Wednesday May 16 Ag News

2012 Water and Natural Resources Tour Examines Missouri River Flood
This summer's University of Nebraska water and natural resources tour will spend three days visiting parts of Nebraska and Iowa that were most affected by last summer's record flooding on the Missouri River.

The tour is July 17-19, leaving from and returning to Hardin Hall on the University of Nebraska-Lincoln East Campus at North 33rd and Holdrege streets.

"We'll not only look at residual damage, but just as significantly, restorative efforts since flood waters receded and what we have learned from the actual flood," said Steve Ress, tour co-organizer and communicator at UNL’s Nebraska Water Center, part of the Robert B. Daugherty Water for Food Institute.

"The flood disrupted the lives of thousands and extended for more than three months, breaking through levees and flowing beyond vulnerable lowlands to destroy homes, businesses and highways," said tour host and co-organizer Mike Jess, a retired UNL lecturer.

From Decatur to Hamburg, Iowa, tour participants will inspect a variety of locations where the flood's destructive impact will be fully evident.

"Near Tekamah, they will see where over-bank flows attempted to occupy a former river channel last used by the river more than a hundred years ago. We'll also see large tracts of cropland that remain unproductive from accumulations of fine-textured sediment left by the floodwaters," Jess said.

Some of the cropland bordering the river is covered by several feet of fine, blowing sand, resembling pictures from the 1930s Dust Bowl, Ress said.

Salvaging native forests, restoring river habitat and repairing levees and other infrastructure since the flood also will be featured.
Elsewhere, participants will see Omaha's Eppley Airport, where an ambitious water-well dewatering network allowed commercial air traffic to continue unabated throughout the duration of flooding, despite the fact that the airport borders the river.

The tour also will stop at Omaha Public Power District's coal-fired power plant near Nebraska City. There, special pumps, a series of temporary dikes and elevation of a railroad coal supply line permitted uninterrupted production of electricity throughout the flood, Jess said.

Last year's Missouri River basin flooding was caused by a combination of snowmelt in the northern Rocky Mountains and record-setting rainfall runoff in Montana and North Dakota.

The tour is co-sponsored by Omaha Public Power District, U.S. Geological Survey Nebraska Water Science Center, Nebraska Public Power District, Kearney Area Chamber of Commerce, Central Nebraska Public Power and Irrigation District and the Nebraska Water Center.

Registration is $645 single lodging occupancy or $545 per person double occupancy and includes all meals, transportation expenses, activities and lodging in both Omaha and Nebraska City. To register, contact Jennie Nollette at the Kearney Area Chamber of Commerce at (308) 237-3168 or email jnollette@kearneycoc.org.



Advanced Swine Reproduction Seminar Offered at two Locations in June
An Advanced Swine Reproduction Seminar will help pork producers perform at a higher level of management when it comes to preparing the sow and farrowing space, knowing when/how to assist farrowing sows, managing sows to maximize feed intake and more.

The seminar, sponsored by University of Nebraska-Lincoln Extension, the Iowa Pork Industry Center, Iowa State Extension and the Iowa Pork Producers Association, will be offered June 12 at the Lifelong Learning Center in Norfolk and June 13 at the Extension Office in LeMars, Iowa.

Registration begins at 9:15 a.m. and the seminar will conclude by 3:30 p.m.

During the morning discussion, pork producers should come ready to share their farrowing tips, said Duane Reese, UNL Extension swine specialist.

"We hope newer employees can gain a lot of information from more experienced farrowing managers sharing their insights," he said. The morning session will be led by Reese, Tim Safranski, swine specialist, University of Missouri and Dave Stender, ISU swine field specialist.

In the afternoon, Safranski will lead a session involving consistent and reliable management practices that lead to superior reproductive performance. He'll also talk on industry trends.

Stender will give updates on current welfare issues for crate-to-pen transition and on managing gilt development programs. Reese will close the seminar with updates on swine nutrition.

Registration is $30 per person which includes a pork loin lunch. To register or for more information, call Stender at 712-225-6196 or email dstender@iastate.edu.



Smith Congratulates Behlen Manufacturing, Kawasaki Motors on Recognition

Congressman Adrian Smith (R-NE) today released the following statement after it was announced Behlen Manufacturing of Columbus, NE was recognized as Nebraska Exporter of the Year and Kawasaki Motors of Lincoln, NE was recognized as Nebraska Importer of the Year:

“Increased trade has greatly benefited Nebraska and these two companies are prime examples,” said Smith. “Opening up new markets for our producers and manufacturers has been a top priority for me on the Ways and Means Committee, and I am proud of what these Nebraska operations have been able to accomplish.”

Smith has toured the Kawasaki Motors plant in Lincoln, which is part of a U.S.-based subsidiary of Kawasaki Heavy Industries, Ltd. This facility has greatly benefited from being located within a foreign-trade zone (FTZ), which allows foreign and domestic products and inputs to be admitted duty-free for manufacturing and processing before formally entering U.S. commerce. This trade mechanism helps to level the playing field for U.S. manufacturing.

Smith serves on the Committee on Ways and Means and the Subcommittee on Trade. 



Iowa Soybean Association notes 2012 legislative accomplishments

The Iowa Legislature adjourned on May 9, without passing either property tax reform or a fuel tax increase. However, several of the Iowa Soybean Association’s (ISA’s) priority issues received attention during the session, with the association’s desired outcomes.

During this session, the legislative appropriation for the ISA On-Farm Network® was restored to its full $400,000 after being impacted by across-the-board reductions the past three years. The On-Farm Network supports ongoing research conducted by more than 600 Iowa farmers who seek to maintain production levels while reducing their environmental footprint. Several urban legislative leaders took the time last summer to visit cooperating farmers with Dr. Tracy Blackmer, ISA research director, and Jill Altringer, ISA’s lobbyist. Learning more about the program’s longstanding value resulted in their support.

ISA, a strong supporter of World Food Prize (WFP), fielded a request for help after the WFP’s $1 million appropriation was zeroed out. ISA worked with other agriculture groups to see that the WFP appropriation was restored to the $750,000 level.

Likewise, after the budget of the state’s Watershed Improvement Review Board (WIRB) had been eliminated in early proposals, ISA helped restore that appropriation to $1 million. Those dollars are used to help local watershed projects and programs provide support for farmers and other businesses. Bob Ballou, an ISA District Advisory Council member from eastern Iowa, currently chairs the WIRB.

Ag drainage wells also received slightly more than $1.5 million in the appropriations process, which ISA hopes will help work to proceed on the remaining wells to be closed. The baseline appropriation of $550,000 was supplemented by an additional $1 million in Rebuild Iowa Infrastructure Fund (RIIF) money, and will hopefully close about half of the remaining wells.

In addition, the Ag Protection Bill was passed early in the session, supported by ISA and other ag groups. It creates penalties for those who fraudulently gain access to a farm with intent to cause harm.

While these efforts resulted in ISA’s desired outcomes, ISA’s top priority, passage of a fuel tax to support rural roads and bridges, was shelved early in the session by lawmakers who felt the issue was too difficult to support in an election year.

ISA Director of Policy Development Carol Balvanz says, “ISA will continue to work with legislative leaders to keep rural infrastructure and soybean producers’ needs in the forefront during the election process this summer and fall, and prior to the next legislative session.”



USGC Releases First Annual Report on US Corn Grades, Standards, Moisture

The U.S. Grains Council is pleased to present the first annual Corn Export Cargo Quality Report for the 2011/2012 corn marketing year as a service to foreign buyers and other interested parties. The Council’s Corn Export Cargo Quality Report is an objective survey, taken at the point of loading for international shipment, of the quality of U.S. yellow commodity corn destined for export.

“This is the second of two new Council reports concerning the quality of the 2011 crop,” said Dr. Wendell Shauman, USGC chairman and farmer from Illinois. “Earlier this year the Council’s Corn Harvest Quality Report surveyed corn quality at the farm gate. Together, these two reports are intended to provide reliable information on U.S. corn quality for the current marketing year, based on a transparent and consistent methodology.”

In addition to providing an early look at grades and standards factors and moisture (that are reported each year by the U.S. Federal Grain Inspection Service), these reports provide information on additional quality characteristics that have not been reported previously.

“Quality is a vital concern for every stakeholder in the corn value chain: seed companies, corn growers, traders, corn handlers, shippers, processors and end-users. The Council anticipates that the value of these reports to all stakeholders will increase over time as stakeholders become familiar with the information presented and with the year-to-year variations to be anticipated in the U.S. corn marketing system,” he said.

The U.S. Grains Council is committed to continuous export expansion based upon the principles of mutual benefit and increased food security through trade.

“We strive to be a trusted partner and a bridge between U.S. producers and international buyers. Reliable and timely information is the foundation of these efforts. We trust that our international partners will find the Corn Harvest Quality and Corn Export Cargo Quality reports informative and useful,” Shauman said.

Click the link to see the full report... http://grains.org/images/cornqualityreport/USGC-Corn-Harvest-Quality-Report-2011-12.pdf. 



National Beef Tenderness Survey
(from the Iowa Beef Industry Council)

With checkoff funding, the industry has been tracking beef tenderness for 20 years through the National Beef Tenderness Survey. The first National Beef Tenderness Survey was conducted in 1990 to compile baseline data on tenderness of beef in the retail case. The Beef Checkoff Program evaluates the tenderness of beef cuts within the industry every five years, as tenderness is a critical component of beef's palatability or taste which drives consumer enjoyment and demand for beef. Just one bad eating experience can leave a lasting impression on a consumer.

Results of the 2010/2011 survey showed approximately 64 percent of all retail cuts are labeled with a store brand and aged an average of 20.5 days compared to 22.6 days in 2005/2006. The aging period for retail cuts ranged from 1 to 35.8 days as opposed to a range of 3 to 83 days in 2005/2006. In retail, the Top Blade Steak and Ribeye Steak were found to be the most tender, whereas the Bottom and Top Round Steaks were the least tender cuts. Comparing retail cuts, consumer sensory panelists rated the Top Blade Steak, the boneless Ribeye Steak, the boneless Top Loin Steak, and the bone-in Top Loin Steak the highest for overall likeability.

For foodservice cuts, the average aging time remained relatively constant at 28.1 days compared to 30.1 in 2005/2006. The aging period for foodservice cuts ranged from 9 to 67 days. The most tender and flavorful foodservice cuts included the Top Loin and Ribeye.

Nearly all steaks evaluated in the 2010/2011 National Beef Tenderness Survey were considered tender or very tender, and very similar to the previous study of 2005/2006 survey with all-time highs. However, aging was less consistent in the current survey compared to five years ago, particularly in retail. Because adequate aging is one of the industry's most valuable tools for improving tenderness consistency, education should be focused on the benefits of aging beef a minimum of 14 days. The least tender cuts are those from the round, suggesting the need for improved aging practices specific for round cuts and increased consumer education focused on proper preparation and cooking techniques to enhance the eating experience of leaner, less tender round cuts.



NCBA Supports USDA Proposed Comprehensive BSE Rule

The U.S. Department of Agriculture (USDA) published in the Federal Register a comprehensive rule for Bovine Spongiform Encephalopathy (BSE) on March 16, 2012. The National Cattlemen’s Beef Association (NCBA) voiced support for the rule in comments submitted late Tuesday. NCBA Vice President Bob McCan said the organization has been pushing for this rule since the first case of BSE was detected in the United States in December 2003.

“This has been a long time coming and we certainly welcome this rule. Quite simply, this proposed rule will show the United States is willing to talk the talk and walk the walk with regard to following international standards developed by the World Organization for Animal Health (OIE),” said McCan. “We cannot demand our trading partners follow OIE standards when we are not here at home.”

As noted in the comments submitted by NCBA, the comprehensive BSE rule will solidify the United States’ commitment to basing trade relationships on internationally-recognized, science-based standards. McCan said maintaining a healthy cattle herd is a top priority for NCBA and USDA’s Animal and Plant Health Inspection Service (APHIS)  should be commended for putting forth a comprehensive BSE rule that allows the United States to meet demand with little, if any, market disruption.

“The U.S. beef industry has worked closely with USDA-APHIS for many years to make sure we have the highest quality controls in place to maintain a healthy cattle population” said McCan. “We must have an objective comprehensive rule in place for beef and cattle imports as soon as possible in order for our nation’s trade negotiators to have credibility in opening markets for U.S. beef. Non-tariff trade barriers hinder our ability to expand U.S. beef exports with many of our global trading partners. Cattlemen need our trade negotiators to eliminate these barriers by requiring our global trading partners to make objective, science-based decisions regarding U.S. beef.”

Comments on the proposed rule were due to the Federal Register yesterday, May 15, 2012. McCan said NCBA is ready to work with members of Congress and the administration to finalize the rule.



Research group tests show E15 damages vehicle engines

American Petroleum Institute President and CEO Jack Gerard told reporters this morning that testing by the Coordinating Research Council showed that use of E15 – gasoline with 15 percent ethanol – could harm car and truck engines, potentially affecting millions of cars and trucks. Gerard said despite evidence of incompatibility problems with E15 and service station equipment and incomplete E15 testing in automobile engines, the U.S. Environmental Protection Agency approved E15 for the vast majority of the nation’s cars and light trucks:

“EPA’s decisions in 2010 and 2011 approving E15 ethanol-gasoline blends for most American vehicles were premature and irresponsible. EPA approved E15 knowing ongoing vehicle testing had not been completed. Worse, as API noted in its press briefing two weeks ago, it approved the fuel even though government labs had raised red flags about the compatibility of E15 with much of the dispensing and storage infrastructure at our nation’s gas stations.

“Today, the results of just completed engine testing of E15 by the Coordinating Research Council confirm that EPA did not perform due diligence and moved too quickly in its E15 vetting process. The tests provide strong evidence E15 could damage the engines of many cars and light trucks. The council, known as the CRC, is a non-profit research and testing organization made up of the automobile and oil companies.

“Ironically, EPA’s decisions actually threaten broader use of biofuels. Federal law requires blending of increasing amounts of biofuels in gasoline, and most of the gasoline now sold in America has ethanol in it. Yet, if E15 is introduced and vehicle problems develop, public support for E15 and the federal renewable fuels program could erode.”



Faulty testing produces "meaningless" results in oil and auto industry study on E15

A report released today by the oil and auto industries on E15 and other higher level ethanol blends is fundamentally flawed, noted both the U.S. Department of Energy (DOE) and the Renewable Fuels Association (RFA).

In a blog post, the DOE offered some tough critiques of the oil and auto industry research.  Specifically, the blog said, “We believe the choice of test engines, test cycle, limited fuel selection, and failure criteria of the CRC program resulted in unreliable and incomplete data, which severely limits the utility of the study. “ 

Speaking to the New York Times, a Department of Energy spokesman “said that his agency had tested 86 vehicles on test tracks and dynamometers for a total of more than six million miles. ‘A subset of those engines tested in the D.O.E. study were torn down and inspected with no discernible difference in engine wear between test fuels,’ he said.”

RFA President and CEO Bob Dinneen echoed the concerns of DOE and emphasized the importance – and public desire – to diversify our fuel supply including using higher level ethanol blends.

“Accepting the status quo in a fuel market monopolized by petroleum as the best this nation can do is unacceptable.  After 6 million miles and years of testing, the Department of Energy found no problems with the use of E15 in vehicles made since model year 2001. By funding research using questionable testing protocols and illegal fuels, the results of this study are meaningless and only serve to further muddy the waters and shun the overwhelming desire of 75 percent of Americans for greater choice at the pump. The RFA has worked in good faith with all stakeholders in this debate to identify and address concerns in a constructive manner that will increase America’s use of domestic renewable fuels and reduce our reliance on imported oil.  This study, and continued efforts aimed at confusing rather than informing consumers, impede this progress and do little to address the nation’s need for clean, renewable fuel that lowers the price at the pump and creates jobs here at home.”

Earlier today, the RFA outlined some concerns with the re-release of this report.  Those concerns include:
-    The Department of Energy conducted six million miles of testing on E15 – the equivalent of 12 round trips to the Moon – and found no issues.
-    Some of the vehicles in the oil/auto industry funded research project actually failed on E0 – gasoline without ethanol.  (Interestingly, no E10 was tested.)
-    Some of the vehicles tested were under recall by NHTSA.

Additionally, research from automotive consulting firm Ricardo, Inc., found that high octane fuels – fuels like ethanol with an octane rating of 113 – will be essential in helping automakers achieve new fuel economy standards.



ACE responds to API testing claims on E15 blends

The Senior Vice President for the American Coalition for Ethanol, Ron Lamberty today responded to recent testing results on E15 blends from the American Petroleum Institute.

“The real problem here is that people may read about this project and think that it actually has some connection to the real world.  The parameters of the test, the definitions of “pass” and “fail” and even the cars selected were carefully chosen to produce the results the study’s funders wanted. The Department of Energy points out that this “study” included engines with known durability issues, and that one of the engines used in the tests even failed the API tests while running straight gasoline with no ethanol.”

“How Big Oil can trot out this small, slanted, flawed study as something we should take seriously, while calling EPA’s two and a half years of E15 testing a “rush to judgment” is beyond me.  Saying it more often and louder won’t make it the truth. All this latest hit piece proves it that ethanol’s opponents are becoming more desperate to keep ethanol - which could help consumers save more at the pump - completely out of the marketplace,” Lamberty said.



Study: Ethanol Saves Midwesterners $1.69 Per Gallon

A new study conducted by university economists shows that Midwestern drivers saved $1.69 per gallon of fuel last year because of domestic ethanol production and use.

The Midwest fared the best in the study that was done by Dermot Hayes of Iowa State University and Ziaodong Du of the University of Wisconsin. Nationally, consumers saved $1.09 per gallon. The Center for Agricultural and Rural Development released results of the study today.

Chad Blindauer, president of the South Dakota Corn Utilization Council, said most consumers have no idea how much more it would cost to fill up their vehicles if it weren't for ethanol.

"Having access to American ethanol generates a significant savings for hard-workingfamilies in South Dakota and the rest of country, which typically goes unnoticed," said Blindauer, a Mitchell farmer and rancher. "It's important for consumers and policy makers at all levels to understand just how much of a positive impact the ethanol industry truly has on our country."

The study shows that ethanol reduced the average American household's spending on gasoline by more than $1,200 in 2011. The $1.09-per-gallon national impact is up from 89 cents per gallon in 2010, a change the researchers attribute to increased ethanol production and higher crude-oil prices as well as a bigger price difference between ethanol and gasoline.

The average price for a barrel of crude oil increased to $95 in 2011, up from $80 in 2010.

The study determined that drivers would have paid an average of about $4.60 per gallon last year without the inclusion of 13 billion gallons of ethanol.

"While it's hard to imagine that gas prices could be even higher than they are now, this study clearly underscores that the current pain at the pump would be far worse without ethanol," said Bob Dinneen, president and CEO of the Renewable Fuels Association.



SB&B Foods’ Bob Sinner Testifies on Trade Policy and Small Businesses

The effect of trade policy on small business was the focus of “U.S. Trade Policy: What’s Next for Small Business,” a hearing held Wednesday by the House Small Business Committee in Washington. SB&B Foods President and American Soybean Association (ASA) member Bob Sinner testified before the committee, citing his company’s experiences with agricultural trade policy, touching specifically on the success of USDA’s Market Access Program (MAP), the need for consistency among trading partners with regard to sanitary and phytosanitary certification requirements, the recently-enacted free trade agreement with South Korea, the need for renewed investment in domestic infrastructure to facilitate more exports by small companies like Sinner’s, and the need for a practical approach to implementing any new safety requirements under the Food Safety Modernization Act.

SB&B Foods supplies specific varieties of non-biotech, organic Identity Preserved (IP) soybeans to food companies around the world, employing approximately 30 people, and totaling between $20-25 million in sales for the past three years. SB&B Foods’ largest markets are Japan, Taiwan and Thailand.

“When our business first expanded to the international marketplace in 1988, we focused our efforts on Japan. We were fortunate to receive cost-share funding for promotional activities from Food Export USA, a nonprofit organization funded by USDA’s Market Access Program (MAP),” stated Sinner in his testimony. “In this regard, I cannot overstate the success and value of USDA’s export promotion programs in expanding U.S. agricultural exports around the world.”

Speaking to the need for consistency of standards from country to country, Sinner cited the dependence of many small businesses on outside assistance. “The U.S. government must work toward achieving international harmonization of standards in order to create more consistency in global markets,” he stated. “It is nearly impossible for small exporters to combat the multitude of challenges in the international marketplace on their own. Already, world markets are characterized by unjustified sanitary and phytosanitary barriers not supported by sound science.”



US Ethanol Stocks Down, Plant Output Up

Domestic ethanol inventories were drawn down again last week, falling 744,000 barrels (bbl), or 3.9%, to 20.63 million bbl for the week-ended May 11, according to data from the Energy Information Administration released Wednesday morning.

The latest decline comes on top of the 3.8% supply draw down for the week-ended May 4. Compared to a year ago, total ethanol stocks are now 1.1% higher while up 3.572 million bbl, or 20.8%, from the levels seen on Dec. 9, 2011, when a series of supply builds began.

Meantime, ethanol production from domestic plants also rose for the second straight week, up 7,000 barrels per day (bpd) to 904,000 bpd last week while 0.4% higher than a year ago.

Implied demand, as measured by refiner and blender net inputs, also rose for the second straight week, climbing 18,000, or 2.2%, to 842,000 bpd in the week-ended May 11 from the prior week, while up 3.7% from a year ago.

Elsewhere, the EIA reported that implied demand for motor gasoline rose for the second week, up 107,000 bpd to 8.971 million bpd for the week-ended May 11, while four-week average gasoline demand at 8.8 million bpd was down 2.6% from the level seen a year ago.



US Ethanol Exports Jump 11% in March

U.S. exports of ethanol totaled 83.4 million gallons in March, up 11% from the prior month, according to government data released last week.  The data released on May 10 by the U.S. International Trade Commission show first-quarter ethanol exports totaled 234.5 million gallons, with shipments primarily going to Canada, Britain and Brazil.  The United Arab Emirates and the Netherlands rounded out the list of top importers of U.S. ethanol.

Exports of denatured ethanol for fuel use totaled 44.8 million gallons in March, up 12% from February. Among the customers, Britain came on top, importing 12.4 million gallons, followed by Brazil at 9.9 million gallons and UAE at 7.7 million gallons.

Exports of undenatured ethanol for fuel use tallied 16 million gallons, down slightly from February. Among the top importers, Netherlands took 4.7 million gallons while Mexico took 3.9 million gallons and Nigeria bought 3.2 million gallons.

The data suggests 22 million gallons of denatured ethanol was exported for uses other than fuel. Undenatured ethanol exports for uses other than fuel were reported at 641,314 gallons.



China 2012 Corn Output to Hit New High

China's corn output this year is likely to reach a record 197.5 million metric tons, up 3% from 2011, the state-backed China National Grain and Oils Information Center said Wednesday in its first output estimate report on 2012 grain production.  Corn acreage this year is likely to rise 2.6% to 34.3 million hectares, it said.  Wheat and rice output will grow more slowly, it said, with wheat production likely rising 2% to 120.3 million tons and rice output growing 2.1% to 205 million tons.  The country's output of soybeans and rapeseed was estimated at 13 million and 12.8 million tons, down 7% and down 1.5% respectively.

China 2011-12 Soybean Imports Likely 58 Mln Tons
China is likely to import 58 million metric tons of soybeans in the current marketing year that began Oct. 1, up 11% from last marketing year's 52.34 million tons, the state-backed China National Grain and Oils Information Center said Wednesday.  The estimate was revised up by 3 million tons from April's forecast of 55 million tons.  Soybean imports for 2012-13 are likely to total 60 million tons, it said in a report.  The U.S. Department of Agriculture last week put China's 2011-12 soybean imports at 56 million tons and imports for 2012-13 at 61 million tons.



Will 2011 Crop Indemnities Hit $11 Billion?

Losses paid out by crop insurance companies to farmers for 2011 crops have now exceeded $10.7 billion and are edging ever closer to the $11 billion mark, according to data from the Risk Management Agency (RMA). This surpasses the previous record of $8.76 billion set in 2008 by almost 25 percent.

Spurred on by one of the worst weather years in history, farmers and ranchers faced unparalleled challenges in 2011 and crop insurance reached record amounts. The numbers paint a picture of Mother Nature’s devastation that befell farmers from coast to coast.

The top crops damaged, by dollar value, were corn, cotton, wheat, soybeans grain sorghum, pastureland and rangeland, and tobacco. And while the average loss ratio across the country is at .90 – which means that for every dollar purchased in coverage, 90 cents was paid out in indemnities – those numbers are much higher in some key states.

Top among them is Vermont, which felt the brunt of Hurricane Irene’s wrath last summer and is currently at a loss ration of 2.59. Texas and Oklahoma are not far behind, having fallen victims to an historic and prolonged drought, registering a 2.35, and 2.15 respectively.

The news comes as the Senate Agriculture Committee recently passed the 2012 Farm Bill and the House is conducting hearings on their Farm Bill. As Lubbock, Texas banker Rick Boyd noted in a recently-released NCIS video, the drought could have been catastrophic for many Texas farmers if they had not purchased crop insurance. “2011 was such that, with the insurance, we did not have any farmers that actually went out of business, and over 90 percent of our customers had to draw on their insurance claims,” he said. “The programs were in place that allowed them, not to make a profit, but to actually get a lot of their expense money back and that was enough to enable them to get financing for the upcoming year,” he added.

“Thanks to the foresight of Congress, crop insurance has been in place to weather enormous natural disasters and help ensure that farmers survive to plant yet another year,” said Tom Zacharias, president of NCIS. “Those billions in damages would have landed on the plates of input suppliers, lenders, marketers and farm families if crop insurance wasn’t in place,” he said.

Since 2008, more than $28 billion private sector dollars from crop insurance companies have gone back into the hands of farmers across the country for policies they purchased. During that same period, crop insurance has shouldered more than $12 billion in cuts in Federal investment even while exposure to risk has continued to rise.

“With damages from last year approaching the $11 billion mark, the fact that there has not been a single call from farmers and ranchers for a federal disaster bill is testimony to the efficacy of crop insurance and proof that farmers and rancher consider it indispensible,” said Tom Zacharias, president of National Crop Insurance Services.



Denny's is Latest Restaurant to Ban Pork From Gestation Stalls

Officials with Denny's restaurants announced on Tuesday that the chain will begin to require its suppliers to provide pork from systems that do not use gestation-sow stalls. The company did not offer a timeline for implementation.  Denny's has more than 1,650 restaurants in the United States.

"Denny's takes its role as a responsible corporate citizen seriously, which is why we have adopted a strong position on animal welfare," Greg Linford, Denny's vice president, procurement and distribution, said in a news release. "We will endeavor to purchase products from companies that provide gestation crate-free pork and are committed to influencing our suppliers to share in a gestation crate-free vision for the future. Working to eliminate gestation crates is best for our company, our guests and our continued work to improve animal welfare."

The Humane Society of the United States says it 'has worked with Denny's together to address animal welfare issues for more than five years.'

This action makes Denny's is the latest chain to announce efforts to work with suppliers whose pork can be traced back to stall-free gestation. Others on that list include McDonald's, Burger King, Wendy's and Safeway. Recently Domino's Pizza shareholders voted down a similarly proposed measure.

The industry estimates suggest that about 10 percent of the U.S. sow herd would meet the gestation stall-free mandate, prompting questions about fulfilling supply needs.



Pioneer Hi-Bred Will Sell Soybeans by Seed Count

          Pioneer Hi-Bred, a DuPont business, will sell its soybean products by seed count per unit, rather than by weight, beginning in the fall of 2012 for varieties sold throughout North America for the 2013 planting season. The number of soybean seeds sold per unit by Pioneer will be 140,000.

          The advantage for Pioneer customers is that buying by seed count provides a simple, convenient and more accurate means of planning their soybean crop.

          "Our customers will benefit because they can more easily calculate the number of units they need based on their desired planting rates because the seed quantity per unit will always be consistent," says Don Schafer, senior marketing manager, soybeans. "This change is in response to customer demand for consistent seed count packaging for more efficient field-by-field planning."

          Prior to this change, Pioneer sold soybean seeds by weight (50 pounds of seed equals one unit). Soybean seeds can potentially vary in size, based on genetics and growing conditions, affecting the number of seeds per unit. With this change to selling by count, the number of seeds per unit will be consistent for Pioneer customers.

          Pioneer® brand soybeans will continue to be sold by count in traditional paper bags, PROBOX® units and jumbo bags, as well as through PROBulk® systems.



Deere Posts Record Second-Quarter Earnings of $1.056 Billion

Net income attributable to Deere & Company was $1.056 billion, or $2.61 per share, for the second quarter ended April 30, compared with $904.3 million, or $2.12 per share, for the same period last year.  For the first six months of the year, net income attributable to Deere & Company was $1.589 billion, or $3.91 per share, compared with $1.418 billion, or $3.32 per share, last year.

Worldwide net sales and revenues increased 12 percent, to $10.009 billion, for the second quarter and rose 12 percent to $16.775 billion for six months. Net sales of the equipment operations were $9.405 billion for the quarter and $15.524 billion for six months, compared with $8.328 billion and $13.841 billion for the same periods last year.

"John Deere is well on its way to a year of outstanding performance after reporting an eighth consecutive quarter of record earnings," said Samuel R. Allen, chairman and chief executive officer. "Our results are a reflection of positive conditions in the global farm economy, which is continuing to show impressive strength and endurance. Deere is gaining new customers throughout the world, who are responding with great enthusiasm to our innovative lines of equipment."

At the same time, Allen noted, the company is successfully managing major new-product launches featuring advanced engine-emission technology, while significantly expanding its global market presence. "Skillful execution of our operating plans is helping Deere capitalize on today's strong farm economy and meet the world's growing need for productive machinery," he said.

Summary of Operations
Net sales of the worldwide equipment operations increased 13 percent for the quarter and 12 percent for six months compared with the same periods a year ago. Sales included price realization of 5 percent for the quarter and 4 percent year to date and an unfavorable currency-translation effect of 2 percent for the quarter and 1 percent for six months. Equipment net sales in the United States and Canada increased 18 percent for the quarter and 13 percent year to date. Outside the U.S. and Canada, net sales increased 6 percent for the quarter and 12 percent for six months, with unfavorable currency-translation effects of 4 percent and 3 percent for these periods.

Deere's equipment operations reported operating profit of $1.522 billion for the quarter and $2.220 billion for six months, compared with $1.268 billion and $1.914 billion last year. The improvement for both periods was primarily due to the impact of price realization and higher shipment volumes. These factors were partially offset by higher production costs related to new products and engine-emission requirements, as well as increased raw-material costs and research and development expenses.

Financial services reported net income attributable to Deere & Company of $109.2 million for the quarter and $228.3 million for six months compared with $105.1 million and $223.3 million last year. Results were higher for the quarter primarily due to growth in the credit portfolio, partially offset by increased selling, administrative and general expenses. Six-month results benefited from growth in the credit portfolio, revenue from wind energy credits and a lower provision for credit losses. These factors were partially offset by increased selling, administrative and general expenses, higher crop insurance claims and narrower financing spreads.

Equipment Division Performance - Agriculture & Turf.
Sales increased 11 percent for the quarter and 10 percent for six months largely due to higher shipment volumes and price realization, partially offset by the unfavorable effects of currency translation.

Operating profit was $1.403 billion for the quarter and $1.977 billion year to date, compared with $1.163 billion and $1.720 billion, respectively, last year. The improvement in both periods was primarily driven by the impact of higher shipment volumes and price realization. These factors were partially offset by increased production costs related to new products and engine-emission requirements, as well as higher raw-material costs and research and development expenses.

Market Conditions & Outlook - Agriculture & Turf.
Deere's worldwide sales of agriculture and turf equipment are forecast to increase by about 15 percent for full-year 2012, including a negative currency-translation impact of about 3 percent.

Farmers in the world's major markets are experiencing favorable incomes due to strong demand for agricultural commodities. In addition, John Deere's sales are benefiting from advanced new products being launched throughout the world and from major expansions.

Industry farm-machinery sales in the U.S. and Canada are forecast to rise by more than 10 percent in 2012. Overall conditions remain positive and demand continues to be strong, especially for high-horsepower equipment.

Full-year industry sales in the EU 27 nations of Western and Central Europe are forecast to be flat to up 5 percent as favorable conditions in the grain, livestock and dairy sectors outweigh general economic concerns. Sales in the Commonwealth of Independent States are expected to be considerably higher in 2012. Sales in Asia, while slowing, are forecast to be up moderately. In South America, industry sales are projected to be down 5 to 10 percent from last year's attractive levels due to uncertainty in Argentina and drought conditions in parts of the region.

U.S. and Canada industry sales of turf and utility equipment are expected to be up by about 5 percent for the year.

Company Outlook & Summary
Company equipment sales are projected to increase by about 15 percent for fiscal 2012 and by about 25 percent for the third quarter compared with the same periods a year ago. Included is an unfavorable currency-translation impact of about 3 percent for the year and 4 percent for the third quarter. For the full year, net income attributable to Deere & Company is anticipated to be about $3.350 billion.

According to Allen, promising fundamentals are lending strong support to the company's plans for increased sales and profitability. "Our extensive investments in new products and additional global capacity are moving ahead at an accelerated rate," he said, pointing out there are more than a dozen major projects under way throughout the world, including seven new factories. "These investments are essential to the success of our longer-term growth objectives, which we believe are firmly on track. They also put Deere in a sound position to respond to a rising global need for food, shelter, and infrastructure in the years ahead. In our view, these powerful trends have considerable staying power and should prove highly rewarding to our customers and investors."