Thursday August 2 Ag News

Nebraska Counties Designated as Secretarial Disaster Due to Drought Conditions

Farm Service Agency (FSA) State Executive Director, Dan Steinkruger, announced that an additional 47 counties have been designated as primary natural disaster areas due to the ongoing drought affecting Nebraska.  Those counties are:
Antelope, Arthur, Banner, Blaine, Box Butte, Brown, Buffalo,
Cedar, Chase, Cherry, Cheyenne, Dawes, Dawson, Deuel,
Dixon, Franklin, Garden, Garfield, Gosper, Grant, Hall,
Harlan, Holt, Hooker, Kearney, Keith, Keya Paha, Kimball,
Knox, Lincoln, Logan, Loup, McPherson, Madison, Morrill,
Perkins, Phelps, Pierce, Platte, Rock, Scotts Bluff, Sheridan,
Sioux, Stanton, Thomas, Wayne, Wheeler

This brings the total number of Nebraska counties with a primary designation to 61.  In addition, the following 23 contiguous counties also become eligible for disaster programs:
Adams, Boone, Boyd, Butler, Clay, Colfax, Cuming,
Custer, Dakota, Dundy, Frontier, Furnas, Greeley, Hamilton,
Hayes, Howard, Merrick, Nance, Polk, Sherman, Thurston,
Valley, Webster

A current Nebraska map listing the approved counties is available on the Nebraska FSA website at www.fsa.usda.gov/ne.

Based on Secretarial Designations in Iowa and Missouri, there are five (5) additional counties that are contiguous and eligible for disaster programs.  They are:
Burt, Nemaha, Otoe, Richardson, Washington

In response to the expanding ongoing drought conditions affecting crop and livestock producers across Nebraska, USDA has implemented various actions and programs.  Specifically, certain counties have been allowed to emergency hay and graze CRP acres and Emergency (EM) Loans are authorized for eligible producers.  Steinkruger stated, “As conditions continue to deteriorate, producers are encouraged to contact their local FSA Service Center for detailed information about available programs and updated Secretarial disaster designations.” 

USDA has expanded emergency haying and grazing provisions to allow an additional 200,000 CRP acres of Grass Waterway, Wetland Restoration (Floodplain and Non-Floodplain) and Farmable Wetland Pilot (Wetland and Buffer) practices.  In addition haying is allowed on Rare and Declining Habitat (Prairie Restoration) practices.  Haying is limited to 50 percent of the acres and grazing is limited to 75 percent of the acres (or reduced stocking rate).  There is a 10 percent payment reduction for acres hayed or grazed.




Drought Webinar to Help Answer Questions for Farmers, Ranchers

Farmers and ranchers looking for information on emergency programs and financial advice on issues related to the drought are encouraged to participate in Nebraska Farm Bureau’s drought webinar to be held Monday, Aug. 6 at 1 p.m. CDT.

“We’ve received a lot of calls about drought assistance and how to manage financial issues related to the drought,” Nebraska Farm Bureau President Steve Nelson said.  “The webinar will give those interested the chance to get more information on the help that is available and what they can do to try and manage some of the financial impacts.”

The webinar will include presentations from Nebraska Farm Business Inc. Farm Financial Consultant Anthony Barrett and Nebraska Farm Service Agency Executive Director Dan Steinkrueger. Barrett will share insights on what farmers and ranchers can do to mitigate financial impacts of the drought from a tax perspective. Steinkrueger will provide background on emergency disaster programs administered by the Farm Service Agency, Nelson said.

“The drought has been difficult on many of Nebraska’s farm and ranch families. We hope this will provide a service to those in need. The webinar is open to everyone, including non-Farm Bureau members.  All you need to participate is a computer and an internet connection,” Nelson said. “Space is limited to the first 100 participants, so register early.”

Registration for the drought webinar is available through Nebraska Farm Bureau’s website at www.nefb.org



New App Helps Farmers Scout for Western Bean Cutworms in Corn

Western bean cutworms are a major pest of corn crops across Nebraska and the north central Corn Belt. A new Western Bean Cutworm Speed Scout app will make scouting for the yield-reducing pest faster and easier, said Wayne Ohnesorg, UNL Extension educator in Madison County.

Typically, scouting for western bean cutworms starts now, but due to hot and dry conditions this season, scouting is nearly over across the state. However, it's still a good idea to download the app and start practicing for next year, Ohnesorg said.

Ohnesorg, along with UNL entomologists Gary Hein, Tom Hunt, Robert Wright and UNL graduate student Silvana Paula-Moraes of Brazil, collaborated with University of Minnesota entomologists William Hutchison and Eric Burkness on the app. It was produced by Educational Media at UNL. The free app is available in the iTunes store.

Similar to the Aphid Speed Scout app, the Western Bean Cutworm app allows users to speed scout corn fields to help them determine whether WBC populations have reached the action threshold for treatments. An action threshold is a best guess as far as what damaging levels are and where farmers will cover their cost of treatment in terms of yield, Ohnesorg said.

The app has visuals that show what WBCs look like. 

In addition, since the application is based on a spreadsheet, people may download it to other smart phones, computers, etc., as well as iPads and iPhones, Ohnesorg said.

The app also allows the user to store scouting history, which allows the user to review the information without Internet access. The app can also send a reminder for when scouting is needed again.

To scout WBC in corn, typically 100 plants are sampled. However, with this new speed scout method, only about 54 plants on average need to be sampled.

Ohnesorg also has plans for an app for first and second generation European corn borer, but is awaiting a funder for that project.

Crop scouts and others may learn more about the application during regularly scheduled extension workshops.



Sorghum Checkoff Announces Leadership Sorghum Class I

The Sorghum Checkoff is pleased to announce the first class of Leadership Sorghum, a new program that seeks to develop the next generation of leaders for the sorghum industry. Fifteen sorghum farmers from eight different states have been chosen for Class I.

“The first class of this new leadership program is made up of a diverse group of sorghum farmers representing a wide variety of sorghum producing environments from Texas to South Dakota to North Carolina,” said Sorghum Checkoff Chairman, Bill Kubecka, a sorghum farmer from Palacios, Texas. “Leadership is vital to the success of any industry, and I am confident these individuals will gain the necessary resources through this program to help lead our industry in the future.”

The following are Leadership Sorghum Class I members by state (name, city):

Nebraska – Mike Baker, Trenton
South Dakota – Adam Schindler, Reliance
Kansas – Stephen Bigge, Stockton; Pat Damman, Clifton; Tanner Ehmke, Healy; Martin Kerschen, Garden Plain; Josh Levin, Kensington; Matt Splitter, Lyons; Shayne Suppes, Dighton
Louisiana – Luke Sayes, Deville
New Mexico – Seth Martin, Clovis
North Carolina – Johnnie Tyndall, Deep Run
Oklahoma – Jordan Shearer, Laverne
Texas – Paul Morris, Hubbard; Joey Rieder, Sinton

Leadership Sorghum Class I will begin the 15-month program in the Texas Panhandle with sessions focusing on the sorghum seed industry and research. Throughout the program, participants will be exposed to various aspects of the sorghum industry from basic research to international marketing. Through both hands-on and classroom style education, participants will gain an understanding of how sorghum moves through the value chain, how checkoffs and interest organizations interact on behalf of the industry and what the future holds for the crop. The program will also provide professional development training and networking opportunities.  For more information about Leadership Sorghum, visit www.SorghumCheckoff.com/leadership.



RFD-TV Attempts Record Tractor Parade In Nebraska

RFD-TV will attempt to break the Guinness Book of World Records as the largest classic tractor parade at the Nebraska State Fair! Tractors must be 30 years or older. Join in and be part of history-in the-making by registering your Classic Tractor below, or take on the view in the grand stands at Fonner Park.

The event will take place at Fonner Park, Grand Island, NE on Saturday, August 25 at 1 PM CST. Spectators can sit in the grandstand and watch the tractors parade with Max Armstrong introducing each tractor on-site and on-air. Be a part of breaking the record! To register your tractor fill out the form below, or click here to download a PDF version of the form to fill out by hand an mail in.

Guinness World Records has verified that Classic Garden Tractors, 30 years or older will qualify for the record attempt!

Check In:  Friday, August 24 : 6 AM - 7 PM Saturday, August 25 : 6 AM - 9 AM.  Registration deadline has been extended to August 20th.

All tractors MUST be in place for the parade by 9 AM Saturday, August 25. Participants may depart from the display any time after the parade.  Click here for more information... http://rfdtv.com/nebraskastatefair/index.php/tractor-parade. 



Heineman Announces Nebraska’s First China Trade Office

Gov. Dave Heineman today signed an agreement to open Nebraska’s first trade office in China. The Nebraska Center – Shanghai, will be a vital element to the continuing development of Nebraska-China relations.

“Today we established our second overseas trade office in cooperation with the Shanghai Small to Medium Enterprises Center for International Cooperation,” said Gov. Heineman. “This office will help Nebraska foster and further Nebraska-China relations in a variety of key areas including trade, economic development and education. We look forward to continuing this relationship as we continue to grow our presence in China and build even more mutually-beneficial relationships.”

The agreement was made with the Shanghai Small to Medium Enterprises (SME) Center for International Cooperation. The SME Center is a large, Chinese quasi-governmental organization located in Shanghai with over 300,000 members involved with international trade and investment. The SME Center has been an economic development partner in China since signing a memorandum of understanding during Nebraska’s first Reverse Trade Mission in 2008. Since that time, SME has introduced many Shanghai area companies to Nebraska to look at trade and investment opportunities.

The relationship between the State of Nebraska and the SME Center is already providing results. Since signing a memorandum of understanding that took effect during the first Reverse Trade Mission to Nebraska in 2008, Mr. Robert Cai, Director of the SME Center, has introduced many companies to Nebraska to look at trade and investment opportunities.

Mr. Cai brought officials from Qinqiang to the first Nebraska Reverse Trade Mission in 2008, and again to the second Nebraska Reverse Trade Mission in 2011. Under the leadership of Ms. Jingjing Lu, this agribusiness company chose to incorporate an American subsidiary corporation in Nebraska, citing Nebraska’s business and family friendly climate as reasons for choosing Nebraska.

Ms. Lu’s company is a subsidiary of New Hope, which is China’s largest privately owned agricultural conglomerate and parent corporation to the publicly listed Sichuan New Hope Agribusiness Company.

Citing successes like Ms. Lu’s company, Qinqiang, Gov. Heineman stated, “With a permanent trade office in China, we look forward to showing more companies that Nebraska is open for business.”

Nebraska and China have benefited greatly from increased global commerce and bilateral trade.  Over the last four years, Nebraska had 29 international investments from 12 countries. These investments totaled more than $4.17 billion, creating more than 1,400 jobs in Nebraska. China has been the second most active investor over the past three years with six new investments in Nebraska.

Noting the importance to Nebraska’s economy from both Nebraska and foreign investors, this will be the second overseas trade office Gov. Heineman has established. In 2006, the Governor opened the Nebraska Center - Tokyo, which has been a key partner to the Department of Economic Development in recruiting Japanese companies and helping Nebraska companies do business in Japan.

Gov. Heineman is in China on the third leg of a trade mission that has also traveled to Beijing, and Xi’an.



Iowa Corn Checkoff Referendum Results Certified

The Iowa Department of Agriculture and Land Stewardship Wednesday certified the results from the referendum held July 10th to increase the corn checkoff rate by one-fourth of a cent per bushel of corn marketed.  The certified results show the referendum passed decisively with nearly 74 percent of producers in favor of the increase. A simple majority was needed to pass the referendum.

The new rate of one cent per bushel marketed will go into effect on September 1, 2012. The last increase in the checkoff was in 2008 when it was raised to three-quarter of a cent per bushel marketed.

The corn checkoff is collected on corn that enters commercial channels, but not on grain used on-farm. Producers are able to request a refund of their checkoff contribution and that was not affected by the vote.

In accordance with Iowa Code, the Iowa Department of Agriculture and Land Stewardship conducted the vote and certified the results. All costs incurred by the Department will be reimbursed by the Corn Promotion Board.



Pork Treasure Hunt in Japan

The more you find, the more you can win. That’s the incentive of a new marketing promotion for U.S. pork in Japan the U.S. Meat Export Federation (USMEF) is conducting with more than 1,800 retailers through its American Branded Pork Campaign.

More than 400 domestic pork brands dot the complex and highly competitive retail landscape in Japan where U.S. pork has typically been viewed more as a commodity product despite being the No. 1 imported pork. USMEF’s American Branded Pork Campaign is geared to change that perception and encourage Japanese consumers to discover and purchase one or more of the U.S. pork brands in stores and restaurants with the hope of winning free prizes of U.S. pork.

Funding for the American Branded Pork Campaign is being provided through the Soybean Checkoff, Pork Checkoff and Kentucky Corn Growers Association and Promotion Council.

“We want to increase consumers’ awareness of U.S. branded pork, which will lead to increased sales at the retail level.” said Takemichi Yamashoji, senior marketing director for USMEF-Japan.

Retailers are buying into the concept. As the promotion kicks off, more than 1,800 store and restaurant outlets have signed on including Ito Yokado and Seiyu-Walmart. To generate additional awareness, USMEF is promoting the campaign through online ads on popular cooking websites (Kyono Ryori and Cook Pad) and in strategically placed train and newspaper ads.

Participating consumers are looking for one or more of the U.S. pork brands, which include Genmai Pork, Yongen-Pork, U.S. Black Pork, Kenko Pork, Tomorokoshi Pork, Silky Pork, Sukoyaka Sangen Pork, Mugishiage Sangen Pork and Select Pork. Utilizing Facebook, Twitter and the USMEF-Japan website, consumers will identify where they found the U.S. pork. The more brands they find, the more they can win – up to one kilogram (2.2 pounds) of U.S. pork.

“The Japanese diet has evolved over the years as it has changed from starch to proteins, increasingly embracing high-quality beef and pork,” said USMEF President and CEO Philip Seng. “Japanese consumers are willing to pay for quality, and branded products that carry a story have intrinsic value that helps sustain customer loyalty even in times of price fluctuation. Expanding branded products in highly developed markets like Japan is an important element of our growth strategy.”

Japan is the No. 1 value market for U.S. pork exports and the No. 2 volume market. Through May, the U.S. has exported 199,061 metric tons (438.8 million pounds) of pork valued at $869.1 million to Japan. The volume of those exports is down slightly (5 percent) from the same period of 2011, but value is up 10 percent.




Smith Votes for Agriculture Disaster Assistance

Congressman Adrian Smith (R-NE) issued the following statement after voting in favor of H.R. 6233, which would reauthorize a number of agriculture disaster programs.

“The bill passed by the House today would provide assistance to producers affected by the drought and wildfires devastating farms and ranches across Nebraska.  Until the House and Senate come to an agreement on long-term farm policy, this legislation would ensure struggling producers are not left with more uncertainty.”

Background:
H.R. 6233 reauthorizes certain disaster assistance programs which expired at the end of fiscal year 2011, paid for with offsets consistent with levels previously established by enacted appropriations.  The bill results in an overall savings of $256 million.




Senate Finance Committee Approves Extension of Biodiesel Tax Incentive

Anne Steckel, vice president of federal affairs for the National Biodiesel Board, issued the following statement Thursday after the Senate Finance Committee passed a bipartisan tax package that includes an extension of the now-expired biodiesel tax incentive.

"This is a refreshing display of bipartisan cooperation to get this economy moving again, and we applaud Chairman Baucus and Ranking Member Hatch for their leadership," Steckel said. "The biodiesel tax incentive is a proven job creator. Growth in our industry has been stagnant since the incentive expired on Dec. 31. Reinstating it will get biodiesel producers across the country back to expanding their businesses and hiring new employees, as they were doing last year with the tax incentive in place."

"We call on the full Senate to quickly pass this package, and for the House to follow suit so that biodiesel producers can get the certainty they need to begin hiring again."

The biodiesel tax incentive was first implemented in 2005 and also expired in 2010. After it was reinstated last year, the biodiesel industry grew rapidly and set a new production record of nearly 1.1 billion gallons, supporting more than 39,000 jobs across the country. Made from an increasingly diverse mix of resources such as recycled cooking oil, soybean oil and animal fats, biodiesel is the first and only EPA-designated Advanced Biofuel that's produced on a commercial scale across the U.S. It is produced in nearly every state in the country and is used in existing diesel engines without modification.



Lawmakers Ask EPA For Waiver Of Corn-Ethanol Mandate
The National Pork Producers Council today praised a group of congressional lawmakers for asking the U.S. Environmental Protection agency to waive the federal mandate for the production of corn ethanol to help livestock and poultry producers weather the worst drought in more than 50 years.

Led by Reps. Bob Goodlatte, R-Va., Steve Womack, R-Ark., and Mike McIntrye, D-N.C., 156 members of the House today asked EPA Administrator Lisa Jackson to waive the Renewable Fuels Standard (RFS) for the rest of the year to “help ease corn supply concerns and protect American consumers, livestock producers, and the economy.”

The lawmakers’ request follows the filing Monday by a coalition of livestock and poultry organizations, including NPPC, of a petition asking EPA to grant in whole or in part a waiver of the RFS for the remainder of 2012 and for part of 2013.

The RFS requires 13.2 billion gallons of corn-based ethanol to be produced in 2012 and 13.8 billion gallons in 2013, amounts that will see the ethanol industry use about 4.7 billion and 4.9 billion bushels, respectively, of the nation’s corn.

The drought affecting most of the Corn Belt – the worst since 1956 – is expected to significantly reduce yields of grain crops, including corn. Some agricultural forecasters now are estimating that just 11.8 billion bushels of corn will be harvested this year – about 13 billion were harvested in 2011 – meaning corn-ethanol production will use about four of every 10 bushels.

“NPPC appreciates the congressional leadership being shown on this issue,” said NPPC President-elect Randy Spronk, a pork producer from Edgerton, Minn. “These lawmakers recognize that the expected low crop yields we’ll have because of the severe drought coupled with pressures on corn usage from federal energy policy will devastate livestock and poultry producers. We are pleased that these members of Congress are joining livestock and poultry organizations in formally petitioning EPA to grant an RFS waiver, a tool put in the law to address situations such as this drought.”

The members of Congress asked EPA to consider a “fair and meaningful nationwide adjustment” in the RFS. They said prompt action could help ease short corn supply concerns and “literally save jobs across many U.S. industries and keep families fed.”



RFS waiver calls "premature" and "void of justification"

Calls from some lawmakers for the Environmental Protection Agency (EPA) to waive the Renewable Fuel Standard for the rest of 2012 “will not make it rain in Indiana or meaningfully lower corn prices,” said Renewable Fuels Association President and CEO Bob Dinneen.

“Calls to waive any or all of the the RFS from the livestock lobby, oil industry, or their allies in Congress are not only premature, but void of justification,” said Dinneen.  “The RFS contains a great deal of flexibility allowing obligated parties to meet RFS requirements in a variety of ways other than blending physical gallons of ethanol.  The market is taking advantage of this flexibility as domestic ethanol demand for corn has fallen nearly 15 percent and production has dropped in the last six weeks.  Simply put, the RFS is working and knee-jerk reactions to acts of God will not provide the kind of relief some are seeking.”

According to academic research and RFA analysis, some 2.5 billion ethanol credits, known as Renewable Identification Numbers (RINs), are currently “in the bank.”  These RINs were “banked” in years past as refiners used more ethanol than was required by the RFS.  Should ethanol production be short this year, refiners can use these excess credits to show compliance with the RFS.  By substituting paper RINs for physical gallons of ethanol, demand for corn by ethanol producers would fall.

“This year’s weather has been more than challenging for farmers and ranchers across the country.  However, waiving the RFS will not make it rain in Indiana, bring pastures to life in the Plains, or meaningfully lower corn prices,” said Dinneen.  “The pressure relief valves of the RFS are working today, easing demand for corn from ethanol while still allowing obligated parties to comply with RFS requirements.  The fact of the matter is that grain will be produced – both here in the U.S. and across the globe.  The question will be how much and ultimately the market will ration demand.  Ethanol producers have been the first to respond to these market signals by reducing output.”



ACE counters calls from Members of Congress to block the RFS

The American Coalition for Ethanol (ACE) strongly disagrees with some Members of Congress who today are calling on the U.S. Environmental Protection Agency (EPA) to reduce the Renewable Fuel Standard (RFS).

“Ethanol costs less than gasoline. The bottom line is that any Member of Congress urging EPA to reduce the RFS also supports forcing consumers to pay more at the pump. Thankfully, EPA comprehends this fact and knows that reversing the RFS would not demonstrably reduce feed or food prices,” said Brian Jennings, ACE Executive Vice President.

Recent analysis by Bruce Babcock, an economist at Iowa State University, confirms that a waiver of the RFS will not result in additional or cheaper feed for livestock... http://www.card.iastate.edu/policy_briefs/display.aspx?id=1167. 

“Efforts to block the RFS, whether by the meat industry who wants cheap corn or Members of Congress who never supported the RFS in the first place, are misdirected,” Jennings said. “If ethanol producers didn’t create a market for low value corn starch, there would be less corn available for all sectors and livestock producers wouldn’t have access to large quantities of distillers grains, the high value, high protein feed resulting from ethanol production.”



2011 United States Total Farm Production Expenditure Highlights

Farm Production Expenditures in the United States is estimated at $318.7 billion for 2011, up from $289.1 billion in 2010. The 2011 Total expenditures rose 10.2 percent compared with 2010 Total expenditures. All expenditure items except Interest and Labor increased from the previous year.

Total fuel expense is $15.3 billion. Diesel, the largest sub-component, is $10.1 billion, accounting for 65.9 percent. Diesel expenditures are up 23.7 percent from the previous year. Gasoline is $2.8 billion, up 9.4 percent. LP gas is $1.6 billion, up 8.8 percent. Other fuel is $820.0 million, up 13.9 percent.

The four largest expenditures at the United States level totaled $147.1 billion and accounted for 46.1 percent of Total expenditures in 2011. They are: Feed, 17.1 percent, Farm services, 11.6 percent, Livestock, poultry and related expenses, 9.0 percent, and Labor, 8.4 percent.

In 2011, the United States Total farm expenditure average per farm is $146,653 compared with $131,821 in 2010, an increase of 11.3 percent. On average, United States farm operations spent $25,129 on Feed, $17,075 on Farm services, $13,163 on Livestock, poultry and related expenses, and $12,334 on Labor. For 2010, United States farms spent an average of $20,705 on Feed, $16,281 on Farm services, $11,128 on Livestock, poultry and related expenses, and $12,450 on Labor.

The top three average expenses per farm with the largest dollar increase are: Feed, up $4,424 or 21.4 percent, Livestock, poultry and related expenses, up $2,035, or 18.3 percent, and Fertilizer, lime and soil conditioners, up $1,975, or 20.6 percent.

The United States Economic Sales Class contributing most to the 2011 United States Total expenditures is the $1,000,000 - $4,999,999 class, with expenses of $91.5 billion, 28.7 percent of the United States total, up 14.2 percent from the 2010 level of $80.1 billion. It is followed by the $5,000,000 and Over class with $58.4 billion, up from $51.3 billion in 2010.

In 2011, Crop farms expenditures increased to $170.2 billion, up 7.4 percent while Livestock farms expenditures increased to $148.5 billion, up 13.7 percent. The largest expenditures for Crop farms is: Rent at $22.1 billion, (13.0 percent), Fertilizer, lime and soil conditioners at $21.7 billon, (12.7 percent), and Farm services at $21.6 billion, (12.7 percent). Combined crop inputs (chemicals, fertilizers, and seeds) are $48.2 billion, accounting for 28.3 percent of Crop farms total expenses. The largest expenditures for Livestock farms are: Feed at $51.2 billion, (34.5 percent), Livestock, poultry and related expenses, at $25.6 billion, (17.2 percent), and Farm services at $15.5 billion, (10.4 percent), together accounting for 62.2 percent of Livestock farms Total expenses. The average Total expenditure for a Crop farm is $183,829 compared to $119,058 per Livestock farm.

The Midwest region contributed the most to United States Total expenditures with expenses of $98.7 billion (31.0 percent), up from $87.7 billion in 2010. The other regions ranked by Total expenditures are: Plains at $73.8 billion (23.2 percent), West at $68.9 billion (21.6 percent), Atlantic at $39.1 billion (12.3 percent), and South at $38.2 billion (12.0 percent).

The sum of Total expenditures for the 15 Estimate States is $205.8 billion in 2011 (64.6 percent of the United States Total expenditures) and $188.1 billion in 2010 (65.1 percent). California contributed most to the 2011 United States Total expenditures, with expenses of $31.2 billion, (9.8 percent). California expenditures are up 3.2 percent from the 2010 estimate of $30.2 billion. Iowa, the next leading state, has $24.2 billion in expenses, (7.6 percent). Other states with more than $15 billion in Total Expenditures are: Texas with $22.7 billion, Nebraska with $17.3 billion, Illinois with $17.0 billion, and Minnesota with $15.5 billion.



Novozymes Partner Fiberight Receives Federal Pathway to Make Biofuel from Trash

Advanced biofuels from household trash are a critical step closer to consumer gas tanks after Fiberight, a Novozymes partner, today announced a key federal approval for its production process. Fiberight has developed cutting-edge technology to convert millions of tons of non-recycled municipal solid and industrial wastes into advanced biofuels for cars and trucks.

“The days of waste ending in a landfill are gone,” said Craig Stuart-Paul, Fiberight Chief Executive Officer. “We are giving trash a new beginning – firing our plant and fueling cars and trucks – and providing a less expensive, domestically-made energy source for the country.”

In its plan, Fiberight demonstrated its ability to separate recyclable paper, cardboard, plastics, rubber, textiles, metals and glass wastes from organic materials such as food waste. The company is one of the first U.S.-based companies to successfully produce biofuel from waste on an industrial scale.

Renewable Fuel Standard: Generating private investment, long-term careers

Established in 2005 and amended in 2007, the Renewable Fuel Standard (RFS) requires that new fuel production technologies meet certain regulations as overseen by the U.S. Environmental Protection Agency under the Clean Air Act. Thanks in part to stable policy like the RFS, companies like Fiberight are nearing commercialization for advanced biofuels.

Fiberight is investing $20 million in its Lawrenceville, VA plant. The plant will generate 100 construction jobs and 55 long-term careers. The Lawrenceville facility is expected to produce up to one million gallons per year at full production.

Once Fiberight begins producing fuel at its Lawrenceville facility, it will focus on bringing a larger-scale commercial facility online in Blairstown, Iowa with a target date of 2013.  The Blairstown facility will have capacity to produce six million gallons per year.

The next milestone for Lawrenceville is to run the trash through the process and put the enzymes to work. Novozymes, the world’s leading provider of enzymes to the biofuels industry, has collaborated closely with Fiberight to streamline the production process and will supply enzymes for the plant. This major step should happen in the next few months.

The United State’s potential production capacity of advanced biofuels from municipal solid waste is estimated at 10 million gallons per year if all 170 million tons of waste was recycled through a process such as Fiberight’s.



Membership Continues to Break Records

Membership at the National Corn Growers Association continues to climb. This July, NCGA's membership hit an all-time record of 38,369 members. The previous record of 37,447 members was reached just the month before in June. This is almost a 39 percent increase from this time last year.

"NCGA's record membership numbers are not only a testament to the popularity of our activities and member benefits but also a reflection of the growing interest of farmers to have a greater say in crafting legislation and regulations that impact their livelihood," said NCGA Grower Services Action Team Chair and Nebraska farmer Brandon Hunnicutt. "Representing the voting power of over 38,000 farmer members means something on Capitol Hill when you are fighting to secure an equitable farm bill or preserve the Renewable Fuels Standard."

Throughout NCGA's history, grassroots efforts have been the strength and driving force behind the organization.

"If it's an NCGA program, you can be assured that farmers thought of it, organized it and implemented it so that the broadest corn growing geography and greatest number of corn farmers could benefit," stated Hunnicutt. "Success in agriculture is bolstered by the farmer-to-farmer networks that sustain and grow membership, political effectiveness, operational expertise and friendships."
 
NCGA has members across the contiguous United States. It is part of a federation in cooperation with grower associations and checkoff boards from 28 states, and represents over 300,000 growers who contribute corn checkoff funds in their states.



Whole Milk Powder Prices Up in Auction

Whole milk powder prices rose 3.5% in the GlobalDairyTrade Internet-based auction for Aug. 1, and prices are expected to gradually move higher as U.S. drought conditions push up feed prices.

There is an "upward bias for prices" over the next year, BNZ Economist Doug Steel said, adding that he expects the market to remain choppy.

The U.S. drought coupled with "European risk of a blow-up easing over the last couple of weeks" provide reasons to be more bullish about the prices, Mr. Steel told The Wall Street Journal, but "on the other hand, there are more volumes around and they are projected to increase over the next 12 months."

The average selling price for whole-milk powder was US$2,675 a metric ton in the GlobalDairyTrade auction, an international trading platform established by New Zealand's Fonterra Co-Operative Group Ltd. The trade-weighted index, which covers a variety of products and contract periods and is based on the weighting of globally traded dairy products, rose 3.5% compared with the prior auction.

Markets follow the auctions carefully, as any significant moves in agricultural commodity prices have an immediate impact on New Zealand's economy, given that dairy accounts for nearly 25% of the country's annual exports, valued around 45 billion New Zealand dollars (US$36 billion).

The overnight auction supported the New Zealand dollar earlier in the session "but the real driver of the currency this morning was the U.S. FOMC announcement," BNZ FX strategist Kymberly Martin said in a note. The New Zealand dollar is trading at US$0.8082 after coming off an intraday and three-month high of $0.8144 Wednesday. The Kiwi fell when the dollar strengthened against major currencies after the Federal Open Market Committee held back from taking concrete action to stimulate the U.S. economy, which would have curbed the greenback's value.

While Mr. Steel said the volumes were increased and are likely to increase further, it does suggest "that demand is still growing," which will continue to support prices and the Kiwi dollar.

Participants in the auction include Fonterra, which produces about a third of the world's traded dairy products, Europe-based Arla Foods and Murray Goulburn Co-Operative of Australia and U.S.-based DairyAmerica Inc.

Also on Thursday, ANZ Bank said its ANZ Commodity Price Index, based on 17 commodities, eased 0.5% in July, with prices down 18.6% compared to a year earlier. While prices for wool, skins, beef and lamb were all down, "partly offsetting the fall in broader commodity prices was a close to 1% lift in dairy prices," ANZ Senior Economist Mark Smith said in a note.

Mr. Smith added that despite the on-month lift, "dairy prices have fallen 26% over the last 12 months and are now 30% below historical peaks."



Land O'Lakes Reports Second Quarter and First Half Sales and Earnings

Land O’Lakes, Inc. today reported continued strong sales across its business portfolio, with net sales up for both the second quarter and the first half of the year.

Net sales were $3.6 billion for the second quarter, up from $3.5 billion for the same quarter last year. Net sales for the first half of the year (through June) were $7.5 billion, up 8% from $6.9 billion for the first half of 2011. In the Company’s core businesses, first half sales were up 11% in Feed, 15% in Crop Inputs and 17% in Layers, while Dairy Foods sales were down 7%, primarily because of market conditions.

Lower quarterly and first half earnings were attributable to the overall economic environment, declining markets and excess milk supplies which impacted the Company’s Dairy Foods business. These factors were partially offset by exceptionally strong earnings in the Company’s Crop Inputs business, WinField Solutions, which benefited from the early Spring and favorable early growing conditions.

For the second quarter, Land O’Lakes reported earnings of $47.3 million compared with $67.1 million for the same period in 2011. Year-to-date net earnings (through June) were $131.9 million, compared with earnings of $168.1 million during the first half of 2011.

“At the mid-point of the year, we are pleased to report solid sales, with particularly strong results in core branded and proprietary product lines,” said Land O’Lakes President and Chief Executive Officer Chris Policinski. “We are continuing to successfully introduce innovative new products and build our brands with new revenue generating strategies,” he added.

“Earnings across business units are mixed as we face continuing challenges from the struggling national economy and volatile markets,” Policinski added. “We are addressing these challenges by focusing on growing revenues, reducing costs, improving efficiencies and streamlining processes as part of our Company-wide initiative called Total Margin Management.”

Land O’Lakes is committed to balancing the near-term investment requirements of growth with the long-term objective of maintaining a strong balance sheet.  Land O’Lakes’ total debt as of June 30, 2012, was $1.38 billion, up $0.32 billion from the same date one year ago.  The increase was due to several acquisitions which are now generating additional cash flow, as well as higher working capital needs related to growth and increased commodity prices.



DuPont will Appeal Verdict in Monsanto vs. DuPont Patent Case

DuPont strongly disagrees with the verdict that was reached in favor of Monsanto in Monsanto’s patent case against DuPont in the United States District Court in St. Louis, Missouri.  There were several fundamental errors in the case which deprived the jury of important facts and arguments and led to the disappointing outcome.  DuPont will appeal at the earliest possible opportunity and expects to overturn this verdict.

“DuPont believes that the evidence presented during the trial demonstrated clearly that Monsanto’s Roundup Ready® soybean patent (RE 39,247) is invalid and unenforceable and that Monsanto intentionally deceived the United States Patent and Trademark Office on several occasions as it sought patent protection.  Further, DuPont believes that the damages awarded of $1 billion are unjustified, particularly considering that Pioneer has never sold a single Optimum® GAT® seed and has no plans to do so in the future.  DuPont’s license to sell Roundup Ready® soybeans remains in place and is not impacted by this verdict,” said DuPont Senior Vice President and General Counsel Thomas L. Sager.

Several aspects of Monsanto’s misconduct involving this patent, which were not tried in this case, will be presented to a different jury as part of DuPont’s antitrust and patent misuse case against Monsanto in September 2013.

“DuPont is and always has been committed to innovation and providing farmers with diverse technology options.  We continue to stand by our position that we did not infringe the Roundup Ready® soybean patent and that the Monsanto patent is invalid.  DuPont will continue to fight hard to ensure American farmers have choices and that no one company decides what is best for them,” concluded Sager.



Get the Facts and Take Action Against Nitrogen Loss

Growers looking for information to arm themselves against nitrogen loss now have a new tool at their disposal. Dow AgroSciences introduces NitrogenStabilizers.com, a lively new online resource providing agricultural academia and producers with research and data related to the value of protection against nitrogen loss. A leader in the nitrogen stabilizer industry for more than 35 years, Dow AgroSciences continues to deliver the latest in design and technology in the field — and now online.

“The industry seeks information — real, tangible data around the topic of nitrogen loss,” says Jason Moulin, product manager, U.S. nitrogen stabilizers, Dow AgroSciences. “Today, Dow AgroSciences is excited to meet this demand by providing a website that combines years of research with relevant information on the subject of applied nitrogen, all in one convenient location.”

The site utilizes a new “parallax scrolling” design creating a unique, 3-dimensional visual navigation. The question-and-answer format engages visitors to explore at their own pace and knowledge level. Educational videos on the nitrification process, pictures of performance, and commonly asked technical questions regarding INSTINCT® and N-SERVE® nitrogen stabilizers are among the primary categories of information, including:
-    Fundamentals of nitrogen loss
-    Common forms of nitrogen
-    Stabilized nitrogen
-    Environmental stewardship

“Similar to INSTINCT and N-SERVE nitrogen stabilizers, the site supports growers’ efforts to fully understand how best to manage this critical input to optimize the yield and profit potential of their corn,” Moulin says.  Visit NitrogenStabilizers.com to experience the new site from Dow AgroSciences and learn more about INSTINCT and N-SERVE nitrogen stabilizers.