Wednesday September 19 Ag News

CASNR Helps Prospective Students Experience the Power of Red

High school and transfer students can learn about the College of Agricultural Sciences and Natural Resources at the Experience the Power of Red Open House on Nov. 3.

The open house, held on the University of Nebraska-Lincoln’s East Campus, gives students the chance to hear about the college’s 28 academic programs and two pre-professional programs, said Laura Frey, UNL college relations director. They can also meet current UNL faculty, staff and students.

“They get to explore career opportunities and just become familiar with UNL in general,” she said.

The open house will begin at 9 a.m. with refreshments and a browsing session, when students can get a brief introduction to each department in the college. Following a welcome at 10 a.m., students and parents will attend academic sessions that offer more in-depth information about each academic program. The event finishes with lunch and a scholarship drawing at 12:45 p.m.. Optional tours of both UNL campuses start at 2 p.m.

Academic interest areas featured at the open house include agribusiness/agricultural economics; agricultural education/agricultural journalism/hospitality, restaurant and tourism management; agronomy; animal science; applied science; biochemistry; food science and technology; food technology for companion animals; forensic science; grazing livestock systems; horticulture; insect science; mechanized systems management/agricultural engineering/biological systems engineering; microbiology; natural resources, including environmental restoration science, environmental studies, fisheries and wildlife, grassland ecology and management, natural resources and environmental economics and water science; PGA golf management; plant biology; turfgrass and landscape management; and veterinary science.

For more information, visit casnr.unl.edu/openhouse.



FDA Approves Blending of Corn Containing Aflatoxin

The Iowa Department of Agriculture and Land Stewardship announced that the U.S. Food and Drug Administration (FDA) has approved the Department's request to allow corn containing more than 20 parts per billion (ppb) of aflatoxin to be blended with corn with lower levels or no aflatoxin for animal feed. This allows the corn to be safely fed to livestock pursuant to the FDA's long-standing guidelines.

Before doing any blending of corn containing aflatoxin, the grain dealers and the Department must sign a compliance agreement. A memorandum outlining the application process and a copy of the compliance agreement will be sent to all grain dealers licensed by the Department and can also be found on the Department's website at www.IowaAgriculture.gov under "Hot Topics."

The compliance agreement outlines the requirements for grain dealers that will be blending corn containing aflatoxin.

These requirements including that the blended product is below the appropriate aflatoxin action level in corn used as or in animal feed as outlined in FDA Guidance Document, Compliance Policy Guide- Section 683.100, "Action Levels for Aflatoxin in Animal Feeds." FDA granted Iowa a similar request during droughts in 2003 and 2005 when aflatoxin was found in the state.

Also, each batch of blended corn must be analyzed to determine the aflatoxin level. The analysis must be performed using approved sampling and analysis protocols and testing procedures outlined by the USDA Grain Inspection, Packers & Stockyards Administration (GIPSA). These results must be provided to the purchaser of the blended corn. The purchaser must also provide written assurance that the corn will be used for feed consistence with FDA guidance.

Finally, the blended corn must be clearly identified and labeled for animal feed use only and corn containing aflatoxin levels greater than 500 ppb cannot be blended.

On August 15, 2012 the Department submitted a request to FDA to allow corn containing more than 20 ppb of aflatoxin to be blended with non-aflatoxin containing corn for animal feed.

The Department has also started requiring the testing of all milk for aflatoxin starting on August 31, 2012.

The FDA has established guidelines for acceptable aflatoxin levels in corn based on its intended use. Corn containing aflatoxin in concentrations of greater than 20 ppb cannot be used for human consumption and cannot be used for feed for dairy animals or for immature livestock of others species. Corn containing aflatoxin at 100 ppb or less can be used in breeding cattle and swine and mature poultry. Corn with 200 ppb or less can be used with finishing swine greater than 100 lbs. in weight and corn with 300 ppb or less can be used in finishing beef cattle.

More information about aflatoxin in corn can be found on the ISU Extension and Outreach "Dealing with Disasters" page at www.extension.iastate.edu/topic/recovering-disasters.



Real farmers, real food the featured attractions in new partnership

A Midwest landmark known for its down-home cooking served family style is partnering with a purpose-driven ag awareness initiative launched by the Iowa Soybean Association to bring farming to life for people who enjoy great food and friendly conversation.

The combination of real farmers and real food is the idea behind “Talkin’ Farming at the Shed,” sponsored by the Machine Shed Restaurant and Iowa Food & Family Project. It will debut Saturday, Sept. 29, 4:30-7:30 p.m. at the Shed’s Urbandale location.

Lindsay Greiner, a grain and hog farmer from Keota, will be the featured guest throughout dinner. He’ll meet and greet those who enjoy great food but rarely have an opportunity to visit with the people who grow it. Contests and activities, including chances to win a four-pack of tickets to the Iowa State-Oklahoma football game or one of two overnight stays at the Comfort Suites at Living History Farms, will take place throughout the evening, and a special entrée featuring soy will be added to the menu.

“There’s a true renaissance of interest in food and we think that’s great,” says Mike Whalen, who founded the Machine Shed Restaurant in 1978. “We’re all about serving some of the best slow-cooked comfort food that would make Mom proud and paying tribute to the American farmer.

“Our dedication to the Iowa farmer is our five-word Constitution, and we want others to share our passion for food and farming,” Whalen adds. “We can’t think of a better way to do that than for folks to meet some of Iowa’s hard-working and dedicated farmers and to have a celebration.”

“Talkin’ Farming at the Shed” will be held periodically throughout the year. Each event will showcase a different farmer and commodity.

Greiner, wife Shelley and sons Keaton, Kalen and Kolton grow soybeans and corn and raise hogs in southeast Iowa. He’s a member of the Iowa Soybean Association and participates in the ISA’s Farm & Food Ambassador Team. The 15-farmer group seeks opportunities to rub elbows with those who don’t farm to talk about shared areas of interest.

“I’m not a writer and I don’t do interviews, but I do like to talk,” says Greiner. “I love to share what I do and to hear people’s perceptions about today’s farmers. At the end of the day, we’re real people always looking to do things better in a way that’s good for our land, our neighbors and communities.”

For more information, log on to www.machineshed.com and www.iowafoodandfamily.com.

The Iowa Food & Family Project (www.facebook.com/foodnfamilies) is a purpose-driven initiative created by the Iowa Soybean Association and dedicated to inspiring greater awareness, understanding and trust between consumers and farmers through personal engagement and advocacy. It proudly serves as presenting sponsor of the Iowa Games and supporter of Live Healthy Iowa and is backed by more than 30 partners including the Iowa Pork Producers Association, Farm Credit Services of America, Hy-Vee and Iowa Beef Industry Council.



Upcoming Conference Spotlights Organic Agriculture

Registration is now open for the Twelfth Annual Iowa Organic Conference, to be held on the University of Iowa campus on Nov. 18 and 19. Farmers, extension staff, industry representatives and students are invited to learn about science-based research in organic agriculture and practical applications for Iowa farms.

The conference will open with a reception on the evening of Sunday, Nov. 18 at the UI Memorial Union, and continue with a full-day program of speakers, workshops and exhibits on Monday.

“Iowa State University is very excited to be partnering with the University of Iowa Office of Sustainability and New Pioneer Food Cooperative in Iowa City to bring a new perspective to the conference,” said Kathleen Delate, ISU conference organizer.    

The morning keynote speaker will be Will Allen, who will address the conference theme of “Organic Farming: What You Do Makes a Difference.” The recipient of a McArthur Genius Grant, Allen founded Growing Power LLC, a nonprofit center for urban agriculture training and community food systems. 

“I like nothing better than to get my hands into good, rich soil and sow the seeds of hope,” said Allen, who is involved in organic farming projects and outreach programs throughout the world.

The afternoon keynote speaker will be Fred Kirschenmann, Leopold Center Distinguished Fellow and an organic farmer. Kirschenmann will speak about how organic principles can address a future with peak oil, rising fuel prices and limits on fertilizer supplies.

Both Allen and Kirschenmann received the Leadership Award from the James Beard Foundation in 2011, which honors pioneers who have inspired positive action to improve the country’s food systems.

Other speakers at the conference will address strategies for dealing with drought, local food systems, the Environmental Quality Incentives Program (EQIP), certification cost-share programs, alternative grain crops, cover crops, organic food research and more. Farmers will offer tips for best practices during the transition to organic farming, and Delate will discuss data from the 15-year-old Long Term Agroecological Research project, a comparison of organic and conventional crop rotations.

The conference includes an all-organic lunch prepared by UI Dining Services chef Barry Greenberg and his staff, made with local and regional organic products and produce grown by students at UI and ISU.

Register online at http://iowaorganicconference.eventbrite.com or contact Kathleen Delate at (515) 294-7069 or kdelate@iastate.edu. Discounted early registration ends Oct. 28. Details about how to become a sponsor or exhibitor are also available on the event website.



USDA Announces Change in Release Time of Key Statistical Reports Beginning in January 2013

The U.S. Department of Agriculture today announced that the National Agricultural Statistics Service (NASS) and World Agricultural Outlook Board (WAOB) will begin issuing several major USDA statistical reports at 12:00 p.m. EDT beginning in January 2013. The current USDA release time of 8:30 a.m. EDT will remain in effect until January 1, 2013. USDA statistical reports affected are: World Agricultural Supply and Demand Estimates, Acreage, Crop Production, Grain Stocks, Prospective Plantings, and Small Grains Summary. The time for livestock reports currently released at 3:00 p.m. will not change.

Between June 8 and July 9, 2012, USDA sought public comment on the release times for several major statistical reports in response to changes in market hours by major commodity exchanges.  Stakeholders submitted 147 comments through the NASS online response site and via letter and e-mail. The comments received may be viewed on the NASS website at http://www.nass.usda.gov/Newsroom/2012/Public_Comments_Release_Times.pdf.

“USDA considered all comments and thanks everyone for their thoughtful suggestions,” said USDA Chief Economist Joseph W. Glauber. “The shift to a noon release allows for the greatest liquidity in the markets,
provides the greatest access to the reports during working hours in the United States, and continues equal access to data among all parties.”

Under the Freedom of Information Act (FOIA) and Office of Management and Budget (OMB) Statistical Policy Directives 3 and 4, rules are in place to regulate the public’s access to federally generated statistics. The 2012 official published schedule for all NASS reports is available online at www.nass.usda.gov/Publications/index.asp. The World Agricultural Outlook Board (WAOB) report schedule is available at www.usda.gov/oce/commodity/wasde.



Cargill Urges USDA To Stop Giving Newswires Embargoed Reports

Cargill, the world's biggest agricultural trading house, has appealed to the U.S. Department of Agriculture to stop giving newswire services advance copies of market-moving reports and said all users should have access to the reports at the same time, the Financial Times reported Wednesday.

"As we understand it, the current lock-up and release process allows some members of the news media to access the reports early," Cargill said in the filing, the FT said.

"That has never been an issue in the past because markets were closed at release time. But in an environment in which markets are actively trading while critical reports are being released, anyone with early access will have an unfair advantage."



USDA Expands Drought Assistance to 22 States

Agriculture Secretary Tom Vilsack today announced $11.8 million in additional financial and technical assistance to help crop and livestock producers in 22 states apply conservation practices that reduce the impacts of drought and improve soil health and productivity. The U.S. Department of Agriculture’s Natural Resources Conservation Service (NRCS) provides this assistance through its Wildlife Habitat Incentive Program (WHIP) and Environmental Quality Incentives Program (EQIP).

Since early summer, USDA has announced a variety of assistance to producers impacted by the drought, including opening conservation acres to emergency haying and grazing, lowering the interest rate for emergency loans, and working with crop insurance companies to provide flexibility to farmers. Just a few weeks ago, USDA announced $16 million in financial and technical assistance to immediately help crop and livestock producers in 19 states cope with the adverse impacts of the historic drought. In July, the Secretary announced USDA would allow producers to modify current EQIP contracts to allow for grazing, livestock watering, and other conservation activities to address drought conditions, and also authorized haying and grazing of WRP easement areas in drought-affected areas where haying and grazing is consistent with conservation of wildlife habitat and wetlands. Today’s announcement expands upon these efforts and brings the total assistance to nearly $28 million.

“As this drought continues to impact American farming and ranching families, USDA will be there to help our agriculture sector recover,” said Vilsack. “This additional assistance builds on a number of steps USDA and other federal agencies have taken over the past few months to provide resources and flexibility in our existing programs to help producers endure these hardships. But Congress also needs to act, and the urgency to pass a comprehensive, multi-year food, farm and jobs bill is greater than ever.”

See the additional NRCS drought assistance received by each state at http://www.nrcs.usda.gov/wps/portal/nrcs/detailfull/national/?cid=STELPRDB1048818.

Funding from NRCS targets states that are experiencing either exceptional or extreme drought conditions. Exceptional drought continues to dominate sections of Arkansas, Colorado, Georgia, Iowa, Kansas, Kentucky, Missouri, Nebraska, New Mexico, Oklahoma, South Dakota, Tennessee, Texas and Wyoming, causing widespread losses of crops and pastures and water shortages in reservoirs, streams and wells.

Alabama, Illinois, Indiana, Michigan, Mississippi, Nevada, South Carolina and Utah are under extreme drought, with accompanying major losses of crops and pasture, widespread water shortages and restrictions on water use. Learn more about drought categories at http://droughtmonitor.unl.edu/.

The additional funding will allow NRCS to address the backlog in applications from the previous drought assistance signup, as well as accept new applications from producers interested in applying selected conservation practices to address drought, including prescribed grazing, livestock watering facilities and water conservation practices. Producers can also apply for financial assistance to re-install conservation practices that failed due to drought.

At the direction of President Obama, Secretary Vilsack is helping coordinate an Administration-wide response that has included: the National Credit Union Administration's increased capacity for lending to customers including farmers; the U.S. Department of Transportation's emergency waivers for federal truck weight regulations and hours of service requirements to get help to drought-stricken communities; and the Small Business Administration’s 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 Economic Injury Disaster Loans (EIDL).

Since July, USDA has announced:
-    Intent to purchase up to $170 million of pork, lamb, chicken, and catfish for federal food nutrition assistance programs, including food banks, to help relieve pressure on American livestock producers and bring the nation's meat supply in line with demand.
-    Allowed emergency loans to be made earlier in the season.
-    Intent to file special provisions with the federal crop insurance program to allow haying or grazing of cover crops without impacting the insurability of planted 2013 spring crops.
-    Authorized up to $5 million in grants to evaluate and demonstrate agricultural practices that help farmers and ranchers adapt to drought.
-    Granted a temporary variance from the National Organic Program’s pasture practice standards for organic ruminant livestock producers in 16 states in 2012.
-    Authorized $16 million in existing funds from its WHIP and EQIP to target states experiencing exceptional and extreme drought.
-    Initiated transfer of $14 million in unobligated program funds into the Emergency Conservation Program (ECP) to help farmers and ranchers rehabilitate farmland damaged by natural disasters and for carrying out emergency water conservation measures in periods of severe drought.
-    Authorized haying and grazing of WRP easement areas in drought-affected areas where haying and grazing is consistent with conservation of wildlife habitat and wetlands.
-    Lowered the reduction in the annual rental payment to producers on CRP acres used for emergency haying or grazing from 25 percent to 10 percent in 2012.
-    Simplified the Secretarial disaster designation process and reduced the time it takes to designate counties affected by disasters by 40 percent.

USDA works with state and local governments and private landowners to conserve and protect our nation's natural resources, helping preserve our land, and clean our air and water. In 2011, USDA enrolled a record number of acres of private working lands in conservation programs, working with more than 500,000 farmers and ranchers to implement conservation practices that clean the air we breathe, filter the water we drink, and prevent soil erosion. President Obama launched the America's Great Outdoors initiative in 2010 to foster a 21st century approach to conservation that is designed by and accomplished in partnership with the American people. During the past two years, USDA's conservation agencies—the Natural Resources Conservation Service, the U.S. Forest Service, and the Farm Service Agency—have delivered technical assistance and implemented restoration practices on public and private lands. We are working to better target conservation investments, embracing locally driven conservation and entering partnerships that focus on large, landscape-scale conservation.



United States August 2012 Milk Production

Milk production in the 23 major States during August totaled 15.3 billion pounds, down 0.2 percent from August 2011. July revised production at 15.5 billion pounds, was up 0.7 percent from July 2011. The July revision represented a decrease of 24 million pounds or 0.2 percent from last month's preliminary production estimate.  Production per cow in the 23 major States averaged 1,803 pounds for August, 10 pounds below August 2011.    The number of milk cows on farms in the 23 major States was 8.50 million head, 32,000 head more than August 2011, but 4,000 head less than July 2012.
 
Iowa:
Milk production in Iowa during August 2012 totaled 363 million pounds, up 3 percent from August 2011, according to the USDA, National Agricultural Statistics Service  – Milk Production  report.   The  average number of milk  cows on hand  during  the  month,  at  203,000  head,  was  up  3,000  head  from  August  2011.    Production  per  cow  averaged 1,790 pounds, up 20 pounds from August 2011.



Dairy Situation and Outlook, September 19, 2012
Bob Cropp, Professor Emeritus, University of Wisconsin Cooperative Extension

The severe drought for a good share of the U.S. continues to foster the outlook for higher milk prices, the result of less milk production due to high feed costs this fall and winter reducing both milk cow numbers and the increases in milk per cow. For September the Class III price will be near $18.85, an increase of about $3.65 from the low of $15.23 back in May. Yet the Class III price would still be lower than a year ago at this time when the September price was $19.07 and yearly high was $21.67 for August. We could easily see a Class III price of $20 plus by October and through at least the first 4 or 5 months of next year. The Class IV price for September will be near $17.50, up about $4.25 from the low of $13.24 back in June. Like Class III the Class IV price is still lower than a year ago when the September price was $19.53 and its peak of $21.05 in June. The Class IV price could easily be $19 plus by October through the first quarter of next year.

Milk production which was running 4% higher than a year ago for the first quarter continues to slow down. Increases over a year dropped below 1% in June at 0.9%, July at 0.6% and for August it fell below year ago levels at -0.3%. Dairy cow slaughter in recent weeks has been running 10 to 15% higher than a year ago, but with the ample supply of dairy replacements the decline in the nation’s dairy herd has been slow. Cow numbers didn’t start to decline until May and as of August numbers had decreased by 51,000 head. For the nation August cow numbers were still 0.2% higher than a year ago. Of the 23 reporting states only 3 states had fewer cows in August than July and only 7 had fewer cows than a year ago. USDA is forecasting cow numbers to continue to decline through the first half of next year and the average number of cows for next year to be 1.1% lower than this year’s average.

The increase in milk per cow is also slowing. In fact for August milk per cow was estimated at 0.5% lower than August a year ago. Of the 23 reporting states 8 had less milk per cow than a year ago. USDA estimates the increase in milk per cow for this year to be 1.6%, but only an increase of 0.6% for next year. The net result is an estimated increase in total milk production this year of 1.8% and a slight decline of 0.5% next year. However, this year’s increase is probably on the high side since milk production is likely to continue to run below a year ago for the remainder of the year and these percentage changes don’t take into consideration the extra day this year due to leap year.

Looking at some individual states August milk production was lower than a year ago in Western states by as much as 5.8% in California, 3.8% in Arizona, 0.2% in Idaho, 2.9% in New Mexico, and 1.9% in Texas. Of these states only California and Texas still had a few more cows than a year ago. All except Idaho had less milk per cow with decreases of 6.3% in California, 3.0% in Texas, 2.8% in Arizona and 2.4% in New Mexico. In the Northeast Michigan’s milk production was up 5.4% and up 1.9% in New York but down 1.7% in Pennsylvania due to both fewer cows and less milk per cow. In the Midwest milk production was up 2.5% in Iowa, 2.7% in Minnesota and 4.9% in Wisconsin. For Wisconsin cow numbers were 0.6% higher and milk per cow 4.3% higher.

Sales of fluid (beverage) milk continue very sluggish with January through July sales 1.6% lower than a year ago. But, reports on cheese and butter sales remain positive. There is some concern that higher prices could dampen sales, but thus far there is no evidence of this. On the CME August butter averaged $1.77 per pound and is now $1.8675, about the same as a year ago. Butter is expected to stay at this level or higher for the next several months. Last year butter was above $2 per pound for the first 8 months. Cheddar cheese in 40-pound blocks averaged $1.83 per pound in August and is now $1.95 compared to $1.76 a year ago. Cheddar barrels averaged $1.79 per pound in August and are now $1.905 compared to $1.70 a year ago. But, both 40-pound block cheddar and cheddar barrels were over $2 per pound for part of the summer last year. Both nonfat dry milk prices and dry whey prices have also shown considerable strength in recent weeks. West coast nonfat dry milk is now trading as high as $1.67 per pound and dry whey as high as $0.61 per pound and further price increases for both are likely.

These stronger dairy product prices and in turn milk prices is partially driven by good domestic sales and exports that have tightened up stocks. The latest export data is for the month of July. But, while on a volume basis for the period of January through July nonfat dry milk and cheese exports were higher than a year ago, up 7% and 20% respectively, both experienced lower volumes for the second a month in a row. Compared to a year ago, July exports of nonfat dry milk were 13% lower while cheese exports were still 35% higher. Dry whey exports were 16% lower than a year ago in July but exports of whey protein concentrates were 57% higher. Butter exports have been below a year ago all year with July exports down 32% and year-to-date exports 28% lower. But, on a total solids basis July exports were still equivalent to 13.4% of U.S. milk production. While higher prices and a slowdown in milk production could well dampen exports in the months ahead, exports will remain a positive factor for dairy product prices and milk prices. With leading dairy exporters like U.S., the 27-EU countries and Argentina all experiencing a slowdown in milk production due to drought and/or much higher feed prices, and this along with continued positive world demand, the world milk supply and demand situation will remain fairly tight. An expected positive increase in milk production in the leading exporter New Zealand and also Australia could lessen the tight world supply situation later on. But, for now world prices of skim milk powder, dry whey and cheese have shown strength in recent weeks.

Butter stocks have been declining since May, but July 31st stocks were still 23.5% higher than a year ago. Nevertheless, butter production was running below a year ago and butter makers feel that existing stocks maybe tight for fulfilling the strong seasonal butter orders during the Thanksgiving and Christmas period. July 31st American cheese stocks were 2.3% below a year ago and total cheese stocks 3.8% below. Nonfat dry milk stocks continue to decline being down 11.3% from the peak in May and were 32.3% lower than a year ago.

In summary, milk prices will be much improved for the remainder of the year through at least the first half of next year. But, high feed prices will keep returns over feed costs at low levels for many dairy producers who need to purchase grains and concentrates as well as some who need to purchase hay or other forages.



Weekly Ethanol Production for 9/14/2012

According to EIA data, ethanol production averaged 834,000 barrels per day (b/d) – or 35.03 million gallons daily.  That is up 18,000 b/d from the week before, and the highest in 11 weeks.  The 4-week average for ethanol production stood at 825,000 b/d for an annualized rate of 12.64 billion gallons.

Stocks of ethanol stood at 19.3 million barrels, an increase from last week and a 7-week high.

Gasoline demand for the week averaged 362.5 million gallons daily.

Expressed as a percentage of daily gasoline demand, daily ethanol production was 9.66%--the highest since late June.

Ethanol imports averaged 58,000 b/d, or 2.4 million gallons per day. The 4-week average for imports was 51,000 b/d for an annualized rate of 782 million gallons.

On the co-products side, ethanol producers were using 12.645 million bushels of corn to produce ethanol and 93,077 metric tons of livestock feed, 82,979 metric tons of which were distillers grains.  The rest is comprised of corn gluten feed and corn gluten meal.  Additionally, ethanol producers were providing 4.34 million pounds of corn oil daily.



Oil's Slide Continues, Hits 6-Week Low

(AP) -- Oil prices fell on Wednesday for the third day in a row as traders realized that a recent run-up to $100 may have been overdone.

Oil ended at $91.98 on Wednesday, dropping $3.31, or 3.5 percent. That was its lowest close since Aug. 3. Oil has fallen 7 percent this week.

Several things have been pushing prices down. Analysts said traders are taking profits after oil got above $100 per barrel on Friday for the first time since May. And there have more signs this week that the global economy is slowing down, which tends to push oil prices lower because people and businesses use less energy.

Also, crude inventories rose three times more than analysts had expected last week. Crude supplies grew by 8.5 million barrels to 367.6 million barrels. That's 8.4 percent higher than at the same time last year, according to the Energy Information Administration's weekly report.



New Oil Industry Paper Favors Gasoline Imports, Higher Diesel Prices Over RFS

A report released this week by EPRINC, an oil industry-funded research group, suggests a multi-year suspension of the Renewable Fuel Standard (RFS) could reduce U.S. ethanol use by more than half. To offset this loss in ethanol supplies, the EPRINC paper suggests a variety of economically impractical and politically infeasible options could be pursued—ranging from ramping up gasoline imports to reducing diesel fuel and heating oil production in an attempt to extract more gasoline from crude oil. The Renewable Fuels Association (RFA) pointed out that in attempting to tear down the RFS, the EPRINC report actually underscores the importance of the program and highlights the lack of sensible or economic options available to refiners if ethanol use is severely curtailed.

“If you do away with the RFS over the long term and less ethanol is available, as EPRINC is suggesting, you leave a gaping hole in the gasoline supply,” said RFA President Bob Dinneen. “The options available to fill that hole just don’t make economic sense and would further increase fuel prices for consumers. Ironically, the EPRINC report actually underscores why the RFS is so important; it highlights the fact that cutting ethanol out of our gasoline supply would result in increased dependence on imported oil and refined products, or would force refiners to make a choice between maximizing gasoline or diesel production. Consumers lose in either case. Clearly, the best option is not to tinker with the RFS and let it continue to work as intended.”

Dinneen pointed out other major flaws in the new EPRINC report, such as internal inconsistencies regarding the report’s characterization of the flexibility of the RFS. On one hand, the report states that the RFS has “created inelastic demand for ethanol,” but then on the other hand, it acknowledges that ethanol production has plummeted by about 15% since the beginning of the year “…as high corn prices have caused many ethanol producers to idle production.”

“They call the RFS ‘inelastic’ but then point out that the ethanol industry has adjusted quickly to higher corn prices by reducing production,” Dinneen commented. “EPRINC clearly misunderstands the flexibility that is inherent to the RFS program that is allowing the ethanol industry to respond rationally to market signals.” Dinneen noted that recent projections from both USDA and FAPRI show the ethanol industry reducing its corn consumption in 2012/13 more than the livestock feeding industry.

Further, the EPRINC paper repeats illogical criticisms of a series of studies by the Center for Agricultural and Rural Development (CARD) that show ethanol significantly reduces gasoline prices. Specifically, the report parrots critiques of the CARD study originally made by an economist at MIT, who previously received funding from Chevron.

Finally, Dinneen noted that the EPRINC report demonstrates an obvious lack of understanding of the role of animal feed co-products produced by ethanol facilities.



Secretary Vilsack Announces Sorghum Checkoff Board Appointments
Agriculture Secretary Tom Vilsack has announced four appointments to the Sorghum Promotion, Research, and Information Board.

"These appointees represent a cross section of the sorghum industry and I am confident that sorghum producers will be well served by them," said Vilsack.

Appointed members representing sorghum producers are: David A. Fremark, At-large, St. Lawrence, South Dakota; William J. Greving, Prairie View, Kansas; Gregory K. Shelor, Minneola, Kansas; and William H. Kubecka, Palacios, Texas.

The board is structured so that the state with the largest production is allocated five positions. The state with the second largest production is allocated three positions. The state with the third largest production is allocated one position. There are four at-large national positions for which at least two representatives must be appointed from states other than the top three sorghum producing states. The maximum number of producers from one state is limited to six. The appointees will serve terms of three years.



Canadian Cattle Herd to Expand

Excellent pastures and abundant forage will support stabilization in the cattle sector. Inventories will modestly increase in 2013, while exports of cattle will fall. Heavier carcasses will compensate reduced slaughter resulting in a stable beef production, with trade staying flat, according to the USDA's Canadian Annual Livestock report. With the years of decline left behind, the Canadian cattle sector has now stabilised and is looking for opportunities to grow.

Excellent pasture conditions and an abundance of forage are currently the basis for such potential and will help the sector weather the following period of expected high feed prices.

Barley and wheat, both substitutes for corn in Canada, will be plentifully available, though at elevated costs. For 2013, Post forecasts a very modest increase in inventories and calf production.

More cattle are expected to stay in feedlots and be finished locally, rather than be shipped to the United States. Exports in 2013 will thus see a decline, in stark contrast with the first half of 2012.

In 2012, Canada is expected to import the same amount of beef as in 2011, while exports are estimated to decline by almost four percent.



France Wants Emergency G20 Grains Meeting

France has called an emergency meeting of G20 farm ministers for mid-October to discuss curbing price swings on grain markets, the French president's office said, after a year of drought and record prices renewed fears of a crisis in food supplies. According to Reuters, France currently presides over a grains body created last year under the Group of 20 major economies and it has made several proposals in recent days, including the development of strategic stocks and a halt in the expansion of biofuels that use food crops.

Paris said in a statement it was calling a meeting of a Rapid Response Forum under the G20 agriculture body, AMIS, on the United Nations World Food Day which is held on Oct. 16.

It issued the statement after talks between French President Francois Hollande and Jose Graziano da Silva, Director-General of the United Nations' Food and Agriculture Organization (FAO).

The forum would follow a scheduled AMIS meeting earlier in October at which officials from G20 countries would discuss measures to curb supply and demand imbalances in agricultural markets, it said.

The worst drought in more than 50 years in the United States has sent corn and soybean prices to record highs and, coupled with drought in Russia and other Black Sea exporting countries, has raised fears of a global food crisis like the one that led to rioting in poor countries in 2008.

France chairs AMIS until the start of October when the United States assumes the rotating presidency.



MONSANTO ESTABLISHES PROGRAM TO FUND CORN ROOTWORM RESEARCH

Monsanto Company has pledged up to $3 million dollars to support academic research on corn rootworm. The Corn Rootworm (CRW) Knowledge Research Program will provide merit-based awards of up to $250,000 per year for up to three years for outstanding research projects that address specific aspects of corn rootworm biology, genomics and management issues.

Corn rootworm is one of the most damaging pests on the farm. The U.S. Department of Agriculture has estimated that the damage caused by the pest and costs associated with controlling it typically total $1 billion annually – including approximately $800 million in yield loss and $200 million in treatment expenses.

The CRW Knowledge Research Program is guided by a 10-person Advisory Committee that is co-chaired by Dr. Steve Pueppke, Associate Vice President for Research and Graduate Studies and AgBioResearch Director at Michigan State University, and Dr. Dusty Post, Monsanto’s global insect management lead. Additional committee members include experts from academia and agricultural organizations, and were selected based on their expertise in corn rootworm biology and insect management practices.

“This program will focus the efforts of our best public sector researchers on one of the most damaging pests of corn, in the process ensuring that management practices will be effective and sustainable for the benefit of corn producers,” said Pueppke.

“We encourage researchers to submit their proposals on corn rootworm,” said Post. “We believe it is critical to work together to build upon and expand on corn rootworm research to combat this challenging pest. By working collaboratively we can enhance the collective understanding of corn rootworm while providing economical, practical and sustainable solutions for farmers.”

Researchers may submit proposals in the areas of corn crop rootworm management; economic impacts of agronomic practices, including control of corn rootworm; corn rootworm biology, physiology, biochemistry and genomics; and corn rootworm education development. Other types of research may also be considered.



Channel Offers New Genuity® VT Triple PRO® RIB Complete® Corn Blends

Expanding on its promise to deliver expert advice, customized service and elite seed products, the Channel seed brand will introduce at least fourteen new Genuity® VT Triple PRO® RIB Complete® blended seed corn products in the 85- to 118-day maturity range for 2013 planting.

Recently approved by the U.S. Environmental Protection Agency, Genuity VT Triple PRO RIB Complete offers farmers dual modes-of-action for protection against above-ground insects, a single mode-of-action for corn rootworm protection and herbicide tolerance. This single bag solution is a blend of 90 percent Genuity® VT Triple PRO® and 10 percent refuge (non-Bt) seed.

"A big part of Channel seedsmanship is listening to farmers and delivering the solutions that will move their operation forward," said Morgan Dugan, Channel Brand Lead. "That's why Channel is pleased to offer even more single-bag choices for our reduced refuge products, helping farmers simplify the planting process while delivering peace of mind for refuge compliance."

With this approval, all of the products in the Channel brand reduced-refuge corn family now are refuge-in-the-bag enabled for the Corn Belt, helping to preserve the durability of insect-protection technology for growers.

"The new Genuity VT Triple PRO RIB Complete corn blends bring another level of elite seed products into the Channel portfolio," Dugan said. "This new offering gives our Seedsmen more options when recommending the products that are right for each individual farmer's field and management style."

The Channel 2013 product lineup also features:
-    Twenty Channel® Genuity® SmartStax® RIB Complete® blended seed corn products, offering the broadest spectrum of above- and below-ground insect protection on traited acres including two modes of action against earworm and corn rootworm. As a blend of 95 percent insect-protected and 5 percent refuge (non-Bt) seed, this offers the lowest refuge in the Corn-Growing Area.
-    Twenty-six Channel® Genuity® VT Double PRO® RIB Complete® corn blend products, providing a broader spectrum of insect control for above- and below-ground insects, including corn earworm, resulting in higher yield potential and better grain quality potential.