Tuesday February 5 Ag News

Extension Board Elects Officers
Deb Schroeder, Extension Educator, Cuming County

The 2013 Cuming County Extension Board met for their reorganizational meeting in January.  Paul Knobbe of Dodge was elected to serve a one-year term as president.  He will preside at the monthly meetings of the Extension Board as well as representing the Extension Board in any policy-making matters.  Members of the Board elected Sandy Rasmus of West Point to serve as vice president and Cindy Bloedorn of Wisner recording secretary. 

Other members of the Extension Board are Lori Urwiler, Wisner; Matt Peters, Pender; Margarita Flores, West Point and Chris Kreikemeier, West Point.  Mike Resson, West Point, Alan Meirgerd, West Point and Sandy Nekada, Wisner represent the 4-H Council of the Extension Board.

The Extension Board is the policy making body for the University of Nebraska –Lincoln Extension program in Cuming County.
The next meeting of the Extension Board will be Monday, February 25 at 7:00 p.m. in the Courthouse Meeting Room



4-H Council Elects New Officers
Deb Schroeder, Extension Educator, Cuming County

The 2013 Cuming County 4-H Council met for their reorganizational meeting on January 24.  Mike Reeson, West Point was elected to a one-year term as president. He will preside at the bi-monthly meetings of the 4-H Council as well as representing the county in any policy-making matters that come up.  Members of the board elected Nancy Glaubius, Wisner to serve as vice president and Anne Ausdemore, Wisner to be their recording secretary.  Brenda Doernemann, Dodge was elected treasurer.  Elected at 4-H Council’s representatives to the Extension Board were Sandy Nekuda, Wisner, Alan Meirgerd, West Point and Mike Reeson, West Point.

Other current members are Mike Reeson, West Point, Sarah Rolf, West Point, Jolene Svoboda, Pender, Kevin Borgelt, Beemer, Alan Meiergerd, West Point; Anne Ausdemore, Wisner; Brenda Doernemann, Dodge; Sandy Nekuda, Wisner; Katlyn Ahrens, West Point; Elliott Fullner, Wisner; Jarett Sindelar, Wisner; and Erica Lewis, West Point.

The 4-H Council is the policy making body for the Cuming County 4-H program and serves as the board of directors for the 4-H Foundation.

The next meeting of the 4-H Council will be Thursday, March 14, at 7:00 p.m. in the Courthouse Meeting Room.



AgCiting Science Opportunity
Patricia Bohoboj, Extension Assistant, Cuming County

Are you interested in science, animals, food, natural resources, or agriculture?  If so there is an opportunity for youth grades 1st to 4th to learn more about these areas using hands on activities and experiences.  This program is called AgCiting Science and it helps youth explore the different areas of agriculture through hands on activities.  Youth will learn about different areas of agriculture including animal agriculture, plant agriculture, natural resources, and the food production.  Youth will use hands on activities to explore how these topics relate to each other, science, and agriculture.  These activities will be held the last two Saturdays in February and the first two Saturdays in March, February 16th – March 9th.  The Saturday events will last two hours starting at 10:00 a.m. and go till 12:00 p.m.  This is a great opportunity for youth to learn about the agriculture industry that is important to our community and Nebraska.  If interested or to discover more details please contact Patricia at the Extension Office at 402-372-6006 or pbohaboj@unl.edu.  To be a part of the AgCiting Science experience please by Friday, February 15th.



Replacing Thin Alfalfa
Bruce Anderson, UNL Extension Forage Specialist

Are you thinking of trying to squeeze another year out of your alfalfa stand? Stay tuned as I discuss the wisdom of your decision.

Planting new fields of alfalfa is expensive. So many of us put off tearing up old fields and planting new ones. But is this smart?

Alfalfa stands usually reach peak production by year two or three. Thereafter, yields tend to decline each year. By year four or five, yields of many dryland fields are much lower than their peak years because subsurface moisture that plants were using during the early years is all gone. This is most noticeable during drought years when regrowth is almost zero after the first or second cut. Yield decline in irrigated fields is slower but usually is a ton or more lower by year five or six.

When you try to squeeze another year out of your alfalfa stand, you can lose two ways. First, and most obvious, is the lower yield of your old field compared to yields from a younger field. A second loss, though, is the lost rotation benefit received by crops like corn that follow alfalfa in the rotation. Not only will alfalfa reduce your nitrogen fertilizer needs by one hundred to one hundred fifty pounds over the next couple years, much research has shown that corn after alfalfa often yields ten to twenty bushels more per acre than it will even with extra fertilizer.

This rotation benefit could be especially valuable this year if corn prices stay high. So if you have alfalfa fields that are past their prime, or maybe show winter damage this spring, this might be an excellent time to rotate those fields to a different crop and plant some new, higher yielding acres to alfalfa.

Both your alfalfa crop and the rotated crop could benefit.



Iowa Crop and Weather Report for January

Temperatures  fluctuated widely  in  January with  temperatures  dipping below zero as well as rising near 60 in some areas.  Drought conditions continue across the State as little precipitation fell in January.

As  January  came  to  a  close,  topsoil moisture  levels  rated  46 percent very short, 44 percent short, 10 percent adequate, and 0 percent surplus.  The  driest  area  of  the State was  the  southwest  corner with 58 percent very short.  Over half the land is reported to be very short of moisture in 4 of  the 9 districts  in  the State.   Northwest, north central, west central and  southwest  Iowa  all  report  52 percent  or more  of  the  land  is  very short of moisture.

Grain  movement  rated  41 percent  none,  40 percent  light,  18 percent moderate and 1 percent heavy.  January had few weather events causing interruptions to grain transportation.

Availablity  of  hay  and  roughage  supplies  fell  to  47 percent  short, 52 percent  adequate  and  1 percent  surplus  with  33 percent  of  the remaining  supply  in  good  condition.   Livestock  conditions  have  been reported  as  normal.    Hog  and  pig  losses  in  January  were  20 percent light,  79 percent  average  and  1 percent  heavy.   Cattle  and  calf  losses were  22 percent  light,  77 percent  average  and  1 percent  heavy.  Although  wide  temperature  fluctuations  have  caused  some  stress  for cattle,  livestock  conditions  have  generally  been  normal.    Cattle  have been grazing on stocks following the melting of December’s snow.







IOWA PRELIMINARY WEATHER SUMMARY
Provided by Harry Hillaker, State Climatologist, Iowa Department of Agriculture & Land Stewardship

General  Summary.        Iowa  temperatures  averaged  21.6 degrees  or 2.2 degrees  above  normal  while  precipitation  totaled  0.96  inches  or 0.04 inches  above  normal.     This  ranks  as  the  44th warmest  and  66th wettest January among 141 years of records.

Temperatures.  Temperatures were variable  throughout  the month with no  extended periods of mild or unusually  cold weather.     The  coldest weather came on  the first and  last days of  the month, as well as on  the 21st.     Elkader  reported  the  lowest  official  temperature  of  the month with a -15 degrees reading on New Year’s morning.    The  lowest wind chills  were  recorded  on  the  morning  of  the  21st  with  a  -34 degrees reading  at Mason  City.      Finally,  the  daytime maximum  temperature climbed  to only  -2 degrees  at Northwood on  the 31st.     Mason City’s wind chill on  the 21st and Northwood’s subzero high on  the 31st were the lowest such readings in Iowa since February 8, 2011.   On the other extreme, there were a few daily record high maximum temperatures set or  tied  over  portions  of  southern  and  eastern  Iowa  on  the  11th,  19th, 28th and 29th.     Creston and Mount Ayr  recorded  the month’s highest temperatures  with  64 degrees  readings  in  the  pre-dawn  hours  of  the 29th.

Heating Degree Days.     Home  heating  requirements,  as  estimated  by heating  degree  day  totals,  averaged  11%  greater  than  last  January  but 6%  less  than  normal.      Degree  day  totals  so  far  this  heating  season (since July 1, 2012) are running 8% more than one year ago and 6% less than normal.

Precipitation.     The  new  year  got  off  to  a  very  dry  start with  a  near-record low pace of precipitation into the 27th.   There was one statewide rain event on the 10th-11th which brought up to seven tenths of an inch to  Fort Madison  and  Keokuk.      However  a  far  more  active  weather pattern prevailed the last few days of January with two larger statewide rain  events  on  the  27th  and  28th-29th.      Widespread  freezing  rain occurred on the 27th with glazing of one-quarter inch or more common over  the  northeast  one-third  of  Iowa.      Thunderstorms  rumbled  over most of the southeast two-thirds of Iowa the night of the 28th with rain amounts of over an inch common over eastern Iowa.    There were even a  few  reports of  large hail  from Benton and Delaware counties on  the evening of  the 28th.     A statewide average of only 0.7  inches of snow fell across the state through the first four weeks of January.   However, heavy snow fell from south central through northeast Iowa on the night of  the 29th  into  the 30th.     Storm  totals of  seven  to eight  inches were common from Indianola to Guttenberg.   Winds gusting from 35 to 45  mph  accompanied  the  snow  on  the  30th  resulting  in  dangerous  travel conditions  and  forcing  the  closing  of  schools  across  much  of  the southeast  two-thirds  of  the  state.      Despite  the  late-month  storm  the statewide  average  snowfall  was  only  3.6  inches  or  4.1  inches  below normal.     This was the  lowest January snow  total since 2006 and ranks 19th  lowest  for  the month among 126 years of  records.   January snow totals varied from only a trace at Swea City to ten inches at Guttenberg.   Monthly precipitation totals were above normal across eastern Iowa and well below normal over the northwest.   Totals varied from 0.14 inches at Castana to 2.75 inches at Le Claire.



Farm Poll: Cell Phones Common among Iowa Farmers

About 70 percent of farmers report using at least one technology that provides them with Internet access, according to the 2012 Iowa Farm and Rural Life Poll.

“Internet and mobile communications technologies are becoming more widespread for communicating with farmers, and we wanted to know which technologies farmers are actually using,” said J. Gordon Arbuckle Jr., a sociologist with Iowa State University Extension and Outreach. Arbuckle co-directs the annual Iowa Farm and Rural Life Poll with Paul Lasley, another ISU Extension and Outreach sociologist.

“We provided Farm Poll survey participants with a list of communication technologies and asked them to select the ones they own or use regularly,” Arbuckle said.

A basic cell phone was the most common communications technology used by farmers in the survey. Seventy-five percent reported that they own and/or regularly use a cell phone without Internet access. Fifty-eight percent reported that they have or regularly use a computer with high-speed Internet access.

According to Farm Poll data, about 11 percent of farmers reported that they use a smartphone. Eleven percent had a computer with dial-up Internet access, 10 percent own or use a tablet computer such as an iPad or Kindle and 5 percent reported using a cell phone with Internet access.

“One of the motivations for this research was that a number of online surveys conducted by agricultural press organizations have found that a relatively high percentage of respondents report smartphone use.” Arbuckle said. “We felt that the online nature of such surveys might bias samples toward farmers who use such technologies. Our results indicate that, at least in Iowa, the percentage of farmers who use smartphones is substantially lower than some estimates.”

Arbuckle cautioned, however, that the Farm Poll, because it is a panel study that surveys the same farmers each year, is somewhat biased toward older farmers. “To the extent that older farmers are less likely to use more sophisticated communications technology, our results might underestimate the use of some technologies,” he noted.

“That said, use of high-tech communications technology in agriculture is definitely on the rise,” Arbuckle said. “From an ISU Extension standpoint, these developments are exciting, because they offer more ways to provide research-based information to farmers and the agribusinesses who serve them. I look forward to asking these questions again in a few years to see how things have changed.”



IFBF Appoints Farm Business Development Manager

Iowa Farm Bureau Federation (IFBF) is pleased to welcome Nathan Katzer as their new Farm Business Development Manager. The native of Creston began his new role Monday.

Although the average age of Iowa farmers is 57 years old, the thriving agriculture sector has created a resurgence of new and young farmers entering the industry. "Transitioning farming operations to the next generation and establishing a clear succession plan came through strongly in our meetings with young farmers and others as part of our recent strategic planning process," said Joe Johnson, IFBF field service director. The creation of the Farm Business Development Manager position is a direct response to the needs of Iowa Farm Bureau members.

As Farm Business Development Manager, Katzer will be developing and conducting programs and services that will help members begin new farm businesses, improve their existing farm and business management skills, and improve net farm income. In addition, Katzer will also be working to develop and facilitate programs that assist in farm business transition and help beginning farmers enter agriculture.

Katzer earned his undergraduate degree in Public Service & Administration in Agriculture and Agronomy from Iowa State University. Katzer's background includes experience in agriculture business development, financial risk management, and grain marketing.

"This position can add value for the Farm Bureau members seeking resources and information on the key issues affecting Iowa farm families. Ensuring every farming generation has the support and advocacy to be successful is imperative to the sustainment of Iowa agriculture," said Katzer.

Katzer and his wife, Jennifer, have one son.


 
NCGA Announces Board Candidates for 2014

Eight corn growers from around the country have been nominated for election to the National Corn Growers Association's Corn Board for the 2014 fiscal year, which begins Oct. 1. New board members will be elected by state delegates at the Corn Congress this July in Washington.

"We appreciate the interest and dedication of the corn farmers who want to be active in our association and help lead it," said Garry Niemeyer, NCGA chairman and chair of the nominating committee. "We once again have a great slate of candidates that will serve our industry well. We wish them all the best and thank them for getting involved."

Those nominated are, in alphabetical order:

Ronnie Burleson, Richfield, N.C. Burleson grows corn, soybeans, wheat and cotton in North Carolina with his son, brother and nephew. Together, they also raise beef cattle and operate a family-owned cotton gin. He is president of the Corn Growers Association of North Carolina and a director of the North Carolina Farm Bureau.

Rob Elliott, Cameron, Ill. Elliott is running for reelection to the board. A past president of the Illinois Corn Growers Association, he farms with two brothers and a nephew in west central Illinois, where they raise corn and soybeans. They also have run a full-service seed business for more than 30 years.

Jon Holzfaster, Paxton, Neb. A current Corn Board member, Holzfaster owns and operates the same farm in southwest Nebraska that his family has for three generations. On their farm, they produce corn, popcorn, soybeans, dry edible beans, wheat and alfalfa. Together, his family also operates a non-commercial feed yard that utilizes feed produced on the farm.

David Howell, Middletown, Ind. A member of NCGA's Trade Policy and Biotechnology Action Team, Howell is also a director of his state corn growers association and marketing board. He operates a first-generation family farm which he founded with his wife. Along with their two sons, they grow corn and soybeans as well as processing tomatoes and pumpkins marketed to major retailers nationwide.

Kevin Ross, Minden, Iowa A former president of the Iowa Corn Growers Association, Ross is a sixth-generation family farmer in southwestern Iowa. Along with his wife, Sara, he grows corn, soybeans, alfalfa and runs a cow/calf operation. Growing corn almost exclusively using no-till methods, they hope to someday pass the farm on to their two young sons.

Gary Schmalshof, Adair, Ill. Schmalshof is a former chairman of the Illinois Corn Marketing Board and has served on the Executive Committee of the U.S. Grains Council. He farms with his wife, Theresa, and their two sons, with whom he also runs a trucking and seed business as well as a crop insurance agency.

Wesley Spurlock, Stratford, Texas Spurlock is a current board member running for reelection and is a director of the Corn Producers Association of Texas and his state's checkoff board. He farms irrigated corn, cotton, wheat and grain sorghum in the upper Texas panhandle while also running his own harvesting and spray company and equipment sales and welding shop.

Paul Taylor, Esmond, Ill. Taylor is vice chair of NCGA's Ethanol Committee and president of the Illinois Corn Growers Association. He continues a farming tradition on land which has been in his family for nearly 100 years. There, he raises corn, seed corn, food-grade non-GMO soybeans and canning vegetables for Del Monte, including sweet corn, lima beans and green peas.

More information about these candidates will be released in the Nominating Committee Report at the upcoming NCGA Corn Congress, to be held Feb. 28 and March 2 at Commodity Classic in Kissimmee, Fla.



Study: No Advantage to Delaying Calf Implants at Feedlots

Two recent studies by Kansas State University scientists indicate that delaying administering growth-promoting implants to calves did not provide an advantage over implanting immediately upon arrival at a feedlot.

"There has been speculation in the beef industry that calves at high risk of developing respiratory disease would benefit if an implant was not given immediately upon arrival at the feedlot, but rather was delayed and given after a few weeks' time," said Chris Reinhardt, feedlot specialist with K-State Research and Extension. "The idea was to allow high-risk calves to become better acclimated to the feedlot and the new environment in general, as well as to get over any respiratory disease challenges they had upon arrival. Until now, however, there has been no data to support or refute that theory."

Reinhardt, teamed up with K-State veterinarian Dan Thomson, in two studies to test the theory. Thomson is director of K-State's Beef Cattle Institute. The research was supported by a U.S. Department of Agriculture Animal Health Grant.

The first study followed 1,600 high-risk steers at a commercial Kansas feedlot. Half the steers were given the growth-promotant implant Revalor-XS immediately upon arrival, and the other half were implanted six weeks after arrival. The researchers monitored the steers' health and growth rate from arrival through harvest.

"The results indicated that delaying the implants did not improve any health or performance outcomes over providing the implant upon arrival," Reinhardt said. "Providing the implant on arrival actually led to a numerical improvement in carcass weight at slaughter."

The second project, a small metabolism study, was conducted at the K-State research farms.

"We conducted the second study to look more deeply into the metabolic factors at play in calves undergoing nutritional stress in the presence or absence of an implant," Reinhardt said. "We learned that there are certain factors that implants alter. But we also found that nutrient supply and presence of the implant did not interact."

The results of the second study somewhat confirmed what the scientists found in the first study -- that the disease process, and any potential nutrient stress brought on by disease -- did not suppress the activity of the implant given upon feedlot arrival, he said. That suggests that high-risk calves can be implanted immediately upon feedlot arrival with no detrimental impact on health or performance (such as growth and weight gain) outcomes.



World Pork Expo celebrates 25th anniversary, June 5-7

The world’s largest pork-specific trade show … a wide range of educational seminars … breeding-stock shows and sales … succulent pork products … fun and fellowship — these are just a few reasons to attend the 2013 World Pork Expo. Brought to you by the National Pork Producers Council (NPPC), this year’s event marks the Expo’s 25th anniversary. It is scheduled for June 5 through 7 at the Iowa State Fairgrounds in Des Moines, Iowa.

“World Pork Expo always showcases the latest innovations and information, making it the place to be for pork-industry enthusiasts each June,” says Doug Fricke, director of trade show marketing, NPPC. “This is one year you won’t want to miss as the industry celebrates the Expo’s 25th anniversary. Now’s the time to start your travel plans as official World Pork Expo hotels fill up quickly.”

In 2012, nearly 20,000 pork producers and industry professionals from 38 countries attended Expo, and organizers expect a similar showing this year. Last year’s event set records for the number of pigs in the Junior National show and the quantity of meals served at the Big Grill, and featured a one-time event showcasing the world’s largest pork burger.

Attendees will find the latest pork-production technologies, products and services on display by more than 400 U.S. and international commercial exhibitors. The trade show is open from 8 a.m. to 5 p.m. on Wednesday, June 5, and Thursday, June 6, and from 8 a.m. to 1 p.m on Friday, June 7. This year’s Expo will debut an additional trade-show location — the Agriculture Building, which is located next to the main entry gate and the Big Grill.

High on the list of must-see events are the free business seminars, which take place throughout the day on both Wednesday and Thursday. Seminar topics are designed to provide solutions for on-farm production needs, including marketing options, herd-health protocols, feeding strategies and current issues

You can glimpse future pork industry leaders at the Junior National swine show, which is hosted by the National Junior Swine Association and Team Purebred. Last year, the show set records with 700 juniors from 26 states exhibiting 2,177 hogs. Rounding out the swine exhibits are the purebred, open-class swine shows, followed by a public sale.

Of course there’s no shortage of mouth-watering pork. Each day, Expo attendees can head to the Big Grill to enjoy a free pork lunch. Last year, the grill masters served a record-setting 10,000 meals.

Adding to the festive atmosphere is MusicFest, a social highlight on Thursday afternoon where Expo attendees can relax, enjoy roast pork and refreshments, and listen to live music.

Several pre-Expo tours are being planned to enable producers from other countries to experience Midwestern agriculture — and hospitality — at its finest before the exposition begins.

Whether shopping for innovative products, learning more about the latest research and production techniques, looking to consult with industry experts, or simply networking with old and new friends, the 2013 World Pork Expo is the place to be, June 5 through 7.  

Online registration will open mid-March at www.worldpork.org. The website also has the latest details about room availability at the official Expo hotels in its “Hotel/Transportation” section. More information is available when you connect with World Pork Expo on Facebook, follow World Pork Expo on Twitter (#NPPCWPX) or download the official app by searching for “World Pork” in the Apple Store, Android Market or Blackberry’s App World.

World Pork Expo, the world's largest pork-specific trade show, is brought to you by NPPC. On behalf of its members, NPPC develops and defends export markets, fights for reasonable legislation and regulation, and informs and educates legislators. For more information, visit www.nppc.org.



CHS returns record $600 million to cooperative owners

Farmers, ranchers and cooperatives across the United States will share in a record estimated $600 million disbursement from CHS Inc. (NASDAQ: CHSCP), an energy, grains and foods company and the nation's leading agricultural co-op. The payments mark the largest cash return ever made by a U.S. cooperative.

"One of the most important ways we help our producer and co-op owners grow is by delivering an economic return on the business they do with us," said David Bielenberg, CHS board chairman and a Silverton, Ore., farmer. "This – along with the quality energy and crop inputs, crop marketing and services we provide year-around – underscores the added value of being a cooperative system owner and customer."

The cash return to owners is based on record CHS net income of $1.26 billion for the fiscal year ending Aug. 31, 2012.

The distribution beginning this month to nearly 1,200 member cooperatives and nearly 50,000 individual members and others includes cash patronage paid based on their fiscal 2012 business with CHS. CHS is also distributing cash to member cooperatives to redeem equity in the company they earned in prior years. In addition, CHS will redeem equities of eligible individual members throughout 2013 and will also pay quarterly dividends to owners of CHS preferred stock.

Since its creation in 1998, CHS has returned more than $3.1 billion in cash to its agricultural producer and member cooperative owners, $1 billion of that in the 2012 and 2013 fiscal years.

Patronage is based on business done with CHS by member-owner cooperatives and individual farmers and ranchers during fiscal 2012, while equity redemptions and preferred stock distributions represent retirement of ownership in CHS earned in past years.



Biodiesel Goes High-Stakes with Ten Year Vision

It's Vegas, and the winning bet is on growth for biodiesel, America's advanced biofuel. American jobs and clean air stand to benefit as the industry pushes towards its new 10-year vision: 10 percent of the on-road diesel market by 2022.

"It is not about replacing every drop of petroleum; it is about continuing to diversify transportation energy so we can meet our needs affordably and sustainably," said National Biodiesel Board CEO Joe Jobe.  "Biodiesel will play an increasing role to help protect fuel consumers and the US economy from unstable energy markets that are grossly distorted by political factors in the most politically unstable region in the world and by nationalized oil companies of totalitarian regimes." 

Eight years ago NBB set a goal to be 5 percent of the diesel fuel supply by 2015, a goal then viewed as aggressive. With a billion gallons produced in 2011 and 2012, the biodiesel industry is well on its way to achieve that goal and possibly hit it earlier than expected.

"No one could have predicted the changes and challenges of this industry, but we have been deliberate and intentional as we map our potential," Jobe continued. "This year, biodiesel marks 20 years for the trade association, 10 years for the conference and lays out the vision for the next ten years to come."

Announced today at the Biodiesel Conference & Expo, the industry's 10x22 goal envisions a more diversified future energy portfolio that would include biodiesel making up 10% of the diesel fuel supply.  This goal is benchmarked to the onroad volumes but expected to be used in various blend levels in various applications. The goal is intended to be a stretch but yet attainable.  It accounts for continuing technological breakthroughs in research on raw materials like one announced today.

Researchers at the Danforth Plant Science Center have developed technology that has demonstrated 2 percent and possibly higher increases in the oil content of soybeans.  Preliminary data suggests these benefits occur without loss of yield or negative impacts on protein quality.  The development has the potential to add one-half billion gallons of oil to the feedstock supply in the near term without negatively impacting soybean meal and animal feed. 

The biodiesel industry already is accounting for the vast majority of the advanced biofuel production called for under the Federal Renewable Fuel Standard.  As ongoing research continues to support more biodiesel growth the industry looks forward to the development and innovation that the coming decade will bring.



CWT Assists with 4.7 Million Pounds of Cheese Export Sales

Cooperatives Working Together (CWT) has accepted 13 requests for export assistance from Bongards Creameries, Dairy Farmers of America, Darigold and United Dairymen of Arizona to sell 4.696 million pounds (2,130 metric tons) of Cheddar, Gouda and Monterey Jack cheese to customers in Asia, the Middle East, North Africa and South America. The product will be delivered February through July 2013.

From the year-to-date, CWT has assisted member cooperatives in selling 19.312 million pounds of cheese, 9.760 million pounds of butter and 88,185 pounds of whole milk powder to 23 countries on six continents. These sales are the equivalent of 391 million pounds of milk on a milkfat basis. That is the annual production of 18,600 cows.

Assisting CWT members through the Export Assistance program positively impacts producer milk prices in the short-term by helping to maintain inventories of cheese and butter at desirable levels. In the long-term, CWT’s Export Assistance program helps member cooperatives gain and maintain market share, thus expanding the demand for U.S. dairy products and the farm milk that produces them.

CWT will pay export bonuses to the bidders only when delivery of the product is verified by the submission of the required documentation.



Abiove Raises 2013 Soy Forecast

Brazilian soy-industry association Abiove raised its forecast for soy production for the 2013 growing season, while cutting its estimate for the 2012 season.  The group raised the forecast for 2013 to 82.3 million metric tons from 81.6 million tons in its December forecast. The estimate for 2012 was trimmed to 67.3 million tons from 67.7 million.  The group also reduced its estimate for soy processing in 2012, to 35 million tons from 35.4 million tons.



ADM Reports Strong 2Q Earnings

Archer Daniels Midland Co.'s (ADM) fiscal second-quarter earnings surged as the agricultural giant reported stronger revenue and impacts from a big asset write-down a year earlier.

Chairman and Chief Executive Patricia Woertz is aiming to take the U.S. company to the heart of Asia, but she has twice been spurned in efforts to acquire GrainCorp Ltd. (GNC.AU) of Australia.

ADM in October launched its bid to acquire GrainCorp to gain access to its grain storage and ports on Australia's east coast, the beachhead for exporting grain to China and the rest of Asia. ADM recently sold stakes in Gruma SAB (GMK, GRUMA.MX) and several of its units for $450 million, with proceeds earmarked to pay for the GrainCorp deal.

"We continued taking action to improve underperforming businesses," Ms. Woertz said Tuesday. "As part of our ongoing portfolio management, we sold $570 million of noncore investments. And through a companywide focus, we unlocked more than $1 billion in working cash."

In the U.S., ADM has been under pressure from high corn prices caused by last year's drought in the Midwest, while sluggish gasoline demand has further pressured ethanol margins.

For the quarter ended Dec. 31, Archer Daniels reported a profit of $510 million, or 77 cents a share, up from $80 million, or 12 cents a share, a year earlier. Excluding inventory-related gains, a year-earlier asset write-down and other items, adjusted earnings were up at 60 cents from 51 cents. Revenue increased 6.9% to $24.92 billion.

Analysts polled by Thomson Reuters most recently projected earnings of 58 cents a share on revenue of $21.22 billion.

Gross margin rose to 4% from 3.5%.

Adjusted earnings in ADM's corn-processing segment returned to the black absent a year-earlier asset write-down and as results improved at its sweeteners-and-starches business, which benefited from tight supplies and higher corn costs that supported price increases. However, ethanol margins remained negative, weighing on results.

Profit in ADM's agricultural-services segment, which includes grain storage and exports, reported revenue growth of 32%.

Oilseeds-processing-segment earnings soared 97%, as stronger profits at ADM's crushing and origination business helped offset declines in its biodiesel segment.



Rabobank Report Explores How U.S. Cattle Feeding Industry Will Supplement Imminent Declines in Mexican Exports

Over the last 30 years, Mexico has become an aggressive exporter of feeder cattle to the United States. The U.S. has relied so heavily on these imports to supplement supply that experts are now calling the levels of imported Mexican feeder cattle unsustainable.

According to a new report from the Rabobank Food & Agribusiness Research and Advisory (FAR) group, the availability of cattle for shipment is expected to post a steep decline in 2013, leaving the U.S. cattle feeding industry searching for ways to make up for this sharply reduced supply.
“Record high feeder and calf prices in the U.S., as well as a favorable exchange rate, were factors in a surge of exports to the U.S. over the last two to three years,” notes report author Don Close, Vice President, Food and Agribusiness Research & Advisory, Animal Protein. “However, it was really the severe drought in 2011 that prompted such a notable increase in exports to the U.S. so that the levels became unsustainably high.”

A critical result of the drought-induced surge in feeder cattle imports from Mexico over the past two and a half years has been a substantial increase in the shipment of heifers. When U.S.- Mexican feeder trade began to gain steam, 90 percent of the cattle exported by Mexico were steers. By September 2012, spayed heifers accounted for more than a quarter of all shipments. Such an escalation in heifer shipments signals a depletion of total Mexican cattle supplies.

“We’re going to see a depleted inventory, of course, but more importantly, there is going to be a sharply reduced retention of potential replacement heifers,” says Close. “We’ll undoubtedly see lower shipments of feeder cattle into the U.S. for the next two to three years, as well as challenges for the Mexican cattle industry related to rebuilding a supply that will bring exports to the U.S. on par with historical levels.”

Because the shipments of Mexican cattle have reached an unsustainable level and will inevitably decline, the critical question now is how will the U.S. cattle feeding industry make up for a reduced supply of feeder cattle from Mexico.

“Cattle feeders are going to need to change several aspects of how they procure cattle, starting with becoming more dependent on feeders from the southeast cow/calf complex,” says Close.

As a result, southern U.S. cattle feeders will be forced to look further north and be more price-competitive in the central and western U.S., in spite of the freight disadvantage. With the U.S. cow/calf herd already at a 50-year low, such new competition is likely to force feeders with weaker supply sources or weaker operating finances out of the market.

Finally, it can be expected that the U.S. cattle feeders will be required to return to Canada for available feeder cattle numbers.

Historically, the Mexican cattle feeder exports into the U.S. show a five- to six-year cycle of spikes and drop-offs. However, experts anticipate the current decline may require additional time to rebuild due to the increased heifer exports, which will make rebuilding herds a slower process.