Friday July 26 Ag News

Helicopter to make low-level flights over the Clarkson-Howells area beginning August 5th

Northern Colfax County residents should not be alarmed when they see a slow-flying helicopter flying 100 to 300 feet over the Clarkson-Howells area in early August.

The Lower Elkhorn Natural Resources District (LENRD) is sponsoring a study of the groundwater in the Clarkson-Howells area. LENRD Water Resources Manager, Rick Wozniak, said, “Clarkson’s municipal water system was dangerously close to running out of water during the drought last year, and the LENRD received several reports of people having trouble with their wells.” Very little geologic information exists for this area, so the LENRD Board of Directors decided to use a new technology to learn more about the area’s groundwater.  Wozniak added, “The Elkhorn River basin continues to be a difficult system to completely understand.  The recent drought conditions in the LENRD have shown that the area around Clarkson has severe water supply problems that cannot be understood without more data.”

The LENRD hired Exploration Resources International LLC., (XRI) of Vicksburg, Mississippi to oversee the helicopter flights, data collection, and data processing. XRI will produce a detailed three-dimensional map of the geology of the area, which will include the location and size of groundwater aquifers.

The helicopter will fly in a back-and-forth pattern, flying lines that are about 330 feet apart, but will avoid flying over buildings and towns. The area covered will be about 36 square miles.

An array of instruments that resembles a large spider web will hang below the helicopter. These instruments can “see” hundreds of feet underground, providing the information XRI needs to develop maps of what lies underground.




Final Date for DCP Enrollment Nears

Nebraska Farm Service Agency (FSA) Director, Dan Steinkruger reminds Nebraska producers of the opportunity to enroll in the Direct and Counter-Cyclical Payment Program (DCP).  The American Taxpayer Relief Act of 2012 extended the authorization of the Food, Conservation, and Energy Act of 2008 (the 2008 Farm Bill) for DCP, among other Commodity Credit Corporation (CCC) programs, through 2013.  “DCP signup began in Nebraska on February 19 and producer signatures may be accepted through September 16, 2013,” said Steinkruger.  Steinkruger noted the Farm Bill extension also gave producers the opportunity to enroll in the Average Crop Revenue Election (ACRE) Program for 2013.  The signup period for ACRE began February 19, 2013 and ended on June 3.

DCP has provided producers with two types of payments since the beginning of the 2008 Farm Bill, including direct payments and counter-cyclical payments.  “Nebraska farmers and landowners earned $237,016,342 in DCP direct payments in 2012 and ACRE direct payments totaled $71,296,964,” said Steinkruger.  Direct payments are not based on producers’ current plantings of covered commodities, but instead are calculated using the base acres and payment yields established for covered commodities on the farm.  Counter-cyclical payments provide income support as part of a “safety net” in the event of low crop prices.  Counter-cyclical payments are only issued if the effective price for a commodity is below the target price.  Because the effective prices did not fall below the target prices for any covered commodities in 2012, producers did not earn counter-cyclical payments.  “The good thing is that the actual market prices were strong, however the safety-net was still there for the protection of Nebraska farmers,” said Steinkruger.

To be eligible for DCP, owners, operators, landlords, tenants or sharecroppers must, among other requirements, share in the risk of producing a crop on base acres and be entitled to share in the crop available for marketing; annually report the use of the farm’s cropland acreage; comply with highly erodible land conservation and wetland conservation requirements; comply with average adjusted gross income (AGI) limitation provisions; and meet “actively engaged” in farming requirements.

For more information on DCP and to make an appointment to enroll, contact your local FSA County Office or visit us on the web at:  www.fsa.usda.gov/ne.



Fischer Cosponsors Legislation to Protect Private information of Farmers and Ranchers

U.S. Senator Deb Fischer (R-Neb.) today announced she has cosponsored bipartisan legislation this week to prevent the Environmental Protection Agency (EPA) from disclosing the private information of farmers and ranchers. The Farmer Identity Protection Act (S.1343) was introduced by Sens. Chuck Grassley (R-Iowa) and Joe Donnelly (D-Ind.) and is similar to an amendment to the farm bill that Fischer cosponsored but was not brought up for a vote by Senate leadership.

“Farmers and ranchers, many of whom live and raise their families on their operations, have every right to be outraged by the EPA’s actions that demonstrate a blatant disregard for their privacy and safety. One of the main concerns I hear from Nebraskans is the overreaching hand of federal bureaucracy in their daily lives. The EPA’s reckless behavior in releasing this confidential information is just one of the latest instances for the hundreds of private citizens, families, and business owners in our state who were affected. This legislation takes the necessary steps to ensure the  release of their information that should be kept private does not happen again,” said Fischer.

Earlier this year, the EPA released the personal information of more than 80,000 livestock and poultry owners from across the nation to three activist groups in response to requests under the Freedom of Information Act (FOIA).  Much of the data, including names, home addresses, personal telephone numbers, and employee information, distributed to the activist groups did not meet the definition of a Consolidated Animal Feeding Operation (CAFO). 



Corn, Soy, Canola Growers Stand Firm on Title 1 Programs Prior to Farm Bill Conference
 
In a letter to leaders of the House and Senate Agriculture Committees today, the American Soybean Association (ASA), National Corn Growers Association (NCGA) and the U.S. Canola Association (USCA) made it clear that their position in favor of more market-oriented farm policies would not change as both chambers prepare their respective bills for a potential conference in September, and that the organizations would oppose any bill containing a risk management program that would tie planted acres to fixed reference or target prices.

In the letter, ASA, NCGA and USCA made it clear they would oppose any program that “would distort planting decisions in years when prices fall below support levels, resulting in surplus production of certain commodities, reduced acreage for smaller crops, depressed domestic and international market prices, and potential WTO actions against the U.S.”

“Soybean farmers simply cannot afford a farm bill containing a risk management program that, through its own design, could actually create more risk for growers by distorting market signals,” said ASA President Danny Murphy, a soybean farmer from Canton, Miss. “There is no question that this is a job that needs to get done, and there are many programs in each bill with which we agree, but we can’t let the need to pass a farm bill be an excuse for policies that place farmers at greater risk.”

“While we are pleased the process is moving forward, NCGA remains extremely concerned about a fixed-target-price program recoupled to planted acres that moves U.S. farm policy away from the market-oriented reforms that have made possible a robust rural economy,” said NCGA President Pam Johnson, a corn farmer from Floyd, Iowa. “Our goals have always been to ensure that the federal crop insurance program remains the cornerstone of the farm safety net and that there are market-oriented risk management tools that best complement the federal crop insurance program.”

“Canola is one of many crops that producers in the Northern Plains can choose from, and we want to preserve that diversity.  Conversely, after years of investment in research and infrastructure, canola has emerged as one of very few alternatives to winter wheat in the Southern Great Plains.” said Ryan Pederson, a canola farmer from Rolette, N.D., and USCA President. “But this effort would be at risk if prices fall and support prices are tied to current year plantings, because farmers will likely revert to the crop they know rather than the crop they are learning to grow.”



Nine U.S., Canadian and Mexican Meat and Livestock Organizations Seek Preliminary Injunction Against Country-of-Origin Labeling Rule
As part of a lawsuit filed July 8 seeking to block implementation of a mandatory country-of-origin labeling (“COOL”) rule finalized by the U.S. Department of Agriculture in May 2013, nine organizations representing the U.S., Canadian, and Mexican meat and livestock industries asked the United States District Court for the District of Columbia to grant a preliminary injunction.

In the request filed today, the groups said that they had a high likelihood of success in their case and that enforcement of the rule would cause irreparable harm to the industry and have severe economic impacts that are not in the public interest. 

Plaintiffs include the American Association of Meat Processors, American Meat Institute, Canadian Cattlemen’s Association, Canadian Pork Council, National Cattlemen’s Beef Association, National Pork Producers Council, North American Meat Association, Southwest Meat Association and Mexico’s National Confederation of Livestock Organizations, which joined the lawsuit this week.

The plaintiffs assert that they “are very likely to succeed on the merits and the Final Rule will likely be vacated.  But if it is not enjoined in the meantime, the Final Rule will irreparably harm meat-industry participants.  Plaintiffs are trade organizations that represent regulated entities facing immediate and substantial burdens and costs under the Final Rule.”

The injunction request follows the complaint and 1) outlines the burden to the plaintiffs’ First Amendment speech rights; 2) explains that the rule exceeds the authority granted to USDA in the 2008 Farm Bill; and 3) demonstrates that the rule is arbitrary and capricious, offering little benefit to consumers while fundamentally altering the meat and poultry industry.

The plaintiffs assert that “AMS does not claim that the new ‘Born, Raised, and Slaughtered’ disclosures are related to ‘protecting consumers from commercial harms.’  …. After all, in AMS’s own words ‘the COOL program is neither a food safety or traceability program …’.”

The request also states that “The agency … appears ambivalent at best about the actual value of this information to consumers.  But the First Amendment does not permit the government to resolve a tie in favor of compelling speech:  ‘If the First Amendment means anything, it means that regulating speech must be a last—not first—resort’.”

Because of these factors, the plaintiffs request an immediate injunction against implementation of the COOL Final Rule during the pendency of the litigation.

USDA proposed the new rule in March after the World Trade Organization (WTO) ruled in response to a complaint by Canada and Mexico that the existing country-of-origin labeling requirements violated the United States’ WTO obligations.  In a highly illogical move, USDA made COOL requirements even more complex and discriminatory against foreign meat and livestock, and Canada and Mexico have already made clear that the new rule does nothing to ease the concerns that prompted their original complaint.

The lawsuit was filed July 8, 2013 in the United States District Court for the District of Columbia to block implementation of the COOL rule.



Register for Sow Housing and Swine Nutrition Webinars

Producers battling high feed costs and swine housing decisions should tune into two upcoming free webinars series funded by the Pork Checkoff.

“There are a wide variety of options for housing gestating sows,” said Sherrie Niekamp, Pork Checkoff director of animal welfare. “These webinars will provide a summary of scientific literature and help producers make sound decisions about which housing type is best for their pigs given their resources and market.”

The second webinar series will discuss results of animal science research funded by the Pork Checkoff that can help producers make management decisions that improve productivity and profitability.

“The animal science committee recognized that there was a need for sharing information that producers can use,” said Chris Hostetler, director of animal science for the Pork Checkoff. “Producers can take away information from these webinars and apply it in daily production.”

Each webinar will last 45 minutes with time for participants to ask the experts questions. Producers can register for the webinars online at pork.org.

Sow Housing Webinars
• July 30, 1:00 p.m. CT: Sow lameness: detection, treatment and prevention – Locke Karriker, Iowa State University
• August 1, 1:00 p.m. CT: Gestation stall design – John McGlone, Texas Tech University

Animal Science Research Webinars
• August 6, 1:00 p.m. CT: Interaction of DDGS and housing type on sow productivity – Lee Johnston, University of Minnesota
• August 13, 1:00 p.m. CT: Use of soybean hulls in growing and finishing swine diets – Joel DeRouchey, Kansas State University
• August 20, 1:00 p.m. CT: Use of drought-stressed corn in swine diets – John Patience, Iowa State University
• August 27, 1:00 p.m. CT: Pelleting and complete diet grinding for high byproduct diets – Mike Tokach, Kansas State University

To register for a sow housing webinar, visit pork.org/sowhousing. To register for an animal science research webinar, visit pork.org/animalscience.



Separate Fact From Fiction When It Comes to RFS Implementation

The Advanced Ethanol Council (AEC) submitted its fifth RFS White Paper response to the House Energy and Commerce Committee today, covering the topic of RFS Implementation.  AEC Executive Director Brooke Coleman issued the following statement:

“One of the benefits of this white paper process is it allows Congress to pressure test some of the arguments being offered by the oil industry to support the notion that the RFS is not working. The oil trades have testified before Congress that buying a RIN credit is a cost of compliance with the RFS, when in fact it’s a voluntary cost of non-compliance. The oil trades are dancing around the fact that their members receive a RIN for free when they acquire a gallon of renewable fuel, and may be the ones profiting from higher RIN prices. The oil trades are pretending that they cannot blend more renewable fuel, while some of their members threaten franchisees who are trying to do just that. There are things that could be improved administratively with the RFS, including greater transparency in RIN trading markets, but hopefully this process will separate fact from fiction when it comes to RFS implementation. There are only downsides to re-legislating the RFS just one third of the way through a 15 year commitment.”



Bills to Establish Tax-Exempt Agriculture Research Organizations

Congressional members have reintroduced legislation to establish a new type of charitable tax-exempt 501(c)3 non-profit organization meant to foster public-private partnerships within the agricultural research community including USDA research agencies, academia, private corporations and non-profit organizations.

The Charitable Agricultural Research Act would establish the legal structure for agricultural research organizations, or AROs, a concept that builds on existing models for Congressionally-mandated foundations focused on medical research, natural resources and other priorities.

The goal would be to increase funds going to agriculture research in a time of declining public funding but increasing food needs, according to the National Association of Wheat Growers.

The bill was introduced in the House by Reps. Devin Nunes (R-Calif.) and Ron Kind (D-Wis.) and in the Senate by Agriculture Committee Chairwoman Debbie Stabenow (D-Mich.) and Sen. John Thune (R-S.D.).



Positive Outlook for Global Pork Industry into 2014

Rabobank has published a new report on the global pork industry, forecasting an improved market, but later and with lower prices than had been previously expected. The report also provides an outlook on issues of supply, demand and pricing for global as well as regional markets.

In the report, published by the bank's Food & Agribusiness Research and Advisory team, the bank says it expects a positive landscape for the pork industry in the second half of 2013 and into 2014, with limited supply growth, a likely increase in demand in China towards the festival season, and continuing high beef and poultry prices. However, the bank predicts that price increases will be limited due to high stock levels resulting from the disappointing first half of 2013 across the globe, and due to the continuing effect on demand of the economic crisis, mainly in the developed world.

"With declining feed costs resulting from bumper harvests, a subdued price increase will support a much needed margin recovery across the globe," explained the report's author, Rabobank analyst Albert Vernooij. "However, due to both the slow increase of pig prices and slow decline of feed costs, it is questionable whether this will be enough to fully cover losses endured in the first half of 2013."

The Rabobank five-nation finished hog price index rebounded in the latter half of the second quarter of 2013, supported by improving conditions across the globe with limited impact of exchange rates. In the European Union, the situation is forecast to remain difficult, with continuing pressure on consumer demand hampering market recovery, despite lower supply and rising exports. However, prices recovered in China, supported by the outbreak of H7N9 avian influenza in poultry, which resulted in a consumer move to pork. In the United States, prices have also recovered following the loss of key export markets, due to an increase in seasonal demand and lower-than-expected supplies.

The expectations for the second half of 2013 are largely dependent on the prospects for demand, as production is forecast to slightly increase. Pork markets are benefiting from relatively high prices for both beef and poultry, but will be negatively influenced by the continuing difficult economic conditions in key markets. Rabobank expects a slight increase in overall global pork consumption in the second half of 2013, due in part to the start of the festival season in China. This will support rising prices, but will likely be limited due to the current large stocks across the globe.

Longer term, Rabobank believes the announced acquisition of U.S.-based Smithfield Foods by Chinese firm Shuanghui International highlights the increased importance of global trade for the pork industry. The limited number of relevant countries, growth in demand, grain deficits in Asia, and continuing volatility mean that the Smithfield takeover may be a trigger for future steps. In order to secure supply, other importers may look to follow suit.