Ag News Update October 18, 2012

USDA Announces 16 USB Farmer-Director Appointments

Sixteen farmer-leaders will be sworn in as directors of the United Soybean Board (USB) in December, after their recent appointments by U.S. Agriculture Secretary Tom Vilsack.

The 16 soybean farmers from across the United States include six new appointees and 10 returning directors. These volunteer farmers invest soy checkoff funds on behalf of all U.S. soybean farmers in projects to increase the value of U.S. soy meal and oil; ensure U.S. farmers and their customers maintain the freedom and infrastructure to operate; and meet the needs of U.S. soy’s customers.

“We look forward to welcoming the new and returning directors to our board,” says USB Chair Vanessa Kummer, a soybean farmer from Colfax, N.D. “We are confident they, like the others on the board, are committed to leveraging checkoff dollars for projects that maximize the profit potential of all U.S. soybean farmers.”

Mark Caspers, a soybean farmer from Auburn, Nebraska, was one of the directors recently appointed to USB. Caspers has shown strong leadership through his dedication to service on both the Nebraska Soybean Board (NSB) and the United Soybean Board. Caspers is currently serving in his fourth term as NSB director and will begin his second term on USB at the December meeting.

Victor Bohuslavsky, executive director for the Nebraska Soybean Board, commended Caspers dedication to the soybean industry. “Mark has always done a good job of representing the interests of Nebraska soybean farmers. He brings a wealth of knowledge and business sense to our meetings, and I am confident that he will continue to be a valuable part of USB.”

Appointed farmer-leaders include:
-- James H. Carroll III, Arkansas*
-- Todd A. Gibson, Missouri*
-- Walter L. Godwin, Georgia
-- Mark Caspers, Nebraska*
-- David P. Hartke, Illinois*
-- Morris L. Shambley, North Carolina
-- Mark A. Seib, Indiana
-- Jay M. Myers, North Dakota
-- Laura L. Foell, Iowa*
-- John B. Motter, Ohio*
-- Dennis R. Clark, Kentucky*
-- Jim Musser, Pennsylvania*
-- Raymond S. Schexnayder Jr., Louisiana*
-- David G. Iverson, South Dakota
-- James A. Call, Minnesota*
-- Robert W. White Jr., Virginia
* Indicates returning director.

All appointees will serve three-year terms, beginning December 6, when they’ll be sworn in at USB’s annual meeting in St. Louis. Qualified State Soybean Boards (QSSBs) nominated all of the appointees.



Lyons-Decatur Northeast Schools receives $10,000 grant for biotechnology improvement

Students are more engaged and focused on their lessons when participating in hands-on projects, according to Scholastic, and oftentimes new technologies are needed to assist hands-on experiments. Thanks to the support of local farmers and America’s Farmers Grow Rural Education℠, Lyons-Decatur Northeast Schools received a $10,000 grant to purchase genetics equipment.

America’s Farmers Grow Rural Education, sponsored by the Monsanto Fund, gives farmers the opportunity to nominate a public school district in their community to compete for a grant of either $10,000 or $25,000 to enhance education in the areas of math and/or science. More than 1,000 nominated school districts submitted applications. The Monsanto Fund will invest $2.3 million into rural education through this program.

“With tighter budgets and ever-changing, expensive technology, the Grow Rural Education grant will provide opportunities for students to have an enhanced education,” said Kevin Anderson, agriculture education instructor. “Many of our classes will utilize both the autoclave and electrophoresis for specific research projects.”

After being nominated by local farmers, school districts completed an online application, and finalists were chosen by math and science teachers from ineligible school districts. The America’s Farmers Grow Rural Education Advisory Council, a group of 26 prominent farmers from across the country, then reviewed the finalists’ applications and selected the winners.

“The Lyons-Decatur Northeast agriculture department and FFA deserve this grant because both help young people in our community realize how important agriculture is,” said John Niewohner, nominating farmer. “Kevin Anderson does a great job of teaching town kids that don’t know much about agriculture and making them successful in the industry.”

Lyons-Decatur Northeast Schools was presented with the $10,000 grant during a presentation at a volleyball game on Oct. 16.



National Grange Welcomes New State President In Nebraska

The Ne­braska delegates elected Ted Doane as the new President of the State Grange during the state session.  Doane, who joined as a first-gen­eration Grange member in 1968, is a retired professor at the University of Nebraska in the animal sciences field.  He, and his wife, Alice, live just outside Lincoln in Waverly.    The couple has two daughters. Bonnie is a farmer and Grange mem­ber from Walton, Neb., while Amy lives in Omaha and works for the University of Nebraska in the Gradu­ate School.  Doane previously served on the State Grange Executive Committee and is a member of Waverly Grange No. 369.

Doane said he is excited to attend National Convention in Boise, and will have Joe Fryman, immediate past State President and current National Grange Executive Committeee Mem­ber, as his second delegate.  In Nebraska, Doane said he intends to focus on membership and maintain a focus on agriculture advocacy.

"This is a great family organiza­tion, community development orga­nization, that does legislative work for the betterment of agriculture," Doane said. "We can't lose that focus here."



Game and Parks Working with Neighbors to Replace Fences

The Nebraska Game and Parks Commission will contact landowners to coordinate replacement of fences lost to the wildfires on agency lands in northwest Nebraska.  Game and Parks follows Nebraska fencing law and works with neighboring landowners to replace and repair fences.

“Staff managing wildlife and park lands will be contacting neighbors to identify priority fences for replacement for pastures they will be trying to graze early next year,” said Tim McCoy, Game and Parks deputy director. “We also will be flexible with the use of contractors, work agreements and other tools to work with our neighbors to replace fences.”

Game and Parks also is exploring additional measures that can be taken to assist wildlife and the local area in the recovery effort.



Steve Burr Is Oct. 24 ARD 'Big Idea Seminars' Speaker

            Steve Burr, associate professor of recreation resources management, director of the Institute for Outdoor Recreation and Tourism and extension specialist in the Department of Environment and Society in the College of Natural Resources at Utah State University, is the third of five speakers' in the Agricultural Research Division's new "Big Idea Seminars."

            Burr will speak at 4 p.m. Oct. 24 at the Nebraska East Union on UNL's East Campus on "Tourism, Scenery and Open Landscapes." A reception will precede the event at 3:30 p.m.

            Burr will help attendees understand the importance of scenery and visual quality as part of the recreational experience drawing on several pertinent examples from the ecotourism associated with the crane migration and his experiences and studies in Utah.

            The "Big Idea Seminars" series in the Institute of Agriculture and Natural Resources at UNL covers a broad area of research topics and is meant to bring together collaborations between faculty members across all of UNL.

            Burrr is one of five speakers in the first seminar series titled "Scenery as a Natural Resource," which was organized by Richard Sutton, professor in agronomy and horticulture at UNL.

            This seminar series will help raise awareness of the visual landscape for the academic research community and as a resource affecting the quality of life for all Nebraskans.

            Among the collaborators are the College of Architecture, School of Natural Resources and Department of Agronomy and Horticulture.

            The next seminar will be Nov. 14. For more information about this and future speakers and seminars, visit the ARD's Big Idea Seminars website at bigideaseminars.unl.edu.



Vilsack Announces Projects in Nebraska to Create Rural Job Opportunities

Agriculture Secretary Tom Vilsack has announced the selection of 112 recipients in 39 states, Washington, DC, and the Western Pacific for loans and grants to help spur rural economic development and create or save jobs. Nebraska projects are receiving $360,200.

"These awards illustrate the important impact that economic development assistance can have on small towns and rural communities," Vilsack said. "Whether the funding is given directly to individuals or businesses, or indirectly through utilities and other intermediaries, the results are the same: new jobs, stronger economies and more vibrant communities."

USDA is providing assistance through several Rural Development programs. In one, the Rural Business Opportunity Grant (RBOG) program, public bodies, non-profits, cooperatives and Indian Tribes receive grants to provide technical assistance for business development and to conduct economic planning in rural areas.  The Nebraska Indian Community College of Macy, Nebraska will receive a $135,200 grant to be used to provide entrepreneurial leadership education and training to students for job development in Thurston and Knox counties by creating a program that can be offered as part of the college’s regularly offered college courses.  Six jobs in these two counties will be created.

The Village of Walthill, Nebraska will utilize a $50,000 RBOG to complete a renewable energy feasibility study and a library strategic plan. These will allow the village to determine the next phase of their economic development plan for an energy park and library expansion, which will create five jobs in Thurston county.  For more information about the Rural Business Opportunity Grant program, please visit http://www.rurdev.usda.gov/BCP_RBOG.html.

Secretary Vilsack also announced today the selection of 35 organizations for Rural Cooperative Development grants to provide technical and business development assistance in rural areas. The Board of Regents-University of Nebraska has been selected for a $175,000 grant to support a center that will help rural Nebraska businesses form cooperatives.  The center will offer technical assistance to businesses that are developing or are considering the development of a cooperatively-owned business.  Services offered include needs assessments, planning assistance to development groups, identification of resources, feasibility studies, business plans, market analysis and membership needs and priorities.  For more information about the Rural Cooperative Development Grant program, please visit http://www.rurdev.usda.gov/BCP_RCDG.html.



Largest Ethanol Plant Being Sold

Advanced BioEnergy, LLC announced it plans to sell its Fairmont, Neb., ethanol plant to Wichita, Kan.-based Flint Hills Resources. The transaction is expected to close later this year and is subject to regulatory approval.

The Fairmont ethanol plant began production in October 2007. With an annual capacity of more than 115 million gallons, the plant produces more than 320,000 tons of dried distillers grains each year, as well as more than18 million pounds of non-food grade corn oil. The plant has about 50 employees.

"The announcement today underscores the value we have created over the past four years developing the Fairmont plant into a superior ethanol production asset," said Richard Peterson, CEO of Advanced BioEnergy. "Maximizing the value of our business has been a priority in the face of continuing market consolidation and compressed operating margins as the industry works toward long-term alignment of supply and demand."

Advanced BioEnergy elected to engage in a process to solicit interest from potential buyers of the Fairmont facility after being approached by a potential buyer earlier this year. T

The company believes the transaction will be beneficial to all parties including its more than 1,200 unit holders.



Titan Machinery Acquires Nebraska Case IH Dealer

Titan Machinery Inc. announced that it has entered into an agreement to acquire Toner's Inc., which consists of three CaseIH agricultural equipment dealerships located in Grand Island, Broken Bow (currently "Red Line Equipment") and Ord (currently "Ord Equipment"), Nebraska. The acquisition is expected to close on or around November 1, 2012.

Toner's three dealerships are strategically located in a diverse agriculture market with the primary crops being corn and soybeans, as well as livestock diversification. Toner's three locations offer synergies with Titan Machinery's existing stores in Kearney, Lexington, North Platte and Hastings, Nebraska and also benefit from agricultural irrigation with water sourced from the Ogallala Aquifer. In its most recently reported fiscal year, Toner's Inc. reported revenues of approximately $44.5 million.

"Toner's Inc. is an excellent addition to the Titan Machinery network," said Titan CEO David Meyer. "Founder Larry Toner along with his sons Steve and Jim and their teams have built an excellent business. Years of customer support have created a strong heritage and loyal following for the CaseIH Brand. We are also excited to have a CaseIH store located in the same town as the Grand Island CaseIH combine manufacturing plant."

Titan Machinery Inc., founded in 1980 and headquartered in West Fargo, North Dakota, is a multi-unit business with mature locations and newly-acquired locations.



ISA supports EPC’s decision on manure application on soybean fields

The Iowa Soybean Association strongly supports the decision by the Iowa Environmental Protection Commission (EPC) maintaining the ability for Iowa’s farmers to effectively manage livestock nutrients for use on soybean ground, as has been the interim policy the last five years.

As the state assesses the many issues related to nutrient management and water quality, the issue of applying manure to soybeans is limited in terms of land and water area affected. But a ban would have unintended consequences for farmers. By maintaining current policy, farmers retain the flexibility to apply manure to acres that may grow soybeans at the precautionary rate of 100 pound Nitrogen, as illustrated and recommended by Iowa State University scientists.

Data is inconclusive that application of manure on the few acres that receive it (an average of 7 percent of soybean acres over the past 40 years) affects water quality. When trying to determine whether there might be certain outcomes from nutrient management for a specific field, many variables must be considered. They include weather conditions, crop uptake rates, existing nutrient content of soil, drainage system configuration (or lack of drainage), topography, conservation practices, timing of application and placement and method of application. 

To achieve water quality improvements, we must approach the issue from a watershed perspective, understanding how management systems function and address the fact that problems and solutions will be uniquely suited for the landscape we are dealing with. Therefore, we applaud the EPC's big picture view of this issue and look forward to the unveiling of the state's new nutrient strategy that is being designed to create a larger plan for water quality improvements.



PorkBridge Educational Series Returns in December

The seventh year of the successful distance education series, PorkBridge, begins Dec. 6. The 2012-2013 program includes a variety of topics presented by recognized industry experts. Operating through the collaboration of 11 land-grant universities, PorkBridge reaches producers and industry professionals across the country and around the world in an every other month series of six sessions.

Iowa State University Extension and Outreach swine specialist Ken Stalder is the Iowa contact for PorkBridge. He said the distance education series provides relevant and accurate information for those who own, manage or work in swine grow-finish facilities.

“Producers and others in the industry can get the information they need without the hassle of traveling or giving up a whole day to attend a meeting,” Stalder said. “PorkBridge participants can take part where it works best for them whether at home, in an office or in the swine unit. And all of them can download audio files from each session for later use.”

Stalder, who also is a swine specialist with Iowa Pork Industry Center at Iowa State, said PorkBridge combines electronic information viewed on a computer with live presentations by topic experts via phone. About a week before each session, subscribers receive a CD or Web link (depending on their location) that contains that topic’s specific presentation and additional information provided by the presenter. Participants call in for the audio portion of each session and follow along with the presentation on their computer. All sessions begin at noon Central time and last approximately 90 minutes. Each session includes time for questions of the presenter.

“The course fee has not changed since the program began in 2005, and is a great deal at $125 for the entire year,” Stalder said.

The subscription form and payment must be received by Nov. 12 to assure receipt of program materials in time for the first session on Dec. 6. An informational brochure with subscription information is available on the IPIC Web site at www.ipic.iastate.edu/PorkBridge/IPIC2012PB.pdf. Iowa residents who want more information can call Stalder at 800-808-7675.

Session dates, speakers, their industry affiliations and topics are as follows.
-    Dec. 6, 2012 – John Patience, Iowa State University, “Strategies to Reduce Feed Costs”
-    Feb. 7, 2013 – Mike Ellis, University of Illinois, “Optimizing Stocking Density in Wean-Finish Barns”
-    April 4, 2013 – Aaron Gaines, The Mastiffs, “Managing Finishing Pigs to Improve Production Efficiency”
-    June 6, 2013 – Mike Whitney, University of Minnesota, “Managing Heat Stress”
-    Aug. 1, 2013 – Mike Tokach and Hyatt Frobose, Kansas State University, “Effect of Optimizing Feed Withdrawal Length and Fiber Levels Prior to Marketing on Net Return”
-    Oct. 3, 2013 – Andrew Bowman, The Ohio State University “Pigs, Flu and You”

IPIC coordinates all program details, including registration and subscriber mailings. Mark Whitney and Lee Johnston of the University of Minnesota coordinate the PorkBridge program.



Cow-calf Producers Invited to Reproduction Conference

In a year marked by record drought and increasing feed prices, many producers are considering reducing the size of their cowherd to maintain efficient use of financial and production resources. Organizers of the Applied Reproductive Strategies in Beef Cattle conference say the conference will provide a wealth of information on using advanced reproductive technologies to help producers make decisions that are right for individual situations. The conference is set for Dec. 3-4 at the Best Western Ramkota Hotel in Sioux Falls, South Dakota.

Garland Dahlke of the Iowa Beef Center at Iowa State University said conference topics were chosen with producers and veterinarians in mind, so everyone who attends will be able to find useful information for their operations and businesses.

“This conference features 27 speakers from throughout the United States and Canada who are experts in their respective fields,” Dahlke said. “They’ll share their knowledge on topics ranging from importance and control of estrus to male fertility and genetics to stress management and vaccination.”

The conference also features a trade show and the first day concludes with hands-on activities where participants can become more familiar with several of the session topics.

Dahlke, who also is an ISU representative on the Beef Reproduction Task Force that’s cosponsoring the symposium, said the fee for registrations postmarked by Nov. 1 is $150 per person, and increases to $200 per person after that date. Fee for students is $90. More information, including links to the program agenda and registration forms, is available on the conference website: http://muconf.missouri.edu/ARSBC-SouthDakota/.

Iowa producers can contact Dahlke by e-mail at garland@iastate.edu or by phone at 515-294-9910. Those planning to attend can reserve rooms at the conference rate of $89.99 plus tax by calling the Best Western Ramkota in Sioux Falls at 605-336-0650, and asking for the Applied Reproductive Strategies in Beef Cattle conference rate.

The conference is being coordinated by the Beef Reproduction Leadership Team of South Dakota State University, and IGrow, a service of South Dakota State University Extension.



Iowa Fall Cover Crop Field Days Begin Oct. 26

As harvest nears its end, the 2012 growing season may be winding down – but Iowa’s crop fields still have lessons to share. Practical Farmers of Iowa is teaming with Iowa Learning Farms and Iowa State University Extension and Outreach to host a series of fall field days in October and November focusing on cover crops and drought issues.

The first fall field day will take place Friday, Oct. 26, from 10 a.m. to 1 p.m. at the farm of Pete Crew near Webb, in northwest Iowa. Other fall cover crop field days will take place in Emerson (Tuesday, Oct. 30), Winterset (Wednesday, Oct. 31) and Carroll (Thursday, Nov. 8). All field days run from 10 a.m. to 1 p.m., include lunch and a presentation on drought considerations for 2013 by ISU Extension field agronomists, and are free and open to the public.

The Oct. 26 event will begin at 10 a.m., followed by a cover crop show-and-tell. At 11 a.m. Sarah Carlson, research and policy director for Practical Farmers of Iowa, will speak on adding cover crops to corn and soybeans. At 11:30 a.m., ISU Extension and Outreach field agronomist Paul Kassel will speak about drought considerations heading into 2013. The event will conclude with lunch from noon to 1 p.m.

Steve McGrew, who will host a similar field day on Oct. 30, says he hopes these cover crop field days will help attendees learn more about cover crops, what worked and what didn’t, from those who have planted them. “I look forward to hearing from other people about their experiences with cover crops. We are waiting to see what happens to our cover crops that were seeded too early and did not get rain, compared to seeding later on after a rain.”

Directions: Pete Crew’s farm is located at 4415 290th Ave., about 4 miles north of Webb and 1.5 miles east of Gillett Grove. To reach the farm from Webb, head north on County Highway M54 and look for a red-and-white machine shed on the left, just before route M54 curves. To reach the farm from Gillett Grove, go east for 1 mile on route M54 / 440th Street. Turn right on 290th Avenue and look for the machine shed on the right.

The list of other 2012 fall cover crop field days is below. For additional details and directions, visit www.practicalfarmers.org or call the PFI office at 515.232.5661.

2012 Fall Cover Crop Field Day Schedule
-    Tuesday, Oct. 30 – Farm of Bill, Steve, David and Robert McGrew; Emerson; Address: 38843 Gaston Ave.
-    Wednesday, Oct. 31 – Farm of Mike Henning; Winterset; Address: northwest corner of 152nd Street and U.S. Route 169 for first half; Madison County Extension office, 117 N. 1st Street / John Wayne Drive, for last half and lunch
-    Thursday, Nov. 8 – Farm of Art Behrens; Carroll; Address: 25273 Kittyhawk Ave.




HSUS Targets Iowa Rep. King

Rep. Steve King of Iowa has little use for the Humane Society, particularly when it comes to laws designed to give calves, pregnant sows and hens a little more freedom on the farm.

The organization's political arm is devoting the vast majority of its campaign budget this year — nearly $500,000 so far -- to ensuring King doesn't return for a sixth term.

The Humane Society of the United States calls its campaign Stop the King of Cruelty. Its ads take King to task for his opposition to bills related to dogfighting and requiring emergency management offices to account for pets and service dogs in their preparedness plans.

"He has made himself the self-appointed leader to oppose animal welfare laws in the House of Representatives," Michael Markarian, president of the Humane Society Legislative Fund, said of the conservative Iowa congressman. "He routinely speaks against animal protection policies and tries to defeat them."

King's campaign says the Humane Society is going after him because he's an effective advocate for the state's farmers.

"The (Humane Society) and their legislative fund has a clear agenda of passing more burdensome government regulations down to America's farmers and Congressman King has been particularly effective in working to get government out of the way and allow the Iowa ag industry to produce," said campaign spokesman Jimmy Centers.

The Humane Society's ads focus on pets but don't address the clashes they've had with King on farming issues. Iowa is by far the largest egg-producing state in the nation, and King's district plays a big role in that distinction. King led the effort this past summer to scuttle efforts that a few states are making to increase the quality and size of cages for hens.

California has been a leader in the effort. The California Legislature approved a bill that extends more expansive cage requirements to all eggs sold in California, regardless of where the eggs are produced. Iowa produces about 30 percent of the eggs purchased in California.

King successfully included in the House farm bill a measure that would bar California and other states from essentially exporting their cage standards to agricultural producers in Iowa. King says that California's law violates the clause in the Constitution that gives Congress the power to regulate commerce among the states.

His amendment will "ensure that radical organizations like the Humane Society of the United States and PETA are prohibited from establishing a patchwork of restrictive state laws aimed at slowly suffocating production agriculture out of existence," King said after the House Agriculture Committee passed it.

King is running against Democrat Christie Vilsack in a newly redrawn district that now includes the college town of Ames. He hasn't faced a tough re-election before but has one on his hands this time, prompting the Humane Society to weigh in.

The Humane Society tried to give Vilsack a $1,000 donation, but the campaign declined the money. It has a policy of not accepting donations from groups that lobby the U.S. Agriculture Department, headed by Vilsack's husband, Tom. He is a former governor of Iowa.

The Humane Society's ads don't touch on the battles they've waged with King on agriculture issues. They're focused primarily on stands King has taken on dogfighting, noting that he voted against a 2007 bill making it a felony to transport animals across state lines for fighting purposes and voted against a 2012 amendment that prohibits bringing a child to organized animal fights.

Centers said King condemns all forms of animal fighting. His problem with the legislation cited by the Humane Society is that dogfighting is already illegal in all 50 states and bringing a child to a dogfight constitutes endangerment.

"How many times do we need to make something illegal if it's illegal?" Centers said. "Why create more and more government bureaucracies and legislation when something is already illegal?"

In its scorecard rating members of Congress based on their voting record and sponsorship of bills, the Humane Society gave King a score of zero for the current Congress. He has a lifetime score of 8 percent.

Meanwhile, King got a seal of approval this year from the Iowa Farm Bureau, which designated him a "friend of agriculture."



Iowa Weights-Measures, Feed-Fertilizer Chiefs Named

Iowa Secretary of Agriculture Bill Northey announced that Randy Watts has been hired as the Feed and Fertilizer Bureau Chief and Mike Manahl will lead the Weights and Measures Bureau at the Iowa Department of Agriculture and Land Stewardship. Watts started on Sept. 28 and Manahl started on Oct. 12.

"Randy and Mike both bring strong leadership to these Bureaus and will be a tremendous asset to the Department as we seek to continue to serve the people of Iowa," Northey said.

Watts will oversee the Feed and Fertilizer Bureau, which licenses and inspects manufacturers and distributors of fertilizers, soil conditioners, bulk dry animal nutrients, agricultural limestone and commercial feed. The bureau also handles the inspection of egg handlers.

Watts has been an inspector in the Department's Weights and Measures Bureau since 2008 and before that he owned and operated a feed manufacturing facility in Nevada, Iowa.

"I am very grateful for this opportunity and proud to be able to be part of the team," Watts said. "The Feed and Fertilizer Bureau does important work and I look forward to continuing to work with the Department's staff and the regulated industry to fulfill our statutory obligations."

As Weights and Measures Bureau Chief, Manahl will oversee the license and inspection of many of the scales and meters that safeguard the integrity of approximately $10 billion of annual commercial activity in Iowa. The Bureau, which was created in 1923, conducts mandated inspections of gas pumps, counter scales, large scales (truck, railroad, livestock, hopper, and platform scales) and mass flow meters. The Department has also responsible for the inspection and certification of grain moisture meters.

Manahl previously worked for the Iowa Department of Public Health as the state antiviral coordinator. He also has 25 years of service in the U.S. Army Reserve and currently is a Master Sergeant, Senior Health Care Specialist and Chief Wardmaster.

"I feel privileged to have the opportunity to work as the Bureau Chief for Weights and Measures, not many people realize how the scales and meters we regulate affect Iowans almost daily," Manahl said. "Insuring the integrity of weights and measures improves consumer confidence in purchases and allows businesses to compete fairly in the market place. The bureau has a long distinguished history and I look forward to continuing that tradition."



CME Group to Acquire Kansas City Board of Trade

CME Group, the world's leading and most diverse derivatives marketplace, and the Kansas City Board of Trade, the leading futures market for hard red winter (HRW) wheat, today announced they have signed a definitive agreement under which CME Group will acquire the Kansas City Board of Trade (KCBT).

Under the terms of the transaction, CME Group will pay $126M in cash for KCBT. In addition, KCBT will make a special distribution of excess cash to members concurrent with closing. CME Group has committed to maintain a committee made up of KCBT market participants to advise on HRW wheat contract terms and conditions for at least three years, and to maintain the historic KCBT trading floor in Kansas City for a period of at least six months.

"Global agricultural market participants continue to depend on liquid, transparent risk management tools for price discovery in both established and emerging economies," said CME Group Executive Chairman and President Terry Duffy. "Building on two rich legacies, the combination of KCBT Hard Red Winter Wheat products with our deep and liquid CBOT Soft Red Winter Wheat futures and options markets will provide new trading opportunities for market participants around the world – both on the trading floor and on the screen."

"This transaction creates significant value for customers and shareholders of both companies. While the CBOT and KCBT Wheat contracts are very distinct products with different uses, the ability for producers and commercial participants to hedge their risk in both key benchmarks in one place will produce cross-margining benefits and other capital efficiencies," said CME Group CEO Phupinder Gill. "In addition, product development opportunities here are great for both of our client bases – not only in futures, but also in options that can help market participants manage risk at a reduced cost during targeted timeframes in the crop year."

"Given the increasing operational demands and regulatory requirements, it was deemed beneficial that the KCBT partner with an exchange with the technology, experience, leadership and resources of CME Group," said Steven K. Campbell, KCBT Chairman. "KCBT's flagship HRW wheat product is a logical and valuable addition to CME Group's global grains complex. After considering a number of qualified interested parties, the KCBT's Board of Directors is convinced that the CME Group is the best fit for the long-term goals of our exchange, our product offerings, and in continuing to meet the price/risk management needs of our customers."

"Throughout KCBT's 156-year history, trading has evolved dramatically, with an increasing emphasis on technology in recent years," said Jeff Borchardt, KCBT President and CEO.  "CME Group's position as a global leader in electronic trading access and capability makes them an ideal partner for the future of KCBT's HRW wheat contract, the global benchmark for bread wheat."

The board of directors of KCBT unanimously approved the transaction, which is expected to close later this year pending approval by KCBT shareholders and regulators, expiration of the applicable Hart-Scott-Rodino waiting period and completion of customary closing conditions.

The addition of HRW wheat upon completion of the transaction will further enhance CME Group's already broad agricultural product offering. HRW wheat is the predominant variety grown in the United States, and is also the leading variety sold through export. Customers around the globe will continue to benefit from access to underlying CBOT and KCBT wheat contracts through the CME Globex electronic trading platform.



Legality of BNSF’s Acquisition by Berkshire Called Into Question

The legality of Berkshire Hathaway’s acquisition of BNSF Railway has been called into question following the discovery that Berkshire owned short-line railroads in Oregon and Iowa before the transaction. Ownership of these assets means Berkshire needed approval by the Surface Transportation Board (STB) before it purchased BNSF in 2010, which it did not receive. BNSF has acknowledged that the acquisition should have been subject to the STB’s authority and has said the company will sell both railroads by the end of year and provide progress reports to the STB every 30 days. BNSF believes legislators’ calls for regulatory action on the issue are an “unnecessary overreach and a waste of taxpayer dollars." A separate concern for rail customers is the $8 billion acquisition premium paid by Berkshire when it bought the railroad and whether or not BNSF will raise rates to compensate for that premium. The STB has issued a notice requesting public comments on the BNSF acquisition by Nov. 8.



USDA Expenses Last Year Within Budget

Actual USDA spending in the fiscal year that ended September 30 came in at $139.7 billion, or $7.7 billion less than the Office of Management and Budget forecast in its mid-session review. The details came Friday in an announcement by OMB and the Treasury Department that federal budget outlays in fiscal 2012 were $3.538 trillion for FY 2012, $114 billion below the forecast.

The federal deficit for the year was $1.08 trillion, $207 billion less than the previous year's level and $238 billion less than forecast in President Obama's February budget.

The largest spending shortfall at USDA came in the Food and Nutrition Service, which spent $2.6 billion less than anticipated in the July outlook.  The majority of the difference was due to lower-than-expected growth in the child nutrition free meals program.

FSA Payments $1.2 Billion Less Than Expected in FY2012
Outlays from USDA’s Farm Service Agency (FSA) programs were $1.2 billion lower than expected in FY2012, the Treasury Department and Office of Management and Budget (OMB) reported late last week. The figure came as part of a review of overall income and spending by the federal government during its 2012 fiscal year, which ended Sept. 30. The difference in FSA outlays was attributed to “lower commodity marketing loan-making and higher loan repayments than anticipated, due to higher-than-estimated crop prices.” FSA also paid out less for 2010 disaster assistance than anticipated. The overall federal budget’s deficit in FY2012 was $1.089 trillion, $207 billion less than FY2011. Additional details on the report are at http://www.treasury.gov/press-center/press-releases/Pages/tg1734.aspx.

In addition, FSA disaster assistance for 2010 losses and other disasters were under the estimate.




ASA, Export Credit Working Group Reach Out to USDA on GSM-102 Program

ASA and its 13 fellow members of the Export Credit Working Group (ECWG) submitted a letter this week to Agriculture Secretary Tom Vilsack on the importance of the GSM-102 credit guarantee program to American agriculture.

"As many foreign financial institutions, especially in Europe, continue to be constrained by economic difficulties, the liquidity provided to trade markets by the GSM-102 program remains critical," wrote the ECWG. "We urge USDA to move quickly to reassure the global commodity markets by providing the much needed liquidity to ensure that these markets continue to function smoothly and efficiently."

The GSM-102 program is administered through the Commodity Credit Corporation, and provides credit guarantees to encourage financing of commercial exports of U.S. agricultural products, while providing competitive credit terms to buyers.

Joining ASA in the ECWG is the American Cotton Shippers Association, the American Farm Bureau Federation, CoBank, Louis Dreyfus Commodities, the National Council of Farmer Cooperatives, the National Grain and Feed Association, the National Oilseed Processors Association, the North American Export Grain Association, the USA Rice Federation, the U.S. Grains Council, the US Rice Producers Association, and U.S. Wheat Associates.



EPA Releases September Biodiesel Volume

The EPA said Thursday that 86 million gallons of biodiesel were produced in September, reporting year-to-date production of nearly 843 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).  The EPA numbers show a total of 96.5 million gallons of Biomass-based Diesel for the month of July, 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 40,000 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.



Weekly Ethanol Production for 10/12/2012

According to EIA data, ethanol production averaged 797,000 barrels per day (b/d) – or 33.47 million gallons daily.  That is down 3,000 b/d from the week before.  The 4-week average for ethanol production stood at 798,000 b/d for an annualized rate of 12.23 billion gallons. Imports totaled 122,000 b/d for the week--the highest level since EIA began tracking weekly imports in June 2010.

Stocks of ethanol stood at 19.0 million barrels. That is a slight decrease from last week.

Gasoline demand for the week averaged 366.6 million gallons daily.  Expressed as a percentage of daily gasoline demand, daily ethanol production was 9.13%.

On the co-products side, ethanol producers were using 12.084 million bushels of corn to produce ethanol and 88,948 metric tons of livestock feed, 79,298 metric tons of which were distillers grains.  The rest is comprised of corn gluten feed and corn gluten meal.  Additionally, ethanol producers were providing 4.15 million pounds of corn oil daily.



Export Exchange 2012: Public-Private Partnership Boosts US Exports

Nearly 200 international buyers hailing from 32 countries are flocking this week to Minneapolis for Export Exchange 2012 ... a timely reminder that U.S. agricultural exports must be earned one buyer at a time ... and that effective cooperation among U.S. producers, agribusinesses and USDA is a key to winning sales. Agricultural exports are one of America's biggest winners in international trade, and Export Exchange promotes sales that will create exports, jobs, and economic growth across the United States.

Export Exchange is a unique international marketing event co-sponsored by the U.S. Grains Council and the Renewable Fuels Association. The conference aims to provide attendees with timely insights about international markets for U.S. coarse grains of corn, sorghum and barley and their co-products, including distiller's dried grains with solubles (DDGS) and corn gluten. It is also a key opportunity for more than 300 U.S. attendees, representing every link of the U.S. coarse grains export chain, to network with foreign buyers responsible for more than 60 percent of U.S. foreign sales of barley, sorghum, corn, DDGS, and other co-products.

Despite rising competition from Brazil, Argentina, Ukraine and other exporters, the U.S. remains by far the world's biggest exporter of feed grains and DDGS. This market dominance is no accident -- it is the product of a longstanding public-private partnership dedicated to boosting U.S. exports and creating American jobs. Export Exchange is a great example of this partnership in action.

Partially funded by the private sector through contributions from U.S. producer organizations, agribusinesses, and the ethanol industry, Export Exchange also receives support from USDA through the Market Access Program (MAP), which helps fund the travel of foreign buying teams to the United States, Unfortunately, MAP is among the key Farm Bill programs threatened with a shutdown if the Farm Bill is not reauthorized in the near future.

The world's grain buyers are gathering at Minneapolis next week, and you won't want to miss your chance to participate in the Export Exchange 2012. Onsite registration is still available. For more information, including a full conference agenda, please visit www.exportexchange.org.  



Now Accepting Applications for the 2014 Corn Board

The National Corn Growers Association Nominating Committee is now accepting applications from members for the 2014 Corn Board.  Through the Corn Board, members can become an integral part of the organization's leadership.

"Through working with my fellow growers on the Corn Board, I have come to more fully appreciate the wealth of talented, dedicated volunteers who step forward to lead this organization," said NCGA Chairman and Nominating Committee Chair Garry Niemeyer. "This willingness plays an integral role in ensuring NCGA's continued success. As a true grassroots organization, we rely upon farmers to volunteer for leadership, helping to shape policy and drive efforts. Serving on the Corn Board allows farmers a chance to build a better future for the industry and become an active force for change."

The NCGA Corn Board represents the organization on all matters while directing both policy and supervising day-to-day operations.  Board members serve the organization in a variety of ways. They supervise the affairs and activities of NCGA in partnership with the chief executive officer and implement NCGA policy established by the Corn Congress. Members also act as spokespeople for the NCGA and enhance the organization's public standing on all organizational and policy issues.

Applications are due Friday, January 11. Nominated candidates will be introduced at the March 2013 Corn Congress meeting, held in conjunction with the Commodity Classic in Kissimmee, Fla. Corn Board members will be elected at the July 2013 Corn Congress in Washington, D.C., and the new terms begin Oct. 1.

For more information, growers may contact Kathy Baker at NCGA's St. Louis office at (636) 733-9004.



FFA Convention Broadcast To Launch Digital Television Network Partnership

For the first time, those interested in viewing the National FFA Convention & Expo will have both broadcast and digital viewing options, thanks to a new partnership between iHigh.com, Alltech and Rural Media Group, Inc., who have joined forces to launch MyRURALTV.com on iHigh.com.

The MyRURALTV.com site on iHigh.com offers the world’s largest library of rural-based programming, which is made available at no charge to the viewer.  More than 140 independent program producers anchor the site with 5,000+ hours archived at this time.   The site is updated weekly with additional offerings coming from both the RFD-TV and RURAL TV broadcasts, which break the site down into separate channels for agriculture, equine, rural lifestyle, and traditional music & entertainment.  MyRURALTV is supported by advertising that can be targeted for regional spots down to the viewer’s zip code.

“The FFA Convention is the perfect opportunity to unveil this new technology, as it will allow us to showcase exactly how major rural events can now be covered,” stated Patrick Gottsch, Rural Media Group’s founder and president.  “Not only will viewers be able to watch on their computer, iPad or mobile devices around the world, but the event itself can receive additional coverage that has never been possible before with our television broadcasts.  Anyone now has the option to watch as-it-happens or anytime at their convenience.”

This year all nine FFA sessions, totaling in excess of 40 hours and taking place between October 24-27, will be broadcast “live” on RFD-TV and simulcast online at MyRURALTV.com and iHigh.com/FFA.  In addition, six of the career development events (CDE) as well as special features produced by the RURAL TV news team in association with the FFA communications department will be available.  FFA chapters will be invited to upload their photos and videos during convention to their iHigh sites.

“What’s really inspiring is to witness the outstanding accomplishments of these students,” said Dwight Armstrong, chief executive officer for the National FFA Organization.  “In addition to academic achievements in the science, business and technology of agriculture, FFA members are becoming strong leaders for their communities and industry.  Thanks to the broadcasts, millions can join the celebration and support these FFA members as they prepare to feed the world.”

“The combination of the iHigh technology, RFD-TV/RURAL TV’s massive programming and Alltech’s marketing make this an ideal partnership that will revolutionize communication not only for rural America but the rural world,” offered Jim Host, founder and president of iHigh.com.  “FFA members, advisors and family will be blown away by the volume of coverage now available from their convention.  We will also be able to offer this service to FFA state conventions in the coming year.”



Beef Checkoff Communicates with Key Nutrition Thought Leaders

Once again, the beef checkoff partnered with the Academy of Nutrition and Dietetics (formerly the American Dietetic Association) to reach nutrition thought-leaders, including registered dietitians and other credentialed health professionals and media at the recent 2012 Academy of Nutrition and Dietetics annual Food and Nutrition Conference & Expo in Philadelphia, Penn.

More than 300 participants of the conference attended a checkoff-funded educational session entitled, “From Farm to Fork: The Evolution of Our Favorite Foods.” This session featured Drs. Tom Field and Nancy Rodriguez who presented a look at interventions made by producers of today’s food in response to changes in dietary guidance to make nutrient rich foods like beef more widely accessible. A spotlight was placed on modern beef production and changes in breeding, feeding and trimming that have resulted in leaner beef choices.

“Many of the people we reached are corporate nutritionists, so not only are we reaching ‘private practice’ audience but those who influence the nutrition education for thousands of employees,” says Jeanne Harland, beef producer from Illinois and vice chairman of the checkoff's Joint Nutrition and Health Committee.  Harland was on hand to greet visitors to the booth and help answer questions about beef production. “I can’t think of a better return on investment than spending 20 minutes talking with somebody who might have that scope of influence. And it’s about relationships – maintaining the checkoff’s relationship with dietitians and health professionals is extremely important because they know the checkoff has science-based research and that’s who they turn to for the facts."

Checkoff dollars also supported a prominent exhibit at this year’s conference and this provided an opportunity to distribute more than 5,000 beef nutrition resources such as information about the Beef in an Optimal Lean Diet (BOLD) study. Booth visitors also enjoyed samples of heart healthy recipes from The Healthy Beef Cookbook like Sirloin with Sugar Snap Pea and Pasta Salad with Gremolata Dressing and Sirloin Sandwich with Red Onion and Dried Fruit Marmalade.

In addition, the beef checkoff helped support the Academy Foundation gala dinner, which provided nearly 650 leaders in the nutrition community with a nutrient-rich meal featuring lean beef tenderloin at the center of the plate. New this year was an invitation-only educational breakfast session attended by prominent nutrition leaders who heard presentations about research supporting beef’s role in a heart healthy diet by Dr. Tia Rains and registered dietitian Betsy Hornick. This was followed with a tabletop discussion facilitated with the help of state beef council registered dietitians from Kansas, Nebraska and New York.

“I was thinking about the large impact our checkoff dollars have had – there were more than 11,000 people at this conference,” says Harland. “If I took all the dollars I’ve paid into the checkoff over my farming career, I couldn’t even buy them all a cup of coffee. But to have the ability to share our credible information with this group, like the commercials say, it’s priceless.”

This event will be held in Houston, Texas, in October 2013.

For more information about your beef checkoff investment, visit MyBeefCheckoff.com.



Researchers Find Genetic Path to Strengthen Soybeans Against Cyst Nematode

Soybean cyst nematode does hundreds of millions of dollars' worth of damage each year.

Matt Hudson and Brian Diers, crop sciences researchers at the University of Illinois and Andrew Bent at the University of Wisconsin, think they may have found a way to strengthen plant resistance.

The research has just been published in Science Express.

Diers and Hudson, with researchers at Wisconsin and the University of Nebraska, have been studying an area on chromosome 18 called Rhg1 (Resistance to H. glycines) that is known to be the location of the main source of SCN resistance.

Rhg1 disrupts the formation and maintenance of potential nematode-feeding sites on plant roots.

Most SCN-resistant soybeans in the Midwest are bred to contain Rhg1, but no one knew the DNA sequence of the gene that was responsible for the resistance. Diers wanted to find it.

"You could say it's a billion-dollar gene because it's in many varieties, it's widely used, and it's protecting varieties against these nematodes," he explained.

Using fine mapping, which is a technique that involves mapping genes in a very constrained area, Diers narrowed the search down to a few gene candidates. At that point, Hudson and Bent got involved in the analysis.

By then, the soybean genome sequence had been completed, greatly facilitating their research.

"It became possible to know which genes were within the genetic intervals that people had historically used to confer traits like nematode resistance," Hudson said. "When we had the genome sequenced, most people were shocked by how many genes there were in regions that people considered to be one gene."

There was, however, one big problem: the soybean that had been sequenced was not nematode-resistant.

"So, however many genes there were in the Rhg1 interval, we knew that the gene that actually makes the plants nematode-resistant wasn't there," Hudson said.

They went back to the nematode-resistant line and sequenced the genome in the interval. When they finished, they saw something very unusual.

Rather than finding a gene in the resistant line that was not present in the susceptible line or changes in a gene that was present in both, they saw that a group of four genes had been replicated several times.

With further work, they found that nearly every soybean variety that is known to be SCN resistant has more than one set of these genes.

The Peking variety has three copies of this group, and the Fayette variety has 10. The susceptible variety, Williams, has only one copy.

The Wisconsin researchers used a technique called Fiber-FISH to show that the genes make soybeans nematode-resistant.

It allowed them to look into the DNA molecule and count the number of genes in a row.

They also found that levels of expression of these genes were higher where there were more copies of the genes.



Sixth record sales year for CAB

Amid U.S. cattle and beef supplies curtailed by economics and drought, Certified Angus Beef LLC (CAB) reported record sales of its signature brand for a sixth consecutive fiscal year that ended September 30.
More than 16,000 licensed partners around the world made that possible by capitalizing on the consistent dining experience the premium brand brought to consumers as prices for all beef continued higher. Sales totaled 811 million pounds, surpassing last year’s record by 4 million pounds and up 49% from just six years ago. During that period known for its challenging consumer economy, Certified Angus Beef ® brand sales advanced from representing 5.6% to now more than 9.6% of all federally inspected cattle harvest.

That continued growth speaks to brand partners’ commitment to provide and serve the highest quality Angus beef available, and attests to increasing consumer demand for premium products, said company president John Stika.

“It is only because of our partners’ dedication and commitment that we see gains. Their hard work and leadership of the quality beef movement is what makes this brand relevant and successful,” he said.

Sector success stories
Growth varied between company sectors, led by the foodservice and international divisions. Across all areas of the business, partners with the greatest success did so by stepping up their commitment to the CAB brand using innovation, creativity and targeted promotions. Sales hit all-time highs in March, August and June with the most growth seen in clod sales from the chuck and in all the grinds.
Comprising more than 32% of total CAB business volume, foodservice sales grew more than any other area at 4%, setting an annual record of 260 million pounds. That came mainly from end meats and grinds, up 6 million and 10 million pounds, respectively.

With consumers more closely monitoring expenses and tracking favorable dining experiences, direct sales to licensed restaurants climbed 16%. Those establishments recognized the continuing demand for high-quality beef, and took steps to add brand messages on restaurant menus, magnifying their ability to communicate the value advantage to consumers.

Though retail sales declined a slight 2%, the division finished strong with summer grilling months among the highest ever for sales. Partners with the most sales tended to have the most brand features in their advertising circulars. Of the top 25 CAB licensed retailers, those with increased sales also had an average of 10% more front page ads compared to 2011, and placed 47% more brand ads overall.

The return to record-setting international sales is particularly notable since that finally moved past the global U.S. beef sales setback of 10 years ago. Record sales months in February and March demonstrated that market access issues and product flow disruptions would not keep international sales from rising 4%, reaching 94 million pounds in 55 countries. Canada and Mexico remain the strongest foreign markets, and the brand was introduced in Colombia, Peru and Chile.

The value-added products division’s record 21.5 million pounds blew past its 2011 record by 16%. That success was led by the introduction of such convenient, high-quality items as retail-packaged marinated cuts and fully-cooked refrigerated and frozen entrees.

With drought conditions across North America factoring into an overall decrease in supplies, 3.24 million cattle were accepted for CAB, down 320,000 head from 2011 but still the third-largest number to qualify in any year. The key to sales records in spite of lower cattle supplies came from the increase in pounds sold per carcass. That utilization increased 10% from 2011, demonstrating additional packer commitment to meeting demand for the premium brand. 

Looking ahead
The opening of the Education & Culinary Center in Wooster, Ohio, last February should advance further collaboration with partners and bridge the gap between ranchers and consumers through innovative education, Stika said. Since its opening, more than 40 groups have participated in programs that included menu merchandising, discovering and using new cuts, beef science and more.

On the supply side, the GeneMax™ DNA test for gain and grade potential, just introduced at the middle of the fiscal year, saw orders for more than 3,000 test kits from more than 70 Angus ranches by year’s end.
“As we and our partners enter fiscal year 2013, continued success depends on staying focused on listening and understanding consumer demand,” Stika said. “We must prepare for anything but stay intentional on providing a memorable dining experience that delivers time and time again.” 

The brand’s 16,000 businesses partners worldwide generate an estimated $4 billion in consumer annual sales. Introduced in 1978, CAB is a cut above USDA Prime, Choice and Select thanks to 10 added quality standards. For more consumer information, visit www.certifiedangusbeef.com, or the blog at www.GoRare.com. For producer information, go to www.cabpartners.com. 



Is Brazil the reservoir of future agricultural productive capacity?
Daryll E. Ray and Harwood D. Schaffer

Back in 2001, we estimated that Brazil could bring 200 to 300 million acres of land into agricultural production—an area equal to the US acreage involved in major crop production. Two years later the, USDA Foreign Agricultural Service, (FAS) estimated that over time the potential added production acreage could be closer 420 million acres.

In our 2003 article describing the FAS report we wrote: “The long-term trend suggests that this expansion would proceed at the rate of 3 to 4 percent a year, if current conditions continue to prevail. Significantly lower crop prices or higher cattle prices could retard the expansion of crop acreage, while high crop prices could accelerate the growth in crop acreage.

“This growth is premised on three conditions: 1) the legalization of the production of GMO crops in Brazil; 2) the widespread adoption of high-yield crop varieties; and 3) improvement in the transportation infrastructure in Brazil that will lower the cost of getting agricultural crops to the port.”

Let’s look at this information once again, nearly a decade later. Crop prices this year are at record levels. Brazil has long since adopted the cultivation of GMOs and soybean yields match or exceed those in the US, depending upon weather. The only obstacle Brazilian farmers face is getting the crop from the field to international markets, though that will not always be a problem.

Thus we were not surprised to read, in a series of three DTN articles by Alistair Stewart, that “record prices will prompt Brazilian farmers to plant soybeans on any available ground this season [note the word “season” not “year”], whether it be old pasture in the east of Mato Grosso, recently cleared scrub in the new frontier lands of the northeast, or land previously earmarked for corn in the south. As a result, soybean-planted area is set to rise for a fifth-consecutive year—by 8 percent to 12 percent to 67 million to 69 million acres—forecasters say.”

And that is not all, if farmers in a number of areas are able to get the soybeans growing in time, they will be able to double-crop their fields with corn in late February. While corn yields in Brazil are well below those in the US, a second crop of corn helps cover fixed costs, increasing already profitable margins per hectare. Those who are able have every reason to try to double-crop their fields.

Though today’s Brazilian corn yields are nowhere near those in the US, that is unlikely to be the case in the long-run. The current high prices will certainly drive investment in the research necessary to increase yields.

In addition to double cropping, Brazilian farmers have the option to rotate crops with cattle production, an option unavailable to most Iowa and Illinois farmers. In 2003 when we talked to a member of the FAS team that estimated the 420 million acres, he told us that the rotation of livestock and crops, particularly soybeans, accounted for a portion of the increased acreage they had identified. That option is particularly attractive given the synergy between crop and livestock production.

In the last decade Brazil has made some progress improving its transportation infrastructure, but with the huge increase in crop production, there is still a long ways to go. However, once again today’s high prices are driving long-term investments in paving roads, extending railroads, and improving port facilities all with the goal of reducing transportation costs.

To us all of this suggests that, for the foreseeable future, the world’s ability to grow crops, lead by Brazil, will continue to run ahead of population growth, putting a downward pressure on crop prices. As suggested by the word “continue,” this is indeed what has been happening over the decades, with the major geographical contributions to agricultural productivity varying over time.

However, there are those who believe that agriculture has entered a “new era.” They argue that future agricultural supply and demand conditions will cause inflation-adjusted agricultural prices to reverse their historical patterns and trend upward in the years and decades ahead.

Although such Malthusian predictions are been embarrassingly common, some of the arguments this time around are worth seriously considering. We will summarize those arguments in our next column.

Daryll E. Ray holds the Blasingame Chair of Excellence in Agricultural Policy, Institute of Agriculture, University of Tennessee, and is the Director of UT’s Agricultural Policy Analysis Center (APAC). Harwood D. Schaffer is a Research Assistant Professor at APAC.