Thursday December 20 Ag News

Expect More Impacts as Nebraska Drought Rolls into Second Year

Nebraska has been at the epicenter of the drought of 2012, and its impacts will intensify if it lasts through the winter, as is forecast, say climatologists at the University of Nebraska-Lincoln's National Drought Mitigation Center.

"The previous five years all had above-normal precipitation, the wettest period in recorded history," said Michael J. Hayes, the center's director.  "For Nebraska, it was unprecedented. We came into 2012 with a full hydrological system – rivers, streams, reservoirs and groundwater. When you're talking major droughts, this is not a multi-year drought. As we look ahead to 2013, we don't have that margin built into our hydrological system, so we're in pretty dire straits."

Nebraska, Colorado and Wyoming are all on track to record their driest year on record in 2012, Hayes said, and the country as a whole is having its hottest year on record.

The Climate Prediction Center says the drought in the Plains is likely to continue at least through February, and recovery will take time.

"In Nebraska and the central Plains, we've started seeing the drought feeding off itself, with the dry soils and dry air not allowing precipitation events to develop as usual," said Brian Fuchs, drought center climatologist. "With the lack of moisture, we're more like a desert environment. It warms up fairly quickly during the day, but drops quickly at night."

State climatologist Al Dutcher recently said that the chances of getting a wet enough winter to bring moisture levels back to normal are only 10 to 20 percent.

"When we do have precipitation, very little will go to runoff," Fuchs said. "Those soils are going to act as a big sponge. They're just going to take in a lot of the moisture. We'll continue to see problems of stock ponds, smaller lakes and streams dropping. The hydrologic drought hasn't reared its head, but it's there, as we are seeing more water systems under stress."

"Typically when farmers are done irrigating, you will see the water in the Platte percolate back through the basin," Fuchs said. "We did see that response but it was very minimal and that was even with the irrigation season ending sooner than usual. The channels are tiny, with these very small threads of water in eastern Nebraska."

Anecdotal evidence suggests that in some areas, groundwater levels are declining, which could affect well owners. "I would see that exponentially increasing if we stay dry in 2013," Hayes said. "There's a public health issue when homes don't have water." Although rural residents may be accustomed to hauling water occasionally, Hayes noted that it could be a real hardship for some, such as older people living alone.

Organizations that work with well owners recommend having wells checked now, especially if they were constructed before 1993, to ensure reliability of water supply.

Agricultural producers have been hit hard by the drought. The U.S. Department of Agriculture's Risk Management Agency said that as of Dec. 10, indemnity payments nationwide had reached $8 billion for 2012. In 2012, 80 percent of the eligible acres nationwide and 90 to 95 percent in Nebraska enrolled in crop insurance, said Rebecca Davis, regional director for the RMA in Topeka, speaking at Nebraska's Climate Assessment and Response Committee meeting Nov. 29.  She said that Nebraska is currently the fourth largest consumer of crop insurance, and the fifth largest recipient of indemnity payments, with nearly $483 million paid out as of Nov. 19, and corn alone accounting for $363.2 million of the covered loss. By Nov. 26, total Nebraska indemnities were at $544 million, with $502 million due to drought, heat and dry wind that affected more than 2 million acres of cropland.

This year's drought is forcing producers to make hard choices. "The problem with drought and lack of forage is that many producers are using corn stalks as forage, actually baling them and selling them like hay, which is a double-edged sword," Fuchs said. "While they are using the stalks for one purpose, it could be hurting them as far as tillage conditions." Leaving stalks on the field as a cover that can prevent erosion and help hold moisture in the soil.

Nebraska had its worst fire season since 1919, with central and western Nebraska hardest-hit. Don Westover, fire program leader of the Nebraska Forest Service, reported that as of Dec. 14, the state had 1,426 wildfires reported, burning more than 400,752 acres and 65 structures, and costing $12 million so far. He added that a few large fires still unreported in the official tally would add another 94,000 acres.

For up-to-date information from Nebraska Extension about how to prepare for another drought year, see droughtresources.unl.edu.



Supplementing Feeds This Winter
Steve Tonn, UNL Extension Educator, Washington County

With winter feeding in progress many beef producers may be feeding low quality forages such as corn stalks, CRP hay, and drought damaged silage.  There may be significant variability in the nutritional composition and quality of those feeds.  Forage testing is extremely important this year to know the nutritional value and to make appropriate supplementation decisions.

Low quality forages can be used extensively to stretch higher quality feeds, provide roughage, and provide a portion of the nutrient requirements; but alone they are unlikely to meet the nutritional requirements for productive livestock over the winter.  Rations with large amounts of these forages may require energy supplementation and will almost certainly require protein supplementation.

Due to high feed prices, short feed supplies, and the use of low quality forages this winter it will be important to balance the ration to meet the protein requirements.  However, at current prices it does not make financial sense to over-feed protein.  As protein prices rise it becomes increasingly valuable to forage test and balance the ration to meet but not exceed protein requirements.  On the other hand, it makes no sense to under-feed protein.  Animals will need adequate protein to maintain body condition, maintain body temperature, and be productive.

Numerous protein sources are available including corn co-products, soybean meal, alfalfa hay, etc.  Compare your protein source on a per pound of protein basis to determine the best source for your money.  Natural protein sources work better with forages than do non-protein nitrogen sources such as urea.  Non-protein nitrogen sources such as urea must be fed with high energy diets.

As the temperature drops and the snow starts to fly producers will need to make wise feeding decisions in order to balance their rations and their check books.  The best approach is to forage test and work with nutritionists, veterinarians, Extension educators and specialists, etc. to come up with safe and nutritious rations that make sense.  With adequate planning and supplementation low quality forages can be used effectively and can be important components of rations this winter.  For a list of feed testing laboratories, contact the Washington County Extension Office in Blair.



NE Agribiz Club Jan 7th Meeting

The January 7th, 2013, 'Lunch-n-Learn' meeting for the Nebraska Agribusiness club will feature Senator Tom Carlson.  Senator Carlson will speaking about upcoming State Legislation that could affect agriculture. Carlson currently serves as chair of the state Agriculture committee, as well as serving on the Business and Labor and Natural Resources committees.

Be sure to RSVP to the meeting below or by clicking here... http://nebraskaagribusinessclub.wordpress.com/rsvp/.  The meeting will be held at the Lancaster Extension Education Center located at 444 Cherrycreek Road, Lincoln, NE. Buffet lunch will begin at 11:30 a.m., with the program starting at 12:20 p.m. Meeting registration, which includes lunch, is $10 per person (unless you have paid for the Inclusive membership).



UNL Offering Pesticide Safety Education Program Statewide Beginning January

Nebraska commercial and noncommercial pesticide applicators seeking first-time certification or recertification in 2013 to use or purchase restricted-use pesticides can get training through University of Nebraska-Lincoln Extension.

The training is offered statewide from January through April, said Clyde Ogg, pesticide safety educator for UNL's Institute of Agriculture and Natural Resources.

UNL's pesticide education office has sent commercial/noncommercial pesticide applicators with certifications expiring in April a pesticide applicator education schedule booklet that has initial certification and recertification information, as well as training schedules.

Commercial applicators are those using restricted-use pesticides, and in some cases general-use pesticides, on a contract or for-hire basis, Ogg said. Noncommercial applicators are those applying these same pesticides to sites owned by an employer or for a governmental agency or political subdivision of the state.

Farmers and ranchers classified as private applicators will have their pesticide safety education programs as scheduled by local UNL extension educators, Ogg said. For more information, they should contact their local extension office.

Commercial and noncommercial applicators interested in training can get a copy of the schedule booklet at local extension offices, by phoning UNL's pesticide education office at 800-627-7216 or 402-472-1632 or online at http://pested.unl.edu/commercialschedule.

Advance registration is required for all initial commercial/noncommercial applicator training and most other training sessions. A $60 fee applies for each applicator registering for February through April sessions, regardless of the number of categories registered for.

Required study materials for initial training range from $10 to $30 per manual, depending on category.

Recertification opportunities are available at several extension offices in February and March and at several annual conferences and trade association meetings early in 2013.

Initial certification requires passing a general standards exam and one or more specific applicator categories, Ogg said. Applicants can study by themselves, but for best results, he recommends combining the training with the study materials.

UNL conducts the training programs, and the Nebraska Department of Agriculture grants the licenses.  NDA testing is offered at initial training locations. Questions about individual applicator license status should be directed to NDA at 402-471-2351 or 877-800-4080.

The only opportunity for commercial applicators to recertify in the Agricultural Plant category and Demo/Research subcategory, other than by examination, will be at UNL Crop Production Clinics.  Crop Production Clinics begin at 8:45 a.m., local time, at the following locations [preregister on-line (http://cpc.unl.edu) or at the door]:    
Atkinson: Atkinson Community Center, 206 W. Fifth St., Jan. 15.
Beatrice: Armed Forces Reserve Center, 1400 W. Scott Rd., Jan. 17.
Fremont: Midland University Event Center, 900 N. Clarkson, Jan. 24.
Gering: Gering Civic Center, 1050 M St., Jan. 10.
Hastings: Adams County Fairgrounds, 947 S. Baltimore, Jan. 8.
Kearney: Younes Conference Center, 416 Talmadge Rd, Jan. 22.
Norfolk: Lifelong Learning Center, 601 E. Benjamin Ave, Jan. 23.
North Platte: Sandhills Convention Center, 2102 S. Jeffers, Jan. 9.
York: The Auditorium, 612 N. Nebraska Ave., Jan. 16.
        
Recertification in additional applicator categories is offered at the following locations and dates. Available categories vary at each of the locations; check the pesticide applicator education schedule booklet for details.  Preregistration required:
Ainsworth: Courthouse Meeting Room, 148 W. Fourth St, Feb. 7, 26.
Beatrice: Gage County Extension Office, 1115 W. Scott, Feb. 7, 26 or March 21.
Chadron: 4-H Building, Fairgrounds, Feb. 21     
Columbus: Platte County Courthouse, 2610 14th St., Feb 26.
Dakota City: Farm Service Center, 1505 Broadway, Feb. 21.      
Fremont: Dodge County Extension Office, 1206 W. 23rd St., Feb. 7 or March 21.
Grand Island: College Park, 3180 W. Hwy. 34, Feb. 7, 26.
Holdrege: Phelps County Fairgrounds, Ag Center, 1308 2nd St., Feb. 7 or March 21.
Lincoln: Lancaster County Extension Office, 444 Cherrycreek Rd, Feb. 7, 26 or March 21.
Norfolk: Madison County Extension Office, Lifelong Learning Center, 601 E. Benjamin Ave, Feb. 7, 26 or March 21.
North Platte: UNL West Central Research and Extension Center, 402 W. State Farm Rd, Feb. 7, 26.
Ogallala: Valentino's, 55 River Road, March 21.
Omaha: Douglas/Sarpy County Extension Office, 8015 West Center Rd, Feb. 7, 21, 26 or March 21.
Scottsbluff: UNL Panhandle Research and Extension Center, 4502 Ave I, Feb. 7, 26 or March 21.
Valentine: Cherry County Extension Office, 365 N. Main St, Ste. 3, March 21.

UNL Extension also works with several trade organizations, making recertification available at their annual conferences. Conferences offering these opportunities for specific categories include:

Nebraska Turf Conference: Jan. 8, LaVista Conference Center, 12540 Westport Parkway, LaVista. Recertification in Ornamental and Turf pest control category and Demo/Research subcategory. Call the Nebraska Turfgrass Association at 402-472-5351 for registration materials.

Nebraska Urban Pest Management Conference: Feb. 13, The Cornhusker Hotel, 333 S. 13th St, Lincoln. Recertification in structural/health-related pest control, public health pest control, wood destroying organisms, and fumigation categories. Contact Shripat Kamble, UNL Department of Entomology, 402-472-6857 for copies of the program and registration forms.

Nebraska Great Plains Conference, Feb. 19, The Cornhusker Hotel, 333 S. 13th St, Lincoln. Recertification in ornamental and turf pest control category. Call 402-390-1701 for registration information.

Nebraska Aviation Trades Association Conference: Feb. 19, 20, Younes Conference Center, 416 Talmadge Road, Kearney. Recertification in aerial pest control category. Call Nebraska Aviation Trades Association 402-475-6282 for information.

Those seeking initial certification must preregister for one of the following training sessions and purchase study materials 10 days in advance of the training. Training categories vary at the listed sites: 
Beatrice: Gage County Extension Office, Fairgrounds, 1115 W. Scott, March 19.
Columbus: Platte County Courthouse, 2610 14th St, March 19.
Fremont: Dodge County Extension Office, 1206 W. 23rd St, Feb. 5.
Grand Island: College Park, 3180 W. Hwy. 34, Feb. 5, 28.
Lincoln: Lancaster County Extension Office, 444 Cherrycreek Rd, Feb. 5, 28 or April 11.
Norfolk: Madison County Extension Office, Lifelong Learning Center, 601 E. Benjamin, Feb. 28 or March 19.
North Platte: UNL West Central Research and Extension Center, 402 W. State Farm Rd, Feb. 5, 28 or April 11.
Ogallala: Valentino's, 55 River Road, March 19.
Omaha: Douglas/Sarpy County Extension Office, 8015 West Center Rd, Feb. 5, March 19 or April 11.
Scottsbluff: UNL Panhandle Research and Extension Center, 4502 Ave I, Feb. 5, 28, March 19 or April 11.
Valentine: Cherry County Extension Office, 365 N. Main St., Ste. 3, March 19.



Education to Private Pesticide Applicators Available From UNL Extension

Private pesticide applicators holding licenses that expire in 2013, as well as anyone seeking first-time private applicator certification, should contact their local University of Nebraska-Lincoln Extension office for information on pesticide education training sessions that begin in January.

Licensed private pesticide applicators can buy and use restricted-use pesticides in their own farming operations after completing this training. About 6,700 private applicators statewide are eligible for recertification in 2013.

Applicators will learn about Nebraska's pesticide laws and regulations, the pesticide label, personal safety, the worker protection standard, environmental protection, integrated pest management, pesticides and application, application equipment and equipment calibration, said UNL Extension pesticide safety educator Clyde Ogg.

New training topics include changes in pyrethroid labeling to reduce the risk of surface water pollution. Pesticide applicators using this insecticide should avoid applications when water from rain or irrigation could carry the pesticide or soil particles holding the pesticide off the site.

Glyphosate is frequently detected in surface water and rainfall; its usage increased more than eight-fold in a 15-year period from 1992 to 2007, Ogg said. Weeds that are resistant to glyphosate are appearing in Nebraska. Training will cover strategies to reduce the chance of developing weed populations resistant to herbicides.

Research has shown that illness in 11 states associated with pesticide drift is not limited to aerial applications. Drift from chemigation and ground applications can cause illness as well.

During pesticide training, applicators will be briefed on how to reduce drift, to protect human health as well as sensitive crops and commodities such as grapes and bees, Ogg said. An online tool called driftwatch, formerly known as the sensitive crop locator site, is available to help applicators determine if they will be managing land near sensitive crops.

Private applicators needing recertification in 2013 should have received a letter notifying them of that fact from the Nebraska Department of Agriculture in mid-December, Ogg said. The letter includes a bar code, which eliminates the need to complete the standard NDA application form for those wanting to recertify, he said. Applicators having the bar-coded letter with them at training sessions will not have to fill out the application form.

Some applicators may have been assigned new 911 addresses in the past three years, and NDA's notification letters may not be deliverable due to an outdated address. All applicators should check their licenses for the expiration date. If it will expire in 2013 and they have not yet received a letter from NDA, contact them at 402-471-2351 or 877-800-4080.

UNL Extension provides the educational training for recertification, while NDA is responsible for licensing. Cost of UNL training is $30 per person.

For a list of training sessions, sites and dates, contact your nearest UNL Extension office or go online to http://pested.unl.edu/privateschedule, where applicators will find pesticide education sites for private applicators listed by county.

If a private applicator cannot make it to local training sessions, there is another option for becoming certified or recertified, through completion of an online course consisting of 10 modules and quizzes. Pesticide applicators can purchase access to the online course via http://marketplace.unl.edu and going to the Pesticide Education section. Cost for the course, which will take about eight hours to complete, is $60.

After completing private applicator training, certification applications will be sent to NDA, which will then send a bill to the applicator for the $25 state license fee, Ogg said.



ICA's New Program to Strengthen Beef Business

The Iowa Cattlemen's Association announced a new program for its members at the organization's convention and annual meeting in Altoona. "We are excited about this program, called Beef Business Connections," said ICA CEO Matt Deppe. "This program is going to provide the information, training and education that will improve the longevity and profit potential for Iowa's beef cattle producers."

Beef Business Connections already has plans in place for seminars in 2013. Planned seminars will be about capital acquisition for start-up or growth, planning the transfer of beef cattle farm operations between generations, and low-stress cattle handling.

"We are bringing in some of the best talent on these subjects to provide information to Iowa's cattle producers. ICA is dedicated to advancing the economic strength of our members by connecting them to resources that help them grow their beef business," Deppe said. Securing these experts and launching this initiative was largely inspired and is supported by Summit Livestock Facilities, an FBi Buildings company.

"Summit Livestock Facilities is dedicated to improving the profit potential of our customers. So, being the founding sponsor of ICA Beef Business Connections is a perfect fit for us," said Miles Ridgway, President of Summit Livestock Facilities. "We greatly value our relationship with the ICA and welcome this opportunity to contribute resources to advancing the ICA's role in providing Iowa cattlemen and women with the information needed to improve their profit potential," he said during the announcement of the program.

The current programs on the calendar include:
-- Capital Acquisition Seminar - Jan. 29, Maquoketa, and Jan. 31, Storm Lake.
-- Generational Ownership Transfer Seminar - Mar. 14, Independence.
-- Low-Stress Cattle Handling, Training and Demonstrations - July 22, Mason City; July 23, Cedar Rapids; July 25, Donnellson; and July 26, Red Oak.

Details about each event is on the www.beefconnections.org website. ICA members will also receive a brochure with all the details with their January Iowa Cattleman magazine.



Cost Share Helps Farmers Install 4,660 Acres of Cover Crops

Iowa Secretary of Agriculture Bill Northey Wednesday announced that 117 Iowa farmers took advantage of changes this year to the Iowa Financial Incentives Program, which is commonly called state cost share, to install 4,660 acres of cover crops across the state.

"We are excited about the initial response we received to this new effort to encourage the use of cover crops and hope it is the start of many more farmers looking at and using this conservation practice," Northey said. "We have seen a lot of growing interest in cover crops and with the drought and early harvest this year it was a good opportunity for farmers to try them on their farm."

The Iowa Department of Agriculture and Land Stewardship made the rule change in August that included cover crops as an eligible practice under the state cost share program. Through the program Iowa provided up to $25 per acre for the establishment of the cover crop. In total the Department's $104,253 investment was matched by farmers and landowners in 24 different Soil and Water Conservation Districts across the state.

Research has shown that cover crops can be an effective management tool to control erosion from wind and water and ties up the nitrogen in the soil and reduces the potential for nitrate to leach into our surface waters and ground waters. Nitrate transport to streams can be particularly high after a drought period, when stressed crops may not have used all available fertilizer, or in times of excessive moisture.

The USDA Natural Resources Conservation Service (NRCS) Environmental Quality Incentives Program (EQIP) also provided assistance for cover crops and has seen tremendous growth in recent years. This year they provide assistance to support cover crops on 51,635 acres in Iowa, up from 4,059 acres in 2009.



USDA Issues Final Rule for Animal Disease Traceability

The U.S. Department of Agriculture (USDA) today announced a final rule establishing general regulations for improving the traceability of U.S. livestock moving interstate.

"With the final rule announced today, the United States now has a flexible, effective animal disease traceability system for livestock moving interstate, without undue burdens for ranchers and U.S. livestock businesses," said Agriculture Secretary Tom Vilsack. "The final rule meets the diverse needs of the countryside where states and tribes can develop systems for tracking animals that work best for them and their producers, while addressing any gaps in our overall disease response efforts. Over the past several years, USDA has listened carefully to America's farmers and ranchers, working collaboratively to establish a system of tools and safeguards that will help us target when and where animal diseases occur, and help us respond quickly."

Under the final rule, unless specifically exempted, livestock moved interstate would have to be officially identified and accompanied by an interstate certificate of veterinary inspection or other documentation, such as owner-shipper statements or brand certificates.

After considering the public comments received, the final rule has several differences from the proposed rule issued in August 2011. These include:
-    Accepting the use of brands, tattoos and brand registration as official identification when accepted by the shipping and receiving States or Tribes
-    Permanently maintaining the use of backtags as an alternative to official eartags for cattle and bison moved directly to slaughter
-    Accepting movement documentation other than an Interstate Certificate of Veterinary Inspection (ICVI) for all ages and classes of cattle when accepted by the shipping and receiving States or Tribes
-    Clarifying that all livestock moved interstate to a custom slaughter facility are exempt from the regulations
-    Exempting chicks moved interstate from a hatchery from the official identification requirements

Beef cattle under 18 months of age, unless they are moved interstate for shows, exhibitions, rodeos, or recreational events, are exempt from the official identification requirement in this rule. These specific traceability requirements for this group will be addressed in separate rulemaking, allowing APHIS to work closely with industry to ensure the effective implementation of the identification requirements.

For more specific details about the regulation and how it will affect producers, visit www.aphis.usda.gov/traceability.

Animal disease traceability, or knowing where diseased and at-risk animals are, where they've been, and when, is very important to ensure a rapid response when animal disease events take place. An efficient and accurate animal disease traceability system helps reduce the number of animals involved in an investigation, reduces the time needed to respond, and decreases the cost to producers and the government.

This notice is expected to be published in the December 28 Federal Register.



2012: A Beef Checkoff Year in Review

As calendar year 2012 comes to a close and we reflect back on the year, it’s hard to select only a few program highlights to share because there were so many. To be brief, we bring you the Top 5:

1)  BOLD research:  Registered Dietitians and other health professionals received factual, scientifically supported beef nutrition information following the publication of the remarkable checkoff-funded Beef in an Optimal Lean Diet (BOLD) research study published in January in the American Journal of Clinical Nutrition. News of the study reached thousands of health professionals through an educational webinar about beef’s role in a heart-healthy diet.

2)  Greystone Culinary Event:  The checkoff hosted an exclusive culinary education seminar at the Culinary Institute of America at Greystone. More than 30 leading research and development chefs from nationally recognized companies attended the “beef-immersion” course and received a 360-degree education that included culinary innovation, butchering techniques, and hands-on training with alternative beef cuts.

3)  American Heart Association Certified Beef Cuts:  Food City worked with the beef checkoff to introduce four American Heart Association certified extra-lean beef cuts that meet its criteria for saturated fat and cholesterol. The four beef cuts are the Top Sirloin (select grade); Boneless Petite Roast, Filet, Kabob, and Stir-Fry. 

4)  US Beef Exports:  Central and South America have emerged as top growth markets for U.S. beef with even greater potential for the future. Working against a global market where beef imports are generally down, the Central/South America region is up sharply through the first nine months of 2012, purchasing 57.7 million pounds of U.S. beef valued at $99.2 million, increases of 36 percent in volume and 73 percent in value over last year.

5)  2011 National Beef Quality Audit:  The National Beef Quality Audit (NBQA) is a comprehensive survey that evaluates beef industry efforts to continuously improve beef quality. Extensive enhancements were made to the 2011 NBQA design to provide the industry with direction on factors beyond the physical characteristics of beef, such as food safety, sustainability, animal well-being, and the consequences/impacts of beef production practices.

But as we ring in the New Year we also face challenges as an industry and as a checkoff program. At their 2013 Outlook & Strategies Seminar, CattleFax stated that they expect the US cattle inventory to be 89.8 million head on Jan. 1, 2013, down over 1 million head (1.1 percent) from a year ago.

That means in 2013, your checkoff will once again be doing more with less.

“The great thing about our checkoff program is our ability to adapt to and embrace change,” says Kim Brackett, Cattlemen’s Beef Board sec./treas. and producer from Buhl, Idaho. “While we reflect back on the many program successes this past year, it’s amazing how far our checkoff investment goes and producers should be proud of that. But we also have been charged with an incredible task of providing safe, wholesome beef both in the US and outside our country’s borders, and we have to do it with fewer resources.”

Checkoff-funded market research has also found that perceptions about beef are more positive than perceptions about the way cattle are raised. This gap will be a critical, ongoing measure of the effects of communications and issues management programs designed to inform and reassure consumers about beef production. To address these ever-changing consumer needs in the coming year, the checkoff has developed a new committee structure. 

“Our new committee structure will make us more focused on consumer preferences in order to achieve greater program results,” says Brackett. “We realized that this was necessary in order to maintain beef’s positive image and the image of our industry with consumers; and, we hope the synergies this new committee structure presents will help move the needle on beef demand.

“I’m both energized and excited about the possibilities in 2013 and hope every fellow producer feels the same.”

For more information about your beef checkoff investment, visit MyBeefCheckoff.com.



U.S. and China Conclude 23rd Session of the Joint Commission on Commerce and Trade
Commerce, USTR and USDA welcome concrete results in trade negotiations, reiterate need to achieve greater market access for U.S. exporters

Today marked the conclusion of the 23rd session of the U.S.-China Joint Commission on Commerce and Trade (JCCT).  Acting U.S. Secretary of Commerce Rebecca Blank and United States Trade Representative Ron Kirk co-chaired the JCCT along with Chinese Vice Premier Wang Qishan.  U.S. Secretary of Agriculture Tom Vilsack also participated in the discussions.  The U.S. officials announced meaningful progress on key elements of the U.S.-China trade relationship but also underscored that much more work remains to be done to open China's market to U.S. exports and investment.

"During the past four years that I have been pleased to co-chair the JCCT, the two sides have secured key commitments on issues important to both U.S. and Chinese stakeholders.  Today's meetings were important both as a capstone to our past efforts and to lay a foundation for progress going forward.  The progress we made today on issues of fundamental concern demonstrates that the JCCT is a valuable platform that can produce results for business and workers here at home," said Ambassador Kirk.

"The 23rd meeting of the JCCT demonstrated that the U.S. and China will continue to work toward ensuring healthy and balanced growth in our commercial and economic relationship," said Acting Secretary Blank. "We made progress today, though we also recognized that there is still work to do.  Among other important outcomes, we were able to address U.S. concerns relating to intellectual property and innovation, to agree on the elimination of significant regulatory obstacles that were impeding U.S. exports, and to secure meaningful steps for dealing with core issues in China's Government Procurement Agreement accession.  As China continues to open its market to American exports and investment, it will benefit both of our countries."

Secretary Tom Vilsack said, "USDA continued advancing American agricultural interests today in our bilateral trade discussions with the Chinese government.  China is currently the top export market for agricultural products produced by America's farmers and ranchers, and we were able to make progress on several key issues, while reinforcing the inherent value of the products produced in the United States. Much more work remains to be completed and we'll continue working with our Chinese counterparts in the year ahead."

The U.S. and Chinese governments also today signed agreements related to enhancing understanding and measurement of bilateral trade, and increasing the numbers of reverse trade missions which support China's continued development while creating more U.S. exports and jobs.  Additional information about the signings and fact sheet for the 23rd session of the JCCT will be forthcoming.

Established in 1983, the JCCT is the main forum for addressing bilateral trade and investment issues and promoting commercial opportunities between the United States and China.




Global Corn Demand Spurs Historic Shift in China

According to the U.S. Grains Council, China is on track to produce more corn than rough rice for the first time in history, illustrating the growing affluence by the Chinese middle class and their demand for a more protein-rich diet. In its December World Agricultural Supply & Demand Estimate, the U.S. Department of Agriculture upwardly revised its projection of Chinese corn production from 200 million metric tons (7.9 billion bushels) to 208 million metric tons (8.2 billion bushels). USDA is also projecting a Chinese rough rice production of slightly more than 204 million metric tons.

Over the past 20 years, China has experienced explosive growth in meat demand. Poultry consumption has increased 300 percent. Pork consumption has increased 85 percent and beef consumption has increased 155 percent. That is a dramatic contrast to the U.S. figures, which are 45 percent, 6 percent and 3 percent respectively. Rice represents a staple food for more than 2 billion people—including two of the world's most populous countries—India and China—but the data suggests people in China are increasing their desire for animal protein.

"Dramatic shifts in corn production are taking place across the globe" said Kevin Roepke, USGC manager of Global Trade. "This is stark evidence that today's corn producer is well poised to take advantage of growing global consumerism."

The U.S. Grains Council has been operational in China for more than 30 years with a country office located in Beijing, specializing in technical demand building programs and market intelligence.



 U.S. DDGS Exports to Japan in 2012 Hit Record

The U.S. Grains Council reports that U.S. distiller's dried grains with solubles (DDGS) exports to Japan have expanded dramatically since 2004 when they imported a little over 3,000 metric tons. According to the Ministry of Finance Customs, Japan imported more than 384,000 metric tons of U.S. DDGS between January and October 2012, marking the highest imports on record. According to USGC Director in Japan, Tommy Hamamoto, imports are on track to reach 450,000 metric tons in calendar year 2012. Hamamoto also suggested that imports could increase even more in 2013, provided that U.S. ethanol and DDGS production rebound and as Japanese nutritionists gain familiarity with the new low-fat DDGS.




Record 86 Percent of Planted Farmland Protected by Crop Insurance

Eighty-six percent of all planted U.S. farmland – some 281 million acres – is protected by crop insurance this year, up 2 percent from 2011 and a nearly three-fold increase from the late 1990s when only about 30 percent of farmers purchased policies, according to data from USDA’s Risk Management Agency.

The growth in coverage has been fueled by a number of factors, including fewer federal risk management alternatives for farmers, many farmers’ desire to have increased control of their risk management choices, federally-funded premium subsidies for those who purchase policies, a wide array of policy options and the value banks place on crop insurance when making loans.

But many would argue that private sector crop insurance agents, who operate largely on commission for the policies they sell, should be included in that list as well. Ruth Gerdes, a farmer and crop insurance agent from Auburn, Nebraska, nearly lost the land that she and her husband were farming 28 years ago and decided that other farmers needed to learn more about the benefits of crop insurance to avoid a similar brush with foreclosure.

One of the undeniable factors behind the growth of crop insurance, according to Gerdes, is “a motivated workforce” of agents. “We all strive to provide a quality service,” she said, adding that in an industry where premiums are decided by the government, the only way agents can distinguish themselves is through superior customer service.

“We all work to know the products and markets and are willing to be called upon at all hours when disaster strikes,” she said. Gerdes explained that agents, who are often farmers, or have farmed themselves, take great pride in their work and want their customers – the farmers – to be happy with both the insurance products they purchase as well as the service the agents provide. “And of course, part of it also is because we want the producer’s business again the next year,” she added.

Gerdes argues that “this competitive business model is good for the farmer and good for the system,” which is evident by the ever-increasing number of new crop insurance products developed, which today protect 128 different crops.

In 2012, some 1.2 million crop insurance polices were sold, covering 128 different crops. While 84 percent of the polices sold covered corn (34 percent), soybeans (31 percent) and wheat (19 percent), policies were also written for specialty crops including cherries, almonds, cranberries and avocados.



NCGA Announces National Corn Yield Contest Winners for 2012

Advanced production techniques, informed growing practices and improved seed varieties helped corn growers achieve high yields in the National Corn Growers Association 2012 National Corn Yield Contest. Despite a severe drought that plagued most of the Corn Belt, entrants continued to far surpass the national average corn yield, even doubling it in some circumstances.

The National Corn Yield Contest is in its 48th year and remains NCGA’s most popular program for members. With 8,262 entries, the 2012 NCGA National Corn Yield Contest neared the participation record set last year of 8,425 entries. Notably, 2012 still marks a dramatic trend toward higher entry rates, far surpassing the previous entry record set in 2010 of 7,125 entries.

“While this contest provides individual growers a chance for good-natured competition with their peers, it also advances farming as a whole,” said Dean Taylor, chairman of NCGA’s Production and Stewardship Action Team. “The techniques and practices contest winners develop provide the basis for widely used advances that help farmers across the country excel in a variety of situations, including drought.  This contest highlights how innovation, from both growers and technology providers, allows us to meet the growing demand for food, feed, fuel and fiber.”

The 18 winners in six production categories had verified yields averaging more than 316.3222 bushels per acre, compared to the projected national average of 122.3 bushels per acre in 2012. Notably, while the national average declined significantly from a projection of 146.7 bushels per acre at this time in 2011, the contest average rose by more than three bushels per acre. While there is no overall contest winner, yields from first, second and third place farmers overall production categories topped out at 384.3609.

“Many of our members first joined NCGA so that they could participate in the National Corn Yield Contest and test their skills as a farmer,” said Brandon Hunnicutt, chairman of NCGA’s Grower Services Action Team. “While they join to gain entry, their view of the organization, and corresponding level of participation, evolves.  Once a contest participant looks at our activities and achievements on behalf of all American growers, they see the value in a grassroots approach that unites the voices of corn farmers across the country to affect change.  Reluctant joiners turn into vital members, spokespeople for their industry and active advocates of NCGA membership.”

The national and state contest winners will be honored at the 2013 Commodity Classic in Kissimmee, Fla. February 28 - March 2. Contest winners will also be featured in a special edition of Progressive Farmer magazine.

Please visit National Corn Growers Association website www.ncga.com for the complete list of National winners.



ICE to buy NYSE for $8.2B

The New York Stock Exchange is being sold to a rival exchange for about $8 billion, ending more than two centuries of independence for the iconic Big Board.

IntercontinentalExchange Inc., an upstart exchange based in Atlanta, said Thursday that NYSE Euronext Inc. shareholders can chose to receive either $33.12 in cash, .2581 IntercontinentalExchange Inc. shares, or a combination of $11.27 in cash plus .1703 shares of stock.

The deal has been approved by the boards of both companies, but would have to be approved by regulators.

Last year, IntercontinentalExchange and Nasdaq OMX Group Inc. made a failed $11 billion bid to buy NYSE Euronext.

Earlier this year, European regulators blocked Deutsche Boerse AG from buying NYSE Euronext.