Thursday June 20 Ag News - US HOUSE FAILS TO PASS FARM BILL

House rejects farm bill, 62 Republicans vote no

(AP) _ The House has rejected a five year, half-trillion-dollar farm bill that would have cut $2 billion annually from food stamps and let states impose broad new work requirements on those who receive them.  Those cuts weren't deep enough for many Republicans who objected to the cost of the nearly $80 billion-a-year program, which has doubled in the past five years. The vote was 234-195 against the bill, with 62 Republicans voting against it.

The bill also suffered from lack of Democratic support necessary for the traditionally bipartisan farm bill to pass. Only 24 Democrats voted in favor of the legislation after many said the food stamp cuts could remove as many as 2 million needy recipients from the rolls. The addition of the optional state work requirements by an amendment just before final passage turned away any remaining Democratic votes the bill's supporters may have had.

Minnesota Rep. Collin Peterson, the senior Democrat on the House Agriculture Committee, said the work requirements, along with another vote that scuttled a proposed dairy overhaul, turned too many lawmakers against the measure.  "Our people didn't know this was coming,'' Peterson said after the vote.

Agriculture Committee Chairman Frank Lucas, R-Okla., said the same, telling reporters the vote "turned out to be a heavier lift even than I expected."

House Speaker John Boehner, R-Ohio, and Majority Leader Eric Cantor, R-Va., voted for the bill, but Boehner supported the dairy amendment and Cantor supported the amendment that imposed the work requirements.  Lucas and Peterson had warned that adoption of those amendments could contribute to the bill's downfall.

Fortenberry Statement on House Farm Bill Vote
Congressman Jeff Fortenberry today expressed his disappointment in the failure of the House of Representatives to pass a Farm Bill.  The Federal Agriculture Reform and Risk Management Act, which Fortenberry supported, failed on a vote of 195-234.  A Fortenberry amendment to place farm payment limits on individual farms was successfully adopted to the bill earlier in the day.

“I am shocked by today’s outcome,” Fortenberry said.  “We now face an uncertain future for farm policy.”

“While this Farm Bill proposal was not perfect, it would have helped write a new chapter in agricultural policy for the good of our farm families and all Americans, rural and urban alike. It included important reforms that trimmed its total costs to taxpayers, provided better risk management tools for farmers, ended the practice of providing direct cash payments across the board, and placed limits on the amount of federal payments any one farm is eligible to receive. While it also included appropriate reforms that achieved significant savings, it ensured strong support for important nutrition programs intended to help those struggling in tough economic times.”

The Fortenberry payment limits amendment, which passed on a bipartisan vote of 230-194, would have capped farm commodity payments at $250,000 per year for any one farm and closed loopholes in current law to ensure payments reach working farmers. It was the first time in more than 20 years this issue was brought to a vote on the floor of the House of Representatives.

“I am pleased my colleagues supported my efforts to limit farm payments. The amendment would help farm supports reach their intended recipients and close loopholes that benefit investors not actively engaged in farming,” Fortenberry said.  “We need a thoughtful and balanced approach that encourages younger people to take a chance in agriculture and gives them some support when they need it, while leveling the playing field for farm families.”

Smith Statement on the House Farm Bill
Congressman Adrian Smith (R-NE) today made the following statement after voting for H.R. 1947, the Federal Agriculture Reform and Risk Management Act, also known as the 2013 Farm Bill.  The bill failed in the House of Representatives by a vote of 195-234.  “I am very disappointed the House did not pass a five-year Farm Bill today.  I thought we would have the votes for a bipartisan bill to establish reasonable farm policy and make reforms to reduce spending.  We need to examine our options as we work to move a responsible long-term bill forward.  I remain committed to getting the Farm Bill done.”

Nebraska Farm Bureau Federation On U.S. House of Representatives Failure to Pass Farm BillStatement by Steve Nelson, President
“The U.S. House of Representatives inability to pass a farm bill is extremely disappointing to Nebraska farm and ranch families. Farm Bureau and others have worked tirelessly with Congress over the last two years to develop farm policy that is more reflective of the needs of American farm families and taxpayers.  The fact that partisan politics trumped the greater need of reformed farm and food security policy for America is a major setback.  The House's failure to act is even more disappointing for Nebraska livestock producers who have awaited reauthorization of livestock disaster programs that expired the year before the onset of one of the worst droughts in recent history.  We do greatly appreciate the efforts and votes in support for House Farm Bill passage by all three members of Nebraska's Congressional Delegation and hope they will continue to work with their colleagues to try and put the pieces of this farm bill back together."

Vilsack on House Failure to Pass Food, Farm and Jobs BillAgriculture Secretary Tom Vilsack made the following statement today on the failure of the House version of a Food, Farm and Jobs Bill:  "The failure by the House leadership, for the second year in a row, to reach consensus on a Food, Farm and Jobs Bill is a tremendous disappointment for all Americans. Twice now, the U.S. Senate has done its job and passed balanced, comprehensive legislation with overwhelming bipartisan support. Unfortunately, the House version of this bill would have unfairly denied food assistance for millions of struggling families and their children, while failing to achieve needed reforms or critical investments to continue economic growth in rural America. As a result, the House was unable to achieve bipartisan consensus."

Iowa Soybean Association disappointed with Farm Bill defeat todayIowa Soybean Association (ISA) leaders are disappointed with the U.S. House of Representatives’ inability to pass the farm bill today. With a vote of 195 to 234, the Federal Agriculture Reform and Risk Management Act of 2013 was defeated.  ISA leaders and farmers appreciate the support from Iowa’s congressional delegation.  Iowa congressmen Bruce Braley (D), David Loebsack (D), Tom Latham (R) and Steve King (R) voted in favor of the bill.  Ray Gaesser, a farmer from Corning, serves on the ISA board of directors and is vice-president of the American Soybean Association (ASA), an organization that also expressed disappointment in today’s action.   “We're not sure of the next steps, but do know that we'll continue to work with groups such as ASA and our congressional delegation to help create the bill that farmers and consumers need,” said Gaesser.  U.S. farmers now face the expiration of farm bill programs on Sept. 30.

ASA:  House Fails Soybean Farmers and American Agriculture
The American Soybean Association (ASA) voiced its extreme disappointment and frustration this afternoon following a vote by the House of Representatives to reject the Federal Agriculture Reform and Risk Management Act of 2013. With a vote of 195 to 234, the farm bill failed to pass the House following two days of debate. ASA President Danny Murphy, a soybean farmer from Canton, Miss, issued the following statement on today’s development:

“Today’s failure leaves the entire food and agriculture sector in the lurch. Once again, the nation’s soybean farmers and the 23 million Americans whose jobs depend on agriculture are left holding the bag.

“This bill would have reinforced the farm safety net, promoted our products in foreign markets, strengthened the fast-growing biodiesel industry, enhanced conservation programs; not to mention the stable, affordable and safe supply of food, feed, fiber and fuel that it would have ensured for all Americans; all while addressing our collective fiscal and budgetary obligations. Now, none of those benefits can be realized and a debilitating uncertainty extends from farmers to consumers as we all face the expiration of farm bill programs on Sept. 30.

“It is incumbent on both Republicans and Democrats to find a way forward for American agriculture.”

NCGA Disappointed in House Failing to Pass Farm Bill
National Corn Growers Association President Pam Johnson released the following statement in response to the House of Representatives failing to pass the Federal Agriculture Reform and Risk Management Act (2013 farm bill):  “The National Corn Growers Association is extremely disappointed to see the House of Representatives fail to pass the 2013 farm bill.  Up to the last minute our organization has actively and consistently called for passage of the legislation.  We will be engaged in all efforts needed to secure passage in the House and bring the bill to Conference.”

AFBF on House Defeat of the Farm Bill
Bob Stallman, President, American Farm Bureau Federation
“The American Farm Bureau Federation is highly disappointed the House did not complete work on the 2013 farm bill, the ‘Federal Agriculture Reform and Risk Management Act of 2013.’ It was a balanced bill that would have provided much needed risk management tools and a viable economic safety net for America’s farmers and ranchers.  We commend House Agriculture Chairman Frank Lucas (R-Okla.) and Ranking Member Collin Peterson (D-Minn.) for their commitment and hard work in bringing the bill to the floor and working toward its passage. We look forward to working with them as we regroup and move forward. We also appreciate House Speaker John Boehner (R-Ohio) for working with the Agriculture Committee leadership to bring the bill to the floor.  A completed farm bill is much needed to provide farmers and ranchers certainty for the coming years and to allow the Agriculture Department to plan for an orderly implementation of the bill’s provisions.”

NFU Deeply Disappointed In House Failure to Pass Farm Bill    
National Farmers Union (NFU) President Roger Johnson issued a statement following the U.S. House of Representatives failure to pass the 2013 Federal Agriculture Reform and Risk Management (FARRM) Act by a vote of 195-234:  “With today’s failure to pass a farm bill, the House has let down rural America. We are deeply disappointed that the House voted against the best interests of family farmers and rural America.”

NCBA on Failure by the House to Pass 2013 Farm Bill
The U.S. House of Representatives in a 195-234 vote failed to pass the 2013 Farm Bill (H.R. 1947) today. National Cattlemen’s Beef Association (NCBA) President Scott George, a dairy and beef producer from Cody, Wyo., issued the following statement:

“Passage of a 2013 Farm Bill remains the top priority for NCBA. That is why we are extremely disappointed in the failure of many members of the House for not recognizing the importance of a full five-year farm bill. In the midst of the struggling economy, rural America has been one of the few bright spots. This failure by the House places cattlemen and women behind the curve on having agriculture policy which not only provides certainty for producers nationwide, but also incorporates priorities important to the cattle industry.

“We were very close in this legislation to providing disaster programs for our producers, which would have extended disaster assistance for five years and would have covered losses in 2012 and 2013. These disaster programs are essential to equipping producers with the necessary tools to manage the risks associated with catastrophic weather events. After the historic drought which has plagued the countryside for the last few years, livestock producers needed these programs now more than ever.

“NCBA appreciates the efforts of House Agriculture Committee Chairman Frank Lucas of Oklahoma, and Ranking Member Collin Peterson of Minnesota in attempting to move the 2013 Farm Bill forward. We continue to support passage of this legislation by the House and will work to ensure that producers receive the certainty they deserve. This was not a perfect bill for any industry, but in the end cattlemen and women made sacrifices in order to support this bill. We expected members of the House to do the same.”



Rural Mainstreet Economic Growth Climbs:  Bank CEOs Recommend Ending QE3

Growth for the Rural Mainstreet economy strengthened to its highest level since December of last year according to the June survey of bank CEOs in a 10-state area.   

Overall: 
The Rural Mainstreet Index (RMI), which ranges between 0 and 100 with 50.0 representing growth neutral, climbed to 60.5 from May’s 58.8.

“This year’s healthy rainfall for much of the area has boosted growth over the past several months compared to the same period last year,” said Ernie Goss, the Jack A. MacAllister Chair in Regional Economics at Creighton University.

Jeffrey Gerhart, Chairman of the Bank of Newman Grove in Newman Grove, Neb., reported, “Corn and soybeans are in and growing without the assistance of irrigation in our area.  What a difference one year makes.”

Iowa:
The June RMI for Iowa expanded to 62.2 from 58.1 in May. The farmland-price index sank to 49.6 from 60.7 in May. Iowa’s new-hiring index for June weakened to a still solid 55.3 from May’s 59.1

Nebraska: 
After moving below growth neutral for January, Nebraska’s Rural Mainstreet index has now moved above growth neutral for five straight months. The June RMI slipped slightly to 56.5 from last month’s 57.7. The farmland-price index for June advanced to 59.2 from 53.9 in May.  Nebraska’s new hiring index stood at 53.7, down from May’s 53.9. 

Farming:
The farmland price index declined for the sixth time in the past seven months. The index decreased to 58.4 from 62.1 in May. “Our farmland price index has been above growth neutral since February 2010.  However we are tracking a clear downward trend in farmland price growth. I expect that growth to continue to fall as the U.S. dollar strengthens and agriculture commodity prices weaken,” said Goss.

“This downward trend in agriculture commodity prices has softened the growth in both farmland prices and farm equipment sales,” said Goss. After expanding by almost 9 percent for 2012, farm product prices have been flat for 2013 and while the farm equipment sales index expanded for June to 53.2 from May’s 52.4, sales are softer than earlier in the year.”

Banking: 
The loan-volume index moved above growth neutral for the month. However, the index dropped to a healthy 66.7 from 72.1 in May.  The checking-deposit index declined to 48.5 from May’s 54.5 while the index for certificates of deposit and other savings instruments sank to 33.6 from May’s 42.6.

This month bankers were asked about the Federal Reserve’s $85 billion monthly bond buying program, Quantitative easing (QE3). Approximately 55.6 percent of bankers recommend tapering or reducing the Fed’s bond buying program (QE3) over the next six months beginning immediately.

“Furthermore, almost one of five bankers, or 19.4 percent, think QE3 has been unsuccessful at stimulating economic growth and 43.3 percent of bankers indicated that the program has put excessive air in asset price bubbles such as farmland prices,” said Goss.

Hiring:
June’s hiring index expanded to 61.4 from May’s 59.8. “For two and one-half years, the Rural Mainstreet economy has been adding jobs.  However, the region’s employment level is still 2.3 percent below its pre-recession level,” said Goss.

Confidence:
The confidence index, which reflects expectations for the economy six months out, increased to 60.0 from 54.5 in May. “Consistent and positive growth in the national economy, along with improving crop conditions, are boosting bankers’ economic outlook,” said Goss

The Senate Farm bill cuts about $4.1 billion in food stamps over the next decade.  “According to our June survey, 56.6 percent of bank CEOs think the cuts are too small,” reported Goss.

Home and retail sales:
For a fifth straight month the homes-sales index took a large, positive jump. The June home-sales index advanced to a record 78.1 from May’s 73.9. The June retail-sales index rose to 53.9 from 52.3 in May. “Just as the national housing market consistently moves higher so does the Rural Mainstreet housing sector,” said Goss. 

This survey represents an early snapshot of the economy of rural, agriculturally and energy-dependent portions of the nation. The Rural Mainstreet Index (RMI) is a unique index covering 10 regional states, focusing on approximately 200 rural communities with an average population of 1,300. It gives the most current real-time analysis of the rural economy. Goss and Bill McQuillan, president of CNB Community Bank of Greeley, Neb., created the monthly economic survey in 2005.



Ammoniate Wheat Straw for Extra Feed
Bruce Anderson, UNL Extension Forage Specialist

Wheat harvest can produce lots of straw. That straw can make good feed for your dry stock cows, especially if you treat it with anhydrous ammonia.

Do you need to rebuild your hay supplies following last winter? Treating wheat straw with anhydrous ammonia can make it almost as digestible and as readily eaten as average prairie hay. This could help stretch your hay supply. But you have to do it right.

Bale straw soon after grain harvest, preferably with some moisture or dew on it. Then, gather bales into rows that are stacked like a pyramid. Next, cover the entire stack with one sheet of 6 to 8 millimeter black plastic. Use ropes or other methods to hold plastic in place. Make sure that you seal the edges of the plastic on the ground with loose soil to prevent leakage. Once that is done, you are ready to insert a pipe on the ground into the center of your stack and attach the pipe to the anhydrous tank.

Be careful - ammonia can be dangerous. Slowly turn on the anhydrous until the plastic balloons slightly. Don't go too fast or the plastic can rupture. Next, check and repair any leaks. Continue to add anhydrous slowly until you have added 60 pounds per ton of straw. Take about 10 minutes for each ton of straw.

When you are through, turn off the tank, remove the pipe, and seal its opening. Keep the plastic on the stack until about a week before feeding. Then open one end to allow any excess ammonia gas to escape.

If you can't remember all these steps, there are instructions on ammoniating crop residues on-line at beef.unl.edu under the drought section. The web address, again, is beef.unl.edu.

Done correctly, ammoniated wheat straw could be a very valuable feed.



OSHA working with Nebraska grain associations to promote awareness of grain industry hazardsFive seconds. That is how quickly a worker can become engulfed in flowing grain and be unable to get out.  Sixty seconds. That is how quickly a worker can be completely submerged in flowing grain. More than half of all grain engulfments result in death by suffocation.

In 2010, at least 26 U.S. workers were killed in grain engulfments, the highest number on record.  In the past 50 years, more than 900 cases of grain engulfment have been reported with a fatality rate of 62 percent, according to researchers at Purdue University in Indiana.

Record death and injuries in 2010, led the U.S. Department of Labor’s Occupational Safety and Health Administration to reach out to agricultural and grain handling industries to find ways to prevent deaths and injuries. OSHA also developed a Local Emphasis Program for Grain Handling Facilities focusing on the grain and feed industry’s six major hazards. These include engulfment, falls, auger entanglement, “struck by,” combustible dust explosions and electrocution hazards.

Since January 2012, the Omaha Area OSHA Office has conducted dozens of inspections in the grain industry, including the investigation of two tragic fatalities that occurred at grain handling facilities.  One occurred in February 2012 at a flour and feed mill in Wauneta, Neb., when an employee died after being engulfed by feed pellets in a bin. The second occurred in January 2013 at a grain and field bean merchant wholesaler in Talmage when an employee was fatally injured after being struck by a truck.

OSHA is working to change the ‘it won’t happen to me’ mindset,” said Marcia Drumm, OSHA’s acting regional administrator in Kansas City serving four Midwestern states. “Grain handling injuries and deaths, such an engulfment and dust explosions occur quickly, and may be prevented if employers follow proper safety procedures.”

Suffocation can occur when a worker becomes buried by grain as they walk on moving grain or attempt to clear grain built up on the inside of a bin. Moving grain acts like "quicksand" and can bury a worker in seconds. "Bridged" grain and vertical piles of stored grain can also collapse unexpectedly if a worker stands on or near it. The behavior and weight of the grain make it extremely difficult for a worker to get out of it without assistance.

OSHA is working with the Nebraska Grain & Feed Association, Grain Elevator and Processing Society, Association of Nebraska Ethanol Producers chapters as well as the Ag Coop Safety Directors of Nebraska, Nebraska Cooperative Council and Future Farmers of America to get the word out on prevention.

“OSHA is working with the grain and agricultural industries and the agricultural community to educate employers and workers about the six major hazards of the grain and feed industry,” said Drumm. “Through training, decals, brochures, websites, and other means of information communication, we will continue to work to improve awareness of these hazards and the safety and health of workers on Nebraska farms and in grain handling facilities. We are committed to preventing the injuries and deaths that have been too frequent in the industry in recent years.”

OSHA, the Grain and Feed Association of Illinois and the Illinois Grain Handling Safety Coalition have also developed a stop sign decal to adhere to grain bin doors using pictures and short phrases reminding entrants to lockout potentially hazardous equipment, stay clear of waist high grain, cover floor holes and to follow other best practices. Individuals or companies can email the Grain and Feed Association of Illinois at info@gfai.org to request the decal, which is pictured above.

OSHA has also published information related to common grain industry hazards and abatement methods, proper bin entry techniques, sweep auger use, and many other grain related topics at www.osha.gov/SLTC/grainhandling/index.html.  OSHA’s Grain Industry LEP is used in 25 states.

The National Grain Entrapment Prevention Initiative has also developed a flyer on grain bin safety: http://grainnet.com/pdf/Grain_Entrapment_Prevention.pdf.



USDA Livestock Slaughter Report for May 2013

Commercial red meat production for the United States totaled 4.15 billion pounds in May, down 1 percent from the 4.18 billion pounds produced in May 2012.

Beef production, at 2.23 billion pounds, was slightly below the previous year. Cattle slaughter totaled 2.86 million head, down slightly from May 2012. The average live weight was up 9 pounds from the previous year, at 1,289 pounds.

Veal production totaled 9.1 million pounds, 12 percent below May a year ago. Calf slaughter totaled 58,200 head, down 2 percent from May 2012. The average live weight was down 29 pounds from last year, at 266 pounds.

Pork production totaled 1.90 billion pounds, down 1 percent from the previous year. Hog slaughter totaled 9.22 million head, down 1 percent from May 2012. The average live weight was down 1 pound from the previous year, at 276 pounds.

Lamb and mutton production, at 14.3 million pounds, was up 5 percent from May 2012. Sheep slaughter totaled 204,500 head, 14 percent above last year. The average live weight was 140 pounds, down 11 pounds from May a year ago.

January to May 2013 commercial red meat production was 20.3 billion pounds, up slightly from 2012. Accumulated beef production was up slightly from last year, veal was down 7 percent, pork was down slightly from last year, and lamb and mutton production was up slightly.

By State (million pounds, % of May 2012)
Nebraska ...........:     620.6     -       99      
Iowa ..................:     541.0     -       98      
Kansas ..............:     471.6     -      103      


Industry discusses sow productivity at Feeding for 30 Forum

Producers and industry representatives discussed the feasibility of the U.S. swine industry reaching 30 pigs per sow per year at the Feeding for 30® Forum at World Pork Expo on June 5. Discussions on management strategies, ongoing research and sow nutrition were included in the second annual Feeding for 30® Forum, hosted by Purina Animal Nutrition, DSM Nutritional Products and Zinpro Corporation.

“The Feeding for 30® Forum provided an opportunity for producers from across the globe to learn from leaders in the swine industry,” says Elena Lindemann, lactating livestock marketing director with Purina Animal Nutrition. “Swine producers continue to move forward in productivity because they are sharing their experiences and learning innovative management strategies.”

The Feeding for 30® Forum panel of industry members and producers first discussed their experiences in moving toward 30 pigs per sow per year (psy) and the forum was then opened to questions from the audience. The panel was comprised of three producers nearing 30 psy and three industry representatives involved with sow nutrition and management.

Panelists of the Feeding for 30® Forum included:
·         Dan McManus, DVM, young animal specialist-swine for Purina Animal Nutrition
·         Jon Bergstrom, Ph.D., market development manager-swine for DSM Nutritional Products
·         Derald Holtkamp, DVM, associate professor of veterinarian diagnostic and production animal medicine for Iowa State University, College of Veterinary Medicine
·         Steve Huegerich, national director of swine operations for GSC Agribusiness in Coon Rapids, Iowa
·         Dave Hansen, owner/operator of Hansen Haven and Hansen Hog West in Coleridge, Nebraska
·         Steve Stitzlein, production supervisor at Heimerl Farms in Johnstown, Ohio

The producer panelists highlighted areas that have helped them move closer to 30 psy on their operations. Areas of focus include: full-feeding sows through lactation, increased attention to birth weights and colostrum, and piglet care immediately after farrowing. The producer panelists have current psy rates between 26 and 30.4 and together manage close to 30,000 sows.

“The panel discussion and the success of these panelists in the field show that 30 psy is a goal that we can achieve,” McManus says. “When you’re trying to hit that goal, it’s a package deal. You need good genetics and you need good nutrition. Beyond those pieces, the farms that are the most successful also have a very good, motivated team of people through all stages of production.”

Swine producers, veterinarians and nutritionists can learn more about the Feeding for 30® program and access nutritional resources by visiting www.Feedingfor30.com or www.facebook.com/Feedingfor30. To sign-up for monthly e-management tips, visit http://bit.ly/Feedingfor30. 

The Feeding for 30® program is led by Purina Animal Nutrition in partnership with DSM and Zinpro Corporation. Launched in 2012, the goal of this industry-wide initiative is to share sow nutrition and management research, advice and strategies to move toward 30 pigs per sow per year and to provide a discussion platform for producers working toward increased sow productivity.



Podcast Helps Soybean Farmers Deal with White Mold
A group of university researchers, in conjunction with the North Central Soybean Research Program (NCSRP), have created a podcast to help farmers deal with white mold, a disease of soybeans.

"Management of White Mold in Soybean" is a seven-part podcast series available for free download on iTunes. It covers topics such as how to identify white mold, estimating yield loss, impact of irrigation on disease development, foliar fungicides, understanding risk of white mold in a growing season, biological control and guidelines for an overall management plan.

The podcasts are especially relevant as most soybeans are now planted and emerging, and farmers need to be aware of white mold, said Kiersten Wise, Purdue Extension plant pathologist and podcast co-creator.

White mold, also called Sclerotinia stem rot, is caused by the fungus Sclerotinia sclerotiorum and can affect plant growth and ultimately yield and profits.

"White mold isn't a problem every year in Indiana, but when it is present, it can cause significant yield loss," Wise said. "Growers who have had white mold problems in the past should be prepared for the disease, since the fungus that causes white mold survives in the soil for a very long time."

This disease thrives in cool, wet conditions and under a dense foliar canopy. Early planting, narrow row width, high plant populations and high soil fertility all can contribute to more dense canopies, and increase the risk of disease development.

"The fungus that causes white mold infects soybeans as they're starting to flower in growth stage R1," she said. "If cool, wet weather persists during flowering, a fungicide application might be necessary to suppress the disease."

Wise said there are several fungicides that are available for use on white mold, but not all commonly marketed fungicides are effective against the disease. Growers should contact Extension personnel to determine which fungicides are recommended for use on white mold.

Management of white mold can be tricky because once farmers find evidence of the disease in the field, it might be too late to manage it that year. But identifying the disease can help future crops.

Wise said white mold is an easy plant disease to identify.

"If you suspect that you have white mold in your soybeans, walk into a field and pull back the canopy and look at the lower stems," she said. "If it looks like little bits of cotton are stuck to the lower stems, that's a good indication that you have white mold."

Recordkeeping and knowledge of field history are important parts of controlling white mold.

"The next time that field goes into soybeans, you want to choose a variety that is less susceptible to white mold and make sure that you're planting at recommended seeding rates," Wise said. "The higher the seed population, the more conducive the environment will be for white mold to develop."

Incidences of white mold vary from year to year, but Wise said Indiana had major occurrences in 2009 and 2011.

A PDF text version of "Management of White Mold in Soybean" to accompany the podcasts is available for free download at planthealth.info/pdf_docs/WhiteMold_NCSRP.pdf.

The North Central Soybean Research Program is a farmer-led organization funded by checkoff dollars. It includes researchers in 12 states: Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota and Wisconsin.



U.S. Soybean Farmers Commit to Mideast Markets

Never one to sit on the sidelines, the soy checkoff will be leading the industry in understanding and recommending opportunities for how markets in the Eastern Mediterranean can minimize U.S. soy trade interruptions during times of political unrest.

Soy checkoff farmer-leader Scott Singlestad, Waseca, Minn., will represent U.S. soybean farmers in a roundtable discussion in Amman, Jordan, with regional soy trade leaders. Also at issue, will be identifying regional trade linkages.

Before the wave of political unrest known as the "Arab Spring" in 2011, U.S. soybean farmers were exporting approximately 18 million bushels of soybeans to Syria. Since then, this market has eroded for all U.S. commodities. From this roundtable, the checkoff hopes to learn how regional trade linkages will fill the soy protein demand. While in the area, Singlestad will also attend the dedication of the U.S. Soybean Export Council's Dubai office.



New Beef Educator Guides Available

The American Farm Bureau Foundation for Agriculture has released two new educational guides to accompany the books “Beef in the Story of Agriculture” and “Beef an A-Z Book.” Both guides are developed for elementary grade classrooms and follow Common Core and national standards for education.

The educator guides give teachers resources to integrate agriculture education into Common Core and national learning objectives. Each guide focuses on several subjects including language, math, social studies and health and also gives the accompanying objectives and supporting standards for each subject.

The books are a great way to introduce students to different aspects of agriculture and are part of the Awesome Agriculture series by Susan Anderson and JoAnne Buggey. The “in the story” books follow five key concepts – food production, processing, distribution, marketing and consumerism. The “A-Z” books allow students to explore agriculture topics while taking a trip down the alphabet where A is for Agriculture, J is for Jobs and more.

Other topics covered in the Awesome Agriculture series include “Soybeans in the Story of Agriculture”(a Book of the Year winner), “Soybeans an A-Z Book,” “Pigs and Pork in the Story of Agriculture,” “Pigs an A-Z Book,” “Corn in the Story of Agriculture” and “Corn an A-Z Book.” Educator guides are available for the soybeans, pigs and pork, and beef cattle books. Corn educator guides are currently in development.

All the books and educator guides are available on www.agfoundation.org under Resource Orders then AFBFA Materials.



Restaurants Fatten Profits While Denying Energy Costs Supersize Food Costs

There they go again. The National Council of Chain Restaurants (NCCR) is rolling out yet another campaign of scare tactics and half-truths about the Renewable Fuels Standard (RFS). Big Oil and Big Food, including fast food restaurants, are desperate to protect their profits at the expense of American consumers.

Commenting on NCCR’s attack on the RFS, Bob Dinneen, President and CEO of the Renewable Fuels Association, said, “Seriously, the chain restaurants should put a sign up saying ‘1 Billion Half-Truths Served’.  It is a well-documented fact that there is a near perfect correlation between food prices and energy costs. The World Bank recently concluded that almost two-thirds of the post-2004 food price increase is attributable to the price of oil.  Conversely, when corn is seven dollars a bushel, there is only eight cents worth of corn in a box of corn flakes.  However, that same box of cereal has to be processed, packaged, and shipped which requires oil - expensive oil.  The average trip from farm to grocer, or perhaps a drive-thru, is 1,500 miles.”

“Here’s a hot, heaping serving of the truth:  Chain Restaurants, livestock producers, and grocery manufacturers are trying to protect cheap, government subsidized corn which allows them to keep more profit in their pockets.  They should instead be praising the RFS which has helped lower gas prices by $1.09 a gallon in 2011 thus allowing more Americans the disposable income to eat out regularly and cruise through drive-thru windows when hungry. “

Facts worth noting:
• Ethanol is not produced from the sweet corn that humans consume. It is made from field corn, which is used for livestock feed and industrial purposes.

• One-third of every bushel of grain used in the ethanol process is returned to the market as nutrient-dense livestock and poultry feed.

• Less than 3% of the global grain supply was used by the U.S. ethanol industry in 2012.

• 34.4 million metric tons of animal feed were produced by ethanol plants in 2012.

• 7 hamburgers per person worldwide could have been produced from the ethanol industry’s 2012 animal feed output. That is 50 billion hamburgers.

•  Only 16 cents of every dollar spent on food is related to agricultural ingredients. The remaining 84 cents goes to energy, packaging, food processing and other costs.

• Oil prices have virtually doubled since 2005 – the year the RFS was adopted – putting pressure on all raw commodities and consumer goods and services.  Still, while oil prices have climbed an average of 10% per year since 2005, retail food prices have increased an average of just 2.9%.

• There is a near perfect correlation between U.N. food price index & World Crude Oil prices, highlighting the fact that energy costs drive food prices.



ACE’s Lamberty says fast food RFS claims need to be eighty-sixed 

The Senior Vice President for the American Coalition for Ethanol (ACE) Ron Lamberty today dismissed anti-RFS claims of the National Council of Chain Restaurants (NCCR) as “More of the same - another industry doing the dirty work of Big Oil, apparently ignoring the fact that oil price increases are the major cause of food price increases.”

“I suppose the daily experience of charging two bucks for a glass of soda that has a few cents worth of corn sweetener and water gives the fast food folks the ability to keep a straight face when they make this kind of inane argument,” said Lamberty.

“At its highest price, corn represented a little more than 20 cents of the cost of a quarter-pound burger, and maybe a nickel of the cost of a large soda,” said Lamberty. “All of these organizations need to realize that their customers don’t have as much to spend on food because they’re spending it on gas, and gas prices will only get higher if groups like NCCR are successful in being co-opted by the oil lobby to protect big oil’s fuel monopoly.”

“Study after study after study shows that oil price increases are the major factor in food price increases,” Lamberty added. ”But it has been a long time since the RFS debate has been based on facts. The oil lobby is trying to buy the debate with PR stunts like the ones we’ve seen this week, and the irony is that the industries that are carrying Big Oil’s water are the ones that will be harmed the most if the RFS is eliminated and competition in the fuel marketplace is essentially outlawed.”



AFBF: Death Tax Repeal Act ‘Gets the Job Done’
The American Farm Bureau Federation supports legislation introduced today in both the House and Senate that would permanently repeal the estate tax. Sen. John Thune’s (R-S.D.) bill, The Death Tax Repeal Act of 2013, coupled with bipartisan legislation of the same title introduced by Reps. Kevin Brady (R-Texas) and Mike McIntyre (D-N.C.), is welcomed by America’s farm and ranch families.

While significant tax relief was enacted last year to help farmers cope with estate taxes, AFBF believes that permanent repeal is still the best solution to protect all farms and ranches. The legislation introduced today would repeal the estate tax, maintain stepped-up basis and make permanent a 35 percent maximum gift tax rate and $5 million lifetime gift tax exemption indexed for inflation.

“Individuals, family partnerships and family corporations own 98 percent of our nation’s 2 million farms and ranches,” said AFBF President Bob Stallman.  “When estate taxes on an agricultural business exceed cash and other liquid assets, surviving family partners may be forced to sell land, buildings or equipment needed to keep their businesses running. This not only can cripple a farm or ranch operation, but also hurts the rural communities and businesses that agriculture supports.”

The value of family-owned farms and ranches is usually tied to illiquid assets, such as land, buildings and equipment, said AFBF. With 85 percent of farm and ranch assets illiquid, producers have few options when it comes to generating cash to pay the estate tax. Recent increases in agriculture cropland values, on average 15 percent from 2011 to 2012, have greatly expanded the number of farms and ranches that now top the estate tax exemption.

“Farm Bureau believes the estate tax should be eliminated permanently,” concluded Stallman. “We fully support The Death Tax Repeal Act of 2013 to get the job done.”



President Obama on the Confirmation of Michael Froman as United States Trade Representative

"I am pleased that the Senate took bipartisan action today to confirm Michael Froman as the United States Trade Representative.  Mike has been my closest advisor on a broad range of international economic issues and will continue to play a key role on my economic team.  He’s trusted and well-respected by our partners around the world, and for the last several years, he’s been a driving force behind our international economic agenda.  In his new position, Mike will stay focused on our primary economic goals – promoting growth, creating jobs and strengthening the middle class.  And he will continue to help open new markets for American businesses, level the playing field for American workers, farmers and ranchers, and fully enforce our trade rights." 



Dairy Situation and Outlook
Bob Cropp, Professor Emeritus, University of Wisconsin Cooperative Extension

This year milk prices were at their low in March with Class III at $16.93. The Class III price improved to $18.52 in May. But, for June the Class III price will fall back some to about $18.05. Prices are much improved over a year ago when the May Class III price was $15.23 and June $15.63. The lower June Class III price may be attributed to a spring flush in milk production resulting in relatively high dairy product production and increasing stocks of dairy products. While April butter production was slightly lower than a year ago, a 0.3% decrease, American cheese production was 2.4% higher with cheddar up 4.4% and total cheese production 3.2% higher. Nonfat dry milk production was 15.7% lower but skim milk powder production was 110.6% higher reflecting export opportunities. Butter stocks as of April 30th increased 21.8% from March and were 22.2% higher than a year ago. American cheese stocks increased 2.1% from March and were 5.3% higher than a year ago. Total cheese stocks increased 1.3% from March and were 4.5% higher than a year ago.

Commercial disappearance of all dairy products has been running below a year ago with January through March 0.6% lower. Butter and cheese sales have been higher, but fluid (beverage) milk sales were 4.2% lower.

On the positive side for milk prices have been dairy exports. Compared to April a year ago exports of nonfat dry milk/skim milk powder were up 40% for a record volume for any given month. This drew down nonfat dry milk stocks 17% from March. Cheese exports were 6% higher, whey products 13% higher and lactose23% higher. But, after running higher for the first 4 months butter exports was 29% lower. April exports on a total-solids basis were equivalent to 15.7% of U.S. milk production which was a record. This compares to 13.5% of U.S. milk production for all of 2013.

The level of dairy product production and stocks has meant lower dairy product prices. Butter has been below the May average of $1.5796 per pound and as of June 19th it was $1.5075. Cheddar barrel cheese averaged $1.7251per pound for May and is now higher at $1.75.The 40-pound block cheddar cheese have been below the May average $1.8052 per pound and is now $1.725. Western dry whey prices have held steady in the $0.56 to $0.61 per pound range and the price of nonfat dry milk strengthen slightly to the range of $1.67 to$1.72 per pound.

Milk prices should start to increase again in July and peak in October or November. The spring flush is done and milk production declines seasonally during the summer months. And by late summer schools open increasing fluid milk sales and dairy processors and buyers begin to position cheese and butter for the strong seasonal sales period of Thanksgiving through Christmas. The price increase of course will depend upon the level of milk production, domestic sales and exports. Higher milk prices and lower feed costs have improved margins for dairy producers that could stimulate higher milk production. But, also attractive beef prices has encouraged heavier culling of dairy cows and reports of dairy replacements going into feed lots. Unfortunately NASS will not be publishing the July 1st cattle inventory to verify this. The Consumer Confidence Index has improved which could be positive for domestic sales. And exports should remain a positive factor. March and April milk production by the 5 major dairy exporters—EU, U.S., New Zealand, Australia and Argentina was 3.1% lower than a year ago. While recent rains have reduced the drought conditions and improved pastures for New Zealand a lot of cows were culled during the drought which will slow increases in their milk production the start of their next production season later this summer and fall. Forecasts are for the combined total milk production for the 5 exporters to remain rather flat for the remainder of the year. U.S. dairy product prices are also favorable to world milk prices. These conditions should be positive for U.S. dairy exports for the remainder of the year.

Milk production was rather flat for the first 4 months of this year. However, that was still a lot of milk since last year production during this period was 4% higher than the year before. USDA release of May’s milk production showed milk production is increasing with production 0.8% higher than a year ago. This is also a lot of milk since May production a year ago was up almost 2%. Western production was lower with Arizona down 1.9%, California -0.5%, New Mexico -1.1%, and Texas -0.8%. Production was slightly higher in Idaho at 0.3%. But, production was running higher in the Northeast and Upper Midwest. Production was up 2.1% in New York, 1.7% in Ohio, 2.3% in Pennsylvania and 2.5% in Michigan. Iowa’s production was up 2.9%, Minnesota 1.8% and Wisconsin 1.2%.

As of now market conditions indicate the Class III price could be near above $19 August through October or November. However, current Class III futures are $18.50 or lower during this period. Earlier I had projected the possibility that the Class III price could reach $20 this summer. But, milk production is running higher than anticipated resulting in more dairy product production and dairy stocks. But, I still feel there still is a very good probability that the Class III could reach at least the high $19s, if the increase in milk production does not run much more than 1% above a year ago and domestic sales and exports turn out better. Last year the October Class III price was $21.02, but drought was increasing feed prices and increases in milk production were declining. Looking beyond 2013 into 2014 has a lot of uncertainty with the unknown how this year’s crops turn out and resulting feed cost this coming winter. The hay supply could remain tight and prices high. The carryover of hay stocks will be low. May 1st U.S. hay stocks were 34% lower than the year before and the lowest total for May 1st since statistics were first complied. May 1st hay stocks were 55.7% lower for Wisconsin and 45.6 % lower for Minnesota. Both states experienced major winter kill of their alfalfa. Also wet weather has delayed corn and soybean planting in the Midwest and the harvest of the first crop of hay. The delay in first cutting of hay could reduce the number of possible cuttings and total tonnage. So whether feed prices end up lower than a year ago this fall and coming winter is uncertain at this time.



Argentine Farmers Strike

Argentine grain trade ground to a halt this week due a farmer strike that saw sellers boycott the market.  No sales were registered at the Rosario Grain Exchange. With national holidays on Thursday and Friday, grain traders will have to wait until Monday to get back to work.

Farmers launched a five-day strike starting Saturday to protest grain-export taxes, export restrictions and other government policies.

Grain and cattle sales were halted during the protest, but the effect on the market and exports is expected to be limited due to the short duration of the strike and ample stocks.  However, markets will be watching closely to see if farmers follow through with threats to launch new protests if they don't see concessions from the government.

The farmers are asking for a lowering of export taxes, which run as high as 35% in the case of soybeans. They are also pushing for the government to free up grain exports, which are tightly regulated to ensure domestic supply and cheap food prices at home.



Rabo AgriFinance Report Finds Corn Margins to Tighten Significantly
As growth in demand for biofuels begins to slow and Chinese grain demand remains uncertain, U.S. corn prices could be pressured to below breakeven levels, according to a new report from the Rabobank Food & Agribusiness (FAR) Research and Advisory group.

The report, “AgFocus: Bracing for Tightening U.S. Grain Margins,” notes softer medium-term prices could lead to a contraction of 5 to 6 million U.S. acres as growers look toward other crops.

“The three largest drivers of U.S. grain prices over the next few years will be demand from the U.S. ethanol industry, import demand from China and supply performance in Brazil,” says report author and Rabobank Food & Agribusiness Research and Advisory (FAR) group Vice President, Sterling Liddell.

The report finds an environment of slowing demand growth for biofuels in the U.S. and Europe, and improving ability for Brazil to export. These factors will likely lead to a dampening of prices and margins for the U.S. over the next three to five years. The report goes on to say the two biggest wildcards are U.S. weather and demand from China. The report authors believe growth in China’s overall demand for grain and oilseed imports is likely to moderate in the medium term as meat demand slows from its recent high levels. This moderation is despite the likely rapid continuation of the industrialization of China’s animal protein industry, which is being stimulated by a string of food safety problems.

“It’s our belief that corn prices will adjust lower, with a long-term midpoint of around five dollars per bushel,” notes Liddell. “We also anticipate U.S. corn exports will struggle to regain 2009 levels, as farmers are impacted by these tighter margins. As a result, farmers will be forced toward cost efficiency, productivity growth and tighter financial management, and away from investment and business growth.”

The full report, which is available upon request, explores the legislative and infrastructure factors driving U.S. ethanol demand, Brazilian practices and outputs, and China’s increasing feed demand.