Wednesday August 1 Ag News

Johanns Introduces Bill to Ban EPA Aerial Surveillance

U.S. Senator Mike Johanns (R-Neb.) today introduced legislation which would ban the Environmental Protection Agency (EPA) from conducting aerial surveillance for one year. The bill comes after EPA failed to fully respond to multiple requests for a clear, complete account of the size and scope of its surveillance program.

“I want to be very clear, this legislation does not affect EPA’s ability to use traditional on-site inspections, but given EPA’s track record of ignorance about agriculture, if not downright contempt for it, farmers and ranchers do not trust this agency,” Johanns said in a speech on the Senate floor. “Until EPA takes a more common sense, transparent, open approach, we need to step on the brakes.

“This bill does that. It places a one-year moratorium on EPA from using aerial surveillance. This will give the agency time to come clean about its activities nationwide and make the case that these flights are an appropriate use of agency authority and taxpayer money.”

The legislation is similar to a bill introduced in the House of Representatives by Rep. Adrian Smith (R-Neb.).

The entire Nebraska delegation sent two letters to EPA Administrator Lisa Jackson earlier this summer requesting a full explanation of the agency's surveillance program. Administrator Jackson has refused to respond, instead delegating the response to a regional administrator who has been unable or unwilling to offer insight into the full national scope of the program.

Sen. Johanns’ amendment to the farm bill to ban EPA aerial surveillance received 56 bipartisan votes in the Senate in June, including 10 Democrats, though it did not receive the 60 votes required to pass.

Neither delegation letter, nor Johanns, has suggested EPA uses drones for its surveillance program, as some news outlets have reported.



Senators Introduce Bipartisan Legislation to Help Ag Producers, Small Businesses Manage Risk

U.S. Sens. Mike Johanns (R-Neb.), Mike Crapo (R-Idaho), Herb Kohl (D-Wis.), Jon Tester (D-Mont.), Pat Toomey (R-Pa.) and Kay Hagan (D-N.C.) today introduced a bill to exempt farmers, ranchers, manufacturers and small businesses from the margin requirements in the Dodd-Frank financial legislation. These exempted groups, known as end-users, use derivatives to insure against extreme price fluctuations for commodities integral to their business operations.

The bill introduced by the senators is identical to H.R. 2682, which passed the U.S. House of Representatives by a vote of 370 to 24, and an amendment Crapo and Johanns introduced to the farm bill, but not included in the final package. It clarifies current law by making explicit that commercial end-users are not subject to costly margin requirements imposed by financial regulators.

Johanns said, “Farmers, ranchers and businesses are responsibly protecting themselves, their families and their customers against risks like drought, wildfires or fluctuations in fuel prices – not participating in the type of day-trading this regulation was meant to target. Our bipartisan legislation makes that clear and protects these businesses from burdensome regulations.”

Crapo said, “The Senate needs to quickly pass this bi-partisan legislation to affirm Congressional intent by providing an explicit exemption from margin requirements for non-financial end-users that qualify for the clearing exemption. Not only does the economy benefit from this type of hedging activity, but the Federal Reserve is comfortable making this exemption explicit and it overwhelmingly passed in the U.S. House of Representatives.” 

Kohl said, “This legislation makes certain that American manufacturers are not burdened by legislation that was intended to regulate Wall Street.  A clear exemption for end-users will allow businesses to lock in prices for supplies they need to operate their businesses without having to tie up their available capital.”

Tester said, “This bill ensures that Montana farmers and ranchers can continue to effectively manage risks, protect their livelihoods, and provide for their families. Smart risk management strengthens our economy, and this bill clarifies Congress’ intent to give small businesses the flexibility and certainty they need to successfully run their businesses.”

Toomey said, “There is wide bipartisan agreement that subjecting manufacturing companies to end-user regulations will hurt job creation by diverting capital they would otherwise use to invest and hire new employees. This bill will protect our manufacturing companies from unnecessary regulations, and I hope we can build on the bipartisan momentum to pass this important legislation.”

Hagan said, "This bipartisan legislation will ensure that we are not imposing unnecessary costs on main street businesses that use derivatives to manage price fluctuations in commodities that they use to run their business and build their products."

End-users are the final user of a good or product. Ranchers, for example, could purchase derivatives contracts on corn or hay in advance of the harvest to protect themselves against unforeseen market fluctuations. Dodd-Frank included margin requirements forcing non end-users and those speculating on market prices to cover the associated risks with their derivative purchases.

Dodd-Frank included an exemption for end-users based on the low risks they pose to the financial system.  Since implemented, there has been a debate over how broadly this exemption would apply. The Commodity Futures Trading Commission and Securities and Exchange Commission issued a joint rule last year that would capture many end-users in these new regulations. 



Emergency Haying and Grazing Acres Expanded

Due to the current extreme drought conditions across Nebraska, the USDA announced Wednesday the authorization of emergency haying and grazing on the following CRP practices:
- CP8A - Grass Waterway-Noneasement
- CP23 - Wetland Restoration
- CP23A - Wetland Restoration, Non-Floodplain
- CP25 - Rare and Declining Habitat
- CP27 - Farmable Wetlands Pilot Wetland
- CP28 - Formable Wetlands Pilot Buffer
- CP37 - Duck Nesting Habitat
- CP41 - FWP Flooded Prairie Wetlands

"This is a big move by USDA.  While this latest announcement does not represent a tremendous amount of acres, it does increase the pool of available acres for forage.  We are appreciative that USDA is recognizing the reach of this devastating drought” said Nebraska Cattlemen Farmer/Stockman Chairman Doug Parde of Sterling Nebraska.

Prior to hay and graze practices, producers must go to their local FSA office to sign the applicable forms.  Unauthorized haying and grazing will result in a fine to the producer(s).

CRP participants may sell, donate, barter or otherwise exchange any hay or grazing rights.  However, the haying and grazing privilege may be leased but not subleased.  A 10% per acre reduction will be applied to acres hayed or grazed.

Nebraska Cattlemen is very appreciative of USDA’s response to the extreme drought conditions that many Nebraska farmers and ranchers are currently facing.



Spreadsheet Calculates Cost of CRP Hay and Grazing

With the announced Aug. 2 opening of Conservation Reserve Program (CRP) ground in all Iowa counties for emergency haying and grazing for certain practices, producers may be wondering whether to use their land for those purposes. The Iowa Beef Center at Iowa State University is offering a new spreadsheet that estimates hay cost per bale or ton and grazing cost per day for CRP forage.

CRP pasture and hay won’t be high quality, but it can be used to extend other feed resources and help reduce pressure on other pasture and hay acres, according to ISU Extension and Outreach beef program specialist Joe Sellers, who developed the spreadsheet.

“The actual yield and quality of CRP tracts will vary, but in surveys conducted in past years, the average nutrient content has been 9.7 percent crude protein and 50.9 percent TDN,” Sellers said.

The spreadsheet calculates the forage cost per bale or ton of hay and the cost per grazing day, by accounting for the cost of 10 percent of lost CRP payment, the anticipated harvest cost and yields, he said. This tool will be useful in evaluating CRP as a feed alternative for cow-calf producers with short pastures and limited hay availability.

IBC staff member Garland Dahlke worked with Sellers to create the CRPhay2012 spreadsheet (http://www.iowabeefcenter.org/Software/CRPhay2012.xls), available at no charge from the IBC website.

For assistance balancing beef cow diets with low quality hay, producers should contact their local ISU Extension beef program specialist.

Those interested in using CRP ground for haying or grazing must follow Farm Service Agency rules and should direct all questions about CRP availability and the request process to their local FSA office.



Farm Bureau Asks Delegation To Consider Livestock Disaster Relief

Nebraska Farm Bureau is asking members of Nebraska's Congressional delegation to consider separating  livestock disaster assistance programs from the farm bill so they can be passed on their own.

"Our clear preference is for the House to pass its version of the farm bill and then work with the Senate to finalize a new, full five-year farm bill that provides certainty for Nebraska farmers. However, we recognize that polarized politics in Washington may prevent this from happening and our livestock producers need access now to disaster assistance programs, due to the extreme drought that has left livestock producers with few options," Nebraska Farm Bureau President Steve Nelson said July 31.

In a letter to the Congressional delegation, Nelson noted the federal crop insurance program is designed to aid crop farmers dealing with drought. However, assistance for livestock farmers is dependent on livestock disaster assistance programs. Funding for those programs expired toward the end of last year.

"While we would ideally like to see the livestock programs reauthorized as part of a new farm bill, Nebraska's livestock producers are facing life-altering decisions about the future of their farms and ranches," Nelson said.

According to Nelson, the carryover effect of hay and other forage being sent last year to Kansas, Oklahoma and Texas to assist with drought has left Nebraska with shortened supplies. This, coupled with the rapid deterioration of pasture and range land, has put many cow-calf producers in the position of scrambling to find expensive feed to retain their herds or in a position of reducing or even completely liquidating cow herds.

"These are very challenging times for those who raise livestock and it's important we consider all available options to help our state's livestock farmers," Nelson said.

Farm Bureau's letter to the delegation was sent to share the organization's position on a proposed one-year extension of the 2008 Farm Bill that is expected to be discussed in the House on Aug.1. Farm Bureau is opposed to the one-year extension proposed in the House.



View ISU Extension Webinar on Livestock and Crop Options During Drought

Iowa crop and livestock producers dealing with drought–related issues heard about options available to them from Iowa State University Extension and Outreach specialists during a webinar Wednesday, July 25. Presentations made by the Extension crops, livestock and farm management teams were recorded and are now available on the ISU Extension and Outreach Dealing with Drought Web page, http://www.extension.iastate.edu/topic/recovering-disasters at the bottom of the meetings list. 

Segments were recorded by general topic:
-    Introduction and weather
        Introduction – John Lawrence, Agriculture and Natural Resources Extension Director
        Current weather and forecast – Elwynn Taylor, Agronomy
-    Crops
        Soybeans: What to look for to monitor yield potential – Andy Lenssen, Agronomy
        Corn: What to look for to monitor yield potential – Roger Elmore, Agronomy
        Diseases and drought – Alison Robertson, Plant Pathology and Microbiology
        Alternative crops for forage, soybeans for forage – Dan Morrical, Animal Science
-    Cattle management
        Stretching stressed pastures and CRP hay value – Dan Loy, Animal Science and Iowa Beef Center
        Drought stressed corn silage: harvest, storage and feed value – Lee Kilmer, Animal Science
        Nitrate risk in silage and testing, treatment and other risks – Doug Snider, Vet Diagnostic and Production Animal Medicine
-    Economic considerations – Chad Hart, Economics
        Valuing drought stressed silage and logistics of CRP
        Calculating crop insurance
        Forward pricing grain and talking to the buyer

Questions from webinar participants were answered by presenters and locally by program specialists facilitating the program at each site. Frequently asked questions are being posted on the Dealing with Drought – Frequent Asked Questions Web page.



Small Beef Feedlot Manure Control Tour set for Northwest Iowa

Iowa State University Extension and Outreach and the Iowa Beef Center will host a three-site tour for beef producers in Lyon County early next month. Extension ag engineer Kris Kohl said the northwest Iowa half-day tour on Aug. 7 will provide an opportunity for feedlot operators to look at different manure control structures and management options for small open feedlots, and hear from extension staff on costs associated and related to each system.

“Two of the locations feature effluent pumping and are part of a demonstration project funded by the Iowa Beef Center at Iowa State,” Kohl said. “The third shows an alternative technology of a settling basin with grass infiltration strip, and is funded with EQIP dollars.”

The tour starts at 1 p.m. at the Brian Mogler farm located two miles south of Lester at 1695 Dove Ave. (K30). This location demonstrates how producers can collect manure effluent below settling basins and pump the effluent to nearby cropland, redirecting the nutrients away from water sources.

The second stop begins at approximately 2:15 p.m. at the Perry Mogler farm located at 2027 100th St., Larchwood. This site demonstrates the use of a settling basin with a grass infiltration strip.

The third stop will start at approximately 3:30 p.m. at the Gary Twedt farm located at 1652 Beech Ave., Larchwood. The Twedt farm will demonstrate an effluent pumping system.

The pumping demonstrations at the first and third sites are part of an IBC-funded project to look at the cost-effectiveness of using pumps to manage effluent from settling basins at small feedlots under the permit threshold size of 1,000 beef animals. Iowa law requires all feedlots, regardless of size, to settle the manure solids coming off a feedlot. Once the solids are settled, the effluent can be released as long as it does not cause a water quality violation. One effective solution is to use small pumps to divert the effluent runoff from drainage pathways and distribute it on crop fields where growing crops can use the water and the nutrients.

This tour also is supported in part by the Water Quality Initiatives for Small Iowa Beef and Dairy Feedlot Operations. The primary objectives of this project are to 1) educate producers to better understand the pollution potential of open feedlots; 2) train producers to accurately assess the water pollution potential of their feedlots; 3) assist producers to identify and evaluate appropriate runoff control alternatives; and 4) provide technical assistance to producers to implement solutions that improve the environmental performance of their feedlots. More information about this initiative can be found at: http://www.agronext.iastate.edu/immag/smallfeedlotsdairy.html.



New Publication Helps Dairy Farmers Conserve Energy

Managing and maintaining dairy equipment to improve energy efficiency is challenging, especially cooling milk throughout the hot summer months. A new publication from Iowa State University Extension and Outreach explains three key factors for reducing energy consumption on Midwestern dairies.

“Energy Efficiency for Dairy Milking Equipment” (PM 2089X) is available to download from the Extension Online Store, https://store.extension.iastate.edu/.

“A dairy can reduce its energy costs by maintaining milking and cooling equipment for optimal performance,” said Dan Huyser, ISU Extension agricultural engineer. “When replacing worn equipment, consider options such as milk precoolers, refrigeration heat recovery, scroll compressors or variable frequency drives on vacuum pumps.”

The publication addresses energy consumption for Midwestern dairies, particularly equipment needed for milking and milk storage. Dairy farms typically need more energy for day-to-day operations than other farmsteads, especially electricity for milking the herd and for cooling and storing the milk. Milk precoolers, scroll compressors and variable frequency drives can improve on-farm energy efficiency during daily operations.

“Modifications to equipment and plans for dairy expansion are not taken lightly, especially in today’s market” said Dana Petersen, program coordinator for ISU Farm Energy. “Producers should carefully consider the most energy efficient equipment to meet the existing — and future — needs of the dairy.”

For more tips on energy efficiency around the farmstead, visit http://farmenergy.exnet.iastate.edu. 



House Votes to Extend Estate Tax Relief Through 2013

The U.S. House of Representatives today voted to extend the current tax code for another year. This includes keeping the estate tax, known as the death tax, at its current level of 35 percent for estates worth more than $5 million per individual and $10 million per couple.

Tackling the death tax is the top priority for the National Cattlemen’s Beef Association (NCBA), the oldest and largest beef industry organization in the United States. The death tax directly affects family-owned small businesses, such as farms and ranches, because of the burden it places on families hoping to pass their business on to the next generation.

Even though full repeal of the death tax is the top priority for NCBA, Kent Bacus, associate director of legislative affairs, says the plan passed by the House today is a step in the right direction.

“The good news is that the House-passed tax package provides a continuation of current estate tax relief through 2013. NCBA encourages both the House and Senate to keep the estate tax provision in any final tax package,” said Bacus.

If Congress fails to act by the end of 2012, the death tax will revert to a $1 million exemption level at a 55 percent tax rate.

“Most farmers and ranchers would trip the $1 million threshold on land values alone. Land values are through the roof and all of the assets it takes to operate a farm or ranch, including livestock, farm machinery and more, would hit the majority of farm and ranch families throughout the country,” said Bacus. “This is not a tax on the wealthy. We must find permanent relief or risk taking land out of production agriculture, threatening our ability to provide food for U.S. consumers and abroad.”

The House is scheduled to discuss the future of comprehensive tax reform on Thursday.

“If Congress is serious about comprehensive tax reform, it must provide permanency in the tax code and provide permanent relief from the death tax. Farmers and ranchers already face unpredictable conditions such as the weather and input costs, but the tax code should not be an unpredictable situation they should face,” said Bacus. “Until full repeal of the death tax can be achieved, at minimum, Congress should maintain the current estate tax relief.”



What the Quality Audit Data Means to Producers

What does the quality audit data mean to producers? Dr. John Paterson, executive director of Producer Education for the National Cattlemen’s Beef Association, contractor to the Beef Checkoff Program, joins us for more about the checkoff-funded 2011 National Beef Quality Audit, the numbers, and what those numbers mean to the 750,000 producers across the country. He starts by addressing injection sites in dairy-beef.

Paterson says, “We’ve made great progress in getting rid of injection site blemishes on the beef side, bruising, horns, things like that. But there are some areas we need to work on and one of the areas we need to work on is on the dairy side – the dairy beef side – in that too many producers are injecting in the rear leg. And that’s causing injection site blemishes. We’ve got to somehow work with those guys in production settings:  Guys we’ve got to move those injections closer to the neck where the rest of the beef business is doing that.”

Customers are concerned about hormones, antibiotics and growth-promoting technologies. Paterson says consumers want to know more about what beef producers are doing on the farm and that starts with record-keeping.  “We don’t write down anything and especially when it comes to the use of antibiotics which is on everybody’s mind … when did you give the antibiotic and did you follow the withdraw on that? Now, the feedlots do a wonderful job on that, but on the cow/calf side, we don’t write enough things down. And we’re here to help you through – Beef Quality Assurance – we’ll give you the forms, the paperwork, something that’s easy for you to keep track of that.”

Paterson tells us what one of the biggest data points was that jumped out after reviewing all the research.  He says, "This issue of traceability. I’d been told by some old cowboys: if this is important, the market will let it happen. And five years ago, three percent of our cattle had electronic identification; today it’s over 20 percent. So the technology is out there. Why is the technology out there? The market said, ‘we’ll pay you for it if you do this right.’ And so to me, personally, that was the biggest surprise and I was pleased to see that if there’s value in it, our ranchers will respond to it.”



Vilsack Announces New Drought Assistance, Designates an Additional 218 Counties as Primary Natural Disaster Areas

Agriculture Secretary Tom Vilsack today announced two new pieces of disaster assistance for farmers and ranchers impacted by the nation's worsening drought. First, Vilsack is expanding emergency haying and grazing on approximately 3.8 million acres of conservation land to bring greater relief to livestock producers dealing with shortages of hay and pastureland. Second, the Secretary announced that crop insurance companies have agreed to provide a short grace period for farmers on insurance premiums in 2012. As a result, farming families now have an extra 30 days to make payments without incurring interest penalties on unpaid premiums.

Earlier in the day, Vilsack signed disaster designations for an additional 218 counties in 12 states as primary natural disaster areas due to damage and losses caused by drought and excessive heat. Counties designated today are in the states of Arkansas, Georgia, Iowa, Illinois, Indiana, Kansas, Mississippi, Nebraska, Oklahoma, South Dakota, Tennessee, and Wyoming. More than half (50.3 percent) of all counties in the United States have been designated disaster areas by USDA in 2012, mainly due to drought.

"President Obama and I will continue to take swift action to get help to America's farmers and ranchers through this difficult time," said Vilsack. "The assistance announced today will help U.S. livestock producers dealing with climbing feed prices, critical shortages of hay and deteriorating pasturelands. Responding to my request, crop insurance companies indicated that producers can forgo interest penalties to help our nation's farm families struggling with cash flow challenges. The Obama Administration intends to continue helping those who farm or ranch and live and work in rural America through this period of hardship."

Emergency Haying and Grazing
In response to the expanding drought, Secretary Vilsack today announced that livestock producers and other participants in the Conservation Reserve Program (CRP) will now be able to hay and graze acres that have been ineligible in the past. Many of these additional acres have wetland-related characteristics and are likely to contain better quality hay and forage than on other CRP acres. There are approximately 3.8 million acres that will now be eligible for emergency haying and grazing, subject to certain conditions. Haying and grazing may only occur under strict compliance rules to help minimize impacts on these sensitive specialty practices. In addition, USDA will conduct follow-up monitoring and evaluation of these opened CRP areas to study the effects of the drought and USDA's emergency haying and grazing actions. Producers should contact their local Farm Service Agency offices for additional information.

Federal Crop Insurance
Secretary Vilsack announced today that crop insurance companies have agreed to provide a short grace period for farmers on insurance premiums in 2012. To help producers who may have cash flow problems due to natural disasters, Secretary Vilsack sent a letter to crop insurance companies asking them to voluntarily defer the accrual of any interest on unpaid spring crop premiums by producers until November 1, 2012. In turn, to assist the crop insurance companies, USDA will not require crop insurance companies to pay uncollected producer premiums until one month later.

During the 2012 crop year, USDA has designated 1,584 unduplicated counties across 32 states as disaster areas—1,452 due to drought—making all qualified farm operators in the areas eligible for low-interest emergency loans. The U.S. Drought Monitor indicates that 66 percent of the nation's hay acreage is in an area experiencing drought, while approximately 73 percent of the nation's cattle acreage is in an area experiencing drought. During the week ending July 29, USDA's National Agricultural Statistics Service reported that U.S. soybeans rated 37 percent very poor to poor, matching the lowest conditions observed during the drought of 1988. NASS also reported that 48 percent of the U.S. corn crop was rated very poor to poor, while 57 percent of the nation's pastures and rangeland are rated very poor or poor condition.

Last week, President Obama met with Secretary Vilsack and members of his Cabinet to discuss additional steps the Administration could take to help farmers, ranchers and business owners manage and recover from the current drought. Later in the week, President Obama directed Secretary Vilsack to convene a meeting of the White House Rural Council to update members and stakeholders on the Administration response to the drought. Vilsack will update Rural Council members and stakeholders again next week on new steps taken by the Administration to combat the drought.

Under Secretary Vilsack's leadership, USDA has announced a variety of steps to get assistance to producers impacted by the worsening drought, including:
-    Allowing additional acres under CRP to be used for emergency haying or grazing. The action allows lands that are not yet classified as "under severe drought" but that are "abnormally dry" to be used for haying and grazing.
-    Allowing producers to modify current Environmental Quality Incentives Program (EQIP) contracts to allow for grazing, livestock watering, and other conservation activities to address drought conditions.
-    Authorizing haying and grazing of Wetlands Reserve Program (WRP) easement areas in drought-affected areas where haying and grazing is consistent with conservation of wildlife habitat and wetlands. USDA has expedited its authorization process for this haying and grazing.
-    Encouraging crop insurance companies to provide a short grace period for farmers on unpaid insurance premiums, as some farming families can be expected to struggle to make ends meet at the close of the crop year.
-    Reducing the emergency loan interest rate from 3.75 percent to 2.25 percent.
-    Lowering the reduction in the annual rental payment to producers on CRP acres used for emergency haying or grazing from 25 percent to 10 percent in 2012.
-    Simplifying the Secretarial disaster designation process and reduced the time it takes to designate counties affected by disasters by 40 percent.

USDA agencies have been working for weeks with state and local officials, as well as individuals, businesses, farmers and ranchers, as they begin the process of helping to get people back on their feet. The U.S. Small Business Administration has also made 63 agency declarations in 33 states covering 1,675 counties, providing a pathway for those affected to apply for an Economic Injury Disaster Loan (EIDL). SBA's EIDLs are available to small, non-farm businesses and small agricultural cooperatives that are economically affected by the drought in their community.

Also today, U.S. Department of Transportation Secretary Ray LaHood will convene a call with states to listen and discuss the ways in which U.S. DOT can work with Governors and State Departments of Transportation to help communities impacted by the drought. Secretary LaHood will be joined by both Anne Ferro, Administrator of the Federal Motor Carriers Safety Administration and Greg Nadeau, Deputy Administrator for the Federal Highways Administration.

The Obama Administration, with Agriculture Secretary Vilsack's leadership, has worked tirelessly to strengthen rural America, maintain a strong farm safety net, and create opportunities for America's farmers and ranchers. U.S. agriculture is currently experiencing one of its most productive periods in American history thanks to the productivity, resiliency, and resourcefulness of our producers. A strong farm safety net is important to sustain the success of American agriculture. USDA's crop insurance program currently insures 264 million acres, 1.14 million policies, and $110 billion worth of liability on about 500,000 farms. In response to tighter financial markets, USDA has expanded the availability of farm credit, helping struggling farmers refinance loans. In the past 3 years, USDA provided 103,000 loans to family farmers totaling $14.6 billion. Over 50 percent of the loans went to beginning and socially disadvantaged farmers and ranchers.

Primary counties and corresponding states designated as disaster areas today:

Iowa
Jackson
Jasper
Jefferson
Johnson
Jones
Keokuk
Lee
Linn
Lucas
Mahaska
Marion
Marshall
Monroe
Muscatine
Polk
Poweshiek
Scott
Story
Tama
Van Buren
Wapello
Wayne

Nebraska
Antelope
Arthur
Banner
Blaine
Brown
Buffalo
Box Butte
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
Madison
McPherson
Morrill
Perkins
Phelps
Pierce
Platte
Rock
Scotts Bluff
Sheridan
Sioux
Stanton
Thomas
Wayne
Wheeler



Farm Bureau PAC Names Deb Fischer ‘Friend of Agriculture’

Deb Fischer has been named a “Friend of Agriculture” by NFBF-PAC, Nebraska Farm Bureau’s political action committee. Fischer is the Republican candidate seeking election to the U.S. Senate.

“We are extremely excited to provide our support and backing to Deb Fischer as she seeks election to the U.S. Senate. She was the overwhelming choice of our members as we worked through our grassroots endorsement process,” said Nebraska Farm Bureau President Steve Nelson. “Our endorsement is based on numerous factors, but the one that stands above all is that Deb Fischer truly understands the needs of farmers and ranchers as she is the only candidate who has lived and worked in agriculture.”

Fischer has a proven track record in working to meet the needs of agriculture and Nebraska’s rural communities, said Nelson. “Her record of working for farmers, ranchers and Nebraska’s rural interests in the Nebraska Legislature is unmatched. She’s carried the torch on numerous issues of importance to Farm Bureau members and farmers and ranchers everywhere across our state. In doing so she has never backed away from difficult issues. She has been a strong voice for agriculture in working to provide property tax relief, helping managing our states water resources and leading the way to ensure Nebraska continues to have a strong roads infrastructure.”

According to Nelson, Fischer will bring the type of work ethic, integrity, values and common sense traits that are so badly needed in Washington today. “As a life-long Nebraskan, with nearly 40 years of real-life agriculture experience, Deb understands the needs of farm and ranch families and she knows the challenges that face agriculture. Now more than ever we need to send someone to Washington who not only understands our needs but whose priority is protecting the interests of Nebraska’s farm and ranch families.”   

In addition to understanding agriculture, Fischer embraces many of the core beliefs shared by most Nebraskans, Nelson said. “Her commitment to less government, providing tax relief, and having a strong economy as the basis for job creation are important to all Nebraskans.”

Deb Fischer is a true friend of agriculture and we can think of no other person in Nebraska who is better suited and possesses the leadership skills necessary to be the voice for farm and ranch families in the U.S. Senate, said Nelson.

The Friend of Agriculture designation is given to selected candidates for public office based on their commitment to and positions on agricultural issues, qualifications and previous experience, communication abilities and their ability to represent the state.



NE Farm Bureau PAC Names Jeff Fortenberry ‘Friend of Agriculture’

Rep. Jeff Fortenberry has been named a “Friend of Agriculture” by NFBF-PAC, Nebraska Farm Bureau’s political action committee. Fortenberry is a candidate for re-election to represent Nebraska’s First Congressional District.

“Congressman Fortenberry has been a strong proponent of biofuels and renewable energy production, including wind and biomass, and he has also supported value-added agricultural opportunities and new food markets,” said Mark McHargue of Central City, chairman of NFBF-PAC and first vice president of Nebraska Farm Bureau. “As a member of the House Agriculture Committee Fortenberry has also been instrumental in working to advance a House version of the 2012 Farm Bill which is greatly appreciated and much needed,” McHargue said.

According to McHargue, Fortenberry has a strong grasp of agriculture within his district. “The First Congressional District is diverse and largely rural, and Rep. Fortenberry understands the importance of agriculture to the district and the state. He’s been a member of the House Agriculture Committee since coming to Congress in 2005 and now serves as the chairman of the Department Operations, Oversight, and Credit Subcommittee. The subcommittee has jurisdiction in the oversight of the United States Department of Agriculture (USDA), one of the federal government’s largest agencies,” McHargue said.



NEFB-PAC Names Adrian Smith 'Friend of Agriculture'

Rep. Adrian Smith has been named a "Friend of Agriculture" by NFBF-PAC, Nebraska Farm Bureau's political action committee. Smith is a candidate for re-election to represent Nebraska's Third Congressional District.

"Congressman Smith has a thorough knowledge of Nebraska agriculture and how it is affected by federal policies and regulations," said Mark McHargue of Central City, chairman of NFBF-PAC and first vice president of Nebraska Farm Bureau. "He has supported many initiatives that have directly benefited Nebraska agriculture."

Smith has worked to strengthen rural communities and open up new markets for American agriculture products, McHargue said. "He's worked to increase Nebraska's agriculture exports by supporting Free Trade Agreements with Colombia, Panama and South Korea and as a member of the House Committee on Ways and Means Adrian played a key role in helping secure their passage."

He also recognizes how excessive regulation hurts Nebraska's family farmers and ranchers, McHargue said. "Whether it's been the long arm of EPA and their aerial flyovers of livestock farms or the Department of Labor's proposed rules to regulate children working on farms, Adrian has been very supportive of farm and ranch interests facing heavy handed federal regulations."

"Smith is also a co-chair of the Modern Agriculture Caucus in the House and a co-chair of the Congressional Rural Caucus," McHargue said.



USDA Announces Commodity Credit Corporation Lending Rates for August 2012

The U.S. Department of Agriculture's Commodity Credit Corporation (CCC) today announced interest rates for August 2012. The CCC borrowing rate-based charge for August 2012 is 0.250 percent, unchanged from 0.250 in July 2012. For 1996 and subsequent crop year commodity and marketing assistance loans, the interest rate for loans disbursed during August 2012 is 1.250 percent, unchanged from 1.250 in July 2012.

In accordance with the 2008 Farm Bill, interest rates for Farm Storage Facility Loans approved for August 2012 are as follows, 1.000 percent with seven-year loan terms, down from 1.125 in July 2012; 1.625 percent with 10-year loan terms, unchanged from 1.625 in July 2012 and; 1.875 percent with 12-year loan terms, unchanged from 1.875 percent in July 2012.



USDA APHIS Removes Barriers to Trade and Expands Market Access for U.S. Farm Exports

The U.S. Department of Agriculture's (USDA) Animal and Plant Health Inspection Service (APHIS) has worked in conjunction with federal, international and industry partners to arrange for the release of 209 shipments of American products valued at more than $39 million in 2012. The goods had been detained at foreign ports of entry pending resolution of various animal and plant health questions. In addition, APHIS has helped to open or maintain more than $51 million in overseas markets for U.S. agricultural products. Under Agriculture Secretary Tom Vilsack's leadership, USDA has aggressively worked to expand export opportunities and reduce barriers to trade, helping to push agricultural exports to record levels since 2009. The work of USDA agencies, including APHIS, and other federal partners helps to prevent and remove unwarranted barriers to trade, saving and securing American jobs and businesses, and supporting President Obama's goal of doubling American exports by the end of 2014.

"APHIS works diligently every day to help ensure overseas markets for our country's agricultural products," said Rebecca Blue, deputy undersecretary for marketing and regulatory programs. "In the past six months, APHIS has negotiated to reopen the Chinese market for U.S. log exports in a six-month pilot program, facilitated the first export of 1,400 cattle to Angola, helped California producers ship their stonefruit to important markets in Mexico, and arranged for the release of six shipments of cherries and $1.5 million of cotton held at Chinese ports."

APHIS addresses animal and plant health concerns that limit the export of American agricultural goods and negotiates with international trade partners to remove trade barriers and resolve trade-related issues. APHIS personnel stationed in countries overseas work closely with foreign regulatory counterparts to exchange information on agricultural health issues and ensure the safe trade of agricultural products. By working on these technical trade matters with overseas officials, as well as within international standard-setting organizations, APHIS personnel are in key positions to support U.S. agricultural exports and ensure that trading partners adhere to agreed-upon standards.

When American shipments are detained at foreign ports of entry, APHIS and other USDA officials negotiate with international officials to resolve the issue. APHIS' team of technical experts certify that U.S. animal and plant products are free of pests and diseases and meet the entry requirements set by our trading partners. In negotiations to protect, expand, and open new trade markets, APHIS advocates on behalf of U.S. agricultural industries to ensure a free flow of American agricultural products in international markets.

APHIS has launched a new website that will contain trade related information and accomplishments. The website will help exporters find information on APHIS's services, including trade information and regulations. It also serves as the news hub for APHIS trade updates, with links to trade-related feeds from the APHIS' Newsroom, Twitter, and the USDA blog. The website is located at: www.aphis.usda.gov/newsroom/hot_issues/trade/index.shtml

U.S. agriculture is currently experiencing one of its best periods in history thanks to the productivity and resourcefulness of America's producers. Today, net farm income is at near record levels while debt has been cut in half since the 1980s. Overall, American agriculture supports 1 in 12 jobs in the United States and provides American consumers with 83 percent of the food we consume, while maintaining affordability and choice. Strong agricultural exports contribute to a positive U.S. trade balance, create jobs, boost economic growth and support President Obama's National Export Initiative goal of doubling all U.S. exports by the end of 2014.



Midwestern Governors Association urges automakers to support B20
     
The Midwestern Governors Association has formally asked every major diesel engine and vehicle manufacturer to support the use of biodiesel blends of at least 20 percent (B20) in all diesel-powered equipment.

The Iowa Biodiesel Board praised the move as clearing the road for greater consumer access to cleaner burning biodiesel nationwide. The effort was championed by Iowa Governor Terry Branstad, who serves as Chair of the Midwestern Governors Association.

“As Governors, we see increasing the use of biodiesel as an important part of diversifying our nation’s energy portfolio,” the MGA said in a letter sent to 23 automakers and Original Equipment Manufacturers. “We will continue to encourage policies that will expand consumer access to higher blends of biodiesel.”

Other reasons for the governors’ urging of B20 support outlined in the letter include:
-    More than 13 states, including the MGA states of Iowa, Illinois and Minnesota, are encouraging use of higher biodiesel blends from B2–B20 through a variety of state policies. As biodiesel use grows in the marketplace, there are significant advantages to ensuring all diesel vehicles are compatible with higher blends.
-    The use of biodiesel blends in today’s clean diesel engines provides significant benefits to the environment, while also reducing our nation’s dependence on foreign oil.
-    The federal Renewable Fuels Standard-2 requires the use of higher levels of advanced biofuels over the next 10 years, and could eventually provide a market for biodiesel as high as 5 billion gallons per year.

Biodiesel is the nation’s first commercial scale fuel produced across the U.S. to meet the Environmental Protection Agency’s definition as an advanced biofuel, and universal acceptance of B20 would help fulfill that RFS-2 requirement.

“This united call to action from 10 governors is an extraordinary show of support for B20, and we commend them for their bold leadership,” said Randy Olson, executive director of the Iowa Biodiesel Board.

According to the National Biodiesel Board, more than 65 percent of the diesel engine and vehicle manufacturers selling equipment in the U.S. already publicly support the use of B20 biodiesel blends.

“It is our firm belief that companies that support B20 will capture market share from those companies that choose not to support B20—especially in the Midwest,” the letter said.

MGA’s nine participating states are Iowa, Illinois, Indiana, Kansas, Michigan, Minnesota, Missouri, Ohio and Wisconsin.

Home to 13 biodiesel plants, Iowa is the leading biodiesel producing state. In 2011, the state produced about 175 million gallons of biodiesel, an impressive one-sixth of the nation’s total production.



Weekly Ethanol Production for 7/27/2012

According to EIA data, ethanol production averaged 809,000 barrels per day (b/d) – or 33.98 million gallons daily. That is up 13,000 b/d from the week before. The 4-week average for ethanol production stood at 807,000 b/d for an annualized rate of 12.37 billion gallons.

Stocks of ethanol stood at 19.4 million barrels. Gasoline demand for the week averaged 370.4 million gallons daily.

Expressed as a percentage of daily gasoline demand, daily ethanol production was 9.17%.

On the co-products side, ethanol producers were using 12.266 million bushels of corn to produce ethanol and 90,287 metric tons of livestock feed, 80,491 metric tons of which were distillers grains.  The rest is comprised of corn gluten feed and corn gluten meal.  Additionally, ethanol producers were providing 4.21 million pounds of corn oil daily.



NCGA Ethanol Committee Focuses on Long-Term Goals

Corn supply projections, research regarding the environmental impact of corn production as well as new efforts to expand uses for corn were topics for discussion when the National Corn Growers Association's Ethanol Committee met in Washington recently.

While drought-reduced yields in the 2012 crop have gotten the attention of many elected officials in Washington, the longer-term vision of the Ethanol Committee reflected optimism for future corn production and supply.

"The current drought is real and it will be weeks before we fully understand the effects on farmers and the U.S. economy. However, as leaders part of our mission is to juggle both long- and short-term goals and challenges," said Ethanol Committee Chair Chad Wills, a Minnesota corn grower. "Future yield projections indicate growing productivity, so our committee reviewed ongoing projects that look at how we can continue to lessen the environmental impact of corn production as well as finding new uses for corn and corn products related to ethanol production."

Ernie Shae, of the organization 25 x 25, told the committee his group also remains undeterred in its mission of continuing a national conversation about energy with the goal of producing 25 percent of the nation's energy needs from renewable agricultural sources by 2025.

The group also heard reports related to the Renewable Fuel Standard and how farm bill components being debated may affect biofuels policy and the livestock industry. The committee met with the Renewable Fuels Association, Growth Energy and the American Coalition for Ethanol.

The RFA's Bob Dinneen reported some ethanol plants outside the Midwest have closed or curtailed ethanol production due to the current economy, but overall the industry continues to operate at 92 percent of capacity. He also noted there are 850 million gallons of ethanol currently in storage which will help mitigate any effects related to a short corn crop.



Most Fertilizers Shift Lower Again

Retail fertilizer prices tracked by DTN for the fourth week of July 2012 continue to trend lower. Six of the eight major fertilizers slid in price compared to the fourth week of June.

Leading the way lower like it has many times in recent weeks is urea. The nitrogen fertilizer was 11% lower than a month earlier and now has an average price of $648 per ton. That's a move of more than $100 per ton in average retail prices since Memorial Day.

Also lower was the UAN solutions. UAN28 was 8% lower compared to a month earlier while UAN32 was 7% less. UAN28 had an average price of $381/ton while UAN32 was at $429/ton.

10-34-0 was also somewhat lower in price. The starter fertilizer was 6% lower compared to a month earlier and had an average price of $666/ton.

Two more fertilizers were also less expensive but just slightly. MAP had an average price of $658/ton and potash was at $639/ton.

The remaining two fertilizers were slightly higher in price compared to the fourth week of June. DAP had an average price of $636/ton while anhydrous was $775/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.70/lb.N, anhydrous $0.47/lb.N, UAN28 $0.68/lb.N and UAN32 $0.67/lb.N.

Only one of the eight major fertilizers is still showing double-digit increases in price compared to one year earlier. That fertilizer is urea. The nitrogen fertilizer is now 13% higher compared to last year.

Another fertilizer is showing a slight increase from a year earlier. Potash is now 2% more expensive.

Five fertilizers are all now actually lower compared to July 2011. DAP and MAP are 8% less expensive, UAN28 is now 7% lower, UAN32 is 4% lower and anhydrous is 2% lower compared to last year.

The remaining fertilizer, 10-34-0, is now down double digits from a year ago. The starter fertilizer is now 18% less expensive from a year earlier.



USDA Dairy Products June 2012 Production Highlights

Total cheese output (excluding cottage cheese) was 897 million pounds, 0.9 percent above June 2011 but 2.1 percent below May 2012.  Italian type cheese production totaled 376 million pounds, 1.0 percent below June 2011 and 2.2 percent below May 2012.  American type cheese production totaled 366 million pounds, 0.2 percent above June 2011 but 2.6 percent below May 2012.  Butter production was 137 million pounds, 3.2 percent below June 2011 and 16.2 percent below May 2012.

Dry milk powders  (comparisons with June 2011)
Nonfat dry milk, human - 169 million pounds, up 15.1 percent.
Skim milk powders - 25.4 million pounds, down 23.8 percent.

Whey products  (comparisons with June 2011)
Dry whey, total - 83.2 million pounds, down 0.7 percent.
Lactose, human and animal - 89.2 million pounds, down 0.7 percent.
Whey protein concentrate, total - 38.6 million pounds, up 6.4 percent.

Frozen products  (comparisons with June 2011)
Ice cream, regular (hard) - 76.4 million gallons, up 0.6 percent.
Ice cream, lowfat (total) - 42.9 million gallons, down 5.2 percent.
Sherbet (hard) - 4.01 million gallons, down 15.5 percent.
Frozen yogurt (total) - 6.45 million gallons, up 11.1 percent.



ADM Acquires Port in Northern Brazil

Archer Daniels Midland Company announced an agreement to purchase a port terminal in the state of Pará in Brazil.

"By adding this strategically located port to our extensive logistics network in Brazil, we will increase our capacity to export grain from Western and Northern Brazil and further expand our fertilizer operations throughout the country," said Valmor Schaffer, president, ADM South America. "This port will enhance ADM's global reach, better connecting the Brazilian harvest to markets including Europe, the Middle East, and even Asia through the Panama Canal."

The facility was designed to handle minerals, and ADM plans to convert it to handle bulk grains and agricultural inputs.

ADM also plans to upgrade the facility to handle Panamax vessels and double its storage capacity. Once complete, the new port will have capacity to handle 3 million metric tons a year.

The company currently operates in all of Brazil's major agricultural ports and owns a port terminal in Santos, São Paulo.