Tuesday April 16 Ag News

39th Annual Cuming County 4-H Beef Preview Results

The 39th Annual Cuming County 4-H Beef Preview Show was held on Saturday, April 13, at the Cuming County Fairgrounds in West Point. According to UNL Extension Educator in Cuming County, Larry Howard, the show is sponsored by the Cuming County Feeders Association and UNL Extension in Cuming County. The judge for the show was Jackie McKenney of Lincoln, Nebraska.

The Champion Market Steer was shown by Sydney Williams of Wisner, while Kali Stratman of West Point showed the Reserve Champion Steer. The Champion Market Heifer was exhibited by Amanda Stratman of West Point, and Austin Kempf of Carroll showed the Reserve Champion. The Supreme Breeding Heifer was shown by Sutton Bellar of Wisner; Katlyn Ahrens of West Point exhibited the Reserve Champion Supreme Breeding Heifer.

In the showmanship divisions the winners were: Junior Division – Megan Schroeder, Wisner, Champion; Cody Elliott, Tekamah, Reserve; Intermediate Division – Kali Stratman, West Point Champion; Sutton Bellar, Wisner, Reserve; and Senior Division – Katlyn Ahrens, West Point Champion; and Sydney Williams, Wisner, Reserve.

Complete Show results are:

Breeding Heifers:
Chianana – Katlyn Ahrens, West Point, Purple; Emily Ludwig, Wisner, Blue
Maine Anjou – Katlyn Ahrens, West Point, Purple; Blues - Garrett Ruskamp, Dodge; Bailey Fleischman, Tekamah; Martin Perez, Fremont
Red Angus – Emily Ludwig, Wisner, Purple
Simmental – Dylan Russman, Pender, Purple; Blue - Fernando Andrade-Cardia, Fremont
Commercial – Sutton Bellar, Wisner, 1st Purple; Garrett Ruskamp, Dodge, 2nd Purple; Blues – Dylan Russman, Pender; Megan Schroeder, Wisner; Kylie Kempf, Carroll; Reds – Keeley Russman, Wisner; Rachel Groth, Beemer
Champion Supreme Breeding Heifer – Sutton Bellar, Wisner
Reserve Champion Supreme Breeding Heifer – Katlyn Ahrens, West Point

Junior Showmanship – Megan Schroeder, Wisner, Champion; Cody Elliott, Tekamah, Reserve Champion; Purples – Cassidee Stratman, West Point; Dylan Russman, Pender; Blues - Evie Schlickbernd, West Point; Rachel Groth, Beemer; Kylie Kempf, Carroll

Intermediate Showmanship – Kali Stratman, West Point, Champion; Sutton Bellar, Wisner, Reserve Champion; Purples – Chase Albers, Wisner; Austin Kempf, Carroll; Blues – Megan Groth, Beemer; Martin Perez, Fremont; Dawson French, Wayne

Senior Showmanship – Katlyn Ahrens, West Point, Champion; Sydney Williams, Wisner, Reserve Champion; Purples – Keeley Russman, Wisner; Garrett Ruskamp, Dodge; Callie Albers, Wisner; Fernando Andrade-Cardia, Fremont; Blues – Jarett Chappalear, Fremont; Gabe Bernhagen, Fremont; Devon Rice, Fremont; Emily Ludwig, Wisner; Bailey Fleischman, Tekamah; Ryan Schroeder, Wisner; Nathan Groth, Beemer

Market Heifers –
Class 1 – Amanda Stratman, West Point, 1st Purple; Blues – Keeley Russman, Wisner; Cassidee Stratman, West Point
Class 2 – Austin Kempf, Carroll, 1st Purple; Evie Schlickbernd, West Point, 2nd Purple; Blue - Nathan Groth, Beemer
Grand Champion Market Heifer – Amanda Stratman, West Point
Reserve Grand Champion Market Heifer – Austin Kempf, Carroll

Market Steers:
Division I
Class 1 - Cassidee Stratman, West Point, 1st Purple; Evie Schlickbernd, West Point, 2nd Purple; Blues – Cassidee Stratman, West Point; Jarrett Chappalear, Fremont
Class 2 - Kali Stratman, West Point, 1st Purple; Chase Albers, Wisner, 2nd Purple; Purple – Dawson French, Wayne; Blues – Gabe Bernhagen, Fremont; Devon Rice, Fremont
Class 3 - Sydney Williams, Wisner, 1st Purple; Blues – Ryan Schroeder, Wisner; Megan Groth, Beemer
Market Steer Division I Champion – Sydney Williams, Wisner
Market Steer Division I Reserve Champion – Kali Stratman, West Point

Division II
Class 1 - Callie Albers, Wisner, 1st Purple; Heath Schroder, West Point, 2nd Purple; Purple – Cody Elliott, Tekamah
Class 2 - Ryan Schroeder, Wisner, 1st Purple; Hunter Schroeder, West Point, 2nd Purple; Blue – Cody Elliott, Tekamah
Market Steer Division II Champion – Callie Albers, Wisner
Market Steer Division II Reserve Champion – Heath Schroeder, West Point

Grand Champion Market Steer – Sydney Williams, Wisner
Reserve Grand Champion Market Steer – Kali Stratman, West Point



NDA DIRECTOR IBACH PROMOTES RETURN OF CARGILL’S SPENCER BEEF BRAND TO JAPAN

Agriculture Director Greg Ibach is in Japan this week working with a Nebraska beef processor to reintroduce a premium beef brand popular there a decade ago.

Representatives of Cargill Meat Solutions in Schuyler asked the Nebraska Department of Agriculture to help promote the availability of its Spencer Beef brand at events in Tokyo and Osaka.  Spencer Beef was popular in Japan before U.S. beef exports were halted in December 2003 due to the finding of a case of bovine spongiform encephalopathy in the United States.

Cargill is reintroducing Spencer Beef to the marketplace following Japan’s announcement in January that it would allow into the country imports of U.S. beef products from cattle under 30 months of age.

Ibach said Spencer Beef only will be produced at Cargill’s Schuyler processing plant, and it will be branded as a Nebraska product in the Japanese marketplace.

“We are excited to partner with Cargill as they reintroduce this brand,” Ibach said.  “They recognize that foreign markets place a high value on products that carry the Nebraska name. The events this week are part of NDA’s ongoing effort to brand Nebraska as a premier supplier of high quality agricultural goods to the international marketplace.”

Individuals invited to the seminars and receptions in Tokyo and Osaka include sales staff and key customers.

“Cargill is delighted to reintroduce Spencer Beef to the Japanese market, and we look forward to filling the needs of retail and foodservice customers, as well as consumers who have shown a preference for beef from the United States,” said Eddie Troutman, Cargill vice president for international beef sales.  “We know Japanese consumers enjoy and trust American beef, and our goal is to provide a high quality, nutritious, flavorful and abundant supply exclusively from our Nebraska processing facility.”

Sales of fresh and frozen Nebraska beef to Japan annually averaged $340 million in the five years prior to the stop in exports in 2003.  The Japanese market reopened to beef from cattle 20 months of age or younger in late 2005, and sales have steadily gained since that time. In 2012 Nebraska sold almost $113 million in fresh and frozen beef to Japan.

The Nebraska Beef Council has provided partial funding support for the events in Tokyo and Osaka.



USDA Proposes Simplified Application Process for Renewable Energy Funding;  Changes Would Help Nebraska Applicants

The U.S. Department of Agriculture has proposed a series of changes to make it easier for agricultural producers and rural small businesses to apply for renewable energy and energy efficiency funding.  USDA remains focused on carrying out its mission, despite a time of significant budget uncertainty.  This announcement is one part of the Department’s efforts to strengthen the rural economy.

   REAP is one of USDA’s most popular renewable energy and energy efficiency programs. From the passage of the 2008 Farm Bill through the end of Fiscal Year 2012, REAP funded more than 6,800 renewable energy and energy efficiency projects, feasibility studies, energy audits and renewable energy development assistance projects.

  In 2012, for example, USDA Rural Development provided Benes Service Inc. of Valparaiso, NE, a $19,750 REAP grant to assist with installing a 25KW wind turbine to offset energy costs of the farm implement dealership. The grant was leveraged with $62,250 of funding from the applicant.  As a direct result of the USDA grant and turbine installation, the company has helped secure its fuel costs for the life of the system which will help it remain a viable employer of 20 people in small town rural Nebraska.

   “These changes are intended to help agricultural producers and rural small businesses throughout America,” Agriculture Secretary Tom Vilsack said.  “They will streamline and simplify the application process and give businesses more time to do what they do best:  innovate, create jobs and serve their rural communities.”

   The proposed changes would affect applications for loans and grants through USDA Rural Development’s Rural Energy for America Program (REAP).  They would:
·       Reduce paperwork, especially for projects under $80,000;
·       Implement a more objective and uniform system to score applications;
·       Authorize funding for refurbished and retrofitted renewable energy systems;
·       Reduce certain reporting requirements;
·       Establish a quarterly application period for applicants seeking only guaranteed loans.  This change is intended to make the program more appealing to lenders and to ensure that funds are available year-round.

  USDA is accepting comments on the proposed rule through June 11, 2013. For details on how to submit comments, or for additional information, see Page 22044 of the April 12 Federal Register, http://www.gpo.gov/fdsys/pkg/FR-2013-04-12/pdf/2013-07273.pdf.



Act Now to Decrease Impact of Vitamin A Deficiency in Cattle

Effects of last year’s drought are evident at the Iowa State Veterinary Diagnostic Laboratory in the form of an increasing number of calves with vitamin A deficiency, said Grant Dewell, Iowa State University Extension and Outreach beef veterinarian.

The 2012 drought and subsequent low quality hay supplies for winter feeding mean cows don’t have normal liver stores of vitamin A, and without supplementation cows will potentially be deficient in vitamin A. That can lead to a variety of calf health problems, Dewell said.

“Typically calves have been submitted with a history of being either still born or weak at birth. Some veterinarians have reported blindness, neurologic signs or diarrhea that can also be associated with vitamin A deficiency,” he said. “Severe vitamin A deficiency can result in abnormal bone development in fetal calves. Other calves may be born weak and fail to thrive. Additionally, poor immune function can lead to increased infectious disease incidence.”

Dewell recommended that cows receive supplemental Vitamin A either through oral supplementation or injection of vitamin A. Calves may benefit from an injection of vitamin A at birth and potentially a second dose in two to three weeks, especially if cows have not been supplemented.

For more information, see Dewell’s fact sheet on vitamin A deficiency posted on the Iowa Beef Center website, www.iowabeefcenter.org.



IFBF Brings in National Speakers for Economic Summit

Compared to a year ago, Iowa farmers are facing entirely new challenges from nature as well as global markets, farm policy and soaring land prices. Iowa Farm Bureau Federation (IFBF), the state's largest grassroots farm organization, is once again bringing economic, marketing and nationally-respected financial experts to Iowa to help Iowa's crop and livestock farmers weather these new cycles of change. The second annual IFBF Economic Summit will take place July 22-23 at the Iowa State Center Scheman Building on the Iowa State University campus in Ames, Iowa.

"The timing of this Economic Summit is at such a critical juncture; with regards to policy, weather and many other factors which impact farming sustainability and profitability," said Craig Hill, IFBF president. "While it's true that Iowa's thriving farm sector served to insulate much of our state from the worst of the recession, we have to be realistic. Fifteen percent of farmers are more leveraged today than they were before the Farm Crisis of the 1980s. There are many things in flux: record land prices and cash rent prices for farmland, an uncertain political climate, no new Farm Bill, global market competition and trade challenges. Corn exports are down 50 percent from just three years ago and there are many other signs which point towards an inevitable 'bubble' burst."

"Brazil will pass the U.S. in soybean production for the first time in 2013 and they're emerging as a strong beef exporter. Ukraine just signed a MOU with China to become a soybean supplier, so you can quickly see that our 'first-in--the-nation-leading-food-exporter' status is facing new competition thanks to a drought cycle and uncertain political climate," said Dave Miller, IFBF director of research and commodity services.

"Today, our market strength depends largely on global markets, trade and things we can't predict, such as political uncertainty and climate change," Miller added.

National experts ranging from Daniel Mitchell with the D.C. think tank The CATO Institute, economist Mike Boehlje with Purdue University, American Farm Bureau economist Bob Young and U.S. Secretary of Agriculture Tom Vilsack are among many nationally-recognized monetary, policy, trade and economic experts tapped for the July IFBF Economic Summit.

For a complete listing of the panelists and schedule, click here: www.iowafarmbureau.com.

The price of the two-day summit is $50 for Iowa Farm Bureau members and $150 for non-members. Information about the summit, lodging, online registration forms or to join IFBF can be found at www.iowafarmbureau.com.



Former USDA Official to Speak At South Dakota Farm Bill Conservation Forum on April 29

Sioux Falls – South Dakota’s conservation and agricultural leaders will join together here on April 29 to discuss the need to tie federal farm payments to conservation practices that protect the state’s water, soils and wildlife habitat.

Keynote speaker for the free public forum will be former U.S. Department of Agriculture Undersecretary Bruce Knight, a South Dakota native and third-generation farmer-rancher. He will present the case for conservation compliance in federal crop insurance programs.

Knight served as undersecretary of marketing and regulatory programs for the USDA from 2006-2009. He is a nationally recognized leader in conservation, agriculture and the environment and founder and principal of Strategic Conservation Solutions, a specialized consulting firm. 

Sponsored by the Izaak Walton League of America, the April 29 forum will begin with a 5:30 p.m. reception and the keynote address will begin at 7 p.m. The event will be at the Sioux Falls Chapter of the Izaak Walton League, located at 5000 North Oakview Place, Sioux Falls.

Following Knight’s keynote address, there will be a panel discussion with Knight, Dr. Carol Johnston from South Dakota State University, Julie Sibbing from the National Wildlife Federation, and Mike Traxinger from South Dakota Farmers Union.

Other participating organizations include the South Dakota Association of Conservation Districts, Theodore Roosevelt Conservation Partnership, and Ducks Unlimited.

“With action on the federal farm bill in Washington DC moving forward, it is time to engage South Dakota farmers, conservationists and regulators in a discussion of conservation compliance and how to enact effective conservation policy,” said Bill Wenzel, agriculture program director for the Izaak Walton League of America.
Conservation compliance for federal crop insurance is one way the IWLA is exploring to increase conservation and save federal tax dollars that will protect wetlands, wildlife habitat and sensitive soils.

“Under the compliance provision in federal farm law, farmers who accept taxpayers' money would agree to provide basic stewardship of soil, water and wetlands,” Wenzel said. “This requires no additional federal dollars; in fact, it can result in budgetary savings, cleaner water and improved wildlife habit.”

“Without the link to conservation compliance, wetlands will be lost at an unacceptable rate. However, we have the ability to slow these losses by restoring the link between federal crop insurance subsidy benefits and conservation compliance, as well as establishing provisions to protect native grasslands. Conservation compliance has been shown to have saved an estimated 295 tons of soil per hear, and protects an estimated 1.5 to 3.3 million acres of vulnerable wetlands from being drained. Re-establishing the link between conservation compliance and crop insurance premium subsidies would save approximately $55 million in federal spending over a ten year period. In this era of shrinking budgets, this is a common sense approach to conservation,” Wenzel said.

For more information about the Izaak Walton League’s position on conservation review the IWLA’s online Farm Bill Report at www.iwla.org/farmbill.

The April 29 South Dakota Farm Bill Forum is free and open to the public.  To attend, please RSVP by April 26 by contacting Gwen Steel at gsteel@iwla.org or (651) 649-1446.



IRM Calculator App Takes Valuable Tool into the Fields

The National Corn Growers Association understands that many farmers must change planting plans to accommodate for the changing circumstances around them. To make updating refuge planting plans easier, NCGA now offers the Insect Resistance Management calculator in a handy mobile application.

NCGA Trade Policy and Biotechnology Action Team Chair Jim Zimmermann, a farmer from Rosendale, Wisc., is a strong advocate of the responsible use of biotechnology.  He says, "The IRM Refuge calculator is a tool that allows growers to develop a resistance management plan for corn rootworm and corn borer traited products they use on their farm," he explained. "By selecting the traits they plan to use, farmers can determine the refuge amount that is required with the proper consideration and distance."

As a farmer, Zimmerman is familiar with the wide variety of refuge requirements and how broadly they can vary from product to product. Yet, while acting as a good steward of biotechnology does take effort, he notes that it benefits every farmer to do so.

"There are a lot of different product offerings with different refuge requirements," said Zimmerman. "It is important because proper refuge compliance is what we can do to prevent resistance and maintain trait durability. It is about good stewardship, just like it is with any other resource we manage."

Zimmerman uses the IRM calculator on his own farm, and he explains that the IRM calculator app for smartphones and tablets provides a practical way to change plans without leaving the field.

"What I like about the IRM calculator smartphone app is that it makes it easy," he explained. "Farmers know that plans change for a number of reasons, mostly due to weather. The smartphone app allows you to account for these changes and adjust on the go."

The IRM calculator app is available for the iPhone through iTunes. The Android app is available through Google Play. To access or download the NCGA calculator, please visit www.irmcalculator.com.

While proper refuge planning can be confusing given the host of differing requirements associated with each variety, farmers have many allies who can act as resources. Generally the first and most important resource, seed dealers and crop consultants will help explain requirements and aide in planning.

Farmers interested in reading information supplied directly by seed companies should access the Insect Resistance Management and Technology User Guide supplied by each company.

In addition to proper refuge planning, NCGA also recommends that growers pay attention to any signs of insect pressure in their fields and acquaint themselves with more advanced integrated pest management solutions. By keeping up-to-date on all options, farmers increase the tools readily available in their arsenal should the need arise.



Fertilizer Prices About Steady... Again!

Fertilizer prices continue about steady for the second week of April 2013, according to retailers tracked by DTN. There has been little movement in retail fertilizer prices for more than five months.

Five of the eight major fertilizers were lower compared to last month but these moves to the low side were fairly small. MAP had average price of $660/ton, potash $588/ton, urea $573/ton, 10-34-0 $611/ton and anhydrous $855/ton.  The remaining three fertilizers were higher compared to the first week of March but again the move higher was negligible. DAP had an average price of $616/ton, UAN28 $402/ton and UAN32 $447/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.62/lb.N, anhydrous $0.52/lb.N, UAN28 $0.72/lb.N and UAN32 $0.70/lb.N.

Only one of the eight major fertilizers is showing a price increase compared to one year earlier. Anhydrous is now 12% higher compared to last year.  Four fertilizers are single digits lower in price compared to April 2012. Both DAP and UAN28 are down 3%, UAN32 is 4% less expensive and MAP is 5% lower compared to last year.  The remaining three fertilizers are now down double digits from a year ago. Potash is now down 11%, urea is 20% less expensive and 10-34-0 is 22% less expensive.



Immigration Bill Could be Unveiled Today

After months of negotiations, a bipartisan group of U.S. senators aims to roll out a comprehensive immigration bill on Tuesday. According to Reuters, several congressional sources claim the eight senators plan to introduce their bill sometime today.

That is the latest they can unveil a measure - one that would put 11 million people living illegally in the United States on a path to citizenship - if Senate Democrats are to stick with plans to hold a Judiciary Committee hearing on the bill on Wednesday.

Prospects for the legislation brightened in the Senate when a deal was struck behind closed doors on wages for foreign farm laborers working in the United States. Senator Dianne Feinstein added that the deal also would place a limit on visas for such workers.

The Democratic senator is not one of the so-called "gang of eight" writing the overall immigration legislation. But with her home state of California being an agriculture powerhouse, Feinstein was a lead negotiator on the farm worker provisions. She refused to provide details of the wage and visa deal.

Aides to the eight senators will work to finish drafting the bill that intends to further tighten security along the southwestern border with Mexico and pave the way for more foreign high-skilled scientists, mathematicians and engineers to work for high-tech firms in the United States.

Additional lower-skilled foreigners, from hotel maids to construction workers, also would be available to U.S. companies hungry for cheap labor, but under tight controls negotiated by unions and business.

Agricultural employers complain that the current H-2A guest worker program sets wages too high compared to pay scales in rural areas and is unwieldy when growers need to recruit enough workers in a timely manner.

Wages can account for one-third of the cost of growing fruits and vegetables. The United Farmer Workers union has warned against unduly low wages that would make it hard for farm workers to support their families and could undercut wages in rural communities, Reuters reports.

The farm worker portion of the bill was seen as the last major bit to be negotiated before senators could introduce their legislation.



Cargill CEO Calls for Commodity Market Transparency

The head of one of the world's largest commodity trading firms has called on his industry to commit to "a sense of shared responsibility" to avoid the enforced regulation such as that experienced by the banking industry.

Gregory Page, chief executive of Cargill, said that commodity trading was experiencing a perception problem in the eyes of the public, many of whom think of trading as inherently bad and associate the word with speculation, hoarding and volatility.

Speaking at the Global Commodities Summit in Lausanne, Switzerland, Page stopped short of calling for regulation, saying: "Better than self-regulation, is the self realization that our long-term best interests - and society's - are served by good behavior and good transparency."

Page said that volatility was a positive for the market, but made a distinction between that and "turbulence," which leads to "outsize price reactions" in consumer goods such as food. These price swings, along with the fallout from speculation seen during the financial crisis, has led to trading becoming discredited as a field, he said.

Asked whether pressure to regulate the industry was coming more strongly from Brussels or Washington, Page said the U.S. administration was more concerned with other things at present, but that the "center of concern" will likely move and remain fluid.

Page's keynote speech also sounded a positive note for U.S. agriculture in the wake of the shale gas boom. He said that "American agriculture will become more competitive" as the cost of producing and transporting food falls with lower energy costs.

Regulation is one of the key issues being discussed at the conference, with debates dedicated to it in the coming days.



Farming Helps to Reduce Federal Income Tax Liabilities

U.S. farm households generally receive income from both farm and off-farm activities, and for many, off-farm income largely determines the household's income tax liability, reports the Economic Research Service.

Since 1980, farm sole proprietors, in the aggregate, have reported negative net farm income for tax purposes, and over the last decade, both the share of farmers reporting losses and the amount of losses reported generally have increased even as farm sector income hits historic highs.

In 2010, the latest year for which complete data are available, U.S. Internal Revenue Service data showed that nearly three out of four farm sole proprietors reported a farm loss, for almost $24 billion in losses.

The remaining farms reported profits totaling $12.3 billion. Since only about 60 percent of those reporting a farm profit owed any Federal income taxes, only about 19 percent of farm sole proprietors paid any Federal income tax on their farm income in 2010.



Argentina New Crop Corn Exports Up

Argentina has already sold around 12 million metric tons of new crop corn in forward export deals for shipment by June, but overall exports will likely be almost unchanged on year, a top industry official said Tuesday.

Argentina is the world's third-largest corn exporter after Brazil and the U.S. It is currently harvesting its new crop, and exports are crucial to meet global demand because of tight supply from the drought-hit U.S.

Export "commitments for almost 12 million tons are done, and shipments have started," Freddy Pranteda, director at Cosur S.A., a major South American brokerage for grains and oilseeds, told Dow Jones Newswires.

Argentina's corn for June shipment is being offered at a 25 cents-a-bushel discount to the July futures contract on the Chicago Board of Trade, he said. Unlike Brazil, where shipments are delayed and there is a waiting period of six weeks at some ports, ships in Argentina are getting loaded in a week or two, he added.

Pranteda, whose forecasts on South American grains are closely followed by market players, said exports in 2013 will be almost unchanged on year at 16.5 million tons.

The London-based International Grains Council forecasts Argentina's corn exports in the year ending June 30, 2013 at 18.5 million tons, up 20% from 2011-12.

From July, Brazil's second crop will also be available for export and the U.S. harvest is due from September, providing more competition. Larger crops will weigh on prices and farmers may hold back their grain, he said. In the past year, Brazil has surpassed Argentina and the U.S. in corn exports due to higher output.

Rising domestic consumption in Argentina, now estimated around 8.5 million tons annually, will also keep a check on exports, he said.

Pranteda said data from various growing regions show Argentina's corn production this year around 25 million tons, up from 21 million tons in 2012. The IGC puts the number at 26 million tons.

Initial forecasts for Argentina's corn output this year were close to 30 million tons, but a dry spell in December and January affected yields, he said. Output would have declined below 23 million tons but for two weeks of rain in February, Pranteda said.



CWT Assists with 4.2 Million Pounds of Cheese and Butter Export Sales

Cooperatives Working Together (CWT) has accepted 28 requests for export assistance from Dairy Farmers of America, Foremost Farms USA, Maryland & Virginia Milk Producers Cooperative Association and United Dairymen of Arizona to sell 1.984 million pounds (900 metric tons) of Cheddar cheese and 2.222 million pounds (1,008 metric tons) of butter to customers in Asia, the Middle East and North Africa. The product will be delivered April through September 2013.

Year-to-date, CWT has assisted member cooperatives in selling 49.090 million pounds of cheese, 49.368 million pounds of butter, 44,092 pounds of anhydrous milk fat and 218,258 pounds of whole milk powder to 30 countries on six continents. These sales are the equivalent of 1.531 billion pounds of milk on a milkfat basis. That is equal to more than 90% of USDA’s projected increase in milk marketings for all of 2013.

Assisting CWT members through the Export Assistance program positively impacts producer milk prices in the short-term by helping to maintain inventories of cheese and butter at desirable levels. In the long-term, CWT’s Export Assistance program helps member cooperatives gain and maintain market share, thus expanding the demand for U.S. dairy products and the farm milk that produces them.

CWT will pay export bonuses to the bidders only when delivery of the product is verified by the submission of the required documentation.



New White Paper Demonstrates Advantages of Dairy Security Act Over Alternative Approach Offering Only Margin Insurance

A new analysis released today by a group of university economists demonstrates that the Dairy Security Act (DSA) – the farm bill proposal advocated by the National Milk Producers Federation (NMPF) – provides the most effective economic safety net for farmers. The DSA provides catastrophic risk insurance, helps enhance farmer revenue, and does so in a way that minimizes government outlays.

That assessment was generated by the Midwest Program on Dairy Markets and Policy, a team of six economists who specialize in farm bill analysis. It includes doctoral student John Newton and Dr. Cameron Thraen of Ohio State University; Dr. Marin Bozic of the University of Minnesota; Drs. Mark Stephenson and Brian Gould of the University of Wisconsin; and Dr. Christopher Wolf of Michigan State University.

“This new report provides independent corroboration of why the DSA is the best choice for saving dairy farmers while protecting taxpayers. Congress needs to heed this report and pass the Dairy Security Act in 2013 as part of the farm bill,” said NMPF President and CEO Jerry Kozak.

In particular, the report “debunks any concerns that the DSA’s market stabilization element will hinder the growth of our industry or detrimentally affect the future of the dairy business. This says those fears are unfounded,” Kozak said. “In fact, we need the DSA in order to give our farmers a future.”

The paper compares the dairy farmer-backed DSA, a voluntary program featuring margin insurance paired with a Dairy Market Stabilization Program, with an alternative approach that offers a smaller-scale, limited margin insurance program alone. The paper addresses four critical questions comparing the DSA to the margin insurance-only proposal offered last year by Reps. Bob Goodlatte and David Scott (G-S), members of the House Agriculture Committee. The paper estimates how the programs would operate in 2013.

The issues addressed in the report include the extent to which the DSA and G-S offer effective catastrophic risk insurance; whether they reduce government costs; and whether they present a long-term obstacle to the growth of farms wishing to expand.

After running a variety of milk price, feed cost, and participation scenarios, the academic report offered several conclusions:
·         The Dairy Security Act does provide effective risk insurance, removing 66.6% of the catastrophic risk a typical farm would face in the future. It noted that the Goodlatte-Scott measure would force farms with growth plans to rely more  on private markets, rather than the farm bill, to effectively protect against catastrophic risks, because the G-S does not provide a means to insure future milk production;
·         The DSA’s market stabilization plan helps reduce the frequency and severity of insurance indemnity payments, generating higher milk prices for farmers and reducing the taxpayer burden. The report notes that the main limitation on government financial liability in the G-S measure is achieved by limiting farmers’ ability to insure their production to 80% of a farm’s production history.
·         The DSA’s market stabilization plan does not present a long-term obstacle to farm growth, even for those operations with a very aggressive farm growth plan.

The Dairy Security Act was approved by both the House and Senate Agriculture Committees during consideration of last year’s farm bill. The full Senate also approved the bill, but the House failed to vote on the farm bill last year, so Congress is now beginning efforts to pass a farm bill this year.