Thursday July 12 Ag News

Gov. Heineman Expands Roadside & Early Haying Efforts Due to Drought Conditions

Gov. Dave Heineman today has expanded early roadside haying statewide due to current drought conditions. In addition to expanding early haying in 25 counties, applications to hay all Nebraska roadsides will now be open to all citizens.

The Governor directed the Nebraska Department of Roads to advance the starting date for all roadside haying to July 16, where the previous effective date would have been August 1. Under current rules, the abutting landowner has the first opportunity of harvesting hay along state highways; however with the current high need for hay, advancing the start date for all Nebraskans to harvest roadside hay will provide important relief to producers.

Further information on haying permits is available through the Nebraska Department of Roads at www.roads.ne.gov/hay.

Last week, Gov. Heineman authorized an emergency declaration for statewide drought that allows state personnel and resources to assist with emergency situations and prevention, and allows maximum flexibility to the state to deploy Nebraska National Guard and Nebraska Emergency Management Agency assets and resources as needed.

The Governor and the Nebraska Emergency Management Agency will continue to monitor the situation throughout the state, as the drought continues.



NEFB Statement Regarding Nebraska Democratic Party Ad on Grazing Rights
Steve Nelson, President, Nebraska Farm Bureau Federation

"We are extremely disappointed in the Nebraska Democratic Party's latest television ad that unfairly portrays farmers and ranchers who participate in the Federal Bureau of Land Management's grazing program as "welfare recipients."

"While we understand this political ad is targeted at U.S. Senate candidate Deb Fischer, we believe this ad unjustly paints all farmers and ranchers in a negative light by grossly oversimplifying the parameters of a complex land management program.  This latest ad clearly leaves the impression that participation in such programs is equivalent to "welfare."

"Many Nebraska farmers and ranchers participate in some form of government program that provides compensation for enhancing land management and conservation for the broader public good.  This particular ad does a disservice to the many hard working Nebraska farm families who participate in these types of programs by failing to adequately share all the facts about these types of programs."

"It is our hope that future ads will be aware of the harm that can be done to the reputation of Nebraska's farm and ranch families."



A Lot of Talk About Cattle on Public Land

Recently, there has been quite a bit of discussion about ranchers grazing their cattle on public lands.  Some facts have been shared but unfortunately so have a lot of untruths.  Nebraska Cattlemen would like to share with you some factual information about the grazing of cattle on public lands.

How much public land is grazed by cattle?
-       In Nebraska, less than 1.25% of the land is owned by the government.  While not all of this land is grazed, some of it is grazed by cattle owned by cattle ranchers.

How many ranchers graze their cattle on public lands?
-       Nationwide, more than 22,000 ranchers graze their cattle on public lands.  While not all ranchers may have access, many do not want to graze on public lands for various reasons such as transportation of their cattle to the public land area or compliance with rigorous guidelines.  To say that a small special group of ranchers are the only ones allowed to graze is not a true representation of the demand.

What does a rancher pay to graze his/her cattle on public land?
-       In 1986, a market based fee formula was created to establish the rate ranchers pay.  Dr. Larry Van Tassell, Department Head of the Department of Agricultural Economics at the University of Nebraska-Lincoln reports that the formula has a base that is affected by three primary factors: current private grazing land lease rates, current beef cattle prices, and the cost of producing cattle.  There is also a minimum fee of $1.35 per animal per month.  It is also important to note that many formulas do not allow year round grazing.

Does a rancher pay anything else in addition to the fee?
-       Yes.  Many ranchers pay a grazing permit fee in addition to the per-animal fee.  They also pay taxes on the value of their permits. Ranchers are also required to pay for upkeep of infrastructure like fences and watering places, and often own the water rights on the range.  Their ability to graze is subject to heavy regulation; for example, they must observe seasonal effects in some areas such as wildlife nesting/birthing or migration.

Is grazing cattle good or bad for the public land?
-       This is an excellent question and the one most missed in this discussion. The Public Lands Council shares that cattle grazing can be very beneficial to the land. Not only will the cattle control the over-growth of grass which helps reduce wildfires, but research has shown that land properly grazed versus un-grazed land is more productive by preventing invasion of noxious weeds while encouraging robust forage growth and healthy root systems.  Also, cattle in properly grazed systems interact beneficially with most wildlife primarily because the rancher is ensuring that wildlife habitat is maintained.

Do ranchers receive subsidies or any other funds from the government to graze their cattle on public lands?
-       No.  Cattle ranchers must pay for the use of the public lands.

What does public land grazing cost taxpayers?
-       In 2003, grazed public lands cost the federal government $2 per acre while un-grazed lands cost taxpayers $5 per acre.  Because ranchers pay for their cattle grazing, they are actually saving taxpayer money.  In other words, if grazing public lands were disallowed, it would cost taxpayers more.

If you have more questions about cattle ranchers grazing public lands, Nebraska Cattlemen invites you to call them at 402-475-2333.



Financial Assistance is Available for Ag Land Affected by Flooding

USDA Natural Resources Conservation Service (NRCS) State Conservationist Craig Derickson announced that funding is available to assist farmers and ranchers whose agricultural land suffered severe damage during last year’s flooding along the Missouri River.   Applications for these funds are due at NRCS offices by close of business on July 25.

“During the summer and fall of 2011, landowners along the Missouri River experienced massive and sustained flooding at a scale not seen in over 50 years.  The purpose of this project is to offer assistance to landowners who have been, and continue to be, impacted by that flood event along the Missouri River,” Derickson said.

This assistance is available to agricultural lands in five states - Iowa, Kansas, Missouri, Nebraska, and South Dakota - impacted by the 2011 flood on either side of the Missouri River from Ft. Randall Dam to St. Louis, Mo.  Within the five states, over 450,000 cropland acres were impacted by the 2011 flood.  According to NRCS, the most significant impacts to cropland were sand deposition and scouring from the abnormally long flood period.

“Damage to agricultural lands varied from no damage to areas where six or more feet of sand were deposited in drifts along cropland, many of which are no longer farmable.  Nebraska had an estimated 104,415 acres impacted,” Derickson said.

In Nebraska, NRCS has $50,000 available to assist those with severely damaged ag land in the following fourteen counties:  Boyd, Burt, Cass, Cedar, Dakota, Dixon, Douglas, Knox, Nemaha, Otoe, Richardson, Sarpy, Thurston, and Washington.  The NRCS will provide financial and technical assistance to install conservation practices that will help stabilize areas with heavy sand deposits.  Conservation practices available from NRCS include: cover crops, range planting, no-till, and tree/shrub establishment.

“There are several conservation practices that can help stabilize areas severely impacted by the flooding.  When implemented, they will provide stable vegetation for reclaimed cropland or other grassland communities and prevent erosion,” Derickson said.

Interested applicants should visit their local NRCS field office located in the USDA Service Center before the July 25 deadline.



Preliminary Results: Iowa Corn Checkoff Referendum Passes

The Iowa Department of Agriculture and Land Stewardship and the Iowa Corn Promotion Board today released preliminary results from the referendum to increase the corn checkoff that was held July 10. The preliminary results show a solid positive vote in favor of increasing the Iowa corn checkoff rate by one-fourth of a cent per bushel from ¾ cent to 1 cent per bushel, effective Sept. 1.

With results submitted from nearly all counties and most absentee ballots counted, currently over 70 percent of those who voted supported the increase. A simple majority is needed to pass the referendum.

In accordance with Iowa Code, the Iowa Department of Agriculture and Land Stewardship conducted the vote and has 30 days to officially certify the results.

The corn checkoff is collected on corn that enters commercial channels, but not on grain used on-farm.

The last increase in the checkoff was in 2008 when it was raised to ¾ cent per bushel marketed.

The Iowa Corn Checkoff was established by producer referendum in 1977. The Iowa Corn Promotion Board, made up of farmers elected by their peers, invests checkoff dollars for research, education, promotion, and market development. For more information on how checkoff dollars are used contact the Iowa Corn Promotion Board at 515-225-9242 or find out more online at www.IowaCorn.org.



EPA Seeks IDNR Action to Correct Deficiencies in Iowa’s CAFO Permitting and Compliance Program

EPA’s initial findings from an informal investigation of the Iowa Department of Natural Resources’ (IDNR) permit program for concentrated animal feeding operations (CAFOs) disclose several correctable deficiencies.

EPA’s investigation was carried out in response to a petition for withdrawal of the National Pollutant Discharge Elimination System (NPDES) program authorization from IDNR that was filed in 2007 by the Iowa Citizens for Community Improvement, Sierra Club and the Environmental Integrity Project.  Federal regulations allow interested parties to file these petitions when they are concerned that a state is not meeting the minimum NPDES program requirements.

EPA’s initial findings identify deficiencies in IDNR’s NPDES program that the state agency will need to correct.  Among others, EPA found that IDNR does not have an adequate program to assess whether unpermitted CAFOs need NPDES permits. The findings also note that IDNR must clarify its authority to issue NPDES permits to confinement (roofed) CAFOs that discharge.

EPA also found that in a number of cases involving Clean Water Act (CWA) violations, IDNR failed to take timely and adequate enforcement actions, and assess adequate penalties. The report containing the initial findings is available at www.epa.gov/region7/water/.

“Although today’s report highlights areas for improvement, IDNR has made substantial strides in identifying large open feedlots and requiring those operators to apply for permits,” said Karl Brooks, EPA Region 7 Administrator.  “As a national leader in beef, swine and poultry production, with roughly 7,000 animal feeding operations, it is imperative that Iowa have an NPDES permitting, compliance and enforcement program that complies with federal law and protects the quality of Iowa’s rivers, lakes and streams.

The issuance of the initial report is the first step in the process in which EPA will work with IDNR to correct the deficiencies. EPA has asked that IDNR provide a written response to the report, within 60 days, describing the actions IDNR has taken or will take to correct the deficiencies, including a proposed plan and timeline to address the deficiencies. EPA intends to provide an opportunity for the public to comment on IDNR proposals to correct the deficiencies.

Any discharge of pollutants into a river or stream is a violation of the Clean Water Act unless the discharge is authorized by an NPDES permit. NPDES, a part of the Clean Water Act, requires CAFOs that discharge to obtain a permit from EPA or authorized states. The Clean Water Act also requires EPA and authorized states to assess whether CAFOs discharge and need an NPDES permit.



Branstad, Reynolds to Meet on Drought Weather Conditions

Gov. Terry Branstad and Lt. Gov. Kim Reynolds announced today that they will hold a two-hour public meeting on the severe dry and D1 Drought conditions that have plagued Iowa this summer. The event will be held Tuesday morning at the Mt. Pleasant High School gymnasium, and members of the public are encouraged and welcome to attend.

The public meeting will feature officials from the Iowa Department of Natural Resources, Iowa Department of Agriculture and Land Stewardship, Iowa Department of Homeland Security and Emergency Management, and the USDA. Outside expert testimony will feature agricultural groups and environmental experts.

The discussion will include the latest information and tracking metrics, how coordination is being handled between the state and federal levels, and potential action steps that may be taken in order to ensure Iowa's needs are met. The public is invited to share their thoughts and concerns.

Details of the meeting are July 18 at 9 a.m. with Gov. Branstad and Lt. Gov. Reynolds hold public meeting on dry and D1 Drought conditions at Mt. Pleasant High School gymnasium, 2104 South Grand Ave., Mount Pleasant.



Vilsack on the House Agriculture Committee’s Approval of the Food Farm and Jobs Bill

Agriculture Secretary Tom Vilsack today made the following statement regarding the House Agriculture Committee’s approval of the Food Farm and Jobs Bill:

“Americans deserve a farm and jobs bill that reforms the safety net for producers in times of need, promotes the bio-based economy, conserves our natural resources, strengthens rural communities,  promotes job growth in rural America, and supports food assistance to low-income families.

Unfortunately, the bill produced by the House Agriculture Committee contains deep cuts in SNAP, including a provision that will deny much-needed food assistance to 3 million Americans, mostly low-income working families with children as well as seniors. The proposed cuts will deny 280,000 children in low-income families access to school meals and reduce farm income across rural America. These cuts wouldn’t just leave Americans hungry – they would stunt economic growth.  The bill also makes misguided reductions to critical energy and conservation program efforts.

As the legislative process moves forward, the Administration will continue to seek policy solutions and savings across the Farm Bill that are consistent with the President’s budget.”



Agriculture Committee Passes Farm Bill, ASA Urges Timely Debate by Full House

In response to the early morning passage of the Federal Agriculture Reform and Risk Management Act (FARRM) by the U.S. House of Representatives Committee on Agriculture today, American Soybean Association (ASA) President Steve Wellman, a farmer from Syracuse, Neb., releases the following statement on the legislation:

"ASA congratulates the House Agriculture Committee, Chairman Lucas and Ranking Member Peterson for their perseverance on the farm bill, and we now focus our efforts on passage by the full House. We strongly urge Speaker Boehner to bring the farm bill to the floor for debate and to pass the bill quickly to provide America’s farmers with the certainty and stability needed to remain viable. While it may be called a ‘farm’ bill, it really is a jobs and food bill that affects Americans from all walks of life, and it must be made a priority.

"ASA’s key priority in the farm bill discussions has been to develop programs that help farmers manage risk while complementing crop insurance and avoiding planting distortions. While we are encouraged by today’s passage, we remain concerned about planting distortions that could occur under a coupled target price program such as that contained in the House bill. We look forward to working with the agriculture committees in the House and Senate to address these concerns as the process moves forward.

"ASA continues to support provisions in the House bill that reauthorize and fund trade and market development programs, as well as agricultural research programs. ASA also supports the bill’s focus on working-lands conservation and a gradual reduction of acres enrolled in the Conservation Reserve Program. Additionally, ASA is pleased to see the reauthorization of the Biobased Market Program and the Biodiesel Education Program, and we will continue our work with the agriculture committees in both chambers to provide funding for these programs.

"ASA remains steadfast in our commitment to passing a farm bill in 2012, and we call on leaders in the House to echo that commitment to America’s farmers by bringing the Federal Agriculture Reform and Risk Management Act to the floor as soon as possible."



Fortenberry Supports Farm Bill Advancement from Ag Committee

Congressman Jeff Fortenberry, chairman of the House Agriculture Committee’s Operations, Oversight, and Credit Subcommittee, voted for the Agriculture Committee’s Farm Bill proposal, which was approved on a bipartisan vote of 35-11.

“Agriculture is critical to America’s economic security, energy security, and national security,” Fortenberry said.  “A new farm bill is imperative for the future of agriculture and rural America.  This proposal charts a new way forward for America’s farmers and ranchers while respecting the federal government’s severe budgetary constraints.  While the bill is not perfect, it provides adequate protection options for farmers, supports young and beginning farmers, and embraces new market opportunities domestically and internationally."

Three Fortenberry initiatives were included in the committee’s legislation.  Fortenberry’s Beginning Farmers amendment will modify and build upon existing farm programs to help overcome the steep financial burdens for new farmers as they establish agricultural businesses.  Another amendment provides microloans to small, beginning, and veteran farmers seeking farm credit.  Currently, the average age of the American farmer is 56 years old.

Fortenberry also sponsored an amendment to enhance the Farmers Market and Local Foods Promotion Program, an effort that increases market opportunities for small and mid-sized farms and strengthens local food systems.

During the committee markup, Fortenberry also raised the importance of several policy considerations, including farm payment limitations, rural housing programs, and the protection of lands for conservation purposes.

“We need to pass a farm bill prior to its expiration at the end of September.  I look forward to continuing this robust debate about our country’s agricultural future on the House floor in the coming weeks.”



NCGA Supports Legislative Process, Calls for Significant Changes to House Farm Bill

National Corn Growers Association President Garry Niemeyer released the following statement in response to the House Agriculture Committee’s 35-11 passage of the 2012 farm bill:

“The National Corn Growers Association is disappointed the House Agriculture Committee’s passed version of the 2012 farm bill does not include a more viable market-oriented risk management program.  We support moving the legislative process forward and urge Speaker Boehner to schedule time for full House floor consideration before the August recess. 

“However, we feel there needs to be significant changes made to the legislation. Our farmers will be working with members of the House of Representatives to ensure those changes are included in a final package.”



Wheat Growers Applaud House Committee Passage of 2012 Farm Bill

A statement from National Association of Wheat Growers (NAWG) President Erik Younggren, who farms wheat, sugar beets and soybeans near Hallock, Minn., on the House Agriculture Committee’s approval of 2012 Farm Bill language:

“NAWG was happy to see Members of the House Agriculture Committee approve their version of the 2012 Farm Bill early this morning, and we strongly encourage House Leadership to schedule floor time for the bill as soon as possible.

“My fellow farmers will begin planting winter wheat in just a couple of months. It is very important they and all farmers have an understanding of the farm safety net available to them when they make the substantial investments required for the new crop. In addition to crop insurance and Title I policies, the bill passed today includes important provisions with regards to conservation, research, food aid, marketing and nutrition that should not be subjected to the uncertainty of short-term extensions.

“We commend Chairman Lucas and Ranking Member Peterson for undertaking the mark-up in an expeditious fashion and allowing Committee Members’ voices to be heard. We look forward to the floor process and finalizing new farm and food policy before Sept. 30.”



NMPF Statement on House Agriculture Committee Approval of Farm Bill
Jerry Kozak, President and CEO of the National Milk Producers Federation 

"The passage of the 2012 Farm Bill by the House Agriculture Committee is a deeply satisfying accomplishment for the many farmers who support the measure, including America’s dairy farmers.

"In particular, the House bill includes dairy reforms modeled after NMPF's Foundation for the Future program. These elements represent badly-needed improvements in our safety net for milk producers. We're very appreciative that members of the Agriculture Committee have preserved the carefully-crafted economic and political compromises that went into the creation of the dairy program in the Farm Bill. The fundamental package of dairy policy reforms supported by NMPF remained unchanged throughout the Agriculture Committee’s debate this week.

"We commend Congressmen Frank Lucas and Collin Peterson for their leadership and diligence in shepherding the Farm Bill to this point. The fact that a large bipartisan majority of the committee voted in favor of the bill bodes well for its ultimate success, and we look forward to working with the full House as it considers this legislation in the near future. We are pleased at the progress made in the House, but we also know that much work lies ahead.”



NSP Commends House Agriculture Committee FARRM Markup

National Sorghum Producers praises action taken yesterday by the House Agriculture Committee to mark up and pass the Federal Agriculture Reform and Risk Management Act (2012 Farm Bill) by a vote of 35-11.

“NSP is very pleased with the hard work and leadership provided by Chairman Lucas and Ranking Member Peterson to pass a very good farm bill out of committee,” said J.B. Stewart, NSP Legislative Committee chairman. “We hope Congress will build on this momentum and move this critical policy forward to enactment as soon as possible.”

While close to 100 amendments were considered by the committee, the commodity title was left relatively intact, including reference prices and producer choice—both priorities of the National Sorghum Producers. The bill achieves substantial budget savings but maintains balanced and solid protection for America’s farmers and ranchers.



May Pork Exports Continue Upward Trend; Beef Results Mixed

U.S. pork exports in May were up 3 percent in volume (186,809 metric tons) from a year ago and 9 percent higher in value ($524.3 million). Through the first five months of the year, pork exports exceeded last year’s record pace by 6 percent in volume (968,485 metric tons) and 15 percent in value ($2.7 billion). Although May was the strongest month so far this year for U.S. beef exports, volume (95,221 metric tons) was down 13 percent compared to May 2011 and stood 10 percent lower (456,343 metric tons) through the first five months of the year. Beef export value in May ($471.1 million) was 4 percent higher than a year ago, which kept year-to-date export value ($2.19 billion) 5 percent ahead of last year’s record pace. These results are based on statistics released by the USDA and compiled by the U.S. Meat Export Federation (USMEF).

Pork export value surges in most major markets
With the exceptions of South Korea, Taiwan and the Philippines, U.S. pork export value is trending upward to every major destination. Exports to Korea were extremely high in 2011, due in part to a foot-and-mouth disease-related shortage of domestic pork and temporary duty-free access for a large volume of imports. U.S. exports to Korea through May stood at 77,790 metric tons valued at $222.8 million, down 32 percent in volume and 19 percent in value from last year’s record pace, but still far exceeding exports in the first five months of any previous year.

Mexico continues to perform well as the leading volume destination for U.S. pork, and ranks No. 2 in value. While May exports to Mexico were about even with last year, exports through the first five months of the year were 15 percent higher in volume (254,059 metric tons) and 13 percent higher in value ($463.6 million). USMEF recently launched a campaign to build overall demand in Mexico by enhancing the image of pork and broadening its appeal among Mexican consumers.

“USMEF has reached agreements with several major supermarket chains in Mexico - totaling more than 500 outlets - to help USMEF promote pork through advertising and point-of-sale materials and to collect important sales data for evaluating the effectiveness of the campaign,” explained USMEF President and CEO Philip Seng. “Per capita pork consumption in Mexico is only about 25 pounds per year, compared to 47 pounds in the United States. So we feel there is still great potential for expansion of overall demand, with the U.S. industry positioned to be the primary beneficiary.”

Japan remains the leading value destination for U.S. pork, with exports through May reaching $869.1 million. This is 10 percent above last year’s record pace, despite a 5 percent decline in volume (199,061 metric tons).

Other pork highlights for January-May 2012 include:

• Despite an upswing in domestic pork supplies and a softening of the hog market in China, exports to the China/Hong Kong region were up 34 percent in volume (192,926 metric tons) and 83 percent in value ($389.2 million).

• Exports to Canada were up 14 percent in volume (91,424 metric tons) and 19 percent in value ($328.7 million).

• In the first year under a new quota system, exports to Russia are off to an excellent start – 35 percent higher in both volume (39,132 metric tons) and value ($115 million).

• In the Central and South America region, where U.S. pork and beef are currently on display at the USMEF Latin American Product Showcase in Bogota, Colombia, pork exports were up 13 percent in volume (33,266 metric tons) and 16 percent in value ($85 million). This expansion was led by growth in Colombia, where exports were up 62 percent in volume (5,596 metric tons) and more than doubled in value ($15.9 million).

• The controversy over beta agonists continues to create a difficult business climate in Taiwan, where pork exports were down 45 percent in volume (8,108 metric tons) and 29 percent in value ($18.2 million). Larger domestic supplies have also impacted this market, as Taiwan’s pork imports from all sources are down nearly 40 percent this year.

Beef exports show no major fallout from BSE case, but volume growth elusive
With the April 24 announcement of the fourth BSE case in the United States, May was the first month in which any BSE-related decline could be detected in export statistics. May beef exports did not reveal a major impact, though global totals were likely affected to some degree by the market closure in Saudi Arabia and negative media coverage in some Asian markets.

“All things considered, we are pleased with the manner in which beef exports have weathered the most recent BSE case,” Seng said. “With the exception of Saudi Arabia, we have not suffered any significant setbacks in terms of market access. And though we expected consumer interest to slow temporarily in markets such as Korea, the May export results were actually quite strong.”

Seng explained that while year-to-date exports to Korea were down 24 percent in volume (58,143 metric tons) and 17 percent in value ($273.1 million), May results were higher (+5 percent in volume, +13 percent in value) in both categories. He said the main factors impacting U.S. beef exports to Korea in 2012 are an oversupply of domestic beef and a slumping Korean currency, noting that Australia’s beef exports to Korea have also declined by about one-third compared to last year.

In several major markets, beef export volume has slowed moderately compared to the first five months of last year but increases in export value were still achieved. Examples include:

• Japan, where volume was down 6 percent to 56,297 metric tons but value was 13 percent higher at $370.7 million. In May, Japan was the largest destination for U.S. beef with the highest export volume (16,166 metric tons) in 10 months. Export value was up 28 percent from May 2011 to $105.3 million. Regulatory officials in Japan continue to examine the 20-month cattle age limit on beef imported from the United States, Canada and the European Union, but have so far enacted no change in the policy.

• In Canada, the only $1 billion market for U.S. beef in 2011, export volume was down 7 percent to 64,260 metric tons but value was up 10 percent to $404.5 million.

• In the Middle East, export volume was down 7 percent to 60,106 metric tons while value was up 10 percent to $138.1 million. Although Saudi Arabia was the only country in this region to close to U.S. beef due to the BSE case, confusion regarding possible restrictions (which never materialized) in some other markets may have affected May results. Despite these issues, however, May export volume (12,766 metric tons) to the region was the largest since January.

• In the ASEAN region, export volume (25,964 metric tons) was down 12 percent while value ($112.3 million) was 13 percent higher. This trend was made possible by a surge in export value to the two largest markets, Vietnam (+21 percent to $82.6 million) and the Philippines (+31 percent to $18.9 million).

• In Hong Kong, where U.S. exports are still limited to boneless muscle cuts from cattle under 30 months of age, export volume (19,566 metric tons) was down 15 percent while export value ($112.9 million) was 12 percent higher. May export volume to Hong Kong (4,592 metric tons) was the largest of the year.

Two regions in which U.S. beef exports are surging in both volume and value are Russia and Central and South America. Though export activity to Russia has slowed in recent weeks, January-May exports were 24 percent ahead of last year’s record pace in volume (32,307 metric tons) and 83 percent higher in value ($138.8 million). Bolstered by terrific growth in Chile, exports to Central and South America were up 42 percent in volume (14,715 metric tons) and 83 percent in value ($53.8 million).

“In Russia, we are aggressively promoting U.S. beef across several sectors and in a variety of geographic regions,” Seng said. “From the Black Sea coast where the next Winter Olympics will be held, to the far eastern port of Vladivostok, U.S. beef is becoming more widely known and is in very high demand. Russia has expanded the import quota for U.S. beef this year, and we intend to make full use of that opportunity.”

“In Central and South America, we have capitalized on some excellent growth opportunities,” he explained. “Trade barriers have limited available supplies from Paraguay and Argentina, increasing demand in markets such as Chile, Peru and Colombia. This is one reason for the tremendous interest in this week’s USMEF Latin American Product Showcase, which has attracted a strong turnout of buyers and exporters to Bogota.”

As with pork, U.S. beef exports have slowed dramatically to Taiwan. Exports in May were down about 90 percent from last year, while year-to-date exports were 54 percent lower in volume (6,175 metric tons) and 47 percent lower in value ($39 million). While the Taiwanese government is expected to take action soon on a maximum residue level (MRL) for ractopamine in imported beef, U.S. beef sales likely face a lengthy recovery due to the political controversy surrounding this issue.

Lamb exports trend lower
After last year’s record performance, U.S. lamb exports have endured a difficult start in 2012. Through May, exports were down 36 percent in volume (5,109 metric tons) and 20 percent in value ($10.1 million). Exports to leading market Mexico were down 7 percent in volume and 3 percent in value, and results were significantly lower in the Caribbean and Central and South America. Panama was a bright spot in this region, however, as exports were up 71 percent in volume (29 metric tons) and 165 percent in value ($105,000).



New Report: Farming Sustainability on the Rise

A new report on sustainability and today's agriculture, released today by Field to Market: A Keystone Alliance for Sustainable Agriculture, revealed that our nation's corn farmers have a good story to tell, with improvement across all metrics.

"What makes the Field to Market tools appealing to farmers is their real-world application," said Gary Edwards, a corn grower from Anamosa, Iowa, who serves as a National Corn Growers Association representative to Field to Market. "Because the metrics used were developed from discussions among the folks who would use them, they fit the nature and scope of the work being done. To make a profit, farmers need to sustain both the land and the business, and the exciting take-away from this report is that we now have the means to show you don't have to sacrifice one for the other.

Field to Market is a diverse alliance of stakeholders working to measure and promote continuous improvement for agriculture. Its updated report used a study period of 1980-2011 for the environmental indicators, added more crops and offers a look at some socioeconomic indicators.

Environmental indicators looked at water use and quality, land use and biodiversity, soil loss, energy use and climate impact. Corn improved on all measures of resource efficiency, decreasing per-bushel land use by 30 percent, soil erosion by 67 percent, irrigation by 53 percent, energy use by 43 percent and greenhouse gas emission by 36 percent. At the same time, corn increased 101 percent in total production and 64 percent in yield bushels per acre.

New socioeconomic indicators measure debt, returns, GDP, labor hours, injuries, fatalities and production time. For example, the time to produce corn decreased both per acre (59 percent) and per bushel (75 percent), incidences of one or more work days lost due to injury decreased by 49 percent and fatalities decreased by 32 percent. The national growth rate trend has increased 69 percent for the agricultural sector contribution to national gross domestic product.

"This is a great time to be a farmer," Edwards said. "The productivity and sustainability of the modern American farm should be an inspiration to all - and the positive economic impact of what we do must always be a part of the story."

Field to Market is developing and piloting scalable, science- and outcome-based sustainable metrics and tools to identify strategies for continuous improvement in agriculture. These tools are the result of dialogue with farmers, agribusinesses, food and retail companies and conservation organizations, which is grounded in science and open to the full range of technology choices available.



CHS posts nine-month 2012 earnings of $899.7 million

CHS Inc., the nation's leading producer-owned cooperative, today reported earnings of $899.7 million through the third quarter of its 2012 fiscal year.

Earnings attributed to CHS operations for nine months of fiscal 2012 (Sept. 1, 2011 – May 31, 2012) increased 19 percent over the $754.8 million recorded through the third quarter of fiscal 2011. Revenues for the nine-month period of fiscal 2012 were $29.6 billion, compared with $26.3 billion for fiscal 2011, reflecting continued higher values for the commodity energy and crop nutrients products that comprise much of CHS business.

For the third quarter (March 1 – May 31, 2012), CHS posted income of $405.1 million, compared with $358.5 million for the same period in fiscal 2011, an increase of 13 percent. Revenues for the quarter were $11.0 billion, compared with $10.5 billion for the third quarter of fiscal 2011.

Earnings for the third quarter reflected strong performance across its Energy segment which includes refineries at Laurel, Mont., and McPherson, Kan. Year over year, nine-month earnings declined within the company's Ag operations – which consist of crop nutrients, grain marketing, oilseed processing and its Country Operations locally controlled retail service centers. Heavy spring fieldwork demand contributed to strong performance for crop nutrients and local retail operations, with Country Operations achieving record third quarter earnings. Lower grain marketing earnings were attributed to reduced U.S. export volumes and lower margins. While the company's oilseed processing business reported sound manufacturing margins, earnings decreased due to increased costs related to recent acquisitions.

CHS reports results for its business services operations and its two food processing-related joint ventures under the Corporate and Other category. Lower earnings for CHS financing businesses, as well as decreased earnings from the company's two food-related joint ventures, contributed to reduced overall results in this category year-to-date.



HSUS to Sue Six Pork Production Firms

The Humane Society of the United States reports that it intends to sue a range of pork production companies involving their units in Iowa, North Carolina and Oklahoma. According to Pork Magazine, the animal rights group cites unreported releases of hazardous pollutant ammonia as the impetus for the legal action.

HSUS identified the 51 production sites owned by the six companies after it 'conduced months of research.' The HSUS told Pork Network that the group used a simple and readily available mathematical equation to estimate the amount of ammonia being released from each of the facilities that received notice. The equation, found on the Environmental Protection Agency (EPA) and the National Pork Producers Council (NPPC) websites, considers the number and type of animals, as well as the waste-management practices to estimate the ammonia emissions from that production segment.

"In each case, the estimates from the emitting facilities were high enough that it was readily apparent that these facililites are emitting above the legal threshold," HSUS contends.

However, Allan Stokes, director of enviornmental programs for the National Pork Board (NPB) points out, "The equation EPA placed on its website was meant only as an aide for livestock producers and not as a regulatory tool or an absolute determinant of whether a livestock operation in fact exceeded any regulatory reporting thresholds."

Stokes says the EPA has not yet adopted final Emission Estimating Methods or EEMs for swine operations.

HSUS says it is filing the letter of intent to sue in accord with the federal Emergency Planning and Community Right-to-Know Act (EPCRA). HSUS argues that the pork production facilities in question "have not adequately reported their emissions as required by EPCRA."



Industries Clash on Cellulosic Ethanol

Six biofuel industry organizations jointly petitioned the U.S. Court of Appeals for the District of Columbia Circuit Wednesday to intervene in a lawsuit filed by the American Fuel & Petroleum Manufacturers and the Western States Petroleum Association against the rules mandated blending of cellulosic ethanol into gasoline.

The biofuels organizations are the Advanced Biofuels Association, Advanced Ethanol Council, American Coalition for Ethanol, Biotechnology Industry Organization, Growth Energy and Renewable Fuels Association.

The biofuels industry organizations are asking to join the suit to support EPA's denial of a waiver of the 2011 Cellulosic Volume Obligation under the Renewable Fuels Standard. The lawsuit was filed in June.

The AFPM and WSPA case against the Environmental Protection Agency, is seeking a waiver for the RFS volume mandate to blend 6.6 million gallons of cellulosic ethanol into gasoline because there was no fuel available commercially in 2011.

Despite the lack of fuel, obligated parties under the Renewable Fuels Standard, which include refiners, blenders and importers of petroleum products, are required to pay a fee of $1.13 gallon for the 2011 volume mandate, which totals $7.458 million.

According to the release issued by the biofuels industry this morning, the first month cellulosic ethanol renewable identification numbers were assigned to cellulosic ethanol produced in the United States was June, a half year after the 2011 obligation ends.

The EPA set the 2012 volume mandate for cellulosic ethanol blending at 8.65 million barrels, although the API sued in March to have the mandate waived for this year.



Statement on Ohio train derailment

After reviewing the facts of the Columbus, OH, train derailment as reported, the Renewable Fuels Association issued the following statement:

“America’s ethanol industry is committed to the safe production, transportation, and use of fuel ethanol.  As the largest cargo of hazardous material by volume carried by Class 1 railroads, ethanol is a common product on many of the trains traversing the country.  Despite its prevalence, the instances of accident involving hazardous materials are quite low.  Data from 2011 shows that 99.99% of all hazardous material cargoes were delivered without incident.

“Billions of gallons of ethanol safely travel American railways without incident each year.  Unfortunately, some accidents do occur which are out of our control.  For whatever reason, some trains derail.  In order to help ensure the safety of the public near these railways, the Renewable Fuels Association has been partnering with the federal government, rail carriers, railroad operators, and other stakeholders to conduct safety seminars for first responders all across the country.  Since beginning the program in 2010, the RFA has conducted more than three dozen trainings for more than 1,500 first responders nationwide.  These fire departments and other essential safety organizations now have the proper understanding and tools to respond in the unlikely event of a train accident involving ethanol.”

Seeking to fill the need for ethanol response education, the Renewable Fuels Association founded the Ethanol Emergency Response Coalition (EERC).  For more information on the industry’s safety efforts, visit www.ethanolresponse.com. 

Railroad statistics for ethanol:
• Ethanol represents 26% of the total number of hazmat shipments nationwide
• Of the 1.7 million total loads of hazardous material, 99.99% of them were delivered without accident.
• Ethanol constitutes 1.1% of all railroad shipments



EU 2012-13 Grain Forecast Lowered

Strategie Grains on Thursday downwardly revised its estimate for the European Union's 2012-13 grain harvest, by 2.4 million metric tons to 278.8 million tons, as the south and the east of the continent suffer hot and dry weather, while the north and west are hit by very damp conditions.

The influential analyst group cut its estimate for the bloc's soft wheat production, by 0.6 million tons to 123.6 million tons. This included reductions of 560,000 tons in Spain due to drought and 240,000 tons in the U.K. due to excessive rain.

Meanwhile, production in central EU countries was revised down by 300,000 tons due to hot, dry weather at the end of the growth cycle, while output in the Baltic countries rose by 260,000 tons because of an increase in planted area.

Strategie Grains also downwardly revised its estimate for corn production, by 850,000 tons to 65.1 million tons, due to a fall of 950,000 tons in central and southeast EU countries after high temperatures and dry conditions. However, this was partly offset by an 180,000 ton increase in France's estimated corn production, due to a higher acreage estimate.

The analyst group said weather conditions in coming weeks will need to be monitored closely, as harvest activities will likely be greatly slowed and grain quality could suffer if rains forecast for France, Germany and the UK materialize.

It said that dry, warm conditions in central and southeast Europe also threaten yield potentials for corn, with the critical flowering phase approaching.