Charting a Course to Sustainable Water Management
(from NeFB)
The Chair of the Legislature’s Natural Resources Committee is no stranger to water issues. Since arriving in Lincoln in 2006 to represent the people of the 38th District, Holdrege, Neb., native Tom Carlson has had his hand in numerous bills targeted at managing one of Nebraska’s most precious natural resources; water. While his experience in dealing with water bills is extensive, his latest venture into the world of water policy is a little different from the rest.
“In terms of concept and idea, this has been the most positive reaction I’ve received on a bill in my seven years in the Legislature,” Carlson said April 11 in reference to LB 517, legislation he introduced to tackle statewide water management.
LB 517 would establish a short-lived Water Funding Task Force to address the long-term, funding needs related to management of Nebraska’s state water resources. Senators gave first round approval to the bill March 28 after adopting a Natural Resources Committee amendment that tweaked Carlson’s original version. The bill, now waiting to be discussed on the second of three rounds of floor debate, calls for a Task Force made up of the Natural Resources Commission, the director of Natural Resources, the Chair of the Legislature’s Natural Resources Committee and 10 additional members to be appointed by the Governor.
The bill would also allocate $3 million to the Task Force for the production of a report which would be required to be given to the full Legislature by Jan. 31, 2014. The report is to include recommendations for a plan which prioritizes water programs, projects and activities in need of funding in four broad areas: research, data and water modeling needs; rehabilitation and construction of infrastructure; conjunctive management of ground and surface water; and compliance with interstate compacts.
If the initial vote count is any indicator, the bill looks to be on solid ground following a 36-0 first round vote in favor of the measure. According to Carlson, 2003 was the last time the legislature looked to a dedicated study of Nebraska water, and he has high expectations for the current measure and the prospects of what a final report might provide.
“I hope it looks like a 20-year strategic plan for water policy in Nebraska that would have a timeline for projects that need to be done; starting with the 250 water projects that have already been identified.
As a part of that I hope through brainstorming and maybe a working subcommittee we have some actual suggestions for projects that would help us reverse the trend of 1 million acre feet of water coming into the state annually while watching 8 million acre feet of water leave. If we could tackle that issue alone, the work of this task force would be worthwhile,” Carlson said.
Carlson is also hopeful the task force is innovative in its thinking.
“We know water flows west to east and north to south, so we need to think about projects that help intercept some of the excess water in good years and hold it back to help with recharge and have it available so that we can use it. That includes a willing to move excess water from one basin to another instead of having it flow out through the Missouri River,” Carlson said.
Like Carlson, Nebraska Farm Bureau has been heavily involved in the discussions surrounding LB 517. Nebraska Farm Bureau’s Vice President of Government Relations Jay Rempe says the organization is supportive of the bill and the need to achieve long-term planning for water management.
“There are many competing uses for water in Nebraska: irrigation, domestic uses, instream flows, power generation and recreation just to name a few. Proper planning and funding is needed to assure projects and management activities to meet the needs and maximize beneficial use of water for Nebraskans,” said Rempe.
UNL Extension Pesticide Container Recycling Program Enters 22nd Year
More than 2 million pounds of plastic pesticide containers have disappeared and no longer pose a threat to Nebraska's environment and landscape.
"To be more exact, 2.1 million pounds….which is well over 1,000 tons," said University of Nebraska-Lincoln pesticide safety educator Clyde Ogg.
That's the amount of empty, plastic pesticide containers UNL Extension's plastic pesticide container recycling program has helped collect and recycle from across Nebraska over the past 21 years.
As it has since the beginning, the UNL program helps recycle 1- and 2.5-gallon plastic pesticide containers and 15-, 30- and 55-gallon plastic crop protection chemical drums.
"These are farm and ranch pesticide containers that could otherwise end up stored in barns or sheds or be improperly disposed of by casting them aside on creek banks or burning them," Ogg said.
"The program's primary message has always been that it benefits everyone to find simple, cost-effective and cooperative ways to help properly dispose of these containers and keep them out of the environment and that message has been widely embraced.
"If responsibly and properly disposed of, such as through this program, the containers pose no future environmental risk."
Plastic from collected containers is turned into industrial and consumer products like shipping pallets, drain tile, dimension lumber and parking lot tire bumpers.
Last year, about 35 tons of containers were collected.
A full list of recycling sites, guidelines and program information and details is on UNL's Pesticide Safety Education Program Web site at http://pested.unl.edu/recycling.
"Teamwork and cooperation has kept this program viable and successful. That and the commitment of a lot of people that increasingly understand that this is a simple and effective way to care for our environment," Ogg said, citing cooperation from UNL extension educators and collection site managers statewide.
"Most of the (collection) sites are at agricultural chemical dealerships or community recycling centers, which volunteer to take on this additional responsibility," he said.
The program accepts pressure-rinsed or triple-rinsed 1- and 2.5-gallon plastic pesticide containers. They must be clean and drained, inside and out. Caps, labels, booklets and slipcover plastic labels must be removed since they cannot be recycled as part of the program. Those items should be disposed of as normal, solid waste. Glued-on paper labels can be left on the container. Rinsate should be returned to the spray tank.
Of the 38 sites involved in the program, 21 accept 15-, 30- and 55-gallon plastic crop protection chemical, crop oil and adjuvant drums.
Drums must be thoroughly rinsed before delivery to collection sites and should not be cut or opened in any way. Mini-bulk, saddle tanks and nurse tanks, which can be made of fiberglass or plastics not compatible with the recycling program, are not accepted.
Nine sites collect year-around, 14 collect May through August, 11 collect on specific dates and four are by appointment only.
Program funding is by a national coalition of agri-chemical manufacturers through the Agricultural Container Recycling Council, Washington, D.C.
County collection sites, by category, are listed below. Sites accepting 15-, 30- and 55-gallon plastic drums are noted.
Year-round collection sites:
Antelope: Central Valley Ag, Neligh, Monday through Friday, 8 a.m. to 5 p.m.
Buffalo: Kearney Recycling Center, Kearney, Monday through Friday, 8 a.m. to 5 p.m.
Cuming: West Point Transfer Station, West Point, Monday through Friday, 8 a.m. to noon, 1 to 5 p.m., Saturday 8 a.m. to 4 p.m.
Dawes: Solid Waste Association of Northwest Nebraska, Chadron, Monday through Friday, 8 a.m. to 5 p.m., Saturday 8 a.m. to 4 p.m.
Knox: Central Valley Ag, Bloomfield, Monday through Friday, 8 a.m. to 5 p.m.
Lincoln: City of North Platte Transfer Station, North Platte, Monday through Saturday 7 a.m. to 4 p.m.
Scotts Bluff: Gering Landfill, Gering, Normal business hours; accepts drums
Washington: Washington Recycling Center, Blair, Saturday 8 a.m. to noon, accepts drums
Wayne: Central Valley Ag, Wayne, Monday through Friday 8 a.m. to 5 p.m.
May-August collection sites:
Antelope: Central Valley Ag, Brunswick, Clearwater, and Elgin, accepts drums
Burt: Helena Chemical Company, Oakland
Dawson, All Points Cooperative, Lexington, accepts drums
Gage: Southeast Nebraska Cooperative, Beatrice; Holt: Central Valley Ag, O'Neill; accepts drums
Madison: Central Valley Ag, Tilden, accepts drums
Otoe: Midwest Farmers Cooperative, Syracuse, accepts drums;
Sarpy: Farmers Co-op, Gretna.
Saunders: Frontier Cooperative, Mead; accepts drums, Crop Production Services, Ashland, and Reid's Farmacy, Ashland.
Stanton: Farmers Cooperative, Pilger; accepts drums.
Sites collecting pesticide containers on specific days:
Cass: Midwest Farmers Co-op, Greenwood, July 1-31, 8-5 p.m., accepts drums, Midwest Farmers Coop, Nehawka, July 15-19, 8-5 p.m.
Clay: Cooperative Producers Inc., Sutton, Aug. 15 and 16, 8 a.m. to 5 p.m., accepts drums
Dakota: Central Valley Ag, South Sioux City, June and July, Wednesdays, 11 a.m. to noon (except holidays), accepts drums
Dixon: Central Valley Ag., Newcastle, May 9 & 23, June 6 & 13, July 3 & 17, Aug. 8 & 22, 8:00 to noon
Hamilton: Cooperative Producers Inc., Giltner, Aug. 1 and 2, 8-5 p.m, Aurora Cooperative, Aurora, July 22 thru 26, 8-5 p.m
Kearney: Cooperative Producers Inc., Minden, Aug. 6 thru 8, 8 a.m. to 5 p.m.; accepts drums.
Lancaster: Farmers Cooperative Co., Bennet, July 26, 9 a.m. to noon; Farmers Cooperative Co., Waverly, June 28, 9 a.m. to noon; both sites accept drums.
Otoe: Midwest Farmers Cooperative, Nebraska City, July 26 thru 30, 8-5 p.m., accepts drums.
Sites collecting pesticide containers by appointment only:
Cass: Wiles Bros. Fertilizer, Inc, Plattsmouth, 402-298-8550; accepts drums.
Custer: Custer County Recycling Center, Broken Bow, 308-870-0313; accepts drums.
Gage: Crop Production Services, Beatrice, 402-223-5102, accepts drums.
Phelps: CHS Agri Services, Holdrege, 308-995-5511.
Webinar Will Explain Farm Bill Options to Producers
A University of Nebraska-Lincoln Extension webinar will help producers sort out their options under the farm bill.
The sessions will be offered 10:30 a.m. to noon Central Time on April 29 and May 3. The first hour will feature discussion of farm bill implications and performance for last year and beyond; the rest of the time will be used for discussion of online Excel-based Nebraska ACRE tool for producers.
Both sessions will cover the same material.
Congress this year extended the 2008 farm bill to cover production in 2013.
The extension of this legislation requires producers to again make an election regarding which FSA farm program they will enroll under: the traditional DCP program or the newer ACRE program.
Timothy Lemmons, University of Nebraska-Lincoln Extension educator, said it's critical that producers understand how each program has performed in the past and how it's anticipated to perform this year.
The April 29 and May 3 webinars provide an opportunity for producers to re-educate themselves on the workings of the ACRE and DCP programs, as well as expert analysis of how these programs might extend risk management protection in the near future, Lemmons said.
"We will also demonstrate the updated Nebraska ACRE Model Excel program available for download at http://agecon.unl.edu/farmbill," he added.
Scheduled speakers include Brad Lubben, UNL Extension public policy specialist, and Lemmons.
Producers can participate in the webinar at http://connect.unl.edu/farmbillmeeting. The webinar also will be aired at the following sites: Chase County, 135 West Fifth, Imperial, April 29 and May 3; Valley County Extension Office, April 29 and May 3; Jefferson County Extension Office, April 29 and May 3; Haskell Ag Lab in Concord, May 3 only; Washington County Extension Office, 597 Grant St., Blair, May 3 only; and Cuming County Extension Office, courthouse, West Point, April 29 only.
In addition, the sessions will be recorded and available later at cropwatch.unl.edu.
Johnson Hired as Field Agronomist for ISU Extension and Outreach
Mark S. Johnson joined Iowa State University Extension and Outreach as a field agronomist for north central Iowa on April 15. Johnson, a certified professional agronomist and certified crop adviser, returns to his alma mater to serve as a member of the Iowa State extension crops team.
"I enjoy agronomy, teaching agronomic concepts and providing farmers and agri-business research-based information related to their agronomic issues,” Johnson said. “I’m personally rewarded every time I help someone find a solution or come closer to making a good agronomic decision.”
Johnson, of Ankeny, has a B.S. in agricultural education and an M.S. in agronomy from Iowa State University. During his 30-year agronomy career in agri-businesses, he has worked frequently with members of the Iowa State extension crops team that are now his colleagues. While the soil continues to warm this spring, he will be traveling his region to introduce himself to farmers and agri-business agronomists.
“I’m looking forward to meeting the farmers, learning about the issues they face and working with the agri-businesses,” he said. Johnson can be reached by email at markjohn@iastate.edu or by phone at (515) 979-9578.
EPA Issues Final Decision on Iowa’s 2012 List of Impaired Waters
EPA has approved Iowa’s 2012 list of impaired waters requiring Total Maximum Daily Load calculations. The Iowa Department Natural Resources (IDNR) submitted its impaired waters list to EPA on April 1, 2013 for review and approval as required by the Clean Water Act.
“EPA appreciates Iowa’s efforts to rigorously monitor and assess its waters so that IDNR can prioritize its development of pollution reduction plans,” said Karl Brooks, regional administrator. “This process is an important first step toward improved water quality. The Iowa impaired waters list documents IDNR’s priorities for restoration activities. We look forward to working with IDNR and the citizens of Iowa to restore Iowa’s lakes, rivers and streams.”
EPA commends IDNR for its work in preparing the list of impaired waters. In today’s decision, EPA approved the removal of 73 water bodies and the addition of 78 water bodies. Today’s action brings the total number of impaired waters on the state’s list to 479.
A water body is placed on the impaired waters list when monitoring finds that pollutant levels prevent the lake, river, or stream from attaining its beneficial uses. A water body can be removed from the list if it meets its beneficial uses or if a pollution reduction plan for a water body is approved by EPA. Beneficial uses in Iowa include human recreation, water supply, and maintaining healthy aquatic life.
EPA’s April 25, 2013, decision letter provides a more detailed description of EPA’s review and the basis for this action. The decision letter, including the final 2012 impaired waters list, is available at www.epa.gov/region7/newsevents/legal/.
Livestock Loans Raise Farm Lending
Nathan Kaufman, Economist, Kansas City Federal Reserve Bank
Maria Akers, Associate Economist, Kansas City Federal Reserve Bank
Commercial banks boosted lending to livestock operators in the first quarter. According to a February survey of national commercial banks, bank lending for livestock purchases rose to its highest level in almost a decade. High feeder cattle prices kept loan volumes to cattle feedlots elevated. With expectations of further declines in crop and feed prices during 2013, the potential for improved profits also supported lending activity to other livestock operations. In addition, loan volumes for current operating expenses, including feed, rose further following a fourth quarter surge. Bankers also reported a rise in the share of loans made with a floating interest rate for both livestock purchases and current operating expenses.
Real estate loan volumes also trended higher as farmland markets remained active. Potential tax policy changes looming at the end of 2012 led to a flurry of farmland sales in the fourth quarter. Despite heightened sales activity, farmland prices surged further supported by strong farm incomes. Farmland value gains were most pronounced in the Central and Northern Plains. Irrigated cropland sold particularly well in the Central Plains due to concerns about water scarcity and land lease revenues from mineral rights pushed up farmland prices in the Northern Plains. Farmland values were expected to remain at record levels and real estate loan volumes appeared to advance modestly in the first quarter of 2013.
Profits at agricultural banks continued to improve in the fourth quarter. The average return on assets and return on equity reached their highest levels in five years. Ample funds were available for financing as agricultural banks competed for high-quality farm loans, driving interest rates for real estate and non-real estate loans to new lows. Loan repayment rates also edged higher as record crop insurance payments resulting from last year’s drought boosted farm incomes. With rising loan repayment rates, delinquency rates on farm loans trended lower and net charge-offs, particularly for real estate loans, continued to fall.
First Quarter National Farm Loan Data
Increased lending to the livestock sector helped push first-quarter farm loan volumes above year-ago levels. According to the national Survey of Terms of Bank Lending to Farmers conducted during the first full week of February, the total volume of non-real estate farm loans made during the quarter jumped 9.0 percent in the first quarter of the year. An increase in the number of loans to the farm sector more than made up for a slight decline in average loan amounts. Farm real estate loan originations also rose during the first quarter.
Loans to livestock enterprises surged to historically high levels as operators financed livestock purchases and production expenses. With feed costs expected to moderate throughout 2013, potentially improving livestock profitability, loans to purchase livestock rose sharply in the first quarter. However, low cow inventories underpinned high feeder cattle prices and contributed to higher loan volumes to feedlot operations. In addition, current operating loans jumped compared with last year as winter feeding expenses remained elevated. The crop sector also paid high input costs for fertilizer and seed, though crop insurance payments eased the effect of drought on crop incomes. After surging at the end of 2012, loan volumes for farm machinery and equipment purchases fell below year-ago levels, as did intermediate-term loans to farmers for other, unspecified purposes.
The share of loans with a floating interest rate made to livestock operations jumped in the first quarter. The share of loans made with a floating interest rate rose to almost 70 percent for feeder livestock and exceeded 75 percent for other livestock loans and current operating expenses. Commercial banks also competed intensely for agricultural loans, driving average effective interest rates to new lows. The lowest rates were reported in the Pacific Rim and the Corn Belt.
Fourth Quarter Call Report Data
Agricultural banks posted their best fnancial performance in five years with strengthening profts in 2012. The rate of return on assets at agricultural banks topped 1.1 percent at the end of the year, compared with 0.8 percent at other small banks. The average rate of return on equity at agricultural banks rose to 10.2 percent in the fourth quarter, well above the 7.3 percent reported for other small banks. In addition, the percentage of agricultural banks with negative income as a share of average equity fell to a fve-year low. Furthermore, there were only two agricultural bank failures in 2012 from the more than 50 commercial bank closures during the year.
Farm lending at commercial banks soared at the end of the year. Farm debt outstanding at all commercial banks rose almost 5 percent in the fourth quarter, the largest year-over-year jump since early 2009. High input costs and a surge in farm machinery and equipment purchases to take advantage of tax incentives drove non-real estate loan volumes 5.0 percent higher than last year. Potential changes in tax policies also enticed more landowners to sell farmland before the end of 2012, pushing farm real estate loan volumes 4.6 percent above year-ago levels. Despite higher farm loan volumes, rising deposits at agricultural banks kept average loan-to-deposit ratios steady for much of 2012.
Farm loan delinquency rates fell during the fourth quarter. Following an uptick in the third quarter, delinquency rates on non-real estate farm loans dropped to 1.4 percent and loan charge-of rates held steady. Delinquency rates on farm real estate loans trended down for the second straight year, falling to 2.7 percent in the fourth quarter of 2012. In addition, charge-of rates on farm real estate loans fell to their lowest level in four years.
Fourth Quarter District Agricultural Conditions
Bankers in agricultural growing regions reported strong year-over-year farmland value gains in the fourth quarter. Strong interest in farmland from both farmers and nonfarm investors drove real estate prices higher in many areas despite increased sales and lingering drought conditions. Robust energy production and less severe drought conditions in the Northern Plains helped push the value of non-irrigated farmland up substantially.
Cropland values in the Corn Belt continued to build on previous gains. Back-to-back years of drought in the Southern Plains limited non-irrigated farmland value gains but fueled demand for irrigated acreage. Still, most bankers expected farmland values would hold at record levels regardless of weather patterns during the coming year. Interest rates to fnance farm real estate loans continued to edge down.
Elevated crop prices and crop insurance payments due to drought supported farm incomes and capital spending in the fourth quarter. Bankers reported a surge in capital spending before year-end to take advantage of tax breaks on depreciation for qualifed farm equipment. However, bankers indicated that strong farm income was limiting demand for some loans. The volume of dairy loans was expected to remain fat though feeder cattle loan volumes were expected to rise modestly in the Dallas District. As agricultural banks competed for qualifed borrowers, interest rates on short and intermediate-term loans fell further in all Districts except Richmond.
With solid incomes, farm credit conditions generally improved in the fourth quarter. According to Federal Reserve District Agricultural Credit Surveys, more bankers reported higher loan repayment rates and fewer loan renewals and extensions at the end of the year as some farmers used income to pay off debt. In addition, the availability of funds for farm loans remained high and collateral requirements for non-real estate farm loans held relatively steady. Average loan-to-deposit ratios edged up in the Richmond District but dipped lower in the Chicago and Dallas Districts.
Food Manufacturers Immigration Coalition Applauds Introduction Of Agricultural Worker Bill
The Food Manufacturers Immigration Coalition today praised the introduction of legislation that would assist in establishing a stable workforce that can help sustain the rural communities where farmers, ranchers and food manufacturers grow and process the nation’s and world’s food supply.
“The introduction of this legislation, and the bill introduced in the Senate, are important first steps in the immigration reform process, which will be a dynamic debate featuring many proposals to reform our flawed immigration process,” the coalition said. “We commend Chairman Goodlatte, and we look forward to working on a comprehensive approach to immigration reform.”
The “Agricultural Guestworker Act,” introduced by House Judiciary Chairman Bob Goodlatte, R-Va., replaces the impractical H-2A program with a sensible guestworker program. The new program, known as H-2C, modernizes and streamlines the agricultural guestworker program and would be administered by the U.S. Department of Agriculture (USDA), the federal agency that understands the unique needs of America’s food manufacturers and farm and ranch operations.
The existing temporary programs for general labor skilled workers are for seasonal labor only. Under the “Agricultural Guestworker Act,” the H-2C program would offer workers and employers more choices in their employment arrangements, creating more flexibility and making it easier for workers to move freely throughout the marketplace to meet demands. This new program will support food manufacturers, cattle operations, dairies, hog and poultry farms and other year-round agricultural employers.
“An effective occupational visa system may be the most important barrier to illegal immigration,” the coalition said. “The right visa system with the right screening tools will in effect be a ‘virtual border.’ The ‘Agricultural Guestworker Act’ and the creation of the H-2C program would serve the diverse interests of the agriculture and food manufacturing industries and will boost the modern agriculture labor market.”
Since not all agriculture jobs are the same or require the same level of skill and experience, the H-2C program would give employers the opportunity to invest their time in training workers for jobs by allowing them an initial stay of 36 months. Workers would then be required to leave for up to three months. After the period of leave, each H-2C visa holder would only be required to leave once every 18 months. This would provide farm labor stability and would encourage illegal farm workers to identify themselves and participate in the H-2C program.
The Food Manufacturers Immigration Coalition is composed of:
National Cattlemen’s Beef Association
National Pork Producers Council
North American Meat Association
National Chicken Council
National Turkey Federation
U.S. Poultry & Egg Association
California Poultry Federation
Georgia Poultry Federation
The Poultry Federation (Arkansas, Missouri, Oklahoma)
Virginia Poultry Federation
USDA: 2012 Milk Production Increases Over Two Percent
Milk production increased 2.1 percent in 2012 to 200 billion pounds. The rate per cow, at 21,697 pounds, was 361 pounds above 2011. The annual average number of milk cows on farms was 9.23 million head, up 39,000 head from 2011.
Cash receipts from marketings of milk during 2012 totaled $37.0 billion, 6.4 percent lower than 2011. Producer returns averaged $18.56 per hundredweight, 8.3 percent below 2011. Marketings totaled 199.4 billion pounds, 2.1 percent above 2011. Marketings include whole milk sold to plants and dealers and milk sold directly to consumers.
An estimated 961 million pounds of milk were used on farms where produced, 1.1 percent less than 2011. Calves were fed 90 percent of this milk, with the remainder consumed in producer households.
2012 Milk Production by State
State Cows - milk/cow - # milkfat - % milkfat - total production - $ receipts
Nebraska ...: 56,000 - 21,179 - 794 - 3.75 - 1,186,000,000 - 231,084,000
Iowa ..........: 204,000 - 21,730 - 815 - 3.75 - 4,433,000,000 - 849,024,000
Kansas .....: 126,000 - 21,675 - 804 - 3.71 - 2,731,000,000 - 516,610,000
New Goodlatte/Scott Dairy Bill
There may be a new compromise on the table for overhauling the way dairy farmers are paid for their milk. On Thursday, Reps. Bob Goodlatte of Virginia and David Scott from Georgia introduced a new bill that offers dairy producers margin insurance protection without requiring them to accept milk check deductions that would be collected by USDA. And the measure would not require dairy farmers to pay new administrative fees to USDA, which was part of a similar proposal last year.
Supporters say the dairy bill provides margin insurance on its own, similar to how other commodities are treated in Title 1 of the Farm Bill. Catastrophic margin insurance is offered for free up to 4 million pounds of production annually, and is offered at higher levels to all farmers without any supply management conditions. The margin insurance will also allow farmers to update their milk production every year they choose to participate in the program.
NMPF Reaction to Introduction of Goodlatte-Scott Dairy Freedom Act
Jerry Kozak, President and CEO, NMPF
“Goodlatte and Scott’s misnamed Dairy Freedom Act is nothing more than an unacceptable attempt by dairy processors to assure themselves access to a sea of taxpayer-subsidized cheap milk. Congress rejected this approach last year, and should do so again this year.
“What processors claim is a compromise is nothing more than a costly ruse that will hurt farmers and taxpayers alike.
“Because it features no mechanism to put the brakes on potential excess milk production, it offers dairy processors an over-abundant, cheap milk supply that will help their corporations’ bottom lines, while ensuring that farmers are underpaid for the milk they produce. Dairy processors are simply trying to have taxpayers make up the difference.
“The market stabilization program in the Dairy Security Act that was approved last year by both the House and Senate Agriculture Committees makes our program cost-effective. Creating an effective, voluntary participation program supported by dairy farmers from coast to coast most certainly is the business of the federal government. That program is the Dairy Security Act, not this dairy processor-backed Trojan Horse.”
IGC Lowers China Soy Imports
The London-based International Grains Council Friday lowered its forecast for China's soybean imports in the current marketing year due to the outbreak of bird flu.
Imports in the year ending Sept. 30, for which the IGC has reduced its forecast by 2 million metric tons to 59 million tons, may still be higher compared with actual purchases from overseas of 57.1 million tons in 2011-12, the council said. Growth in China's soybean imports, which averaged 16% in the last five years, will slow to 3.3% in 2012-13, it said.
The bird-flu outbreak in China has led to the culling of thousands of poultry and raised prospects for reduced demand.
Soybeans are crushed to extract soymeal that is used in animal feed. China is the world's largest importer of soybeans, with a more than 60% share of global trade, securing the commodity from the U.S. and South America.
China's soybean imports fell 9% in the six months through March, according to government estimates. Traders said this was mainly due to acute port congestion in Brazil that delayed shipments which have spilled over to the second quarter.
"Bird flu will reflect in demand during the second half of the year because China has mostly covered its soybean import requirements until June," said Freddy Pranteda, director at Cosur SA, a major South American brokerage for grains and oilseeds.
The IGC cut its forecast for China's soybean consumption in 2012-13 by 800,000 tons to 75.3 million tons but said if realized, it will still be a record high.
Welcome to the KTIC Agriculture Information blog!!! Check back here for the latest in ag news and information, from local events to international happenings and government reports that affect your operation. Please email with suggestions! -Chad Moyer, Farm Director, KTIC Radio
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