Wednesday March 20 Ag News

CUMING COUNTY 4-H BEEF PREVIEW
The 39th annual Cuming County 4-H Beef Preview will be held Saturday, April 13 at the Cuming County Fairgrounds in West Point.  The show gives 4-H youth a chance to exhibit the progress of their beef projects.  The show is sponsored by the Cuming County Livestock Feeders Association and University of Nebraska Lincoln Extension in Cuming County.

According to Extension Educator, Larry Howard, events at the preview show will include showmanship, breeding heifers, market heifers and market steers.  Breeding classes will include Angus, Charolais, Chianina, Gelbvieh, Hereford, Limousin, Maine Anjou, Shorthorn and Simmental.  There is also a class for commercial breeding heifers.

Jackie McKenney from Lincoln, Nebraska will be the judge of the show.

All projects must weigh-in and check-in on Saturday from 7:30-8:30 a.m. The show will begin at 10:00 a.m. on Saturday, April 14.

The show is open to 4-H members from Cuming, Burt, and Colfax, Dakota, Dodge, Stanton, Thurston, Washington, Wayne, Douglas and Sarpy counties.

For additional information, contact the Cuming County Extension office at 402/372-6006.



Smith and McIntyre Co-chair Bipartisan Congressional Rural Caucus

Congressman Adrian Smith (R-NE) and Congressman Mike McIntyre (D-NC) will serve as co-chairmen of the bipartisan Congressional Rural Caucus for the 113th Congress.

“Rural Americans need a strong voice in Congress to represent their interests, regardless of party or geography,” said Smith.  “I look forward to continuing to serve as a co-chairman of the Congressional Rural Caucus, and am excited Congressman McIntyre will be working with me to raise awareness of and address the shared challenges of rural communities.”

McIntyre stated, “Rural communities, counties, and crossroads are the backbone of North Carolina.  We must do all we can to help them thrive, create opportunity, and protect their wonderful way of life.  The Congressional Rural Caucus is a voice in Congress for these issues, and I am honored to serve in this critical position.”

The bipartisan Congressional Rural Caucus provides a forum to find workable solutions to the unique issues facing rural Americans. The caucus will work to strengthen rural communities, help them prepare for the future, and jumpstart initiatives to rejuvenate rural communities struggling under today’s difficult economic conditions.

For more information on the Congressional Rural Caucus, please visit: http://ruralcaucus-adriansmith.house.gov/.



Farm Payments to be Cut By Budget Sequester

The U.S. government will trim payments to 350,000 farmers by about $152 million to comply with automatic spending cuts that took effect at the start of this month, Agriculture Secretary Tom Vilsack said on Tuesday.

According to Reuters, Vilsack said the money would come out of the $5 billion-a-year direct-payment subsidy, which is paid in the fall, to offset reductions due in three USDA programs that have already disbursed money to farmers.

During a speech to trade group officials, Vilsack said comparatively small amounts are due for each farmer, so it would be more efficient to pro-rate the direct-payment subsidy than to ask the farmers for a refund on checks already cut.

Affected are the Milk Income Loss Contract subsidy to dairy farmers, the Supplemental Revenue Assistance program and the Noninsured Assistance Program.



USDA Adds Pork to Export Reports, Requests DDG Comments

Beginning this week, all exporters of U.S. pork will begin reporting weekly export sales to the U.S. Department of Agriculture's Foreign Agricultural Service. The data will allow USDA to issue weekly export sales reports to the public, allowing for information on the total volume of pork export sales and shipments to be available within two weeks of the activity, rather than the two month period customary to exports as reported by the U.S. Bureau of the Census. More frequent reporting will improve market transparency and enable the pork commodity market to better adjust to changing export activity.

The Agricultural Trade Act of 1978 requires the reporting of exports of certain commodities and gives the Secretary of Agriculture the authority to include others. Recent amendments to that act mandated the addition of pork as a commodity for which export reporting is required. A final rule published in today's Federal Register amends the Export Sales Reporting requirements to add pork to the list of commodities covered by the program, including wheat and wheat flour, feed grains, oilseeds, cotton, rice, cattle hides and skins, and beef.

Exporters will report the quantity, destination, and marketing year of all pork export sales totaling one metric ton or greater, including certain changes in previously reported sales. Exports of U.S. pork have nearly doubled from fiscal years 2007 to 2012. In fiscal year 2012, exports of U.S. pork and products reached more than 2.2 million tons.

In addition, a proposed rule was also published in today’s Federal Register seeking public comment on the addition of distillers dried grain (DDG) as a reportable commodity under the ESR requirements.



Novozymes Applauds Senate Biofuels Vote

For the third time, the Senate voted down an attempt to prevent the Department of Defense from using renewable fuels for its transportation needs, allowing the military to become less reliant on foreign oil. Novozymes, the world leader in converting biomass – from corn stover and energy crops to household trash – into biofuels, praised the United Sates Senate today for continuing its support of the Navy’s advanced biofuels program. Today’s defeated amendment was offered by Senator Pat Toomey (R –PA).

“Every day we import oil, we’re putting our troops, families and country at needless risk. We can reduce that risk with a secure energy supply, including renewable fuels,” Adam Monroe, President of Novozymes North America, said. “Imagine how much safer our troops and country will be when we’re making more fuel at home, instead of getting it from abroad. Our military understands its needs. Renewables are domestically-made and being used now. Let’s follow today’s bipartisan example in the Senate and let our military move forward getting its energy – and America another way to improve its security.”

Rising jet fuel prices could cost the military an additional $1 billion in 2013, according to the Biotechnology Industry Association. In November 2012, the Senate voted twice to keep the DOD’s biofuel program moving forward:
-    November 28th, 2012 – Senator Mark Udall’s amendment to allow the Department of Defense (DOD) to purchase biofuels passed the Senate.
-    November 29th, 2012 – Senator Kay Hagan’s amendment to allow the DOD to fund advanced biofuel projects passed the Senate.

In May 2012, Novozymes inaugurated the largest enzyme plant dedicated to biofuels in the United States with the opening of its advanced manufacturing plant in Blair, Nebraska. Funded with $200 million in private investment, the plant created 100 career positions and 400 construction jobs, and specializes in enzymes for both the conventional and advanced biofuel markets.

To date, domestic, clean and renewable transportation fuel production and investment has:
-    Created 400,000 good paying jobs and careers;
-    Laid the groundwork for 800,000 jobs for advanced biofuels by 2022;
-    Generated $40 billion in GDP in 2012;
-    Helped reduce foreign oil imports by 25 percent.



Ethanol Supply Hits Nearly 4-Month Low

U.S. ethanol supply was drawn down 200,000 barrels (bbl) to 18.5 million bbl, a nearly four-month low, during the week-ended March 15, the Energy Information Administration reported on Wednesday, with regional supply declines occurring in the Midwest and along the East and Gulf coasts while West Coast inventory jumped.

The decline in domestic supply comes despite a 12,000-barrel-per-day (bpd) increase in output at U.S. ethanol plants to 809,000 bpd, a three-week high. Domestic output is down 84,000 bpd, or 9.4%, compared with the year-ago production pace and 104,000 bpd or 11.4% compared with the production rate for the corresponding week in 2011. During the four weeks ended March 15, domestic ethanol production averaged 806,000 bpd, down 91,000 bpd, or 10.2%, versus the comparable year-ago output rate.

At 18.5 million bbl, domestic ethanol supply is down a sharp 4.2 million bbl or 18.5% from the same week in 2012. 

Imports returned for the first time in three weeks, with the 27,000 bpd supply from foreign sources all received along the West Coast.

Implied demand for ethanol fell during the week-ended March 15, with refiner and blender net inputs sliding 15,000 bpd to 810,000 bpd. The four-week average through mid-March is 814,000 bpd, up 3,000 bpd compared with 2012.

Gasoline supplied to market tumbled 303,000 bpd to 8.324 million bpd, a two-month low. During the four weeks through March 15, implied demand averaged 8.478 million bpd, up 123,000 bpd or 1.5% versus the comparable year-ago period.

Expressed as a percentage of daily gasoline demand, daily ethanol production was 9.72% — the highest since the first week of the year.

On the co-products side, ethanol producers were using 12.266 million bushels of corn to produce ethanol and 90,287 metric tons of livestock feed, 80,491 metric tons of which were distillers grains. The rest is comprised of corn gluten feed and corn gluten meal. Additionally, ethanol producers were providing 4.21 million pounds of corn oil daily.



Top Economist Predicts A Tighter Farm Safety Net That Cements Crop Insurance

Former USDA Chief Economist Keith Collins, Ph.D.,  predicts a smaller farm safety net in the future, but one that cements crop insurance.  "We will see a greater evolution in the reliance on crop insurance in 2013," Collins said.  Collins stated that one only needs to look at the past few years to recognize the important role crop insurance plays in helping farmers hit by Mother Nature.  “Crop insurance has prevented lots of farm stress that would have occurred and as a result, farmers are paying their bills,” Collins said.

Collins made his remarks during the Capitol Hill Ag Day forum, “Farm to Fork Politics: An Insider's Look at the Year Ahead.”

Other panelists included J.B. Penn, chief economist at Deere & Company and B. Hudson Riehle, senior vice president, National Restaurant Association.  During his remarks, Penn addressed supply and demand, noting that growing population, especially in urban areas, will continue to put pressure on agriculture. By 2050, more than 70 percent of the world population will live in urban areas, Penn predicted.  “On the supply side, global agriculture struggles to keep pace,” Penn said. “The 2013 outlook is very weather dependent.”

Penn also noted an increase in regional competition.  “Overall, we are seeing traditional exporters losing market shares and we have more competitors.”

Riehle shared some insights from the restaurant industry, predicting an increase in business in 2013.  “Americans now are more interested in food (and where it comes from) than at any other point,” Riehle said.



ANNUAL MEETING EMPHASIZES OPPORTUNITIES IN GLOBAL MARKETPLACE

Paying respect to the contributions its farmer-owners make to the global marketplace, Dairy Farmers of America’s 15th Annual Meeting explored the diverse ways the Cooperative and dairy industry are preparing for the future. Nearly 1,500 members and guests convened in Kansas City for the event this week.

For generations, DFA members have been feeding the nation, and now, as the Cooperative expands its footprint in the global marketplace, the world. During the meeting, speakers discussed how DFA and the industry are strengthening their position in the global marketplace to create a stronger and more innovative Cooperative for generations to come.

“As a national milk marketing cooperative, DFA is delivering its members’ high-quality milk around the globe through dairy ingredients, its own branded products and those of its customers,” said Randy Mooney, chairman of DFA’s Board of Directors. “From this land, we are all making a difference. Members are producing nature’s most perfect food. From our plants and our customers’ plants, that milk is being processed into cheese, butter, ice cream, yogurt, ingredients and more. Through that process, we are feeding the world.”

The meeting kicked off with the chairman’s report, delivered by Mooney, who operates a dairy in Rogersville, Mo. He focused on the steps DFA has taken to seize opportunities in the global marketplace, as well as its strategy to capture these prospects in the future. Mooney also discussed issues, such as animal activism, that are affecting farmers every day at home.

An overview of the Cooperative’s business was delivered by President and Chief Executive Officer Rick Smith. His report also explored how the Cooperative has evolved during the past several years and highlighted ongoing efforts to better serve and provide value to its members.

“As a dairy farmer-owned Cooperative, our mission is to bring value to members,” Smith said. “One way to do this is to participate in value-added opportunities for dairy, both domestically and globally. This supports our goal and obligation to help feed people around the world, and meet the unmet demand for healthy and nutritious dairy products worldwide.”

Special guests and additional highlights of the meeting program included:
·         A panel discussion, “World of Opportunity,” featuring Tom Suber, president, U.S. Dairy Export Council; Jay Waldvogel, senior vice president of strategy and international development, DFA; and Larry Jensen, president, Leprino Foods
·         “Feeding 9 Billion People — Maintaining the Planet,” a presentation by Jason Clay, senior vice president of market transformation, World Wildlife Fund
·         An update on National Milk Producers Federation’s work for the dairy industry by Jerry Kozak, president and chief executive officer
·         An overview of the latest dairy promotion activities by Tom Gallagher, chief executive officer of Dairy Management Inc.

The Cooperative’s Annual Banquet brought a host of recognitions, including the 2013 Members of Distinction — one member farm from each of DFA’s seven regional Areas that is excelling on their operations, in their communities and in the industry.

The 2013 Members of Distinction are: Krause Holsteins Inc., Buffalo, Minn.; Ayers Farms, Perrysville, Ohio; J.R. Hall Farms, Rigby, Idaho; Piper Farm LLC, Embden, Maine; Huffard Dairy Farms, Crockett, Va.; Bentwood Dairy, Waco, Texas; and Van Warmerdam Dairy, Galt, Calif.

In addition, outgoing Board directors were recognized for their contributions to DFA during the Cooperative’s Annual Banquet. They are Mickey Childers, Somerville, Ala., Southeast Area; Larry Frederick, Baring, Mo., Central Area; Lew Gardner, Galeton, Pa., Northeast Area; Les Hardesty, Greeley, Colo., Mountain Area; Pete Mensonides, Turlock, Calif., Western Area; Ellis Roberts, Preston, Idaho, Mountain Area; and Rob Wonderlich, Ollie, Iowa, Central Area.

Winners of the 2013 DFA Cares Foundation Scholarship were announced at the banquet. Scholarships are awarded to outstanding students pursuing a career in the dairy industry. This year’s 29 recipients will receive a combined total of $28,000 toward their undergraduate and graduate level studies.

Also at the banquet, guests learned about the new Be More Employee Recognition Program, which encourages employees to demonstrate DFA’s core values and reinforce the meaning of “More Cooperative.” The inaugural group of 11 Be More Award winners was honored among their peers and the Cooperative’s farmer leadership.

Each year the Annual Meeting concludes with the Resolutions process, which brings together 250 elected delegates from across the nation to vote on a slate of issues that guide the policy position and business activities of the Cooperative for the coming year.



JPMorgan, MF Global Trustee Reach Agreement

(AP) — JPMorgan Chase has agreed to a deal that will return $546 million to former customers of trading firm MF Global Holdings Ltd., which collapsed in 2011 with $1.6 billion missing from its accounts.

MF Global failed in October after a calamitous bet on European debt spooked its investors, partners and clients. The bankruptcy was the eighth-largest in the U.S. and the largest on Wall Street since the 2008 collapse of Lehman Brothers. Much of the missing money belonged to farmers, ranchers and other business owners who used MF Global to reduce their risks from fluctuating prices of commodities such as corn and wheat. A House panel has said credit rating agencies and federal regulators contributed to MF Global's collapse. But it pinned most of the blame on risky strategies by ex-CEO Jon Corzine, the former New Jersey governor.

JPMorgan held MF Global funds in several accounts and also processed the firm's securities trades. The trustee tasked with getting customers' money back, James W. Giddens, threatened to sue the New York bank if it didn't return money that was transferred to the bank from MF Global. By June 2012, JPMorgan had returned $608 million to the firm.

Under a settlement agreement filed Tuesday in Manhattan bankruptcy court, JPMorgan Chase has agreed to pay $100 million to reimburse customers and will relinquish claims on $417 million that it previously returned. JPMorgan also will return over $29 million that it is holding as security on an MF Global credit line. The recovered money will eventually be passed along to customers.

The bank doesn't comment on the reserves it sets aside to pay for specific legal cases. But it said the settlement would not have a material impact on its results.

Bank spokeswoman Jennifer Zuccarelli said the bank was pleased to reach the settlement, which would help restore funds to MF Global's customers.

"As we have said before, JPMorgan worked to assist our client in a responsible manner under very challenging circumstances," she added.

The deal must be approved by Bankruptcy Court Judge Martin Glenn and District Court Judge Victor Marrero.