Friday June 29 Ag News

Website, Workshops Help Ranchers in Time of Drought

As drought continues to take hold of the state, managing drought on the range becomes ever more important.

Managing Drought Risk on the Ranch is a website at http://drought.unl.edu/ranchplan from the National Drought Mitigation Center that can help livestock producers get through the current drought and continue to manage their pastures when not in drought.

The NDMC developed the site in collaboration with University of Nebraska-Lincoln Extension researchers Pat Reece (now owner of Prairie and Montane Enterprises), Jerry Volesky and Matt Stockton. The NDMC also consulted with ranchers, federal grazing experts and other researchers from UNL, South Dakota State University and Texas A&M University. The project was funded by the U.S. Department of Agriculture's Risk Management Agency.

"The website has a number of things available to producers related to animal nutrition, etc., but the most important thing is that producers really do need to make adjustments in overall grazing plans and stocking rates," said Volesky, UNL Extension range and forest specialist. "With these drought conditions, we have seen pasture growth and production that is only 20 percent to 50 percent of normal."

On the positive side, in the last three to four years, the Sandhills and Panhandle have had good rainfall and there is a lot of previous years' grass left in pastures, he said. Unfortunately, the quality isn't very good.

Volesky said warm season grass started to grow, but it has stopped. So, using pastures overall is very important now through July.

"Once we get into August and September, it usually is inevitable that pastures are grazed heavier than we'd like."

The website is home to several resources for developing a ranch drought plan: assembling a planning team, identifying goals and objectives, inventorying resources, setting critical dates, developing a monitoring system, identifying strategies for preparing for and managing through drought, and implementing and evaluating the plan. Each step includes links to resources, tools and worksheets.

In addition, there are links to upcoming and past workshops related to managing drought archived on the site.

One upcoming workshop sponsored by the NDMC, Colorado State University Extension and University of Wyoming Extension is the Eastern Colorado 2012 Range and Drought Clinic July 31 in at the Burlington Community and Education Center in Burlington, Colo.

Another workshop at which the NDMC's drought team will be speaking is the annual Nebraska Grazing Conference. The team will speak the entire morning of Aug. 15 during the two-day conference in Kearney. Information about the workshops can be found on the Managing Drought Risk on the Ranch website.

The Managing Drought Risk on the Ranch website is designed to take users through the steps of developing a ranch drought plan. The "Inventory and Monitor," "Before Drought," "During Drought" and "After Drought" sections provide in-depth information and resources that will help users develop a drought plan.

"The primary focus is the plan," Volesky said. "Producers who have a plan already started putting their plans in place at the first signs of drought this past spring. For producers who don't have a good drought plan, this drought should stimulate them to start putting together a plan now."

In addition, the site includes a "Drought Basics" section, which provides in-depth information on climate and historical drought occurrence; the effects drought has on livestock, grasses and grazing management; geographic variability in precipitation and forage growth; and drought-related financial considerations.

NDMC is housed in UNL's School of Natural Resources in the Institute of Agriculture and Natural Resources.



Nebraska Soybean Board July Board of Directors Meeting

The Nebraska Soybean Board will meet July 24 and 25, 2012, at the Nebraska Agriculture Industry Education Center on the Nebraska College of Technical Agriculture (NCTA) campus in Curtis, NE. The meeting will begin at approximately 8:00 a.m. on July 24th and conclude around noon on July 25th.  Business items to be considered by the Board include a review project proposals for FY13 in program areas of Producer Communications and Domestic Marketing and the Strategic Plan. 



USDA Authorizes Emergency Grazing of CRP Acres for Six Counties in Nebraska

Nebraska Farm Service Agency (FSA) State Executive Director Dan Steinkruger today announced that six counties are authorized for emergency grazing use of Conservation Reserve Program (CRP) acres for 2012.

The counties approved for CRP emergency grazing are Banner, Dawes, Morrill, Scotts Bluff, Sheridan and Sioux.  The CRP emergency grazing authorization for 2012 is effective immediately and currently ends on September 30, 2012.

The Nebraska State FSA Committee reviewed the provisions for the emergency haying and grazing and made a number of recommendations to officials in the national office.  These recommendations are under consideration.  At the present time haying of CRP is not authorized until the July 15 nesting date.

 "Eligible producers who are interested in emergency grazing of CRP must request written approval from the Farm Service Agency before grazing eligible acreage," said Steinkruger.  "Producers must also obtain a modified conservation plan from the Natural Resources Conservation Service (NRCS) that outlines permitted grazing practices," he said.  There will be a 25 percent annual payment reduction for CRP acres used for grazing under these emergency provisions.

To take advantage of the emergency grazing provisions, authorized producers can use the CRP acreage for their own livestock or may grant another livestock producer use of the CRP acreage.  The eligible CRP acreage is limited to acres located within the approved county.

Eligible producers who are interested in grazing CRP under the emergency authorization and current CRP participants who choose to provide land for grazing to an eligible livestock producer, must first request approval to graze eligible acreage through the FSA and obtain a modified conservation plan from the NRCS to include grazing requirements.

For more information and/or to request approval for emergency grazing of CRP acres contact your local FSA office.  Additional information is available at www.fsa.usda.gov.



Experts Say Midwest Poised for Sweet and Biomass Sorghum

A group of scientist from Purdue, the University of Nebraska-Lincoln, University of Illinois and Cornell University believe sorghum could benefit from the rail system, grain elevators and corn ethanol processing facilities already in place in the Midwest region of the U.S. Released in the journal Biofuels, Bioproducts & Biorefining, the scientists argue that no single plant is an answer to biofuels, but sorghum should be a larger part of the conversation than it is today. The article also suggests sorghum is a crop farmers may be more willing to grow because they are familiar with it and it is already a low input crop that could be genetically developed to maximize cellulose, minimize seeds and minimize inputs.



New Publication Illustrates Energy Used in Row Crop Production

Each year, approximately three-fourths of Iowa’s farmland is planted with corn or soybeans. A new publication from Iowa State University Extension and Outreach shows the proportions of energy used to grow a typical corn or soybean crop in Iowa.

tanks“Energy Consumption for Row Crop Production” (PM 2089W) is available to download from the Extension Online Store, https://store.extension.iastate.edu.

“Due to the fact that so many Iowa farmers raise corn and soybeans, a quick review of the energy inputs used for row crops is helpful for managing farm energy expenses,” said Mark Hanna, ISU Extension agricultural engineer.

This publication gives an overview of annual energy consumption for corn and soybean production. Energy use typically falls under one of three categories: field operations, fertilizers and pesticides or artificial drying. For example, diesel fuel consumption is required to plant crops, but total consumption can be reduced with less aggressive tillage.

Nitrogen fertilizer application rates can be adjusted to meet the needs of the corn crop while avoiding excessive fertilizer application. Though chemical inputs such as fertilizer and pesticide are often considered an indirect energy expense for the farming operation, the manufacturing processes used to produce them require large amounts of energy.

For more tips on energy efficiency around the farmstead, visit http://farmenergy.exnet.iastate.edu



Iowa Soybean Association Responds to USDA Crop Report

This morning the United States Department of Agriculture (USDA) released its annual acreage report, the calculation of planted acres in U.S. farmland. The data, based on field surveys taken during early June, updates the USDA’s March estimates from its prospective plantings report.

Nationally, planted soybean acres are estimated at 76.1 million acres, up from 74.98 million acres in 2011, and up from the March estimate of 73.9 million acres. Corn acreage is estimated at 96.4 million acres, up from 91.92 million acres last year and higher than the March estimate of 95.86 million acres.

Iowa leads the nation in acres planted to soybeans with 9.5 million acres.  That is up from 9.35 million acres in 2011, and 700,000 acres higher than the 8.8 million projected in March. Iowa’s planted corn acres are estimated at 14.0 million, down from 14.1 million in 2011, and 600,000 lower than the March projection of 14.6 million.

Soybean stocks are estimated in this report at 667 million bushels, compared to last year’s June 1 estimate of 619 million bushels and current trade estimates of 644 million.

Iowa Soybean Association (ISA) President Dean Coleman, who farms near Humboldt, says farmers have obviously responded to the markets and planted more soybeans than anticipated in March.

“Clearly, world demand remains strong, particularly from China, as confirmed during our visit there in March. We would not be surprised to see exports increased further, which will draw down the stocks more than the USDA is estimating. With the short South American crop and weather concerns for the U.S., this fall will be tight.”

He adds, “Where the market goes in the short term will primarily be in response to the weather. It remains dry over half of the state of Iowa but a lot of the growing season for soybeans remains.”



Tentative Deal Reached on Highway Transportation Bill

Republicans and Democrats in Congress have reached a tentative agreement on a two year deal to finance the nation’s highways. The $8.4 billion dollar bill comes just days before the previous Transportation Bill expires on Saturday June 30, 2012. The legislation will reportedly help to create around 3 million jobs.

In the agreement Wednesday, Republicans from the House gave up several key points including a provision that aimed to speed up authorization on the Keystone Pipeline. Democrats, meanwhile, agreed to ease certain environmental rules, including shrinking the time frame regulators have to survey project sites.

Congress is also looking to attach a measure to the bill before the deadline on Saturday that will extend student loans at their current interest rate.

The bill carries several important provisions for the agriculture and wheat community. Amongst these is an exemption from the regulation of farm trucks that would otherwise place limits on hours of service and requirements for commercial licenses.

The exemption will apply to farm vehicles that weigh less than 26,000 pounds and are carrying commodities, livestock or equipment and are operated by a farmer, rancher or their employee. Trucks that weigh more than 26,000 pounds are exempt within 150 miles of the farm or ranch. This exemption is particularly important to farmers that carry goods and supplies across state lines.

Congress is expected to take up and pass the bill before the July 4 recess.



NCBA Supports Highway Bill

After nine extensions and more than a thousand days, the highway bill comes to an end tomorrow, June 30, 2012. In a last minute decision, the U.S. House of Representatives and the U.S. Senate today, June 29, 2012, passed a transportation bill (MAP-21)  that resulted from an agreement made Wednesday. National Cattlemen’s Beef Association President J.D. expressed approval for the legislation but said there is still work to be done.

“This very important bill is another example of legislation that resulted from bipartisan compromise. This bill has been on a road to nowhere for more than three years. Cattlemen should be relieved that progress has been made,” said Alexander, who is a cattleman from Pilger, Neb. “Specifically, this bill is a big deal to farm and ranch families across the country. Many do not realize just how important this transportation legislation is to farmers and ranchers.”

Alexander said the legislation includes many provisions that are good for cattlemen and women. The final agreement includes the Farmers’ Freedom Act (H.R. 2414), which was sponsored by Rep. James Lankford (R-Okla.). Alexander said H.R. 2414 will prevent certain farm vehicles from vigorous federal requirements, such as commercial driver’s licenses, designed for fulltime commercial drivers. Among the provisions included in H.R. 2414, the legislation provides additional uniformity across state lines. Also included on that list of provisions is H.R. 3265, which was introduced by Congressman Sam Graves (R-Mo.). This legislation waives certain driving restrictions during planting and harvesting seasons for farmers who are transporting commodities. 

Alexander said NCBA supports making transportation policies more efficient for cattle producers by creating uniform transportation laws across all states and helping states adopt transportation laws that increase allowable weight, length and trailer requirements. Alexander said NCBA, the oldest and largest national cattle organization, was disappointed that truck weights were not directly addressed in MAP-21.

“State governments need to be given the option to increase truck weights with an additional axle to livestock and semi-trailers. This will increase braking power and place less total weight on each axle, making livestock transportation safer, more economical and less stressful on U.S. roadways,” said Alexander.

Alexander said transportation was included in NCBA’s top five priorities in 2012. He said the organization supports the agreement reached and was pleased that another extension was avoided. However, he said NCBA will continue working with members of Congress to address other NCBA transportation priorities.



NCBA Statement on WTO Ruling on Country of Origin Labeling

The World Trade Organization (WTO) today, June 29, 2012, issued its final ruling on Country of Origin Labeling (COOL), which was originally released in November of 2011 and appealed on March 23, 2012, by the U.S. Trade Representative. National Cattlemen's Beef Association (NCBA) Vice President Bob McCan issued the following statement.

“The World Trade Organization has been extremely clear that mandatory Country of Origin Labeling is a clear WTO violation. This most recent decision is very similar to the initial ruling made three months ago. Instead of working diligently to bring the United States into WTO compliance, we wasted three months and taxpayer dollars on an appeal process. This did nothing more than jeopardize our strong trade relationship with Canada and Mexico, the two largest importers of U.S. beef. The Obama Administration prolonged an issue that could have been resolved quickly.

“NCBA worked with Canada and Mexico to prevent any retaliatory action that could have occurred from the unfortunate decision made by the U.S. government to appeal the initial ruling.

“Cattlemen deserve a government that fights for and protects our opportunities. We need a government that not only demands WTO compliance of our trade partners but one that ensures the United States is abiding by these same guidelines. We are committed to working with this administration and Congress to find a permanent solution to this issue in order to bring the United States back into compliance. It is absolutely critical that the United States leads by example.”



NPPC Asks U.S. To Abide By WTO MCOOL Ruling; Wants Harmonization For North American Hog Markets

The National Pork Producers Council today said it will urge the Obama administration to comply with a World Trade Organization (WTO) decision against the U.S. Mandatory Country-of-Origin Labeling (MCOOL) law and will work to promote harmonization of the North American hog market.

The WTO Appellate Body today upheld a previous WTO dispute settlement panel ruling that the meat labeling law violates U.S. trade obligations under the WTO Agreement on Technical Barriers to Trade. NPPC opposed MCOOL when it was under consideration in the U.S. Congress.

“We believed when it was being debated in Congress that MCOOL would be an unnecessary burden to trade,” said NPPC President R.C. Hunt, a pork producer from Wilson, N.C. “We have maintained that belief consistently from the outset, and we will be working to achieve U.S. compliance with today’s WTO decision.”

Hunt pointed out that the United States risks retaliation from Canada and Mexico, both of which filed complaints with the WTO over the U.S. labeling law, if it refuses to comply with the MCOOL ruling. Canada complained that MCOOL hurt Canadian livestock producers.

NPPC’s position on MCOOL is consistent with its longstanding support for harmonization of North American meat and livestock policies with regard to product labeling, food safety, animal health and subsidy programs.

On the latter two issues, NPPC has asked the Canadian government to recognize the U.S. swine herd health status as equivalent to Canada’s – recognition that will facilitate pork trade between the countries – and to reform its hog subsidy programs, which distort the North American hog and pork market, limiting the growth of U.S. pork production, employment and profitability.

Ontario’s Risk Management Program, for example, which over five years would boost Canadian hog production by more than 606,000 animals, would cut U.S. pork production by more than 430,000 hogs worth more than $73 million and cost nearly 600 U.S. pork industry jobs, according to an estimate by Iowa State University economist Dermot Hayes.

“As we work with our government to reform the U.S. labeling regime for meat,” Hunt said, “we hope the Canadian government will recognize the negative effects its programs have on our producers.”



Drought Could Cost Farmers with Future Delivery Contracts

Drought conditions could hit farmers in the pocketbook in more ways than one, Purdue Extension agricultural economist Chris Hurt says. Not only could water-starved corn and soybean crops produce smaller yields and cut into farmers' revenues, but they also could force some growers who signed future delivery contracts with grain buyers to buy back some bushels they are unable to supply.

"We've been hearing of producers calling their grain managers and talking with them about the possibilities of dealing with these yield reductions," Hurt said. "Right now it's hard to say what will happen because nobody knows where grain prices are going to go."

With some parts of Indiana now nearing a month without significant rainfall and the critical pollination phase of corn either already started or about to begin, large crop losses appear likely for some farmers. Those losses would be especially painful for farmers who sold a large percentage of their anticipated corn crop this spring in forward cash contracts.

In forward contracts, producers promise to deliver a specified amount of grain to buyers well before their crops are harvested. In turn, farmers are guaranteed a set price for their grain, even if grain prices fall below that set price before their deliveries are made.

Farmers face a double whammy if the drought persists, Hurt said. On one hand, they could fail to produce enough crop to meet their contractual obligations. On the other, they could lose additional revenue if prices rise above their locked-in rate.

Hurt gave the example of a farmer who agreed to sell corn at $5 a bushel based on an anticipated production of 150 bushels per acre, for $750 in revenue per acre. If drought reduced the farmer's production to 120 bushels per acre and pushed cash prices to $6 a bushel, the farmer would deliver that smaller crop at the price agreed upon but then have to pay the buyer for the 30 bushels per acre the farmer was unable to supply. That undeliverable charge would be $30 per acre, based on the $1 per bushel more than the contract price the grain is now worth.

"That 120 bushels delivered would only generate $600 for the farmer," Hurt said. "Then, after the farmer paid the $30 on the non-delivered grain, they would have only $570 of revenue per acre, or $180 per acre less revenue than they had originally planned."

He urges farmers who are concerned that they have sold more bushels than they might produce to contact their grain buyers and discuss delivery alternatives.

With July corn futures moving prices to about $6.60 to $6.70 a bushel, old-crop cash corn should push past $7 per bushel, Hurt said. "If we go above $6.75 or $6.80 on July futures, then I think we've got a real shot at retesting the all-time highs at around $8."



NCGA Board Member Participates on Biotech Panel for the State Department

This week, NCGA Corn Board member Bob Bowman participated on a panel at the U.S. State Department National Foreign Affairs Training Center.  Bowman, who also serves as board liaison to the Trade Policy and Biotechnology Action Team, was the first agriculture producer invited to speak during the State Department's course.  The panel focused biotechnology and global challenges related to trade, food security, energy and climate change.

"Improved seeds give farmers new choices to cope with new challenges, such as plant diseases and difficult weather conditions, and help feed a rapidly growing global population in an environmentally sustainable way," Bowman said.  "Corn farmers have embraced modern biotechnology and, because of that, we have seen the use of fewer pesticides and fuel while improving yields."

The panel leading the session included three speakers representing a diversity of views on modern biotechnology including representatives from the Center for Science in the Public Interest and the Consumers Union. This course looked at the wide array of questions surrounding and views on agricultural biotechnology, the ability of biotech crops to address global challenges and various positions on labeling biotech products.



G20 Leaders Discuss Sustainable Agriculture
(from NAWG newsletter)

Heads of state convened last week in Los Cabos, Mexico, for the annual G20 Summit. Amongst the issues the summit considered was sustainable agricultural production. The G20 Agriculture Vice Ministers and Deputies estimated global population will rise to 9.3 billion by 2050.

To accommodate this rapid growth of population, the group predicted an overall increase in agricultural production of 50-70%, and up to 100% in developing countries, would be needed to meet demand.  The group’s final report addressed the needs and goals for continuing to develop sustainable agriculture.

The group highlighted the joint work done by the United Nations’ Food and Agriculture Organization (FAO), and the Organization for Economic Cooperation and Development (OECD), which identified public and private investment, and research and development as major factors affecting a successful outcome. The report from FAO/OECD stressed the need for investment and development directed particularly toward small-scale farms in undeveloped and underdeveloped regions of the world, in order to maximize the productive and efficient use of land.

The FAO/OECD report also highlighted a number of initiatives underway in support of developing sustainable agriculture, notably the International Research Initiative for Wheat Improvement (Wheat Initiative). The Wheat Initiative was created as a result of the 2011 G20 Summit, and is a science-driven project with the goal of bettering the coordination of international research on wheat genetics, genomics and agronomy related to both bread and durum wheat. (The Wheat Initiative Scientific Board will meet this week in Fargo, North Dakota).

Looking ahead to next year and to implementing the principles outlined during the summit, the G20 leadership called on the FAO, OECD, and other relevant international organizations to create a non-binding sustainable agriculture framework for analysis, which could be voluntarily adopted by G20 member nations, by the end of 2012. 



Cargill to build new feed facility in Bovina, Texas

Cargill announced today it will build a new facility in Bovina, Tx for various feed product production including its Sweet Bran® and RAMP specialty feeds. The facility will be located on an adjoining property to an existing Cargill Cattle Feeders (CCF) location.

“We are very excited about the possibilities for serving the growing livestock market from this location in Bovina,” said Mike Lewis, vice president, Feed, Cargill Corn Milling North America. “This is a very progressive, growth-oriented community.  And it’s in the heart of one of the biggest cattle feeding regions in the world.”

Cargill’s Sweet Bran® feed product is a highly palatable corn milling feed product.Cargill’s Sweet Bran® feed product is a highly palatable corn milling feed product that drives more consistent and greater energy intake in feedlot and dairy cattle resulting in increased production of meat or milk at a lower cost.  RAMP is a complete starter feed product designed for commercial cattle feeding operations which makes starting cattle easier and results in improved performance.

“We are extremely pleased that Cargill has chosen Bovina for this investment,” said Frank Gonzalez, Mayor of Bovina. “Our community leaders recognize the value of having Cargill as a partner in our community and in our economy. They have one existing facility here now, and have proven themselves to be good neighbors and good corporate citizens. We very much look forward to continuing the relationship.”

The facility is expected to bring 37 full-time jobs to the community, along with contractors. Construction is expected to begin in August 2012 and is scheduled to be completed sometime in late summer 2013.



New EverGolTM Energy Fungicide Seed Treatment from Bayer CropScience Available to Growers on Pioneer® Brand Soybeans

Soybean producers in the U.S. now will have access to a state-of-the-art fungicide seed treatment that can provide long-lasting protection against Rhizoctonia and other fungal diseases to help ensure greener and fuller plants, better crop establishment and improved growth.

Pioneer Hi-Bred, a DuPont business, has entered into an exclusive agreement with Bayer CropScience to provide EverGolTM Energy fungicide seed treatment to growers planting Pioneer® brand soybeans, beginning with the 2013 growing season.

EverGol Energy seed treatment fungicide, recently registered for use in the U.S. by the Environmental Protection Agency, is a next-generation technology with multiple modes of action, providing enhanced protection against a broad spectrum of early-season diseases. EverGol Energy also promotes better stands under disease pressure and improves crop vigor, which can lead to more efficient use of water and nutrients.

"The launch of EverGol Energy demonstrates Bayer CropScience's commitment to providing innovative seed solutions to farmers, and our relationship with Pioneer provides another opportunity to deliver on that promise," says Ethan Luth, corn & soybean product manager at Bayer CropScience LP. "Including this new fungicide seed treatment technology for soybeans into the Pioneer Premium Seed Treatment (PPST) program will help farmers better protect their crops, maximize their investment and, ultimately, feed more people."

EverGol Energy fungicide expands the choices offered to Pioneer soybean customers as part of the PPST offering. Other PPST offerings include insecticides, an insecticide + nematode protectant and a proprietary biological/polymer for more complete protection of each soybean seed.

"Pioneer conducts extensive research evaluations of a broad range of seed treatment products among different growing conditions throughout soybean-producing areas to choose the best products for our customers," says Warren Richardson, senior marketing manager-North America seed treatment. "EverGol Energy fungicide meets those high standards and complements Pioneer's high-yielding soybean genetics to bring immense value to our soybean customers."