Wednesday May 23 Ag News

Selected Water for Food Conference Sessions to be Webstreamed

Panel discussions on women, water and food as well as industry and producer perspectives on food security and production are among the sessions that will be webcast live during the 2012 global Water for Food Conference (http://waterforfood.nebraska.edu/wff2012) May 30-June 1 in Lincoln.

More than 450 people from at least 26 nations are expected to participate in the fourth annual conference sponsored by the Robert B. Daugherty Water for Food Institute (http://waterforfood.nebraska.edu/) at the University of Nebraska and the Bill & Melinda Gates Foundation at The Cornhusker Hotel.

Registration is required and information is available on the conference website, waterforfood.nebraska.edu/wff2012.

Those who can't attend can watch selected presentations live via the Web. Six sessions will be webcast. When the conference begins, viewing instructions will be posted on the website at waterforfood.nebraska.edu/wff2012. Presentations scheduled for live webcast are (all times are CDT):

May 30:
– 10:30 a.m., "The Future of Water and Agriculture: Addressing the Challenge," Roberto Lenton, founding executive director, Robert B. Daugherty Water for Food Institute.
– 11:15 a.m., "The Future of Agriculture: A Look through the Green-Blue Water Lens," Malin Falkenmark, senior scientific adviser, Stockholm International Water Institute, Sweden.
– 2:15 p.m., "Working Together for Water: Collective Action and Property Rights," Ruth Meinzen-Dick, senior research fellow, International Food Policy Research Institute.
– 3:30 p.m., Agricultural Producers Panel featuring farmers from Nebraska, Iowa, Argentina and India.

May 31:
– 8:30 a.m., Industry Leaders Panel, presented by Global Harvest Initiative, moderated by Jeff Raikes, CEO, Bill & Melinda Gates Foundation, with representatives from Elanco, IBM, John Deere, Monsanto and Pioneer Hi-Bred.
– 1:30 p.m., Women, Water and Food Panel Discussion, featuring panelists from Brazil, Nepal, South Africa and the U.S.

Registration information and conference details are available on the conference website.  The conference fosters international dialogue on key issues related to the use of water for agriculture and provides opportunities to learn from speakers with extensive experience and perspectives from diverse cultures. This year's presentations will focus on the conference theme, "Blue Water, Green Water and the Future of Agriculture."



EIA: US Ethanol Stocks, Plant Production Increased Last Wk

Domestic ethanol inventories jumped 768,000 bbl or 3.7% to 21.398 million bbl for the week-ended May 18, according to fresh data from the Energy Information Administration.  The latest increase comes after inventories were drawn down during the two prior weeks, with total supply now 2.9% above the level seen a year ago.

Ethanol production from domestic plants also rose for the third straight week, up 15,000 bpd or 1.7% to 919,000 bpd last week while up 1.9% from a year ago.  On the co-products side, ethanol producers were using 13.934 million bushels of corn to produce ethanol and 103,432 metric tons of livestock feed, 93,317 metric tons of which were distillers grains.  The rest is comprised of corn gluten feed and corn gluten meal.  Additionally, ethanol producers were providing 4.22 million pounds of corn oil daily.

Implied demand, as measured by refiner and blender net inputs, eased after rising for two straight weeks, falling 1,000 to 842,000 bpd in the week-ended May 18 from the prior week, while up 1.9% from a year ago.  Gasoline demand for the week averaged 362.6 million gallons daily.

Elsewhere, the EIA reported that implied demand for motor gasoline fell after rising for two weeks, down 338,000 bpd to 8.633 million bpd for the week-ended May 18, while four-week average gasoline demand at 8.8 million bpd was down 1.9% from the level seen a year ago.



Midwest Composting School July 24-26

The 2012 Midwest Composting School will be held July 24-26 and promises to be an intensive three-day program. This year's school will provide training in the science of composting; handling challenging feedstocks, specifically food waste; enhancing compost quality and use; using compost in construction projects; understanding compost sampling; environmental regulations; and effective management of the composting process. All three days includes a combination of hands-on training, lecture, discussion and problem solving.

Kapil Arora, agricultural engineer with Iowa State University Extension and Outreach, is the school coordinator. "Participants will receive hands-on experiences and hear from composting facility managers and other experts about techniques that will give them a competitive edge."

The school will be held on July 24-26 at the Iowa State Dairy Farm and Iowa State University Composting Facility. The 2012 Midwest Composting School is a collaborative effort between Iowa State University, Illinois State University, University of Minnesota, University of Wisconsin, and Texas A&M University. The 2012 School is funded, in part, by the Iowa Department of Natural Resources SWAP Program.

The early registration fee is $395 and must be made prior to midnight, July 10. Late registration fee is $445. Registrations must be made prior to July 17; registrations will not be accepted at the school. Enrollment is limited to 40 participants. Online registration, directions and program details are available at www.aep.iastate.edu/compost.



Iowa Biodiesel Board asks for Obama's support during visit to state
     
Iowa biodiesel producers welcomed President Obama's visit to Iowa this week and called on him to quickly finalize the EPA's proposal to increase biodiesel production under the Renewable Fuel Standard next year.

“We couldn’t agree more that our nation needs to diversify our fuel supplies in order to limit our vulnerability to oil price spikes,” said Mark Cobb, Iowa Biodiesel Board chair, in a letter to President Obama Wednesday. “That’s why we’re writing to remind you that there is something this administration can do tomorrow, without waiting for Congress, to boost biodiesel production. Following through with the EPA’s proposal to increase biodiesel production under the Renewable Fuel Standard will help meet the goals you’ve set forth.”

“The nearly year-long delay in this proposal will cost our industry dearly, particularly here in Iowa – the leading biodiesel producer in the nation,” IBB executive director Randy Olson added. “By quickly finalizing the increase, the Administration would send a strong signal to the market and unleash millions of dollars in biodiesel investments that will create jobs and economic growth across the state, and the nation.”

The RFS and the $1-per-gallon biodiesel tax incentive helped stimulate record national biodiesel production last year of nearly 1.1 billion gallons. Iowa is the nation’s leading producer. In 2011, the state’s plants produced about 175 million gallons of biodiesel, or one-sixth of the nation’s total production.

Obama’s speech Thursday is to be delivered next door to a 30-million-gallon REG biodiesel plant in Newton that directly and indirectly supports hundreds of jobs. Overall the state’s biodiesel industry supports more than 7,000 jobs.

The Obama Administration has delayed since last fall approving the EPA proposal to increase the RFS requirement for biodiesel to 1.28 billion gallons in 2013. The delay has come as the $1-per-gallon biodiesel tax incentive expired on Dec. 31, 2011.

“Last year’s record biodiesel production proved that these policies are working,” Olson said. “They are stimulating the production of an EPA-designated Advanced Biofuel that’s creating jobs and that is helping to diversify our fuel supplies so that we can limit our exposure to these oil price spikes.”



After Weeks Higher, Fertilizer Hits Dead Calm

For the first time in 11 weeks, fertilizer prices did not move significantly, according to retail fertilizer prices tracked by DTN for the third week of May 2012. The lull in prices is related to the spring fertilizer application season wrapping up in most locations, retailers report.

Five of the eight major fertilizers were higher compared to a month earlier, but none were of any consequence. DAP had an average price of $639/ton, potash $665/ton, urea $761/ton, UAN28 $432/ton and UAN32 $491/ton.  Two fertilizers had lower retail prices compared to mid-April, but like the slightly higher prices, these price moves lower were fairly minor. 10-34-0 had an average price of $782/ton and anhydrous $760/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.83/lb.N, anhydrous $0.46/lb.N, UAN28 $0.77/lb.N and UAN32 $0.77/lb.N.

Half of the eight major fertilizers are still showing double-digit increases in price compared to one year earlier. Leading the way higher is urea. The nitrogen fertilizer is 54% higher compared to last year while both UAN28 and UAN32 have jumped 15% and potash is now 11% more expensive compared to the third week of May 2011.  One fertilizer has seen just slight price increases compared to a year earlier. Anhydrous is now 2% more expensive.  The three remaining fertilizers are now actually lower compared to one year ago. DAP is now 6% lower, 10-34-0 is 5% less expensive and MAP has decreased 2% in price.



NCGA Launches Improved Website Promoting National Agricultural Genotyping Center

The National Corn Growers Association proudly launched a redesigned version of the National Agricultural Genotyping Center website.  The site, which features more intuitive navigation and a more pleasing visual layout, offers an abundance of information on the project, the partners involved in the center and many resources for those interested in its work.

"We believe strongly in the mission of the National Agricultural Genotyping Center and hope to promote the concept, its benefits and to better explain the reason for its creation through the site," said NCGA Research and Business Development Action Team Chair DeVonna Zeug.  "In furthering the science behind improved corn varieties in a way that is available to a larger pool of researchers, NCGA ensures that the most innovative, effective solutions reach farmers' fields in an efficient, responsible manner."

The website clearly defines NAGC's mission, to which Zeug referred, as translating scientific discoveries into solutions for production agriculture, food safety, bioenergy and national security.  The idea for the center came about in response to a growing need for high-throughput genotyping services within U.S. agricultural research, food production and safety testing.

In order to meet this need, NCGA in partnership with Los Alamos National Laboratory and the Donald Danforth Plant Science Center supports the establishment of the national center to alleviate the inefficiencies, redundancies, bottlenecks and gaps that impede research and commercial development. The proposed NAGC will contribute to maintaining the safety of our food supply, economic stability and national security by making high-throughput genotyping available to both private and public scientists from breeders all the way to quality control and food safety scientists.

The need for such an institution came to the forefront with the 2011 release of the USDA National Agricultural Research, Education and Economics Advisory Board Report.  Among other insights, the report noted that, with a lag time of 25 years from research to commercialization, the U.S. is now paying for our lack of investment in agricultural research.
  
Their conclusions were:
-    By 2050, worldwide demand for food and fiber is expected to grow by 70 percent.
-    Funding for production agricultural research must be dramatically increased to keep American farmers competitive in future international markets and to continue being a net exporter of agricultural products.
-    Worldwide demand for food, fiber and fuel cannot be met without a strong, well-funded U.S. production agricultural initiative.
-    High return on public agricultural research funding is due to its focus on improving production practices, genetic improvement and new uses, and unfortunately these areas of research are receiving less funding.
-    Agricultural funding has moved away from production agriculture.
-    China, India and Brazil are the largest public investors in production agricultural research and these countries will be the largest competitors to U.S. agricultural products in the future.

The center will directly benefit farmers through the development of improved varieties, enhance food safety and increase the global competitiveness of the U.S. agricultural sector.



2012 Yield Contest Online Entry Now Available

Today, the National Corn Growers Association opened online entry for the 2012 National Corn Yield Contest.  This format allows farmers to quickly and easily submit all necessary entry forms while taking advantage of the special early entry discount available until June 15.  With fees reduced to $80 until that time, NCGA reminds growers that a small time investment now saves money later this summer.

"The online entry option makes taking advantage of the early entry discount easier than ever," said NCGA Production and Stewardship Action Team Chair Dean Taylor. "We have seen many consecutive years of significant contest growth.  With favorable conditions across much of the country, I encourage members to take advantage of the discount, use the easy online form and become a part of the contest.  Also, I encourage non-members to explore the many benefits that NCGA members enjoy and consider joining both the association and entering the contest."

The online entry software allows growers to enter the contest and join NCGA and their state association. The web-based system simplifies data submission, allows users to view their submissions at any time and will allow for quick, efficient use of contest data.

Seed representatives and entrants are welcome to enter through this new platform. Current members should have their NCGA membership ID ready. Non-members wishing to participate can quickly fill out the online membership profile and enter immediately following completion of this form.

For nearly a half century, NCGA's National Corn Yield Contest has provided corn growers the opportunity to compete with their colleagues to grow the most corn per acre, helping feed and fuel the world. This has given participants not only the recognition they deserved, but the opportunity to learn from their peers.

Winners receive national recognition in publications such as the NCYC Corn Yield Guide, as well as trips or other awards from participating sponsoring seed, chemical and crop protection companies. In Kissimmee, Fla., during the 2013 Commodity Classic, state winners will be recognized at the NCYC Breakfast and national winners will receive awards at the NCGA Awards Banquet.



Vilsack Announces New and Expanded Access to Credit for America's Farmers and Ranchers

Agriculture Secretary Tom Vilsack announced today that the U.S. Department of Agriculture has made substantial, year-over-year gains in expanding credit opportunities for farmers and ranchers across the United States. The increase in farm and operating loans has helped improve farmer and rancher productivity, launched new start-up operations, and ensured opportunities in agriculture for many more Americans. With expanded access to credit, USDA is helping a new generation of farmers sustain and build upon what is now the most productive period in history for American agriculture. To that end, Vilsack announced the Department is seeking comments on a new microloan program to help small and family operations progress through their start-up years with needed resources, while building capacity, increasing equity, and eventually graduating to commercial credit.

"Over the past three years, we have expanded farm and operating loans to Americans from all backgrounds to help raise a new crop of producers across the country," said Vilsack. "As we expand options in agriculture, we're seeing a new vibrancy across the countryside as younger people—many of whom are now involved in local and regional production—pursue livelihoods in farming, raising food for local consumption. By leveraging USDA's lending programs for beginning farmers and ranchers and smaller producers, we're helping to rebuild and revitalize our rural communities."

In the past 3 years, USDA has provided 103,000 loans to family farmers totaling $14.6 billion, and under Secretary Vilsack's leadership, the department is expanding the availability of farm credit with a special focus on beginning farmers and ranchers, as well as socially disadvantaged producers:
-    Since 2008, the number of loans to beginning farmers and ranchers has climbed from 11,000 to 15,000. More than 40 percent of USDA's farm loans now go to beginning farmers;
-    Over 50 percent of the loans went to beginning and socially disadvantaged farmers and ranchers. USDA has increased lending to socially-disadvantaged producers by nearly 50 percent since 2008.
-    The total value of loans in persistent-poverty counties is 60 percent higher today than in 2010.

USDA farm loans can be used to purchase land, livestock, equipment, feed, seed, and supplies, or to construct buildings or make farm improvements. For beginning farmers and ranchers, USDA provides affordable credit, including loans under the Beginning Farmer and Rancher Program and Youth Loans. In addition, USDA provides grants under the Beginning Farmer and Rancher Development Program. The establishment of a coordinating office for USDA beginning farmer programs has supported education and training for more than 15,000 beginning farmers and ranchers.

As part of ongoing efforts to streamline and modernize its service to American agriculture, Vilsack announced today that USDA is also seeking comments on a proposal to improve its Operating Loan Program to better meet the needs of small farmers with a new microloan program. Under the microloan proposal, producers who need a loan for less than $35,000 may apply using simplified and streamlined procedures. The program will cut the required paperwork in half and simplify the process to obtain a loan. The goal of the microloan program is to better meet the credit needs of small farm operations while making more effective use of FSA resources. Small farmers often rely on credit cards or personal loans, which carry high interest rates and have less flexible payment schedules, to finance their operations. The improvements aim to offer a more efficient processing time for smaller loans, adding flexibility to some of the eligibility requirements and reducing the application requirements.

The proposed rule may be viewed at http://www.fsa.usda.gov/FSA/federalNotices?area=home&subject=lare&topic=frd-pi or through the FSA home page at http://www.fsa.usda.gov. Comments should be submitted no later than July 23, 2012 by either of the following methods:
-  Federal eRulemaking Portal: http://www.regulations.gov. Follow the online instructions for submitting comments.
-  Mail: Director, Loan Making Division (LMD), FSA, USDA, 1400 Independence Avenue, SW, Stop 0522, Washington, DC 20250-0522.



China Buyers Cancel Soybean Cargoes as Prices, Margins Fall
Some Chinese soybean importers have cancelled soybean import cargoes scheduled for delivery in the next few months, because they fear the recent fall in prices that has wiped out their crushing margins may extend further, separate traders said Wednesday.

With margins turning negative, Chinese crushers stand to lose about CNY100 on every ton of soybean they process at current prices.

The import prices of soybean in the domestic market has fallen to about CNY4,300/ton now, from about CNY4,600/ton at the start of the month.

This has pushed down the price of soyoil and soymeal in the domestic market, making crushing previously bought soybean a loss-making proposition for most processors.

A mid-sized soybean crusher in the coastal province of Shandong is likely involved in cancellations of some of the cargoes it had booked, a Shanghai-based trader said, without elaborating on the size of the cancellations.

The company booked some new cargoes of U.S. soybeans at lower prices, but canceled the Brazilian cargoes it had earlier bought at higher prices from a Japanese soybean exporter, an executive at another Shandong trading house said.

A third trader in Guangdong also confirmed the crusher has cancelled some soybean cargoes, after making losses on earlier shipments that were processed. The company couldn't be reached for comment immediately.

While some are choosing to outrightly cancel shipments, others may be reselling cargoes before they are shipped to China, traders said.

A Chongqing-based soybean importer recently resold two cargoes of soybeans to other domestic firms at discounted prices, one of the trading executives said.

According to an analyst with Shanghai JC Intelligence, some Chinese corn importers have also cancelled or delayed shipments recently, although the quantity involved isn't large.



Hormel Foods Reports Record Second Quarter Results

Hormel Foods Corporation (NYSE: HRL) today reported its performance for the fiscal year 2012 second quarter.  All comparisons are to the second quarter or first half of fiscal 2011.

The company reported fiscal 2012 second quarter net earnings of $127.9 million, up 17 percent from net earnings of $109.6 million a year earlier. For the six months ended April 29, 2012, net earnings were $256.3 million, down 1 percent from net earnings of $258.4 million the same period last year.  Diluted net earnings per share for the six months ended April 29, 2012 were $.95, equal to diluted net earnings per share of $.95 last year.

Sales for the quarter were $2 billion, up 3 percent from fiscal 2011. For the six months ended April 29, 2012, sales totaled $4.1 billion, up 4 percent from the same period last year.

“We are pleased to report record earnings and sales for the second quarter. This is a good example of our balanced business model in action, as we were able to increase earnings in four out of five segments.” said Jeffrey M. Ettinger, chairman of the board, president and chief executive officer, “Sales grew three percent, again with four of our five segments registering gains.”

“Our Jennie-O Turkey Store segment delivered another outstanding quarter, driven by value-added sales growth. Our International business also achieved impressive results, led by strong export sales. Both our Grocery Products and Specialty Foods segments returned to earnings growth during the quarter. Results of our Refrigerated Foods segment were significantly pressured by lower pork operating margins,” Ettinger remarked.

“We are particularly encouraged by the continued growth of our Jennie-O Turkey Store value-added sales and our MegaMex Foods joint venture,” Ettinger stated.

Grocery Products (13% of Net Sales, 22% of Total Segment Operating Profit)
The Grocery Products segment operating profit increased 10 percent, aided by lower pork and beef input costs.  Net sales exceeded last year by 1 percent. Strong results by our SPAM® family of products and our MegaMex Foods products offset soft sales of our microwave products and DINTY MOORE® stew.

Refrigerated Foods (51% of Net Sales, 27% of Total Segment Operating Profit)
Refrigerated Foods segment profit declined 25 percent, due primarily to lower pork operating margins during the quarter.  Net sales for the quarter declined 1 percent, with lower commodity pork sales offsetting strong sales of HORMEL® NATURAL CHOICE® deli meats, HORMEL® party trays, HORMEL® pepperoni and DILUSSO® deli products. Foodservice value-added sales also grew during the quarter.

Jennie-O Turkey Store (20% of Net Sales, 35% of Total Segment Operating Profit)
Jennie-O Turkey Store had another excellent quarter, with segment operating profit up 50 percent from a year ago, driven by value-added sales. Net sales for the quarter rose 7 percent, led by sales of JENNIE-O TURKEY STORE® retail tray pack and turkey burgers.

Specialty Foods (11% of Net Sales, 10% of Total Segment Operating Profit)
The Specialty Foods segment operating profit increased 9 percent, as pricing actions taken earlier helped offset higher raw material costs.  Net sales grew 12 percent, led by sales of private label canned meats, ingredients, bulk and nutritional items.

All Other (5% of Net Sales, 6% of Total Segment Operating Profit)
The All Other segment, which consists primarily of Hormel Foods International, grew segment profit 52 percent, and grew net sales by 11 percent, driven by stronger exports of fresh pork and the SPAM® family of products.

OUTLOOK
“Our second quarter results provide positive momentum heading into the back half of the year.  We believe continued weaker pork operating margins will be more than offset by stronger results from our other segments. We expect sales in the center of the store to slowly improve as we continue our advertising support of our HORMEL® and SPAM® brands. Taking all of the relevant factors into account, we are maintaining our full-year earnings guidance range of $1.79 to $1.89 per share,” Ettinger concluded.

Hormel Foods Corporation Declares Quarterly Dividend
The Board of Directors of Hormel Foods Corporation, a multinational marketer of consumer-branded food and meat products, has declared a regular quarterly dividend of 15 cents per share on the common stock of the corporation.  The dividend will be paid Aug. 15, 2012, to stockholders of record at the close of business on July 23, 2012.  The Aug. 15 payment will be the 336th consecutive quarterly dividend paid by the company. Since becoming a public company in 1928, Hormel Foods Corporation has paid a regular quarterly dividend without interruption.