Thursday September 20 Ag News

Rural Mainstreet Index Below Growth Neutral Again

While farm income appears to be holding strong, businesses linked to agriculture continue to experience pullbacks in economic activity according to the latest survey of bank CEOs reporting for the Rural Mainstreet economy.  

Overall:  The Rural Mainstreet Index (RMI), which ranges between 0 and 100 with 50.0 representing growth neutral, was up slightly for September at 48.3, from 47.1 in August and 47.9 in July.  However, it was the third straight month the index has been below growth neutral.

Creighton University economist Ernie Goss said, “The drought continues to dampen economic activity for businesses linked to agriculture such as ethanol, and agriculture-equipment sellers.  I expect food processors to take a hit later in the year as higher food prices work their way through the system.”

Farming:  After declining for three straight months, the farmland-price index moved higher.  The September reading climbed to 61.6, its highest level since May of this year, and up from 52.8 in August.  “Bankers in some parts of the region are reporting farmland prices as high as $20,000 per acre.  Despite the drought, farmers continue to put more air into the farmland price bubble.  This is the 32nd consecutive month that the farmland-price index has risen above growth neutral.  The farm-equipment-sales index rose to growth neutral 50.0 from August’s very weak 38.3,” said Goss, the Jack A. MacAllister Chair in Regional Economics at Creighton.

This month, bank CEOs were asked to project farmland price growth for the next year.  There was a great deal of variation across the 10-state region with an average gain of approximately 3 percent expected. Areas that suffered the most from the drought were expected to grow the least.  Approximately 13 percent of the bankers expect price declines over the next year.   This is up from 9 percent this time last when we asked the same question.

This year bankers expect harvesting to occur much earlier than normal.  Only 9 percent anticipate a normal harvest time while 48 percent expect harvesting to occur one to two weeks early and the remaining 58 percent of bankers anticipating harvesting to take place three to four weeks ahead of schedule.

Banking:  Farmers increased their demand for loans with the loan-volume index climbing to 70.2 from 67.6 in August. This marks the seventh consecutive month the index has risen.  The checking-deposit index weakened to 48.3 from 49.1 in August, while the index for certificates of deposit and other savings instruments rose to an anemic 38.4 from 33.0 in August. “As in previous months, the drought appears to be increasing the cash needs of farmers in the region. We have been tracking a reduction in the percent of farmland and farm-equipment cash sales and upturns in the degree of bank financing,” said Goss.

This month we asked bankers about the impact or expected impact of the implementation of the Dodd–Frank Wall Street Reform and Consumer Protection Act on their bank’s costs. Bank CEO’s, on average, expect their bank’s costs to grow by approximately 9 percent as a result of Dodd-Frank.  Roughly 6 percent anticipate an increase of more than 15 percent, 36 percent expect an expansion of 10 percent to 15 percent with the remaining 58 percent forecasting an upturn of 2 percent to 9 percent resulting from the implementation of Dodd-Frank. 

Hiring: September’s hiring index declined to 50.9 from 51.9 in August. “Even though we tracked hiring growth for the month, the index is trending down.  I expect job losses in the months ahead as the impacts of the drought spread to more and more Rural Mainstreet businesses,” said Goss.

Confidence:  The confidence index, which reflects expectations for the economy six months out, increased to a frail 43.0 from August’s 39.6 and well down from June’s much stronger 58.5. “The drought along with a lethargic national economy are negatively affecting the business confidence of bank CEOs in the region,” said Goss.

Home and retail sales: The September home-sales index slipped to a solid 58.8 from 60.2 in August. “As in the national economy, the Rural Mainstreet housing market is improving,” said Goss.

Each month, community bank presidents and CEOs in nonurban, agriculturally and energy-dependent portions of a 10-state area are surveyed regarding current economic conditions in their communities and their projected economic outlooks six months down the road. Bankers from Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota and Wyoming are included.

This survey represents an early snapshot of the economy of rural, agriculturally and energy-dependent portions of the nation. The Rural Mainstreet Index (RMI) is a unique index covering 10 regional states, focusing on approximately 200 rural communities with an average population of 1,300. It gives the most current real-time analysis of the rural economy. Goss and Bill McQuillan, CEO of CNB Community Bank of Greeley, Neb., created the monthly economic survey in 2005.

Iowa:  The RMI for Iowa for September slipped to 48.7 from August’s 49.2. The farmland-price index advanced to 62.8 from August’s 57.2. Iowa’s new-hiring index for September dipped to 49.4 from 51.6 in August.

Nebraska:  For a third straight month, growth in Nebraska’s rural economy moved into negative territory. The September RMI rose to 48.8 from 44.1 in August.  The farmland-price index advanced to 59.2 from August’s 48.9. Nebraska’s new-hiring index expanded to a weak 47.0 from 46.0 in August.  Cameron Mathis with Tilden Bank in Creighton, reported that the harvest was progressing with yields on dryland better than expected and corn yields on irrigated land very good.



USDA, Partner Agencies, to Participate in Series of Regional Meetings to Coordinate Long Term Drought Response

Recognizing that recovery from the drought that affected much of the farm belt will be a lengthy process, Agriculture Secretary Tom Vilsack today announced the scheduling of four regional meetings which will outline available resources to assist with local, regional and state recovery efforts. USDA will coordinate with State and local partners, working closely with the Department of Commerce, the Small Business Administration and the Federal Emergency Management Agency to facilitate these meetings.

"The impact of drought can be felt in rural communities throughout the country and the Obama Administration is committed to doing everything it can to help farmers, ranchers, businesses, and local and county governments meet drought-related challenges," said Vilsack. "President Obama has instructed federal agencies to assist drought impacted regions, and these meetings will provide an opportunity for federal representatives to work cooperatively with local and regional leaders to learn about drought related impacts and determine how to best use existing programs to help speed recovery efforts."

The meetings will be coordinated through area partners, such as universities or business groups and state agencies, and will be invitational and regional in scope. Specific details will be announced later, but the meetings will be kicked off in Omaha, Nebraska, on October 9, with meetings to follow in Ohio, Colorado and Arkansas. The meetings will assess current and emerging drought recovery issues. USDA, in partnership with other federal agencies, will work with local government, community, and business leaders, regional planning organizations, and economic and state development and agriculture organizations to explore issues ranging from infrastructure challenges to development and financing needs, attempting to look at the total recovery picture for the region. This team approach has been employed elsewhere and has proved to be an effective way to further local and regional recovery planning efforts by kick-starting a collaborative process among participants from the local community as well as subject matter experts.

The Secretary also announced the implementation of the National Disaster Recovery Framework (NDRF). The framework links local, State, Tribal and Federal governments, the private sector and nongovernmental and community organizations that play vital roles in recovery. It is a scalable, adaptable coordinating structure that helps align key roles and responsibilities in response to disaster recovery. The full text of the framework can be found at http://www.fema.gov/recoveryframework/.

USDA has designated all or parts of 39 states as natural disaster areas this year. The Administration has announced a number of policy changes and introduced greater flexibility in programs aimed at helping address the impact of drought, including additional help for livestock producers, small business lending assistance, and trucking waivers to provide relief. SBA, for example, has followed USDA's disaster designations and has issued agency declarations covering more than 1,630 counties, providing a pathway for small businesses, small agricultural cooperatives and non-farm small businesses that are economically affected by the drought in their community to apply for SBA's Economic Injury Disaster Loan (EIDL). USDA has opened, with certain conditions, conservation lands to emergency haying and grazing, lowered the interest rate for emergency loans and worked with crop insurance firms to provide flexibility to farmers. Additionally, the Interior Department has provided grazing flexibility and the Small Business Administration is working to help with access to capital and credit.

The SBA has issued 128 agency drought declarations in 38 states covering 2,249 counties. These declarations allow small businesses, small agricultural cooperatives, small non-farm businesses, small businesses engaged in aquaculture and most private, non-profit organizations of any size affected by the drought to apply for SBA working capital loans of up to $2 million. Counselors from SBA's network of 14,000 resource partners are helping rural entrepreneurs by sharing business continuity tools and long-term strategies to enable these companies to survive and grow. In the case of hardship, SBA is offering upon request the deferment of loan payments on SBA disaster assistance loans for up to six months. SBA is reminding commercial lenders of SBA guaranteed loans of the ability to consider deferral of loan payments in hardship cases. SBA's 68 district offices stand ready to provide support and information to all drought impacted small businesses.



Former Ag Secretaries Featured Sept. 28 at Heuermann Lecture

Feeding the world is the topic when four former U.S. secretaries of agriculture discuss "The Land-Grant Mission of 2012 – Transforming Agriculture for the 2050 World" Friday, Sept. 28, at the Lied Center for Performing Arts, 12th and R.

The 7:30 p.m. event is the first Heuermann Lecture of the 2012-2013 season.  It features these former agricultural secretaries: Nebraska's U.S. Sen. Mike Johanns, Nebraska native Clayton Yeutter, John Block and Dan Glickman.

The lecture is free, but tickets are needed.  Free general admission tickets are available by calling the Lied Center ticket office – 402-472-4747 in the Lincoln area, or toll-free 1-800-432-3231.

Jeff Raikes, chief executive officer of the Bill and Melinda Gates Foundation, and Ronnie Green, University of Nebraska vice president and Harlan vice chancellor, Institute of Agriculture and Natural Resources, will moderate the discussion.

Heuermann (pronounced Hugh-erman) Lectures in IANR at the University of Nebraska-Lincoln focus on providing and sustaining enough food, natural resources and renewable energy for the people of the world, and on securing the sustainability of rural communities where the vital work of producing food and renewable energy occurs.

This lecture will stream live at http://heuermannlectures.unl.edu, where it will be archived soon after the lecture. All Heuermann Lectures are broadcast on NET2 World at a date following the lecture.  The Sept. 28 lecture also will be broadcast on RFD-TV and RURAL TV at a date following the lecture.

Heuermann Lectures are made possible through a gift from B. Keith and Norma Heuermann of Phillips, long-time university supporters with a strong commitment to Nebraska's production agriculture, natural resources, rural areas and people.



'Plant a Tree — Plant it Forward' to Celebrate ReTree Nebraska Sept. 23-29

            Recent high temperatures, fierce wildfires and lack of significant rainfall are increasing interest in protecting and promoting one of Nebraska's most precious resources, trees. More than 30 towns have committed to planting an estimated 500 trees this fall in an effort to improve city parks, trails and school yards.

            ReTree Nebraska urges Nebraskans to plant a tree in celebration of ReTree Week, Sept. 23-29. This 10-year cooperative initiative promotes the proper planting and care of 1 million trees in Nebraska communities by 2017. More information is available at ReTreeNebraska.org.

            "Trees provide important benefits to Nebraska communities," said Sally Ganem, Nebraska's first lady and ReTree Nebraska chair. "Some benefits of trees we can see, some we can't. All of them carry forward to benefit future generations of Nebraskans. Our investment today will pay dividends in the future."

            Severe weather, drought, poor planting practices or species selection, insects, disease and an aging tree population all have contributed to the decline in the number of community trees across the state. Planting new trees is an essential part of maintaining Nebraska's community forest, and fall planting offers important benefits.

            "Fall is an excellent time to plant trees," said Jessica Kelling, ReTree Nebraska coordinator. "Cooler temperatures mean newly planted trees can get a head start on spring growth by establishing good root systems."

            Across Nebraska, there are about 470,000 acres of community forests. These trees were planted by previous generations that understood the long-term benefits they would provide, such as cleaner air, healthier soil and wildlife habitats. Planting a tree provides much-needed shade during hot Nebraska summers, which helps reduce energy costs for homeowners, schools and businesses.

            On average, every dollar invested in the community forest returns an average of $2.70 in net annual benefits. Nearly $9.7 billion in environmental, social and economic benefits are provided by 13.3 million trees in Nebraska communities, but that's half the number of trees that were present 30 years ago.

            A network of volunteers across the state works closely with ReTree Nebraska organizers to help promote ReTree Week. More than 300 ReTree ambassadors in 112 Nebraska communities coordinate tree planting and educate citizens about the economic, environmental, social, psychological and physical value of trees.

            "ReTree Nebraska strives to educate people about the benefits of trees and proper planting procedures to sustain and extend the tree's life," said Eric Berg, Nebraska Forest Service community forestry and sustainable landscapes program leader. "Creating and maintaining a sustainable landscape is about selecting and properly planting the right tree, in the right place, in the right way."

            Libraries are getting involved in ReTree Week this year by providing book displays, bookmarks, posters and activities to help educate Nebraskans about the benefits of trees.

            ReTree Nebraska is a cooperative effort of the Nebraska Forest Service, Nebraska Statewide Arboretum, the University of Nebraska Rural Initiative, the University of Nebraska–Lincoln Department of Agronomy and Horticulture and the Institute of Agriculture and Natural Resources. Some projects are taking advantage of a mini-grant funded by the Nebraska Environmental Trust, a beneficiary of the Nebraska Lottery.



Beef Checkoff Sets FY2013 Plan of Work

The Cattlemen’s Beef Board will invest about $40.3 million into programs of beef promotion, research, consumer information, industry information, foreign marketing and producer communications in Fiscal Year 2013, if today’s recommendation of the Beef Promotion Operating Committee is approved by USDA, following review by the full Beef Board.

In action concluding its two-day meeting in Denver this week, the Operating Committee — including 10 members of the Beef Board and 10 members of the Federation of State Beef Councils — approved checkoff funding for a total of 42 “Authorization Requests,” or proposals for checkoff funding in the fiscal year beginning Oct. 1, 2012. The committee also will request full Board approval of a budget amendment to reflect recategorization of the FY2013 budget in accordance with the programs approved.

"We really had a tremendous task before us,” said Beef Board and Operating Committee Chairman Wesley Grau, a cattleman from New Mexico. “We had to find ways to cut nearly $3 million from the proposals presented to us for checkoff funding in the coming year.”

Among the cuts in program proposals was a $300,000 cut from consumer advertising; $100,000 from nutrition research; a $275,000 proposal for programming about the beef industry on America’s Heartland on PBS; a $100,000 cut from the national Beef Quality Assurance program; and a total of more than $811,000 in cuts from various foreign-marketing proposals.

“It was a stressful process,” Grau said, “but I am just so pleased with how members of the committee dug in and made the tough decisions. In the end, I think the producers and importers who invest in their beef checkoff will be proud of the Plan of Work the Operating Committee has moved forward. We are leveraging every checkoff dollar to meet our goals the best we possibly can with the limited budget we have.”

Seven national beef organizations, serving as checkoff contractors and subcontractors, had proposals approved by the Operating Committee (and the number of proposals and dollar amounts approved) are as follows:
-    National Cattlemen’s Beef Association (20 programs totaling about $29.9 million)
-    U.S. Meat Export Federation (13 programs totaling about $7.4 million)
-    Cattlemen’s Beef Board (one program totaling $1.5 million)
-    American National CattleWomen (two programs totaling about $600,000)
-    Meat Importers Council of America (three programs totaling $475,000)
-    North American Meat Association (two programs at $415,000)
-    National Livestock Producers Association (one program at $25,000)

Broken out by budget component, the Fiscal Year 2013 Plan of Work for the Cattlemen’s Beef Board budget includes:
-    $16.78 million for promotion programs, including consumer advertising, retail marketing, foodservice marketing, new product and culinary initiatives; a Northeast Beef Promotion Initiative to build demand in densely populated Northeast states, and veal marketing and communications.
    
-    $6.76 million for research programs, focusing on a variety of critical issues, including beef safety research, product enhancement research, human nutrition research, and market research.
    
-    $3.74 million for consumer information programs, including a Northeast public relations initiative, national consumer public relations, the 2013 National Beef Cook-Off, a "Telling the Beef Story" speakers bureau, including the National Beef Ambassador Program, and nutrition-influencer relations.
    
-    $4.11 million for industry information programs, comprising beef and dairy-beef quality assurance programs and dissemination of accurate information about the beef industry to counter misinformation from anti-beef groups and others, also referenced as "issues and reputation management."
    
-    $7.42 million for foreign marketing and education efforts about U.S. beef in the ASEAN region; the Caribbean; Central America/Dominican Republic; South America; Europe; the Middle East; China/Hong Kong; Japan; Mexico; Russia; South Korea; and Taiwan.
    
-    $1.5 million for producer communications, which includes producer outreach using paid media, earned media, direct communications, and communications through livestock markets and state beef councils.

Other categories funded through the 2012 CBB budget include $179,000 for evaluation, $200,000 for program development, $453,000 for USDA oversight (increased by $150,000 because of estimated costs of defending recently filed litigation against the beef checkoff); and about $1.97 million for administration, which includes costs for Board meetings, legal fees, travel costs, office rental, supplies, equipment, and administrative staff compensation. Fiscal Year 2013 begins Oct. 1, 2012.

For more information about the Operating Committee meeting and your beef checkoff program, in general, visit www.MyBeefCheckoffMeeting.com and www.MyBeefCheckoff.com.



EPA Releases August Biodiesel Volume

The EPA said Thursday that 100 million gallons of biodiesel were produced in August, reporting year-to-date production of 757 million gallons through the end of the month.  Biodiesel production is reported under the EPA's Biomass-based Diesel category in the Renewable Fuel Standard (RFS). To view the figures, visit the EPA's website here. The EPA numbers show a total of 103 million gallons of Biomass-based Diesel for the month of August, but that figure also includes renewable diesel production.

Last year, the biodiesel industry set a new production record of nearly 1.1 billion gallons, supporting more than 39,000 jobs across the country. Made from an increasingly diverse mix of resources such as recycled cooking oil, soybean oil and animal fats, biodiesel is the first and only EPA-designated Advanced Biofuel that's produced on a commercial scale across the U.S. It is produced in nearly every state in the country and is used in existing diesel engines without modification.



“Agflation”: world food prices projected to reach record highs in 2013

Food prices are once again on the rise, fueled by the lingering U.S. drought and water scarcities in South America and Russia.   According to a report released today by the Rabobank Food & Agribusiness Research and Advisory (FAR) group, such prices are likely to reach an all time high the first quarter of 2013 and will present a challenge for the livestock industry.

The report, titled “Re-entering Agflation” highlights how the affected commodities are those used in animal feeds and not considered core food staples of the world’s developing economies – a striking difference from 2008, when low wheat inventories and restricted rice exports held back the availability of those commodities for consumers.

“The impact on the poorest consumers should be reduced this time around, as purchasers are able to switch consumption from animal protein back towards staple grains like rice and wheat,” said Luke Chandler, Global Head of Agri Commodity Markets Research at FAR and author of the report. “In developed countries – especially the U.S. and Europe – where meat and corn prices elasticity is low, the knock-off effect of high grain prices will be felt for some time to come.”

Chandler notes that the impact of higher grain and oilseed prices will be significant for the livestock sector as it is likely to be squeezed by higher feed costs.  The long production cycles of livestock, notably cattle, will keep pressure on rising food prices as herds take the time to rebuild.  The full effect of this commodity price rally and the subsequent lower meat and milk output, will be a multiyear rebuilding of herds, which will keep price levels high. Meanwhile, beverages and value-added product sectors will be less affected as grains and oilseeds constitute a smaller part of the overall production costs. The report estimates that the Food and Agricultural Organization (FAO) Food Price Index will rise by 15 percent by the end of June 2013. Rabobank expects prices – particularly for grains and oilseeds – to remain at high levels for at least the next 12 months.

The report also notes that stockpiling and export bans are definitely possible for the end of 2012 and 2013 as governments try to protect consumers from rising food prices. Rabobank suggests that such efforts will be counterproductive and cause even higher spikes in commodity and food prices.



NCGA Finds Flaw, Bias in Biotech Study Findings, Questions Trial Methodology

Yesterday, a group of primarily French researchers published a paper questioning the safety of Roundup Ready corn and glyphosate, commonly known as Roundup. The National Corn Growers Association, after reviewing this study, has concluded that the research is questionable, at best, and does not offer credible evidence that biotechnology in agriculture negatively impacts animal health.

"There has been a strong backlash against the validity of this study in the scientific community with some even questioning how it was ever published," said NCGA President Garry Niemeyer. "We join these respected academics in questioning the methods used and conclusions drawn. With so many issues already apparent and in the absence of other reputable data that would support the study's conclusions, we hope that the public will see that this is an agenda-driven attack on agriculture and not a scientifically-valid study."

Published in Food and Chemical Toxicology, "The Long-Term Toxicity of a Roundup Herbicide and a Roundup-Tolerant Genetically Modified Maize claims that, in a two-year feeding study, rats fed Roundup-ready corn and .1 parts per billion glyphosate had unusual tumor development and early death.  The group of researchers conducting the study, known to have a bias against biotechnology, executed a deeply-flawed study. Notably, many vocal critics of biotechnology have even spoken out against this research and its findings. 

NCGA and the scientific community question the study for a variety of reasons. First, the breed of rodent used is prone to developing tumors at roughly two years of age. Thus, in selecting this breed for a two-year trial, the scientists selected rodents already likely to develop tumors by the trial's completion, regardless of diet.

Additionally, the trial design included other intrinsic flaws, allowing unfettered access to a food supply unreflective of the make-up or quantity of a diet that would otherwise support rodent health. Reliant upon unfounded, biased claims, the structure nearly-ensured rodents in the test groups would experience the side effects of age and improper care.

"Most toxicology studies are terminated at normal lifespan, about two years," said Tom Sanders, the head of the Nutritional Sciences Research Division of King's College London. "Immortality is not an alternative. No food intake data is provided or growth data. This strain of rat is very prone to mammary tumors particularly when food intake is not restricted."

NCGA also finds issue, again like many others in the scientific community, with the conclusions drawn by the researchers from this study as they are not statistically supported. The statistical relevance of the study itself is questionable as the researchers used very small, unequal sample sizes for the treated and control groups. Unbiased party attempts to review the raw data and draw accurate statistical conclusions have been fruitless as the researchers have declined to make the control group data available.

"In my opinion, the methods, stats and reporting of results are all well below the standard I would expect in a rigorous study - to be honest I am surprised it was accepted for publication," said Cambridge University Winton Professor of the Public Understanding of Risk David Spiegelhalter.

Proponents of the California ballot initiative that would require a variety of increased food labeling, Proposition 37, released a statement using the flawed study as evidence of the ill-effects of biotechnology, claiming that the findings illustrate the need to pass this legislation. With this study's use as a justification for passing legislation which would mandate confusing, even illogical food labels, and which would serve as a fertile breeding ground for nuisance lawsuits against food manufactures, it is imperative that public awareness of the study's discretization in the scientific community grows rapidly.

The group opposing California Proposition 37, to which NCGA belongs, released a statement yesterday questioning the study and stressing the potential implications of passing this legislation.



BASF to strengthen global crop protection business with acquisition of Becker Underwood

BASF  plans to acquire Becker Underwood for a price of $1.02 billion (€785 million). The company, headquartered in Ames,  Iowa, is one of the leading global providers of technologies for biological seed treatment, seed treatment colors and polymers, as well as products in the areas of biological crop protection, turf and horticulture, animal nutrition and landscape colorants and coatings.  Becker Underwood  has 10 production sites worldwide and 479 employees. BASF came to an agreement with Norwest Equity  Partners  (NEP)  to acquire Becker Underwood  which has been a portfolio company of NEP since 2004. The purchase is subject to approval by the responsible authorities  and legal closing of the transaction is expected  by the end of 2012. 

“We are impressed with  Becker Underwood’s ability to translate growers’ needs into innovative, tailor-made solutions  that can promote higher yields while conserving resources.  Becker Underwood  is to  become part of BASF  and  we are excited that together with our new colleagues we can continue expanding our competencies. Particularly in the  rapidly-growing  seed treatment market,  we will  be able to  develop innovative solutions for agriculture,” said Dr. Andreas Kreimeyer, Research Executive Director and Member of BASF’s Board of Executive Directors responsible for the Agricultural Solutions segment. 

Becker Underwood  is expected to achieve  sales of  $240 million (€185 million) for fiscal year 2012, ending on September 30. As part of  the acquisition, BASF’s Crop Protection division will create a strategic global business unit called Functional Crop Care. The unit will merge BASF’s existing  research, development and marketing activities  in the areas of  seed treatment, biological crop protection, plant health, as well as water and resource management with those of  Becker Underwood.  Becker Underwood’s animal nutrition business will be integrated into BASF’s Nutrition & Health division.  “Becker Underwood has a strong position in North America. We will continue to expand this  core business as we expand globally. Together we can sustainably create value for our customers,” said Markus Heldt, President of BASF’s Crop Protection division. “We are thrilled  at the prospect of  working  with the  highly-qualified employees at  Becker Underwood  as we continue to develop our combined businesses.”

“Over the past years, Becker Underwood has established itself as an innovative provider of solutions  for agriculture,” emphasized Dr. Peter Innes, Chief  Executive Officer  of  Becker Underwood. “Strengthened by the power of BASF’s research capabilities as well as its existing portfolio of solutions, we will be able to develop and globally market new types of solutions for growers.”

Upon receiving the necessary legal approvals, the majority of Becker Underwood’s business will be integrated into BASF’s Crop Protection division. In 2011, the division recorded sales of  around €4.2 billion and is expecting another  top year  in 2012 as well. With its products and services, BASF helps  growers  to improve their yields and the quality of their products. 



NEW RT 4™ HERBICIDE WILL BE AVAILABLE FOR 2013 BURNDOWN APPLICATIONS

A new burndown herbicide offering improvements over previous products powered by Roundup Technology® will be available to wheat growers across the Western Great Plains in time for spring burndown, 2013.

The new product, branded RT 4™ herbicide, is specially reformulated for farmer and retailer use and can be applied preplant, post-harvest and to fallow ground and will replace the current RT 3® brand going forward.

RT 4 is an American-made product that has been tested and formulated exclusively for Western Plains growing conditions. It will be priced competitively with foreign-made generic glyphosate formulations, according to Monsanto. Wayne J. Jelinek, Monsanto U.S. Roundup and RT 4 Manager, explains that growers will notice significant improvements in RT 4 over the previous RT 3 herbicide.

 “The most noticeable benefits will be the improved handling characteristics and reduced foaming,” Jelinek explains. “The new herbicide will maintain the same level of concentration, offering improved logistical efficiency by covering more acres per gallon than most generics and branded imitators.”

RT 4 herbicide will also feature reliable, consistent performance on tough-to-control weeds, including annual and perennial weeds, improved performance under cool and wet spring conditions, and better performance during hot and dry summer weather, according to Monsanto.

“Monsanto’s commitment to bringing improved formulations to growers across the U.S. and the world is our primary objective,” Jelinek stresses. “Roundup® brand agricultural herbicides have been on the market since 1974, and we have worked hard to improve these formulations many times over. We are not yet finished, and Monsanto will continue to improve on its flagship herbicide brands.”

RT 4 herbicide will be supported by Monsanto’s Tough Weed, Tough Conditions Warranty and the Roundup 30-Minute Rainfast Warranty. Monsanto will begin shipping RT 4 in November of 2012, making this latest brand available for the Spring 2013 burndown season.



Scientists: HFCS Should Not Be Blamed for Obesity

A new article published in International Journal of Obesity found there is no evidence to suggest the current obesity epidemic in the United States can be specifically blamed on consumption of high fructose corn syrup (HFCS).

The commentary concludes that after an extensive review of all available HFCS research, there is overwhelming evidence showing HFCS is nutritionally equivalent to sugar. This opinion is in-line with the American Medical Association and the Academy of Nutrition and Dietetics, both of which concluded that HFCS is not a unique cause of obesity.

The authors state that while there has been a large amount of debate in the media about the impact of HFCS on obesity levels, the fact is "Sucrose (sugar) and HFCS are very similar in composition....and are absorbed identically in the human GI tract."

"The public discussion about HFCS will likely continue to rage on and more studies will be conducted," said James M. Rippe, M.D., Founder and Director of the Rippe Lifestyle Institute, and Professor of Biomedical Sciences at the University of Central Florida, one of the article's authors. "However, at this point there is simply no evidence to suggest that the use of HFCS alone is directly responsible for increased obesity rates or other health concerns."

The article goes on to discuss a number of research trials that have been conducted on the issue of HFCS and obesity, and concludes that at this time the evidence shows no short-term health differences between the use of HFCS or sugar could be detected in humans. Weight gain, glucose levels, insulin and appetite were not adversely affected by the use of HFCS over sugar.

The commentary was co-authored with Dr. Rippe by David M. Klurfeld, Ph.D. of the USDA Agricultural Research Service, John Foreyt, Ph.D. of Baylor College of Medicine, and Theodore J. Angelopoulos, Ph.D., MPH Professor and Director, Laboratory of Applied Physiology Department of Health Professions at University of Central Florida.

HFCS was developed in the mid-1960s as a more flexible alternative to sugar and was widely embraced by the food industry. The use of HFCS grew rapidly from 1970-1999 where usage peaked. Since 1999, the use of HFCS has declined while obesity rates have continued to rise. Sucrose is still the dominant sweetener worldwide with over nine times the consumption of HFCS.