Thursday March 21 Ag News

UNL Report: Agland Values Up Again, but Trend May Reverse in Next Year

Despite an extreme drought and indicators of weaker agricultural earnings on the horizon, Nebraska's agricultural land markets remain strong, with an overall increase of 25 percent in the last year, according to preliminary findings from the University of Nebraska-Lincoln.

Following the advances of 22 and 32 percent in the previous two years, the 2013 all-land value of $3,040 per acre is more than double the value in early 2010.

"Few would disagree that this period has clearly been a land boom," said UNL agricultural economist Bruce Johnson, who leads the annual Nebraska Farm Real Estate Market Developments survey.

Survey reporters across the state reported percentage gains for all the farmland classes for the period from Feb. 1, 2012 to Feb. 1, 2013, but "the variation across the classes as well as across sub-state regions was extreme," Johnson said.

Drought conditions in 2012 lifted market demand for irrigated cropland, Johnson said, as irrigated land classes had the largest percentage value gains across the state.

"Income flows from irrigated land have been phenomenal in recent years, and 2012 was no exception," he said. "The combination of favorable irrigated yields while widespread drought was seen across the nation's Corn Belt fueled high crop commodity prices."

In the southern parts of Nebraska (Southwest, South, and Southeast districts) the percentage value advances for irrigated land were particularly strong over the past year.

For dryland cropland values, the percentage increases over the past year varied greatly across the state. In the Northwest and North districts, the value gains were below 10 percent, while reported values were more than 30 percent higher in the South and Southeast districts. The land class, dryland cropland with irrigation potential, shows considerable variation as well. The presence of water moratoriums across much of the state precludes irrigation development even if groundwater sources exist.

Despite the heavy toll of drought that cut forage capacity as much as 50 percent or more during the 2012 grazing season, grazing land value values still rose, Johnson said.

"Forage shortfalls for cattlemen may have actually caused a more spirited bidding for additional land just to maintain their cow herd numbers," he added. "Unfortunately, even if the drought ends quickly, it may be several years before grazing capacity may be able to return to pre-drought levels."

Survey reporters "frequently commented that current land prices being paid seem over-optimistic," Johnson said. "In turn, when asked what they expected land value movements to be for the remainder of 2013 as well as out three to five years, the vast majority saw a market which had topped out with little if any upward movement in the near future.

"In fact, a sizable number of reporters thought values could weaken somewhat in the next few years," he added.

Survey reporters also indicated that 2013 cash rental rates for cropland were up from 2012 levels. Preliminary estimates for dryland cropland cash rents in eastern Nebraska averaged about 8 percent above a year ago, while rates in the rest of the state rose 5 percent or less. The increase was much below the annual rises of the past few years, reflecting the seriousness of soil moisture deficits going into the 2013 crop year.

Across the state, center pivot irrigated cropland cash rental rates for 2013 were reportedly 13 to 15 percent above a year earlier. Reported rates for the high-third quality center pivot cropland were over $400 per acre across the eastern third of the state. The value of water in rain-deficit periods, particularly with the efficiency of the center pivot technology, is clearly being reflected in these rates.

Pasture land rates on a per-acre basis moved upward for 2013 in most regions of the state. Last year's forage production shortfalls with depleted carry-over stocks into this year have sharpened the market for pasture, even though the potential grazing output will very likely be below normal for the year. On a cow-calf pair per month basis, the rates were up from a year earlier in all regions with most districts showing gains in the 3 to 6 percent range.

Comparing the recent percentage gains in value of agricultural land classes with the associated lower percentage gains in cash rental rates indicate a continuing pattern of lower rent-to-value ratios associated with all farmland classes, Johnson said.

"At some point, the implied economic returns to land as a percent of value can fall to a point where market participants say 'enough' and no longer bid values higher," he said. "Here in Nebraska, we well may be quickly approaching that point."

The findings in this report are preliminary. A final report will be released this summer.   

More information, including tables showing details of average land values for all classes of land, is at www.agecon.unl.edu. Click on the March 21 Cornhusker Economics.



NE CLIMATE ASSESSMENT RESPONSE COMMITTEE TO MEET

Bobbie Kriz-Wickham, assistant director of the Nebraska Department of Agriculture, has scheduled a meeting of the Climate Assessment Response Committee (CARC) for Monday, March 25.  The meeting will begin at 1:30 p.m. at the East Campus Student Union of the University of Nebraska-Lincoln.  Climate officials will brief CARC members on existing, as well as predicted, weather conditions and provide a water availability outlook.  Mitigation activities will be discussed.  For more details, call the Nebraska Department of Agriculture at (402) 471-2341.



Contract Grazing Fact Sheet Series Now Available

A new four-part series of fact sheets on contract grazing for cattle is now available on the Iowa Beef Center (IBC) website. The resource was developed by a specialized working group within the Green Lands, Blue Water project, including two Iowa State University specialists. Joe Sellers, ISU Extension and Outreach beef specialist, and Andy Larson, small farms specialist with ISU Extension and Outreach, worked with project members from Wisconsin and Minnesota to identify needs and information for those who graze cattle.

“Our group has been working on the fact sheets as a source of assistance to graziers and cattle owners who use custom grazing in their management schemes,” Sellers said. “As cow numbers increase and available pasture acres decrease, we want people to recognize and learn more about options for their operations.”

One such option is the development of working partnerships with other producers to access pasture through contract grazing. Each fact sheet focuses on one topic related to contract grazing: contract grazing basics, evaluating land suitability, rental and lease agreements, and contract grazing rates.

The fact sheets can be viewed, download and printed at no cost from these links:
-    The Basics of Contract Grazing  www.iowabeefcenter.org/information/ContractGrazing1Basics.pdf
-    Evaluating Land Suitability for Grazing Cattle www.iowabeefcenter.org/information/ContractGrazing2LandEval.pdf
-    Pasture Rental and Lease Agreements www.iowabeefcenter.org/information/ContractGrazing3Leases.pdf
-    Rates Charged for Contract Grazing Arrangements www.iowabeefcenter.org/information/ContractGrazing4Rates.pdf

This resource can be used to supplement existing grazing-related information on the IBC website, specifically under “Cattle Grazing Survey 2007”... http://www.iowabeefcenter.org/research_projects.html.  



INTERNATIONAL LEADER IN GLOBAL SUSTAINABLE DEVELOPMENT TO SPEAK AT ISU APRIL 7

An internationally recognized scientist and World Food Prize recipient will speak about opportunities and challenges for advancing integrated sustainable development during the 2013 Shivvers Memorial Lecture at Iowa State University.

Hans Herren's talk, "Changing Course in Global Agriculture," will be at 7 p.m. Sunday, April 7, in the Memorial Union Sun Room. It is free and open to the public.

Herren is president of the Millennium Institute, an international non-governmental organization that facilitates sustainable development. A Swiss entomologist, Herren received the 1995 World Food Prize for leading a major biological pest development campaign in Africa, successfully fighting the cassava mealy bug and averting a catastrophic food shortage.

Over the years, Herren's interests shifted toward integrated sustainable development, in particular, linking environmental, plant, animal and human health issues. Herren points to three major challenges in food systems: finding solutions to sustainable productivity, feeding a growing global population and rising food prices.

The Millennium Institute's president since May 2005, Herren previously was director-general of the International Center for Insect Physiology and Ecology in Nairobi, Kenya. He also served as director of the Africa Biological Control Center of International Institute of Tropical Agriculture in Benin.

Herren is the recipient of numerous awards that recognize his distinguished and continuing achievements in original research, including election to the U.S, National Academy of Sciences and to the Academy of Sciences of the Developing World.

Herren's presentation is co-sponsored by the Leopold Center for Sustainable Agriculture and the Committee on Lectures, which is funded by the Government of the Student Body. More information on ISU lectures is available online at http://www.lectures.iastate.edu, or by calling 515-294-9935.



Congress Approves CR
(from NAWG)

Congress has successfully passed a Continuing Resolution (CR) to fund the government for the next six months. The House passed their version of the CR earlier this month.  After eight days of floor debate, the Senate passed an updated version of their CR on Wednesday with a vote of 73-26. The Senate bill went much further than the House bill, and included appropriations for the departments of Defense, Veterans Affairs, Justice, Commerce, Agriculture and Homeland Security. As part of a deal with the House Republicans, the Senate bill didn’t overturn sequester, but included an amendment offered by Senators Roy Blunt (R-Mo.) and Mark Pryor (D-Ark.). The amendment allows the USDA to shift money from other areas of their budget to avoid furloughing meat inspectors. The House approved the Senate bill with a vote of 318-109. The bill will be sent to the White House, and is expected to be signed into law this week. 



House Passes Continuing Resolution Funding FSIS Inspectors

The National Cattlemen’s Beef Association (NCBA) applauds the action of the House and Senate as this morning the House passed H.R. 933, the continuing resolution which contained a similar amendment to that which passed the Senate yesterday. The amendment, authored by Senators Roy Blunt of Missouri and Mark Pryor of Arkansas would shift $55 million from the United States Department of Agriculture’s (USDA) accounts to pay Food Safety Inspection Service (FSIS) inspectors through Oct. 1, 2013, when the new fiscal year begins. The bill now heads to the President’s desk for his signature.

“This is great news for every segment of American agriculture,” said NCBA President Scott George a cattleman from Cody, Wyo. “With this shift of finances, Congress was able to avoid the crisis created by the administration and keep FSIS inspectors in the plants where they belong. While cattlemen and women were disappointed Secretary Vilsack threw in the towel on his agency’s 107-year-old duty to provide federal food safety inspections, we sincerely thank Senators Blunt and Pryor for ensuring the nation’s food supply will not be limited by politics.”

Under the Federal Meat Inspection Act of 1906 and related legislation, all meat, poultry and egg products produced here in the United States or imported must be inspected by a federal food safety inspector and that service must be paid for by the federal government. Without the inspection, no product can be sold or shipped interstate.

“Had inspection been halted, this would have resulted in a backlog of animals, shortened supply of beef to market, higher prices and harm to the futures markets,” said George. “By the Secretary’s own estimates, this would have equated to $10 billion in production losses and $400 million in lost wages, only compounding the issues faced by ranchers dealing with the worst drought in fifty years.”

Under sequestration the FSIS was expected to take a total cut of $52.8 million, or 5 percent of its budget. In that event, furloughs would have been required of all 9,212 employees of the FSIS, including 8,136 meat inspectors and others on the front line such as lab technicians. The furloughs were expected to be taken one day per week between July and the end of the fiscal year in September.




Commercial Red Meat Production Down From Last Year

Commercial red meat production for the United States totaled 3.67 billion pounds in February, down 6 percent from the 3.91 billion pounds produced in February 2012.

Beef production, at 1.87 billion pounds, was 7 percent below the previous year. Cattle slaughter totaled 2.36 million head, down 8 percent from February 2012. The average live weight was up 13 pounds from the previous year, at 1,320 pounds.

Veal production totaled 9.0 million pounds, 9 percent below February a year ago. Calf slaughter totaled 59,600 head, down 1 percent from February 2012. The average live weight was down 18 pounds from last year, at 258 pounds.

Pork production totaled 1.78 billion pounds, down 6 percent from the previous year. Hog slaughter totaled 8.59 million head, down 5 percent from February 2012. The average live weight was down 1 pound from the previous year, at 277 pounds.

Lamb and mutton production, at 11.5 million pounds, was down 7 percent from February 2012. Sheep slaughter totaled 161,700 head, 2 percent below last year. The average live weight was 142 pounds, down 7 pounds from February a year ago.

January to February 2013 commercial red meat production was 8.0 billion pounds, down slightly from 2012. Accumulated beef production was up slightly from last year, veal was down 4 percent, pork was down 1 percent from last year, and lamb and mutton production was down 2 percent.

By State        (Feb 2013 prod, % of Feb 2012) 
Nebraska ......:     526.5 million pounds -  92%      
Iowa .............:     501.4 million pounds -  94%      
Kansas ........:     396.2 million pounds - 100%      



Program Helps Growers Advance in Leadership

Seven corn farmers who are leaders in the industry underwent an extensive session in advanced leadership training this week in Washington, as part of the National Corn Growers Association Advanced Leadership program, co-sponsored by Syngenta.  Taking part in the program are Martin Barbre (Ill.), Wesley Spurlock (Texas), Joel Grams (Neb.), Dean Taylor (Iowa), Keith Alverson (S.D.), Paul Herringshaw (Ohio), and H. Grant Troop (Pa.).

While in the nation's capital they underwent extensive media training and discussions with NCGA Washington staff about current and emerging issues affecting corn farmers. They also joined in activities surrounding National Agriculture Day, including the National Celebration of Agriculture Dinner, featuring U.S. Agriculture Secretary Tom Vilsack and key members of Congress.

"This has been a busy, but important, week in Washington," said program participant Martin Barbre, an Illinois grower who serves as NCGA's first vice president. "At a time when it is so important for our nation's farmers to be active and engaged leaders, sessions such as these give us the opportunity to build our knowledge and experience and have meaningful conversations with policymakers and influencers, so they can understand and appreciate our perspective."

Wrapping up its third year, this program aims to help develop top-notch state and national leadership that is empowered to share its skill sets within the industry and community. It builds upon the Leadership at Its Best Program that has helped develop corn industry leadership since 1986.



Brazilian Government, Unions Reach Agreement on Port Operations

Representatives of Brazil's government and union leaders reached an agreement Thursday to alter a recent decree governing port operations, averting a threatened strike.

"We have an agreement; there won't be a strike," said Paulo Pereira da Silva, president of the Forca Sindical federation of unions.

The unions had objected to new rules that would have let privately owned port owners and operators hire nonunion workers and let those ports operate under rules that would lower costs for exporters compared with the public ports.

Details of Thursday's agreement weren't immediately available.

A strike would have come at a particularly bad time. Brazil's ports are already a bottleneck, slowing exports of the recent bumper crop of soybeans and grains.

Unions held a six-hour strike on Feb. 22 that halted the movement of goods through the country's biggest port, Santos, and union leaders were planning a 24-hour strike Monday if their main demands weren't met.

The government issued the decree in early December. President Dilma Rousseff is promoting private investment in ports, roads, railways and airport to help improve the country's transportation infrastructure, reduce costs and make the economy more competitive.



New Skyraider™ insecticide/miticide receives EPA approval

Skyraider™ insecticide/miticide, manufactured by MANA, has received approval by the EPA for broad-spectrum control against soil and foliar insects on soybeans, cotton, potatoes and other crops.
   
New Skyraider is an optimized formulation of proven crop protection technology that includes two different modes of action. This advanced offering hosts an increased ratio of a pyrethroid to support rapid insect knockdown while delivering longer lasting residual, which is driven by the formulation’s neonicotinoid component.
  
Skyraider has unique attributes proven to perform equal to or better than the market leaders by delivering highly efficacious control of tough-to-manage pests like aphids, Lygus species, stink bugs and wireworms.
   
It provides both translaminar and systemic movement, which allows improved penetration and relocation of the active ingredients throughout the plant, including feeding sites on the underside of leaves.
  
“With this kind of systemic activity, Skyraider has a clear-cut advantage in controlling foliar insects, including aphids,” said Dave Rummel, MANA brand leader. “At recommended rates, it also controls mites, which several competitors don’t support as part of their insect control lineup.”
   
Extensive field trials have delivered high performance ratings for Skyraider in regard to efficacy and economic value in addition to performance advantages over several competitive products.
  
On potatoes, Rummel indicates that the Skyraider label includes wireworms and Colorado potato beetle, which are two pests that require growers to remain on constant high alert.
  
“Skyraider is a premier insecticide with differentiating performance advantages,” said Rummel. “We’re proud of this new MANA offering and its rapid acceptance as one of the most powerful pest control tools available to date. Pests can’t run or hide from Skyraider.”
 
Convenience in handling
The Skyraider formulation and packaging delivers simplified handling and preparation steps for growers and applicators prior to treatments in comparison to other insecticide inputs.
  
“The formulation is easy to use and offers a more optimized use rate while protecting the grower’s investment along with time savings,” Rummel added. “It also offers the convenience of one product for multiple crop uses.
 
“Skyraider will be a critical tool for growers who want protection from high levels of insect infestation. And, with two different modes of action in a single application, it’s a perfect fit in a complete insect management program.”