Friday November 2 Ag News

Pumpkins Are Not Just For Carving

“When times are tough, Nebraska ranchers need to get creative”, says Michael Kelsey, Executive Vice President of Nebraska Cattlemen. Due to a shortage of forages and feedstuffs, Nebraska Cattlemen is encouraging cattle ranchers to be innovative this year in finding feed alternatives. “There are several unique crops that are grown in Nebraska primarily for human consumption, but with this year’s past weather condition, they can be a viable feed source for livestock,” says Karla H. Jenkins, University of Nebraska Extension Cow/Calf, Range Management Specialist.

One feed source that will be readily available, especially after October 31st, is pumpkins. Pumpkins are usually known for their use as Halloween décor, but their use as a cattle feed source is not uncommon.  Data from the University of Nebraska-Lincoln Extension shows that pumpkins are a good source of energy and adequate in protein for beef cattle. “Pumpkins are high in crude protein and DM digestibility, and also have high moisture content which makes them a great feed supplement when mixed with dry forages” says Jenkins. 

Nebraska is home to many pumpkin growers across the state. These producers may have crops that could be purchased as feed supplement instead of being discarded. “This can definitely be a win-win for both the cattle and pumpkin producers, by adding value to a potential waste” says Kelsey. This is also a great opportunity for different areas of Nebraska agriculture to work together.

Other crops that can be incorporated in to cattle feed rations include field peas, dry edible beans, chicory, whole beets, and beet pulp. “Nebraska is very diverse in its agricultural crops, so this gives cattle ranchers the opportunity to think outside the box when it comes to securing feed sources for the upcoming winter months” says Jenkins.

For more information on the feed value of alternative crops, visit http://extension.unl.edu/publications.



DEADLINE FOR PASTURE, RANGE, FORAGE INSURANCE PROGRAM APPROACHING

The Nebraska Department of Agriculture (NDA) is reminding producers the deadline for participating in the federal Pasture Rangeland Forage (PRF) Insurance program for 2013 is November 15.

This program is a risk management product of the federal United States Department of Agriculture’s Risk Management Agency (RMA).

“With uncertainty about drought conditions next season, we want producers to be aware of the various risk management tools that are available,” Nebraska Agriculture Director Greg Ibach said.  “While Pasture Rangeland Forage Insurance may not be a good fit for all operations, it is important that farmers and ranchers educate themselves about it, so they can make informed decisions.

“Pasture Rangeland Forage Insurance is a relatively new program that wasn’t available during our last widespread drought,” Ibach said.

The University of Nebraska-Lincoln Extension has published educational information on the program, including the creation of a short webinar.  It can be accessed through the UNL Beef website at http://beef.unl.edu/web/cattleproduction/prfinsurance.

Also producers can visit the USDA RMA Pasture, to this Rangeland, Forage page at http://www.rma.usda.gov/policies/pasturerangeforage/.  This page includes a link to a decision support tool.



Documentary “Harvesting the High Plains” Debuts Next Week

A documentary that brings to life the story of a farm that overcame the Dust Bowl to harvest one of the largest wheat crops ever raised is premiering next week in Kansas, Nebraska and Virginia and will be available on DVD by the end of the month. “Harvesting the High Plains,” uses historic films and recreations, and is narrated by Mike Rowe, creator and host of the Discovery Channel’s “Dirty Jobs." The piece is directed by Jay Kriss and produced by Sydney Duvall of Inspirit Creative, based in Williamsburg, Va. NAWG and the National Wheat Foundation have supported the film’s production and encourage wheat growers and wheat stakeholders to learn more about it at www.harvestingthehighplains.com.



'Afghan Ag - The Nebraska Connection' Webinar Tuesday

As part of the Nebraska SARE Sustainable Ag webinar series that has been conducted the past two years, Vaughn Hammond, Extension educator at the Kimmel Education and Research Center in Nebraska City will present the webinar, "Afghanistan's Agriculture--The Nebraska Connection" on TNov. 6 from 10 to 11:30 a.m. Central Time. Vaughn spent nine months in Afghanistan in 2011 and 2012 as an Extension educator working with the Nebraska National Guard Ag Team. During this time in Afghanistan, Vaughn worked to teach agriculture to agriculturalists and farmers there. During his webinar he will tell of his experiences in Afghanistan working on this project and also have some time at the end of his presentation to answer questions.

Vaughn should be commended for his service as an Extension Educator in going beyond the call of duty in working in Afghanistan. This will be an excellent opportunity to see and learn about Afghanistan agriculture and how University of Nebraska-Lincoln Extension and the Nebraska National Guard worked together towards improving agriculture there. The URL for this webinar is: https://connect.extension.iastate.edu/nebraska. 

If you have questions about this webinar, feel free to contact Gary Lesoing, Nebraska State SARE coordinator, at 402-274-4755 at the University of Nebraska-Lincoln Extension office in Nemaha County.



CF Industries Announces $1.7B Project, Largest in Iowa History

The Iowa Economic Development Authority (IEDA) Board held a special, telephonic meeting to take action to award direct financial assistance and tax credits to CF Industries, Inc., Deerfield, Ill., for an expansion of its existing fertilizer manufacturing operation in Woodbury County.

The Port Neal project will add new state-of-the-art ammonia and granular urea production units to meet customer demand. he project will supplement existing production of ammonia and urea ammonia nitrate (UAN).

The project will have a total capital investment of $1.7 billion and will create 100 new jobs with a qualifying wage of $20.12.

"This is another great announcement for Iowa, and we are proud that CF Industries has chosen us for its $1.7 billion expansion," said Governor Terry E. Branstad. "Our state is clearly well-positioned to take advantage of the growing domestic fertilizer industry. Not only does that mean significant investment that will continue to grow our economy, but also the creation of high-paying jobs for Iowans."

Thursday, the IEDA Board awarded the project $1.5 million in direct assistance and tax credits in the total amount of $22 million. The tax credit award is made up of $13 million in sales tax refunds paid during construction and $9 million in investment tax credits (ITC). The board will also consider future amendments to the award to allocate an additional $12 million in ITC in each of the next four fiscal years (FY13-FY16) for a potential total ITC award of $57 million.

"It is so rewarding to watch existing companies continue to make investments in Iowa. With today's announcement that a company with current operations in Iowa will make a capital investment of nearly $2 billion, it is obvious that we are on the right track to reaching our goals of creating jobs and increasing wealth for Iowans," said Lt. Governor Kim Reynolds. "Just since January 2011, the IEDA has projects under contract that will result in $5.23 billion of capital investment in our state."

CF Industries is a global leader in fertilizer manufacturing and distribution, the second largest nitrogen fertilizer producer in the world and the third largest phosphate fertilizer producer among public companies. CF Industries owns and operates world-scale nitrogen and phosphate plants and serves agricultural and industrial customers through its best-in-class distribution system.

"CF Industries is proud of its long history of serving Iowa farmers and we are pleased to increase our manufacturing presence in Iowa in a major way," commented Stephen R. Wilson, chairman and chief executive officer, CF Industries Holdings, Inc.

In 2010, CF Industries acquired Terra Industries Inc., positioning the company as a nitrogen bellwether in the global fertilizer industry and the premier nitrogen and phosphate fertilizer manufacturer in North America. In addition to its Port Neal facility, the company operates terminals at Spencer and Garner.



Financial management insight available to Iowa Soybean Association members

Iowa soybean growers will receive a helping hand with financial, estate and farm succession planning courtesy of a new service provided by the Iowa Soybean Association in partnership with Pivot Wealth Strategies of West Des Moines.

Beginning in November, the nearly 11,000 members of the ISA can subscribe at no cost to a bi-monthly “Farm Wealth Update” e-newsletter. The resource will provide timely expertise from a variety of financial experts on issues directly impacting farm profitability.

“As tax and regulatory schemes become more complex, it’s increasingly important that farmers have access to the latest information and a variety of opinions,” says ISA President Mark Jackson of Rose Hill. “Pivot Wealth Strategies serves many agricultural clients and its perspective will assist members in determining what options are best for their farms and families.”

Chris Uglum, president of Pivot Wealth Strategies, says his team is privileged to provide financial guidance to farmers during a time of tremendous uncertainty and market volatility. As asset values continue to appreciate, he says, looming changes in tax policy require special attention. Estate planning also takes on added importance given that the average age of the Iowa farmer is nearing 60.  

“We admire what farmers do and are dedicated to helping them manage their farms with savvy, thoughtfulness and perseverance,” says Uglum. “We look forward to providing members of the Iowa Soybean Association unique perspectives that can help them maximize their assets while identifying the potential risks that could be catastrophic to the future of their farm and livelihood.”

Iowa Soybean Association members can receive “Farm Wealth Update” at no charge by e-mailing Nancy Cunningham at ncunningham@iasoybeans.com.



Sioux-Preme Packing Alleged Source of Amonia

The DNR has traced a fish kill in the West Branch of the Floyd River south of Sioux Center to a local business.

Pending lab results, it appears the likely source of the discharge causing the fish kill is Sioux-Preme Packing Company. The company is located just south of Sioux Center at 4241 U.S. 75 Avenue. The DNR continues to investigate the reason for the discharge.

DNR staff found elevated ammonia levels and thousands of dead fish, including game fish, for at least nine miles downstream of the plant. Fisheries staff conducted a second count of dead fish after fish continued to die on Tuesday and Wednesday, and are back on the site Thursday.

Sioux-Preme Packing Company has hired a contractor to pump and land apply water pooled in a tributary to the stream where ammonia has concentrated. The DNR will continue to monitor cleanup.

The agency will pursue appropriate enforcement action and fish restitution.

The fish kill was reported to the DNR on Monday after a resident noticed stressed fish in the stream over the Oct. 27 weekend.

It's important to call the DNR's 24-hour spill line at 515-281-8694 as soon as possible after seeing a fish kill. The greater the delay between the event and the reporting, the less likely it is that the source of the pollution can be traced.



$60.7 Million in Organic Sales in Iowa in 2011

Iowa Secretary of Agriculture Bill Northey highlighted a report from the USDA National Agriculture Statistics Service (NASS) that Iowa's 467organic farms had $60.7 million in sales in 2011, which represented two percent of the U.S. total. Iowa ranks fifth in the nation in the number of certified organic farms which cover 81,634 total acres.

"This report is the first of its kind to focus solely on organic production and shows the significance of the organic industry in Iowa," Northey said. "We have seen some increased interest in organic production here in Iowa and this report does a good job of helping us better understand the industry."

"Although NASS published the report, it would not have been possible without the voluntary cooperation of organic farmers across the State", said Greg Thessen, Director of the NASS Iowa Field Office. " The information not only showcases organic farmer's contributions to Iowa agriculture, but the survey results will also help shape decisions regarding farm policy, crop insurance, funding allocations, availability of goods and services, as well as other key issues."

Sales of organic crops in Iowa accounted for $29.6 million, livestock and poultry sales accounted for $6.3 million, and livestock and poultry products accounted for $24.8 million. Sales of organic vegetables were $1.09 million, organic fruit sales were $23,849, and sales of organic berries were $30,777.

Iowa lead the nation in organic soybean production and 423,350 bushels and was second in production of organic corn for grain with 2.2 million bushels. Iowa was also first in organic oat production with 426,857 bushels produced.

Iowa led the nation in organic hogs and pigs, with a peak inventory of 5,955 head and total sales of $2.68 million in 2011. Iowa also ranked first in organic goat inventory and organic milk from goats.

The full results of the 2011 Certified Organic Production Survey can be found at http://bit.ly/2011OrganicSurvey.

The Iowa Department of Agriculture and Land Stewardship is one of more than a dozen state departments of agriculture and 51 private organizations that are accredited as organic certifiers. The Department is accredited by the USDA's National Organic Program (NOP) to certify all aspects of the organic food chain including: organic crops, organic food products, organic feed, organic livestock and handling/processing of organic products.

The Department currently certifies over 250 producers and 60 handling/processing operations located in Iowa and neighboring states.



ABC News Asks Federal Court to Dismiss BPI Lawsuit

ABC News has asked a South Dakota federal court to dismiss claims it defamed Beef Products Inc. through reports about lean finely textured beef - labeling it pink slime. BPI initiated the lawsuit in September - and ABC News says the company is seeking to inhibit to free speech - challenging the right of a news organization to explore matters of obvious public interest. BPI - the nation's largest producer of LFTB - is seeking 400-million dollars in compensatory damages for lost profit it says was caused by ABC's reports. The news organization defends its use of the term pink slime - saying it's the sort of loose, figurative or hyperbolic language courts recognize demands protection under the First Amendment. BPI Lawyer Erik Connolly says the plaintiffs will oppose the dismissal motion because they believe the complaint sets forth valid claims.



Informa Raises its Grain Forecast
Informa Sees 2012 U.S. Corn Crop at 10.738B Bu; Soy Crop at 2.925B Bu

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 next Friday to forecast a national corn yield of 122.4 bushels an acre and total production of 10.738 billion bushels, according to traders.

Informa's corn-yield estimate was lower than forecasts issued by some other private firms this week. On Thursday, brokerage INTL FCStone predicted an average corn yield of 124 bushels an acre.

Informa said it expects the USDA to forecast national soybean production of 2.925 billion bushels with a yield of 38.6 bushels an acre, traders said.

The production and yield estimates were down from October estimates of corn production at 11.194 billion, using a yield of 127 bushels an acre. The projection for soy output is up from last month's 2.860 billion, using a yield of 37.8.

Traders are waiting for the U.S. Department of Agriculture to update its output forecasts Nov. 9 to see whether the government will confirm higher yield and production prospects.

In October, the USDA put the U.S. corn crop at 10.705 billion bushels using a 122-bushel-an-acre yield and soybean output at 2.860 billion using a 37.8 bushel-an-acre yield.

Continued anecdotal reports that soybean yields aren't as poor as initially feared following a historic drought and views that crops in some regions benefited from rains that picked up in August are leading to higher crop forecasts.

INTL FCStone Thursday raised its yield forecast for the soybean crop to 39.1 bushels an acre, from its forecast last month of 38.2 bushels an acre.



FCStone: 10.881 BB 2012 US Corn Crop; Yield Pegged At 124 Bushels Per Acre

U.S. farmers will harvest 10.881 billion bushels of corn and 2.959 billion bushels of soybeans in 2012, according to projections made by commodity brokerage firm INTL FCStone.

INTL FCStone released its November U.S. production estimates late Thursday, raising its outlook for U.S. corn and soy production. The projections were made using an average corn yield of 124 bushels per acre and an average soybean yield of 39.1 bushels an acre.

The production and yield estimates were up from October estimates of corn production at 10.824 billion bushels, using a yield of 123.9 bushels an acre, and soy output at 2.849 billion bushels, using a yield of 38.2 bushels an acre.

Traders are waiting for the U.S. Department of Agriculture to update its output forecasts Nov. 9 to see whether the government will confirm higher yield and production prospects.

The U.S. soybean and corn crops were hit hard by this past summer's severe drought, but the USDA last month raised its estimate of soybean production from its month-earlier forecast, citing the positive impact of rainfall that arrived late in the growing season.

In October, USDA put the U.S. corn crop at 10.705 billion bushels using a yield of 122 bushels an acre and soybean output at 2.860 billion bushels using a yield of 37.8 bushels an acre.

The USDA is scheduled to release updated figures Nov. 9 at 8:30 a.m. EST (1330 GMT).

Last year, corn output measured 12.358 billion bushels and soybean production came in at 3.094 billion bushels.



Thick-cut Pork, Branded Pork Highlighted in Japan

Japan already is the top value market for U.S. pork, but the U.S. Meat Export Federation (USMEF) is targeting growth opportunities for branded and thick-cut products in two new initiatives designed to increase sales of American pork.

Thick-cut pork chops and roasts are a staple of the American dinner table, but thinly sliced meats are more the standard for chefs and homemakers in Japan. To introduce consumers to new pork cooking techniques that work for larger cuts, USMEF-Japan hired popular cooking instructor Rika Yukimasa to develop U.S. pork recipes – including some for microwave cooking – that will be introduced during a two-month promotion that runs through the end of 2012.

“While pork is a popular choice for Japanese meals, thick-cut pork is not familiar to Japanese consumers or retailers,” said Takemichi Yamashoji, senior marketing director for USMEF-Japan.

USMEF introduced thick-cut U.S. pork at the spring FoodEx food show in Tokyo, and followed that with a promotion with Japanese retail giant Aeon at 2,000 stores across the country. Influenced by Aeon’s success, other nationwide and leading regional supermarkets have begun promoting U.S. thick-cut pork as well.

For the current promotion, Yukimasa demonstrated “easy cooking roast pork” recipes for a group of 160 food bloggers and homemakers to help develop word-of-mouth awareness. The recipes will be featured in the Nov. 7 issue of ESSE magazine (500,000 circulation) in addition to retail point-of-purchase recipes and labeling.

To support consumer awareness at the retail level, USMEF trained demonstrators to cook thicker cuts of U.S. pork in the oven and in the microwave and explain how to interested shoppers. Funding for the thick-cut pork initiatives is provided through the USDA Market Access Program (MAP) and the Pork Checkoff.

“Promoting thick cuts has advantages for both retailers and consumers,” said Yamashoji. “Retailers are able to increase sales and quantity, and consumers are able to purchase pork more affordably, particularly compared to domestic pork.”

Branded Pork
Competition in Japan’s branded pork market is intense with more than 400 domestic brands competing for consumer attention, but U.S. pork is gaining a foothold in this high-end niche. Earlier this year, USMEF conducted an American Branded Pork Campaign to encourage consumers to purchase branded U.S. pork in supermarkets and restaurants.

To help the Japanese media understand both the explosion of branded pork products as well as the growth of U.S. branded pork, USMEF brought together representatives from eight national Japanese newspaper outlets for a seminar that included presentations by leading Japanese meat processor Hannan Foods Group as well as the ANA Intercontinental Hotel Tokyo, a regular user of branded U.S. pork. The session was conducted with funding from MAP.

“So far this year, we have focused on promoting U.S. branded pork to traders and distributors, but now we are adding activities to increase awareness of the quality and value of these products to consumers – and to the media outlets that communicate to them,” said Yamashoji.

USMEF-Japan opened the media session by releasing the results of a consumer survey that showed that more than 80 percent of Japanese consumers eat pork more than once each week, and that about 90 percent are familiar with branded pork products in Japan. The survey also showed that only about 30 percent of consumers purchase branded pork regularly, with a third of that group only buying the product for special occasions due to the higher price it commands.

The second presentation was offered by Kyoko Miura of Hannan, who told the story of Mugisodachi Yongen Pork, a wheat and barley-fed pork developed in cooperation with Iowa State University and Independent Meat Company of Idaho.

“Mugisodachi Yongen Pork is a well-marbled product with high-quality fat, which Japanese consumers look for in their pork,” said Yamashoji. “It is very tasty and reasonably priced.”

The executive chef of the ANA Intercontinental Hotel, Hideki Ohba, enthusiastically recommended U.S. branded pork products, citing the good flavor and texture, reasonable price, strict quality control systems in the U.S. and the stable supply of high-quality products.

“Because of the quality and tastiness of our pork, many of our guests think that our hotel restaurant uses domestic pork,” said Ohba. “They are surprised once they know it is U.S. pork,” adding that his customers have developed a high regard for U.S. pork. The newspapers at the session (Yomiuri, Asahi, Sankei, Mainichi, Nikkei, Weekly Diamond, Shokuniku Tsushin and Chikusan Nippo) represent a collective circulation of nearly 30 million.

In the first eight months of 2012, Japan purchased 307,442 metric tons (677.8 million pounds) of U.S. pork valued at more than $1.3 billion, an increase of 6 percent in value on 6 percent lower volumes compared to 2011.



Ag Groups Meet on Year-end Tax Issues

The American Soybean Association joined other farm and commodity groups this week at a meeting to discuss expiring tax provisions that impact farmers and ranchers. A coalition of 34 farm groups wrote to Congress in April expressing support for reforming current estate tax laws before the end of this year. Current law holds that the estate tax exemption will shrink to $1 million per person rather than the current $5 million beginning Jan. 1, 2013, with the maximum tax rate increasing to 55 percent from the current 35 percent.

Legislation has been introduced in both the House and Senate that would permanently repeal the estate tax, but neither chamber has acted on it. Estate taxes, as well as other expired and expiring tax provisions including the biodiesel tax credit, capital gains taxes, and deductions for health insurance for the self-employed, are expected to be among the many tax issues Congress may consider in a lame-duck session beginning Nov. 13. ASA and the rest of the coalition agreed to deliver an updated letter on estate taxes to Congress following the election.



Ag Stakeholders Develop Seed Market Framework

The American Seed Trade Association (ASTA) and the Biotechnology Industry Organization (BIO) completed the first phase of an industry Accord to establish a framework for post-patent single trait seeds. The following reaction should be attributed to Chuck Larson, executive director of Americans for Choice and Competition in Agriculture (AgChoice):

"After five years of tireless negotiations among ASTA, BIO and industry stakeholders, progress on the maintenance of traits after patent expiration is a significant first step to ensure American farmers are equipped with continued access to the technologies necessary to feed the world's growing population through increased production and better nutrition in the grain trade. For the GEMMA to be effective, all trait providers must agree to it, and AgChoice encourages these industry-leading companies to sign the GEMMA and include all biotech traits as part of the Accord.

"Although this is a significant milestone for the industry, there is still much work to be done. Innovation in this market is focused on the multi-trait, or stacked, seed marketplace. Therefore, the Accord will remain incomplete until a full set of legal and regulatory systems are in place to promote choice, competition and innovation for farmers. Key to the next phase of the process is recognizing the importance of international grain trade and the maintenance of regulatory data. Establishing a robust framework for bringing post-patent multi-trait seeds into the agricultural marketplace will unleash a wave of innovation that will increase agricultural output and - ultimately - the U.S. Economy."

Americans for Choice and Competition in Agriculture (AgChoice) informs key stakeholders about the challenges to innovation and how increased competition in the multi-trait seed marketplace would unleash a wave of American innovation to boost U.S. economic growth, grow exports, and solve the looming global food crisis. For more information, visit http://agchoice.org.



ADM Reports First Quarter 2012.5 Results

Archer Daniels Midland Company reported financial results for the quarter ended Sept. 30, 2012. The company reported net earnings for the quarter of $182 million, or $0.28 per share, down from $0.68 per share in the same period one year earlier. Adjusted earnings per share1 were $0.50, primarily reflecting a $0.16 charge related to ADM's planned divestment of Gruma. Segment operating profit1 was $498 million, including a $146 million charge related to Gruma.

"Our first-quarter segment results were mixed," said ADM Chairman and CEO Patricia Woertz. "Oilseeds performance was strong, the ethanol industry experienced sustained negative margins, and Agricultural Services managed well through a complicated quarter, challenged by the drought.

"During the first quarter, we focused on actions that will improve returns. We made progress in our ongoing portfolio management efforts. And I'm proud of our efforts and the results of our work to reduce costs and capital.

"As we look ahead to 2013, we are bringing online our large Paraguay soybean processing plant as South American farmers are responding to market conditions with record plantings, and we are implementing plans to navigate the tight U.S. crop supply.

"Longer-term, we remain optimistic as we see continued growth in global demand for protein meal and other agricultural products. We continue to execute our strategy, aligning our business to serve rising demand from customers around the world."

Adjusted EPS decreased primarily due to lower segment operating profit.

This quarter's effective tax rate was 38 percent and included special factors. Excluding these items, the effective tax rate was 30 percent, in line with last year's first quarter.

Oilseeds operating profit in the first quarter was $336 million, up $116 million from the same period one year earlier.

Crushing and origination operating profit was $256 million, up $150 million from the year-ago quarter on strong improvements by all three geographies. ADM's U.S. soybean operations delivered very strong results amid good U.S. demand and meal exports. In Europe, soybean and rapeseed crushing earnings improved significantly.

Refining, packaging, biodiesel and other generated a profit of $28 million for the quarter, down $27 million, with steady results in North and South America offset by weaker European biodiesel results.

Cocoa and other results increased $27 million. Weaker cocoa press margins were offset by the absence of last year's significant negative mark-to-market impacts.

Oilseeds results in Asia for the quarter were down $34 million from the prior year's first quarter, principally reflecting ADM's share of the results from its equity investee Wilmar International Limited.

Corn processing operating profit was $68 million, a decrease of $115 million from the same period one year earlier.

Sweeteners and starches operating profit increased $64 million to $94 million, as tight sweetener industry capacity supported higher year-over-year selling prices. The year-ago quarter's results were negatively impacted by higher net corn costs related to the timing effects of economic hedges.

Bioproducts results in the quarter decreased $179 million to a loss of $26 million. Weak U.S. ethanol exports, strong Brazilian imports and slow E15 implementation kept industry margins negative.

Agricultural Services operating profit excluding the Gruma charge was $224 million, down $99 million from the same period one year earlier.

Merchandising and handling earnings fell $101 million to $108 million, mostly due to weaker U.S. merchandising results impacted by the smaller U.S. harvest.

Transportation results decreased $9 million to $19 million impacted by low barge freight utilization driven by reduced corn exports.

Milling and other results increased $11 million, excluding the Gruma charge. Milling results remained strong, and ADM Alliance Nutrition saw improved margins amid stronger demand.

Operating profit from ADM's Other Financial businesses was $16 million, up $21 million, with improved results from captive insurance and ADM Investor Services.



Profitable Year So Far For CNH Global

CNH Global N.V. announced financial results for the quarter ended September 30, 2012.

Net sales for the quarter increased 5% (11% on a constant currency basis) to $4.8 billion as global demand for agricultural equipment remained solid, driven by high commodity prices offsetting the effects of a severe drought in North America.

Strong agricultural equipment sales more than offset the reduction in sales of construction equipment due to challenging market conditions in most geographies and the negative effects of foreign currency translation.

Equipment Operations posted a gross profit of $988 million, or 20.4% of net sales for the third quarter, and an operating profit of $464 million, as higher agricultural equipment revenues and positive net pricing in both segments compensated for increased SG&A expenditures and R&D expense (+22%) as a result of significant investments in new products and Tier 4 engine emissions compliance programs and the negative impact from foreign exchange.

Equipment net sales during the quarter were 83% agricultural equipment and 17% construction equipment.