Wednesday March 27 Ag News

NDA DIRECTOR IBACH DECLARES SERICEA LESPEDEZA A NOXIOUS WEED IN NEBRASKA
In order to protect the quality of Nebraska’s agricultural and other land, Nebraska Department of Agriculture (NDA) Director Greg Ibach is designating sericea lespedeza as a noxious weed in Nebraska.  The designation will take effect on April 1, 2013.

“This weed poses a threat to our native ranges and pastureland as well as other natural areas,” Ibach said.   “It can reduce or even eliminate native grasses, and it affects the quality and quantity of pasture available to our livestock herds.”

Sericea lespedeza is a perennial that grows well in grasslands and pastures as well as along roadsides and drainage areas.  The weed currently is found mainly in southeastern Nebraska and can be spread by wildlife and livestock.  Infested areas that are utilized for hay production accelerate the spread of the weed into new areas.

With the addition of sericea lespedeza, Nebraska has 12 noxious weeds.  The list includes: Canada thistle, leafy spurge, musk thistle, plumeless thistle, purple loosestrife, spotted knapweed, diffuse knapweed, saltcedar, phragmites, Japanese knotweed and giant knotweed.

Those with questions about sericea lespedeza should contact their local county weed control superintendent.  Questions also may be directed to the NDA Noxious Weed Program Manager at (402) 471-6844.



Congress Fixes Conservation Stewardship Funding

Farmers and ranchers will again have the opportunity to apply for the Conservation Stewardship Program (CSP), which rewards producers for conservation practices on working lands, thanks to passage of legislation that replaces the funding for 2013 CSP enrollment that was accidently cut off in the government spending bill that passed last October.

“This legislation removes the remaining obstacles to farmers and ranchers having the opportunity to enroll in CSP this year,” said Traci Bruckner, Assistant Policy Director for the Center for Rural Affairs. “It is a welcome move by Congress to address this oversight because there are farmers and ranchers who have been waiting to sign up for this program and each year there are twice as many, or more, applying than can receive contracts under available funding.”

According to Bruckner, USDA can now proceed with enrolling just over 11 million acres of farm and ranch land in the program this year, bringing the program to a grand total of 62 million acres by year’s end. The funding error was fixed by a bill that would provide continuing funding for the federal government for the next six months - the remainder of the 2013 fiscal year. The Senate passed the bill on a 73 to 26 vote on March 20th, followed by passage in the House of Representatives on March 21st by a vote of 318 to 109.

“We’ve pressed for this result since last October when the first government funding bill accidentally shut off CSP enrollment for 2013, so we want to celebrate this,” added Bruckner. “And we’re going to continue working with farmers and ranchers who want to apply to the program.”

Bruckner encouraged potential applicants to move forward now, before planting season is underway and many become too busy in the field to get away. While CSP is a continuous signup program and producers can apply to enroll at any time of the year, USDA applies a cut-off date for applications to be considered during a particular fiscal year. Once the cut-off date is past, producers may continue to apply for the program, but they will not be considered for entry until the spring of the following year, in this case spring of 2014.

"We know the previous sign-ups have yielded some great success stories for farmers and ranchers, but also some disappointments and frustrations,” Bruckner continued. “That’s why we want farmers, ranchers and others to call the Center for Rural Affairs' Farm Bill Helpline with questions about the application process and to share their experiences, both positive and negative.”

While the USDA’s Natural Resource Conservation Service (NRCS) has yet to decide on a deadline for farmer and rancher applications, there is speculation it will likely be in May. That short timeline should provide further motivation for farmers and ranchers to visit their local NRCS office now and start the application process right away, suggested Bruckner.

“CSP is one of the most popular conservation programs at NRCS, enrolling nearly 39,000 farmers and ranchers operating 50 million acres of farm and ranch land under five-year CSP conservation contracts worth $3.5 billion,” said Bruckner. "Through our helpline you will speak to someone who is knowledgeable about the program rules to help you understand how to participate in the program."



RIN Credits Not a Factor in Higher Gas Prices; Ethanol Reducing Pump Prices

Contrary to the recent wave of hyperbole coming from the oil industry, the Renewable Fuel Standard (RFS) and its associated “RIN credits” have not been a factor in this spring’s higher retail gasoline prices, according to new analysis conducted by Informa Economics, Inc. In fact, the study found ethanol costs significantly less than gasoline at the wholesale level and is reducing pump prices for consumers across the country.

“A fact-based review of developments in the gasoline, ethanol and RIN [Renewable Identification Number] markets indicates that the Renewable Fuel Standard in general and RINs in particular have not been a demonstrable factor in the rise in retail gasoline prices that has occurred in early 2013,” the report concluded.

Responding to the independent study’s findings, Renewable Fuels Association (RFA) President and CEO Bob Dinneen said, “Not surprisingly, opponents of the RFS have absurdly suggested RINs are a reason for this spring’s higher gas prices. This report puts that silly notion to rest and clearly confirms that RINs are not having any noticeable impact on gasoline prices. In fact, as the Informa analysis plainly shows, increased ethanol use leads to lower—not higher—prices at the pump for American consumers. The facts and data speak for themselves. Drivers could realize even greater savings at the pump if refiners and blenders would break down their self-inflected blend wall and give up their stubborn resistance to offering E15 and E85.”

The analysis, commissioned by RFA, found RINs are likely contributing no more than $0.004 (four-tenths of one cent) to the retail price of a gallon of gasoline. Meanwhile, ethanol’s wholesale discount to gasoline in 2013 has reduced the pump price for blended gasoline by an average of $0.044 per gallon. Thus, when the net impact of both RIN costs and ethanol’s discount to gasoline are considered, ethanol-blended gasoline is saving consumers an average of $0.04 per gallon based on straight blending economics.

“Considering both the ethanol price advantage and the direct cost of RIN prices, the net benefit to consumers from the usage of ethanol is $0.04 per gallon of gasoline…” the report found. According to the authors, this savings doesn’t take into account either the indirect benefit that ethanol has on gasoline prices by effectively lowering demand for crude oil and clear gasoline or the enhanced octane value of ethanol over gasoline.

High gasoline prices in early 2013 can be explained by several factors unrelated to the RFS, RINs, or ethanol use, the report found. “There is a distinct seasonal pattern to gasoline prices and crack spreads,” the analysis notes, adding that “[t]he increase in gasoline prices and crack spreads during the first quarter of 2013 has been generally consistent with increases experienced in 2011 and 2012, despite the fact that conventional ethanol RIN prices averaged $0.03 during the first quarter of 2011 and $0.02 during the first quarter of 2012.” Citing a Department of Energy analysis, the Informa report also notes that higher gasoline prices have stemmed from planned and unplanned refinery maintenance; the low starting level for gasoline crack spreads going into 2013; preparation for seasonal fuel specification changes; and developments in global product demand.



Coalition Urges U.S., Other Countries To Welcome Japan Into TPP

A coalition of food and agricultural organizations and companies today urged the United States and other countries in the Trans-Pacific Partnership (TPP) negotiations to quickly welcome Japan into the trade talks.

Japan recently announced its intention to join the TPP negotiations, which currently include Australia, Brunei, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Vietnam.

In a letter sent today to President Obama, the coalition of 75 food and agricultural organizations and companies said the inclusion of Japan in the trade talks would generate enormous interest and support in U.S. agriculture.

“The addition of Japan to the negotiations will exponentially increase the importance of the TPP to U.S. farmers and ranchers, processors and exporters as well as other sectors of the U.S. economy,” said the coalition. ‘Furthermore, it will spur interest in the TPP among other countries in Asia and Latin America.”

Allowing Japan to join the talks also will send a strong signal to other nations that efforts to negotiate more open and transparent regional trading arrangements will continue, even as multilateral efforts to do so are stymied.

Japan’s economy is second only to China’s in the region, and it is fourth largest agricultural export market for the United States despite maintaining substantial import barriers. U.S. food and agricultural exports to Japan in 2012 totaled $13.5 billion. Aside from Canada and Mexico, the next most important agricultural export market among the parties to the TPP is Vietnam, ranking 16th overall and totaling $1.7 billion.

“Japan’s entry into the TPP as a full partner greatly enhances the overall value of this momentous regional free trade agreement,” the coalition said.



NMPF Launches See It? Stop It!SM Initiative to Empower Farm Workers

The National Milk Producers Federation (NMPF) today joined the Center for Food Integrity and the U.S. pork sector to jointly launch “See It? Stop It!SM Animal care starts with you,” a proactive demonstration of agriculture’s commitment to farm animal care. The initiative empowers, and in fact, demands that if signs of animal abuse, neglect, mishandling or harm are witnessed, anyone working on a farm or in a farm setting has an obligation to report it immediately.

Though it is uncommon, when animal abuse, neglect, harm or mistreatment takes place, it is essential to give animal care providers resources to swiftly report what they witness. The

“See It? Stop It!” initiative provides several options to enable employees to speak up to stop animal abuse. Ultimately, empowering animal caretakers and giving them responsibility to report animal abuse immediately will help assure the best care for animals.

Betsy Flores, NMPF’s Senior Director of Animal Health and Welfare, stated, “Care of animals could not be more important to farmers. Having a system in place to contact any of several authorities is imperative, and ‘See it? Stop it!’ provides that resource. This initiative combines well with the dairy industry’s National Dairy FARM Program: Farmers Assuring Responsible ManagementTM to ensure the well-being of animals in our care.”

The initiative demonstrates to the public that farmers are committed to good animal care and calls on anyone who witnesses abuse to stop it immediately. This includes those who are on farms to videotape animal production activities. Stopping and reporting abuse quickly is the right thing to do for animals, and it demonstrates that those involved in livestock production understand their obligation to provide sound animal care. Demonstrating this commitment is important to maintaining public trust in today’s animal agriculture.

“As the nation’s oldest animal protection organization, the American Humane Association (AHA) has a long history of involvement with programs that help assure proper animal care,” said Kathi Brock, National Director of the Farm Animal Program for AHA. “It is critical for farm management to set clear expectations for animal care and to have zero tolerance for animal mistreatment. We believe ‘See It? Stop It!’ provides the tools to help set those expectations and a mechanism for reporting abuse which supports the proper care of America’s farm animals.”

“Those in agriculture are understandably frustrated by undercover videos. The actions of a few captured on video can taint public perception of the entire livestock community. Taking action to stop abuse demonstrates a genuine commitment to do what’s right for the animals on farms,” said Roxi Beck of the Center for Food Integrity, which is a not-for-profit corporation established to build consumer trust and confidence in the today’s food system. CFI’s members, who represent every segment of the food system, are committed to providing accurate information and addressing important issues among all food system stakeholders.

It is the duty of farm leaders to convey the level of commitment they have to responsible animal care, while empowering employees who work with or around animals to immediately report any signs of animal abuse, neglect, harm or mistreatment.

“We depend on more than 11,000 independent livestock and poultry farmers to supply us and we believe they share our commitment to proper animal treatment,” said Dean Danilson, Vice President of Animal Well-Being Programs for Tyson Foods. “Initiatives like ‘See it? Stop it!’ and our own FarmCheck™ on-farm audit program are additional ways we can assure our customers and consumers we’re producing food responsibly. In fact, reporting animal mistreatment is one of the key elements of FarmCheck™.”

Both the U.S. pork and dairy industries have provided funding for the initiative and feel it is a great way to expand upon their already strong animal care programs.

“The Pork Quality Assurance® (PQA Plus®) program outlines best practices for proper animal care,” said Sherrie Niekamp, director of animal welfare for the National Pork Board. “The ‘See it? Stop It!’ initiative meshes well with the core principles of PQA Plus that pork producers have followed for more than 20 years.”

“This initiative confirms the commitment of every farm owner and manager to do what’s right for animals,” said Dallas Hockman, vice president of governmental regulations for the National Pork Producers Council. “‘See it? Stop it!’ expands upon the industry’s ‘We Care’ program, which is grounded by ethical principles and well-being practices. ‘We Care’ helps further establish a culture that ensures proper animal care.”

Additional information about the program, including an employer checklist, guidance for integrating the program into existing animal well-being programs, posters for use in barns and guidance on employee training is available at www.SeeItStopIt.org.



Weekly Ethanol Production for March 22

Here is the weekly ethanol production data for the week ending 3/22/2013.

According to EIA data, ethanol production averaged 805,000 barrels per day (b/d) — or 33.81 million gallons daily. That is down 4,000 b/d from the week before. The four-week average for ethanol production stood at 804,000 b/d for an annualized rate of 12.33 billion gallons.

Stocks of ethanol stood at 17.4 million barrels. That is a 5.5% decrease from last week, and the lowest since December 9, 2011.

Imports of ethanol showed 27,000 b/d, unchanged from last week.

Gasoline demand for the week averaged 352.8 million gallons daily.

Expressed as a percentage of daily gasoline demand, daily ethanol production was 9.58%.

On the co-products side, ethanol producers were using 12.206 million bushels of corn to produce ethanol and 89,840 metric tons of livestock feed, 80,093 metric tons of which were distillers grains. The rest is comprised of corn gluten feed and corn gluten meal. Additionally, ethanol producers were providing 4.19 million pounds of corn oil daily.



March Farm Prices Received Index Up 3 Points

The preliminary All Farm Products Index of Prices Received by Farmers in March, at 202 percent, based on 1990-1992=100, increased 3 points (1.5 percent) from February. The Crop Index is up 5 points (2.1 percent) and the Livestock Index increased 3 points (1.9 percent). Producers received higher prices for lettuce, broilers, corn, and eggs and lower prices for hogs, milk, wheat, and onions. In addition to prices, the overall index is also affected by the seasonal change based on a 3-year average mix of commodities producers sell. Increased monthly movement of strawberries, corn, broilers, and milk offset the decreased marketing of cattle, soybeans, cotton, and hay.

The preliminary All Farm Products Index is up 18 points (9.8 percent) from March 2012. The Food Commodities Index, at 185, increased 2 points (1.1 percent) from last month and is 13 points (7.6 percent) higher than March 2012.

Prices Paid Index Unchanged
The March Index of Prices Paid for Commodities and Services, Interest, Taxes, and Farm Wage Rates (PPITW) is 221 percent of the 1990-1992 average. The index is unchanged from February but 8 points (3.8 percent) above March 2012. Higher prices in March for nitrogen, feed grains, mixed fertilizer, and supplements offset lower prices for feeder cattle, feeder pigs, potash & phosphate, and diesel.

Prices Received by Farmers
All crops: The March index, at 240, increased 2.1 percent from February and is 14 percent above March 2012. Index increases for feed grains & hay and commercial vegetables more than offset the index decreases for oilseeds and food grains.

Food grains: The March index, at 246, is 2.4 percent below the previous month but 7.4 percent above a year ago. The March price for all wheat, at $7.66 per bushel, is down 31 cents from February but 46 cents higher than March 2012.

Feed grains & hay: The March index, at 307, is up 2.0 percent from last month and 13 percent above a year ago. The corn price, at $7.18 per bushel, is up 14 cents from last month and 83 cents above March 2012. The all hay price, at $196 per ton, increased $2.00 from February and is $13.00 higher than last March. Sorghum grain, at $12.30 per cwt, is 20 cents above February and up $1.40 from March last year.

Cotton, Upland: The March index, at 123, is down 0.8 percent from February and 17 percent below last year. The March price, at 74.6 cents per pound, is down 0.7 cents from the previous month and 15.4 cents below last March.

Oilseeds: The March index, at 252, is down 1.2 percent from February but 8.2 percent higher than March 2012. The soybean price, at $14.50 per bushel, decreased 10 cents from February but is $1.50 above March 2012.

Livestock and products:
The March index, at 165, is 1.9 percent above last month and is 3.1 percent higher than March 2012. Compared with a year ago, prices are higher for broilers, milk, and eggs. Prices for hogs, cattle, calves, and turkeys are down from last year.

Meat animals: The March index, at 159, is down 1.2 percent from last month and 4.2 percent lower than a year earlier. The March hog price, at $59.80 per cwt, is down $4.70 from February and $5.40 lower than a year ago. The March beef cattle price of $125 per cwt is up $2.00 from last month but $3.00 lower than March 2012.

Dairy products: The March index, at 146, is down 2.0 percent from a month ago but 11 percent higher than March last year. The March all milk price of $19.10 per cwt declined 40 cents from last month but is up $1.90 from March 2012.

Poultry & eggs: The March index, at 197, is up 9.4 percent from February and 13 percent above a year earlier. The March market egg price, at 95.2 cents per dozen, increased 17.6 cents from February and is 16.1 cents higher than March 2012. The March broiler price, at 66.0 cents per pound, is up 5.0 cents from February and 9.0 cents above a year ago. The March turkey price, at 64.1 cents per pound, increased 1.4 cents from the previous month but is down 4.9 cents from a year earlier.



Market Trends for Pork Production

Dr. Steve Meyer with Paragon Economics, Inc. said five questions will drive the markets for pork production this year: "Will it rain? Where will it rain? When will it rain? How much will it rain? Will it be hot, hot, hot again this year?"

According to Meyer, weather is the biggest influencer on markets as we look to the summer -- and it's always a gamble. For example, Meyer pointed out that last year at this time, we were worried about northwest Iowa and southwest Minnesota being too dry. Little did we know that the 2012 drought would make these areas the least of our worries.

Meyer said we have never before seen two droughts like 2012's in a row, but we'll have to wait and see what 2013 holds in store. The southern Corn Belt is in good shape in terms of drought conditions and things are improving in the Southeast and Plains states. The USDA forecasts 96.5 million acres of corn planted this year. With a perfect weather yield of 163 bushels per acre, that would lead to corn prices at about $4.80. As long as the weather cooperates, Meyer said "that's very possible to do this year." He said soybeans are likely to price out at $10.50 per bushel.

Meyer said he believes changing fuel use will force U.S. policymakers to review ethanol mandates. That's because more fuel-efficient vehicles are simply using less fuel than they did in past years. Blenders can't meet the ethanol mandates when they have less total fuel to blend.

Shifting focus to the global economy, Meyer said Japan is the latest economic worry as the country has slipped into a recession and the exchange rate of the yen has decreased. Europe continues to be an economic "wreck" while the rest of the world seems to be in a recovery.

In the U.S., the housing market is slowing improving with low interest rates and job growth. Meyer said the unemployment rate is falling, but will likely stay above 7 percent. He said per capita disposable income was down in January by 0.1 percent, which does affect purchasing decisions.

According to Meyer, "everything is working against meat demand right now." The Social Security tax essentially meant that every American took a 2-percent cut in pay starting Jan. 1. That equates to $100 million per week less in the pockets of U.S. consumers. In addition, bad weather across the country has lessened public spending. As the eastern states were hit by several severe storms, many people weren't able to get to work and, thus, collect their full paychecks.

Meyer said pork exports are approaching 25 percent of total output, which he cited as "a source of pride and concern" as it brings risk dependent on the actions of other countries. He said it's not likely that we will hit record exports in 2013.

Meyer concluded by saying that the 2013 forecasts for pork have fallen again, but he's optimistic that producers should reach $90 to $92 per hundredweight this summer. The 2013 slaughter will be slightly higher than 2012; weights are still lower right now, but will probably increase in the summer months. Finally, Meyer pointed out that sow prices have "exploded" recently. He challenged producers to take advantage of the opportunity to market some of their sows and replace them with better genetics if they're in a position to do so.



NOAA Spring Weather Forecast Predicts 'Mixed Bag'

The National Oceanic and Atmospheric Administration issued its three-month U.S. Spring Outlook, stating that odds favor above-average temperatures across much of the continental United States, including drought-stricken areas of Texas, the Southwest and the Great Plains. Spring promises little drought relief for most of these areas, as well as Florida, with below- average spring precipitation favored there. Meanwhile, river flooding is likely to be worse than last year across the country, with the most significant flood potential in North Dakota.

"This outlook reminds us of the climate diversity and weather extremes we experience in North America, where one state prepares for flooding while neighboring states are parched, with no drought relief in sight," said Laura Furgione, deputy director of NOAA's National Weather Service. "We produce this outlook to help communities prepare for what's likely to come in the next few months and minimize weather's impacts on lives and livelihoods. A Weather-Ready Nation hopes for the best, but prepares for the worst."

The U.S. Spring Outlook identifies the likelihood of spring flood risk and expectations for temperature, precipitation and drought. The outlook is based on a number of factors, including current conditions of snowpack, drought, soil moisture, streamflow, precipitation, Pacific Ocean temperatures and consensus among climate forecast models.

After a year of reprieve, the Red River of the North between eastern North Dakota and northwest Minnesota, and the Souris River in North Dakota have the potential for moderate and major flooding. Devils and Stump Lakes in northeast North Dakota have a 50 percent chance of rising approximately two feet, which would flood 20,000 acres of farmland and roadways.

The melting of late-season snow may cause minor to moderate flooding in the upper Mississippi River basin, including southern Wisconsin, northern Illinois and northern Missouri. The tributaries in the plains of the upper Missouri River basin, specifically along the Milk River in eastern Montana, the Big Sioux River in South Dakota and the Little Sioux River in Iowa may also see minor to moderate flooding. With significant frozen groundcover in these areas, spring flood risk is highly dependent on rainfall and the speed of the snowmelt.



CRA as It Welcomes New President

The Corn Refiners Association has announced that John W. Bode as its new President and C.E.O. As President and CEO of CRA, the National Corn Growers Association looks forward to continue joint efforts with this longtime partner in promoting opportunities for corn farmers.

"During recent meetings in Washington, the NCGA Corn Board had the pleasure of celebrating CRA's 100th anniversary with them in person," said NCGA President Pam Johnson. "Now, we celebrate the announcement of the selection of Bode as CRA president and CEO with them in spirit. Our organizations have a long history of working together for the benefit of America's farmers and wet millers. We look forward to building upon this in the coming years."

Bode comes to the CRA with 30 years of experience as a lawyer and lobbyist in Washington, D.C., representing many prominent companies.

Prior to private practice, Bode served on the Senate Agriculture Committee staff and held three Presidential appointments at the U.S. Department of Agriculture, where he was responsible for approximately one-half of the USDA budget. John testified before Congress more than 70 times and oversaw development of approximately 90 proposed and final rules. A widely recognized speaker on food law and policy, he has been involved in every significant change in federal food law over the past 25 years.

Bode earned a bachelor's degree from the University of Oklahoma and a Juris Doctor from George Mason University School of Law. He will begin in his new position on May 6.

"I am honored to join the Corn Refiners Association to represent this important industry," said Bode. "CRA has an outstanding staff. We look forward to making a difference for the corn wet milling industry."



Under Secretary Tonsager Is Leaving USDA

Agriculture Secretary Tom Vilsack has announced that Agriculture Under Secretary Dallas Tonsager will departure from USDA:  Vilsack says, “Dallas Tonsager’s efforts as Under Secretary for Rural Development have helped increase opportunity for thousands of rural families, businesses and communities. Dallas’s service to the U.S. Department of Agriculture under the Obama Administration was the latest part of a distinguished career of service to agriculture and rural America. I’m proud of the work we have achieved together and I wish Dallas the best in his future endeavors.”

Under Secretary Dallas Tonsager says...
"After spending twelve gratifying years in leadership positions at the United States Department of Agriculture, I have decided to move on to the next chapter in my life.

I am enormously proud of USDA’s record accomplishments – especially those of my colleagues at Rural Development.  In recent years, Rural Development has carried out more work to help rural communities than at any other time in the agency’s history.  We have provided affordable, quality housing in rural America, helped tens of thousands of rural businesses, and played a key role in helping rural Americans create homegrown energy. We’ve achieved these results with a shrinking staff and an uncertain budget, but I never questioned the commitment of our team at Rural Development.  Leading this group of 5,000 talented men and women has been an honor.

As someone who has spent a lifetime working to strengthen rural America, I am excited about the future of farm country.  My sincere thanks to President Obama and Secretary Vilsack for providing me this opportunity. I look forward to collaborating with them and all of my friends as we continue to serve rural America.”