Ag News from Friday June 8

CME Group to Expand CBOT Grain and Oilseed Open Outcry Trading Hours to 2 p.m. CT

CME Group, the world's leading and most diverse derivatives marketplace, today announced it will extend open outcry trading hours for CBOT Grain and Oilseed futures and options to 2 p.m. CT, Monday to Friday. Daily settlements will move from 1:15 p.m. CT and will be based on market activity at or around 2 p.m. CT each day for the Grain and Oilseed futures and options as well as for Ethanol futures and options. The new open outcry trading hours will be effective beginning June 25, 2012, pending CFTC review.

Products included in the expanded hours are CBOT Corn, Mini-Sized Corn, Soybeans, Mini-Sized Soybeans, Wheat, Mini-Sized Wheat, Soybean Meal, Soybean Oil, Rough Rice and Oats futures and options, plus all related calendar spread options and inter-commodity spread options.

This follows other recent changes to CBOT trading hours.

Starting May 21, 2012, electronic trading hours for CBOT Grain, Oilseed and Ethanol futures and options were extended to Sunday to Friday, 5:00 pm to 2:00 p.m. CT. CME Group has also taken steps to extend morning open outcry hours on major USDA report days, and, pending CFTC review, open outcry trading for CBOT Grain and Oilseed futures and options will begin at 7:20 a.m. CT starting with the June 12 USDA reports.

New Settlement Procedure To Take Effect Also
Along with the schedule change, CME also plans to implement its new settlement procedures on June 25. The new settlement procedures will incorporate electronic trades, rather than just open-outcry trades. CME announced its intent to alter settlement procedures in December. It originally planned to implement the new procedures in March or April, but later said they wouldn't take effect until June.



Thirty-Day Public Comment Period on Statistical Reports Begins June 8

The U.S. Department of Agriculture (USDA) is accepting public comment now through July 9, 2012 as part of its review of release times and procedures for several major statistical reports. Due to recent changes in market hours by major commodity exchanges, the National Agricultural Statistics Service (NASS) and the World Agricultural Outlook Board (WAOB)—the USDA entities responsible for the reports—are reviewing release times and procedures of the following statistical reports: World Agricultural Supply and Demand Estimates, Acreage, Cattle, Cattle on Feed, Crop Production, Grain Stocks, Prospective Plantings, Quarterly Hogs and Pigs, and Small Grain Summary. The current USDA release times of 8:30 a.m. and 3:00 p.m. ET will remain in effect until further notice.



Miller at ICA to Focus on Public Policy Initiatives

The Iowa Cattlemen's Association has added a new staff member who will be a resource for ICA members on grassroots and public policy issues. Caitlin Miller, a Knoxville native, joined the ICA staff on May 29 as the Director of Government Relations and Public Policy.

Miller, an Iowa State University graduate with a degree in agricultural business and political science, is in a priority role to help ICA members on local, state and national issues, whether in the legislative arena or with agency relationships.

"Caitlin not only has the skill and sharpness needed to connect our needs to decision makers, but better yet, experience on the national level working with various legislative groups and leaders," said Matt Deppe, ICA's chief executive officer. "She will enhance the connection between ICA membership and government entities by using member input to outline policy focus. Caitlin will also provide avenues for membership to voice input on topics impacting the cattle and beef businesses of Iowa."

During the past two years, Miller was an account manager for DCI Group, a multifaceted public affairs firm in Washington, D.C. There, she developed strategy for policy issue campaigns. Prior to that, she served as a legislative intern for U.S. Senator Charles Grassley (2010) and the Iowa Pork Producers Association (2009). She was also a marketing intern at Riverhead Resources of Des Moines.

Miller lives in West Des Moines.



IDEAg Interconnectivity To Welcome Attendees From 20 States And Several Countries

As interconnected and precision agriculture continue to make an impact on farming, the IDEAg Interconnectivity Conference, which is scheduled for June 25-27 in Altoona, Iowa, has been the recipient of a great deal of attention from top farm producers in more than 20 states, and several countries including Canada, India and the United Kingdom. The IDEAg Interconnectivity Conference is just weeks away. Early bird discounted registration is open until June 14th. Online registration will continue through June 25th and attendees can also register onsite.

IDEAg Interconnectivity Conference is sponsored by Platinum Sponsors - John Deere, Slingshot by Raven and AT&T. Gold sponsors include Trimble and AgIntegrated; Silver sponsors include SST Software and Wells Fargo; and Bronze sponsors include United Soils, AgSync and FHR Farms. The event has also added two new Bronze Sponsors - CDMS, Inc. and Agri ImaGIS Technologies, Inc.

Demographics from registration unveils a global interest in interconnected farming. Data points for attendees include:
-    80% use smartphones
-    50% have installed interconnected systems
-    70% plan to purchase and/or add to current interconnected systems
-    70% plan to purchase application systems
-    80% plan to purchase monitoring systems
-    60% plan to purchase remote sensors
-    40% plan to purchase full software packages for on farm interconnectivity
-    The average size of farmer/producer operations is 2700 acres
-    Registrants are from 44 counties in Iowa, 12 counties in Illinois, 14 counties in Minnesota, 21 counties in Missouri and 12 counties in Nebraska
-    Of the producer/farmer registered attendees 61% are in production row crops;  44% are in row crops and livestock; and 21% are in specialty areas including fiber, produce, and forage

"The inaugural IDEAg Interconnectivity Conference is an important launch where both farmers and manufacturers can meet face-to-face over two days to discuss ways smartphones, tablets, GPS, sensors and interconnected data networks can determine trends that result in a better ROI," says Raymond L. Bianchi, vice president and group show director. "The IDEAg Interconnectivity event will provide ag producers with exclusive information on cost-effective ways to upgrade their operations."

This week the event was integrated into an informative smartphone and tablet app created by AgIntegrated. It is available on both Apple and Android platforms in the App Store and Google Play by searching "IDEAg." The free app allows users to view information about sponsoring companies, access a schedule of educational events for the show in Altoona, Iowa, and even tweet to interested members of the ag community.

The IDEAg Interconnectivity Conference provides information on the interconnected farm and allows discussion between peers on the complexities of the current and future state of interconnected agriculture. Audience members will include farmers and agribusiness leaders representing technologies that are essential for an interconnected future. To learn more, visit www.ideaggroup.com.



Study Highlights Disparities Among Crops in Potential Target Price-Based Risk Management Program

New analysis out this week from the University of Illinois suggests that a target price-based risk management program that could accompany the House Agriculture Committee’s version of the 2012 Farm Bill may offer a far more favorable safety net for some crops than for others, a prospect that worries the American Soybean Association (ASA).

Gary Schnitkey, an agricultural economist at the University of Illinois, issued a study Tuesday showing the benefit to producers in each commodity group under the target price-based program included in the farm bill crafted by the House and Senate Agriculture Committees as part of the Super Committee process last fall. These target prices may serve as the starting point for the House Ag Committee’s proposal expected to be unveiled soon. In Schnitkey’s analysis, shown in the table below, target prices for soybeans and corn are significantly lower than those for other crops and the relative projected prices for each crop under the Congressional Budget Office (CBO) 10-year baseline. While soybean and corn target prices in the proposal would be set at 77 percent of projected prices, requiring a 23 percent drop in price before triggering a payment, target prices for rice and peanuts would be set at 106 percent of projected prices, triggering far more frequent payments.

Moreover, when Schnitkey looked back at historical prices for commodities during the 37-year period from 1975 to 2011 and set the soybean and corn target prices at 77 percent, wheat at 93 percent, and rice and peanuts at 106 percent of those average historical prices, Schnitkey found that this disparity in treatment of commodities resulted in dramatic differences in the safety net support offered to producers of crops. Schnitkey’s analysis showed:

A target price for soybeans that is 77 percent of long-run price results in payments in only two out of 37 years, representing a payment in 5 percent of the years.

A target price for corn that is 77 percent of the long-run average would have made payments in four out of 37 years, representing a payment in 11 percent of the years.

A target price for wheat that is 93 percent of long-run price results in payments in twelve out of 37 years, representing a payment in 32 percent of the years.

A target price for peanuts that is 106 percent of long-run price results in payments in 20 out of 37 years, representing a payment in 54 percent of the years.

A target price for rice that is 106 percent of long-run price results in payments in 23 out of 37 years, representing a payment in 62 percent of the years.

“Our top priority in this entire farm bill process has been to maintain planting flexibility,” said ASA First Vice President Danny Murphy, a farmer from Canton, Miss. “We want the marketplace to influence our planting decisions, not the potential for a payment through a government program. If farmers see that there’s a lopsided and likely government payment coming in one crop or group of crops, there’s real potential there for significant planting distortions. The inequitable safety net among crops also could cause farmers or their lenders to favor the planting of certain crops.”

As an alternative to the target price program espoused by the House, soybean farmers have advocated the revenue-based Agriculture Risk Coverage (ARC) program currently in the Senate’s version of the bill. Additionally, ASA has suggested that if target price program is to be included in the House Agriculture Committee’s bill, it should be fully decoupled from current year planting decisions, similar to the current Counter Cyclical Payment program that uses target prices.

“What the Schnitkey analysis tells us is that inequitable target price levels among crops will result in real disparities in safety net protection for farmers. Such disparities in government safety net support is bound to influence planting decisions,” added Murphy. “Regardless of what comes out in the end, soybean farmers need to have a risk management program that treats soybeans equitably with other crops and avoids government-induced planting distortions.”



House Ag Approps Bill Cuts Research, Food Aid, CFTC Funds

Agricultural research programs, international food aid programs and the Commodity Futures Trading Commission (CFTC) all would see cuts to their FY2013 funding based on a bill adopted by the House Appropriations Committee's agriculture subcommittee on Wednesday.

In total, the bill provided $19.4 billion in funding for discretionary programs, which represents a cut of $365 million from last year's budget and is $1.7 billion lower than Obama Administration's budget request.

Agricultural research programs, which must be funded each year by appropriators, would receive $2.5 billion under the bill, a cut of $35 million from FY2012 spending levels. While $20 million was cut from the USDA-Agricultural Research Service (ARS) budget, the Agriculture and Food Research Initiative (AFRI) competitive grants program was increased by $12 million from FY2012.

Export market development programs, such as the Market Access Program (MAP) and the Foreign Market Development (FMD) program, which are essential to the wheat industry's efforts to increase exports abroad, were reauthorized at their current levels of $200 million and $34.5 million, respectively.

The bill provided $180 million for CFTC funding, which represents a $25 million cut from last year's funding level. Multiple members of the subcommittee were not pleased with the bill's cuts to the CFTC budget, claiming it would make implementing Dodd-Frank regulations difficult.

The Food for Peace program for international food aid was funded at nearly $1.15 billion, about $250 million short of the Administration's request and a 21 percent cut from FY2012.

The bill provided $812 million, a decrease of $16 million below last year's level, for USDA's Natural Resources Conservation Service (NRCS) programs and $1.5 billion, a decrease of $23.8 million from last year's level, for USDA's Farm Service Agency (FSA).

Several changes were also made in funding to nutrition programs. The Women, Infants and Children (WIC) program was funded at $6.9 billion, an increase of $300 million over FY2012 but still shy of the Administration request by $119 million.

SNAP, commonly known as the food stamp program, received $80 million dollars in funding, a $408 million cut from FY2012 and $2 billion less than the Administration's budget.

The bill will now go to the full House Appropriations Committee, and later the full House, for consideration. The Senate Appropriations Committee approved its version of the FY2013 agriculture spending bill in April.

The federal government's fiscal year ends on Sept. 30, though it is widely expected at least one short-term continuing resolution will be necessary to allow Congress more time to complete its funding work. Last year, however, the agriculture bill was one of few that moved in regular order.



ASA Urges Strong Support of USDA’s Export Programs

In a letter sent this week to the House Agriculture Appropriations Subcommittee, the American Soybean Association (ASA) joined farm groups in urging strong support for maintaining funding for the U.S. Department of Agriculture’s export programs, including the Market Access Program (MAP) and Foreign Market Development (FMD) Program. The Agriculture Appropriations Subcommittee marked up and approved the FY13 Agriculture Appropriations bill on June 6. As approved, the legislation includes full funding of $200 million for MAP and $34.5 million for FMD.

In the letter, the groups reminded the subcommittee that the increase in market development spending through MAP and FMD since 2002 corresponds to an increase of $6.1 billion in the annual value of U.S. agricultural exports, an increase of U.S. farm cash receipts by $4.4 billion, and an increase in net cash farm income by $1.5 billion.

“For every additional $1 expended by government and industry on market development during this period, U.S. food and agricultural exports increased by $35, a 35 to 1 return on investment. At the same time, the study also found that U.S. domestic farm support payments were reduced by roughly $54 million annually due to higher prices from increased demand abroad, thus reducing the net cost of farm programs,” stated the groups in the letter.

The House Appropriations Committee is expected to consider the FY13 Agriculture bill the week of June 18. MAP and FMD were also approved at $200 million and $34.5 million respectively in the version of the legislation approved by the Senate Appropriations Committee in late April.



ASA Supports Creation of Under Secretary for Trade and Foreign Ag Affairs at USDA

In a letter this week to House Agriculture Committee Chairman Frank Lucas (R-Okla.) and Ranking Member Collin Peterson (D-Minn.), the American Soybean Association (ASA) joined groups from multiple agricultural sectors in encouraging the inclusion of a provision in the Chairman’s Mark of the upcoming farm bill that would establish an Under Secretary for Trade and Foreign Agricultural Affairs at the U.S. Department of Agriculture.

“[T]he trade organizational structure at USDA has remained unchanged since it was last reorganized in 1978,” stated the groups in the letter. “Over this period, the value and nature of U.S. agriculture exports has changed dramatically. In 1978, U.S. agriculture exports totaled $29 billion whereas in 2011 they reached $136 billion. In 1978, grains and oilseeds amounted to 60 percent of all U.S. agriculture exports while meat and poultry accounted for 3 percent and produce 6 percent. Now grains and oilseeds account for 36 percent of all agriculture exports while meat and poultry constitute 15 percent and produce 13 percent. Meanwhile, over the last 30 years the challenges that U.S. agriculture faces in global markets have increased and markedly changed from primarily tariff barriers to phytosanitary and other non-tariff trade barriers.”

Also in the letter, ASA and its colleagues highlighted the coordination and streamlined cooperation within USDA that the new post would offer.

“An Under Secretary for Trade and Foreign Agricultural Affairs will provide a singular focus on trade and foster more effective coordination of transparent, rules-based trade policies in other USDA agencies,” continued the groups. “Such a position will bring unified high level representation to key trade negotiations with senior, foreign officials and within the Executive Branch. It will also allow future Administrations to recruit an Under Secretary who has extensive experience in international trade negotiation and policy issues. Furthermore, the creation of this Under Secretary position would help streamline management, create greater efficiencies and enhance emphasis in the Office of the Under Secretary responsible for key domestic programs.”



ASA Ready to Defeat Potential Anti-Checkoff Amendment to Farm Bill    
                        
ASA has indicated its strong commitment to oppose any amendment to the Senate’s 2012 Farm Bill that would negatively impact national check-off programs. There is a possibility that an amendment to make producer participation in national check-offs voluntary may be offered by Senator Jim DeMint (R-S.C.) after the Senate begins voting on the legislation.  A letter to Agriculture Committee Chairwoman Debbie Stabenow (D-Mich.) and Ranking Member Pat Roberts (R-Kan.) opposing any negative check-off amendment has been drafted, and organizations that support national check-offs are preparing to contact Senate offices if one is introduced.  ASA will continue to follow as the Farm Bill debate gets under way. 



Grain Shippers Once Again Rate Union Pacific as Top-Performing Railroad

For the second year in a row, Union Pacific was selected as the top performing railroad by leading U.S. agricultural shippers in the third annual Soy Transportation Coalition (STC) Railroad Report Card.  BNSF Railway once again finished second.  CSX Transportation climbed to third place from its fifth place ranking in 2011.  Survey respondents once again ranked Canadian Pacific in last place. 

The survey was completed anonymously by agricultural shippers of various sizes and scale of operations and was comprised of the same eleven questions from 2010 and 2011 categorized under: 1.) On Time Performance; 2.) Customer Service; and 3.) Costs.  For most questions, participants were asked to rate each of the seven Class I railroads on a scale from 1-10 with ten being the highest and one being the lowest. 

After combining the results from the eleven survey questions, Union Pacific received the highest overall rating. The company ranked first in seven out of the eleven questions.  Railroads received, on average, a three percent higher score than in 2011.  Canadian Pacific, rated as the lowest performing railroad, received a last place ranking in seven out of the eleven questions.

Soy Transportation Coalition Rail Customer Satisfaction Index – Overall Ratings:
1.) Union Pacific Railroad
2.) Burlington Northern Santa Fe Railway
3.) CSX Transportation
4.) Norfolk Southern Railway
5.) Canadian National Railway
6.) Kansas City Southern Railway
7.) Canadian Pacific Railway

“We are pleased that grain and oilseed shippers are overall expressing increased satisfaction with the service received from our nation’s railroads,” explains Mike Steenhoek, executive director of the Soy Transportation Coalition.  “Agricultural shippers particularly have been quite complimentary regarding the railroads’ response to last year’s record flooding and destructive weather events.  Communication with customers was robust and repairs to the rail network occurred with great efficiency and precision.  Rail customers took notice and were very appreciative.”   

Railroads continue to receive higher ratings for customer service than for cost issues.  Respondents continue to express concern about accessorial charges – arguing that they are simply another avenue for generating revenue rather than a legitimate cost. 

Class I railroads are the largest railroads in the country with an annual operating revenue exceeding $378 million.  Seven railroads are classified as Class Is: Burlington Northern Santa Fe Railway (BNSF), CSX Transportation, Kansas City Southern Railway, Norfolk Southern Railway, and Union Pacific Railroad.  Canadian National Railway and Canadian Pacific Railway are also considered Class Is due to their significant trackage lines in the United States. 

The seven Class I railroads annually transport more than 27 million tons of soybeans (900 million bushels), 20 million tons of soybean meal, and 7 million tons of soybean oil.  

The full results of the survey, including a copy of the questionnaire, can be accessed at www.soytransportation.org. 



Protect The Harvest Demands Wayne Pacelle Apologize For Comparing Farming To Slavery

Pro-agriculture advocacy group Protect The Harvest, is calling on Wayne Pacelle, President and CEO of HSUS, to apologize for comments he made on Iowa Public Radio linking animal agriculture to slavery.

"It's clear that Pacelle's animal liberation theology distorts his view of American farmers," said Erik Helland, a Protect The Harvest board member who was also interviewed for the story. "By comparing his fight against animal agriculture with the struggle against slavery, it's clear that Pacelle is placing the farmers who work to feed our families in the same light as slaveholders."

In the interview with reporter Sandhya Dirks of Iowa Public Radio, Pacelle said he rejects the idea that "the truth is in the middle" in the struggle between animal rights and animal agriculture. Pacelle expounded: "I don't think the truth was in the middle when our nation fought about child labor or slavery."

"Pacelle's comments show just how out of touch and outrageous his beliefs truly are," concluded Helland. "By arguing that animal agriculture is the moral equivalent of slavery, Pacelle and HSUS prove that, without a doubt, they see America's farm families as the enemy."

Click here, to hear the complete Iowa Public Radio story... 

Protect The Harvest is a new pro-agriculture advocacy group dedicated to educating Americans about the growing threat posed by the radical animal rights fringe. To learn more, please visit ProtectTheHarvest.com. 




$113 Million of US Agricultural Products Sold, Negotiated at Asia Conference

Jointly organized by the U.S. Grains Council and the American Soybean Association-International Marketing, the 6th Asia Grain Transportation Conference generated more than $113 million worth of U.S. agricultural product sales, including corn and distiller's dried grains with solubles (DDGS).

More than 130 representatives from 52 companies gathered in Singapore on May 16, 2012, to hear presentations on the latest developments in global agriculture, and to make sales deals with their counterparts across the ocean. Participants included poultry and livestock integrators, feed and flour millers, soy food and beverage producers, regional and international trading companies, shipping companies, and port handlers.

"A key objective of this annual conference is to bring together prospective buyers and sellers to an environment that encourages networking and business discussions," said Adel Yusupov, USGC regional director in Southeast Asia. "Council members and U.S. exporters benefit significantly by being able to meet with major importers from throughout the region in one location."

The central focus of the conference was the evolution of the grain business and commodity price outlook, and ocean transportation for agricultural products in bulk and containers. Reflecting the diversity of participants from all industry sectors, however, a wide range of other subjects were reviewed as well, including outlook on the dry bulk and container freight market, impact of the Panama Canal expansion on trade, cargo insurance and the latest developments in the U.S. export and transportation systems.

"The U.S. Grains Council recognizes that building lasting relationships is key to increasing U.S. agricultural exports," said Dr. Wendell Shauman, USGC chairman. "The Council offers international customers a bridge to U.S. grains and co-products. There is no greater example of this idea in practice than the conference in Southeast Asia. The Council, and other co-operators, puts together buyers and sellers to foster trade relationships that will hopefully result in sales for many years to come."



April Ethanol, Distiller Grains Exports Down from March

U.S. ethanol exports (denatured and undenatured, non-beverage) totaled 74.4 million gallons (mg) in April, down 11% from March but in line with January and February shipments, according to government data released this morning. Year-to-date exports stood at 308.9 mg through April, implying annualized demand of more than 900 mg.

At 54.8 mg, denatured ethanol for fuel use accounted for the majority of April exports. Undenatured ethanol for fuel use totaled 13.3 mg, while denatured ethanol for non-fuel use was reported at 6.0 mg. Exports of undenatured ethanol for non-fuel tallied 342,000 gallons.

Canada was the top destination in April, receiving 17.7 mg. The OPEC nation of United Arab Emirates (UAE) followed closely with 17.0 mg of imports, while its Arabian Peninsula neighbor Oman brought in 15.1 mg. Brazil imported just 5.8 mg in April, after importing 65.9 mg a year ago in April 2011 (the result of Brazil lowering its blending requirement from 25% to 20% ethanol). Meanwhile, the “ethanol shuffle” continued, and the U.S. imported 9.5 mg of sugarcane ethanol from Brazil. The United Kingdom was the fifth-leading importer in April, taking in 5.3 mg.

Exports of distillers grains, the livestock/poultry feed co-product of ethanol production, dipped slightly in April to 608,944 metric tons (mt). While down 5% from March, April exports were 4% above year-ago levels. Year-to-date DG exports totaled 2.47 million mt, 5% behind last year’s pace. China was the top importer, bringing in 267,884 mt, followed by Mexico (111,318 mt), Canada (46,352 mt), Japan (27,109 mt), and Vietnam (17,989 mt). Shipments to China were at their highest since August 2010.




Tunisia on Track for #1 US Corn Oil Export Market

Tunisia, a major producer and exporter of olive oil, is on track to become the largest international export market for U.S. corn oil for back-to-back years. Traditionally Turkey and Saudi Arabia are largest export markets for U.S. corn oil, but due to biotechnology constraints in Turkey, Tunisia quickly stepped in to the number one slot in 2011. Note that the accompanying chart combines both crude corn oil and refined corn oil exports.

A large portion of the U.S. corn oil exports to Tunisia are refined in country and then sold into Libya, This is also common for refined corn oil brought into Tunisia to then be trucked into Libya. Sunflower oil (Ukrainian) is usually the cheapest vegetable oil option on the grocery shelves in Tunisia, but Libya has grown to favor corn oil over other vegetable oils over the years, giving U.S. corn oil a qualitative advantage in this market.

According to the U.S. Grains Council, roughly 70 percent of the total corn oil exported to Tunisia, eventually ends up in Libya. There are also some direct sales to Libya and Egypt has been a growing market for U.S. corn oil the last few years. The chart illustrates that Tunisia is off to a good start in just the first two months of data for 2012.



EthanolRetailer.com Launches New Interface

This week, Growth Energy launched a new user-friendly interface for EthanolRetailer.com, a website that seeks to outline the benefits of ethanol and the growing availability of Flex Fuel pumps. The website launch is part of Growth Energy’s new national campaign to increase awareness of E15.

The website is a comprehensive and easy to use resource for current and prospective ethanol retailers across the company, as well as consumers. It also features a Flex Fuel Finder application, which simplifies the process of locating ethanol blend pumps. The application is accessible from both the website and as a smartphone app, making it easier for Americans to locate cheaper, cleaner fuel while on the go.

“EthanolRetailer.com’s Flex Fuel Finder is an important tool – highlighting the truth about ethanol and E15, while simultaneously providing Americans a quick way to locate Flex Fuel pumps,” said Growth Energy President Jim Nussle. “Growth Energy continues to lead the way in informing the public about the benefits of alternate renewable fuel, a campaign that is vital to promoting our country’s security and economic future.

EthanolRetailer.com also highlights continuously updated news on ethanol, E15, and answers questions on policy issues.  Nussle concluded, “Growth Energy takes its responsibility to educate consumers about clean energy alternatives seriously. We are confident EthanolRetailer.com’s Flex Fuel Finder will quickly gain popularity as more Americans become concerned about the country’s energy security and seek alternatives to foreign oil.”

The Flex Fuel Finder is available at EthanolRetailer.com/flexfinder.  Download FlexFinder for iPhone in the App Store and Android devices in the Android Marketplace.



Private Investment in Ag Research at Land-Grant Universities at All-Time High

(AP) -- The gap between federal support for agricultural research at large public universities and private investment continues to grow -- and the divide comes with increased threats to academic freedom and more instances of meddling in the lab, a new research report suggests.

A recent study by Food and Water Watch, a Washington-based environmental group, shows that nearly one-quarter of the money spent on agricultural research at land-grant universities comes from corporations, trade associations and foundations, an all-time high. Financial support from the U.S. Department of Agriculture accounts for less than 15 percent, the lowest level in nearly two decades.

The consumer advocacy group's report is rife with what it calls examples of how corporate money "corrupts" the public research mission at land-grant schools, which were created by the Morrill Act of 1862. The law provided federal land for states to establish agriculture and engineering colleges.

The examples range from a University of Georgia food safety program that allows industry groups to join an advisory board in exchange for annual $20,000 donations, to an Ohio State University professor whose research on genetically modified sunflowers was blocked by two seed companies after the initial results suggested the biotech sunflowers fostered the growth of weeds.

The report, entitled "Public Research, Private Gain," also explores the blurry lines created when universities and industry work hand-in-hand, such as when South Dakota State University sued farmers over wheat seed patents as part of a public-private coalition formed with a Monsanto Co. subsidiary. The Missouri-based company is known for aggressive litigation against what it calls seed piracy. Kansas State University, Colorado State and Texas A&M have pursued similar lawsuits.

Such alliances are a far cry from land-grant universities' historic role in promoting public knowledge and freely sharing the fruits of their research, said Patty Lovera, Food and Water Watch's assistant director. The report notes that publicly funded university research led to the domestication of blueberries, early varieties of high-yield hybrid corn and common tools to fight soil erosion.

"There's a real sense in agriculture of what these schools used to be," Lovera said. "There was much more trust in what they put out. This is not the same research system of decades ago, and we're acting like it is."

Deans at several agricultural schools singled out for criticism in the report maintained that while corporate support is vital, it's unlikely to sway research results or even influence what research gets done.

"We're kind of caught between a rock and a hard place," said Thomas Payne, dean of the College of Agriculture, Food and Natural Resources at the University of Missouri. "In order for research to continue, we have to have support from a variety of sources."

Payne said industry support accounts for just 5 percent of the agricultural research budget at Missouri -- though the Food and Water Watch report notes that the percentages were significantly higher in the university's plant sciences department (42 percent from 2007 to 2010) and its College of Veterinary Medicine (63 percent from 2004 to 2010).

Monsanto plays a prominent role on the Missouri campus, where science students attend lectures in Monsanto Auditorium -- built in part with a $950,000 grant from the St. Louis company -- and professors spin their university research off into private companies at the Monsanto Place "life sciences business incubator," which was built with the help of a $2 million corporate grant.

The company and others in food and agriculture production have given substantial sums to other universities as well. There's a $1 million Monsanto Student Services Wing at Iowa State University's College of Agriculture and Life Sciences, and a $250,000 endowed Monsanto chair in agricultural communications at the University of Illinois.

Cargill Inc. donated $10 million more than a decade ago for naming rights on a plant genomics building at the University of Minnesota, while two sensory labs at Purdue carry the imprimaturs of the Kroger Co. and ConAgra Foods Inc.

While the Food and Water Watch report suggests spending millions of dollars on building naming rights may also buy access to key decision makers, the donors and university officials say that's not true.

"In our experience, there is no correlation between naming rights and university research," Monsanto spokeswoman Sara Miller said.

Another Monsanto spokeswoman, Kelli Powers, said the company "is proud of its contributions to land-grant universities and support of university agricultural research," whether through naming rights or student scholarships.

Michael Doyle, a professor of food microbiology at Georgia and director of its Center for Food Safety, rejected the notion that companies such as Cargill, ConAgra and the Coca-Cola Co. unduly influence the center's research agenda when they buy seats on the Board of Advisors.

"Industry does not tell me how to spend that money," he said, noting that corporate support accounts for just 10 percent of the program's research budget. "But I ask the industry, 'What are the areas you are interested in?'"

Those interests range from pathogen control to insider access to scientists and regulators from the Atlanta-based Centers for Disease Control. Corporate partners are promised "special consideration" by Center for Food Safety faculty members, and the center's website reassures industry members that a prying press isn't allowed to attend those discussions.

"What we're trying to do is come up with practical ways the industry can make our food safer," Doyle added. "It's not specific to a company ... Sometimes the research doesn't work out the way the industry wants. We don't hold back."

With the current five-year farm bill set to expire at the end of September, Food and Water Watch wants Congress to boost the federal investment in campus agricultural research, with more resources steered toward sustainable methods, organic farming and reduced use of pesticides. The group also is calling for land-grant universities to more fully disclose gifts by private donors and wants agricultural research journals to adopt more stringent conflict-of-interest rules, similar to the recent crackdown by medical journals.

"This is a conversation that needs to be had about how we support this research," Lovera said. "There are a lot of consequences of land grant-funding of industry research that haven't been examined."