Thursday August 23 Ag News

Nebraska Corn Board elects new officers

The Nebraska Corn Board elected new officers at is August Board of Directors meeting in Kearney, Neb., last week.  Tim Scheer, District 5 director from St. Paul, Neb., was elected Chairman of the board. This will be Scheer’s first term to serve as Board Chairman after serving as Vice Chairman the previous year.  Curt Friesen, District 3 director from Henderson, Neb., was elected as Vice Chairman. Friesen previously served as the Secretary/Treasurer.  David Merrell, District 7 director from St. Edward, Neb., was elected as Secretary/Treasurer. This is Merrell’s first officer role after serving on the market development committee.  Alan Tiemann, at-large director from Seward, Neb., Past Chairman, will remain on the executive committee to advise the new chairman.

The role that these farmer leaders have is critical in supporting the mission and vision for Nebraska corn farmers, said Don Hutchens, executive director of the Nebraska Corn Board.  “The investment that the 23,000 corn farmers in Nebraska that pay the checkoff has played a dynamic role in helping the Nebraska economy through its market development, research, promotion and education,” Hutchens said. “These new leaders will continue that legacy and work even harder for the Nebraska corn farmer.”

Officers on the Corn Board will remain in their role for one fiscal year – July to June.



Nebraska Counties Designated as Secretarial Disaster Due to Drought Conditions

“The remaining eight counties in southeast Nebraska received primary Secretarial Disaster Designations due to drought by Secretary Vilsack yesterday, making all of Nebraska eligible for federal assistance,” noted Farm Service Agency (FSA) Director Dan Steinkruger.  “The designation provides emergency loan assistance and the potential for livestock program assistance that is pending in Congress.”

A current Nebraska map listing the approved counties is available on the Nebraska FSA website at www.fsa.usda.gov/ne. The website also provides links to the USDA Drought page and the U.S. Drought Monitor.

Secretary Vilsack also announced that the Risk Management Agency (RMA), which manages the crop insurance program, is changing its special provisions statements to allow haying and grazing of cover crops this fall.  The flexibility will help farmers if they choose to plant a cover crop without risking crop insurance coverage for 2013.  This will assist some farmers and ranchers with much needed forage this fall and winter.  Farmers with questions can contact their crop insurance agent for clarification.

The FSA is making changes in its emergency loan program to assist forage producers with funding to purchase forage before harvest.  Normally farmers and ranchers had to wait until after the production cycle ended.

Steinkruger added, “Secretary Vilsack has continued to evaluate program flexibility and options to assist farmers, ranchers, and landowners during this drought.”

Assistance from USDA programs is available from any of the 71 Nebraska USDA Service Centers.  Contact your local office for additional information.



UNL Ag Research Division's 'Big Idea Seminars' Start in September

A new Agricultural Research Division seminar series hopes to build big ideas and collaborations among faculty members at the University of Nebraska-Lincoln.

Big Idea Seminars begin in September. The seminar series in the Institute of Agriculture and Natural Resources at UNL will cover a broad area of research topics and is meant to bring together collaborations between faculty members across all of UNL, said David Jackson, associate dean of the ARD.

The seminars will get people learning and talking about different issues and hopefully generating new ideas, learning new things and coming up with new ideas for working together, Jackson said.

"This is more than just a seminar; this is team building," said Larkin Powell, professor in the School of Natural Resources. "This will really provide faculty a moment to just talk, work together and in the end come up with new research projects and land bigger grants."

Future topics could include any area of research going on at UNL.

The theme for the first five seminars is "Scenery as a Natural Resource" and was organized by Richard Sutton, professor in agronomy and horticulture at UNL.

This seminar series will help raise awareness of the visual landscape for the academic research community and as a resource affecting the quality of life for all Nebraskans.

All seminars, except for the Nov. 30 one, will be at the Nebraska East Union on UNL's East Campus at 4 p.m. The Nov. 30 seminar will be at the Mary Riepma Ross Media Arts Center, 313 N. 13th at 4:30 p.m.

Dates, speakers, times and topics include:
– Sept. 12, James Palmer, senior principal at Scenic Quality Consultants since 2007 and professor emeritus at SUNY, College of Environmental Science and Forestry, "Visual Resources and Scenic Landscapes.
– Oct. 10, Roopali Phadke, associate professor, environmental studies, Macalester College, St. Paul, Minn., "Visual Impacts of Windpower on Communities"
– Oct. 24, Steve Burr, associate professor of recreation resources management, director of the Institute for Outdoor Recreation and Tourism and extension specialist in the Department of Environment and Society in the College of Natural Resources at Utah State University, "Tourism, Scenery and Open Landscapes"
– Nov. 14, John McCarty, chief landscape architect, U.S. Department of Interior's Bureau of Land Management, "Visual Resources and Scenery Management on Public Lands"
– Nov. 30, Ronald Lee Fleming, FAICP, "Scenic Manifesto for Communities"

A second set of Big Idea Seminars, with the theme of "Plant Recognition and Identification Technology" will begin in November and is being organized by Steve Young, assistant professor at UNL's West Central Research and Extension Center at North Platte.

For more information visit the ARD's Big Idea Seminars website at bigideaseminars.unl.edu.



ICGA Applauds USDA Allowing Haying and Grazing of Cover Crops

The Iowa Corn Growers Association (ICGA) is applauding the decision by the U.S. Department of Agriculture (USDA) to allow for emergency haying and grazing of cover crops for livestock producers in response to the current drought.

For the 2013 crop year, USDA’s Risk Management Agency (RMA) intends to file special provision statements to allow haying or grazing of cover crops without impacting the insurability of planted 2013 spring crops.  This flexibility will help farmers plant a cover crop without risking crop insurance coverage in 2013.

“The ICGA asked the USDA to move forward on this special provision for farmers and livestock producers,” said Kevin Ross, ICGA president and a farmer from Minden.  “We applaud the USDA RMA decision which will allow for more critically needed feedstocks to be available for livestock producers here in Iowa and across the country.”



Iowa Farm Bureau Webinar to Address Transport Rules

Transportation regulations and exemptions are important aspects of today's agriculture. Throughout the year, and especially during harvest as grain is hauled from fields, farmers must keep current with transportation rules and regulations.

The Iowa Farm Bureau Federation's (IFBF) Margin Management Series is offering a webinar on Aug. 29 at 1 p.m. to address Iowa Department of Transportation (I-DOT) rules and regulations. The session features Chris Boswell, officer with the I-DOT Motor Vehicle Enforcement division. In addition to hearing Boswell's presentation, farmers can also ask questions by text during the webinar.

Participants can access the free webinar at www.iowafarmbureau.com and look for the link on the main rotating banner. While the webinar is open to the public, the program will be archived, with access limited to Farm Bureau members only. For more information, please contact Ed Kordick, IFBF commodity services manager, at ekordick@ifbf.org.



RFA statement on Romeny energy plan, support of RFS

In response to Governor Romney's support of the Renewable Fuel Standard and market access for alternative fuels in his energy plan released today, Renewable Fuels Association President and CEO Bob Dinneen issued the following statement:

"We applaud Governor Romney's commitment to domestic renewable fuels and his recognition of the importance of the RFS.  The RFS is helping to reduce America's reliance on imported oil and create hundreds of thousands of jobs all across rural America.  By working to remove barriers to market access for renewable fuels, as Governor Romney suggests, America can help spur an economic recovery while securing our energy future.  We look forward to hearing more details of Governor Romney's energy ideas as the campaign continues."

As you well know, the RFA has oft refuted the calls for a waiver of the RFS.  The market is currently taking advantage of the flexibility built into the program and oil refiners continue to meet their obligations.  Based on the standard set by EPA in its 2008 rejection of Governor Rick Perry's waiver request, the arguments by livestock groups and governors supporting them do not meet the definition of signficant economic harm.  As such, a waiver of the RFS is unnecessary at this time.

The RFA has also supported the notion of a more open market place and is supportive of the Open Fuel Standard currently introduce in both chambers of Congress.



AEC Commends Governor Romney's Support for the RFS; Calls For More Attention to Tax Parity

The Advanced Ethanol Council (AEC) released a statement today in response to the release of Governor Romney's energy plan.

"We commend Governor Romney for recognizing the importance of the Renewable Fuel Standard to the economic and environmental welfare of the country, and the need to open up the marketplace to renewable fuels," said Brooke Coleman, Executive Director of the AEC. "First generation biofuels are already competitive with petroleum-based fuels, and next generation biofuels are coming online as we speak. The RFS and market access are two critical pieces of the puzzle when it comes to the ongoing development of the domestic biofuels industry."

The Advanced Ethanol Council also noted the importance of the tax code when it comes to domestic energy development. "One area where we hope Governor Romney will be more explicit is in his campaign's support for parity in the tax code for renewable fuels," added Coleman. "We cannot have an 'all of the above' energy strategy if the the U.S. tax code continues to offer incentives to oil and gas developers that are not being offered to renewable fuels projects. Leveling the playing field in the tax code is absolutely critical to achieving the energy security goals set forth by the Romney Campaign."




US Grains Council Urges Japanese Government to Launch Port Expansion Project

The U.S. Grains Council delivered a letter of request to the Japanese Parliamentary Vice-Minister of Land, Infrastructure, Transport and Tourism (MLIT) Kunihiko Muroi, advising for an early launch of the Ministry's project to expand its ports to accommodate Post-Panamax class vessels. Japan is the largest export market for U.S. corn and among the top for other U.S. agricultural products. The expansion of Japan's import capacity is crucial for expanding U.S. markets and would also reduce transportation costs. This added capacity will also become increasingly important when the Panama Canal exapansion is completed in 2014.

Panamax vessels generally have an overall length of 950 feet and width of 106 feet, but their size is limited by the length and width of the available lock chambers, by the depth of the water in the Canal, by and the height of the Bridge of the Americas.

In November, the Council's corn mission visited the Port of Kushiro, Japan's largest port facility. The Port is located in Hokkaido, the heart of Japan's major dairy producing area. The mission met with Dr. Tetsuya Hayakawa, the director of MLIT's Kushiro Port Office, who explained that the port was selected by MLIT as one of the eight ports designated to undergo a massive expansion in an effort to remain competitive internationally, by handling larger ships with a faster distribution process.

The Councils request to expand Japan's offloading capacity is the first of its kind from an overseas organization, according to MLIT. The Council is eager for Japan to begin accommodating larger vessels, as it ensures the Japanese will continue to be a reliable consumer of U.S. agricultural commodities.



Reduced Cattle Herd Could Mean Bigger Profits in Late 2013

The U.S. beef herd has been shrinking, and the worst drought in decades has only encouraged that trend to continue. But for beef producers who can withstand the financial hardship over the next several months, reduced beef supplies could mean bigger profits starting as early as late 2013.

The U.S. Department of Agriculture's midyear cattle inventory report showed beef cow numbers dropped by 3 percent in the last year. It projects the 2012 calf crop to be down 2 percent from last year, and down 8 percent since 2006.

Part of what has been driving the decline is skyrocketing feed costs and prolonged drought in the Southern Plains, said Chris Hurt, Purdue Extension agricultural economist.

"This year's drought likely means further decreases in cow numbers over the next 12-14 months," he said. "The impacts of the drought are just beginning to show up in some of the national data. We do know the direction, but not the final magnitude."

Since mid-June, corn prices have jumped by 60 percent and soybean meal prices by 25 percent. And according to the USDA, 82-92 percent of the pastures in Indiana, Illinois, Arkansas, Missouri, Iowa, Kansas, Nebraska and Colorado are in very poor or poor condition.

The lack of available feed crops and forages and the high prices for what is available have forced many producers to start culling their herds. As more cattle have entered the market, the value of calves and feeder cattle has fallen.

"In the wake of high feed prices and uncertainty regarding forage availability, calf and feeder cattle prices plummeted," Hurt said.

For example, Oklahoma steer calf prices were $173 per hundredweight in mid-June but fell to $138 in late July. A $35 per hundredweight decline on a 550-pound calf is a nearly $200 per-head value reduction.

"Multiplying that across a national calf crop of 34.5 million head totals a potential decline in value of nearly $7 billion," he said. "It is still too early to count the actual damages, but this illustration shows it's likely large."

The silver lining, Hurt said, could be for producers who are able to weather the financial storm and hold onto their herds. As cattle numbers fall below beef consumer demand, prices should rebound.

Producers likely best positioned to keep their herds are those who locked in lower feed prices in the spring. That would mostly include large feedlots that tend to hedge on feed and feed cost and profit margins.

"The message for cow-calf producers is to hold onto the cows if possible," Hurt said. "The short-term losses of the next 12 to 14 months will be replaced by large profits in late-2013, 2014 and 2015."

Hurt said the anticipated "golden days" are based on reductions in per-capita beef supplies, leading to higher retail beef prices, and an expected return to more normal crop conditions in 2013.

While that could revive some optimism in the cattle industry, Hurt was quick to point out that most thoughts of herd expansion would be pushed off until late-2013.



Texas OKs 5% Biodiesel in Program

The Texas Commission on Environmental Quality voted Wednesday to allow ultra-low sulfur diesel fuel with a 5% concentration of biodiesel to qualify under its Texas Low Emission Diesel or TxLED program. The program's strict environmental regulations are aimed at reducing pollution in 110 counties in the Lone Star state.

The new standard takes effective Sept. 13.

The approved standard closes a loophole in the law which prevented biodiesel blends from being compliant with the TxLED regulations.

The adoption today revises definitions, establishes new designated alternative limits for TxLED, and creates new registration requirements identifying production and import facilities.

It also revises "approval procedures for alternative diesel fuel formulations," according to a news release issued by TCEQ.

TCEQ in November 2005 adopted the TxLED standards in an effort to reduce pollutants in the state's smoggiest 110 counties, according to Jeremy Sanders an attorney for BoyarMiller who represents the biodiesel industry in Texas. However, the previous rules made biodiesel blends cost-prohibitive for most biodiesel producers, Sanders said.

The old requirements forced several biodiesel producers to dramatically reduce production and transport offtake out of Texas. Sanders said the now amended requirements had forced biodiesel producers to take significant hits to their operating margins.

The original TxLED rules meant biodiesel could not meet stricter nitrous oxide standards.



Oil Prices Fall on Lack of Fed Action

(AP) -- The price of oil is falling after a Federal Reserve official said further action to stimulate the U.S. economy may not be necessary.

Oil prices had risen earlier on Thursday after the Fed appeared ready to step in with another round of bond-buying. But then the president of the St. Louis Fed spoke on CNBC, saying Fed officials were considering new data that might make further action unnecessary.

Benchmark oil fell $1.19 to $96.08 per barrel in New York. Oil prices have risen about $8 since Aug. 1, partly on hopes that the U.S., Europe and China would do more to increase economic growth. Slower growth cuts into demand for oil.

Natural gas prices also are lower after the government said that amount in storage was higher than expected.




IGC Cuts 2012-13 Corn & Wheat Outlook

The International Grains Council Thursday reduced its estimates for world corn and wheat production in 2012-13 due to the effects of drought on crops across the northern hemisphere, particularly in the U.S. and Russia.  The London-based body said its forecast for global corn output had been cut by 26 million metric tons to 838 million tons, mainly due to a reduction of 25 million tons for the U.S. crop.  It added that world stocks are forecast to fall to a nine-year low, including a particularly steep decline in the major exporters, and although the next season's crops in Brazil, Argentina and South Africa may be large, harvests are still several months away.

Meanwhile, the IGC said it had also trimmed its world wheat production estimate by 3 million tons, to 662 million tons, with Russia's output seen down 4 million tons at 41 million tons.  In 2010 a severe drought and widespread wildfires resulted in a wheat harvest of around that level which contributed to an export ban. The Russian government has said it has no plans to repeat such a ban this year.



Feds: CA Firm's Beef OK
USDA, McDonald's Stop Buying From California Slaughterhouse

(AP) -- Federal officials say nothing they have seen so far in covert video shot in a California slaughterhouse shows meat from cows that may have been sick made it into the food supply.

But the federal government and McDonald's Corp. have suspended purchases of meat from the facility.

The suspensions by the U.S. Department of Agriculture and the fast-food chain came after an animal welfare group's video shot at a slaughterhouse operated by Central Valley Meat Co. showed cows that appeared to be sick or lame being beaten, kicked, shot and shocked in an attempt to get them to walk to slaughter.

"There are behaviors in the video which appear to be unacceptable and would not adhere to the standards we demand of our suppliers," McDonald's said in release.

The video was shot in June and July by an undercover operative for the group Compassion Over Killing who worked at the plant and also gave a written statement to the USDA about events not on tape.

"We do know that workers were trying to make non-ambulatory cows not eligible for slaughter go to slaughter," said Erica Meier, executive director of the animal welfare organization. "We believe red flags are raised for sure with our video, but it's up to the USDA to decide."

It's against the law to slaughter a non-ambulatory animal for food out of concern that it could be infected with bovine spongiform encephalopathy, also known as mad cow disease.

The Hanford slaughterhouse is in the same city where a dairy cow at a rendering plant was discovered in April to have mad cow disease. The USDA said earlier this month it was an isolated case and didn't pose a threat to the food supply.

Central Valley Meat Co. primarily slaughters dairy cows that have lost their value as milk producers.

The USDA bought 21 million pounds of beef from the company in 2011 for the national school lunch and other federal food programs.

Records show the government made five large-scale purchases of ground and chunk beef, spending more than $50 million of the total $135 allocated by the government for such acquisitions that year.

USDA spokesman Justin DeJong said he did not know to which government food programs the beef was allocated. The meat generally goes to the national school lunch program and food distribution on Indian reservations, and is available for discount purchases by community food banks.

"The department works to ensure that product purchased for the federal feeding programs meets stringent food safety standards and that processors comply with humane handling regulations," the USDA said in a statement.

McDonald's also said it had suspended purchases of meat from the slaughterhouse. The company did not immediately say how much meat it had been buying. But a spokesman for the chain said the percentage of meat purchased from the slaughterhouse was in the single digits.

Regional fast-food chain In-N-Out Burger previously suspended purchases after learning of the allegations of inhumane treatment.

The New York Times reported that Costco Wholesale Corp. also suspended purchases. That company did not immediately return a call from The Associated Press seeking comment.

The USDA acted quickly to shut down Central Valley Meat Co. on Monday after the video documented the treatment of dairy cows.

The video appears to show workers bungling the slaughter of cows struggling to walk and even stand. Clips show workers kicking and shocking cows to get them to stand and walk to slaughter.

The video prompted the National Cattlemen's Beef Association to issue a statement.

"We firmly believe that those knowingly and willfully committing any abuse to animals should not be in the business — period," Dave Daley, a professor at California State University, Chico, said in the statement released by the marketing group. "The actions depicted in these videos are disgraceful and not representative of the cattle community."

Central Valley Meat Co. has referred all questions to a public relations firm that issued a statement saying Central Valley Meat is cooperating with investigators and developing a plan to remedy any potential violations of USDA guidelines.

"Based on our own investigation and 30 years of producing safe, high-quality US beef, we are confident these concerns pose no food safety issues," the statement said.

The video shows one man standing on the muzzle of a downed cow. Other footage depicts cows struggling after being repeatedly shot in the head with a pneumatic gun.

Federal regulations say slaughterhouses must be successful with a single shot.

Other clips show cattle with udders so swollen they are unable to keep their legs under them to walk, and workers trying to lift downed cattle using their tails.

Compassion Over Killing also provided the video to the district attorney's office in Kings County, where the plant is located. The office is following the federal investigation before deciding whether to file state cruelty charges.

The case has attracted the attention of Temple Grandin, a professor of animal science at Colorado State University and subject of a documentary about her life working with livestock behavior issues while she struggled with autism.

In a release distributed by the American Meat Institute, she said some video clips of cows twitching after being shot in the head with a pneumatic gun are normal reflexes, but she did note some problems.

"I did observe some overly aggressive and unacceptable use of electric prods with non-ambulatory cattle and in sensitive areas like the face," she wrote. "I would classify this as egregious animal abuse."



High Corn Prices? Yes, It’s All Our Fault
Keith Dittrich, Nebraska Farmer
Co-Chair, American Corn Growers Institute for Public Policy

The risk of higher food prices caused by the price and supply of corn has become a major concern to some.  A principle storable commodity in the world which is used as a livestock feed, an energy source for biofuels, and to a much, lesser extent in a multitude of food products, has become a focus to many.  This major carbohydrate, protein and oil source to the world is primarily supplied by US farmers who now face an epic Midwest drought.  A drought that now encompasses two thirds of the nation. Even so, that at historically high prices corn is still only priced at around fifteen cents per pound, which contains over 1600 calories as food or 8000 BTUs as energy.

Some are attempting to blame biofuels as taking too much supply away from the food system that historically has enjoyed a regular, overabundant supply of this cheaply priced food and energy source.  Others more experienced blame multinational food conglomerates for having too much influence in the marketplace and too much control of the food system.  This, along with farm and trade policies that have encouraged a deregulated, centralized, yet global food system dependent on a few homogenized raw material products.  Those more understanding also blame a growing world population that is necessitating increased food production.

But what about placing a good part of the blame right where it is really deserved; at our own fossil fuel laden doorstep?  This is anyone who uses fossil fuels to run their car, heat and cool their home or consume quantities of manufactured goods made with fossil fuels.  Biofuels development has happened out of a necessity to mitigate and provide offsets to increased levels of carbon in the atmosphere caused by us.  And here in America we are more than guilty of using more than our fair share of oil, coal and natural gas.

Now, the conundrum is we are challenged to produce enough production on the world’s available land principally because of climate change and secondly because of population growth.  This year’s drought is largely about human made climate change and at the least is a precursor of what we face in the future somewhere on the globe every day.

One has to look no further than water levels on the Mississippi River that in places have dropped 55 feet from last year’s historic flooding to understand that we have a problem of extremes.  Those less understanding argue that climate is cyclical and it all averages out.  The leaders who saw this coming though, have worked to develop policies to offset the effects of weather changes as scientists have worked for decades to develop cost efficient alternatives to oil and coal such as ethanol, wind and solar power.

Now, as we are facing the actual effects of climate change and potentially higher food prices there are those who wish to go back in time, ignore what is happening to our climate and take a shortsighted approach to the problem.  Shortsighted in the fact that many are pushing for more oil and gas production to satisfy our growing energy appetite while ignoring growing and alarming data that our earth is warming up too fast.

The most significant shortsighted behavior comes from those who are now attempting to short circuit efforts to mass produce biofuel energy alternatives that are indeed working to offset climate change by cleaning up our energy system and sequestering carbon all at the same time.  This starts the process of reducing the volatility of our climate by reducing demand for fossil fuels and tucking back away dangerous carbon pollutants in the soil where it can be stored.  The first line of attack from these opponents of a new domestically produced energy system will be to amend and weaken the Renewable Fuels Standard, a landmark legislative victory. This bill has been effective in developing a vibrant biofuels industry and which has provided competition to Big Oil, (the principle opponent of renewable fuels) and helped hold gas prices down for American consumers and motorists.

Even more outrageous, naysayers on climate change have also resisted efforts to develop a grain reserve program, which would actually equate to food reserves and price protection for consumers during drought years like 2012.  Many don’t even know it, but our nation will be very short of corn and soybeans inventories by the time our shortened 2012 harvest arrives.  Then our drought stricken crop will have to last us to the next harvest.  Mind you, China has always kept grain stocks in reserve and has them today.

While some have criticized farmers for finally profiting from the last few years upturn in commodity prices, they forget that most farmers sold their crops for below the actual cost of production the good part of a generation before this, including up to just a few years ago.  And they now may seem a bit hypocritical when many farmers are again facing peril because of this partly man made drought.  Luckily, the last few years of profit may allow these same farmers to offset their losses and continue to produce a much needed good crop next year.  You can also be assured that farmers are doing everything in their power to produce through this drought and harvest every last pound of feedstuff that they can this year.  They know that they will need it and that our world needs it because they sit on the front lines of the battle for our climate, our food and energy systems and our security as a nation.

We all have to pay for our mistakes of the past.  That’s what we teach our children.  We reap what we sow.  Experts say we must stay the course on renewable energy and climate change mitigation, along with conservation of our resources.  That is if we are ever going to pull ourselves out of the hole all of us have dug together as a society.  And they say it is entirely possible that we can pull out of it.  Along with this comes the potential to reinvent our country through a new competitive spirit based on a more efficient and renewable energy and food system.  Or we can fight for the last drop of oil as our climate implodes around us.

I say it’s time for our country to suck it up, stay the renewable energy course, and deal with it as winners.