Friday June 22 COF and other Ag News

NEBRASKA CATTLE ON FEED UP 8 PERCENT

Nebraska feedlots, with capacities of 1,000 or more head, contained 2.36 million cattle on feed on June 1, according to the USDA’s National Agricultural Statistics Service, Nebraska Field Office.  The inventory was up 8 percent from last year.  This is the highest June inventory since the data series began in 1994.

Placements in feedlots during May totaled 460,000 head, up 35 percent from 2011 and the highest May placements since the data series began in 1994.

Marketings of fed cattle during May totaled 540,000 head, up 9 percent from last year.  This is the highest May marketings since the data series began in 1994.

Other disappearance during May totaled 20,000 head, down 20 percent from 2011.

IOWA:
Cattle and calves on feed for slaughter market in Iowa for all feedlots totaled 1,305,000 on June 1, 2012 according to the USDA, National Agricultural Statistics Service, Iowa Field Office.  The inventory is down 3 percent from May 1, 2012 but up  2  percent  from  June 1,  2011.   Feedlots  with  a  capacity  greater  than  1,000 head  had  640,000 head  on  feed,  down 2 percent from last month but up 5 percent from last year.  Feedlots with a capacity less than 1,000 head had 665,000 head on feed, down 4 percent from last month and down 1 percent from last year.

Placements during May totaled 126,000 head, an increase of 19 percent from last month and up 37 percent from last year.  Feedlots with a capacity greater than 1,000 head placed 59,000 head, up 7 percent from last month and up 26 percent from last year.  Feedlots with a capacity less than 1,000 head placed 67,000 head. This is up 31 percent from last month and up 49 percent from last year.

Marketings for May were 154,000 head, up 12 percent from last month but down 7 percent from last year. Feedlots with a capacity greater than 1,000 head marketed 64,000 head, down 11 percent from last month and down 12 percent from last year.      Feedlots with  a  capacity  less  than  1,000 head marketed  90,000 head,  up  38  percent  from  last month  but  down 2 percent from last year. Other disappearance totaled 7,000 head. 

U.S. CATTLE ON FEED UP 2 PERCENT
Cattle and calves on feed for slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 11.1 million head on June 1, 2012. The inventory was  2 percent above June 1, 2011.   Placements in feedlots during May totaled 2.09 million, 15 percent above 2011.   Marketings of fed cattle during May totaled 2.02 million, 1 percent above 2011.   Other disappearance totaled 100,000 during May, 23 percent above 2011.



Rains Needed Now or Entire State Could See Drought

Summer has just begun, but some areas across the state already resemble those of late summer.

And the problem isn't just in Nebraska. All across the Great Plains, drought is starting to take hold just as corn crops are about to come into pollination – a critical time for water.

The latest U.S. Drought Monitor shows the western two-thirds of the state in a moderate drought.

And even though the northeastern quarter of the state is not in a drought, Al Dutcher, state climatologist at the University of Nebraska-Lincoln, said, "If it doesn't rain, things are going to get ugly."

So far in eastern Nebraska, based on the indicators used in the Drought Monitor, precipitation has been sufficient enough to keep crops stress at minimum so far.

"If we keep getting precipitation, I don't expect any deterioration of conditions. However, we are entering a high water use period for corn and subsoil moisture levels are below normal in this region because of our dry fall and spring."

This means eastern Nebraska could easily be moved from normal to a severe drought in a couple of weeks.

Dutcher said a big problem is high evapotranspiration rates across the state.

ET rates are determined by temperature, wind, relative humidity and solar radiation.

With temperatures above normal, high winds, high solar radiation and low relative humidity earlier this week, the combination makes it hard to keep up with corn's moisture demands, even with irrigation.

Dutcher said the biggest factor has been the wind.

Wind demands moisture, causing corn plans to start rolling their leaves to conserve moisture.

"A 10-mile-per-hour wind usually can be offset by the corn's canopy," Dutcher said. "But anything faster than that increases the airflow through the full canopy and subsequently increases surface evaporation and transpiration. When ET values get above .40 of an inch, it is difficult for corn to physically move that much water through its leaves.

"Everything is working to conspire against vegetation this year and plants are using water quicker than normal."

He said alfalfa, wheat, pasture grass and even trees that vegetated out in March of this year are a whole month ahead in the growing season and have been using water for an additional month this year.

 "We are seeing July type conditions in June pastures," he said.

Dewey Lienemann, extension educator in Webster County, said most prairie hay fields in south central Nebraska did not develop sufficiently to allow for a cutting at this time, and those that did cut the hay found a dramatic drop from last year.

In addition, alfalfa fields in dryland conditions provided from half to two-thirds of normal first cuttings and second cuttings were non-existent.

"The alfalfa fields just seem to be sitting there dormant," he said. "There may be some new growth with the moisture, but without additional moisture with this heat and wind, it will likely be limited."

Dutcher said in corn, "we have not seen too early of development because it essentially got planted when it was supposed to." The crop insurance deadline of April 11 made it so many farmers did not start planting until after that date.

 "If we would have seen a lot of early planted corn, the situation right now would be much more extreme on the corn crop," he said.

Dutcher said the part of Nebraska experiencing the worst of the drought is the Panhandle, especially the central Panhandle and Scottsbluff area. In addition, the Sandhills were upgraded to a moderate drought by the U.S. Drought Monitor this week.

As far as the future forecast, after today (June 22) precipitation chances diminish.

"We are really being dominated by an upper ridge," Dutcher said. "However, the good news is that a lot of times, we can get some pretty tremendous thunderstorms in this type of scenario as parts of eastern Nebraska did last week when it got 2.5 inches of rain."

The Climate Prediction Center's 30-day forecast indicates all of Nebraska should experience above normal temperatures. They also are indicating below normal precipitation for the eastern two-thirds of Nebraska, east/southeastward through central Illinois, Dutcher said. The highest probability of below normal precipitation has been assigned to the eastern one-third of the state. Even though, Western Nebraska has not been assigned a precipitation tendency for July, the U.S. Drought Monitor outlook for the next three months shows little relief. It also indicates areas currently depicted as experiencing normal conditions, will likely experience drought conditions within the next three months.

Dutcher said a big factor in the forecast is what the winds will do.

"The worst case scenario will be 100 degree temperatures and 30-mile-per-hour winds," he said.

He said this dry weather also means an increased risk of dry lightning strikes, which were responsible for fires in Colorado. He said there already have been some dry lightning strikes in the Panhandle.

 "With dry, burnt pastures, those strikes can rapidly build a significant fire," he said. "It is important to be aware of fire danger, especially as we go into the Fourth of July holiday."

To stay up-to-date on the latest drought conditions, visit the U.S. Drought Monitor at http://droughtmonitor.unl.edu/. The latest Drought Monitor is released each week on Thursday.




Drought Officially Over in Texas, But Not Arkansas

The last zero reading for exceptional drought in Texas was late March 2011. Until Thursday, according to the weekly U.S. Drought Monitor map. Only 6.3 percent of Texas is in extreme drought, the lowest figure since it was at 5.2 percent in December 2010. The percentage of the state in severe drought rose slightly over last week.

About 10 percent of the state is drought-free, most of that in North Texas. Local counties not listed as drought-free lie mainly along the Red River, including Delta, Fannin and Lamar, who are in the abnormally dry stage.

But new information posted Thursday shows nearly all of Arkansas is beset by drought, and the dry conditions are of particular concern to cattle ranchers.

The U.S. Drought Monitor shows more than 83 percent of the state is in severe drought, with the northeastern tip of Clay County in extreme drought. Pockets of northwest, southeast and south Arkansas are in lesser drought stages.

Last year, dry conditions in Texas and Oklahoma created a market for Arkansas hay. This year, agriculture officials say Arkansas ranchers will be the ones buying hay from out of state.



NRD TOUR FOCUSES ON FLOOD CONTROL PROTECTION PROJECTS

Natural resources districts (NRDs) projects showcasing the Lower Platte and Missouri River systems were the main focus of a two-day basin tour. Protecting lives, property, and the future was the key message behind the projects that the Papio-Missouri River NRD and the Lower Platte North NRD showcased during the tour.  The work of the Papio-Missouri River and Lower Platte North NRDs was on display when 50 NRD board members, general managers, and staff from across the state toured projects in the eastern Nebraska districts.

“The basin tour is a great opportunity for natural resources districts to share ideas and projects that have worked in their districts and for tour participants to see how NRDs are addressing local issues like flood control with local and innovative solutions,” said Marlin Peterman, assistant manager of the Omaha based Papio-Missouri River NRD.

The two-day tour started on the afternoon of Monday, June 11th by giving participants the option of a bus tour of flood control projects or an airboat tour of the Lower Platte River.  The first day highlights of the bus tour included floodway buyouts at King Lake, Elkhorn Crossing recreation area, Prairie View recreation area, proposed wetland mitigation bank, proposed water quality basins, and a tour of Metropolitan Utilities District (MUD) water treatment facility. Airboat tour participants visited several points of interest along the Platte River including Fremont well field, Hormel Park, Fremont Lakes, Highway 77 Bridge, and heard about a sandbar study and least tern and piping plover habitat, and a Native American Oto site.

“Tours like these allow for our members from across the state to see different NRD projects and issues that vary from district to district,” said Joe Anderjaska, board president of the Nebraska Association of Resources Districts.  “This tour has provided me the opportunity to see the different effects of rainfall variation from western to eastern Nebraska and what NRDs are doing to protect lives and property from flooding,” said Anderjaska.

On day two the group headed east to learn about the flooding of 2011 on the Missouri River and other Papio-Missouri River NRD projects. The first stop was a tour around Carter Lake to view the recently completed restoration project, then the group proceeded to the Omaha levee and downtown floodwall.  Other morning tour points included Bellevue’s Hayworth Park, Iske Park proposed floodway buyout project, Shadow Lake, and Patterson Farms. 



ConAgra Reports $86.2 Million Quarterly Loss

ConAgra Foods, Inc., one of North America's leading packaged food companies, reported results for the fiscal 2012 fourth quarter ended May 27, 2012.  Due to an accounting change, the fourth quarter fiscal 2012 loss per share from continuing operations was $(0.21) as reported, down versus fiscal 2011 fourth-quarter reported EPS of $0.61.

Gary Rodkin, ConAgra Foods' chief executive officer said although the business environment remains challenging, the firm posted comparable year-over-year EPS growth for the fiscal fourth quarter.

"The Consumer Foods segment posted comparable year-over-year profit growth for the fiscal fourth quarter due to contribution from acquired businesses, moderating inflation, and progress with pricing and other margin management initiatives," Rodkin said. "This represents a significant turning point in the year-over-year profit comparisons for this segment given the industry conditions that have weighed on this segment’s results over the past several quarters."

After adjusting for $0.72 of net expense in the current quarter, and $0.14 net benefit in the year-ago period, from items impacting comparability, diluted EPS of $0.51 from continuing operations in the fiscal 2012 fourth quarter increased 9% vs. the comparable $0.47 in the year-ago period.



DIRECTOR IBACH COMMENTS ON U.S. SENATE ACTION ON FEDERAL FARM BILL

Nebraska Agriculture Director Greg Ibach today offered the following statement on passage of the Agriculture Reform, Food and Jobs Act of 2012, known as the Farm Bill, in the U.S. Senate.  “I am pleased senators, after thoughtful deliberation, passed the Agriculture Reform, Food and Jobs Act. Their action today gives forward momentum to legislation that is critical to rural Nebraska.  It is important for our farmers and ranchers to know, going into the next production season, the federal farm bill policies under which they will be operating.”



NOVOZYMES APPLAUDS SENATE PASSAGE OF FARM BILL

Novozymes, the leading producer of enzymes that turn biomass into biofuels, applauded the Senate’s passage of the Agriculture Reform, Food and Jobs Act of 2012 (S. 3240), which reauthorizes the nation’s farm policy by a vote of 64 to 35. The bill includes $800 million in mandatory funding for critical energy programs, including the Biorefinery Assistance Program, Biomass Crop Assistance Program and Bio-Based Markets Program.

“This vote is a victory for our farmers, drivers – and economy. America’s renewable energy industry is putting steel in the ground and Americans to work. With this bill, we can keep that momentum and success going,” Adam Monroe, President of Novozymes North America, said. “Private companies like ours are investing but need stable policy to keep that investment going. We thank the Senate for its leadership and urge the House to follow suit.”

The Farm bill’s energy title funds USDA programs that help jumpstart additional biorefinery construction for advanced biofuels and renewable chemicals, dedicated energy crop feedstock development and consumer demand of biobased products – all encouraging further commercialization of the industry. A key House committee is scheduled to mark up its version of the farm bill on Wednesday, July 11.

Novozymes recently inaugurated a new biofuels enzyme manufacturing plant in Blair, Nebraska, the largest and most sophisticated plant of its kind in the United States. With $200 million in private investment, the facility created 400 construction jobs and 100 permanent jobs.



Center for Rural Affairs voices mixed reaction to Senate Farm Bill

The United States Senate passed their version of the 2012 Farm Bill by a vote of 64-35.  “The farm bill that passed the Senate today funds beginning farmer and rancher training, small business loans and assistance, grants and loans for small town water and sewer systems and value-added enterprise grants for family farmers and ranchers,“ said Chuck Hassebrook of the Center for Rural Affairs. “These are vitally important steps forward for rural America.”

But the Center for Rural Affairs also found real flaws in the Senate’s Farm Bill. According to Hassebrook, the bill’s greatest weakness is that there is no limit on crop insurance premium subsidies doled out to the nation’s largest farms.

“More than 10,000 large farms received over $100,000 in premium subsidies last year - a year of record income. This bill will continue over-subsidizing crop insurance premiums for wealthy and powerful agribusiness interests, helping them drive out small, mid-sized and beginning farmers,” explained Hassebrook.

“However, the bill does close loopholes in the cap on traditional farm program payments to large farms, requires recipients of crop insurance premium subsidies to practice some conservation and denies premium subsidies on native grasslands broken out for crops,” concluded Hassebrook.



Transportation Amendment Added to Senate Farm Bill

The Senate agreed, on a voice vote, to accept an amendment sponsored by Sen. Amy Klobuchar (D-Minn.) and Sen. John Hoeven (R-N.D.), which requires the U.S. Department of Agriculture (USDA) to update the rural transportation study every three years and updates an existing provision requiring USDA participation in freight rail policy proceedings of the Surface Transportation Board (STB).

The 2008 Farm Bill authorized a joint study of rural transportation issues by the Secretaries of Agriculture and Transportation. The study was published in April 2010 and provides an important source of information regarding transportation issues in rural America, many of which are freight rail transportation issues. The Klobuchar-Hoeven amendment provides that the study of rural transportation issues by the Secretaries shall be updated not less than every three years.

The Klobuchar-Hoeven amendment also updates Section 1655(j) of the Agricultural Marketing Act by replacing "Interstate Commerce Commission", a federal agency that has not existed since 1995, with the "Surface Transportation Board", which currently oversees the freight railroads of the nation. Freight rail transportation is critical to the movement of agricultural inputs to rural America and agricultural products to market. As a result, it is important that USDA participate in any STB policy proceedings to ensure reasonable rates and adequate service for rural America.



Biofuels Industry Readies for Continued Attacks in Congress on the RFS

Amendments proposed to the 2012 Farm Bill that would have repealed the federal Renewable Fuel Standard (RFS) were turned back this week in the Senate. But that does not mean the pressure on the RFS is easing.

The amendments were precluded from consideration because they were not "germane" to the legislation under consideration. That means that they will likely reappear this year when other pieces of major legislation are brought to the floor that might have even a remote connection to the nation's fuel supply. That includes a fiscal 2013 Interior-Environment Appropriations bill considered by a House subcommittee this week.

And the standard faces a challenge on other fronts, including a "seed-to-wheels" investigation being launched by Sens. James Inhofe (R-OK) and Jeffrey Coons (D-DE). Their plan calls for weekly briefings among staff with jurisdiction over the RFS and related issues (clean air, for example). Inhofe, who represents one of the nation's leading oil and gas states, is a dedicated opponent of the RFS. Coons is under pressure from poultry producers in his state who have long complained about feed costs they say are going up because of growing production of corn for ethanol.

Renewable fuel advocates say Inhofe and Coons are out to modify or even gut the standard. A number of senators from states with biofuel interests, however, have expressed interest in joining the "study group."

Ethanol industry leaders who recently gathered in Minneapolis for a Fuel Ethanol Workshop (FEW) renewed their commitment to the RFS.

Tom Buis, CEO of Growth Energy, a trade group representing ethanol manufacturers, said the RFS "is the only comprehensive energy policy adopted in the last forty years that has had a meaningful impact on reducing our addiction to foreign oil, and the facts prove this cannot be disputed." He said that when RFS was implemented in 2005, the United States was importing over 60 percent of its oil. But because of increased ethanol production, supported by the RFS, that number dropped to 45 percent.

"The RFS is only in its beginning stages and has shown tremendous promise," Growth Energy said in a statement released earlier this month. The trade group said the industry, driven by the RFS, is on the cusp of the second generation of biofuels. "Innovative new technologies are rapidly advancing capabilities; the potential to reinvest in America, create good paying jobs and enhance our energy security is abundant."

The Renewable Fuels Association and a sister organization, the Advanced Ethanol Coalition, an alliance of next-generation biofuel developers, have launched the "Don't Mess with the RFS" campaign. The promotion cites the RFS requirement that 21 billion gallons of advanced biofuels must be added to the nation's transportation fuel supply by 2022, a target, the campaign says, will create some 800,000 jobs over the next 10 years.



NAWG Applauds Senate Passage of 2012 Farm Bill

After nearly two weeks of commendable effort, the Senate moved for full passage of their version of the 2012 Farm Bill, S.3240 the Agriculture Reform, Food, and Jobs Act of 2012 by a 64-35 vote.

NAWG President Erik Younggren, farmer from Hallock, Minn. commended the Senate for moving forward with the legislation. “This will provide policy certainty for hundreds of thousands of U.S. farmers and one in 12 American job earners who rely on agriculture.”

"This bill is about standing up for our nation's farmers, our small businesses, our manufacturers, our exporters and others whose livelihoods depend on us getting the policy right," said Senate Agriculture Committee Chairwoman Debbie Stabenow (D-MI).

In addition to reauthorizing the nation’s food and farm programs, the chamber’s version calls on the Office of Management and Budget and the Pentagon to report on how sequestration expected in January 2013 will be implemented.
“American agriculture and those who depend on it around the globe need a Farm Bill” said Senate Committee on Agriculture Majority Leader Pat Roberts (R-KS).

“They need to know what to expect from the federal government to make planning decisions, to be assured of a safe and affordable food supply, and to know that their businesses and families will have the opportunity to thrive. I take this responsibility seriously.”

Efforts to reauthorize farm and food programs this year now turn to the House of Representatives who are expected to hold a committee mark up of their version of the bill after the fourth of July recess.



Against All Odds, Senate Moves on Farm Bill
Colin Woodall, NCBA Vice President of Government Affairs

The Senate’s version of the 2012 Farm Bill concluded June 21, 2012. The Senate finalized votes on the 73 amendments selected for consideration.  The bill passed by a huge bipartisan majority with a 64-35 vote.

Like many of us who have a vested interest in this legislation (S. 3240), I was pleasantly surprised by the bipartisan efforts made to move this bill through the Senate very efficiently and without much partisan rhetoric. Both Chairwoman Debbie Stabenow (D-Mich.) and Minority Leader Pat Roberts (R-Kan.) should be commended for their leadership on this very important piece of legislation. Their transparency and willingness to listen to all vested interests was very refreshing for the National Cattlemen’s Beef Association and other like-minded organizations. NCBA stands firm in our commitment to support this legislation.

Two amendments that would have been deal breakers for NCBA to support this bill are not present in the final Senate version of this legislation. First off, the amendment (#2252) proposed by Sen. Dianne Feinstein out of California did not make it to the list of amendments up for consideration. This amendment would codify an agreement made by the Humane Society of the United States (HSUS) and the United Egg Producers. This amendment would, for the first time, take animal care out of the hands of the experts and give that control to the federal government. Allowing the federal government to set on-farm production mandates with a one-size-fits-all approach is quite frankly dangerous. While this amendment pertains only to egg production, there is absolutely no assurance that this will not be used as a blueprint for the entire livestock community. In fact, I feel comfortable saying that HSUS and their out-of-touch congressional allies will not stop with eggs.

HSUS has one goal and that is to end animal agriculture. We will not stand by and let that happen. In fact, cattlemen should know that in a blog post by HSUS leader Wayne Pacelle, he attributes his defeat in getting this amendment attached to the farm bill to efforts made by the pork and cattle communities. This happened because grassroots farmers and ranchers frequently visited elected leaders in Washington, D.C, made several phone calls and flooded mailboxes in staunch opposition of the federal government attempting to strip animal care decisions away from the experts. We will once again unite and work to keep this dangerous legislation out of the House version of the farm bill.

The other amendment vehemently opposed by cattlemen and women was offered by Sen. Chuck Grassley from Iowa. This amendment (#2170) would stop packer ownership of cattle. This is nothing new from the Senator. He makes this attempt during every farm bill and at every given opportunity. Fortunately, because of the cattle community’s work on educating and staunchly opposing the U.S. Department of Agriculture’s Grain Inspection, Packers and Stockyards Administration’s rule on livestock marketing – the so-called GIPSA rule – we were able to stop this amendment from even being considered. This amendment and ideology is based on ill-conceived notions that packer ownership of cattle manipulates the price of cattle for cattlemen. In fact, a USDA-funded study that resulted from the 2002 Farm Bill clearly defines that a packer ownership ban would have negative financial implications of family farmers and ranchers. The study also illustrates that the negative impact would trickle down to the consumer level by increasing meat prices and reducing choice at the grocery store. We will be working to ensure this amendment doesn’t show up on the House side either.

Although the amendment process was certainly concerning in its early stages, all is well for cattlemen and women thanks to their outspoken grassroots advocacy and affiliation with NCBA, which was the only national cattle organization representing them on these very important issues. This legislation, as written, incorporates all NCBA priorities. Bottom-line, there is no livestock title, conservation programs – specifically EQIP (Environmental Quality Incentives Program) –  are maintained and the research title is sustained. All this is done with more than $20 billion in savings to the American taxpayer. We support this legislation and will continue working with the House to ensure amendments that would interject the federal government into production agriculture are left out of the legislation or soundly defeated. As we focus our efforts on working with the House Committee on Agriculture to ensure another version of this legislation that is positive for cattlemen, I must stress the importance of family farmers and ranchers being engaged in this process.



Pork Production at Record High for May

Commercial red meat production for the United States totaled 4.18 billion pounds in May, up 7 percent from the 3.91 billion pounds produced in May 2011, according to USDA's Friday report.

Beef production, at 2.23 billion pounds, was 5 percent above the previous year. Cattle slaughter totaled 2.88 million head, up 2 percent from May 2011. The average live weight was up 27 pounds from the previous year, at 1,280 pounds.

Veal production totaled 10.4 million pounds, 1 percent above May a year ago. Calf slaughter totaled 59,200 head, down 3 percent from May 2011. The average live weight was up 7 pounds from last year, at 295 pounds.

Pork production totaled 1.93 billion pounds, up 9 percent from the previous year. Hog slaughter totaled 9.28 million head, up 9 percent from May 2011. The average live weight was up 2 pounds from the previous year, at 277 pounds.

Lamb and mutton production, at 13.6 million pounds, was up 5 percent from May 2011. Sheep slaughter totaled 180,400 head, slightly above last year. The average live weight was 151 pounds, up 8 pounds from May a year ago.

January to May 2012 commercial red meat production was 20.2 billion pounds, up 1 percent from 2011. Accumulated beef production was down 1 percent from last year, veal was down 6 percent, pork was up 4 percent from last year, and lamb and mutton production was up 3 percent.

Nebraska .....:  626.8 million pounds - 111% of last year
Iowa ............:  549.5 million pounds - 109% of last year



USDA Cold Storage Highlights as of May 31, 2012

Total red meat supplies in freezers were down 4 percent from the previous month but up 14 percent from last year. Total pounds of beef in freezers were down 4 percent from the previous month but up 11 percent from last year. Frozen pork supplies were down 4 percent from the previous month but up 16 percent from last year. Stocks of pork bellies were down 13 percent from last month but up 14 percent from last year.

Total frozen poultry supplies on May 31, 2012 were up 10 percent from the previous month but down 5 percent from a year ago. Total stocks of chicken were up 8 percent from the previous month but down 15 percent from last year. Total pounds of turkey in freezers were up 14 percent from last month and up 12 percent from May 31, 2011.

Total natural cheese stocks in refrigerated warehouses on May 31, 2012 were down slightly from the previous month and down 2 percent from May 31, 2011.  Butter stocks were up 4 percent from last month and up 55 percent from a year ago.

Total frozen fruit stocks were up 3 percent from last month and up 11 percent from a year ago.  Total frozen vegetable stocks were down 7 percent from last month but up 1 percent from a year ago.



EPA Releases May Biodiesel Volume

The EPA said Thursday that 114.9 million gallons of biodiesel were produced in May, reporting year-to-date production of nearly 445.9 million gallons through the end of May.

Biodiesel production is reported under the EPA's Biomass-based Diesel category in the Renewable Fuel Standard (RFS). The EPA numbers show a total of 120.9 million gallons of Biomass-based Diesel for the month of May, but that figure also includes renewable diesel.

Last year, the biodiesel industry set a new production record of nearly 1.1 billion gallons, supporting more than 39,000 jobs across the country. Made from an increasingly diverse mix of resources such as recycled cooking oil, soybean oil and animal fats, biodiesel is the first and only EPA-designated Advanced Biofuel that's produced on a commercial scale across the U.S. It is produced in nearly every state in the country and is used in existing diesel engines without modification.



USGC Pleased China Anti-Dumping Investigation Against US DDGS Terminated

U.S. Grains Council is pleased that China's Ministry of Commerce announced the anti-dumping investigation against U.S. DDGS exports to China has been terminated. In the announcement, the Ministry of Commerce stated that the applicants in the case withdrew their petition on May 10, 2012, which resulted in the Ministry terminating the investigation in accordance with China's anti-dumping regulations. No anti-dumping tariffs will be imposed.



USGC Welcomes Inclusion of Mexico and Canada in TPP Negotiations

The U.S. Grains Council welcomed the announcement this week that both Mexico and Canada will participate in the Trans-Pacific Partnership (TPP) negotiations. The inclusion of the United States’ current North American Free Trade Agreement partners will build on the successful expansion of trade under the existing agreement and create substantially greater opportunities for economic growth, new jobs and increases in trade and investment flows in the future.

“Mexico and Canada are already top customers for U.S. corn, sorghum and barley,” said USGC Chairman Dr. Wendell Shauman. “We are already strong trade partners, and it makes good sense for all of us to extend that partnership across the Pacific.”

With the inclusion of both countries in the TPP agreement, U.S. producers and grain exporters and the thousands of Americans they employ stand to benefit greatly from stronger North American representation in the talks. Inclusion of Canada and Mexico will also add economic geopolitical strength to the TPP and increase other countries’ interest in joining the TPP negotiation.

As the third-largest economy in the world and the fourth-largest trading partner of the United States, Japan’s entry into the TPP negotiations would considerably increase the economic significance of the proposed agreement.

“Like Canada and Mexico, Japan has been a long-standing and loyal customer for U.S. grains and co-products, and we believe their participation will provide mutual long-term economic benefits,” Shauman said.



United States Chickens & Eggs

United States egg production totaled 7.77 billion during May 2012, down slightly from last year, according to USDA. Production included 6.69 billion table eggs, and 1.08 billion hatching eggs, of which 1.01 billion were broiler-type and 73 million were egg-type. The total number of layers during May 2012 averaged 338 million, up slightly from last year. May egg production per 100 layers was 2,296 eggs, down slightly from May 2011.

All layers in the United States on June 1, 2012 totaled 338 million, up slightly from last year. The 338 million layers consisted of 282 million layers producing table or market type eggs, 52.9 million layers producing broiler-type hatching eggs, and 2.96 million layers producing egg-type hatching eggs. Rate of lay per day on June 1, 2012, averaged 74.4 eggs per 100 layers, up slightly from June 1, 2011.
 
IOWA:
Egg production in Iowa for May 2012 was 1.23 billion eggs, up 4 percent from last month and up fractionally from last year.  The total number of  layers on hand during May was 51.9 million, up 1 percent  from  last  month  but  down  2  percent  from  the 52.9 million  layers  in May  2011.    Eggs  per  100  layers  for  the month of May were 2,372, 3 percent higher than last month and 2 percent higher than last year.



From USFRA Food Dialogues: Faces of Farming and Ranching

At U.S. Farmers and Ranchers Alliance’s Food Dialogues event in Los Angeles on June 21, the organization announced that it is looking for the “Faces of Farming and Ranching” to help put a real face on agriculture.

“USFRA has started a movement to bring more farmers and ranchers together to answer people’s questions about how their food is grown and raised,” said Bob Stallman, chairman of USFRA and president of the American Farm Bureau Federation.  “Many voices are leading conversations about food – and often leaving the people who grow and raise our food out.  We need to find the best people to be part of these conversations and represent the real farmers and ranchers of America.”

USFRA is looking for standout farmers and ranchers who are proud of what they do, eager to share their stories of continuous improvement with others and who are actively involved today in sharing those stories. Farmers and ranchers who raise a variety of foods differently, at differing scale and in all areas of the country, are encouraged to apply as it is important to show American agriculture and all of its diversity.

Entries will be accepted through September 8, 2012 at www.FoodDialogues.com. Ten to 15 finalists will be announced at the November 2012 Food Dialogues event in New York City. This national announcement will open a public online voting period where visitors can vote for their favorite candidates. Those votes will be factored into the decision to determine “The Faces of Farming and Ranching.”

Winners will be announced in early January 2013 based on votes and the recommendation of a panel of judges.

Those winners will serve in multiple high-visibility roles on behalf of USFRA, participating in a number of activities including national media interviews, advertising and public appearances. For their time, they will receive a $10,000 stipend as well as a $5,000 donation to their preferred agriculture-related or local charity in their name (charities must be pre-approved by USFRA). They’ll also receive professional speaker/media training.

“We want America to see the real faces of farming and ranching,” said Stallman. “This is an excellent way for those within agriculture to step up and showcase to the country what these hard-working farmers and ranchers are really all about.”

Entrants will be required to submit an online application and include a home video of less than three minutes that describes themselves and their farm or ranch. More details are available at www.FoodDialogues.com.



Treating Mastitis in Dairy Cattle with Vitamin D

A natural remedy that delays and reduces the severity of mastitis infection in dairy cattle is being investigated by scientists at the U.S. Department of Agriculture (USDA).

Mastitis, a common and costly disease, affects the mammary gland or udder of dairy cattle, resulting in a decrease in milk production and quality. In some cases, infected cows have to be removed from the herd. Economic losses are estimated at $2 billion a year.

Scientists at the Agricultural Research Service (ARS) National Animal Disease Center (NADC) in Ames, Iowa, have discovered that vitamin D may offer an alternative treatment for mastitis instead of antibiotics.

ARS is USDA's chief intramural scientific research agency, and this research supports the USDA priority of promoting international food security.

Molecular biologist John Lippolis, in the Ruminant Diseases and Immunology Research Unit at NADC, looked at the role of a natural form of vitamin D--prehormone 25-hydroxyvitamin D--in altering the response of the cow's immune system to a mastitis pathogen, Streptococcus uberis.

Research indicates that precise levels of vitamin D need to be in the bloodstream to prevent conditions such as rickets, or softening of the bones. Higher levels are required for proper immune function. Prehormone 25-hydroxyvitamin D is found in the blood, but very little is found in milk.

In the study, cows were given vitamin D by infusion directly into the infected quarter of the mammary gland. Scientists then evaluated data on feed intake, bacteria counts in milk, milk production, serum levels, and body temperature for all animals.

They found a significant reduction in bacterial counts and fewer clinical signs of severe infection in cows treated with vitamin D, compared to cows that received no treatment. In the early stage of the infection, as vitamin D reduced the bacterial counts, milk production was also greater in the treated animals.

These results suggest that vitamin D might help reduce antibiotic use in treating mastitis, according to Lippolis. In addition, vitamin D has the potential to decrease other bacterial and viral diseases, such as respiratory tract infections.

Read more about this research in the May/June 2012 issue of Agricultural Research magazine.



Canadian Pork Exports Healthy Despite Weak Demand From South Korea

The demand for Canadian pork products from South Korea may be slowing, but the total volume of exports is still expected to remain steady to slightly higher in calendar year 2012, according to an industry official.

South Korea imported a lot of Canadian pork products in 2011, because the nation had an outbreak of foot-and-mouth disease. But the Asian nation isn't expected to be such a big customer in 2012, said Martin Charron, vice president of market access and trade development for Canada Pork International.

South Korea's "pork production is starting to recover to where it was," Charron said. It also is importing more pork products from Canada's competition, the U.S. and Europe.

"The fact that Europe and the U.S. have negotiated a free-trade agreement with South Korea and Canada has not means Canadian pork will be more expensive for South Korea," Charron said. "Tariffs on European and U.S. pork will be reduced, while tariffs on the Canadian pork remain stable."

Martin Rice, executive director of the Canadian Pork Council, expects demand from other countries for Canadian pork products will help export numbers stay steady or even increase slightly in 2012.

"It looks like our exports to Australia are strong, as is the case for South Africa," he said. "And, exports to the U.S., Japan, Russia, China and Mexico are pretty much running at the same pace as last year."

Rice estimated that Canada will export about 1.175 million tons of pork products in 2012, which compares to 1.151 million tons in 2011.

However, pork-product prices have been experiencing a downward trend because of the slowing export demand from South Korea, Rice said. Expectations were for prices to increase, as sales were stronger in the earlier part of the year.

Rice said weak North American demand is also responsible for some of the price softening.

"The economic situation, particularly in the U.S. has been a little lackluster and there's a lot of economic uncertainty out there for people," Rice said. "It's affecting the psychology of consumers, and it doesn't seem to be very favorable for the meat sector."

Domestic demand also is sliding as Canadian processors are importing more pork products from the U.S., Rice said.

He said because the U.S. has the ability and volume to supply processors with meat year-round, they are more attracted to importing meat from the U.S. rather than taking a chance on Canadian producers, who don't always have the volume to fill domestic demand.

Rice said Canadian producers find it difficult to juggle their domestic and export markets. He said Canada exports about 70% of its product now and doesn't foresee an increase in production to better service domestic demand.

"The economic circumstances do not favor a sustained recovery in our growth or our production," he said.

Current Canadian slaughter production is at about 375,000 pigs a week. This number indicates that there is unused slaughter capacity in Canada, particularly in Alberta, Rice said.



Grassland Dairy Expansion Could Double Butter Production

The Wisconsin-based Grassland Dairy Products, Inc., which is the largest family owned butter creamery in the world, announced that it's recent expansion project will allow them to double its milk capacity and overall production output.

The company currently produces over 280,000 pounds of butter each day and supplies about one third of the world's butter. With added capacity, the plant is now poised to run eight million pounds of milk through the plant using three ultra-modern continuous churning equipment--each producing 50,000 pounds of butter per hour.

"We have a 12-bay intake and can unload 12 trucks of milk at one time and each truck contains about 50,000 pounds of milk," said Grassland Vice President Trevor Wuethrich. "Before unloading, all milk undergoes rigorous quality tests to ensure meets and exceeds standards. That milk is then stored in 50,000 gallon silos and kept at 44 degrees Fahrenheit until it's used. Once that milk is churned into butter and placed in its proper packaging, it is stored in our 60,000 square foot cold warehouse and ready for semi-trucks to take it all over the country."

He says Grassland also makes butter products for other companies like Fall Creek, Golden Goodness and Country Cream.

"Grassland packages 100 different butter brands," says Wuethrich. "About 90 of those brands being retail brands, and you'll see all throughout the United States different brands of butter, and likely most of them come from our butter plant."

In addition, Grassland also recently installed two state-of-the-art milk driers allowing the plant to dry 28,000 pounds of powder per hour or 4.7 million pounds weekly. The milk driers allow Grassland to get the most value from patron milk by drying down the milk into a powder used as a food and beverage ingredient.

Meanwhile, plans are also being thought out to install a lactose dryer to make a high quality edible powder for the food industry. The new lactose dryer would create 25 new jobs in the area.



Bank of America Partners with HSUS with Card Deal

The Animal Agriculture Alliance reports that Bank of America recently announced another partnership with the Humane Society of the United States after releasing a new HSUS-themed credit card.  This new credit card provides the radical animal rights organization with $60 for every new account opened and an additional 25 cents for every $100 spent.

This week, the Animal Agriculture Alliance wrote to Bank of America's President Brian Moynihan to request that the bank stop funding animal rights organizations such as HSUS that seek to eliminate animal agriculture.  The Alliance is a Bank of America customer. Their letter to Moynihan explained it would be forced to reconsider its relationship with Bank of America if it continued to support groups that unfairly attack the way of life of America's farmers and ranchers.

The Alliance has not yet received a response.



RFD-TV Live With Protect The Harvest And Special Guest BPI To Explore Attacks On Food Producers.

Protect The Harvest announced that the second edition of "RFD-TV Live With Protect The Harvest" will air live on Monday, June 25th at 7:00 PM Central on RFD-TV. The show will focus on how animal rights and anti-agricultural activists are using misinformation and media distortions to target American farmers, ranchers and food producers. The one hour talk show will feature Protect The Harvest board-member Erik Helland along with special guests Rich Jochum and Jay Williams from BPI, the company at the center of the so-called "Pink Slime" controversy.

"This is a dark time for the hard working American families who are feeding not just our nation, but people throughout the world," Erik Helland explained. "During the show, we're going to take an in-depth look at how animal rights groups and other activists are using lies and smears to damage our food producers in order to fulfill their radical agenda."

Erik Helland will be joined by Rich Jochum, BPI's Corporate Administrator, and Jay Williams, BPI's Plant Coordinator to examine the origin and impact of the media hysteria surrounding lean finely textured beef. This will be the first time the company has spoken on live television about the controversy.

"We've seen first-hand the tremendous damage lies and distortions in the media can cause in the lives of American businesses and families," Jochum said. "Not only do real people get hurt, but our nation's food supply becomes less safe, less nutritious and less affordable."

RFD-TV Live with Protect The Harvest will be hosted by News Director Mark Oppold. Viewers can call in with questions during the last segment of the show by calling (877) 731-6733. To find RFD-TV on your cable or satellite provider, go to http://www.rfdtv.com/findrfdtv/.