Thursday October 25 Ag News

LB 229 Presented No Conflict of Interest; Helped Conservation Efforts

Critics of Republican Senate candidate Deb Fischer are trying to make a case that she had a conflict of interest when she sponsored and supported LB 229, a bill that utilized funds from the Nebraska Environmental Trust Fund to fund water management projects across the state. Nebraska Farm Bureau President Steve Nelson said the facts about the bill and Sen. Fischer’s involvement have been distorted.

“The bill was essential in directing funds to help address some of the most pressing water issues that face our state today as well as protecting threatened and endangered species,” Nelson said Oct. 24.

The law required the state Department of Natural Resources to submit a grant request to the Nebraska Environmental Trust Fund for $9.9 million over three years to go to the Water Resources Cash Fund. A portion of the grant dollars requested would go to the Platte Basin Water Management Initiative and be leveraged with local dollars for water projects designed to:
·        optimize the timing and use of water,
·        reduce consumptive uses of water and
·        enhance stream flows.

Projects to be funded with the grant dollars include surface water storage projects, groundwater retiming, leasing or purchasing water, conjunctive management of water, conservation easements, and other water use efficiency measures that would optimize water use.

“The bill helped to make sure Nebraska will be able to meet its obligations under the Platte River Recovery and Implementation Program. The program is a basin-wide effort that was undertaken by the Department of the Interior and the states of Nebraska, Colorado and Wyoming to provide more water and habitat for threatened and endangered species,” Nelson emphasized.

“The bill demonstrates Deb Fischer’s willingness to tackle tough issues, her concern for Nebraska’s environment, and how she can successfully champion win-win initiatives which benefit agriculture, the environment and the state as a whole,” Nelson said.

“Nebraska Farm Bureau believes that Deb Fischer is a true friend of agriculture and the environment and we can think of no other person in Nebraska that is better suited and possesses the leadership skills necessary to be the voice for Nebraskans in the U.S. Senate,” Nelson said.



Corn Nitrogen Rate Calculator Helps Farmers Determine Fertilizer Needs, Protects Environment

Iowa State University Extension and Outreach and the Iowa Department of Agriculture and Land Stewardship today highlighted the Corn Nitrogen Rate Calculator available to help farmers find the maximum return to nitrogen fertilizer applications and the most profitable application rate for their farm.

The Corn Nitrogen Rate Calculator can be found at http://extension.agron.iastate.edu/soilfertility/nrate.aspx. This online tool is rapidly updated to allow for changing hybrid genetics, rotations and climatic conditions. The Iowa database in the calculator was updated in 2012 with 2011 response data and now contains 214 trials for corn following soybean and 111 trials for corn following corn.

“Having adequate nitrogen available is critical for corn production, but given the high prices for fertilizer it is important farmers determine the right amount that is needed on their crops,” Iowa Secretary of Agriculture Bill Northey said. “Every farmer wants to make sure plants have the fertilizer they need while not over applying, so this calculator is a great tool.”

The calculator can be used for both corn and soybean rotations and corn-on-corn operations. It allows farmers to compare up to five price ratios – pricing options for nitrogen and corn. Farmers can reach out to their local fertilizer suppliers to find current fertilizer prices

The calculator then lets farmers determine the optimal rate of application based on up to four different corn prices.

“Nitrogen rates determined by the calculator are the total fertilization amounts for each rotation, there is no need to further adjust rate for previous crop,” said John Sawyer, soil fertility and nutrient management specialist with Iowa State University Extension and Outreach.

Sawyer reminds farmers they should also wait until soil temperatures remain below 50 F before applying anhydrous ammonia (NH3) fertilizer this fall. A statewide real-time soil temperature data map is maintained by ISU Extension and Outreach at http://extension.agron.iastate.edu/NPKnowledge/ and can be used by ag retailers and farmers to determine when fall nitrogen applications are appropriate.



Women Marketing Grain Meetings Begin Nov.12 in Ankeny

With volatile grain markets ahead, a series of monthly grain marketing educational meetings for women are being coordinated by Iowa State University Extension and Outreach and Iowa Farm Bureau Federation. The five Women Marketing Grain meetings will be held at the Ankeny DMACC campus.

The first meeting is scheduled for Monday, Nov. 12, from 6 to 9 p.m. at the FFA Enrichment Center, 1055 SW Prairie Trail Parkway, DMACC. The registration fee is $30 per individual for the series and can be paid at that first meeting. Pre-register prior to Nov. 9 by calling the Polk County Extension Office at (515) 957-5760. This will help with the coordination of training material, drinks and snacks.

Market simulation
Women Marketing Grain participants will be take part in the Iowa Commodity Challenge, an online market simulation game. Registration for the Challenge takes place at the first meeting and trading continues until next July. This activity gives participants first-hand knowledge about the use of futures and options contracts as risk management tools.

Participants will have virtual bushels to trade (75,000 bushels of corn and 25,000 bushels of soybeans) and can use cash sales, cash forward contracts, futures or options contracts using March corn and March soybean futures contracts.

Monthly meetings will include various crop marketing discussions led by Steve Johnson, farm management specialist with ISU Extension and Outreach; Ed Kordick, commodity services manager with Iowa Farm Bureau Federation; Ellen Batchhelder, Cargill Grain Merchandising; and Elwynn Taylor, extension climatologist at Iowa State.



USDA’s November World Agricultural Supply and Demand Estimates Report to Incorporate Changes

The November 9 World Agricultural Supply and Demand Estimates (WASDE) report, which will be released at 8:30 a.m. EST, will include changes to the WASDE soybean and products table. On page 15, in the U.S. Soybeans and Products Supply and Use (Domestic Measure) table, Domestic Disappearance will show breakouts for “Biodiesel” and “Food, Feed, other Industrial.”

The projection for Methyl Ester, which represented the use of soybean oil for biodiesel production, was discontinued in the May 2012 WASDE. Biodiesel production data are now published on a monthly basis by the U.S. Energy Information Agency (EIA) in the Monthly Biodiesel Production Report available at http://www.eia.gov/biofuels/biodiesel/production/. Projections and final estimates for biodiesel published in WASDE will reflect the EIA data in that report.



National Dairy FARM Animal Care Program Findings Demonstrate Widespread Adherence to Guidelines

A report issued today about the National Dairy FARM Animal Care Program found that overall, its subscribers are doing a thorough job of adhering to its multi-faceted approach to comprehensive dairy animal well-being.

Voluntary, and open to all producers in the United States, Farmers Assuring Responsible Management (FARM) is a national set of guidelines designed to demonstrate dairy farmers’ commitment to outstanding animal care and a quality milk supply. Cooperatives, proprietary milk processors, and individual dairy producers are using the program to assure consumers that the food they purchase is produced with integrity.

Since enrollment began in September 2010, the FARM Animal Care Program has been implemented on dairy farms accounting for 41 percent of the nation’s milk supply. With continued expansion of enrollment, participation in the FARM program is anticipated to exceed 70 percent of the nation’s milk supply in 2013, the National Milk Producers Federation (NMPF) said today.

Participating producers are provided comprehensive training materials and undergo an on-farm evaluation conducted by a trained veterinarian, extension educator, co-op field staff member, or other FARM-trained professional. Evaluators then provide a status report and, if necessary, recommendations for on-farm improvement.

In June 2012, data collected from the more than 5,000 second-party evaluations made of the dairy operations enrolled in FARM program was reviewed and analyzed to determine the effectiveness of on-farm implementation. A summary of those results was made available today.

“While we’re seeing near nearly universal adoption of the best practices from the FARM animal care manual,” said Jamie Jonker, Vice President of Scientific and Regulatory Affairs at NMPF, “some specific practices have not achieved the same level of adoption as others. This demonstrates the importance of continuous improvement and on-going education as advocated by the program.”

Jonker cited several examples of where adherence is greatest, as well as where improvements are needed:
-    99.2% of farm operators engage in dairy animal observations to identify any potential health issues;
-    99% of farm operators train personnel to handle and restrain calves with a minimum of stress to the animal;
-    95.5% of farm operators train personnel in proper methods to move non-ambulatory animals;

Meanwhile:
-    72.7% of farm operators have emergency plans to address animal care needs stemming from unique circumstances such as a natural disaster;
-    68% of farm operators apply antiseptic to the navels of calves after birth as a preventative health measure.

To protect the integrity and credibility of the program, the FARM program utilizes an independent third-party process to ensure that its practices are being appropriately adopted and the educational materials and methodologies used in training both farm operators and evaluators is sound and effective. Each year, a nationwide sample of dairy farms in the program is randomly selected for visits from third-party “verifiers” to assure (to a 95% confidence interval) that the observations recorded during the second-party evaluations are valid. Validus, an Iowa-based certified auditing company with more than 10 years of experience with farm animal care programs, is used to conduct the third-party verification process.

The initial third-party verification of the FARM program was conducted in 2011, with analysis of that process completed earlier this year. This analysis confirmed that effective implementation of the FARM program is occurring through producer education and on-farm evaluation. The objective third-party verification for 2012 is currently underway.

“This ‘check the checkers’ analysis compares the data collected from the second-party, on-farm evaluations with the third-party, on-farm verification data. This assures that the on-farm evaluations are being consistently conducted across all dairy farm participants,” Jonker added. “The findings of the third-party verification confirm the validity and integrity of the FARM program.”



Potassium Fellowship Program Requests Proposals

Leading fertilizer manufactures have established the Phosphorus and Potassium Graduate Fellowship programs to help fill the need for additional P and K research. This request for proposals is part of the Potassium Fellowship Program. Individual fellowships are for a maximum of $70,000 per year for a maximum of four years. Fellowships cover the tuition, fees and stipend for the institution plus expenses associated with the research project proposed.

The fellowship program is supported by voluntary contributions from K fertilizer manufactures servicing the needs of the North American Corn Belt and Great Plains. Program donors are: Agrium Inc., Intrepid Potash Inc., Mosaic Company, PotashCorp, and Simplot. Fellowships are awarded to individuals in the early stages of their graduate study or about to enter a graduate program in sciences relevant to plant nutrition and management of crop nutrients.

Typical applicants would be seniors in a B.S. program who want to start a Ph.D. program, Master of Science candidates in their final year who want to pursue a Ph.D., or First year Ph.D. students. Eligible institutions must be degree granting and generally located within the Corn Belt or Great Plains of the U.S. or Canada. Exceptional applications from outside these regions will be considered. Applicants are encouraged to submit creative research proposals addressing knowledge gaps or needed synthesis of existing knowledge that are important to the contribution of K in 4R Nutrient Stewardship. Proposals involving more than one institution are encouraged. For more details on this program, please visit http://info.ipni.net/KFELLOW

For any queries or to submit your application, contact: Phyllis Pates, International Plant Nutrition Institute, 2301 Research Park Way, Suite 126, Brookings, SD 57006; email: ppates@ipni.net; phone: 605-692-6280



Gas, Diesel Fuel Prices Still Dropping

The U.S. average retail price of regular gasoline decreased 13 cents last week to $3.69 per gallon, 23 cents per gallon higher than last year at this time. Prices decreased in all regions of the Nation, with the largest decrease in the Midwest, where the average price is down 20 cents to $3.49 per gallon. This is the largest one-week decrease in the Midwest price since November 2008.

The Gulf Coast price fell a dime to $3.45 per gallon and the East Coast price is now $3.70 per gallon, nine cents less than last week. The average price in the Rocky Mountains is now $3.71 per gallon, down three cents from last week, and the West Coast price fell 15 cents to $4.25 per gallon.

The national average diesel fuel price decreased three cents to $4.12 per gallon, 29 cents per gallon higher than last year at this time. The diesel price fell in all regions of the Nation, with both the Midwest and West Coast prices dropping a nickel, to $4.10 per gallon and $4.30 per gallon, respectively. The Rocky Mountain price is $4.24 per gallon, three cents less than last week. The average price decreased two cents on both the East and Gulf Coasts, to $4.11 per gallon and $4.00 per gallon, respectively.



CHS Co-op Looking to Expand

CHS Inc, the largest U.S. farm co-operative, is seeking to expand its grain buying, storing and shipping assets to meet rising demand from Asia and tap increasing grain output in South America and eastern Europe, President and CEO Carl Casale said on Tuesday.

The Inver Grove Heights, Minnesota-based company has expanded its export facilities in the U.S. Pacific Northwest and Gulf Coast, South America and eastern Europe over the past two years, tapping several producing regions to help blunt the impact of weather-related crop shortfalls.

According to Reuters, the company has also opened offices in western Canada, Asia and Latin America amid intense competition between grains traders to feed fast-developing countries seeking food security.

"It's a continued balance of origination, storage and export to meet the continued growing demand that you're going to see in Asia," Casale told Reuters on the sidelines of the Export Exchange industry gathering.

The investments by CHS and other deals are part of a broader wave of consolidation in the global grains trade.

Last week, Archer Daniels Midland bid $2.8 billion for Australian grain handler GrainCorp, which the company was reviewing.

GrainCorp was also believed to be weighing bids from other agribusiness heavyweights including Bunge, Cargill CARG.UL and Louis Dreyfus LOUDR.UL, which along with ADM comprise the dominant group known as the ABCDs of the global grain trade.

CHS has not been mentioned as a bidder in for GrainCorp.



Bunge: Q3 Net Surges

Bunge Ltd.'s third-quarter profit more than doubled on improved soybean processing margins and grain export demand, but the results fell short of analyst expectations as the company's sugar business disappointed.

One of the world's largest grain traders and processors, Bunge also grows and processes sugarcane. The sugar business, which includes bioenergy, posted a loss of $47 million in the quarter, versus a $43 million loss a year earlier.

South American port congestion helped limit sales volumes, the company said. It added that a lower sugar content in the sugarcane crop hurt production volumes and increased costs. Heavy rains in Brazil, where Bunge's sugar business is centered, diluted the sugar content in the crop this year.

Bunge, which has been increasingly planting its own sugarcane crop to feed its plants, said it expects to grow enough sugarcane to begin running the plants at full capacity in 2013, adding that the business should improve through the end of this year.

The company's grain handling and processing business continued to thrive despite a severe drought that plagued U.S. farmers this summer. The company reported earnings in its agribusiness segment jumped to $441 million, from $191 million a year earlier.

Oilseed processing margins in the U.S., Europe and Asia, which were poor a year earlier, have all improved, and Bunge's grain trading operations benefited from strong export demand and large South American supplies.

The company has said it is well positioned to handle the U.S. drought because of the ample supplies in South America, where the company has a large presence. But Chief Executive Alberto Weisser said the drought continues to pose challenges for all grain handlers.

"The current market environment, shaped most notably by the severe U.S. drought, has been and will continue to be volatile and complex for everyone who participates in our industry," Weisser said in a statement.

For the quarter ended Sept. 30, Bunge reported a profit of $297 million, or $1.92 a share, up from $140 million or 89 cents a share, a year earlier. Excluding impairment costs, acquisition-related gains and other impacts, earnings per share were up at $2.08 from 86 cents.

Revenue rose 11% to $17.3 billion.



CME Q3 Profit Down 31%

CME Group Inc.'s third-quarter profit fell 31% as a double-digit decline in trading volume pushed revenue down more than expected.

Like its fellow exchanges, the world's largest futures market operator continues to grapple with a slowdown in trading activity. Investor confidence is still key following the twin collapses of MF Global Holdings Ltd. and Peregrine Financial Group Inc., leaving holes in futures traders' accounts.

In the latest period, average daily trading volume was down 26% from a year earlier to 10.8 million contracts. The company noted that volume was exceptionally strong in the year-earlier quarter, which was host to intense tumult surrounding the U.S. debt ceiling drama.

CME reported earnings of $218 million, or 66 cents a share, compared with $316.1 million, or 95 cents a share, a year earlier.

Stripping out a temporary increase in the company's tax provision, among other items, earnings totaled 70 cents a share in the latest quarter.

Revenue tumbled 22% to $683.2 million.