Thursday March 7 Ag News

Johanns Cosponsors Bills to Protect Farmers from Costly Regs

U.S. Sen. Mike Johanns (R-Neb.) today cosponsored two bipartisan bills to protect farmers and ranchers from unnecessary and costly regulations regarding fuel storage and transport.  The Farmers Undertake Environmental Land Stewardship (FUELS) Act would ensure that an Environmental Protection Agency (EPA) regulation addressing oil spills does not unnecessarily capture farmers’ fuel storage containers. A second bill eliminates a burdensome regulation that requires farmers to comply with additional licensing requirements before transporting certain amounts of diesel fuel to their fields.

“These commonsense bills provide farmers and ranchers much-needed relief from two burdensome regulations,” Johanns said. “There is no question that we need to protect the land around us, but a one-size-fits-all approach that fails to acknowledge that a farm is different from a gas station and farm trucks are different from long-haul trucks, unnecessarily hurts the ag community. These bills would save farmers tens of thousands of dollars in compliance costs.”

The EPA currently enforces Spill Prevention, Control and Countermeasure (SPCC) regulations to prevent oil from discharging into U.S. waterways. A new SPCC rule is scheduled to take effect this May. The FUELS Act would exempt farmers from these regulations for their above-ground oil storage tanks that hold less than 10,000 gallons and allow farmers regulated at less than 42,000 gallons to certify their own prevention plans. Other cosponsors include Sens. Deb Fischer (R-Neb.). Mark Pryor (D-Ark.), John Boozman (R-Ark.), Thad Cochran (R-Miss.)  and James Inhofe (R-Okla.).

The second bill would exempt agriculture operations from the requirement to obtain a hazardous material endorsement, while operating a service vehicle carrying diesel fuel in quantities of 1000 gallons or less, if the vehicle is clearly marked. In addition to Johanns, original cosponsors include Sens. Jerry Moran (R-Kan.), Pat Roberts (R-Kan.) and Heidi Heitkamp (D-N.D.).



NCBA Kicks off March Membership Madness Drive

The National Cattlemen’s Beef Association (NCBA), the country’s oldest and largest organization representing the cattle industry, has a strong presence across the country and ensures the forceful, unified voice of America’s beef producers is heard. In an effort to add strength in numbers, NCBA’s Top Hand Club is hosting its March Membership Madness drive during the month of March.

Initiated in 1982, the Top Hand Club is NCBA’s member-recruit-a-member program that recognizes volunteer leaders for their commitment in growing a strong national association. To become a Top Hand Club member, individuals must recruit at least three new NCBA members. To remain in the club, members must recruit two new members each subsequent year. The program is sponsored by Case IH and Roper/Stetson.

NCBA President Scott George, a dairy and beef producer from Cody, Wyo., said it’s important for NCBA members to urge cattle producers to join the organization, which is producer-owned and member driven.

“Now more than ever, the livestock industry is under fire from groups such as radical animal rights activists who are working to undermine advances in animal agriculture as they push their extremist agendas, and cattle producers continue to face government uncertainty and overreaching federal regulations” he said. “Even though we already have a strong membership base, we can become even stronger and continue to fight for the sustainability and longevity of the beef industry.”

During the March Membership Madness drive, NCBA members are encouraged to recruit at least three new organization members through Mar. 31. Those who meet the challenge will become a Top Hand Club member and receive a Top Hand Club hat and glove set. The top recruiter during the month of March will also receive a Roper leather jacket.

“The success of our industry and way of life is directly tied to involvement and advocacy by our members,” said George. “NCBA achieves great success when we come together as a collective voice for the thousands of cattlemen and women across the country who provide the nation and the world with safe, wholesome beef.”



Marketing Mix Keeps Pork Top of Mind

Pork Checkoff  advertisements are showcasing the pork food photography and recipes that are featured in the winter retail promotions. Also, the Pork Checkoff’s first-quarter online advertising highlights the new Pork Social community at PorkBeInspired.com.

“We are very excited to announce our new Pork Social community through our advertising,” said Laurie Bever, director of consumer advertising for the Pork Checkoff, who noted that the online banner ads offer $1 off fresh pork and encourage viewers to vote for their favorite recipe. “The banner ads engage with pork fans and bring them to a website that will allow two-way conversation and sharing of one of their favorite foods.”

The Pork Checkoff’s 2013 advertising appears online on Facebook, the Food Network, AllRecipes.com, WeightWatchers.com, ABC.com, NBC.com and other leading sites.

“Similar to our print and TV advertising, we target a specific audience online, and there are many ways to measure results,” Bever said.

Through 2013, the Pork Checkoff’s retail, online, print and television ads will work together to keep pork top of mind with consumers, Bever added. “The most effective marketing mix is diverse and allows people to hear and see our advertising in multiple places as they go about their everyday life.”



Upcoming Pork 101 Courses Scheduled to for May and October

The American Meat Science Association (AMSA), in cooperation with the National Pork Board, recently announced that PORK 101 courses will be held May 21-23 at Texas A&M University and Oct. 7-9 at Iowa State University. PORK 101 is a three-day, hands-on experience designed to update participants about the value differences in live hogs, pork carcasses, pork primals and processed pork products, with meat science faculty and AMSA members at each university conducting the sessions.

Attendees will experience the selection, evaluation and fabrication of pork carcasses firsthand, as well as learn about the importance of hog handling, grading and food safety. The course also will give participants the opportunity to prepare and sample products from pork carcasses, including pumped loins, bacon, hams and sausage.

PORK 101 is co-sponsored by the American Association of Meat Processors, the American Meat Institute Foundation, the American Society of Animal Science, the North American Meat Association and the Southwest Meat Association. Registration for members of these groups, including the AMSA, is $800, with a non-member fee of $950. Companies or organizations sending more than one person to PORK 101 are eligible for a discount.

Anyone involved in the production, processing and marketing of pork will benefit from attending this course, including pork producers, veterinarians, researchers, educators, pork packers, meat processors, retailers, foodservice operators and investors.

For more information or questions regarding PORK 101, please visit: www.pork101.org or contact Deidrea Mabry 1-800-517-AMSA ext. 12.



House Speaker Boehner Pledges Farm Bill in 2013

House Speaker John Boehner spoke during a forum with members of the Ohio Farm Bureau this week, but had little to say about a new Farm Bill. He did pledge to get a new Farm Bill done and said he expected the Senate to do the same this year.

"We had a very tough time last year getting to a farm bill. We are going to do a farm bill this year. And I expect the Senate will do a farm bill as well," Boehner said.

At the top of the Farm Bureau's priorities is a new Farm Bill. Farmers want a new five-year bill that addresses safety-net needs, such as crop insurance. The current bill is an extension of the old one.

While the Senate passed a version in 2012, the House did not. Instead, as part of Fiscal Cliff negotiations, Congress extended the old Farm Bill through the end of September.

It was the Republican leadership in the House, according to published reports, that refused to bring a farm bill to the floor for a vote in 2012.

Boehner is known to oppose supply management program, especially for dairy.



Vilsack: Meat Inspector Furloughs Several Months Away

Agriculture Secretary Tom Vilsack has acknowledged that it will be "several months" before meat inspectors are furloughed as part of across-the-board spending cuts that took effect March 1.

Vilsack detailed how the Agriculture Department will move forward on the furloughs at a House Agriculture Committee hearing Tuesday. He said each meat inspector will likely be furloughed 11 or 12 days, instead of 15 days as the Obama administration earlier claimed.

The White House has used the meat inspector furloughs as one example of how the cuts will affect the economy.

Meatpacking plants cannot operate without inspectors, so the furloughs will cause plants across the country to shut down intermittently.

Vilsack said the process will be complicated because of negotiations with labor unions that represent the meat inspectors.



Korea Increases US DDGS Imports and Mixed Feed Production

2012 was overall a good year for U.S. distiller's dried grains with solubles (DDGS) in Korea. On a customs cleared basis, Korea imported more than 505,000 metric tons of DDGS in 2012, of which 469,000 metric tons were from the United States. Despite higher than normal U.S. market prices this year, Korea was a loyal customer to the United States. In December 2012 alone, a total of 37,000 metric tons of U.S. DDGS, cleared local customs in Korea, up from 32,000 tons in 2011. Even as global competition increases, U.S. DDGS exports to Korea continue to remain strong, now at a 93 percent market share.

Korea also increased its production of mixed feeds in 2012, producing 18,480 metric tons, an 11 percent year-on-year increase and its largest ever. In turn, swine feed production has increased, up 27 percent, thanks to the rapid recovery of the hog population from the formidable inventory loss due to the food-and-mouth disease outbreak in early 2011. As of December 2012, Korea's swine inventory is at 9.9 million head, also the largest ever.



FAO Sees World 2013-14 Wheat Output Up 4.3% on Year

The United Nations' food body said Thursday it expects world wheat production in 2013-14 to increase 4.3% on the year, to 690 million metric tons, as high prices spark an expansion of area in Europe and yields recover from drought in Russia.

The Food and Agriculture Organization said its first forecast is for the second-largest crop on record after 2011's, with aggregate plantings in the European Union seen up 3% on the year, amid generally favorable weather conditions.

The FAO added that prospects are also satisfactory in Russia, with a decrease in winter plantings expected to be more than offset by an increase in spring area. The country's output is forecast to increase sharply, it said, assuming yields recover from last year's drought-reduced levels.

However, it also noted the outlook in the U.S. is less favorable than other major wheat-producing countries, with good precipitation in February likely arriving too late for drought-affected winter wheat crops to make a full recovery.

As such, the FAO forecasts the country's output will decrease by around 6% on the year, to 58 million tons, despite a slight rise in winter wheat plantings and the likelihood that spring plantings will at least match last year's level.

The FAO increased its forecast for world cereal stocks at the end of 2012-13 by around 4 million tons, mainly due to upward revisions in wheat inventories. At 499 million tons, the new carry-over estimate would still be 2.7% lower than the previous season, it added, due to an anticipated draw-down in wheat and coarse grains, although rice inventories are expected to rise further.

It is still too early for even a preliminary global cereal forecast, the FAO said, as the bulk of coarse grains and paddy crops have yet to be planted. However, it noted prospects for the southern hemisphere's initial crops are generally favorable and rice prospects are also encouraging in several countries below the equator.



Growers Break Records Again at 2013 Commodity Classic

Attendance records continue to be broken at Commodity Classic. This year, record attendance totaled 6,214, including a record number of 3,324 corn, soybean, wheat and sorghum growers. There were also 1,078 first-time non-exhibitor attendees, another record set.

"By the growth of attendance at Commodity Classic, it's clear that farmers are seeing the advantage of coming to this great show," said Classic Co-Chair Bob Worth. "The quality of the trade show and all of the educational opportunities makes attendees happy to come back year after year, and invite their neighbors and friends."

This year's show also experienced the highest number of exhibitors. The 1,010-booth trade show was sold out with a waiting list of interested parties ready to take advantage of cancelations.

Before a standing-room-only house, Secretary of Agriculture Tom Vilsack made his fourth straight appearance before General Session attendees. As sequester became a reality in Washington, Vilsack encouraged farmers to continue pushing Congress for a five-year farm bill and reach out to strategic partners that rely on farming for the health of their industry.

"We are fewer and fewer folks living in rural America, and fewer and fewer people who call themselves farmers," said Vilsack. "We've got to figure out ways in which to enlarge our political relevance."

The 2014 Commodity Classic will be held Feb. 27 to March 1 in San Antonio, Texas.



Smithfield Foods Reported Strong 3Q Results

Smithfield Foods Inc.'s (SFD) fiscal third-quarter earnings rose 3.2% as improved sales of packaged meats helped to mitigate the pork producer's declining fresh pork sales.

Smithfield--whose brands also include John Morrell, Armour and Farmland--had seen its revenue decline in recent quarters amid lower meat and live hog prices and weaker domestic retail demand. Like other livestock producers, high feed costs have also challenged its bottom line.

For the quarter ended Jan. 27, Smithfield reported a profit of $81.5 million, or 58 cents a share, up from $79 million, or 49 cents a share, a year earlier. Sales jumped 3% to $3.58 billion.

Gross margin fell to 9.2% from 10.9%.

Total pork sales--the biggest contributor to Smithfield's revenue--edged up 0.3%, reflecting a 4.5% decline in fresh pork sales and a 4% rise for packaged meats. For many meat companies, including Smithfield, branded and packaged meat products are typically more profitable than sales of commoditized products like live animals and fresh meat.

The hog-production segment's sales jumped 10%, while the international business's sales were up 9.1%.



Pioneer and Mendel Biotechnology, Inc. Collaborate to Improve Water Use Efficiency and Photosynthesis in Corn

DuPont Pioneer and Mendel Biotechnology, Inc., have entered into a license collaboration to evaluate and commercialize new gene leads for increased water use efficiency (WUE) and improved photosynthesis in corn.  Under the agreement, DuPont Pioneer and Mendel will evaluate these new gene leads and test them for yield-enhancement traits in Pioneer® brand corn products.  These gene leads were identified by Mendel in its next-generation plant physiology platform.                                                

“Greater efficiency in water use and photosynthesis can enhance farmer profitability and productivity, while improving sustainability of agriculture worldwide,” said Mike Lassner, vice president, Agricultural Biotechnology Trait Discovery, DuPont Pioneer. “We are pleased to collaborate with Mendel in developing new, improved Pioneer® brand corn hybrids. Working together with technology innovators increases our ability to meet the needs of a growing global population.”

“We are excited to be working with Pioneer to develop new, resource-use-efficient corn hybrids,” said Neal Gutterson, CEO, Mendel.  “We are leveraging 15 years of focused research in plant gene regulatory networks, taking advantage of the genomics and sequencing revolutions, to create better and more sustainable crop solutions.”