Monday December 3 Ag News

Farmers Tax Guide Now Available
Larry F Howard, Extension Educator, Cuming County

Farmers can better understand their 2012 tax returns with help from a guide available through the University of Nebraska-Lincoln Extension.  The 2012 Farmers Tax guide has illustrated examples, a sample return and describes available deductions. The tax guides are in and are free to local producers.  They can be picked up at the UNL Extension office in Cuming County, area tax preparers or any Cuming County bank.



Heineman Sends Ibach to Agricultural Event in China

Gov. Dave Heineman today announced he will send Nebraska Agriculture Director Greg Ibach to Beijing, China, later this week to represent the state at a workshop designed to spark mutual U.S. - China investment in agriculture and bioenergy.

“As the most populous country in the world, China already is an important part of Nebraska’s trade economy,” said Gov. Heineman. “The opportunities there are endless, and we need to position our state to be actively engaged in events such as this workshop to maintain a competitive edge.”

Seizing Investment Opportunities in Agribusiness: A U.S.-China Workshop is being coordinated by The Paulson Institute, the Chinese Agricultural Association for International Exchange and the Chinese Ministry of Agriculture. The event will take place Dec. 7. Ibach is slated to be a presenter at the workshop, discussing the opportunity for Chinese companies to add value to Nebraska-grown commodities within the state’s borders.

The Paulson Institute is chaired by Henry M. Paulson, Jr., former U.S. Treasury secretary. The Institute is working to promote sustainable, world economic growth and a cleaner environment, with its initial focus on actions by the governments and businesses of the United States and China. At the Governor’s request, Ibach is serving as an adviser on the U.S.-China Agricultural Investment Experts Group of The Institute.

“The trading landscape with China continues to evolve, and Nebraska must be part of the conversation and prepared to adapt,” said Dir. Ibach. “I appreciate the opportunity to represent our farmers, ranchers and agribusinesses on The Paulson Institute and as part of this workshop.”

Participants will include representatives of Chinese and international companies and investment banks, national and state agricultural leaders, and agribusiness consultants. The event is designed to look at opportunities for agriculture-related investment between the United States and China.



NEBRASKA STUDENTS TO TOUR TAIWAN

Next week, three Nebraska students will travel over 7,000 miles to Taiwan where they will experience the country’s agricultural education system, agricultural industry and learn more about the role Nebraska agriculture plays in Taiwan.

This is the ninth year for the student exchange program between the Nebraska Department of Agriculture (NDA) and the Taipei Economic and Cultural Office in Kansas City.  Each year, three students from Taiwan visit Nebraska to attend the annual Nebraska Agricultural Youth Institute (NAYI), a week-long summer program coordinated by NDA.  In return, NDA chooses three NAYI delegates to travel to Taiwan.

NDA Director Greg Ibach hopes the exchange program will continue, as it benefits agriculture in both countries.  “Agriculture is a global industry, and it’s important that our students are educated and understand the important role our trading partners, such as Taiwan, play in our state’s agricultural industry.”

The trip is sponsored by the Nebraska Farm Bureau and the Taipei Economic and Cultural Office in Kansas City and is coordinated by NDA.

The students will leave for Taiwan on December 9 and will return to Nebraska on December 14.  While in Taiwan, the students will be staying at the Taichung Senior High School of Agriculture and Technology.  Their visit will include tours of the campus, interaction with Taiwanese students, participation in presentations, visits to local farms, and observations of several agricultural research institutes.  They will also have the opportunity to do a little sightseeing.

The students will return to the 2013 NAYI where they will share their experiences with the delegates.

The three students selected by the Nebraska Department of Agriculture are:
·         Ms. Amanda Clymer from David City.  Amanda is a senior at David City High School.  Her parents are Kent and Gina Clymer.
·         Mr. Justin Korth from Randolph.  Justin is a senior at Randolph High School.  His parents are Rick and Susan Korth.
·         Mr. Conner Kozisek from Ainsworth.  Conner is a senior at Ainsworth High School.  His parents are Mark and Joni Kozisek.



Crop Production Clinics Offer Continuing Education at Nine Locations in 2013

The annual Crop Production Clinics will help producers and professionals alike to improve profitability, sustainability and safety.

The 2013 meeting series will be held at nine locations throughout the state in January. Topics vary slightly by location, but could include soil fertility, soil water and irrigation management, crop production, ag business management and policy, pesticide safety and disease, insect and weed pest management. Information on the topics for each location will be available at cpc.unl.edu.

The clinics are the primary venue for commercial and noncommercial pesticide applicators to renew their licenses in the Ag Plant, Regulatory and Demonstration/Research categories.

Certified Crop Advisors can earn a maximum of six continuing education units when they bring their CCA number to apply. Available units include: six for integrated pest management, two for soil and water, one for nutrient management, one for crop production and two for professional development.

This year's locations are:
– Jan. 8, Hastings, Adams County Fairgrounds
– Jan. 9, North Platte, Sandhills Convention Center
– Jan. 10, Gering, Gering Civic Center
– Jan. 15, Atkinson, Atkinson Community Center
– Jan. 16, York, The Auditorium
– Jan. 17, Beatrice, Armed Forces Reserve Center
– Jan. 22, Kearney, Younes Conference Center
– Jan. 23, Norfolk, Lifelong Learning Center, Northeast Community College
– Jan. 24, Fremont, Midland University Event Center

Registration fee for the clinic is $50 for a meal, refreshments and the 2013 Guide for Weed Management and the 2013 Crop Production Clinic Proceedings. For those recertifying as pesticide applicators, the fee is $60. Online pre-registration at cpc.unl.edu is strongly encouraged. As an incentive to promote online pre-registration, on site/day-of registration will be $70 per person. Contact your local Extension office or 402-472-2811 or 402-472-1632 with questions.



J. Dudley Butler To Keynote Nebraska Farmers Union State Convention
ICON President Dave Wright to Report On Beef Checkoff Issues

Nebraska Farmers Union (NeFU) will highlight livestock issues Saturday morning December 8th at their 99th annual state convention to be held in Grand Island at the Midtown Holiday Inn.  Livestock producers and the public are invited to attend.

Nationally recognized livestock market expert and retired USDA GIPSA Chief Administrator J. Dudley Butler will report on the particulars of the recent Congressional efforts to strengthen and update USDA’s anti-trust regulations and agricultural marketing definitions and standards.  Butler will also speak on the future of the livestock industry.  Butler will make his presentation 9:00 a.m. Saturday morning, the second day of the two day convention.

Later Saturday morning, Independent Cattlemen of Nebraska President and Cattlemen’s Beef Promotion Board member Dave Wright will report on beef checkoff activities and issues.

NeFU President John Hansen said, “Since 1980, meat packer consolidation, non-competitive marketing practices, and vertical integration have squeezed thousands of livestock producers in Nebraska out of business.  Nationally, according to the latest USDA data, there are 42% fewer beef producers, 91% fewer swine producers, 82% fewer dairy producers, and 33% fewer sheep producers.  Unfortunately, while livestock producers have done an outstanding job of producing high quality livestock and milk, they failed to produce the necessary profit to pay their bills and stay in business.

It is high time we address the root cause for the loss of livestock producers instead of chasing meat packer financed media disinformation  generated wild goose chase diversions.”

The agenda for the entire NeFU Convention held December 7-8th can be found at: http://nebraskafarmersunion.org/ai1ec_event/killa_agenda/?instance_id=122.

Registration begins at 8am Friday morning. Convention begins at 9am Friday, and resumes 8:30am Saturday.  As always, Farmers Union members and the public are invited to attend.   For more information call the NeFU State Office at 402-476-8815.



Iowa DNR: Manure Applicators Take Annual Training Now
Nearly 1,000 confinement site manure applicators may need to complete their annual training requirements by Dec. 31 according to the DNR.

"It's not too late for applicators who are currently certified but haven't completed their annual training requirement to get it done before the end of the year," said Jeff Prier, who coordinates the DNR's manure applicator certification.

While some applicators may not need the training -- changing their certification type or not raising livestock anymore -- the DNR's records show that about one-third of the 2,720 confinement site applicators need to complete annual training.

"If they get in and get the training all three years, they can avoid taking a make-up test to renew their certificate," said Prier.

Applicators should make an appointment at the nearest Iowa State University Extension and Outreach office for the training. Some Extension offices offer training on set schedules. Others may charge a fee.

More information and a list of Extension offices are available at www.agronext.iastate.edu/immag/mac.html. The DNR administers the program. Information is available at www.iowadnr.gov/afo/.



Commercial Manure Applicator Training Scheduled for Jan. 4 in Iowa

Commercial manure applicators can attend three hours of training on Friday, Jan. 4, 2013 to meet commercial manure applicator certification requirements. Iowa State University Extension and Outreach and the Iowa Department of Natural Resources will conduct Commercial Manure Applicator training from 9 a.m. to noon at 69 locations in Iowa and one location in Wisconsin. Registration begins at 8:30 a.m. There is no fee for the workshop, but applicators must register by Dec. 28, 2012 with the ISU Extension county office where they plan to attend. A complete list of workshop locations can be found at http://www.agronext.iastate.edu/immag/certification/macprogrampostcard.pdf.

Commercial manure applicators needing to recertify and those wanting to certify for the first time should attend. All currently certified commercial manure applicator licenses will expire on March 1, 2013. Those wanting to renew must complete training requirements and submit forms and fees to the DNR prior to March 1, to avoid paying late fees. 

Those unable to attend the program on Jan. 4 need to schedule time with their ISU Extension county office to watch the training DVD. Due to scheduling conflicts, many county extension offices will no longer accept walk-in appointments to watch these DVDs, but do offer scheduled dates and times to provide this training. There will not be a fee charged for scheduled training dates. Anyone requesting a non-scheduled reshow at the county extension office will be charged a $10 fee. If attending the workshops or watching the three-hour DVD is not convenient, commercial applicators may contact their local DNR field office to schedule an appointment to take the certification exam.

In addition to the commercial manure applicator training offered on Jan. 4, ISU Extension and Outreach will offer seven dry/solid manure workshops for commercial manure applicators in February 2013. Information regarding these workshops and locations is also contained in the link to the brochure listed above.

For more information about the commercial manure applicator certification program, contact an ISU Extension county office or visit http://www.agronext.iastate.edu/immag/mac.html.



Confinement Site Manure Applicator Workshops Scheduled for 2013

Confinement site manure applicators and anyone interested in learning about manure issues should plan to attend a two-hour workshop offered by Iowa State University Extension and Outreach in January or February 2013. The workshops are offered in cooperation with the Iowa Department of Natural Resources. There is no fee to attend the workshops, but applicators will need to pay certification fees to complete certification requirements.

“Iowa law requires confinement site manure applicators to attend two hours of continuing education each year of their three-year certification period, or take and pass an exam once every three years,” said Angela Rieck-Hinz, ISU Extension and Outreach program specialist and coordinator of the manure applicator certification program.

A total of 61 confinement site manure applicator workshops will be held in 57 different counties. In addition, a series of seven dry/solid manure applicator certification meetings will be held in February. ISU Extension county offices have a complete list of workshop dates and locations, or find the list at http://www.agronext.iastate.edu/immag/certification/confdates.html.

The workshops serve as initial certification for those applicators that are not currently certified, recertification for those renewing licenses and continuing education for those applicators in their second or third year of their license.

Due to uniform certification deadlines, applicators are encouraged to attend workshops prior to March 1 to avoid being assessed a late fee of $12.50. Those unable to attend one of the workshops need to schedule time with an ISU Extension county office to watch the training DVD. Due to scheduling conflicts, many county extension offices will no longer accept walk-in appointments to watch these DVDs, but do offer scheduled dates and times to provide this training. There will not be a fee charged for scheduled training dates and workshops; however anyone requesting a non-scheduled showing will be charged a $10 fee to view the training.If attending the workshops or watching the two-hour training DVD is not convenient, confinement site manure applicators may contact their local DNR field office to schedule an appointment to take the certification exam to meet certification requirements.

Contact an ISU Extension county office for more information about the Manure Applicator Certification Program or visit http://www.agronext.iastate.edu/immag/mac.html.



CME Group Completes Acquisition of Kansas City Board of Trade

CME Group, the world’s leading and most diverse derivatives marketplace, today announced it has completed its acquisition of the Kansas City Board of Trade (KCBT), the leading futures market for hard red winter (HRW) wheat. The completion of the acquisition will provide both CME Group and KCBT customers with greater capital efficiencies, new trading opportunities and additional products to manage their global wheat price risk. 

“We’re pleased to complete this transaction, combining KCBT Hard Red Winter Wheat products with our deep and liquid CBOT Soft Red Winter Wheat futures and options markets,” said CME Group Executive Chairman and President Terry Duffy. “The integration of these two global wheat benchmarks will provide new trading opportunities to commercial grain market participants, wheat traders and customers who continue to rely on these tools to manage their price risk.”

“The addition of KCBT to CME Group will provide significant value to the customers, shareholders and members, beginning on day one,” said CME Group CEO Phupinder Gill. “Starting today, we’re integrating hard red winter wheat futures and options into our suite of already deep and liquid grain and oilseed products. Moving forward, we’ll work with customers to grow existing KCBT and CBOT Wheat futures and options, while developing new and innovative products that will benefit customers of both varieties of wheat.” 

Beginning today, CME and CBOT members and KCBT permit holders will immediately benefit from the ability to trade each other’s wheat futures and options products in a more cost-effective manner on the CME Globex electronic trading platform. Following the integration of clearing services, customers will benefit from cross-margining and other capital efficiencies. 

Beginning Monday, December 10, customers will be able to take advantage of the implied spread between these two distinct wheat futures products. The implied inter-exchange KCBT-CBOT Wheat futures spread will be available for trading on CME Globex.  

CME Group will begin integrating KCBT business operations and clearing services in order to achieve efficiencies for members, customers and shareholders. The timetable for integration includes:
-  Ongoing operation of the KCBT trading floor for at least six months;
-  Integration of clearing systems (specific timeline to be announced Q1 2013); and
-  Maintenance of a committee made up of KCBT market participants to advise on HRW wheat contract terms and conditions for at least three years.



USDA Announces Commodity Credit Corporation Lending Rates for December 2012

The U.S. Department of Agriculture's Commodity Credit Corporation (CCC) today announced interest rates for December 2012. The CCC borrowing rate-based charge for December 2012 is 0.125 percent, unchanged from 0.125 in November 2012. For 1996 and subsequent crop year commodity and marketing assistance loans, the interest rate for loans disbursed during December 2012 is 1.125 percent, unchanged from 1.125 in November 2012.

Interest rates for Farm Storage Facility Loans approved for December 2012 are as follows, 1.125 percent with seven-year loan terms, unchanged from 1.125 in November 2012; 1.750 percent with 10-year loan terms, unchanged from 1.750 in November 2012 and; 1.875 percent with 12-year loan terms, down from 2.000 percent in November 2012.



RFA to EPA: “Time is Now” to Revise Lifecycle GHG Analyses of Corn and Sugarcane Ethanol

The Environmental Protection Agency (EPA) should immediately initiate a process to update its obsolete lifecycle greenhouse gas (GHG) analyses of corn and sugarcane ethanol for the Renewable Fuel Standard (RFS2), according to a letter sent Friday to EPA Administrator Lisa Jackson from Renewable Fuels Association (RFA) President and CEO Bob Dinneen.

“There have been literally dozens of new studies and modeling improvements since EPA finalized the RFS2 almost three years ago,” Dinneen said. “Overwhelmingly, these new reports and data show that the corn ethanol process is far less carbon intensive than assumed by EPA. Corn ethanol is offering real and significant GHG savings today. Meanwhile, the carbon intensity of crude oil production continues to worsen, as we drill farther and deeper than ever before and get more of our energy from marginal crude sources like tar sands.”

Dinneen also said recent research shows that the lifecycle GHG emissions associated with Brazilian sugarcane ethanol production are worse than originally estimated by EPA for the RFS2. Harvested sugarcane area in Brazil has expanded 55 percent since 2006, with at least 70 percent of that expansion occurring on previous pasture land, research shows. EPA’s analysis assumed virtually no land use change emissions for sugarcane ethanol.

The RFA letter summarizes the results of numerous recent studies and data showing that EPA overestimated ethanol plant energy use, corn farming energy use, and land use change (LUC) emissions. “Indeed, improved modeling and better data show that the corn ethanol process is more efficient and producing less GHG emissions today than EPA assumed would be the case in 2022,” the letter states. On the issue of land use change, Dinneen wrote, “…based on newer data and improved methodologies, the independent estimates of corn ethanol LUC produced since the RFS2 was finalized have generally trended in the range of 8-18 g/MJ. This compares to EPA’s net LUC emissions estimate for corn ethanol of 28.4 g/MJ.”

When recent modeling and data improvements are combined into one analysis, as was done in a recent peer-reviewed paper by researchers at Purdue University and the Department of Energy (DOE), the results are striking. The Purdue and DOE scientists found corn ethanol, on average, reduces GHG emissions today by at least 24 percent compared to gasoline even with speculative LUC emissions included. GHG reductions for ethanol from dry mill plants are even larger.

Dinneen said it is imperative that EPA recognizes this new science and data for several reasons. “EPA has been a leader in the field of biofuels lifecycle assessment, and initiating a process to update the RFS2 analysis ensures that the Agency maintains an active and relevant role in the scientific discussion around biofuel lifecycle GHG accounting,” he wrote. “Second, an effort by EPA to update its analysis will enhance the public’s understanding of corn ethanol’s lifecycle GHG impacts and serve to inform debate on future biofuels policies. In addition, updated analyses of corn and sugarcane ethanol will allow for fairer comparisons of the two fuels moving forward. Finally, updating EPA’s analysis would help ease the Agency’s workload and reduce the backlog of petitions for new pathways.”



EPA Approves Grain Sorghum Pathway

The Environmental Protection Agency (EPA) today announced it has approved grain sorghum as an eligible feedstock under the Renewable Fuels Standard (RFS).

The EPA’s annoncement is significant in allowing the domestic production of advanced biofuels from grain sorghum as envisioned in the 2007 Energy Bill. National Sorghum Producers has worked closely with EPA for 34 months to establish a biofuels pathway for grain sorghum-based ethanol in the RFS.

“This is a great day for the U.S. sorghum industry,” said NSP Chairman Terry Swanson, a sorghum grower from Walsh, Colo. “NSP has worked tirelessly for more than two years to make this happen. A pathway for grain sorghum as an advanced biofuel not only incentivizes ethanol plants to use grain sorghum as a biofuel feedstock, but it also adds value and profitability for the producer.”

In June, the EPA released a notice of data availability (NODA) concerning renewable fuels produced from grain sorghum under the RFS program, followed by a 30-day comment period. EPA’s analysis showed grain sorghum, when used to make ethanol at facilities that use natural gas, has a greenhouse gas (GHG) emissions reduction of 32 percent, qualifying it as conventional ethanol. This will give individual ethanol plants the ability to finalize their qualification process to produce advanced biofuels. NSP expects at least one existing ethanol plant to qualify very soon.

According to EPA, when grain sorghum is used to make ethanol at facilities that use biogas digesters in combination with combined heat and power technology, it achieves a lifecycle GHG emissions reduction of 53 percent, qualifying it as an advanced biofuel feedstock under the RFS.

Unfortunately, carbon dioxide capture was not included in the pathway. NSP will continue working with the EPA to get this completed to allow even more ethanol plants to produce advanced biofuels domestically.



Jim Mulhern to Join NMPF Staff as Chief Operating Officer

The National Milk Producers Federation (NMPF) announced today that Jim Mulhern, a veteran public affairs professional with three decades of government policy and communications experience in Washington, DC, will join the NMPF staff January 1st, 2013, as Chief Operating Officer.

Mulhern’s position is a new one within NMPF. He will report directly to President & CEO Jerry Kozak and have direct oversight of the communications, government relations, and membership functions of the organization.

“As the scope of NMPF’s activities has broadened in recent years, and as we plan for the future, we are fortunate to bring Jim on board to help the organization and its members with the significant challenges our industry is facing,” Kozak said. “Jim’s deep knowledge of both the dairy industry and Capitol Hill, coupled with his demonstrated ability to get things done, will greatly benefit National Milk. His strategic insight and extensive network of contacts both inside and outside the Beltway perfectly complement our existing capabilities.”

Mulhern has an extensive dairy industry background, including earlier work with NMPF. A Wisconsin native and a graduate of the University of Wisconsin, Mulhern began his professional career working for a dairy cooperative in Madison.

Mulhern came to Washington, DC, to work on Capitol Hill in 1983. He first joined the staff of NMPF in 1985 before returning to Capitol Hill to serve as Chief of Staff to Wisconsin Senator Herb Kohl. Mulhern has since worked in senior management positions for Fleishman-Hillard, the Fratelli Group, and Watson/Mulhern LLC. Throughout his time at each of these Washington, DC, public affairs companies, Mulhern maintained his relationship with NMPF by working as a consultant to the organization on numerous projects.

“I am very excited by the opportunity to return to NMPF in this leadership capacity,” Mulhern said. “I have been privileged to work on issues of importance to the nation’s dairy producers throughout my career, and I’m looking forward to expanding those efforts.”

“We are pleased to welcome Jim back to NMPF next month, where he will bolster our team of professionals working on issues as diverse as farm policy, immigration reform, trade expansion, environmental regulation, animal care, and milk pricing,” Kozak said.



CWT Assists with 2.4 Million Pounds of Cheese, Butter, and Whole Milk Powder Export Sales

Cooperatives Working Together (CWT) has accepted 10 requests for export assistance from Bongards, Dairy Farmers of America, Darigold, Maryland & Virginia Milk Producers Cooperative, and Michigan Milk Producers Association to sell 1.285 million pounds (583 metric tons) of Cheddar and Monterey Jack cheese, 1.058 million pounds (480 metric tons) of butter, and 85,890 pounds of whole milk powder (WMP) to customers in Asia and the Middle East. The product will be delivered December 2012 through February 2013.

In 2012, CWT has assisted member cooperatives in making export sales of Cheddar, Monterey Jack, and Gouda cheese totaling 113.6 million pounds, butter totaling 70.5 million pounds (adjusted for cancellations), anhydrous milk fat totaling 127,868 pounds, and WMP totaling 171,961 pounds. The product is going to 36 countries on four continents. On a butterfat basis, the milk equivalent of these exports is 2.590 billion pounds, or the same as 75% of the increase in U.S. milk production through October 2012.

Assisting CWT members through the Export Assistance program positively impacts producer milk prices in the short-term by helping to maintain inventories of cheese and butter at desirable levels. In the long-term, CWT’s Export Assistance program helps member cooperatives gain and maintain market share, thus expanding the demand for U.S. dairy products and the farm milk that produces them.

CWT will pay export bonuses to the bidders only when delivery of the product is verified by the submission of the required documentation.



USDA Dairy Products October 2012 Highlights

Total cheese output (excluding cottage cheese) was 928 million pounds, 3.2 percent above October 2011 and 6.3 percent above September 2012.  Italian type cheese production totaled 388 million pounds, 0.9 percent above October 2011 and 4.8 percent above September 2012.  American type cheese production totaled 371 million pounds, 5.1 percent above October 2011 and 6.1 percent above September 2012.  Butter production was 146 million pounds, slightly above October 2011 and 6.8 percent above September 2012.

Dry milk powders (comparisons with October 2011)
Nonfat dry milk, human - 95.0 million pounds, down 5.6 percent.
Skim milk powders - 45.6 million pounds, up 8.7 percent.

Whey products (comparisons with October 2011)
Dry whey, total - 76.0 million pounds, down 1.9 percent.
Lactose, human and animal - 83.0 million pounds, down 0.4 percent.
Whey protein concentrate, total - 37.0 million pounds, down 0.8 percent.

Frozen products (comparisons with October 2011)
Ice cream, regular (hard) - 64.0 million gallons, up 6.1 percent.
Ice cream, lowfat (total) - 31.6 million gallons, down 6.6 percent.
Sherbet (hard) - 3.06 million gallons, up 18.5 percent.
Frozen yogurt (total) - 4.60 million gallons, up 4.2 percent.



USDA to Survey Sheep and Goat Producers
This January, the U.S. Department of Agriculture's National Agricultural Statistics Service (NASS) will reach out to producers throughout the United States for the annual Sheep and Goat Survey. The survey provides critical information on breeding and marketing herds, as well as lamb and kid crops in the United States.

"NASS will contact sheep and goat producers in Pennsylvania during the first two weeks of January to obtain animal inventory and lamb and kid crop information," said Kevin Pautler, Director, NASS PA Field Office. "Results of this survey will provide the latest information on conditions and trends in the U.S. sheep and goat industry for 2013."

Producers selected to participate in the January survey will be asked to provide information on inventory of breeding and market sheep and goats, as well as lambs and kids born. For convenience, producers have the option of responding to the survey by telephone, mail, during a personal interview, or online.

"The results of the Sheep and Goat Survey are primarily used by producers themselves to help determine their production and marketing strategies," added Pautler. "This information also increases consumer understanding and awareness of the benefits of U.S. sheep and goats and their products."

Pautler noted that, as is the case with all NASS surveys, information provided by respondents is confidential by law. NASS safeguards the privacy of all survey responses ensuring that no individual operation or producer can be identified.

Results will be published in the Sheep and Goats report, scheduled for release on February 1, 2013.



ADM Raises Offer to Buy GrainCorp by 3.8% to A$2.8 Billion

Archer Daniels Midland Co. (ADM) has sweetened its takeover bid for Australia's GrainCorp Ltd. by 3.8%, a deal that now values the world's second-largest wheat exporter at about A$2.8 billion.

ADM is now offering GrainCorp shareholders A$12.20 a share in cash, up from its October offer of A$11.75. Archer noted that the new offer represents a 40% premium to the last closing price of GrainCorp shares on the day before the initial offer was unveiled.

Shareholders would keep the dividend of A$0.35 announced Nov. 15.

"Our proposal also offers more certainty, greater value and immediate realization of potential future value for GrainCorp shareholders than GrainCorp's standalone plan," Archer Daniels Chief Executive Patricia Woertz said. She added that the revised proposal takes into account GrainCorp's results for the year, certain new initiatives and its recently announced ordinary and special dividends.

ADM owns 19.9% of GrainCorp's shares, the maximum allowed under the Australian Foreign Investment Review Board.

Last month, GrainCorp rejected Archer's offer, saying it "materially undervalued" its business as it reported its third-consecutive year of record profit -- up 19% for the fiscal year ended September.

In October, ADM reported its first-quarter earnings slumped 60%, as tight U.S. grain supplies limited its grain-trading opportunities and triggered losses in its ethanol business. Both Fitch Ratings and Standard & Poor's placed ADM on watch for a potential credit downgrade following the bid for GrainCorp, citing concerns that the deal could increase the company's debt pile, and Archer has since said it plans to sell its stake in Mexican corn flour maker Gruma SAB (GMK) to help finance the deal.

ADM has also faced opposition from Australian politicians such as Shadow Treasurer Joe Hockey. Critics fear international companies will exploit Australia's natural resources without any concern for the long-term impact.



CRA Calls for Caution in Consideration of Study Alleging HFCS-Diabetes Link

A study released last week by researchers from the University of Southern California and Oxford University claiming to find a unique link between high fructose corn syrup and Type 2 diabetes is flawed both in its design and conclusions, according to the Corn Refiners Association.

Authored by Dr. Michael I. Goran, the report has met with severe criticism for failing to account for the widespread agreement among scientists and medical doctors that HFCS and sucrose (table sugar) are nutritionally equivalent. 

"This latest article by Dr. Goran is severely flawed, misleading and risks setting off unfounded alarm about a safe and proven food and beverage ingredient," said CRA President Audrae Erickson.  "There is broad scientific consensus that table sugar and high fructose corn syrup are nutritionally and metabolically equivalent.  It is, therefore, highly dubious of Dr. Goran--without any human studies demonstrating a meaningful nutritional difference between high fructose corn syrup and sugar--to point an accusatory finger at one and not the other.  Dr. Goran commits the most fundamental of research errors:  Just because an ingredient is available in a nation's diet does not mean it is uniquely the cause of a disease."

In her statement, Erickson explained one of the study's flaws in that it fails to account for factors which have commonly been held as direct factors in the development of Type 2 diabetes.

"If this study shows anything, it is that there is an association between body mass index and diabetes prevalence," she said. "Take for example, Japan, where the average BMI is 22.59, and Mexico, where the average BMI is 27.59.  Even though Japan consumes more HFCS every year than Mexico, the prevalence rates of diabetes in Japan are about half of Mexico.  This example alone shows that Dr. Goran's hypothesis is totally flawed."

Erickson also noted that Goran, whose repeated claims against HFCS have often been refuted, relies upon the work of scientists which has already been widely discredited.

"This is not the first time HFCS detractors have tried to use statistical analysis to 'suggest' a unique causal link between HFCS and obesity," she explained. "The co-authors of the infamous 2004 Bray and Popkin paper, which Dr. Goran relies on, now admit they reached an erroneous hypothesis.  As one author of the 2004 paper confirmed, 'All sugar you eat is the same, that's what we know now that we didn't know in 2004.'"

Noting that rigorous, credible scientific inquiry into the health effects of sweeteners is essential to advancing our understanding of a healthy diet, Erickson summarized the study as the latest in a quest  to condemn high fructose corn syrup that crosses the line from science to advocacy. 

"The bottom line is this is a poorly conducted analysis, based on a well-known statistical fallacy, by a known detractor of HFCS whose previous attack on the ingredient was deeply flawed and roundly criticized," she concluded. "The common sense message for consumers to understand is to watch their intake of all extra calories, including all added sugars."

In addition to Erickson's statement, CRA also released a statement from University of Central Florida Professor of BioMedical Sciences James M. Rippe, M.D., who consults for CRA.

"Diabetes is a complex disease with many underlying factors," said Dr. Rippe. "It is highly unlikely that one component of the diet is uniquely related to diabetes. There are well-established links between obesity and diabetes. That is where we should be focusing our attention rather than vilifying one component of the diet."