Friday February 22 Ag News

NEBRASKA CATTLE ON FEED DOWN 4 PERCENT 

Nebraska feedlots, with capacities of 1,000 or more head, contained 2.47 million cattle on feed on February 1, according to the USDA’s National Agricultural Statistics Service, Nebraska Field Office. This inventory was down  4 percent from last year.   Placements during January totaled 475,000 head, up 10 percent from 2012.   Fed cattle marketings for the month of January totaled 470,000 head, up 19 percent from last  year.  This  is  the  highest  January marketings  since  the  data  series  began  in  1994.  Other disappearance during January totaled 15,000 head, equal to a year ago.

United States Cattle on Feed Down 6 Percent
Cattle and calves on feed for slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 11.1 million head on February 1, 2013. The inventory was 6 percent below February 1, 2012.

Placements in feedlots during January totaled 1.88 million, 2 percent above 2012. Net placements were 1.80 million head. During January, placements of cattle and calves weighing less than 600 pounds were 445,000, 600-699 pounds were 395,000, 700-799 pounds were 535,000, and 800 pounds and greater were 501,000.

Marketings of fed cattle during January totaled 1.92 million, 6 percent above 2012.  Other disappearance totaled 79,000 during January, 2 percent below 2012.

2012 Cattle on Feed and Annual Size Group Estimates
Cattle and calves on feed for slaughter market in the United States for feedlots with capacity of 1,000 or more head represented 83.8 percent of all cattle and calves on feed in the United States on January 1, 2013, down from 84.0 on January 1, 2012.

Marketings of fed cattle for feedlots with capacity of 1,000 or more head during 2012 represented 88.6 percent of all cattle marketed from feedlots in the United States, up from 87.7 percent during 2011.



West Point Chamber's Ag Appreciation Event is March 19th

This year’s Ag Appreciation event will be held on Tuesday, March 19th, which is also National Ag Day! This year’s event will have a day and evening program at the Nielsen Community Center in West Point. Thanks to KTIC and 107.9 The Bull, Andrew McCrea, farmer and rancher…popular author…nationally syndicated radio broadcaster, will provide a 90 minute interactive workshop on the future trends in agriculture during the afternoon and will return in the evening to entertain the audience with “Traveling the Countryside: Lessons from the Land.”  Here's the schedule for the day...

12:00p: Doors Open, lunch will be served
12:30p: John Feller Presentation on Succession Planning
1:00p: Andrew McCrea Workshop
3:00p: Dismiss
6:00p: Doors open for evening social
7:00p: Dinner is served
8:00p: Entertainment by Andrew McCrea
8:30p: Door prizes

They will again be serving pork and beef sandwiches in the evening and giving away lots of door prizes from our sponsors.  If you are interested in sponsoring the 2013 Ag Appreciation event or would like to get more information, please contact the West Point Chamber office at 402-372-2981.



Butler County Ag Expo is Tues Feb 26 in David City

Butler County Chamber of Commerce invites you to the 2013 Butler County Ag Expo on Tuesday February 26th.  Activities include pesticide certification and training at the Hruska Library at 9am, Exhibits at the David City Auditorium from 10:30 to 3pm, Guest Speakers from 11:45am to 1:00pm, Nitrogen and water training at the Hruska Library at 1:30pm, and door prizes, drawings, and give-aways from noon to 1pm.  Exhibit booths are availabe.  Call Mandie at the Butler County Chamber for more information at 402-367-4238. 



New USGS Report Updates Decline of High Plains Aquifer Groundwater Levels

The U.S. Geological Survey has released a new report detailing changes of groundwater levels in the High Plains Aquifer. The report presents water-level change data in the aquifer in two separate periods: from 1950–the time prior to significant groundwater irrigation development–to 2011, and 2009 to 2011.

In 2011, the total water stored in the aquifer was about 2.96 billion acre-feet, an overall decline of about 246 million acre-feet (or 8 percent) since pre-development. Change in water in storage from 2009 to 2011 was an overall decline of 2.8 million acre-feet. The overall average water-level decline in the aquifer was 14.2 feet from pre-development to 2011, and 0.1 foot from 2009 to 2011.

The study used water-level measurements from 3,322 wells for pre-development to 2011 and 7,376 wells for 2009 to 2011.

The High Plains Aquifer, also known as the Ogallala Aquifer, underlies about 112 million acres (175,000 square miles) in parts of eight states Colorado, Kansas, Nebraska, New Mexico, Oklahoma, South Dakota, Texas, and Wyoming. The USGS, at the request of the U.S. Congress, has published reports on water-level changes in the High Plains Aquifer since 1988. Congress requested these reports in response to substantial water-level declines in large areas of the aquifer.

This multi-state, groundwater-level monitoring program has allowed water-level changes in all eight states to be tracked over time and has provided data critical to evaluating different options for groundwater management. This level of coordinated groundwater-level monitoring is unique among major, multi-state regional aquifers in the country.

The report "Water-Level and Storage Changes in the High Plains Aquifer, Predevelopment to 2011 and 2009–11" is available online.



Get To Know The Department of Natural Resources
Governor Dave Heineman

Water is Nebraska’s most precious natural resource and during the last few years we have experienced both extreme flooding and prolonged drought. I would like to share with you the work of the Nebraska Department of Natural Resources and their dedication to the sustainable use and proper management of our water and related land resources.

The Department’s staff of over 100 is directed by Brian Dunnigan and has major responsibilities for regulating the use of the waters of our streams (also referred to as surface water administration), directing interstate compacts and decrees, conducting a stream gaging program, implementing floodplain management programs, inspecting dams and reviewing plans for dam safety, administering state water resources funds, and general water planning activities. The Department maintains field offices in Bridgeport, Cambridge, Ord, Norfolk, and Lincoln that provide a local point of contact for many water right holders.

Nebraska has issued approximately 8,200 surface water use and reservoir storage permits. They are issued for a variety of uses, including irrigation, municipal uses, power generation, and manufacturing. The Department is responsible for administering these water rights ensuring that the oldest rights receive their water first in times of shortage.

The Departmental efforts that have been high profile in recent years have been those dealing with interstate compacts and decrees. The Department has specific responsibilities related to the Blue River Compact, the North Platte Decree, the Platte River Recovery Implementation Program, the Republican River Compact, the South Platte Compact, and Upper Niobrara Compact. The Department is committed to meeting those responsibilities.

When the Department determines that a river basin or a portion of a river basin has water uses and supplies that are not balanced, the Department works with the local natural resources district (NRD) to develop plans that address the uses of surface water and groundwater. These integrated management plans can also be voluntarily initiated by an NRD. The plans are designed to sustain a balance between water uses and supplies to maintain the economic viability and social and environmental health, safety, and welfare of the basin. The actions required in those plans are also consistent with Nebraska meeting its interstate obligations.

In support of integrated water management and other state water activities, the Department conducts various planning, engineering, water use and hydrologic studies, and modeling. The Department also maintains extensive natural resources data on its website and is developing a sophisticated, new tool called INSIGHT, an Integrated Network of Scientific Information and GeoHydrologic Tools. This tool will provide the citizens of Nebraska with a wide array of information on water supplies and water uses throughout Nebraska. INSIGHT will be a unique tool and a model to follow amongst the western states. Nebraska’s future depends on our efficient management of our water and land resources.



Wellman Makes Keynote Speech at World Soybean Research Conference

ASA Chairman Steve Wellman from Syracuse, NE, presented an overview of soybeans in the U.S. at the World Soybean Research Conference in Durban, South Africa on Feb. 19. More than 500 participants from around the globe have gathered for the ninth quadrennial conference.

University of Illinois’ National Soybean Research Laboratory Assistant Director Bridget Owen put together two days of breakout sessions on Human Applications, and both ASA’s World Initiative for Soy in Human Health (WISHH) and the World Soybean Foundation (WSF) have speakers as well.

Wellman was part of a team of travelers including Michigan Soybean Board Vice Chair Ben Chaffin, Solae Senior Manager of External Affairs and WSF board member Kent Holt and WISHH staff members Jim Hershey and Josh Niederman. The group drove from Pretoria—after meetings with the U.S. Department of Agriculture and U.S. Agency for International Development—to Durban, stopping in soybean and corn farming country along the way.



ASA/WISHH Ships 25 MT of Soybean Meal to Pakistan

ASA’s World Initiative for Soy in Human Health (WISHH) program shipped 25 metric tons of U.S. hi-pro soybean meal to Pakistan this month. The soybean meal will be utilized in the production of floating fish feed by Pakistani company Oryza Organics. WISHH is partnering with Oryza Organics as part of the three-year FEEDing Pakistan program funded by the U.S. Department of Agriculture.

WISHH and Oryza have worked together to purchase a U.S.-manufactured extruder that will arrive in Pakistan in March. The high protein floating feed that Oryza will produce with U.S. soybean meal will be the first produced locally in Pakistan. The floating feed has the capacity to greatly impact the aquaculture industry in Pakistan.



USDA Cold Storage Report Highlights Feb 22, 2012

Total red meat supplies in freezers were up 7 percent from the previous month and up 2 percent from last year. Total pounds of beef in freezers were up 4 percent from the previous month but down slightly from last year. Frozen pork supplies were up 10 percent from the previous month and up 3 percent from last year. Stocks of pork bellies were up 1 percent from last month but down 32 percent from last year.

Total frozen poultry supplies on January 31, 2013 were up 5 percent from the previous month and up 12 percent from a year ago. Total stocks of chicken were down 3 percent from the previous month but up 8 percent from last year. Total pounds of turkey in freezers were up 22 percent both from last month and from January 31, 2012.

Total natural cheese stocks in refrigerated warehouses on January 31, 2013 were up 1 percent from the previous month and up 1 percent from January 31, 2012.  Butter stocks were up 35 percent from last month and up 21 percent from a year ago.  Total frozen fruit stocks were down 10 percent from last month but up 4 percent from a year ago.  Total frozen vegetable stocks were down 7 percent from last month but up 4 percent from a year ago.



What's Driving Beef Checkoff Programs?

Polly Ruhland, Cattlemen’s Beef Board CEO, recently gave us an overview of beef consumption versus demand. Today, she goes on to explain beef demand drivers.  Ruhland says, “Demand drivers are those things that make consumers want, or sometimes in negative cases, make them not want, in the case of demand limiters, to purchase beef and beef products. Economic determinants are at the top of the driver list. What does that mean? It means consumers' disposable income, right? It means what the economy is doing. Can we control the economy? No, we can’t control supply. And so without total control over the economy of supply, we have to find those things in the checkoff that we can control -- like consumer preference. Consumer trends are demand drivers. Qualities of our product, such as taste, consistency and convenience (sound familiar?), are consumer demand drivers. Changes in consumer demographics, changes in lifestyles .. those are demand drivers. So what we try to do in the checkoff is do adequate market research so that we understand what those drivers are in a changing consumer environment and play to our strengths with beef checkoff money.”

So how does the checkoff address these demand drivers?  Ruhland says, “We can improve and tell consumers about beef safety, for example. We can deliver more consistent, quality product -- including taste and tenderness. We can offer convenience to consumers. And we can respond to other things they want in the marketplace. We can drive toward certain demographics. Those are things the checkoff can do to support and influence consumer demand. Amazingly enough, the Long Range Plan reflects these things. So we have four committees that are lined up with our Long Range Plan core strategies. Demand drivers are at the very heart of how the checkoff works toward achieving the core strategies of the Beef Industry Long Range Plan, but because it’s an industry-wide Long Range Plan, some of those core strategies are appropriate for checkoff work and some of them are not appropriate for checkoff work. It’s an industry long range plan not a checkoff long range plan.”

Ruhland also addresses some of the challenges facing the checkoff, and goes on to explain what the new checkoff committee structure means when facing those tough times head-on.  She concludes,  “So as we look ahead, budget constraints top the list of challenges for the Beef Checkoff Program. We have an issue with shrinking dollars in the checkoff program. But I will tell you that this type of decision that you will be able to make in this new committee structure will allow you to make better decisions on behalf of the beef checkoff; will allow you to be more efficient with your priority-setting; will allow you to direct staff and contractors better; because big-picture, consumer-based decisions work better. And so, even though we do have a resource issue, I can tell you that I firmly believe this new committee structure is a path to the future for better checkoff programs.”



Groups: Vacate RFS Mandate by Feb. 28

With the deadline looming next week for refiners, blenders and importers to comply with the Renewable Fuels Standard 2012 cellulosic biofuels blending mandates, several groups have asked the U.S. Court of Appeals for the District of Columbia Circuit to issue an order vacating the mandate by Feb. 28.

Feb. 28 is the deadline for obligated parties to show compliance with the RFS mandates for 2012.

The court vacated the 2012 cellulosic biofuels carve-out mandate because the fuel is not commercially available. The mandate was part of the RFS, which is administered by the Environmental Protection Agency.

Under the RFS, each year the EPA mandates volumes of biofuels required by obligated parties to blend into petroleum.

For 2012, the mandate was for 8.65 million gallons of cellulosic biofuel, none of which was commercially available. The 2012 cellulosic biofuel waiver credit price was set at $0.78, which translates to obligated parties required to pay nearly $7 million as an industry for credits to cover the 2012 cellulosic biofuel mandate under the RFS.

Since the RFS required a mandate to blend nonexistent fuel, the American Petroleum Institute, an oil and gas industry trade association, filed suit last year against the EPA. The appeals court ruled to vacate 2012's cellulosic mandate in January.

According to a statement issued by the EPA on Thursday, the parties have asked the court to issue the order before Feb. 28, the date by which obligated parties are required to show compliance with the 2012 RFS standards.

"Once the court issues the order, the 2012 cellulosic biofuel standard will be vacated, and the compliance demonstrations due on Feb. 28, 2013, would not need to address compliance with the 2012 cellulosic biofuel standard," EPA said.

EPA added that any party who submitted payment for 2012 cellulosic biofuel waiver credits in advance of the deadline, "the agency will take actions necessary for refunds to be issued following implementation of the court's ruling."



American Ethanol Enhances Sponsorship of Richard Childress Racing with Driver Austin Dillon in 2013

American Ethanol announced its plans to enhance its partnership with Richard Childress Racing and driver Austin Dillon for the 2013 NASCAR® season. Dillon will race the No. 33 American Ethanol Chevrolet in the NASCAR Sprint Cup Series™ at Michigan International Speedway on June 16 and will drive a RCR-fielded entry in the NASCAR Camping World Truck Series™ at Eldora Speedway on July 24 with an American Ethanol paint scheme. The National Corn Growers Association is a proud partner in this effort.

“We want to show the people coast-to-coast there is a great alternative to imported oil and our association with NASCAR and RCR is doing that extremely well," said Jon Holzfaster, a Paxton, NE farmer and chairman of the National Corn Growers Association's NASCAR Advisory Committee. "Ethanol is also responsible for bringing a rural renaissance from Main Street to the family farm.”

American Ethanol will be an associate sponsor of Dillon’s No. 3 AdvoCare Chevrolet in the NASCAR Nationwide Series race on Saturday, Feb. 23, and Honey Nut Cheerios No. 33 car in the Sprint Cup Series this weekend at Daytona International Speedway. This will kick off  a season-long campaign in which Dillon plans to battle for the 2013 Driver's Title after earning Rookie-of-the-Year honors and finishing third in the final Driver's Championship Point Standings in 2012.

American Ethanol, launched by Growth Energy and NCGA along with the support of other partners, is a breakthrough brand that seeks to expand consumer awareness of the benefits of ethanol and E15.  Since the program launch for the 2011 season, NASCAR drivers have run more than 3 million miles on renewable Sunoco Green E15.

"American Ethanol is extremely pleased to once again partner with Austin Dillon, Richard Childress and the entire RCR team to help promote a sustainable homegrown American fuel that is better for our environment, reduces our dependence on foreign oil and creates jobs right here in the U.S., while revitalizing rural economies across America," said Tom Buis, CEO of Growth Energy.

With help from American Ethanol, Dillon is scheduled to make his first NASCAR Camping World Truck Series™ start since clinching the 2011 Driver’s Championship by entering the Series’ inaugural race at Eldora Speedway on July 24.

American Ethanol will also serve as an associate sponsor for Dillon’s No. 3 Chevrolet for the full 2013 NASCAR Nationwide Series™ season and as an associate sponsor for Dillon’s limited 2013 NASCAR Sprint Cup Series™ schedule.

“It feels good to be able to help spread the news about American Ethanol and encourage every American to run the fuel of the future, American Ethanol, in their personal vehicles,” said Dillon. “If American Ethanol can withstand the rigors of NASCAR, it can withstand everyday driving. Homegrown biofuels like American Ethanol have stepped up to help our nation’s economy, and are proving to be a better fuel. I am proud to wear the American Ethanol colors in NASCAR and I hope I can bring them to Victory Lane in the NASCAR Sprint Cup Series™ and the NASCAR Camping World Truck Series™ in 2013.”

Dillon is an official spokesperson for American Ethanol, the most commercially-viable alternative that America currently has to offset the economic impact of foreign petroleum. Corn ethanol reduces emissions by 59 percent. And by strengthening America’s energy independence, ethanol helps create American jobs – studies have shown that for every $1 sent overseas for oil, $1.55 leaves the U.S. economy.



Hormel Foods Reports Strong First Quarter Earnings

Hormel reported a slight increase in profit and total sales for the first quarter, but higher grain costs caused a 23 percent drop in profits for Jennie-O.

The Minnesota-based food company reported Thursday $2.1 billion in sales for the quarter ended Jan. 27, up 4 percent from 2012, but profits only increased 1 percent, from $128.4 million in 2012 to $129.7 million in 2013, and profits were down from the 2011 figure of $148.8 million. The Jennie-O Turkey Store reported a 3 percent increase in sales for the quarter, but Hormel said higher grain costs cut into profits, even as it increased prices in stores.

The figures were in line with expectations, as the company reported earnings per share of 48 cents, which was even with last year.

In the first quarter of 2012, the meatpacker reported a 14 percent drop in profits from 2011 and a 6 percent increase in total sales, but finished the year with a profit of $500.1 million and $8.23 billion in total sales, both records.

Jennie-O, which accounts for 18 percent of net sales, was the only of Hormel’s five divisions to report a drop in profit, although refrigerated foods profits were even with last year.

Refrigerated foods, which accounts for exactly half of the company’s net sales, reported a 2 percent decline in sales and was even in profits. Improved results with Hormel pepperoni and Natural Choice deli meats, and by the Affiliated Business Units didn’t fully offset weaker pork operating margins and increased costs in live production operations, the company said.

In the grocery products division, which accounts for 16 percent of net sales, profits increased 13 percent, and sales were up 24 percent. The Don Miguel brand of Mexican food led the division, as sales were only up 4 percent excluding the brand. The company also credited Spam and Hormel Chili.



Agrium 4Q Profit Up

Fertilizer-maker Agrium Inc. said late Thursday it had a record fourth-quarter profit, which came in well ahead of analyst expectations, as sales from its retail segment climbed 8%.  The Alberta-based company said net earnings rose to $354 million, or $2.34 a share, from $193 million, or $1.20 a share, a year earlier.

Results in the latest quarter were bolstered by gains totaling 18 cents a share, while year-earlier earnings included a loss from discontinued operations of 85 cents a share.  Excluding those items, Agrium earned $2.16 a share, up from $2.05 a year earlier. The Thomson Reuters mean estimate was for a profit of $2 a share, while Agrium itself had previously guided for $1.50-$1.90 a share, excluding any hedging gains or losses and share-based payment expenses.

Sales of $3.26 billion were up from $3.18 billion a year earlier, also beating the $3.20 billion analysts were expecting. Retail sales rose to a record $2.0 billion, Agrium said, while wholesale sales fell slightly due to weak international potash demand.

Agrium is embroiled in a proxy battle with U.S. hedge fund Jana Partners.  Late last year, Jana Partners proposed a slate of five new directors for election to Agrium's board. The New York hedge fund Thursday bumped up its stake in the fertilizer producer to 7.5% from 6.5%, saying it's "confident" it's going to prevail in the proxy battle. Agrium has said it believes it has "overwhelming" shareholder support. Shareholders will vote at Agrium's annual meeting April 9.



Monsanto to Appeal Brazilian Ruling on RR Soybean Patent

Monsanto Company said it plans to file an immediate appeal of a recent ruling by a single judge of the Brazilian Superior Court of Justice, relating to the company's request for term correction of a patent covering its Roundup Ready soybean product. The company will move forward with the next phase of the appeals process to secure its intellectual property rights and ensure its business is not disrupted in the country.

Monsanto has previously obtained patent protection in Brazil for its first-generation Roundup Ready soybean products. In accordance with Brazilian law, Monsanto has sought to correct the term of its patent rights in Brazil to conform to the 2014 patent term granted in the United States.

This ruling represents one intermediate step in the ongoing legal process within the country. Monsanto will seek review of that decision by a full panel of judges of the Superior Court of Justice. Additionally, Monsanto has previously filed an appropriate appeal which has been admitted to be heard by the Supreme Court of Brazil. The Supreme Court ultimately will hear and decide the patent term correction.

"We plan to file an immediate appeal with the Superior Court of Justice and look forward ultimately to presenting our case to the Supreme Court of Brazil at a later date," said Todd Rands, Monsanto's Legal Director for Latin America.

Monsanto, similar to other companies, holds intellectual property rights on its inventions. This approach has played an important role in fostering new investments in Brazilian agriculture production.

The company also said it remains committed to ongoing dialogue with farmers and their representative groups in order to pave the way for innovation in agriculture, as this is one of the critical paths towards delivering value to Brazil's farmers and its economy and meeting the demands of a growing planet.