Friday February 15 Ag News

Nebraska Cattlemen Voice Concerns about Furlough of Food Safety Inspectors

Nebraska Cattlemen voiced their concerns about the recent warning that budget sequestration could lead to a fifteen day furlough of Food Safety and Inspection Service (FSIS) inspectors by sending a letter to United States Department of Agriculture Secretary Tom Vilsack on Friday.

“Federal inspection is a vital component to the production of meat, poultry, and egg products,” said Nebraska Cattlemen President, Dale Spencer of Burwell Nebraska. “Production would cease without inspection, thus limiting if not ceasing consumers access to nutritious foods. The most important public interest is the continuation of food safety underpinned by FSIS inspection,” said Spencer.

Nebraska Cattlemen is encouraging livestock producers to contact USDA Secretary Vilsack and other elected officials about the issue and to voice their concerns about the importance of FSIS inspectors and their necessity in protecting life and health, and the role they play in the nation’s food safety operations.

“We recognize that budgetary restrictions brought on by sequestration present challenges requiring USDA to prioritize resources.  However, furloughing FSIS inspectors should not be among the considerations,” said Spencer.



Smith Assigned to Ways and Means Subcommittees on Trade and Health

Congressman Adrian Smith (R-NE) issued the following statement after being appointed to the House Committee on Ways and Means Subcommittee on Trade and the Subcommittee on Health:

“It is an honor to serve on the Committee on Ways and Means and I am excited to be assigned to the Subcommittee on Trade and the Subcommittee on Health.  These subcommittees offer a unique opportunity to represent the interests of the Third District during the 113th Congress as the U.S. negotiates new trade agreements around the world, and many of the most burdensome provisions of the 2010 health care law begin to take effect.   I also look forward to addressing comprehensive tax reform with the full committee to simplify the tax code for all Americans and encourage economic growth.”

The Committee on Ways and Means is the oldest committee of the United States Congress, and is the chief tax-writing committee in the House of Representatives.  Smith has served on the committee since January 2011.

The jurisdiction of the Subcommittee on Trade includes commodity agreements and reciprocal trade agreements; customs and customs administration (including tariff and import fee structure); budget authorizations for the customs revenue functions of the Department of Homeland Security, the U.S. International Trade Commission, and the U.S. Trade Representative; and special trade-related problems involving market access, export policy and promotion, and bilateral trade relations including trade with developing nations.

The Subcommittee on Health has jurisdiction over taxes and payments (from any source) relating to Medicare and all other health care and health delivery systems except Medicaid.



Irrigated Cropland Values Surge with Drought
Nathan Kaufman, Economist, Kansas City Federal Reserve

Persistent drought sparked a rush in irrigated farmland sales during the fourth quarter of 2012. Stronger sales vaulted irrigated cropland values in the District 30 percent above year-ago levels, with a 13 percent jump in the fourth quarter alone. Cash rental rates for irrigated cropland also surged more than 20 percent from a year ago, as landowners factored in high farm incomes on land with consistent access to water when renegotiating lease terms. Farmers were the predominant buyers of farm real estate and placed a premium on irrigated land due to water scarcity stemming from drought. Non-irrigated cropland and ranchland also posted strong annual gains between 20 and 25 percent.

Farmland values rose with stronger-than-expected farm incomes. High pre-harvest crop prices lifted incomes, especially for farmers on irrigated land, while crop insurance payments compensated for yield losses on non-irrigated land. A post-harvest decline in crop prices and strengthening cattle and hog prices improved livestock proftability as losses narrowed. Although fourth-quarter incomes were better than expected, bankers expressed concerns that drought could afect some areas further in coming months. Farm incomes were expected to drop in Kansas and Oklahoma, as pasture conditions generally remained poor due to ongoing drought. But strong farm incomes were expected to continue in areas with sufcient water availability.

During the fourth quarter, higher farm incomes boosted capital spending and led to improved agricultural credit conditions. Capital spending rebounded in the fourth quarter, although overall loan demand remained low. Expectations for capital spending in the coming months varied, however, in a pattern similar to farm incomes. Bankers generally expected that areas still experiencing drought would make fewer capital improvements in early 2013. Loan repayment rates increased at the pace of the previous year, and fewer banks reported making referrals to correspondent banks. Interest rates for both operating and real estate loans continued to edge down.

Click here to read the latest report...  http://www.kansascityfed.org/publicat/research/indicatorsdata/agcredit/AGCR4Q12.pdf) 



Sorghum U to Discuss New Grain Sorghum Marketing Opportunities in Nebraska

Industry insiders will present information on a wide variety of topics at Sorghum U on Feb. 19 from 10:30 am to 3:00 pm at the Holiday Inn and Convention Center in Kearney, Neb.

This event is the third in a series of farmer-focused grain sorghum meetings across the High Plains sponsored by the Sorghum Checkoff, Sorghum Partners, and High Plains Journal has added new sponsor Abengoa Bioenergy and will give producers an opportunity to explore the profitability and new market opportunities of grain sorghum.

Topics will range from new marketing opportunities, basic and advanced agronomics, using marginal transitional land, and other farm-level practices that will help increase producer profitability. The Environmental Protection Agency’s approval of grain sorghum as an eligible feedstock under the Renewable Fuels Standard opens up new markets in areas much like South Central Nebraska.

“We believe this new opportunity to produce advanced biofuel will increase demand for the crop and lead to greater profitability for producers across the nation,” said Sorghum Checkoff Renewables Director, John Duff. “Furthermore, it gives us great pride that these producers will play a key role in supplying homegrown advanced biofuel, and we look forward to supporting them in these efforts going forward.”

Part of that support is providing quality educational forums that encourage informal discussions between industry insiders and both experienced and new growers alike. The event will provide breakout sessions on water management, sorghum economics, sorghum agronomics, and new sorghum marketing opportunities.

To register for the event and to view a full schedule, visit www.SorghumU.com or call 1-855-422-6652. There is no charge to attend the event and lunch is included.



Agriculture Conference Focuses on the Future
Governor Dave Heineman

This week I joined farmers, ranchers, agribusiness leaders, and policymakers to celebrate the accomplishments and future outlook for Nebraska agriculture. The Governor’s Ag Conference is one of my favorite events. It was an even more special event this year because it was the 25th anniversary.

This conference offers an opportunity to talk about our state’s number one industry. The theme this year was “A Platform for Nebraska Agriculture’s Future,” and so subjects such as agricultural research, livestock development, federal policy, weather, and trade with China were all featured.

While I was impressed and inspired by the discussion in each session, the highlight this year was having former U.S. Secretary of the Treasury Hank Paulson present to discuss his vision for international trade and investment, and the United States’ and Nebraska’s positions in an increasingly global marketplace. Secretary Paulson has included Nebraska as part of The Paulson Institute, a “think- and do-tank” as he calls it, that is looking at global issues and has a particular focus on China.

We have been invited to serve as a member of the Agricultural Investment Experts Group of The Institute. Secretary Paulson told the Ag Conference participants that he sees opportunity for Nebraska to benefit from Chinese investment in value-added processing here as the country looks to feed its growing population. Opportunities particularly exist in agriculture, he said, because the sector generally has less political issues than other investment areas. Secretary Paulson encouraged Nebraska to continue its efforts on trade with China as its leaders look to diversify and modernize their model for food production.

The Ag Conference featured several other quality speakers. Tyson Redpath, a consultant with The Russell Group on food, agriculture and other policy issues, highlighted interstate commerce questions created by state ballot initiatives addressing livestock production practices. These concerns are important to consider in Nebraska where livestock production makes up half of our annual agricultural receipts and where livestock is a key market for our grains.

Following Mr. Redpath, Dr. Ronnie Green, vice chancellor of the Institute of Agriculture and Natural Resources at UNL, presented “Nebraska: Positioned to be the 2025 Global Epicenter of Food and Agriculture?” He carefully outlined Nebraska’s position regionally in the production of livestock, comparing numbers of beef cattle, swine and dairy cattle in several states. Dr. Green noted that while Nebraska generally is a leader, we are losing ground in some sectors compared to our neighbors. He encouraged conference attendees to have frank discussions about policies that may be holding Nebraska back from future livestock development and pledged the university’s support in such efforts.

Another key speaker included Dr. Roger Beachy, president emeritus with the Donald Danforth Plant Science Center. He focused on public sector research and emphasized how important such research is to the future success of agriculture.

Jerry Hagstrom, a well-known agricultural journalist who authors The Hagstrom Report, an analysis of agriculture issues in Washington, D.C., also spoke. He discussed the future of the Farm Bill, the impacts of the federal deficit on agriculture and trade policy.

Nebraska State Climatologist Al Dutcher gave conference attendees his best analysis of the potential for the ongoing drought to continue through this growing season. He cautioned farmers and ranchers that they need to prepare themselves to deal with ongoing dry conditions.

I want to thank all those who attended the 25th anniversary Governor’s Ag Conference. It was an outstanding event for our state’s number one industry.



2013 Spring Cover Crops and Crop Insurance Eligibility

Livestock producers who established a cover crop after corn harvest last fall are wondering how this will affect their crop insurance coverage for 2013, according to William Edwards, economist with Iowa State University Extension and Outreach.

Edwards has this information from program specialists at the Risk Management Agency (RMA) office in St. Paul (which administers programs in Iowa). “Cover crops such as rye, for example, that were established in 2012 are not insurable themselves,” Edwards said. “And they will not affect the insurability of subsequent crops planted this year if certain rules are followed.”

The RMA filed a statement for 2013 that allows spring haying, harvesting or grazing of cover crops up to May 10 without affecting the eligibility of the following grain crop for multiple peril crop insurance coverage. The growth of the cover crop must be terminated either mechanically or with herbicide before any subsequent crop can be planted. Planting a grain crop into a living cover crop is not permitted.

Edwards said the RMA definition of a cover crop is “a crop generally recognized by agricultural experts as agronomically sound for the area for erosion control or other purposes related to conservation or soil improvement.”

For further detail, check with your local crop insurance agent.



Koch Nitrogen Iowa, Kansas Plants Fined for Clean Air Violations

Koch Nitrogen Company LLC has agreed to pay a $380,000 civil penalty to settle alleged violations of the Clean Air Act at facilities in Iowa and Kansas.

Inspections of three of Koch's facilities in 2007 and 2009 revealed violations of the risk management program required by the Clean Air Act. The inspected facilities are in Fort Dodge and Marshalltown, Iowa, and Dodge City, Kan. The Fort Dodge and Dodge City facilities manufacture ammonia and urea-ammonium nitrate solution. The Marshalltown facility is a pipeline terminal at which anhydrous ammonia is removed from an interstate pipeline or from highway tank trucks and stored on the property.

As a part of the risk management program, facilities must develop a management system, assess hazards, develop a prevention program, address emergency response, and submit a risk management plan.

Inspectors found that the facilities had issues with the management system, had not fully implemented the prevention program requirements, had not adequately coordinated with local first responders, and failed to include all required information in the risk management plan.

"A proper risk management program is an important component of preventing accidental releases into the air of harmful substances and to reduce the severity of releases that do occur," said EPA Region 7 Administrator Karl Brooks. "This penalty sends a strong message to Koch and other companies that EPA expects adherence to all aspects of the Clean Air Act."

The consent decree is subject to a 30-day public comment period and approval by the federal court. Once it is published in the Federal Register, a copy of the consent decree will be available on the Justice Department website at www.usdoj.gov/enrd/Consent_Decrees.html.

As a result of this settlement, Koch Nitrogen has certified that it is in full compliance with Clean Air Act.



Iowa Farmers Who Host Tours Can be Liable

(AP) -- Farmers who host educational tours for the public are not shielded from personal injury lawsuits under a law meant to promote recreation on private lands, the Iowa Supreme Court ruled Friday.

The owners of a dairy farm in northeast Iowa can be sued by a woman who was injured when she fell through a hole in a hayloft while chaperoning a field trip, the court said in a 5-2 ruling that could have a broad statewide impact.

The Iowa Farm Bureau Federation had warned justices that allowing farmers to face liability in such cases would jeopardize hands-on educational tours in which they teach the public about food, animals and agriculture. Hundreds of school visits take place at Iowa farms every year, and owners who are worried about facing lawsuits may be unwilling to continue, the group argued in a friend-of-the-court brief.

At issue is the interpretation of a 1967 law that bars lawsuits against landowners who open their property to the public for recreational uses such as hunting, hiking and snowmobiling. The majority ruled that Iowa lawmakers never intended the law to bar legal claims for injuries suffered in a dairy barn while "frolicking in a hayloft as part of a guided tour."

The suit was filed in 2010 by Kimberly Sallee, who chaperoned her daughter's kindergarten class trip from Oelwein to a farm owned by Matthew and Diana Stewart. Students who visited would learn about a typical day on the farm, where they participated in activities such as riding a horse, feeding a calf, seeing a tractor and playing in a hayloft. The Stewarts supervised the activities.

Sallee climbed the ladder to the hayloft and unknowingly stood on hay bales that covered a hole in the floor. When the bales collapsed, she fell several feet and broke her wrist and leg. She filed a lawsuit against the Stewarts, alleging their negligence caused her injuries.

A district judge dismissed the lawsuit two years ago, ruling the Stewarts were immune from liability under the recreational use law. The students had engaged in horseback riding and the study of nature, activities specifically mentioned in the law, the judge found.

An appeals court overturned the decision last year, ruling 2-1 that the Stewarts were not immune because they were responsible for guiding the tour.

Justice Brent Appel, writing for the majority in Friday's opinion, said all states have laws that limit liability against landowners for recreational activities, but Iowa's was more limited than some others. He said Sallee was not participating in any of the specific activities covered by the law when she was injured.

The goal of limiting the law is to "avoid the absurd result" of applying the immunity so broadly that it would bar lawsuits over injuries at a backyard barbecue or a driveway basketball game, he wrote.

"The Legislature clearly has not empowered this court to expand or update the list of recreational purposes," Appel wrote. "While such an action might be supported by policy reasons, any such action must be taken by the Legislature, not by us."

But dissenting Justice Edward Mansfield said from its outset, Iowa's law was designed to encourage farmers to offer free recreational use of their lands and buildings. The decision "turns this law upside down" and takes away their long-standing legal immunity, he wrote.

Ray Walton, a Waterloo lawyer who represents Sallee, said the case would return for a civil trial in Fayette County, where he hopes to prove her claims. He said the ruling would only affect landowners who participate in the activities of their guests, such as leading tours, and would not affect those who simply allow hunting or fishing.

"It's a significant one for everybody in Iowa — people that have land and people that go on that land," he said. "I think the Iowa Supreme Court got it right."



Final Senate Ag Subcommittee Assignments Announced

Senator Debbie Stabenow (D-MI), chairwoman of the U.S. Senate Committee on Agriculture, Nutrition and Forestry, and Senator Thad Cochran (R-MS), the committee's ranking member, Thursday announced assignments for the committee's five subcommittees for the 113th Congress.

A full list of the subcommittees and member assignments follows here:

-- Subcommittee on Commodities, Markets, Trade and Risk Management -- Democracts: Donnelly (chair), Baucus, Heitkamp, Harkin, Brown, Gillibrand, Stabenow (ex officio); and Republicans: Chambliss (ranking member), Roberts, Boozman, Hoeven, Johanns, Cochran (ex officio).

-- Subcommittee on Jobs, Rural Economic Growth and Energy Innovation -- Democrats: Heitkamp (chair), Brown, Klobuchar, Bennet, Donnelly, Cowan, Stabenow (ex officio); and Republicans: Johanns (ranking member), Hoeven, Grassley, Thune, Boozman, Cochran (ex officio).

-- Subcommittee on Nutrition, Specialty Crops, Food and Agricultural Research -- Democrats: Cowan (chair), Leahy, Harkin, Brown, Gillibrand, Bennet, Stabenow (ex officio); and Republicans: Hoeven (ranking member), McConnell, Chambliss. Grassley, Thune, Cochran (ex officio).

-- Subcommittee on Conservation, Forestry and Natural Resources -- Democrats: Bennet (chair), Harkin, Klobuchar, Leahy, Baucus, Heitkamp, Stabenow (ex officio); and Republicans: Boozman (ranking member), McConnell, Chambliss, Thune, Roberts, Cochran (ex officio).

-- Subcommittee on Livestock, Dairy, Poultry, Marketing and Agriculture Security -- Democrats: Gillibrand (chair), Leahy, Baucus, Klobuchar, Donnelly, Cowan, Stabenow (ex officio); and Republicans: Roberts (ranking member), McConnell, Boozman, Johanns, Grassley, Cochran (ex officio).



State Ag Chiefs Spell Out Priorities for Farm Bill

The nation's leading state agriculture officials say their focus on a new Farm Bill will be on the programs and services that enable farmers and ranchers to more efficiently produce and market their commodities and livestock.

Members of the National Association of State Departments of Agriculture (NASDA) recently visited Capitol Hill in Washington, to discuss their ideas about the new farm legislation with members of Congress.

"One of our major concerns is continued funding for state-federal cooperative programs, such as dairy inspection, meat and poultry inspection, plant export inspection and animal health programs," said North Dakota Agriculture Commissioner Doug Goehring. "These programs, conducted by the states with federal funds, are critical to delivering services that maintain the safety of our food supply, protect the health and welfare of animal agriculture and ensure our commodities can be exported."

Goehring said the new Food Safety Modernization Act will likely put added responsibilities on state food inspection programs without any additional resources to implement the new provisions of the act.

NASDA members also voiced their support for USDA's Market Access Program (MAP) and other trade development programs

"Agriculture is one of the bright spots in the U.S. balance of trade and is vital to our nation's security," Goehring said. "Trade development programs, especially MAP, help U.S. producers, exporters and private companies conduct promotional activities for U.S. agricultural products in an increasingly competitive world market."

Other NASDA priorities for the Farm Bill include:
-- A robust and flexible specialty crop block grants program
-- Full funding and enhanced coordination of invasive species programs
-- Investment in locally-driven, flexible and efficient conservation programs
-- Protection of investments in critical research
-- A viable safety net for dairy farmers

NASDA is a nonpartisan, nonprofit association, representing elected and appointed commissioners, secretaries, and directors of agriculture in all 50 states and four U.S. territories.



Wicker/Vitter Legislation: E15 is the Answer, Not the Problem

Yesterday legislation was introduced by U.S. Senators Roger Wicker (R-Miss.) and David Vitter (R-La.) to block the introduction of E15.  In unveiling the bill, the Senators said the U.S. Environmental Protection Agency (EPA) had acted irresponsibly and predicted a negative impact on families and businesses should E15 be allowed into the marketplace.  Bob Dinneen, President and CEO of the Renewable Fuels Association (RFA), took issue with statements and the bill itself.

“Clearly the motivation behind the legislation introduced by Senators Wicker and Vitter is fueled by emotion and loyalty to home state oil constituents.  Now that ethanol represents ten percent of the American fuel supply and growing, oil companies are panicked. They are fighting to preserve their monopoly, their unfair and outrageously expensive tax credits, and most of all, their record breaking profits. Ethanol is no longer a gnat nipping at their precious ankles. It is a threat to the oil-centric status quo. The RFA and the ethanol producers we represent would welcome a chance to meet with Senators Wicker and Vitter to explain the benefits of E15 and dispel myths and any lingering doubts.

“The facts are these: E15 is the most tested fuel in history with over six million test miles driven and no faults found. Expanded E15 use means healthier people and a cleaner environment. Ethanol displaces many of the toxins and carcinogens found in traditional gasoline while delivering benefits such as a 35 to 49 percent reduction in greenhouse gas emissions. Senators who represent Gulf states certainly don't need to be reminded of the environmental hazards of oil production. They, in particular, should appreciate a fuel alternative that is biodegradable and water-soluble.

“If improving conditions for families and businesses is indeed a primary concern then ethanol is the answer, not the problem. Ethanol biorefineries are at their heart small businesses employing on average 30 to 50 people while creating opportunities for other local small businesses in surrounding communities.  In 2012, the ethanol industry created and supported 380,000 jobs across this country. Jobs that can’t be outsourced.  And as the next generation of ethanol comes online, additional jobs are being in created outside the Midwest in states like Mississippi.” Dinneen continued, “On the finer point of families, ethanol is providing the fuel choice consumers desire while also helping them save money.  Last year ethanol delivered a $1.09 per gallon savings, which translates into a meaningful annual savings of $1,200 per average American household.”

Dinneen concluded, “As for AAA and concerns about car warranties, one has to wonder why the alarm over a handful of gas stations offering E15 in the Midwest when hundreds of gas stations in numerous mountain states are offering sub-octane fuel, which knowingly violates vehicle warranties and has been proven by the auto industry to cause vehicle failures, is allowed to continue. Where is the federal legislation to protect American drivers from sub-standard gasoline? What role do oil companies and their powerful political dollars play in supporting and killing legislation, which impacts their well-lined pockets? Big Oil vs. Small Town Biofuels, the David and Goliath story never gets old. In today’s version, it is E15 that pains the giant.”