Thursday July 19 Ag News

Fortenberry Calls for Emergency Grazing and Haying Options to be Available for Producers Across State 

Congressman Jeff Fortenberry, chairman of the House Agriculture Committee's Operations, Oversight, and Credit Subcommittee, today called on the federal Farm Service Agency to consider making emergency grazing and haying options open to all Nebraska agricultural producers.  Currently, producers in some Nebraska counties are authorized for access to Conservation Reserve Program (CRP) acres for purposes of supplementing available livestock feed options.

“Drought conditions are affecting our entire state,” Fortenberry said.  “Consistently high temperatures and little rain are rapidly drying up feed sources for livestock producers.  In these extreme conditions, it’s important to rapidly consider expanded options.”

In a letter to Farm Service Agency Administrator Juan Garcia, Fortenberry wrote:  “As conditions quickly deteriorate across central and eastern Nebraska, I am hopeful that Nebraska counties not yet eligible for CRP emergency usage will be promptly considered for authorization. It is my understanding that at this time, the environmental impact would be negligible.”

Several Nebraska counties are currently approved for CRP Emergency Grazing and Haying.  To see a statewide map of approved counties, visit http://www.fsa.usda.gov/Internet/FSA_File/emerg_grazing.pdf.



Low Streamflow Conditions Add to Midwest Drought Woes

Streamflow levels are below normal across much of the Midwest states of Iowa, Nebraska, Illinois and Wisconsin, according to the U.S. Geological Survey. Many states, such as Iowa and Nebraska, are experiencing severe drought where flows are less than 25 percent of normal streamflow conditions for the majority of the state.

Drought is the nation's most costly natural disaster, far exceeding earthquakes, tornados, hurricanes and floods. Low streamflows contribute to higher than normal water temperatures, which have negatively impacted fish and have caused fish kills in some areas throughout the Midwest.

USGS crews are making extra streamflow and groundwater level measurements in a number of states so that cooperators will have sufficient data to make water management decisions.   Areas of low stream flow can be viewed in real time on the USGS WaterWatch website http://waterwatch.usgs.gov/?id=ww_drought. The map shows how current flows compare to what would be normal for a given time of year based on historical averages. For information specific to your local area, visit one of the USGS Water Science Center drought information websites in Iowa, Nebraska, Minnesota, Illinois, South Dakota or Wisconsin. To access water quality information, to include local stream temperatures, visit the USGS real-time WaterQualityWatch website http://waterwatch.usgs.gov/?id=ww_drought.

"Of all of our Nation's natural disasters, drought is in many ways the most insidious, coming on slowly without major headlines or lead stories, and tending to continue to play out long after the life-giving rains have returned in terms of culled herds, unproductive orchards, and impaired ecosystems ripe for invasive species," said USGS Director Marcia McNutt. "USGS is bringing the best scientific information to bear in these tough times so that water managers will make a little water do a lot of good."

While the USGS WaterWatch website is an adequate real-time gauge for areas experiencing hydrologic drought, stream and river conditions are not the only drought indicator. The national Drought Monitor is the official report detailing drought conditions, and this map paints a fuller picture of drought than just stream flow information. In addition to relying heavily on USGS streamgage data, this map also incorporates soil moisture, agricultural information, satellite data, and precipitation.

Right now, almost 80 percent of the contiguous United States is facing abnormally dry conditions. The Federal Emergency Management Agency has estimated that the annual average cost of drought in the United States ranges from $6 to $8 billion, while flooding estimates are in the $2 to $4 billion range. Unlike flooding, drought does not come and go in a single episode. Rather, it often takes a long time for drought to begin to impact an area, and it can fester for months or even years.



NOAA Predicts Above Normal August Temperatures

Above-normal temperatures will cover much of the U.S. in August, government forecasters said Thursday.

The greatest divergence from normal temperatures is expected in central states below the Great Lakes region, according to the National Oceanic and Atmospheric Administration forecast.

In New England, Florida, parts of the lower Southwest and the extreme coastal regions of the Pacific and Gulf Coasts, the forecast calls for equal chances of normal, above-normal, or below normal temperatures. Below-normal temperatures are expected in the coastal edge of the Pacific Northwest.

In the August-October outlook, NOAA sees above-normal temperatures across much of the U.S., from the Four Corners states of the Southwest to the East Coast, with extreme temperature deviations in the central states.

The West Coast, Northern Rockies and parts of the Northern Plains show an "equal chances" designation on NOAA's three-month forecast map.

NOAA said there is a 65% chance that the weather phenomenon known as El Nino will develop by year end.

"It appears more likely for El Nino to develop during the late summer" in the Northern Hemisphere, NOAA said. "Weak or moderate El Nino conditions should be in place late in the year."

El Nino is the name given to the unusual warming of the waters of the equatorial Pacific Ocean, with wide reaching impacts. NOAA has said that among El Nino's effects are potential dry and warm conditions in normally wet regions of the world such as Indonesia and Australia. Places that are normally dry, such as western South America and the southwest U.S., tend to be much wetter than normal.

In El Nino events, Western Canada and Alaska, along with portions of the U.S. Midwest, tend to experience a much warmer-than-normal winter, while the southeast U.S. tends to experience wet and cool conditions throughout much of an El Nino winter, NOAA has said.

Most of the U.S. shows equal chances of normal, above-normal or below-normal precipitation in August and in the August-October forecast.

Below-normal August precipitation is expected in the Pacific Northwest and in the central states where temperatures are expected to be the most above normal levels. In Four Corners states are expected to see above-normal precipitation in August.

In the three-month outlook, below-normal precipitation is expected in a more limited part of the Pacific Northwest and the central states. Above-normal precipitation is expected in the Four Corners area and along the Gulf Coast from eastern Texas to the Florida panhandle.



Senate Finance Committee Unanimously Passes Russian Trade Bill

The American Soybean Association (ASA) congratulates the Senate Finance Committee on its unanimous passage today of a draft bill that would establish permanent normal trade relations (PNTR) with Russia, the world’s sixth largest economy. ASA now encourages the Senate to take up the bill as quickly as possible, and calls on the House to move forward with a companion bill in order for the U.S. to capitalize on Russia’s accession package to the World Trade Organization (WTO). Importing more than $770 million in meat, poultry, egg and dairy products in 2011, Russia is an important market for the U.S. soy industry.

“Today’s unanimous passage of the draft bill establishing PNTR with Russia is a very encouraging move by the Senate Finance Committee, and we congratulate Committee Chairman Baucus and Ranking Member Hatch on their work to solidify U.S. business opportunities abroad,” said ASA President Steve Wellman, a soybean farmer from Syracuse, Neb. “The demand in Russia for poultry, pork, eggs, dairy products and other items that use soy inputs is already significant and continues to grow as the Russian economy grows. With today’s vote, the U.S. soy industry is one step closer to expanding an already beneficial and positive relationship with a valuable partner.”



Success Stories and Extension Experts Lead Agricultural Engineer to Iowa State

To hear Dan Huyser tell it, nearly every professional experience he had and every Iowa State University Extension and Outreach faculty and staff person he met guided him to his current position as an ISU Extension agricultural engineering program specialist.

“My background is predominantly in the livestock areas, and I worked at the Land O’Lakes Answer Farm near Fort Dodge for almost 11 years. During that time, I met some of their field specialists and was able to shadow them at times,” Huyser said. “Their knowledge of the latest technologies and management methods always amazed me, as did their ability to pass on the information to others. I enjoyed hearing their success stories with people they served.”

Iowa State faculty members with extension responsibilities also contributed to his positive impression of extension, and it didn’t hurt that he earned his bachelor’s degree in animal science from Iowa State while working on the farm.

“Leo Timms in dairy provided a wealth of information during an equipment updating process at the Answer Farm, and in doing so gave me insight into the variety of opportunities that extension provides for people,” he said. “Also, I worked for Hongwei Xin helping to set up equipment for some research trials while earning a bachelor’s degree in agricultural engineering from ISU, and really enjoyed the experience of working for the university. I thought it would be a good fit for me to join the extension team.”

His 11 years at the Answer Farm allowed him to help in nearly all of the areas, including beef, turkey, veal, swine and horse facilities; test plots; and manure, feeding and ventilation systems. During various construction and remodeling projects, he increased his knowledge of structures and building practices. Other positions also contributed to his well-rounded background. He worked as a herdsman on a private farm; was a design engineer for a company that builds seed corn plants and equipment; and supervised remodeling and maintenance of commercial properties.

But the world of agriculture and extension drew him back to Iowa State.

“I started work at the Borlaug Learning Center near Nashua on May 28 and it’s been good to hear the positive comments on having an ag engineer in the area again,” Huyser said. “Part of my goal is to let everyone know that we’re open to new ideas on programs and subject matter that people would benefit from. Besides what I can offer, there are many field specialists as well as some very good people on campus who can come and speak on a specific subject.”

He said that his wide-ranging experience on several farms has given him a good perspective in his new role as ag engineering program specialist.

“Working on different farms, I know there are different ways to do the same thing, whether it was manure handling, feeding or whatever. I’ve learned that every farm is different, so a person has to be willing to investigate all possibilities and try to look at things from different angles to get the best ideas,” Huyser said. “Working around livestock research specifically, I’ve learned to keep an open mind and realize that things change quickly.

“For example, while I was on campus my first week, Jay Harmon gave me a tour of the Iowa State swine farms. There are a lot of projects going on that will benefit producers in the future and I look forward to being a part of seeing this research being applied,” he said. “I want to help people get the information they need as soon as I can. That’s what makes ISU Extension a great resource.”



Study Supports Need To Reform Ethanol Production Mandate

In response to a new economic study on the impact of corn ethanol production on food prices and commodity price volatility, a coalition of livestock and poultry groups is urging Congress to reform the federal Renewable Fuels Standard (RFS), which mandates the amount of ethanol that must be produced annually.

Conducted by Thomas Elam, Ph.D., president of FarmEcon LLC, an Indiana agricultural and food industry consulting firm, the study found that federal ethanol policy has increased and destabilized corn, soybean and wheat prices to the detriment of food and fuel producers and consumers.

The RFS, first imposed in 2005 and revised in 2007, this year requires 15.2 billion gallons of ethanol to be produced. Most of that amount is blended into gasoline at 10 percent.

“The increases we’ve seen in commodity prices are strongly associated with the RFS mandate,” said Elam. “At the same time, we haven’t seen the promised benefits on oil imports or gasoline prices. This means that while Americans are forced to pay more for food, they’re also not seeing lower prices at the pump; it’s a lose-lose situation.”

As a Senate Biofuels Investment and Renewable Fuels Standard Market Congressional Study Group examines several aspects of the RFS, the study will provide critical facts needed to reform the current standard. Among other results, the study found that because of the RFS:
·         Ethanol, because its energy cost is higher than gasoline and because of its negative effect on fuel mileage, added about $14.5 billion, or 10 cents a gallon, to motorists’ fuel costs in 2011.
·         Increased ethanol production since 2007 has had no effect on gasoline production or oil imports, contrary to supporters’ claims.
·         Corn used for ethanol production rose 300 percent from 2005 to 2011, increasing from 1.6 billion bushels to 5 billion. (Ethanol production now uses more than 40 percent of the U.S. annual corn supply.)
·         Corn now represents about 80 percent of the cost of producing ethanol compared with 40-50 percent before implementation of the mandate.
·         Corn prices jumped to more than $6 a bushel in 2011 from $2 in 2005.
·         The rate of change for the Consumer Price Index for meats, poultry, fish and eggs increased by 79 percent while it decreased by 41 percent for non-food items since the RFS was revised in 2007.
·         Ethanol production costs and ethanol prices have all but eliminated a market for ethanol blends higher than 10 percent.
·         The United States exported 1.2 billion gallons of ethanol in 2011.

In addition to the effects of the RFS, the study pointed out that on an energy basis, ethanol, which has only 67 percent of the net energy per gallon of gasoline, never has been priced competitively with gasoline. It also found that, contrary to supporters of the RFS, oil imports have declined not because of increased ethanol production but because of increased domestic crude oil production and higher refinery yields.

In urging reform of the RFS, the coalition cited the Elam study’s conclusion that the mandate should be revised to allow automatic adjustments to reduce incentives for ethanol production when corn stocks are forecast to reach critically low levels.

The coalition supports legislation – the “Renewable Fuels Standard Flexibility Act” (H.R. 3097), sponsored by Reps. Bob Goodlatte, R-Va., and Jim Costa, D-Calif. – that would require a biannual review of ending corn stocks relative to their total use. If the ratio falls below 10 percent, the RFS could be reduced by 10 percent. If it falls below 7.5 percent, the mandate could shrink by 15 percent; below 6 percent, it could be reduced by 25 percent; and if the ratio falls below 5 percent, the ethanol mandate could be cut by 50 percent.

Such relief is extremely urgent, the coalition points out, because the recent spike in corn prices prompted by drought conditions in much of the Corn Belt has analysts predicting the United States will run short of corn this summer. Another short corn crop would be extremely devastating to the animal agriculture industry, food makers and foodservice providers, as well as consumers, says the coalition.

Because of the RFS, however, corn-based ethanol manufacturers are protected from sharing the full burden of a corn harvest shortfall. 

The Elam study was funded by the American Meat Institute, California Dairy Inc., the Milk Producers Cooperative, the National Cattlemen’s Beef Association, the National Chicken Council, the National Pork Producers Council and the National Turkey Federation.



NCGA Statement on the Drought and the Renewable Fuel Standard

National Corn Growers Association President Garry Niemeyer released the following statement in response to media coverage and Capitol briefings on the drought, food prices and the Renewable Fuel Standard.

“This is a time when farmers and ranchers are suffering the nation’s worst drought in years, covering nearly two-thirds of our country’s land mass. Like any crisis, it has led to numerous inaccuracies and exaggerations, especially when it comes to the impact on food supply and retail food prices.

“Yesterday at the White House, USDA Secretary Tom Vilsack noted that farmers only receive a fraction – about 14 cents – of every dollar spent on food at the grocery store. Look at corn, for example, which even at its current price is an inexpensive food ingredient. The corn in a box of Corn Flakes only costs about a dime, and there’s just over a quarter’s worth of corn in a pound of beef.

“When it comes to the Renewable Fuel Standard for ethanol and other biofuels, now is not the time for changes. It’s working. The RFS is revitalizing rural America, reducing our dependence on foreign fuel and reducing the cost of gasoline. Making changes to the RFS now would only ensure that consumers suffer due to significantly higher fuel prices.

“And while it is true that our corn crop is suffering, it’s still in the field.  We won’t know the actual size of the 2012 corn crop until months from now. In the meantime, the market is working. All corn users are responding to market signals. Ethanol production and exports are down. In addition, there is currently an ethanol surplus in the United States that will further reduce demand on the 2012 corn crop.

“Given the challenges of the drought and suffering of all farmers, now more than ever, U.S. agriculture needs to pull together.  NCGA will continue to help lead the way in trying to unite, rather than divide, American agriculture.”



ACE says the market is working and evidence supports maintaining the RFS amid drought conditions

The American Coalition for Ethanol (ACE) today criticized a new study on the Renewable Fuel Standard (RFS) issued by Farm Econ LLC saying the study is slanted and misleading.  ACE Executive Vice President Brian Jennings released the following statement in response.

“While the groups paying for this study feel entitled to cheap corn forever and are shamelessly exploiting the drought as an excuse to roll back the RFS, there is no credible evidence to justify reducing or waiving it. The fact is the RFS is helping reduce dependence on foreign oil, moderating gas prices, and securing jobs in rural America. Both USDA Secretary Vilsack and U.S. Senator Stabenow, chair of the Senate Agriculture Committee have indicated the drought is not an excuse to waive or repeal the RFS.”

“Because corn ethanol production has exceeded the RFS, approximately 850 million gallons of ethanol is in storage and between 2.5 and 3 billion surplus RINs are in the bank.  This provides significant cushion for refiners to meet the RFS in drought conditions without it being the cause of a run up in corn prices. The surplus storage and RINs also enable ethanol producers to scale back production based on market cues without impacting obligated parties’ ability to meet the RFS requirements. Indeed the market is working. Ethanol plants are responding to corn prices and curbing production. Scaling back the RFS via legislation or a waiver won't change these market dynamics,” Jennings said.



June Milk Production Up 1.0 Percent
                       
Milk production in the 23 major States during June totaled 15.5 billion pounds, up 1.0 percent from June 2011. May revised production at 16.4 billion pounds, was up 1.9 percent from May 2011. The May revision represented a decrease of 22 million pounds or 0.1 percent from last month's preliminary production estimate.

Production per cow in the 23 major States averaged 1,827 pounds for June, 7 pounds above June 2011.  The number of milk cows on farms in the 23 major States was 8.51 million head, 57,000 head more than June 2011, and 14,000 head less than May 2012.

April - June Milk Production Up 2.0 Percent
Milk production in the United States during the April - June quarter totaled 51.5 billion pounds, up 2.0 percent from the April - June quarter last year. The average number of milk cows in the United States during the quarter was 9.26 million head, 66,000 head more than the same period last year.

State 2Q Milk Production
             (million pounds, % of last year)
Iowa .........:  1,123.0              +0.2     
Nebraska ..:    299.0               -0.7     



Argentina Raises 2011-12 Corn Crop Estimate, Trims Soybean

Argentina's agriculture ministry revised its forecasts Thursday for 2011-12 corn and soybean production in its monthly report, lowering the soy estimate but raising corn.  The ministry raised its corn estimate to 21 million metric tons from 20.1 million tons last month. About 89% of the harvest is done.  With the soybean harvest virtually wrapped up, the ministry slightly trimmed its estimate to 40.1 million tons, down from 40.3 million forecast last month. 

Argentina is the world's leading exporter of soymeal and soyoil, ranks second in corn exports and third in soybean exports.

Argentina Wheat Area Cut More Due to Export Limits
With the window for planting coming to a close, it appears that Argentina's farmers will have planted less wheat than initially expected, the Buenos Aires Cereals Exchange said in its weekly crop report Thursday.

The Buenos Aires exchange trimmed its area forecast to 3.6 million hectares (8.9 million acres), down from 3.7 million hectares estimated last week. That forecast is in line with the area estimated by the Rosario Grain Exchange, Argentina's other top private-sector crop forecaster.

Argentina is one of the world's top grain producers, ranking No. 5 in wheat exports, according to the U.S. Department of Agriculture. The majority of the wheat it exports goes to neighboring Brazil.

Despite good conditions, wheat planting is expected to fall almost one- quarter from the 4.6 million hectares planted last season, as government export controls have driven down local prices and fueled a shift to other crops.

So far about 84% of the wheat crop has been planted. "All areas are showing important drops in planted area during the current season, especially in the northern areas," the Buenos Aires exchange said.




Mosaic Earnings Up During Past Fiscal Year

Mosaic Company reports that for the year ended May 31, 2012, net income reached $1.9 billion, or $4.42 per diluted share. Net sales were $11.1 billion, an increase of 12 percent from $9.9 billion reported a year ago.

Full-year operating earnings were $2.6 billion, slightly down from a year ago. Improvements in sales were driven by higher average potash and phosphate selling prices. Operating earnings reflect lower Potash sales volumes and higher phosphate raw material costs.

During the company's fourth quarter, Mosaic generated $1.2 billion in cash from operations, approximately $800 million after capital expenditures. The company began operating at the South Fort Meade mine following judicial approval of settlement terms on March 28, 2012. The mine is expected to be at full production by the end of August 2012.

Meanwhile, Mosaic set a new record for sales of the premium product MicroEssentials. The company completed new manufacturing capacity and is now able to produce 2.3 million tonnes of MicroEssentials per year.



Glyphosate-Resistant 'Superweeds' May Be Less Susceptible to Disease

Scientists searching for clues to understand how superweeds obtain resistance to the popular herbicide glyphosate may have been missing a critical piece of information, a Purdue University study shows.

Glyphosate, the active ingredient in the weed killer sold under the name RoundUp, is the most widely used herbicide in the United States, but some plants have grown resistant to it. This has caused farmers to turn to additional herbicides. While the mechanisms that have led to resistance are not fully known, Bill Johnson, a professor of weed science; Steve Hallett, an associate professor of weed science; and Jessica Schafer, a graduate student in botany and plant pathology, believe that soil microbes may play a role.

Most laboratory tests done to understand glyphosate resistance are done in sterile soil, void of those microbes. Schafer said Purdue's findings, published online early in the journal Weed Science, show that those microbes may play a significant role in how glyphosate affects plants.

"The soil you're growing the plants in is important to the results," Schafer said. "If we're growing in a sterile media, we could get some false positive results because the plants are more tolerant to glyphosate in those conditions."

Hallett and Schafer grew giant ragweed, horseweed and common lambsquarter in both sterile soil and field soil and subjected them to glyphosate. In each soil, strains of weeds both susceptible and resistant to glyphosate were tested.

Both versions of giant ragweed were damaged more from the glyphosate in field soil. The susceptible version of common lambsquarter was also more heavily damaged in field soil. Horseweed fared the same no matter which soil or strain - susceptible or resistant.

The results show that microbes can play an important role in the activity of glyphosate, presumably by invading the glyphosate-weakened plants. The results also suggest that glyphosate-resistant weeds may be more resistant to disease pressure as well.

"Soil microbes can be minor to major contributors to how glyphosate is able to affect plants," Hallett said. "We may be selecting not only for glyphosate resistance, but inadvertently selecting for weeds that have disease resistance as well."

A weed's ability to withstand glyphosate was based on dry shoot and root weight after testing. The sterile soil used in the study came from field soil exposed to gamma radiation to kill microbes and bacteria. The irradiated soil was tested to ensure that its nutrients were not diminished.

Hallett, Johnson and Schafer said further studies would look at how fungi in the soil affect root development, both with and without glyphosate.

"Dirt is a living organism," Johnson said. "It's important to know how all the pieces interact."

The research was conducted with internal funding from Purdue's Department of Botany and Plant Pathology.