Friday February 8 Ag News

CattleFax Projections Include Decline in Beef Supply, Rising Prices in 2013

Cattlemen and women gathered today at the 2013 Cattle Industry Convention and National Cattlemen’s Beef Association (NCBA) Trade Show today to hear CattleFax market analysts’ projections for the year ahead. Creighton University Professor Emeritus Art Douglas told the audience that there is a chance some regions of the United States will see a return to more normal precipitation patterns during the upcoming spring and summer growing season. That was welcome news to participants, many of whom have been enduring an ongoing, multi-year drought which has affected more than 70 percent of cattle country.

If precipitation returns to near-normal levels for the 2013 growing season, CattleFax predicts farmers in the U.S. will plant a record number of acres in both corn and soybeans. CattleFax Grain Market Analyst Chad Spearman told the audience that would lead to lower feed grain prices this year.

“If we see anything close to trend line yields, we’ll see relief on the supply side and the result will be price relief, particularly in the second-half of 2013,” said Spearman, who added that the additional moisture will help mitigate hay prices after harvest begins this summer.

“With a little help from Mother Nature, we will be in much better shape with regard to hay supply and prices during the second half of the year,” he said.

Although input costs may provide relief, analyst Mike Murphy provided a note of caution, saying that a possible economic slowdown could put pressure on beef prices and demand among consumers. He projected that net income in the U.S. would be flat, with incomes struggling to keep pace with inflation. However, he predicted beef exports would continue to provide support for prices.

‘We expect to see an increase in exports, due in large part to an increase in shipments to Japan since that market recently opened to beef from cattle under 30 months of age,” said Murphy. “Imports will also be up substantially as well, due to tighter supplies in the U.S. at a time when we have strong demand for 90 percent lean trim.”

Overall, CattleFax Senior Analyst Kevin Good predicted beef production in the U.S. will fall, with per-capita supply declining 2.2 percent. However, he said the decrease will be partially offset by increasing carcass weights. CattleFax projects the Wholesale Beef Demand Index will decline by 1 percent, due to a 1 percent decline in real income of consumers.

Good said he expects that there will be a shift in leverage with the loss of packing capacity in the U.S. after the closure of a southern Plains packing plant earlier this year.

“As a result of that decline in capacity, feedlots will get a smaller percentage of the wholesale value of beef,” said Good. He added that CattleFax is projecting average prices will be higher for all classes of cattle during 2013 compared to the prior year.

Prices are expected to average $126 compared to $123 during 2012, an increase of 2.5 percent. Yearling prices are expected to average $155, an increase of 5 percent from the 2012 average of $147. According to Good, calf prices will average $175, up 5 percent from last year’s average of $167.

“The cow-calf sector will remain in the driver’s seat during 2013, particularly if they have feed,” said Good.

CattleFax CEO Randy Blach summarized the year ahead by saying it will be a difficult year for margin operators in the cattle business. He emphasized the importance of risk management due to continued volatility and rising capital requirements. Packer margins, though, should see some improvement as the result of the decline in capacity, a trend that he expects to continue.

“Don’t be surprised if we see the loss of another one or two plants before we’re done with the consolidation phase,” said Blach. Likewise, he said the industry can expect cattle feeding capacity to continue its decline due to the current market situation.







NCBA Presents Outstanding Recruitment Awards to State Affiliates

The National Cattlemen’s Beef Association (NCBA) recognized today during the Best of Beef Breakfast at the 2013 Cattle Industry Convention and NCBA Trade Show the states who influenced the recent surge in NCBA membership. The state and national partnership is crucial to NCBA’s member recruitment strategy and these awards provide incentive for the state affiliates that have worked tirelessly to strengthen the voice of cattlemen and women at state and national levels.

In recognition of these affiliates’ efforts to encourage their members to join NCBA, New Holland is providing three affiliates with their choice of a one-year lease on a New Holland BR7090 round baler or a one-year lease on a New Holland T6 175 tractor.

“New Holland supports cattlemen and women and they recognize the importance of a strong state and national partnership and the role that partnership plays in strengthening agriculture’s voice in Washington, D.C., and elsewhere,” said New Holland Segment Manager of Dairy and Livestock Marketing Michael Cornman.

Cornman was on-hand at the Best of Beef Breakfast to award one lease to the state affiliate that recruited the most new members between Oct. 1, 2012 and Dec. 31, 2012. The other two leases were awarded by random drawing to two of the 14 states which met membership recruitment milestones during the same time period.

The states that qualified for the lease drawing by meeting membership recruitment goals were: Arizona Cattle Feeders, California Cattlemen’s, Colorado Livestock, Georgia Cattlemen’s, Hawaii Cattlemen’s, Kansas Livestock, Minnesota State Cattlemen’s, Nebraska Cattlemen, Texas and Southwestern Cattle Raisers, Texas Cattle Feeders, Utah Cattlemen’s, Virginia Cattlemen’s, Washington Cattle Feeders and Wisconsin Cattlemen’s.

Georgia Cattlemen’s Association and the Minnesota State Cattlemen’s Association won the lease drawing held during the state affiliate luncheon and will have their choice of either a New Holland New Holland BR7090 round baler or a one-year lease on a New Holland T6 175 tractor for their use.

The top five states in NCBA membership recruitment from Oct. 1, 2012 through Dec. 31, 2012 were, in reverse order: California Cattlemen’s Association, Tennessee Cattlemen’s Association, Kansas Livestock Association, Missouri Cattlemen’s Association and the winner of either a New Holland baler or tractor for the largest number of NCBA members recruited was Texas and Southwestern Cattle Raisers.

“At New Holland we are proud to support state and national membership efforts. We know that it is smart for all of us to work together to strengthen our great industry and provide opportunities for future generations of farmers and ranchers,” said Cornman. “We are honored to work with NCBA on this important effort.”




Case IH Joins Forces with NCBA to Sponsor Top Hand Club

Case IH, a global leader in agricultural equipment, has joined forces with the National Cattlemen’s Beef Association (NCBA) to support a fervent 2013 membership campaign featuring a Case IH Scout utility vehicle as a recruitment incentive. Case IH’s role was announced during the 2013 Cattle Industry Convention and NCBA Trade Show, held in Tampa, Fla., this week.

Through its U.S. agricultural equipment business, Case IH now sponsors NCBA’s Top Hand Club, one of the association’s oldest and most popular membership programs. Established in 1982, the Top Hand Club is the NCBA’s "member-recruit-a-member" program which was developed to recognize those NCBA members who continually give their time and effort to help increase the strength of their national organization.

“It is important that NCBA and its members be the leaders in educated the public about beef production,” said NCBA President J.D. Alexander. “It’s unfortunate that the general American public is so far removed from agriculture, but that makes it even more critical for every single member of NCBA to renew his or her membership and recruit others, to keep beef on the table and cattle in the pastures.”

Through Sept. 30, 2013, any active NCBA member may qualify to enter a drawing for a Case IH Scout. A recruiter’s name will be entered into the drawing if they recruit 15 new NCBA members in the qualifying time period. If five additional members are recruited after the initial 15, the recruiter’s name will be entered an additional time.

“Membership is central to NCBA, and recruitment efforts by the Top Hand Club allow NCBA the opportunity to reach out to producers around the country and bring them together to make the vital decisions that shape the direction of the cattle industry's future,” said Alexander.



Free BQA Certification This Month for Beef and Dairy Producers

Are you doing your part for the industry by getting BQA certified? Well, if you haven't, have we got a deal for you!

Your checkoff-funded Beef Quality Assurance (BQA) program is giving you the chance to become certified for free thanks to a partnership with Boehringer Ingelheim Vetmedica, Inc. and the Beef Cattle Institute (BCI) housed at Kansas State University. The cost of BQA certification is normally $25-$50; however, between Feb. 11, 2013 and March 15, 2013, Boehringer Ingelheim Vetmedica, Inc. will defray the cost of the certification, making it free for producers. Those interested in taking advantage of this BQA certification opportunity should start at www.BIVI-BQA.com.

“BQA provides cattlemen with the tools they need to produce the safe, high-quality beef while also looking at ways to make their operations more efficient and productive,” says Ryan Ruppert, senior director of BQA.

BQA is the gold standard of livestock handling and animal-welfare programs, Ruppert says, and Boehringer Ingelheim Vetmedica Inc.’s support of BQA online certification demonstrates the company’s commitment to improving the industry and telling consumers about the sound production practices most cattlemen use every day.

BQA has customized programs specific to cow/calf, stocker, feedlot or dairy operations. Developed and managed by the independent Beef Cattle Institute, these easy-to-use modules teach sound management techniques they can apply to their operation. The cattle industry has embraced BQA because it is the right thing to do, and certification is the next step to show your commitment producing the best beef possible. It also helps cattle operations tell their story to consumers who might not understand all of the safety measures cattlemen take in producing the food on the table.

"We're proud to bring this certification program to more American cattlemen and dairy producers," says David Korbelik, director of cattle marketing for Boehringer Ingelheim Vetmedica, Inc. "Much like our 'Prevention Works' approach to animal health, BQA is about monitoring and making incremental improvements throughout the lifecycle to prevent disease and ensure a quality end product."

Ruppurt says it is "clear that Boehringer Ingelheim Vetmedica, Inc. is committed to helping consumers understand that beef is produced in a safe and humane manner," adding that "this partnership will help producers learn about the latest industry advancements and demonstrate the ways they continue to provide a top-quality food product.”



Farm Food Safety Training for Northeast Nebraska Offered in Wayne on February 20
Michael Rethwisch, Butler County Extension

Fruit and vegetable growers, both large and small, are becoming increasingly aware of the food safety issues related to field-grown produce, and the importance of food safety to consumers.  In January of 2011, President Barack Obama signed the FDA Food Safety Modernization Act into law.  

This Act enhances the traceability of fresh produce grown in the United States, as well as create greater responsibility for food safety to producers. The bill requires producers to evaluate hazards to their products, take steps to prevent contamination and to develop written food safety plans. The University of Nebraska-Lincoln Extension is helping producers and farmer’s market managers complete the Good Agricultural Practices (GAPs) training.   The northeast Nebraska GAPs training is being held on Thursday February 20, 2013, at Wayne State College.

The topics that will be covered will help producers enhance worker sanitation, harvesting, handling, packaging, storage and transportation standards of fresh produce from the farm operation to markets, schools, restaurants, and retail stores. By completing a Farm Food Safety Plan, producers can differentiate themselves in the marketplace and appeal to many customers who perceive this training as an added benefit.

The one-day workshop will run from 8:30 a.m. to 4:30 p.m.  The fee for this program is $65 per operation. This fee covers educational materials, lunch and breaks.  Extra participants per operation will be charged $10 each for additional breaks and meals.  Registration is due Feb. 13.   A $5 late fee will be charged after the registration date has expired for each of the workshop locations.

Reservations are required to participate.   Please register by calling the UNL Extension Office in Hall County at (308) 385-5088.   Please make all check payments out to the “University of Nebraska-Lincoln” when submitting the registration.   Please mail all cash and check registration to:
            University of Nebraska-Lincoln Extension – Hall County
            3180 W. Highway 34
            Grand Island, NE 68801-7279



Heuermann Lecture Tuesday to Focus on Future of Food

"Tomorrow's Table: Organic Farming, Genetics, and the Future of Food" is the topic when co-authors and husband and wife Pam Ronald and Raoul Adamchak are Heuermann Lecturers Tuesday, Feb. 12.

The 3:30 p.m. public lecture in the Hardin Hall auditorium on the University of Nebraska-Lincoln's East Campus, 33rd and Holdrege, is preceded by a 3 p.m. reception.

Ronald is a professor in the Department of Plant Pathology and the Genome Center at the University of California, Davis, and serves as director of Grass Genetics at the Joint BioEnergy Institute.

Adamchak, who has 25 years organic farming experience, is market garden coordinator in the Agricultural Sustainability Institute at UC Davis, where he teaches organic agriculture and manages the UC Davis student farm.

In their lecture they'll discuss one of the greatest challenges of our time:  how to feed the world's growing population without further destroying the environment.

Heuermann Lectures in the Institute of Agriculture and Natural Resources at UNL focus on providing and sustaining enough food, natural resources and renewable energy for the world's people, and on securing the sustainability of rural communities where the vital work of producing food and renewable energy occurs.

The lectures are made possible by a gift from B. Keith and Norma Heuermann of Phillips, long-time university supporters with a strong commitment to Nebraska's production agriculture, natural resources, rural areas and people.

Lectures stream live at http://heuermannlectures.unl.edu, and are archived at the site shortly after the lecture.  They are broadcast on NET2 World at a date following the lecture.



USDA World Ag Supply and Demand Estimate - Feb 8, 2013

WHEAT:  U.S. wheat ending stocks for 2012/13 are projected 25 million bushels lower this month with higher expected feed and residual disappearance.  Feed and residual use is projected 25 million bushels higher as weaker cash prices relative to corn support opportunities for increased wheat use in livestock and poultry rations.  Feed and residual use is raised 10 million bushels each for Hard Red Winter (HRW) and Soft Red Winter (SRW) wheat, and raised 5 million bushels for White wheat.  Projected all-wheat exports are unchanged, but HRW and Hard Red Spring wheat are lowered 25 million bushels and 5 million bushels, respectively.  Offsetting these reductions are projected increases in SRW and White wheat exports of 25 million bushels and 5 million bushels, respectively.  By-class export changes largely reflect the pace of sales and shipments to date.  The projected season-average farm price for wheat is narrowed 5 cents on both ends of the range to $7.70 to $8.10 per bushel.

Global wheat supplies for 2012/13 are nearly unchanged with a small increase in beginning stocks more than offsetting a small decrease in production.  Global wheat output is projected 0.7 million tons lower.  Production is lowered for Kazakhstan and Brazil, but raised for Ukraine, South Africa, and Belarus.

Global wheat trade for 2012/13 is trimmed slightly.  Imports are lowered 0.5 million tons for Morocco, 0.3 million tons for Saudi Arabia, and 0.2 million tons each for Israel, South Africa, and Vietnam.  Imports are raised 0.6 million tons for South Korea, 0.5 million tons for Iran, and 0.2 million tons for Brazil.  Exports are raised 0.5 million tons for EU-27, but reduced 0.5 million tons for Kazakhstan and 0.3 million tons for Brazil.  Lower exports for Brazil and Kazakhstan reflect smaller crops, while the increase in South Korea imports supports higher wheat feeding.  Wheat feed and residual use is also raised for Ukraine.  Wheat feed and residual use is lowered for EU-27, Saudi Arabia, Kazakhstan, Vietnam, and Israel.  Global wheat consumption is virtually unchanged at 673.4 million tons; however, global consumption is projected down 24.6 million tons year to year, mostly reflecting lower feed and residual use in 2012/13.  World wheat ending stocks for 2012/13 are also nearly unchanged this month at 176.7 million tons.  Lower projected ending stocks in the United States and Morocco are offset by higher stocks in Iran, South Korea, and Ukraine.

COARSE GRAINS:  U.S. feed grain ending stocks for 2012/13 are projected higher this month as lower expected exports outweigh an increase in projected domestic usage.  Corn exports are projected 50 million bushels lower based on the sluggish pace of sales and shipments to date and prospects for more competition from Brazil.  Corn use for ethanol production is unchanged, but corn use for sweeteners and starch is raised 20 million bushels, boosting projected food, seed, and industrial use.  Projected corn ending stocks are raised 30 million bushels.  The projected range for the season-average farm price for corn is lowered 20 cents at the midpoint and narrowed to $6.75 to $7.65 per bushel.  Reported monthly prices received by farmers to date continue to reflect forward sales made at prices below prevailing cash market bids.

Usage changes for 2012/13 are also made this month for sorghum and barley.  Sorghum feed and residual use is projected 25 million bushels lower, but offset by a 20-million-bushel increase in food, seed, and industrial use and a 5-million-bushel increase in exports.  Projected barley exports are lowered 1 million bushels, based on indications of slower-than-expected shipments.  Barley ending stocks are increased by the same amount.  The projected range for the sorghum farm price is lowered 15 cents at the midpoint and narrowed to $6.70 to $7.60 per bushel.  The barley farm price range is narrowed 5 cents on each end to $6.15 to $6.65 per bushel.

Global coarse grain supplies for 2012/13 are projected 2.1 million tons higher as a decrease in beginning stocks is more than offset by a 2.9-million-ton increase in production.  Lower 2012/13 beginning stocks mostly reflect an increase in 2011/12 corn exports for Brazil and revisions to the Paraguay corn series that lower 2011/12 corn area and yield.  

Global 2012/13 corn production is raised 2.1 million tons with increases for Brazil, Mexico, India, and Ukraine more than offsetting a reduction for Argentina.  Brazil production is raised 1.5 million tons based on higher reported area and yields for the first-season crop and good early prospects for second-season corn.  Mexico production is increased 0.8 million tons with higher reported area for the summer crop.  Production is raised 0.6 million tons for India on higher area as indicated by the latest sowing progress reports.  Ukraine production is increased 0.4 million tons on higher reported yields.  Argentina production is lowered 1.0 million tons as persistent dryness in January and early February lowers yield prospects, particularly for late-planted corn.

Global 2012/13 production is also higher this month for sorghum, barley, oats, and rye.  Sorghum production is raised 0.4 million tons for Mexico with higher area and yields for the summer crop, but lowered 0.2 million tons for Australia with reduced prospects for area and yields.  Global barley, oats, and rye production are up a combined 0.6 million tons on larger reported crops for the FSU-12 countries.

Global coarse grain trade for 2012/13 is higher mostly reflecting increased imports of barley for Saudi Arabia, Turkey, and Tunisia and higher sorghum imports for Mexico and Japan.  World corn imports and exports are raised only slightly, but significant shifts are made among countries.  Corn imports are raised for EU-27 and China, but lowered for Egypt, Syria, Mexico, and Saudi Arabia.  Corn exports are raised for Brazil and Ukraine, but lowered for the United States and Argentina.  Global corn consumption for 2012/13 is lowered with a reduction in world feed and residual usage.  Corn feed and residual use is lowered 2.0 million tons for Brazil, 1.0 million tons for Egypt, and 0.4 million tons for Argentina, but raised 2.0 million tons for EU-27 and 0.5 million tons for China.  Global corn ending stocks for 2012/13 are projected 2.1 million tons higher with the largest increases expected for Brazil and the United States.

OILSEEDS:  U.S. soybean ending stocks for 2012/13 are projected at 125 million bushels, down 10 million from last month due to increased crush.  Soybean crush is raised 10 million bushels to 1.615 billion reflecting both larger soybean meal exports and domestic use.  Strong U.S. soybean meal exports during the first half of the marketing year are partly offsetting declining shipments from Argentina where crushing has slowed due to limited soybean supplies.  Domestic soybean meal use is raised in line with projected gains in meat production. Soybean oil production is raised on higher soybean crush and a higher soybean oil extraction rate.  Soybean oil exports are projected at 2.3 billion pounds, up 150 million from last month as sales continue stronger than expected.  Soybean oil used for methyl ester is unchanged this month despite relatively low use during the first quarter of the marketing year.  Production and use are expected to expand in coming months due to the higher mandate for 2013.  Soybean oil stocks are projected at 1.665 billion pounds, up 125 million.

The U.S. season-average soybean price range for 2012/13 is projected at $13.55 to $15.05 per bushel, up 5 cents on both ends of the range.  The soybean meal price is projected at $430 to $460 per short ton, unchanged from last month.  The soybean oil price projection is also unchanged at 49 to 53 cents per pound.

Global oilseed production for 2012/13 is projected at 466.9 million tons, up 1.1 million from last month.  Global soybean production is raised fractionally to 269.5 million tons as improved production prospects in Brazil offset deteriorating conditions in Argentina.  Soybean production for Brazil is projected at a record 83.5 million tons, up 1 million from last month due to higher yields resulting from improved moisture in the center-west.  Prospects for the Argentina soybean crop have diminished in recent weeks due to an extended period of dry weather.  As a result, the crop is projected at 53 million tons, down 1 million from last month.  Global sunflowerseed production is projected at 36.4 million tons, up 0.5 million due to gains for Russia and Kazakhstan.  Other changes include increased peanut and cottonseed production for China, and reduced cottonseed production for Pakistan, Mexico, and Turkey.

Global oilseed and product supply and use changes this month include reduced soybean crush and soybean meal exports for Argentina, reduced soybean meal imports for EU-27, increased rapeseed crush and rapeseed meal consumption for EU-27, and increased sunflowerseed crush in Russia.  Global oilseed stocks are projected higher, mostly reflecting higher soybean stocks in Brazil.

LIVESTOCK, POULTRY, AND DAIRY: 
The 2013 forecast of total red meat and poultry production is raised from last month reflecting higher forecast beef, pork, broiler, and turkey production.  Beef production is raised based mostly on heavier carcass weights.  The beef production forecast is also raised as cow slaughter in the first quarter is expected to be relatively high.  Pork production is raised as carcass weights are expected to reflect more moderate feed costs.  Broiler hatchery data pointed to continued expansion of bird numbers and weights at slaughter have been increasing.  Thus, the broiler production forecast is raised from last month.  Turkey production is raised slightly on hatchery data.  Egg production is raised on higher producer prices and lower forecast feed prices.  Estimates of 2012 meat and egg production are adjusted to reflect December data. 

The beef export forecast for 2013 is unchanged as trade restrictions by Russia are offset by gains to Japan and other markets.  Pork exports are lowered on trade restrictions imposed by Russia although there is expected to be some offset in higher exports to other markets.  Broiler and turkey export forecasts are raised from last month on stronger demand from a number of markets.  Import forecasts are unchanged from January.  Beef and pork export estimates for 2012 are lowered due to slower-than-expected shipments in November.  Poultry is raised based on larger-than-expected November shipments.

Cattle, hog, and turkey prices for 2013 are unchanged from last month.  Broiler and egg prices are raised on expected demand strength in 2013. 

The milk production forecast for 2013 is raised.  Milk cow numbers are raised as USDA’s Cattle report indicated that the number of cows on January 1 was about unchanged from 2012.  Milk per cow forecasts are raised as last quarter-2012 estimates were higher than expected and lower forecast feed costs support higher milk yields in 2013.  Fat-basis trade estimates for 2013 are unchanged.  The skim-solids export estimate for 2013 is raised largely on expectations of stronger nonfat dry milk (NDM) shipments, but the import forecast is unchanged.  Milk production estimates for 2012 are raised, reflecting end-of-year production data.  Dairy trade estimates for 2012 reflect the pace of trade through November. 
 
Cheese prices are unchanged from last month, but the price range is narrowed.  NDM and whey prices are raised reflecting stronger demand, but the butter price is lowered.  Despite a higher whey price, the forecast Class III price is unchanged although the range is tightened.  Lower butter prices are more than offset by higher NDM prices resulting in a slightly higher forecast Class IV price.  The range of all milk price for 2013 is narrowed to $18.90 to $19.70 per cwt.



Global demand for soybeans, tight supplies offer opportunity for Iowa farmers

The U.S. Department of Agriculture’s World Agricultural Supply and Demand Estimates (WASDE) report released today projects the nation’s soybean reserves will likely be at their lowest level in 50 years by the end of the 2011/12 marketing year, settling at 125 million bushels. That’s down 10 million from last month’s projections due to increased domestic crush, strong export demand and reduced U.S. production.

“The global demand for soybeans is off the charts and the world wants every bushel of soybeans it can get,” says Kirk Leeds, Iowa Soybean Association (ISA) CEO. “Domestic demand remains better than expected, as well. In addition to needing another good crop this year, we also need additional soybean acres in Iowa and the United States. Soybeans are a viable option for farmers and the demand is there.”

Leeds says farmers started last year with adequate soil moisture, a luxury that may not be repeated this year. He said most Iowa farmers were pleased with better-than-expected soybean yields in 2012.

“Our farmers pride themselves on their ability to be a dependable supplier,” adds Leeds. “People know that when you order soybeans from the United States, you will get soybeans from the United States. It’s why it’s imperative for us to maintain our infrastructure, from roads to rivers, to keep our commodities moving.”

Since the beginning of the year, soybean prices have risen about 10 percent. Soybean supply concerns in South America --- shipping issues in Brazil and weather problems in Argentina reducing forecasted output --- have been a contributing factor. The WASDE report projects the U.S. season-average soybean price will range from $13.55 to $15.05 per bushel, up 5 cents on both ends.            

The WASDE raised its global soybean production estimate fractionally to 269.5 million tons as improved production prospects in Brazil offset deteriorating conditions in Argentina. Soybean production for Brazil is projected at a record 83.5 million tons, up 1 million from last month due to higher yields resulting from improved moisture in the center-west.

Prospects for the Argentina soybean crop have diminished in recent weeks due to an extended period of dry weather. As a result, that crop is projected at 53 million tons, down 1 million from last month.

“We keep our eyes on the global market and international competition,” says Grant Kimberley, ISA director of market development. “Soybean demand remains robust in places like China, and soymeal exports have also been strong. Even with a projected large crop from South America this year, U.S. soybean exports should remain steady due to perpetual logistic bottlenecks at ports in South America.”



Livestock Master Matrix Passes in 88 Iowa Counties

In January, 88 counties notified the DNR that they plan to evaluate construction permit applications and proposed locations for animal confinements by using the master matrix.

Animal producers in these counties must meet higher standards than other confinement producers who also need a construction permit. They must earn points on the master matrix by choosing a site and using practices that reduce impacts on air, water and the community.

With 11 exceptions, all counties will use the matrix during the next 12 months. The following counties will not use the matrix in 2012: Decatur, Des Moines, Iowa, Keokuk, Lee, Mahaska, Osceola, Plymouth, Wapello, Warren and Washington.

Counties that adopt the master matrix can provide more input to producers on site selection, the proposed structures and proposed facility management. Participating counties can also join in DNR visits to a proposed confinement site.

While all counties may submit comments to the DNR during the review process for permit applications, counties that adopt the master matrix can also appeal approval of a preliminary permit to the Environmental Protection Commission.

The deadline for enrolling in the program is Jan. 31 of each year.

The matrix affects only producers who must get a construction permit for a confinement. Generally, these include proposed construction, expansion or modification of confinement feeding operations with more than 2,500 finishing hogs, 1,000 beef cattle or 715 mature dairy cows.



Workshop Offered on Introductory RUSLE2 and P Index for Manure and Nutrient Plan Writers

Iowa State University Extension and Outreach, in collaboration with the Iowa USDA-Natural Resources Conservation Service, has scheduled a workshop to train livestock producers and service providers on how to use the Revised Universal Soil Loss Equation 2 (RUSLE2) and the Iowa Phosphorus Index for use in nutrient management and manure management plans.

The workshop will be held on March 20, 2013, at the Polk County Extension Office in Altoona, Iowa. The workshop starts at 9 a.m. and ends at 4:15 p.m.

This workshop is an introductory level, hands-on workshop that will provide the participant with software orientation. It also will introduce participants to the operating parameters, selection of input values, and developing and saving management operations for RUSLE2. In addition, real field examples will be used in the workshop to determine risk calculations of the Iowa Phosphorus Index and how to incorporate these numbers into manure and nutrient management planning requirements. Also included will be parameters for RUSLE2 and P Index calculations on snow-covered or frozen ground. Soil sampling requirements, common errors and the DNR’s review process will be discussed.

“Many livestock producers in Iowa have manure management plans that will need to be revised in 2013 to meet the requirement to update plans every four years,” said Angie Rieck-Hinz, extension program specialist. “This four-year plan requires new RULSE2 and P-Index calculations, and this workshop will be a great refresher for those producers who develop their own plans or for consultants who only develop a few plans.”

The cost of the workshop is $200 if registered on or prior to March 18; the registration fee is $225 after March 18. The workshop fee includes handout materials, a CD with software, refreshments and lunch. Because software will be provided, participants are required to bring an MS Windows compatible laptop equipped with a CD-ROM drive and Microsoft Excel Software. Participants must have their administrator password to the computer they bring in order to install software. The workshop is limited to 30 participants and walk-in attendees are not allowed.

Online registration, program information and directions to the workshop are available at: http://www.ucs.iastate.edu/mnet/introrusle2/about.html.



Members of Soy Value Chain Identify Game Changers

After a day and a half of discussion, U.S. soybean farmers and other representatives of the U.S. soy industry agreed that continuing to promote the benefits of biotechnology, maximizing the content of soy meal and oil, rapidly adopting high oleic soybean varieties and preserving the Renewable Fuel Standard (RFS2) are top priorities to lead the industry into the future.

"The soy checkoff's priority is to continue to create opportunities for all U.S. soybean farmers, as well as their customers, to succeed," says United Soybean Board (USB) Chairman Jim Stillman, a soybean farmer from Emmetsburg, Iowa. Stillman helped lead the CONNECTIONS conference, which in December brought representatives of the U.S. soy industry together to discuss the top issues and opportunities facing U.S. soybean farmers.

"To do this, we must challenge ourselves as farmers, and all soy industry representatives, to stay ahead of changing global demands," Stillman says. "The game changers and strategies identified at CONNECTIONS play a major role in ensuring we meet this goal."

Nearly 400 CONNECTIONS attendees participated in sessions related to the checkoff's four strategic objectives and ranked the strategies most likely to positively impact U.S. soybean farmers. The soy checkoff will join others in the industry in using the identified priorities to inform their direction in the future. Top priorities for each of USB's strategic objectives included:

-- Consumer Focus -- Participants prioritized preserving the Renewable Fuel Standard (RFS2) and promoting biodiesel and Bioheat. The promotion of biotechnology and the increased focus on improving U.S. soy's advantages were also identified as priorities.

-- Meal -- Participants identified top priorities to be maximizing the content of meal and oil in soybeans through integration of research, breeding and processing. Emphasis was also put on developing a transparent system that rewards farmers for higher quality and supporting U.S. soy meal products to boost animal use of soy meal.

-- Oil -- Participants prioritized protecting and growing the RFS2 as well as strengthening it as a price driver for soy oil to make soy meal more cost-competitive for animal farmers as top priorities. Additional priorities included rapid adoption of high-oleic soybean varieties and improving soy composition and yield.

-- Freedom to Operate -- Priorities to ensure farmers' freedom to operate included engaging consumers, food companies and farmers in conversations to educate about today's agriculture. This includes partnering with organizations such as U.S. Farmers and Ranchers Alliance and CommonGround on checkoff-funded projects when educating consumers on the topic of biotechnology. Farmers also identified the need to increase funding for transportation improvements as a top priority.



The Andersons Reports Fourth Quarter, Full Year Results

The Andersons, Inc. announced net income attributable to the company of $79.5 million, or $4.23 per diluted share, on revenues of $5.3 billion. The company had a strong year, surpassed only by the prior year in which it earned $95.1 million, or $5.09 per diluted share, on revenues of $4.6 billion. The company earned $15.0 million in the fourth quarter of 2012, or $0.80 per diluted share, on revenues of $1.7 billion. In the same three month period of 2011, the company reported net income of $21.7 million, or $1.17 per diluted share, on revenues of $1.3 billion. The majority of the year to year revenue increase relates to rising volume and prices, and growth, in the agricultural businesses.

The Rail Group achieved record operating income of $42.8 million in 2012, a significant improvement over its $9.8 million 2011 operating income. Gross profit from the leasing business was significantly higher than the prior year due mainly to higher lease rates, as overall utilization rate for both years was consistent at 84.6 percent. The group recognized $23.7 million in pre-tax gains on sales of railcars and related leases and non-recourse transactions (where the company continues to provide car management services to the purchaser and typically holds an option to purchase the railcars at the end of the assigned lease). In 2011, the company recognized gains of $8.4 million on similar transactions. Revenues of $156 million for 2012 were higher than the $107 million reported in the prior year due mainly to increased car sales and higher lease rates. The rail fleet increased by over 600 cars in 2012, to approximately 23,300 cars. The Rail Group had operating income of $8.6 million in the fourth quarter on revenues of $29 million. In 2011, operating income for the same three month period was $2.3 million on revenues of $25 million. These results include gains on sales of railcars and related leases and non-recourse transactions of $1.5 million and $0.7 million in 2012 and 2011, respectively.

The Plant Nutrient Group had record operating income of $39.3 million in 2012, surpassing 2011 earnings by $1.0 million. Revenues for 2012 and 2011 were $797 million and $691 million, respectively. While margins declined in 2012, both income and revenues increased due to higher volume. For the fourth quarter, the group's operating income was $4.7 million on $178 million of revenues. Last year the group had operating income of $2.5 million during the same three month period on revenues of $170 million. Increased operating income in the quarter was due to higher volume as favorable weather patterns increased nutrient application.

The Grain Group's 2012 operating income was $63.6 million, compared to operating income of $87.3 million in the prior year. The group had considerably lower space income in 2012, as a result of the drought, but an increase in bushels sold. In 2011, the group benefited from significant escalation in wheat basis. Lansing Trade Group contributed strongly to the Grain Group's result with its best ever annual performance. Total revenues for the Grain Group were $3.3 billion and $2.8 billion in 2012 and 2011, respectively. Revenues increased due to greater sales volume and higher grain prices. For the fourth quarter, the group's operating income was $18.1 million on revenues of $1.2 billion. In the same three month period of 2011, the group had operating income of $27.3 million on revenues of $876 million. The group acquired the majority of the Green Plains Grain Company assets, on December 3, 2012. The acquisition included seven facilities in Iowa and five in Tennessee, with grain storage capacity of approximately 32 million bushels. The Grain Group's storage capacity increased nearly 30 percent, and 30,000 tons of fertilizer storage was added as well.

The Ethanol Group had an operating loss of $3.7 million in 2012, compared to operating income of $23.3 million in the prior year. The operating income decline was due to significantly lower ethanol margins resulting from weak gasoline demand, an oversupply of ethanol, and high corn costs caused by last year's drought. The ethanol plants, however, continue to benefit from co-product sales of corn oil, E-85, Distillers Dried Grains and CO2. Total 2012 revenues were $743 million, up from $642 million in 2011. Revenues increased due to an increase in volume, the majority of which was due to the addition of the Denison, Iowa, facility in 2012. The group's fourth quarter operating loss was $0.8 million on revenues of $215 million. During the same three month period of 2011, operating income was $6.5 million on revenues of $165 million.



Syngenta to Expand Corn Seed Production in Brazil

Syngenta announced plans to invest $77 million in the expansion of its corn seed production facility in Formosa, Brazil. Annual capacity will be quadrupled to 1.6 million bags by 2015.

Corn production in Brazil is expected to almost double by 2020, spurred by growth in the pork and poultry sectors. Over the same period, the value of Brazil's corn seed market is expected to reach $2.7 billion with increased second season production and greater technology adoption.

Syngenta's Chief Operating Officer, John Atkin, said: "Brazil is already among the world's top three corn producers and has tremendous long-term growth potential. The Formosa expansion will help us meet increasing grower demand for our leading hybrids and our new trait combinations. These will also form part of our new integrated solutions which focus on grain quality, water efficiency and land optimization."

Syngenta's Formosa facility is located at the heart of 110,000 hectares of prime corn growing country. The area's climate supports two growing seasons and Syngenta's leading hybrid seed portfolio is well suited to the area. Formosa's location close to Brasilia means logistics infrastructure is also good, providing better export market access for growers.



U.S. Trustee Objects to MF Global Chapter 11 Liquidation Plan

A federal bankruptcy watchdog is objecting to the liquidation plan for MF Global's holding company, claiming the hedge funds behind the proposal haven't explained the benefits they are receiving from the plan.

U.S. Trustee Tracy Hope Davis said Thursday in court papers that MF Global Holdings Ltd.'s (MFGLQ) plan outline doesn't explain why fees and expenses of the firms--led by Silver Point Capital LP, Cyrus Capital Partners LP and Knighthead Capital Management LLC--should be paid by the bankruptcy estate.

Ms. Davis, the Justice Department official who patrols the bankruptcy-court system, also took issue with a provision of the plan that grants broad releases from liability to the plan proponents for any actions taken in connection with MF Global's liquidation. The plan outline, called a disclosure statement, has to pass muster with a bankruptcy judge before creditors can vote on a Chapter 11 plan.



New Rule Requires Pigs to Have PRRS Permit When Entering WI
Starting next month, swine entering Wisconsin must be accompanied by an import permit to protect the hog industry from the spread of Porcine Reproductive and Respiratory Syndrome.

According to State Agriculture Secretary Ben Brancel, a veterinarian must disclose the PRRS status of the herd of origin, if known, with a statement on the certificate of veterinary inspection.

"The value of the genetics of hog breeders in Wisconsin requires that we protect the industry from this devastating disease," Brancel said. "The first step toward providing this protection is having knowledge of the status of PRRS in the pigs entering the state."

PRRS is a virus that causes reproductive failure in breeding stock and respiratory illness in young pigs. Subclinical infections are common. First reported in North America in 1987, it is estimated that the disease costs the United States swine industry over $600 million annually.

The new import permit will have no cost to the producer. The process involves the producer, veterinarian or clinic staff filling out the general import permit application form.

The new rule goes into effect starting March 1.