Monday August 20 Ag News

DIRECTORS ELECTED TO THE NEBRASKA SOYBEAN BOARD

­­­­­­­­­­The Nebraska Soybean Board held elections in July for Director Seats in District 3 and 6.   Nebraska soybean farmers in those districts voted with the following results:

District 3 - Counties consisting of Butler, Colfax, Dodge, Douglas, Sarpy, Saunders and Washington
           Richard Bartek – Ithaca, NE – Saunders County - 422 – Elected
          Jeff Shaner – Fort Calhoun, NE – Washington County - 144

District 6 – Counties consisting of Fillmore, Jefferson, Gage, Saline, Seward and Thayer
          Greg Peters – DeWitt, NE – Gage County - 385 – Elected
          Marc Hroch – Wymore, NE – Gage County - 191

The re-elected directors will serve a three-year term.  Richard Bartek, a soybean farmer from Ithaca, will begin his second term; and Greg Peters, a soybean farmer from DeWitt, and will begin his fourth term.

Ed Lammers, a soybean farmer from Hartington, ran unopposed; therefore, he retains his seat as the District One Director and will begin his second term.

“We have a good direction and a great team of directors that bring a wealth of experience to make things happen in the future of soybeans,” said Victor Bohuslavsky, Nebraska Soybean Board, Executive Director. “We’re excited to help direct action that will increase soy’s value for all Nebraska soybean farmers.”



LIVESTOCK EMERGENCY DISEASE RESPONSE SYSTEM MEETING IN KEARNEY THIS WEEK

Around 100 veterinarians and emergency responders from across Nebraska will be teaming up with the veterinarian staff from the Nebraska Department of Agriculture (NDA) and the USDA Animal Plant Health Inspection Service Veterinary Service (APHIS/VS) to attend the annual Livestock Emergency Disease Response System (LEDRS) meeting in Kearney later this week.

The two-day meeting will provide the participants with updates on homeland security issues, foreign animal diseases, and industry continuity of business planning.  Researchers from the University of Nebraska – Lincoln and Colorado State University will also present the results of their research related to animal emergency response activities.

The LEDRS Veterinary Corps also will participate in a practical exercise.  The exercise will test their understanding of the incident command system, as well as provide hands-on experience in cleaning and disinfection protocols and developing a site biosecurity plan.

“The annual training is an important way for our LEDRS veterinarians to review and practice scenarios that they may face,” said State Veterinarian Dr. Dennis Hughes.  “If Nebraska ever experienced a foreign animal disease outbreak, our LEDRS veterinarians would assist NDA in responding to the emergency.”

The LEDRS program began in 2002 in response to biosecurity and agroterrorism concerns.  LEDRS is the statewide system NDA officials will use to coordinate and execute a rapid response to the outbreak (or potential outbreak) of a livestock disease.

“The LEDRS Veterinary Corps is committed to providing an immediate response, should an agricultural livestock emergency ever arise,” said NDA Director Greg Ibach.  “We are thankful for their dedication to Nebraska’s agricultural industry.”



Take Advantage of the Dry Year to Assess Irrigation System Delivery
Bill Kranz, Extension Irrigation Specialist, Haskell Agricultural Laboratory, Northeast REC

A bad year can have its silver linings. This year the yield-limiting impacts of irrigation problems will be clearly visible in some fields. The silver lining? You can take this opportunity to assess your system, identify any problems, and fix them while they’re still fresh in your mind.

Most Nebraska farmers would say that the 2012 growing season has been the hottest and driest they have ever experienced. In a year like this, with irrigation systems being stressed statewide, you can’t help but marvel at the impact of irrigation on the state’s crop production.

It also takes a year like this to more fully see how some water distribution systems are growing older or underperforming. Little problems that affect water application uniformity can reduce yield. In a “normal” year these likely wouldn't be visible. This year, however, the impact is visible and the yield reduction is likely to be more evident.

All you has to do is fly over center pivot-irrigated fields to get a birds-eye view of where water application uniformity could be improved. Such problems can be caused by a number of things:
-    Sprinklers can blow out of their hole, creating a geyser on the pivot pipeline.
-    Sprinklers can wear out and stop rotating or rotate out of control.
-    Pumping water level declines so that the system flow rate and pressure no longer match the original design.
-    Boots, gaskets and other seals begin to leak.
-    Sprinkler spacing is too wide, leaving gaps of unwatered crop.

Each of these sprinkler issues can result in extra water being applied is some areas and insufficient water being applied in others. In a year like 2012 neither outcome is desirable. In one study, this inconsistency amounted to a yield decrease of 20-40 bu/ac for the affected field areas.

To determine the yield impact of such problems in your fields, try this field survey method:
-    Identify the position of the problem sprinkler or gasket from the pivot point.
-    Go to the area of the field where the center pivot is perpendicular to the crop row direction. Go to the point that would be the same distance from the pivot point identified in Step 1.
-    Hand harvest and weigh the grain produced in 20 feet of each row for four to six rows on either side of the problem. The graph (Figure 2) came from a field in western Nebraska and shows how sprinkler spacing can impact grain yield in a dry year. Similar response should be expected for the other issues listed.

Most of the problems I listed here are easy and relatively inexpensive to fix. However, depending on the location of the problem along the pivot pipeline, the economic impact of a single sprinkler or gasket problem can be significant in the amount of yield reduction it causes.

Assessing your irrigation water delivery system now — when the system is working its hardest — can help you see exactly where the problem is on the pipeline as well as the effect it’s having on your crop.

Also remember that problems like those you identify in 2012 likely have been having a subtle impact on grain or forage yield for a number of years. This means that even though the yield impact is more significant in 2012, a small yield loss likely occurs even when rainfall is more normal.

Don’t let a poorly maintained system eat into your bottom line. Capitalize on the long irrigation season to assess the water delivery from your pivot, record the problem, and, if possible now, fix the problems and test the solutions. You also may want to do as we did and take yield samples from affected and unaffected areas. It can be an eye-opener.



Making Silage Out of Dry Corn
Bruce Anderson, UNL Extension Forage Specialist

Most dryland corn fields currently are too dry for making the best silage. Dry silage is difficult to pack well enough to force out all the oxygen and it often spoils, lowering its energy and protein digestibility. It also can heat up, leading to spontaneous combustion fires.

Adding water to increase moisture content is next to impossible. It takes about 7 gallons of water for each ton of silage to raise moisture content just one point. Even if you have enough water, the chopped corn can’t absorb it fast enough to do any good.

In this situation a better solution is to blend a wetter feed, like fresh alfalfa, forage sorghum, or green soybeans with dry corn or some corn that’s still quite green. Getting the right combination may require two choppers and can be tricky but done right, it can produce excellent silage.

If you do chop dry corn, remember that your main goal is to minimize oxygen in the silage. Adjust knives to cut finer and do some extra packing even if the chopped corn seems to spring right back up. Save your wettest forage for the top layer. This helps add extra packing weight and gets better sealing. If you do have water handy, apply it to this top layer for even more packing weight. And, of course, always cover dry silage with plastic to prevent outside air from seeping in or even better, pack and store it in silage bags.

If corn is too dry for silage, another option would be to dry it down and cut it for hay or graze it like winter stalks.
Ensure Complete Fermentation Before Feeding

Making silage from drought-stressed crops often is a good way to safen these feeds. Usually the fermentation process will reduce its nitrate content.

However, during the first few days of early fermentation, the chopped forage begins to heat, converting those nitrates first into nitrites. And, nitrites are as much as 10 times more poisonous to cattle than nitrates. Later, these nitrites are neutralized and converted into other compounds that are less toxic.

If you feed your freshly chopped forage before it has completed its full fermentation cycle, you risk giving your cattle a highly poisonous forage filled with nitrites. To avoid this, wait three or four weeks after chopping before feeding fresh silage. Then, test your silage for nitrates before feeding.



Cornhusker Economics Examines the Many Impacts of this Year's Drought

In several recent issues of Cornhusker Economics, faculty from the UNL Department of Agricultural Economics have addressed farm and ranch management in times of crisis, including economic impacts from this year's drought and resources to aid with management.

The 2012 Drought: Some Economic Implications
Bruce Johnson, Professor, Department of Agricultural Economics
There is an old saying about Mother Nature in baseball vernacular: Nature always bats last and bats a thousand.
Unfortunately, we are witnessing Mother Nature doing just that this year, and she happens to be on the opposing team. Early projections place Nebraska's aggregate net farm income at $3.5 billion, about 10% below the most recent five-year average and more than 35% below that of 2011, a record year for income. How will the state's producers fare at a farm or ranch level.  MORE... http://agecon.unl.edu/c/document_library/get_file?uuid=d319a957-03f5-4670-8c9b-6281e5cbedbb&groupId=2369805&.pdf. 

Agricultural Disaster Assistance
Brad Lubben, Extension Policy Specialist
The 2008 farm bill substantially changed how Congress managed ag disaster assistance.  To address the uncertainty of ad hoc legislation and the challenge of emergency funding, the farm bill included permanent authority and funding for a portfolio of ag disaster assistance programs. The certainty of this legislation only lasted through 2011, when authorization and funding expired. Disaster assistance for this year is likely and will be before Congress when it returns in September.  That said, there are a number of other programs that can provide assistance to producers suffering from drought, fire, flood or other calamity.  Learn more about what's available to help producers mitigate losses and recover from a natural disaster. MORE... http://agecon.unl.edu/c/document_library/get_file?uuid=e0ffec28-4576-4098-a16a-7f47e9e3ea5d&groupId=2369805&.pdf. 

Making Good Management Choices During a Time of Crisis
Matthew Stockton, Agricultural Economist, West Central Research and Extension Center, North Platte
An agricultural business usually faces two types of crisis, those that come on quickly without warning and require instant action and those that can be anticipated.  Learn how to be better prepared for either type by taking these five steps. MORE... http://agecon.unl.edu/c/document_library/get_file?uuid=dac97d66-6e24-4134-b36f-37a7f4ebff9c&groupId=2369805&.pdf. 



Working Together Through the Drought
Gov. Dave Heineman

Every Nebraskan is impacted in some way by this summer’s drought. From the brown lawns and watering restrictions to the drought-related wildfires that have burned tens of thousands of acres of land, the hot and dry weather has impacted all citizens and areas of our State.

Some of the most immediate and profound impacts are on our farmers and ranchers. The extreme drought conditions have shriveled crops and forages, dried up livestock ponds, increased irrigation pumping expenses, and contributed to increased feed costs for livestock producers.

Even with all these negative impacts, Nebraska farmers and ranchers are still in better shape than producers in other states because of our irrigation resources. Agriculture research helps us understand how alternative feeds can be used in livestock diets. If farmers and ranchers work together, we can take advantage of crop residues from crops like corn and soybeans to stretch limited forages even further during the drought.

Our farmers and livestock owners can benefit from crop residue usage. An example is the research conducted by University of Nebraska-Lincoln professor Terry Klopfenstein that has shown grazing corn residue can result in an important bump in yields the following year. In particular, this research shows that irrigated and no-till fields benefit from this type of grazing.

There are other important points to consider in the current drought. Grazing corn residue, instead of conducting fall tillage, conserves soil moisture and reduces erosion. Grazing cattle works the residue into the soil without exposing tilled soil to the air.

Along with increased yields and reduced erosion, the cash rents provide an additional incentive to open fields to grazing cattle, and not tilling will save fuel costs. Another option is to bale cornstalks and stover. This will provide farmers with some additional income from their fields, while increasing the amount of forage available to our livestock producers.  Ranchers across the state are utilizing a variety of different forages to sustain and maintain their cow herds through the drought.

There are a variety of resources available to help farmers and ranchers who are looking for, or trying to figure out how to use, different forages. General drought information is available at www.Nebraska.gov.

The Department of Agriculture has an agriculture-specific central resource site at www.droughtcentral.nebraska.gov. Included on this site is a link to the Department of Agriculture’s Hay and Forage Hotline. The hotline is a way for buyers and sellers of available hay to connect. Nebraskans with cornstalks for grazing, or any type of forage, can place their listings through the hotline free of charge by calling 800-422-6692. Those looking for forage can access the database online at the link above, or can call the Department of Agriculture for more information.

The University of Nebraska-Lincoln also has done a great job of pulling together practical information for farmers and ranchers dealing with the drought. These can be found at www.droughtresources.unl.edu, or by visiting the Department of Agriculture’s Drought Central page.

With thin forage supplies and the prospect of below-average grain yields, I encourage farmers and ranchers to work together to make the most of our resources. By working together, neighbor helping neighbor, we can lessen the collective impact of this trying growing season.



Iowa Cattle on Feed Report  8-17-12
Cattle and calves on feed for slaughter market in Iowa for all feedlots totaled 1155,000 on August 1, 2012 according to the USDA, National Agricultural Statistics Service,  Iowa Field Office.   The  inventory  is down 6 percent from  July 1, 2012 but up 3 percent from August 1, 2011.  Feedlots with a capacity greater than 1,000 head had 600,000 head on feed, down 3 percent from last month but up 9 percent from last year.  Feedlots with a capacity less than 1,000 head had 555,000 head on feed, down 10 percent from last month and down 3 percent from last year.

Placements during July totaled 95,000 head, a decrease of 21 percent from last month and down 12 percent from last year. Feedlots  with  a  capacity  greater  than  1,000  head  placed  52,000  head,  down  15 percent  from  last  month  and  down 5 percent from last year.  Feedlots with a capacity less than 1,000 head placed 43,000 head. This is down 28 percent from last month and down 19 percent from last year.

Marketings  for July were 170,000 head, down 7 percent  from  last month and down 11 percent  from  last year. Feedlots with a capacity greater than 1,000 head marketed 70,000 head, down 9 percent from last month and down 25 percent from last year.   Feedlots with a capacity less than 1,000 head marketed 100,000 head, down 5 percent from last month but up 3 percent from last year. Other disappearance totaled 5,000 head.



Iowa July Milk Production Up 1%

Milk production  in  Iowa during  July 2012  totaled 346 million pounds, up 1 percent  from  July 2011, according  to  the USDA, National Agricultural Statistics Service  – Milk Production  report.   The average number of milk  cows on hand during the month, at 203,000 head, was up 3,000 head from July 2011.  Production per cow averaged 1,705 pounds, down 15 pounds from July 2011.

United States Milk Production
Milk  production  in  the  23 major  States  during  July  totaled  15.5  billion  pounds,  up  0.8  percent  from  July  2011.  June revised production at 15.5 billion pounds, was up 1.1 percent from June 2011. The June revision represented an increase of 2 million pounds or less than 0.1 percent from  last month's preliminary production estimate.  Production per cow in the 23 major States averaged 1,826 pounds for July, 6 pounds above July 2011.   The number of milk cows on farms in the 23 major States was 8.50 million head, 41,000 head more than July 2011, but
7,000 head less than June 2012.



CWT Assists with 127,868 Pounds of Cheese and Butter Export Sales

Cooperatives Working Together (CWT) has accepted two requests for export assistance from Dairy Farmers of America to sell 127,868 pounds (58 metric tons) of Cheddar and Gouda cheese to customers in Asia and the South Pacific. The product will be delivered August through September 2012.

In 2012, CWT has assisted member cooperatives in making export sales of Cheddar, Monterey Jack and Gouda cheese totaling 73.8 million pounds, and butter and anhydrous milk fat totaling 56.6 million pounds, to 33 countries on four continents. On a butterfat basis, the milk equivalent of these exports is 1.916 billion pounds, or the same as the annual milk production of 91,200 cows.

Assisting CWT members through the Export Assistance program positively impacts producer milk prices in the short-term by reducing inventories that overhang the market and depress cheese and butter prices. In the long-term, CWT’s Export Assistance program helps member cooperatives gain and maintain market share, thus expanding the demand for U.S. dairy products and the farm milk that produces them.

CWT will pay export bonuses to the bidders only when delivery of the product is verified by the submission of the required documentation.



Dairy Situation and Outlook
Bob Cropp, Professor Emeritus, University of Wisconsin Extension

The wide spread drought has put some uncertainty in the level of milk production and milk prices for the remainder on this year and for 2013. Feed prices and feed availability will be a major factor in what happens to cow numbers and the level of milk per cow the rest of this year and 2013. USDA continues to revise downward its forecast for the harvest of corn and soybeans and this year's hay harvest will also be lower. December corn will likely be around $8 per bushel, November soybeans over $16.00 and soybean meal as high as $480 per ton by December. As of August 1st USDA reports the hay harvest down 16% from last year. For some key dairy states like Wisconsin and Minnesota hay harvest was down 18.7% and 28.7% respectively.

Dairy markets have responded in anticipation of a tighter supply and demand situation. On the CME butter is $1.7925 per pound compared to the July average of $1.58. Cheddar barrels are $1.8350 per pound compared to the July average of $1.68, and cheddar blocks are $1.87 per pound compared to the July average of $1.69. Both nonfat dry milk and dry whey prices have shown strength with West nonfat now trading in the $1.25 to $1.45 per pound range and dry whey in the $0.54 to $0.56 range. As a result, the August Class price will be near $17.65 compared to $16.68 in July and the Class IV price $15.80 compared to $14.45 in July. Milk prices will only go higher for the remainder of the year. The Class III price could move above $19 for September and above $20 for October to December. The Class IV price could move above $18 by September and $19 for October to December. But, with substantially higher feed costs margins (returns over feed costs) will still be tight especially for those producers in need of purchasing grain and forages.

A slowdown in dairy product production, positive dairy exports and tighter dairy stocks support high milk prices. Total cheese production for the month of June was up just 0.9% from a year ago with cheddar production actually down 1.8%. June butter production was also 3.2% lower than a year ago. Dairy exports have been positive with some slowdown in June. Volumes of nonfat dry milk, cheese, butterfat and dry whey were lower in June than a very strong performance in May. Yet compared to a year ago, June exports of nonfat dry milk/skim milk powder were still 3% higher, total whey proteins 19% higher led by a 61% increase in whey protein concentrate exports, and total cheese exports while down 13% from May was still up 17%. Lactose exports were 3% lower. Butter exports were about half the volume of May and down 39% from a year ago. With sharply higher dairy product prices and being above world prices exports for the reminder of the year are likely to slow and place less upward pressure on dairy product prices and milk prices. June Butter stocks which declined 7.2% from May were still 27.5% higher than a year ago but just 3.2% higher than the 5-year average for this date. While June 30th American cheese stocks were slightly higher than a year ago, up 1.7%, total cheese stocks were 0.2% lower. Some dairy product buyers concerned about tighter supplies and higher prices coming may purchase butter and cheese earlier to build inventories which would add support to prices. Schools will begin to open which increases the use of milk for fluid milk use. However, fluid sales continue to lag a year ago, down 2.2% for the first half of the year.

So whether Class III moves above $20 this year will depend heavily on milk production. USDA's report for milk production for the month of July shows a continued slowdown in milk production which began in June. Milk production for the U.S. for July was estimated to be up 0.7% from a year ago compared to an increase of 0.9% for June. But, with the very hot July weather in many states even lower milk production was anticipated. But of the 23 reporting states only 8 states had lower milk per cow than a year ago and only 6 states had less total milk production than a year ago. Some of the reported increases in milk production appear to conflict with reports by dairy producers that their milk production had dropped off substantially for some days in July. Yet USDA's estimates of milk production for states like Wisconsin was up 4.4%, Minnesota +1.1%, Michigan 4.1% , New York +1.9%, and Florida 3.3%. But, production was down 1.0% for California all due to less milk per cow and up just 0.5% in Idaho due to 0.5% fewer cows and just 1.0% more milk per cow.

In anticipation of tighter feed supplies and higher feed prices some producers started to increase the selling off of milk cows. For example, for the third and fourth week of July dairy cow slaughter was 22% and 8.3% higher than for the same week a year ago. However, USDA's report shows just 3 of the 23 reporting states with fewer cows in July than June and only 8 states with fewer cows than a year ago. July cow numbers were just 0.3% higher than a year ago.

But, as fall approaches and producers have a better inventory of their feed situation cow numbers are likely to decline further and drop below year ago levels.

Looking ahead milk prices for at least the first half of 2013 could stay as high if not higher than milk prices for the last quarter of this year. Some are forecasting that the combination of fewer milk cows and small increases in milk per cow will keep milk production at a level to support $20 or even higher Class III prices for most of 2013. But, current Class III futures begin the year at $19.80 and drops below $19 by May. However, this could quickly change as we move ahead and more information comes available on what is going on with cow numbers and milk production.



Gas Prices Hit Late-Summer Record

(AP) -- You may be paying more than ever for a late-summer drive.  U.S. drivers are paying an average of $3.72 per gallon on Monday. That's the highest price ever on this date, according to auto club AAA, a shade above the $3.717 average on Aug. 20, 2008. A year ago, the average was $3.578.

More daily highs are likely over the next few weeks. The national average could increase to $3.75 per gallon by Labor Day, said Tom Kloza, chief oil analyst at Oil Price Information Service. By comparison, gas prices stayed below $3.70 in late August and early September in both 2008 and 2011. Kloza and other analysts expect prices to start dropping after Labor Day, barring a hurricane or other unforeseen event.

Retail gasoline prices have risen nearly 12 percent since July 1 because of higher oil prices, and problems with refineries and pipelines that created temporary supply shortages in some regions. An increase in the price of ethanol, which is blended into gasoline, also contributed to the rise in pump prices.

The pace of the increases has slowed considerably, however. Gas rose 19 cents in the two weeks ended Wednesday. It's up just 1 penny in the five days since. Gas costs about 26 cents more than a month ago and 14 cents more than a year ago, according to AAA, OPIS and Wright Express.



Argentina Beef Exports at 10-year Low

Argentinean beef exports during June fell 38 percent from year ago levels at 8,048 tonnes swt.  The decline in June exports contributed to the 26 percent fall in shipments during the first six months of the year, to 59,469 tonnes swt - the lowest volumes for the January to June period in the past 10 years.  The reduction in shipments from January to June was driven by a significant fall to Russia (5,533 tonnes swt, back 48 percent) and Venezuela (1,696 tonnes swt, down 45 percent).  Chile was the only country to register an increase in beef volumes from Argentina, up 63 percent, to 12,698 tonnes swt. The United States Department of Agriculture has forecast Argentinean beef exports to reach 280,000 swt tonnes in 2012.



Lindsay’s First Pivot Still Going Strong

The first and oldest running Zimmatic center pivot, manufactured by Lindsay in 1969, is still going strong and has a proud new owner.

Charlie Meis, retired Vice President of Engineering for Lindsay Corporation, acquired “Pivot Number One” in July of 2011 and began refurbishing the system in February. It has been fully operational and irrigating corn since early May. The 10-tower, 1,290-foot machine covers about 120 acres and has irrigated every growing season for the last 43 years.

Meis was hired by Arthur Zimmerer, who helped develop the first Zimmatic pivots, in 1971 after the 290th pivot had been completed.  During his 37 years at Lindsay, Meis had a hand in designing and manufacturing more than 100,000 pivots during his tenure.

Pivot Number One was originally owned by Everett Nathan and his son, Jim, on their farm near Newman Grove, Neb., before Meis took ownership of it last year.

“I have a lot of pride in the product and the company, and I decided I’d be willing to keep it running as long as I was around,” Meis said.

Pivot Number One now operates on Meis’s farm south of Tilden, Neb. He has close ties to the land, having grown up on the quarter section of land where the pivot is located.

Although Pivot Number One was tipped over by a tornado during July 2011, Meis, with the help of two tenants, only had to put in about 40 hours of work on the machine. Minor structural repairs were done and new electrical controls were added for reliability.

“Numerous neighbors and tenants have come to look at it and they’re surprised at the condition it’s in for being 43-years-old,” Meis said.

Pivot number one was designed and built by Arthur and Bernard Zimmerer, sons of Lindsay Corporation founder Paul Zimmerer, in the summer of 1969 and named the “Zimmatic.”

“More than any other manufacturer, this original pivot is the closest to what has become today’s production units,” Meis said.

Today, more than 100,000 Zimmatic automated systems are irrigating millions of acres of cropland worldwide.