Tuesday October 30 Ag News

NYSE to Reopen Wednesday

(AP) -- The New York Stock Exchange will reopen for regular trading Wednesday after being shut down for two days because of Hurricane Sandy.  The exchange said in a statement Tuesday that its building and trading floor are fully operational.

Tuesday marks the first time since 1888 that the NYSE remained closed for two consecutive days due to weather. The last time was due to a massive snow storm.

Sections of Manhattan were inundated with water and power was shut off to thousands of people and businesses.

Global markets rebounded Tuesday, though trading was subdued in the wake of the storm.



Nebraska Beef Producers Still Adapting to Drought

This year's drought continues to affect Nebraska cattle producers as they move up management decisions to accommodate feed shortages.

With as much as 97 percent of Nebraska's pastures deemed in poor condition, most producers are already identifying which cattle will be the best candidates for breeding in the spring, according to University of Nebraska-Lincoln Extension beef veterinarian Richard Randle.

"With the feed shortages that we've already had, likelihood is that there's going to be a number of those animals at a lower condition than we'd normally expect," Randle said.

Some herds will need to undergo closer examination during culling, he said, in terms of teeth, eyes, feet and udders, to further adjust to feed shortages. Randle said that farmers are working to keep their herds as compact as possible to help maintain the health of the herd.

"There's going to be more culling than normal," he said. "You have to reduce the herd to feel safe based on your winter feed storage."

Producers are also coping with drought-induced forage shortage through early weaning. Some of these calves may have been sent directly to auction, rather than kept on for backgrounding after weaning. Although most calves that are weaned early do quite well, Randle said the younger animals are at a higher risk. Producers who wean early should watch the calves more closely for any health problems.

"It should be consider if early weaning does take place, that they are at a higher health risk," Randle said. "It relates to having facilities ready to address those health issues."



Failure to pass farm bill ‘beginnings of a drought’ for ag exports

Failure by the U.S. House of Representatives to pass a five-year farm bill before adjourning last month may mark the beginnings of a drought on U.S. agricultural exports, according to a letter from the Nebraska Corn Board that was sent to the Nebraska Congressional delegation and Rep. Frank Lucas, chairman of the House Agriculture Committee.

During a conference call organized by the U.S. Grains Council last week, Nebraska farmer Curt Friesen, who is vice chairman of the Nebraska Corn Board, was notified that a trade mission organized by the Council to promote corn exports was indefinitely postponed. In total, three trade missions, one each focusing on corn, sorghum and barley, have been postponed.

Such missions are typically supported by the U.S. Department of Agriculture’s Foreign Market Development (FMD) funding with additional support from commodity checkoff dollars like from the Nebraska Corn Board. The funds are also used to keep trade offices open in numerous foreign countries.

In part, what is at stake by not passing a farm bill is the type of promotional efforts farmers use to expand trade and defend markets of all ag goods, from corn and soybeans to beef and pork. Agriculture exports are one of the few shinning stars in helping create a positive balance of trade for the United States. According to USDA, agricultural exports during the 2011 calendar year totaled some $136 billion dollars, while corn exports totaled nearly $14 billion.

Because the House failed to vote on a farm bill, the current bill expired Sept. 31. The Nebraska Corn Board and 20 other Nebraska organizations, from general farm and feed organizations to commodity groups to lenders to livestock and poultry organizations, all voiced their desire to see a farm bill passed. 

“Trade missions are critically important for our foreign customers. They want to meet the actual producers of their commodities, they want to know who is growing the crops, how they are grown, who is feeding the cattle, pork and poultry, and how it is processed,” said Friesen. “While we are asleep at the wheel with farm legislation, other countries are doubling down on promoting their ag products.”

For example, Australia is investing billions of dollars promoting its beef, especially in Asia, which is a key market for U.S. beef exports. “We need to be aggressive in Asia promoting our corn fed beef because the market there is expanding and beef exports add tremendous value to cattle here in Nebraska,” said the Nebraska Corn Board’s Kelsey Pope. “At the same time, Brazil and Argentina are ramping up efforts to sell corn and soybeans.”

Because the farm bill did not pass in the House, as it already has in the Senate, FMD program funding ended Oct. 1 and Market Access Program (MAP) funding, another foreign market development tool, will end Dec. 31. “Nebraska products like corn, soybeans, sorghum, wheat, beef, pork and poultry all utilize these funds, so the ripple effect will have profound impacts on rural communities and our state until Congress acts,” Friesen said.

According to the U.S. Meat Export Federation, exports add $212 in value to each beef animal and nearly $56 to the value of each hog. “Exports are vital for those sectors and Nebraska, and all of these animals consume our corn, soybeans and related feed products,” said Pope.

It is not only export programs that are hurt with the failure of getting a farm bill passed.

“Conservation, dairy, energy and specialty crops are all impacted, but just as important this year is the need for drought assistance for livestock producers,” Friesen said. “Hopefully representatives will hear from the countryside and realize just what is at stake and the ripple effects of not taking action will have back on Main Street in their district.”



Green Plains Reports Third Quarter 2012 Financial Results

Green Plains Renewable Energy, Inc. (Nasdaq:GPRE) announced today its financial results for the three months ended September 30, 2012. Net loss attributable to Green Plains for the quarter was ($1.0) million, or ($0.03) per diluted share, compared to net income of $12.4 million, or $0.32 per diluted share, for the same period in 2011. Revenues were $947.4 million for the three months ended September 30, 2012 compared to $957.0 million for the same period in 2011.

"Our platform performed well in the third quarter considering the difficult margin environment in the ethanol industry," stated Todd Becker, President and Chief Executive Officer. "We achieved a record quarter for non-ethanol operating income of $20.8 million which helped offset the weakness in the ethanol segment. We are encouraged to see results in our ethanol segment gradually improving on a sequential basis since the first quarter of this year."

"Our rail car initiative helped deliver strong results in our marketing and distribution segment. Operating income from our agribusiness segment was particularly strong with early plantings and dry conditions allowing producers to harvest corn and soybeans earlier than expected. Because of this, handling margins were stronger than usual as our Tennessee businesses were well positioned to capture end of crop-year market conditions," said Becker.

Revenues for the nine-month period ended September 30, 2012 were $2.6 billion, down slightly from the same period in 2011. Net loss attributable to Green Plains for the nine months ended September 30, 2012 was ($21.2) million, or ($0.70) per diluted share, compared to net income of $25.2 million, or $0.66 per diluted share, for the same period in 2011.

"We believe our disciplined approach to margin management and strength in our non-ethanol segments will continue to benefit our financial results for the remainder of the year. As a result, we expect to return to profitability in the fourth quarter, before considering the gain we expect to realize on the agribusiness transaction," added Becker.

"The sale of a large component of our agribusiness segment does not mean we are exiting the grain storage and handling business. This transaction was a compelling opportunity to unlock value for our shareholders and will place us in the strongest financial position in the Company's history. Looking forward, we plan to aggressively take advantage of growth opportunities around all of our businesses, including agribusiness through grain storage expansion at or near our ethanol plants," added Becker.



Nebraska Farmers Union Endorses Kerry's Run for U.S. Senate

U.S. Senate candidate Bob Kerrey picked up an endorsement from one of the state's largest farm organizations during a campaign event in Columbus, Neb., reports columbustelegram.com.

The Nebraska Farmers Union's political action committee, NEBFARMPAC, officially announced its support for Kerrey during the rally at Valentino's Pizza.

The Nebraska Farmers Union is the state's second largest general farm organization representing more than 5,100 families.

Gale Lush, a Wilcox farmer serving as president of NEBFARMPAC, called Kerrey a bipartisan leader who will fight for Nebraska farmers in Washington, D.C., just as he did during previous terms as the state's governor and U.S. senator.

Lush said the Democratic candidate will be a strong advocate for ethanol and wind energy committed to renewing the federal Wind Energy Production Tax Credit that's set to expire this year. Wind energy, Lush added, could be an "economic superstar" for Nebraska farmers comparable to ethanol production.

Kerrey, who is facing state senator and Valentine rancher Deb Fischer in the Nov. 6 general election, outlined his views on a few agricultural issues during a brief speech delivered to the small group of supporters.

Kerrey said he supports ethanol because it generates wealth for American farmers by raising corn prices, provides good-paying jobs for plant workers and gives the U.S. an additional export.

The marginal increase in food prices attributed to ethanol production is offset by lower gas prices, he said, and a byproduct of ethanol serves as a good source of high-protein livestock feed.

Kerrey called out President Barack Obama and Mitt Romney for not addressing agriculture as an economic issue. Agriculture is not a special interest, Kerrey said, and must be viewed as an area where the U.S. has a competitive advantage.

In Nebraska, he said, agriculture supports the economy by producing food, as well as people, which is why he pushed for a change to the state's Constitution that favored family-owned farms and ranches.

"I'm not anti-corporate, but we want our farms and ranches to be owned by families," Kerrey said.

Nebraska Farmers Union President John Hansen said Nebraskans need Kerrey back in office because he has the right policies, track record and experience to be an asset for the state.

The Newman Grove farmer said interest groups that Fischer supports, such as Club for Growth and the Platte Institute, are blocking federal aid for farmers and ranchers during the worst drought in 50 years and support additional property taxes for agricultural land.

Hansen also criticized Fischer for not defending Nebraska property owners in the fight against TransCanada.

When asked about the proposed oil pipeline, Kerrey said he believes the Nebraska Department of Environmental Quality will properly identify the health and safety risks, but his concern is the long-term effect on the environment.

Kerrey said the biggest threat to Nebraskans is the added carbon emissions from the tar sands oil, which could expedite global warming and decrease the amount of annual rainfall across the state.

"We're basically playing Russian roulette with the only planet we've got," he said.

However, Kerrey said the Keystone XL pipeline provides a "huge opportunity" to look at global warming and begin taking a closer look at options in sustainable and renewable energy sources.

Kerrey said he plans to lead a conversation in Nebraska about climate change if elected to the Senate.



Iowa Continues to Lead National Grain, Hog Production Efforts

While the results of the drought-stricken crop of 2012 is yet to be tallied, the recently-released Iowa Agricultural Statistics booklet shows that Iowa farmers continued to lead the nation in corn production in 2011, accounting for 19 percent of the U.S. crop. And despite more acres being planted to corn, Iowa's soybean harvest was also the largest in the nation.

The statistics are compiled by the Iowa office of the National Agricultural Statistics Service's (NASS) and based on surveys and questionnaires completed by Iowa farmers. The 123-page book is published by the Iowa Farm Bureau Federation (IFBF).

"Iowa's farmers continue to lead the nation in the production of corn, soybeans, pork and eggs despite a variety of production challenges brought on by extreme weather and market challenges including very volatile pricing of both inputs and what they produce," said Dave Miller, IFBF director of research and commodity services. "The 2011 Iowa Ag Statistics highlights some of the variability in production county to county that existed in Iowa in 2011. Northwestern Iowa had near record crops while some of the south-central and southeastern counties experienced less robust yields."

The book includes information regarding crops, livestock, farm economics and county-specific data.

"The book details Iowa's vibrant and dynamic agricultural industry," said Iowa NASS director Greg Thessen. He highlighted Iowa's top-of-the-nation status in the following areas: corn production, soybean production, hog and pigs inventory and value, egg production, capacity of on-farm grain storage, feed grain export value and meat export value.

"This book helps share the positive story of the productivity, efficiency and tenacity of the Iowa farmer," said Craig Hill, IFBF president. "In many cases, our farmers are raising the grain that will feed their livestock.

And they are so efficient that they're also raising feed for export. Our farmers are doing an excellent job of balancing their farming operations, meeting the needs of many different customers and always working to protect the land from which it all comes. It's a truly sustainable cycle."

The strong grain production efforts support the state's livestock industry, which continues to be strong in the wake of rising feed prices. Iowa's cattle and hog producers earned $10 billion in cash receipts, an increase of 22 percent over 2010's results. Cattle accounted for $3.4 billion of cash receipts and hogs totaled $6.7 billion.

While the number of farms in the state in 1950 was more than 200,000, that number in 2011 was 92,300. The land in farms in the state has also remained fairly stable, with 30.7 million acres being farmed.

The book costs $11 and can be ordered from the Marketing and Communications Division, Iowa Farm Bureau, 5400 University Avenue, West Des Moines, Iowa 50266. In addition, a CD-version of the document is available for purchase for $10. Checks should be made to the Iowa Farm Bureau.



Iowa Beef Industry Council Host BQA Meeting

Iowa State University Department of Animal Science and the Beef Checkoff Program helped sponsor a Beef Quality Assurance (BQA) program at the Iowa Beef Industry Headquarters in Ames. More than 100 students attended and became BQA certified during the two-day program.

The Beef Quality Assurance (BQA) training was conducted by Doug Bear, Director of Industry Relations for the Iowa Beef Industry Council for Dr. Brad Skaar's beef production class. The training included discussion on industry information, proper routes of administration for vaccines as well as the importance of reading the product label and following proper withdrawal times. The training instructed participants on best management practices within the beef and dairy industry that ensure a safe, nutritious, and high quality product for consumers.

"An integral part of a successful Beef Quality Assurance program in Iowa is working directly with our future industry leaders. During this two-day event we discussed current and upcoming industry information, proper management and low-stress handling of cattle, vaccination protocols, and importance of having positive conversations with our consumers," stated ISU Associate Professor Dr. Brad Skaar. "This is a great opportunity to empower to the next generation of leaders with Beef Quality Assurance and industry information."

Maintaining consumer demand for beef requires a daily commitment to the production practices within every segment of the industry that influences the safety, wholesomeness, and quality of beef and beef products with the use of science, research, and education initiatives. For additional information on BQA events, please contact the Iowa Beef Industry Council at 515-296-2305 or doug@iabeef.org.



Iowa DNR Investigates Fish Kill in Sioux Co.

The Iowa DNR is investigating a fish kill in the West Branch of the Floyd River, about two and one-half miles south of Sioux Center. A resident reported the stream was very murky and the fish looked stressed when he saw them this weekend.

DNR staff found elevated ammonia levels and several dead fish north of the U.S. Highway 75 bridge crossing. The DNR specialists are working their way upstream to see if they can find the source of the fish kill.

High ammonia content generally indicates the source is a nutrient, often fertilizer, manure or wastewater.



USB Releases Interactive Map Showing Lock Failures

Many of the locks in the U.S. inland waterway system are past their usable lifespan and, even worse, for years have not been maintained as they should have been. According to the United Soybean Board, a lock failure would hurt U.S. farmers who use the waterways to ship their products and also U.S. consumers who eventually buy those products. In addition, farmers and consumers would see prices for fuel and coal increase.

As a result, a new, interactive map was recently developed by the soy checkoff to make information about this critical issue more accessible as well as more specific to local areas.

The information for the project was compiled recently in soy-checkoff-funded research that shows the importance of the U.S. inland waterway system to U.S. soybean farmers.

According to the checkoff's most recent study, U.S. waterways make a staggering impact on U.S. farmers' bottom lines as well as on the price U.S. consumers pay for food.

The new, interactive map shows the effect a failure at each of five locks on the Ohio, Mississippi and Illinois rivers would have on U.S. soybean and corn prices.

The map can be found at: unitedsoybean.org/americas-locks-dams-a-ticking-time-bomb-for-agriculture.  



Fertilizer Prices Remain Steady

Retail fertilizer prices continued to hold fairly steady the fourth week of October, according to price information collected by DTN from fertilizer retailers.  The only fertilizer price that was higher by any significance was anhydrous. The nitrogen fertilizer was 5% higher compared to the fourth week of September and had an average price of $855 per ton.  Two other fertilizers were slightly higher compared to a month earlier. DAP had an average price of $642/ton while MAP was at $677/ton.

The remaining five fertilizers were just slightly lower. Potash had an average price of $617/ton, urea $595/ton, 10-34-0 $618/ton, UAN28 $380/ton and UAN32 $421/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.65/lb.N, anhydrous $0.52/lb.N, UAN28 $0.68/lb.N and UAN32 $0.66/lb.N.

Only one of the eight major fertilizers is still showing a price increase compared to one year earlier. Anhydrous is now 4% higher compared to last year.  Five fertilizers are actually lower in price compared to October 2011. Urea is now 4% lower, UAN28 6% lower, potash 7% lower, UAN32 8% lower and MAP is 9% lower.  Two remaining fertilizers are now down double digits from a year ago. DAP is now down 10% while 10-34-0 is now 25% less expensive from a year earlier.



2013 Antibiotic Residue Prevention Manual Now Available to Dairy Producers

The National Milk Producers Federation (NMPF) has released a revised version of its Milk and Dairy Beef Drug Residue Prevention Manual for 2013. As an area of focus for the National Dairy FARM ProgramTM, the manual can be found online.

The Milk and Dairy Beef Drug Residue Prevention Manual is a concise review of appropriate antibiotic use in dairy animals. The manual is a quick resource to review those antibiotics approved for dairy animals and can also be used as an educational tool for farm managers as they develop their on-farm best management practices necessary to avoid milk and meat residues.

Additions to the 2013 version include a section on avoiding potential residue violations from extra-label drug use in an unapproved class of cattle, cephalosporin extra-label use prohibitions, as well as an updated drug and test kit list.  The 2013 manual includes a certificate of participation that can be signed by a producer and his/her veterinarian to demonstrate their commitment to the proper use of antibiotics.

“We know that there is increased attention to the use of medicines in livestock, and in order to maintain the ability to use those products, we have to demonstrate that we are using them properly,” said Jerry Kozak, President and CEO of NMPF. “This newly-revised manual represents the ongoing commitment dairy farmers have to using antibiotics responsibly and prudently.”

The dairy industry is committed to producing safe, abundant, and affordable milk and dairy beef of the highest quality. Healthy animals help make for safe food and disease prevention is the key to keeping cows healthy, Kozak said.

The National Dairy FARM Program was created by NMPF to demonstrate and verify that U.S. milk producers are committed to providing the highest levels of quality assurance including animal care, residue prevention, and other on-farm practices.

The Residue Avoidance manual was sponsored by Charm Sciences, IDEXX, and Pfizer Animal Health. No check-off funds were used in the development and distribution of this manual.

For more information on the National Dairy FARM Program, contact Betsy Flores at (703) 243-6111 or log on to www.nationaldairyfarm.com.



New enzyme allows the biofuel industry to produce more fuel from less corn while improving profits.

Novozymes, the world leader in industrial enzymes, today announced the launch of a new game-changing enzyme product, Novozymes Avantec®, which improves the efficiency and profitability of biofuel production. Avantec enables producers of corn ethanol to squeeze an extra 2.5% ethanol out of the corn, thereby improving their profit margins significantly.

“Corn is the single biggest input cost for an ethanol producer, and as prices have gone up, profits have disappeared,” says Novozymes Executive Vice President Peder Holk Nielsen. “Avantec is a vitamin shot for the industry. It allows you to save a lot of corn and still produce the same amount of ethanol. If you’re an ethanol producer in today’s market, that’s a real boost to your bottom-line.”

For a typical U.S. ethanol plant the savings are substantial. A plant uses around 900,000 tons of feed-grade corn per year to produce 100 million gallons of fuel ethanol, 300,000 tons of animal feed (DDGS) and 8,500 tons of corn oil. With Avantec, such a plant can save 22,500 tons of corn while maintaining the same ethanol output.

The US could save 3 million tons of corn
Corn is the key raw material in biofuel production in the U.S. and by far the biggest cost component for an ethanol plant. After the corn is harvested, the kernels are ground into corn meal, and water is added to make a mash. Enzymes convert the starch in the mash to sugar, which can then be fermented to ethanol. Avantec does this more efficiently than any other enzyme product on the market.

“Most U.S. ethanol plants convert 90-95% of the available starch, so there is significant potential for plant owners to increase output and maximize profits,” says Peder Holk Nielsen. “In fact, if all ethanol plants in the U.S. started using Avantec, they would save 3 million tons of corn.”

Avantec is the latest addition to Novozymes’ range of yield-enhancing enzyme products for the biofuel industry. Over the past five years, continuous improvements in enzyme technology from Novozymes have helped the industry increase starch conversion by 5%. 

The U.S. is the biggest biofuel producer in the world, with corn ethanol production expected to reach 13.3 billion gallons in 2012.



China's October Soy Imports 4.22 MT

China's soybean imports in October likely totaled 4.22 million metric tons, down from September's 4.97 million tons, according to the Ministry of Commerce.  The ministry revised its estimate upward from 3.66 million tons based on reports from importers during the Oct. 1-15 period, according to a statement dated Monday on its website.

The state-backed China National Grain and Oils Information Center said earlier that China's soybean imports might fall to 4.25 million tons in October.  Total soybean imports in 2012 are expected to reach record 57.5 million tons, an increase of 9.3% from last year's 52.63 million tons, the CNGOIC said earlier.  The sharp increase in domestic soybean crushing capacity, in addition to fast rising demand for soymeal boosted China's soybean imports, the CNGOIC said.



Soil Test Results May Not Reveal Accurate Field Nutrient Availability

Growers conducting soil tests this fall may be surprised at unexpectedly low potassium (K) levels. It’s likely, however, that fields tested in drought-stricken areas have plenty of nutrients waiting to move back into the soil, according to DuPont Pioneer agronomy experts.

“The K is actually quite safe in the plant residues, so growers shouldn’t be alarmed if soil test levels of this nutrient are lower than expected. Just be aware that more nutrients will be released into the soil with precipitation,” says Andy Heggenstaller, DuPont Pioneer agronomy research manager.

With little rain on most fields in 2012, K, absorbed by corn plants during the growing season, has not yet been released back into the soil from deteriorating corn stalks. In a drought year, K also can become fixed between clay layers until water moves through the soil again. Expect that K test levels will increase to more normal values if you can wait to sample following a significant fall rain event.

“Some growers may think it’s a better idea to wait and sample soil in the spring because it will give them a more reliable nutrient reading,” says Heggenstaller. “But I would caution against spring sampling unless this is your normal practices, because you would end up comparing apples and oranges and couldn’t rely on previous soil tests as a basis.”

Even though K levels from this year’s soil test will likely be lower than actual amounts, farmers can rely on crop removal rates and previous years’ soil test results as a guide to estimate next year’s K needs. To determine crop removal this year, multiply the field’s harvested bushels by an estimated 0.3 pounds of K removed per bushel of corn or 1.5 pounds of K removed per bushel of soybean. The calculated amount is a good estimate of how much K was consumed by the crop during the growing season and thus the minimum amount that should be replaced for the next crop if historical soil test levels were in the optimum range.    

“Depending on management style, this method of calculating K needs might not be the best long-term approach for managing K fertility, but in drought years it is often the best option for growers because of the variability in soil sampling,” says Heggenstaller. “I still recommend that producers test soils this year because it will prove useful when determining future fertilizer needs.”

Other key nutrients, including phosphorous (P), should not show as much variability in soil tests as a result of drought. Phosphorus does not get fixed in clay soils to the extent that K does and is not nearly as abundant in crop residues as K. In the case of nitrogen (N), most producers applied enough to achieve a high-yielding crop in 2012, but ended up receiving little precipitation and lower than anticipated yields. In these fields, it is very likely that extra N is present in the soil. Depending on rainfall between now and next spring, some of this N may be available for next year’s crop. 

Lack of water also may cause a drop in soil pH from previous years. Without precipitation, lime applied to help balance pH in spring 2012 cannot infiltrate the soil and take full effect. Additionally, dry soil conditions are often associated with increased salt concentration at the soil surface, which can also result in lower than expected pH test values.

Consult your local DuPont Pioneer agronomist or Pioneer sales representative to get the latest information on what is best for you and your fields in 2013. Find more information about soil testing and other topics at www.pioneer.com.