Thursday February 28 Ag News

Farmers Pride Co-op Announces Earnings and Dividends Distribution
Farmers Pride an area leading farmer cooperative, Wednesday reported earnings of $6.5 million for its 2011 fiscal year at their annual meeting held in Norfolk.  Earnings attributed to Farmers Pride operations for fiscal 2012 (Dec 1, 2011 – Nov 30, 2012) decreased 11% over the $7.3 million for fiscal 2010. Revenues for fiscal 2012 reached $200.1 million, reflecting continued higher values for the energy, grain and crop nutrients products.

"Despite tough growing conditions this year and a less than normal grain handle, we are proud of our financial results for fiscal 2012.  We are happy to continue a long history of bringing value for our producer owners who count on Famers Pride for their agronomic, grain, energy and feed needs," said Dean Thernes, General Manager of Farmers Pride.

Farmers Pride customers will share a $1.7 million disbursement of cash patronage and retired equities from 2012 earnings.  This brings the total cash returned to Farmers Pride customers over the past four years of $7.8 million.

"This cash distribution represents the value of being a cooperative owner and customer," said Jerry Dolesh, Farmers Pride board chairman and a Tilden, NE farmer. "Not only do Farmers Pride customers benefit from our services and facilities, they also share in our profits. This allows Farmers Pride’s customers to invest in the future of a local businesses and their rural community."

Patronage is based on business done with Farmers Pride by individual farmers and ranchers during fiscal 2012, while equity redemptions represent retirement of ownership in Farmers Pride earned in past years.

Farmers Pride is a leading cooperative, owned by 2,300 farmers and ranchers across northeast Nebraska with locations in Battle Creek, Bloomfield, Ewing, Madison Newman Grove, Neligh, Oakdale, Osmond, Pierce and Plainview. 



Nebraska Dairy Convention Just Weeks Away—

Nebraska dairy producers, their families and dairy industry representatives can look forward to a schedule of wide-ranging presentations, exciting activities and annual business meetings at the 2013 Nebraska Dairy Convention on Tuesday, March 12, at Divots Conference Center in Norfolk.

Throughout the day, experts will provide information and opportunities for discussion on topics including checkoff updates, animal care, dairy economics, and farm labor.

Dave Hansen, a South Dakota dairy producer who traveled with his wife on a mission to Haiti, is the headline speaker at the convention banquet at 6:30 p.m. The crowning of the new Nebraska Dairy Princess will also take place during the convention banquet, which will be preceded by a reception at 5:30 p.m.

The convention includes a trade show that runs from 9 a.m. to 5 p.m. The Nebraska Holstein Association meets at 11 a.m. and the Nebraska State Dairy Association Annual Meeting takes place at 12:30 p.m.

The 2012 Nebraska Dairy Convention is free to all Nebraska dairy producers, families and guests.  Special room rates are available at the Norfolk Lodge and Suites by calling 800-230-4134.  Questions about the convention can be directed to Rod Johnson, Nebraska State Dairy Association, at 402-261-5482 or rod@nebraskamilk.org.  Attendee registration forms are available at nebraskamilk.org. 



Annual Nebraska LEAD Recognition Banquet March 8 in Lincoln

University of Nebraska Regent Jim Pillen will be the keynote speaker at the annual LEAD (Leadership Education/Action Development) Program recognition banquet March 8.

Pillen's address will provide insight on leadership development while addressing the need for quality leadership at all levels during the banquet honoring Nebraska LEAD Group 31 at the Nebraska East Campus Union on the University of Nebraska-Lincoln's East Campus.

Prior to the banquet, the Nebraska Agricultural Leadership Council will conduct its annual meeting at 4:45 p.m.  The council will elect 2013-14 officers to its board of directors.

Social hour will begin at 5:30 p.m. followed by the 6:30 p.m. banquet.

Banquet reservations are $25 and may be made by calling the Nebraska LEAD Program office at 402-472-6810 no later than March 5.

Nebraska LEAD 31 Fellows in alphabetical order are: Sondra Anderson, Harrisburg; David Bray, Omaha; Brandon Carter, Gothenburg; Chad Eisenmenger, West Point; Brock Elsen, Sumner; Josh Fries, Imperial; Jeff Henn, Omaha; Chandra Horky, Sargent; Jerad Hutchens, Lincoln; Tom Jasnoch, Ogallala; Tony Johanson, Oakland; Suzanna Klaasmeyer, Hershey; Sara Lemburg, Ewing; Matt Miller, Mitchell;  Sean Minahan, Plattsmouth; Gerri L. Monahan, Lincoln; Brian Mumm, Geneva; Nathan Oligmueller, Alliance; Tracy Olson, North Platte; David Pandorf, Callaway; Todd Reed, Lincoln; Jeremy Reineke, Gretna; Ryan Reuter, Minatare; Kurt Rewinkel, Wakefield; Joe Richeson, Gothenburg; Jim Schneider, Aurora; Rochelle Schoneberg, Sutton; Jeff Stuehmer, Lincoln; Desiree Wineland, Cambridge; and Michael Wisnieski, Omaha.

The purpose of the Nebraska LEAD Program is to prepare and motivate men and women in agriculture for more effective leadership.

The Nebraska LEAD Program is under the direction of the Nebraska Agricultural Leadership Council, a non-profit organization in cooperation with the University of Nebraska's Institute of Agriculture and Natural Resources and is supported by Nebraska colleges, universities, businesses, industries and individuals throughout the state.

Nebraska LEAD Program offices are located at the university's Institute of Agriculture and Natural Resources.



Argentine Agronomics – Despite High Corn Margins, Soybeans Outpacing Corn
(from USGC)

As harvest begins in South America, the world anxiously watches. Many end users are anticipating large Argentine and Brazilian crops following one of the worst droughts in recent memory in the United States. However, the dynamic of determining what Argentine farmers plant isn't as cut and dried as it is in America. According to DTN's South America correspondent, Alastair Stewart, the margins and return on investment would seem to provide a strong incentive to increase corn plantings, but Argentine farmers chose to ignore these data and increase soybean acres instead.

According to Agripac, a South American consultancy service, the first crop margin in Argentina for growing corn was an astonishing 36% higher than that of soybeans. Stewart contends this anomaly is caused by Argentina's increasing government intervention. The government manipulates corn exports via quotas, whereas soybeans can trade freely. That means, said Stewart, "that farmers can never be sure of getting full market price."

"It's really a currency play," noted Kevin Roepke, manager of global trade for the U.S. Grains Council. "Argentina is plagued with 20-30% inflation and Argentine farmers want a currency safe haven. In some aspects, it mimics why many investors have stockpiled gold around the world—growing soybeans is the safe play because there will always be a market for them."

Argentina has seen corn area harvested remain relatively flat over a 30 year time frame—up only 13.5%. Compare that to the explosive growth of Argentine soybean acres—up almost nine-fold over the same time period, according to USDA data. "It's really been a remarkable transformation," commented Roepke. "It started in the mid-80s when Argentine farmers first started to harvest more soy acres than corn. Since then, it's been an explosion."

The cost to produce soybeans in Argentina is the envy of the world. Stewart claims the cost of fertilizer and chemicals to produce an acre of soybeans in northern Buenos Airies is a resoundingly low $53 dollars per acre. Compare that to neighboring Brazil, where the cost stands at $189. Land rental is also significantly cheaper in Argentina, going for around $160 per acre. By comparison, Iowa State University's Ag Decision Maker pegs Iowa costs for herbicide tolerant soybeans following corn at $66 for chemicals and $276 per acre for cash rent.



Newly Updated Mobile E85 Locator App – More Features, More Interactive

Looking for E85 fuel?  There’s an app for that.  The Renewable Fuels Association (RFA) in partnership with the Iowa Corn Growers Association is unveiling a newly updated Flex-Fuel Station Locator application for iPhones, iPads, the iPod Touch and all Android devices.  The application is free and available in the App Store or the Android Marketplace.  The Flex-Fuel Station app will help users pinpoint any station in the United States offering E85.

New features of the app, which was first introduced in 2011, include:

• A Flex-Fuel Vehicle (FFV) Identifier
o After inputting make, model and year of a vehicle, the app will alert users if their car is Flex-Fuel or not, in order to help avoid misfueling.

• Route Planner
o Adds the ability for consumers to enter a starting and end point to determine E85 stations along a certain route.

• MPG Education
o Uses educational information from www.FuelEconomy.gov and includes other factors of MPG such as low tire pressure, wind, and driver actions.

• Search
o Includes the ability for consumers to enter state, city, or zip code to determine E85 stations in the immediate area.

• Add or Remove
o Gives app users the ability to alert the database of new stations, closed stations or other corrections not presently included in the location information used by the app.

“With more than eleven million flex-fuel vehicles in America, we wanted to make it easier, faster, and perhaps more educational and fun for drivers to find E85," said Robert White, RFA Director of Market Development. “Americans increasingly demand more fuel choice at the pump.  They want alternatives to petroleum, especially foreign petroleum.  They want fuels which are domestic, renewable, and environment-enhancing.  They bought FFVs for a reason and we want to keep fueling the change.”



February Farm Prices Received Index Decreased 20 Points

The preliminary All Farm Products Index of Prices Received by Farmers in February, at 197 percent, based on 1990-1992=100, decreased 20 points (9.2 percent) from January. The Crop Index is down 20 points (8.0 percent) and the Livestock Index decreased 3 points (1.8 percent). Producers received lower prices for lettuce, corn, broccoli, and wheat and higher prices for hogs, celery, rice, and oranges. In addition to prices, the overall index is also affected by the seasonal change based on a 3-year average mix of commodities producers sell. Increased monthly movement of cattle, milk, broilers, and hogs offset the decreased marketing of corn, soybeans, wheat, and grain sorghum.

The preliminary All Farm Products Index is up 16 points (8.8 percent) from February 2012. The Food Commodities Index, at 182, decreased 15 points (7.6 percent) from last month but increased 14 points (8.3 percent) from February 2012.

Prices Paid Index Down 1 Point
The February Index of Prices Paid for Commodities and Services, Interest, Taxes, and Farm Wage Rates (PPITW) is 219 percent of the 1990-1992 average. The index is down 1 point (-0.5 percent) from January but 8 points (3.8 percent) above February 2012. Lower prices in February for complete feeds, concentrates, feeder cattle, and supplements offset higher prices for diesel, gasoline, nitrogen, and other services.

Prices Received by Farmers
The February All Farm Products Index is 197 percent of its 1990-1992 base, down 9.2 percent from the January index but 8.8 percent above the February 2012 index.

All crops: The February index, at 230, decreased 8.0 percent from January but is 12 percent above February 2012. Index decreases for feed grains & hay, commercial vegetables, and oilseeds more than offset the index increases for fruits & nuts and upland cotton.

Food grains: The February index, at 249, is 3.1 percent below the previous month but 9.7 percent above a year ago. The February price for all wheat, at $7.75 per bushel, is down 37 cents from January but 65 cents above February 2012.

Feed grains & hay: The February index, at 295, is down 1.7 percent from last month but 10 percent above a year ago. The corn price, at $6.89 per bushel, is down 7 cents from last month but 61 cents above February 2012. The all hay price, at $194 per ton, is up $3.00 from January and $17.00 from last February. Sorghum grain, at $11.80 per cwt, is 20 cents below January but $1.00 above February last year.

Cotton, Upland: The February index, at 120, is up 0.8 percent from January but 21 percent below last year. The February price, at 72.7 cents per pound, is up 0.5 cents from the previous month but 19.6 cents below last February.

Oilseeds: The February index, at 248, is down 2.0 percent from January but 13 percent higher than February 2012. The soybean price, at $14.20 per bushel, decreased 10 cents from January but increased $2.00 from February 2012.

Livestock and products: The February index, at 163, is 1.8 percent below last month but up 3.2 percent from February 2012. Compared with a year ago, prices are lower for cattle, calves, and turkeys. Prices for broilers, milk, eggs, and hogs are up from last year.

Meat animals: The February index, at 162, is down 0.6 percent from last month and 2.4 percent lower than last year. The February hog price, at $65.90 per cwt, is up $2.10 from January and 40 cents higher than a year ago. The February beef cattle price of $124 per cwt is down $2.00 from last month and $3.00 lower than February 2012.

Dairy products: The February index, at 149, is down 2.0 percent from a month ago but 9.6 percent higher than February last year. The February all milk price of $19.40 per cwt is down 50 cents from last month but $1.70 higher than February 2012.

Poultry & eggs: The February index, at 180, is down 2.2 percent from January but 12 percent above a year ago. The February market egg price, at 77.6 cents per dozen, decreased 8.7 cents from January but is 10.7 cents higher than February 2012. The February broiler price, at 61.0 cents per pound, is unchanged from January but 8.0 cents above a year ago. The February turkey price, at 62.6 cents per pound, is down 0.3 cents from the previous month and 2.4 cents from a year earlier.



Japan Poised to Join TPP Negotiations
Floyd Gaibler, U.S. Grains Council Director of Trade Policy and Biotechnology

Following the recent meeting between President Barack Obama and Prime Minister Shinzo Abe, Japan could make a decision to formally join the Trans-Pacific Partnership (TPP) negotiations as early as next week. The joint U.S. – Japan statement issued on Feb. 22 emphasized that Japan would not have to make a prior commitment to unilaterally eliminate all tariffs upon joining the TPP negotiations.

Japan's entry could transform the agreement. Japan is the world's third largest economy, after the United States and China. It is the fourth largest U.S. agricultural export market overall, despite maintaining substantial import barriers in the food and agricultural sector. Japan is also the world's largest single-country importer of feed grains and the number one purchaser/importer of U.S. corn. Japan currently is also the top importer of U.S. barley, the second leading importer of U.S. sorghum, and the fourth leading importer of U.S. DDGS

TPP, however, could create pressure for Japan to make serious policy changes to its agricultural system, potentially making it more dependent on direct supports to farmers and less dependent on import protection. Full participation in TPP would force Japan to lower or remove tariffs on imported meat and poultry products, thus exposing Japanese producers to significant new competitive pressures. Abolition of government support schemes and price adjustment mechanisms between domestic and imported products would also become necessary under full TPP participation.

Reforms of the Japan livestock and feed industry are likely to have a significant impact on feed grain and meat imports from the United States as well. The U.S. Grains Council is engaged in detailed analysis of these impacts and stands ready to assist both U.S. exporters and our long-time partners in Japan in adjusting to these changes if and when TPP is adopted.



U.S. Farm Equipment Exports Up Last Year
Exports of U.S.-made agricultural equipment increased 16 percent in 2012 compared to the previous year for a total $12.8 billion, with Africa leading the way in growth, according to the Association of Equipment Manufacturers. The AEM says the numbers were released by the U.S. Commerce Department this week.

AEM notes the 16-percent gain for 2012 follows 23-percent growth in 2011 and 12 percent-growth in 2010, after a 2009 decline of 23 percent in the depths of the recession.

"While global pressures have affected export sales of U.S. agricultural machinery, we are optimistic that worldwide sales will remain positive. Commodity prices overall have been solid, and there is continued demand for the latest equipment to improve productivity," stated Charlie O'Brien, AEM senior vice president and agriculture sector leader. "Exports are vital for growth in the U.S. manufacturing and agriculture sectors, so it's imperative that our government focus on export and manufacturing policies that maintain and create American jobs."

U.S. exports of agricultural equipment to Africa gained 33 percent compared to the previous year for a total $443 million; exports to Asia increased 18 percent for a total $1.1 billion. South America's purchases of U.S. agricultural equipment in 2012 grew 19 percent to total $1.5 billion, and exports to Central America grew 15 percent to total $1.2 billion.

Europe's purchases of U.S. agricultural equipment gained 12 percent for a total $3.3 billion; exports to Canada grew 18 percent and totaled $4 billion; and exports to Australia/Oceania increased 6 percent to $1.2 billion.



Von Bergen Installed as NAWG President At Commodity Classic

Montana wheat and barley farmer Bing Von Bergen was elected and installed as the new president of the National Association of Wheat Growers at the Association’s Board of Directors meeting Thursday.

Von Bergen is a native of Moccasin, Mont., in the center part of the state. Prior to becoming a NAWG officer, he served in the officer corps of the Montana Grain Growers Association for five years and on the NAWG Board, chairing the Domestic and Trade Policy Committee in 2008 and 2009.

In addition to running his farm, Von Bergen is the co-owner of Heartland Seed Company, which specializes in small grain seeds as well as grass and alfalfa seed. He has also served in several leadership roles in his community, including on a local co-op board, bank board and school board.

After serving in the U.S. Army, Von Bergen attended Montana State University. He and his wife Lois have two college-age children.

As president, Von Bergen will also be serving as acting chief executive officer while the Association undertakes a search process for a new staff lead.

“I am entering this new role during what some may consider a challenging time for our Association and our industry, but I see a lot of opportunity for us to grow and improve,” Von Bergen said. “I appreciate my fellow growers entrusting me with these duties and responsibilities, and I will work diligently to ensure I live up to them.”

Other NAWG officers elected and installed at the Thursday meeting include:
-    Paul Penner, Hillsboro, Kan., as first vice president;
-    Brett Blankenship, Washtucna, Wash., second vice president;
-    Gordon Stoner, Outlook, Mont., secretary-treasurer; and
-    Erik Younggren, Hallock, Minn., immediate past presiden.

Members of NAWG’s Executive Committee, known as officers, commit to serve five years when they first run for the role of secretary-treasurer. The NAWG Nominating Committee and NAWG Board reaffirms their selection each year as they move into new roles on the officer team.



MONSANTO’S SEARCH FOR 2013 “FARM MOM OF THE YEAR” NOW UNDER WAY

           Monsanto’s search for America’s Farmers Mom of the Year is back for a fourth year to acknowledge the contributions of more than a million female farm operators in the United States.

           Anyone can nominate their favorite farm mom by visiting AmericasFarmers.com before April 23 and submitting a brief essay explaining how she contributes to her family, farm, community and agriculture. One regional winner will be selected by a panel of judges from American Agri-Women and Monsanto for each of the contest’s five regions. Profiles of the regional winners will be posted to AmericasFarmers.com, where online voting will determine the national winner, to be announced on Mother’s Day. Each regional winner will receive a $5,000 cash prize from Monsanto; the national winner will receive an additional $5,000 cash prize.

           “The number of female farm operators has grown exponentially over the past decade, and farm moms play a significant role not only on their farms and in their communities, but also to the American food supply and economy,” says Lisa Safarian, U.S. Row Crops Lead, Monsanto. “The America’s Farmers Mom of the Year contest is one small tribute to the amazing women who balance the responsibilities of family, home and farm, often while volunteering or working in their community and promoting agriculture as well.”

           Last year the America’s Farmers Mom of the Year contest received more than 900 nominations from 45 states. From this vast pool of worthy candidates, the judges selected five regional winners as diverse as their farming operations. Online voting on AmericasFarmers.com selected Debbie Lyons-Blythe, a rancher from White City, Kansas, as the national 2012 America’s Farmers Mom of the Year winner. Gov. Sam Brownback hosted a ceremony at Kansas’ Department of Agriculture to honor Lyons-Blythe in front of her family and friends as she was presented with her grand-prize check from Monsanto.

           “It’s inspiring to read so many nominations, each cast for a unique and special farm mom,” says Kris Zilliox of the American Agri-Women. “We’re looking forward to 2013 nominations, and will work diligently to select winners who represent American agriculture and the amazing women who support it.”

           “If you’ve ever lived in an agricultural community, your life was likely enhanced by a hardworking, humble farm mom,” Safarian said. “This is a great opportunity to say ‘thank you’ to that special woman, just in time for Mother’s Day.”

           Complete eligibility requirements and official rules for America’s Farmers Mom of the Year can be obtained online at www.AmericasFarmers.com or by sending a self-addressed, stamped envelope to America’s Farmers Mom of the Year, Attn: Nancy Hallahan, 914 Spruce Street, St. Louis, MO 63102.

           America’s Farmers Mom of the Year is an element of Monsanto’s America’s Farmers program, an advocacy effort promoting, recognizing and supporting U.S. farmers through communications, awards and special programs that highlight the importance of agriculture.