Friday April 12 Ag News

Roberts Dairy to Market Fresh Dairy Products Under Hiland Dairy Foods Name, Beginning in May

Roberts Dairy will begin marketing its fresh, local, high quality milk and dairy products under the Hiland Dairy Foods label, beginning in May. The move will solidify the synergy between two of the country’s finest dairy producers, under one name.

“This will be a great match of farmer-owned dairies,” says Gary Aggus, president/general manager of Hiland Dairy. “Blending the Hiland & Roberts Dairy brands is a natural progression that ensures we’ll continue to deliver the same fresh, high quality milk and tasty dairy foods that consumers have enjoyed for generations.”

Roberts Dairy has been a division of Prairie Farms - Hiland Dairy since 1981. Hiland Dairy has been serving the Midwest for more than 75 years, producing pure, fresh-from-the-farms wholesome milk and dairy products.

Hiland Dairy is an 11-plant operation with locations in Arkansas, Kansas, Missouri, Nebraska and Oklahoma. As a full-service dairy, Hiland’s quality products include milk, ice cream, yogurt, cottage cheese, sour cream and dips, half and half, whipping cream, orange juice, butter and cheese. The company serves customers in several states, including Arkansas, Colorado, Iowa, Kansas, Missouri, Nebraska, Oklahoma, Texas and Wyoming.

“The only thing changing is the label on the package,” says Aggus. “Under the Hiland brand, Roberts is still the same, local, farmer-owned dairy that has delivered wholesome products to its customers for more than 100 years and will continue to produce milk in Omaha and Kansas City.”

And, under the Hiland Dairy Foods label, Roberts products will continue to be naturally nutritious with no antibiotics and no artificial growth hormones.



Branstad Issues Disaster Proclamation for 10 Counties

Gov. Terry E. Branstad issued a proclamation of disaster emergency in response to severe weather that impacted ten counties in northwest Iowa.

Counties included in the proclamation are Clay, Dickinson, Emmet, Kossuth, Lyon, O'Brien, Osceola, Palo Alto, Plymouth and Sioux. Beginning April 9, damaging winds, heavy rains, thunderstorms and freezing rains caused damage to public and private property, power outages from downed power lines and poles, and a large amount of debris.

The Governor's proclamation allows state resources to be utilized to respond to and recover from the effects of these storms, including for removal of debris and wreckage on publicly or privately owned land that may threaten public health and safety, or public and private property.



Iowa farmers tout economic, environmental benefits of maintaining soybean acres

Iowa farmers and crop experts say there are tremendous advantages to planting equal amounts of soybeans and corn.  Ed Anderson, Iowa Soybean Association (ISA) senior director of supply and production systems, says planting rotations of soybeans and corn benefits both crops.  “Studies show us that corn yields are higher following soybeans. The advantage of a soybean-corn rotation still centers on yield. The positive impact is probably due to several factors,” Anderson says. “Soybeans break disease, insect and weed cycles and provide nitrogen (fertilizer) for corn the following year.”

In addition, the March 28 issue of the Advance (www.isafarmnet.com/Advance/AdvanceMarch28.pdf), a publication of the ISA On-Farm Network, points out that maintaining a two-year soybean-corn rotation can also lead to energy savings during production and when handling, drying and conditioning of stored grain simply due to few bushels being handled. The rotation also allows farmers to spread out spring and summer fieldwork and harvest over a longer period of time.

According to University of Illinois Department of Agriculture and Consumer Economics estimates, soybeans following corn this year could equal or exceed the profits from continuous corn, depending on the productivity of the land. Based on early April commodity prices, the difference could exceed $30 per acre in favor of soybeans.

Iowa soybean acres held steady in 2011 and 2012 at 9.35 million acres, according to government statistics.  Last month’s U.S. Department of Agriculture Prospective Plantings Report said Iowa farmers intend to plant 50,000 more acres of soybeans this year and the same amount of corn, 14.2 million acres.

Weather and economic factors could convince farmers in Iowa and the Upper Midwest to plant more soybeans than planned. A frigid early spring, continued drought conditions in most of the state, falling corn prices and history are all working in favor of soybeans, crop and economic experts say. Acres devoted to continuous or corn-on-corn will likely dwindle in the weeks ahead, officials said.

Chad Hart, Iowa State University Extension and Outreach grain economist, believes there’s a good chance soybean acres statewide could top 10 million acres once planters are parked for good.  “Right now the agronomic, economic and climate factors are shifting (Iowa) more toward a 50/50 (corn and soybean) rotation. Things are pointing in a good direction for soybeans,” Hart said.

As farmers ready planters and fields this spring, many believe a traditional 50/50 rotation is better.

If soybeans are given proper credit for increases in corn yields, Wayne Fredericks of rural Osage says it pays to stick to a two-year corn-soybean rotation.

“I was apprehensive that I was leaving money on the table until I wrapped my mind around the figures,” Fredericks said, Iowa Soybean Association (ISA) treasurer and supply committee chairman.



EPA Administrator Nominee Goes Before Senate in Confirmation Hearing

Thursday the U.S. Senate Environment and Public Works Committee held a hearing on the confirmation of Gina McCarthy, President Obama’s nominee to head the Environmental Protection Agency (EPA) after the departure of former administrator Lisa Jackson earlier this year. The National Cattlemen’s Beef Association (NCBA) said it hopes that if McCarthy is confirmed, that she will work to develop a more positive working relationship with the agriculture industry.

“Whether it is releasing producers’ personal information to activist groups or trying to regulate all ponds and puddles across the U.S., EPA has not worked cooperatively with the cattle industry under the current administration,” said NCBA Deputy Environmental Counsel Ashley McDonald. “We sincerely hope Ms. McCarthy, if confirmed by the Senate, would work to improve this relationship which will ultimately have a more positive impact on the environment than the current anti-agriculture attitude that is prolific within the agency.”

During the hearing, McCarthy, who is currently the head of EPA’s air office, was questioned on issues such as the Spill Prevention Control and Counter measure (SPCC) rule and whether she would commit to not creating a national database with information on agricultural operations around the country, with most of these questions asked by Sen. Deb Fischer (R-Neb.), who made known her concerns about the proposed CWA expansion, an issue important to farmers and ranchers across the country and a policy priority issue for NCBA. Fischer also urged McCarthy and EPA to ensure that regulations are made on sound publicly available science subject to a thorough analysis.

“We have bridges to build with the farming community,” McCarthy said during the hearing, also saying that “I’m a meat eater myself.”

However, McCarthy would not commit to supporting the Farmers Undertake Environmental Land Stewardship (FUELS) Act, which was recently introduced in the House and Senate and would lessen the burden of the SPCC rule on farms and ranches. McCarthy also could not commit to not creating a national database which would make producer information publicly available and readily searchable through EPA’s website. McDonald said these two statements by McCarthy call into question whether she truly wants to build relationships with the agricultural community, including cattle producers.



Administration Welcomes Japan Into TPP Talks

The National Pork Producers Council today praised the Obama administration for agreeing to accept Japan into the Trans-Pacific Partnership (TPP) trade negotiations.

The TPP is a regional trade negotiation that includes the United States, Australia, Brunei Darussalam, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam, which account for a combined 30 percent of global GDP. Japan already has free trade agreements with seven of the 11 TPP countries: Brunei, Chile, Malaysia, Mexico, Peru, Singapore and Vietnam.

“The addition of Japan to the negotiations will exponentially increase the importance of the TPP to pork producers and to other sectors of the U.S. economy,” said NPPC President Randy Spronk, a pork producer from Edgerton, Minn. “Japan’s entry into the trade talks will spur interest in the TPP among other countries in Asia and Latin America, and it will signal to other nations that efforts to negotiate more open and transparent 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 the fourth largest U.S. agricultural export market overall. U.S. food and agricultural exports to Japan in 2012 totaled $13.5 billion. Japan is the top value export market for U.S. pork, accounting for almost $2 billion in 2012 sales.

“With Japan in it, TPP is the single most important trade negotiation ever for U.S. pork and many other U.S. agricultural products,” Spronk said. “We estimate that a South Korea-Colombia-type outcome for U.S. pork in the TPP negotiation – meaning the elimination of all tariff and non-tariff barriers – will create 27,000 direct and indirect pork industry jobs in the United States.

“We look forward to working closely with the Obama administration and Congress to fashion an agreement that U.S. pork producers can strongly endorse,” added Spronk.



Sen. Johanns Statement on Japan Entering TPP Negotiations

U.S. Sen. Mike Johanns (R-Neb.) released the following statement today after the Obama Administration announced it reached an agreement to allow Japan to join the Trans-Pacific Partnership (TPP) negotiations. There are 11 countries participating in the trade talks.

“I congratulate Japanese and American leaders for taking this important step in deepening our already strong trade and diplomatic relationships,” Johanns said. “I look forward to a comprehensive agreement that lowers tariffs and includes science-based standards for market access. Japan recently removed some barriers to U.S. beef – we should build on that progress with a strong agreement that benefits our economy, farmers, and workers, as well as our negotiating partners.

“This is also great news for America’s ag producers. Japan is one of the largest markets in the world for agricultural products and bringing them to the negotiating table can only help improve access to this important market for our farmers and ranchers. America needs strong trading partners in the Asia-Pacific region and TPP negotiations will play a key role in helping us develop these relationships.”



Smith Statement on Japan and the Trans-Pacific Partnership

Today, the Obama Administration announced bilateral consultations with Japan about its interest in joining the Trans-Pacific Partnership (TPP) have concluded and the U.S. welcomes Japan joining TPP negotiations.

“Today’s announcement represents a positive development which could expand market access for Nebraska exporters in one of the world’s largest economies,” said Congressman Adrian Smith (R-NE).  “While Japan has shown progress and signaled a willingness to recognize science-based food standards, more work is needed.  It is imperative the Administration and Congress continue to seek assurances Japan wants a comprehensive agreement in line with the ambitious goals established in current TPP negotiations.  We cannot undermine gains in market access by allowing non-tariff trade barriers to prevent Nebraska producers from exporting their quality products.”

U.S. food and agricultural exports to the Asia-Pacific region have previously reached more than $80 billion, and account for more than 70 percent of total U.S. agricultural exports to the world.

According to National Pork Producers Council President Randy Spronk, “With Japan in it, TPP is the single most important trade negotiation ever for U.S. pork and many other U.S. agricultural products.  We estimate that a South Korea-Colombia-type outcome for U.S. pork in the TPP negotiation – meaning the elimination of all tariff and non-tariff barriers – will create 27,000 direct and indirect pork industry jobs in the United States.

As a member of the House Ways and Means Subcommittee on Trade, Congressman Smith remains committed to ensuring Nebraska’s producers are represented during the negotiation process.



NCBA Statement on Japan and the Trans-Pacific Partnership

National Cattlemen's Beef Association (NCBA) President Elect Bob McCan, a cattleman from Victoria, Texas, made the following statement regarding Japan and the Trans-Pacific Partnership:

“Cattlemen and women are encouraged by the Obama administration’s announcement to include Japan in the Trans-Pacific Partnership (TTP) negotiations. Japan is an important ally to the United States and we hope this will strengthen the ties between our two nations. We urge the U.S. government and the government of Japan to continue working together to establish international trade standards based on sound science and market-driven principles. The TPP has the potential to be a new era in global trade where all TPP countries can compete for consumer demand without the hindrance of protectionism.”

Japan was the second largest export market for U.S. beef in 2012 at $1 billion in sales. On Feb. 1, 2013, Japan implemented new import protocols allowing U.S. beef from cattle harvested under 30 months in age. This was an important step forward to improve market access for U.S. beef into Japan, which previously limited imports to beef from cattle under 21 months in age.

Currently, the United States, Australia, Brunei Darussalam, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam are involved in the TPP negotiations.



USDEC and NMPF commend U.S. decision to welcome Japan into TPP talks

The U.S. Dairy Export Council (USDEC) and National Milk Producers Federation (NMPF) applaud the United States’ decision to welcome Japan into Trans-Pacific Partnership (TPP) free trade negotiations.

“Japan greatly enhances the potential value of the TPP to U.S. dairy producers and processors,” says Jaime Castaneda, senior vice president for strategic initiatives and trade policy, USDEC and NMPF. “Japan is the third-largest economy in the world and already a major dairy importer. Reducing excessive tariffs and removing non-tariff barriers to trade will significantly increase U.S. dairy export opportunities, which helps drive overall U.S. dairy industry growth.”

U.S. suppliers shipped $284 million worth of cheese, whey proteins, milk powder and other dairy products to Japan in 2012. It is the fifth-largest U.S. dairy export market, despite substantial market access barriers in many of the biggest dairy categories.

The U.S. Trade Representative’s Office officially notified Congress of the American government’s intention to enter into TPP trade talks in 2009. At that time, it did so with the idea that the TPP would eventually expand from the initial eight participants—Australia, Brunei, Chile, New Zealand, Peru, Singapore, the United States and Vietnam—to the entire Asia-Pacific, thus expanding the economic significance of the deal.

“The addition of Canada in 2012 and now Japan greatly raises the possibility of a positive overall TPP dairy package. But negotiators must now follow through on another promise made back in 2009: concluding a high-standard trade agreement,” says Castaneda. “We need to secure, in ongoing talks, effective disciplines on sanitary and phytosanitary (SPS) measures, strong defense of common food names and meaningful competition policy changes in New Zealand’s dairy sector.”

Japan needs approval from all current TPP participants before officially joining the group. Although the United States has endorsed Japan’s participation now, we expect that the rest of the TPP partners will soon follow suit. The 17th round of negotiations takes place May 15-24 in Lima, Peru. Japan will join the actual negotiations 90 days after the United States notifies Congress of their intent to enter into negotiations with Japan.



Wheat Growers Welcome U.S. Support for Japan’s Entry to Trans-Pacific Partnership

The U.S. wheat industry welcomes the announcement today by President Barack Obama that the United States will support Japan’s bid to become the 12th country to join Trans-Pacific Partnership trade negotiations.

Japan imports more U.S. wheat on average than any other country and the boards of directors for U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) passed a resolution in November 2011 stating support for Japan to join TPP. 

American farmers sell a significant amount of wheat into the Asia-Pacific region, where population and purchasing power are increasing rapidly. Yet while demand for wheat is also growing in the region, tariff and non-tariff barriers still exist.

As we have seen from previous agreements in markets including Mexico, Peru and Colombia, U.S. participation in regional free trade agreements provides real benefits to U.S. farmers and, specifically, wheat growers and their customers. With ambitious goals to eliminate virtually all tariffs, take on new “21st Century” issues and strengthen commitments on sanitary-phytosanitary (SPS) measures relating to food and plant safety, TPP represents the best opportunity to liberalize trade in the region and help keep U.S. wheat supplies available to more customers at a lower cost.

As the world's third largest economy, Japan's entry will bring the economic output of the TPP member countries to more than $27 trillion according to the International Monetary Fund. By including Japan, two-thirds of economic activity of the 21 Asia-Pacific Economic Cooperation member countries would be part of TPP. That kind of economic weight will add credence to the long-term TPP goal of liberalizing trade in the Asia-Pacific region.



Livestock Industry Supports Catastrophic Wildfire Prevention Act

The National Cattlemen’s Beef Association (NCBA), Public Lands Council (PLC) and the Arizona Cattle Growers’ Association (ACGA) today urged Congress to provide commonsense solutions for preventing devastating wildfires by passing the Catastrophic Wildfire Prevention Act of 2013 (H.R. 1345), which was considered by the House Subcommittee on National Parks, Forests and Public Lands. Testifying on behalf of NCBA, PLC and ACGA, Andy Groseta, an Arizona rancher and president of ACGA, spoke to the urgency of passing the legislation in light of the millions of acres of western lands which were impacted last year by wildfires.

H.R. 1345 was introduced by Rep. Paul Gosar (R-Ariz.) to address the forest health, public safety, and wildlife habitat threats presented by the risk of catastrophic wildfire on lands managed by the U.S. Forest Service and the Bureau of Land Management. The legislation 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 for the purposes of hazardous fuels reduction, forest health and economic development. Other requirements include ensuring that Endangered Species Act emergency provisions are invoked in high-risk situations to allow fuel-reduction projects to proceed.

According to Groseta, decades of mismanagement of our nation’s public lands have led to the dangerous levels of fuels that have resulted in catastrophic wildfires.

“Roughly four decades of severe mismanagement of our national forests has resulted in vast areas of public lands that have either recently experienced or are at risk of experiencing catastrophic wildfire,” said Groseta. “It has become all too clear from the millions of charred acres across the West, that the planning process currently in use by the federal agencies is broken.”

Groseta added that fires are a natural occurrence in forest ecosystems in North America and, when occurring in healthy forests, should be considered beneficial. Fire acts to remove excess debris including dead and dying trees and herbaceous material, providing sunlight and nutrients for subsequent growing seasons. He warned that while naturally occurring fire is good for healthy forests, catastrophic wildfire—a result of excessive forage and trees—causes great harm to forest ecosystems. The cost of wildfire suppression efforts for 2012 have been estimated at almost $2 billion; still, over nine million acres burned.

“Wildfires have immense impacts on livestock producers. Across the West, hay is in short supply. Thousands of head of displaced livestock have had to be shipped to temporary pastures. Dry conditions are expected to persist, delaying the recovery of burned area. Livestock owners will be forced to sell their animals or seek more lasting alternatives to the private pastures and public lands they’ve run livestock on for generations,” said Groseta. “We should be afraid of intense, devastating wildfires that span hundreds of thousands of acres—not chainsaws and cows. We urge Congress to advance H.R. 1345 without delay, to enact commonsense solutions to reduce the threat of wildfire on public lands.”



NeFU Submits Supportive Comments on Country-of-Origin-Labeling

Nebraska Farmers Union (NeFU) submitted supportive comments on Thursday, April 11, the final day for comments to USDA relative to their proposed rule to strengthen Country-of-Origin Labeling (COOL) regulations.  The USDA proposed changes to the rules for COOL implementation are in response to the World Trade Organization (WTO) decision on COOL.

In their comments, NeFU stated:  “NeFU is in general support of the proposed revised rule relative to the implementation of COOL.  If implemented properly, we believe these revisions represent an improvement in the transparency and accuracy of U.S. food labeling.  We appreciate the USDA efforts made to respond to the World Trade Organization (WTO) case in a positive way so our nation can continue to implement effective COOL.  It is in our national interests to do so.”

“NeFU strongly believes that U.S. food producers deserve the opportunity to differentiate their food products in the marketplace, and that U.S. consumers also deserve the opportunity to know where the food products they purchase for themselves and their family come from.  Whether you are a food producer or food consumer, you deserve honesty, accuracy, and transparency in the marketplace, which is exactly what clear and effective labeling represents.”

NeFU pointed out in their comments that their organization has strongly supported Country of Origin Labeling since 1984, and has diligently worked through the 2002 and 2008 Farm Bills to get COOL labeling established for 29 years.

Further comments from NeFU President John Hansen noted:  “I have had the honor of serving as the president of my organization since 1990.  I can honestly say that our members support for COOL is stronger today than it was in 1984.  While our members support for COOL is high, so is their frustration over the never ending attacks on COOL by the meat packers and their political allies within the ag sector.  They seem to believe they are above the law.”



NCBA Submits Comments on Proposed Mandatory Country of Origin Labeling Rule

The National Cattlemen’s Beef Association (NCBA) submitted comments yesterday on the United States Department of Agriculture’s (USDA) proposed amended Mandatory County of Origin Labeling Rule (MCOOL). In comments, NCBA stated that the proposed rule changing MCOOL will not satisfy the World Trade Organization (WTO) or the beef industry’s largest trading partners, Canada and Mexico, who originally brought the WTO complaint.

“We have long advocated that MCOOL is a marketing tool and while cattlemen and women are proud of the products they produce, a mandatory labeling program does not provide a value to our industry or our customers,” said NCBA President Scott George, a cattleman from Cody, Wyo. “We support and see value in voluntary labeling programs like Certified Angus Beef, where there is a genuine effort to distinguish and market the product. The proposed rule will not meet those ends and will only serve to increase the discriminatory treatment of non-U.S. product and will doubtlessly end in retaliatory tariffs on a wide range of our products and significant cost to our members.”

Under the proposed rule, all products sold at retail would be labeled with information noting the birth, raising and slaughter. This requirement will place greater recordkeeping burdens on producers, processors and retailers. Further, the rule would eliminate the ability to commingle muscle cuts from different origin, which will add to the costs of processing non-U.S. born, raised and slaughtered products, resulting in further hesitance to process product that was imported at any stage of development.

“These provisions only serve to give our trading partners a stronger case at the WTO,” said George. “The Canadian government has already confirmed that they will consider all options including extensive retaliatory measures. Our industry, battered by drought and high feed costs, and overregulation cannot afford additional burdens from the federal government. The USDA should spend its time and money working to avoid another threat of sequester of federal meat inspectors, not drafting new rules to fix an old problem.”

The WTO has given the U.S. until May 23, 2013 to come into compliance with our trade obligations. In 2012, Canada and Mexico accounted for nearly $2 billion in beef exports, or 36 percent of total beef exports by value.



NOPA March Soy Crush Seen at 140M Bushels

Soybean crush rates for March in the National Oilseed Processors Association's monthly soybean crush report are expected to rise from the previous month to about 140 million bushels on seasonal processing trends, according to a survey of industry analysts.  The month-over-month increase in the crush reflects a seasonal upturn in processing, attributed to more days for crushing in March than in February.

The crush was measured at 136.3 million bushels in February. Last year, the soy crush for March measured 140.5 million bushels.  Yet, the uncertainty of processors' ability to secure enough available soybean supplies to take advantage of favorable processing margins produced wide ranges in analysts' estimates. The estimates ranged from 127.1 million bushels to 146 million bushels.

NOPA's report, which includes only data from members, is scheduled to be released Monday at 11am Central time. 

The average estimate from analysts surveyed is that the NOPA report will show soyoil stocks building from the prior month. The average of analysts' estimates was 2.822 billion pounds, compared with February soyoil stocks of 2.790 billion. Estimates ranged from 2.740 billion pounds to 2.875 billion pounds.



2013 I-CAL Mission Heading to Brazil

With a vision of advancing the understanding and value of international trade, The Grains Foundation is dedicated to developing the next generation of agriculture professionals through the International Collegiate Agricultural Leadership (I-CAL) program. Each year, in cooperation with the National FFA Organization, I-CAL sends 12 U.S. college students overseas to experience different areas in the agricultural industry. Students not only understand how trade impacts the global economy, but also the importance of the United States building positive relationships with customers worldwide.

This May, I-CAL will take students around the Minas Gerais state of Brazil, where they will explore a number of topics including competition, environmental issues, trade agreements, and the corn and livestock industries. The students will have a full schedule, which includes meetings with trading companies, tours of swine and dairy farms, a plant and feed mill, and a flower production farm.

This year's I-CAL team represents a variety of majors, ranging from agricultural communications to soil and crop science, and are from universities all across the United States.

The team is comprised of the following:
-- Laura Gorecki from the University of Nebraska
-- Ana Schweer from South Dakota State University
-- Joseph Degreenia and Hope Wentzel from Virginia Tech
-- Ethan Giebel and Tina Holst from the University of Wisconsin- Platteville
-- Mollie Lastovica from Texas A&M University
-- Samuel Tauchen from the University of Wisconsin- River Falls
-- Kiah Twisselman from the University of California, Davis
-- Clint Vance from Ohio State University
-- Jenna Vculek from North Dakota State University
-- Kari Weis from the University of Missouri

The 2013 I-CAL mission was made possible thanks to past USGC Chairman Owen Newlin, Growmark and CHS Foundation.



World Food Prices +1% in March on Higher Dairy Values - FAO

World food prices increased by around 1% in March, the United Nation's food body said Thursday, driven by soaring prices of dairy products.

The Food and Agriculture Organization's food price index, which measures the monthly change in international prices of a basket of food commodities, rose 1.7 points from February to 212 points. The index now stands 1.7% below its mark in March last year and nearly 11% below its peak in February 2011.

The FAO said last month's rise in world food prices was driven mainly by an 11% increase in dairy, where products carry a 17% weighting among the various commodities included in the calculation of the overall index.

The individual Dairy Price Index jumped by 22 points in March, to 225 points, due to hot and dry weather in Oceania which has led to milk production falling off steeply and a reduction in the region's processing of dairy products.

The dairy prices used in the index are based on shipments from New Zealand, as it is the world's largest dairy exporter, accounting for about one-third of global trade.

Export prices for dairy products have also risen for other important exporters, such as the European Union and the U.S., the FAO said, but not to the same degree.

"The exceptional increase is in part a reflection of market uncertainty as buyers seek alternative sources of supply," it added. "In addition, dairy output in Europe has yet to come fully online after a particularly cold winter, which has delayed pasture growth to feed dairy animals."

The FAO said most other major commodity prices were stable in March, with the Cereal Price Index unchanged on the month at 244 points.

While corn prices rose due to a fall in exportable supplies from the U.S., lower wheat prices caused by prospects of a good world harvest offset those increases, the FAO said.

Meanwhile, global rice prices were stable, it added.



Spring Planting – The Non-Seed Variety

For farmers, spring means it's time to get the seed in the ground.

For the U.S. Grains Council, spring 2013 means last winter's budget uncertainty is behind us, and it's time to throw international market development programming back into high gear.

For most of the fall and winter, the failure of Congress to reauthorize the Farm Bill, the extended delay in passing the federal budget and uncertainty about the debt ceiling meant that the availability of Market Assessment Program (MAP) and Foreign Market Development (FMD) program funds could not be assumed. That uncertainty, at least for the moment, has now lifted.

"It's great to be back," said USGC President and CEO Tom Sleight. "Last winter, with all the questions about MAP and FMD, we cut travel and programming to the bone to ensure that we could keep international staff in place through the funding crunch. On top of the drought, a short crop, and the resulting fall in U.S. exports, that was a double hit. So this spring, as we look to a new crop and -- we hope -- a strong rebound in export sales, we're making up for lost time."

From a Moroccan mission to learn about U.S. corn quality ... to co-products promotion in Korea and Japan ... to DDGS seminars in East Asia and Latin America ... the Council's international staff is hitting the ground running. The Council's very well received Corn Harvest Quality and Corn Export Cargo Quality Reports have been released to eager readers around the world. Looking longer term, emerging market assessment initiatives took teams to India and Africa as well.

"We call it 'Being There,'" Sleight continued. "We're servicing our current loyal customers -- that's always Job 1 -- but we're also continuing what the Council has always done "turn over rocks" to unearth and develop demand for corn, barley and sorghum. The world is changing fast. The Council must remain engaged and nimble to best represent the global interests our members.

Some uncertainties remain. The federal budget crunch is a long-term problem, and the House and Senate Agriculture Committees are still looking for a path forward for a new Farm Bill. But for now, with the drought abating, a new crop about to be planted, and the Council's global staff back at full throttle, the year ahead is shaping up as one of opportunity -- and that's good news indeed.