Thursday December 6 Ag News

Are You Wasting Hay?
Steve Tonn, UNL Extension Educator, Washington County

Hay feeding time has started for cattle producers and feeding big round bales has made the job easier.  Large bale feeding systems are designed to minimize labor but not waste.   So how much of that hay are you throwing away?   Depending on the feeding method, feeding losses can reach as high as 30-35 percent.  You wouldn’t dream of throwing away one third of the hay you are feeding to your cows. 

Large bales fed free-choice without a rack or feeder in muddy conditions can result in forage losses as high as 45%.  But that’s what happens when cattle are allowed unlimited access to hay.  Livestock trample, over-consume, foul on, and use for bedding 25% to 45% of the hay when it is fed with no restrictions or is not processed.

Hay loss and waste can be reduced by managing how often we feed and by the type of hay feeder we use.  Daily feeding will force cattle to eat hay they might otherwise refuse, over-consume, trample and waste.  Cattle waste less hay when the amount fed is limited to what is needed each day.   One fourth more hay is needed when a four-day supply is fed with free access.  If hay is fed free choice, cows will over consume. 
While we want to restrict the number of bales offered at one time, we should make sure that there is enough space for all animals to access the forage.  Otherwise, the more aggressive cows will eat first and consume the more desirable hay, and animals that are more timid will be forced to eat the lower quality hay or go hungry.

Feeding hay in a rack or a round bale feeder limits the opportunity animals have to trample or soil hay, and reduces waste substantially.  Least feeding losses occur where hay is fed with a rack or bale feeder that forces the animal to turn its head when backing away from the feeder.   When animals can back straight out of a feeder, they can pull out large chunks of hay that drop on the ground and are lost as feed.  Research at the University of Nebraska and Michigan State University has shown feed waste of 3.3%, 5.9%, 9%, 11.1%, and 14.2% for cone, ring feeder with skirt, racks, trailer and cradle feeders.  Long feeders are less effective than round or square feeders because boss animals will push others back by walking down the long feeder, interrupting their feeding and reducing their intake.

 While some losses will always occur, keeping losses to a minimum can reduce feed costs, resulting in more efficient use of forages and increasing the profitability of the cow herd enterprise. 



Johanns Supports Beneficial Trade Legislation with Russia

U.S. Sen. Mike Johanns (R-Neb.) today issued the following statement after the Senate approved legislation granting Russia permanent normal trade relations (PNTR) status, which allows the U.S. to level the playing field for our exporters and also provides an avenue to resolve trade disputes:

“Trade, particularly with large and growing markets like Russia, is good for Nebraska’s farmers, ranchers and manufacturers,” Johanns said. “American workers have been losing out to other countries when it comes to exports to Russia. This legislation will allow us to level the playing field and gives us another tool to address trade complaints.

“Concerns remain about Russia’s record in the areas of human rights and trade, so we must keep a watchful eye and seize our new, normalized trade relationship as an opportunity to encourage progress on these fronts.”

BACKGROUND:
·         Russia officially joined the World Trade Organization (WTO) in August, but the United States cannot fully benefit from Russia’s membership without granting them PNTR status, which is not possible without repealing the Cold-War era Jackson-Vanik amendment of the Trade Act of 1974.
·         Jackson-Vanik requires the president to deny normal trade relations for countries restricting the freedom of emigration.  The president can determine that a country is in compliance with Jackson-Vanik and waive trade restrictions on an annual basis.  Presidents have issued waivers for Russia every year since 1992.  In spite of presidential waivers, the United States cannot use the WTO’s dispute settlement process with Russia unless Congress permanently removes application of Jackson-Vanik, thus granting Russia PNTR.  
·         The WTO has been an important tool for the United States to ensure a level playing field for our products on the world market.
·         In July, the Senate Finance and House Ways and Means committees passed legislation granting PNTR status to Russia. The full House of Representatives passed the legislation in November by a vote of 365-43.



ASA Applauds Senate Passage of Russia PNTR Bill

The American Soybean Association (ASA) celebrates today’s Senate passage of legislation that will normalize trade between the U.S. and Russia and allow the U.S. to take advantage of the trade benefits resulting from Russia’s admission to the World Trade Organization (WTO) in August. With a vote of 92-4, the Senate passed the Russia and Moldova Jackson-Vanik Repeal Act of 2012. ASA asks President Barack Obama to swiftly sign the bill into law to graduate Russia from the Jackson-Vanik Amendment to the Trade Act of 1974 and establish permanent normal trade relations (PNTR) with the world’s ninth-largest economy. ASA President Steve Wellman, a soybean farmer from Syracuse, Neb., applauded the Senate’s bipartisan vote and called on President Obama to sign the bill into law.

“ASA congratulates the Senate for passing the Russia and Moldova Jackson-Vanik Repeal Act today and urges the president to sign it into law so U.S. farmers can compete in one of the world’s largest and most promising economies,” Wellman said.

As part of its accession to the WTO, Russia will be obligated to bind its agricultural tariffs, adding more predictability to the trading relationship and opening export opportunities for the U.S. agricultural industry. WTO membership will also require Russia to adhere to internationally-recognized scientific standards when regulating meat imports, thereby ensuring greater predictability for U.S. exporters seeking to supply the Russian consumer market.

Reax from NCGA
"We are pleased to see both chambers of Congress act quickly to pass legislation that will lift these outdated restrictions," National Corn Growers Association President Pam Johnson said.  "Russia has tremendous potential to be an important market for our farmers and livestock producers. We urge President Obama to sign the bill soon so other World Trade Organization members can't take advantage of a more level trade playing field before American agriculture."

Russia joined the WTO in August.  However, the United States Congress needed to take steps to lift the Jackson-Vanik amendment and grant permanent normal trade relations in order for America's farmers to benefit from Russia's guaranteed tariff treatment and obligation to apply science-based sanitary and phytosanitary standards. 



Senate Approves PNTR for Russia; Bill Headed to Obama
(from NAWG newsletter)

The Senate voted 92 to 4 on Thursday to establish permanent normal trading relations (PNTR) with Russia. A similar bill was approved by the House of Representatives in November, and President Barack Obama is expected to sign the measure shortly.

Approving PNTR status for Russia will allow U.S. exporters to take full advantage of Russia’s new membership in the World Trade Organization (WTO), which became official in August after a 19-year negotiation process.

The WTO mandates all countries offer permanent trading relations to other members. Previously, the United States had granted Russia normal trading relations status on an annual basis since the early 1990s.

Russia’s WTO accession is expected to provide the U.S. and other WTO members improved trade access and stronger enforcement mechanisms for the country’s commitments to domestic supports, export subsidies and state trading enterprise disciplines.

While some U.S. agricultural sectors will gain new exports from the trade status changes, Russia does not import U.S. wheat, so the country’s membership will benefit U.S. wheat producers primarily by providing new checks on Russian export and domestic support policies. Both NAWG and U.S. Wheat Associates, the industry’s export market development organization, support PNTR for Russia.

The Senate Finance Committee, which has jurisdiction over trade issues, has said that U.S. exports to Russia total $9 billion a year and are expected to double within five years due to the changed trading status. Russia is the world’s seventh-largest economy.



Tax Relief, Reform, Headline Issues Discussed by NeFB Delegates

Nebraska Farm Bureau’s voting delegates reiterated their support for efforts to reform Nebraska’s tax system as a means to provide tax relief and help enhance Nebraska’s economic competitiveness. Property tax relief was chief among concerns discussed by delegates to the Nebraska Farm Bureau Convention held Dec. 3-4, in Kearney. 

“When it comes to funding for schools, roads and other local infrastructure funded through property taxes, Nebraska farmers and ranchers continue to carry a disproportionate share of the property tax load in rural areas and that continues to be a major concern for our members,” said Jay Rempe, Nebraska Farm Bureau vice president of governmental relations. 

Delegates noted that reducing property taxes in general and reducing the percentage of property taxes paid by agriculture should be a priority in any future tax relief or reform efforts. The body also noted interest in looking at other ways to provide tax relief to farmers and ranchers such as removing the sales tax on farm equipment repair parts.

“There are numerous ways to deliver tax relief, but controlling spending is a part of providing property tax relief. The House of Delegates renewed their support for levy caps and budget limits in addition to calling on local governments to seek efficiencies,” said Rempe.

Management of Nebraska’s water resources was also a top issue for delegates as they lent support for the study and implementation of conjunctive management projects by natural resources districts, irrigation and power districts, and the Department of Natural Resources.  Conjunctive management is a process that utilizes the connection between ground and surface water to maximize water use, while minimizing impacts to streamflows and groundwater levels in an effort to increase the overall water supply and stability of the supply. 

“Agriculture doesn’t exist without water and Nebraska’s competitive advantage is heavily dependent upon our ability to manage water in a way that allows for irrigation and other agriculture uses, while also protecting municipal, environmental and other water users,” said Rempe.

Delegates also passed resolutions opposing EPA’s practice of aerial flyovers of livestock farms for regulatory and surveillance purposes. The practice has been a point of contention for livestock farmers who are concerned about privacy and confidentiality of their farming operations.  Delegates showed support for new federal trucking regulations that alleviate some of the burdens on farmers and ranchers in the transportation of agriculture commodities and equipment and called on the state of Nebraska to take action to comply with the new federal requirements. The prospect of establishing a state beef checkoff program in addition to the national beef checkoff was also discussed by delegates. The body lent support to the concept, provided a referendum vote of cattle producers supported such a program, no checkoff dollars would be used for lobbying, and that the program would include refund provisions for those choosing not to participate. 

The House of Delegates also conducted elections for positions on Nebraska Farm Bureau’s Board of Directors. Delegates re-elected Mark McHargue of Central City to the position of first vice president, while also re-electing Nathan Bartels of Elk Creek and Don Benner of Central City and to the state board.  Bartels will continue to represent District 1 which covers Cass, Douglas, Gage, Johnson, Lancaster, Nemaha, Otoe, Pawnee, Richardson, Sarpy, and Saunders counties. Benner will continue to represent District 2 which covers Boone, Burt, Colfax, Cuming, Dodge, Merrick, Nance, Platte, Stanton and Washington counties.  Myles Ramsey of Kenesaw was newly elected to the position of District 5 director that represents Adams, Buffalo, Franklin, Greeley, Hall, Howard, Kearney, Phelps, Sherman, Valley and Webster counties.  



Anderson, Norman Family, Take Home Young Farmer and Rancher Awards

Nancy Anderson of Crawford was selected as the winner of Nebraska Farm Bureau’s 2013 Young Farmers and Ranchers Discussion Meet and Luke and Erin Norman of Crawford were named the recipients of the 2013 Young Farmers and Ranchers Excellence in Agriculture award. Both awards were given at the Nebraska Farm Bureau Federation’s 95th Annual Convention held Dec. 3-4 in Kearney.

Anderson received the top score of four contestants who advanced to the final round of the discussion meet contest. Rather than debating, contestants work to develop a solution to a problem being discussed, building on each other’s contributions. Competitors in the annual contest must be prepared to speak on any number of agriculture-related topics; the selected question is announced a short time prior to the contest round. Anderson teaches fourth grade at Chadron Public Schools and is involved in her family’s ranching operation.

Luke and Erin Norman were recognized for their ongoing involvement and commitment to agriculture. The Excellence in Agriculture Award is designed to recognize young farmers and ranchers for their contribution and involvement in Farm Bureau and agriculture. Candidates for the award are judged on their involvement in agriculture, leadership ability, involvement and participation in Farm Bureau and other civic, service and community organizations. Luke and Erin are the primary operators of the Norman Ranch in Dawes County. 

Candidates for the awards are restricted to Farm Bureau members ages 18-35. Winners of the awards receive $500, an iPad, and an all-expense-paid trip to the American Farm Bureau convention in Nashville, Tenn., in January to compete in the contests at the national level.



Aurora Cooperative Form Strategic Alliance with Curry Seed
Aurora Cooperative to Sell Curry Brand Seed Broad Portfolio of Genetics

The Aurora Cooperative and Curry® Seed announced today that they have formed a strategic alliance enabling the Aurora Cooperative to be an exclusive dealer of Curry brand seed in Nebraska and Kansas.

“We are excited to offer a diverse lineup of Curry brand hybrids to our growers,” said Al Perry, Aurora Cooperative Seed Product Manager. “Curry brand traits and options, along with the combination of expert agronomy services, modern technology and in-the-field, one-on-one service and consultations the Aurora Agronomy team can provide, will allow unmatched results for our growers.”

The Aurora Cooperative, a $1.1 billion company in sales, is a leading grain marketer and agricultural supplier with the majority of its 80 locations throughout communities in Nebraska and Kansas.

“Curry brand corn delivers dependability and consistency. Genetic diversity is a key feature for yield potential and performance against many diseases like Goss’s Wilt,” said Mark Kallsen, General Manager of Curry Seed.

The Curry lineup offers diverse germplasm across a three state area of Iowa, South Dakota and Nebraska. With access to major corn and soybean traits, the Curry brand offers a broad portfolio of genetics that will enable Aurora Cooperative customers to plant a more diverse lineup.



Over 1,100 Attend 94th Annual Farm Bureau Meeting

A diverse crowd of farmers, community and business leaders filled the newly-remodeled Vet's Auditorium this week to discuss animal welfare, water quality, changing markets and future trends at the Iowa Farm Bureau Federation (IFBF) 94th Annual Meeting held this week in Des Moines.

IFBF President Craig Hill told members that "Iowa farmers met many challenges in 2012 and thanks to their innovation, were able to overcome drought and market risks." The future-forward direction of the grassroots organization and Iowa's diverse farmers also brought several key leaders to the Annual Meeting. Governor Terry Branstad spoke to farmers about the fiscal cliff, regulations, and the newly-unveiled Iowa Nutrient Strategy Plan, which the Governor fully supports.

An in-depth discussion forum on the 2012 Nutrient Management Strategy drew capacity crowds at the IFBF meeting. Iowa Secretary of Agriculture Bill Northey, Iowa Department of Agriculture and Land Stewardship (IDALS) Dean Lemke and Iowa State University (ISU) scientist Matt Helmers led the discussion and answered many questions from farmers. The water quality plan provided several scenarios for conservation measures that would impact nutrient run-off in Iowa, and farther down the Gulf.

Secretary Northey said a science-based voluntary approach to conservation works best with all farmers. "I do believe now is the time for farmers to find these practices that work in our own operation, to figure out how we each can do a better job; this is voluntary, science-based, but it does not work if we don't put them on our farms. We want to tell the story that we are making progress. It's a better alternative than one size fits all regulation that limits choices," said Northey. Farmers were encouraged to familiarize themselves with the water quality plan and participate in the online public comment period by going to: www.nutrientstrategy.iastate.edu.

The 94th Annual Farm Bureau meeting also crew capacity crowds to hear keynote speakers Temple Grandin and Lowell Cattlett. Grandin, one of the nation's most-renown animal welfare and livestock handling facility designer, talked about the changing face of farming and consumer expectations of animal welfare. Her lively, off-the-cuff talk encouraged farmers to travel and 'see how the world sees you' when it comes to animal handling practices on the farm. She says today's farmers have 'made great strides' in how they care for their animals compared to the 70's and 80's when she first started working with farmers and slaughterhouses.

Economic 'futurist' Lowell Cattlett also energized the Farm Bureau crowd by talking about innovation in technology and health care, and how farmers are ideally positioned to 'blow the doors off' of expectations because of their knack for finding better ways to raise animals, grow crops or feed the world. He says one day, farmers may be using specially-equipped cell phones to analyze cattle and crop health.

The IFBF meeting brought education opportunities for farmers, celebrated innovation and also covered the business of the day, including leadership elections. For more information about IFBF's 94th Annual Meeting, including a detailed list of award winners, photos and IFBF President Craig Hill's Annual Meeting address, visit www.iowafarmbureau.com.



BQA Program Delivering Valuable Information to Producers

John Maas, veterinarian and beef producer from California and member of the industry’s Beef Quality Assurance (BQA) advisory committee, explains why the BQA program, funded in part by producer’s checkoff dollars, continues to be valuable to beef and dairy producers.  Maas says, “It’s important not only in my capacity as an educator but it’s important in the way we run our ranch. The significance of the Beef Quality Assurance program is that it’s alive – and by that I mean that it’s changing, and it changes relative to the opportunities and challenges that we see with our production systems here in the United States. To begin with, the Beef Quality Assurance program focused on a problem that we had with drug residues in our finished cattle. And quickly by scientific observations and the Beef Quality Audits and those types of tools, we found that we had other problems. And so we addressed them, and we’ve been addressing problems as we find them throughout the whole life of the BQA program. And we’ve ticked off a whole bunch of successes but that’s not where we’re stopping. We keep this whole program alive by continually doing the audits, taking the information from the audits and challenging ourselves to fix those problems as they come up."

Maas says the basic principles of the national program are tailored down to the on-farm level.  “The Beef Quality Assurance basics are going to remain the same – I mean the core part of the program about good feed, good water, good vaccine programs, prevention of disease problems, the way we use drugs, the way we prevent residues, the way we prevent injection site lesions – those things are going to be the core of it. The thing that really gets our producers excited is when we can then take that information and incorporate it into a problem that they’re having. Because this is a grassroots-driven program, we keep asking our producers exactly what are your problems this year, and then we’ll form a program around that and then go through the counties and deliver that information. And they really love that.”

Maas believes the success of the program starts with the changing mindset of the producer.  He says,  “Beef producers in the United States now accept almost universally that they don’t just market calves, they are raising food for somebody’s table. And because of the BQA effort, that has been an almost universal acceptance. And so it’s been so cool to see that taking of personal responsibility for making food for somebody versus the old-time attitude of ‘I just market my calves.’ And so that’s been a huge part of the sociology so to speak of the BQA movement.”



MyBeefCheckoff Gone Mobile!

Ever been at a trade show or at the auction market and needed access to information about your beef checkoff to share with a friend? Or have you had a conversation over the fence about who pays the beef checkoff and what it does for you as a producer?

Good news! It just got easier to get information on your smart phone or tablet. MyBeefCheckoff.com now has a mobile site offering all of the great information you’ve grown accustomed to on the full site. There’s no app to buy and little work involved. Just point your phone or tablet’s internet browser to www.MyBeefCheckoff.com and you’ll automatically access the mobile site on your phone and will be given the choice of going to the mobile site on your tablet.

Kim Brackett, Cattlemen’s Beef Board secretary/treasurer and beef producer from Buhl, Idaho, says she only uses her desktop computer once or twice a week for bookkeeping and the rest of her activity is done on her mobile phone or iPad.

“I use my phone because I’m always on the go. I don’t travel with my laptop anymore but still need quick access to information when I’m at a meeting or with kids at school or sorting calves in the corral,” says Brackett. “The mobile version of the site is so easy to navigate and it brings me up-to-speed immediately. As an officer, I feel the most useful tool on the site is evaluation information. This not only helps me know and understand where my dollar investment is going, but explain to fellow producers how their checkoff is helping to fund programs that are building beef demand.”



NCBA's Cattlemen's College® Lineup Set for Feb. 5-6 in Tampa

Now in its 20th year, the National Cattlemen’s Beef Association’s (NCBA) Cattlemen’s College® has established a reputation as one of the most thorough cattle producer education programs in the nation. Sponsored by Pfizer Animal Health, the 2013 edition of Cattlemen’s College® offers a wide range of informative, one of a kind hands-on educational workshops designed for cattle operations of every size and sector.

The program will be held Feb. 5-6, 2013, in Tampa, Fla., headlining the first day of activities at the 2013 Cattle Industry Convention and NCBA Trade Show. Early registration for Cattlemen’s College® and the convention ends Jan. 11.

Cattlemen’s College® workshops include an outstanding lineup of industry experts during the course of two jam-packed days. On Tues., Feb. 5, attendees will be able to participate in classes about reproductive technologies and low stress cattle handling principles. Learn how to put reproductive technologies to work in your cow-calf operations to enhance the performance and profitability of your herd, as well as learn about appropriate methods of moving cattle as a herd, penning techniques and pressure points in moving animals.

On Tuesday evening, Cattlemen’s College® participants will be treated to great Florida hospitality and enjoy an exciting night of ranch horse competition as the American Quarter Horse Association brings ranch horses to the Tampa bay. These cowboys and horses will show off their skills in reining, cow work and roping as they show the versatility, athleticism and willingness that make the American Quarter Horse the ultimate ranch tool.

Class begins bright and early on Wed., Feb. 6, with a keynote address by internationally respected futurist Dr. Lowell Catlett, who will educate the audience with his predictions for the long range outlook for the agricultural industry and factors that influence profitability and sustainability of beef cattle production. Sessions will go from 8:45 a.m. to 12:30 p.m., and include a cattle market update presented by CattleFax, preserving family relations on the ranch, weather predictions for 2013 and beyond, consumer attitudes toward beef and beef production, how to cope with drought and high feed prices, animal welfare issues and how to identify risk factors that affect your business’ bottom line.

“During Cattlemen’s College® producers not only have an opportunity to hear from some of the leading experts in topics that impact their cattle operations every day, but they also have the chance to interact with those experts and ask questions,” said NCBA Executive Director of Producer Education John Paterson. “Many of the presenters are legends in the beef industry, and the wide variety of classes offers something for every producer. We highly encourage cattlemen and women to take advantage of this informative and educational program."

Registration for Cattlemen’s College® includes all classes along with a two-hour lunch program on Feb. 6. This schedule allows cattlemen to attend up to five 45-minute workshops. Cattlemen’s College® registration also includes admission to the Cattle-Fax Outlook Seminar, which will be held on Fri., Feb. 9. Topics will include a detailed outlook for cattle and beef inventories and prices, the state of the cattle cycle, analysis of feed grain supplies and prices, a long-term weather outlook, global trade opportunities, and a discussion of emerging beef industry issues and trends.

Cattlemen’s College® registration information, as well as a complete schedule for the 2013 Cattle Industry Convention and NCBA Trade Show are available at www.beefusa.org.



Markets, Not Mandates, Shape Ethanol Production
Nathan Kaufman, Economist, Kansas City Federal Reserve 

The 2012 drought has reignited the food versus fuel debate. After cutting U.S. corn production below recent years’ consumption, the drought sparked a U.S. grain shortage and sent global food prices soaring. As the grain shortage intensifed, pressure to relieve the shortage by easing ethanol mandates mounted. Escalating ethanol mandates under the Renewable Fuel Standard (RFS), which fueled the expansion of the U.S. ethanol industry, will soon exceed the amount of ethanol than can be used in current U.S. gasoline blends. Some industry participants believe that a waiver of the mandate has the potential to reduce ethanol production and relieve high corn prices.

However, ethanol production may not decline signifcantly, even if the mandates are waived temporarily, a request the EPA recently denied for the 2013 mandate. The RFS mandates stipulate ethanol blending for the next decade. A temporary waiver would not relieve the pressure on current production to build credits to satisfy future mandates. In addition, the ethanol industry has become more market-based as production has exceeded the mandates in recent years. If energy prices rise faster than agricultural commodity prices, ethanol profts could expand and production soar regardless of mandated levels. Finally, ethanol is the primary octane enhancer and fuel oxygenate, and there are few alternatives for U.S. oxygenate blends. Thus, it is markets, not mandates, that ultimately will determine the scale of ethanol production and its use of scarce corn.

Click here to read the entire report... http://www.kansascityfed.org/publicat/mse/MSE_0512.pdf.  



NCGA Website Offers Just the Facts on Ethanol

The E15 blend of ethanol. Food and fuel. Energy security. Jobs in rural America. There is a lot of discussion about ethanol these days, and plenty of need for a look at the facts. That's why the National Corn Growers Association has created the EthanolFacts.com website as a simple place to get the facts and links to a lot more information about our favorite domestic renewable fuel.

"For years, NCGA has been at the forefront of promoting ethanol as an important choice for today's drivers, who are demanding fuels that are not only cleaner-burning, but powerful and made right here in the United States," said Chad Willis, a Minnesota corn farmer who serves as chairman of NCGA's Ethanol Committee. "EthanolFacts.com provides the key information to people who want to know the simple truth about a very complex subject so they can continue the conversation about how farmers are not only helping feed the world, but fuel it, too."

EthanolFacts.com was designed for simplicity and clarity on a number of platforms, especially mobile platforms such as tablets and smartphones. Do you like the portability of paper? NCGA also has a print-version Ethanol Facts pocket guide it updates regularly. Email your mailing address to corninfo@ncga.com to have a copy sent to you.



NASS Announces Annual County Estimates for Small Grains Will be Available December 13

The National Agricultural Statistics Service (NASS) will publish its 2012 county estimates for small grains on December 13.  NASS collected the information for these estimates at the end of the harvest season for barley, oats, winter wheat, durum wheat, and other spring wheat in 44 states. These county level acreage and production estimates help administer state and federal programs. The resulting data will be released online within the Quick Stats database only, http://quickstats.nass.usda.gov/.



Smithfield 2Q Earnings Plummet

Smithfield Foods Inc.'s (SFD) fiscal second-quarter earnings plummeted 91% as the pork producer recorded a large debt-extinguishment charge, while revenue edged down.

Smithfield -- whose brands also include John Morrell, Armour and Farmland -- has come under pressure recently from higher supplies and feed costs and weak domestic retail demand, although the company has maintained that exports have remained strong.

The largest U.S. pork producer by volume, Smithfield has taken positions in futures markets to control its costs for feed and, to a lesser extent, revenue from sales. The company previously said improving fresh pork results combined with robust packaged meats profitability and higher packaged meats volumes, as well as strong international segment profitability, should fuel strong results in fiscal 2013.

Thursday, Chief Executive C. Larry Pope characterized the quarter's results as "solid." He noted that "in addition to higher packaged meats margins, volumes improved on a year over year basis for the third consecutive quarter, growing by 2%." He said that volume and sales grew across all key trade channels, more than offsetting double-digit declines in the industrial business.

For the quarter ended Oct. 28, Smithfield reported a profit of $10.9 million, or seven cents a share, versus a year-ago profit of $120.7 million, or 74 cents a share. The most recent period included $120.7 million in early debt-extinguishment charges, translating to a per-share charge of 54 cents. The year-ago period included a similar charge of two cents a share. Excluding one-time items, earnings declined to 61 cents from 76 cents.

Sales slipped 2.6% to $3.23 billion.

Gross margin narrowed to 11.7% from 12.7% even as input costs fell 1.5%.

Total pork sales, the biggest contributor to Smithfield's revenue, edged down 1.9%. The hog-production segment's sales fell 6.5%, while Smithfield's international business recorded a decline of 8.3%.

Mr. Pope said that Smithfield expects hog prices to recover seasonally in the second half of the fiscal year and that analysts forecast record pork exports in 2013, "as lower global pork production and higher pork prices -- especially in the EU -- should bolster demand for U.S. pork."



EU Proposes Duty on US Ethanol

The European Commission today published a proposed rule on the registration of ethanol imports coming from the United States.

The proposed rule would impose a 9.6% duty on ethanol imported from the U.S., with the proposal in response to a request contained in an anti-subsidy case filed by the European Renewable Ethanol Association known as ePURE.

ePURE stated in a news release Aug. 24 with the rule the European Commission would have acknowledged the damage caused to the ethanol industry in the European Union by a significant increase of ethanol imports from the U.S. both in absolute terms and in terms of market share, and the negative affect that these imports have had on ethanol prices in the EU market and for EU ethanol producers.

As a result, EU ethanol production has been badly affected, leading to a critical financial situation for some EU ethanol producers and culminating in the temporary shutdown of several ethanol plants, the trade group added.

The U.S. Renewable Fuels Association, along with Growth Energy, two U.S. industry associations, criticized today's action by the European Commission.

"We continue to cooperate with the Commission's investigation," the statement said, adding the groups are "troubled by news that the Commission is recommending a 9.6 percent antidumping duty to its Member States."

The U.S. groups said they remain convinced that if all the facts are considered, the EU would decide to not impose the duties on U.S. imported ethanol.



Argentina Files Trade Complaints

Argentina filed complaints with the World Trade Organization Wednesday accusing the United States of erecting trade barriers against its beef and lemons, and the European Union of protectionist measures against its biodiesel.

Buenos Aires took the action "after trying to resolve bilaterally" disputes with the U.S. and the EU, Foreign Minister Hector Timerman said in a statement.

The trade barriers have caused "extensive damage" to Argentine producers and cost thousands of jobs, he added.

Argentina said it is hurt by U.S. trade measures purportedly intended to protect against hoof and mouth disease.

It defended the quality of its beef, which it said is produced at "extremely high sanitary standards," adding that it exported more than $731 million worth of beef around the world last year.

Similarly, its lemons are exported around the world, with trade totaling $172 million last year, it said.



Brazil 2012-13 Soy Pegged at 82.6 MMT
Brazil's Agriculture Ministry on Thursday refined its 2012-13 soybean crop forecast to 82.6 million metric tons (mmt) from a range of 80.1 mmt to 83.0 mmt.

Basically, favorable weather conditions have left the crop in good condition across the whole of Brazil's grain belt, the ministry's Food Supply Company (CONAB) said in its third report on the current crop.

CONAB pegged combined first- and second-crop corn production at 71.9 mmt, narrowing down from a range of 71.6 mmt to 72.9 mmt forecast in November.

First-crop output is seen rising 1.8% to 34.5 mmt, despite a 5.5% slide in planted area as farmers switched to soy.