Tuesday May 22 Ag News

Director Ibach’s Statement on the Farm Bill

Nebraska Agriculture Director Greg Ibach today offered the following statement on the progression of the new federal Farm Bill.

"I want to extend my appreciation to the House Agriculture Committee for the thoughtful discussion held last week and throughout the past month during hearings on several titles of the new farm bill.  I applaud Committee leaders for including several Nebraskans among the experts chosen for the hearing panels.

"It is crucial the Committee now move expeditiously to put forward a bill.  Timely action on new farm policy will allow Nebraska farmers and ranchers to appropriately plan for future production seasons, without the uncertainty that would come if a bill was not advanced and current program authorities were to expire.

“I look forward to legislation that maintains a safety net through sound risk management programs; contains streamlined conservation programs that help producers support our clean air, our water and productive soils; and continues trade programs that aid in market development and facilitation of overseas sales.

“I urge our federal Congressional leaders to take the steps necessary to move farm bill legislation forward. It is critical to our task of ensuring food, energy and fiber for our state, nation and world.”



FSA County Committee Election Boundaries & Nomination Period

Thurston Farm Service Agency (FSA) County Executive Director, Josie Waterbury, announced that county committee election nominations will begin June 15, 2012.  Farmers, ranchers, and landowners are encouraged to nominate farmer and rancher candidates to serve on their local FSA county committee by the August 1, 2012 deadline. 

"I encourage all farmers, ranchers, and landowners to participate in the county committee election process by nominating candidates by the August 1 deadline," said Waterbury.  "County committee members are a valuable asset because they are local producers who participate in FSA programs themselves and have a direct connection to farmers and ranchers in the community.”

To be eligible to serve on the FSA county committee a person must participate or cooperate in a program administered by FSA, be eligible to vote in a county committee election, and reside in the local administrative area in which the person is a candidate.  Local Administrative Area #3 is up for election in 2012 and consists of Omaha, Blackbird, Dawes, and Anderson townships. 

Producers may nominate themselves or others, and organizations representing minorities and women may also nominate candidates.  To become a candidate, an eligible individual must sign the nomination form FSA-669A.  The form and additional information about FSA county committee elections are available online at http://www.fsa.usda.gov/elections or you may visit your local FSA office to obtain a copy.  Nomination forms for the 2012 election must be postmarked or received in the local FSA office by close of business on August 1.

FSA county committee members are reimbursed for their time and travel to participate in meetings at the Thurston County FSA Office.  Elected county committee members serve a three-year term and are responsible for making decisions on FSA disaster, conservation, commodity, and price support programs, as well as other important federal farm program issues.

Election ballots will be mailed to producers beginning November 5, 2012.  The voted ballots are due back to the local county office via mail or in person by December 3, 2012. 

For more information about county committees, visit www.fsa.usda.gov.



Rootworm Egg Hatch has Begun in Southeast Nebraska
Robert Wright, Extension Entomologist, Lincoln

Lance Meinke, UNL entomology professor, found 1st instar western corn rootworm larvae in corn roots dug on May 7 at the ARDC near Mead in Saunders County. Rootworm larvae were also detected on May 10 at UNL’s South Central Ag Lab near Clay Center, the first day they were sampled. This is the earliest recorded initial egg hatch at the ARDC since recording began in 1985. Based on Meinke’s records since 1985, the previous earliest initial hatch was May 22 and the latest was June 16. On May 21 a CropWatch reader from Hiawatha, Kan., reported finding adult western corn rootworm beetles in a corn field 9 miles southeast of Rulo, Neb. The beetles were causing leaf damage in V4 corn. This was the earliest date in 20 years that the seed company representative had found rootworm damage. He also found cloverworm in V2 soybeans.

Entomologists at Purdue University reported similar findings for this year, with rootworm egg hatch beginning May 4-6 in Indiana. Egg hatch may begin somewhat later in northeast Nebraska and in western Nebraska.

Egg hatch can occur over an extended period (five to six weeks) and some continuous corn could be attacked by larvae at very early growth stages in 2012. Weather patterns in May will determine how spread out the hatch period will be and how early adults will emerge. We could see some adults by mid-June this year. If corn has not silked when adults begin emerging, adults will feed on corn leaves, scraping off the surface green tissue, producing window pane-type injury.

Southern corn rootworms, which overwinter as adults and annually migrate into Nebraska, were observed fairly early this year and gravid females were  collected in April at the ARDC. These females may lay eggs in the soil before corn emerges around winter annual weeds. In previous years hey have been found damaging first year corn in southern Nebraska, so it is possible that southern corn rootworm larvae are also present in some areas (could be in first-year or continuous corn). Southern corn rootworm larvae are very difficult to distinguish from western and northern corn rootworm larvae when small, but produce similar damage to corn roots when present.

Forecasting Stalk Borer Growth Stage
Scouting for common stalk borers should be underway across much of southern and east central Nebraska, based on accumulated degree days since January 1. Growers in southeast Nebraska should be determinining the need for treatment, based on scouting numbers.  Based on research at Iowa State University, stalk borer egg hatch begins at about 575 DD and ends at 750 DD. Begin scouting corn when 1,300-1400 DD have accumulated. This corresponds with the beginning of larvae moving out of grassy hosts. Determine the need for treatment when 1,400-1,700 DD have accumulated.



Southeast Nebraska Wheat Variety Tour May 29 near Wilber

Learn the latest information on wheat varieties and see how 30 varieties performed at a May 29 field day. Dennis Broz of Wilber will be hosting the southeast Nebraska UNL Extension Wheat Variety Plot tour. The event will begin at 6 p.m. with a complimentary meal at the field site, followed by a field tour at 6:30 p.m. The research plot includes several experimental numbers.

Tour stop speakers will include:
-    Teshome Regassa, UNL Extension Educator who manages the UNL wheat variety trials, will answer grower questions.
-    Stephen Baenziger, UNL professor and wheat breeder, will discuss variety options for southeast Nebraska. This is the earliest wheat season since Baenziger started keeping wheat breeding records. The expected early harvest will give growers an expanded window of time for double crop options,” said Pryor.
-    Stephen Wegulo, UNL extension plant pathologist, is following the spread of stripe rust and barley yellow dwarf diseases in southern Nebraska and will discuss wheat disease management.
-    Bob Wright, UNL extension entomologist, will cover wheat insect issues and answer grower questions.
-    Paul Hay, extension educator in Gage County, will cover nutrient needs for high yielding wheat
-    Randy Pryor, extension educator in Saline County, will address emerging issues for wheat growers

Several area agribusinesses are sponsoring the evening meal. From the corner of highways 41 and 241 (Swanton Spur) west of Wilber, go one mile south and ½ mile west. The field is on the south side of the road.  In case of rain, the meeting will start at the Saline County Extension office in Wilber at 306 West 3rd St.  For more information about the field day, contact Randy Pryor at the UNL Extension office in Saline County at 402-821-2151 or e-mail rpryor1@unl.edu.



Registration Open for 2012 Cattle Industry Summer Conference

J.D. Alexander, National Cattlemen’s Beef Association (NCBA) president, said cattlemen and women need to register today to attend the 2012 Cattle Industry Summer Conference to secure a spot at what he said will be an action-packed conference. Alexander said the conference, which will be July 25-28, 2012, in Denver, will give cattle farmers and ranchers an opportunity to engage in NCBA’s grassroots policy process while also networking with and learning from other cattlemen and women from across the country.

“With challenges of overreaching regulations coming from the Beltway threatening our ability to raise cattle, coupled with obstacles from Mother Nature and more, it is critical for all NCBA members to take an active role in shaping the future of our industry and our organization,” Alexander said. “I’ve said it before, but if you don’t have a seat at the table; you’re probably on the menu. The 2012 Cattle Industry Summer Conference will give cattlemen and women the opportunity to take their seat at the table.”

Registration is available online. Alexander said summer conference is a critical step in NCBA’s grassroots policy process. He said resolutions being discussed today during county and state cattlemen’s meetings will be brought forward and voted on during summer conference.

“NCBA is the trusted leader and definitive voice serving the beef industry but in order to continue being successful and for our policy process to work, we need every member to be engaged,” Alexander said. “If you want a seat at the table in shaping the future of this industry, Denver is the place to be this July.”



30th Charity Steer Show, Auction at Iowa State Fair

Preparations for the 30th annual Governor's Charity Steer Show and Auction, on Aug. 11 at 4 p.m., are underway for this year's 2012 Iowa State Fair. In a joint effort led by the Iowa Beef Industry Council, Iowa Cattlemen's Association, and the Governor of Iowa, the Governor's Charity Steer Show has become one of the premier events held at the Iowa State Fair. The annual event is held to benefit the Ronald McDonald Houses of Des Moines, Iowa City, and Sioux City which provide a "home away from home" for families of seriously ill children.

Each year the Governor's Charity Steer Show brings together personalities in media, business, sports, and government to lead steers in the historic Pioneer Livestock Pavilion during the Iowa State Fair. Thousands of fairgoers flock to the event to not only root for their favorite celebrity, but also share their support for a worthy cause led by the Iowa cattle industry.

The success of the Governor's Charity Steer Show depends on the generosity of many people lending a hand to support families in need. Companies, individuals, and organizations purchase and exhibit steers at the show.

Celebrities offer their time and assist with the show and the Ronald McDonald Houses of Iowa. With the strong support of Iowa cattle producers, the Iowa Beef Industry Council and the Iowa Cattlemen's Association handle the details and logistics of the event.

After evaluation is complete, each steer is auctioned to the highest bidder. The buyers include a variety of individuals and companies, many whom are not directly affiliated with the cattle industry but all interested in providing support for families in need. Since its inception in 1983, the Governor's Charity Steer Show has raised $1,937,228 for the three Ronald McDonald Houses of Iowa.

Providing strength for families of seriously ill children takes many. Similar to a community coming to the assistance of a neighbor in need, the Governor's Charity Steer Show would like to invite all Iowans to join in and support the Ronald McDonald Houses of Iowa.



USDA Cold Storage Highlights

Total red meat supplies in freezers were up 5 percent from the previous month and up 19 percent from last year. Total pounds of beef in freezers were up 3 percent from the previous month and up 17 percent from last year. Frozen pork supplies were up 8 percent from the previous month and up 20 percent from last year. Stocks of pork bellies were up 13 percent from last month and up 41 percent from last year.

Total frozen poultry supplies on April 30, 2012 were up 10 percent from the previous month but down 6 percent from a year ago. Total stocks of chicken were up 6 percent from the previous month but down 18 percent from last year. Total pounds of turkey in freezers were up 17 percent from last month and up 20 percent from April 30, 2011.

Total natural cheese stocks in refrigerated warehouses on April 30, 2012 were up 2 percent from the previous month but down 1 percent from April 30, 2011.  Butter stocks were up 22 percent from last month and up 79 percent from a year ago.

Total frozen fruit stocks were down 7 percent from last month but up 6 percent from a year ago.

Total frozen vegetable stocks were down 7 percent from last month but up 3 percent from a year ago.



Weekly Outlook: Pork Producers Ask, 'What Happened?'

The spring hog price rally has not occurred, and feed costs have now pushed to record-high levels. This combination is resulting in a disappointing period of financial losses this spring and summer that was not anticipated earlier this year.

"Hog prices normally shoot up in the spring," said Purdue University Extension economist Chris Hurt. "In fact, in the past five years, live hog prices rose by an average of about $11 per hundredweight from early April to mid-May. This year, prices struggled to hold onto their early April levels in the low $60s."

Hurt said the reasons for the lack of a spring rally are not totally clear. "Perhaps there was too much anticipation of high spring and summer hog prices earlier in the year. June lean hog futures, for example, reached levels equivalent to about $76 per live hundredweight in late February. This was just before the lean finely textured beef issue hit the media waves and sent livestock futures prices down. The lowest cattle futures prices came after more bad news announcing a fourth BSE cow on April 24. Lean hog futures then bottomed out about 10 days later," Hurt said.

According to Hurt there were some negative fundamentals for hogs in the form of higher-than-expected pork production this spring that clearly contributed to the failure of the spring price rally. Hog slaughter in the first quarter had been near expectations with slaughter numbers up 0.6 percent and pork production up just 0.7 percent. Since the first of April, however, slaughter numbers have been up near 4 percent and pork production up near 5 percent.

"Clearly there were more hogs and higher weights than expected," Hurt said. "While this is a bearish factor, it isn't large enough to have caused the total failure of a spring rally. The lack of price increases does not seem to be related to weakened export demand either. Both pork and beef export data available do not show declines in foreign purchases. In fact, pork exports in the first quarter were up 16 percent."

Hurt said there appears to have been excessive anticipation of very high hog and pork prices this spring, and several negative events have deflated that anticipation, leaving the possibility that a spring rally may still come. However, markets remain cautious until cash hog prices demonstrate they can move higher. Hurt believes this means that the outlook for hog prices has moderated.

"Early in the year, prices in the high-$60s were anticipated for spring and summer. Now that expectation is in the $63 to $65 range," Hurt said. "Prices for the fall and winter quarters are anticipated to be in the higher $50s with prices in spring and summer 2013 returning to the low $60s. Meanwhile, feed prices have pushed up to record-high levels for this spring and summer."

Hurt reported that the previous high for projected cost of production was for the third quarter of 2011 at $63.50 per live hundredweight. This spring and summer, total costs of production for farrow-to-finish operations are now expected to reach $65 to $66 with corn at $6.70 per bushel and high-protein soybean meal at $410 per ton. Hurt said this would leave losses of about $5 per head.

"Of course, there remains potential for wide fluctuations in both old-crop and new-crop feed prices," Hurt said. "Even with a return-to-normal yields in the United States this summer, much lower feed prices starting this fall would only provide pork producers with a breakeven outlook extending throughout 2013. Breakeven does not sound encouraging, but that covers all production costs, including feed, a full labor return and full depreciation recovery on buildings and equipment," he said.

Hurt said last fall and winter the hog outlook was more positive and may have caused some to be interested in expansion.

"I have consistently warned that producers should wait on expansion until the 2012 U.S. corn and soybean production was assured," he said. "That's even more important now that the hog price outlook is lower."

Hurt concluded by saying that the wheat harvest is coming soon in some areas.

"Current price relationships in Illinois and Indiana show wheat and corn at roughly the same price per bushel," he said. "Wheat normally has about 10 percent greater value in rations than corn on a per-bushel basis. Most of the wheat is sold at harvest in the eastern Corn Belt. Pork producers should be in contact with wheat producers to buy wheat directly from the field when possible."



April Egg Production Down 1 Percent

United States egg production totaled 7.58 billion during April 2012, down 1 percent from last year. Production included 6.54 billion table eggs, and 1.04 billion hatching eggs, of which 964 million were broiler-type and 73 million were egg-type. The total number of layers during April 2012 averaged 339 million, down slightly from last year. April egg production per 100 layers was 2,233 eggs, down slightly from April 2011.
                                   
All layers in the United States on May 1, 2012 totaled 338 million, down slightly from last year. The 338 million layers consisted of 283 million layers producing table or market type eggs, 52.8 million layers producing broiler-type hatching eggs, and 2.98 million layers producing egg-type hatching eggs. Rate of lay per day on May 1, 2012, averaged 73.6 eggs per 100 layers, down 1 percent from May 1, 2011.

Egg-Type Chicks Hatched Down 8 Percent
Egg-type chicks hatched during April 2012 totaled 39.7 million, down 8 percent from April 2011. Eggs in incubators totaled 42.0 million on May 1, 2012, up 4 percent from a year ago.  Domestic placements of egg-type pullet chicks for future hatchery supply flocks by leading breeders totaled 172 thousand during April 2012, down 40 percent from April 2011.

Broiler-Type Chicks Hatched Down 4 Percent
Broiler-type chicks hatched during April 2012 totaled 748 million, down 4 percent from April 2011. Eggs in incubators totaled 619 million on May 1, 2012, down 4 percent from a year earlier.  Leading breeders placed 6.52 million broiler-type pullet chicks for future domestic hatchery supply flocks during April 2012, down 7 percent from April 2011.

Iowa .........: 51,544,000 layers;  2,299 eggs per layer;  1.185 billion eggs produced
Nebraska ....:  9,244,000 layers;  2,445 eggs per layer;  226 million eggs produced

U.S. Egg Production Expected to Fall in 2013
While 2013 is expected to have higher prices for several meat products and improvement of general economic conditions, egg producers are expected to face lower prices for the rest of 2012.

Hatching egg production for next year is expected to increase marginally after a decline in 2011 and 2012. According to the USDA's Livestock, Dairy, Poultry and Aquaculture Outlook for May, the expansion in hatching egg production is based on the forecast for higher broiler production starting at the end of 2012 and carrying through 2013.

In the first quarter of 2012, egg production rose slightly - a one percent rise - compared to the same period in 2011. Production of hatching eggs dropped 3 percent as the production of broiler-type eggs continue down compared to a year ago. Table egg production for the remainder of 2012 is expected to continue rising slightly compared the to the second and third quarters of last year.

Higher egg production in 2013 is expected to lead to a slight inflation of egg and egg product prices compared to 2012.



Chinese Buying More Pork From U.K.

Great Britain and China have agreed to a pork export deal worth $79.1 million, according to Britain’s Agriculture Minister Jim Paice, who is traveling in China on a trade mission.  Most of the exports will be offal, feet, ears and other hog parts that have little demand among British diners, but are very popular among the Chinese.

"China is the most lucrative grocery market in the world and from fashion to food its rapidly expanding middle class has an appetite for Western goods,” Paice said. “In particular they are eating more meat, and our top quality producers have got huge opportunities to meet that demand and help our economic recovery.”

Paice also plans to promote British agriculture by offering high-quality breeding pigs to China and the skill and technologies that support breeding programs in the UK.

Breeding technology and skill have the potential to be even more lucrative than the breeding pigs. The agency said there are many opportunities for growth in emerging markets such as China due in part to the rising affluence of China's growing middle class.



Oil Closes Near 2012 Low

(AP) -- Oil prices dropped near their lows for the year following warnings of a "severe recession" in Europe and an apparent easing of tensions over Iran's nuclear program.

Benchmark U.S. crude on Tuesday lost 91 cents to end the day at $91.66 per barrel in New York while Brent crude fell by 40 cents to end at $108.41 per barrel in London. Both contracts hit a low for 2012 on Friday at $91.48 and $107.14, respectively.

Oil has declined almost every day this month as elections in Greece and France threatened existing plans to fix the eurozone economy A top economist for the Organization for Economic Cooperation and Development warned Tuesday that the eurozone could fall into recession this year if leaders fail to stimulate the economy.  If that happens, it would stunt growth in world oil demand at a time when supplies are expanding.

Saudi Arabia, Iraq and Libya are producing and exporting more oil this year. And analysts say Iran's oil exports could keep flowing if it lets international inspectors into its nuclear facilities as part of a new deal announced Tuesday.

Western leaders fear Iran is building a nuclear weapon. They've been trying to cut off Iran's oil exports this year to pressure the country to allow in nuclear inspectors. Many nations already have stopped buying Iranian crude and Europe is expected to embargo all oil imports from Iran in July.

At the pump, U.S. gasoline prices fell nearly a penny to $3.68 per gallon, according to auto club AAA, Wright Express and Oil Price Information Service. A gallon of regular unleaded has dropped by 25.6 cents since peaking this year in early April.

In other futures trading, natural gas added 9.8 cents, up 4 percent, to finish at $2.707 per 1,000 cubic feet. Natural gas prices have jumped by 42 percent since hitting a 10-year low on April 19 as supplies declined. Weather forecasters also predicted a toasty Memorial Day weekend across much of the country, which implies that people will crank up their air conditioners and power plants will burn more natural gas for electricity.

Heating oil and wholesale gasoline were both flat, ending the day at $2.8614 and $2.937 per gallon, respectively.