Friday June 28 Ag News - Morning Update

Johanns Writes EPA Inspector General Seeking Investigation

U.S. Senator Mike Johanns (R-Neb.) today wrote the Inspector General of the Environmental Protection Agency (EPA), Arthur Elkins, Jr., requesting further scrutiny of ongoing practices at the agency.

“This EPA has pursued an aggressive agenda that, to many Nebraskans, seems more focused on harming agriculture in America and driving up electricity bills than achieving reasonable environmental goals,” Johanns said. “The recent release of private information, use of secret email accounts with pseudo-names to conceal official business, and potential collaboration with outside groups to generate lawsuits fuel our legitimate concerns. The EPA IG needs to carefully and impartially review these practices to ensure this agency acts transparently and within its legal boundaries.”

Johanns singles out three key areas of concern, including the agency’s multiple releases of personal information to anti-ag groups, conducting official business through unofficial electronic accounts, and a practice known as “sue and settle,” where EPA negotiates settlements behind closed doors.



Lincoln Forum Promotes Humane, Sustainable Agriculture
(from HSUS)
 
At an open agricultural forum Thursday evening at the Cornhusker Hotel in Lincoln, the President and CEO of The Humane Society of the United States, Wayne Pacelle, affirmed his continued support for traditional farmers and ranchers whose practices reflect responsible stewardship of the land and animals. The event was hosted by the Nebraska Agriculture Council of The Humane Society of the United States. 

The events are part of a larger effort in Nebraska to promote humane, sustainable agriculture and raise awareness about alternatives to factory farming. “We are here to celebrate forward-thinking farmers who make animal welfare a priority and appeal to the increasing share of consumers concerned about the values of humane treatment and sustainability,” said Pacelle. “This collaboration holds great potential to create longer-term improvements for all stakeholders.”

Participants gathered at the forum to support local farmers and new programs designed to support higher animal welfare standards.  Forum speakers included Pacelle; John Hansen, president of the Nebraska Farmers Union; Kevin Fulton, a Nebraska cattleman and chair of the Nebraska Agriculture Council; and Ben Gotschall, energy director of Bold Nebraska.

On Friday, Pacelle will receive a tour of certified organic dairy Branched Oak Farm from owner Doug Dittman, member of the Nebraska Agriculture Council.

In addition to supporting humane sustainable agriculture, The HSUS continues to push to eliminate four extreme industrialized agriculture practices: gestation crates for breeding pigs, barren battery cages for egg laying hens, veal crates and the needless tail docking of dairy cows. Within the last 16 months, more than 50 major American food retailers, and the largest eight supermarkets in Canada, have committed to phasing out their purchase of pork from operations that confine breeding sows.

“It’s past time for the majority of Nebraska pig producers to enter into the discussion about a careful and non-disruptive transition away from crates and toward group housing systems,” added Pacelle. “Consumers and food retailers have already made their decision, and now we all need to figure out a way forward that results in good outcomes for all stakeholders.”



NEBRASKA AGRICULTURAL PRICES

Preliminary prices received by farmers for winter wheat for June 2013 averaged $7.00 per bushel, a decrease of 50 cents from the May price according to the USDA, National Agricultural Statistics Service.  The preliminary June corn price, at $7.20 per bushel, increased 21 cents from the previous month.  The preliminary June sorghum price averaged $12.20 per cwt, an increase of 20 cents from May.  The preliminary June soybean price, at $15.00 per bushel, increased 30 cents from last month.  The preliminary June dry edible bean price, at $41.70 per cwt, was up 70 cents from last month.  The June alfalfa hay price, at $224.00 per ton, was down $12.00 from last month. The other hay price, at $163.00 per ton, was down $3.00 from last month.

Iowa Monthly Ag Prices
Prices for corn, soybeans, hay, and milk were expected to increase in Iowa from May to June, while prices for oats, were expected to decrease during the same period.  Corn in Iowa sold for an average price of $7.20 per bushel in mid-June. This was up $0.14 from the May price and up $0.83 from June of last year.  Nationwide, corn prices averaged $7.02 per bushel in mid-June.  The average price for soybeans in Iowa was 15.10 per bushel in mid-June, $0.20 above the May price and $1.20 higher than the price in June 2012. The United States average soybean price in mid-June was the same as Iowa’s.  Iowa oats averaged $4.60 per bushel in mid-June, $0.06 below May’s price but up $0.82 from June of last year. Nationally, mid-June oat prices averaged $4.04 per bushel.  Alfalfa hay  in Iowa sold for an average price of $280.00 per  ton  in mid-June, $5.00 higher  than May but $138.00 above June 2012. The average price for other hay types in Iowa was $180.00 per ton in mid-June, $6.00 above May’s price and $87.00 higher  than in June of last year.



U.S. Farmer-Leaders, USSEC Discuss Minimizing Trade Disruptions to MEA Region

The US Soybean Export Council recently participated in a roundtable discussion in Amman, Jordan. The meeting was followed by a teleconference with ASA Chairman Steve Wellman (farmer from Syracuse, NE); United Soybean Board Director Scott Singlestad; Antoine Sayegh, President and Owner of Middle East and North Africa Poultry magazine; and USSEC Regional Director Mit Goblirsch. Reporters from U.S. agricultural publications were included in the conference call.

The focus of the roundtable was to help the U.S. soy industry understand and recommend opportunities for ways that Eastern Mediterranean markets can minimize U.S. soy trade interruptions during times of political unrest. Prior to the turmoil that began two years ago, the Middle East was a promising market for U.S. soy, but the events known as Arab Spring have disrupted lines of trade amid regional instability. At this meeting, the U.S. soy family listened to their customers to learn about areas in which help is most needed.

According to Goblirsch, much of what was learned at the roundtable dealt with the difficulty of moving product to get it to where it is needed. "Transportation and logistics affect every aspect of soy imports into these areas, including crush, refining, and production of meal and oil," he stated.



FISCHER OPPOSES FINAL IMMIGRATION BILL

U.S. Senator Deb Fischer (R-Neb.) announced Thursday afternoon that she voted against the final immigration reform legislation, S.744, which passed the Senate by a vote of 68-32. Senator Fischer released the following statement:

“I am grateful to the thousands of Nebraskans who made their voices heard through phone calls, letters, and e-mails to me and my offices throughout the past several weeks. Like the majority of Nebraskans, I recognize the current immigration system is broken. Despite my efforts to amend the legislation crafted by a small group of senators, I don’t believe the final legislation adopted by the Senate is the right answer, and I could not support it.

“I had a number of concerns with the final bill. I was especially disappointed in the border security provisions, which I highlighted in detail on the Senate floor. The bill ended up being weaker than previous plans offered in 2006 and 2007 – and weaker than the border security amendment I filed. Without a fully secure border, the United States will repeat the mistakes of the past and there will be no lasting solution.”

Specifically, Senator Fischer is concerned that:
    The legislation fails to include to a biometric check system at all points of entry or exit
        Not only is this weaker than previous proposals in 2006 and 2007, it rolls back a congressional mandate dating back nearly 20 years (found in six different statutes) requiring implementation of a biometric exit system at all land, air, and sea ports.
        Forty percent of illegal immigrants are the result of visa overstays; a biometric system would help to track these individuals unlawfully here in the United States.
         The bipartisan 9/11 Commission noted in 2004 that, “The Department of Homeland Security […] should complete, as quickly as possible, a biometric entry-exit system.”
        A National Security Preparedness Group report added: “As important as it is to know when foreign nationals arrive, it is also important to know when they leave. Full deployment of the biometric exit component of US-VISIT should be a high priority. Such a capability would have assisted law enforcement and intelligence officials in August and September 2001 in conducting a search for two of the 9/11 hijackers that were in the U.S. on expired visas.”
         Since 9/11, at least 36 individuals who overstayed their visas have been convicted of terrorism-related charges.
    Determination of operational control is left to the discretion of the Secretary of Homeland Security.
    There is no congressional approval required to determine if the border is fully secure.
    It fails to require full operational control of the southern border before initiating the legalization process.
    It allocates $46.3 billion in federal funding (with taxpayers directly responsible for $38 billion) without first requiring a strategic plan for the implementation of a border security plan.

It contains a loophole that could allow illegal immigrants who have attained Registered Provisional Immigrant status to be eligible for means-tested taxpayer benefits, such as food stamps and Medicaid. The Congressional Budget Office has indicated this will likely cost hardworking taxpayers nearly $260 billion over the next decade.



Obama on Senate Passage of Immigration Reform

With a strong bipartisan vote, the United States Senate delivered for the American people, bringing us a critical step closer to fixing our broken immigration system once and for all.

I thank Majority Leader Reid, Senator Leahy, Senator Schumer, and every member of the ‘Gang of Eight’ for their leadership, and I commend all Senators who worked across party lines to get this done.

The bipartisan bill that passed today was a compromise.  By definition, nobody got everything they wanted.  Not Democrats.  Not Republicans.  Not me.  But the Senate bill is consistent with the key principles for commonsense reform that I – and many others – have repeatedly laid out.

If enacted, the Senate bill would establish the most aggressive border security plan in our history.  It would offer a pathway to earned citizenship for the 11 million individuals who are in this country illegally – a pathway that includes passing a background check, learning English, paying taxes and a penalty, and then going to the back of the line behind everyone who’s playing by the rules and trying to come here legally.  It would modernize the legal immigration system so that it once again reflects our values as a nation and addresses the urgent needs of our time.  And it would provide a big boost to our recovery, by shrinking our deficits and growing our economy.

The Senate did its job.  It’s now up to the House to do the same.

As this process moves forward, I urge everyone who cares about this issue to keep a watchful eye.  Now is the time when opponents will try their hardest to pull this bipartisan effort apart so they can stop commonsense reform from becoming a reality.  We cannot let that happen.  If you’re among the clear majority of Americans who support reform – from CEOs to labor leaders, law enforcement to clergy – reach out to your Member of Congress.  Tell them to do the right thing.  Tell them to pass commonsense reform so that our businesses and workers are all playing by the same rules and everyone who’s in this country is paying their fair share in taxes.

We have a unique opportunity to fix our broken system in a way that upholds our traditions as a nation of laws and a nation of immigrants.  We just need Congress to finish the job.



Vilsack on Senate Immigration Bill Passage

Agriculture Secretary Tom Vilsack today made the following statement on the Senate passage of the Immigration Bill:  "Today's strong bipartisan vote in the U.S. Senate to fix America's broken immigration system is good news for farmers and ranchers, good news for farm workers, and good news for rural America. The Senate plan would ensure the stable agricultural workforce that U.S. producers need in order to remain competitive with other nations and maintain our abundant, affordable food supply. For millions of farm workers who today live in the shadows, it will provide an appropriate opportunity to earn legal status by contributing to America's agricultural economy. In addition to being a strongly pro-agriculture bill, the Senate plan would grow the U.S. economy, strengthen the Social Security system and reduce our deficit. Following today's strong bipartisan vote by the Senate, the House of Representatives must continue the momentum toward passage of comprehensive immigration reform as soon as possible."



NCBA Statement on the Senate Passage of Comprehensive Immigration Reform Legislation

Today by a 68 to 32 vote, the full U.S. Senate passed their comprehensive Immigration and Border Security bill, S. 744. National Cattlemen’s Beef Association (NCBA) President Scott George, a cattle and dairy producer from Cody, Wyo., issued the following statement:

“Border security and immigration have been one of our top priorities as set by our members in 2013. I am pleased to see that the Senate has continued the conversation on this important issue that affects all Americans, but especially rural Americans and our members who live and ranch along our borders. This action by the Senate is a step in the right direction and we look forward to engaging with members of the House in ensuring the priorities of cattlemen and women are met in final legislation.

“A strong year-round workforce is paramount to the success of the cattle industry. Cattlemen and depend on a legal and stable workforce year round. We recognize that the first step in ensuring the success of our workforce is securing and maintaining our borders. The conversations taking place on the Hill right now are keeping these issues front and center and we truly appreciate those efforts.”



Senate Passes Historic Immigration Reform Bill Containing Dairy Worker Provisions

The Senate Thursday approved a comprehensive immigration reform measure that will help dairy farmers with their current and future workforce needs, and provide the entire agriculture sector with much-needed economic certainty, according to the National Milk Producers Federation.

“We’ve known for years that the status quo employment situation in dairy farming is not sustainable.  Today, the Senate moved decisively past that admission, and voted to change our labor and immigration laws for the better,” said Jerry Kozak, President and Chief Executive Officer of NMPF.  “Rather than tinker with what wasn’t working, this new immigration measure builds something new and much better.”

The immigration reform measure, approved today by a vote of 68-32 strengthens the border security apparatus to discourage the flow of illegal immigrants to the U.S.  From the standpoint of farm employers, it creates an entirely new visa category for their workers, both current employees, and prospective new employers.  This new visa system will be administered through the U.S. Department of Agriculture, making it easier for farmers and ranchers to access and use.  It will also assure a future flow of new workers, so that as the economy evolves and jobs shift between sectors, farmers will have the means to recruit and hire new dairy workers.

“Dairy farmers have been concerned that their current workers might be overlooked by the reform efforts, but the Senate bill addresses that concern, by allowing currently employed, but undocumented, workers to maintain their jobs.  This is a huge benefit, both to workers, and their employers,” Kozak said.

Kozak noted that regardless of the region of the country, many dairy farmers “face ongoing challenges finding a sufficient number of workers to care for and milk their cows. Securing a reliable and competent workforce for our nation’s farms and ranches is essential to ensuring that American consumers continue to enjoy dairy products on their grocery store shelves,” he said.

Kozak stressed that even with today’s history Senate vote, much more work on immigration reform has to be done this year on Capitol Hill.  Negotiations are continuing in the House of Representatives, which is working on a separate bill, and where broad support for a comprehensive immigration reform measure is less certain.

“The key is to demonstrate to a majority of the House that action is needed.  The bill the House will consider is going to be different than this Senate bill, but the critical thing is that a bill addressing the needs of agriculture must be passed by the House.  Inaction is not an option,” Kozak said.

Throughout the immigration reform process, NMPF has worked with other farm worker and farm employer organizations in the Agriculture Workforce Coalition.  To learn more about the AWC, visit www.agworkforcecoalition.com.



House Ag Appropriations Bill Gets a Rule But No Floor Time Yet

The House of Representative’s agriculture appropriations bill was approved by the House Rules Committee on Tuesday but has yet to receive time on the House floor schedule. The bill provides funding for USDA, the Food and Drug Administration (FDA) and the Commodity Futures Trading Commission (CFTC). Ag appropriations bills also contain funding for many trade and research programs that are vital to the wheat industry, including the Market Access Program (MAP), Foreign Market Development (FMD) program, international food aid and ag research programs. President Barack Obama has threatened to veto the bill if it is passed, citing the failure to adequately fund the CFTC to implement Dodd-Frank reforms and food aid language that differs from the Administration’s proposals. The Senate’s ag appropriations bill has been approved by the Appropriations Committee but is also not yet scheduled for floor time.



Grange supports ag funding, SNAP; says splitting Farm Bill may be 'last resort'

The National Grange on Thursday said reports that House Majority Leader Eric Cantor is looking to separate the agriculture and conservation provisions from the Supplemental Nutrition Assistance Program funding in the current Farm Bill could be a positive move in a divisive political climate.  National Grange Legislative Director Grace Boatright said in a statement late Thursday, "As an agriculture-oriented organization, we strongly believe in the need for continued support for America's farmers through a Farm Bill.  We, too, believe in helping those in need of food support through community-level programs and assistance through federal funds such as SNAP. If separating the two components of this massive bill allows the divided Congress to move past partisanship and toward passage of both the Farm Bill and a responsible spending plan for SNAP, the Grange stands behind such a move. This should be done as a last resort to get critical funds approved before it's too late.  America's hardworking farmers and ranchers provide food, fiber and fuel for us each and every day and cannot wait until a more united Congress is able to enact legislation. The security of our food - from the perspective of growers and those who seek assistance as consumers - should not be held hostage."



President Obama Announces More Key Administration Posts

This week, President Obama announced his intent to nominate the following individuals to key Administration posts:
·         Krysta Harden – Deputy Secretary, Department of Agriculture
·         Alejandro Mayorkas – Deputy Secretary, Department of Homeland Security
·         Ron Binz – Commissioner, Federal Energy Regulatory Commission, and upon appointment to be designated Chair
·         Robert Bonnie – Under Secretary for Natural Resources and Environment, Department of Agriculture
·         Ellen Herbst – Chief Financial Officer and Assistant Secretary for Administration, Department of Commerce
·         Katherine M. O’Regan – Assistant Secretary for Policy Development and Research, Department of Housing and Urban Development
·         Captain Susan Rabern, USN, (Ret) – Assistant Secretary of the Navy for Financial Management and Comptroller, Department of Defense
·         Steve A. Linick –  Inspector General, Department of State
·         Patrick Gaspard – Ambassador to the Republic of South Africa, Department of State
·         James Swan – Ambassador to the Democratic Republic of the Congo, Department of State
·         Kirk Wagar – Ambassador to the Republic of Singapore, Department of State
·         Alexa Wesner – Ambassador to the Republic of Austria, Department of State

President Obama said, “I am grateful that these impressive individuals have chosen to dedicate their talents to serving the American people at this important time for our country.  I look forward to working with them in the months and years ahead.”

Here is the background information on those nominated for positions in USDA...

Krysta Harden, Nominee for Deputy Secretary, Department of Agriculture
Krysta Harden is the Chief of Staff at the U.S. Department of Agriculture (USDA), a position she has held since 2011.  Prior to this, Ms. Harden served as Assistant Secretary for Congressional Relations at USDA from 2009 to 2011.  From 2004 to 2009, she served as the Chief Executive Officer of the National Association of Conservation Districts.  Previously, Ms. Harden was the Senior Vice President of Gordley Associates from 1993 to 2004.  She served as Staff Director for the U.S. House Committee on Agriculture, Subcommittee on Peanuts and Tobacco from 1992 to 1993.  From 1981 to 1992, she held a number of roles including Legislative Director, Chief of Staff, and Press Secretary for Congressman Charles Hatcher.  Ms. Harden received her B.A. in Journalism from the University of Georgia.

Robert Bonnie, Nominee for Under Secretary for Natural Resources and Environment, Department of Agriculture
Robert Bonnie is a Senior Policy Advisor at the United States Department of Agriculture, a position he has held since 2009.  Prior to this, he worked for the Environmental Defense Fund where he held a number of roles from 1995 to 2008, including Vice-President of Land Conservation and Wildlife and Managing Director of the Center for Conservation Incentives.  Mr. Bonnie served on the Board of Visitors at the Duke University Nicholas School of the Environment and Earth Sciences.  He was a member of the Board of Directors for the Piedmont Environmental Council and Scenic America.  Mr. Bonnie received a A.B. from Harvard College and an M.F. and M.E.M. from the Duke University Nicholas School of the Environment.



ASA Responds to Questionable Science in Biotech Pig Feed Study

In a letter to the editor of the St. Louis Post-Dispatch on Saturday, American Soybean Association President Danny Murphy responded to a recently released study claiming a link between feed made from biotech soybean meal and stomach inflammation in hogs. The validity of the study’s claims and its methodology have since been questioned widely, as has the objectivity of the scientists and farmers that authored the study.

The study’s main author, Dr. Judy Carman, issued a statement pointing to the study as evidence of the need for further examination of the health impacts of biotechnology, a charge Murphy answered directly in his response. "[T]he further investigation Carman calls for already exists in droves," said Murphy. "Hundreds of existing studies look at the potential health impacts of biotech crops in human and animal applications, but likely much to Carman’s dismay, each says the same thing: Biotech crops are as safe as their conventional counterparts. Given this mountain of preexisting science, it would appear that Carman is less interested in "more investigation" and more interested in investigation that agrees with her anti-biotech viewpoint. That’s not science; it’s cleverly-cloaked advocacy. Advocacy is based in emotion and ideology, while to maintain its integrity, science must be based in real, tangible fact."



Walmart and Pork Make Grilling Season Sizzle

Consumers are unleashing their inner griller this summer, thanks to Walmart’s high-impact pork grilling promotion with the Checkoff.

“No one spreads a value message like Walmart,” said Rob Kirchofer, national retail marketing manager for the Pork Checkoff. “This is the right place for pork to make its move this summer.”

From Walmart’s high-quality fresh pork to its wide assortment of outdoor grilling essentials, the retail giant is inspiring consumers across the country to grill with the best for less. Walmart is highlighting pork chops and ribs from June 3 through July 6 by:
• featuring pork in its national advertising circulars
• broadcasting national radio advertisements
• promoting pork through online advertisements

“Walmart is a great partner because its customers fit our target market,” said Kirchofer, who noted that Walmart shoppers tend to skew higher than average in terms of pork purchases.

Get Your Grill On
To encourage consumers to join the grillerhood this summer, the Walmart campaign is promoting the Checkoff’s Grill Pork Like a SteakSM message. This reflects consumers’ ability to grill their favorite pork cuts just as they would a steak.

“We are focused on letting our customers know that they do not need to have a pantry full of ingredients in order to enjoy pork,” Kirchofer said. “All they need is a little salt, pepper and a grill, and they can let the great flavor and versatility of pork take over from there – just as they would their favorite beef steak.”

Head for the Grills
To keep pork at the forefront, Walmart is hosting a series of live grilling challenges at select Walmart stores leading up to the 2013 ESSENCE Festival this summer in New Orleans. Walmart is searching for the top grillmaster in the South through a series of regional cooking competitions.

Regional winners will compete for the top prize and national bragging rights at the ESSENCE Family Reunion Day Food Experience Stage powered by Walmart, which kicks off the 2013 ESSENCE Festival and will celebrate food, music and culture July 4-7. Through it all, Walmart’s promotions will keep pork top of mind with consumers.

 “As the world’s largest retailer, Walmart gives producers a lot of bang for their Checkoff investment,” Kirchofer said. “Producers appreciate the opportunity to work with Walmart and look forward to partnering again in the future.”



Contracts Solidify Soy Industry Commitment to High Oleic

The soy checkoff has entered into agreements with DuPont Pioneer and Monsanto to help put high oleic soybean varieties into the hands of farmers across the U.S. soy-growing region.

The contracts call for each company, both of which hold high oleic patents, to roll out these varieties to farmers in additional maturity groups more quickly than they had originally planned.

"Usually, you don’t see seed-technology companies entering into agreements like this with their customers," said Jim Stillman, chairman of the United Soybean Board (USB) and a soybean farmer from Emmetsburg, Iowa. "These collaborations show how committed the soybean industry is to developing quality, high-yielding high oleic soybean varieties and to developing the markets for them."

High oleic soybeans deliver an oil with increased functionality for some customers when compared to commodity soybeans. USB first identified this need for improved functionality in soy oil in the late 1990s. Soybean breeders have since researched and identified traits that will improve soy’s functionality for end-users. The soy checkoff has set an aggressive goal of achieving 20-25 million acres planted to high oleic soybeans by 2023. The agreements outline development of high oleic varieties in maturity groups I to V to help reach that goal. Without checkoff support, high oleic expansion would move much more slowly, limiting development to varieties in late maturity group II and early maturity group III.

"Thanks to these agreements, high oleic soybeans will benefit more U.S. soybean farmers and the entire U.S. soy industry more quickly," said Stillman. "This type of innovation will improve the competitiveness of U.S. soy throughout the globe."



Syngenta Now Accepting Nominations for Resistance Fighter™ of the Year  

Syngenta is now accepting nominations for the 2013 Resistance Fighter™ of the Year (RFOY) program. Now in its fifth year, the RFOY program honors advisors who help growers proactively fight herbicide resistance, encourage sustainable weed management practices and support growers’ efforts to leave a strong weed management legacy.

Resistance Fighters are nominated by their peers, and one Northern and one Southern candidate will be honored as 2013 Resistance Fights of the Year. Eligible candidates include accredited farm managers, crop consultants, retailers and county extension agents.

With 14 different resistant weed species now spanning 30 states, the role of these Resistance Fighters is invaluable for sustaining the long-term productivity of America’s farmlands.

Nominations will be accepted through Sept. 13 at www.ResistanceFighteroftheYear.com and nominators may be eligible to win an electronic tablet.




Increasing Sorghum Export Markets Continues as a Priority

One of the top priorities for the U.S. Grains Council this year has been to highlight the value of sorghum as a high performance grain across the globe, with an initial focus on Mexico. While Mexico remains the top customer of U.S. sorghum, continual education on the product is an important part of sustaining the market.

Mexican buyers have traditionally viewed U.S. sorghum as an alternative energy feed used as a cost effective substitute for other feed ingredients. However, through methods like steam flaking, U.S. sorghum will obtain higher performance and thus, be may be able to emerge as a preferred, top quality feed for Mexico.

Council staff and four sorghum sector representatives travelled recently to three key areas of Mexico to promote U.S. sorghum.

The presentations given throughout the country evaluated the U.S. supply of sorghum and possible roadblocks in the upcoming year, as well as provided potential sorghum buyers with accurate market information. There was also an opportunity for potential customers to network with private exporters.

The Council intends to continue working in Mexico to help develop the market for U.S. sorghum as a high performance feed.



2013/14 U.S. Wheat Sales Off to Quick Start
Casey Chumrau, USW Market Analyst

Early U.S. commercial wheat sales in marketing year 2013/14 are off to a fast start on the heels of strong sales momentum in the second half of 2012/13. After a slow start in 2012/13 due to less competitive prices, the sales pace increased as competitor supplies tightened in early 2013. As of June 20, U.S. commercial sales for 2013/14 currently stand at 8.57 million metric tons (MMT), 28 percent ahead of last year.

The fast start is not stopping the U.S. Department of Agriculture (USDA) from projecting that total U.S. exports will fall 4 percent from 2012/13 to 26.5 MMT, 7 percent below the five-year average. As the first major exporter to harvest a new crop, U.S. supplies are in especially high demand when world supply is tight. However, USDA expects every other major wheat producing country to boost wheat supplies this year, which could, depending on the price relationships, slow the pace of U.S. sales.

2013/14 hard red winter (HRW) sales of 2.71 MMT are 13 percent ahead of last year. Strong sales to South America have more than offset a slightly lower purchase pace this year by Nigeria and Mexico. A short Argentine crop is helping lift HRW sales to Brazil, Peru and Chile. Being unable to procure adequate supplies from Argentina, Brazil temporarily lifted its non-Mercosur import duty from April 1 to July 31, 2013. Shipment of HRW significantly increased the last two months of the 2012/13 marketing year. Sales for 2013/14 have already surpassed total U.S. wheat purchases from last year of 510,000 MT and the five-year average of 319,000 MT. AS of June 20, Brazil had purchased 752,000 MT of HRW. Sales to Peru are 175,500 MT, compared to 26,000 MT at this point last year and 476,000 MT total in 2012/13.

With FOB prices running higher than competitor supplies, current pre-harvest hard red spring (HRS) sales of 1.70 MMT are 2 percent behind last year’s sales to date. Sales are lower to four of the top five 2012/13 customers, including a 36 percent decline in Taiwan to 107,000 MT to date. The Philippines is the only one of the top five customers ahead of last year’s pace, up 4 percent to 220,000 MT.

Calendar year 2013 has seen very good soft red winter (SRW) sales. USW maintains constant contact with SRW customers and as its price settled, Egyptian imports soared in the second half of the 2012/13 marketing year. Additionally, China appears to be restocking supplies with large purchases of SRW in 2013/14. As of June 20, China had purchased 1.31 MMT of SRW, compared to just 131,000 MT last year at this time. Sales to Mexico are 31 percent above last year’s pace at 488,000 MT. Mexico was the largest SRW customer the last two years, buying more than 1.0 MMT each year. Overall SRW sales of 3.0 MMT as of June 20 are more than double the sales last year at this time of 1.16 MMT.

As of June 20, white wheat sales were down 17 percent year over year. Most of the 1.06 MMT in sales represented in the June 20 report were completed before the discovery of an unapproved genetically modified wheat trait in volunteer plants in a single Oregon field. Japan and South Korea are the top two white wheat buyers in the world and both countries have temporarily suspended new purchases of U.S. Western White wheat. Japan has not rejected any purchases scheduled to deliver after the incident was reported, yet current 2013/14 sales to Japan are 36 percent below last year at 133,000 MT. Sales to South Korea of 90,000 MT are 60 percent lower than last year. Taiwan bought Western White wheat last week, while white wheat sales to Philippines and China are down slightly compared to last year at this time.

Relatively high durum prices due, in part, to smaller crops, have limited sales the last two years. As of June 20, total durum sales of 102,000 MT are 34 percent lower than last year. Sales to Italy, the top durum customer, are down 31 percent to 20,000 MT. Algeria has not purchased any U.S. durum to date, compared to purchases of 9,000 MT at this time last year and 180,000 MT in 2012/13. Guatemala has already purchased 11,000 MT, compared to a 2012/13 marketing year total of 15,000 MT.



Farmers, Customers Welcome Public Government Response to GM Wheat Investigation
Steve Mercer, USW Vice President of Communications

“USDA has neither found nor been informed of anything that would indicate that this…amounts to more than a single isolated incident in a single field on a single farm. All information collected so far shows no indication of the presence of GE wheat in commerce.”

That is how the U.S. Department of Agriculture’s (USDA) Animal and Plant Health Inspection Service (APHIS) describes the current status of its investigation into the confirmed discovery of an unapproved genetically modified trait in volunteer wheat plants in one field in Oregon. APHIS also restated that there is no food or feed safety risk associated with this trait.

Since APHIS published this information June 14, USDA continues responding to a broad appeal from farmers and overseas customers to share more information about their investigation. USW has received indications that high-level USDA officials have also corresponded directly with government counterparts in Japan, South Korea and other markets. On behalf of the farmers we represent, USW wants to thank USDA for making the potential market impact of this situation a priority.

Last week, farmers in the Pacific Northwest were glad to learn that the Taiwan Flour Millers Association purchased U.S. Western White wheat based on the release of information by USDA and continued assurance by the Grain Inspection, Packers and Stockyards Administration that there is no transgenic wheat in production or for commercial sale in the United States at this time. The APHIS statement of June 14 incorrectly states that Taiwan “has postponed U.S. wheat imports.”

USW also wants to thank its customers for actively participating in the sensitive work with multiple parties to move toward re-opening the Japanese and South Korean markets to new purchases of U.S. western white wheat. USW hopes that the APHIS investigation will reach a quick conclusion and remains hopeful that until that time a mutually acceptable position can be reached soon with our customers and government officials to resume new purchases.



New USDA Regulations on School Snack Foods Good News for Dairy Sector

New U.S. Department of Agriculture rules affecting foods sold in schools will ensure that nutrient–rich dairy products will continue to be offered to the nation’s students in a variety of forms and settings, according to the National Milk Producers Federation.

The USDA Thursday released its "Smart Snacks in Schools" nutrition standards, affecting the calorie, fat, sodium and sugar content of foods that are offered apart from the school lunch line.  These “competitive” foods may be offered in vending machines or other a la carte settings.  The snack regulations are similar to overall nutritional rules applied last year to school lunches and breakfasts by the adoption of the Healthy, Hunger-Free Kids Act of 2010.

“The nutrients in dairy foods are an important answer to the question of how we can improve the diets and health of young people.  The rules released today will ensure that milk, cheese and yogurt are offered beyond the school lunch line in places where they can contribute to healthy eating,” said Jim Mulhern, Chief Operating Officer of NMPF.

Under the new regulations, competitive foods must meet all the rule’s nutrient standards and either have as the first ingredient one of the major food groups, including dairy; or, until June 30, 2016, contain 10 percent of the Daily Value of a nutrient of public health concern (e.g. calcium, potassium, vitamin D or dietary fiber).  Dairy foods are a key source of three of these nutrients of concern: calcium, potassium and vitamin D.

The regulation’s nutrient standards affect the following products:
·       Low-fat and fat-free unflavored milk, and fat-free flavored milk, can be offered at all grade levels, with 8 ounce portions for elementary schools, and 12 ounces in middle and high school grades;
·       Reduced-fat cheeses (including part-skim mozzarella) are exempt from fat standards, but must meet sodium standards of 230mg through June 30, 2016 and then 200 mg after July 1, 2016;
·       Yogurt is subject to a sugar limit (35% by weight) that should facilitate dairy consumption;
·       Entrees, such as pizza, that are offered in the National School Lunch Program are exempt from the standards when offered in the same or smaller portion size and available on the day the entrée is served and the following day;
·       Caloric soft drinks are not allowed, and sports drinks cannot exceed 40 calories (and are only available in high school);

“The goal of the regulations—the first comprehensive rule to cover school foods beyond federally reimbursed lunches and breakfasts—is to improve the health of the nation’s children and increase their consumption of healthy foods,” said Mulhern. “As an important source of nine essential nutrients kids need, milk and dairy foods figure prominently in the new standards. We look forward to working with USDA to implement the standards and to continuing to improve the health of our children.”