Nebraska Counties Designated as Secretarial Disaster Due to Drought Conditions
Farm Service Agency (FSA) State Executive Director, Dan Steinkruger, announced that an additional nine (9) counties have been designated as primary natural disaster areas due to the ongoing drought affecting Nebraska. Those counties are:
Cass Douglas Fillmore Lancaster Otoe Saline Sarpy Seward Washington
This brings the total number of Nebraska counties with a primary designation to 85. In addition, the following six (6) contiguous counties also become eligible for disaster programs:
Gage Jefferson Johnson Nemaha Nuckolls Thayer
A current Nebraska map listing the approved counties is available on the Nebraska FSA website at www.fsa.usda.gov/ne.
Based on Secretarial Designations in Kansas and Missouri, there are two (2) additional counties that are contiguous and eligible for disaster programs. They are Pawnee and Richardson.
With today’s designation, all 93 counties in Nebraska have become eligible for USDA disaster assistance. In response to the expanding ongoing drought conditions affecting crop and livestock producers across Nebraska, USDA has implemented various actions and programs. Specifically, counties have been allowed to emergency hay and graze CRP acres and Emergency (EM) Loans are authorized for eligible producers. Steinkruger stated, “As conditions continue to deteriorate, producers are encouraged to contact their local FSA Service Center for detailed information about available programs and updated Secretarial disaster designations.”
USDA has responded to drought conditions by reducing EM loan interest rates, reducing CRP payment reductions and expanding the list of practices eligible for CRP haying and grazing. In addition, Environmental Quality Incentives Program (EQIP) and Wetlands Reserve Program (WRP) acres are available for modification in response to drought conditions.
In addition to the Emergency (EM) Loan Program, the FSA has other loan programs and disaster assistance programs which can be considered in assisting farmers to recover from their losses.
Contact your local FSA Service Center or access additional information about FSA Disaster Assistance and Farm Loan programs at www.fsa.usda.gov.
While this release pertains to the availability of FSA programs, other federal agencies such as FEMA (Federal Emergency Management Agency) and SBA (Small Business Administration) may also have assistance to the public. Information is available from these two agencies at the following websites: www.fema.gov and www.sba.gov.
Nebraska Announces six new Ag Education and FFA programs
Agricultural Education and FFA programs will have the biggest increase in several years. A total of six schools will be starting brand new programs. Matt Kreifels, Nebraska Director of Ag Education, contributes the increase in programs to the agriculture economy and strong community support around these schools. New programs will begin at Bridgeport, Bruning-Davenport, Chambers, Omaha Bryan, Paxton and Sutherland.
NE National FFA Star Finalists!
Congratulations to Nebraska's two Star finalists. Rachel Arkfeld from the Syracuse FFA chapter is a Star Finalist in Agriscience and Matt Marcellus from the West Holt FFA chapter is a Star Finalist in AgriPlacement. This year's National FFA Convention is in Indianapolis again and will be held October 24-27, 2012.
Give a deserving student an FFA Jacket
The blue corduroy jacket is the symbol of FFA. It brings members together, instills self-confidence in our members and holds nostalgia amongst past FFA members. Did you know there are many FFA members that don't have or can't afford an FFA jacket? That's why the Nebraska FFA Foundation created the FFA Jacket Donation program. In this program, the number of jackets given out each year is proportionate to the number of jackets donated from supporters. Last year, 300 students applied for a free jacket through the program. Although the need was so great, we were only able to award 125 jackets. With the addition of six FFA chapters, we're sure the need will increase in 2012. This year's goal is at least 300 FFA jackets, but we need your help to do that. It's easy to donate online! Each jacket donation is $80. Hurry, the deadline is August 31!
Vilsack Appoints New Farm Service Agency Committee Member
William (Bill) Armbrust of Elkhorn, Nebraska was recently appointed to fill a vacancy on the Nebraska Farm Service Agency (FSA) State Committee by USDA Secretary Tom Vilsack.
Bill will join four current Committee members to serve on the FSA State Committee (STC). The Committee evaluates Nebraska federal farm program and farm loan program policies. They hear appeals from farmers and ranchers under USDA’s administrative appeals process. They also oversee FSA’s administrative operations for County Committees and field office operations.
Bill Armbrust has farmed since graduating from the University of Nebraska-Lincoln with a Bachelor of Science degree in Agronomy in 1979. He farms 800 acres in Douglas County raising corn, soybeans, alfalfa and cattle. He has also partnered with a young cattle rancher in Burwell, Nebraska, to run 400 cows year round.
He has been active in promoting both conservation and research in Nebraska agriculture. Working closely with the Douglas-Sarpy County FSA and the local Natural Resources District, Bill has utilized no-till practices since 1994. He also provides on-farm demonstrations and tours to promote rotational grazing and no-till farming.
Armbrust will serve in a vital role at USDA’s Farm Service Agency in overseeing drought response and implementation of the new Farm Bill.
Late Season Training Offered Near Mead
A University of Nebraska-Lincoln Crop Management and Diagnostic Clinic Aug. 30 will provide a close-up look at late-season field conditions.
The UNL Extension clinic will be held at the Agricultural Research and Development Center near Mead. Registration begins at 7:30 a.m. with the clinic starting at 8 a.m.
Topics include: switchgrass for bioenergy, sensing -- canopy reflectance and sidedress nitrogen applications, the power of Hybrid Maize -- late season validation, how cornstalks can bring value back to Nebraska, corn and soybean disease ID and management, and herbicide resistance, timing, and control recommendations for winter annuals.
Presenters include UNL extension educators, specialists and industry representatives.
Nine Certified Crop Adviser credits (pest management -- 3, crop production -- 2.5, soil and water management -- 2, and nutrient management -- 1.5) have been applied for and are pending approval for this clinic.
Cost for this clinic is $160 for those registering one week in advance and $210 after.
For more information or to register, contact the ARDC at CMDC Programs, 1071 County Road G, Ithaca, NE 68033, call (800) 529-8030, fax (402) 624-8010, email cdunbar2@unl.edu or visit the Web at http://ardc.unl.edu/training.shtml.
UNL Tractor Museum Has New Manager
Lance Todd is the new manager of exhibits and collections of the University of Nebraska's Lester F. Larsen Tractor Test Museum.
Todd began on June 25 and already has new exhibits under way at the museum.
Todd joins the museum from the Smith Collection at the Museum of American Speed in Lincoln, where he has worked for the past eight years.
Todd grew up in Eagle and attended Waverly High School. He graduated from Doane College in Crete in 2008 with a degree in art education.
While at the Museum of American Speed, he specialized in exhibit design and museum work.
"Coming to the Tractor Museum, I see a brand new slate with enormous opportunity," Todd said. He said he hopes to take the museum with its rich history to a level that shows the impact of the Nebraska Tractor Test Laboratory and its impact on the agricultural world.
The new exhibits Todd is working on are slated to be finished by the museum's open house on Aug. 31.
"With new state-of-the art exhibits we hope to not only be an active part of the ag world, but also Lincoln tourism as well," he said. "We hope to make it a neat place for people to see and learn about the test facility and the history as well as other agricultural elements."
Established in 1988, the Larsen Tractor Museum occupies the former Nebraska Tractor Test Laboratory building on UNL's East Campus.
Smith Announces Tax Reform Roundtables
Congressman Adrian Smith (R-NE) has announced two tax reform roundtable discussions to hear from constituents and answer questions about the current tax code and proposals for reform. Smith serves on the House Committee on Ways and Means which has jurisdiction over tax policy and will lead efforts for comprehensive tax reform in 2013.
“America’s tax code is broken,” said Smith. “As we work to pass comprehensive tax reform, I look forward to input and ideas from Nebraskans on how to make our tax code fairer, simpler and more competitive in a global economy.”
Details about the Tax Reform Roundtables are as follows. All stops are open to the public.
Tuesday, August 21
Cheyenne County Community Center
627 Toledo Street
Sidney, NE
9:00 – 11:00 AM MT
Thursday, August 23
Wayne State College
Student Center – Frey Conference Suite
1111 Main Street
Wayne, NE
9:00 – 11:00 AM CT
Nebraska Farmers Union Fall District Meetings Schedule
General Agenda: Farm Bill Drought, New Markets, Nebraska Energy, KXL Pipeline, Election of Officers, Resolutions for State Convention
August 21 District 7 7:00 pm Tuesday
Subs & Suds, East Hwy 275, Tilden
Supper & meeting. Contact Keith Dittrich: 617-320-6281
August 22 District 2 6:30 pm Wednesday
2603 South August, Grand Island (Carol Schooley home)
Pot Luck Supper-bring a dish. Contact: Carol Schooley: 308-383-2147
August 23 District 3 6:30 pm Thursday
South Bar & Grill, Main Street, Red Cloud
Supper with meeting to follow. Contact Ron Meyer: 402-879-5800
August 27 District 4 6:00 pm Monday
Aunt Mary’s, 111 South 8th Street, Beatrice
Supper with meeting to follow. Contact Karen Sysel: 402-946-6561
August 28 District 6 6:30 pm Tuesday
Winners Restaurant, 439 South 13th Street, Tekamah
Super with meeting to follow. Contact Paul Poppe: 402-380-4508
August 29 District 5 6:00 pm Wednesday
Pizza Kitchen, 411 1st Street, Milford
Supper with meeting to follow. Contact Ben Gotschall: 402-705-8679
Weekly Ethanol Production for 8/10/12
According to EIA data, ethanol production averaged 819,000 barrels per day (b/d) – or 34.40 million gallons daily. That is up 2,000 b/d from the week before. The 4-week average for ethanol production stood at 810,000 b/d for an annualized rate of 12.42 billion gallons.
Stocks of ethanol stood at 18.4 million barrels. Gasoline demand for the week averaged 390.9 million gallons daily.
Expressed as a percentage of daily gasoline demand, daily ethanol production was 8.80%.
On the co-products side, ethanol producers were using 12.418 million bushels of corn to produce ethanol and 91,403 metric tons of livestock feed, 81,486 metric tons of which were distillers grains. The rest is comprised of corn gluten feed and corn gluten meal. Additionally, ethanol producers were providing 4.26 million pounds of corn oil daily.
NCGA Statement on RFS Waiver Petition
National Corn Growers Association President Garry Niemeyer released the following statement in response to formal petitions filed this week with the U.S. Environmental Protection Agency for a waiver of the Renewable Fuel Standard.
“We are in the midst of a historic and devastating drought. Its impact will be felt well beyond the farm sector. We have great concern and empathy for not only our members who are suffering, but all who we supply. This includes the domestic livestock sector, our export customers, the domestic food industry and the ethanol industry. All are suffering because of the drought.
“We continue to believe in the value and efficacy of the open market system. It is the most efficient and effective way of allocating resources.
“There currently is a lot of public discussion about the role and impact of the Renewable Fuel Standard. Unfortunately most of this discussion is unencumbered by facts and reality. The facts clearly show that the RFS has been of significant net value to the entire U.S. economy.
“While we believe that it is still somewhat premature to consider a temporary, partial waiver to the RFS (as there will be much more accurate information available with September’s and October’s USDA crop reports), we do respect the right of those with standing to exercise the language contained in the RFS. The waiver process language in the RFS calls for careful objective analysis of the economic impact of the RFS on the U.S. economy. We have faith in, and support, the process laid out in this language.
“If indeed the analysis shows that the RFS is not causing severe economic harm, but instead ethanol production is responding to market forces rather than the RFS, then the request for a temporary partial waiver should be rejected. If however, the analysis clearly shows that the RFS is causing severe economic harm in light of the drought, then a temporary, partial waiver should be granted
“We reiterate that it is the drought that is the issue, and the cause of the distress we all now face. An open and free market approach is the best and most efficient solution to getting us past this crisis.
“Again, we reiterate our concern and empathy for our own farmers who are victims of this drought, and for all of those to whom we supply corn.”
Corn ethanol waiver's effect on corn prices uncertain
Corn prices pushed higher by the worst U.S. drought in half a century would not necessarily moderate if the federal government's corn ethanol mandate were temporarily suspended, according to a report by three Purdue University agricultural economists.
The report, Potential Impacts of a Partial Waiver of the Ethanol Blending Rules, suggests that under some scenarios with certain market conditions, corn prices could fall if the U.S. Environmental Protection Agency (EPA) granted a partial waiver of the Renewable Fuel Standard's corn ethanol provision. EPA received a request by a consortium of livestock industry organizations to waive part of the mandate that effectively requires that corn ethanol be blended with gasoline.
In collaboration with Purdue, Farm Foundation, NFP will host a live web conference at 10 a.m. CDT Thursday, Aug. 16, at which the report's authors will discuss their findings. The web conference is free of charge but registration is required and can be completed via the Farm Foundation website. The conference will be archived on the Foundation's website, where the full report is posted. Registration is required to access the archived file.
According to the three Purdue economists who authored the paper--Wally Tyner, Farzad Taheripour and Christopher Hurt--a waiver could, under certain conditions, reduce the demand for corn and, thus, corn prices for livestock producers and other non-ethanol corn buyers.
Under its normal schedule, EPA has until October to gather information on the extent of any economic harm done by the original Renewable Fuel Standard level and to decide if it will issue a waiver. For consumers, the decision could affect what they pay for fuel and food.
"The range of impact of a RFS waiver goes from zero to $1.30 per bushel for corn," says Tyner, an energy policy specialist and the report's lead author.
With corn crops shriveling in the field and yield projections dropping almost weekly, corn prices have jumped 60% since June 15. A bushel of corn has topped $8. The prospect of a diminished crop and even higher corn prices has livestock producers worried that corn--a feed mainstay--might not be available or will be too expensive to buy.
The RFS mandates 13.2 billion gallons of ethanol be blended with gasoline in 2012; that number increases to 13.8 billion gallons in 2013. Because oil companies blended 2.6 billion gallons of ethanol with gasoline above what was required in previous years, they have built up blending credits--known as renewable fuel identification numbers (RINs). Blenders are allowed to count RINs toward blending totals in this or future years.
In their study, Tyner, Hurt and Taheripour looked at future corn and ethanol prices with and without an RFS waiver, how RINs and crude oil prices could factor in ethanol use, and what might occur if the drought worsens.
"If corn prices remain high, which seems likely, and crude oil remains at $100 a barrel or lower, then reducing the RFS could reduce the demand for ethanol and, consequently, the demand for corn," Tyner said. "If the waiver resulted in less demand for ethanol that would, in turn, lead to lower corn prices than would have existed without the waiver. It also could lead to more ethanol plant closings--at least temporarily."
Conversely, an EPA waiver could have little effect if crude oil moves beyond $120 a barrel and oil companies continue blending ethanol at current levels, Tyner said.
The severity of drought conditions moving forward adds another layer of complexity to the issue, the economists said. At the start of the current crop season, U.S. corn production was projected at 14.7 billion bushels, with a U.S. farm price of $5.34 per bushel. USDA now estimates U.S. corn production will reach only 10.8 billion bushels this year, with the price $8.20 a bushel. If the drought strengthens and EPA sticks to the mandated 13.8 billion gallons of ethanol in 2013, a corn crop of 10.5 billion bushels could push corn prices to $8.57 per bushel, according to the Purdue report. If drought conditions abate and corn production reaches 11.5 billion bushels, corn prices could fall to $7.02 a bushel under a full RFS ethanol mandate.
"However, because of carry-forward blending credits from prior years--the RINs--refiners and blenders could decide to produce and blend 2 billion fewer gallons of ethanol," Tyner said. "That change alone could reduce the price of corn around 67 cents a bushel. And that is without any EPA waiver."
EPA will have much to consider before rendering its waiver decision, Tyner said. "It will have to determine what impact issuance of a waiver actually would have, given the way the market functions at present," he said. "For technical and economic reasons, refiners may well continue to use nearly the same amount of ethanol, even if they are not required to because of a waiver. Technically, they may not want to change their current mix of gasoline and ethanol to make 87-octane gasoline, as an example. Economically, they would not be expected to reduce ethanol use as long as ethanol prices are below gasoline, as they are now. If refiners and blenders don't have or choose not to use operating flexibility, and if reduced use of ethanol is not economical, then a waiver would have no impact."
Tyner continued: "To the extent that refiners and blenders do have flexibility with their use of ethanol, a small waiver could reduce corn prices around 47 cents a bushel, while a large waiver could reduce it as much as $1.30 a bushel, depending on economic conditions."
Should a waiver lead to reduced ethanol use, EPA could have an influence on who bears the brunt of the drought-related corn losses, Tyner said. "The total amount of harm from the drought is in the tens of billions of dollars," he said. "The EPA cannot change the loss. It can only potentially redistribute it among the affected parties: ethanol producers, livestock producers, corn growers and domestic and foreign consumers."
Oil Prices Rise on Big US Supply Drop
(AP) -- An unexpectedly large drop in U.S. crude oil inventories pushed the price of oil higher on Wednesday.
Benchmark oil rose 90 cents to finish at $94.33 per barrel Wednesday in New York, its highest level since mid-May. The Energy Department said stockpiles fell 3.7 million barrels last week to 366.2 million barrels. Analysts had predicted a decline of 1.5 million barrels, according to Platts, the energy information arm of McGraw-Hill.
It marked the third consecutive large weekly decrease in oil supplies. Still, analysts point to production problems and seasonal factors more than increased demand for the declines. But with supplies still above normal for this time of year, any decrease tends to cause a rise in oil prices.
Oil production has been affected by a number of issues this month, including some refinery and pipeline problems in the Midwest and California. Tropical storms have moved through the Gulf of Mexico, closing some oil rigs and slowing oil tankers destined for U.S. ports.
In addition, refiners are selling off inventories to avoid a surplus when they switch to processing winter blends of fuel next month.
China 2012 Corn Crop Up 2.2%
China's corn output this year will likely reach a record 197 million metric tons, up 2.2%, the state-backed China National Grain and Oils Information Center said Wednesday. The August corn forecast is revised downward from an earlier forecast of 197.5 million tons, according to the CNGOIC. CNGOIC maintained its output forecasts for wheat, rice, rapeseed and soybeans in its report on 2012 grain production.
China 2012 US Pork Imports Likely to Rise 29% - BOABC
China's pork imports from the U.S. are likely to rise around 29% this year despite high U.S. grain prices, riding on a sequential 30% increase in the second half of last year, the Beijing Orient Agribusiness Consultant Ltd. research firm told Dow Jones Newswires on Wednesday.
Imports from the U.S. will account for less than 2% of China's annual pork consumption this year. The projected increase in imports is in line with a rising trend in place since 2009, and comes despite a severe drought in the U.S. overshadowing the outlook for meat exports.
Total pork imports from the U.S. this year may reach 620,000 tons, BOABC analyst Wang Xiaoyue said. China imported around 480,000 tons of pork from the U.S. last year.
"Even though Chinese demand is not that strong compared with previous years, the second half is usually the peak season for consumption," Mr. Wang said.
After almost a year of declines, pork prices in China are set for a mild rebound in the fourth quarter due to lower supply, he added.
Deere 3Q Income Up
Deere says its third-quarter net income rose 11% but fell well short of expectations, hit hard by a weakening global economy and prolonged drought in the U.S. The Moline, Ill., company, the world's largest producer of agricultural equipment, said Wednesday it earned $788 million, or $1.98 per share for the quarter ended July 31, compared with $712.3 million, or $1.69 per share for the same period last year. Revenue rose 15% to $9.59 billion.
Welcome to the KTIC Agriculture Information blog!!! Check back here for the latest in ag news and information, from local events to international happenings and government reports that affect your operation. Please email with suggestions! -Chad Moyer, Farm Director, KTIC Radio
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