Friday May 10 Ag News.... WASDE next post down...

NEBRASKA CROP PRODUCTION REPORT

Based on May 1 conditions, Nebraska's 2013 winter wheat crop is forecast at 42.9 million bushels, down 20 percent from last year’s crop and the smallest production since 1944, according to the USDA’s National Agricultural Statistics Service, Nebraska Field Office.  Average yield is forecast at 33 bushels per acre, down 8 bushels from last year and the lowest since 2002.

Acreage to be harvested for grain is estimated at 1.3 million acres, unchanged from last year.  This would be 90 percent of the planted acres, below last year’s harvested percent and the smallest percentage since 2004.

May 1 hay stocks of 610 thousand tons are down 43 percent from last year and the lowest stocks since 2001.  



USDA: US Winter Wheat Production Down 10 Percent from 2012

Winter wheat production is forecast at 1.49 billion bushels, down 10 percent from 2012. Area harvested for grain is forecast at 32.7 million acres, down 6 percent from last year. As of May 1, the United States yield is forecast at 45.4 bushels per acre, down 1.8 bushels from the previous year.

Hard Red Winter production, at 768 million bushels, is down 23 percent from a year ago. Soft Red Winter, at 501 million bushels, is up 19 percent from 2012. White Winter, at 217 million bushels, is down 2 percent from a year ago. Of the White Winter production, 11.4 million bushels are Hard White and 205 million bushels are Soft White.



UNL Scientists Experiment with Corn Silage in Finishing Diets

            University of Nebraska-Lincoln scientists are experimenting with the use of corn silage in cattle finishing diets, finding that it can be an economical replacement for corn in feedlot diets containing distillers grains.

            On another front, research is being conducted into feeding distillers grains that have some corn oil removed, so the oil can be used in biofuels.

            Corn silage long was a staple of cattle diets, particularly in times of high corn prices, since it allows feeders to use the entire corn plant, but animal scientist Galen Erickson thinks UNL's current research may be the nation's first that looks into evaluating elevated levels of corn silage in finishing diets containing distillers grains.

            Distillers grains are a byproduct of ethanol production and have become an increasingly important element of cattle feed, particularly in Nebraska, which relies on cattle, corn and ethanol production like no other state.

            "I'm a big fan because I think it fits our state," Erickson said. "As corn becomes more expensive, it's quite economical."

            "We're on a mission to improve the use of corn residue, whether grazed, , baled, or harvested as silage as long as it's done in a sustainable way," the Institute of Agriculture and Natural Resources scientist added.

            "The objective of our experiment was to determine the performance effects, carcass characteristics and economics of feeding elevated levels of corn silage and MDGS (modified distillers grains with solubles) as a partial replacement of corn in finishing diets," Erickson said.

            The research, which partially replaced corn with the more economical corn silage, found that as corn silage increased, there was a slight increase in feed-to-gain ratio and a decrease in dry matter intake and average daily gain. However, ADG and F:G were improved when corn silage was fed with MDGS.

            Scientists also studied the economics of this approach, comparing the impacts at different price levels of corn and cost of silage. They found that under certain conditions, it makes economic sense, and "it especially fits for some of our smaller producers," Erickson said.

            "In general, corn silage in combination with MDGS can be utilized to partially replace corn in finishing diets," the UNL scientists concluded in a summary of their work. "Cattle performance is reduced with increased level of corn silage in finishing diets containing MDGS. However, feeding corn silage with MDGS is better than without MDGS for average daily gain and feed to gain ratio."

            As for the de-oiling research, Erickson said it's yet another way to take better advantage of the synergy in Nebraska's mix of corn, beef and ethanol. Erickson and his colleague Terry Klopfenstein are comparing the effects of feeding condensed distillers solubles, and distillers grains plus solubles, with and without corn oil removed in steer diets.

            Condensed distillers solubles (CDS) are a liquid byproduct and distillers grains plus solubles are a semisolid byproduct, both from ethanol production. CDS are generally added back to distillers grains before feeding, but earlier IANR research found they can be fed separately in cattle diets.

            Ethanol plants can remove some corn oil from the CDS; it can be sold for about 30-35 cents a pound to be developed into biofuels. So, IANR scientists wanted to determine how performance of cattle fed the de-oiled byproduct compares to that of cattle fed regular CDS or regular distillers grains plus solubles.

            Findings so far are surprising. Scientists found that when CDS are fed at a higher percentage of cattle diets, removal of corn oil improves digestion in forage-based diets. In feedlot diets, two experiments have shown either no impact or a slight decrease in value for finishing cattle. However, the impact on performance is much smaller than predicted, or had no impact at all. More work is under way.



NE Pork Chop Scramble

The Nebraska Pork Producers Association is getting ready to hit the links for the 12th Annual Pork Chop Scramble.  This year’s four person, best-ball golf scramble will be hosted at Quarry Oaks Golf Course, near Ashland, NE on Friday, June 28th with a shot gun start at 9:00 am.

They're excited to bring the annual fun, fundraising event to the Quarry Oaks Golf Course --- the most scenic and top rated golf Course in Nebraska!  Throughout the Quarry Oaks Golf Course, golfers are treated to magnificent views of native flowers, abundant wildlife and the scenic Platte River Valley. The diversity of the course includes spectacular elevation changes, water on several holes, and an abandoned quarry area.

Nebraska’s pork producers, allied members, and friends of the pork industry are invited to share in a day filled with golf and BBQ, while raising money for continuing education scholarships for Nebraska’s young, agricultural leaders.

You may submit your sponsorship registration and golf registration by visiting www.nepork.org. 



2013 Iowa Cash Rental Rates Survey Results Available

Rental rates for Iowa farmland have been pushed significantly higher by the favorable corn and soybean prices farmers have enjoyed since 2010. This trend continued in 2013, but the rate of increase slowed considerably.

Results from the most recent survey of farmland rental rates conducted by Iowa State University Extension and Outreach showed that the average estimated cash rent for corn and soybean land in the state for 2013 was $270 per acre, an increase of $18 per acre or 7 percent from last year. This compares to increases of 16 percent in 2011 and 18 percent in 2012. Lower crop yields due to prolonged dry weather and lower price forecasts for the 2013 crop have tempered the optimism about prospective profits.

Average rents were moderately higher in all nine crop reporting districts, with increases ranging from 13 percent in east central Iowa to 4 percent in southwest Iowa.

Overall Average of Typical Cash Rents 2009-2013 Corn and Soybean Acres
                             2009        2010        2011       2012        2013 
District 1 (NW)      187         188          224         267          283
District 2 (NC)       196         191          220         277          294
District 3 (NE)       186         192          223          266          281
District 4 (WC)      196         195          227          279          294
District 5 (C)         197          195          226          275          297
District 6 (EC)       193          196          219          252          284
District 7 (SW)      170          176          213          246          257
District 8 (SC)       146          151          177         193          210
District 9 (SE         173          169          198         217          229

Typical rental rates per bushel of corn yield, soybean yield and CSR point were computed for each county and are available in the full report, Cash Rental Rates for Iowa 2013 Survey.  Typical charges for land growing oats and hay, for grazing pasture and corn stalks, and for renting hunting rights are also included in the report.

The intent of the Iowa State survey is to report typical rents being paid each year, not the highest nor the lowest values heard through informal sources. Rental values were estimated by asking people familiar with land rental markets what they thought were typical rates in their county. The number of responses received this year was 1,703, a 20 percent increase from last year. Of the total responses, 50 percent came from farmers, 27 percent from landowners, 13 percent from professional farm managers, 8 percent from agricultural lenders, and 2 percent from other professionals.

The Cash Rental Rates for Iowa 2013 Survey is available online at http://www.extension.iastate.edu/agdm/wholefarm/pdf/c2-10.pdf.  



Lucas & Peterson Release House Farm Bill That Saves Nearly $40 Billion

House Agriculture Committee Chairman Frank Lucas of Oklahoma and Ranking Member Collin Peterson of Minnesota released a discussion draft of the Federal Agriculture Reform and Risk Management (FARRM) Act of 2013 today. FARRM is a bipartisan bill that cuts spending, reduces the size of government, and makes common-sense reforms to policy. It is the product of a multi-year process that included auditing for effectiveness and efficiency every single policy under the jurisdiction of the House Agriculture Committee.

"I'm pleased to release this bipartisan legislation with my friend and colleague Collin Peterson. It's a responsible and balanced bill that addresses Americans' concerns about federal spending and reforms farm and nutrition policy to improve efficiency and accountability. We will advance our bill in the Committee next week and then begin preparing for full House consideration this summer," said Chairman Frank D. Lucas. 

“The discussion draft the Chairman and I released today sets us on a path to finally completing a five-year farm bill. It closely resembles the bipartisan bill passed by the Agriculture Committee last summer, including a common-sense commodity title that will work for all producers, much-needed reforms to dairy programs and continued support for the sugar program. The bill also builds on the investments the 2008 Farm Bill made to fruits and vegetables, farmers markets and local food systems. While I do believe that there are more responsible ways to reform nutrition programs, the bottom line is that this is the first step in the process and it is past time to pass a five-year farm bill,” said Ranking Member Collin Peterson.

The text of the bill can be found here... http://agriculture.house.gov/sites/republicans.agriculture.house.gov/files/farm%20bill/FARRMBillChairsMark2013.pdf.   Highlights include:
-    FARRM saves nearly $40 billion in mandatory funds, including the immediate sequestration of $6 billion.
-    FARRM repeals or consolidates more than 100 programs.
-    FARRM eliminates direct payments, which farmers received regardless of market conditions.
-    FARRM streamlines and reforms commodity policy saving nearly $14 billion while also giving producers a choice in how best to manage risk.
-    FARRM includes the first reforms to the Supplemental Nutrition Assistance Program (SNAP) since the Welfare Reform Act of 1996 saving more than $20 billion.
-    FARRM consolidates 23 conservation programs into 13, improving program delivery to producers and saving more than $6 billion.
-    FARRM builds on previous investments to fruit and vegetable production, farmers markets, and local food systems.
-    FARRM includes several regulatory relief measures to help mitigate burdens farmers, ranchers, and rural communities face.

A summary of the legislation can be found here... http://agriculture.house.gov/sites/republicans.agriculture.house.gov/files/farm%20bill/2013_FARRMSummary.pdf.   The House Agriculture Committee will consider the legislation during a business meeting scheduled for Wednesday, May 15 at 10 am ET.



Checkoff Study Shows Biodiesel Production Benefits Poultry and Livestock Farmers

Ever heard the myth about biodiesel increasing the price of animal feed? Well, it’s really not true.

The federal Renewable Fuel Standard calls for 1.28 billion gallons of biodiesel use in 2013, a 28 percent increase from the previous year. This requirement bodes well for U.S. soybean farmers whose soy oil remains the primary feedstock for U.S. biodiesel manufacturing. But it’s also good news for U.S. poultry and livestock farmers, who will benefit from every gallon of biodiesel produced, according to the Economic Impacts of Biodiesel Production, a soy-checkoff-funded study. Here are two ways animal farmers gain from biodiesel production:

1. Lower relative meal prices
As more soy oil is processed for biodiesel production, more soy meal is available for livestock feed.

"Demand for biodiesel creates demand for soy oil, which, in turn, lowers the cost of soy meal and the price of rations for our poultry and livestock farmers," says Lewis Bainbridge, USB secretary and a soybean farmer from Ethan, S.D.

The study found biodiesel’s demand for soy oil has lowered feed prices by as much as $48 per ton.

2. Increased animal carcass value
In 2011, biodiesel producers utilized 1.29 billion pounds of animal fats, which contributed to nearly 30 percent of the total production. Growth in biodiesel production has led to increased animal carcass value and higher value per head harvested for poultry and livestock farmers. According to U.S. Department of Agriculture, increased demand for animal fats has generated an additional $16.79 on beef value per head.

"All soybean farmers should ask for and use biodiesel," says Bainbridge. "It supports animal farmers, it decreases our dependence on foreign oil and it’s homegrown and renewable – we can make more with every new crop."



FUELS Act Passes Senate

The National Cattlemen’s Beef Association (NCBA) today hailed the passage of the Farmers Undertake Environmental Land Stewardship (FUELS) Act (S. 496), which was passed by unanimous consent by the Senate as an amendment to the Water Resources Development Act (WRDA), which will be considered by the Senate next week. The bipartisan legislation, introduced by Sens. Inhofe (R-Okla.) and Pryor (D-Ark.) revises the Spill Prevention, Control and Countermeasure (SPCC) program enforced by the Environmental Protection Agency (EPA). SPCC regulations call for agricultural operations to develop an SPCC plan if the farm has an above ground oil storage capacity greater than 1,320 gallons or a buried oil storage capacity of 42,000 gallons.

Under the FUELS Act, the burden of the SPCC regulation is eased by raising exemption and self - certified levels for on - farm fuel storage. The legislation exempts farms with a storage capacity of 6,000 gallons or less from having to develop an SPCC plan. The legislation also allows more operations to self-certify by raising the self-certify level to up to 20,000 gallons of fuels storage. Operations with greater than 20,000 gallons will be required to have a Professional Engineer (P.E.) certified spill plan.

“While NCBA would have liked an exemption level of 10,000 gallons like the original language called for, ultimately the Senate-passed versionof the FUELS Act will save many farmers and ranchers from expensive spill plans,” said NCBA Deputy Environmental Counsel Ashley McDonald. “NCBA will continue to work with the House to get the legislation passed in that chamber.”

McDonald added that the FUELS Act also excludes from calculation of aggregate above ground fuel storage all tanks that have a capacity of 1,000 gallons or less and all tanks holding animal feed ingredients approved for livestock feed by the Food & Drug Administration, a provision very important to cattle producers.



HSUS/UEP Agreement Kept Out of Senate Farm Bill

After announcing last week that it planned to include language in the draft farm bill legislation that would codify an agreement between the Humane Society of the United States (HSUS) and the United Egg Producers (UEP) to seek federally mandated production practices for the egg industry, the Senate Agriculture Committee has decided to not include the proposal in the farm bill which is set for markup on May 14. The National Cattlemen’s Beef Association (NCBA), which had stated it would oppose the farm bill should the HSUS/UEP agreement be included in the legislation, reached out to its membership and cattle producers across the country to make them aware of the proposal.

NCBA Vice President of Government Affairs Colin Woodall said that cattlemen and women made their voices heard loud and clear that they, not the federal government, are the ones who know how to best raise their animals.

“NCBA is pleased that the Senate Agriculture Committee decided to not include the HSUS/UEP legislation in the farm bill,” said Woodall. “This proposal would have been devastating to all of agriculture. Allowing the federal government to mandate on -farm production practices and basically telling farmers and ranchers how to do their jobs federal mandate telling farmers and ranchers how to dotheir jobs is unacceptable.”

House Agriculture CommitteeChairman Frank Lucas (R-Okla.) has said that his shop will do its mark-up on May 15. The HSUS/UEP proposal could be debated as an amendment to the House Agriculture Committee's farm bill.

Woodall added that NCBA sees the removal of the language from the farm bill as a short-term victory, but there is the possibility of other Senators bringing the legislation up as an amendment either during the markup next week or when the bill goes to the floor.

“We do expect this issue to still come up. This is not the end of it, and this is still very much a real threat to all of us in livestock production,” he said. “If we allow this agreement to move forward and be passed into law, it will be the first time that Congress has ever dictated a production practice for animal agriculture. Congress has never told us how to lay that egg or produce that calf. This would change the dynamic of that drastically.”



ASA Voices Support for Creation of Trade Post at USDA

In a letter to House and Senate Agriculture Committee leadership this week, The American Soybean Association and multiple fellow agricultural groups in support of the creation of an Under Secretary for Trade and Foreign Agricultural Affairs at the U.S. Department of Agriculture (USDA). Citing the importance of trade to the agriculture industry, the groups pointed to areas in which USDA could modernize its approach to agricultural trade issues.

"An Under Secretary for Trade and Foreign Agricultural Affairs will provide a singular focus on trade and foster more effective coordination of transparent, rules-based trade policies in other USDA agencies," wrote the groups. "Such a position will bring unified high level representation to key trade negotiations with senior, foreign officials and within the Executive Branch. It will also allow future administrations to recruit an Under Secretary who has extensive experience in international trade negotiation and policy issues. Furthermore, the creation of this Under Secretary position would help streamline management, create greater efficiencies and enhance emphasis in the Office of the Under Secretary responsible for key domestic programs."



AMI Releases Pork Plant Video Tour with Temple Grandin

The American Meat Institute released a video tour of a pork slaughter plant hosted by leading animal welfare expert Temple Grandin, Ph.D., professor of animal science at Colorado State University. The video is available on the Institute's dedicated animal welfare Website.

Also released with the video was a print companion brochure that may be downloaded from AnimalHandling.org. Single copies also are available upon request from the AMI. The pork plant video tour and brochure augment the beef plant video tour, also hosted by Grandin, which was released in August 2012. Since its release, the beef plant video has been viewed nearly 50,000 times on line and in countless classrooms and other settings.

The latest pork video tour starts on the farm in a finishing barn, depicts pig loading on trailers, unloading at the plant, stunning of pigs to make them insensible to pain, which is required by law, the bleeding process, carcass chilling and fabrication of carcasses into cuts that consumers eat. The video details the widespread use of the AMI animal welfare audit, developed by Grandin for the industry in 1997, and now a global standard.

Grandin selected the two plants that are featured in the video as representative of typical beef and pork slaughter plants. She was on-site for the taping and narrated the videos in her own words.

"I'm really pleased the American Meat Institute is working on putting these videos out because I think we need to show people what's done in the industry when it's just done right in a typical large plant," Grandin says in the introduction to the video. The brochure also includes a series of commonly asked questions about animal welfare with answers provided by Dr. Grandin.

To view the videos or download the brochures, visit www.AnimalHandling.org.



Delayed Planting in Northeast China Constrains 2013 Corn Area Growth

As is occurring in the United States, unseasonably cold and wet weather is causing farmers to delay planting as much as two weeks in Northeast China, China's largest corn production region. In the northernmost province of Heilongjiang, only a small proportion of land is planted and further delays are expected to cause farmers to switch out of corn and plant soybeans according to China's JCI Intelligence and Yumi.com, two agricultural market reporting firms. However, JCI reports that corn acreage is expanding in Inner Mongolia, and this partly offsets the reduced acreage in Heilongjiang. Delayed planting may also affect yields as farmers turn to shorter-season and lower-yielding varieties, and make the region more vulnerable to an early frost.

The possible reduction of corn sown area in Northeast China may be mitigated by expanded corn sown area in North China.

"Peanut area expanded last year and this reduced corn sown area expansion on the North China Plain. However, peanut prices are currently 20 percent below last year, which could provide more opportunity for corn area to expand in that region this year," said Dr. Bryan Lohmar, U.S. Grains Council's director in China.

Soybeans also receive some price support. While corn prices are roughly at or just below the levels during last year's Northeast planting season, soybean prices are 10-15 percent higher than last year. Higher prices, coupled with lower-yielding, short-season corn varieties and higher corn production costs, also make expected soybean returns vis-à-vis expected corn returns look better than in than past years in the northern parts of the Northeast production region.

Heilongjiang Province has seen corn area expand significantly in the past few years as high corn prices have caused more and more farmers to switch out of soybeans and into corn.

Statistics from China's National Grain and Oilseed Information Center show corn area in Heilongjiang rose more than 1 million hectares (2.47 million acres) from 2009 to 2012, comprising more than 26 percent of the 3.8 million hectare (9.4 million acre) expansion in corn sown area over that period in China. Heilongjiang is also China's biggest corn producing province, with 14.6 percent of China's 2012 corn production.

The four Northeast provinces (Heilongjiang, Jilin, Liaoning, and Inner Mongolia) together produced 42.9 percent of China's corn in 2012. The wet weather in the Northeast is good for soil moisture but is raising corn planting costs as farmers reduce machine planting and instead plant by hand to be sure to get corn planted on time.

The five North China Plain Provinces (Shandong, Henan, Hebei, Anhui, and Jiangsu) together produced 29.3 percent of China's corn in 2012. Most corn planting on the North China Plain occurs in July, after harvesting a winter wheat crop in the region.



Responding to Challenges of U.S. Sheep & Lamb Industry

USDA is taking a multi-faceted approach to supporting the American sheep and lamb industry, working with researchers and market analysts to identify strategies and goals.

The U.S. sheep and lamb industry has been shrinking for decades as the numbers of sheep and producers have declined since World War II. Consolidation of the sheep packing industry, higher feed and energy costs, continuous loses to predation, and lower consumption, coupled with competition from imports of lamb cuts, have taken their toll on U.S. producers. In response to industry needs, USDA's Agricultural Marketing Service (AMS) has been working with the American Lamb Board (ALB) and the American Sheep Industry Association (ASI) on initiatives aimed at ensuring the long-term viability of the industry.

The ALB recently initiated a study to identify the challenges, propose solutions, and develop strategies to strengthen the industry's competitive advantage. By working with a marketing firm and using data and services offered by USDA, ALB hopes this study's findings will help return the industry to profitability. AMS is ready to assist ALB as they lay the groundwork and identify goals and benchmarks.

Another way AMS is assisting the industry is in identifying opportunities to improve Livestock Mandatory Reporting (LMR) for lamb. LMR was established to collect and publish price and volume information to encourage competition in the marketplace. However, given the consolidation of the industry, it has become difficult to publish lamb market information on a consistent basis due to the LMR confidentiality requirements. Last fall, ASI commissioned the Livestock Marketing Information Center (LMIC) to conduct a study of the LMR program, and over the course of 5 months, met with AMS to learn more about how USDA administers the lamb reporting program.

The final report proposed improvement recommendations to lamb reporting. Some of the recommendations included lowering the reporting thresholds for packers and importers, evaluating the confidentiality policy for LMR, and eliminating categories and reports that do not have utility.AMS has reviewed the report and is engaged with ASI to determine the best solutions for the recommendations. While some of the recommendations will require regulatory changes, many of the proposals can be addressed easily. In fact, AMS has already eliminated the western regional lamb reports, changed the National daily lamb report to a weekly report, modified the reported weight categories, and removed unused purchase type categories.

AMS is working with ASI on other projects, such as determining ways in which slaughter lambs are bought to ensure that the LMR purchase types are still relevant. AMS is also working to develop strategies to more accurately define the lamb maturity window for the grade standards and will work with FSIS on a more agreeable term for "yearling mutton" such as "yearling lamb." AMS and ASI are cooperating on the potential development of a lamb tenderness standard, and the potential development of a non-hormone treated lamb export certification protocol with the European Union.

The ALB and ASI recently received USDA approval to explore lamb instrument grading, through funding received from the National Sheep Industry Improvement Center. The project will be a two phased approach to finalizing USDA's standardization of the concept and evaluating the benefits and return on the investment to garner industry acceptance.

The USDA is committed to working with our partners in the industry to not only meet these challenges but to succeed in creating an industry that provides quality products to consumers and increased producer returns here at home.



Land O'Lakes, Inc. Reports First Quarter Financial Results

Land O’Lakes, Inc. today announced first quarter financial results, reporting quarterly net sales of $4.2 billion and net earnings of $72 million. Sales were up 8 percent from the same period last year. Company officials described the first quarter performance as “solid and in line with expectations” noting that gross profit for the first quarter increased by 6 percent versus the prior year, while net earnings were down 16 percent due mainly to higher spending on advertising and promotion of new products across the businesses.

“Land O'Lakes has begun 2013 with solid sales growth and strong operating performance in our business units,” said Chris Policinski, president and CEO of Land O'Lakes. “Our Crop Inputs business, which is operated under Winfield Solutions LLC, had a record year in 2012 and continued to deliver strong earnings in the first quarter of 2013, slightly below prior year because of weather-related timing of spring planting,” he added.

Land O'Lakes retail dairy business had an impressive first quarter, primarily due to strong earnings in its flagship branded butter products. Innovative offerings continued to be added to Dairy Foods such as the new Sauté Express® Sauté Starter. New acquisitions in Dairy Foods, such as the Kozy Shack line of premium refrigerated desserts, have also begun to produce significant earnings. Total Dairy Foods gross profit increased by 56 percent versus the prior year, which was offset by higher spending on advertising and promotion.

“Our Feed business, operated through Purina Animal Nutrition LLC, showed improved operating profit in 2013 as well,” Policinski added. “Our Layers egg business was challenged by high feed costs and low commodity egg prices, generating results similar to the prior year,” he added.
 
“After reporting record sales and earnings in 2012, Land O'Lakes is building momentum to achieve even stronger earnings performance and accelerated growth,” Policinski said. “In 2013 we have increased spending on advertising and promotion of new products which will generate ongoing benefits. Agribusiness and food production are among the greatest growth industries of our era and we are well-positioned to capture this opportunity with strong brands, leading market positions and innovative growth strategies,” he added.

Long term debt was essentially unchanged at the end of the quarter, at $1.1 billion.  Short term debt levels were seasonally higher at March 30, at approximately $705 million, up from $170 million as of December 31, 2012.  The increase was due to seasonal working capital requirements.

Land O'Lakes Ranked 194 On Fortune 500
Land O’Lakes moved up 16 places on the Fortune 500 list this week to number 194. This is the eighth consecutive year Land O’Lakes has moved up in the rankings.  Last year, Fortune ranked Land O’Lakes 210; in 2005, the company ranked 279. Land O’Lakes was one of 19 Minnesota companies on the Fortune 500 list this year.  In 2012, Land O’Lakes reported record sales of $14.1 billion and record net earnings of $241 million. Three business segments achieved record sales. The company returned $113 million to members in 2012, the fourth consecutive year in which member returns exceeded $100 million.



More Delays Ahead for Monsanto, Dow

The U.S. Department of Agriculture will conduct environmental assessments of new corn, soybean and cotton seeds genetically engineered to withstand herbicides, further delaying the possible launch of products from Monsanto Co. (MON) and Dow Chemical Co. (DOW).

The new crops are the first to be genetically modified to withstand applications of 2,4-D and dicamba herbicides. Dow has developed 2,4-D-tolerant corn, which it originally was hoping to sell to farmers for the 2013 growing season, as well as 2,4-D-tolerant soybeans. Monsanto has developed dicamba-tolerant soybeans and cotton.

The USDA announced Friday it would prepare environmental impact statements for the products, saying they were required before final approval because the products "may significantly affect the quality of the human environment." The USDA has already solicited public comments on the controversial crops.

The new crops are part of an industry response to the development of weeds that have developed resistance to glyphosate, a ubiquitous herbicide that Monsanto sells with seeds that are genetically modified to withstand the chemical.

Critics, including environmentalists, have warned that the new seeds would lead to significant increases in the use of 2,4-D and dicamba, which they say are more harmful environmentally than glyphosate. Some fruit and vegetable growers have worried that the new herbicides would drift onto their fields, damaging crops.

Dow announced in January it wouldn't be able to sell its 2,4-D corn to U.S. farmers as planned for 2013. Dow spokeswoman Kenda Resler-Friend said the USDA's Friday announcement means the corn won't be available until at least 2015.

She said the new seeds are eagerly anticipated by farmers, who are having an increasingly hard time fighting weeds because of glyphosate resistance.

"Those weed problems are getting worse every single year," she said.

Monsanto called the USDA's decision "unexpected," and said in a statement it would use the extra time to broaden development of the dicamba-resistant seeds. Previously Monsanto had said the seeds wouldn't be commercially available until 2014 at the earliest.

The USDA said it received 8,200 comments on Dow's 2,4-D-tolerant seeds, including petitions signed by more than 400,000 people.