Thursday August 30 Ag News

Take Steps to Avoid Harvest Fire Hazards
Paul Jasa, UNL Extension Engineer

While many areas of Nebraska received some rain the past couple of weeks, it wasn’t enough to significantly reduce the extent of drought or fire hazard across the state. On Thursday the National Weather Service issued a red flag fire warning for almost all of Nebraska, indicating a high risk of fires. With an early harvest season just beginning, growers are encouraged to reduce their fire risk by cleaning and maintaining their equipment and being prepared in the event a fire does develop.

Identify and monitor potential hazards on the combine.
-    Do a “dry run” of the combine before entering the field to listen for worn bearings or moving parts and check for any over-heated bearings. Push/pull shafts and sheaves often to check for worn bearings.
-    Check wires and wiring harnesses for damaged insulation to prevent an electrical short. If you’re having problems with blown fuses, try to find the source of the problem instead of constantly replacing the fuse. Exposed wires could be causing the short and creating sparks which could start a fire.
-    Never put in a fuse with higher capacity than those recommended as the wires may overheat and start a fire.
-    As harvest continues, those outside the combine should listen and watch for potential problems.
-    If you're using other equipment (grain cart or rotary mower) in the field during harvest, also keep an eye on it for possible problems.

Clean debris from your combine before and at regular intervals during harvest.
-    Clean any area where chaff or plant material accumulates often, especially those near moving parts. Check areas around the engine, exhaust manifold, fan shrouds, fuel/oil tanks, and chaff spreaders to ensure they are free of debris. Using a leaf blower or compressed air tank is an easy way to remove debris material that builds up on the combine.
-    Closely monitor any belts that are frayed or worn as they can produce enough heat to start a fire.
-    Any time you think you smell smoke, stop and examine the combine completely. Chaff and plant materials may smolder for some time before an actual fire starts, sometimes even after the combine has been shut down.

Take precautionary measures and be prepared to respond if a fire does occur.
-    When harvesting on windy days, if possible, start on the downwind side of the field. This way, in case a fire does occur, at least the wind will carry it away from the standing crop.
-    Consider carrying a water tank with a pump to the field and always keep a fire extinguisher handy.
-    Some growers keep a tractor with a tillage implement close by to till a fire break if necessary.
-    Most recommend keeping at least two fire extinguishers with the combine at harvest — one in the cab and one accessible from ground level. Check your fire extinguishers annually to ensure they are charged properly and always remember proper extinguisher use. Stand a few feet from the fire and aim at the base/source with a sweeping motion.

If a fire does occur, always remember that your personal safety is the most important thing. Don’t put yourself or others in any unnecessary risk. Always call 911 as soon as you notice a fire, then try to put it out.



Vilsack Extends Emergency Grazing to Assist Ranchers Impacted by Drought

Agriculture Secretary Tom Vilsack today announced a two-month extension for emergency grazing on Conservation Reserve Program (CRP) acres, freeing up forage and feed for ranchers as they look to recover from this challenging time.  This flexibility for ranchers marks the latest action by the U.S. Department of Agriculture to provide assistance to producers impacted by the drought, which has included opening CRP and other conservation acres to emergency haying and grazing.

To assist producers, USDA is permitting farmers and ranchers in drought stricken states that have been approved for emergency grazing to extend grazing on CRP land through November 30, 2012, without incurring an additional CRP rental payment reduction.  The period normally allowed for emergency grazing lasts through September 30.  The extension applies to general CRP practices.  New grazing requests should be submitted to Farm Service Agency (FSA) field offices indicating the acreage to be grazed.  USDA’s continuing efforts to add feed to the marketplace benefits all livestock producers, including dairy, during this drought.

The extension of emergency grazing on CRP acres does not apply to the following environmentally sensitive practices:  CP8A-Grass Waterway-Non-Easement; CP23-Wetland Restoration; CP23A-Wetland Restoration-Non-Floodplain; CP27-Farmable Wetlands Pilot Wetland; CP28-Farmable Wetlands Pilot Buffer; CP37-Duck Nesting Habitat; and CP41-FWP Flooded Prairie Wetlands.

There is no extension of emergency haying which ends August 31, 2012.



Nebraskans Asked to Consider Putting More Meat on the Grill

Nebraska Farm Bureau is asking Nebraskans to consider adding more steak, pork chops and chicken to their grills this holiday weekend and throughout the rest of the tailgating season. “It’s one way Nebraskans can help and show support for Nebraska’s livestock farmers who have been hit particularly hard by the drought that’s stretched across the state and most of the country,” said Steve Nelson, Nebraska Farm Bureau president.

The drought has been difficult on many farm and ranch families, but beef, pork, dairy and poultry farmers have felt the greatest pinch of the drought. According to Nelson, many Nebraska ranchers have watched the drought eliminate the pastures and other forages they depend on to feed their beef animals, forcing many to reduce and liquidate beef herds. Pork, poultry, beef and dairy farmers are also feeling the pressures of the drought as the price of corn and soybeans, primary livestock feeds, have climbed considerably as a result of drought ravaged fields and expected shortfalls in crop yields.

“It’s a difficult situation for livestock farmers who are operating in the red due to higher feed costs and a loss of market value of their animals because of the herd liquidations. There is a lot of meat in the market place and one way to make things better for Nebraska farm and ranch families who raise livestock is for some of that meat product to move through the food chain and off of grocery store shelves,” said Nelson.

Labor Day weekend tends to be a good weekend for meat sales with lots of activity from grilling enthusiasts.  The start of tailgating season helps add to the mix of meat buyers.  “We hope people will consider throwing a little extra of their favorite meat on the grill in the coming weeks.  Nebraska farmers and ranchers are proud to produce high quality protein for Nebraska consumers and for people across the country and the world.  Meat sales are always critical to livestock farmers, but it takes on added importance given the year we’ve had with the drought,” said Nelson. “The difficulties of the drought are another reason we continue to push for farm bill passage this year.”



 
FY 2013 Exports Forecast at a Record $134.5 Billion; Imports at a Record $117.0 Billion

Fiscal 2013 agricultural exports are projected at a record $143.5 billion. Horticultural products are forecast up from the fiscal year 2012 forecast on strong demand from Canada, Europe, and Japan.  Grain and feed exports are expected up, driven largely by higher wheat volume and value, but also supported by higher corn unit values. The forecast for oilseeds is up from 2012, based on record soybean and soybean meal prices attributed to tight exportable supplies.  Cotton exports are forecast down on falling unit values.  Exports of livestock, poultry, and dairy products are forecast marginally lower as declines in dairy, pork, and poultry outweigh growth in beef.

U.S. imports are projected at $117 billion in 2013, up from the revised 2012 forecast of $106.5 billion. For 2012 tropical oils (coconut, palm, and palm kernel), olive oil, coffee and cocoa beans, sugar, and rubber have all experienced price declines as world demand has weakened.  These downward price adjustments are expected to boost U.S. agricultural import volume in 2013. 

The forecast trade balance for fiscal 2013 shows a surplus of $26.5 billion, down $3.5 billion from the revised 2012 forecast. The revised trade surplus for 2012 is $30 billion.

Export Products
Fiscal year 2013 grain and feed exports are forecast at a record $39 billion, up $4.4 billion from the 2012 estimate, driven largely by higher wheat volume and value, but also supported by higher corn value.  Coarse grain exports are forecast at $13 billion, up $800 million, mostly on higher corn and sorghum unit values. Corn volume is forecast down sharply by 5.5 million tons to 33.5 million tons due to tight U.S. supplies and high prices. Feeds and fodders are up $700 million mostly because of exports of distiller’s dried grains (DDGs) to China.

Fiscal 2013 wheat exports are forecast at $12.3 billion, an increase of $3.2 billion due to sharply higher unit values and volume. Higher values are largely supported by high corn unit values. Despite higher unit values, tight exportable wheat supplies in most major exporting countries boost U.S. competitiveness, particularly in North Africa and the Middle East.  Rice exports, at $1.9 billion, are down on reduced sales to Northeast Asia and lower overall exports caused by smaller supplies.  

The fiscal 2012 estimate for grain and feed exports is unchanged at $34.6 billion; however, there are offsetting changes.  Corn exports are cut $800 million to $11.7 billion due to lower volume reflecting weaker-than-expected demand for feed grains in recent months as old-crop supplies tighten.  Wheat exports are up $600 million to $9.1 billion as higher unit values more than offset reduced volume.  Rice exports are down slightly to $2 billion despite higher unit values and a marginal boost in quantity.  In recent months, sales shifted from higher-cost medium grain to Northeast Asia to more long grain, including rough rice, to South America.      

Fiscal 2013 oilseed and product exports are forecast at $28.1 billion, up $400 million from the 2012 estimate, driven by record soybean and soybean meal unit values attributed to tight exportable supplies.  Record unit values boost soybean export value by nearly $800 million to $19.9 billion even with a decline in export volume.  Soybean meal exports are projected lower as reduced crush limits export potential.  Soybean oil exports are also down as lower production, tight stocks, and strong demand for biodiesel constrain exports.  

Fiscal 2012 oilseed exports are forecast to reach $27.7 billion, up $1.3 billion from the previous forecast due to exceptionally strong late season sales attributed to smaller South American supplies.  Sales of soybeans to China and soybean meal to the Philippines are the primary factors driving export growth. 

Fiscal 2013 cotton exports are forecast at $4.8 billion, down $1.9 billion from the 2012 estimate. Export volume is forecast to decline slightly to 2.6 million tons.  Unit value is expected to fall by nearly 25 percent, as cotton prices have fallen from the historic highs of the past two years. 

The fiscal 2012 estimate for cotton is raised $300 million to $6.7 billion on stronger end of year shipments.

Fiscal 2013 livestock, poultry, and dairy exports are forecast marginally lower ($200 million) at $29.9 billion from the previous year.  Declines in dairy, pork, and poultry outweigh growth in beef.  Dairy exports are forecast to decline $200 million to $4.8 billion as high feed costs are expected to reduce producer margins, leading to lower milk output and reduced dairy product supplies.  As a result, export volumes are anticipated to decline.  Pork exports are forecast $100 million lower to  $5.6 billion as higher prices and tighter exportable supplies are expected to impact shipments to more price-sensitive markets in Latin America and the Caribbean.  Poultry exports are forecast to decline by $50 million to $6.2 billion amid higher unit values and tighter exportable supplies.  However, exports to Mexico, Canada, and Angola are expected to remain strong.  Beef exports are forecast to rise $200 million to $5 billion on higher volumes and unit values.  

The fiscal 2012 export value for livestock, poultry, and dairy products is raised $500 million from May to $30.1 billion with gains in dairy, poultry, and pork. 

The fiscal 2013 export forecast for horticultural products is a record $32 billion, up $3.5 billion from the 2012 estimate.  Fresh fruit and vegetable exports are forecast at a record $7.6 billion, up $700 million.  Exports to Canada, Europe and Japan are expected to continue expanding. Processed fruit and vegetable exports are forecast at $7.4 billion, up $700 million. Unit values for several processed products are expected to continue rising with demand from major markets.  Whole and processed tree nuts are forecast at $7 billion, up $800 million primarily due to China’s growing demand for almonds, pistachios, and walnuts.  The fiscal 2012 export estimate for horticultural products is unchanged at $28.5 billion.
 
Import Products
U.S. imports of agricultural products in fiscal year 2012 are reduced by $1 billion to $106.5 billion from the May estimate of $107.5 billion.  This still represents a 13-percent increase from fiscal 2011.  Zero growth in U.S. personal consumption expenditures for food and beverages (purchased for home use) over the past four quarters has slowed import demand for agricultural products.  The index for food quantity consumed at home has also been flat over the past year.

In 2012, tropical oils (coconut, palm, and palm kernel), olive oil, coffee and cocoa beans, sugar, and rubber have all experienced price declines as world demand has weakened.  These downward price adjustments, however, are expected to boost U.S. agricultural import volume in fiscal 2013.  The U.S. dollar continues to strengthen vis-à-vis the Euro, the Canadian dollar, and the Mexican peso.  This currency appreciation with respect to top trading partners boosts the dollar’s purchasing power.

Livestock and dairy import projections in 2012 are up $200 million from the preceding forecast as imported cattle, pork, and dairy products increase in value and volume.  In 2013, however, cattle imports are expected down while beef, pork, and dairy products increase in value and volume.  Cattle imports are forecast lower at 1.9 million head as improved pasture conditions and declining inventories in Mexico slow shipments.  Beef and veal imports are forecast higher in 2013 to nearly $4.2 billion due to strong demand for processing beef and lower domestic cow slaughter.  Pork imports are up $50 million in 2013 as tight domestic supply and high prices boost shipments from Canada.  Imported dairy products continue their steady rise from 2010 as butter, casein, and miscellaneous milk products lead demand.  The overall boost in 2013 of livestock and dairy products is $700 million, raising total imports to $14.1 billion from the projected $13.4 billion in 2012.

Lower world prices for sugar, coffee beans, cocoa beans, rubber, and other tropical crops in the past year reduced the estimated import value for sugar and tropical products to $30.2 billion from the previous $31-billion forecast.  The largest forecast declines are for coffee beans and natural rubber.  Coffee (Arabica) prices are down 29 percent from July 2011 and rubber prices are 35 percent lower.  The import price for sugar is also down 24 percent and cocoa bean prices are down 26 percent from a year ago.  These sharp price declines will boost their demand in 2013 as personal disposable incomes continue rising (albeit slowly) and as the dollar appreciates.

Increased imports of palm kernel, palm, rapeseed, and olive oils have more than offset lower shipments of coconut oil thus far in 2012.  Although prices for these vegetable oils are down, except for rapeseed (canola) oil, their higher volumes have kept the total import value at $6.1 billion.  These lower prices will raise import volumes in 2013 such that $400 million more in import value is expected.  Greater oilseed and oilmeal imports in 2013 will boost total imported oilseed products to $10.5 billion from the estimated $9.1 billion in 2012.

Imports of processed and bulk grains and animal feed are projected to continue growing from $9.6 billion in 2012 to $10.6 billion in 2013.  This import hike is driven in part by the 2012 drought in grain-producing States that has reduced domestic grain supplies and stocks.  Wheat imports are projected higher as lower-priced, feed-quality wheat will, to some extent, replace corn in feed rations.  For oilseeds, however, overall production in 2012/13 is smaller that results in higher corresponding imports and lower exports.

The $300-million smaller horticulture import projection for 2012 is attributed to downward corrections for fruit juices, fresh vegetables, wine, and essential oils.  Except for wine and citrus fruits, import unit values of horticulture products have generally not declined thus far in 2012.  Import quantities of fresh fruits and vegetables as well as processed fruits and vegetables, except fruit juices, remained relatively strong.  These import unit values and volumes are expected to carry over to 2013 and lift total horticulture imports by more than $3 billion to $45.3 billion.   Import demand for fresh fruits has continued to increase strongly since 2000 and is forecast to reach $8 billion in 2013, the largest among horticulture product groups.
 


Vilsack on Latest Forecast for Farm Exports

Agriculture Secretary Tom Vilsack released the following statement today on the U.S. Department of Agriculture's export forecast for fiscal years 2012 and 2013, which shows a level of U.S. agricultural exports unmatched in our nation's history.

"Today's export forecast marks indication of an historic achievement for America's farmers, ranchers and agribusinesses. Even with tough odds due to extreme weather, U.S. agriculture is now poised for three consecutive years of record exports, smashing all previous records and putting America's agricultural sector on pace to achieve President Obama's goal under the National Export Initiative of doubling exports by the end of 2014. These exports will support more than 1 million jobs in communities across the country.

"Exports of U.S. food and agricultural products are expected to reach $143.5 billion in fiscal 2013, well above the record set in 2011. At the same time, the forecast for fiscal 2012 is revised upward to a near-record $136.5 billion. Since 2009, U.S. agricultural exports have made gains of 50 percent.

"When we look beyond the remarkable results, we see two strong storylines. The first is a story of American innovation and resiliency. U.S. agriculture as a whole is resilient thanks to producers' ability to innovate, reduce their debt and capitalize on expanding market opportunities. The second is a President who has laid the groundwork for success in rural America. Since 2009, under the President's National Export Initiative, the Obama Administration has renegotiated and implemented important trade agreements with South Korea and Colombia, expanded trade in organics with the European Union, removed hundreds of unfair barriers to trade for American companies, and provided businesses the credit, knowledge and connections they need to reach new markets.

"At the same time, the Obama Administration has invested in rural America's future with support for renewable energy and bio-based products that provide rural communities with a sure path toward a sustainable period of growth and innovation.

"Thanks to this successful partnership, U.S. agriculture is stronger today than at any time in our nation's history, supporting and creating good American jobs for millions.

"Congress needs to help ensure that this success continues by passing a comprehensive, multi-year Food, Farm and Jobs Bill that provides greater certainty for farmers and ranchers."



EPA Releases July Biodiesel Volume

The EPA said Thursday that 100 million gallons of biodiesel were produced in July, reporting year-to-date production of just under 658 million gallons through the end of the month.  Biodiesel production is reported under the EPA's Biomass-based Diesel category in the Renewable Fuel Standard (RFS). The EPA numbers show a total of 108 million gallons of Biomass-based Diesel for the month of July, but that figure also includes renewable diesel production.

Last year, the biodiesel industry 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.



NCGA Requests Extension for RFS Waiver Comments

Thursday, the Environmental Protection Agency started the 30-day comment period on the waiver request of the Renewable Fuel Standard.  Today, NCGA President Garry Niemeyer sent a letter to EPA Administrator Lisa Jackson requesting an additional 30-day extension, citing harvest and the uncertainty of this year's corn crop.

"Across the nation our members are beginning harvest, one of the busiest times of the year," Niemeyer wrote.  "Given the demands of harvest, I am concerned that the proposed 30-day comment period will not provide sufficient time for a thorough analysis of the proposed waiver and would hinder farmer participation in this important policy process.  Also, with the crop still in the field, it is too early to determine this year's final corn supply."

Currently, the comment period will close at the end of September.  After that time, EPA will have an additional 60 days to make a decision. NCGA plans to submit comments before the deadline.  During the previous comment period in 2008 for a partial waiver of the RFS, EPA received more than 15,000 submissions from throughout the country.



National FFA Organization chooses 74 chapters for local environmental grants

FFA chapters in 27 states and Puerto Rico that developed a plan to tackle an environmental issue in their communities now have the funding from a national grant to bring their ideas to life.

Chapters from 74 communities learned recently that they received up to $2,000 in a grant from the National FFA Organization's Living to Serve: Environmental Grant program and will begin their yearlong environmental project when the school year resumes. The Living to Serve: Environmental Grants are provided through funding from CSX, as a special project of the National FFA Foundation.

Each winning project includes plans to invest the time of FFA members, community members and local leaders in a service-learning project that tackles issues of environmental nature. One grant recipient chapter, the Wilson FFA Chapter in Wilson, Kan., has plans to increase the output of a local recycling program by 50 percent. They intend to educate the community with recycling awareness, as well as purchase and placing new recycling bins around the school. The FFA members will be tasked with maintaining the program and collecting recycled materials.

Another recipient of the LTS: Environmental Grant program was Connecticut’s Bloomfield FFA Chapter at the Harris Agriscience and Technology Center. FFA members there intend to tackle an invasive species – the Asian Longhorned Beetle – that is attacking local trees. Their program intends to first educate the local community about the insect via four community workshops, establish a student-run blog that explains the problem to fellow students and also survey 20 percent of their town’s trees to inspect for signs the beetles. The data will then by shared with the USDA to help slow or stop the beetle infestation. The National FFA Organization makes grant funds available for FFA chapters to develop service-learning projects that impact environmental issues in their community. Chapters may apply for up to $2,000 to support yearlong service-learning projects focused on developing and implementing projects that address local environmental needs. The service-learning method challenged members to identify, research, develop and implement solutions to needs within their school or community.

These projects illustrate the final line of the FFA motto ("Learning to Do, Doing to Learn, Earning to Live, Living to Serve") by encouraging FFA members to unite in service within their communities. The LTS: Environmental Grants take community service one step further to service-learning, which provides a meaningful way to apply leadership and education skills learned in school and FFA. More info about the grants is available online at http://www.ffa.org/LTSgrants.



Animal Ag Alliance Welcomes New Board Members

The Animal Agriculture Alliance is excited to announce additions to its board of directors and executive committee.

Mark Etienne (Potash Corporation), Billy Frey (Alltech), Scott Oler (Vance Publishing Corporation), Dr. Paul Matzat (Genus/PIC), and Dr. Kathy Simmons (National Cattlemen's Beef Association) recently joined the full list of 27 Board members, who each serve a term of three years. Jeff Cannon (Diamond V) and Dr. Jamie Jonker (National Milk Producers Federation) were added to the Board's Executive Committee.

Current chairman Dr. Chris Ashworth (Elanco Animal Health) also welcomed Paul Pressley (U.S. Poultry & Egg Association) as the Alliance's new Chair-Elect and Sherrie Niekamp (National Pork Board) as Treasurer.

All major sectors of animal agriculture are represented on the Alliance's Board of Directors, making the organization truly unique. The Alliance's legacy of leadership makes it the key organization for building meaningful coalitions across diverse industries to strategically address issues critical to the future of animal agriculture.

"We are pleased to welcome such knowledgeable and dedicated champions for agriculture to our Board," Alliance President and CEO Kay Johnson Smith said. "The future of the Alliance is in good hands."

Earlier this year, the Alliance launched its first Issues Management Committee. The standing committee unites stakeholders from across animal agriculture to address emerging challenges proactively. The next meeting will be held in mid-September. Alliance members are encouraged to inquire about participation.

"The Alliance's Issues Management Committee will bring together leaders from across agriculture to engage in strategic discussions about challenges and opportunities that could shape the future of the industry," Alliance chairman Dr. Chris Ashworth said. "The committee will ensure that the organization continues to serve as an effective, proactive voice."

A new Issues Management Listserv is also being created to help Alliance members and allied groups stay updated on current issues. Alliance staff will provide updates on topics of importance to the collective animal industries. If you would like to be added to the news listserv, contact Kerry Lynch.

The Alliance celebrates its 25th anniversary in 2012.



Vilsack Announces Grants to Support Beginning Farmers and Ranchers across 24 States

Agriculture Secretary Tom Vilsack today announced more than $18 million in grants to organizations across 24 states that will help beginning farmers and ranchers with the training and resources needed to run productive, sustainable farms. Under the Secretary's leadership since 2009, the U.S. Department of Agriculture (USDA) has driven a number of efforts meant to spur interest in agriculture and provide the necessary support to young, beginning and socially-disadvantaged producers. At the Farm Progress Show today in Boone, Iowa, Vilsack said investing in beginning farmers, ranchers and producers is not only a smart investment, but one that is vital to our nation's national and economic security.

"In the past few decades, U.S. agriculture has become the second most productive sector of the American economy thanks to farmers adopting technology, reducing debt, and effectively managing risk," said Vilsack. "Last year, America's farmers, ranchers and producers achieved record farm income and record exports. To protect and sustain these successes, we must continue to build an agriculture industry diverse and successful enough to attract the smartest, hardest-working people in the nation. These grants will help beginning farmers and ranchers overcome the unique challenges they face and gain knowledge and skills that will help them become profitable and sustainable."

USDA's National Institute of Food and Agriculture (NIFA) awarded the grants through its Beginning Farmer and Rancher Development Program (BFRDP) established through the 2008 Farm Bill. In his June 30, 2010 testimony before the Senate Committee on Agriculture, Nutrition & Forestry, the Secretary reminded Congress of the need to attract thousands of new producers in the coming years as American farmers and ranchers continue to age. Vilsack urged members of Congress to address this critical need when drafting a 2012 Food, Farm and Jobs bill. That legislation remains unfinished, while the current Farm Bill is set to expire on Sept. 30, 2012.

USDA makes BFRDP grants to organizations that implement education, training, technical assistance and outreach programs to help beginning farmers and ranchers, specifically those who have been farming or ranching for 10 years or fewer. At least 25 percent of the program's funding supports the needs of limited resource and socially disadvantaged farmers and ranchers, as well as farm workers who want to get a start in farming and ranching.

In the first year of USDA's Beginning Farmer and Rancher Development Program, three-year grants supported training for 5,000 beginning farmers and ranchers. In 2011, grants supported training for more than 38,000. For example, the Appalachian Sustainable Agricultural Project in Western North Carolina has directly assisted 865 farmers across 20 rural counties. Of the total participants, 46 percent were women. In addition, a group of seven organizations is working in rural communities in Arkansas and Oklahoma to educate, train, and foster mentorships for a variety of target groups, including military veterans. In the first year, the project created 32 mentorship opportunities and completed 12 internships with experienced farmers.

BFRDP will provide $18 million in funding this year, the fourth year of the program. Future funding is dependent on congressional reauthorization. For more information on the BFRDP program, and for a list of fiscal year 2012 awards, visit www.nifa.usda.gov.

Beginning farmers, by USDA definition, are individuals with 10 years or less experience operating farms. Beginning farmers are in all age ranges, racial and ethnic groups, and both male and female. Currently, 30 percent of principal operators of farms are 65 years old or more, while the average age of U.S. farmers has climbed from 54 in 1997 to 57 in 2007. Research by USDA's Economic Research Service (ERS) finds that the two most common and important challenges faced by beginning farmers are (1) having the market opportunity to buy or rent suitable land and (2) having capital to acquire land of a large enough scale to be profitable.

BFRDP is just one tool to address these challenges, along with greater access to credit including a new microloan program, a new land contract guarantee program, risk management education for beginning and socially disadvantaged producers, and new online resources such as www.start2farm.gov and the Know Your Farmer Compass.

Since 2009, USDA has provided 128,000 loans to family farmers totaling more than $18 billion. Between 2009-2011, the number of loans to beginning farmers and ranchers climbed from 11,000 to 15,000. More than 40 percent of USDA's farm loans now go to beginning farmers, while over 50 percent of loans went to beginning and socially disadvantaged farmers and ranchers during the same time.

With expanded access to credit, USDA is helping a new generation of farmers sustain and build upon what is now the most productive period in history for American agriculture. To that end, in May the Secretary proposed a new microloan program to help small and family operations progress through their start-up years with needed resources, while building capacity, increasing equity, and eventually graduating to commercial credit. The microloan proposal allows producers to apply for loans of less than $35,000 using simplified and streamlined procedures. The goal of the microloan program is to better meet the credit needs of small farm operations while making more effective use of FSA resources.

The Land Contract Guarantee Program provides a valuable tool to transfer farm real estate to the next generation of farmers. Guarantees will be offered to the owner of a farm who wishes to sell real estate through a land contract to a beginning farmer or a farmer who is a member of a socially disadvantaged group. In January, the Secretary expanded the Land Contract Guarantee Program from six states to all 50 states.

USDA's Risk Management Agency supports crop insurance education and outreach in 47 states to beginning, small, and historically underserved farmers and ranchers. From October 2010 through September 2011, a total of 77,000 farmers and ranchers attended educational sessions or were reached by direct mailing with educational information.



Wheat Risk Management: Supply Factors Worth Watching
Casey Chumrau, U.S. Wheat Associates Market Analyst

Wheat buyers everywhere should pay close attention now to world wheat supply to help manage their risk, even though three quarters remain in marketing year 2012/13. The Northern Hemisphere’s harvest provides some concrete supply information, but much uncertainty remains, so buyers should stay current and aware of factors affecting exportable supplies and prices.

World wheat production is the most basic, but important, factor shaping world supply. Prospects for the 2012/13 crop have deteriorated since the first estimates in May due to worsening weather conditions in several key production areas. The U.S. Department of Agriculture (USDA) currently estimates world output at 663 million metric tons (MMT), down from the May forecast of 678 MMT and below the five-year average of 666 MMT. The International Grains Council also lowered its August world production forecast to 662 MMT, down from its May estimate of 676 MMT.

The overall world production number, however, does not tell the entire story as individual outlooks for each key wheat-producing region look very different. For example, notwithstanding the publicity of a devastating drought, the United States will produce a wheat crop that is above average (reported on Aug. 16). In fact, USDA estimates production will increase 14 percent from last year to 61.7 MMT, greater than the five-year average of 59.7 MMT. Canada is also poised to have an excellent harvest. Statistics Canada expects 2012/13 Canadian wheat production to reach 27.0 MMT, up 7 percent from 2011/12 and the second highest production in 15 years.

USDA expects production in several other major wheat-producing countries to remain relatively close to last year’s output levels. When combined, the 27-country European Union is the world’s largest wheat producer. Both USDA and French-based Strategie Grains project 133 MMT for the 2012/13 EU wheat crop, just 3 percent lower than the prior year’s 137 MMT. The People’s Republic of China produces more wheat than any other single country in the world. According to USDA's projections, Chinese production will reach 118 MMT for the second consecutive year. USDA does expect a significant 8 percent (7.03 MMT) production increase in India. However, as reported here June 21, 2012, while China and India will account for more than 30 percent of total estimated world supplies in 2012/13, together they accounted for less than 1 percent of world exports on average for the past five years. 

In contrast, Black Sea region wheat production will fall far below last year’s record levels and accounts for much of the drop in world production. Harvest reports indicate that minimal snow cover and extremely cold temperatures caused a lot of damage to their winter wheat. Ukrainian agricultural consultancy UkrAgroConsult reduced its 2012/13 wheat production forecast to 14.2 MMT in August, lower than USDA’s August estimate of 15.0 MMT and 36 percent below last year’s output. USDA also expects Kazakhstan’s production to fall more than 50 percent from last year to 11.0 MMT.

Russia’s production and the government’s potential response arguably bear watching the most this marketing year. While the Russian government’s official 2011/12 wheat production estimate stands at 45.0 MMT, Russian agricultural analyst SovEcon reduced its estimate today to 38.0 MMT (see chart below). If realized, production would fall short of the 2010/11 crop of 41.5 MMT, which led Russia to impose a year-long export embargo. SovEcon also reported that the country’s exportable grain surplus could run out by November if the high export pace continues. As a result, many industry participants question whether another ban is on the horizon. Russian officials have repeatedly declared that an export ban is not an option in calendar year 2012, but the speculation alone is enough to create uncertainty in the world market.

Concerns about harvest in the Southern Hemisphere and ongoing U.S. drought conditions further add to market uncertainty. Argentina’s planted wheat acreage is at a 40-year low and USDA estimates Australian production down 12 percent, with weather conditions threatening to decrease that number even further. Soil moisture conditions in the United States will also affect winter wheat planting decisions over the next two months.

At this early stage in the marketing year, we must wait to see how these supply factors will turn out and influence the overall wheat market. The current level of uncertainty leads to price fluctuations and represents risk for world wheat buyers. For this reason, it is important to stay vigilant.



NFU, Feeding America Partner to Combat Hunger

National Farmers Union and Feeding America announced their partnership to help fight hunger throughout the United States with the Howard G. Buffet Foundation. For the second consecutive year, the foundation has pledged matching funds up to $50,000. According to Feeding America, one in six Americans struggles with hunger, including one-fifth of all children.

"We are honored to be working again with Feeding America to aid in ending hunger in America," said NFU President Roger Johnson. "Every dollar donated by Farmers Union members and their communities will be matched by the foundation, up to $50,000. We are up to the challenge and are excited to do our part to help this important cause again this year."

All member-driven donations go to food banks that serve hungry people in their communities. Feeding America's more than 200 member food banks serve 61,000 agencies across the United States that addresses hunger through emergency food assistance and programs.

Through Buffet's challenge, every dollar donated helps provide $17 worth of food and groceries to Americans in need. With the Buffett Foundation's matching grant, NFU members will see that number double to $34. If Farmers Union members can reach the goal set of $50,000, it will provide $1.7 million worth of food.

"Ensuring all Americans have a safe, reliable, affordable food supply is something that those of us in agriculture are very concerned about," said Johnson. "Currently, 37 million Americans are facing hunger, including 14 million children and 3 million seniors. Partnering up with Feeding America gives us an opportunity to lend our part in providing fresh food for families who need it most."

The campaign concludes on Dec. 15.



No Grain Export Ban for Russia

Russia's Agriculture Ministry said Thursday that it saw no imminent need to discuss an export ban on grain -- a move likely aimed at calming jittery global markets ahead of a closely watched government meeting to discuss weakening harvests.

Just two years ago, a Russian blanket ban on exports following a severe drought sent global grain prices soaring.

"The prices are fairly stable and can withstand inter-sectoral needs for crop production and for the production of animal products. There are large-scale stores of grain. There is no need to talk about it [a ban]," Deputy Agriculture Minister Ilya Shestakov said.

A meeting announced for Friday between Russia's Deputy Prime Minister Arkady Dvorkovich, who oversees farm policy, and Agriculture Minister Nikolai Fyodorov, has sparked fears that the government might be preparing to curb exports, sending ripples through global markets.

Mr. Shestakov did caution that the government could choose to intervene in the market in certain regions, but that it would likely not make any decision before December.

The Agriculture Ministry lowered its forecast last week for the 2012 grain harvest to 75 million metric tons. It had earlier projected a yield of 75 million to 80 million tons.

Mr. Dvorkovich has said the present situation is unlike that of 2010 and that the expected 75 million ton harvest and existing stockpiles should satisfy domestic requirements and leave 10 million to 12 million tons for export.



Pursuit of 300: The Road to Higher Yields

The Mosaic Company, Plymouth, Minn., introduced Pursuit of 300: The Road To Higher Yields at the Farm Progress Show in Boone, Iowa. The aspirational program uses U.S. farmers' real-world experiences as a launch pad for agronomists, researchers, retailers and industry stakeholders to discuss and create the next generation of cropping systems--and one day grow 300 bushels of corn per acre.

Centered on the digital journals of select corn growers in Illinois, Indiana, Iowa, Kansas, Minnesota and Nebraska, Pursuit of 300 chronicles innovative techniques used on each farm's 100-acre plot for a full production year. These Pursuit of 300 Farmers and collaborative partners will share their yield challenges and solutions at www.Pursuitof300.com, a one-stop digital hub for social media dialogue, agriculture news, case studies, and university, industry and retail resources. Watch the " Pursuit of 300: The Road To Higher Yields " video about Mosaic's passionate call to innovate, increase yield and help the world grow the food it needs.

For some corn growers, 300 bushels per acre might seem like an unattainable yield number. However, Pursuit of 300 aims to bring together all facets of the corn production chain to help the agriculture community conquer and surpass the 300-bushel barrier.

"For these farmers, the Pursuit of 300 is not just a test plot or a yield contest; it's 100 acres of soil, plants and resources managed to improve yields through innovative thinking, research, technology and practices that best suit their land," said Kevin Kimm, Senior Director of Marketing at The Mosaic Company. "We're interested in using Pursuit of 300 to help determine effective, full-farm techniques to boost future yield. It will be great to see how local yield innovation can improve agriculture on a global scale."

Since 1980, American farmers have increased corn production by 88 percent. Farms have improved the efficiency of nitrogen, phosphorus and potassium fertilizer use by 50 percent in corn production. The adoption of variable rate technologies, high-yield corn hybrids, micronutrient application, improved weed and disease control tools, and state-of-the-art agronomic practices has boosted yields to all-time highs--with experts from all parts of the industry contributing to the high-yield success story.