Friday August 3 Ag News

NDA ISSUES UPDATED IMPORTATION ORDER FOR LIVESTOCK ENTERING NEBRASKA FROM STATES WITH CONFIRMED CASES OF VESICULAR STOMATITIS

The Nebraska Department of Agriculture today updated an importation order that was originally put in place in May.  The updated order adds Colorado to the list of states with confirmed cases of Vesicular Stomatitis (VS).  The original order was for animals from New Mexico.

“Protecting the health and safety of Nebraska’s livestock herd is of utmost importance,” said State Veterinarian Dr. Dennis Hughes.  “Producers should follow importation requirements and remain vigilant in looking for signs and symptoms of Vesicular Stomatitis in their own herds.”

According to Hughes the disease resembles Foot-and-Mouth disease.  Vesicular Stomatitis is a viral disease that is characterized by fever and the formation of vesicles (blisters) in the mouth, nostrils, hooves and teats.  When blisters break, there is usually salivation, nasal discharge and anorexia.  In three to four days, the animal will recover.  The disease primarily affects horses, cattle, swine and occasionally sheep and goats.

Producers who are considering moving livestock from another state into Nebraska need to contact the NDA State Veterinarian’s office to learn about specific import requirements.  Staff can be reached by calling (402) 471-2351.  Import regulations and orders also can be reviewed on-line at www.agr.ne.gov.  It also is advised that producers moving livestock from Nebraska into another state contact the destination state to learn its latest import requirements.



NEBRASKA FARM REAL ESTATE VALUE AND CROPLAND RENT HIGHER

Nebraska's farm real estate value, a measurement of the value of all land and buildings on farms,  rose from 2011, extending a trend that began in 1993, according to USDA’s National Agricultural Statistics Service, Nebraska Field Office.  Farm real estate value for 2012 averaged $2,590 per acre.  This is up $650 per acre or 34 percent higher than last year’s revised level.  

Cropland value increased 36 percent from last year to $4,480 per acre, with dryland acreage averaging $3,500 per acre and irrigated cropland at $6,000.  Pastureland, at $660 per acre, increased $130 from a year ago.

Cash rent paid to landlords in 2012 for cropland increased from last year.  Irrigated cropland rent averaged $225 per acre, an increase of $35.  Statewide, dryland rent averaged $131 per acre, up $16 from a year earlier.  Pasture rented for cash, which averaged $17.50 per acre, is up $1.00 from the previous year.

Iowa 
Iowa’s average cropland value increased to $7,300 per acre, up 23.7 percent from 2011, and the average pasture value  rose  to $3,000 per acre, a 13.2 percent  increase  from 2011.   Farm  real estate value  in  Iowa averaged $7,000 per acre  in 2012, up 22.8 percent  from 2011.   The average farm real estate value of farmland and buildings  increased  to $175 billion  in 2011, a 26.3 percent increase from 2010.



USDA Agricultural Land Values Highlights

The United States farm real estate value, a measurement of the value of all land and buildings on farms, averaged $2,650 per acre for 2012, up 10.9 percent from revised 2011 values. Regional changes in the average value of farm real estate ranged from a 26.7 percent increase in the Northern Plains region to a 4.1 percent decline in the Southeast region. The highest farm real estate values were in the Cornbelt region at $5,560 per acre. The Mountain region had the lowest farm real estate value at $974 per acre.

The United States cropland value increased by $450 per acre (14.5 percent) to $3,550 per acre. In the Northern Plains and Corn Belt regions, the average cropland value increased 31.1 and 18.5 percent, respectively, from the previous year. However, in the Southeast region, cropland values decreased by 3.8 percent.

The United States pasture value increased to $1,150 per acre, or 4.5 percent above 2011. The Southeast region had the largest percentage decrease in pasture value, 7.0 percent below 2011. The Northern Plains had the highest increase at 21.9 percent.

Farm Real Estate
(state, 2012 value $/acre, % change from 2011)
  Nebraska ...: 2,590,      +33.5  
  Iowa ..........: 7,000,      +22.8  
  Kansas ..... : 1,550,     +19.2  

Cropland
(state, 2012 value $/acre, % change from 2011)
  Nebraska ...:  4,480,     +35.8  
     -Irrigated .......:  6,000,      +39.5 
     -Non-irrigated :  3,500,      +32.1
  Iowa ..........:  7,300,     +23.7  
  Kansas .....:  1,750,     +25.0  
     -Irrigated ........:  2,200,      +15.8 
     -Non-irrigated .:  1,700,      +25.9

Pasture
  Nebraska ...:     660     +24.5  
  Iowa ..........:   3,000     +13.2  
  Kansas ......:    950      +17.3  

2011 Value of Farmland and Buildings
(state, value in $, % change from 2010)
  Iowa .........: 174,990,000    +26.3  
  Kansas .....:  59,800,000    +17.9  
  Nebraska ..:  88,270,000    +27.4  




Tips for Grazing Drought-Stressed Standing Corn
Bruce Anderson, UNL Extension Forage Specialist

Grazing standing corn eliminates the costs of harvesting, transporting, drying, and storing grain. Expenses for cutting stalks for hay or chopping silage also are avoided. Plus, letting cattle do the harvest eliminates yardage expenses, manure hauling, and feed processing and handling.

After a brief learning period, cattle will preferentially graze corn ears if any have developed. Drought-damaged corn may not have many ears, but if much grain has developed, the cattle first need to adapt to a higher grain diet before grazing corn begins. Otherwise, acidosis or other digestive disorders could develop.

Cross-fencing and strip-grazing is needed to minimize trampling waste. Give cattle access to no more than a two-day supply of fresh corn at a time; a one-day supply is even better, especially for younger, growing cattle. Dry cows might do fine if moved just twice each week.

Electric fence is used most commonly for cross fences, but animals must be trained to respect these fences before entering the corn field. Driving over a strip of corn with a tractor, pickup, or four-wheeler before placing the fence in the strip makes it easier to set up the fence and visually alerts the cattle that the fence is nearby. Constructing multiple strips ahead of time provides a catch area if the original fence fails to keep animals in the desired smaller area.

Allotting per Cow Feeding Area
Determining how much area to give the cattle, especially in the first strip, can be challenging, but it need not cause serious mental anguish because adjustments are readily made in the size or time spent grazing the next strip. As a starting guide, each acre of standing corn that is about 6 feet tall and tasseled should provide enough grazing for about 100 cows for one day. In other words, provide 435 square feet of standing corn for each cow for each day of grazing in the first strip. Observe animal behavior and amount of grazable corn available each day, as well as in-field variation, to determine whether to increase or decrease the area allotted with each new grazing strip. Do not bother with back fences to simplify animal travel back to water.

Dry cows may become fat and over-conditioned grazing standing corn, especially if grain is present. Even without grain, barren stalks can be surprisingly high in nutrient concentration because protein and energy that normally would have been transferred to the grain has instead been stored in the stalk and leaves. Diets containing crude protein exceeding 8% and TDN of 55% are usually expected.
The lower portion of corn stalks may be high in nitrates. If feeding, test corn stalks for nitrate and manage accordingly.

Standing corn can be limit-fed to stretch the supply and/or to minimize over-conditioning by reducing the area allotted to the cows and forcing them to eat more of the lower quality stalks. However, nitrate concentration may be high in the lower portion of the corn stalks. Before forcing animals to consume this part of the plant, test the stalks for nitrates and then manage accordingly. In addition, limit-feeding can cause animals to remain hungry even when they have consumed sufficient protein and energy to meet their needs. Behavior problems can occur, including increased pressure on fences. More strands of wire, higher electric voltage, or providing free choice access to poor quality hay or straw may be needed to avoid problems.

Feeding Windrowed Residue
Instead of grazing standing corn, corn can be windrowed first and then cattle can be allowed to graze the windrows. This may simplify construction of fences and determination of area to be allotted. Trampling waste also can be reduced. However, if cattle do not utilize all of the corn in the windrows, the remaining residue might cause problems for planting crops next spring. Also, residue remaining after grazing will be concentrated in the windrows, which may not meet residue requirements for conservation purposes, compared to grazing standing corn.

See more recommendations for grazing cattle in standing corn in CropWatch at http://cropwatch.unl.edu/web/cropwatch/archive?articleID=4959244. 



NEBRASKA NRCS PROVIDES ASSISTANCE TO FARMERS IN DROUGHT AREAS

Craig Derickson, State Conservationist of USDA’s Natural Resources Conservation Service announced today that NRCS is available to provide assistance to farmers and ranchers through the Drought Relief Special Initiative.  Producers may apply for assistance August 6 - 15, 2012.

Derickson said, “The prolonged lack of rainfall combined with excessive heat has resulted in a dramatic reduction in available forage for livestock producers and increased the risk of soil erosion on land without sufficient ground cover.  The purpose of this initiative is to offer assistance to farmers and ranchers impacted by the drought.”

The Drought Relief Special Initiative assistance will be available for land located in any part of a county that has been designated a D3 (Extreme) or D4 (Exceptional) drought zone, according to the U.S. Drought Monitor map dated July 24, 2012, or later.  Drought Monitor maps are available on line http://droughtmonitor.unl.edu/DM_state.htm?NE,HP, and are updated every Thursday morning.

“Through this special initiative, farmers and ranchers may apply for assistance to install conservation practices that can help reduce the negative impacts of the current drought, and will help improve the sustainability of their operation in the long run,” Derickson said.

Conservation practices available to producers through the Drought Relief Special Initiative include:  cover crops, critical area planting, fencing, deferred grazing, forage and biomass planting, pipeline, well and pumping stations for livestock water, range planting and more.  Interested participants are encouraged to visit their local NRCS field office to learn more about the assistance available.

“When implemented, these conservation practices will provide additional forage, improve existing forage, and help increase ground cover,” Derickson said.

In addition to the Drought Relief Special Initiative, the U.S. Department of Agriculture recently announced new flexibility in managing the Environmental Quality Incentives Program (EQIP) and the Wetlands Reserve Program (WRP).  Agriculture Secretary Tom Vilsack announced earlier this week that farmers and ranchers can modify current EQIP contracts to re-schedule planned conservation practices until drought conditions improve.

Vilsack’s announcement also included expediting Compatible Use Authorization requests for haying or grazing WRP easements in drought-affected areas where such haying or grazing is consistent with the conservation of wildlife habitat and wetlands.

Producers who are not currently participating in EQIP or WRP are still encouraged to visit with NRCS if they need to make critical changes to their operation, or are planning to make changes to their crop rotation, tillage practices or make use of cover crops to improve soil health.  Additionally, producers wanting to install any engineered conservation practices like terraces or dams should visit with NRCS since drought conditions impact the construction of these practices.

According to NRCS guidelines, a drought falls under the category of natural disaster, which gives the Agency some additional options to work with producers.

Derickson said, “Farmers and ranchers that have conservation plans or are participating in other Farm Bill conservation programs will have some flexibility in meeting their obligations.  Contracts will be reviewed by NRCS and modified as needed.  If producers have questions about how this drought may affect their conservation plan or their operation in general, come in and visit with NRCS.”

More information about drought assistance and specific Farm Bill programs can be found at www.ne.nrcs.usda.gov.  Locate your nearest NRCS field office at http://offices.sc.egov.usda.gov/locator/app.



Johanns: Inaction on Disaster Relief Wrong

U.S. Senator Mike Johanns (R-Neb.) today criticized Senate Democrat leadership for opting to begin the scheduled August state work period without passing disaster relief legislation for farmers and ranchers across the country impacted by severe drought and wildfires.

“I would prefer for Congress to pass a five-year farm bill before leaving town, but that doesn’t mean we should hold vital drought relief hostage,” Johanns said. “The only responsible course of action at this point would be to pass critical disaster relief for American farmers and ranchers just like the Republican-controlled House did. Instead, Democrats are choosing to snatch defeat from the jaws of victory.

“Ranchers have to feed their livestock today, not six weeks from now, and to leave town without getting this done is wrong.”

The House of Representatives earlier today passed fully paid for disaster relief legislation for ranchers. This drought relief package reauthorizes several disaster programs included in the 2008 farm bill that expired on September 30, 2011. This was done by the Democratic majority to make the ’08 bill appear cheaper.  These programs include: Livestock Forage Disaster Program; Emergency Assistance for Livestock, Honeybees, and Farm-Raised Fish Program; Livestock Indemnity Program, and Tree Assistance Program.

Senate Majority Leader Harry Reid (D-Nev.), largely because of objections from within his party, chose not to bring this legislation to a vote in the Senate, which gaveled out of legislative session until Monday, September 10.



Nebraska Ethanol Producers Adapt to Drought and Record Corn Prices

As drought conditions continue to impact 2012 crop forecasts and corn prices reach record levels, Nebraska ethanol producers are responding to a changing market.  Like other end users of corn, ethanol producers have significantly reduced consumption in recent weeks. Latest estimates show the state’s ethanol plants operating at approximately 70% of capacity, well below near 100% levels in 2011.  Nebraska ethanol plants produced more than two billion gallons of ethanol from corn last year.

“This slowing of production is a natural response to drought related market forces and will not preclude the industry from achieving Renewable Fuel Standard benchmarks,” according to Steve Hanson, Chairman of the Nebraska Ethanol Board.  “Higher than normal ethanol stocks and a large number of existing RIN credits for U.S. refiners combine to make RFS standards achievable well into 2013.”

Hanson also noted waiving the RFS would have little effect on the corn availability, citing a recent study by the Center for Agriculture and Rural Development. That analysis concludes a total waiver of RFS would reduce corn prices by less than 5% and force only a 5% reduction in ethanol production.  

“The RFS was created to reduce U.S. petroleum imports and it has done so very effectively”, Hanson said.  “In 2011, 14 billion gallons of domestically produced ethanol replaced 13% of oil imports and reduced the nation’s trade deficit by $50 billion.  For the first time in decades, less than half of U.S. petroleum demand was imported. In addition, Nebraska motorists saved more than $50 million in fuel costs due to the lower price for ethanol fuels.”

Hanson also noted that the reliable supply of high protein distillers feed produced at Nebraska ethanol plants is an important component of livestock feed supplies in Nebraska.  Nutritionists have noted that wet distiller’s feeds are an excellent supplement to poor quality grass and other roughage used to feed cattle during drought conditions. “Feed efficiency is essential to livestock producers and the use of distillers feed is a practical way to help accomplish that objective,” Hanson said.

Hanson also cited the total impacts of the ethanol sector in creating quality jobs and a more diverse tax base in some of Nebraska’s smallest communities.

A study conducted by Dr. Ken Lemke, chief economist at NPPD, says seventy-seven hundred Nebraskans are employed directly and indirectly as a result of the ethanol industry. State and local governments receive more than $50 million dollars in tax revenues and $250 million is added to household incomes in the state.



Crop Disease, Insect Identification and Record Keeping Available in New ISU app

Checking crops for insects and disease is becoming less tedious and cumbersome, and more accurate with the release of iPad apps. Apps focusing on two crops – corn and soybean – have been released by ScoutPro, a provider of agricultural apps founded by Michael Koenig in 2011, while studying at Iowa State University. The first two apps for the iPad hit the App Store in March 2012; this month an Iowa version of ScoutPro Soy was made available.

ScoutPro appThe ScoutPro apps retail at $29.99 each, a cost that reflects high-end features: detailed identification tools, automatic record keeping and GPS mapping, and field-specific reports. The identification program is based on Iowa State University field guides and funded in part by Iowa Soybean Association.

“The scouting apps will not only help farmers identify common problems in their fields, they will help farmers keep track of these problems and that will help with future management decisions,” said Daren Mueller, plant pathologist with Iowa State University Extension and Outreach. “Apps like this are extremely valuable, especially as they are used more and more.”

ScoutPro apps can be used by smartphones, iPad or other tablet devices. Users will be able to identify weeds, insects and diseases in fields, while creating crop scouting reports they can use when making management decisions.

“As a board, we are always looking for new ways to bring information to our producers,” says ISA President Dean Coleman. “As more farmers carry smartphones, it makes sense we offer this type of tool that, not only has pest ID, but also has the ability to record its location for future reference.”

As ScoutPro expands into new regions, pests outside of Iowa will be added to their general app. Iowa State will continue to monitor information contained on the Iowa-specific app. While other crop identification programs are being developed, Koenig said none of them include all the functions that ScoutPro offers: mapping, identification and record-keeping. "Our goal is to set the standard for how scouting can be done using apps," Koenig said.

To reach that goal, Koenig continues to add ScoutPro services. A paid Web service, currently available to consultants, offers additional record-keeping tools to help with decision-making. Plans are to have a Web service for farmers in place for the 2013 growing season.



Greenhorn Grazing Series Continues in Southwest Iowa

The 2012 Greenhorn Grazing series offered in the Greenfield area has three segments remaining. Organizer Joe Sellers said that while these individual classes will build on the sessions held earlier this summer, the topics also will be of interest to new participants.

Sessions are set for Aug. 23, Sept. 13 and Nov. 15 starting at 10 a.m. each date. All will begin at the Adair County Extension office, 154 Public Square, Suite C, in Greenfield, and conclude with a pasture tour at an area farm. Fee is $20 per person for each session including lunch.

Sellers, who is an Iowa State University Extension and Outreach beef program specialist with the Iowa Beef Center, said the August session features presentations on fencing and watering technologies, fence laws, and forage quality including harvesting drought corn silage and green chop. A pasture walk at the Doug Steele farm near Anita will include display and demonstration of electric fencing and watering options.

“The September session will provide information on a wide variety of areas,” Sellers said. “Topics include pasture leasing, planning for stockpiled grazing, mineral supplementation, winter feed planning, and a weed and brush control demo at the Everett Shepherd Farm.”

The final session on Nov. 15 will cover stockpiled grazing, cornstalk grazing and winter feeding strategies including drought corn silage.

The Greenhorn Grazing Series is sponsored by ISU Extension and Outreach, Iowa Beef Center, Natural Resources Conservation Service, Leopold Center for Sustainable Agriculture, and the Southern Iowa Forage and Livestock Committee. For more information about these southwest Iowa Greenhorn Grazing sessions, contact Sellers by phone at the Adair County office at 641-743-8412 or by email at sellers@iastate.edu, or NRCS Grasslands Specialist Rick Sprague by phone at 712-542-8765 or by email at richard.sprague@ia.usda.gov.



Governor’s Charity Steer Show celebrates 30th year at Iowa State Fair

The 2012 Governor's Charity Steer Show will mark its 30th year of raising funds to help families who use Ronald McDonald Houses while their children are being treated for serious conditions. It’s anticipated that the show and sale will help this three-decade program break the $2 million mark.

This year, the show ring competition takes place Saturday, Aug. 11, at 4:00 p.m., in the Pioneer Livestock Pavilion at the Iowa State Fair when celebrities will lead 25 steers around the ring, vying for the championship designation, as well as appealing to the crowd for a showmanship award. Immediately following the competition the steers will be sold at auction with proceeds going to the Ronald McDonald Houses of Iowa. Both the show ring event and the auction are open to the general public.

Since the Iowa Beef Industry Council and the Iowa Cattlemen’s Association began the Governor’s Charity Steer Show in 1983, the effort has raised more than $1.9 million for the Des Moines, Iowa City and Sioux City Ronald McDonald Houses. The houses provide a "home away from home" for families of seriously‑ill children being treated in area hospitals.

Many of the key participants of the first show are involved in this 30th anniversary event. Governor Terry Branstad will again host the show. Steve Radakovich of Earlham, who judged the first Governor’s Charity Steer Show, will take his place in the ring as the official steer show judge.  Two key organizers of the first event, Bruce Berven and Mark Fischer, have been selected to serve as the event’s Showmanship Judges. Berven retired two years ago as ICA’s executive director, and Fisher now works at the Iowa Economic Development Authority in the agricultural trade promotions program. Emcees for the event include Bob Quinn of WHO Radio and Andy Petersen of WMT Radio. The auctioneer is Phil Schooley from Bloomfield Livestock Market and helping him catch bids in the ring are Tom Rooney of The Midwest Marketer, Mike Sorensen and Ross Butler of Livestock Plus and Jason Lekin from Tama Livestock Auction.

To date, here are the steer owners and the celebrity showing their steer.

Steer Owners  -  Shown by      
Zach Mitchell, Charles City    Governor Terry Branstad      
Brad Staley, Charter Oak    Rachel Burton, Miss Rodeo Iowa 2012      
Justin Utt, Bloomfield    Gary McConnell, President, Iowa State Fair Board      
Collin Cory, Altoona    Derron Heldt, Director of Racing, Prairie Meadows Race Track & Casino      
Hayley Spoelstra, New Sharon    Doug Cooper, WHO Radio      
Kylie Van Ryswyk, Baxter    Steven Leath, ISU President      
Dalton Birchmier, Maxwell    Rob Denson, DMACC President      
Trenton Cheers, Indianola    Jennie Baranczyk, Drake Women’s Basketball Coach      
Walker McDermott, Atlantic    Mike & Betsy Pearson      
Hunter Wilkening, State Center    Aaron & Jamie Burdorf family      
Ainsley Lovrien, Clarksville          
Kylee Zoske, Eldora    Fred Greiner, President of Fareway Stores      
Levi Larson, Jefferson    Savanah Farrell, Miss Leon Rodeo 2012       
Adam Staudt, Rockford    Bill Northey, Iowa Secretary of Agriculture      
Jarrod Kromray, Albia    Billy Huber, Professional PRCA Calf Roper Champion      
Brooklynn Moore, Zwingle    Representative Steve Olson      
Justin Donohue, Parnell    Larry Zimpleman, The Principal Financial Group      
Chance Deppe, Maquoketa    Cathann Kress, ISU Extension & Outreach      
Paige Baetsle, Ollie          
Claire Solsma, Sanborn    Paris Schneph, 2011 Iowa State Fair Queen      
Bryton Voss, Dexter    Representative Steve King      
Elizabeth Good, Ogden    Jeff Johnson, ISU Alumni Association      
Isaiah Noelck, Hampton    Ellie Flickinger, Franklin County Beef Princess      
Dalton Smith, Charter Oak    Kevin Ross, President of Iowa Corn Growers Association   

Any individual or business interested in participating in this year's event or in future shows, can contact Doug Bear at IBIC, 515‑296-2305.



KCBT Has New Settlement Method for HRW

The board of directors of the Kansas City Board of Trade in a regularly scheduled board meeting approved plans to implement a new settlement methodology for HRW wheat futures that will incorporate both floor-based and electronic trading in a volume-weighted settlement price calculation. Pending CFTC approval, the change will be effective on August 20.

The settlement price of the lead contract month shall be determined by the weighted average method of the trades in the closing period executed both on the electronic trading system and in the trading pit, rounded to the nearest price tick.

Settlements for all other contract months will be based on spread price relationships, considering spread trades executed both on the electronic trading system and in the trading pit during the closing period, rounded to the nearest price tick. The lead contract settlement price serves as the initial spread relationship basing point for adjacent contract months, whose settlement can then be used in chronology to determine deferred month settlements.



Informa Cuts Corn, Bean Forecasts

Private analytical firm Informa Economics on Friday cut its outlook for the U.S. corn harvest due to the historic drought, according to traders.

Informa lowered its estimate for the harvest to 10.338 billion bushels from its July estimate of 12.49 billion bushels, traders said. The firm cut its yield estimates for the crop to 120.7 bushels an acre from its previous estimate of 142.5 bushels an acre, they said.

Private analysts have cut their forecasts for the corn and soybean harvests due to expectations that the worst U.S. drought in decades will substantially reduce crop yields. Drought worries pushed corn and soybean futures to record levels in recent weeks.

Informa's corn-yield estimate was lower than forecasts issued by other private firms this week. On Wednesday, brokerage firm INTL FCStone predicted U.S. farmers will harvest 11.043 billion bushels of corn, with an average yield of 124.3 bushels an acre.

Grain users are uncertain about the size of the upcoming corn harvest after hot, dry weather stressed the crop in June and July. Farmers were counted on to harvest big crops in 2012 to replenish tight inventories.

Informa lowered its estimate for the soybean harvest to 2.791 billion bushels from 3.161 billion bushels last month, traders said. Informa pegged the average yield at 37.2 bushels an acre, compared with its July estimate of 42 bushels an acre.

The nation's soybean crop is going through its critical reproductive stage over the next few weeks, giving the crop time to offset some of the drought's impact if rainfall is adequate. During the key growing phase, soy plants set their pods and fill them out with beans.

By contrast, the U.S. Department of Agriculture in July estimated the U.S. corn crop at 12.970 billion bushels, using a yield of 146 bushels an acre, and soybean output at 3.050 billion, using a yield of 40.5 bushels an acre. The USDA is scheduled to release updated figures next Friday.



Houses Passes FUELS Act to Protect Farmers from Costly Oil Storage Mandate

The House this week passed the Farmers Undertake Environmental Land Stewardship (FUELS) Act, H.R. 3158, which directs the EPA Administrator to change the Spill Prevention, Control, and Countermeasure (SPCC) rule to consider a producer’s risk when it comes to maintaining costly oil storage facilities. The SPCC rule requires oil storage facilities to be built to reduce the possibility of spills. These mandated on-farm improvements also requires inspection and certification by a licensed professional engineer. The FUELS Act would exempt farms with an aggregate storage capacity of at least 10,000 gallons and no history of spill from the SPCC requirements. It excludes all containers on separate parcels that have a capacity less than 1,320 gallons from the aggregate storage capacity of a farm.

A study by the University of Arkansas says the FUELS Act could save farmers and ranchers across the country up to $3.36 billion. The legislation, sponsored by Rep. Rick Crawford (R-AR), passed the House by a voice vote Aug. 1, but it is still unclear at this time if there will be similar legislation in the Senate.



Trade Groups Form Biofuels Council

Eight biofuel industry trade groups on Friday announced the formation of the Biofuels Producers Coordinating Council to jointly advocate for national policy for increased energy security through domestic biofuel production.

The new council will include Michael McAdams from the Advanced Biofuels Association, Brooke Coleman from the Advanced Ethanol Council, Mary Rosenthal from the Algal Biomass Organization, Brian Jennings from the American Coalition for Ethanol, Brent Erickson from the Biotechnology Industry Organization, Tom Buis from Growth Energy, Anne Steckel from the National Biodiesel Board, and Bob Dinneen from the Renewable Fuels Association.

The Renewable Fuel Standard sets a path for energy security, reduced reliance on foreign oil and a cleaner environment by setting annual standards to increase production and use of biofuels in the United States.

The RFS established mandated volumes of biofuel to be blending into petroleum-based fuels, with volumes ramping up each year to 36 billion gallons by 2022.

The members of the council jointly pledged support for maintaining this policy and continuing to achieve its goals. Since adoption of the RFS, U.S. production of biofuels has tripled and reliance on foreign oil has been cut by nearly one-third.



Watch Out for U.S. Drought Impact on Wheat Feeding
Casey Chumrau, USW Market Analyst

U.S. Wheat Associates (USW) President Alan Tracy is cautioning U.S. wheat farmers and the world's wheat buyers to keep a close watch on how the deteriorating world corn supply situation changes feed wheat demand as 2012/13 progresses. Speaking at the USW Summer Board Meeting on July 6, Tracy said U.S. corn production is likely to be much lower than what the U.S. Department of Agriculture (USDA) predicted at that time and that feed demand around the world will continue to siphon more wheat from milling supplies throughout the year.

Since his remarks, the relentless drought in the United States prompted the International Grains Council to lower its world corn production estimate from 917 million metric tons (MMT) to 864 MMT and USDA to reduce its world estimate from 950 MMT to 905 MMT, with expectations USDA will further trim its estimate on August 10.

Corn supplies were already tight entering the 2012/13 marketing year because world consumption has increased 12 percent in the last five years while world production increased just 10 percent. Nearly 60 percent of total world corn consumption is dedicated to feed use each year, but tighter supplies mean less corn is available to meet growing feed demand, forcing feeders to look for alternatives. As was the case in 2011/12, feeders will likely rely more heavily on wheat this year than in prior years.

As of its July 11 World Supply and Demand Estimates (WASDE) report, USDA predicted wheat used for feed in 2012/13 will decline 16.8 MMT from last year’s record 147 MMT. However, due to the tight corn situation and the availability of wheat stocks, USW expects eventual world wheat feed use this year to meet or even exceed last year’s record level. Therefore, world wheat stocks will need to absorb the extra 16.8 MMT in consumption unaccounted for in the last USDA estimate. USDA will release its next WASDE report on Aug. 10, and USW expects it will increase global feed use for wheat.

In terms of export competition, feeding an extra 16.8 MMT is roughly equal to removing a major exporter from the market. In 2010/11, the Russian export ban withdrew a comparable wheat supply from the market and sent prices sharply higher, leaving the other major exporters to fulfill the world’s wheat needs. USW does not expect a similar “surprise” reaction this year to an increase in wheat feeding because prices are already high historically. However, USW does expect prices will continue to be high and volatile because there will be intense competition between the major crops for planted acres this fall and next spring. Buyers need to stay vigilant in order to take advantage of price dips as the volatility in the market allows.

Fortunately, the drought did not severely cut the U.S. wheat supply and, once again, millers and feeders around the world will be able to rely on both the quality and availability of U.S. wheat. Although U.S. commercial wheat sales have lagged some in the first two months of marketing year 2012/13, in part, we believe, because of uncertainty over price movements, USW expects U.S. exports could reach 35.0 MMT, a recent high set in 2010/11.



FARM BILL PASSAGE REMAINS CRITICAL TO DAIRY INDUSTRY
John Wilson, Senior Vice President, Dairy Farmers of America

“Today, the U.S. House of Representatives passed an extension of disaster programs intended to provide relief to producers experiencing extreme drought conditions. We appreciate this effort.

“Unfortunately the drought is just one of many challenges dairy farmers in the United States face today. Outdated federal dairy policy and increasing feed costs also need to be addressed.

“On behalf of the 15,000 dairy farmer owners of Dairy Farmers of America, we respectfully ask Congress to take swift action to pass a Farm Bill that contains dairy policy provisions outlined in the Dairy Security Act. The bill pending before the House of Representatives represents significant compromise and fiscal discipline, and addresses critical needs of the dairy industry.

“To provide additional relief to dairy producers, we also encourage the Environmental Protection Agency to grant a waiver of the applicable volume of the Renewable Fuel Standard (RFS) for 2012 and 2013. While we believe RFS has helped grow domestic development and use of renewable energy, the proposed renewable fuel volume schedule is too aggressive in today’s economic environment and is diverting too much of our domestically produced corn out of the feed supply. The drought has exacerbated the situation. For all dairy farmers, feed is expensive; for many, it is or may soon become unavailable. This pressure on the corn supply will increase feed prices and put further stress on a struggling livestock community.

“Many dairy farm families need tangible change to continue their operations. We implore Congress and the administration to act swiftly and bring about much-needed relief for dairy farmers who are again feeling the impacts of a highly volatile market.”



Congress Goes on August Recess Without Farm Bill, Or a Plan
(NAWG newsletter)

Members of Congress are returning to their districts and constituents Friday for August recess without a clear path for passing a five-year farm bill before the current law expires on Sept. 30.

The recess is scheduled to run five weeks, encompassing both major party conventions and allowing Members to spend significant time in their districts prior to upcoming elections.

The Senate completed its farm bill work on June 21, and the House Agriculture Committee finalized its version of a 2012 farm and food policy proposal in the early hours of July 12.

House Leadership has declined to announce a timeline for taking up that bill, which is controversial even within the Republican caucus.

An attempt to push off the issue with a one-year extension of existing farm law was rebuffed this week in the House, leaving the full chamber having passed no legislation that could be formally conferenced with the Senate-passed bill.

It is widely expected farm bill negotiations will continue throughout the August recess, and NAWG staff and grower-leaders will remain engaged with other commodity groups and Hill leaders throughout the summer work period.

NAWG also strongly encourages wheat farmers to meet with their House Members and Senators during the recess and urge them to press for completion of a five-year farm bill in September.  The reasons for a long-term law abound:
-    A new farm bill will last for five years, providing a degree of certainty for farm operators, who make crop rotation, land and capital decisions on multi-year timeframes.
-    A new farm bill would include disaster assistance programs for livestock and specialty crop producers, which are currently unauthorized and unfunded.
-    A new farm bill would incorporate significant reforms to farm support programs, which were called for by many in the farming community and the general public, and which are essential to continuing support for agriculture as a secure base for the nation’s economy.
-    A new farm bill would provide at least $23 billion in spending cuts, reducing the overall federal deficit.
-    A new farm bill in September would solidify policy before any cuts are made as part of a year-end tax extender package or through sequestration early in 2013.
-    A long-term bill is more efficient for USDA to implement, which saves tax dollars and provides better service to program users.

Additional information about the farm bill process up until now is at www.wheatworld.org/farmbill or from the Committees at http://agriculture.house.gov/ or http://www.agriculture.senate.gov/.

Leaders Agrees to Six-Month CR; Tax Extenders Still Up for Debate
Congressional leaders announced a deal this week to approve a six-month continuing resolution soon after Members return from the August recess.

The deal was evidently made with Obama Administration support and would continue current spending levels of $1.047 trillion annually from the start of the new fiscal year, Oct. 1, through early spring.

The agreement allows the country to avoid the uncertainty and drama of a possible government shutdown but also pushes off tough spending decisions to the new Congress and possibly to a new administration.

It also does not address pending expirations of Bush-era tax reductions or coming sequestration cuts set up by last year’s failed debt-deficit super committee process, which together are seen as a “fiscal cliff” in an already bleak economy.

Congressional action related to both of these issues has started, though it’s widely acknowledged that the bulk of any work done will be completed during a lame duck session after the November elections.

On Wednesday, the House approved 256 to 171 a bill that would extend current tax rates, including for the estate tax, which is of particular interest for farmers.

Thursday, the House approved a bill to, among other things, consolidate tax brackets, reduce the corporate income tax rate and repeal the alternative minimum tax (AMT).

Also Thursday, the Senate Finance Committee approved a sweeping package of tax cut extenders by a 19 to five vote. Those measures will likely come to the floor in September.

Members in both chambers are increasingly calling for information about the effects of a planned $110 billion in automatic, across the board sequestration cuts set for Jan. 2, 2013.

The House and Senate have passed separate measures asking for reports from the Obama Administration on the scheduled cuts, and the Congressional Budget Office is reportedly beginning to talk with Administration departments about their plans for reducing spending. 



NSP’s Position Regarding RFS Waiver Requests

National Sorghum Producers Chairman Terry Swanson, a sorghum producer from Walsh, Colo., released the following statement in response to the call for the EPA to waive provisions of the Renewable Fuels Standard in light of the drought.

“NSP strongly supports the Renewable Fuels Standard and opposes legislation to repeal the RFS. We also oppose a waiver as we believe it would be premature to overreact now without knowing the full scope of the problem,” Swanson said.

“Many areas of the Sorghum Belt are dealing with their second consecutive year of drought, and many of our sorghum farmers are also livestock producers.

“Without altering the RFS, obligated parties can still meet this year’s RFS requirements with the large ethanol stocks and excess RINs currently on the market, even with a large reduction in ethanol production. The system is set up where the market can react to an adjustment like we are witnessing this year without any kneejerk policy change.”



Growth Energy Working with Pump Equipment Manufacturers

With increasing consumer demand for higher blends of ethanol following EPA's approval of E15 for commercial sale, several fuel dispensing equipment manufacturers have introduced new products for retailers to modify existing fuel dispensers to accommodate higher ethanol blends.

"The announcement of these new products is a tremendous step forward in bringing higher ethanol blends to consumers who want to both pay less and support the American economy – and family farmer – when fueling up," said Tom Buis, CEO of Growth Energy, a trade group of ethanol manufacturers.

Gilbarco Veeder-Root has released a retrofit kit for flex pumps certified by the Underwriters Laboratory (UL) and will allow for ethanol blends of up to 25 percent ethanol in several of the pumps used by retailers and fuel dispensers.

Also, Davis Airtech recently introduced a new line of Flex Fuel meters, certified by the National Conference of Weights and Measures, that are capable of fuel blends from E15 all the way to E85. They will allow pump modification on several brands of fuel dispensers.

Commitment to increasing ethanol blends, such as the introduction of these kits, reflects the overwhelming acceptance of higher blends of ethanol as a high octane, high performance alternative to foreign oil, Growth Energy said in a release. "Americans are increasingly eager to use renewable biofuels like ethanol to displace our dependence on oil, which burns dirtier, reducing the quality of our air and lines the pockets of OPEC," the trade group said.

Growth Energy says that with the recent EPA approval, 72 percent of the vehicles on the road today can use E15, and there are more than nine million Flex Fuel vehicles that can use blends up to E85. The development of the products, the trade group says, exemplifies a growing demand of retailers to offer higher blends of ethanol to their customers.

"These products will modify existing pumps at a fraction of the cost of replacing them, bridging the infrastructure challenges of preventing higher blends of ethanol in the marketplace," Buis said. "Not only are these products helping displace foreign oil and supporting rural America, they are also promoting a cleaner burning American fuel and an industry that fosters economic growth and energy independence."



USDA Directory Records More Than 7,800 Farmers Markets

Agriculture Deputy Secretary Kathleen Merrigan today announced a 9.6 percent increase in National Farmers Market Directory listings as the kickoff to National Farmer's Market Week. The U.S. Department of Agriculture's directory, a database published online at farmersmarkets.usda.gov, identifies 7,864 farmers markets operating throughout the United States. The information collected in the directory is self-reported data provided voluntarily by farmers market managers through an annual outreach effort. Last year, USDA's directory listed 7,175 markets.

"Farmers markets are a critical ingredient to our nation's food system," said Merrigan. "These outlets provide benefits not only to the farmers looking for important income opportunities, but also to the communities looking for fresh, healthy foods. The directory is an online tool that helps connect farmers and consumers, communities and businesses around the country."

The top states, in terms of the number of markets reported in the directory, include California (827 markets), New York (647 markets), Massachusetts (313 markets), Michigan (311 markets), Wisconsin (298 markets), Illinois (292 markets), Ohio (264 markets), Pennsylvania (254 markets), Virginia and Iowa (tied with 227 markets) and North Carolina (202 markets). Together they account for nearly half (49 percent) of the farmers markets listed in the 2012 directory.

Geographic regions like the mid-Atlantic (Delaware, the District of Columbia, Maryland, New Jersey, Pennsylvania, Virginia and West Virginia), the Northeast (Connecticut, Maine, Massachusetts, New Hampshire, New York, Rhode Island and Vermont), and the Southeast (Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, South Carolina and Tennessee) saw large increases in their listings, reporting, 15.8, 14.4 and 13.1 percent more markets, respectively.

USDA has taken several steps to help small and mid-sized farmers as part of the department's commitment to support local and regional food systems, and increase consumer access to fresh, healthy food in communities across the country. For example,
-    USDA's Food and Nutrition Service (FNS), is outfitting more farmers markets with the ability to accept SNAP (Supplemental Nutrition Assistance Program, formerly food stamps), announcing $4 million dollars in available funding to equip farmers' markets with wireless point-of-sale equipment. Currently, over 2,500 farmers markets are using Electronic Benefit Transfer technology.
-   USDA recently released the 2.0 version of its KYF Compass, a digital guide to USDA resources related to local and regional food systems. The updated version includes new data sets to help consumers locate local food resources, such as farmers markets, and plot them on an interactive map.

Many markets will host fun activities to celebrate National Farmers Market Week including pie contests, festivals, cooking demonstrations, events for kids, raffle drawings and giveaways. USDA officials will visit markets around the country between Aug. 5 and Aug. 11, to honor growers and commemorate National Farmers Market Week.

The USDA National Farmers Market Directory is available at farmersmarkets.usda.gov. Users can search for markets based on location, available products, and types of payment accepted, including participation in federal nutrition programs. Directory features allow users to locate markets based on proximity to zip code, mapping directions and links to active farmers market websites. Customized datasets can also be created and exported for use by researchers and software application designers.



Furthering the Biobased Economy
Agriculture Secretary Tom Vilsack

As drought continues across America, President Obama and I continue doing all we can to help farmers and ranchers. Last week, at the President’s direction, I convened a meeting of the White House Rural Council to ensure we’re doing all we can – and we’ll meet again to discuss drought in the coming days.

We’ll also continue to call on Congress to pass a Food, Farm and Jobs Bill as soon as possible, to give USDA more tools to help and to give more certainty to producers in this difficult time.

Meanwhile, at USDA we continue our work to help grow the economy and create jobs. This includes our support for innovative producers and rural businesses who are already working hard to boost the emerging bio-economy.

From household products made of homegrown crops, to remarkable advanced biofuels that are powering America’s ships and aircraft, the bio-based economy is strengthening our nation while bringing more jobs and economic security to rural America.

Today, more than 3,000 companies are producing more than 25,000 biobased products made from renewable sources grown here at home, and supporting 100,000 American jobs. These companies are developing a wide variety of products – from cleaners and paints to construction materials – for use at home, at work, and by industry.

USDA has created the “USDA Certified Biobased Product” label to help consumers identify these products – and today more than 700 of them are available in stores.

President Obama also directed the Federal government to increase procurement of bio-based products – and USDA has increased the number of bio-based products for Federal procurement to more than 9,000 in 77 categories.

We’ve also continued working to expand the program to even more categories, to support the innovative companies, farmers and communities who are on the cutting edge of the biobased economy.

Meanwhile, under the Obama Administration, USDA has made historic investments into the research and development of advanced renewable fuels – another key part of the growing biobased economy.

We’ve coordinated research centers in every region of the country to research the science needed for profitable, advanced biofuels feedstocks.

Through the Biorefinery Assistance Program, we've provided nearly 570 million dollars in loans to 7 advanced biorefineries across the country. These projects are using feedstocks like crop residue, woody biomass, municipal waste, and more to bring next-generation renewable energy to every part of our nation.

Under the Biomass Crop Assistance Program, we’ve incentivized farmers to grow advanced feedstocks on nearly 60,000 acres, helping companies across the country spur production of new biofuels from non-food, non-feed sources.

We’re also working with the military to develop the next generation of aviation and marine biofuels from advanced feedstocks, helping reduce our military’s dependence on foreign oil. In fact, the Navy’s “Great Green Fleet” recently ran training exercises in Hawaii, powered entirely by advanced biofuels.

President Obama and I know that these advances are just the beginning. With support from USDA, the innovation of producers and rural businesses will continue to set us apart from the world in the decades to come. I’m confident that together we will create more homegrown jobs, and fuel our rural economy to new heights.