Tuesday March 26 Ag News

Norfolk Drought Risk Management Seminar is March 28th

The Nebraska Farm Bureau is hosting a Drought Risk Managment seminar this Thursday, March 28, 10 a.m.-3 p.m. at the Lifelong Learning Center in Norfolk, NE.  The seminar is free and lunch will be provided by Nebraska Farm Bureau.  Speakers include Al Dutcher - State Climatologist, Charlie Shapiro - UNL Extension Educator in Soils, an NRD representative, and NFBF Staff - Steve Nelson, Jay Rempe and Jordan Dux.  For more information, contact Nebraska Farm Bureau Federation director of grassroots programs Jay Ferris at (402) 421-4409 or email jayf@nefb.org. 



Boone County Farm Bureau Awarded White-Reinhardt Ag Literacy Mini-Grant

The American Farm Bureau Foundation for Agriculture awarded 14 mini-grants up to $500 to communities across the nation. Boone County Farm Bureau was the only Nebraska County Farm Bureau to win an award. They will utilize the grant dollars for classroom materials including tools directly related to animal agriculture to assist students and members with literacy and food science.

The grants are awarded through the Foundation’s White-Reinhardt Fund for Education program. The grants are used to fund new projects or expand existing agricultural literacy efforts and are distributed through county and state Farm Bureaus.

Criteria for selecting winners included: the effectiveness of demonstrating a strong connection between agriculture and education, how effectively the programs encouraged students to learn more about agriculture and the food and fiber industry, and the procedures and timelines expected for accomplishing project goals.

“Teaching people, especially younger generations, about agriculture and its positive effects on our daily lives is the basis of our efforts,” said Dan Durheim, executive director of the Foundation, Feb. 28. “The mini-grant program gives Farm Bureau members vital tools to distribute to educators in their communities free of charge, helping them teach young people in rural and urban America about today’s agriculture.”

The White-Reinhardt Fund for Education is a project of the Foundation in cooperation with the American Farm Bureau’s Women’s Leadership Committee. The fund honors two former committee chairwomen, Berta White and Linda Reinhardt, who were trailblazers in early national efforts to expand the outreach of agricultural education and improve agricultural literacy.



Rehabilitating Disabled Farmers and Ranchers: A Priority in Rural Nebraska

Occupational and physical therapists are invited to “Rehabilitating Nebraska Farmers and Ranchers with Disabilities.”  The day-long seminar is planned for Thursday, April 25th, 8:00 a.m. – 5:00 p.m. at the Valley County Extension Office in Ord, NE.  It is sponsored by the Nebraska AgrAbility Project, a joint effort of the University of Nebraska-Lincoln Extension and Easter Seals Nebraska.  Continuing Educational Units will be available for the seminar.

Most do not realize it, but when a farmer or rancher is discharged from care following an injury or serious illness, he or she is not only returning home, but is also returning to an industrial work site. 

Occupational therapists, physical therapists, OT assistants and PT assistants can play an important role in preparing farmers and ranchers to return to their homes.  When home includes the workplace, special considerations are needed to ensure a safe transition.

“Rehabilitating Nebraska Farmers and Ranchers with Disabilities” is designed to help these health care providers become more competent in their care to the agricultural population they see on a regular basis.  Lead instructor for the seminar is Dr. Christine Hutchinson, PT, DPT.  Hutchinson is a physical therapist at St. Francis Medical Center in West Point, NE.  She has extensive experience treating diverse patient populations.  Practicing in the acute care as well as rural settings has enabled Christine to treat a variety of diverse patients. UNL Extension faculty and ESN staff will also teach portions of the seminar.   

Pre-registration for the seminar is required by April 18th.   For a complete agenda or registration materials, contact Sharry Nielsen, UNL Extension Educator, (308) 832-0645, or snielsen1@unl.edu. Full refund if cancellation made by April 22nd.



NE Farm Bureau Watches Tax, Checkoff, Water bills in Lincoln

With the legislative hearing process for bills wrapping up in mid-March, Nebraska state senators now turn their full attention to developing the state’s two-year budget and handling priority bills. Each session state senators are allowed to designate one bill as their priority which if advanced from committee helps ensure that it will receive time for debate on the floor. In addition to senator priority bills, each standing legislative committee is allowed to designate two bills as priorities during the session. The Speaker of the Legislature also has the power to designate priority bills.

Tax Reform Talks
Members of the Legislature’s Executive Committee have unanimously advanced LB 613. Introduced by Sen. Paul Schumacher of Columbus and prioritized by Sen. Beau McCoy of Omaha, the bill would serve as the main vehicle for broader discussion about the state’s overall tax policy. The bill moved into the spotlight after the Revenue Committee opted to go a different direction than the income tax elimination proposals offered earlier this session by the Governor.

The bill, as advanced by Executive Committee members, would create the Tax Modernization Committee comprised of 11 members of the Legislature. In addition to members of the Revenue Committee, the chairs of the Appropriations, Agriculture, Health and Human Services, and Planning Committees would also serve on the Committee. The Committee’s purpose is to “review and study Nebraska’s tax law, including, but not limited to, sales and use taxes, income taxes, property taxes and other miscellaneous taxes and credits.” As of this writing, senators are debating the bill on General File. If passed, it is expected the Committee would study Nebraska tax policy and report its recommendations to the full Legislature for consideration in 2014.

In related news, members of the Revenue Committee have advanced LB 96. The bill would remove sales tax on repair or replacement parts for agricultural machinery and equipment. Sen. Annette Dubas of Fullerton introduced the bill, and Sen. Tom Hansen of North Platte has named it his priority for the session. These items are exempt from taxation in many states surrounding Nebraska. This difference in tax policy between Nebraska and its neighbors creates competitive problems for Nebraska farmers and ranchers. Nebraska Farm Bureau supports the bill.

Corn Checkoff Program
The Legislature’s Agriculture Committee has voted to advance LB 354 to the full Legislature for discussion. The bill, introduced by Sen. Tyson Larson, would make changes to Nebraska’s corn checkoff program patterned after Iowa’s checkoff program.

Under the bill, the Corn Checkoff Board would be changed to be a quasi-state agency and require the election of board members. The bill would continue the mandatory checkoff but provide a refund mechanism. The amount of the checkoff would continue to be 1/2 cent per bushel, with a cap of 1 cent per bushel. Any changes to the rate would require a producer referendum for approval.

An issue of concern related to the bill was whether or not the Corn Checkoff Board could continue to use checkoff funds to lobby on federal legislation. Under current law, up to 25 percent of the funds can be used for lobbying purposes at the federal level. Farm Bureau policy opposes the use of checkoff funds for lobbying.

Under a compromise reached prior to the bill’s advancement, the Corn Checkoff Board would be prohibited from lobbying on state legislation in Nebraska and engaging in political activities. The bill would be silent on federal lobbying, however, regulations would be adopted allowing the Corn Checkoff Board to share information, research or other materials with federal officials concerning market development, product utilization or foreign trade issues with federal agencies for informational purposes. The board could not publically take a position on federal legislation or regulations. Farm Bureau supports the committee amendment and bill. Sen. Scott Lautenbaugh of Omaha has named LB 354 his priority bill for the session.

Water Task Force
The Legislature’s Natural Resources Committee has advanced LB 517 to the full Legislature. Introduced and prioritized by Sen. Tom Carlson of Holdrege, the bill would create a short-lived, 28 member task force to develop priorities for water funding to be presented to the Legislature by the end of the year. The Committee Amendment would charge the task force with identifying water projects and categorizing them into funding areas. It would also be charged with creating a map of the projects identified and recommend project priorities to the Legislature. Farm Bureau supports the measure.



Weatherfest and Severe Weather Symposium at UNL April 6

The University of Nebraska-Lincoln's Family Weatherfest and Severe Weather Symposium is Saturday, April 6, at Hardin Hall.

The event will run from 9 a.m. to 2 p.m. in the hall, at North 33rd and Holdrege streets. The free, family event explores the wonder of weather and teaches techniques for surviving – and even thriving – through severe weather events. Free parking is available.

After two straight years of extreme weather in Nebraska, many wonder what's on the horizon. UNL's Family Weatherfest and Severe Weather Symposium prepares youths and adults alike to understand and react to stunning meteorological conditions, whatever they may be.

Activities include a screening of the tornado-filled film "2012's Extreme Weather as Captured by Storm Chasers," a book sale and signing with meteorologist and author Mike Mogil, a weather balloon discussion and launch, face painting booths and an up-close and personal exploration of a real-life tornado vehicle, the Doppler on Wheels.

Other highlights this year include a keynote talk about the 100th anniversary of the deadliest tornado to hit Nebraska; tips for capturing the best photographs of meteorological events; interactive weather presentations such as "Be Weather Wise with Weather Whys," "The Megadrought Walk," and "Tornado Generator"; and exhibits from the National Weather Service, Lancaster County Emergency Management and Midland Radio. Local weathercasters will be on site from 11 a.m. to 1 p.m. to meet and chat with people.

Participants also will have the opportunity to meet Tern and Plover's "Pebbles" and Lil' Red's East Campus cousin, "Lil' Green," examine emergency management vehicles and take photos next to an "approaching" tornado. To enhance public safety during severe weather, Midland Radio will sell weather radios to the public. HyVee will also offer a cook-out lunch for sale.

Although Weatherfest ends at 2, the Lancaster County Storm Spotter training workshop begins at 1:30 p.m. in Hardin Hall Auditorium. Visitors are welcome to stick around and attend this workshop to learn more about this important community volunteer activity.

More information is available at http://snr.unl.edu/cpsws/ and http://www.facebook.com/cpsws or from SNR Outreach Coordinator Ken Dewey at kdewey1@unl.edu.

Sponsors of this year's Weatherfest include High Plains Regional Climate Center, Institute of Agriculture and Natural Resources, Lancaster County Office of Emergency Management, Lincoln Amateur Radio Club, National Drought Mitigation Center, National Weather Service Omaha/Valley, UNL's Student AMS Chapter, UNL's School of Natural Resources, UNL's SNR Outreach Committee, Geography Graduate Student Organization, and Midland Radio.

The event is the same day as the Huskers' spring game, and visitors will have time to take in both events.



NEBRASKA CROP PROGRESS AND CONDITION

For  the  month  of  March  2013,  any  received  precipitation  has  been welcomed  despite  the  below  average  temperatures,  according  to  USDA’s  National  Agricultural  Statistics Service,  Nebraska  Field  Office.    Livestock  producers  have  reported  favorable  spring  calving  conditions.   Topsoil moisture  supplies were  rated  37  percent  very  short,  42  short,  21  adequate,  and  0  surplus.  Subsoil moisture supplies were rated 68 percent very short, 29 short, 3 adequate, and 0 surplus.  There was an average of 1.8 inches of snow throughout the state.  
 
Weather  Report: 
Precipitation  and  temperature  data  are  now  being  provided  through  the  High  Plains Regional Climate Center.  See  link  below  for  the  latest  updates. A  link  to  the  latest U.S. Drought Monitor graphic is also provided.
 
Field Crops Report:
Wheat conditions rated 23 percent very poor, 38 poor, 33 fair, 6 good, and 0 excellent.  
 
Livestock, Pasture  and Range Report:
Hay  and  forage  supplies  rated  16  percent  very  short,  37  short,  46 adequate, and 1 surplus.  Cattle and calves condition rated 1 percent very poor, 4 poor, 19 fair, 74 good, and 2 excellent.  Spring  calving  was  49  percent  complete.    Calf  losses  this  spring  have  been  10  percent  below average, 89 average, and 1 above average.



NE NE RC&D Learns More of Area Industry

The Northeast Nebraska Resource Conservation & Development (RC&D) Council met last night with President Dennis Wacker welcoming another new board member Bob Huntley who is representing the Lower Elkhorn Natural Resources District.

Seth Harder, General Manager of the Husker Ag Ethanol Plant, was the featured speaker.  Nebraska is second only to Iowa in ethanol production, but together these states are number one in the world.   Husker Ag produces not only ethanol and modified-wet distillers’ grain, but also feed-grade corn oil.  Just recently they’ve entered into a partnership with Laurel Bio-Composites to make a plastic filler.  Harder also told of the blender pump initiative, a program to provide financial incentives to gas stations that want or need to upgrade their existing pumps, which they are doing in conjunction with the Nebraska Corn Board.

The Council was notified of their pending Nebraska Environmental Trust award for the Northeast Nebraska Weed Management Area project.  The funds will be used to purchase biocontrol agents for Purple loosestrife and Leafy spurge, to do an aerial survey of those weeds,  and offer educational activities for landowners.  

The next board meeting on Monday, April 22nd at 6 p.m. at the RC&D Office in Plainview. 



Iowa Sheep Assessment to Remain at a Dime per Head

The Iowa Department of Agriculture and Land Stewardship Monday certified the results from the Iowa sheep assessment referendum that was held Feb. 25 to March 15 of all eligible Iowa sheep producers. The assessment will stay at $.10 per head after a simple majority of producers that voted did not support raising the assessment to $.25 per head.

The second question on the referendum which would have allowed the Iowa Sheep and Wool Promotion Board, beginning in 2016, to change the assessment rate by $.05 every three years, was also defeated.

Any producer who is actively engaged within this state in the business of producing or marketing sheep or wool and who receives income from the production of sheep or wool was eligible to participate in the referendum.

In addition to the current assessment of $.10 per head on each sheep sold by a producer, there is also an assessment of $.02 per pound of wool sold by a producer which was not impacted by the referendum. The Iowa Sheep and Wool promotion board is governed by Iowa Code Chapter 182, which was initially passed in 1985 and was updated last year to allow for the referendum to increase the assessment rate.

In accordance with Iowa Code, the Iowa Department of Agriculture and Land Stewardship was responsible for holding the referendum election and all costs incurred by the Department will be reimbursed by the Iowa Sheep Industry Association.



Beef, Pork Prices Projected to Keep Rising in '13

The USDA's Changes in Food Price Indexes shows the price of meat has not substantially changed so far this year, but a jump is coming as grilling season begins.

The Economic Research Service reports that beef, pork and poultry will be increase by three-to-four percent. Meat prices were 3.6 percent higher in 2012, led by beef which increased by 10.2 percent in 2011 and another 6.4 percent in 2012.

Pork prices were relatively steady in 2012, increasing by 0.3 percent during the year.

Spring usually prompts higher meat prices as consumers begin grilling season, however the demand has been delayed with winter storms moving across the country.

Last week's Cattle on Feed report shows shrinking feedlot inventories with fewer placements in every weight category from the year before. The tight supplies have led cattle futures to charge higher in three of the last four sessions.

Money spent on food away from home is expected to increase this year by about 3 percent to remain in line with growth over the previous two years.



Diesel prices continue to decrease

The U.S. average retail price for on-highway diesel fuel fell to $4.01 a gallon on Monday.  That’s down 4.1 cents from a week ago, based on the weekly price survey by the U.S. Energy Information Administration.  Diesel prices were highest in the New England region at 4.17 a gallon, down 3.3 cents from a week ago.  Prices were lowest in the Gulf Coast region and the Rocky Mountain States at 3.94 a gallon, down 5.4 cents and down 3.6 cents, respectively.  In the Midwest region, the price for diesel came in at $3.979, down $0.036 from last week and  down $0.067 from a year ago. 

Gasoline prices inch down 
The U.S. average retail price for regular gasoline fell to $3.68 a gallon on Monday.  That’s down 1.6 cents from a week ago, based on the weekly price survey by the U.S. Energy Information Administration.  Pump prices were highest in the West Coast region at 3.96 a gallon, down 4.2 cents from a week ago and marking the first dip below the 4 dollar mark since mid-February.  Prices were lowest in the Rocky Mountain States at 3.47 a gallon, remaining unchanged from last week.  Here in the Midwest, the average price for a gallon of gasoline was $3.657, up $0.012 from last week, but down $0.242 from last year at this time.  



No Movement Again in Fertilizer Prices

Retail fertilizer prices remained very stable the third week of March, according to data tracked by DTN. This trend has been in place since of the first week of November 2012.

Five of the eight major fertilizers were lower priced compared to last month, but these moves to the low side were fairly small. DAP had an average price of $616 per ton, MAP $662/ton, potash $590/ton, urea $574/ton and anhydrous $861/ton.  The three remaining fertilizers were higher priced compared to the third week of February, but again the move was extremely modest. 10-34-0 had an average price of $613/ton, UAN28 $396/ton and UAN32 $444/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.62/lb.N, anhydrous $0.52/lb.N, UAN28 $0.71/lb.N and UAN32 $0.69/lb.N.

Three of the eight major fertilizers are showing a price increase compared to one year earlier. Anhydrous is now 13% higher, UAN32 is 6% more expensive and UAN28 is 4% higher compared to last year.  Three fertilizers are single digits lower in price compared to March 2012. Both DAP and MAP are 5% lower, and urea is 9% lower compared to last year.  The remaining two fertilizers are now down double digits from a year ago. Potash is now down 10% while 10-34-0 is 23% less expensive.



Ag Industry Launches Campaign to Promote Safe Use of Seed Treatments

The American Seed Trade Association (ASTA) and CropLife America (CLA), two industry leaders in agricultural seed, products, services, and plant science solutions, announced today the release of The Guide to Seed Treatment Stewardship, an industry-wide initiative to promote the safe handling and management of treated seed.

Endorsed by the National Corn Growers Association, the American Farm Bureau Federation and the American Soybean Association, The Guide provides farmers and seed companies with critical information and up-to-date guidelines for managing treated seed effectively to further minimize the risk of exposure to non-target organisms.

“The Guide serves as an all-in-one resource that addresses every stage of a seed’s journey from treatment to planting,” said ASTA President and CEO Andrew W. LaVigne. “It’s designed to be convenient, easy-to-understand and useful to the entire seed and crop production value chain.”

“The Guide will be an invaluable resource for our members,” said Pam Johnson, president of the National Corn Growers Association. “We’re encouraging all corn growers to refer to it before, during and after the corn planting season.”

ASTA and CLA began aggregating seed treatment research and safety information from universities, seed companies, international seed associations and others in early 2012 in response to growing concern about the effect of seed treatment dust on pollinators.

“The health of pollinators, especially honey bees, is crucial to agricultural production in the U.S. and worldwide,” noted Jay Vroom, President and CEO of CropLife America. “The crop protection industry, seed growers and breeders, seed treatment companies, equipment manufactures and farmers all play a role in supporting thriving bee populations through stewardship and sound science."

 The Guide contains recommendations for such processes as:
  o Planting of Treated Seed
  o Safe Use of Seed Treatment Product
  o Safe Handling and Transport of Seed
  o Selection of Treatment Product
  o Treated Seed Labeling
  o Storage of Treated Seed

The Guide, which also includes a seed treatment glossary and an exhaustive list of resources, has been shared with EPA and USDA, both of whom have applauded the industry’s initiative in this effort.

Released in advance of the corn planting dates, The Seed Treatment Stewardship Guide is available online and in PDF format at www.seed-treatment-guide.com.



CWT Assists with 11.1 Million Pounds of Cheese, Butter and Anhydrous Milk Fat Export Sales

Cooperatives Working Together (CWT) has accepted 28 requests for export assistance from Dairy Farmers of America, Foremost Farms USA, Maryland & Virginia Milk Producers Cooperative Association, Michigan Milk Producers Association, United Dairymen of Arizona and Upstate Niagara Cooperative (O-AT-KA) to sell 7.108 million pounds (3,224 metric tons) of Cheddar, Gouda and Monterey Jack cheese, 3.942 million pounds (1,788 metric tons) of butter and 44,092 pounds (20 metric tons) of anhydrous milk fat (AMF) to customers in Asia, Europe, the Middle East, North Africa and North America. The product will be delivered April through September 2013.

Year-to-date, CWT has assisted member cooperatives in selling 41.156 million pounds of cheese, 44.849 million pounds of butter, 44,092 pounds of AMF and 218,258 pounds of whole milk powder to 28 countries on six continents. These sales are the equivalent of 1.359 billion pounds of milk on a milkfat basis, or the annual milk output of 64,700 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.



Agroconsult Adjusts Brazil Soybean Production to 84.4 MMT

Brazil's 2012-13 soybean production will total 84.4 million metric tons (mmt), representing a substantial recovery from the 66.4 mmt produced during the last drought-hit season.  That according to Brazillian farm consultancy Agroconsult Tuesday.

The consultancy raised its forecast from 84.2 mmt following the conclusion of its crop tour, which passed through the principle soy regions between January and March.

The bump came from the southern state of Rio Grande do Sul and Santa Catarina, where crops had reacted better than expected to the return of rain in January and February after a dry spell.

Southern production offset the losses registered in the Northeast following dry spells in October, December and January.

In Mato Grosso, the top producing state, rain affected early harvested beans, while Asian rust and caterpillar attacks clipped potential, but high yields in the south meant statewide yields were in line with last year.

Agroconsult's figure is at the top end of market forecasts, which range from 81 mmt to 84.5 mmt.



USDA ANNOUNCES NO MARKETING QUOTA FOR 2014 WHEAT CROP

The U.S. Department of Agriculture today announced that no marketing quota will be in effect for the 2014 wheat crop, a declaration required by current circumstances.

The Food, Conservation, and Energy Act of 2008 authorized commodity crop programs for the 2008 through 2012 crop years with the American Taxpayer Relief Act of 2012 providing a one-year temporary extension for the 2013 crop year. Unless superseded by new farm legislation, any actions taken by USDA pertaining to the 2014 wheat crop must be done in accordance with the Agricultural Adjustment Act of 1938, as amended (the 1938 Act), and the Agricultural Act of 1949, as amended. Those laws require, under certain market conditions, the imposition of quotas, acreage allotments, marketing certificates and parity price support programs for wheat.

Therefore, if a new farm bill is not written or the current law extended, the 1938 Act calls for a marketing quota for the 2014 wheat crop if the total supply of the crop is likely excessive without the quota, and requires the Secretary to decide not later than April 15, 2013, whether to impose it. Based on USDA projected supply and demand for the 2014 growing season, no quota is required.



Catastrophic Wildfire Prevention Act Reintroduced in the House

The Public Lands Council (PLC), National Cattlemen’s Beef Association (NCBA) and Arizona Cattle Growers' Association (ACGA) expressed strong support for the Catastrophic Wildfire Prevention Act of 2013 (H.R. 1345), reintroduced with bipartisan support by Rep. Paul Gosar (R-Ariz.). This bill, familiar from the last session of Congress, facilitates an expedited process to reduce hazardous fuel loads on federal lands through livestock grazing and timber harvesting.

The bill proposes to reduce the risk of catastrophic wildfire on areas managed by the U.S. Forest Service (USFS) and the Bureau of Land Management (BLM) identified as high-risk. It would streamline analyses performed under the National Environmental Policy Act (NEPA) in those areas, expediting fuels-reduction activities such as livestock grazing and timber thinning. When threatened or endangered species are at risk, it would also allow for hazardous fuels-reduction projects to go forward under existing emergency provisions of the Endangered Species Act. Furthermore, it adds to last year’s legislation by including contract stewardship and good neighbor authority measures, which facilitate the completion of forest management projects through public-private partnerships and cooperation with state governments.

PLC President Brice Lee and NCBA President Scott George agreed that the bill addresses the significant issue of catastrophic wildfire in the West by reducing administrative delays, expediting forest management processes, and encouraging better forest health and economic development.

“Last year, more than 9 million acres were burned in one of the worst fire seasons this country has seen in the last few decades. In that scenario, everyone bears the burden of habitat loss — ranchers, western communities, wildlife and the taxpayer, to name a few,” Lee said. “We hope that Congress acts swiftly and moves forward with passing this legislation, so that ranchers and entire communities do not remain vulnerable during what may be another devastating fire season this year.”

George added that fires threaten both rural and urban communities and impair the watersheds the public depends on.

“The red tape beleaguering USFS and the BLM when addressing wildfires is endangering the lives and operations of livestock producers, threatening the natural resources the public depends on, and hindering economic growth,” said George. “This bill seeks to put an end to these issues and allow for better management of public lands.”

Arizona rancher and ACGA President Andy Groseta spoke to the grassroots process that brought about this critical need for a streamlined agency process.

“In 2011, ACGA members developed the Save Arizona’s Forest Environment plan that gained support from dozens of cities, town, counties and other organizations locally and nationally. The residents of rural America recognize the need to return our forests back to true working landscapes governed by responsible multiple-use management,” he said. “The Catastrophic Wildfire Prevention Act of 2013 is a commonsense way to accomplish that and to prevent wildfires from destroying public and private lands across the West.” 



DuPont and Monsanto Reach Technology Licensing Agreements on Next-Generation Soybean Technologies

DuPont and Monsanto announced today a series of technology licensing agreements that will expand the range of seed products they can offer farmers.  The agreements include a multi-year, royalty-bearing license for Monsanto’s next-generation soybean technologies in the United States and Canada.

Through these agreements, DuPont Pioneer will be able to offer Genuity® Roundup Ready 2 Yield® soybeans as early as 2014, and Genuity® Roundup Ready 2 Xtend™ glyphosate and dicamba tolerant soybeans as early as 2015, pending regulatory approvals.

DuPont Pioneer also will receive regulatory data rights for the soybean and corn traits previously licensed from Monsanto, enabling it to create a wide array of stacked trait combinations using traits or genetics from DuPont Pioneer or others.  Monsanto will receive access to certain DuPont Pioneer disease resistance and corn defoliation patents.

“This technology exchange helps both companies to expand the range of innovative solutions we can offer farmers, and to do so faster than either of us could alone,” said DuPont Pioneer President Paul E. Schickler.  “The agreements broaden the Pioneer soybean line-up. Importantly, they give us greater flexibility in developing combinations of genetics and traits to help feed an increasingly crowded planet.”

Schickler reaffirmed DuPont’s existing financial growth commitments for its Agriculture segment.

“We’ve always agreed that technological innovation and farmer choice are essential to agriculture, and this agreement endorses the value of our next-generation soybean technologies,” said Brett Begemann, Monsanto president and chief commercial officer.  “This signals a new approach to our companies doing business together, allowing two of the leaders in the industry to focus on bringing farmers the best products possible while working to advance innovation and long-term opportunity for agriculture.”

Under these agreements, DuPont Pioneer will make a series of upfront and variable based royalty payments subject to future delivery of enabling soybean genetic material.  It will make four annual fixed royalty payments from 2014 to 2017 totaling $802 million for trait technology, associated data, and soybean lines to support commercial introduction.  Additionally, beginning in 2018, DuPont Pioneer will pay royalties on a per unit basis of Genuity Roundup Ready 2 Yield® and Genuity Roundup Ready 2 Xtend™ for the life of the agreement for continued technology access, subject to annual minimum payments through 2023 totaling $950 million.  DuPont is filing a Form 8-K containing additional information about the impact of these agreements on the company.  A copy of the 8-K is available on the DuPont Investor Center at www.investors.dupont.com.

DuPont and Monsanto also agreed to dismiss their respective antitrust and first-generation Roundup Ready® soybean patent lawsuits pending in U.S. federal court in St. Louis.