Thursday May 24 Ag News

AGP Announces CEO to Retire in the Fall 2012

Ag Processing Inc (AGP) a cooperative announced today that Marty Reagan, Chief Executive Officer and General Manager, has informed the Board of Directors of his plan to retire in early fall 2012.  Reagan will continue in his role as CEO until a successor is named and the transition in leadership is complete.

“After nearly 40 years in the agriculture/commodity business and having good health I look forward to spending more time with my family and friends,” said Reagan, who began his career with AGP in 1991 as part of the cooperative’s acquisition of the agricultural operations of International Multifoods. “I am very fortunate to have had the opportunity to lead and be part of a team comprised of employees and executives from AGP and its subsidiaries. AGP’s business platform, sales, and earnings continue to improve as we have been able to continually add value back to our cooperative members and their producer-owners. Our cooperative members and their producers are among the best owners any cooperative could ask for. AGP, with its dedicated employees and management team, is well positioned for the future to capitalize on domestic and international markets.”

“On behalf of the Board of Directors and everyone at AGP, I would like to thank Marty not only for his leadership over the past 12 years as Chief Executive Officer and General Manager, but also for the dedication and commitment he has given AGP throughout his tenure,” said Brad Davis, Chairman of the AGP Board of Directors. “Marty has created a work environment and business culture that has produced excellent results for this cooperative.”

“The Board is committed to conducting a thorough search to identify AGP’s next Chief Executive,” added Davis. “We have retained the services of AgriFind, a nationally recognized executive recruiting firm headquartered in St. Louis, Missouri to assist us in our efforts.”



USDA to Request Public Comment on Trading Hours Changes
(from NAWG newsletter)

USDA officials are considering how or if to change the Department’s crop progress reporting schedule following expansion of trading hours by major commodity exchanges.

The InterContinental Exchange, known as ICE, began 22-hour-a-day trading for some commodities earlier in the month, prompting the CME Group, parent organization of the Chicago Board of Trade (CBOT), to begin a 21-hour trading day. The Kansas City Board of Trade (KCBT) and the Minneapolis Grain Exchange (MGEX) have also expanded their hours.

These changes mean all major exchanges will be operational nearly all of the time, potentially heightening market volatility, particularly following the release of USDA reports outlining supply and production estimates.

The impact on wheat farmers is even more complicated to evaluate since most of them are in their fields, many participating in the earliest harvest in memory.

Secretary of Agriculture Tom Vilsack told reporters on Wednesday USDA would seek input from all stakeholders before making any decisions and described any possible reporting schedule changes as “complicated.”

USDA releases reports nearly daily, though the market watches some more closely than others.  The next round of the closely-watched crop production reports and the next edition of the World Agricultural Supply and Demand Estimates (WASDE) are scheduled for release on June 12.



President Obama Backs Renewable Energy Tax Incentives

Anne Steckel, vice president of federal affairs for the National Biodiesel Board, released the following statement in response to President Obama's speech today in Newton, Iowa:

"We were happy to hear President Obama reaffirm his support for renewable energy and biofuels to assist in achieving an all of the above energy strategy. We are eager to see the Administration continue to grow the economy in Iowa and across the United States by following through as quickly as possible on the EPA's proposal to increase biodiesel volumes under the Renewable Fuel Standard."

Last year, the RFS and the tax incentive helped the biodiesel industry produce a record volume of nearly 1.1 billion gallons, supporting more than 39,000 jobs across the country.

The EPA has proposed raising the RFS volume requirement for biodiesel to 1.28 billion gallons, but a final Administration decision on the proposal has been delayed since last fall, creating significant uncertainty in the biodiesel industry. The $1-per-gallon biodiesel tax incentive expired on Dec. 31.

Biodiesel Producers Scheduled to Visit Washington
More than 120 biodiesel leaders are scheduled to visit Washington DC the week of June 4th to call on Congress to extend the expired biodiesel tax incentive and to urge the Obama Administration to quickly finalize the EPA's proposal to grow biodiesel volumes under the Renewable Fuel Standard next year.

"Washington's failure to act on these two issues has effectively halted the momentum our industry built last year in producing a record of nearly 1.1 billion gallons," said Anne Steckel, vice president of federal affairs at the National Biodiesel Board. "It is locking up millions of dollars in investments that could be creating jobs, purchasing equipment and feedstock, and driving economic growth."

Biodiesel producers will specifically be calling for the Obama Administration to follow through with the EPA's proposal to increase the biodiesel volume requirement under the RFS to 1.28 billion gallons in 2013 - up from 1 billion gallons this year. Late last year, the Obama Administration delayed the decision.

"This is a proposal that has strong support from the EPA and USDA, and yet it has been caught up in a bureaucratic delay for nearly a year, without any explanation or justification," Steckel said. "It is blocking significant investment and hiring, so we are pleading with the Obama Administration to follow through with its 'all of the above' energy rhetoric by finalizing this proposal. It is something the Administration can do tomorrow, without waiting on Congress."

The Administration's delay on the RFS rule has come as Congress allowed the biodiesel tax incentive to expire on Dec. 31. The tax incentive has broad bipartisan support, and biodiesel leaders will be urging lawmakers on Capitol Hill to pass an extension as soon as possible.

"There is no magic bullet for fighting high gas prices, but we can chip away at the problem by diversifying our supplies through strong domestic energy policies like these," Steckel said. "We know these policies work."



Nearly 70 Groups Urge Congress to Block EPA Overreach

The National Cattlemen’s Beef Association (NCBA), Public Lands Council (PLC) and 67 other agricultural organizations, including more than 30 NCBA state and breed affiliate groups, sent a letter last week to all members of the U.S. Senate and the U.S. House of Representatives requesting they cosponsor the Preserve the Waters of the United States Act (H.R. 4965 or S. 2245). The two nearly identical bills would invalidate the Clean Water Act (CWA) jurisdictional guidance drafted by the Environmental Protection Agency (EPA) and the Army Corps of Engineers (Corps). According to NCBA President J.D. Alexander, the legislation would stop EPA’s intentional avoidance of the rulemaking process and Congress.

“The problem with EPA is accountability. This administration has made clear its preference to use guidance documents as opposed to going through the rulemaking process. This allows the activists turned government officials to avoid public scrutiny and bypass the consideration of legal, economic and unintended consequences,” said Alexander, who is also a Nebraska cattleman. “This is a clear violation of the Administrative Procedures Act.”

The document that triggered this bipartisan legislation was the CWA jurisdictional guidance. The draft, which was proposed by EPA and the Corps April 26, 2011, is expected to be finalized soon. The guidance essentially attempts to give EPA and the Corps jurisdiction over all types of waters and many features not waters at all. The guidance claims to provide clarity and certainty to landowners. According to PLC President John Falen, if the guidance is finalized, the only thing livestock producers can be clear and certain about is more federal regulation and costly permits.

“This is a direct hit on the private property rights of farmers and ranchers across this country,” said Falen, who is a Nevada rancher. “We will fight hard against this administration’s ongoing efforts to curtail the private property rights of farmers and ranchers by regulating them to the brink of bankruptcy. We commend the representatives for standing up for private property rights and the preservation of American agriculture.”

Alexander said despite three Supreme Court rulings and a letter from 170 members of Congress opposing the guidance, EPA and the Corps have “crowned themselves kings” of every drop of water in the country. He said these bills are the best path forward in preventing the guidance from becoming reality. H.R. 4965 was introduced by U.S. Congressmen John Mica (R-Fla.), Nick Rahall (D-W.V.), Frank Lucas (R-Okla.), Collin Peterson (D-Minn.) and Bob Gibbs (R-Ohio). The Senate version was introduced by U.S. Senators John Barrasso (R-Wyo.), Dean Heller (R-Nev.) Jim Inhofe (R-Okla.) and Jeff Sessions (R-Ala.).



Farm Families to Return to the Nation’s Capital with Educational Program 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.”

“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 so successfully 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 on this critical job.”

Corn farmers from 14 states 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, rather than directly influencing legislation and regulation.

"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 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.

“The response to the coalition’s proactive efforts to educate key audiences in Washington has been extremely positive since its inception,” said NCGA President Garry Niemeyer, an Illinois farmer. “As urban and suburban America gets further removed from the agricultural roots that made our nation strong, it becomes ever more important to reach out and maintain this connection.”

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.



Oil Bounces Back Above $90 Per Barrel

Oil bounced back Thursday, a day after falling below $90 per barrel for the first time in months.  Benchmark U.S. oil rose 76 cents to $90.66 per barrel in New York. Brent crude, which is used to price international oil varieties, increased 99 cents to $106.55 per barrel in London. 

Oil has fallen about $15 per barrel since May 1 and on Wednesday dropped below $90 for the first time since Oct. 21. That attracted some bargain hunters, analysts said, despite lingering uncertainty over future demand as China's economy slows and Europe's economy remains unsettled.

European leaders concluded a summit early Thursday with little agreement on how to fix the region's financial problems. Seven countries that use the euro are in recession, including Italy and Spain. Greece holds an election next month that could department if that country drops out of the eurozone, a developments many analysts feel will further destabilize Europe's economy.

Traders also kept watch on talks in Baghdad over Iran's nuclear program. Representatives of six nations, including the U.S., met with Iranian negotiators on Wednesday and Thursday. The talks ended Thursday with a plan to meet next month for another round of talks but agreement on little else.

In other trading, natural gas prices fell after the government said inventories continued to build last week. The supplies are about 38 percent above the five-year average while demand remains weak.  Natural gas dropped 9 cents, or 3 percent, to $2.65 per 1,000 cubic feet. Natural gas is still up 75 cents from a 10-year low reached in April, although it's still down $1.70 from a year earlier.  Heating oil rose 1 cent to $2.82 per gallon and gasoline futures rose less than a penny to $2.88 per gallon.

Meanwhile, retail gasoline prices fell less than a penny overnight to $3.676 per gallon, according to AAA, Wright Express and the Oil Price Information Service. That's about 17 cents less than a month ago.



Forbes Publisher Karlgaard to Keynote USGC Annual Meeting

The U.S. Grains Council today announced that Forbes publisher Rich Karlgaard will deliver the keynote address at the Council’s 52nd Annual Board of Delegates Meeting in Vancouver, Wash.

Throughout a long and distinguished business and publishing career, Karlgaard has championed innovation and thinking outside the box. A serial entrepreneur himself, Karlgaard contributes a regular column, “Innovation Rules,” to Forbes, in which he covers economic and technology trends, business transformations, and conversations with leading CEO’s. His best-selling book, Life 2.0, is an exploration of the transformative potential of modern technology, which empowers both individuals and communities to build success in unconventional, and often more personally fulfilling, ways.

“In today’s global competitive environment, Rich Karlgaard’s focus on innovation and transformation is a perfect fit for U.S. producers and agribusinesses,” said USGC Chairman Dr. Wendell Shauman. “The world is changing, fast. The global middle class is exploding in size, global food demand is surging, and new opportunities arise continuously. Thinking about change is something we need to do.”

The Council’s annual meeting will be held July 30-August 1 in Vancouver, Wash. Among the key issues for discussion will be the need for increased U.S. production, transportation, storage, and shipping capacity to serve rapidly growing markets in East Asia. The Pacific Northwest ports are second only to the Mississippi River system as an export channel for U.S. feed grains. With the emergence of China in the last two years as the fastest growing export market in the world for U.S. agricultural products, infrastructure improvements to the Pacific Northwest will become increasingly vital.



USDA Provides Funding to Cooperators for Pest and Disease Management and Disaster Prevention

Agriculture Secretary Tom Vilsack today announced that the U.S. Department of Agriculture will support 321 projects in all 50 states, plus American Samoa and Guam, that help to prevent the introduction or spread of plant pests and diseases threatening U.S. agriculture and the environment. The funding, totaling $50 million, is provided by Section 10201 of the 2008 Farm Bill.

"We are committed to partnering with our stakeholders to achieve our mutual goals of identifying and mitigating threats to American agriculture, enhancing our emergency response capabilities, and increasing public awareness of the danger of invasive pests and diseases," said Vilsack. "American agriculture supports 1 in 12 jobs in the United States and provides safe, affordable food to consumers. I am confident that the selected projects will help our farmers, ranchers and foresters continue to flourish and build upon these successes."

Over the last three years, over 600 Section 10201 projects have helped to protect American agriculture and educate the public about the threat of invasive species. Examples include:
-    developing eLearning modules for pest screening and increasing diagnostic capacity;
-    training canine teams to conduct surveillance at ports of entry;
-    supporting the 2011 national survey of honey bee pests and diseases; and
-    developing the Hungry Pests campaign—a targeted, nationwide invasive pest public awareness campaign.

USDA's Animal and Plant Health Inspection Service (APHIS) made a concerted effort to solicit project suggestions from states and U.S. territories, universities, federal agencies, nongovernmental organizations, private companies and tribal organizations. APHIS will offer funding to implement 322 projects in all 50 states, plus American Samoa and Guam. These projects will strengthen protections against agricultural threats and allow states to reallocate resources to other critical programs during these tough economic times. Examples of specific projects include among others a nationwide survey of honey bee pests and diseases, the monitoring of high-risk international and domestic pathways for invasive species, applied research to combat citrus pests, the development of detector dog surveillance programs in certain high-risk agricultural states, and targeted invasive species public outreach.

The FY 2012 funding plan, list of selected projects, and general feedback are posted at http://www.aphis.usda.gov/section10201.



Secretary Vilsack Names Members to the Council for Native American Farming and Ranching

Agriculture Secretary Tom Vilsack today announced the appointment of members to the Council for Native American Farming and Ranching, a committee created to advise him on ways to eliminate barriers to participation for Native American farmers and ranchers. The Council is being appointed as part of the Keepseagle settlement.

"The Council for Native American Farming and Ranching will help Native governments, businesses, farmers and ranchers and tribal governments partner with USDA to create jobs, drive economic growth and strengthen tribal communities," Vilsack said.

Keepseagle v. Vilsack was a lawsuit alleging that USDA discriminated against Native American farmers and ranchers in the way it operated its farm loan program. The Obama Administration worked to settle the lawsuit in 2010 and the settlement was subsequently approved by the court.

The Council will suggest changes to Farm Service Agency (FSA) regulations and also provide internal guidance or propose measures that would promote the participation of Native American farmers and ranchers in all other USDA programs and support government-to-government relations between USDA and tribal governments. The Council is a discretionary advisory committee established under the authority of the Secretary of Agriculture, in furtherance of the settlement agreement.

Those appointed to the Council include:
Lance Morgan, CEO of Ho-Chunk, Inc., (Winnebago Tribe of Neb.), Winnebago, Neb.
Michael Jandreau, Tribal Chairman, (Lower Brule Sioux Tribe) Fort Thompson, S.D.
Gilbert Harrison, Rancher, (Navajo Nation), Shiprock, N.M.
Henry Holder, Farmer/Rancher, (Choctaw Nation), Soper, Okla.
Gerald Lunak, Natural Resources Director, (Blackfeet Nation), Cut Bank, Mont.
Jerry McPeak, Farmer/Rancher and State Legislator, (Muscogee Nation), Warner, Okla.
Angela Sandstol, Natural Resources and Conservation official, (Native Tribe of Tyonek), Tyonek, Alaska
Edward Soza, Farmer/Rancher, (Soboba Band of Luiseno Indians), Banning, Calif.
Mary Thompson, Farmer/Rancher, (Eastern Band of Cherokee Indians), Cherokee, N.C.
Sarah Vogel, Civil Rights Attorney and former Agricultural Commissioner for North Dakota, Bismarck, N.D.
Mark Wadsworth, Natural Resources/Range Management, (Shoshone-Bannock Tribes), Blackfoot, Idaho

Four (4) USDA officials are also appointed to the Council:
Dr. Joe Leonard, Assistant Secretary for Civil Rights;
Janie Simms Hipp (Chickasaw Nation), Senior Advisor to the Secretary, Tribal Relations;
Bruce Nelson, Administrator, Farm Service Agency;
Chris Beyerhelm, Director, Farm Loan Programs, Farm Service Agency;

Members of the Council are appointed for two-year terms by the Secretary. The appointees include: Native American (American Indian and Alaska Native) farmers or ranchers; representatives of nonprofit organizations that work with Native farmers and ranchers; civil rights professionals; educators; tribal elected leaders; senior USDA officials; and other persons the Secretary deems appropriate.

The Council will hold its first meeting this summer. It will work with the Office of Tribal Relations, the FSA, and other USDA agencies to improve the success of Native farmers and ranchers who access USDA's entire portfolio of programs to build and achieve profitability in their businesses. Under Secretary Vilsack's leadership, USDA is addressing civil rights concerns that go back decades, and today's announcement of the appointment of the Council for Native American Farming and Ranching is another step toward achieving that effort.

The Council for Native American Farming and Ranching will provide guidance that will ensure that all Native American eligible applicants for USDA programs are served in an equal and fair manner. It will enable USDA to enhance business opportunities for Native American farmers and ranchers, tribal governments and the tribal communities they serve, and those interested in improving tribal economies through food and agriculture production.

Under Secretary Vilsack's leadership, USDA has instituted a comprehensive plan to strengthen the Department as a model service provider and to ensure that every farmer and rancher is treated equally and fairly as part of "a new era of civil rights" at USDA. He and President Obama have made it a priority to resolve all of the past civil rights cases facing the Department, and today's announcement is another major step towards achieving that goal. In February 2010, the Secretary announced the Pigford II settlement with African American farmers, and in October 2010, he announced the Keepseagle settlement with Native American farmers. Meanwhile, Secretary Vilsack continues to advocate for resolution of all remaining claims of past discrimination against USDA.