Wednesday June 12 USDA WASDE, NE Crop Production Report, & Ag News

NEBRASKA CROP PRODUCTION REPORT

Based on June 1 conditions, Nebraska's 2013 winter wheat crop is forecast at 45.5 million bushels, up 6 percent from the May 1 forecast but down  15 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 35 bushels per acre, up 2 bushels from last month but down 6 bushels from last year and the lowest since 2002.

Acreage to be harvested for grain is estimated at 1.3 million acres, unchanged from May 1 and 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.

USDA: US wheat production could be higher than last estimate
Winter wheat production is forecast at 1.51 billion bushels, up 2 percent from the May 1 forecast but down 8 percent from 2012. Based on June 1 conditions, the United States yield is forecast at 46.1 bushels per acre, up 0.7 bushel from last month but down 1.1 bushels from last year.

Hard Red Winter production, at 781 million bushels, is up 2 percent from last month. Soft Red Winter, at 509 million bushels, is up 2 percent from May. White Winter, at 219 million bushels, is up 1 percent from last month. Of the White Winter production, 11.5 million bushels are Hard White and 207 million bushels are Soft White.


USDA World Agricultural Supply and Demand Estimates - June 12, 2013

NOTE:  Because planting is still underway in the Northern Hemisphere and remains several months away in the Southern Hemisphere, these projections are highly tentative.  National Agricultural Statistics Service (NASS) forecasts are used for U.S. winter wheat area, yield, and production.  For other U.S. crops, methods used to project acreage and yield are noted on each table.
 
COARSE GRAINS: 
The outlook for 2013/14 U.S. feed grain supplies is lowered this month as delayed plantings reduce yield prospects for corn.  Projected corn production is lowered 135 million bushels to 14.0 billion with the average yield projected at 156.5 bushels per acre, down 1.5 bushels from last month.  Despite rapid planting progress during mid-May across the Corn Belt, rains and cool temperatures since have delayed the completion of planting in parts of the western Corn Belt and raised the likelihood that seasonally warmer temperatures and drier conditions in late July will adversely affect pollination and kernel set in a larger share of this year’s crop.

With reduced production prospects, domestic corn usage is projected 70 million bushels lower for 2013/14.  Projected feed and residual disappearance is lowered 125 million bushels with the smaller crop, higher expected prices, and increased availability of distillers’ grains.  Corn used in ethanol production is raised 50 million bushels in line with an increase this month for the 2012/13 marketing year.  Other food and industrial uses are also projected higher, up 5 million bushels from last month.  Corn ending stocks for 2013/14 are projected 55 million bushels lower.  At the projected 1.9 billion bushels, ending stocks are expected to be 2.5 times their 2012/13 level.  The season-average farm price range for corn is raised 10 cents per bushel on each end to $4.40 to $5.20 per bushel.  Increases are also projected for the sorghum, barley, and oats farm price ranges this month.  

Changes for 2012/13 include higher corn and oats imports, higher corn food, seed, and industrial use, and reduced corn exports.  Corn imports are raised 25 million bushels based on the strong pace of imports to date and expectations that feeders in some locations will continue to supplement domestic supplies as old-crop corn becomes tighter during the summer months.  Oats imports are raised 3 million bushels reflecting shipments to date.  Corn used in ethanol production is raised 50 million bushels for 2012/13 based, in part, on higher-than-expected May ethanol production as indicated by weekly data reported by the Energy Information Administration.  Favorable margins for ethanol producers and high prices for Renewable Identification Numbers (RINS) are also expected to moderate any slowdown in production through the end of the marketing year.  Other food and industrial use is projected up 15 million bushels with increases projected for corn use in cereals and beverage and industrial alcohol.  Corn exports are projected 50 million bushels lower based on the continued lackluster pace of shipments and sales.  Projected corn ending stocks for 2012/13 are raised 10 million bushels.
 
Global coarse grain supplies for 2013/14 are projected 4.3 million tons lower mostly on the reduction expected in U.S. corn output.  Global coarse grain beginning stocks are also lowered as a reduction in 2012/13 China corn production is only partly offset by an increase in 2012/13 Brazil corn production this month.  China corn production is lowered 2.4 million tons based on the latest government revisions for the 2012/13 crop.  Brazil corn production is raised 1.0 million tons for 2012/13 based on higher reported area for the safrina crop which will be harvested in the coming weeks.

Global 2013/14 coarse grain trade is raised slightly this month.  Corn imports are raise for Indonesia and corn exports are raised for India.  Global corn consumption is down 1.7 million tons mostly based on changes to domestic use in the United States.  Global corn ending stocks for 2013/14 are projected 2.8 million tons lower with reductions for China and the United States partly offset by an increase for Brazil carried through from the larger 2012/13 crop.  At the projected 151.8 million tons, 2013/14 world corn stocks would be up 27.5 million tons from 2012/13 and the largest in 12 years.

OILSEEDS: 
U.S. soybean supply and use projections for 2013/14 are unchanged from last month.  Changes for 2012/13 include increased soybean imports and crush, and reduced exports.  Soybean imports are raised 5 million bushels to 25 million based on relatively strong imports through April and expected additional gains through the end of the marketing year.  Soybean exports for 2012/13 are reduced 20 million bushels to 1.33 billion bushels reflecting exceptionally low shipments and sales in May and competition from Brazil.  Although soybean exports are reduced, U.S. soybean meal exports are increased this month reflecting stronger-than-expected shipments this spring as importers have been slow to shift to South American supplies.  As a result of increased soybean meal exports, the U.S. soybean crush is projected at 1.66 billion bushels, up 25 million.  Soybean ending stocks for 2012/13 are projected at 125 million bushels, unchanged from last month.

The 2013/14 season-average price for soybeans is forecast at $9.75 to $11.75 per bushel, up 25 cents on both ends of the range.  The higher forecast reflects improved forward pricing opportunities and higher corn prices.  Soybean meal prices for 2013/14 are forecast at $290 to $330 per short ton, up 10 dollars on both ends.  The soybean oil price forecast is unchanged at 47 to 51 cents per pound.

Global oilseed production for 2013/14 is projected at 490.8 million tons, down 0.5 million from last month.  EU-27 rapeseed production is reduced 0.3 million tons to 19.7 million on lower area and yield, mainly for France.  Other changes include reduced soybean production for Ukraine, reduced sunflowerseed production for the EU-27, and increased sunflowerseed production for Russia.  Brazil’s 2012/13 soybean production is reduced 1.5 million tons to 82 million reflecting the impact of dry conditions in the northeast.
 
WHEAT: 
Projected U.S. wheat supplies for 2013/14 are raised this month with an increase in beginning stocks and higher forecast winter wheat production.  Beginning stocks are higher with a 15-million-bushel reduction in 2012/13 exports as May shipments fell below expectations.  Projected production for 2013/14 is up 23 million bushels as higher yields boost forecast production of Hard Red Winter wheat in the Southern and Central Plains and Soft Red Winter wheat across the South and Midwest.  Exports are projected 50 million bushels higher for 2013/14 with strong early season sales and a reduced outlook for foreign production this month.  Ending stocks for 2013/14 are projected down 11 million bushels.  Projected stocks of 659 million bushels remain at a 5-year low.  The projected range for the 2013/14 season-average farm price is raised 10 cents on both ends to $6.25 to $7.55 per bushel.  This is down from the record $7.80 per bushel expected for 2012/13.

Global wheat supplies for 2013/14 are lowered 5.6 million tons reflecting lower foreign production.  World production is projected at 695.9 million tons, down 5.2 million from last month with reductions for Ukraine, Russia, and EU-27.  Persistent dry weather in key growing areas of southeastern Ukraine and adjoining areas of southern Russia reduces production prospects 2.5 million tons and 2.0 million tons, respectively.  EU-27 production is lowered 1.3 million tons with small reductions in a number of member countries.  

Global wheat consumption for 2013/14 is reduced slightly with reductions in feed and residual use for EU-27, Russia, and Ukraine more than offsetting higher expected food use for India, Iran, and Egypt.  Global wheat trade is raised with imports increased 1.0 million tons for Iran.  Partly offsetting is a 0.5-million-ton reduction in imports for EU-27 with lower exportable supplies in Ukraine.  Ukraine and Russia exports are lowered 1.5 million tons and 1.0 million tons, respectively.  Export increases of 1.5 million tons for EU-27 and 0.5 million tons for Canada, combine with the U.S. increase this month to raise global exports 0.8 million tons.  World ending stocks for 2013/14 are projected at 181.3 million tons, down 5.1 million from last month, and just above the level projected for 2012/13.
 
LIVESTOCK, POULTRY, AND DAIRY: 
The forecast for total meat production in 2013 is raised from last month as higher beef and broiler production more than offsets lower pork production.  Beef production is raised from last month as poor forage conditions have resulted in relatively large placements of cattle in feedlots in the first part of 2013 and cow slaughter remains high.  Broiler slaughter is raised slightly for the third quarter, reflecting hatchery data.  Pork production in second quarter is lowered based on the pace of hog slaughter and slightly lower expected carcass weights.  USDA’s Quarterly Hogs and Pigs report will be released on June 28 and provide an indication of producer farrowing intentions for the remainder of the year.  Turkey production is unchanged from last month.  Egg production is raised, reflecting slightly higher table egg production in the third quarter.  Red meat, poultry, and egg production forecasts for 2014 are unchanged from last month.

Forecasts for 2013 beef exports are reduced from last month as trade to a number of markets has been relatively weak.  Broiler exports are raised based on export strength to date.  Pork exports are unchanged.  Forecasts for 2014 are unchanged from last month. 

Cattle price forecasts for 2013 are lowered from last month, reflecting lower-than-expected prices to date.  Broiler prices are raised, reflecting strong domestic and export demand.  Hog prices are raised as tighter supplies have pushed prices higher.  Price forecasts for 2014 are unchanged.  

The milk production forecast for 2013 is unchanged.  For 2014, the production forecast is lowered as relatively weak milk-to-feed ratios in the third and fourth quarter of 2013 are expected to slow production growth in the first half of 2014.  Fat basis exports for 2013 are lowered based on slow butter exports through April.  Skim-solid exports are higher based on expectations of continued robust nonfat dry milk (NDM) exports.  Fat and skim basis exports for 2014 are unchanged.  Fat basis imports are raised for 2013 and 2014.  

Forecasts for 2013 cheese and butter prices are lowered from last month, reflecting greater stocks and weaker-than-expected prices to date.  The NDM price is raised on tightening supplies and expectations of continued robust export demand.  The price range for whey is narrowed.  As a result of the lower cheese price forecast, the Class III price is reduced.  The Class IV price is down as lower butter prices more than offset higher NDM.  For 2014, the butter price forecast is lowered as stocks remain high, but other product prices are unchanged.  The Class III price forecast is unchanged, but the Class IV price is lowered.  The all milk price is forecast at $19.60 to $20.00 per cwt for 2013 and $18.95 to $19.95 for 2014.




Cream of the Crop Dairy Show is Saturday in West Point

The 14th annual Cream of the Crop dairy cattle show will be held on Saturday, June 15th at the Cuming County fairgrounds in West Point. Past shows have had mostly youth exhibitors but the show is open to all ages. A champion and reserve champion heifer and a champion and reserve champion cow will be selected in each of 7 breeds. These breeds are Ayrshire, Brown Swiss, Guernsey, Holstein, Jersey, Milking Shorthorn and Crossbred. Registration starts at 8:00am and the show will begin at 10:30am with 4 divisions of showmanship. This will be followed with a judging contest and the cattle show. Cattle from each breed will be shown in 13 different age classes.  The official judge will be Tim Covington from Covington Jersey Farm at Leon, Iowa. The Nebraska State Dairy Princess, Jessica Yoesel, will hand out awards.There will be a lunch stand. The show is sponsored by the Nebraska Junior Dairy Association.



Center for Rural Affairs Board of Directors Calls for Comprehensive Immigration Reform

Last weekend the Board of Directors of the Center for Rural Affairs unanimously called for comprehensive federal legislation to fix the broken immigration system and strengthen our communities.  Board President and Fullerton Nebraska Farmer Jim Knopik said, “As the United States Senate takes up their immigration bill, we felt that it was important to emphasize that reforming our broken immigration system is especially important to rural America.”

The Center’s policy position calls for:
-    An opportunity for undocumented immigrants who fulfill the requirements for obtaining citizenship to remain in the US as citizens.
-    A more robust process for legal immigration that shortens the timeline and waiting list for legal immigration and creates clear avenues for future immigrants.
-    Practical and appropriate limits as determined by an independent commission on the number of manually skilled workers allowed to immigrate legally each year.
-    More effective enforcement of existing wage and labor laws and of the prohibition on hiring undocumented immigrants and falsely classifying them as independent contractors.

According to Knopik, the United States admits only 10,000 manually skilled workers on work visas each year, about one for every 100 immigrants who enter without a visa and find work. "The door to legal, documented immigration used by earlier generations is today largely closed for all but the wealthy and well-educated," Knopik said.

Kathie Starkweather, director of rural community development work, went on to explain that the Center for Rural Affairs further recognizes the need to fully engage immigrants in rural communities and American democracy through support for minority business development, voter registration, leadership development and other means. "Such approaches bring people together and build community," Starkweather said.



DFA LEADER LENDS PERSPECTIVE ON IMMIGRATION REFORM

Recognizing the dairy industry’s critical need for immigration reform, Jackie Klippenstein represented Dairy Farmers of America at the National Council of Farmer Cooperative’s (NCFC) immigration reform panel during their Washington Conference this week.

The panel, Our Nation’s Immigration System Needs Work: Co-op Perspectives on the Need for Reform, gave attendees an understanding of what immigration reform means for a diverse range of agricultural producers across the country. Joining Klippenstein on the panel were Rich Hudgins of California Canning Peach Association and Bob Smith of Farm Credit East. The session was moderated by Chuck Conner, president and chief executive officer of NCFC.

The NCFC panel was especially timely, as the Senate voted on cloture this week, signaling their commitment to moving forward S. 744, the Border Security, Economic Opportunity and Immigration Modernization Act of 2013.

As a panelist, Klippenstein spoke in support of the Senate’s comprehensive immigration reform proposal, which includes compromise language for the agriculture sector. S. 744 includes agricultural provisions that address current undocumented workers while creating two new types of farm worker visas — one for seasonal workers, and one that meets the needs of dairy producers for year-round help.

Klippenstein has served as vice president of industry and legislative affairs since joining DFA during 2008. In that capacity, she focuses on federal legislative and regulatory issues and plays an active role in member and Farm Services. She also serves on the boards of National Milk Producers Federation, the Dairy Grazing Apprenticeship program and the American Royal. Prior to joining DFA, Klippenstein spent nearly 15 years in Washington, D.C., as a lobbyist for agricultural interests and as a congressional aide, having worked for members of both the U.S. House and Senate.



NMPF Commends Senate for Proceeding with Immigration Reform Bill
Jerry Kozak, President and CEO, NMPF

“We commend the Senate for deciding today to limit debate on its immigration reform measure, which demonstrates that they want to move forward and get a bill passed by July 4th.  America’s farmers need action on the immigration issue.  Thanks to the vote on cloture Tuesday, the chances are much better now that it will get resolved.

National Milk Producers Federation has made fixing the broken immigration system one of its highest priorities during the past decade.  Previous attempts at creating a comprehensive solution have failed.  And although we are still weeks away from passing immigration reform in 2013, today’s vote sends a strong signals that a critical mass of the Senate also believes that immigration reform is key national priority.

The Senate bill contains an entirely new visa program for dairy farm workers, one that NMPF has helped to shape.  This new approach is better for employers, better for employees, better for law enforcement, better for the economy….it’s better for America.”



HILAND DAIRY INTRODUCES LACTOSE-FREE MILKS

The dairy known for its Splash of Fresh Flavor is debuting five varieties of lactose-free milks in June.  “We are excited to offer a line of lactose free milk to our customers,” said Gary Aggus, president/general manager of Hiland Dairy. “ We realize there are people in our market area who are lactose intolerant and cannot digest dairy products, and we had many customer requests for a lactose-free milk from Hiland Dairy.”

The five varieties of lactose free milk that consumers will find on their grocers shelves beginning this month include: Hiland Dairy Lactose Free 2% Reduced Fat Milk that offers 37% less fat than whole milk; Hiland Lactose Free Fat Free Milk that is an excellent source both calcium and protein; Hiland Lactose Free Fat Free Extra Milk that has the rich, creamy taste of 2% without the saturated fat; Hiland Lactose Free Vitamin D Milk which offers wholesome goodness and creamy taste and Hiland Lactose Free Vanilla Almond Fat Free Milk that combines a smooth almond taste with a hint of vanilla. All are available in half-gallon sizes with convenient twist cap pour spouts.



World Pork Expo sets an upbeat tone and a Junior National show record

Celebrating its 25th anniversary, the 2013 World Pork Expo attracted nearly 20,000 pork producers and leaders from 39 countries to Des Moines, June 5-7. Presented by the National Pork Producers Council (NPPC), Expo featured the world’s largest pork-specific trade show with more than 400 commercial exhibits from throughout the world. Expo’s three days were filled with seminars offering the latest management insights, free pork barbecue and opportunities for attendees to interact with fellow producers. In what has become a major youth event, the World Pork Expo Junior National set another record for participation in its shows and other competitions.

“Overall this year, producers were upbeat, the exhibitors were busy, and we had great weather and good crowds,” says Randy Spronk, NPPC president and pork producer from Edgerton, Minn. “World Pork Expo is a great place to share ideas and talk business with vendors and fellow pork producers. It’s a tremendous producer event.”

Busy days for trade show exhibitors
At 310,000 square feet, this year’s World Pork Expo trade show featured more exhibit space, taking advantage of a new display area in the historic Agriculture Building. During Expo’s three days, attendees viewed the products, services and technologies of more than 400 exhibitors from the United States and other countries. Expo exhibitors noted the producers’ positive attitudes, as well as their search for new technologies and products to fit into their long-term plans.

“Producers attending Expo had a very positive outlook for the future, even though pork production economics are still a challenge,” says Graydon Bell, U.S. sales manager, Nedap Livestock Management North America, a Dutch technology and electronic animal-identification company. “Producers today do an excellent job of marketing and working with smaller margins.”

He adds that producers were looking for new products and the best options for their future business. “They understand labor, economics, and being good stewards of the animal and the environment. We had good, informed conversations every day of Expo.”

Gary Nelson, a U.S. and Canadian distributor for Rotecna, an equipment company based in Spain, echoes that sentiment.

“Producers were optimistic, and were looking down the road for the best alternatives in cost savings and new innovations,” Nelson says. “There was a lot of interest in new products. At World Pork Expo you get quality producers asking good questions. We had two great days — probably the best in five years.”

A record junior show
From its humble beginnings in 2003 with 120 hogs, the World Pork Expo Junior National now ranks among the premier youth shows in the United States. This year’s edition, hosted by the National Junior Swine Association and Team Purebred, set another record with 1,600 pigs exhibited by 678 juniors from 26 states.

Concluding World Pork Expo was the open show, which involved more than 200 exhibitors and nearly 600 hogs. The top-selling boar, the reserve champion Yorkshire shown by Kari and Kristin Boyum, and Zach and Katie Loppnow, BOLO Showpigs, Lake City, Minn., was purchased by Hi Point Genetics of Chrisman, Ill., for $100,000. A crossbred gilt shown by Cody Wolf, Whitesboro, Texas, was the top gilt, selling to Rockin’ G Swine, Sentinel, Okla., for $17,000.

More 25th-anniversary highlights
The ever-famous Big Grill returned for its 25th consecutive year. Volunteers from the Tama County Pork Producers Association once again manned the Big Grill and served more than 10,000 free pork lunches.

For the second year in a row during Expo, NPPC graciously donated $3,000 in Domino’s Pizza gift cards to the Food Bank of Iowa for distribution to area families in need. Another $1,000 of Domino’s Pizza gift cards were donated to Des Moines’ Youth Emergency Shelter & Services (YSS), which provides assistance to children, youth and families.

Also popular were nearly two dozen business seminars and PORK Academy seminars, offering the latest insights in production management, market outlook and strategic planning. A special session on Wednesday presented a panel of swine veterinarians and diagnostic experts to update producers on the porcine epidemic diarrhea virus (PEDV) that has surfaced in U.S. herds since mid-April. Discussion centered on PEDV symptoms and infection rates, as well as prevention and biosecurity protocols.

Looking ahead to next year, NPPC announced dates for the 2014 World Pork Expo — June 4-6, at the Iowa State Fairgrounds in Des Moines, Iowa.



Integrated Pest Management Publications Go to the Field, and around the World

Iowa farmers and crop advisors are scouting corn and soybean fields with Iowa State University Extension and Outreach field guides in hand. The guides outline integrated pest management information – how to protect crops based on data from specific fields, using both preventative and curative tactics to manage insects, diseases and weeds. They place an emphasis on scouting and thorough record keeping – and they are in high demand.

“Crop scouting is a cornerstone of integrated pest management,” said Daren Mueller, extension plant pathologist with the Iowa State University Integrated Pest Management program. “Scouting entails accurately estimating crop plant health, recognizing growth stage, and identifying crop injury and associated causes – the field guides improve scouting accuracy.”

Iowa State University Extension and Outreach, in conjunction with Iowa Soybean Association, created the first weather-resistant pocket guide, the Soybean Field Guide, with high quality images and descriptions of disease, insect and other disorders so it could easily go to the field. The guide serves as a reference for farmers and crop advisors scouting fields and assists them in accurately diagnosing crop problems.

Requests for integrated pest management publications increase
The Soybean Field Guide was first sold through the ISU Extension online store on Feb. 22, 2008. In five years, that single publication has become part of a growing Integrated Pest Management publication series that now includes five field guides, three compendiums and twelve scouting cards. More than one million copies (1,094,000+) of the publications have been printed – 53 percent (581,000) by Iowa State University and 47 percent (513,000) printed upon request and distributed by outside entities such as agribusiness, academic institutions and commodity groups.

The extension online store has distributed the publications to all 99 Iowa counties, 375 Iowa cities, and 49 U.S. states (Rhode Island is the only state with no publication orders). The popularity of the guides has expanded well beyond Iowa – nearly 28 percent are delivered outside of Iowa and guides have been distributed internationally to 23 countries on five continents. The Soybean Field Guide has been adapted for use in Canada by Canadian soybean experts.

Iowa State IPM team members authoring the publications are Extension faculty, researchers, specialists and other staff. “The publications are the result of the work of more than 25 authors,” Mueller said. “This group of scientists is dedicated to integrated pest management education. We have a broad portfolio of activities and products to support our educational efforts – this series of publications is only one part.”

The team plans to add more publications, including: Alfalfa Field Guide, Corn Field Guide 2nd Edition, Hail and Nutrient Deficiency Scouting Cards, and an update to Corn Diseases.

To learn more about the ISU Extension Integrated Pest Management educational offerings visit www.aep.iastate.edu/feel/; to order field guides visit the Extension online store https://store.extension.iastate.edu/ and click on the Integrated Pest Management publications image.



NCGA Board Elects Chip Bowling as Next Farmer to Help Lead Organization

The National Corn Growers Association's Corn Board has elected Chip Bowling of Maryland to become the organization's first vice president for the next fiscal year, which begins Oct. 1.

"I am honored that my colleagues on the board have placed their trust in my ability and dedication to moving our association's mission forward and creating greater opportunities for corn growers across the country," said Bowling. "At the same time, I realize that farmers face many challenges right now as threats to the Renewable Fuel Standard abound and we continue operating without a new, five-year farm bill. I look forward to working with our grower leadership over the coming years to find innovative, impactful ways to deal with the situations at hand and those which will certainly arise in the future."

A farmer for more than three decades, Bowling is a third-generation farmer who operates a 1,400-acre grain farm growing corn, soybean, wheat, barley and grain sorghum only an hour's drive outside of Washington, D.C.

A graduate of NCGA's first Advanced Leadership Academy class, Bowling currently serves as board liaison to the Ethanol Committee and represents NCGA on the U.S. Environmental Protection Agency Farm, Ranch and Rural Communities Committee. He has also served on NCGA's CornPAC Committee and Mycotoxin Task Force.

"NCGA has always been blessed with the quality of the growers who give of themselves to assume leadership roles, and we strongly believe that Chip will continue this fine tradition," said NCGA President Pam Johnson. "Our Corn Board appreciates the thoughtful nature of the insights he has shared thus far and the energy he brings to our work. As evidenced by his long list of activities and accomplishments, Chip has clearly demonstrate his dedication to farmers and expertise in the field."

On Oct. 1, Johnson, of Iowa, becomes chairwoman and the current first vice president, Martin Barbre of Illinois, becomes NCGA president. In October 2014, Barbre becomes chairman and Bowling becomes president.



Ethanol Supply at 3-year Low

Total ethanol supply in the United States fell back to a three-year low, down 400,000 bbl or 2.6% at 16.0 million bbl during the week-ended June 7, the Energy Information Administration reported today.

Total supply at 16.0 million bbl is down 4.7 million bbl or 22.6% from a year ago. There were no ethanol imports last week.

Ethanol production at U.S. plants dipped 1,000 bpd to 884,000 bpd last week, while down 36,000 from a year earlier, the data showed.

Refiner and blender net inputs of ethanol, a proxy for demand, rose 29,000 bpd to 862,000 bpd, while down 4,000 bbl from a year earlier.

EIA also reported that implied demand for motor gasoline fell 174,000 bpd to 8.648 million bpd for the week-ended June 7, while four-week average gasoline demand at 8.8 million bpd was down 0.4% from the level seen a year ago.

Expressed as a percentage of daily gasoline demand, daily ethanol production was 10.22%.

On the co-products side, ethanol producers were using 13.404 million bushels of corn to produce ethanol and 98,657 metric tons of livestock feed, 87,954 metric tons of which were distillers grains. The rest is comprised of corn gluten feed and corn gluten meal. Additionally, ethanol producers were providing 4.60 million pounds of corn oil daily.



New Analysis: No Direct Correlation Between the Renewable Fuel Standard and Rising Food Prices

Today, ABF Economics released a detailed analysis showing no direct correlation between the Renewable Fuel Standard (RFS) and the overall increase in food prices.

The study specifically examined “the relationship between the RFS and recent changes in consumer food prices. Specifically this includes an examination of the relationship between corn prices and consumer food prices, the factors that affect corn prices, the role of the major industry participants in determining consumer food costs, and the relative importance of components such as agricultural commodities and energy on consumer food prices.”

Bob Dinneen, President and CEO of the Renewable Fuels Association, weighed in, “Today’s ABF Economics analysis provides definitive evidence that ethanol and the RFS are not driving food prices. That canard has been nothing but a distraction propagated by those wanting to continue profiting from government subsidized grain and those seeking to keep us ever dependent on petroleum. This report should end the food vs. fuel debate for good.”

The RFS is a highly effective national energy policy that has revitalized rural communities, created jobs, lowered greenhouse gas emissions, and reduced our carbon footprint. John Urbanchuk, author of the new ABF Economics analysis, found that:
-    Ethanol production and the demand for corn to produce ethanol have increased as a result of the RFS mandates. Corn prices also have increased over this period of time but increased demand to produce renewable fuels consistent with the RFS is only one factor behind the increase in corn prices. These factors included a sharp increase in petroleum prices, rapidly expanding global demand for food and agricultural commodities, commodity market speculation, and an expansive U.S. monetary policy.
-    A careful examination of food price inflation measured by the Consumer Price Index indicates that retail level food prices have increased at a slower rate since the RFS took effect than during the comparable five years before the RFS.
-    The food processing industry accounts for a larger share of consumer food costs than does production agriculture. Moreover, energy prices play a more significant role in costs for food processors than do the prices for any individual agricultural commodity.
-    The RFS has contributed to the production of important co-products of the dry mill corn ethanol industry. Specifically, Distillers dried grains have positively contributed to reducing net feed costs for livestock, dairy, and poultry producers. Higher ethanol output resulting from the RFS has led to increased production of DDGS. Because DDGS has a positive substitution rate for corn and soybean meal, these higher production levels have increased the total availability of feed for livestock and poultry producers by 21 percent compared to feed use of corn alone.
-    The ethanol industry is a major source of captured carbon dioxide, which is used in food processing, refrigeration and packaging to enhance the quality of processed foods and improve profit margins for processors.
-    The RFS has not had an adverse impact on consumers’ ability to afford a safe and healthy food supply. Although food prices have increased modestly faster than overall inflation in the past several years consumers are not spending a greater share of income on food than was the case before the RFS was implemented.
-    The severe recession of 2008-2009 and sluggish recovery in real incomes has played a more significant role than commodity price increases in the decline in red meat and poultry consumption that has taken place since before the RFS was implemented.

The ABF Economics analysis comes on the heels of a recent World Bank study that determined oil prices were the leading cause of increased food prices. The World Bank study states, “most of the price increases are accounted for by crude oil prices (more than 50 percent), followed by stock-to-use ratios and exchange rate movements, which are estimated at about 15 percent each. Crude oil prices mattered most during the recent boom period because they experienced the largest increase.” It goes on to examine the highly scrutinized 2008 World Bank report by Don Mitchell, concluding that Mitchell overestimated the effect of biofuels on food prices.

Dinneen commented, “While the ABF Economics report shows that ethanol and the RFS did not drive food prices, the recent World Bank report makes it plain what did ... OIL! High and highly volatile energy prices have caused pain at the pump and groans at the grocery store. It makes sense, as energy impacts every facet of the food production, transportation, storage and marketing complex. Ethanol and the RFS provide the only rational response to protect our food and fuel dollar.”



Cooperatives Working Together Members Commit to Additional Two-Year Program

The members of Cooperatives Working Together (CWT) today endorsed a larger investment in the farmer-funded self-help program, voting to enhance the membership requirement from 2¢ per hundredweight to 4¢ per hundredweight, effective July 1, 2013, and running through December 31, 2015.

The additional investment will cover the large increase in CWT member requests for export assistance in 2013, driven by increased demand in world dairy markets for U.S. American-type cheeses, butter, whole milk powder, and anhydrous milkfat.

“Because of increased activity in 2013, the members decided to enhance CWT’s revenue base in order to continue to successfully compete in world markets this year, and into the future,” said Jerry Kozak, President and CEO of the National Milk Producers Federation (NMPF), which manages CWT.

“As it starts its 11th the year of operation, CWT remains the best self-help tool for the nation’s dairy producers. Through today’s decision, the members of CWT are recognizing how important CWT remains in help our farmers build access to the fastest-growing markets for their milk, which are overseas,” said Kozak.

Since the start of 2011, the CWT Export Assistance program has helped member cooperatives   sell 257.7 million pounds of American-type cheeses and 111.5 million pounds of butter to 39 countries on six continents.

“With the export market growing at a rate five to eight times faster than the U.S. market, the vote by CWT’s member cooperatives today will ensure the U.S. is a consistent and competitive supplier of dairy products in the world’s growing dairy markets,” said Kozak.



Mulhern Named President & CEO of NMPF Starting in 2014
The National Milk Producers Federation (NMPF) announced today that Chief Operating Officer Jim Mulhern will take over as President & Chief Executive Officer on January 1, 2014.  Mulhern has been appointed by the NMPF Board of Directors to fill the position held by Jerry Kozak since 1997.  Earlier this year, Kozak had informed the Board of his desire to retire on December 31, 2013.

“We are very excited to have such a knowledgeable and capable leader at the head of our team in the coming years.  The importance of experience cannot be underestimated in a complex industry like ours,” said NMPF Chairman Randy Mooney, a dairy producer from Rogersville, MO.

“Jim’s impressive and extensive track record working on dairy issues made him the ideal choice to be the next President and CEO of NMPF.”

Mulhern joined NMPF in January 2013, and since that time has managed the communications, government relations, and membership functions of the organization.  His appointment as COO marked a return to NMPF; he had directed the organization’s government relations program earlier in his career.

A Wisconsin native, Mulhern came to Washington, DC, to work on Capitol Hill in 1983.  Following his service at NMPF in the mid-1980s, he returned to Capitol Hill to serve as Chief of Staff for Wisconsin Sen. Herb Kohl.  Mulhern also worked in senior management positions for Fleishman-Hillard, the Fratelli Group and Watson/Mulhern LLC.  During this period, he maintained a close relationship with the dairy industry and NMPF by working as a consultant on numerous projects.

“I sincerely appreciate the opportunity to lead a membership organization that has meant so much to me throughout my career.  I look forward to building further upon the relationships and successes of the past, but with a clear focus on addressing the challenges to dairy farming’s future,” said Mulhern.

NMPF also announced that after retiring as President & CEO Dec. 31st, Jerry Kozak will continue his involvement with the organization’s Cooperatives Working Together (CWT) program, which provides export assistance to its member cooperatives.  He will oversee CWT’s program and administrative operations and will report directly to Mulhern.    

“We are very pleased that Jerry will be available to help us manage the CWT program in the days ahead,” said Mooney.  “CWT has been a critical factor behind the phenomenal growth in American dairy exports over the past few years, and we appreciate that Jerry’s commitment to its success will continue after this year.”

The National Milk Producers Federation, based in Arlington, VA, develops and carries out policies that advance the well-being of dairy producers and the cooperatives they own. The members of NMPF’s 30 cooperatives produce the majority of the U.S. milk supply, making NMPF the voice of more than 32,000 dairy producers on Capitol Hill and with government agencies. Visit www.nmpf.org for more information.



Tractor & Combine Sales Still Going Strong

The Association of Equipment Manufacturer's monthly "Flash Report" says the sale of all tractors in the U.S. for May were up 22% compared to the same month last year.  For the month, two-wheel drive smaller tractors were up 30% from last year, while 40 & under 100 HP were down 6%. Sales of 2-wheel drive 100+ HP were up 19%, while 4-wheel drive tractors were up .2%.  Combine sales were up 31% for the month.

For the five months in 2013, a total of 83,561 tractors were sold which compares to 74,201 sold throught May, 2012, representing an 13% increase year to date.  Also for Jan-May, two-wheel drive smaller tractors are up 13% over last year, while 40 & under 100 HP are up 5%. Sales of 2-wheel drive 100+ HP are up 27%, while 4-wheel drive tractors are up 15%.  Sales of combines for the first five months totaled 3,664, an increase of 52% over the same period in 2012.



House Speaker Says He Will Vote for Farm Bill

(AP) -- House Speaker John Boehner says he will vote for a wide-ranging farm bill headed to the House floor this month, a major boost for the five year, half-trillion dollar legislation that stalled in the House last year.

The Ohio Republican voted against the last farm bill in 2008 and said Wednesday that he has concerns with this year's version as well. But doing nothing, Boehner said, means "that we get no changes in the farm program, no changes in the nutrition program."

Almost 80 percent of the almost $100 billion-a-year bill's cost goes to food stamps, which have more than doubled in cost since 2008. The farm bill approved by the House Agriculture Committee last month cuts that program by a little more than 3 percent and makes it harder for some people to qualify. The bill also eliminates some farm subsidies, including a $5 billion-a-year support that pays farmers whether they farm or not.

At the same time the bill expands other subsidies, creating a new crop insurance program and boosting support for several individual crops. Overall, the bill saves about $4 billion a year.

Boehner said that whatever his own concerns with the legislation, he wants to see it move to a House-Senate conference.

"I'm going to vote for the farm bill to make sure that the good work of the Agriculture Committee and whatever the floor might do to improve this bill gets to a conference so that we can get the kind of changes that people want in our nutrition programs and in our farm programs," he said.

Boehner said earlier this week that the House will vote on the bill this month and encouraged members of the chamber to offer amendments to make the bill better. Conservatives in have been divided over the food stamp program, which now serves around one in seven Americans. Some feel the committee's cuts don't go far enough to reduce the size of the domestic food aid.



Grazing Improvement Act Passes House Natural Resources Committee

The  House of Representatives Committee on Natural Resources today advanced the Grazing Improvement Act (H.R. 657) on a bipartisan vote of 27-15. The legislation, which seeks to improve the livestock grazing permitting processes on lands managed by the Bureau of Land Management (BLM) and the U.S. Forest Service (USFS), will now go to the full House for consideration.

H.R. 657 was introduced in February by Rep. Raúl Labrador (R-Idaho) as companion legislation to S. 258 in the Senate, also introduced in February by Sen. John Barrasso (R-Wyo.). Public Lands Council (PLC) Executive Director and Director of Federal Lands for National Cattlemen’s Beef Association (NCBA) Dustin Van Liew said the Grazing Improvement Act will contribute greatly to providing a stable business environment to federal lands ranchers who face increasing uncertainty as to the future of their livestock grazing permits.

The legislation proposes to increase the term of grazing permits from 10 to 20 years, so that the burdens of National Environmental Policy Act (NEPA) review of expired permits will be reduced, thereby giving ranchers increased certainty that they may continue grazing and their operations will remain viable. Among other provisions to reduce the NEPA burden, the bill also proposes to codify longstanding appropriations language that would allow grazing to continue under existing terms and conditions while the NEPA backlog is being addressed.

“We greatly appreciate the leadership of Rep. Labrador and Natural Resources Committee Chairman Hastings for their leadership on this important issue,” Van Liew said. “Ranchers can no longer afford the incredible regulatory and litigious environment created by excessive application of NEPA. If we lose ranchers, we lose the stewards of the land, job providers in the West, and a crucial part of American livestock production. Like last year, we look forward to passage through the House this session.”

During the committee’s consideration of the bill, two amendments were offered. An amendment by Labrador, which passed, would exempt range improvements from excessive and unnecessary environmental review and clarify the intent of Congress with regard to who may appeal agency grazing decisions. Van Liew said the amendment will prevent radical environmental groups from abusing the current appeals system, and further reduce the NEPA burden. He said this amendment is especially important at a time when wildfire has ravaged hundreds of miles of fence and many range improvements crucial to the proper care of livestock and the range.

An amendment introduced by Rep. Raúl Grijalva (D-Ariz.), which would have imposed an arbitrary 74 percent increase of the federal lands grazing fee on ranchers, failed. The amendment’s alleged purpose was to “offset the increased cost of administering the livestock grazing program.” However, Van Liew asserted that this fee increase would likely decrease revenue to the government by forcing ranchers out of business. He added that the “increased cost” Grijalva mentions is due to overregulation and predatory litigation by radical anti-grazing groups.

“We are pleased that, once again, the proposal to increase the grazing fee was soundly defeated. The current grazing fee is fair, is based on market criteria and accurately reflects the cost of operating on public lands. The effects of the loss of public lands grazing on both the environment and the local economies in the West would be devastating,” he said. “Altogether, the Grazing Improvement Act is now stronger than ever, and we look forward to seeing this commonsense legislation coming to a vote by the full House.”



Ecuador Trade Team Visit Focuses on U.S. Wheat Competitive Advantages

In an increasingly competitive world wheat market, U.S. Wheat Associates (USW) must be positioned to help U.S. wheat farmers take advantage of any market opportunity. Ecuador presented one such chance after the Canadian Wheat Board (CWB) lost its export monopoly control on August 1, 2012. And, in the past year, USW has turned an ongoing relationship with flour millers in Ecuador into increased sales. This summer, USW will further foster greater demand in Ecuador by bringing a team of experienced Ecuadoran wheat buyers to the United States June 16 to 22 to learn more about the advantages of U.S. wheat and the export supply system.

“Despite heavy competition from the Canadian Wheat Board monopoly, USW managed to gain a decent share of the market,” said USW Regional Vice President Alvaro de la Fuente, who will lead the trade mission. “Now, we are competing equally with Canada on the basis of quality and value and U.S. wheat commercial sales are up more than 50 percent year over year.”

Ecuador has imported more than 540,000 metric tons of wheat per year on average since marketing year 2007/08. Canadian spring wheat made up the largest share of the total, but U.S. soft red winter (SRW), hard red winter (HRW) and soft white (SW) wheat commercial sales for 2012/13 (June to May) reached more than 7.6 million bushels (205,800 metric tons), compared to a five year average of 5.1 million bushels (139,000 metric tons).

One of the goals of this trade mission is to demonstrate the value of HRW or blends of HRW and U.S. hard red spring (HRS) with SW or SRW compared to Canadian spring wheat.

“With minor adjustments, bakers can lower their costs with flour blends milled from U.S. wheat without compromising quality,” de la Fuente said.

The team’s first stop is Portland, OR, where there is access to U.S wheat supply systems from the wheat farms to end product education at the Wheat Marketing Center. Buyers will also learn how opportune it is to source multiple wheat classes and protein levels from the Pacific Northwest. In Oklahoma, the team will see HRW wheat in the field, observe how that wheat moves efficiently to market and get a first look at HRW quality for 2013/14. Price discovery, quality certification and trade considerations will be featured in the team’s final stop in Kansas City, MO.

In addition to generous support from the Oklahoma Wheat Commission and USDA’s Foreign Agricultural Service, USW worked with Kansas Wheat, the Oregon Wheat Commission, the Wheat Marketing Center, the Federal Grain Inspection Service and grain trade companies to organize the Ecuador trade team.



Australia Raises Wheat Forecast

Australia's chief agricultural forecaster is predicting increased wheat production this crop year, which would help the country replenish its granaries, though the expected extra supply doesn't address immediate concerns over global availability of high-quality milling grades.

Tight supply in Australia, the world's second-largest wheat exporter after the U.S. and a major supplier to East Asia, was thrust into the spotlight after some buyers shunned U.S. wheat following the recent discovery of an unapproved genetically modified strain at an Oregon farm.

Australia might have easily stepped in to meet incremental demand created by a supply disruption elsewhere two years ago, when it produced a record of nearly 30 million metric tons of the grain, but output fell 26% in the year that ended March 31.

The Australian Bureau of Agriculture and Resource Economics and Sciences on Wednesday revised its output forecast for 2013-14 to 25.4 million tons, up 2% from its last forecast and up 15% from 2012-13 production.

The winter rainfall outlook indicates an above-average chance of exceeding median rainfall in most eastern wheat areas and an average chance of doing so in Western Australia state, Abares said in a quarterly report.

The national area planted to wheat will likely to rise by 3% to 13.7 million hectares, it said. Farmers across Australia are planting wheat for the current crop, which is due to be harvested starting in October.

In addition to reduced output, Australian wheat supplies have dwindled due to strong exports and increased domestic demand. Prices have risen by more than $50 a ton in some regions over the past two months.



Biodiesel and Renewable Diesel Join Forces

The National Biodiesel Board announced Tuesday that it is opening its membership to include qualified renewable diesel producers in a move that will unite the advanced biofuels industry in the diesel sector.

The decision, made unanimously by NBB's governing board, consolidates under one tent the larger biodiesel industry with the younger and smaller renewable diesel industry, creating a stronger and more effective voice for both.

"We are excited to expand our membership to include renewable diesel producers," said Joe Jobe, CEO of NBB, which traditionally has represented only biodiesel interests. "While produced with different technologies, biodiesel and renewable diesel are close cousins with a lot of shared interests, particularly in policy areas such as the RFS and the blender's tax incentive. Joining forces puts us in a much stronger position as a coalition to make our voice heard and spread the word that these policies are working and that advanced biofuels are here today."

Jobe noted that with the change, NBB will represent the entire biomass-based diesel category under the Renewable Fuel Standard.

"Bringing the renewable diesel sector under our big tent demonstrates once again that biodiesel is the most diverse fuel available today," Jobe said. "And it's another representation of the important of diversifying our entire transportation fuels marketplace. ."

Representatives of the renewable diesel producers echoed Jobe's statements.

"We have long been impressed with the work NBB does to represent the biodiesel industry and felt that joining forces was the next logical step," said Randall C. Stuewe, President and Chairman of the Board of Darling International, Inc. which is a 50% equity owner in Diamond Green Diesel, a Louisiana-based Renewable Diesel plant with annual production capability of over 136 million gallons coming on line shortly.   "Many of the same issues face both biodiesel and renewable diesel producers and we're glad to be speaking with one voice on these issues."

Biodiesel and renewable diesel are both made with renewable resources such as soybean oil, animal fats and recycled cooking oils. Biodiesel is produced through a natural chemical reaction that takes place when alcohol is introduced to oils or fats in the presence of a catalyst. In the production of renewable diesel, hydrogen is added to the oils or fats under high pressure and temperatures, converting it to a hydrocarbon very similar to diesel fuel refined from petroleum crude.

Both biodiesel and renewable diesel reduce greenhouse gas emissions, displace imported petroleum diesel, create jobs and economic activity, bolster our energy security, and are compatible with existing diesel engines and fuel distribution infrastructure.

According to EPA data, nearly 1.1 billion gallons of biomass-based diesel were produced in 2012. The category represents about [85 percent-fact checking] of the total advanced biofuel volumes produced under the RFS. About 90 percent of the production was biodiesel and about 10 percent was renewable diesel.



BP: US Oil Production Surged in 2012

(AP) -- BP says the United States saw its biggest-ever annual increase in oil production in 2012, while the world's demand for energy grew at a slower pace than the year before.  In its annual Statistical Review of World Energy released Wednesday, BP PLC says the U.S. produced 8.9 million barrels a day, up 13.9 percent from 2011. 

Global oil production rose by 1.9 million barrels a day.

Chief Executive Bob Dudley said the industry was seeing "a shift in supply towards a greater diversity of energy sources," including unconventional hydrocarbons.  He said there was "ample energy available" to meet growing demand.

Growth in energy consumption slowed to 1.8 percent from 2.4 percent in 2011. But demand boomed in China and India, which together accounted for almost 90 percent of the increase.



Argentine Farmers Launch Strike

Argentine farmers will go on strike for five days starting Saturday to protest grain-export taxes, export restrictions and other government policies they say are strangling the sector.  "We don't want confrontation, but we don't have any choice...in the face of so much incomprehensible damage, which sometimes seems like vengeance," said the president of rural confederation, Ruben Ferrero.

Farmers will stop selling grain and live cattle during the protest. While this strike will be relatively short, the farmers plan to step up the pressure.  "If there is no response, there will be new protests for sure, Mr. Ferrero said at a press conference with the leaders of the country's four leading farm groups.

The strike is in response to repeated requests to meet with President Cristina Kirchner, which have fallen on deaf ears, said rural society SRA President Luis Etchevehere.

Farming plays a major role in Argentina's economy. Soybeans are the country's top exporter and source of foreign currency.  Argentina is the world's leading exporter of soyoil and soymeal, and ranks third in corn and soybean exports behind the U.S. and Brazil.



Foot-and-Mouth Disease Symposium White Paper Released

A White Paper summarizing information presented at the Foot-and-Mouth Disease (FMD) Symposium, , “Fostering a New Preparedness Paradigm: Facilitating a Conversation Among Public and Private Sector Stakeholders,” sponsored by the National Institute for Animal Agriculture, April 17-18, has been released. The FMD Symposium White Paper covers presentations given by numerous FMD experts plus an outline of discussion periods where stakeholders—specifically animal health authorities and livestock producers—addressed key challenges of preparedness activities.

“The goal of the symposium was to enhance preparedness for FMD across food animal production sectors by bringing together industry stakeholders representing the entire supply chain as well as regulatory agency stakeholders, academicians and policymakers,” stated symposium co-chair Dr. Julie Smith, Extension Dairy Specialist and Assistant Professor, Department of Animal Science, University of Vermont. “By engaging this broad range of stakeholders, the symposium facilitated the exchange of information and identification of next steps that can help foster scientific innovation, industry engagement and consumer confidence.”

“The goal of the discussions was not to reach consensus but to learn from each other via the exchange of stakeholder perspectives—and learn we did.”

Symposium co-chair Dr. Annette Jones, California State Veterinarian, Director of Animal Health and Food Safety Services, California Department of Food and Agriculture, stresses that, at this point in time, the U.S. food animal industry is FMD-free and has FMD-free status that is extremely vital to maintaining international trading partners.

“With the FMD virus in foreign countries, FMD is considered an ever-present threat to animal agriculture and the United States in general as the animals in our country are immunologically naïve,” Jones states. “To manage the risk and have an effective emergency management plan in place ready to activate is vitally important and requires cooperation among all levels of government, the private sector and the community.”

The “Fostering a New Preparedness Paradigm: Facilitating a Conversation Among Public and Private Sector Stakeholders” FMD Symposium White Paper can be accessed online at www.animalagriculture.org.