Tuesday April 2 Ag News

Grass Tetany
Larry Howard, UNL Extension Educator, Cuming County

Grass tetany, sometimes called grass staggers or hypomagnesaemia, is a metabolic disorder of cattle related to a deficiency of magnesium (Mg).  According to Richard F. Randle, DVM, UNL Extension Beef Cattle Veterinarian, early lactation cows are the most susceptible, with older cows considered more susceptible than those with their first or second calves.  Dr. Randle shares the following information about grass tetany.

Grass tetany usually occurs in the spring and is typically seen in early lactation cows grazing cool-season grasses during cool, cloudy, and rainy weather and often occurs when cool weather is followed by a warm period. Rapidly growing, lush grasses create the greatest problem. Grass tetany has occurred on a wide range of cool-season grass and small grain pastures. The greatest risk for grass tetany is when pasture soils are low in available magnesium, high in available potassium, and high in nitrogen. High rates of nitrogen and potassium fertilizer are sometimes associated with increased tetany problems. Suspect forages should be analyzed. Forages containing less than 0.2 percent magnesium, more than 3 percent potassium, and more than 4 percent nitrogen (25 percent crude protein) are likely candidates to create grass tetany problems.

Dietary imbalances also affect susceptibility to grass tetany. Studies have shown that inadequate salt intake may increase susceptibility to grass tetany. Consumption of salt and magnesium simultaneously may be critical to increasing magnesium absorption. Also, feeding high levels of potassium result in reduced magnesium absorption.

Unfortunately, in many cases of grass tetany, symptoms are not noted and the only evidence is a dead cow. In mild cases, milk yield is decreased, and the animal is nervous. These signs indicate the need for preventive measures. Animals affected by acute grass tetany may suddenly stop grazing, appear uncomfortable, and show unusual signs of alertness, such as staring and keeping their heads and ears in an erect position. Cows may also stagger, have twitching skin (especially on the face, ears, and flanks), and lie down and get up frequently. Once cows get to this point, they are easily excited and any stimulation may lead to startling reactions, such as continuous bellowing or running. A staggered gait pattern typically develops followed by collapse, stiffening of muscles, and violent jerking convulsions with the head pulled back. Animals often lie flat on one side with periodic foreleg paddling, twitching of the eyes and ears, and a chewing motion that produces froth around the mouth. Animals usually die during or after a convulsion unless treatment is given.

To prevent grass tetany, animals should be fed a high Mg supplement or free-choice mineral (containing 8 to 12 percent Mg). Magnesium may be added to a protein supplement, grain mix, silage or liquid supplement. The cow's Mg requirement for maintenance and lactation typically would be from 13 to 15 grams per day, but can be as high as 36 mg in unique situations. Magnesium oxide is the primary source of Mg in mineral supplements and it is unpalatable, which results in low mineral intake. For this reason, something needs to be added to the mineral mix to increase palatability, such as corn, soybean meal, or molasses. Magnesium sulfate is also a good source of Mg and is more palatable. The best recommendation is to feed a more moderate amount of Mg on an ongoing basis (include 2.5 to 3.5 percent Mg) as a preventative.



Corn Growers Sought for On-Farm Research Network

Corn growers can take an active role in an on-farm research project sponsored by University of Nebraska-Lincoln Extension in partnership with the Nebraska Corn Growers Association and the Nebraska Corn Board.

The goal of the Nebraska On-Farm Research Network (NOFRN) is to implement a statewide on-farm research program addressing critical farmer production, profitability and natural resources questions.  The project kicked off in 2012 with 40 on-farm comparisons conducted in 10 counties.

Growers interested in conducting on-farm research are encouraged to work with UNL faculty on one of the following topics related to corn production: irrigation management, nitrogen management or plant populations.

Replicated treatments will be planted and harvested in growers’ fields using their equipment.

Growers wanting to learn more about the Nebraska On-Farm Research Network and how to participate can contact UNL Extension at 402-624-8030 or 402-326-5508 or the Nebraska Corn Growers Association at 888-267-6479 or 402-438-6459.

For more information, visit cropwatch.unl.edu/web/farmresearch.



30+ NE organizations say now is the time for common-sense immigration laws

As Nebraska’s members of Congress get ready to return to Washington, D.C., after the recess, more than 30 Nebraska organizations from a wide range of perspectives will come together Thursday to urge common-sense immigration laws that create a clear and inclusive path to citizenship for aspiring Americans. A bill is expected to be introduced after recess, which ends April 8.  Speakers Thursday will include representatives from the Nebraska Catholic Conference, Nebraska Cattlemen, Nebraska Restaurant Association, Heartland Workers Center, and Latino Center of the Midlands.  The following organizations are part of this effort to call for updated immigration laws that reflect Nebraska’s values of strong families, businesses, and communities (organizations confirmed to date)...

Nebraska Cattlemen
Nebraska State Dairy Association
Center for Rural Affairs
Nebraska Restaurant Association
ACLU - Nebraska
Anti-Defamation League - Plains States Region
Black Men United
Campbell's Nurseries and Garden Centers
Catholic Charities of Omaha
Carpenters Union Local 427
Centro Hispano Comunitario (Columbus)
College of St. Mary
Creighton Center for Service and Justice
El Centro de las Americas (Lincoln)
Heartland Workers Center
Inclusive Communities
Interchurch Ministries of Nebraska
Justice for Our Neighbors - Nebraska
Latino American Commission of Nebraska
Latino Center of the Midlands
League of Women Voters
Malcolm X Memorial Foundation
Multicultural Center of Grand Island
NAACP - Lincoln
National Association of Social Workers - Nebraska Chapter
Nebraska Appleseed
Nebraska Catholic Conference
Nebraska Conference of the United Methodist Church -  Risk Taking & Justice Ministries
Nebraska Retail Federation
Nebraska Urban Indian Health Coalition
Nebraskans for Peace
Office of the Mayor, City of Omaha
Omaha Together One Community
Sisters of Mercy, West Midwest Community



NE Ag-Biz Club Award nomination forms available, due July 15

The Nebraska Agribusiness Club would like to announce that nomination application forms for the Public Service to Agriculture and New Horizon awards are now available.  The Public Service to Agriculture award has been presented annually since 1967.  The award recognizes individuals who have made significant contributions to Nebraska agriculture and Nebraska agribusiness.  The New Horizon Award is an award that recognizes individuals 40 years of age and younger who are upcoming leaders in the agricultural industry.

Nominations for both awards are due by July 15, 2013.  The nomination forms and more information can be found in the links below or by e-mail at nebraskaagribusinessclub@gmail.com.  Click here for Nomination Guidelines... http://nebraskaagribusinessclub.wordpress.com/2012-award-nomination-forms/. 



RFA Welcomes New Member — Husker Ag

The Renewable Fuels Association (RFA) is pleased to announce the addition of Husker Ag to its membership and Board of Directors.

Husker Ag is a farm-owned cooperative with over 600 members located in Plainview, Nebraska.  The plant processes over 25 million bushels of corn into 70 million gallons of ethanol and 450,000 tons of modified wet distillers grains used by local cattle feeders.  Husker Ag employs 50 full-time employees from Plainview and surrounding communities including: Norfolk, Pierce, Randolph, Osmond, Plainview, Creighton, Bloomfield, Brunswick, Elgin, and Tilden.

“We welcome Husker Ag to the association.  Husker Ag joins our Board of Directors at a pivotal time for the industry,” commented Bob Dinneen, RFA’s President and CEO. “As the Renewable Fuel Standard comes under heavy attack and attempts to roll out E15 are blocked at every turn, it is important that the U.S. ethanol industry proudly stands together to maintain its strength and champion its success.  Companies like Husker Ag are making America a better, stronger country each day by creating jobs and producing enough ethanol to significantly reduce our dependence on foreign oil while also helping drivers save money at the fuel pump.  Husker Ag will bring valuable experience and knowledge to our efforts.”

Seth Harder, Husker Ag’s General Manager, marked the occasion by saying, “Politics aside, our industry needs a credible advocate to work with the government and the private sector to help facilitate the long term inclusion of ethanol in America’s transportation fuel portfolio. Husker Ag feels that the Renewable Fuels Association is that advocate.”



UNL Extension Tractor Safety Courses Offered Across Nebraska

University of Nebraska-Lincoln Extension Tractor Safety/Hazardous Occupations Courses will be offered at seven locations in Nebraska during May and June.  Any 14 or 15-year-old teen who plans to work on a farm other than their parents’ should plan to attend.

Federal law prohibits youth under 16 years of age from working on a farm for anyone other than their parents.   Certification through the course grants an exemption to the law allowing 14- and 15-year-olds to drive a tractor and to do field work with mechanized equipment.

Classes consist of two days of instruction plus homework assignments. Classes are from 8 a.m.- 5 p.m. each day. Dates and locations include:
    -- May 23-24, Fairgrounds, Kearney
    -- May 29-30, Haskell Ag Lab, Concord
    -- June 3-4, Farm and Ranch Museum, Gering
    -- June 6-7, Fairgrounds, Valentine
    -- June 10-11, Fairgrounds, Osceola
    -- June 13-14, West Central Research and Extension Center, North Platte
    -- June 17-18, College Park, Grand Island

The first day of class will consist of intensive classroom instruction with hands-on demonstrations, concluding with a written test that must be completed satisfactorily before students may continue driving tests the next day. Classroom instruction will cover the required elements of the National Safe Tractor and Machinery Operation Program. Homework will be assigned to turn in the next day.

The second day will include testing, driving and operating machinery. Students must demonstrate competence in hitching equipment and driving a tractor and trailer through a standardized course as well as hitching PTO and hydraulic systems.

The most common cause of death in agriculture accidents in Nebraska is overturn from tractors and all-terrain-vehicles (ATVs), said Sharry Nielsen, UNL Extension Educator. Tractor and ATV overturn prevention are featured in the class work.

"Instilling an attitude of ‘safety first’ is a primary goal of the course,” Nielsen said. "where youth have the chance to learn respect for agricultural jobs and the tools involved." 

Pre-registration is strongly encouraged at least one week before a location's start date to the Extension Office at the course site. Cost is $60, which includes educational materials, testing, supplies, lunches and breaks. For more information, contact the Extension Office or Sharry Nielsen at (308) 832-0645, snielsen1@unl.edu.
      


USDA's OIG Reviews The Beef Research and Promotion Program

The Office of Inspector General (OIG) determined that the relationships between the Cattlemen’s Beef Promotion and Research Board (beef board) and other industry-related organizations, including the beef board’s primary contractor, the National Cattlemen’s Beef Association (NCBA), complied with legislation. We also determined that the Agricultural Marketing Service (AMS) needs to strengthen its procedures for providing oversight to the beef research and promotion program.

As part of our audit, we determined that assessed funds were collected, distributed, and expended in accordance with legislation. However, we found that AMS had not previously made these determinations itself because AMS had not conducted periodic management reviews of the beef board, and the agency’s procedures for conducting these reviews could be improved. For example, AMS had not identified weaknesses in the beef board’s internal controls over project implementation costs. Sensitivity to these controls is important because the costs are incurred by the national marketing body the beef board is required to use. Without AMS’ independent oversight, it may not be clear to beef producers, importers, and the public that beef checkoff funds are collected, dispersed, and expended in accordance with legislation.

Our audit also addressed concerns and specific allegations that beef checkoff funds may have been misused. We found no evidence to support that the board’s activities in those areas did not comply with legislation, and AMS guidelines and policies. AMS concurred with our two recommendations.

OIG's Objectives
Our objectives were to determine if AMS’ oversight efforts were adequate to ensure beef checkoff assessments were collected, distributed, and expended in accordance with legislation, and to verify that the relationships between the beef board and other beef industry-related organizations were compliant with existing requirements.

Information Reviewed
OIG reviewed AMS’ and thebeef board’s policies and procedures, designed to monitor activities related to the beef checkoff program.  OIG also examined 1,005 invoices that amounted to over $20.5 million in reimbursement payments from the beef checkoff fund.

OIG Recommendations
AMS needs to develop and implement oversight procedures specific to the beef board, perform management reviews of the beef program, and recommend that the beef board improve the transparency of its documents.

Read the complet report here.... http://www.beefboard.org/member-toolkit/files/OIG Audit documents/AMS OIG Beef Checkoff FINAL.pdf

CBB Statement on Office of Inspector General Audit
Weldon Wynn, Cattlemen’s Beef Board Chairman

“We are gratified that the Office of Inspector General (OIG) audit of the Beef Checkoff Program for the years 2008-2010 identified no audit issues and reported full compliance by the Beef Board and its contractors.

“In quoting directly from the report: ‘The relationships between the Cattlemen’s Beef Promotion and Research Board and other industry-related organizations including … the National Cattlemen’s Beef Association, complied with the (Act and Order)…. Funds were collected, distributed and expended in accordance with the legislation.’

“We are proud to receive this validation of the effectiveness of our systems and processes to safeguard producer and importer investments into the Beef Checkoff Program.

"Even with OIG’s confirmation that the Beef Board’s systems of oversight of funds are robust and effective and that its relationships with checkoff contractors are in compliance, the Beef Board maintains a mission toward continual improvement in our responsibility to producers. Since 2010, for example, CBB has operated under an intensified review and verification process, along with expanded and specific guidelines for contractors. In addition, CBB now requires contractors to provide additional information about implementation costs as they prepare funding requests, thus providing decision-makers with a more detailed understanding of project costs before approving them.

“The bottom line: Producers and importers can be assured by the OIG report and the Beef Board’s mission of continual improvement that our checkoff dollars are being invested appropriately and effectively.”



Simplified Beef and Pork Cut Names Approved for Retail Implementation

The National Pork Board and Beef Checkoff Program received unanimous approval from the Industry-Wide Cooperative Meat Identification Standards Committee (ICMISC) to introduce updated Uniform Retail Meat Identification Standards (URMIS) nomenclature for fresh beef and pork for retailers to use on pack. Changes to the beef and pork common names were the culmination of extensive consumer research which showed an opportunity for retailers to build consumer confidence in how to shop for and prepare beef and pork.

The revised nomenclature was previously reviewed by the USDA Food Safety and Inspection Service (FSIS) and American Marketing Service (AMS), and retailers, packers and scale label companies were engaged in the process.  The full list of the revised beef and pork common names are now available for retailers to integrate into their scale label programs on www.MeatTrack.com.

“We are pleased to have industry support to introduce new, simplified fresh meat names that will help consumers better understand the beef and pork cuts they see every day in the meat case,” said Jim Henger, senior executive director of B2B Marketing for the National Cattlemen’s Beef Association, a contractor to the Beef Checkoff Program. “Now that we have the feedback and approval from the ICMISC, retailers and packers can begin to implement the new names and labels to give them a competitive advantage and drive meat department sales.”

“This is a really historic event for the meat industry,” said Patrick Fleming, director of retail marketing for the National Pork Board. “This cross-industry effort to develop new common names was completely consumer-driven, and is something that we all recognize as critical to keeping meat on the center of the plate.”

Retailers can visit www.PorkRetail.org and www.BeefRetail.org for more information on the consumer research that shaped the new program and merchandising opportunities available once implemented.



Fertilizer Prices Await Spring Thaw
Farm-gate fertilizer prices continue their neutral pattern, according to retailers surveyed by DTN during the fourth week of March 2013. This stable trend has been in place now for over five months.  Five of the eight major fertilizers were higher compared to last month, but these moves were fairly minor. Urea had average price of $573 per ton, 10-34-0 $612/ton, anhydrous $861/ton, UAN28 $405/ton and UAN32 $444/ton.  The three remaining fertilizers edged lower compared to the fourth week of February, but again the moves lower were extremely modest. DAP had an average price of $616/ton, MAP $661/ton and potash $589/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 $0.69/lb.N.

Three of the eight major fertilizers are showing a price increase compared to one year earlier. Anhydrous is now 12% higher, UAN32 is 6% more expensive and UAN28 is 5% higher compared to last year.  Two fertilizers are single digits lower in price compared to March 2012. DAP is down 3% while 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 10%, urea is 11% less expensive and 10-34-0 is 23% less expensive.



Nationwide Coalition Urges USDA to Protect Integrity of COOL

A coalition of 229 farm, rural, faith, consumer and environmental organizations from 45 states delivered a letter urging the U.S. Department of Agriculture to protect the integrity of Country of Origin Labeling (COOL) for meat products.

The 2008 Farm Bill included mandatory COOL provisions for beef, pork, poultry, fresh and frozen fruits and vegetables and some nuts, but Canada and Mexico successfully challenged the implemented rules for meat products at the World Trade Organization as a barrier to international trade. The USDA has issued proposed new rules that simplify and clarify COOL to comply with the WTO decision.

“Consumers want more information about the source of their food, not less,” said Chris Waldrop, director of the Food Policy Institute at Consumer Federation of America. “Strengthening the Country of Origin Label provides consumers with more accurate and precise information about the source of beef and pork products they purchase.”

The proposed rules that the USDA issued in early March strengthen the COOL labels by ensuring that all meat from animals born, raised and processed in the United States will bear a “born, raised and slaughtered in the USA” label and eliminating some of the confusing, vague labeling provisions that were highlighted in the WTO ruling.

“U.S. farmers and ranchers take pride in what they produce, and consumers ought to be able to know the origins of their food,” said National Farmers Union President Roger Johnson. “NFU has long supported COOL and urges the USDA to move forward with the new, more accurate, strengthened proposed rule.”

Ben Burkett, president of the National Family Farm Coalition and a farmer from Mississippi, added: “COOL is very important for the farmer members of the Mississippi Association of Cooperatives as we market our products in our state and region. We strongly support the USDA’s revisions on this critical issue.”

Today’s letter demonstrates the broad-based support for sensible country of origin labeling rules. “Consumer and farmer advocates pushed for COOL for more than a decade to overcome the largest food processing and meatpacking companies that wanted to hide the source of the food from consumers,” said Wenonah Hauter, executive director of Food & Water Watch.

Even before COOL went into effect, Canada and Mexico challenged the commonsense rules at the WTO. The international meatpacking industry still wants COOL eliminated from federal law.

“A regulatory fix is a preferred response to the WTO because the U.S. can preserve its sovereignty while simultaneously improving the accuracy of information conveyed to consumers,” said R-CALF USA CEO Bill Bullard.

The letter was submitted to the USDA as part of the regulatory comment period and sent to USDA Secretary Tom Vilsack. The federal comment period closes on April 11, 2013, and the WTO ruling directed USDA to offer new COOL rules by May 23, 2013.

A copy of the coalition letter can be viewed here: http://fwwat.ch/COOLcoalition. 



Identifying Johne's Disease with Accuracy

Detecting the costly, contagious Johne's disease in cattle is now easier, thanks to U.S. Department of Agriculture (USDA) scientists.

Johne's disease, also known as Paratuberculosis, is estimated to cost the U.S. dairy industry more than $220 million each year. It also affects sheep, goats, deer and other animals, causing diarrhea, reduced feed intake, weight loss and sometimes death.

Microbiologist John Bannantine and his colleagues at the Agricultural Research Service (ARS) National Animal Disease Center (NADC) in Ames, Iowa, discovered an antibody that's 100 percent specific in detecting Johne's disease. This is the first time a specific antibody that binds only to Mycobacterium avium subspecies paratuberculosis (MAP), the pathogen that causes the disease, has been discovered. A patent has been awarded to scientists for the antibody, which could greatly benefit the improvement of diagnostic tests that confirm the presence of MAP.

Previous efforts to detect Johne's disease were hindered because all antibodies used to identify MAP strains also reacted to environmental mycobacteria, according to Bannantine, who works in NADC's Infectious Bacterial Diseases Research Unit. Some of those antibodies also reacted to the disease pathogen responsible for bovine tuberculosis (TB) and caused false-positive results.

Other research, conducted by NADC microbiologist Judy Stabel, focused on ensuring that Johne's disease vaccines do not cross-react with tests for bovine TB, a disease problem in states where wild deer infect cattle.

Stabel and her team vaccinated calves with an effective commercial Johne's vaccine to test cross reactivity with TB tests. They took blood samples for a year and then measured immune and serological responses of calves using novel TB tests.

Scientists found no cross reactivity with the TB serology tests, demonstrating that animals could be vaccinated against Johne's disease without interfering with bovine TB testing. Similar results were found with the skin test used to detect TB in cattle.

Read more about this research in the April 2013 issue of Agricultural Research magazine. ARS is USDA's chief intramural scientific research agency, and the research supports the USDA priority of promoting international food security.



CWT Assists with 7.5 Million Pounds of Cheese and Butter Export Sales

Cooperatives Working Together (CWT) has accepted 28 requests for export assistance from Dairy Farmers of America, Northwest Dairy Association (Darigold), Michigan Milk Producers Association, United Dairymen of Arizona and Upstate Niagara Cooperative (O-AT-KA) to sell 5.899 million pounds (2,676 metric tons) of Cheddar cheese and 1.636 million pounds (742 metric tons) of butter to customers in Asia, Europe, the Middle East, North Africa and Oceania. The product will be delivered April through September 2013.

Year-to-date, CWT has assisted member cooperatives in selling 47.055 million pounds of cheese, 46.484 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 1.449 billion pounds of milk on a milkfat basis. That is equal to 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.



WDE Implementing New Cattle Identification System

One of the nation's largest dairy shows is making some changes to its dairy cattle health check-in process. In an effort to strengthen the event biosecurity and in accordance with the new USDA Animal Disease Traceability rule, exhibitors bringing cattle to World Dairy Expo will need to have an accepted defined ID tag in the animal's ear upon entering the grounds. Within this rule change, registration numbers and breed tattoos will no longer be official identification for interstate transport. At the WDE Dairy Cattle Exhibitor Committee meeting last month, it was approved to require all cattle, including those from Wisconsin, to meet the same World Dairy Expo health check-in identification standard.

The following ID tags will be accepted by World Dairy Expo for health check-in starting in 2013...
** A Canadian Cattle Identification Agency (CCIA) Radio Frequency Identification Device (RFID) tag - 15 digit number starting with 124
** A USDA 840 Animal Identification Number (AIN) RFID Tag - 15 digit number starting with 840
** A USDA 840 Animal Identification Number (AIN) Visual Tag - 15 digit number starting with 840
** A manufacturer coded tamper evident RFID tag - 15 digit number starting with 900 or greater

Coordinators say manufacturer coded RFID tags will be discontinued as official ID by USDA starting in 2015.

It is recommended that U.S. exhibitors with cattle that do not have one of the above 15 digit number accepted ID tags visit with an approved 840 AIN tag distributor to secure 840 AIN RFID tags. All breed associations can provide exhibitors with these 840 AIN ID tags.

Dairy cattle exhibitors are encouraged to visit the Dairy Cattle Show page at www.worlddairyexpo.com for complete details and to view a color 2013 WDE Identification Method graphic flyer. Exhibitors may also call the WDE office at 608-224-6455 for further information.

World Dairy Expo will be held October 1-5 at the Alliant Energy Center in Madison.



Mosaic Company Reports Third Quarter Results

The Mosaic Company, Plymouth, Minn., reported third quarter fiscal 2013 net earnings of $345 million, compared to $273 million a year ago. Earnings per diluted share were $0.81 in the quarter compared to $0.64 last year. The current year quarter included a $44 million, or $0.07 per share, negative impact from notable items. Operating earnings during the quarter were $419 million, roughly flat with $414 million a year ago. Mosaic's net sales in the third quarter of fiscal 2013 were $2.24 billion, up from $2.19 billion last year, driven by higher potash and phosphate volumes.

"As we emerge from the traditionally slow third fiscal quarter, we are seeing strong demand and improving sentiment in most of our geographies," said Jim Prokopanko, president and chief executive officer of Mosaic. "Global farm economics remain compelling, with continuing attractive commodity prices and low costs for critical crop inputs. Economic and demographic trends are extremely promising for Mosaic, and the Company's long-term prospects are excellent."

Mosaic's gross margin for the third quarter of fiscal 2013 was $568 million, or 25 percent of net sales, compared to $522 million, or 24 percent of net sales, a year ago. The improvement in gross margin was primarily driven by higher potash volumes and lower phosphate raw material costs. Cash flow provided by operating activities in the third quarter of fiscal 2013 was $371 million compared to $405 million in the prior year. Capital expenditures totaled $398 million in the quarter. Mosaic's total cash and cash equivalents were $3.3 billion and long-term debt was $1.0 billion as of February 28, 2013.

"Following the signing of India and China contracts, which delivered better than expected demand from these two countries, we saw improving potash fundamentals and sentiment around the world," said Prokopanko. "We expect producer inventories to be drawn down in coming months as North American dealers prepare for what is likely to be a very strong application season and Canpotex delivers against these base load contracts."

Net sales in the Potash segment totaled $758 million for the third quarter, up 37 percent compared to $553 million a year ago, driven by significantly higher volumes, partially offset by lower prices. Gross margin was $308 million, or 41 percent of net sales, compared to $270 million, or 49 percent of net sales, a year ago. The year-over-year decline in gross margin rate is primarily driven by lower realized potash prices, an unrealized loss on derivatives, and higher depreciation and increased labor expenses as the Company prepares to bring on new production capacity. Additionally, the year-over-year change in gross margin rate was negatively impacted by approximately four percentage points due to the timing of Canpotex shipments. Operating earnings were $216 million, down eight percent, compared to $234 million in the prior year. The current quarter included a $42 million charge related to the settlement of the potash anti-trust litigation.

The third quarter average MOP selling price, FOB plant, was $385 per tonne, down from $453 per tonne from a year ago. The Potash segment's total sales volumes for the third quarter were 1.8 million tonnes, compared to 1.1 million tonnes a year ago.

Potash production was 2.0 million tonnes, or 78 percent of operational capacity, up from 1.8 million tonnes last year.

"The supply and demand outlook for phosphates remains in balance," Prokopanko said. "While we don't expect India to come back to the market until later this year, recent price strengthening in Tampa exports reinforces our positive outlook. Over the long run, we maintain an optimistic view of phosphates, as evidenced by our recently announced joint venture with Ma'aden."

Net sales in the Phosphates segment were $1.5 billion for the third quarter, down nine percent compared to last year, primarily driven by lower prices of finished product. Gross margin was $266 million, or 18 percent of net sales, compared to $259 million, or 16 percent, for the same period a year ago. The year over year improvement in gross margin rate was driven by lower raw material costs, partially offset by lower finished phosphate product prices. Operating earnings were $197 million, up four percent compared to $190 million last year.

The third quarter average DAP selling price, FOB plant, was $496 per tonne, compared to $536 per tonne a year ago. Phosphates segment total sales volumes were 2.6 million tonnes, flat with last year.

Phosphate rock production in Florida was 3.6 million tonnes in the quarter compared to 2.9 million tonnes last year, reflecting increased production at the South Fort Meade mine.

Mosaic's North American finished phosphate production was 2.1 million tonnes, or 87 percent of operational capacity.

Selling, general and administrative expenses were $90 million for the third quarter, down slightly from $91 million a year ago.