Monday September 24 Ag News

Dry Conditions to Persist in Western Corn Belt for Early Fall
Al Dutcher, UNL Extension State Climatologist

There has certainly been a shift toward a more favorable moisture pattern during the past 30 days across the southeastern U.S., as well as the southern Ohio and Mississippi river valleys. The northwestern Corn Belt has remained dry and needs to be monitored for further deterioration during this fall and early winter. It is not uncommon for the Dakota’s, Montana, and the northern Rockies to see below normal moisture during El Nino years.

Average temperatures during the past 30 days are reflecting a change in the mean atmospheric jet stream pattern. A persistent and deep upper air trough has become established across the eastern U.S. and temperatures are responding accordingly.

Temperature departures of 1-2°F below normal are expected across the southeastern U.S. and near normal temperatures are predicted across the eastern Corn Belt. Abnormally hot conditions have now shifted into the northwestern Corn Belt, which includes the northwestern third of Nebraska.

The widespread precipitation that moved through the state Sept. 12-13 was certainly welcome, but insufficient to alleviate our well-established drought conditions. It is going to take several months of this type of precipitation pattern before we can expect a significant drought reduction for Nebraska.

Current Forecast
Good harvest conditions should continue into the middle of next week before another cold front begins to sag southward from Canada. If the timing works and it mixes with some expected moisture in the Rockies, Nebraska could see some rain. After that, the next moderate chance for precipitation isn’t until October 2-4.

The overall trend for the western Corn Belt is still drier than normal. While in the short-term this will benefit harvest operations, it won’t benefit wheat planting or help reduce our current drought.

Soil Moisture Recharge Starts Early, but Will it Be Enough?
As the end of the 2012 production season rapidly approaches, growers are asking: What is the likelihood that this year’s devastating drought will be repeated in 2013?

A repeat is certainly possible, but droughts of this year’s magnitude and intensity are infrequent. In fact, based on land area coverage alone, you would have to go back to 1988 to find a drought with similar national coverage.

Thankfully, national droughts of this year’s intensity materialize an average of once every 15-20 years. When multiyear droughts do occur, western areas of the U.S. Corn Belt are particularly susceptible. In this area “off season” moisture is the primary driver for drought risk while in the central and eastern Corn Belt, normal off-season moisture is more than sufficient to replenish soil profiles.

UNL research has found that 70% of the moisture that falls from October through April will make its way into the soil profile. As bad as the drought was this year across the nation’s midsection, the prospects for normal soil moisture recharge are higher than normal. Although this sounds counter intuitive, remember that in a normal year, corn and soybeans are still actively growing in September. With corn and soybeans shutting down early, soil moisture recharge can start early, as long as the atmosphere cooperates.

With the remnants of hurricane Isaac dropping 2-5 inches of precipitation across portions of Missouri, Illinois, Indiana, and Ohio, soil moisture is building there. However, Isaac offered little reprieve for the western Corn Belt. We’ll be watching precipitation patterns through November before predicting the potential drought risk for 2013.

Understanding the Two Types of Drought — Agricultural and Hydrological
It is important to remember that when we quantify drought, we are looking at two types of drought. Agricultural droughts respond quickly to short-term precipitation events, while hydrological droughts extend longer than six months and can still be relevant event when agricultural conditions are optimum.

As long as your specific region has received normal moisture during the fall and spring, your risk of an agricultural drought during the growing season is entirely dependent on the mean jet stream pattern. Just because the fall is dry, doesn’t mean that you are going to experience drought conditions the next growing season. A wet spring can make up for fall precipitation deficits. What we have found here in Nebraska is that our more significant drought risks occur when moisture during the fall/spring recharge period falls below 80% of normal.

Hydrological droughts are much more difficult to quantify, especially when they span several consecutive years. It may take several years of above normal moisture to undo the damage of a single, intense drought year. Conversely, because the annual precipitation of the central and eastern Corn Belt may be two or more times greater than that in the western Corn Belt, a hydrological drought of equal magnitude can be eradicated in half the time as one in the western Corn Belt.

Our long range forecasting ability is weak at best. However, the long range models that we rely on work best when La Nina or El Nino conditions develop across the eastern and central equatorial Pacific. Weak El Nino conditions are now prevalent in the eastern Pacific and expected to strengthen slightly this fall and winter. These events usually dissipate as we move through spring, unless they are moderate to strong.

Several areas of the country respond to La Nina or El Nino events with enough regularity that they can be described with an accuracy of 70% or greater. During an El Nino event:
-    In the southern third of the U.S. precipitation is usually above normal during the fall through spring and temperatures are below normal. (During La Nina years this same region will typically see below normal moisture and above normal temperatures.)
-    The Pacific Northwest and the eastern Corn Belt will be drier and warmer than normal. (During a La Nina they will have above normal moisture and below normal temperatures.)

For the remainder of the country, fall and spring weather is entirely a function of where the mean jet stream pattern develops, even in the absence of El Nino or La Nina conditions. In the western Corn Belt, if precipitation patterns this fall are similar to last fall, the drought risk will remain elevated into next spring. If precipitation is close to normal, the risk of drought really won’t be definable until next March, at the earliest.

For the central and eastern Corn Belt, I believe that the drought risk for 2013 will be no different than any other year. Most of the eastern and central Corn Belt droughts develop during the growing season and not during the fall/spring period as happens in the western Corn Belt.



Soil Testing Critical After a Drought Year
Richard Ferguson, Gary Hergert, Charles Shapiro, Tim Shaver and Charles Wortmann
Extension Soils Specialists

Most crop producers in Nebraska are in the midst of harvest now, and planning for next year is not on top of their “to-do” list. However, as harvest wraps up, soil sampling should be near the top of their list. This has been among the most challenging growing seasons in 50 years, with rainfall amounts far below average. Irrigation has moderated drought impacts for many Nebraska growers, but at a significant cost. The combination of drought conditions, heavy irrigation, and widely varying yields means that soil testing is more important than ever this year.

In a recent CropWatch article, Grassini et al. noted that irrigated corn yields across Nebraska are predicted to be moderately lower (3-8% below average), while dryland yields will be substantially reduced (32-67% below average). These estimates are based on weather data from 2012, and assume no yield-limiting factors other than temperature and solar radiation for irrigated production. Many areas of Nebraska had high temperatures during pollination, which may further reduce yield from modeled predictions. The big question is how drought will affect nutrient requirements for next year. The net effect of crop nutrient removal on soil nutrient availability will vary from field to field, and with locations within fields.

Residual Nitrate
For very low-yielding, rainfed corn fields, expect residual nitrate levels to be high. This will primarily be from unused fertilizer nitrogen. Soil mineralization of N will have been quite low in rainfed fields due to low moisture. Limited crop N removal and little or no leaching means that unused fertilizer N remains in the soil. Unless we have an unusually wet winter and spring, this nitrate-N will be mostly available for crop use next year. The only way to accurately account for residual nitrate-N is through deep sampling, to a depth of at least 2 feet; this may be difficult until soil moisture is restored. Unusually high residual nitrate levels following soybean harvest are not likely as soybean typically depletes soil nitrate-N to reduce energy needed for biological N fixation.

For irrigated fields, total irrigation amounts for 2012 were double or more compared to 2011 applications, with many more irrigation events for sprinkler-irrigated fields. Generally nitrate leaching with irrigation is not a concern with sprinkler-irrigated fields, due to irrigation amounts being one inch or less per event. Such frequent irrigation, combined with warm soil temperatures all summer, may have led to above-average mineralization of nitrogen from organic matter. Consequently, residual nitrate-N levels for sprinkler-irrigated fields may still be higher than normal, even if yields are not that much lower.

Furrow-irrigated fields generally will have larger amounts of water applied per irrigation event, which can result in nitrate leaching below the root zone, depending on how irrigation was managed. Expect residual nitrate-N levels to be quite low for furrow-irrigated fields. However, variability in residual nitrate can be very high with furrow irrigation. It will be critical to sample residual nitrate from the upper, middle, and lower third of the field relative to the location of irrigation pipe, since more leaching will occur in the upper third of the field.

Phosphorus, Potassium, and Other Nutrients
For irrigated fields with yields close to normal, expect little impact from drought on soil test levels of phosphorus (P), potassium (K), and other nutrients. For dryland fields, crop uptake of these nutrients will be less than normal. However, this may have little impact on soil test levels for P, K, and other nutrients. There may be some tendency toward higher soil test values, but soil tests for these nutrients are an estimate of plant availability over the growing season. There is evidence that soil test K can be influenced by soil drying, and some states have started analyzing soil K from field moist samples. However, most Nebraska soils are quite high in potassium, and thus slight differences in soil test K that can occur with the analytical process have no impact on the fertilizer recommendation.

Silage and Residue Harvest
In many cases, growers harvested fields intended for grain production as silage. In other cases, there will be opportunity to harvest crop residue as feed due to reduced pasture and hay production. Either way, growers should be aware of nutrient removal resulting from biomass harvest. Significant amounts of P, K, and micronutrients, as well as carbon, can be removed from the field with biomass harvest. For example, a 150 bu/ac corn crop will uptake approximately 64 lb P205 and 42 lb K2O in grain, but will have approximately 36 lb P2O5 and 144 lb K2O/acre in stover. The value of these nutrients should be considered when pricing baled stalks for livestock feed. More information on the impacts of harvesting crop residues is available in the Extension publications Baling Corn Residue (EC711)  and Harvesting Crop Residues (G1846). If stalks are grazed rather than baled, expect much of the nutrient content in grazed residues to return to the field, minus the harvested weight of cattle once they are taken off the field.

The Bottom Line
Expect soil nutrient values — particularly residual nitrate — to be more variable this fall than in recent years from field to field, and within fields. The only way to know the availability of soil nutrients is to soil test. Fertilizer costs can easily exceed $100/acre for irrigated corn. Nitrogen prices currently range from about $0.50 to $0.70/lb N, depending on the fertilizer source. Phosphorus prices range from $0.45 to $0.80/lb P2O5, depending on P source and the price of N fertilizer. Thus, an irrigated corn field requiring 180 lb N/acre at $0.60/lb, and 60 lb P2O5 at $0.60/lb, will have a fertilizer cost of $148/acre. Making accurate estimates of profitable fertilizer rates for next year will require accurate soil test information. Guidelines for soil testing are available in two Extension publications — Guidelines for Soil Sampling (G1740) and Soil Sampling for Precision Agriculture (EC154).

While there should be plenty of time for soil sampling this fall due to an early harvest, consider sampling next spring instead. Dry conditions this fall may make sampling difficult, and spring sampling may result in a more accurate prediction of nitrate-N availability, depending on weather conditions this winter. Nebraska is fortunate to have several good analytical labs where growers can have soil samples tested. Contact any of these Nebraska soil testing labs for information on current pricing and how to ship samples.



Grazing Corn Stalks in No-till Fields
Charles Wortmann, Extension Soils Specialist
Terry Klopfenstein, Professor of Animal Science
Aaron Stalker, Extension Beef Range Systems Specialist

Grazing corn stalks is of major importance to Nebraska’s beef cattle industry, particularly this year, and can be compatible with no-till crop production.

In a corn-soybean rotation study conducted from 1996 to 2011, the effects on yields of the following crop were determined for fall-winter grazing (November to February) and spring grazing (February to mid-April, the time of greatest concern of compaction by animal traffic on thawed and wet soil). The field was irrigated. Three treatments (fall/winter grazed, spring grazed, and ungrazed) have been maintained in the same area since 1996. Stocking was with yearlings at 2.5 times the normal level since 2000.

On average, yield of the following soybean crop was increased by about 2 bu/ac with fall-winter grazing, and 1.3 bu/ac with spring grazing, compared with no grazing of corn stalks. Yield of corn as the second crop after grazing was not significantly affected.

The results of this study, other studies conducted from 1993 to 1995 at the ARDC, and research currently being conducted near Brule will be reported in the 2013 Nebraska Beef Cattle Report. These additional studies, including a dryland trial, had no significant effect of grazing on mean grain yield for the following crop which was corn, soybean, or grain sorghum.

Grazing corn stalks is compatible with no-till management in eastern Nebraska and probably is for irrigated fields throughout the state with no loss in average grain yield expected. With wet soil conditions in the spring, consider removing cattle from the field or taking other steps management steps to minimize the effect of compaction.



ConAgra Foods Eliminating Controversial Pig Cages from Supply Chains

The Humane Society of the United States applauds the announcement from ConAgra Foods that it will eliminate controversial gestation crates—cages used to confine breeding pigs—from its pork supply chain, becoming the latest in a growing list of major food companies to address this issue. ConAgra Foods is a Fortune 500 company with net sales totaling more than $13 billion.

“As part of our long-standing commitment to the humane treatment and handling of animals, ConAgra Foods supports the elimination of gestation stall housing for sows,” said ConAgra Foods in a statement. “We are asking our pork suppliers to present actionable plans by 2017 that address both the elimination of gestation stalls and creation of traceability systems within the pork supply chain. We recognize that implementing a phase-out may be a long-term process, and could take up to 10 years [2022].”

“We applaud ConAgra Foods tackling one of the most serious farm animal welfare problems,” stated Josh Balk, corporate policy director of farm animal protection for The HSUS. “This policy makes it even clearer than ever that the cruel gestation crate confinement of pigs will come to an end.”

The similar announcements made recently by Oscar Mayer, McDonald’s, Burger King, Wendy’s, Costco, Safeway, Kroger and other leading food companies signal a reversal in a three-decade-old trend in the pork industry that leaves most breeding pigs confined day and night in gestation crates during their four-month pregnancy. These cages are roughly the same size as the animals’ bodies and designed to prevent them from even turning around. The animals are subsequently transferred into another crate to give birth, re-impregnated, and put back into a gestation crate. This happens pregnancy after pregnancy for their entire lives, adding up to years of virtual immobilization. This confinement system has come under fire from veterinarians, farmers, animal welfare advocates, animal scientists, consumers and others.



Hillshire Brands Joins List Phasing Out Gestation Sow Stalls

Officials at Hillshire Brands, announce that they will work toward eliminating gestation-sow stalls from their pork supply chain. The timeline identified is for the move to be completed by 2022..  The company says it will work to advance 'fact-based discussions with its suppliers and the industry in general, on alternatives to traditional gestational housing.'

While Hillshire Brands does not raise pigs, the company plans to eventually source all pork from suppliers 'who use housing that provides the animals the opportunity for adequate movement and comfort, while also ensuring their safety.' Company officials point out that the goal is for pork suppliers to combine quality animal care and worker safety with solutions that are adaptable for farm family operations of all sizes.

Headquartered in Downers Grove, Ill, Hillshire Brands owns Hillshire Farms, Ballpark, Jimmy Dean and State Fair meat brands. A major sausage and processed meats provider for both retail and foodservice sectors, Hillshire Brands is a significant pork user. It also has artisanal brands Aidells and Gallo Salame



Lawsuit Challenges $60 Million Federal Payout for “The Other White Meat” Slogan
(from HSUS web site)

The Humane Society of the United States—along with an independent pig farmer and on behalf of its pig farmer members—filed a lawsuit in federal district court, charging that the National Pork Board struck an unlawful backroom deal with a D.C. lobbying organization for the purchase of the iconic “Pork: The Other White Meat” slogan. The deal allows $60 million in pork producers’ money collected for marketing and promotion purposes to be diverted into industry lobbying efforts aimed at harming animal welfare and small farmers.

“The National Pork Producers Council has a failed track record when it comes to representing family farmers and preventing animal cruelty,” said Joe Maxwell, director of rural development and outreach at The HSUS and a Missouri pig farmer. “While we can’t force NPPC to care about animals or family farmers, through this lawsuit we can work to stop our money from being unlawfully funneled straight to its lobbyists who work against us.”

The National Pork Board—a quasi-governmental entity receiving mandatory fees, called “checkoffs,” from independent pork producers—purchased the slogan from its long-time industry ally, the National Pork Producers Council in 2006.

Through months of research, The HSUS uncovered glaring legal violations, conflicts of interest, and an exorbitantly over-inflated $60 million price tag associated with the deal. Much of the extraordinarily inflated value of the slogan resulted from 20 years of promotional campaigns funded entirely with pork producers’ own checkoff funds: roughly half a billion dollars. In essence, NPPC charged pork producers twice: once to make The Other White Meat successful, and again to pay for the value of that success.

Launched in 1987, “The Other White Meat” was developed as the primary promotional message of the National Pork Board’s checkoff program. According to federal law, every U.S. pork producer must pay into the checkoff program, but those funds can only be used for strictly limited promotional and research purposes, and may not be used for lobbying. The U.S. Department of Agriculture supervises the checkoff program and has authority to reject expenditures that are not in compliance with federal laws or regulations.

Records suggest that industry leaders were fully aware of the impropriety of the sale and deliberately worked to prevent public knowledge of it. Then-National Pork Board CEO Steve Murphy wrote in 2006, for example, that his reason for not accepting written appraisals for the sale was to keep that information “sealed” and out of the “public domain.”

The purchase price, to be paid by the National Pork Board to the National Pork Producers Council in 20 annual installments of $3 million each, has been reported by NPPC as representing nearly one-third of its annual budgeted revenue. These payments continue, despite the fact that the slogan has been discontinued and replaced with a new one by the National Pork Board, which has the power to cancel the payments.

The plaintiffs are asking the court to cancel the unlawful purchase and ensure that the remaining balance—tens of millions of dollars—will benefit the producers who fund the checkoff instead of NPPC’s anti-animal, anti-farmer lobbying agenda. The complaint does not challenge the constitutionality of the checkoff program but alleges a gross misuse of a massive amount of federally-compelled check-off payments funneled into lobbying purposes.

Statement Of NPPC CEO Neil Dierks on HSUS Latest ‘Bullying Tactic’
“NPPC is reviewing the HSUS complaint, but it appears there is no legal merit to this claim, and it is another desperate attempt by the radical activist group to severely curtail animal agriculture and take away consumer food choices. What does merit concern, however, is the fact that HSUS preys on the emotions of domestic pet owners with deceptive advertising and fundraising. It raises money on images of abused puppies without homes, yet virtually none of those funds go to local shelters. Instead those dollars go toward multimillion dollar campaigns to attack family farmers and American meat production.

“This also is the latest bullying tactic by HSUS in its efforts to force NPPC to abandon its position on allowing farmers to choose production practices that are best for the welfare of their animals. Over the past few months, HSUS has threatened NPPC with a Federal Trade Commission complaint; filed notice of its intent to sue a number of hog operations over alleged emissions reporting violations; and charged that NPPC was responsible for the deaths of hogs in barn fires because the organization asked to give input on national fire standards for agricultural facilities. All of the allegations lack merit.”



Kearney Raceway Park to Feature 180 mph Ethanol-Powered Street-Legal Cars

It's being billed as "8 Seconds of Corn-fed Madness": Street-legal muscle cars doing 180 mph on a quarter-mile track—powered by ethanol, the renewable fuel made from corn. To top it off, they can race at 180 mph down the track after popping a monster wheelie at the starting line!

Their performance is a special attraction at the Ethanol NHRA National Open held October 6-7, 2012, at Kearney Raceway Park in Kearney, Nebraska. In addition to the 200 professional drag racers from across the nation who will be competing for top honors, the weekend event will also feature a special fleet of street-legal cars running on E85—and 85/15 ethanol/gasoline blend—proving that ethanol is a high-performance fuel. These muscle cars will perform at various times throughout the event, reaching top speeds of 180 mph down the quarter-mile track after popping sky-high wheelies at the starting line.

In addition to the competitive racing and muscle car performances, the University of Nebraska—Lincoln Husker Motorsports team will have their 2012 Formula SAE car on display. Also appearing will be James Stevens’ Top Alcohol dragster which is capable of 250 mph passes and Ray Vettel’s beautiful 1978 Z28 Camaro Pro Mod car which has gone over 210 mph.

Competition gears up at 1:00 p.m. both days. The ethanol- powered cars will strut their stuff several times during the afternoon both days.

"This is really a great way for people of all ages to see what drag racing is all about," said Grady Koch with Kearney Raceway Park. "If you like fast cars, fast action and a lot of family fun, this is the perfect event to attend. And I guarantee you'll walk away impressed with the way these muscle cars perform on ethanol!"

Kearney Raceway Park is the only NHRA-sanctioned drag strip in Nebraska and it has been the site of dozens of national record-breaking performances. Concessions are available on site throughout the event.

The track is partnering with the Nebraska Corn Board and Nebraska Ethanol Board to promote the event. Both NASCAR and the Indy Racing League have adopted ethanol as their fuel of choice because of its higher octane and cooler temperatures, which improve engine performance and extend engine life. In plain terms that means more horsepower with less heat.

Admission is $15 per person for one day or $25 for a two-day pass. Kids from 7-12 are $5 per day and 6 and under are free. Coupons good for $5 off gate admission are available at NAPA stores in Kearney, Hastings, Aurora and Minden; at the Kearney Area Convention & Visitors Bureau; and at NRG Media in Kearney.

For more information, visit www.krpi.com.



CNFA Hosts Kazakhstan Development Tour in Midwest

As an extension of the Kazakhstan Business Connections Program, a two-year program funded by the United States Agency for International Development (USAID), CNFA is hosting a three-week business development tour for ten participants from Kazakhstan to meet with U.S. businesses and attend training seminars in Kansas and Nebraska. Nine businessmen, involved in beef and poultry production and one government representative will visit over a dozen businesses related to livestock production, processing and marketing including AGCO, Luco Manufacturing and Great Plains. In addition to these business and association visits, the tour also includes an educational component where participants will attend a four-day training seminar at Kansas State University and presentation at the Kansas State Department of Agriculture. While the primary goal of the tour is to provide training and opportunities for Kazak businesses, the tour also provides opportunities for U.S. businesses as well. The tour will conclude in Washington, D.C. for a debrief and reception with representatives from the Kazakhstan Embassy and livestock industry.

The Kazakhstan Business Connections program aims to build the capacity and competitiveness of Kazakhstani small-and medium-sized enterprises (SMEs) through their modernization and expansion. The program aligns with the Government of Kazakhstan's (GOKZ) national development plan to diversify the economy through the development of Kazakhstani SMEs. Although this is a USAID-funded project, the Government of Kazakhstan contributes 50 percent of the operating expenses.

CNFA is a Washington, D.C.-based, non-partisan, non-profit organization dedicated to stimulating economic growth and improving rural livelihoods by empowering the private sector. CNFA's unique approach is founded on five core capacities: 1) commercial input supply and farm services; 2) economic resilience and rapid recovery; 3) agricultural productivity, food security and nutrition; 4) value chain development; and 5) volunteer technical assistance. CNFA has worked in over 38 countries worldwide and impacted the lives of more than 70 million people. For more information, visit www.cnfa.org.



MILC Program Sign-up Ends September 30

Thurston County Farm Service Agency (FSA) Executive Director (CED) Josie Waterbury reminds dairy producers that the deadline to sign-up for Milk Income Loss Contract (MILC) benefits is September 30, 2012.  Legislation has not been enacted to extend the MILC program past September 30, 2012 through the Food, Conservation, and Energy Act of 2008.   MILC compensates dairy producers when domestic milk prices fall below a specified level.

"It is important that dairy producers provide final production evidence and any supporting documentation for eligible months that MILC was in effect by November 1, 2012," said Waterbury.   Changes to the dairy operation start-month must be designated on FSA’s form "CCC-580M – Milk Income Loss Contract (MILC) Modification." 

For more information about the MILC program, please contact the Thurston County FSA office at (402) 846-5655 or visit the web at: www.fsa.usda.gov/ne.



CWT Assists with 6.6 Million Pounds of Cheese and Butter Export Sales

Cooperatives Working Together (CWT) has accepted 13 requests for export assistance from Dairy Farmers of America, Darigold, Land O’Lakes and Maryland & Virginia Milk Producers Cooperative Association to sell 5.880 million pounds (2,667 metric tons) of Cheddar and Monterey Jack cheese, and 687,842 pounds (312 metric tons) of butter, to customers in Asia, Central America, Europe and the Middle East. The product will be delivered September 2012 through March 2013.

In 2012, CWT has assisted member cooperatives in making export sales of Cheddar, Monterey Jack and Gouda cheese totaling 91.6 million pounds, butter totaling 58.1 million pounds, and anhydrous milk fat totaling 123,459 pounds. The product will go to 34 countries on four continents. On a butterfat basis, the milk equivalent of these exports is 2.116 billion pounds, or the same as the annual milk production of 100,700 cows.

Assisting CWT members through the Export Assistance program positively impacts producer milk prices in the short-term by reducing inventories that overhang the market and depress cheese and butter prices. In the long-term, CWT’s Export Assistance program helps member cooperatives gain and maintain market share, thus expanding the demand for U.S. dairy products and the farm milk that produces them.

CWT will pay export bonuses to the bidders only when delivery of the product is verified by the submission of the required documentation.



Vilsack on Failure to Pass Food, Farm and Jobs Bill

Agriculture Secretary Tom Vilsack made the following statement today about Congress’ failure to pass comprehensive, multi-year food, farm and jobs legislation before the current law expires on Sept. 30, 2012:

"In a year that has brought its share of challenges to America's farmers and ranchers, the House Republicans have added new uncertainty for rural America. Unfortunately, House Republicans left Washington without passing comprehensive, multi-year food, farm and jobs legislation, leaving thousands of farming families exposed. U.S. agriculture is fighting to maintain the tremendous momentum it has built over the past three years, but with natural disasters and other external forces threatening livelihoods of our farmers and ranchers, certainty is more important than ever. Americans deserve a food, farm and jobs bill that reforms the safety net for producers in times of need, promotes the bio-based economy, conserves our natural resources, strengthens rural communities, promotes job growth in rural America, and supports food assistance to low-income families. Without the certainty of a multi-year bill, rural communities are being asked to shoulder undue burdens."



AFBF: Cap Gains Tax Precludes Farmers from Passing Torch

The American Farm Bureau Federation is urging Congress to reform the capital gains tax because of its detriment to young and beginning farmers. In a statement submitted to the House Ways and Means and Senate Finance Committees' joint hearing on tax reform, AFBF said the cumbersome tax makes it difficult for current farmers to pass the torch to a new generation of agriculturalists.

Capital gains taxes apply when land and buildings from a farm or ranch are transferred to a new or expanding farmer while the owner is still alive. This occurs most often when a farmer wants to expand his or her farm or ranch to take in a son or daughter, or when a retiring farmer sells his or her business to a beginning farmer.

"Since approximately 40 percent of farmland is owned by individuals age 65 or older, capital gains taxes provide an additional barrier to entry for young farmers and ranchers at a time when it is already difficult for them to get in to the industry," said the AFBF statement. "Capital gains tax liabilities encourage farmers to hold onto their land rather than sell it, creating a barrier for new and expanding farms and ranches to use that land for agricultural purposes."

This added cost also increases the likelihood that farm and ranch land will be sold outside of agriculture for commercial uses to investors who are willing to pay more, causing agricultural land and open space to be lost forever.

The capital gains tax especially hurts farmers because agriculture requires large investments in land and buildings that are held for long periods of time and account for 76 percent of farmers’ assets. Further, 40 percent of all farmers report some capital gains; nearly double the share for all taxpayers. And the average amount of capital gains reported by farmers is about 50 percent higher than the average capital gain reported by other taxpayers.

The top capital gains tax rate will increase by a third on the first of the year, from 15 percent to 20 percent. Farm Bureau supports a permanent extension of the 15 percent rate.



R-CALF Files FOIA to Determine Possible USDA Role

R-CALF USA CEO Bill Bullard filed a request for information under the Freedom of Information Act (FOIA) and/or Privacy Act (PA) for copies of all records of communications between the U.S. Department of Agriculture (USDA) and the eight groups that have banned R-CALF USA from participating in the meeting of the Beef Checkoff Industry Input Group (Checkoff Industry Group) to be held Sept. 24, 2012 in Denver, Colorado. USDA representative Craig Shackelford is scheduled to make a presentation at the meeting.

The eight groups that banned R-CALF USA from participating in the upcoming meeting include: National Cattlemen's Beef Association, U.S. Cattlemen's Association, Meat Importers Council of America, American National CattleWomen, American Farm Bureau Federation, Livestock Marketing Association, National Livestock Producers, and National Farmers Union.

"The purpose of this Freedom of Information Act and/or Privacy Act request is to ascertain the U.S. Department of Agriculture's role or involvement, if any, in the scheduling of or planning for the meeting to be held on September 24, 2012 . . . This request is necessary because a decision was made by the Beef Checkoff Industry Input Group and/or the U.S. Department of Agriculture to ban me or any other representative of R-CALF USA from participating, in any way, at the meeting," Bullard wrote in his request.

Bullard's request continued: "This request is inclusive of all communications and contacts between USDA officials and the aforementioned organizations during the entire period August 10, 2012 through September 20, 2012 regardless of whether such communications or contacts are directly or indirectly related to the upcoming, September 24, 2012 meeting . . . because the organizers of the September 24, 2012 meeting (i.e., the eight organizations listed above) asserted that the basis for excluding R-CALF USA from the meeting included a lawsuit that was filed against the USDA on August 10, 2012."

"We hope USDA was not involved in excluding R-CALF USA, but given USDA's refusal to take any remedial action after learning that NCBA (National Cattlemen's Beef Association) had misused hundreds of thousands of producer checkoff dollars, it's not a far stretch to suspect that USDA is complicit in trying to stop us from restoring the credibility of the Beef Checkoff Program," Bullard commented.



Bank of the West Grows Regional Agribusiness Offices

Bank of the West announced the promotions of four relationship managers in its Omaha and Wichita-based ag offices and the addition of a new ag banker in its Des Moines office.
-- In Omaha, Trevor Svoboda and Brock Thorberg have been promoted to vice president and Jami Marshall to assistant vice president;
-- In Des Moines, Andy Bentley joins the bank as a vice president;
-- In Wichita, Wyatt Rundel has been promoted to assistant vice president.

In their role as relationship managers and ag industry bankers, they are responsible for new business development and client banking in agricultural production and agribusiness sectors. Their areas of focus include cattle feeding, commercial cattle feedlot, swine operations, poultry (broilers and egg production) and dairies, as well as grain elevators, fertilizer dealers, feed manufacturing and packing operations.

They are part of the Bank of the West Central Plains Agribusiness Group that services clients in 10 Midwestern and High Plains states through offices located in Omaha, Lincoln, Des Moines, Wichita and Minneapolis.

"As the nation's second largest bank lender to production agriculture, Bank of the West values deep, long-term relationships with producers and suppliers to the ag industry," said Stephen Hatz, senior vice president and Agribusiness area manager. "The Central Plains Agribusiness Group is committed to customers in the industry and the region and we're pleased to offer an ag team of skilled managers who provide the consistent and thoughtful approach to ag lending that our clients depend on through seasonal and cyclical changes in their business."

The Bank of the West Central Plains Agribusiness Group began with five relationship managers in 2006 and since then has grown to 12 team members.

Trevor Svoboda first joined Bank of the West in 2006 and has been in agricultural banking for eight years. He holds a degree in economics from Nebraska Wesleyan University.

Brock Thorberg joined Bank of the West in 2007 and has been in agricultural banking for eight years. Among his numerous professional affiliations, he is a member of the Nebraska Cattlemen, United Egg Producers, Nebraska Bankers Association Advisory Committee (2009 -- 2012) and the American Bankers Association Ag Bankers Conference Planning Committee. Thorberg holds a degree in agricultural sciences from University of Nebraska-Lincoln.

Jami Marshall has been in the financial services industry for 11 years, with eight of those years concentrated in agricultural banking. She joined Bank of the West in 2005. Marshall holds a degree in marketing management from Bellevue University.

Wyatt Rundel has been in agricultural operations for almost 10 years, and transitioned to ag banking in 2010. He joined Bank of the West in 2011. Rundel holds a degree in agribusiness from Kansas State University.

Andy Bentley has been in banking services since 2002. He rejoins Bank of the West from Market 1, Inc. Bentley holds a degree in agricultural business from Iowa State University.

Bank of the West was ranked as the second largest bank lender to U.S. agriculture, according to an American Bankers Association online ranking of the Top 100 Farm Lenders. The bank began lending to farmers in 1874 and, today, its Agribusiness Division assists customers throughout the United States with offices strategically located in Western and Midwestern agricultural centers including Omaha, Lincoln, Des Moines, Wichita, Ft. Collins, Minneapolis, Dallas, Sacramento, Napa, Modesto, Fresno and Temecula.