Tuesday July 10 Ag News

Managing Drought Forages
Larry F Howard, UNL Extension Educator, Cuming County

There has been some discussion in recently about the management of corn and soybeans in our area due to the lack of rainfall.  UNL Extension in Cuming County, in cooperation with the Cuming County Feeders Association, has scheduled an informational  meeting for Tuesday, July 24 at 7:00 pm to address some of the options that producers have.  We have invited UNL Extension Forage Specialist, Bruce Anderson who will be our main presenter.  The meeting will be held at the Ballroom in Beemer.

Dr. Anderson shared the following information with us late this past week.   Silage, green chop, hay, and graze all are workable options.  Hay may be most difficult if ears start to form -- both stalk and especially ears will be slow and difficult to dry.  Green chop may be most dangerous -- nitrates, if present, will start to change into nitrites (which are about 10 times as deadly) as green chop begins to heat.  Producers should only chop and feed immediately an amount animals will clean up in one feeding.  Clean out bunks if not all consumed and never feed green chop held overnight because nitrites can be exceptionally high.  Silage may be safest as fermentation usually (but not always) reduces nitrate levels and risk.  Timing is most critical with silage to get correct moisture for proper fermentation -- plants are probably 80 to 85% moisture now and desire around 65%.  You can blend wet with drier feeds such as ground hay or cracked grain but can take a lot of material -- about 500 pounds of grain or hay to reduce 85% moisture chopped corn down to 70% moisture! 

Challenges with grazing include acidosis risk for cattle not accustomed to grain if ears have started to fill (smart cows will selectively graze ears), waste from excessive trampling, availability of drinking water, perimeter fencing, and nitrates.  Reduce acidosis risk by feeding increasing amounts of grain similar to feedlot step-up rations before turning into standing corn.  Reduce waste by strip grazing with at least 2 or 3 moves per week and daily is best.  Back fences are not needed because regrowth is not expected.  Water can be hauled as with winter corn stalks or lanes might be constructed back to water sites using electric fence if not too long a distance or across roads.  If strip grazing, animals can walk back over previously grazed areas since back fences aren't needed.  Perimeter fences can be built using same fencing as for winter stalks.  Cows should be okay but may not be sufficient for calves.  Producers might need a double strand and/or more visible barrier such as electric polyrope or polytape.  If not already experienced with electric fences, animals may need some exposure and training before risking in a corn field.  Nitrates are not usually a problem with grazing since highest concentrations are in the stem base, which is the plant part of the corn least likely to be consumed.  Risk is more likely if animals are forced to 'clean-up' a strip before moving to fresh feed and when corn plants are short (probably less than 3-feet tall) with small, palatable stem bases.  Test for nitrate concentration (whole plant and just bottom 8 inches of stem base) prior to grazing to assess risk.  Reduce hazard by offering enough desirable forage to discourage consumption of hazardous plant parts as a major component of diet.

Producers  are generally encouraged  to delay salvage operations until all chances of increased biomass tonnage from any rain has past.  For proper moisture of silage, you may need to wait until most leaves are dead because stalk and ear hold amazingly high water concentrations.



New Report: Nebraska Ag Production Complex is Key to State's Economy

            Nebraska is blessed with a "profoundly significant and diverse agricultural production complex" that gives it great economic momentum as a leader in the ever-expanding global food economy, according to a new report from the University of Nebraska-Lincoln.

            The report uses statistics from 2010 to paint a picture of the prowess of the state's ag-based economy. Its percentage share of the state's total economy is unmatched anywhere except South Dakota.

            But the authors also caution that Nebraskans should develop a more comprehensive statewide strategy for long term sustainability of its ag industry to contend with "growing external forces that may not have the best long-term interests of Nebraska in mind."

            "The 2010 Economic Impact of the Nebraska Agricultural Production Complex" was written by Eric Thompson, UNL Bureau of Business Research; and Bruce Johnson and Anil Giri, Department of Agricultural Economics, 

            The agricultural production complex focuses on the set of industries closely involved in the growing, processing and transportation of agricultural products. Included in this complex are crop and livestock production, agriculture-related manufacturing (both durable and nondurable), agriculture-related transportation and wholesaling, agriculture-related research and education and agri-tourism.

            The significant role the multiplier effect plays reflects how agriculture has changed in Nebraska and elsewhere, the report said.

            "Agriculture has moved significantly from a commodity economy to an agricultural product economy," authors said. For example, only one-third of the state's corn crop is exported from the state. The rest is processed through livestock and ethanol production and exported as food, fuel and related products, and this value-added activity boosts employment and earnings across the state.

            Some of those direct and indirect statistics combined, and their percentage share of Nebraska's total economy in 2010:
-- Total sales volume: $68.88 billion, 41 percent.
-- Total gross state product: $22.64 billion, 27 percent
-- Employment: 289,200 jobs, 24 percent
-- Total wages and proprietor's income: $13.67 billion, 25 percent

In short, these measures reflect an agricultural production complex accounting for about one-fourth of Nebraska's total economy.

            The role of agricultural activity in the economy varies by region. In Northeast Nebraska, home to crop and livestock production and considerable ag-related production and processing, agriculture accounted for 81 percent of the production output and 63 percent of the gross regional product, while employing 51 percent of the region's workforce and producing 66 percent of its labor income.

            Agriculture's prominence also was quite high in the North, Central, South and Southeast regional economies. The East region actually generated the largest regional dollar volume of agricultural activity and ag-related employment, but given the presence of the state's two largest urban areas, its portion of the region's broader economy was much smaller.

            The report noted that Nebraska's agricultural producers and manufacturers long have been known as innovative users of the latest technologies and management techniques. "These features allow the complex to be a leader in international trade and create a solid foundation for the Nebraska economy," the authors wrote. "This was never clearer than during the recent 'Great Recession,' when the export strength of Nebraska agriculture helped the state stave off the worst effects of that recession."

            But the converse of that also is true, the report notes. Economic downturns in agriculture are inevitable and their impact will be magnified in Nebraska. In fact, the report says, economic volatility in agriculture is likely to increase.

            Authors predict continued growth for Nebraska's ag production complex, with exports likely to grow to China, India and other countries in Asia and Latin America. They also predict more growth in food processing, agriculture-oriented manufacturers and biotechnology companies and in the transportation industry.

            "Overall, Nebraska is positioned, like few other areas of the country, to capitalize on the strength of its agricultural production complex," the authors wrote. "This state has a thriving bio-economy tied to a rich natural resource endowment and skilled human capital which will only increase in importance in a world of rising global demand for food and other agriculturally based output."

            "That said, however, economic volatility arising from agriculture will tend to ripple through the state's total economy, often triggered by external forces of both national and global origin.

            "This signals a clear need of a more comprehensive state-level strategy for long-term sustainable development around its agricultural base – a strategy engaging all stakeholders in a shared vision for the state and a commitment to pursue it," the authors wrote.

            The report said that strategy could include streamlining of regulations, enhancing investment opportunities for new and emerging agricultural technologies, providing workforce training and management education, expanding basic and applied research for innovation in agriculture, practicing sustainable stewardship of natural resources and enhancing quality-of-life for citizens across the state.

            "This will involve the need to engage all stakeholders in a shared vision for the state and a commitment to pursue it. To do otherwise could expose the state to growing external forces that may not have the best long-term interest of Nebraska in mind," the report concludes.

            The study was a joint effort of the UNL Department of Agricultural Economics and the Bureau of Business Research within the Department of Economics and was funded by the university's Institute of Agriculture and Natural Resources. It is available online at agecon.unl.edu. Hard-copy versions are available for $7 per copy from the Department of Agricultural Economics at UNL, 102 Filley Hall, Lincoln, NE 68583-0922.



2012 Nebraska Grazing Conference Aug. 14-15 in Kearney

Two dozen presenters from five states will share their expertise on topics related to grazing animals and stewardship of grazing lands at the 12th annual Nebraska Grazing Conference at the Kearney Holiday Inn Aug. 14-15.

The goal of the conference is to help producers make better decisions in managing their grasslands, said Bruce Anderson, University of Nebraska-Lincoln Extension forage specialist.

With the dry weather this year, a big challenge for producers is proper drought management. Drought decreases plant growth, Anderson said, so this means less food in the pastures, which stresses the animals. Faced with inadequate food supply, animals may start eating poisonous plants such as hemlock or Riddell's groundsel that they usually avoid, he said.

Furthermore, limited food sources for animals may lead to them overgrazing pastures and weakening grazing lands potential in subsequent years, Anderson said. "The effects of the drought can be very lasting if we don't deal with the condition while it is here," he said.

Producers can find out more about managing drought risk in a presentation on Wednesday, Aug. 15. Several speakers will brief conference participants on step-by-step drought planning, livestock feeding and financial considerations, insurance options and lessons learned in drought planning.

Concluding the program on Wednesday afternoon will be a panel of producers who will discuss how to evaluate which grazing system option is best for your operation.

Another highlight of the conference is how producers can use livestock to control weeds in their grasslands, Anderson said.

On Tuesday, Aug. 14, Kathy Voth, founder of Livestock for Landscapes based in Loveland, Colo., will give an afternoon presentation and conduct an evening session on training cows to eat weeds. "This increases the amount of feed available in the pastures by getting livestock to eat desired plants as well as weeds," Anderson said.

Other events on Tuesday include a presentation by Justin Derner with the USDA-ARS High Plains Grasslands Research Station in Cheyenne, Wyo., who will address managing land for ecosystem services and livestock production. Sandy Smart from South Dakota State University in Brookings will add to that topic with a focus on the role of prescribed burns.

Cost-share programs to deal with federal and state endangered species on ranches will be covered by Mike George, USFWS-Ecological Services. Beau Mathewson from Potter, Neb., will describe some of the management practices that led to his family receiving the Nebraska 2011 Leopold Conservation Award.

Two concurrent sessions also will be held on Tuesday: one addresses winter grazing and the other focuses on how to use monitoring to make land management decisions.

The banquet speaker Tuesday evening will be UNL range scientist Walter Schacht, who will talk about his year teaching and conducting research on rangelands in Namibia.

Registration is $80 if postmarked by Aug. 1 and $95 afterward. One-day registrations are also available, and walk-ins are welcome. Reduced registration fees are offered for full-time high school or college students. Registration fees will be paid by the UNL College of Agricultural Sciences and Natural Resources for students who will still be in high school this fall and who pre-register by the Aug. 1 deadline.

Hotel reservations can be made by contacting the Holiday Inn at 308-237-5971 and specifying the Nebraska Grazing Conference for appropriate rates, or by booking online (see link at conference website).

For more information, ask at a local UNL extension office, visit the conference website at http://nebraskagrazingconference.unl.edu or contact the UNL Center for Grassland Studies at (402) 472-4101 or grassland@unl.edu.

The conference is sponsored by several public and private organizations including the conference underwriters:  Center for Grassland Studies, Farm Credit Services of America, Nebraska Game and Parks Commission, and the Nebraska Grazing Lands Coalition.



Nebraska Ethanol Board meeting July 23, 2012

The Nebraska Ethanol Board will meet on Monday, July 23 at 9:00 a.m. The meeting will be held at Hampton Inn & Suites Conference Center, 301 W Highway 26, Scottsbluff.  Highlights of the meetings agenda include... EPIC Fund Report, an update on Ethanol Marketing Programs, Special Presentations by Karla Jenkins, UN-L Panhandle Research Extension;  Dan Schwartzkopf, ICM;  and Doug Durante, Clean Fuels Development Coalition,  updates on Ethanol Plants and State and Federal Legislation. 



Beef Feedlot Near Broken Bow, Neb., Agrees to Pay $145,000 Civil Penalty for Illegal Discharges into Mud Creek

Adams Land and Cattle Company, a beef feedlot near Broken Bow, Nebraska, has agreed to pay a $145,000 civil penalty to the United States Environmental Protection Agency (EPA) for violating the federal Clean Water Act and its National Pollutant Discharge Elimination System (NPDES) permit related to discharges of pollutants into Mud Creek.

In December 2010, EPA Region 7 inspected Adams’ facility, located just south of Broken Bow.  The facility confined approximately 83,000 cattle at the time of the inspection.  Inspectors reviewed facility operations, required record-keeping and waste management practices, and also visually inspected the facility.  EPA inspectors documented that Adams had allowed its waste storage basins to overfill with manure solids and sediment to the point they could no longer store runoff from large rain events.  A followup inspection was performed in December 2011.

Through these inspections and a review of records provided by Adams, EPA concluded that the facility discharged process waste water to an unnamed tributary of Mud Creek, a water of the United States, on 13 occasions between April 2007 and October 2010.  The discharges were a result of inadequate storage capacity in holding basins, lack of controls necessary to prevent the Mud Creek tributary from flooding the holding ponds, and/or failure of piping associated with land application practices.  Adams estimated that approximately 140 million gallons of process wastewater was released during these discharges, impacting Mud Creek and its tributary.

“The Clean Water Act requires feedlots properly maintain adequate storage capacity in their storage basins to prevent unauthorized wastewater discharges,” EPA Region 7 Administrator Karl Brooks said.  “Unpermitted discharges from improperly maintained storage basins can cause serious impacts to the water quality of nearby rivers and streams.”

On August 10, 2011, the Nebraska Department of Environmental Quality (NDEQ) filed a penalty action against Adams that addressed one of the discharges.  The action required Adams pay a $5,800 penalty along with a $5,800 payment to the Broken Bow, Neb., Chapter of Pheasants Forever.  EPA’s penalty action announced today penalizes Adams for the other 12 discharge events and related permit violations.

EPA and NDEQ share legal authority and responsibility for protecting water quality in Nebraska.  Given the recurrent nature of the violations, EPA made the decision to exercise the enforcement authority that it shares with the State of Nebraska to resolve the issue.

By agreeing to the settlement, Adams Land & Cattle Company, has certified that it is in compliance with the Clean Water Act.  The settlement is subject to a 30-day public comment period before it becomes final.



$59,876 Grant to University of Nebraska-Lincoln

EPA is providing a $59,876 urban waters grant to the University of Nebraska-Lincoln (UNL) to evaluate the effectiveness of  the Saddle Hills neighborhood’s green infrastructure in metropolitan Omaha, Neb.

UNL and partners, including the City of Omaha and the Nebraska Forest Service, will assess green infrastructure practices by creating a water quality assessment database and developing a stormwater mobile application for smartphones and mobile devices. The application will allow users, such as local residents, youth, master gardeners and city staff, to learn about ways to reduce stormwater runoff.

“Green infrastructure and stormwater management strategies play a critical role in water quality improvement by reducing runoff that carries multiple contaminants into streams and rivers,” said Karl Brooks, regional administrator. “The project will empower community residents and land owners to look at stormwater as an asset rather than a waste product, and will increase public awareness and grassroots participation through workshops about urban water quality.”

The funding is part of EPA’s Urban Waters program, which supports communities in their efforts to access, improve and benefit from urban waters and surrounding land.

Many urban waterways have been polluted for years by runoff from city streets and contamination from abandoned industrial facilities. Healthy and accessible urban waters can help grow local businesses and enhance educational, economic, recreational, employment and social opportunities in nearby communities. By promoting public access to urban waterways, EPA will help communities become active participants in restoring urban waters while improving and protecting their neighborhoods.'



Vilsack to Announce Disaster Assistance Improvements and Support for Farmers Affected by Extreme Weather

Agriculture Secretary Tom Vilsack will host a national media conference call Wednesday to announce improvements to USDA’s disaster designation process and enhancements to existing disaster-related support for American producers. Vilsack will also discuss how a strong farm safety net is important to sustain the success of American agriculture, especially as extreme heat and drought conditions grip much of our nation’s farm and ranch land and Congress continues to debate a new farm, food and jobs bill. During times of need, USDA will continue to respond to disasters across the country with direct support, disaster assistance, technical assistance, and access to credit.

Although USDA’s authority to operate the major disaster assistance programs authorized by the 2008 Farm Bill expired on Sept. 30, 2011, the Secretary will detail a number of improvements to existing USDA programs that will help struggling producers endure various disasters.



2012, 2013 Ethanol Production Seen Down

The Energy Information Administration on Tuesday, in its latest Short-term Energy Outlook, forecasts fuel ethanol production to decline slightly this year versus 2011.

The agency expects fuel ethanol production to average 901,000 barrels per day (bpd) this year and in 2013, down from estimates at 910,000 bpd and 920,000 bpd, respectively, in June's Outlook.

This forecast assumes that E15 does not yet reach the market in significant volumes. Consequently, U.S. ethanol production is expected to exceed the volume that can easily be used in the U.S. liquid fuels pool, so the nation will continue to be a net exporter of ethanol over the next two years.

EIA estimates U.S. biodiesel production in 2011 averaged about 63,000 bpd. Forecasted biodiesel production for this year averages 70,000 bpd, increasing to 75,000 bpd in 2013, both unchanged from month-prior estimates.



CWT-Assisted Export Sales Well Ahead of 2011

For the first six months of 2012, Cooperatives Working Together (CWT) has assisted 10 member cooperatives in making 406 sales to overseas buyers in 32 countries in the Asia/Pacific region, the Middle East, North Africa, and Central and South America. Cheese export sales through the end of June totaled 66.3 million pounds. Butter and anhydrous milk fat sales totaled 45.2 million pounds.

All products are scheduled to be delivered in 2012 and are the equivalent of 1.597 billion pounds of milk on a butterfat basis, or the same as the annual production of 76,100 cows. With U.S. milk production up 3.3 billion pounds in the first five months of 2012, CWT is not only expanding and maintaining markets for U.S. dairy products, but it is also moving milk out of the U.S. market. This strengthens and stabilizes dairy farmer milk prices. CWT members have sold the equivalent of 1.6 billion pounds of milk overseas so far this year.

Thirty-seven dairy cooperatives and 117 individual producers, representing 70% of the milk produced in the U.S., are investing in CWT. If more cooperatives and individual producers invest just two cents per hundredweight in CWT, the program will be more effective.



NMPF Urges Agriculture Committee to Reject Amendment to Gut Dairy Reforms in Farm Bill
House Agriculture Committee Vote Expected Wednesday

The National Milk Producers Federation (NMPF) today urged members of the House Agriculture Committee to reject an amendment that would undo the significant dairy policy reforms proposed for the 2012 Farm Bill.

The Agriculture Committee is expected to begin considering amendments Wednesday to its version of the 2012 Farm Bill. One of those, to be offered by Reps. Bob Goodlatte (R-VA) and David Scott (D-GA), would make dramatic changes to the bill’s dairy title by eliminating its market stabilization program.

“The Goodlatte-Scott dairy amendment guts the dairy reforms that farmers have worked so hard in the past three years to create,” said Jerry Kozak, President and CEO of NMPF. “And this amendment undercuts these efforts in the worst possible way: by tearing a hole in the insurance safety net offered to farmers in the Farm Bill. Replacing a robust safety net with one that resembles Swiss cheese is bad policy and bad politics.”

As originally proposed in the Dairy Security Act, the new farm-level safety net under consideration offers dairy farmers a basic level of margin protection at no cost, while offering them the option of purchasing supplemental margin insurance to cover a wider gap between the cost of feed and the milk price. Those who choose this voluntary program would be covered by the market stabilization element, encouraging them to temporarily cut back milk production when margins are poor.

However, under the Goodlatte-Scott amendment, the market stabilization program – which helps align milk supplies with demand, and controls government farm program expenditures – is eliminated. Because this step would otherwise drive up the cost of the margin insurance program and increase federal outlays, the amendment punishes farmers who choose to use the margin insurance program by reducing the amount of insurance coverage offered to them.

“This last-minute attempt to unravel years of careful economic analysis and industry-wide collaboration is an affront to farmers, and should be rejected by the members of the Agriculture Committee,” Kozak said.



Australia, New Zealand, U.S. Uneasy Over Canada’s Inclusion In Trans-Pacific Partnership

The recent decision at the G20 summit to include Canada in the Trans-Pacific Partnership (TPP) has the United States, New Zealand and Australia up in arms over Canada’s open agricultural subsidy schemes, in particular its programs for Canadian pork production.

The TPP countries – the United States, Australia, New Zealand, Brunei Darussalam, Chile, Malaysia, Peru, Singapore and Vietnam – also voted to include Mexico in the TPP. The nine economies have a combined gross domestic product (GDP) of nearly $17 trillion, a GDP per capita of $33,546 and a population of 505.8 million people.

The inclusion of Canada and Mexico now takes the 11-member TPP group to nearly 30 percent of global GDP, a substantially larger trading power than the 27-nation European Union (EU) bloc.

While trading power is one element, the TPP goes beyond a traditional trade agreement and deals with behind-the-border impediments to trade and investment. The group serves as a pathfinder to broader regional economic integration, similar to the EU. This ultimately gives it potential to form the basis for free trade across the Asia- Pacific region. The main aim of the TPP negotiations is to eventually include all 21-member economies of the Asia-Pacific Economic Co-operation (APEC) forum.

Australian Pork Limited CEO Andrew Spencer said, “Australian pork producers are aware that Canada’s federal and provincial governments bestow countervailable subsidies on the Canadian pig industry. These subsidies cause significant distortions to overseas markets such as Australia, the U.S. and New Zealand. Domestic subsidy programmes are generally not within the scope of free trade agreements. However, in this case, Canadian agricultural subsidies are so wide ranging and have such a broad and far-reaching impact on overseas markets it is on these grounds we, along with the U.S. and New Zealand, urge the TPP negotiators and governments to deal with these issues fairly as part of the process.”

“Canada needs to end its federal and provincial hog subsidy programs, which are distorting the North American and world pork markets,” said R.C. Hunt, president of the National Pork Producers Council and a hog farmer from Wilson, N.C. “If the United States had a subsidy program similar to Quebec's, for example, we would double pork production in 10 years to the severe detriment of our Canadian counterparts. Subsidy programs are antithetical to free trade and to the spirit of the Trans-Pacific Partnership negotiations that Canada is entering.”

New Zealand Pork CEO Owen Symmans said, “We support safe free trade with appropriate management of biosecurity and food safety risks. However, we are concerned that Canada enters the TPP with federal and provincial government subsidies for the Canadian pig industry in place. The Province of Ontario recently enacted a new countervailable subsidy program called the Risk Management Program that sees Canadian farmers receive a guaranteed return for their pork production. This sort of blatant subsidisation places competing pork producers, who do not subsidise their production, at a distinctive disadvantage.”

Australian, New Zealand and U.S. pork producers have pointed out that the Canadian government’s actions are counterproductive to the overarching philosophy of the TPP’s goals and ambitions, and their respective pork organizations are forming a united voice to strongly request national trade representatives involved in the TPP negotiations to address the serious and damaging action by the Canadian government.



U.S. Dairy Industry Pursues Trade Negotiations with Canada, Russia

Canada has been extended an invitation to actively join the ongoing Trans-Pacific Partnership (TPP) trade agreement negotiations.

The National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) strongly supported Canada’s participation in the TPP negotiations. Both groups agreed that since Mexico has been invited to join the talks, it only makes sense for the third member of the North American Free Trade Agreement (NAFTA) to join as well. However, whereas Mexico and the United States already have removed all dairy trade barriers between them, this is not the case with respect to trade between Canada and the United States—a situation which the two organizations said must be remedied.

According to the dairy groups, the U.S. government's approval of Canada’s participation in the TPP talks has been accompanied by a very clear understanding of U.S. expectations that all Canadian trade barriers against U.S. dairy products must be eliminated. This requirement was fundamental to gaining the groups’ support.

“The U.S. dairy sector hopes to see significant gains from a well-negotiated TPP and welcomes Canada’s membership as an important step towards achieving this goal,” said Jerry Kozak, president and CEO of NMPF. “The United States and Canada have had a free trade agreement since 1988, but it did not include dairy products. It is time for this oversight to be changed and we welcome this opportunity to finally make that happen.”

Meanwhile, legislation was introduced in the Senate last month to extend Permanent Normal Trade Relations (PNTR) to Russia. Senator Baucus (D-MT), Finance Committee Chairman; Senator John Thune (R-SD), International Trade Subcommittee Ranking Member; Senator John Kerry (D-MA), Foreign Relations Committee Chairman; and Senator John McCain (R-AZ), Armed Services Committee Ranking Member, introduced the bipartisan legislation in order to enable U.S. companies to expand exports to Russia when it joins the World Trade Organization (WTO) this year.

Russia is expected to complete the necessary administrative and regulatory changes and thereafter to actively join the WTO this August. Those commitments include provisions relating to agricultural trade, which NMPF and USDEC believe will yield significant improvements in tariff levels as well as in how Russia deals with various regulatory requirements for imported dairy products.



Three Fertilizers Move Lower Again

Retail fertilizer prices tracked by DTN for the first week of July 2012 continue to show prices for three fertilizers moving lower while the other five major fertilizers sit nearly unchanged.

As has been the case the last three weeks, urea, 10-34-0 and UAN32 led the way to the lower side.

Urea was 7% lower compared to a month earlier while both 10-34-0 and UAN32 were 6% lower. The nitrogen fertilizer had an average price of $697 per ton while starter was at $715/ton and the liquid nitrogen at $456/ton.

Urea was below $700 per ton for the first time in 13 weeks. The last time it was this low was the first week of April 2012.

Four other fertilizers were also lower, but none of them were down significantly. MAP had an average price of $680/ton, potash $654/ton, anhydrous $766/ton and UAN28 $416/ton.

One fertilizer was up just slightly in price compared to a month earlier. DAP had an average price of $636/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.76/lb.N, anhydrous $0.47/lb.N, UAN28 $0.74/lb.N and UAN32 $0.71/lb.N.

Only one of the eight major fertilizers is still showing a double-digit increase in price compared to one year earlier. The nitrogen fertilizer urea is now 24% higher compared to last year.

Four fertilizers have seen just slight price increases compared to a year earlier. Potash is now 7% higher while both UAN28 and UAN32 are set at 3% more expensive and anhydrous is 1% higher.

The remaining three fertilizers are now actually lower compared to July 2011. 10-34-0 is now 13% lower, DAP is 8% less expensive and MAP is now 6% lower compared to last year.



Use Science in Regulating Antibiotics, Agriculture Coalition Says

A coalition of agricultural organizations sent a letter earlier in June to Rep. Louise Slaughter (D-NY), who was seeking to severely restrict antibiotic use in livestock and poultry production, pointing out the stringent federal approval process and regulation of antibiotics, the lack of human health risks from their judicious use in livestock production, and the benefits they offer in food animal production.

Members of the coalition included the American Farm Bureau Federation, American Feed Industry Association, American Meat Institute, Animal Health Institute, American Veterinary Medical Association, National Cattleman’s Beef Association, National Chicken Council, National Milk Producers Federation, National Pork Producers Council, National Meat Association and the National Turkey Federation.

Slaughter in February asked food companies to submit to her by June 15 their purchasing policies related to antibiotic use in food animals. She is the primary author of the “Preservation of Antibiotics for Medical Treatment Act” (H.R. 965), which seeks to ban the use in livestock and poultry production of several classes of antibiotics employed for preventing and controlling diseases and for promoting nutritional efficiency.

“Antibiotics used in veterinary medicine are reviewed and approved by the U.S. Food & Drug Administration (FDA),” the coalition stated in its letter. For animal antibiotics, the safety assessment is more stringent than that for human antibiotics in three ways: 1) If there are risks to humans, FDA will not approve the antibiotic for animals; 2) FDA requires a food safety assessment to ensure meat is safe; and 3) FDA studies the pharmaceutical thoroughly to guarantee it does not increase the risk of antibiotic-resistant bacteria in food. The coalition further explained that FDA recently issued new regulations that effectively prohibit the use in food animals of “medically important” antibiotics for improving nutritional efficiency. The rules also ensure veterinarians will be involved in overseeing all uses of these products.

The coalition cited several published, peer-reviewed risk assessments showing any threat to human health from antibiotic use in livestock and poultry production is negligible, and pointed out many of the bacterial illnesses becoming resistant to antibiotics in human medicine have little or no link to antibiotic use in food animals.



Iso-butane Branch Planned for Iowa

Global Bioenergies, an industrial biology company developing technology to produce biological-based chemicals, announced on Monday it is opening a branch in Ames, Iowa.  The initial focus of the U.S. branch will be on iso-butane, one of the "most important petrochemical building blocks that can be converted into fuels, plastics, organic glass and elastomers," Global Bioenergies said in a news release.

The company continues to improve the yield of its process preparing for pilot testing. After the successful commercial deployment of iso-butanol, the company developed a process to manufacture biological-based propylene, ethylene, and other chemicals used in the petrochemical industry. All will be produced utilizing biological feedstocks.  The facility will focus on conversion of biological feedstocks into iso-butane and other light olefins.

Dr. David Gogerty, a specialist in industrial biology, will head the new U.S. branch.  "I am excited that a publicly traded global company has recognized the value of the Iowa Corn Belt in its drive to produce biofuels and other valuable hydrocarbons from renewable resources, Gogerty said.

This U.S. branch is added to the company's German branch opened in 2010, according to Marc Delcourt, CEO.  "The Iowa operation will advance our projects and those of our customers and partners in the U.S., France, German, Poland, and most recently, New Zealand," Delcourt said.

Global Bioenergies said it is one of the few companies worldwide, and the only one in Europe, that is developing a process to convert renewable resources into hydrocarbons through fermentation.



RFA chief offers strong defense of RFS

In testimony before the House Energy and Commerce Committee Subcommittee on Energy and Power today, Renewable Fuels Association President and CEO Bob Dinneen will underscore the importance of domestic ethanol in the nation’s fuel supply and the important role the Renewable Fuel Standard plays.  

“One important alternative fuel — ethanol — is already helping to address these national concerns,” Dinneen wrote in prepared testimony.  “America’s ethanol industry — buttressed by a visionary Renewable Fuel Standard (RFS) — is already decreasing our reliance on foreign oil, already exerting downward pressure on gasoline prices, already employing tens of thousands of American workers, and already cleaning up our air. As a result of the forward-looking nature of the RFS, the industry is poised to make even more significant contributions to our nation’s economic and environmental security in the future.”

Dinneen highlighted two important contributions the RFS and ethanol are already making to our nation’s economic and energy security.

• The RFS is Reducing U.S. Dependence on Oil Imports.  Since the original RFS was adopted in 2005, net imports of crude oil and petroleum products have fallen from 60% to 45%.  OPEC oil imports are at their lowest level in 16 years.  “Because U.S. ethanol production has grown each and every year since 1996, with an average annual growth rate of 24 percent since 2005. In fact, since 2005, ethanol has accounted for eight out of every 10 barrels of newly produced liquid fuel from U.S. sources on a cumulative basis (i.e., taking into account both production gains and losses relative to 2005 levels).”

• The RFS is Reducing U.S. Gas Prices.  Two university studies – one from Iowa State University and the University of Wisconsin, and one from Louisiana State University – found that ethanol is significantly decreasing prices at the pump for all Americans.  The ISU/U of W study found ethanol kept gasoline prices $0.89 per gallon lower in 2010 and a whopping $1.09 per gallon cheaper in 2011.  The LSU study agreed, finding that ethanol reduced gas prices by $0.78 in 2010.

Dinneen also took the opportunity to defend the RFS and its Renewable Identification Number (RIN) tracking system.  Calling the controversy over fraudulent biodiesel RINs “overblown,” Dinneen noted that these RINs represent just a sliver of the overall market and such practices are far from systemic.  The 140 million fraudulent biodiesel RINs represent less than 0.5% of all RINs generated.  Some 26 billion ethanol RINs have been generated without a single instance of fraud.

“In truth, the fraudulent activity was very isolated and resulted from the actions of just three bad actors in the biodiesel space,” Dinneen testified.  “The U.S. Environmental Protection Agency (EPA) effectively identified those bad actors, investigated the fraud, and pursued appropriate enforcement action. In other words, the bad apples were quickly rooted out of the barrel.”

Finally, Dinneen reemphasized the ethanol industry’s commitment to flexible fuel vehicles and expanding fueling infrastructure to accommodate the growing volumes of renewable fuel called for by the RFS.



Pork Industry Facing Financial Ruin?

Drought and the impact on feed prices may be on the verge of creating a financial disaster for the pork industry and other livestock. The crop stress that began in Indiana and Illinois is now spreading further to the west. Although much of the media attention has been focused on crop producers, who face large yield losses, the animal industries may ultimately fare even worse.

"Crop producers have the potential for two compensating income streams when yields are low," said Purdue University Extension economist Chris Hurt. "The first is what is called the 'natural hedge.' When yields are low across a broad geographic area, then prices generally rise. This is especially true when stocks-to-use ratios are tight as they are now. Under these conditions a 10 percent reduction in national yield is offset by a rise in prices that is substantially more than 10 percent. This means that revenues tend to be less negatively affected by yield losses. Many crop acres have some type of crop insurance that can help cushion the financial blow of low yields. While these conditions hold on average, there will be considerable ranges in how individual farm families are impacted."

Hurt said pork and animal producers tend not to have any form of income protection against higher feed prices in the short run.

"With the weather market just three weeks, December 2012 corn futures have risen by $2.25 per bushel and December meal futures are up $100 per ton," Hurt said. "These represent a 45 percent increase for corn and 28 percent increase for soybean meal. These higher feed prices have to be absorbed by the animal industry, causing a collapse in financial margins."

Hurt said because higher feed costs cannot be passed on to the consumer, there is no natural hedge for the animal industries in the short run.

"The collapse of margins results in financial losses, which cause discouragement among animal producers," Hurt said. "This will result in selling at lighter weights and the beginning of liquidation of some of the breeding herds and flocks immediately, but especially this fall.

"Unfortunately, the increased slaughter this summer and fall will tend to increase production and may cause some downward pressure on animal prices. Over time, meat, milk, and milk-product production drops and prices of animals and products rise such that the costs of higher-priced feed is passed to consumers. Animal producers ultimately do get compensation for the higher feed costs, but that comes after a prolonged period of losses that some producers cannot survive," he said.

How does this play out for the pork industry outlook today?

Hurt reported that December futures prices are $7.30 per bushel for corn and $450 per ton for meal. Estimated costs of pork production have reached record-high levels for the third quarter of this year, at $72 per hundredweight, and drop only to $69 for the fall and winter.

"Hog prices cannot reach those lofty costs with losses anticipated to be about $20 per head for the next three quarters," Hurt said. "There is little hope to cover costs until feed prices move lower, which may be the fall of 2013. That is a long horizon of losses," he said.

Hurt said that producers can be expected to respond by marketing animals more quickly, and this means at lower weights. In the last three weeks, the average live weight has dropped from 277 pounds to 274 pounds. Further reductions should be expected in the coming weeks. Producers also will quickly look for low productivity sows to cull. The decision to liquidate sows will take a bit more time, but that could begin by the end of the summer and especially this fall. Sows that go to market and are not re-bred in August will not have a litter in December and will not have market-ready hogs early next summer.

Hurt stressed that the important point is that hog prices for the last half of 2013 should begin to rise because of the quick beginning of liquidation this summer. This will likely be reflected in higher lean hog futures for the last half of 2013.

"The drought is on-going and the impact on feed prices will be dynamic," Hurt said. "For those hog producers who can survive the financial pressure over the next year, there can be improvement starting in the last half of 2013. Because hog prices should be higher by that point, short feed supplies will have been rationed out, and prospects for more normal 2013 yields will hopefully be in place."

Hurt cautioned that those in the animal industry need to articulate the extreme financial stress they are likely to experience in the coming 12 to 15 months.

"The immediate view is that crop producers will bear the brunt of the financial losses, but losses in animal industries will be enormous over the next year, perhaps becoming considerably greater than for the crop sector," Hurt said. "This articulation by the animal industries is important to alert consumers to higher retail food prices but also to policymakers. Policymakers will likely have an influence on release of CRP lands for grazing and haying, on any potential disaster payments from the federal government, and in helping the EPA/USDA make decisions about the size for the 2013 Renewable Fuels Standard," he said.



Oscar Mayer To Work With Suppliers To Transition To Alternative Housing For Pregnant Sows

The Oscar Mayer brand announced Friday it will work with its pork suppliers to transition from traditional gestation stall housing to pregnant sow housing alternatives by the end of 2022. While the Oscar Mayer brand does not raise pigs, the plan is to source all pork from suppliers who can provide pregnant sow housing that safely allows for greater movement for the animal, while ensuring their comfort.

“At Oscar Mayer, we believe quality meat begins with quality animal care.  We are committed to finding better ways to keep animals healthy and in a safe environment while treating them with respect,” said Sydney Lindner, Associate Director, Corporate Affairs for Oscar Mayer. “This is not only important to us, but also to our consumers who care about animal well-being and comfort.”

The Oscar Mayer brand has a history of finding better ways. It is working with animal care experts, suppliers and their farm families to find alternatives to traditional gestation stalls that provide quality animal care, consider worker safety, and are adaptable for farm families of all sizes to implement.

As expected, the news brought praise from the Humane Society of the U.S., which said Oscar Mayer's announcement 'sends a strong message to pork industry leaders who are resisting change.'



NCBA Redbooks Available for Purchase
 
The National Cattlemen’s Beef Association (NCBA), the largest and oldest national organization representing U.S. cattle producers, published the 2013 version of its Integrated Resource Management (IRM)Redbooks. The books serve as a tool for U.S. cattlemen and women to record calving information and daily production activities.

For more than 25 years, according to John Paterson, NCBA executive director of producer education, these record books have provided an effective way for cattle ranchers to record their production records in order to enhance profitability of their operations.

“The 2013 Redbook provides more than 100 pages to record calving activity; herd health; pasture use; cattle inventory; body condition; cattle treatment; and more. The books also contain an annual calendar; address section; Beef Quality Assurance national guidelines; and proper injection technique information,” said Paterson. “This is a tool every cattlemen needs.” 

The IRM Redbooks can be customized with company information and/or logo on orders of 100 books or more at a reduced rate. Please contact Grace Webb at (800) 525-3085 or gwebb@beef.org for more information. Individual 2013 Redbooks will be available for purchase on Oct. 1, 2012, for $6.25 each, plus shipping through NCBA’s Website at www.beefusa.org.



Americans Commemorate National Ice Cream Month

Following June Dairy Month on the calendar, members of the dairy industry, along with consumers, will spend the hot, muggy days of July celebrating National Ice Cream Month. Started in 1984, then-president Ronald Reagan designated July as the official time of year to acknowledge the importance of ice cream in the U.S.

He also declared the third Sunday of the month (July 15 this year) as National Ice Cream Day. Reagan recognized that ice cream was a fun and nutritious food enjoyed by 90% of the nation's population. President Reagan's proclamation called for all people of the United States to observe these events with "appropriate ceremonies and activities."



Illinois Family Farmers Featured at NASCAR Race

NASCAR racing fans will once again be able to meet Illinois Family Farmers at the Chicagoland Speedway July 21-22.

Kenny Wallace, a NASCAR fan-favorite athlete, will return to the "Family Farmers" car in the July 22nd NASCAR Nationwide Series race which will be aired live at 1PM on ESPN. Partnered with the television exposure of the "Family Farmers" car, the nearly 18,000 square foot Family Farmers exhibit will allow race fans to learn more about farming, and more importantly, meet family farmers themselves.

The main visual attraction to the exhibit area will be a large display of farm equipment including a combine, tractor, and auger wagon. Once inside, the race fans will be welcomed by Illinois family farmers who will answer questions about farmers, food, and farming. Specific components of the exhibit will highlight livestock production and ethanol.

"Working with the family farmers in Illinois and around the country has been an honor," said Kenny Wallace, who now has nearly 800 career NASCAR starts under his belt. "I've been in combines, I've ridden in tractors, and I've even seen a grain elevator. I'm passionate about sharing what I call 'true knowledge' about family farmers."

"It's become more and more obvious to me that farmers need an advocate on their team. They need somebody that can stand up and challenge all the nonsense that people say about farmers and what they do. That's my job now. Farmers can depend on me," Wallace added.



Farm Aid to be Held in Hershey, Pennsylvania

Farm Aid announced that its annual benefit concert will return to Pennsylvania on Saturday, Sept. 22 at Hersheypark Stadium.

"We've built a strong family farm movement to grow our economy, ensure our health and protect our environment. Farm Aid brings these Main Street values to transform the Wall Street-controlled farm and food system," said Farm Aid President Willie Nelson. "The Farm Aid concert is our chance to shine a spotlight on the independent family farmers who are essential to the well-being of our country."

Farm Aid 2012 will feature Nelson and fellow board members John Mellencamp, Neil Young and Dave Matthews - with Tim Reynolds - as well as Jack Johnson, ALO, Pegi Young & The Survivors, and Lukas Nelson & Promise of the Real.

The signature music and food festival will feature Farm Aid's HOMEGROWN Concessions® - family farm-identified, local and organic foods. Farm Aid's HOMEGROWN Village will give concertgoers a chance to meet farmers, engage in hands-on food and farm activities and learn about the ways family farmers are enriching our soil, protecting our water and growing our economy, in addition to bringing us good food for good health.

Farm Aid has a rich history in Pennsylvania. Farm Aid has long collaborated with and supported organizations and organizers in the state who are growing the Good Food Movement, including innovators at the forefront of the organic and the Buy Fresh Buy Local movements. Farm Aid concerts in the region include Farm Aid 1999 and 2000 in Bristow, Va.; Farm Aid 2002 in Burgettstown, Pa.; and Farm Aid 2006 in Camden, N.J.

Tickets for Farm Aid 2012 will go on sale Friday, July 13, at 10 a.m. EDT and will be available at www.livenation.com , www.ticketmaster.com , Ticketmaster outlets, GIANT Center Box Office, or by phone at 800-745-3000. Ticket prices range from $35.75 to $99.75. For venue information, visit www.hersheyparkstadium.com.