent facts about family farmers in Capitol Hill publications, radio, frequently used websites, and other Metro locations in June and July.

"Direct outreach by farmers like me is putting a face on today's family farmers and raising overall awareness with legislators, leaders or governmental agencies from the Environmental Protection Agency to the Department of State, think tanks, lobbyists and environmental groups,” Lynch said.  “Awareness of the innovation, technology, and generations of accumulated knowledge on our farms today should be a part of our national dialogue about agriculture.”

The coalition will meet with media, members of Congress, environmental groups and others to talk about farming’s bright future: how U.S. farmers, using the latest technologies, will continue to meet the demands of a growing population and how this productivity can be a bright spot in an otherwise struggling economy.

For more information or to view the CFC ads, go to www.cornfarmerscoalition.org.



Ag Reform, Food and Jobs Act Officially Introduced in Senate

Senator Debbie Stabenow, chairwoman of the U.S. Senate Committee on Agriculture, Nutrition and Forestry, Thursday announced the Agriculture Reform, Food and Jobs Act of 2012 (S.3240) has been officially introduced in the U.S. Senate. The bill, authored by Chairwoman Stabenow and Ranking Member Sen. Pat Roberts, is a bipartisan bill that reforms U.S. food and farm policy to save taxpayers $23 billion while strengthening and streamlining programs to continue allowing the agricultural economy to grow. The bill was adopted by the Committee last month on a vote of 16-5, with broad bipartisan support.

"The Agriculture Reform, Food and Jobs Act of 2012 represents the most significant reforms of agriculture policy in decades. The Senate's farm bill will save taxpayers billions of dollars while helping America's agricultural economy continue to grow. By eliminating duplication and streamlining programs, the Agriculture Committee was able to continue investing in initiatives that help farmers and small businesses create jobs.

"This bill has strong bipartisan support from Senators across the country and I am looking forward to beginning floor consideration soon. We look forward to continuing to build on the Senate Farm bill's broad bipartisan support to enact a Farm Bill this year before the current one expires. Agriculture supports 16 million jobs in our country, and it is absolutely critical to provide farmers the certainty they need by passing a Farm Bill this year."



ASA Echoes President’s Call for Renewable Energy Tax Credit Extension

The American Soybean Association (ASA) joins its colleagues in the biodiesel industry in voicing its support for a call from President Barack Obama to renew tax incentives for companies producing renewable energy, including biodiesel. The president yesterday urged Congress to renew the tax credits while in Iowa, the nation’s largest producer of soybeans. While the bulk of the renewable fuel tax incentives mentioned by the president will lapse at the end of the year if not renewed, the biodiesel tax incentive expired on Dec. 31, 2011.

“President Obama has repeatedly expressed his support of increased production of clean, renewable, domestic energy sources like biodiesel as part of his ‘all-of-the-above’ energy strategy, and we join him in urging Congress to pass the tax credits for these producers. The biodiesel tax credit is a huge factor in encouraging more production of this energy source,” said ASA President Steve Wellman, a soybean farmer from Syracuse, Neb.

Approximately half of U.S. biodiesel is produced from soybean oil. Biodiesel is the only advanced biofuel that is currently commercially available in the U.S. and it provides significant economic, energy security, environmental and health benefits. With the aid of the tax incentive last year, the biodiesel industry produced a record volume of nearly 1.1 billion gallons, supporting nearly 40,000 jobs nationwide.

In addition to cheering the president’s call for extension of the tax credit, ASA urges the Obama Administration to approve the EPA’s proposal to raise the 2013 Renewable Fuel Standard (RFS) volume requirement for biodiesel to 1.28 billion gallons. The RFS is currently set at 1 billion gallons for 2012.



EPA Won't Stop RFS Cellulosic Mandate

The Environmental Protection Agency on Friday denied a request from the American Petroleum Institute to eliminate mandates for biofuels that are not available commercially and continues to fine the refinery industry, API said.

"EPA's mandate is out of touch with reality and forces refiners to pay a penalty for not using imaginary biofuels," said Bob Greco, API's director of downstream and industry operations, referring to cellulosic ethanol.

The Clean Air Act requires the EPA to determine the mandated volume of cellulosic ethanol each year based on what is available. However, in 2011, EPA required refiners to use a volume of 6.6 million gallons of cellulosic ethanol even though that volume was not available commercially. EPA still is empowered to fine the refiners for the fuel, however. In 2011, the bill is $1.13 gallon for a net charge to the petroleum industry of $7.458 million.

EPA today denied API's 2011 petition for reconsideration of the mandate and continues to mandate fuels even though they are not available that year, API said.

EPA's 2012 rule requires that refiners and importers of gasoline and diesel must use 8.65 million gallons of cellulosic biofuels despite a lack of commercial fuel supply, API said.

"The fact that EPA continues to mandate these biofuels that do not exist is regulatory absurdity and bad public policy," Greco said.



Farmers And Ranchers Lead Discussion On Food Production, Popular Culture And Science At The Food Dialogues: Los Angeles

Farmers and ranchers are headed to Los Angeles – the entertainment capital of the world – for the second Food Dialogues event, June 20-21, 2012.  Four separate discussions – held over two days – will bring together entertainment movers and shakers, chefs, academics, large restaurant operators, journalists, local leaders, farmers and ranchers for an in-depth conversation about food.  All panel discussions taking place at the event entitled, "Lights, Camera, Food: Perceptions and Realities of Farming and Ranching in America," will be available online (either live streamed or taped) at www.fooddialogues.com.

"We are pleased to bring this type of conversation to the forefront in a pivotal location like Los Angeles," said Bob Stallman, chairman of USFRA and president of the American Farm Bureau Federation.  "We chose Los Angeles because of the influence the region and its opinion leaders have on popular culture and trends that affect the entire nation – including how we view our food. These in-depth discussions will not only move the conversation forward about how food is grown and raised, but it will also give those in the agricultural industry the opportunity to learn more from consumers and their needs and expectations for the food-growing industries."

USFRA will announce the full list of panelists prior to The Food Dialogues events in Los Angeles. Two of the four panel discussions will stream live online on both Wednesday, June 20 and Thursday, June 21 from 10 a.m. to 12 p.m. PDT, providing opportunities for farmers, ranchers and the general public to register to watch and participate in the discussion online. Additionally, individuals with a Twitter account can follow all of the panel discussions by following @USFRA using #FoodD.  The full list of panels is as follows:

Day One – Wednesday, June 20, 2012 -

Hollywood and "Vine": The Intersection of Pop Culture and Food Production
Panel Description: Cooking shows, food competitions, online content, books and documentaries – these are only a few examples of the many ways the entertainment world is addressing the topic of food.  But, as more Americans turn to entertainment to influence their food-purchasing and consumption decisions, are they getting the full story? Are these entertainment properties providing content that is fair or accurate? Has entertainment played an important role in our society by raising people's consciousness about food?  Should farmers and ranchers be a bigger part of entertainment ventures? This event will feature entertainment decision-makers, farmers and ranchers for a conversation about the portrayal of food and agriculture in popular culture.

Meeting of the Minds: Touring Hollywood's Urban Farm 
Panel Description: Communities across America, including major metropolitan areas, are embracing urban farms and community gardens. The role these urban farms play is important to the communities where they operate, often addressing a larger societal/community need. Equally important is the direct connection the farm/garden gives to consumers interested in learning more about how food is grown and raised.  What can larger, conventional farms learn about best practices from urban farms – and vice versa?  Join farmers and ranchers – large and small, urban and rural, as they tour Wattles Farm in Hollywood. This intimate discussion will take a look at best practices and shared techniques, no matter the farm size, and the role that urban farms/community gardens play in feeding the stomachs and souls of American communities.  And discover how rural and urban farmers can work together to provide healthy choices for people everywhere.

Day Two – Thursday, June 21, 2012

The Great Debate: Science, Technology and Food
Panel Description: What technologies are farmers and ranchers using to produce food while protecting the environment? Is more research the answer to biotechnology in agriculture? Join a panel of leading scientists and academics, farmers, ranchers and thought leaders for a dynamic conversation about the role science and technology play in agriculture.

The REAL Chef Challenge: Understanding How Food is Grown and Raised
Panel Description: Each day, individuals across the food chain – from farmers and ranchers to grocers and chefs – play unique roles in delivering the food we eat. How have these roles changed given Americans' appetite for more information and preferences about how their food is sourced?  What unique circumstances and challenges must be addressed in order for chefs, restaurateurs and grocers to continue delivering products their customers want?   Do chefs have enough access to the farmers who grow and raise our food?  This intimate roundtable will bring together farmers, ranchers, chefs, and others to discuss how food sourcing impacts how they grow, raise, buy and serve healthy choices for people everywhere. 

For additional information about USFRA and The Food Dialogues events taking place in Los Angeles, visit www.fooddialogues.com. 



Atrazine Lawsuit Settlement Affirms Safety of the Herbicide

The settlement of a lawsuit against Syngenta related to the herbicide Atrazine ensures that corn farmers who depend on the important product continue to farm efficiently and safely, the National Corn Growers Association said.  While NCGA is concerned about the longer term impacts of unmerited class-action lawsuits against agricultural production, it is important that this case was resolved with an acknowledgement of the safety of atrazine.

“We’re relieved that a settlement has been reached that will allow our farmer members to use this proven and safe tool on their farms,” said NCGA President Garry Niemeyer. “Atrazine safety has been verified by thousands of studies and numerous reviews by the U.S. Environmental Protection Agency, and we’re happy to have this nuisance lawsuit behind us so our growers can move forward and do what they do best – help feed and fuel the world, sustainably.”

According to the settlement, the scientific evidence continues to make it clear that no one ever has or ever could be exposed to enough atrazine in water to affect their health when the product is used according to its label. The plaintiffs acknowledge that they have not commissioned and are not aware of any new scientific studies relating to the safety of atrazine. In addition, Syngenta reports that the cost of the settlement to the company is $105 million. According to local news, lawyers for the plaintiffs are expected to receive $35 million of this settlement.



China May Soybean Imports Likely 7.23 Mln Tons

China's May soybean imports will likely reach 7.23 million metric tons, the Ministry of Commerce said Friday.  The estimates were revised up from a previous forecast of 5.63 million tons, based on reports from importers during the May 1-15 period, it said in a statement on its website.  If realized, the figure would be an all-time high.

The ministry also said soybean imports may hit 5.16 million tons in June.

The ministry issues the estimates twice a month.  Its regular forecast may not tally with the actual import figure as it doesn't include all cargoes.



China 2012-13 Corn Imports Likely Up 75%

China's corn imports may rise 75% to around 7 million metric tons in the marketing year that begins July 1, the International Grains Council said Friday.

The IGC kept China's corn import estimate unchanged for 2011-12 at 4 million tons but raised its forecast for 2012-13 from 6 million tons to 7 million tons.

The IGC also raised its forecast for China's 2012-13 wheat imports by 20% to 1.8 million tons, although it remains lower than the 2.8 million tons it estimated for the year ending June 30.

The expansion of the industrial use of corn in China is expected to remain strong, due to solid demand for starch sweeteners and "baiju," a distilled alcoholic beverage, it said.  China's use of corn in the year starting Oct. 1 for industrial purposes is forecast to rise 6% to 53 million tons, while its use of corn for animal feed is forecast to rise 2% to 129 million tons.

Its stocks on Oct. 1 are forecast at 57.4 million tons, up 6.7% on year.

Due to high corn prices, farmers are switching from cotton and soybeans and China's corn acreage is forecast to increase by 1 million hectares to 34.4 million hectares, IGC said.  Assuming yields at a five-year average of 5.5 tons/hectare, production is forecast around 189 million tons, up 3 million tons from an earlier estimate of 186 million tons but still 1.5% lower on year.

Warm conditions with scattered rains benefited spring wheat development in northeast China. The total wheat area is projected to be little changed on year at 24.3 million hectares in 2012-13, including 22.7 million hectares sown to winter varieties.  Based on average yields, wheat production is forecast at 116 million tons in 2012-13, almost unchanged from 117.9 million tons a year earlier.



Senate Armed Services Panel Adopts Ban on Military Biofuel Purchases
The Senate Armed Services Committee this week approved amendments to a fiscal 2013 Defense Authorization bill that would preclude the military services from investing in advanced biofuels.

Opponents of the measures, which were both adopted by the Senate panel by narrow margins, said they would take their fight to the Senate floor.

The committee adopted a provision that would ban military spending on alternative energy or environmental programs unless the Defense secretary determines that a program "will reduce casualties, is necessary to protect human health and the environment and is cost-effective." The amendment is similar to an amendment in the House version of the authorization measure approved there earlier this month that would prevent the DOD from purchasing biofuels that cost more than petroleum, unless the biofuels are bought for narrow and specific testing purposes.

The Senate panel also adopted an amendment that would bar the Department of Defense from funding the construction of biofuel refineries unless it is expressly authorized by Congress. The measure targets a Navy plan to invest $170 million in an interagency project announced last year with USDA and DOE designed to accelerate the production of advanced marine and aviation biofuels. The three agencies would pool up to $510 million over the next three years to help construct or retrofit drop-in biofuel plants and refineries. Officials expected industry to match government funding, driving the investment in excess of $1 billion.

The amendments from Sen. James Inhofe (R-OK) and John McCain (R-AZ), respectively, are said by biofuel industry advocates to be partisan attempts to target President Obama in a presidential election year. Both have asserted the president is using the military to pursue a "green agenda," a phrase turned by Republicans to allege the administration is pushing an environmental campaign at the expense of efforts to restore an economy still reeling over a two-year recession.

Armed Services Committee member, Sen. Mark Udall (D-CO) promised to fight the when the bill moves to the floor of the Senate. "Some of my colleagues chose to stifle DOD's incredible work on developing new energy technologies that will help to break our dependence on fossil fuels and protect our troops in harm's way," he said in a statement. "We took a big step backwards, but I will be bringing this fight to the floor."

The DoD has long asserted that the work with biofuels is not political but, in fact, critical to energy and national security. "The Navy does not intend to purchase alternative liquid fuels for operational use until they are price competitive with petroleum-based fuels," Chief of Naval Operations Adm. Jonathan Greenert wrote in a letter last week to Udall. "The Navy needs flexibility to continue the testing and certification of all potential alternative fuel pathways."

The White House cited the biofuel purchase restrictions among other provisions in the bill when suggesting last week, after the House passed its version of the bill, that it would veto the measure.

Defeated in the Senate committee markup Thursday was an amendment that would waive the DoD's compliance with a "Section 526" waiver banning federal agencies from purchasing alternative fuels that have greenhouse gas emissions higher than those produced by petroleum. Biofuels industry officials say the measure could have allowed military purchases of alternatives like liquid coal, undermining efforts to accelerate the development of advanced biofuels.

A joint statement from industry, farm and public policy organization groups was issued in reaction to the committee votes. The Advanced Biofuels Association, Algal Biomass Organization, Airlines for America, American Farm Bureau Federation, Biotechnology Industry Organization, Growth Energy and the Pew Charitable Trusts said that "continued reliance on foreign oil puts U.S. national security at risk. Oil market volatility has already wreaked havoc on military budgets, which came at the cost of new equipment and training for our troops and reduced military readiness.

"In fiscal years 2011 and 2012, DoD came up $5.6 billion short in its budget for military operations and maintenance because it spent more on fuel than anticipated. Moreover, the United States sends $1 billion overseas each and every day to pay for foreign oil, further draining resources from the U.S. economy," the statement continued.

"U.S. advanced biofuel producers have made rapid progress toward cost-competitiveness. The per-gallon cost of test quantities of advanced biofuels under DoD contracts has declined more than 90 percent over the past two years and will continue to decline as these technologies scale to commercial production," the groups said.



Wind Power Can Save Midwestern Consumers $3-$9.5 Billion Annually by 2020

Adding more wind power to the electric grid could reduce wholesale market prices by more than 25 percent in the Midwest region by 2020 according to a new analysis conducted by Synapse Energy Economics on behalf of Americans for a Clean Energy Grid.

The report found that wind power could drive down the wholesale price of power by $3-$10 per megawatt-hour (MWh) in the near term and up to nearly $50 per MWh by 2030. The savings would be passed along to consumers through lowering retail electricity prices by $65-$200 each year.

The analysis also found that new transmission is needed in the region to tap wind power. But the research also showed that investments in transmission are small compared to the savings they would reap, providing more than a 2 to 1 return on investment throughout various scenarios.

"This analysis illustrates a basic fact about our power system – building transmission to unleash cheaper, domestic resources makes strong economic sense," said John Jimison, managing director of the Energy Future Coalition and Americans for a Clean Energy Grid. "Transmission makes up the smallest sliver of the electricity bill, but can make power markets more competitive and drive down costs for everyone. Midwestern states where some of the most valuable and abundant wind power can be found have a real opportunity to capitalize on these findings and continue investing in the infrastructure they need to facilitate additional generation of clean power."

In order to efficiently operate wind turbines that produce lower-priced power, the Midwest must invest in transmission infrastructure to move this electricity from where it is produced to where it is used, according to the research.

Synapse found that building out the transmission system will have a small impact on retail rates, resulting in an increase of only 0.1 to 0.5 cents per kilowatt-hour by 2021. But, researchers say, the modest increase would be dramatically offset by the greater price savings achieved from adding wind generation to the electric system.



Airlines Launch Effort to Push Aviation Biofuel Development in Midwest

Airlines, a jet fuel refiner, an aviation agency and a funding organization have linked in an effort to accelerate the development of sustainable aviation biofuels in the 12-state Midwest region.

United Airlines, Boeing, Honeywell's UOP, the Chicago Department of Aviation and the Clean Energy Trust this week announced the formation of the Midwest Aviation Sustainable Biofuels Initiative (MASBI).

Citing the Midwest's "significant promise for biomass feedstock, technology development, job creation and sustainable commercialization," industry leaders say the initiative "will deliver a comprehensive evaluation of the region's biofuel potential and a plan to support regional and national needs in a responsible manner."

An advisory council will include national leaders in advanced biofuels, such as USDA, the Navy and other federal agencies, as well as non-governmental organizations and academic institutions.

"In just a few short years, aviation biofuels have developed from a hopeful vision of the future to an exciting reality of more than 1,500 passenger flights flown with advanced biofuels," said Jimmy Samartzis, managing director of Global Environmental Affairs and Sustainability for United. "Our industry is committed to advancing sustainable biofuels, and United is proud to launch MASBI with our partners to define appropriate solutions to make alternative fuel available at commercial scale, unlock the Midwest's economic potential for advanced biofuels and secure a sustainable future for aviation."

Citing the Midwest's "strong agricultural, financial and academic institutions, and large aviation industry presence," initiative steering committee members see the region as critical for biofuel development, noting that airlines operating in the Midwest transport more than 234 million passengers and consume nearly three billion gallons of jet fuel annually.

"Aviation's ability to connect the world to people, goods and services through the heartland of the country contributes significantly to the nation's economy and job growth," said Billy Glover, vice president of Environment and Aviation Policy for Boeing. "Biofuels are a critical part of commercial aviation's long-term fuel-diversification strategy, enabling sustainable growth and improving its overall environmental performance."

Organization stakeholders are developing a feasibility study and an action plan to advance the biofuels industry in the Midwest.



Gevo Announces Startup of World’s First Commercial Biobased Isobutanol Plant

Gevo Inc. Thursday announced the startup of the world’s first commercial biobased isobutanol production plant, located in Luverne, MN. Company officials say the plant should be producing up to 1 million of the drop-in fuel per month by the end of this year.

"The startup of our Luverne plant represents a major milestone for the industry and validation of our commitment to commercially produce biobased isobutanol in the first half of 2012," said Dr. Patrick Gruber, CEO of Gevo. "The next milestone will be to successfully ship product to our customers."

Gevo retrofitted the Luverne plant to incorporate its proprietary yeast and fermentation technology to use feedstocks like agricultural residues and produce biobased isobutanol, a drop-in fuel that also serves as a precursor to the production of plastics, among other materials. Through initial operation of the Luverne plant, Gevo expects to advance its learning of large-scale production of renewable isobutanol at the site maintaining a goal of producing isobutanol at a run rate of approximately 1 million gallons per month by yearend 2012.

Gevo say it expects to reach full-capacity run rates of 18 million gallons per year by the end of 2013. "This ramp up in production is actually fast for a new technology," said Gruber, citing the ability to retrofit an existing ethanol plant – as opposed to building a new facility ‑ as key to the quick launch timeframe.



“FFA Rally to Fight Hunger” Planned for 2012 Convention

The National FFA Organization announced plans for an “FFA Rally to Fight Hunger” at the 2012 National FFA Convention and Expo, Oct. 24-26, to help feed children and adults suffering from food insecurity. Launched as part of the organization’s “Feeding the World–Starting at Home” initiative to fight hunger, the rally will engage as many as 10,000 FFA members from across the country and local volunteers. Their goal is to package one million meals at Lucas Oil Stadium in Indianapolis to combat hunger.

Working with Kids Against Hunger, a humanitarian food-aid organization, FFA members from across the nation will assemble meals and gather additional supplements to provide relief from hunger and malnutrition. Approximately half of the meals will be distributed in the Indianapolis area. Others will be shipped to designated locations domestically and internationally.

Distributing a portion of the meals in Indianapolis has special significance. “Part of our purpose is to thank Indianapolis for seven years of solid support as the host city of our national FFA convention,” said Dwight Armstrong, CEO of the National FFA Organization. “We believe no one is better positioned to address hunger than the FFA members preparing to be tomorrow’s leaders in providing food and nutrition for a growing planet.”

During the rally, as many as 10,000 FFA members will take part in hour-long shifts over the three-day period. In addition to packaging meals, members will learn about the causes and issues of hunger, and they will receive information on how to conduct their own hunger-fighting efforts in their home communities.

The “FFA Rally to Fight Hunger” will launch the organization’s “Feeding the World–Starting at Home” initiative to combat hunger in the U.S. and around the globe. FFA chapters across the country are developing sustainable hunger-related projects that provide assistance to local residents. FFA members receive hands-on experience in production agriculture and agribusiness while assisting the communities in which they live. They are involved in all facets of these service projects, from planning and design to implementation and marketing. “Feeding the World–Starting at Home” is an initiative of the National FFA Organization and sponsored in part by Farmers Feeding the World and Tractor Supply Company through the National FFA Foundation.

Through “Feeding the World–Starting at Home”, agriculture students will understand the issues and effects of hunger and then take action to support the human right to safe, affordable and nutritious food. The initiative will leverage FFA programs that develop leadership, personal growth and career success to fight the root causes of hunger. These include student and advisor workshops, global experience opportunities, hunger-fighting grants, internships and educational resource networks. “Hunger is the right issue for FFA, and it’s fully aligned with our values and vision,” said Ryan Best, 2011-2012 National FFA President. “What FFA members learn in Indianapolis at the rally will prepare them to continue fighting hunger in more than 7,500 local communities. Hunger is a battle that we must win.”

Additional information about the “FFA Rally to Fight Hunger” will be made available in the coming months describing how FFA members and community volunteers can register to participate in this exciting and impactful event.