Tuesday September 4 Ag News

Scout Fields to Avoid Losses Due to Aflatoxin Contamination
Larry Howard, UNL Extension Educator, Cuming County

The unusually high temperatures and drought this summer are having severe impacts on Nebraska corn. In addition to reductions in test weight and overall yield, secondary problems are developing in some corn fields as a result of these conditions.  The following has been shared by UNL Extension Plant Pathology.

Drought and high temperatures promote development of the disease Aspergillus ear rot. The fungi that cause this disease can produce aflatoxin.  Aflatoxin is one of many chemicals in a group known as mycotoxins that are produced by fungi (molds). Mycotoxins, such as aflatoxin, can be toxic to animal and human consumers and, at certain concentrations, can lead to dockage or rejection of grain at elevators.

Corn harvested for grain to this point has been predominantly from fields that sustained substantial drought damage leading to early maturation and plant death. Notable aflatoxin contamination appears to be in a small percentage of southeast Nebraska fields, based on samples submitted to several laboratories in the area.

Mycotoxins are common and can be safely consumed at low concentrations. The concentration of aflatoxin that is considered safe for consumption depends on the age and species of the consumer based on Action Levels identified by the FDA.

Farmers and crop consultants can scout high risk fields for Aspergillus ear rot as an indicator for aflatoxin, but only lab testing of grain samples can accurately identify the concentrations of aflatoxin in the grain. Accurate lab test results for aflatoxin will depend greatly on the quality of the sample that is collected and the laboratory methods used to test it. The test results are only applicable to the sample that is submitted, so it is very important to collect an adequate sample for the best results. Refer to the UNL publication on Sampling and Analyzing mentioned below for recommendations on how to collect and submit a high quality sample.  Contact and submit samples to a laboratory that is certified for mycotoxin analysis for the most accurate results.

Ear rot diseases and aflatoxin are not evenly distributed across fields or in the grain, so scouting and/or sampling should include a substantial portion, at least several acres. The presence of the fungus in kernels does not always correlate well with the presence of aflatoxin, nor does the absence of visible fungal growth necessarily indicate the absence of aflatoxin.
·    Open husks to view a large number of ears.
·    Look for the presence of dusty yellow-green to olive-green spores, especially on the surface of damaged kernels or ear tips.
·    Pay special attention to higher risk areas.

If fields have documented Aspergillus ear rot and/or risk of aflatoxin contamination, it is recommended that you harvest and keep grain separate from other grain at less risk, such as irrigated fields. Storage of affected grain is not recommended because ear rot diseases and mycotoxins can continue to accumulate during storage. If storage is necessary, cooling and drying grain to less than 15% moisture within 48 hours of harvest will help to slow fungal growth and aflatoxin production. Grain intended to be stored for longer periods of time should be dried to less than 13% moisture.

Presently, it is still early in the harvest to know the extent of aflatoxin contamination in this year’s corn crop, but as of late August only a small percentage appears to be affected.




Recommendations for Storing Drought-stressed Corn
Tom Dorn, UNL Extension Educator

As most rain-fed corn producers are well aware, this year’s hot dry conditions have resulted in lower yields with moderately lower test weights. They have also brought concerns about potential mycotoxin contamination in the grain.

The only way to know if there are mycotoxins in your grain and which specific mycotoxins are present is to have representative samples tested by a certified lab. If the initial screening indicates the presence of mycotoxins, quantitative tests should be run to determine the level of contamination.

Grain Storage Management
Many species of fungi cause mold in grain. Most become associated with the grain in the field, but may continue to grow and reproduce if grain is stored under the wrong moisture and temperature conditions in the bin. If there is a chance molds that produce mycotoxins may have contaminated the bin, dry the grain to 14% moisture. If it will be stored for over a month, dry it down to 13%.

If the corn is found to have any level of mycotoxin contamination, partially fill the bin — one-fourth full is a good place to start — so the fan will produce higher airflow rates (cfm/bu) and dry the grain quicker. If equipped, run a couple rounds with the stirring system, then run a few rounds each time you add 4 or more feet of corn into the bin to equalize the moisture content and prevent over-drying the bottom of the bin. However, don’t overstir as it can cause cracks in the seed coat that can allow fungal organisms to enter the kernels

In addition to getting the corn dry, you need to cool the grain whenever air temperature allows. This will slow the growth rate of the fungal organisms. Run the fans at every opportunity when the air temperature is 10 degrees below the grain temperature in the bin. Continue running fans until the grain is 30° F but there is no need to get it colder than 30° F.

Bin Tips
Given the potential for molds and mycotoxins from this year's crop, be sure to extend some extra care to cleaning up harvest equipment now and grain bins later.
-    Next summer, clean out grain and grain dust from bins after they're emptied.
-    If the bin contained moldy grain, spray disinfectant on all inside surfaces. Use a solution of 3/4 cup of household bleach per each gallon of water.  (That's equivalent to 1 gallon of bleach to 20 gallons of water.)  Remember that chlorine fumes are dangerous and this clean-up job requires good ventilation.  Also, never mix bleach with ammonia or vinegar.



Tips for Managing Alfalfa after a Rain
Bruce Anderson, UNL Extension Forage Specialist

Many dryland alfalfa fields have been sitting dormant for weeks but could start to regrow if we get rains soon. If this happens, how should these fields be managed?

It will depend on when that rain occurs and if it becomes enough to support regular growth rates. Since we are approaching the usual winterizing season for alfalfa, alfalfa should be allowed to grow without any harvest until mid-October. About the only exception to that recommendation might be to consider a salvage harvest or a stimulation harvest.

A salvage harvest may be warranged if 1) your alfalfa has gone fully dormant due to drought; 2) there is enough standing growth to harvest economically, and 3) that standing growth is starting to drop leaves. It doesn’t matter if it rains or not. Harvest shouldn’t hurt the stand and will give you some needed feed.

A stimulation harvest would involve cutting off any standing crop immediately before or as soon as possible after a heavy rain to encourage new shoots. Regrowth may develop a little faster without the influence of a standing crop. Cutting isn't necessary, but it might help regrowth.

It’s been a tough year for alfalfa and without rain, some of it may not survive the winter. Even with rain, plants will need adequate time to winterize and provide for a better crop in 2013.



Solum’s Ames Soil Test Lab Receives State Certifications

Solum, Inc., a leader in advanced field measurements for commercial agriculture, announces that is has received state soil laboratory certification for both Iowa and Minnesota for its new facility in Ames, Iowa.

State-level laboratory certification is an important component of soil testing quality assurance for US agriculture. To be granted certification, participating laboratories are required to measure nutrients from a set of standardized test soils and report results back to the testing programs. These results form the basis of state-level certification in many states.

“Quality is a cornerstone of our lab process, and we are pleased to share this news with our Iowa and Minnesota customers” says Mike Preiner, Solum co-founder and President. “We look forward to continuing to expand our state-level certifications as demand for field-moist soil analysis continues to increase.”

Earlier this year, Solum expanded in the Midwest by opening a new, state-of –the-art soil analysis facility in Ames, Iowa. At this facility Solum provides field-moist soil sample analysis for all soil nutrients for growers, consulting agronomists and agricultural service providers. The Company’s 12,500 square foot facility includes a full soil preparation and analysis lab as well as business offices.

“We are very pleased with the progress at the new facility” adds Preiner. “Transferring our process and achieving these state-level certifications is a direct reflection of our emphasis on quality.”

The Solum Ames facility will begin receiving commercial samples during the second week of September for the fall 2012 season.



Despite Drought, Some Optimism Remains
Katie Micik, DTN Markets Editor

Farmers have lowered their expectations for this year's profitability after suffering through one of the worst droughts in half a century, but they are more hopeful about the future than they were before 2012 planting, according to the latest DTN/The Progressive Farmer Agriculture Confidence Index.

The composite Agriculture Confidence Index, which accounts for how farmers feel about both their present and future situations, came in at 107. A value of 100 is considered neutral; higher numerical values indicate optimism and values lower than 100 indicate pessimism. When the composite is split into separate time frames, farmer responses created a rating of 120.4 for the present, pre-harvest mood, compared to a 98.2 rating for future expectations.

Those numbers show farmers' attitudes changed over the course of the growing season. Overall optimism about the present crop year has eroded, down 20 points from last March's 140, while expectations for the future have strengthened, up to 98.2 from last March's 87.4.

The Agriculture Confidence Index takes the pulse of the farm economy before spring planting, before harvest and after harvest by surveying at least 500 crop and livestock producers about their current input costs and farm income and whether they think those indicators will be better, worse or the same a year from now. The current ratings are based on responses to a telephone survey in August.

AGRIBUSINESSES MORE PESSIMISTIC
Agribusiness owners have taken a more decidedly pessimistic view, particularly about the prospects for next year, according to the DTN/The Progressive Farmer Agribusiness Confidence Index. The agribusiness composite index is 93.3. Business owners gave their current situation an optimistic 112.2 rating, with expectations for the future scoring 80.5. That’s the most pessimistic reading since DTN/The Progressive Farmer began to track business confidence in 2010.

For the agribusiness index, responses are collected from a minimum of 100 agribusinesses. Questions focus on current sales and profitability, as well as what direction business owners see those numbers heading 12 months into the future.

This is the first time the two indexes -- one focused on farmer attitudes and one on agribusinesses -- have been released at the same time.

The results from the indexes chronicle how a crippling drought shifted farmers' perspective on the current crop year and how the drought mentality makes agribusiness worry that farmers will be more conservative with their cash.



USDA Announces Commodity Credit Corporation Lending Rates for September 2012

The U.S. Department of Agriculture's Commodity Credit Corporation (CCC) today announced interest rates for September 2012. The CCC borrowing rate-based charge for September 2012 is 0.125 percent, down from 0.250 in August 2012. For 1996 and subsequent crop year commodity and marketing assistance loans, the interest rate for loans disbursed during September 2012 is 1.125 percent, down from 1.250 in August 2012.  In accordance with the 2008 Farm Bill, interest rates for Farm Storage Facility Loans approved for September 2012 are as follows, 1.125 percent with seven-year loan terms, up from 1.000 in August 2012; 1.625 percent with 10-year loan terms, unchanged from 1.625 in August 2012 and; 1.875 percent with 12-year loan terms, unchanged from 1.875 percent in August 2012.



NCBA Urges EPA to Not Lower the Dust Standard

The National Cattlemen’s Beef Association (NCBA) clearly spelled out its opposition to any attempt by the Environmental Protection Agency (EPA) to lower the coarse particulate matter (PM) National Ambient Air Quality Standard (NAAQS) in its official comments submitted to the agency last week.

PM, which includes both urban and rural dust, is regulated under the Clean Air Act. Cattle ranches in arid states can have a difficult time meeting the PM standard due to windblown dust and dust kicked up by cattle movements. Because of arid climates and natural phenomenon, it is difficult for some cattle operations to ensure compliance with the current standard despite the use of best management practices.

“The fact is there is only so much that farmers and ranchers can do to mitigate dust on their operations. Mother Nature controls the rest,” said Ashley McDonald, NCBA deputy environmental counsel. “Our members implement dust control measures, ranging from soil conservation to fugitive dust control plans using best available control measures, which they implement every day of every year while supplying America with the food that it needs.”

If EPA chooses to lower the dust standard in the final rule, cattle producers may be faced with increased regulation and other negative consequences. “A more stringent PM standard will lead to employment impacts and economic dislocation. Current operations have a difficult time meeting the current PM standard and further tightening the standard would have disastrous effects on America’s rural economies,” the comments state, adding that a tougher standard would, “disproportionately affect those very areas where rural, coarse PM predominates and would result in economic dislocation with documented health impacts.”

McDonald made it clear that if the PM NAAQS is further reduced, it will be virtually impossible for current agricultural facilities, including feedlot operations, to demonstrate compliance despite the lack of evidence showing any negative health effects from rural dust at normal levels.

“Over the past 30 plus years, many experienced medical and public health experts in respiratory diseases, epidemiology, toxicology and clinical treatment have noted that coarse PM has never been demonstrated to have adverse health effects at ambient levels,” said McDonald. “The PM standard should be based on sound science. EPA has not presented such evidence; therefore the standard should not be lowered.”

EPA intends to publish a final PM standard by Dec. 14.



Biofuel Groups Intervene to Defend EPA’s Advanced and Cellulosic Biofuel Targets

Seven biofuel organizations today filed an intervenors brief in the American Petroleum Institute case against the Environmental Protection Agency challenging the 2012 cellulosic and advanced biofuel requirements under the Renewable Fuel Standard.  The groups are defending EPA's ability to set cellulosic and advance biofuels targets that are based on market data and seek to spur development, as consistent with the RFS as passed by Congress.  The groups include the Advanced Biofuels Association, the Advanced Ethanol Council, the American Coalition for Ethanol, the Biotechnology Industry Organization, Growth Energy, the National Biodiesel Board, and the Renewable Fuels Association.

In the brief, the groups argued that "[f]or the 2012 cellulosic biofuel requirement, EPA reasonably based its analysis on EIA's projection, but then took into account more specific information it had from individual facilities. Precedent makes clear that EPA can adopt standards calculated to spur development, consistent with Congress's express statutory objectives."  Ultimately it is EPA who "is charged with judging credibility and weighing the record evidence."

Likewise, the brief supports EPA's determination to retain the overall advanced biofuels mandate as "well within its discretion.  Nothing in the statute requires EPA to make specific 'numerical projections' for each advanced biofuel before deciding to maintain the congressionally-mandated overall volume" as API argues.

The case will be heard before the United States Court of Appeals for the District of Columbia Circuit. No oral arguments have been scheduled.



CWT Assists with 1.1 Million Pounds of Cheese, Butter and AMF Export Sales

Cooperatives Working Together (CWT) has accepted seven requests for export assistance from Dairy Farmers of America, Darigold and United Dairymen of Arizona to sell 734,139 pounds (333 metric tons) of Cheddar and Monterey Jack cheese; 352,740 pounds (160 metric tons) of butter; and 44,082 pounds (20 metric tons) of anhydrous milk fat (AMF) to customers in Asia, Central America and the Middle East. The product will be delivered September through December 2012.

In 2012, CWT has assisted member cooperatives in making export sales of Cheddar, Monterey Jack and Gouda cheese totaling 79.1 million pounds, butter totaling 56.7 million pounds, and AMF totaling 123,459 pounds, to 34 countries on four continents. On a butterfat basis, the milk equivalent of these exports is 1.969 billion pounds, or the same as the annual milk production of 93,700 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.



USDA Dairy Products Production July 2012 Highlights

Total cheese output (excluding cottage cheese) was 874 million pounds, 2.3 percent above July 2011 but 2.3 percent below June 2012.  Italian type cheese production totaled 368 million pounds, 2.3 percent above July 2011 but 2.7 percent below June 2012.  American type cheese production totaled 356 million pounds, 1.8 percent above July 2011 but 1.1 percent below June 2012.  Butter production was 133 million pounds, 2.0 percent below July 2011 and 3.4 percent below June 2012.

Dry milk powders  (comparisons with July 2011)
Nonfat dry milk, human - 149 million pounds, up 12.1 percent.
Skim milk powders - 37.2 million pounds, down 6.1 percent.

Whey products  (comparisons with July 2011)
Dry whey, total - 90.3 million pounds, up 10.4 percent.
Lactose, human and animal - 85.8 million pounds, up 0.7 percent.
Whey protein concentrate, total - 34.1 million pounds, down 1.7 percent.

Frozen products  (comparisons with July 2011)
Ice cream, regular (hard) - 73.8 million gallons, up 1.4 percent.
Ice cream, lowfat (total) - 39.9 million gallons, down 8.0 percent.
Sherbet (hard) - 3.93 million gallons, up 3.6 percent.
Frozen yogurt (total) - 5.89 million gallons, up 6.6 percent.



NCGA Membership Breaks Record Yet Again

Membership at the National Corn Growers Association continued to climb again last month, smashing the previous record set in July of 38,369. With 38,623 members at the close of August, NCGA set an all-time high membership record for the third consecutive month.

"While NCGA's new membership record is partially attributable to  the ongoing popularity of its National Corn Yield Contest, it is of note that an overwhelming majority of those joining this month did so because of efforts  put forth by the state corn associations and their network of  recruiters," said NCGA Grower Services Action Team Chair Brandon Hunnicutt. "Both at the state and national level, we understand the importance of our work at NCGA and that representing the voting power of over 38,000 farmer members means something on Capitol Hill when you are fighting to secure an equitable farm bill or preserve the Renewable Fuels Standard."

Throughout NCGA's history, grassroots efforts have been the strength and driving force behind the organization.

"NCGA programs remain completely farmer-driven, with growers behind each step of a project from conception through the realization of its goals," stated Hunnicutt. "The farmers who actively participate in the organization do so because they value giving back to their industry, putting the interests of the greatest number of farmers from across the country first in every decision that they make."

NCGA has members across the contiguous United States. It is part of a federation in cooperation with grower associations and checkoff boards from 28 states, and represents over 300,000 growers who contribute corn checkoff funds in their states.



China Soybean Imports Down

China's soybean imports will likely fall below 7 million metric tons in the September-October period, the state-backed China National Grain & Oils Information Center said Tuesday.  The country's soybean imports in August may reach 4.7 million tons, up from an earlier forecast of 4.5 million tons, it said in a report.  China's Ministry of Commerce on Monday lowered the estimate for August soybean imports to 4.53 million tons from its earlier forecast of 5.3 million tons.  Crushers have slowed purchases of imported soybeans amid declining profit margins and little scope for raising edible oil prices, the CNGOIC said earlier.  China is the world's largest soybean consumer and importer.



Brazil Soy Group Warns Farmers Against Monsanto Seed

The grains producers' association in Brazil's top soybean-growing state, Mato Grosso, warned farmers this week not to plant a new variety of transgenic soy it says Monsanto Co. has been distributing.

The soybean variety, Intacta RR2 Pro, hasn't been approved in China, where more than two-thirds of Brazil's exports of the oilseed are shipped. Mato Grosso state soybean and corn producers' association Aprosoja said in a statement Monday that farmers using Intacta RR2 seeds could accidentally contaminate shipments of approved soybean varieties, putting exports to China at risk of being refused.

Monsanto responded Tuesday, saying the company hasn't allowed commercial sales of Intacta RR2 in Brazil and won't do so until all of the country's main export markets approve it. A stockpile of 600,000 sacks of the seeds, which Monsanto had produced based on the belief that China could approve Intacta RR2 "at any time," will be destroyed, the firm added.

Aprosoja said Monsanto had been handing out samples of the new seeds to farmers in Mato Grosso and required them to sign a waiver accepting responsibility for any contamination that occurred.

"It's like they're testing it, but with no controls," an Aprosoja official said.

Last year, Monsanto invited 500 Brazilian farmers in 10 states to plant Intacta RR2 alongside fields sown with the company's Roundup Ready soy, an herbicide-resistant variety that is commonly used in Brazil. The fields were closely monitored, and the soybeans produced using Intacta RR2 were subsequently destroyed.

Monsanto said it plans to carry out another round of demonstrations this year.

Intacta RR2 soybean seeds use so-called "stacked" genes that make the plants resistant to insects as well as herbicides.

Transgenic seeds will account for 88% of Brazil's 2013 soybean crop, according to a recent estimate by local grains consultancy Celeres. Most of the transgenic soy currently planted in Brazil resists only herbicides.



Smithfield 1Q Earnings Down

Smithfield Foods Inc.'s fiscal first-quarter earnings dropped 25% as the pork producer saw weaker results from its fresh pork business and higher costs weigh on margins.

Smithfield--whose brands also include John Morrell, Armour and Farmland--has seen its revenue increase in recent quarters on strong demand from foreign markets. But like other livestock producers, high feed costs have challenged its bottom line. In July, Mr. Pope called for the U.S. government to waive its mandate requiring the blending of ethanol into the nation's gasoline supply as a severe drought batters the nation's corn crop and drives up prices. Smithfield buys roughly 128 million bushels of corn and corn equivalents each year to feed its hogs, making it one of the largest consumers of the grain in the U.S., Mr. Pope had said.

Smithfield--the largest U.S. pork producer by volume--has taken positions in futures markets to control its costs for feed and, to a lesser extent, revenue from sales. The company has previously predicted its hog-raising business would likely turn a profit in every quarter during fiscal 2013.

For the quarter ended July 29, Smithfield reported a profit of $61.7 million, or 40 cents a share, down from $82.1 million, or 49 cents, a year earlier. The year-earlier period included a 20-cent charge related to litigation settlement.

Sales were essentially flat at $3.1 billion.

Total pork sales--the biggest contributor to Smithfield's revenue--edged up 0.1% to $2.6 billion, reflecting a 0.5% increase for fresh pork and a 0.3% drop for packaged meats. A key area of expansion for many meat companies, including Smithfield, is branded and packaged meat products as they are typically more profitable than sales of commoditized products like live animals and fresh meat.

The hog-production segment's sales fell 2.8%, while its international business saw a 7.5% decline.



MONSANTO TO INTRODUCE NEW-GENERATION ACCELERON® SEED TREATMENT PRODUCTS IN 2013
Fungal diseases are major causes of poor emergence and stand development in soybeans.  But farmers will have a stronger line of defense in 2013 with Monsanto’s planned introduction of Acceleron® Seed Treatment Products with a new-generation fungicide for soybeans and cotton.

These seed treatment products contain multiple modes of action to deliver more complete and consistent disease protection, including a new fungicidal active ingredient. This offering of Acceleron Seed Treatment Products includes:
-    Unprecedented defense against Rhizoctonia and Fusarium, with a new active ingredient.
-    Continuous protection from seed and seedling diseases.
-    Broad-spectrum insect protection.

“Acceleron Seed Treatment Products with the new generation fungicide, in combination with other management practices, can help protect against these damaging seedling diseases, enabling farmers to achieve more uniform stands, higher yield potential and better return on investment,” said Davie Wilson, Monsanto Seed Treatment Product Development Manager.

The products are being evaluated in Monsanto field trials this season. The objective is to compare performance in terms of stand development and total stand survival, vigor enhancement and, ultimately, yield. In some plots, time-lapse photography was utilized to capture differences in emergence and early-season plant growth and health. While the focus is on disease, the trials also compared early-season insect protection.

Acceleron Seed Treatment Products for soybeans are designed to complement and help maximize the performance potential of Genuity® Roundup Ready 2 Yield® soybeans.  They provide an early-season advantage of improved early-season vigor and stand establishment with superior protection from seed and seedling diseases and early season insect pests.