Thursday January 24 Ag News

Smith Cosponsors Regulatory Reform Bill

Congressman Adrian Smith (R-NE) made the following statement today after the Regulations from the Executive in Need of Scrutiny (REINS) Act was introduced by Congressman Todd Young (R-IN):

“Overreaching federal regulations continue to devastate Nebraska families, small businesses, and agriculture producers.  The REINS Act would serve as an important check on the growing power of the Executive Branch and ensure Congress is able to review new rules with the largest impact on our economy before they take effect.  I look forward to working with Congressman Young to pass this needed regulatory reform measure.”

The REINS Act would require new regulations with an annual economic impact of more than $100 million to be approved by a stand-alone vote in Congress and signed by the President before they are enforced.

Congressman Smith is an original cosponsor of the REINS Act.



Feb. 5 Workshop Focuses on Farm Estate and Transition Planning

Planning for the Future, a farm estate and transition planning workshop, will be held at the University of Nebraska-Lincoln's Agricultural Research and Development Center located near Mead on Feb. 5. Registration begins at 9 a.m. followed by the workshop from 9:30 a.m. – 3:30 p.m.

The workshop offers reliable, useful discussion of business, family and tax issues involved in passing on the family farm or ranch, and the legal tools that are used to address those issues.

Topics include: determining goals, family dynamics and expectations in a business setting, financial viability, the transfer process, estate and gift tax, inheritance tax, efficient methods of transfer, probate, wills, trusts, titling, basis, long-term care, Medicaid, powers of attorney and use of entities.

Dave Goeller, director, UNL North Central Risk Management Center and Beginning Farmer Program coordinator, and Joe Hawbaker, agricultural law attorney, will present the program. They will discuss preparing to make a plan, reviewing existing plans, being a good consumer of legal and estate planning services and what others have done and how their plans have worked.

There is no fee for this workshop, courtesy of the Nebraska Network for Beginning Farmers and Ranchers, the Farm and Ranch Project of Legal Aid of Nebraska, the Risk Management Agency of the USDA, Nebraska Department of Agriculture's Farm Mediation, UNL Extension and Saunders County Independent Bankers Association.

Lunch will be provided compliments of the Saunders County Independent Bankers Association.

To register or for questions call the Rural Response Hotline at 800-464-0258 or contact Keith Glewen, UNL Extension educator at 402-624-8030.



Scott Simmelink Named Group Vice President and CFO at Ag Processing Inc

Scott  Simmelink  has  been  named  Group  Vice  President  and  Chief Financial Officer (CFO) at Ag Processing Inc a cooperative (AGP). Simmelink, who has 30 years
of finance, accounting and business experience, succeeds Keith Spackler, who was appointed CEO by the
AGP Board of Directors on September 1, 2012.

“With  over  30  years  of  progressively  responsible  leadership  experience  in  accounting  and  financial management  for  both  Fortune  500  and  privately‐held  companies,  Scott  brings  an  excellent  blend  of budget  and  financial  administration, project  leadership,  and  sound business  expertise,”  said  Spackler. “Scott will make a great addition to our executive management team.”

Simmelink began his new position with AGP on  January 2. He was previously employed as Director of Financial  Services  with  Consolidated  Container  Company  in  Omaha.   He  was  responsible  for  various aspects  of  accounting,  financial  reporting,  cash management,  customer  and  equity  owner  relations, credit,  financial  compliance,  and other  financial  services.  Additionally, he was  extensively  involved  in numerous acquisitions and related financing.  His career also includes financial experience with Compaq
Direct, Inacom, Coleman Powermate, and Coleman Company, Inc.

Simmelink  has  deep  agricultural  roots,  being  born  and  raised  on  a  crop/cattle  farm  near  Lebanon, Kansas (just south of Hastings, Nebraska). He has a B.A. degree  in Finance/Business Management from Bethany College,  Lindsborg, Kansas. Scott and his wife  reside  in Waterloo, Nebraska. They have  three grown children and two grandchildren. 

Nogel Promoted to AGP V-P
Steve Nogel has been promoted  to Vice President of  the Renewable Fuels Group at  Ag Processing Inc a cooperative (AGP). Nogel, who has over 35 years
of experience in the petroleum  and  renewable  fuels  business  including  14  years  at  AGP, most  recently  served  as  Senior Director of the Renewable Fuels Group. He joined AGP as Director of Sales and Marketing.

“Steve  Nogel  has  provided  AGP  with  many  years  of  dedicated  service,  commitment  and  increasing responsibility  in  our  renewable  fuels  business,”  said  Cal  Meyer,  Group  Vice  President,  Processing, Refined Oils and Renewable Fuels. “We look forward to his leadership and business expertise
in his new position as Vice President of the Renewable Fuels Group.”

Prior  to  joining  AGP, Nogel  served  as  Vice  President  of  Sales  for  Power  Service  Products,  a  chemical company based  in Texas, where he worked  for 21 years. He holds a Master’s Degree  in Business  from Drake University in Des Moines, Iowa.

Steve and his wife, Pam, have been married for 30 years and reside in Omaha. They have three children: a
daughter in New York City, a son (married) in Omaha, and a son living at home.



Nebraska's Atkinson Ethanol Plant Sold to N.D. Bidder

An ethanol company's plant in northeast Nebraska has been sold at a public auction. NEDAK Ethanol's Atkinson plant was sold for $22 million at the Holt County Courthouse in O'Neill.  Choice Ethanol Holding of Fargo, N.D., bought the plant as the only bidder. It is unclear what will happen to the plant or to the company.  The plant uses approximately 19 million bushels of corn a year, and produces approximately 51 million gallons of denatured fuel-grade ethanol.  The company temporarily stopped production last May to monitor the corn and ethanol markets.



Many Farmers Indifferent to Sustainability While Customer Concern Grows

Do you know what sustainability means?  According to a recent soy-checkoff study, nearly 40 percent of farmers say they are unfamiliar with the term. United Soybean Board (USB) farmer-leader Mike Thede finds this concerning because many of U.S. soy’s customers consider sustainability especially important.

"Our customers are starting to ask how we are producing our products and if we’re doing it in a sustainable manner," says Thede, who farms in Palmer, Neb. "As we go forward, it will affect our bottom line if we aren’t doing things in a way that is deemed sustainable."

USB has compiled a robust set of data that demonstrates U.S. soy’s outstanding sustainability performance to customers. And USB recently joined the U.S. Soybean Export Council, American Soybean Association and several state soy checkoff boards in pledging continued sustainability improvement by the industry.

"U.S. soybean production is very sustainable," says Thede. "Most of the reports and studies the checkoff has done to compare different aspects of U.S. soy production and how that relates to sustainability have shown very good marks for the U.S. soybean industry."

The checkoff polls U.S. soybean farmers twice every year on issues important to the future of U.S. soy. A portion of the most recent survey gauged farmer awareness of sustainability, including these findings:
-    Over half of farmers (54 percent) say they’ve made changes to improve their farm’s sustainability performance.
-    More than seven out of 10 (72 percent) believe using sustainable farming methods will enhance their bottom line.
-    About eight of 10 (79 percent) say sustainable practices reduce pesticide use, increase soil fertility and reduce fuel use.

"One of the concepts that is a very big thing in sustainability is continuous improvement," Thede adds. "We need to continue to look at new innovation, new techniques, new varieties and, in the whole system, we have to develop practices that make us more sustainable as we move forward. Our customers are asking for that."



IFBF Hires New Public Relations Coordinator

Iowa Farm Bureau Federation (IFBF) welcomed Andrew Wheeler as its new public relations coordinator. The Pleasant Hill native begins his new role Jan. 29.  As public relations coordinator, Wheeler will work through media, social media and public event channels to connect farmers with a growing Iowa and national audience.

Wheeler earned his undergraduate degree from Drake University and a Master of Arts in Communications degree from Drury University in Springfield, Mo. Wheeler has more than a decade of public relations, writing and media engagement experience, both while serving in the Drury University Athletics communications department and as regional field director for the 2008 Mitt Romney Presidential campaign. Wheeler currently serves as assistant director for Kids Haven, a federally-funded academic mentoring program for Des Moines middle school students.

"I've long respected Iowa Farm Bureau for the many ways they connect today's farmers to consumers. I've always had a passion for Iowans and the strong character and values of its leaders. I'm looking forward to sharing the stories of Iowa farmers and the diversity and values they represent," said Wheeler.



Wind and Solar Energy Is Focus of Northwest Iowa Conference

A growing interest in alternative energy sources, sparked by soaring oil prices and the development of large wind farms, has raised many questions about wind and solar energy in northwest Iowa.

To address this important topic, a Wind and Solar Energy Conference will be held on Tuesday, Feb. 26 at the Sioux City Convention Center, 801 4th St., Sioux City from 9 a.m. until 3 p.m.  Iowa State University Extension and Outreach in Woodbury and Plymouth counties, along with other partner organizations, are presenting the conference.

“Iowa has become a national leader in the development of alternative energy sources, including the exciting fields of wind and solar energy,” said Sherry McGill, ISU Extension and Outreach regional director. “This conference will explore what is happening currently in wind and solar energy.”

The Wind and Solar Energy Conference will help business and industry leaders, home owners, individuals, farmers and schools better understand wind and solar energy today and explore the potential for the future. The conference will also provide additional information about alternative sources of electricity. 

A conference highlight will be Brent Nelson, senior planner for the city of Sioux City, presenting on the regulations regarding installation of wind turbines and solar panels in Sioux City.

An overview of wind and solar energy resources in Iowa will be given by Bill Haman, Iowa Energy Center industrial program manager. In addition, Jason Gideon from Kirkwood College will present how to install solar panels. 

Other topics to be covered include planning and zoning, real life wind and solar experiences, and financing options: loans, grants, tax benefits and rebates for Iowa’s expanding renewable energy industry.

Registration is $35 by Friday, Feb. 15 and includes morning refreshments and lunch.  Registrations received after the Feb. 15 deadline will be $45. Conference brochures, registration forms and additional conference information are available on the Woodbury County Extension website at www.extension.iastate.edu/woodbury.  For additional information please contact Sherry McGill at 712-276-2157 or mcgills@iastate.edu.

Businesses interested in being a vendor should contact the Woodbury County Extension Office at 712-276-2157.

Conference sponsors are the City of Sioux City, ISU Extension and Outreach-Woodbury and Plymouth counties, USDA Rural Development, MidAmerican Energy, Touchstone Energy Cooperatives of Western Iowa, Woodbury County Farm Bureau, Woodbury County Rural Economic Development and the Iowa Energy Center.  



Beef and Basketball Combines Information and Entertainment

Beef producers can get their fill of new beef technologies and information, followed by Iowa State University men's basketball at the third "Beef and Basketball" event in Ames on Feb. 23. Sponsored by Pfizer Animal Health, Iowa Beef Center, Iowa State University Extension and Outreach, and Iowa Cattlemen’s Association, the event includes three educational presentations, lunch from Hickory Park and attendance at the Iowa State men’s basketball game versus Texas Tech University.

ISU Extension livestock economist Lee Schulz will provide a 2013 beef cattle market outlook; new ISU Extension beef specialist Patrick Gunn will present, “Heifer and young cow management;” and John Rodgers from Pfizer Animal Health Technical Services will present, “New thoughts on cow-calf health and reproduction.”

ISU Extension beef specialist Joe Sellers said the cost for the entire event is just $15 per person, but those interested should act quickly because of limited availability.

“Preregistration is required by Feb. 15 and there is a limit of two tickets per operation,” he said.

People can RSVP with their local Pfizer representative or by calling Sellers at 641-203-1270 or Dan Loy with the Iowa Beef Center at 515-294-1058.



Pork Checkoff's Operation Main Street Celebrates Eight Years of Changing Perceptions

What started as a promising idea more than eight years ago has flourished as the Pork Checkoff's Operation Main Street (OMS) strengthens the farm-to-fork connection between producers and consumers.

"I got involved with OMS to make a difference in the way people outside the pork industry see us," said Nick Andersen of Clear Lake, Iowa, who owns LANA Enterprises, a wean-to-finish swine operation that produces 32,000 pigs each year. "I'm amazed at how many people are unaware of the way their food is produced. There is a real need for pork producers to answer questions and improve public relations with urban consumers."

In the past eight years, nearly 1,000 OMS speakers have given almost 6,000 speeches in 41 states, reaching more than 174,000 people. Across the nation, theses speakers have presented at 1,600 Lions Club meetings, 1,300 Rotary Club meetings, 1,200 Kiwanis Club meetings, 60 classes offered by university schools of veterinary medicine, 120 dietetic association gatherings and 140 county and state meetings of elected officials, including boards of supervisors.

"The best part is the question-and-answer session and making a difference in the way people think about pork and hog farmers," said Terry O'Neel, a corn and soybean grower who runs a 500-sow farrow-to-finish swine operation near Friend, Neb. "Most people are amazed on how things have changed and what goes on in modern pork production."
 
Speakers Help Make Farm-to-Fork Connection
O'Neel, who often travels 50 miles one way to speak with civic groups, high school culinary classes and school lunch specialists, says audience members often have questions about pork production.

"They want to know how many pigs a sow has, what breeds I raise and how long it takes for a hog to reach market weight," O'Neel said. "People are impressed at how pork production has advanced in technology through the years."

Pork's positive messages are reaching far beyond meeting rooms and classrooms. OMS presentations have generated more than 800 news stories with a reach of almost 29 million people.

Andersen, who has given nearly 50 OMS presentations, notes that pork producers raise larger, leaner hogs on 78 percent less land with 36 percent less feed and 41 percent less water than in years past. He has found audiences to be warm, friendly and accepting, even when he addresses controversial areas of pork production.

"This gives the audience permission to challenge me, and their questions are always cordial and respectful," said Andersen, adding that some audience members have questions about drug and hormone use in pork production.

"I use these opportunities to explain that our goal is to produce a safe, wholesome, dependable, economical supply of pork for the American family," said Andersen, who emphasizes that pork producers use no hormones, use medications judiciously and follow We CareSM principles to ensure animal well-being.

Many audience members are interested in pork recipes, and Andersen notes that pork can be cooked safely to an internal temperature of 145 degrees Fahrenheit, according to new U.S. Department of Agriculture guidelines.

Connecting farmers and consumers is a key benefit of OMS, says O'Neel, who would like to see specialized OMS presentations tailored to the next generation of consumers, including high school and college students.

"It's important that we create a dialogue with consumers not only to tell our story, but to better understand how people view our industry," O'Neel said. "We want consumers to know that pork farmers care deeply about our pigs, our employees and the land we live on."



Weekly Ethanol Production for 1/18/2013

According to EIA data, ethanol production averaged 792,000 barrels per day (b/d) — or 33.26 million gallons daily. That is up 8,000 b/d from the week before.  The four week average for ethanol production stood at 802,000 b/d for an annualized rate of 12.29 billion gallons.

Stocks of ethanol stood at 20.1 million barrels. That is a 1.4% decrease from last week.

Imports of ethanol showed 67,000 b/d, up significantly from last week.

Gasoline demand for the week averaged 354.1 million gallons daily.

Expressed as a percentage of daily gasoline demand, daily ethanol production was 9.39%.

On the co-products side, ethanol producers were using 12.009 million bushels of corn to produce ethanol and 88,390 metric tons of livestock feed, 78,800 metric tons of which were distillers grains. The rest is comprised of corn gluten feed and corn gluten meal.  Additionally, ethanol producers were providing 4.12 million pounds of corn oil daily.



Study Provides Important Insight into True Environmental Benefits of Ethanol

Corn-based ethanol may offer significantly lower greenhouse gas emissions than previously believed. This realization comes following the release of a recent study performed by U.S. Department of Agriculture researchers showing that corn grown using no-till methods may sequester larger amounts of carbon more deeply than previously known.

The study, which was published in BioEnergy Research, revealed that corn grown over a 10-year period using no-till practices sequesters carbon in the soil down to depths as far as 59 inches under the surface. Previous studies, which looked at depths of less than 11 inches or so, did not take into account carbon sequestration below tillage depths. In doing so, their findings missed more than 50 percent of the increase in soil organic carbon below that depth.

With this new information, models used to calculate and predict the environmental benefits or liabilities of corn production will be able to better reflect the actual impact. As the study shows an average annual increase in soil carbon of approximately 1.2 tons of carbon per acre, new models will likely show more accurately how corn-based ethanol offers a tremendous greenhouse gas emissions reduction when compared to petro-fuels.

"The findings of this study are important in that they demonstrate a previously overlooked environmental benefit of corn production in general and of corn-based ethanol in specific," said National Corn Growers Association Corn Board member Keith Alverson. "Estimates of the greenhouse gas savings corn offers over petro-fuels will undoubtedly show a more significant savings once data of this nature is factored into the overall analysis. Farmers are working harder every day to produce food, fuel and fiber sustainably as they actually improve the land through their growing practices. As scientists expand the pool of data, the positive impact of the biofuels produced from their crops becomes clearer also."

Soil organic carbon and its sequestration are important, because they affect both soil fertility and greenhouse gas fluxes.

The study, which also looked at switch grass, was the longest on-going effort to look at carbon sequestration by these two crops.

As with all scientific data, it is important to realize that this is one study with one set of conditions. Others soil conditions need to be evaluated for a further understanding of the variables impacting SOC and sequestration.



U.S. Grains Council Launches 2012 Online Annual Report

The U.S. Grains Council today launched its 2012 online Annual Report, available now at www.usgcAnnualReport.org.

The online report includes success stories from the year, video highlights, photographs, and market profiles from more than 25 countries and regions. Market profile pages display supply/demand charts, market growth potential and other information viewers may find useful, including highlights from Council programs in each country.

“Since the Council was founded 52 years ago, we have focused continuously on building markets and expanding trade opportunities for U.S. farmers and agribusinesses,” said Don Fast, USGC chairman.

“By promoting sound trade policies, building relationships between trading partners and being a reliable third-party resource, the Council and its members have enhanced food security and food choice for countless people around the world. This work is at the heart of our mission of Developing Markets, Enabling Trade and Improving Lives. The Council's global staff live and breathe it - and it makes us proud to witness their efforts.”

An exclusive feature of the online report provides access to downloadable spread sheets containing supply/demand data for more than 25 countries and regions that are provided on the individual market profile pages.

The online report is available on its own website, www.usgcAnnualReport.org, while the printed publication will be mailed to Council members. A downloadable form of the printed publication is also available online.



Commercial Red Meat Production Down from Last Year

Commercial red meat production for the United States totaled 4.00 billion pounds in December, down 5 percent from the 4.22 billion pounds produced in December 2011.

Beef production, at 2.02 billion pounds, was 5 percent below the previous year. Cattle slaughter totaled 2.54 million head, down 8 percent from December 2011. The average live weight was up 26 pounds from the previous year, at 1,323 pounds.

Veal production totaled 9.8 million pounds, 9 percent below December a year ago. Calf slaughter totaled 65,400 head, down 10 percent from December 2011. The average live weight was up 1 pound from last year, at 254 pounds.

Pork production totaled 1.95 billion pounds, down 5 percent from the previous year. Hog slaughter totaled 9.47 million head, down 5 percent from December 2011. The average live weight was down 2 pounds from the previous year, at 276 pounds.

Lamb and mutton production, at 12.8 million pounds, was up 3 percent from December 2011. Sheep slaughter totaled 189,700 head, 5 percent above last year. The average live weight was 135 pounds, down 4 pounds from December a year ago.

January to December 2012 commercial red meat production was 49.4 billion pounds, up slightly from 2011. Accumulated beef production was down 1 percent from last year, veal was down 9 percent, pork was up 2 percent from last year, and lamb and mutton production was up 5 percent.

State Information (million pounds, % of last year)
Nebraska ....:                 577.5              95     
Iowa ...........:                 548.2              92      
Kansas ......:                  410.3              98      



Apply for See for Yourself Program to Experience Checkoff Projects Firsthand

Ten U.S. soybean farmers will see firsthand how their checkoff investment works for them this summer as part of the soy checkoff’s annual See for Yourself program. The 2013 program takes place from July 21–27.

The soy checkoff invites all soybean farmers from around the country to visit USB’s website and apply. The application deadline is April 1.

"See for Yourself is truly exceptional," said David Hartke, chair of the USB Audit and Evaluation committee, which sponsors See for Yourself. "Farmer-participants have the chance to see the activities of their checkoff up close, and draw their own conclusions at the same time. It’s a once-in-a-lifetime opportunity."

Selected farmer-participants will visit several sites that demonstrate the soy checkoff’s efforts to improve the value of U.S. soy meal and oil; ensure soybean farmers and their customers have the freedom and infrastructure to operate; and meet the needs of U.S. soy customers.

Participants will first meet in St. Louis, headquarters of USB, to receive an overview of the organization and see how the checkoff works on behalf of soybean farmers domestically. The group will then travel to a location abroad to learn about the demand for U.S. soy internationally and to see some of the many uses for soy. Examples of what participants might see include the use of biodiesel at a major airport, the importance of soy to animal agriculture and the use of soy by the food industry. USB will cover all travel, lodging and meal expenses.

Kentucky soybean farmer Jonathan Miller encourages farmers to apply.

"The See for Yourself program was one of the greatest experiences of my life," says Miller, who participated last year. "I encourage farmers to learn more about what the checkoff’s doing on their behalf to improve their profit potential."



Dairy Situation and Outlook
Bob Cropp, University of Wisconsin Cooperative Extension

We enter 2013 with weaker dairy product prices and as a result, lower milk prices. The Class III price peaked in October of last year at $21.02 and declined to $18.66 for December and will be about $18.10 for January and about $17.25 for February. The Class IV price peak in November of last year at $18.66 and declined to $17.83 for December and will be about $17.50 for January and February. On the CME cheddar barrels started the year at $1.73 per pound but have declined to $1.60. Cheddar blocks started the year at $1.76 per pounds and have declined to $1.66. Butter which averaged $1.559 per pound in December declined to $1.4475 on January 10th, but showed strength in recent trading to now $1.505. Dry whey prices weakened slightly but are still in the $0.56 to $0.65 per pound range giving support to the Class III price.

Softer cheese prices may be explained by sales, exports and stocks. Wholesale and retail cheese buyers are waiting to see where prices bottom out before major new purchases. Cheese exports have also softened. Cheese exports during November were down 8% from November 2011, but for the year exports were still 17% higher and a record. Also cheese production has been increasing with November production of American style cheeses 3.8% higher than a year ago and total cheese production 1.8% higher. This higher production and fewer exports are reflected in cheese stocks. For American cheese December 31st stocks were 4.1% higher than November 30th, but yet 1% lower than a year ago. On December 31st total cheese stocks were 4.9% higher than November 30th, but, yet 0.4% lower than a year ago. With cheese sales remaining favorable cheese buyers will need to start to replenish inventories which could add to higher cheese prices and the Class III price by March or April.

Butter prices are not likely to increase much until later in the year. Butter exports for November were 22% lower than a year ago. Butter stocks increased 43% from November 30th to December 31st and are 20.1% higher than a year ago. Nonfat dry milk prices have shown slight weakness but are still in the $1.52 to $1.55 per pound range. Exports have been declining with November exports down 21% from a year ago. Forecast for world milk production and world dairy product demand points to a rather tight supply-demand situation as we move towards summer. This situation will offer opportunities for U.S. exports of nonfat dry milk/skim milk powder, dry whey and whey protein concentrates giving strength to these product prices. Higher nonfat dry milk prices will increase the Class IV price.

Where milk prices end up in 2013 will depend heavily on the level of milk production. Milk production reached 200.3 billion pounds last year for an increase of 2.1%. Milk cow numbers averaged 9.231 million head, 0.4% higher than the year before and milk per cow averaged 21,697 pounds, an increase of 1.65%. With feed costs remaining high and lower milk prices coming into 2013 returns over feed cost low remain rather tight for many dairy producers. The slaughter of milk cows averaged 6.1% higher in 2012 than the year before, the highest level since 1986. The effect of higher feed costs on dairy cow slaughter is more evident on regions that purchase more of their feed than grow their own forages and grain. Milk prices also averaged lower in regions that purchase most of their feed. As a result, dairy cow slaughter was higher than a year before in the Southwest and Northwest while lower in the Upper Midwest. We can expect dairy cow slaughter to remain relatively high and at a level to decrease the number of milk cows for at least the first half of the year with the average herd size for the year ending up lower than 2012. Continued rather tight margins will also slow increases in milk per cow. The net result may be little or no increase in total milk production over that of 2012 for the year. USDA is forecasting no increase. But, so crucial to exactly where milk production ends up in 2013 will be how 2013 crops turn out and resulting feed cost for the last half of the year. Existing drought conditions for much of the U.S. remains a concern.

USDA’s latest report on December milk production however shows milk production picking up rather than decreasing. After dropping below year ago levels for the months of August, September and October U.S. milk production was 1.2% above a year ago for November and 1.6% above for December. Milk cow numbers had peaked in April and declined by 85,000 head by October. But, despite higher cow slaughter the ample supply of dairy replacements resulted in milk cow numbers increasing by 11,000 head in November and 16,000 head in December. December milk cow numbers were just 0.1% fewer than a year ago and milk per cow improved to a 1.7% increase over a year ago.

The increase in December milk production continues to be due to relatively strong increases in the Northeast and Upper Midwest states while production continues to decrease in the West. In the Northeast, compared to a year ago, December milk production was up 4.2% in New York, 1.2% in Pennsylvania and 5.5% in Michigan. While Michigan added cows most of the increase in these states was due to more milk per cow. In the Upper Midwest milk production was up 4.4% in Minnesota, 2.9% in Iowa and 5.5% in Wisconsin. Both Iowa and Wisconsin added cows along with increases in milk per cow. All of the increase in Minnesota was due to more milk per cow. In contrast for the West milk production was 0.3% lower in Arizona, 2.3% lower in California, 0.3% lower in New Mexico and 0.7% lower in Texas. These declines were the effect of fewer cows, except California’s cow numbers were unchanged and less milk per cow. Idaho remained the exception with 1.0% more milk all due to more milk per cow.

With recent weakening of cheese prices Class III futures also declined. Current Class III futures decline to $16.92 for March and don’t reach $18 until May and peak in August at $18.77. But, there still is a high probability that Class III prices will end up higher than this. Class III prices even approaching $19 by late summer and fall is still possible. Class IV prices may also be near $18.00 by March and perhaps reaching $18.55 by summer or fall. These prices can all change rather quickly with any major differences in any of the following factors –milk production, domestic sales or exports from what we now think will happen. But, for these higher prices the pattern of milk production needs to change from the increases experienced during November and December. But, as of now it still looks like 2013 prices could end up averaging more than $1.00 higher than each of the 2012 averages of $17.44 for Class III, $16.01 for Class IV and $18.52 for the U.S. average all milk price.



Big Crowd Expected at New Heart of America Dairy Expo

Over 400 people are expected to attend the new, multi state, regional Heart of America Dairy Expo and trade show Friday and Saturday at the Ramada Oasis Hotel and Convention Center in Springfield, Missouri.  It is open to all dairy farmers and allied industry.

"The response has been tremendous to our new Expo with attendees coming from 10 states," says Dave Drennan, Expo Sales Manager.

"In addition, we sold out our trade show in this first year," says Drennan.

The Expo kicks off with an early bird seminar tonight at 7:30 p.m. with "Ways to Reduce Risk for Dairy Farmers" by Dr. Scott Brown with the University of Missouri.  "Volatility facing U.S. dairy farmers remains at unprecedented levels.  This discussion will provide farmers with some alternative tools to incorporate in their operations to reduce the risks they face today," says Dr. Brown.

"The Friday morning, January 25,  Expo program kicks off at 9:30 a.m. with Dr. Max Hawkins of Noblesville, Indiana, who will present "Nutrition Technology Opportunity in a Challenging Crop Year," says Drennan.  "Dr. Hawkins was raised on a grain/livestock farm in Illinois that included cattle feeding, cow/calf production, and purebred swine and sheep.  Prior to joining the Dairy Technical Staff at Alltech he worked in the feed industry in technical sales positions with Hubbard Feeds and Micron Bio-Systems.

"Following Dr. Hawkins will be Dr. Michael K. Moore, DVM, Novartis Animal Health, addressing "Are Your Vaccinations Causing Reproduction Problems".  Dr. Moore’s involvement with Novartis has given him the opportunity to present programs to veterinarians and producer groups.  He has been active in training new territory managers on subjects ranging from basic immunology to various cattle diseases.

"The Friday morning Expo program concludes with Rick Short of Central Life Sciences from Romance, Arkansas discussing "Heifer Mastitis-Economics, Prevention, Treatment".

"During Friday's luncheon, sponsored by Hiland Dairy Foods, Missouri Agribusiness Association, Missouri Pork Association and Purina Animal Health, Dr. Scott Brown of the University of Missouri will present a "Market Outlook--What's in the Cards for Dairy," says Drennan.   "From record highs to record lows, the 2013 outlook for the dairy industry remains clouded given the many uncertainties in the marketplace today.  The focus of this session is to highlight those issues that will be the drivers in setting the 2013 outlook for the dairy industry," says Dr. Brown.

"Following a top producer panel will be Dana Brooks, Senior Vice President of Government Relations for the National Milk Producers Federation (NMPF) in Washington DC.  Brooks will speak to "Dairy Policy--Where Do We Go From Here?" says Drennan.

"After reaching monumental consensus across the country for a new dairy policy with the Dairy Security Act proposed in the Farm Bill, dairy farmers expected Congress to act quickly and pass a new Farm Bill.  Now with only a one year extension, Brooks will present legislative options based on her experience with NMPF since 2009 in the day to day politics of Washington," says Drennan.

"Missouri's five dairy breed organizations will hold their annual meetings and board meetings Saturday morning January 26 followed by a luncheon, sponsored by the Association of Missouri Electric Cooperatives and the Missouri Soybean Program, which concludes the Expo.

"Walk-ins are welcome.  Registration is free for dairy farmers and their families.  Allied industry registrations are available for $40.00 for the two day Expo unless they are an exhibitor or sponsor of the Expo," says Drennan.

"Hotel reservations for the Expo may be made online at oasis@springfieldoasis.com or by calling 417/866-5253 or 888/532-4338 and ask for the special Heart of America Dairy Expo rate.

"All dairy farmers and allied industry are welcome to join us at the Expo, and also take in the many attractions at Branson which is only 45 miles from Springfield."



Dairy Study Reveals Improved Immune Response with MINTREX® Chelated Trace Minerals

A recent university study of early lactation dairy cows revealed improved immune response when treated with MINTREX® chelated trace minerals from Novus International, Inc. Cows fed MINTREX were able to generate an elevated antibody response to a pathogen, which better enabled them to fight infection. The study was published in the August edition of Journal of Dairy Science.

The trial was conducted at the University of Delaware with the objective to compare performance, plasma and milk mineral levels, and to measure innate and adaptive immune function in early lactation cows fed copper (Cu), manganese (Mn) and zinc (Zn) by either inorganic trace minerals or MINTREX chelated trace minerals.

Twenty-five Holstein cows were assigned to two groups, based on calving date, to a 12-week randomized complete block design study. The first group had greater days in milk (DIM; 77 DIM at start of study) than the second group (32 DIM at start of study). Cows were randomly assigned to one of two dietary treatments: supplementation of Cu, Mn and Zn through inorganic trace minerals or MINTREX chelated trace minerals. A rabies vaccination, administered at week 8, was used as a model vaccination to allow for exposure to a novel antigen and elicit a primary vaccine response.

Cows supplemented with MINTREX showed a more robust antibody response to the model vaccination. They also showed numerically increased neutrophil phagocytosis, which means the animals' white blood cells were better able to ingest bacterial pathogens. Additionally, increased levels of copper were seen in milk concentrations of cows fed MINTREX, demonstrating a higher bioavailability than inorganic minerals.

"Trace minerals have traditionally been fed as inorganic compounds such as sulfate salts," commented Dr. Geoff Zanton, Global Dairy Research Manager, at Novus. "Organic forms of Cu, Mn and Zn, as is found in MINTREX chelated trace minerals, increase intestinal absorption and mineral bioavailability. This study affirms that cows fed MINTREX are healthier and better able to perform optimally."

The trace minerals Cu, Mn and Zn are required to support a dairy cow's immune system. A deficiency in trace minerals, especially Zn, can negatively affect a cow's immune function and natural ability to fight off infection. When that happens, the animal is more susceptible to disorders and lower overall performance. The superior bioavailability of MINTREX chelated trace minerals assures that the mineral is available for absorption by the cow rather than passed through the digestive system. Once absorbed, the mineral can be put to use in areas such as the immune system, helping the cow to stay healthy and productive and ultimately improving the producers' bottom line.



FDA Approves Bayer's Baytril® 100 (enrofloxacin) Injectable for Additional Swine Respiratory Disease (SRD) Pathogens
Baytril® 100 (enrofloxacin) Injectable, manufactured by Bayer HealthCare LLC, Animal Health division recently received FDA approval for treatment and control of swine respiratory disease (SRD) associated with bacterial pathogens Mycoplasma hyopneumoniae (M. Hyo) and Bordetella bronchiseptica (B. bronchiseptica).

"M. hyo causes mycoplasmal pneumonia of swine (MPS), or enzootic pneumonia, throughout the world and can become problematic if left untreated," said Dr. Andy Holtcamp, Bayer senior veterinarian, technical services. "These recent FDA approvals for Baytril 100 to treat and control SRD associated with M. hyo and B. bronchiseptica now provide swine producers and veterinarians a powerful tool to treat and control six major swine pathogens."

The endemic, contagious respiratory diseases caused by M. hyo and B. bronchiseptica are spread by nose-to-nose contact, contaminated water or feed, as well as transmission from sows to piglets. Symptoms can include dry coughing, impaired growth rate and poor feed conversion. Secondary bacterial or viral infections commonly follow, which can result in more severe SRD.

"As a company, Bayer HealthCare Animal Health division is committed to providing quality solutions to the problems swine producers and swine veterinarians experience on an on-going basis," said Cary Christensen, DVM, Director, Food Animal Business Unit, Bayer. "These latest FDA approvals fortify the strength we continue to observe with Baytril® 100 for treatment and control of SRD in swine herds."

Baytril 100 is an effective treatment tool in pigs which are eight to 12 weeks along in the finishing stage to help knock down the "10-Week Wall" of respiratory disease. In addition, producers may use Baytril 100 as a health management tool to control SRD in the nursery and the farrowing barn.

Baytril 100 is the only approved fluoroquinolone class of products labeled for use in swine. It is bactericidal, which is a term used to describe classes of drugs that reduce bacterial populations. Many other antibiotics are bacteriostatic, which do not kill bacteria but inhibit bacterial growth. Due to the mode of action of Baytril 100, it kills six major swine respiratory disease-causing bacteria in both the resting and growth phases of bacteria development by essentially killing the "heart" of the bacteria. Baytril 100 is approved for treating and controlling SRD associated with the following pathogens: Mycoplasma hyopneumoniae (M. hyo), Bordetella bronchiseptica (B. bronchiseptica), Actinobacillus pleuropneumoniae (APP), Pasteurella multocida, Haemophilus parasuis and Streptococcus suis.

For more information about Baytril 100, call Bayer Veterinary Services at +1 (800) 422-9874 or visit http://www.Baytril100.com.

Federal law restricts this drug to use by or on the order of a licensed veterinarian. Extra-label use of this product in food-producing animals is prohibited. Animals intended for human consumption must not be slaughtered within 5 days of receiving a single-injection dose.



Milling Course Makes Critical Connection between Production and Products
Casey Chumrau, USW Market Analyst

Last week I had the opportunity to attend the Introduction to Flour Milling course, a collaboration between the International Grains Program (IGP) at Kansas State University and the International Association of Operative Millers. The five-day course covered the principles of flour milling, the art of flour blending and the effect wheat quality has on milling and baking. The course is designed for people like me who need to understand the basic process but are not mill operators. I was one of 20 students who were managers, flour sales representatives, grain traders, breeders, food safety experts and newly hired milling company managers.

The recurring theme of the course was the importance of consistent quality. We learned that millers want a consistent wheat quality for grinding and bakers want consistent flour quality. The United States is fortunate to produce very diverse wheat crops. An ideal class of wheat for every type of product grows here. Thanks to productive farmers and a sophisticated, efficient supply chain, including the Federal Grain Inspection Service, the world’s wheat buyers and millers have the tools they need to adjust specifications every year to effectively manage the usually slight seasonal variations in U.S. wheat quality.

It quickly became clear to me that flour milling is a complex process. At U.S. Wheat Associates (USW), we always stress that wheat is not just wheat. This course showed me that flour is not just flour, either. The range of flour products the world’s bakers demand is growing larger almost every day.

I saw that professional millers must be experts in making technical adjustments and in blending products to provide a quality product based on understanding their raw material, the wheat, and how their customers extract value from it. A baking lab experiment during the course showed me how important the type of flour is to its performance in different bakery products. We saw that using bread flour caused cookies to be flat and pastry flour resulted in small bread loaves. Milling courses like these provide an opportunity for the entire value chain to gain greater insight into their customer needs.

Fortunately for me and for customers around the world, USW is committed to educating its employees to better understand the needs of our customers and the challenges they face. I was familiar with wheat production (and an expert in consuming wheat foods), but now I better understand the milling process that helps connect the two. I am more confident now that our customers can trust and rely on USW and its associates to help them get the most value possible from U.S. wheat.



DuPont Releases Quarterly Earnings Report

Chemical and bioscience company DuPont saw its fourth quarter profit plunge, the company said on Tuesday, amid weakness in its performance chemicals and electronics and communications businesses, coupled with costs associated with attempts to jumpstart growth. Still, the results beat the consensus estimate of Wall Street analysts of 7 cents per share. Its shares rose 91 cents, or 1.9 percent, to $47.90 in pre market trading.

The company reported net income for the quarter ending Dec. 31 of $111 million, or 12 cents per share, excluding significant items, compared to net income of $373 million, or 40 cents per share, for the fourth quarter of 2011.

Net sales for the quarter matched the prior year's figure of $7.3 billion, partly offset by a negative currency impact and a small reduction in shifts in DuPont's portfolio, the company said.

The company also provided a 2013 earnings forecast that was above market expectations. The company said 2013 earnings per share would be between $3.85 and $4.05. Analysts had forecast 2013 earnings per share of $3.84. Its 2013 revenue forecast however was in line with expectations of $36 billion.