Thursday June 14 Ag News

ASA Defends Checkoff, Voices Strong Opposition to DeMint Amendment

In a letter to Senate Agriculture Committee Chairwoman Debbie Stabenow (D-Mich.) and Ranking Member Pat Roberts (R-Kan.), the American Soybean Association (ASA) joined agricultural stakeholder groups from all corners of the industry in expressing its firm opposition to an amendment to the 2012 Farm Bill that would make federal research, promotion and marketing programs—also called “checkoffs”—voluntary. ASA and its colleagues called on Sens. Stabenow and Roberts to oppose the measure proposed earlier this week by Sen. Jim DeMint (R-S.C.).

Established by an act of Congress and overseen by USDA’s Agricultural Marketing Service, the soybean checkoff is a generic marketing and research program designed to increase domestic and international demand for U.S. soy and supported entirely by U.S. soybean farmers through an assessment on all soybeans sold.

“The checkoff is not a tax. It is not something that is imposed upon us as farmers. Rather, it allows farmers to invest our own dollars to conduct research, build markets and create new uses for soy,” said ASA President Steve Wellman, a soybean farmer from Syracuse, Neb., who has paid into the checkoff since its establishment in 1992. “Our checkoff program has produced a strong return of $6.40 in increased profit for every dollar invested.”

“With oversight provided by USDA, producers have taken it upon themselves to fund over $905 million of research, promotion and consumer education programs annually through checkoff activities at no cost to the federal government,” stated the groups in the letter. “In these austere budgetary times, our producers should be commended and certainly deserve the support of Congress. Our members see the checkoff programs as an investment in their families’ future which they and their fellow producers have voluntarily adopted. “

Since ASA worked to establish the checkoff in 1992, demand for U.S. soy has soared. In those two decades, ASA and the United Soybean Board, which directs checkoff funds, has worked hard for American soybean farmers and seen very positive results. In that time, the annual value of American-grown soybeans has more than tripled, exports have more than doubled, and soy biodiesel has grown from simply a good idea to a 1 billion gallon industry, creating jobs and economic opportunities in rural communities.

“Checkoff programs cost the government zero dollars. They are paid for and guided by the farmers they serve. Even USDA oversight of the soy checkoff is funded by soybean farmers. Furthermore, farmers already have the chance to vote via referendum every five years whether we continue such checkoff programs,” said Wellman. “ASA strongly opposes Sen. DeMint’s amendment, and will work to defeat any effort that would weaken checkoff programs.”

Support for the checkoff remains overwhelmingly strong among soybean farmers. In the most recent request for referendum in 2009, less than one-tenth of a percent of the farmers required for an actual referendum participated.



Agricultural Export Coalition Strongly Opposes Amendment to Cut Market Access Program Funding and Limit Activities
In a letter dated June 13, 2012, 80 members of the Coalition to Promote U.S. Agricultural Exports strongly opposed an amendment by Sen. Tom Coburn (R-OK) to S. 3240 (Agriculture Reform, Food, and Jobs Act of 2012) to reduce annual funding for the Market Access Program (MAP) by $40 million and prohibit the use of MAP funds for certain activities. U.S. Wheat Associates and the National Association of Wheat Growers signed the letter. 

“Reducing funding for MAP would seriously undermine U.S. agriculture’s ability to compete in this highly competitive international marketplace,” the organizations said in the letter to Senate Agriculture Committee Chairwoman Debbie Stabenow (D-MI) and Ranking Minority Member Pat Roberts (R-KS). “It is a very efficient, cost-effective program.”

The letter also noted that under MAP, participants must carefully evaluate and adjust all export market development activities every year. The participants submit plans to USDA’s Foreign Agricultural Service (FAS), which reviews every promotional activity to determine their eligibility and ability to help increase demand for U.S. agricultural exports. This analysis, in conjunction with feedback from FAS overseas officers, determines whether activities merit funding.

MAP “has been tremendously successful and extremely cost-effective in helping maintain and expand U.S. agricultural exports, protect and create American jobs, strengthen farm income and help to offset the government-supported advantages afforded foreign competitors,” the organizations said. “We strongly urge that MAP continue to be funded in S. 3240 at no less than $200 million annually, which is the same level as in the current Farm Bill.”



ASA Joins Fellow Ag Groups to Urge Practical Biotech Policy in FY2013 Appropriations Bill

In a letter to House Appropriations Committee Chair Hal Rogers (R-Ky.) and Ranking Member Norm Dicks (D-Wash.) this week, the American Soybean Association (ASA) joined eight other major agricultural associations in expressing support for a provision in the Fiscal Year 2013 Appropriations bill that would give growers assurance that biotech crops that have already been approved by USDA can be planted and harvested under temporary stewardship conditions in the event of litigation against USDA’s decision. Introduced by Agriculture Subcommittee Chairman Jack Kingston (R-Ga.), the provision addresses a costly vulnerability in the regulatory process for biotechnology that is discouraging innovation in agriculture and unnecessarily putting farmers at financial risk.

“Opponents of agricultural biotechnology have repeatedly filed suits against USDA on procedural grounds in order to disrupt the regulatory process and undermine the science-based regulation of such products,” wrote the groups in the letter. “These lawsuits have also created tremendous resource constraints for USDA and have resulted in significant delays in approval of new, innovative products that will help growers provide Americans with an abundant and economical food supply while remaining competitive in the world market.”

“Section 733 provides certainty to growers with respect to their planting decisions. If enacted, growers would be assured that the crops they plant could continue to be grown, subject to appropriate interim conditions, even after a judicial ruling against USDA,” continued the groups. “The inclusion of Section 733 is a positive step to ensure that U.S. farmers and our food chain are shielded from supply disruptions caused by litigation over procedural issues unrelated to sound science or the safety of biotech crops. This legislative solution ensures that national agricultural policy is not being decided by the court system while providing a level of certainty that is critical to ensure that our agricultural producers continue to lead the world.”



Annual Nigerian Trade Team to Survey HRW, HW Crops

Seven representatives from the top milling and food companies in Nigeria will visit Nebraska, Kansas and Texas June 16 to 26 to survey the current year’s hard red winter and hard white wheat crops.

“These trade team visits connect our Nigerian customers with the farmers that consistently produce the high quality wheat they expect and the grain industry responsible for supplying it,” said Gerald Theus, assistant regional director for the U.S. Wheat Associates (USW) Sub-Sahara African regional office in Cape Town, South Africa, who will accompany the team. “Participants gain firsthand knowledge of the current year’s crop and confidence in the U.S. grain marketing system.”

USW is sponsoring this trade team with support from the Nebraska Wheat Board, Kansas Wheat and Texas Wheat. During their visit, the Nigerian team will meet with farmers and industry officials to discuss the supply and quality of the current wheat crop, although the team will likely not see much wheat in Kansas fields due to the early harvest. The team will also discuss wheat research, including the future introduction and hoped-for traits of biotech wheat, in visits with Dr. Forrest Chumley at Heartland Plant Innovations and Kansas Wheat as the team tours the Kansas Wheat Innovation Center construction site.

Team members include representatives from the world’s second largest miller, Flour Mills of Nigeria, and other leading Nigerian flour milling companies. Flour Mills of Nigeria is the world’s largest importer of HW wheat, shipped in containers from its own export elevator in Corpus Christi, TX. The company also imports soft red winter, hard red winter, hard red spring and Desert Durum® wheat.

Nigeria is the only country that has imported all six classes of U.S. wheat. Flour milling is Nigeria’s second largest industry – behind oil – and the country buys up to 90 percent of its wheat from the United States. USW’s in-country presence through an office is Lagos and a long-term commitment to technical training and assistance have combined to build a top market for U.S. wheat in Nigeria, including the largest overall buyer in 2009/10. Based on USDA analysis, USW estimated that the loss of this market alone could reduce U.S. farm gate prices by 15 cents per bushel.



Cattlemen Gather at NC Midyear Meeting to Discuss Industry Issues

Nebraska Cattlemen (NC) members descended upon the communities of Stuart and Atkinson for the NC Midyear Meeting, June 7-8th. The morning of June 7th began with the NC and NC Foundation Board of Directors meetings where industry issues were discussed. Then in the afternoon an overabundance of members tried their luck at a game of golf while others took a tour of businesses that drive the local economies. The day ended with a Welcome Reception at the Stuart auditorium sponsored by Tri-County Bank of Stuart.

Friday, June 8th, meetings moved to West Holt Public School in Atkinson, where attendees heard updates and held discussion on pertinent industry issues. NC committee meetings were held throughout the course of the day. Animal Health & Nutrition, Education, Marketing & Commerce, and Natural Resources & Environment committees met in the morning where updates were given on FDA guidance, Department of Agriculture, agriculture curriculum, post-secondary education programs, immigration, distiller’s grains, and environmental updates.

The Retail Value Steer Challenge winners and 18 scholarship recipients were honored at the NC Foundation Luncheon.

The afternoon was consumed by the Brand & Property Rights and Taxation committee meetings where issues such as private property rights, brand proposals, property tax and inheritance tax were discussed.

The day ended with the General Session sponsored by Merck Animal Health and two exciting keynote speakers, National Cattlemen’s Beef Association 2010 President Steve Foglesong and U.S. Olympic Bobsled medial winner Curt Tomasevicz. Over 200 producers who attended the meeting were impressed with the topics covered and enjoyed the 2012 NC Midyear Meeting.



Nebraska Cattlemen Foundation Recognizes Retail Value Steer Challenge Winners & Scholarship Recipients

The annual Nebraska Cattlemen Foundation Retail Value Steer Challenge (RVSC) winners and Scholarship recipients and were honored at the NC Fundation luncheon on June 8th during the Nebraska Cattlemen (NC) Midyear Meeting in Atkinson. 

The RVSC is the primary fundraiser for NC Foundation with money raised supporting youth & adult educational programs, scholarships, research & infrastructure projects, history preservation and judging teams at colleges in Nebraska. 

Three winners of each of the three categories were awarded for their steer’s performance in the 13th annual Retail Value Steer Challenge. First place in the Average Daily Gain category was awarded to Jim Lee Ranch, Valentine and First National Bank of North Platte; second went to George Cooksley, Anselmo and Jim Ramm, Atkinson; and third place was awarded to the Ogallala Nebraska Cattlemen Affiliate. The Minert/Simonson Angus Ranch, Dunning, won the Carcass Value category with The TC Ranch, Franklin, receiving second and Hi Gain Feedlot, Cozad, in third place. The Overall Winners were Pandorf Land & Cattle, Callaway and McLean Beef, Benedict in first place. Second place went to Pony Express Chevrolet, Gothenburg; and third went to a steer donated by W&J Carpenter Trucking, Gothenburg.

In addition to the RVSC awards, NC Foundation also recognized 18 youth scholarship winners for 2012.  “Thanks to the generosity of donors to the Retail Value Steer Challenge we have been able to double the number of scholarships awarded from just a few years ago” says Loretta Hamilton,  NC Foundation President.   

The NC Foundation would like to recognize the support of Darr Feedlot, Cozad, for yardage and administration to conduct the test and finish the 162 steers that were entered into this year’s challenge. In addition, the Foundation appreciates the following sponsors for their support of the Retail Value Steer Challenge: ADM Alliance Nutrition, Bill’s Volume Sales, Inc, Bruns Feedlot, LLC/Ron Bruns, Elanco Animal Health, Flying H Genetics, Grace-Mayer Insurance, Johnson Concrete, Land O'Lakes Purina Feed and Zinpro Performance Minerals.



Cancrete Waterers help provide funding to Nebraska Cattlemen Foundation

Funding for Nebraska youth and beef research are high priorities for the Nebraska Cattlemen Foundation (NCF). Cancrete Cattle Waterers out of York, Nebraska have teamed up with the NCF to support their efforts.

Cancrete Cattle Waterers will donate $25 to the NCF for every waterer that is sold in 2012. “We want our money to go to programs that make it attractive for young people to get a higher education and stay in the cattle business,” said Shaun Heldt, Advanced Agri-Direct (USA) Inc. General Manager. “These young people are our future and if we want to preserve the beef industry we need to be pro-active and support our young cattle people.”

The NCF would like to thank Cancrete for their support. “We at the Foundation are working to improve and advance the beef industry,” stated Loretta Hamilton, President of the Nebraska Cattlemen Foundation. “Cancrete’s backing is very much appreciated and we want to thank them for recognizing the need to support the beef industry.”

The first donation check was presented at the Nebraska Cattlemen Midyear Meeting in Atkinson June 8 for the waterers that have been sold thus far this year and a second donation will be presented at the Nebraska Cattlemen Annual Convention and Trade Show in December.



Food Reps Impressed by U.S. Soy Sustainability Practices

Most U.S. soybean farmers know they employ sustainable farming methods, such as conservation tillage, cover crops and tactics that help minimize nutrient runoff. Now a group of representatives from global food companies know it, too.

The United Soybean Board (USB) and soy checkoff’s Sustainability Initiative recently organized an educational series of U.S. farm tours through three states that showed five food-industry employees firsthand what U.S. soybean farmers do to keep improving their farm’s sustainability performance. The companies represented included Kellogg’s, Kraft, Sodexo and Unilever, which together use a total of about 3.5 billion pounds of soybean oil annually.

“As a food company, we’re dependent upon the sustainability of farmers and want to promote their efforts,” says Sherilyn Brodersen, Kraft Foods’ sustainable agriculture lead for the Americas. “There are so many progressive measures farmers have taken, and I’ll take that information back to my company, share those stories and help increase consumers’ awareness.”

The food industry remains by far the biggest user of U.S. soy oil, consuming more than 80 percent of it every year. And the importance the food industry and consumers place on using sustainably sourced ingredients continues to grow.

The program took participants to farms in three large and diverse soybean-producing states – Illinois, Iowa and Nebraska – and showed them a large array of farm-management practices used today. Participants learned about strip tilling, how technology can improve efficiency, methods to remove nutrients from runoff water and more.

“Many people don’t realize how high of a priority U.S. farmers place on being good stewards of our resources,” says Nebraska soybean farmer Mike Thede, team lead for the checkoff’s Sustainability Initiative. “I think it’s important to show people how common these practices are among farmers and how we’re always looking to improve even more.”



Historic Visit to Iowa Scheduled for Kosovo President

For the first time in history, the President of the Republic of Kosovo is visiting Iowa. President Atifete Jahjaga is visiting Iowa June 13-15 as part of the U.S. Department of Defense State Partnership Program. President Jahjaga will be accompanied by Ambassador Akan Ismaili, Kosovo Ambassador to the United States, Ambassador William Christopher Dell, U.S. Ambassador to Kosovo, Brig. Gen. Xhavit Gashi, Kosovo Defense Attache' to the U.S., and Maj. Gen. Tim Orr, Adjutant General of the Iowa National Guard.

The partnership is a result of the selection of Iowa in March 2011 by the U.S. Department of State, U.S. Department of Defense, and the National Guard Bureau for participation in the Security and Cooperation and State Partnership Programs (SPP). The programs' goals are to link National Guard states and territories with partner countries to foster mutual interests and establish habitual, long-term relationships.

Evolving from the U.S. Dept. of Defense's European Command "Joint Contact Team" Program established in 1992, the State Partnership Program is characterized by bilateral reciprocal relationships between the state and partner country. With a current total of 65 global partnerships, the state partner opens doors for its partner country to the full depth and breadth of U.S. capabilities, assisting in the development of democratic institutions and open market economies, as well as generating interagency coordination, cooperation and enduring relationships.

Kosovo declared its independence from Serbia on Feb. 17, 2008. The United States formally recognized Kosovo as a sovereign and independent state on Feb. 18, 2008. As of Nov. 2010, 72 countries had recognized Kosovo's independence, including 22 of 27 European Union member states, all of its neighbors (except Serbia), and other states from the Americas, Africa, and Asia.

During President Jahjaga's trip to Iowa, the Kosovo delegation will meet with Governor Terry Branstad and Lt. Governor Kim Reynolds, visit Iowa State University, tour a cattle farming operation and wind energy facilities, meet with community leaders and economic development experts, tour Des Moines University, and meet with senior leaders from the Iowa Judicial Branch and Graceland University.



Stop Subsidizing Hog Production, NPPC Asks Canada
In discussions this week with Canadian federal and provincial government officials, the National Pork Producers Council asked that Canada stop its hog subsidy programs before entering the Trans-Pacific Partnership (TPP) trade talks. It pointed out that if similar programs existed in the United States, U.S. pork production would more than double in 10 years, adversely affecting the Canadian hog market.

[The TPP is an Asia-Pacific regional trade agreement that currently includes the United States, Australia, Brunei, Chile, Malaysia, New Zealand, Peru, Singapore and Vietnam. Subsidy programs are not within the scope of the TPP negotiations.]

Looking only at the Quebec subsidy program, Iowa State University economist Dermot Hayes estimated that a similar U.S. program would increase pork production in the United States by 8.4 percent annually. Over 10 years, an additional 140 million hogs would be marketed, with Iowa alone adding 41 million animals to that number. (Currently, about 110 million hogs a year are marketed in the United States.)

“The Canadian subsidy programs distort the North American hog and pork market, limiting the growth of U.S. production, employment and profitability,” said Doug Wolf, NPPC’s immediate past president and chairman of its trade committee. “Canada’s entry into the TPP negotiations should be contingent on renunciation of its trade-distorting subsidies.”

Hayes has calculated, for example, that over five years Ontario’s Risk Management Program, which 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.

In response to criticism of its subsidy programs, Canada has pointed to the U.S. Mandatory Country-of-Origin Labeling (MCOOL) law, which the World Trade Organization last November said violates U.S. trade obligations. But the U.S. pork industry did not support MCOOL, and NPPC is urging the United States to comply with the upcoming WTO appellate ruling on the U.S. appeal of the earlier decision.

“You can’t argue that MCOOL distorts the hog markets then ignore the far greater impact of the Canadian subsidy programs,” Wolf said.



NCGA Board Elects Martin Barbre as Next Farmer to Help Lead Organization

The National Corn Growers Association's Corn Board has elected Martin Barbre of Illinois to become the organization's first vice president for the next fiscal year, which begins Oct. 1.

"This promises to be a very challenging year for corn growers on the policy front, with a new farm bill in hot debate in Washington and continued attacks on ethanol and the Renewable Fuel Standard," said Martin Barbre. "I'm looking forward to working with my fellow officers and my colleagues on the board to move our association's mission forward and take our growers to higher levels of opportunity."

A farmer for more than three decades, Barbre joined NCGA in 1988. He is a partner in Chestin Farms in Carmi, Ill., with his son and son-in-law. On their farm, they grow corn, soybeans, wheat, tobacco and alfalfa, and maintain a cow-and- calf herd.

Barbre currently serves as chair of NCGA's NASCAR Advisory Committee and was co-chair of the 2012 Commodity Classic Committee. Formerly, he served as chairman of the organization's Biotechnology Working Group from 2006 to 2008 and on the Association Relations Committee. At the state level, Barbre has served on the board of the Illinois Corn Growers Association, and was that organization's president in 2005.

"At NCGA, we've always been fortunate to have the best and brightest growers step forward to leadership roles, and we're looking forward to having Martin Barbre join the ranks of officers," said NCGA President Garry Niemeyer. "He has always been a respected and thoughtful voice on the board, and his long list of activities and accomplishments clearly demonstrate his dedication to farmers and expertise in the field."

On Oct. 1, Niemeyer, of Illinois, becomes chairman and the current first vice president, Pam Johnson of Iowa, becomes NCGA president. In October 2013, Johnson becomes chairwoman and Barbre becomes president.



CWT Assists with 4.8 Million Pounds of Cheese and Butter Export Sales

Last week, Cooperatives Working Together (CWT) accepted 13 requests for export assistance from Bongards, Dairy Farmers of America, Darigold, Maryland & Virginia Milk Producers Cooperative and United Dairymen of Arizona to sell a total of 1,511 metric tons (3.331 million pounds) of Cheddar cheese and 686 metric tons (1.512 million pounds) of butter to customers in Asia, Central America and the Middle East. The product will be delivered July through December 2012.

In 2012, CWT has assisted member cooperatives in making export sales of Cheddar, Monterey Jack and Gouda cheese totaling 60.0 million pounds, and butter and anhydrous milk fat (AMF) totaling 45.2 million pounds, to 32 countries on four continents. The butter and AMF total was adjusted due to cancellations. On a butterfat basis, the milk equivalent of these exports was 1.539 billion pounds, or the same as the annual milk production of 73,200 cows.

Assisting CWT members through the Export Assistance program positively impacts producer milk prices in the short-term by reducing inventories that overhang the market and depress cheese and butter prices. In the long-term, CWT’s Export Assistance program helps member cooperatives gain and maintain market share, thus expanding the demand for U.S. dairy products and the farm milk that produces them.

CWT will pay export bonuses to the bidders only when delivery of the product is verified by the submission of the required documentation.



Brazil Winter Corn Crop Seen at 38.8 MT

Brazilian agricultural research firm Agroconsult said Thursday that good rains in the second half of May benefited the country's winter corn crop, seen at 38.8 million metric tons.  Agronomists at the firm traveled to the grains-producing states of Mato Grosso and Goias, in central-western Brazil, in late May and early June to find signs of excellent productivity in corn fields.  As a result, this year's winter corn crop, which is starting to be harvested, should exceed last year's by 84%, Agroconsult said.  Including the summer crop that was harvested earlier this year, Agroconsult sees Brazil's 2011-12 corn production at an all-time high 73.7 million tons, shattering the country's previous record corn crop of 58.9 million tons set in 2007-08.



China June Soybean Imports Up

 China's June soybean imports will likely be 6.56 million metric tons, the Ministry of Commerce said Wednesday.  The ministry revised its estimate upward from 5.16 million tons based on reports from importers during the May 16-31 period, according to a statement on its website.  The state-backed China National Grain & Oils Information Center said June soybean imports will likely reach 6 million tons and July shipments will total 5.7 million tons.  The ministry's regular forecast may not tally with the actual import figure, as it doesn't include all cargoes.  The ministry issues the estimates twice a month.



Smithfield Foods 4Q Net Falls 19% as Sales Growth Slows

Smithfield Foods Inc.'s fiscal fourth-quarter earnings fell 19% as the pork producer sales grew slower than expected and margins shrank.

"Although higher pork supplies and softer-than-expected domestic retail demand are currently adversely impacting fresh pork margins, we expect profitability to improve as we move through the summer months and into the fall when margins are traditionally very good," said President and Chief Executive C. Larry Pope.

Smithfield's board is also allowing the company to buy up to an additional $250 million of common stock over the next two years since it has nearly exhausted its prior $250 million stock repurchase authorization.

Smithfield--whose brands also include John Morrell, Armour and Farmland--has seen its revenue increase in recent quarters on strong demand from foreign markets. But like other livestock producers, high feed costs have challenged its bottom line. Smithfield--the largest U.S. pork producer by volume--has taken positions in futures markets to control its costs for feed and, to a lesser extent, revenue from sales. The company has previously predicted its hog-raising business would likely turn a profit in every quarter during fiscal 2013.

For the quarter ended April 29, Smithfield reported a profit of $79.5 million, or 49 cents a share, down from $98.4 million, or 59 cents, a year earlier. The most-recent quarter included insurance reimbursements of 6 cents a share, while the year-earlier quarter included a debt-retirement charge of 26 cents a share. Sales grew 3% to $3.21 billion.

Gross margin fell to 10.7% from 14.6% as input costs jumped 7.8%.

Total pork sales--the biggest contributor to Smithfield's revenue--rose 1.5%, reflecting an increase of 2.8% for fresh pork and 0.5% bump for packaged meats. A key area of expansion for many meat companies, including Smithfield, is branded and packaged meat products as they are typically more profitable than sales of commoditized products like live animals and fresh meat.

The hog-production segment's sales jumped 7.9%, while its international business saw a 0.3% rise.



Biodiesel industry's national ad effort takes off

It's loud, fast, and thrilling, and it's more than a concept. Biodiesel is America's only advanced biofuel available nationwide. It's the fast track to American jobs - the road to energy independence. As the U.S. biodiesel industry shows in its just-launched ad campaign, biodiesel is here, now.

"A billion gallons. That's how much imported diesel biodiesel replaced last year," said Joe Jobe, CEO of the National Biodiesel Board. "This is not just an idea. Biodiesel is working today to meet renewable fuel demands, and we can do more."

The ad campaign is the second time the industry has taken to the airwaves, television screens, web, and print outlets to tell its story. And what a story it is. Ads center around land speed record holder Brent Hajek. The Oklahoma soybean farmer shattered the previous record in a stock Ford SuperDuty™ diesel truck running on 20 percent biodiesel. There is no wondering if the fuel works or if it is a viable alternative when Hajek's truck blows past at 182 miles per hour.

The multi-million dollar project includes national television and web advertising, and regional print and radio advertising. Two 30-second spots will air across the nation on Sunday-morning network news public affairs shows, beginning this Sunday, June 17th.  The National Biodiesel Board worked with PCI Communications, a leading provider of creative communications services for Fortune 500 corporations, national associations, and federal agencies to create the campaign. Take a look: www.AmericasAdvancedBiofuel.com.

"This ad campaign tells people that advanced biofuel is here now,” said Jobe. "Biodiesel creates jobs, is better for the environment, and supports energy security. AND it breaks land speed records too. There's no doubt this is a great alternative fuel success story."

Biodiesel is a renewable, clean-burning diesel replacement made from an increasingly diverse mix of resources such as agricultural oils, recycled cooking oil and animal fats, with a host of potential future feedstocks such as algae under research. It is the first and only commercial-scale fuel produced nationwide to meet the EPA’s definition as an advanced biofuel under the agency’s Renewable Fuel Standard, which is spurring development of sustainable alternatives to imported oil.

The EPA has determined that biodiesel reduces greenhouse gas emissions by 57 percent to 86 percent compared with petroleum diesel, depending on the feedstock used. Biodiesel also has the highest energy balance of any domestic liquid fuel, yielding 4 ½ units of energy for every unit of fossil energy it takes to produce it. The EPA also says biodiesel dramatically reduces nearly every toxic air pollutant compared with traditional diesel.



CME to Release $130M for MFG Customers

The trustee unwinding the brokerage of MF Global Holdings Ltd. struck a deal with CME Group Inc. that will see the futures exchange operator turn over about $130 million in property that will go to former customers of the collapsed firm.

The figure will be split between U.S.-based and overseas accounts, according to a Thursday notice from trustee James Giddens. An additional $16.5 million in property will continue to be held by CME to cover any claims against the trustee, and $28.5 million more will go to the judge overseeing the case to be allocated later, according to a spokesman for Mr. Giddens.

Thursday's agreement does not yet alter Mr. Giddens's estimate of $1.6 billion in customer funds held by MF Global that have yet to be returned to customers. That figure depends on total claims and recovery efforts, according to the trustee's spokesman. Under terms of the agreement struck Thursday, CME's own claims will have a lower priority of payment than MF Global's former customers'.

"This agreement supports my goal to expeditiously resolve outstanding conflicts with parties as we work to recover and distribute as much customer property as possible as quickly as possible, in a manner that is fair and consistent with the law," Mr. Giddens said in a statement Thursday.

MF Global's rapid implosion in late October left holes in the accounts of the fund managers, farmers and traders that depended on the firm to do business in financial markets. CME, which drew criticism from MF Global clients over its early handling of the firm's failure, offered a financial guarantee that enabled Giddens to free up the majority of customer cash and other property held by MF Global when it failed.

"Such an agreement avoids the delay, risk and expense that would arise from any dispute to resolve the interpretation of exchange rules going forward," said CME spokeswoman Laurie Bischel. "Therefore it helps us get as much money to customers as quickly as we can."

The agreement came up at a court hearing Thursday, although Judge Martin Glenn of U.S. Bankruptcy Court in Manhattan was more concerned with venting his frustration at the snail-like pace of a customer-asset fight in the U.K. between Giddens and the company's U.K. administrator.

A U.K. court has scheduled an April 2013 trial on the matter, with both sides fighting over who has claims on the $700 million in customer assets, which represents nearly half of the $1.6 billion allegedly missing from "segregated" accounts.

Judge Glenn said that it was "eye-popping to me when I heard that it isn't until April 2013." He added, "I can assure you if there was a trial here it wouldn't be in April 2013." The judge said he would communicate with the U.K. court if necessary.

Thursday marked the first hearing in the case since Mr. Giddens and Louis J. Freeh, the trustee overseeing MF Global's estate, issued lengthy reports on the status of MF Global's bankruptcy and the brokerage's liquidation.

Giddens is winding down MF Global's broker-dealer business under the authority of the Securities Investor Protection Act, which governs the liquidation of failed brokerage firms. The liquidation is separate from the bankruptcy case of MF Global Holdings, the parent company, which filed for Chapter 11 protection last fall. That estate is now being overseen by Freeh, a former director of the Federal Bureau of Investigation.

Giddens has recovered about $5.3 billion of the $5.5 billion to $6 billion in U.S. customers' segregated funds held at the brokerage and has returned more than $4 billion to customers via a series of bulk transfers arranged by CME in the weeks following MF Global's demise last year.



A Child Born in 2011 Will Cost $234,900 to Raise According to USDA Report

Today, USDA released the annual report, Expenditures on Children by Families, finding that a middle-income family with a child born in 2011 can expect to spend about $234,900 ($295,560 if projected inflation costs are factored in*) for food, shelter, and other necessities to raise that child over the next 17 years. This represents a 3.5 percent increase from 2010. Expenses for transportation, child care, education, and food saw the largest percentage increases related to child rearing from 2010. There were smaller increases in housing, clothing, health care, and miscellaneous expenses on a child during the same period.

The report, issued annually since 1960, is a valuable resource to courts and state governments in determining child support guidelines and foster care payments. The report is based on data from the Federal government's Consumer Expenditure Survey, the most comprehensive source of information available on household expenditures. For the year 2011, annual child-rearing expenses per child for a middle-income, two-parent family ranged from $12,290 to $14,320, depending on the age of the child.

The report, developed by the USDA Center for Nutrition Policy and Promotion, notes that family income affects child rearing costs. A family earning less than $59,410 per year can expect to spend a total of $169,080 (in 2011 dollars) on a child from birth through high school. Similarly, middle-income parents with an income between $59,410 and $102,870 can expect to spend $234,900**; and a family earning more than $102,870 can expect to spend $389,670.

For middle-income families, housing costs are the single largest expenditure on a child, averaging $70,560 or 30 percent of the total cost over 17 years. Child care and education (for those incurring these expenses) and food were the next two largest expenses, accounting for 18 and 16 percent of the total cost over 17 years. These estimates do not include costs associated with pregnancy or the cost of a college education or education beyond high school.

The report notes geographic variations in the cost of raising a child, with expenses the highest for families living in the urban Northeast, followed by the urban West and urban Midwest. Families living in the urban South and rural areas have the lowest child-rearing expenses.

This is the 51th year USDA has issued its annual report on the cost of raising a child. In 1960, the first year the report was issued, a middle-income family could have expected to spend $25,230 ($191,720 in 2011 dollars) to raise a child through age seventeen. Housing was the largest expense on a child both then and now. Health care expenses on a child doubled as a percentage of total child-rearing costs. In addition, some current-day costs, such as child care, were negligible in 1960.

Expenses per child decrease as a family has more children. Families with three or more children spend 22 percent less per child than families with two children. As families have more children, the children can share bedrooms, clothing and toys can be handed down to younger children, food can be purchased in larger and more economical quantities, and private schools or child care centers may offer sibling discounts.

The full report, Expenditures on Children by Families (2011), is available on the web at www.cnpp.usda.gov. In addition, an interactive web version of the report is available where families can enter the number and ages of their children to obtain an estimate of costs.

*Projected inflationary costs are estimated to average 2.55 percent per year. This estimate is calculated by averaging the rate of inflation over the past 20 years.

**For the purposes of this report, a middle-income family is defined as the middle third of the income distribution for a husband-wife family with children.