Friday October 5 Ag News

$5,000 DuPont Pioneer Grant Goes to IANR Entrepreneur Youth Day

The University of Nebraska-Lincoln's Institute of Agriculture and Natural Resources has received a $5,000 DuPont Pioneer grant towards its Entrepreneur Youth Day. 

"Young minds bringing their talents forward along with new, creative ideas are the seeds of the future," said Steve Reno, Pioneer Western Business Unit director. "We are proud to support programs that cultivate expanded horizons for youth in agriculture. Whether it's bringing those entrepreneurial skills to fruition by starting their own business or utilizing the skills working for someone else, they are invaluable tools that will help them succeed in a multitude of areas."

"Helping young people develop these kinds of skills will help them select career choices, be successful in school, and contribute to the state's overall strength," said Kathleen Lodl, associate dean of UNL Extension. "Public/private partnerships like this bring new opportunities for young people to network with future employers and get input from successful adults."

Pioneer makes contributions to community-based organizations on behalf of the business and employees. Consideration for community outreach grants are given to communities where Pioneer representatives, employees and customers live and work and that support quality-of-life initiatives to create an improved, sustainable lifestyle for people worldwide.

DuPont Pioneer is the world's leading developer and supplier of advanced plant genetics, providing high-quality seeds to farmers in more than 90 countries. Pioneer provides agronomic support and services to help increase farmer productivity and profitability and strives to develop sustainable agricultural systems for people everywhere.

DuPont Pioneer has been bringing world-class science and engineering to the global marketplace in the form of innovative products, materials and services since 1802. The company believes that by collaborating with customers, governments, NGOs, and thought leaders, it can help find solutions to such global challenges as providing enough healthy food for people everywhere, decreasing dependence on fossil fuels, and protecting life and the environment. For additional information about DuPont and its commitment to inclusive innovation: www.dupont.com.



Forest Service Urges Extra Precautions Against Wildfires This Fall

The Nebraska Forest Service says farmers, ranchers and homeowners should take extra precautions to prevent fall wildfires. The extremely dry conditions that spurred an unusually active wildfire season, the lack of rain and an increase in the amount of dead and dying foliage could pose a higher risk of wildfires.

"The drought has left much of Nebraska's landscape prone to fires, not only in forested areas but also in farm fields and around homes," said Don Westover, wildland fire protection program director. "We're urging Nebraskans to take steps to prevent dangerous wildfires this fall."

Forestry officials encourage taking extra precautions, since large fires in Nebraska are not limited to the summer months. Last October, 154 wildfires burned more than 6,000 acres; 88 of those fires were related to equipment use.

"It's not unusual for a harvest operation to start wildfires," Westover said. "Corn and soy beans are not harvested until they are dry, which creates dry fuel for a fire."

Farmers are urged to take steps to help prevent wildfires:
– Maintain harvest equipment. Make sure it is in good operating condition so that it will operate as cool as possible.
– Keep crop residue from accumulating on farm equipment – manifolds, ledges and other areas that become hot.
– Start harvesting on the down-wind side of the field. If a fire breaks out, it will burn the crop stubble rather than the unharvested crop.
– Keep a fire extinguisher on board farm equipment. Fires start small, and many can be stopped before becoming a damaging wildfire.
– Carry a cell phone and keep the local fire department's phone number programmed in your phone. The sooner you notify the fire department, the sooner a fire can be contained.

Homeowners in both urban and rural areas also need to be aware of how drought conditions have affected their landscapes. Emphasis should be placed on creating a defensible space around homes and buildings. Reduce the amount of flammable vegetation surrounding the home by removing dead vegetation, including branches, leaves, needles and twigs that are still attached to plants. Vegetation and other fuels burning near the house produce flames that contact the home and ignite it. Keep plants located near the house healthy, green and irrigated during fire season.

The publication "Living with Fire," a homeowner's guide to reducing the risk of wildfires, is available on the Nebraska Forest Service website. Separate guides are available for eastern and western Nebraska homeowners; each guide is focused on regional areas of concern. The guide includes no-cost ways to make a home fire wise. Visit nfs.unl.edu for more safety tips. The Nebraska Forest Service is an affiliate of the University of Nebraska-Lincoln, Institute of Agriculture and Natural Resources.



Meat Industry Veteran Earl Skahill Named Distinguished Service Award Winner

Long-time meat industry veteran Earl J. Skahill has enjoyed a 44-year career that has seen him manage beef and cattle feeding operations in the Midwest, open export offices in Asia, establish several export “firsts,” and found his own meat distribution company in Colorado.

Now, more than four decades after starting his career in his family’s cattle feeding business, Skahill is adding the U.S. Meat Export Federation’s Distinguished Service Award to his extensive resume. The award is presented to members of the industry who have worked with special dedication for the industry and the federation and have shown outstanding leadership and contributions in the achievement of USMEF’s export goals.

“I am very proud of this award, and proud that it’s coming from USMEF,” said Skahill. “Exporting was the highlight of my whole career. I enjoyed it more than running meat packing and processing plants or any of the many other things I’ve done in this industry.”

After graduating from Marquette University, Skahill managed his family’s cattle feeding business after his father passed away before joining Dubuque Packing Company as manager of lamb and cattle feeding operations. Over his 18 years with Dubuque Packing, Skahill learned the business from the inside out, managing the variety meat and hide operations, managing slaughter and fabrication plants in Kansas, Nebraska and Iowa before overseeing all production at seven plants throughout the Midwest.

Skahill’s exposure to the international market started in 1968 when he added international sales to his resume, introducing Dubuque products to Europe and Japan as well as much of the Pacific Rim. He lists among his most proud accomplishments his introduction of Certified Angus Beef (CAB) to Japan (Victoria Station – alongside USMEF-Japan’s Susumu Harada) and Taiwan (Grand Hotel in Taipei), along with expanding CAB business in South Korea and Thailand.

From Dubuque Packing, where Skahill achieved the title of executive vice president and assistant to the president, he moved to Gerber Agri-Export, a South African company with 18 international offices. There, as senior vice-president, he introduced Gerber into the Asian market before he acquired Gerber’s Denver office in 1995. He has grown that single office into a three-office company, Meat Specialty of Colorado, which sells beef, pork and other products throughout the Southwest.

Over the course of his 44-year career, Skahill has seen many changes in the meat industry, none more significant than the evolution of the beef industry from selling carcasses to boxed beef. That is closely followed by the expansion of beef exports to Japan from frozen to chilled.

“Early on, Australia was way ahead of the U.S. industry in terms of shelf life, getting 90 days to 30 or 40 for the U.S.,” said Skahill, who studied the fresh chilled beef program at the Beef City plant in Australia. “Expanding the shelf life and our ability to ship chilled beef to Japan is what’s responsible for the huge amount of beef we export today.”

The Distinguished Service Award doesn’t mark the conclusion of Skahill’s career, just another landmark along the way. Skahill intends to continue running Meat Specialty of Colorado and managing his ranch in Texas. And one of his three sons, Mike, vice president of international sales for Smithfield Foods, helps to carry on the family’s passion for meat exports.

“I want to work every day,” said this year’s award-winner. “I enjoy it. It’s what keeps me going.”



KCBT Eliminates Early Opening Floor Times Effective Jan. 1, 2013

The Kansas City Board of Trade has filed a submission with the CFTC to eliminate the early start time of open outcry trading for the KCBT’s flagship hard red winter wheat futures and options contracts on USDA report release dates effective January 1, 2013. Open outcry trading will open at 9:30 a.m. CT on these days, as it does on all other trading days (Monday-Friday).

Beginning on June 12, 2012 open outcry sessions opened at 7:20 a.m. CT on USDA report release dates with USDA reports being released at 7:30 a.m. CT. This change was made because KCBT electronic trading was available during the USDA release time. However, on September 19, the USDA announced that key statistical reports would be released at 11:00 a.m. CT beginning in January 2013, rendering the earlier open outcry opening time unnecessary. Therefore, the open outcry opening time will return to the later 9:30 a.m. CT time.

Wheat futures and wheat options electronic trading hours (Sunday through Friday) are 5:00 pm to 2:00 pm CT for Hard Red Winter Wheat futures and options.



Informa: USDA to Peg Corn at 11.194 BB

Private analytical firm Informa Economics Friday said it expects the U.S. Department of Agriculture to raise its forecasts for this year's U.S. corn and soybean crops, according to traders.

Informa said it expects the USDA, in a monthly supply-and-demand report due Thursday, to forecast a national corn yield of 127.0 bushels an acre and total production of 11.194 billion bushels, according to traders.

Informa's corn-yield estimate was higher than forecasts issued by some other private firms this week. 

Informa said it expects the USDA to forecast national soybean production of 2.860 billion bushels with a yield of 37.8 bushels an acre, traders said.

The production and yield estimates were up from September estimates of corn production at 11.093 billion, using a yield of 126.6 bushels an acre, and soy output at 2.663 billion, using a yield of 35.2.

In September, USDA put the U.S. corn crop at 10.727 billion bushels, using a 122.8 bushel an acre yield, and soybean output at 2.634 billion, using a 35.3 bushel an acre yield.



GM, Ford Approve Late Model Use of E15
Two of the nation's largest automakers this week approved the use of E15 in their late model vehicles.  General Motors Inc. and Ford said 2012 and 2013 model vehicles, respectively, can accept the 15-percent blend of ethanol in gasoline

"The pressure is now on other auto manufacturers to follow suit or explain why they offer substandard equipment," said Monte Shaw, executive director for the Iowa Renewable Fuels Association.

The announcement represents a slight shift in the position of the auto industry, which has offered some resistance to E15. And it represents a win for the ethanol industry, which says the higher blends are needed to meet the federal Renewable Fuels Standard mandate that ultimately 36 billion gallons of ethanol be blended into the nation's transportation fuel supply by 2022.

And the announcement comes despite claims from the American Petroleum Institute, the oil industry trade group, that automakers would not honor warranties for engine damage caused by ethanol blends higher than the widely used E10.

GM said motorists should consult their manuals for proper fueling procedures for models previous to 2001, the current model-year cutoff established by EPA for E15 approval. The U.S. Appeals Court for the District of Columbia upheld the EPA approval in August to conclude a lawshit brought by the API.



FAPRI Report: Corn Price Fall Less Than 1% With Full RFS Waiver

A full waiver of the Renewable Fuel Standard’s (RFS) conventional biofuel requirement might reduce corn prices by just 0.5% ($0.04 per bushel) in 2012/13, according to a new analysis conducted by the Food and Agriculture Policy Research Institute. The study also found corn ethanol production might slip by just 1.3% with a waiver in 2012/13, while corn available for livestock feed might increase just 0.6%. Further, the analysis concluded a waiver of the RFS would have no effect on retail beef prices in 2013, and might shave just 1 cent per pound off of retail pork prices. The Renewable Fuels Association (RFA) said the new FAPRI study adds to the mounting body of evidence showing that a waiver of the RFS would not meaningfully impact feed prices.

“The new FAPRI study is just the latest in a series of recent reports that show waiving the RFS would not have the types of impacts claimed by the livestock groups and grocery manufacturers,” said RFA President Bob Dinneen. “The suggestion that an RFS waiver would significantly bring down feed prices and reduce retail meat prices is absolutely absurd. The only real impacts of a waiver would be to discourage farmers from planting corn next spring and to interrupt and delay important investments in new feedstocks and advanced biofuels technologies.”

Waiving the RFS requirements during the 2012/13 corn marketing year (Sep. 1, 2012 to Aug. 31, 2013) would have “limited market impact,” FAPRI wrote, adding that “…overall ethanol use and production are projected to be motivated mostly by crop and fuel market conditions in the current marketing year, not the RFS.”

FAPRI analyzed the impacts of a full waiver of the RFS on corn prices, corn demand, ethanol output, imports and exports, and numerous other agriculture and biofuel market factors. The report found a waiver might be expected to reduce corn use for ethanol by just 1.3% in 2012/13 and reduce corn prices from $7.87 per bushel to $7.83 per bushel. In the following marketing year (2013/14), corn use for ethanol might fall 6.6% and corn prices might decrease 3.2%, FAPRI says. However, the 2013/14 result is based on the questionable assumption that RFS credits (called RINs) would still be generated during the period of a waiver and allowed to roll forward for compliance in 2013/14. If this assumption is not valid, then a waiver in 2012/13 would actually lead to a $0.06 per bushel increase in corn prices in 2013/14. FAPRI says these results represent an “extreme case” and pointed out that “more modest reductions seem likely” with a partial waiver.                                                                                                                                                  

Contrary to the statements from livestock and poultry groups, a waiver of the RFS would not meaningfully increase the amount of corn available for feed use in 2012/13. FAPRI’s results show a waiver results in just 25 million more bushels of corn being fed to livestock, a 0.6% increase over the case where there is no waiver. Notably, it was recently confirmed that livestock operations in the southeastern United States have purchased 30 million bushels of corn imports from Brazil—more than the amount of corn that might become “available” to them domestically via a waiver of the RFS. The FAPRI study also found that supplies of important animal feed co-products generated by the biofuels industry, such as distillers grains, would fall marginally with a waiver and prices would rise. The report says lower corn prices would lead to slightly lower feed costs for livestock producers “unless offset by slightly higher soybean meal and distillers grain prices.”

The effect of a waiver on retail meat prices is imperceptible, the FAPRI results show. Retail beef prices are projected at $5.30 per pound with  or without a waiver of the RFS. Retail pork prices might be reduced by one penny from $3.59 per pound to $3.58 per pound, a 0.04% reduction.

Below is a summary of key findings from the FAPRI study.

If EPA waived the RFS requirements for 2012/13 (Sep. 1, 2012 to Aug. 31, 2013):
-    2012/13 corn use for ethanol would fall just 59 million bushels, or -1.3%.
-    2012/13 corn use for feed and residual would increase just 25 million bushels, or 0.6%.
-    2012/13 corn exports would increase just 10 million bushels, or 0.8%.
-    2012/13 ending stocks would increase 23 million bushels, or 3.1%
-    These demand shifts result in 2012/13 corn prices falling from $7.87 to $7.83 per bushel, or -0.5%.
-    Retail pork prices would fall $0.01 from $3.59 to $3.58 per pound, a -0.04% reduction.
-    Retail beef prices are $5.30 per pound with or without a waiver.

If EPA allowed RINs to continue to be generated during the waiver period and carried forward:
-    2013/14 corn use for ethanol would fall 354 million bushels, or -6.6%.
-    2013/14 corn use for feed would increase 112 million bushels, or 2.3%.
-    2013/14 corn exports would increase 54 million bushels, or 2.9%.
-    2013/14 corn ending stocks would increase 51 million bushels, or 3.3%.
-    These demand shifts would result in 2013/14 corn prices falling from $5.22 to $5.05 per bushel, or -3.2%.

If RINs are not generated during the waiver period:
-    2013/14 corn use for ethanol would increase 88 million bushels, or 1.6%.
-    2013/14 corn use for feed would decrease 42 million bushels, or -0.8%.
-    2013/14 corn use for exports would fall 19 million bushels, or -1.0%.
-    2013/14 corn ending stocks would fall 15 million bushels, or -1.0%.
-    These demand shifts would result in 2013/14 corn prices rising from $5.22 to $5.28 per bushel, or 1.1%.
-    Thus, under this scenario, waiving the RFS in 2012/13 would lead to higher corn prices in 2013/14.




Over 500 Million Dollars in US Agricultural Products Purchased at SE Asia Buyers Conference

During the 9th Southeast Asia U.S. Agricultural Cooperators Conference held last month, 1.245 million metric tons of U.S. agricultural products valued at nearly 560 million dollars was sold and or negotiated. The conference was conducted jointly between the U.S. Grains Council, American Soybean Association-International Marketing, United Soybean Board, and U.S. Wheat Associates. Sales of corn and distiller's dried grains with solubles (DDGS) totaled 390,000 metric tons.

Several major nations in Southeast Asia are achieving rapid economic growth, with Vietnam, Thailand, and Indonesia ranking among the top 10 U.S. export markets for DDGS. U.S. corn exports remain small due to price competition from India and South American producers, but rapid meat, poultry and dairy demand growth make this a potential growth market for the future.

"There will certainly be increased competition to fill demand this year as the United States suffers smaller corn production," said Julius Schaaf, USGC vice president, who presented during the conference. "South American corn, Indian corn, Indian feed wheat and Australian feed wheat are the primary feed ingredients making inroads into Southeast Asia demand.

"However, there is ample interest in price risk management with the market shifting from group think to performance of each individual business unit. This conference lends itself to be an excellent platform for information sharing and gathering insights into what continues to be and will remain a major growth engine on a global basis for raw ingredient demand, shifting consumer consumption habits."

This year's Conference attracted a record attendance of key decision buyers for feed grains and oil seeds, including multinational trading companies, integrated and independent livestock and feed producers, brokers and other businesses in and around Southeast Asia. This growing interest reflects the steady pace of Southeast Asia's increasing consumer demand, which is expected to continue to outperform more developed sectors and economies.



CWT has Biggest Month in September

Cooperatives Working Together (CWT) had its busiest-ever month when measured by the volume of products for which it awarded bonuses in September. While the 78 bids CWT received weren’t as high as in previous months, the volume of cheese exported through the CWT export assistance program reached a record 16.784 million pounds. A total of 11 butter bids accepted added 1.631 million pounds to the total product exports assisted in September, which all together was the equivalent of 190.5 million pounds of milk moved offshore.

For the first nine months of 2012, CWT assisted member cooperatives in selling 95.9 million pounds of cheese and 58.3 million pounds of butter to 34 countries in Asia, the Middle East, North Africa, as well as Central and South America. In total, the product was the equivalent of 2.2 billion pounds of milk. That amounts to 70% of the increase in milk production so far in2012 .

Clearly, CWT’s efforts are a significant factor in the positive movement in commodity prices in recent months.



NMPF Encourages Strong U.S. Focus on Opening Canadian Dairy Market

The National Milk Producers Federation testified at a hearing last month regarding the addition of Canada to the Trans-Pacific Partnership (TPP) negotiations. At the hearing, held by the office of the U.S. Trade Representative (USTR), NMPF said that the exclusion of dairy from the U.S.-Canada portion of the North American Free Trade Agreement was a major missed opportunity and needs be rectified now through the TPP process. In addition to opening access to the Canadian market by elimination of its dairy tariffs, NMPF also stressed the importance of ensuring that non-tariff barriers do not thwart U.S. access, as had been seen in the past.

A similar message was delivered by 50 members of the House of Representatives in a letter sent to USTR last month with the same core messages. That letter underscored how vital it is for USTR to aggressively pursue an opening of the Canadian dairy and poultry markets, now that Canada will be actively participating in its first TPP round in December. The letter was instigated by Reps. Reid Ribble and Bill Owens, who were joined by all six Dairy Farmer Caucus Co-Chairs and many other members of Congress.



U.S.-Panama FTA will Soon Enter Into Force

The recent free trade agreement (FTA) between the U.S. and Panama is projected to take effect sometime this month. Panama's legislature this week approved the last four bills that must pass before the FTA can be implemented. The Panamanian government also needs to sign an executive decree that would adjust the way Panama administers its tariff-rate quotas for agricultural products in order to bring it into compliance with its FTA obligations.

The U.S.-Panama agreement is the last of the three bilateral FTAs approved by Congress last year. Enhancing and expanding foreign market opportunities is a key priority for the American Soybean Association, and ASA has worked extensively to see agreements like the one with Panama put into force.

Upon implementation of the agreement, more than half of current U.S. farm exports to Panama will become duty-free immediately and the most of the remaining tariffs will be eliminated within 15 years. Specifically, Panama will lock in duty-free treatment for U.S. exports of both soybeans and soybean meal immediately. The tariff on soybean oil will be phased out within 15 years. Panama will also immediately eliminate duties on high quality beef, frozen turkeys, sorghum, corn oil, almost all fruit products, wheat, peanuts, whey, cotton and many processed products. The agreement also provides duty-free tariff rate quotas on standard beef cuts, chicken leg quarters, pork, corn, rice, and dairy products.



USDA to Interview Soybean and Wheat Growers for ARMS Survey

United States Department of Agriculture’s (USDA) National Agricultural Statistics Service (NASS) announced today that it is collecting chemical usage data from soybean and wheat growers in 26 states. The information is gathered as part of the Agricultural Resource Management Survey (ARMS), which NASS conducts jointly with the USDA’s Economic Research Service (ERS).

“The use of fertilizers and pesticides for crop production in the United States is one of the most studied topics in agriculture today,” said NASS’s Program Administration Branch Chief Chris Messer. “We conduct this survey to ensure that any and all decisions about agricultural chemical use are based on current, unbiased data that come from growers themselves.”

Unlike most of the agency’s other surveys, NASS will handle this part of the ARMS only through face-to-face interviews. Over the next three months, hundreds of NASS interviewers will visit selected growers to gather information about chemical use on their crops. The interviewers will ask the producers to report the nutrient or fertilizer use, biocontrol or pesticide applications, and pest management and irrigation practices on one randomly selected field to represent data from their farm.

“I hope all growers understand that responding to this survey gives them a chance to impact product availability for their entire industry,” added Messer. “We will publish the results of this survey on May 15, 2013, and many industry stakeholders anticipate these data and will use them as soon as they are available.”

The growers can safely respond to the survey with certainty that their responses will remain fully confidential. NASS guarantees that data are used only for statistical purposes and publishes only aggregate information on state and national levels.



Sorghum Checkoff Accepting Applications for External Committee Positions

The Sorghum Checkoff is now accepting applications from individuals interested in serving as an external committee member on one of the board of director’s three committees: Crop Improvement, High Value Markets and Renewables.

In 2011, the Sorghum Checkoff board of directors amended the organizational bylaws to allow for external committee members to serve on board committees. The Sorghum Checkoff believes in the importance of having outside committee members that will provide important insight in each program area.

The Sorghum Checkoff is focused on making an impact in the industry and is seeking individuals who are willing to serve and help make a difference. External committee applicants should possess a commitment to the sorghum industry and the desire to be instrumental in moving the industry forward.

Responsibilities of external committee members include following all USCP board policies while acting as a resource and providing supportive information, attending scheduled committee meetings and/or calls, and voting on projects and issues brought before the committee.

Applications can be found online at SorghumCheckoff.com and submitted to positions@sorghumcheckoff.com. The deadline for application submission is Oct. 8, 2012. Applications will be reviewed and accepted by the board on or before Dec. 13, 2012.



USGC Releases Third Edition of DDGS Handbook

To update current and potential customers on advances in research and end-users' experience in feeding U.S. distiller's dried grains with solubles (DDGS), the U.S. Grains Council has released a third edition of A Guide to Distiller's Dried Grains with Solubles.

"When you look at the increased breadth of knowledge surrounding U.S. DDGS, plus the new types of DDGS now entering the market, we believe this edition will help buyers and end users stay up-to-date on this high-quality feed ingredient," said Alvaro Cordero, USGC manager of global trade.

"The handbook is designed to provide buyers the tools they need in understanding U.S. DDGS and to aid in developing relationships with sellers," he said. "In the end, we believe it will help buyers be more confident of the value of the U.S. DDGS they purchase."

The third edition is greatly expanded over the previous edition. New chapters and expanded feeding sections provide greater detail in feeding methods. For example, the chapter on feeding DDGS to beef cattle doubled in length and includes details on beef quality and yield, as well as details on feeding DDGS to replacement heifers.

"Early chapters of the handbook explain different production methods for distiller's grains depending on an ethanol plant's operations," Cordero said. "One of those methods includes pulling corn oil out of the ethanol production process. This means there is less oil, or less fat, in the DDGS, which can impact how it is fed." Because removing oil from the process is common in the United States, the handbook includes information on low-oil DDGS in beef cattle, poultry, dairy cattle and swine diets. Chapters also cover including U.S. DDGS in aquaculture, sheep, goat, horse and companion animal diets.

The handbook also provides detail on the nutrient composition and digestibility of DDGS and recommended laboratory analytical procedures. Details on the physical and chemical characteristics of DDGS and answers to commonly asked questions are included. Additional chapters focus on quality indicators and feed safety issues that may be of importance to buyers and end-users. Finally, a section on U.S. DDGS suppliers allows global buyers and end-users to seek additional information and opportunities to buy.

"In this period of higher global grain prices, the use of U.S. DDGS is one way to lower the cost of feed," Cordero said. "It is an excellent, lower cost alternative feed ingredient that continues to be produced in large quantities by the U.S. ethanol industry. When included in properly formulated feeds, it results in excellent animal health, performance and food product quality."

To view the handbook online and download the PDF, visit www.grains.org.