Monday July 9 Ag News

Slight Relief in Temperatures, but with Little Rain
Al Dutcher, UNL State Climatologist

An upper air trough over the central U.S. is providing some relief this week from the wave of 90-100°F temperatures. As this trough moves into the upper Great Lakes, weather models indicate that it will deepen over the eastern Corn Belt for much of next week.

As this trough strengthens, the central Plains upper air ridge is projected to retrograde to a position over the north central Rockies and toward the end of the week, we’ll see a gradual warming trend back into the low to mid 90s.

Anytime we see a northwest flow aloft, there is always the possibility that pieces of energy will move southeastward and generate thunderstorm activity. It is virtually impossible to pinpoint where the activity will develop, but at least rainfall chances will be considerably higher than they were when the atmosphere was capped under the recent dome of high pressure.

The Nebraska Agricultural Statistics Service indicated that 25% of the corn crop had reached the silk stage as of July 2, an increase from 4% a week earlier. I would anticipate that at least 55% of the crop will be in the silk stage or beyond when the new estimates are released on July 10. Although cooler temperatures may help alleviate pollination stress, rainfall will determine the extent of kernel abortion during the critical grain fill period.

If moisture fails to materialize before temperatures return to the 90s next week, producers may have to wait until July 20 before another trough is projected to flatten the upper air ridge that builds back into the central Plains during the latter half of next week. Pollination stress is likely occurring on dryland corn and will only intensify if moisture is a bust over the next few days.



Emergency CRP Grazing

USDA has authorized emergency grazing immediately on 2012 CRP acres in 12 Nebraska counties.  But at the present time, haying of CRP is not authorized until after July 15th.  Eligible producers who are interested in emergency grazing of CRP must request written approval from their Farm Service Agency office.  The counties approved for emergency grazing include Arthur, Cheyenne, Frontier, Hayes, Hitchcock, Perkins, Red Willow, Furnas, Gosper, Keith, Kimball, and Stanton.  Producers can use the CRP acreage for their own livestock or may grant another livestock producer use of the CRP acreage. 



CRP Grazing and Roadside Haying Authorized Due to Drought Conditions

Nebraska Cattlemen appreciates the continued efforts of state and federal officials in working to allow greater flexibility in haying and grazing options during drought conditions.  The additional counties eligible for emergency grazing of CRP lands will go a long way in making sure cattlemen have the opportunity to harvest these forages while they retain value.  Counties will continue to become available based on precipitation for emergency grazing, and eventually haying, so it is important to communicate with your local FSA office.

Nebraska Cattlemen encourages landowners to reach out to their local FSA office early so that the necessary paperwork can be completed as quickly as possible.  Landowners must request written approval from their local FSA office and obtain a modified conservation plan from the NRCS prior to grazing the lands.  CRP acreage released for emergency grazing can be used for a landowner’s own livestock or they may grant another livestock producer use of the CRP acreage.

The additional thirteen counties made available, by Governor Heineman, for immediate roadside haying in Nebraska will make a difference during these dry conditions as well.  Like CRP, counties will continue to become eligible for early roadside haying and all counties will be open to this practice after July 15th.

Nebraska Cattlemen supports landowners taking advantage of this opportunity for early roadside haying.  Permits to conduct roadside haying must be applied for through the Nebraska Department of Roads.



Why is Corn so Short?
Keith Glewen, UNL Extension Educator, Saunders County

In many areas of the state we’re seeing shorter than normal corn this year, leading to the question, "Why this year?" To explain this, I consulted with two top corn physiology experts — Bob Nielsen, extension corn specialist at Purdue University, and Tom Hoegemeyer, professor of practice in the UNL Department of Agronomy and Horticulture.

A variety of interacting factors can lead to shorter than normal corn. First, let’s look at this corn crop to date. We planted most of the crop much earlier than normal, which led to corn plants developing during a period when in most years, the seed would still be in the bag. After planting, we experienced warm daytime growing conditions and cool, almost cold nighttime temperatures.

The mature corn plant height depends on three factors:
-    amount of solar radiation on the top leaves during growth,
-    water, and
-    temperature.

We usually don’t have issues with solar radiation limitations in the western Corn Belt; this year water was more of a factor. Much of the young corn plant’s development was in drier than normal growing conditions. There was adequate moisture for growth but nothing like we have experienced in recent years.

Water availability and temperature impact growth rate. Cell division is affected much less than cell expansion, and slower growth rates lead to slower root development, further limiting water uptake and nutrients. Slower cell expansion leads to shorter internodes and smaller leaves, and this leads to less water uptake and light interception, CO2 uptake, further impacting growth. Because of these changes, we have less internode elongation and thus early planted corn tends to be shorter than later planted corn.

Will conditions leading to shorter corn impact yield? Not necessarily. More important to the final yield of this year’s crop is the heat and moisture stress that the crop is now experiencing as it moves into pollination.  With high heat forecast for the coming week, this will be a concern.



Certainty For Nebraskans
Senator Mike Johanns

The Senate this summer has taken several important steps to provide Nebraskans with the tools they need to address weather-related disasters. When Mother Nature throws us a curveball, we need appropriate risk management tools to adapt quickly. I'm pleased to report the Senate has passed a couple bills to help address these situations. First of course is the farm bill, but also of importance is the reauthorization of the flood insurance program included in last month's transportation bill.

Though today many producers are battling drought conditions, the memories of last summer's flooding are still fresh across the state. In fact, this summer's drought only serves to remind us further how suddenly the weather can change and the necessity of preparedness. The five-year flood insurance renewal will help Nebraskans in the short-term as well as the long-term.

To address short-term problems lingering from last summer, I included language specifically addressing last year's flooding of the Missouri River and other Nebraska waterways. Importantly, the bill retroactively removes arbitrary deadlines for the purchase of flood insurance while continuing to require personal responsibility. Anyone who bought insurance a month or more before their property was damaged will receive the promised benefit of the policy's coverage.

In the long-term, the bill will help make sure we don't get caught off guard by any future flooding. It adds explicit detail to the legal definition of a flood, as well as directing a review of the procedures used to determine when an area is classified as flood-stricken. Further, the bill creates new incentives for purchasing insurance, with the goal of getting those in at-risk areas signed up for flood insurance so they have coverage when they need it, protecting both homeowners and taxpayers.

Additionally, the Senate passed a new five-year farm bill which gives much-needed certainty for Nebraska agriculture. As we all know, the weather can change with the dawning of a new day, which in turn can affect an entire season's worth of crops or livestock. The risk management tools in the farm bill provide some stability for those who produce our food and fiber without encouraging dependency on the federal government or increasing the burden on the federal budget.

Gone are the days in which farmers receive federal dollars just because they farm, and that's a good thing. Today's crop insurance program, in which farmers and ranchers put skin in the game by paying insurance premiums and receiving help only when they need it, works better for producers and serves as a much wiser use of taxpayer dollars.

These changes make sense for who we are today and where we're going as a country. We must be responsible with every dollar spent. These legislative changes take us in that direction, and I was happy to help advance them. The President signed the flood insurance bill into law last Friday, while the farm bill is being considered by the House Agriculture Committee.



Sixth Annual Iowa Women in Ag Conference to be held August 7

“Women Navigating the Future,” the sixth annual conference sponsored by Iowa Women in Ag (IWIA), is scheduled for August 7 at the FFA Enrichment Center in Ankeny. Women with any connection to agriculture are encouraged to take advantage of the opportunity to gather with other ag women, interact with an array of experts and share life experiences with one another.

The one-day event will feature breakout sessions on topics ranging from beginning marketing and ag finance to estate/succession planning, as well as discussions about emerging technologies and social media. Options will also include the opportunity to tour Pioneer Hi-Bred, or participation in sessions on leadership, a legislative update, food technologies and cover crops.

The registration fee is $60 for those signing up before August 1. The fee for walk-ins will be $75. Lunch is included with registration. Everyone who registers and pays in advance will be in the drawing for a free iPad. All attendees will be eligible for a drawing to win a Nook Color. Those whose names are drawn must be present to win.

To register online, go to www.iowawomeninag.org. For more information about the conference, contact Deb Schuler by calling (712) 243-4444.

IWIA’s goal is to provide educational opportunities women need in order to increase their skills in analyzing and making business and financial decisions.

Sponsors for this event are Farm Credit Services, Iowa Farm Bureau Financial Services, the Iowa Pork Producers Association, Monsanto, Nationwide Agribusiness, Pioneer, Smith Land Service Co., Stine Seed, Successful Farming, Syngenta, USDA Farm Service Agency and the Iowa Soybean Association.



USW Installs New Officers at Summer Board Meeting

The U.S. Wheat Associates (USW) Board of Directors installed new officers at its annual meeting July 8, 2012, in Spokane, WA. Darrell Davis (Ipswich, SD) was installed as Chairman, while last year’s chairman Randy Suess (Colfax, WA) transitioned to Past Chairman and Chairman of the USW Budget Committee. Other officers installed included Dan Hughes (Venango, NE) as Vice Chairman and Roy Motter (Brawley, CA) as Secretary-Treasurer. USW officers were elected to these one-year positions at the January 2012 Winter Wheat Conference.

Committees met on Friday, July 6 and Saturday, July 7, including the Joint Biotech and Joint International Trade Policy committees that operate in conjunction with the National Association of Wheat Growers (NAWG). Official business was called to order on Saturday, July 7, and continued through Sunday, July 8.

Reports from the meeting included an update export market development activities in the South Asian region from USW Regional Vice President Mike Spier, a report from NAWG President Erik Younggren, an overview of foreign office activity by USW Vice President of Overseas Operations Vince Peterson and reports from wheat producers who participated in intensive industry tours to Africa and Asia. This year’s meeting also featured industry speakers, including:
§        Richard Phillips, Executive Director, Grain Growers of Canada (GGC)
§        Kurt Haarmann, Vice President, Columbia Grain, Inc.
§        Captain Gary S. Lewin, Master Mariner Pilot, Columbia River Bar

In addition, the USW Board of Directors, family, colleagues and friends honored outgoing USW Chairman Randy Suess and recently retired Washington Grain Commission CEO Thomas Mick at a special event hosted by the Washington Grain Commission.

USW's next Board meeting will be held jointly with NAWG in Houston, TX, Oct. 24 to 27, 2012.

Service Builds Foundation for Growing U.S. Wheat Export Sales in South Asia
U.S. Wheat Associates (USW) is helping build record export sales and sustainable demand for U.S. wheat in South Asia by helping milling and baking customers grow their businesses, USW Regional Vice President Mike Spier said today in a presentation to the USW Board of Directors in Spokane, WA.

“In southeast Asia, including  Indonesia, Vietnam and Thailand, wheat consumption is rising rapidly because incomes are improving and tastes are shifting from rice to wheat foods," Spier said. “That is opening markets for baked goods, biscuits, cakes and other foods that need more types of higher quality flour and per capita annual wheat consumption is growing.”

Spier said that increased demand means existing and new flour mills in the region are rushing to increase capacity. USW is providing technical assistance on how to improve and expand product lines using high quality U.S. hard red spring (HRS) for bread flour and soft white (SW) for cake, biscuit and confectionery flour. At the same time, USW is conducting baking seminars to introduce new products with higher profit margins using flour milled from U.S. HRS, SW and hard red winter (HRW) wheat.

“Our experienced, well-respected bakery experts are demonstrating the superior performance and value of U.S. wheat compared to competing Australian and Canadian supplies,” said Spier, who directs activities in 30 countries with a regional office in Singapore and a sub-office in Manila, Philippines. "In addition, we have developed strong relationships with buyers in the region and focus on helping those buyers get the best value possible," Spier told the USW directors. "This trade service and technical assistance yields direct returns." 

He discussed an example from Vietnam where U.S. wheat imports had dropped early in 2011/12 compared to the year before. Through a grain procurement workshop, USW showed that U.S. HRS supplies were tightening, information that prompted the Vietnamese mills to increase HRS purchases just before prices jumped. In Indonesia, with USW’s assistance, two flour mills have developed premium flour brands using only U.S. wheat supplies and Indonesia now leads the region in HRW imports.

Spier showed that flour millers in the region prefer U.S. wheat for bread, cake, cookie and cracker flours. A survey by Grain Growers of Australia in 2011 showed a similar preference for U.S. wheat in the region, he said. That translates to sales. Exports of HRS to South Asia reached a record level of more than 77 million bushels in marketing year 2011/12 (June to May), Spier said. Total U.S. wheat sales to the region in 2011/12 and 2010/11 averaged about 3.8 million metric tons per year. That is up nearly 20 percent compared to the previous five-year average, he said, and represents more than $1.3 billion in export sales in calendar year 2011. At 35 percent of this growing milling wheat market, U.S. wheat market share is also increasing.

Spier is optimistic that these trends will continue.

"Southeast Asia’s milling and baking industries are thriving and creating excellent opportunities for the U.S. wheat industry," he said.

An Oregon native, Spier started his career in 1992 as a grain merchandiser with United Grain Corporation in Portland, OR, and joined USW in 1997 as assistant director of the West Coast Office in Portland. In 1998, Spier relocated to Cairo, Egypt, where he served as the assistant regional director for the Middle East and East Africa. Spier was transferred to Manila, Philippines, in 2002 to become assistant regional director for South Asia and has served in Singapore as regional vice president since 2009.



Avoid Heat Stress in Cattle with Proper Planning

With weather forecasts of temperatures in the mid- to upper-90s and heat index topping 100 degrees in Iowa, Iowa State University Extension and Outreach beef veterinarian Grant Dewell reminds beef cattle producers that properly preparing for these weather conditions is vital to maintaining herd health.

Five steps to avoiding heat stress in your herd

-- Plan ahead. After cattle get hot, it's too late to prevent problems.

-- Don't work cattle when it is hot. Finish working cattle before 9 to 10 a.m. in summer, and remember that during a heat wave it's best to not work cattle at all.

-- Provide plenty of fresh clean water. When it's hot and humid, consuming water is the only way cattle can cool down. Make sure the water flow is sufficient to keep tanks full, and ensure there's enough space at water tanks (3 inches linear space per head.) Introduce new water tanks before heat event occurs so cattle know where they are.

-- Feed 70 percent of ration in the afternoon. Heat from fermentation in the rumen is primary source of heat for cattle. When cattle are fed in morning peak rumen temperature production occurs during the heat of day when they can't get rid of it. By feeding 70 percent of ration in late afternoon, rumen heat production occurs when it is cooler.

-- Provide ventilation, shade and/or sprinklers. Environmental temperatures compound the heat load for cattle during a heat wave. Remove objects that are obstructing natural air movement. Indoor cattle will benefit from shade provided by the building as long as ventilation is good. Outdoor cattle will benefit from sprinklers to cool them off. Make sure cattle are used to sprinklers before employing them during a heat wave.



NMPF Urges Quick House Action on 2012 Farm Bill
House Agriculture Committee Vote Expected Wednesday

The National Milk Producers Federation (NMPF) joined 75 other farm and agriculture groups in urging rapid consideration in the House of Representatives of the 2012 Farm Bill. In a letter sent today to the leaders of the House Agriculture Committee, NMPF urged members of Congress to act quickly on the measure before current farm law expires at the end of September.

“Farmers need certainty about farm policy as they make annual operating decisions, so it is important that we get a farm bill done this year. With the September 30th deadline looming for the current law, we are pleased that the House Agriculture Committee is working hard to get the bill completed,” NMPF wrote in the letter. The Agriculture Committee is expected to begin voting on amendments to its version of the Farm Bill starting this Wednesday.

“The farm bill is tremendously important for every single American, not just farmers and ranchers. In addition to helping farmers plan ahead and mitigate risk to survive the tough times, the bill provides critical investment in rural communities, conserves precious natural resources like soil and water, provides food for those less fortunate, and creates new sources of energy made here at home,” the letter said. It was sent to Agriculture Committee Chairman Frank Lucas (R-OK), and ranking Democrat Collin Peterson (D-MN).



RFS Rumor Mill
Matt Hartwig, Renewable Fuels Association

Late last week, a rumor caught fire on the trading floor in Chicago that EPA was going to waive down the Renewable Fuel Standard (RFS) by 20%, presumably based on concerns about the U.S. corn crop.  As we all know now, that was just a rumor.  However, it does underscore how misinformation spread deliberately or unintentionally can move markets and create mass confusion.

In order to set the record straight, we wanted to provide some facts and insight on the statutory process relating to RFS waiver provisions.  In order for EPA to waive RFS requirements, the agency must find that the program is causing economic "harm." The agency can reach such a finding on its own, or it can be asked to examine the question of "harm" via  petition from the public. EPA must provide a public comment period and consult with other relevant agencies before making any final decisions regarding a waiver request.  In short, EPA cannot waive the overall RFS targets on a whim – there is a well-defined process for waivers. You may recall, Texas Gov. Rick Perry filed a petition alleging "harm" from the RFS in 2008. After a thorough investigation, EPA roundly rejected Gov. Perry's petition. 

Here's some context about today's ethanol market:
•    Today, there are stocks of approximately one billion gallons of ethanol in the market – by historic measures, stocks are heavy and enough ethanol is in storage to provide sufficient supply support for the rest of the summer.
•    Ethanol producers have tightened their belts in recent weeks and reduced production. Last week's production was the lowest of the year and roughly 10% below levels from January.
•    Still, the industry remains on pace to easily satisfy this year's RFS target of 13.2 billion gallons. Year-to-date monthly EIA production data shows annualized ethanol production of 13.9 billion gallons.
•    Additionally, the US continues to export ethanol due to domestic market constraints.  We're on pace to export 900 million gallons this year.
•    Finally, there are currently some 2.5 billion surplus Renewable Identification Numbers (RINs, or "credits") available to help obligated parties meet their RFS requirements.  This rolling excess of credits has been accumulated over the last several years as oil companies have over-complied with their RFS obligations due to ethanol's attractive blending economics. Remember, the RFS  is fundamentally a requirement to turn in a pre-determined number of credits to EPA to demonstrate compliance annually.  This overhang of RINs provides sufficient cover for obligated parties to fulfill RFS volumes and time for both ethanol and grain markets to adjust.

The bottom line is the EPA has no justification for altering the overall RFS in any way, nor does it have the authority to impulsively reduce the program's targets.  Ultimately, the market will sort out any imbalances in supply and demand.  Much like the petroleum industry, ethanol producers will read market signals and make decisions accordingly.



Waterhemp jumps to No. 1 weed to watch in Midwest

Glyphosate-resistant waterhemp is making a troublesome mark in the Midwest, so much so that it has become the new No.1 weed to watch for farmers in the region.

When BASF asked Midwest farmers in 2010 about weeds that most concerned them, the majority called out common lambsquarters as their main worry. Marestail was second. Ragweed species came in third, and common waterhemp was fourth.

In the latest 2012 survey, one in five growers listed waterhemp as the top glyphosate-resistant weed they expect to show up on their farms during the 2012 season, with marestail and lambsquarters listed as the No. 2 and 3 weeds to watch, respectively.

The dramatic shift was no surprise to Dan Westberg, Ph.D., Technical Market Manager, at BASF. “In 2011, we saw glyphosate-resistant waterhemp explode across the Midwest,” said Westberg. “It was a tipping point for farmers and another sign that we have to think beyond glyphosate alone for weed control.”

Spreads like wildfire
Waterhemp, by its very biology, has the ability to cause major problems if left uncontrolled.

“Waterhemp is a prolific seed producer that can create detrimental seed banks farmers must deal with for years,” said Westberg. “Waterhemp also emerges throughout the season, so it’s a weed that is poised to spread like wildfire – which makes the resistant populations especially dangerous.”

Even more troubling, waterhemp populations with resistance to multiple herbicide sites of action are also rapidly expanding. Of the 10 states that have now confirmed glyphosate-resistant waterhemp, three have waterhemp populations with resistance to multiple sites of action.1

Corn and soybean waterhemp solutions
For growers looking to control waterhemp in their crops, it is essential to update weed control programs with new strategies, such as using multiple herbicide sites of action and utilizing effective preemergence herbicides.

“With waterhemp, starting clean with a good residual herbicide that offers an additional site of action is key to staying clean all season long,” said Westberg. “Early season weed control helps reduce the seed bank and minimizes weed pressure for better in-season control with post-emerge herbicides.”



Pepsi Enters U.S. Dairy Market

PepsiCo Inc. (PEP) has agreed to a joint venture with German dairy company Theo Muller Group to introduce new yogurt products to the U.S., marking the food and beverage company's entry into the U.S. dairy market as it looks to capitalize on growing consumer demand for dairy products.

"As we've seen through the success of our dairy business in other parts of the world, this is a category with strong growth prospects," said Pepsi Chief Scientific Officer Mehmood Khan.

The soft-drink company said the joint venture will combine its brand recognition, reach, and research and development capabilities with Theo Muller's dairy expertise. This will also be a first entry into the U.S. dairy market for Theo Muller, which is Germany's largest privately held dairy business.

The Muller Corner, Muller Greek Corner and Muller FrutUp brands of yogurt will be sold at supermarkets and club retailers in 17 markets in the Northeast and mid-Atlantic region starting this summer.

The company said the joint venture is building a new manufacturing plant in Batavia, N.Y., which, once completed in 2013, is expected to create more than 180 new jobs in upstate New York.

Pepsi already has a stake in the global dairy products business. The company acquired Wimm-Bill-Dann, Russia's largest dairy company, in 2011 and has been part of a joint venture with Almarai, Saudi Arabia's largest dairy company, since 2009.

Monday, Pepsi reiterated its previously stated goal of growing its global nutrition portfolio to $30 billion in revenue by 2020 and highlighted 2011 Euromonitor data saying that globally the dairy category is expected to grow more than any other through 2016.