Friday August 10 Ag News

Governor Heineman Announces Cuming County Designated Livestock Friendly
Gov. Dave Heineman today announced the official designation of Cuming County as Nebraska’s newest Livestock Friendly County. With the addition of Cuming County, there are now 18 counties designated as Livestock Friendly through the state program, including: Adams, Box Butte, Dawes, Deuel, Gage, Garden, Grant, Hitchcock, Jefferson, Keith, Lincoln, Morrill, Saline, Scotts Bluff, Sheridan, Wayne, and Webster Counties.

“In receiving this designation, Cuming County has shown it is committed to supporting the county’s livestock industry and related economic development,” said Gov. Heineman. “Being part of the Livestock Friendly program is a way to recognize the tremendous impact the livestock industry has on Main Streets and the local economy. It provides jobs for those working with animals and a marketplace for grain and hay producers, while also adding value to those products. With this designation, Cuming County has demonstrated it is open to agribusiness and the benefits that come from responsible livestock production.”

Gov. Heineman presented the Livestock Friendly certificate to Cuming County Commissioners Clarence Tichota, John Ross, Leslie Ott, Steve Meister, Glen Wiechman, Steve Sill, and Judy Mutzenberger. The county will receive road signs bearing the program logo to display along highways. The program is coordinated by the Nebraska Department of Agriculture.

Department of Agriculture Director Greg Ibach said the official designation makes a positive statement about Cuming County. Dir. Ibach stated, “It was clear from the submitted materials that Cuming County officials have given some purposeful thought to supporting the livestock industry.”

To apply for a livestock friendly county designation, the county board must hold a public hearing and pass a resolution to apply. A completed application is then submitted to Department of Agriculture for review. Local producers or community groups can encourage their county board to submit a livestock friendly county application.

Additional information on the Livestock Friendly County program is available by contacting NDA toll free at 800-422-6692, or by visiting the Department of Agriculture website at www.agr.ne.gov and clicking the Livestock Friendly County link.

Comments from Nebraska Governor Dave Heineman
This week, Cuming County became the 18th Nebraska County to receive an official Livestock Friendly County designation joining Adams, Box Butte, Dawes, Deuel, Gage, Garden, Grant, Hitchcock, Jefferson, Keith, Lincoln, Morrill, Saline, Scotts Bluff, Sheridan, Wayne and Webster counties.

With 49 percent of our state agricultural receipts coming from livestock producers, this industry has a strong effect on local economies through equipment and supply purchases and contracts for professional services, as well as contributions to the local tax base.

The Livestock Friendly program is a way to recognize the tremendous impact the livestock industry has on Main Streets and the local economy. Each of these counties has demonstrated that they are open to agribusiness and the benefits that come from responsible livestock production.

This program is part of a larger effort to support economic development opportunities across industries. For many agriculture-based communities, attracting businesses that contribute to the success of local producers will be the key to long-term economic stability. Nebraska’s vast natural resources make agriculture a natural economic driver, and we need to ensure that our producers and agricultural communities have the tools to foster local economic growth.

Administered by the Nebraska Department of Agriculture, the Livestock Friendly County program is a county-state partnership that works to promote economic development in rural areas. Most of the time, the state is the first contact made by agribusinesses and producers seeking to locate in Nebraska and the Livestock Friendly County program provides a first line of communication with counties that have demonstrated a willingness to support agricultural opportunities within their counties.

Each of these counties has recognized the important impact the area livestock industry has on rural development. The industry contributes to local economies, by serving as a valuable market for grain and the feed co-products produced by local ethanol plants. It expands both the local and state tax base for the benefit of our schools, local governments and quality of life. The livestock industry also makes significant contributions to our state economy by providing high-quality products that are in demand by consumers around the world.

Livestock production has long provided a wide range of benefits for local communities and for our state as a whole. This program is just one way for our agricultural counties to come together and stand in support of agriculture.

I would like to congratulate Nebraska’s 18 Livestock Friendly Counties for supporting our state’s number one industry.



Technology Enhanced to Evaluate Meat Tenderness, Color

A system designed by U.S. Department of Agriculture (USDA) scientists to predict superior beef tenderness is just as effective at predicting tenderness in pork and color stability in meat.

The noninvasive tenderness prediction system was developed in the 1990s by scientists at the Agricultural Research Service (ARS) Roman L. Hruska U.S. Meat Animal Research Center (USMARC) in Clay Center, Neb., to identify U.S. Select beef carcasses with outstanding tenderness in the ribeye/strip loin muscle. The technology is based on visible and near-infrared reflectance spectroscopy, and can be used without destroying any product from the carcass.

ARS is USDA's chief intramural scientific research agency, and this research supports the USDA priority of promoting international food security.

Food technologists Steven Shackelford, Andy King and Tommy Wheeler, who work in the USMARC Meat Safety and Quality Research Unit, invented the system and have tested it on more than 4,000 beef carcasses and 1,800 boneless pork loins.

In collaboration with the National Cattlemen's Beef Association, they demonstrated how the technology could be applied on the ribeye during carcass grading at commercial processing facilities, and to individual cuts of meat after aging. They also partnered with the National Pork Board to successfully predict tenderness of boneless pork loins during the boning and trimming process.

Some steaks and chops turn brown quicker than others and often have to be sold at a discount or thrown away. Scientists were able to modify the system to predict color stability. They looked at environmental factors such as lighting and oxygen consumption by simulating a retail display case to mimic conditions steaks go through in a traditional supermarket.

They also studied variations in genetics from a pedigree of 500 animals, and found considerable differences in color stability among those animals. That finding suggests color stability might be improved through genetic selection.

Scientists continue to assess the many applications of the system, which has shown to be efficient and cost-effective in predicting tenderness and color stability in beef and pork.



HSUS, OCM Form Alliance to Destroy Beef Checkoff

National Cattlemen’s Beef Association (NCBA) President J.D. Alexander expressed disgust following an announcement that the Organization for Competitive Markets (OCM) has formed a partnership with the Humane Society of the United States (HSUS) to destroy more than 25 years of market development and consumer demand building by the Beef Checkoff Program.

Specifically, OCM announced yesterday evening that it will file a lawsuit today seeking an injunction against the U.S. Department of Agriculture’s Agricultural Marketing Service, Cattlemen’s Beef Board and the Beef Promotion Operating Committee. OCM President and Director Fred Stokes stated during the press briefing that HSUS is helping fund its efforts to file the lawsuit. OCM claims to advocate for a fair, competitive agricultural marketplace; however, in doing so it partnered with an organization known for its anti-agriculture agenda. According to Alexander, independent research shows the beef checkoff is supported by nearly 75 percent of cattlemen and women.

“HSUS is an organization going state by state vowing to end production agriculture by outlawing scientifically validated production practices in animal agriculture. Their efforts put people out of business and often jeopardize the well-being of livestock,” said Alexander.

OCM made no secrets about its connection to HSUS during the press conference.

Stokes said, “OCM and every cowboy out there owes a deep gratitude to the Humane Society of the United States.”

Alexander, who is also an independent cattle feeder from Pilger, Neb., said it is paramount for cattlemen and cattlewomen to know that OCM is working with an extremist animal rights group to disable a program dedicated to building demand for beef.

“Their actions will impact consumers by increasing protein costs at the grocery store. They are no friend to family farmers and ranchers or consumers and will be challenged at every corner by NCBA,” said Alexander. “Animal agriculture is vital to sustaining food production and we will not sit by and allow these organizations to stifle our ability to mitigate hunger and feed people here and abroad.”



UNL Field Day Offered Aug. 22 Near Clay Center

Research updates will be featured during an Aug. 22 Field Day at the University of Nebraska-Lincoln's South Central Agricultural Research Laboratory near Clay Center.  The day begins with registration at 8:30 a.m. followed by the program from 9 a.m. to 2:15 p.m.

Three tour topics will be held throughout the day in addition to demonstrations on the SoyWater decision aid for irrigating soybeans and state-of-the-art small autonomous aerial vehicles for crop management research.

Noon lunch is being sponsored by DuPont Pioneer and refreshments by Pioneer Hi-Bred International, Mack, Inc. and Fairfield N. S. Co-op Fertilizer Association. There is no fee to attend but please pre-register by Aug. 17 to Sharon Hachtel at shachtel1@unl.edu, 402-762-4403 for a meal count. Continuing Educational Units have been applied for.

SCAL is located 7.5 miles west of the Highway 14 and Highway 6 intersection or 13 miles east of Hastings on Highway 6 on the south side of the highway

The field day tour topics and speakers include:

-- Site-specific Fertilizer Management and Nitrogen Use Efficiency; Corn Stover Removal Impacts on Grain yield, Soil Carbon and Greenhouse Gas Emissions
Variable rate irrigation and variable rate fertilization will be discussed on this tour. Presenters will share research results and discuss the use of sensors in nitrogen and irrigation management, along with practices to limit volatile nitrogen loss to the atmosphere and reduce nitrate leaching. Results from a long-term corn stover removal study that evaluates management practices to determine the viability of stover harvest in an irrigated continuous corn system also will be presented.  Speakers include: Richard Ferguson, UNL Extension soils specialist; Nick Ward and Brian Krienke, both UNL agronomy graduate students; Virginia Jin, USDA-ARS research soil scientist and Marty Schmer, USDA-ARS research agronomist.

-- Addressing Winter Annual and Glyphosate-Resistant Weeds; Emergence Timing of Winter Annual Weeds in Nebraska
Winter annual weeds and glyphosate-resistant weeds currently represent the largest weed management challenges in no-till crop production in Nebraska. This tour will provide information on the biology, yield impact and management of winter annual weeds such as henbit, horseweed, tansy mustard and field pansy. There will also be a discussion on the proliferation of herbicide resistant weed populations in Nebraska and the challenges the biology of these weeds create for effective and sustainable management.  Speakers include: Lowell Sandell, UNL weed science extension educator; Rodrigo Werle, UNL weed science graduate student and Amit Jhala, UNL Extension weed management specialist.

-- Disease Management in Corn in South Central Nebraska; Corn Rootworm Management Update
Goss's bacterial wilt and blight and other foliar diseases are some of the most important disease problems in Nebraska corn. Research results will be presented about the agronomic practices that have the greatest impact on disease development and what can be done to improve disease management and identification. Also current options for corn rootworm and Bt rootworm corn and resistance management will be presented.  Speakers include: Tamra Jackson-Ziems, UNL Extension plant pathologist, Craig Langemeier, UNL Extension plant pathology graduate student and Robert Wright, UNL Extension entomologist.

-- BitMobile Demonstration
Optimize soybean yield with a minimum amount of irrigation with hands-on training in the use of UNL SoyWater. SoyWater is a decision-aid, web-based tool that was developed with Nebraska Soybean Board funding. It can be used by irrigated soybean producers to schedule water application in a just-in-time fashion. Bring email address and password for SoyWater registration.  Speakers include: James Specht, professor, UNL Department of Agronomy and Horticulture and Jessica Torrion, UNL research associate.



230 ACE members from 20 states sign letter to USDA Secretary Vilsack; Demonstrate grassroots support for RFS

Hundreds of members and supporters of the American Coalition for Ethanol (ACE) are using their 25th annual national ethanol conference to demonstrate their thanks to USDA Secretary Tom Vilsack for supporting the RFS and ethanol industry.

Secretary Vilsack was presented a letter with 230 signatures from 20 different states thanking him for supporting the Renewable Fuels Standard (RFS) before addressing the conference Friday morning. 

The letter thanks Vilsack for his public support for the ethanol industry despite current demands from certain parties to waive or reduce the RFS.

According to ACE Executive Vice President, Brian Jennings, “Despite panicked demands and political pressure from ethanol opponents to waive the RFS, Secretary Vilsack has been thoughtful and calm, pointing out the market is working, that ethanol producers, like other corn customers, are responding to price signals and that the drought is no excuse to waive the RFS.”

The letter indicates: “While many of us work at or invest in U.S. ethanol companies, we are also livestock producers and grain farmers, engineers and scientists, bankers and accountants, and represent many other walks of life.  As the drought grips the nation, our crops, livestock, and businesses are experiencing the effects, so we empathize with those who are under financial and emotional stress.  But we also understand that waiving the RFS will not make it rain or result in cheaper or additional supplies of feed.”

The letter points out that many livestock producers aren’t opposed to the RFS, saying: “Many of us are diversified and raise grain and livestock. We support the RFS and appreciate the fact that only the corn starch is used for ethanol, leaving all the corn’s protein and nutrients for livestock feed. We are disappointed that some meat and food manufacturers, who have always opposed ethanol, are now trying to exploit the drought for their own political or financial gain.”



CattleFax Outlook, Elections Part of ICA Regional Meetings

The Iowa Cattlemen's Association will hold four regional meetings across Iowa, Aug. 20-24, to discuss policy, elections and market outlook. The meetings will be held in Alden, Denison, Mt. Pleasant, and Everly.

CattleFax market analyst Warren Prosser will attend each meeting to talk about "Did the Drought Dry-up Your Options?" Prosser will provide an outlook of grains, ethanol and cattle markets during his presentations.

Key business issues at each meeting will include discussion of key ideas to surface for policy topics that will be discussed and adopted at the ICA annual meeting in December; the operation of the ICA political action committee; and, elections of ICA nominating committee members and for two regions, the election of regional vice presidents. A meal will also be served at each meeting.

The dates, locations and specific events for each regional meeting are:

-- Aug. 20 -- Northeast Regional Meeting begins at 3 p.m. with a tour of Summit Farms in Alden (10640 Co. Hwy D20, Alden, IA). The tour will start at the feeding facilities. Summit Farms is a diverse farm operation including cattle, hogs, and row-crop production, with an emphasis on conservation measures. The CattleFax program and the business portion of the meeting will begin at 6 p.m. in the sale facility on the farm. A new nominating committee member from the region will be elected, as the term of Matt Gaul, Strawberry Point, expires.

-- Aug. 21 -- Southwest Regional Meeting begins at 5 p.m. with a social at Boulders Inn and Suites in Denison (2511 Boulders Drive, Denison, IA). Dinner is at 6 p.m., and the CattleFax and business programs will follow. The current regional vice president, Scott Hansen of Adel, will not seek re-election for that position, so a new regional vice president will be elected. Also, the term of the nominating committee position held by Brad Pellet, Atlantic, expires, and his replacement will also be selected.

-- Aug. 22 -- Southeast Regional Meeting will be held at the Comfort Inn and Suites in Mt. Pleasant (1200 East Baker Street , Mount Pleasant, IA). The meeting begins at 6 p.m. with a meal, and is followed by the CattleFax presentation and regional business discussion. The term of nominating committee member Kurt Dallmeyer of Wellman expires, and a new committee member will be selected.

-- Aug. 23 -- Northwest Regional Meeting will start with a tour at 3 p.m. of a feedyard owned by Clayton Christensen of Royal (3965 170th Ave., Royal, IA). The feedyard has a monoslopes building and has been part of a study on air quality. The CattleFax presentation and business program begins at 5 p.m. at the Hap Ketelsen Community Center in Everly (203 North Main St., Everly, IA). Elections will be held for regional vice president, a position currently held by Allan Johnson of Northwood, and for a nominating committee position currently held by Joe Greig, Estherville.



Northey Featured in Iowa Learning Farms Aug. 15 Webinar

The Iowa Learning Farms' Aug. 15 webinar will feature a conversation with Iowa Secretary of Agriculture Bill Northey at the Iowa State Fair. The webinar, which begins at 11:30 a.m., is part of a series, hosted by ILF, held on the third Wednesday of each month through Adobe Connect. All that is needed to participate is a computer with Internet access.

Secretary Northey will converse with ILF program managers Jacqueline Comito and Matt Helmers on the fairgrounds. The interview will cover a variety of issues including the state of agriculture today and what the future holds for Iowa farmers. Northey will be able to answer questions from webinar participants via the Adobe Connect chat box as well.

Northey is a fourth generation farmer from Spirit Lake who grows corn and soybeans. He returned to Spirit Lake to farm with his grandfather after graduating from Iowa State University in 1981. He is serving his second term as Iowa Secretary of Agriculture after being reelected in November 2010.

To connect to the webinar, go to https://connect.extension.iastate.edu/ilf/. The ILF website contains links for archived webinars from previous months at http://www.extension.iastate.edu/ilf/Webinars/.

Iowa Learning Farms is a partnership of the Iowa Department of Agriculture and Land Stewardship, Iowa State University Extension and Outreach, Leopold Center for Sustainable Agriculture, Iowa Natural Resources Conservation Service and Iowa Department of Natural Resources (USEPA section 319); in cooperation with Conservation Districts of Iowa, the Iowa Farm Bureau and the Iowa Water Center.



President Obama Calls for Passage of New Farm Bill

Congress has been getting a lot of pressure from rural states to take action on the current farm bill proposal and now the President is getting in on the action.  President Barack Obama spoke out this week on the farm bill debate, calling on lawmakers to approve new farm and food policy.  Speaking publicly at a White House Rural Council meeting, Obama outlined steps being undertaken by the USDA to help farmers and ranchers facing drought.  "Congress needs to pass a farm bill," the president said. "That new legislation is the single-best way that we can help rural communities both in the short term and in the long term."  USDA announced on Tuesday an additional $30 million would go toward programs helping producers in drought.



NCGA Addresses Concerns, Urges Cooperation in Light of Revised Corn Crop Estimates

National Corn Growers Association President Garry Niemeyer released the following statement in response to the U.S. Department of Agriculture reports released this morning which further decreased the estimated U.S. corn production in 2012.

“Farmers across the country are coming to grips with the full impact of this devastating drought. The August USDA crop report confirms our concerns that corn production may be several billion bushels less than previously anticipated, due to a summer heat wave which kept temperature well above normal and offered only sporadic rain.

 “Our nation’s farmers have done all they can to increase the corn supply, planting the most corn acres our country has seen since 1937 this year. Thankfully, this additional acreage and innovative agronomic practices will make an important difference, and we remain hopeful that above average yields in some areas will further augment the crop. At the same time, we recognize that it will not fully cover yield concerns.

 “Without advanced seed technology, including biotechnology and new genetics which help corn plants use water more efficiently and better tolerate extreme heat and other drought conditions, production losses would be much greater.

 “Many of our farmer members are suffering immensely from the drought. Many are also in the same predicament as our customers because they have livestock or own ethanol plant shares. Now is the time for all of American agriculture to pull together and work together for solutions that benefit us all. NCGA offers the following recommendations to that end.

“First and foremost, we must maintain a level perspective when looking at the situation facing us today.  Looking at similar points in our past, we see that, in the long run, the market works.  While speculators aiming for personal gain and emotionally charged decisions may drive corn prices beyond justifiable levels in the short term, these factors will subside.  As it always has, the market will correct and continue to effectively allocate the corn supply for our various customers.

 “Likewise, it is crucial that we maintain this sort of calm, rational perspective when examining the impact that corn actually has on the food prices paid by average Americans.  Corn remains an incredibly small portion of the price paid for groceries and provides a relatively inexpensive, quality ingredient used to make the affordable, nutritious foods we enjoy. While the price of corn may be higher than it has been historically, the amount of corn in a box of corn flakes still only costs about 12 cents, and only 37 cents’ worth of corn is needed to produce a pound of hamburger.  USDA projects the total impact of the drought on retail food prices to be less than one percent.

 “Additionally, we ask that all parties maintain perspective when looking at how we might allow the drought to impact our nation’s biofuels policy.  NCGA stands firm in our support of the Renewable Fuel Standard. At the same time, we support the waiver process that is embodied in the current RFS, and ask that any parties who would seek RFS changes do so in this manner, rather than through legislation.

“With most of the crop still in the field and thus the most accurate corn supply estimates still outstanding, we think that it is still somewhat premature to consider a partial waiver of RFS provisions. In addition, recent analysis suggests that the current need for octane in gasoline is driving ethanol demand, rather than the RFS.  Corn going for ethanol use, about one quarter of total corn supply, is subject to the same market forces that all customers of corn are currently facing.

 “Finally, what farmers and ranchers are experiencing clearly demonstrates the pressing need for Congress to pass a farm bill this year. The crop insurance and risk management tools authorized in this legislation provide critical assistance to crop and livestock farmers when they face losses due to drought and other adverse weather conditions, crop disease or volatile markets.  The Senate and the House Ag Committee have already done their job, and we thank them for that. In light of the evolving situation, we strongly urge the Speaker of the House to get the farm bill on the House floor for an open debate and quick vote.

“As prices and emotions rise, so does the temptation to take action that might actually hurt us all in the long run. Right now, farmers, ranchers, ethanol producers and much of the country is suffering through this historic drought. Yet, we suffer together.  We have all seen our investments, be they of time, hard work or resources, wither under the unrelenting heat. With empathy and a strong spirit of cooperation, we will come through these difficulties stronger for the experience and with renewed vigor to build a brighter future for ourselves, our industry and our country.”



Amid alarming grain harvest projections, NFO reiterates need for farmer-owned reserve

One year ago, under much more favorable growing conditions and grain harvest projections, National Farmers Organization urged adoption of a farmer-owned grain reserve.

“We’ve been calling for a grain reserve since 2006, and today's conditions are exactly the reason that National Farmers advocated one then, and why we are calling for it once again,” says National Farmers Ag Policy Analyst Gene Paul.

“Living hand to mouth and not storing grain is just the reverse of what plain common sense tells us,” said Paul. “Price shocks and drought will occur. They’re a given,” said Paul. “It’s time to put common sense over ideology.” National Farmers Organization supports the Market-Driven Inventory System (MDIS) presented by National Farmers Union.

Experts predict the world must double its food production by 2050. That, combined with a history of drought recurring around the world, it was just a matter of time until the U.S. faced a drought of its own.

Oxfam’s Colin Roche predicts that the drought could lead to food shortages for millions of people worldwide. "This is not some gentle monthly wake-up call, it's the same global alarm that's been screaming at us since 2008," Roche said. Oxfam International is a confederation of 17 organizations working together to find lasting solutions to poverty and injustice around the world.

National Farmer’s Paul said the federal government could facilitate farmers isolating a corn supply of last resort, with provisions of grain release at price levels of 160 percent of production costs.

National Farmers provides group marketing, price negotiation and risk management to the nation’s farmers and ranchers.



First-half Results Encouraging for U.S. Meat Export Value

U.S. pork and beef exports concluded the first half of 2012 in solid fashion, with June pork exports 4 percent higher in value than last year on steady volume. Despite a 15 percent decline in volume, June beef exports were still slightly higher in value than a year ago. These results are based on statistics released by the USDA and compiled by the U.S. Meat Export Federation (USMEF).

June pork exports totaled 165,065 metric tons valued at $468.3 million. This pushed the first half total to 1.13 million metric tons valued at $3.17 billion, which was 5 percent higher in volume and 13 percent higher in value than the record pace of 2011. June export value equated to $54.78 per head slaughtered, bumping per-head value for the year to $57.80 – more than 10 percent higher than in the first half of 2011. For the year, about 24 percent of U.S. muscle cut production has been exported and nearly 28 percent of total production (muscle cuts plus variety meat). Last year these ratios were 22.5 percent and 27 percent, respectively.

Beef exports in June totaled 94,119 metric tons valued at $464.4 million. The results continued this year’s pattern, with export volume significantly lower than last year’s record pace but with an increase in export value. Through June, this year’s beef export volume was down 11 percent to 550,462 metric tons while export volume was up 4 percent to $2.66 billion. June export value equated to $203.90 per head of fed slaughter, with per-head value for the year reaching $208.88. This is 8.5 percent higher than in the first half of last year. For the year, exports accounted for just under 10 percent of total muscle cut production and 12.5 percent when including both muscle cuts and variety meat - lower than last year’s ratios of 10.6 percent and 13.8 percent.
 
Pork exports building on last year’s record pace
Markets driving first half export growth for U.S. pork included volume leader Mexico, which was up 13 percent in volume to 294,097 metric tons and 11 percent in value to $537.4 million. Value pacesetter Japan was up 7 percent in value ($1.01 billion) despite a 7 percent decline in volume (231,984 metric tons). June was a rather slow month for Japan, with export volume posting the lowest total (32,923 metric tons) since September 2010.

“The remainder of 2012 will be very challenging in Japan, but we continue to pursue new marketing opportunities,” said USMEF President and CEO Philip Seng. “In Mexico, we are focused on growing overall pork consumption, as this will definitely pay long-term dividends for the U.S. industry.”

Russia provided a significant boost for June’s pork results, with export volume up 75 percent from a year ago to 11,094 metric tons. Export value topped $30 million – an increase of more than 50 percent over June 2011, bolstered by strong demand for higher-value products such as boneless hams and boneless loins. Through June, this year’s pork exports to Russia were up 42 percent in volume (50,226 metric tons) and 38 percent in value ($145 million).

“U.S. pork still faces obstacles in Russia, but we are gaining traction there,” Seng said. “This is the first year in which the United States is participating in Russia’s large (400,000 metric tons) global import quota, which expands our growth potential. On Aug. 23, the duty rate on pork imported under this quota drops from 15 percent to zero. This will level the playing field for U.S. pork - especially vis-à-vis Brazil, which for many years has enjoyed a tariff rate advantage.”

Other key growth markets for U.S. pork in the first half of 2012 included: China/Hong Kong, up 28 percent in volume (221,876 metric tons) and 72 percent in value ($448.6 million); Canada, up 14 percent in volume (110,876 metric tons) and 20 percent in value ($402.8 million); and Central and South America, up 16 percent in volume (39,700 metric tons) and 17 percent in value ($101 million).
 
Beef export volume struggling, but value edges higher
Mexico remained the leading volume market for U.S. beef exports in the first half of the year but slipped to third (behind Canada and Japan) in value, totaling 103,751 metric tons valued at $446 million. These totals were down 18 percent and 6 percent, respectively, compared to the first half of 2011. June was the slowest month of the year for beef exports to Mexico, reflecting a very unfavorable exchange rate. In fact, the peso weakened to more than 14 pesos per dollar in late May and early June, its lowest level since the economic crisis of 2008-2009. In recent weeks the peso has fared only slightly better, trading mostly in the range of 13 to 13.5 per dollar.

A sluggish economy and an oversupply of domestic beef have also slowed beef exports to Korea – not only for the United States but all major beef suppliers. U.S. exports to Korea fell 24 percent in volume (65,963 metric tons) in the first half of the year and 19 percent in value ($309.2 million). Although there was no major interruption in trade, June results in Korea also reflected some impact from the April 24 BSE case.

In several other major markets, U.S. beef achieved an increase in export value despite moderately lower volumes. These included Japan, where exports were down six percent in volume (72,443 metric tons) but 14 percent higher in value ($476 million). For the second consecutive month, exports to Japan topped the $100 million mark ($105.3 million), dipping only slightly from the 2012 high reached in May. Exports to leading value market Canada were down 7 percent in volume (80,859 metric tons) in the first half but increased 12 percent in value ($519.9 million); the Middle East was down 8 percent in volume (74,030 metric tons) but 11 percent higher in value ($170 million); the ASEAN region was down 8 percent in volume (31,826 metric tons) but 16 percent higher in value ($134.6 million); and Hong Kong was down 10 percent in volume (24,073 metric tons) but 16 percent higher in value ($135.9 million).

Russia and Central and South America were destinations in which U.S. beef achieved significant growth in both volume and value in the first half of the year – especially impressive since both had set new records in 2011. Exports to Russia were up 17 percent in volume (38,210 metric tons) and 57 percent in value ($162.2 million), reflecting Russia’s growing appetite for higher-quality U.S. muscle cuts and the expanded TRQ for U.S. beef. Exceptional growth in Chile and a steady climb in exports to Peru and Guatemala pushed results in Central and South America 34 percent higher in volume (17,187 metric tons) and 82 percent higher in value ($64 million).

“While we are pleased to see beef export value on a record pace again this year, USMEF is focused on reversing this decline in volume,” Seng said. “The economic challenges are significant, and there is no single approach that applies in every market. But we are working with our contacts in the trade to educate customers about more economical beef cuts, which can help them maintain or expand their purchases of U.S. beef. We also take great care to emphasize the unique attributes of U.S. beef in an effort to build customer loyalty even in times of rising costs.”
 
Lamb exports gain some June momentum but remain below 2011
U.S. lamb exports also struggled with a tough economic environment in the first half of 2012, finishing 34 percent lower in volume (6,215 metric tons) and 19 percent lower in value ($12.5 million). June results were lower than a year ago but offered some encouraging signs as export volume (1,106 metric tons) was the highest since January and value ($2.5 million) was the second-highest of the year (slightly below March).

“USMEF recently met with lamb industry representatives to discuss marketing initiatives in markets currently open to U.S. lamb,” Seng said. “However, another key factor in reversing the recent decline in lamb exports will be gaining access to markets such as Japan, Russia, Taiwan, Korea and the European Union. These are critical destinations in which a resumption of trade could present promising opportunities for U.S. lamb, especially in the foodservice sector. We are working with our trade officials to make that happen.”



Low Water Levels Disrupt Traffic on Mississippi River

Drought conditions have reduced water levels on the Mississippi River to the extent that barges are hitting sandbars, stalling river traffic. The disruptions result in increased costs for the shipping industry and subsequently to farmers. Since the beginning of July, nine barges have run aground, some of which were caused by excess sediment deposits resulting from the flooding that occurred last year. The increased sediment exacerbates the problems caused by lower water levels this year. Barges must reduce cargo loads to cope with low water levels. Lower water levels also reduce the area of the river open to traffic. Every 1-inch loss of water decreases the carrying capacity of a barge by 17 tons of cargo, according to the American Waterways Operators.

The U.S. Army Corps of Engineers has five dredges operating around the clock on the river. The Corps of Engineers had a budget of $21 million for operations on the upper Mississippi and thus far $17 million has been obligated for shallow-water dredging. It is possible that supplemental funding could be necessary if the drought causes further reductions in the water level.



Weekly Ethanol Production for 8/3/2012

According to Energy Information Admin. data, ethanol production averaged 817,000 barrels per day (b/d) – or 34.31 million gallons daily. That is up 8,000 b/d from the week before. The 4-week average for ethanol production stood at 806,000 b/d for an annualized rate of 12.36 billion gallons.

Stocks of ethanol stood at 18.7 million barrels. Gasoline demand for the week averaged 785.4 million gallons daily.

Expressed as a percentage of daily gasoline demand, daily ethanol production was 9.24%.

On the co-products side, ethanol producers were using 12.388 million bushels of corn to produce ethanol and 91,180 metric tons of livestock feed, 81,287 metric tons of which were distillers grains.  The rest is comprised of corn gluten feed and corn gluten meal.  Additionally, ethanol producers were providing 4.26 million pounds of corn oil daily.



Feeding Trial Demonstrates Benefit of Soy-Based Fish Diet

The Hubbs Sea World Research Institute (HSWRI) in San Diego, Calif. recently completed a 10-month feeding trial with the California yellowtail that compared a soy-based diet to a feed produced with fishmeal. The United Soybean Board developed the soy-based diet through its research on alternative protein sources. The study found the yellowtail gained weight faster on the soy-based diet and that the highest performing diet included 40 percent soy protein.

HSWRI also partnered with Carolyn Ross at the School of Food Science at Washington State University to determine if a taste difference occurs when farmed fish are fed plant-based ingredients rather than traditional fish meal and oil. The research combined sensory analysis with analytical chemistry techniques to identify and describe changes in flavor and odor profiles. Thirty panelists participated in the sampling of both fish meal-fed and soy-fed fish. Based on the panelists’ feedback, the soy diet did not produce an undesirable taste in the fish but actually enhanced the flavor.



China July Soy Imports Down

China's soybean imports in July likely totaled 5.29 million metric tons, according to the Ministry of Commerce.  The ministry revised its estimate downward from 5.34 million tons based on reports from importers during the July 1-15 period, according to a statement on its website dated Thursday.  The ministry said August soybean imports will likely reach 4.37 million tons.  The state-backed China National Grain and Oils Information Center said earlier that China's soybean imports might fall to 4.5 million tons in August and below 4 million tons in September and October.



American Wind Power Reaches 50-Gigawatt Milestone

American wind power has blown through an historic milestone: 50 gigawatts of electric generating capacity, the American Wind Energy Association announced, just as Congress works to extend a federal policy the industry says is critical for the continued growth of wind power in the United States.

Denise Bode, AWEA CEO, made the announcement this week at the National Clean Energy Summit hosted by Senate Majority Leader Harry Reid (D-NV) in Las Vegas.

The 50 gigawatts (GW) online means that U.S. wind turbines now power the equivalent of nearly 13 million American homes, or as many as in Nevada, Colorado, Wisconsin, Virginia, Alabama, and Connecticut combined.

In addition, 50 gigawatts (GW) of wind power capacity represents the generating power of 44 coal-fired power plants, or 11 nuclear power plants, and avoids the emission of carbon dioxide equivalent to that produced by 14 million cars.

"This milestone for wind-energy production marks continued success for this clean, renewable and domestically produced energy source," said Sen. Chuck Grassley (R-IA), who sponsored the original Production Tax Credit that industry leaders say has helped Iowa become the state with the second most wind power in the nation. "Wind energy has exceeded expectations since I first authored the tax incentive, in 1992, and offers an ideal for expanded production and use of alternative energy sources in the future."

Meanwhile, Reid said at the summit that Congress will vote to extend the $12 billion federal tax credit for utility-scale wind energy projects. The PTC is set to expire at the end of this year.

Reid told reporters that the wind energy tax credit of 2.1 cents per kilowatt will be adopted by this Congress, though likely in a lame duck session after the November elections.

"We will get it done before the end of the year, I'm very confident," the Senate majority leader said. "We may even get this done before the election."

The chief executive of Denmark's Vestas Wind Systems, the world's largest wind turbine manufacturer, has said that the U.S. wind turbine market could see a drop of up to 80 percent next year if the PTC expires.

The Senate Finance Committee last week voted 19-5 bipartisan to extend the credit, among other tax benefits, through 2013.