Thursday July 11 Ag News - House Passes Modified Farm Bill

Smith Votes for Revised House Farm Bill

Congressman Adrian Smith (R-NE) made the following statement after voting in favor of a revised version of the House Farm Bill - H.R. 2642, the Federal Agriculture Reform and Risk Management (FARRM) Act of 2013.  The bill passed in the House of Representatives by a vote of 216 – 208.

“While this is not the process I would have preferred, today’s vote is a step in the right direction toward enacting longer-term farm policy.

“I am especially disappointed we are sending a bill to a conference committee between the House and Senate without reforms to the nutrition title.  The end-result of this strategy could be fewer savings than would have been achieved had we passed the original version of the House bill. 

“While this is neither a perfect bill nor the approach I would have taken, I remain committed to a long-term Farm Bill, and I am encouraged the process is moving ahead.  I welcome more debate, and I look forward to the bill moving to conference.”



Iowa Soybean Association not in favor of partial Farm Bill vote

Iowa Soybean Association (ISA) farmers and leaders were clear in their discussions with Congressional leaders in Washington, D.C., this week: “We don’t want to see the Farm Bill split.”

But, earlier today, in a party-line vote of 216-208, the House of Representatives passed a stripped-down version of the 2013 Farm Bill, containing only farm programs. The “split” cuts the nutrition title from the bill, instead of striking a balance among agriculture, conservation and nutrition.

 “We wanted a bill that meets the needs of farmers and consumers. Farmers work to raise food to feed people, so the nutrition element made sense to us,” said Ray Gaesser, a farmer from Corning who serves on the ISA board of directors and as vice-president of the American Soybean Association.  “A unified bill would have had a better chance of passing and helping all Americans, both rural and urban, be successful in the future.”

Gaesser added that soybean groups are concerned that part of today’s vote will repeal the 1949 “permanent” ag law, which reverts back to parity prices established around 1914. “Adjusted for inflation, this would cause government support prices to rise substantially,” said Gaesser. “This really holds a club over people’s heads to get a new Farm Bill passed soon. There is still more work to be done.”

U.S. farmers face the expiration of farm bill programs on Sept. 30.



With House Passage of Partial Farm Bill, ASA Looks for Cooperation in Conference  

Earlier today, in a party-line vote of 216-208, the House of Representatives passed a stripped down version of the 2013 Farm Bill, containing only farm programs. American Soybean Association (ASA) President Danny Murphy, a soybean farmer from Canton, Miss., issued the following statement on the vote:

“ASA is relieved that we will finally see a conference on the farm bill. However today's approval by the House on a partial bill will mean nothing if we can't get a bill back from conference that both chambers will pass. In that sense, there is still much work to be done.

“ASA is opposed to the replacement of permanent law by whatever legislation may result from this process.  If only Title 1 of a new farm bill is made permanent, other titles – including conservation, research, energy and trade – would risk not being reauthorized when the bill expires after five years, since Title 1 would remain in place. Also, we are very concerned that Title 1 of a new bill could include provisions that would distort plantings and production in years of low prices, and that it would be extremely difficult to change these provisions if the legislation were made permanent.

“ASA now calls on both the House and Senate to work in a bipartisan manner to craft a conference bill that has the ability to pass both the House and Senate and be signed by the President before September 30 when existing authorities for important risk management, trade expansion, conservation, bio-energy, and agricultural research authorities all expire.”



Statement by NCBA President Scott George on House Passage of Farm Bill

The U.S. House of Representatives in a 216 to 208 vote passed the 2013 Farm Bill (H.R. 2642) today. National Cattlemen’s Beef Association (NCBA) President Scott George, a beef and dairy producer from Cody, Wyo., issued the following statement on the passage of the legislation:

“First, we thank House Agriculture Committee Chairman Lucas of Oklahoma, who in this very difficult environment produced a farm bill that passed out of the House and continues the process toward providing farmers and ranchers the certainty they need. Passage of a 2013 Farm Bill is the top priority for NCBA, and today the House took the unprecedented step in separating the nutrition title from the farm bill, and passing a bill that only encompasses agriculture. This step is a major departure from the usual business of agricultural policy, but I am pleased that cattlemen and women are one step closer toward final legislation which not only provides certainty for producers, but also incorporates priorities important to the cattle industry.

“We are very pleased that this legislation includes disaster programs for our producers, which will extend disaster assistance for five years and retroactively covers losses in 2012 and 2013. The legislation authorizes conservation programs important to cattle producers as a tool to leverage private dollars with some federal support to further protect the land and natural resources. It contains language to prevent the United States Department of Agriculture from moving forward on the proposed GIPSA rule from the 2008 Farm Bill.

“There are also important amendments included in the legislation which rein in the Environmental Protection Agency (EPA). These amendments provide regulatory relief to cattle producers, prevent EPA from releasing producers’ personal information to third parties such as environmental activist groups and prohibit EPA from regulating forest roads under the Clean Water Act (CWA).

“NCBA appreciates the efforts of Chairman Frank Lucas, Ranking Member Collin Peterson of Minnesota and their committee members who worked in a bipartisan fashion to pass a bill out of the Agriculture Committee. We will continue to work with the House and Senate conferees to ensure the final bill meets the priorities of America’s cattle industry.”



ACE statement on House passage of Farm Bill

Brian Jennings, Executive Vice President of the American Coalition for Ethanol issued the following statement after the House passed their version of the Farm Bill today...  “Now that the U.S. House has adopted its version of the Farm Bill, ACE will be working to encourage the House-Senate conference committee to finalize legislation that mirrors the Senate Bill.  The Senate version contains support for important Energy Title initiatives, particularly mandatory funding for the Rural Energy for America Program (REAP). These REAP funds provide vital cost-share assistance to help petroleum marketers make upgrades or install new equipment at retail stations, ensuring consumers have access to renewable and affordable fuels such as ethanol.  We are hopeful Congress enacts a multi-year, comprehensive farm bill that resembles the Senate legislation before the September 30th  deadline,” said Jennings.



Reax to Split Farm Bill in House from National Milk Producers Federation
Jerry Kozak, President and CEO

“The farm bill passed today by the House of Representatives is seriously flawed, in that it contains the Goodlatte-Scott dairy amendment, as well as a repeal of permanent agricultural law.  Neither of these measures serves the best long-term interests of dairy farmers. The Senate, by contrast, overwhelmingly passed the complete Dairy Security Act, which the National Milk Producers Federation and nearly all dairy farmers enthusiastically supported.

“Nevertheless, today’s action means that there is still hope that a new farm bill can be passed in 2013. Without any progress toward a Senate-House conference committee, we were looking at yet another one-year extension of current programs, which is unacceptable. Today’s vote means that agricultural leaders now can work on improving the House bill and developing better dairy policy than what exists now, and what is contained in this House bill.

“The bill today is not the end of the process, but rather a means to a better end that we will continue working with lawmakers to achieve. NMPF appreciates all the efforts put forth by Chairman Frank Lucas (R-OK) and Ranking Member Collin Peterson (D-MN) to try to move a 5-year farm bill through the House of Representatives by bipartisan means last month. We are committed to working with these two champions for agriculture through the conference process in the coming weeks. We urge the conference committee to include the Dairy Security Act.”



FARM BILL PROGRESS IS BITTERSWEET
John Wilson, Senior Vice President, Dairy Farmers of America

“While today’s progress toward a Farm Bill is welcome, it is unfortunate that this movement comes with a bill that does not contain the Dairy Security Act (DSA). H.R. 2642, the Federal Agriculture Reform and Risk Management Act of 2013, falls short on many fronts.

“It is truly disappointing that this omission was the only way to move this bill forward through a divided House of Representatives. Given that the Farm Bill affects not only the rural economy, but the nation’s economy as a whole, it is unfortunate that bi-partisan support has been so difficult to achieve.

“However, we remain hopeful that conference negotiations with the Senate bill, which does contain the DSA, will yield a dairy program we can embrace.

“The development of this Farm Bill and specifically reforms in dairy programs has required extraordinary patience, negotiation and perseverance by Congressional Agricultural Committee leaders, dairy farmers and others in agriculture. We urge party leadership in both the House and Senate to quickly name conferees and bring this bill to finalization.”



NAWG Statement on House Passage of Farm Bill Measure Without Nutrition Title

A statement from National Association of Wheat Growers (NAWG) President Bing Von Bergen, a wheat farmer from Moccasin, Mont.:

"I was pleased to see the House approve moments ago farm, conservation, research, trade promotion and energy measures as part of a revised farm bill product. Splitting the agriculture and nutrition portions of the traditional farm law is a concern of ours. At the same time, we are pleased the House can now move to a conference process with the Senate and work toward a product that can be approved by both chambers and President Obama before the current farm bill extension expires.

"The situation this legislation is in is no one's ideal scenario. However, we have faith our ag leaders will continue their diligent efforts to get in place the safety net our farmers and all consumers need, and we stand ready to help them do so."



Revised FARRM Act Passes House of Representatives

National Sorghum Producers Chairman Terry Swanson released the following statement in response to the House of Representatives’ passage of the split version of the Federal Agriculture Reform and Risk Management Act of 2013:  “While the road leading to this point in the farm bill process is unconventional, National Sorghum Producers supports the revised bill that was before Congress today and thanks the Members of the House of Representatives for passing the bill. We stand behind the leadership of Agriculture Committee Chairman Frank Lucas and his decision to move forward in this way as a means to getting a bill to conference committee that will ultimately result in a comprehensive, five-year farm bill.”



National Grange statement on the passing of the House Farm Bill
 
National Grange Legislative Director Grace Boatright issued the following statement Thursday afternoon:  "The Grange is happy that the House finally passed a Farm Bill, although we have very mixed thoughts about splitting it from the Nutrition Title. This is a giant step in the right direction but we're still a long way from getting a full five-year Farm Bill. We believe the Senate will not be very receptive to a Farm Bill without a Nutrition Title, which includes food stamps, WIC, and school lunch programs. But more pressing is the issue of time. There are less than three weeks until Congress takes its August recess, making it increasingly more difficult for members to settle this issue before the September 30 deadline. The clock is ticking and the Grange hopes that our legislators on the Hill will be able to reach some sort of agreement soon. If they don't, American agriculture will continue to struggle."



NEBRASKA CROP PRODUCTION REPORT

Based on July 1 conditions, Nebraska's 2013 winter wheat crop is forecast at 41.76 million bushels, down 8 percent from the June 1 forecast due to fewer acres estimated for harvest, down 22 percent from last year, and the smallest production since 1944, according to the USDA’s National Agricultural Statistics Service.  Average yield is forecast at 36 bushels per acre, up 1 bushel from last month but down 5 bushels from last year and the lowest since 2006.

Acreage to be harvested for grain is estimated at 1.16 million acres, down 11 percent from June 1 and also 11 percent below last year.  This would be 80 percent of the planted acres, well below last year’s 94 percent harvested and the smallest percentage since 1992.

Oat production is forecast at 2.52 million bushels, more than twice last year’s output and the largest since 2005.  Acreage for harvest, at 40,000 acres, is more than double 2012.  Yield, at 63 bushels per acre, is forecast to be 6 bushels above a year ago.


 
IOWA OAT PRODUCTION DOWN 20 PERCENT

Oat production in Iowa is forecast at 3.0 million bushels, down 20 percent from 3.8 million bushels in 2012.  The expected yield is 60.0 bushels per acre, down 5 bushels per acre from last year. Acres harvested for grain are expected to total 50,000 acres this year, down 14 percent from 58,000 acres last year.

National  oat  production  is  forecast  at  74.5  million  bushels  for  2013,  up  16  percent  from 64.0 million bushels  in 2012.   The expected yield at  the national  level  is 62.3 bushels per acre, up 1 bushel per acre from last year. Acres harvested for grain are expected to  total 1.20 million acres this year, up 14 percent from 1.05 acres last year.



USDA:  Winter Wheat Production Up 2 Percent from June
Winter wheat production is forecast at 1.54 billion bushels, up 2 percent from the June 1 forecast but down 6 percent from 2012. Based on July 1 conditions, the United States yield is forecast at 47.8 bushels per acre, up 1.7 bushels from last month and up 0.6 bushel from last year. If realized, this will equal the United States record high yield established in 1999. The area expected to be harvested for grain or seed totals 32.3 million acres, unchanged from the Acreage report released on June 28, 2013 but down 7 percent from last year.

Hard Red Winter production, at 793 million bushels, is up 1 percent from last month. Soft Red Winter, at 539 million bushels, is up 6 percent from June. White Winter, at 211 million bushels, is down 3 percent from last month. Of the White Winter production, 11.9 million bushels are Hard White and 200 million bushels are Soft White.

Durum wheat production is forecast at 57.5 million bushels, down 30 percent from 2012. The United States yield is forecast at 38.3 bushels per acre, down 0.7 bushel from last year. Expected area to be harvested for grain totals 1.50 million acres, unchanged from the Acreage report released June 28, 2013 but down 29 percent from last year.

Other spring wheat production is forecast at 513 million bushels, down 5 percent from last year. Area harvested for grain is expected to total 12.0 million acres, unchanged from the Acreage report released June 28, 2013 but down 1 percent from last year. The United States yield is forecast at 42.9 bushels per acre, 2.1 bushels below 2012. Of the total production, 476 million bushels are Hard Red Spring wheat, down 6 percent from last year.



USDA World Ag Supply and Demand Report - July 11, 2013

COARSE GRAINS: 
Projected 2013/14 U.S. feed grain supplies are lowered this month with reduced beginning stocks for corn and sorghum and lower forecast harvested areas for corn and sorghum from the Acreage report.  Corn beginning stocks for 2013/14 are projected 40 million bushels lower.  Corn production for 2013/14 is lowered 55 million bushels with the lower harvested area and the projected yield unchanged at 156.5 bushels per acre.  Projected production remains just below 14 billion bushels and would be 858 million above the record in 2009/10.  Corn supplies for 2013/14 are lowered 90 million bushels as a 5-million-bushel increase in imports only partly offsets the lower beginning stocks and production.

This month’s changes to corn use for 2012/13 and 2013/14 largely reflect the lateness of the 2013 crop and expectations for extremely tight supplies later this summer and into early fall.  Feed and residual disappearance for 2012/13 is raised 50 million bushels as early harvest of new-crop corn is expected to be sharply reduced from last year.  A 10-million-bushel increase in projected imports for 2012/13 also reflects the tight supply situation expected for old-crop corn during the summer quarter.  Imports for 2013/14 are raised because the tight supply situation is expected to continue into September.  Feed and residual use for 2013/14 is lowered 50 million bushels with tighter beginning stocks and lower production, and also on the lack of early new-crop usage which tends to boost indicated disappearance during the September-December quarter of the new marketing year.  Projected exports for 2013/14 are lowered 50 million bushels as tight supplies of corn in early September are expected to limit early season shipments.  With lower projected use in 2013/14, ending stocks are raised 10 million bushels and remain just under 2 billion bushels.  The projected 2013/14 season-average farm price for corn is unchanged at $4.40 to $5.20 per bushel.  The 2013/14 other feed grain farm price projections are also unchanged.

Global coarse grain supplies for 2013/14 are projected 3.6 million tons lower with 2.9 million tons of the decline resulting from the tighter supply situation for corn and sorghum in the United States.  Foreign coarse grain supply and use changes this month are relatively small in the aggregate.  Corn beginning stocks for 2013/14 are lowered for Brazil with higher 2012/13 exports and for Indonesia with lower 2012/13 production.  China corn production for 2013/14 is lowered 1.0 million tons on lower indicated area.  European Union corn production is increased 1.8 million tons when adjusted for this month’s inclusion of Croatia, however, last month’s 27-member union is lowered 0.4 million tons.  Barley production is raised 0.5 million tons for Canada and 0.2 million tons for Kazakhstan, both on higher reported area.  European Union barley production is raised 0.5 million tons with the addition of Croatia accounting for less than half the increase.

Global 2013/14 coarse grain trade is mostly unchanged this month with exports down slightly on the reduction for U.S. corn.  Global corn consumption is down 2.6 million tons with half of the reduction in the United States.  Corn consumption is also lowered for Indonesia.  Global corn ending stocks for 2013/14 are projected at 151.0 million tons, down 0.9 million, with reductions for Brazil and China.  World corn stocks are expected to be the highest since 2001/02.

OILSEEDS: 
U.S. oilseed production for 2013/14 is projected at 100.9 million tons, up 0.2 million from last month, with increased soybean production mostly offset by reductions for other oilseeds.  Soybean production is projected at 3.42 billion bushels, up 30 million due to increased harvested area.  Harvested area, estimated at 76.9 million acres in the June 28 Acreage report, is 0.7 million above the June projection.  The soybean yield is projected at 44.5 bushels per acre, unchanged from last month.  Soybean supplies are 30 million bushels above last month’s forecast reflecting the production change.  With projections for exports and crush unchanged, 2013/14 soybean ending stocks are raised 30 million bushels to 295 million.  U.S. soybean supply and use projections for 2012/13 are unchanged.

The 2013/14 U.S. season-average soybean price is forecast at $9.75 to $11.75 per bushel, unchanged from last month.  Product prices are also unchanged, with soybean meal prices forecast at $290 to $330 per short ton and soybean oil prices forecast at 47 to 51 cents per pound.

Global oilseed production for 2013/14 is projected at 492.9 million tons, up 2.1 million from last month.  Higher forecasts for soybeans, rapeseed, cottonseed, and peanuts are only partly offset by reductions for sunflowerseed.  Global soybean production is projected at 285.9 million tons, up 0.6 million with gains for the United States, China, and Canada only partly offset by reductions for Argentina and Russia.  Argentina soybean production is reduced due to a lower harvested area estimate for both 2012/13 and 2013/14.  Rapeseed production for Canada is projected at 15 million tons, up 0.5 million based on increased area consistent with the latest survey results reported by Statistics Canada.  Other changes include increased rapeseed production for China and Russia, reduced sunflowerseed production for Ukraine, and increased cottonseed production for India.

WHEAT: 
Projected U.S. wheat supplies for 2013/14 are raised slightly this month with lower beginning stocks more than offset by higher production, both based on the latest survey-based estimates and forecasts.  Beginning stocks are reduced 27 million bushels as indicated by the June 1 stocks estimate reported in the June 28 Grain Stocks.  Production is forecast up 34 million bushels with lower forecast harvested area from the June 28 Acreage report more than offset by higher yields.  Production is raised 11 million bushels for Hard Red Winter and 30 million bushels for Soft Red Winter (SRW) wheat.  White Winter wheat is forecast down 7 million bushels.  For durum, a reduction in area is only partly offset by a higher yield with production forecast down 5 million bushels.  For other spring wheat, a reduction in area is more than offset by a higher yield forecast in today’s Crop Production report, adding 4 million bushels to this month’s production forecast.  July survey-based yield forecasts for durum and other spring wheat are up 1.6 bushels per acre from last month’s trend based projections.

Total U.S. wheat use for 2013/14 is raised 89 million bushels as lower expected domestic use is more than offset by higher projected exports.  Projected feed and residual disappearance is lowered 10 million bushels with stronger export demand, especially for SRW wheat.  Exports are projected 100 million bushels higher reflecting strong sales, particularly to China.  Ending stocks are projected down 83 million bushels.  At 576 million tons, stocks are expected to remain well above the 60-year low of 306 million in 2007/08.  The projected range for the 2013/14 season-average farm price is raised 20 cents on both ends to $6.45 to $7.75 per bushel.  At the $7.20-per-bushel midpoint, this would be down from the record $7.77 per bushel reported for 2012/13.

Global wheat supplies for 2013/14 are lowered 3.5 million tons reflecting lower projected beginning stocks as world production rises 1.9 million tons.  Higher 2012/13 feed use in China accounts for most of the reduction in beginning stocks with smaller increases in domestic consumption for Pakistan, Russia, and Iran adding to the decline in 2012/13 global carryout.  World production for 2013/14 is raised with increases for Australia, the European Union, and the United States offsetting a reduction for Kazakhstan.  Australia production is raised 1.0 million acres reflecting the latest government estimates for area and a slightly higher yield outlook as early season conditions have been especially favorable in the country’s southern and eastern growing areas.  Production for the European Union is raised 1.2 million tons, however, the addition of Croatia accounts for most of the increase.  Higher production prospects for Romania, Hungary, United Kingdom, and several smaller countries outweigh reductions for France, Ireland, and Spain.  Production is lowered 0.5 million tons for Kazakhstan with lower planted area reported by the Ministry of Agriculture.

Global wheat consumption for 2013/14 is raised 5.4 million tons mostly reflecting higher expected feeding in China.  Wheat consumption is also raised for India, Pakistan, Iran, and Japan, offsetting reductions for the European Union and the United States.  Global wheat trade is raised with a 5.0-million-ton increase in China imports.  A 0.5-million-ton increase in imports for Iran is offset by the same size reduction for the European Union.  World exports are raised 5.0 million tons with increases for Australia, the European Union, and the United States.  Exports are lowered for India and Kazakhstan.  World ending stocks for 2013/14 are projected 8.9 million tons lower.  At 172.4 million tons, stocks would be the lowest since 2008/09, but well above the 128.8 million in 2007/08.

LIVESTOCK, POULTRY, AND DAIRY: 
The forecast for 2013 red meat and poultry production is reduced from last month on lower beef, pork and turkey production.  Beef production is lowered as steer and heifer slaughter in the second quarter was lower than expected.  The lower second-quarter slaughter more than offsets higher forecast slaughter in the second half of the year.  The pork production forecast is reduced, largely on a reduction in fourth-quarter slaughter.  USDA’s Quarterly Hogs and Pigs report indicated that despite a record number of pigs per litter in March-May, the pig crop for that period was only fractionally above year-earlier.  Turkey production is lowered as hatchery data points toward sharper declines in second-half production.  The broiler production forecast is unchanged.  Egg production is raised on higher table and hatching egg production.  For 2014, the red meat and poultry production forecast is higher based on larger pork production.  Pork production increases are driven primarily by gains in pigs per liter as producers have indicated intentions to only gradually expand farrowings in the second half of 2013.   

Beef and pork exports for 2013 and 2014 are unchanged.  The beef import forecast is lowered for 2013 and 2014 due largely to expected tight supplies in Oceania.  Pork imports are raised slightly for 2013 and 2014.  Broiler and turkey exports for 2013 are raised on the current strength of trade.  Forecasts for 2014 are unchanged. 

The cattle price forecast for 2013 is lowered from last month as prices have weakened recently.  The 2014 price forecast is lowered for the first half of the year.  Hog prices are raised as demand strength carries from 2013 into 2014, but price gains will be limited by higher production.  Broiler prices are higher as strong demand is expected to support prices in 2014.  Turkey prices are down slightly for 2013 while 2014 is unchanged.  Egg prices are raised for 2013 on relatively strong demand.

The 2013 milk production forecast is raised from last month based on growth in milk production to date.  The milk production forecast for 2014 is unchanged from last month.  Despite weaker forecast milk prices, forage supplies and feeding margins will likely continue to support modest gains in milk production.

The fat-basis import forecast for 2013 is unchanged, but lowered on a skim-solid basis reflecting slower-than-expected imports of milk protein concentrates.  The 2013 fat-basis export forecast is higher on continued robust exports of cheese.  Skim-solid exports for 2013 are higher as nonfat dry milk (NDM) shipments are expected to remain strong.  The United States has gained in export markets typically served by the European Union which has experienced a slowdown in production.  Export forecasts for 2014 are unchanged.

Fat and skim-solid basis ending stock forecasts for 2013 are raised as stocks of butter and cheese have remained large.  Ending stock forecasts for 2014 are raised as well. 

Cheese and butter prices are forecast lower for 2013 on larger supplies.  Prices for 2014 are lowered as the larger carry-in stocks overhang the market.  The 2013 NDM price forecast is raised from last month on strong export demand, but the forecast for 2014 is unchanged.  The whey price forecasts for both 2013 and 2014 are unchanged from last month.  The Class III price forecasts are lowered from last month in line with lower product prices.  The Class IV price forecast is unchanged for 2013 as lower butter prices are largely offset by higher NDM prices.  However, the Class IV price is lowered for 2014, reflecting lower butter prices.  The 2013 all milk price is forecast at $19.50 to $19.80 and the price for 2014 is $18.70 to $19.70 per cwt.



Rabo AgriFinance Adds O’Rourke to Nebraska Team

Rabo AgriFinance is pleased to announce the addition of Larry O’Rourke to its agriculture financing team. O’Rourke has joined the company as a senior relationship manager, delivering the resources of Rabo AgriFinance to farmers, ranchers and agribusinesses throughout eastern Nebraska.

Rabo AgriFinance is a provider of capital and financial solutions to U.S. agricultural producers and agri-businesses. O’Rourke will provide additional financial expertise to the Nebraska team of Rabo AgriFinance experts.

“Rabo AgriFinance has experienced tremendous growth in the United States over the past decade. Adding Larry to the team enhances our services as we seek to become the premier agriculture lender throughout Nebraska and the country,” said Senior Vice President and Plains Territory Managing Director Van Dewey. “We look to Larry to focus on providing the right growth strategies for Rabo AgriFinance clients through sound financial and risk management strategies.”

O’Rourke comes to Rabo AgriFinance with 15 years of agriculture banking experience eight of those years serving as a lender and relationship manager. In addition to his banking experience, O’Rourke has farmed full-time for 25 years and continues to grow crops and raise cattle on his family’s farm in Southwest Iowa.

O’Rourke joins the Rabo AgriFinance network of relationship managers, crop insurance and risk management specialists who understand the unique needs of Midwest agriculture, including cow-calf and stocker calf operations and row crops.

“At Rabo AgriFinance, we take pride in our industry knowledge and the superior service that results from that intelligence,” said Dewey. “Larry comes from this region, and through his time as a producer and agriculture lender understands the complexities of agriculture finance and risk management.”

In his new role, O’Rourke will be responsible for marketing loans and related financial services to premier agriculture producers. He can be reached at the Rabo AgriFinance Kearney office, located at 4011 7th Ave., Kearney, or by phone at (314)317-8000. O’Rourke will move to the company’s new Omaha office upon its completion this summer.

Rabo AgriFinance is a large-capacity lender with the ability and expertise to handle large-sized operations and all complexities of credit. A global team of analysts provide a competitive edge with insights on industry trends. And a comprehensive portfolio of services includes the right tools for producers to prepare for and take advantage of market opportunities. Whether it’s financial lending, crop insurance or risk management support, Rabo AgriFinance experts guide customers on paths toward greater success.  



Iowa State Wins Second Place in Dairy Research New Product Competition

The Dairy Research Institute®, established under the leadership of America’s dairy farmers, announced the winners of its second annual New Product Competition. This year’s competition challenged undergraduate and graduate student teams to develop a new dairy-based product for the morning meal occasion. The first-, second- and third-place winners were recognized during a ceremony at the 2013 American Dairy Science Association (ADSA) Joint Annual Meeting in Indianapolis on July 9, 2013. The winning entries leveraged essential consumer marketplace trends by highlighting the importance of overall convenience, functional health benefits and diverse flavor options to help overcome the breakfast barrier.

“Recent consumer research conducted by the Innovation Center for U.S. Dairy® indicates approximately 42 million people skip breakfast during a typical morning, primarily due to a busy schedule, or lack of time or interest in currently available breakfast options,” said Bill Graves, senior vice president, Dairy Research Institute. “The innovative products submitted by the top three winners take advantage of this tremendous opportunity for dairy and dairy-based foods within the morning meal market. These products feature the latest trends in product development and leverage dairy’s valuable nutrition profile while delivering a delicious breakfast option that meets consumers’ morning convenience needs and flavor preferences.”

In addition to developing a concept and formula for their new product submissions, student teams also identified the requirements to manufacture and market their dairy-based breakfast products. The judging panel — composed of experts from the dairy industry, dairy producers, media and members of the Dairy Research Institute — selected the winners based on the merits of a final report, presentation and the product itself.

“We have the best and brightest students gaining practical experience with dairy products and ingredients through the New Product Competition,” said Stephen Maddox, a California dairy producer and judge for the Dairy Research Institute New Product Competition. “It is exciting for the dairy industry that these future food scientists will take the skills developed through this competition into the marketplace. I look forward to seeing the innovative dairy foods and beverages they develop throughout their careers.”

Winners of the 2013 New Product Competition are:
First place: Mooofins, Pennsylvania State University
Mooofins are a dairy-based, quiche-like muffin developed for adults seeking a high-protein, on-the-go breakfast item. Flavors — including blueberry sausage, maple bacon Cheddar and bell pepper mushroom — build on the rich dairy notes, meeting an important consumer need for favorite tastes in dairy products.1 Mooofins are an excellent source of protein (15 g per serving) and an excellent source of calcium (250 mg per serving). They are packed with dairy, including cottage cheese, yogurt, milk, whey and nonfat dried milk, which all together make up 70 percent of total ingredients used in the formulation. Yogurt and whey protein concentrate replace eggs in the formulation to maintain a moist, delicate and fluffy product that consumers are sure to love.

Second place: DayBreakers, Iowa State University
DayBreakers put an American twist on gulabjamun, a fried Indian food providing a sweet morning option that is easy to prepare. Similar in appearance and flavor to French toast sticks, DayBreakers are an excellent source of dairy protein, containing 17 g of protein per serving, and are an excellent source of calcium, as well, with 310 mg per serving. Developed for the adult population trying to consume more protein in their diets, DayBreakers include milk protein concentrate with 80 percent protein (MPC 80) as well as nonfat dried milk (NFDM). DayBreakers are formulated gluten-free to appeal to the millions of Americans on a gluten-restricted diet.

Third place: Whey-Go, Ohio State University
A microwavable, easy-to-eat product made of a hearty egg, bacon and cheese scramble inside a crispy waffle crust, Whey-Go meets the needs of adults looking for a convenient breakfast option to satisfy their morning hunger. The combination of morning favorites is 51 percent dairy ingredients, including fat-free milk, low-fat American and Swiss cheeses, whey protein and unsalted butter. Whey-Go is an excellent source of protein with 23 g per serving, which includes 14 g of dairy protein from the fat-free milk, low-fat cheeses and whey protein isolate. Each serving also is an excellent source of calcium, providing 50 percent of the Daily Value, or 500 mg.

Three additional teams were selected as finalists:
-  Early Qurd (University of Wisconsin-Madison) — A tart cherry- and vanilla-flavored low-fat soft cheese, building on the popularity of Greek yogurt.
-  Miss Muffet Bars (Louisiana State) — A ready-to-eat, blueberry-flavored, creamy cottage cheese- and whey protein-filled bar coated in dark chocolate.
-  Pleion (University of Wisconsin-Madison) — A Greek yogurt-based bar wrapped in a thin layer of chocolate and coated with lightly salted granola.

The winning teams will receive a combined $16,000 in cash prizes, including $8,000 for first place, $5,000 for second place and $3,000 for third place.

The U.S. Dairy Export Council also will highlight the competition and winners at the 2013 Institute of Food Technologists (IFT) Annual Meeting and Food Expo, July 14-16 in Chicago.

This fall, the Dairy Research Institute plans to announce guidelines for the 2013-2014 competition, which will focus on meeting the needs of the large segment of aging Baby Boomers. In its inaugural year, the Dairy Research Institute New Product Competition tasked students with developing an innovative dairy beverage that leveraged Innovation Center consumer research on milk’s competitive beverage set.

To learn more about the Dairy Research Institute New Product Competition, including eligibility guidelines and judging criteria, visit USDairy.com/NewProductCompetition.



USDA EXTENDS ACREAGE REPORTING DEADLINE FOR FSA TO AUG. 2, 2013
Risk Management Deadline Remains Unchanged

USDA Farm Service Agency (FSA) Administrator Juan M. Garcia today announced an extension of the FSA acreage reporting deadline. Farmers and landowners have an additional 18 calendar days to submit their annual report of acreage to their local FSA county office with the deadline extended from Monday, July 15, 2013, to Friday, Aug. 2, 2013. Only the FSA reporting deadline has been extended. The acreage reporting requirement for crop insurance has not changed and remains July 15.

“We want to ensure our producers maintain their program benefits by filing their reports accurately and in a timely manner for all crops and land uses, including prevented and failed acreage,” said Administrator Garcia.

Accurate acreage reports are necessary to determine and maintain eligibility for various programs, such as the Direct and Counter-cyclical Program (DCP); the Average Crop Revenue Election Program (ACRE); the Conservation Reserve Program (CRP); and the Non-insured Crop Disaster Assistant Program (NAP).

Acreage reports for FSA are considered timely this year when filed at the county office by the new applicable final crop reporting deadline of Aug. 2, 2013. Producers should contact their county FSA office if they are uncertain about reporting deadlines.

While FSA is able to extend its deadline, Risk Management Agency (RMA) Administrator Brandon Willis emphasized today that RMA’s acreage reporting date remains July 15, 2013, for most spring planted crops in the country. Farmers are reminded to report any loss within 72 hours of discovery to their insurance company. Farmers must report prevented planting acreage to their insurance company, in writing, within 15 calendar days after the final planting date. Losses must be reported and an insurance adjuster must view and release the crop before the crop is destroyed. Farmers are also reminded to contact their insurance agent if they have any questions about coverage, prevented planting, or for reporting and processing a claim.

Crop insurance is sold and delivered solely through private crop insurance agents. Contact a local crop insurance agent for more information about the program. A list of crop insurance agents is available at all USDA Service Centers or on the RMA web site at www.rma.usda.gov/tools/agents/.

Producers also should visit their USDA Service Center to complete acreage reporting for FSA. For questions on this or any FSA program, producers should contact their FSA county office or seek information online at www.fsa.usda.gov.



CHS reports fiscal 2013 nine-month earnings of $869.6 million

CHS Inc., the nation's leading farmer-owned cooperative and a global energy, grains and foods company, today reported earnings of $869.6 million through the third quarter of fiscal 2013.

The earnings attributable to CHS of $869.6 million for the period (Sept. 1, 2012 – May 31, 2013) represent a decline of about 3 percent from the $899.7 million reported for the first three quarters of fiscal 2012. Revenues for nine months were $33.5 billion, up 13 percent from $29.6 billion for the same period a year ago, reflecting increased year-to-date average prices and grain sales volumes.

Earnings for the third quarter (March 1 – May 31, 2013) were $250.8 million, down from $405.1 million for the same period in fiscal 2012. The decline was largely attributed to delayed spring planting in many areas which affected crop inputs movement, lower grain exports resulting from a reduced 2012 U.S. harvest and scheduled maintenance at the CHS Laurel, Mont., refinery. Revenues for the quarter were $11.9 billion, compared with $11.0 billion for the same three-month period in fiscal 2012.

Year-to-date, Energy segment earnings decreased slightly due to lower margins in  refined fuels partially offset by strong performance in propane, lubricants and transportation operations. Earnings for the CHS Ag segment declined through the third quarter primarily due to lower margins resulting from reduced grain exports and the late spring planting season which affected the company's wholesale crop nutrients businesses. Earnings also declined for CHS local Country Operations retail businesses as the late, wet spring reduced fertilizer movement.

CHS reports results for its business services operations and its two food processing-related joint ventures under the Corporate and Other category which recorded improved profitability through the third quarter of fiscal 2013. Earnings increased largely due to improved performance by the company's Business Solutions area, as well as its ownership in Ventura Foods, LLC, the company's packaged food joint venture, and Horizon Milling, a wheat milling joint venture.



Tractor & Combine Sales Up During June

The Association of Equipment Manufacturers reports that the sale of all tractors in the U.S. for June, 2013, were up 9% compared to the same month last year.  For the month, two-wheel drive smaller tractors (under 40 HP) were up 6% from last year, while 40 & under 100 HP were up 6%. Sales of 2-wheel drive 100+ HP were up 28%, while 4-wheel drive tractors were up 6%.  Combine sales were up 30% for the month.

For the six months in 2013, a total of 104,332 tractors were sold which compares to 93,377 sold thru June, 2012, representing an 12% increase year to date.  Two-wheel drive smaller tractors (under 40 HP) are up 11% 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 13%.  Sales of combines for the first six months totaled 4,590, an increase of 47% over the same period in 2012.



Farmers, Handlers Reminded to Take Stewardship Precautions With Treated Seed

The North American Export Grain Association is reminding farmers to take precautions necessary to avoid mixing treated seed with commodity grain supplies. U.S. law prohibits the intentional addition of treated seed to commodities, and seed stewardship guidelines are in place to prevent their accidental introduction. Maintaining the stellar U.S. reputation for appropriately managing treated seeds and other crop protection products is vital to the overall satisfaction of customers in the U.S. and export destinations. A guide for the management of treated seed is available free to farmers and others at http://seed-treatment-guide.com/.



Meat Expert Praises New Names

Will the new names for familiar pork cuts revealed in April make it easier for consumers to take advantage of pork’s great taste and value? Yes, said Craig Watkins, meat and seafood director for Remke Markets and Biggs supermarkets.

“Purchasing meat can be confusing for consumers, and I think the new pork names are the right move,” said Watkins. “While many consumers mainly buy pork based on its general appearance and color, the specific name is critical to shoppers who have a recipe and are looking for a specific pork cut in the ingredient list.”

Watkins said the name changes are especially useful for younger consumers who may be unfamiliar with cooking.

“When people hear about a porterhouse pork chop (formerly the bone-in pork loin), they can relate it to a porterhouse steak. Not only does this suggest that cut is good for grilling, but it’s tender and high-quality,” said Watkins.

Pork sales currently make up 11 percent of Remke and Biggs’ meat sales, second to beef at 14 percent and ground beef (another 14 percent), but ahead of chicken.

“Pork sales have increased from a year ago at this time when they were less than 10 percent. Pork offers great value, and we’ve been featuring pork on our front-page ads in 2013,” Watkins said.

The new meat cut names have been a feature of the summer “Chop Swap!” advertising campaign. As of July 10, more than 102,000 $1-off coupons for fresh pork have been issued. National radio ads will continue to run through July 21 and the online ad with coupon offer will end on July 31.



USGC Urges Regulatory Harmonization in T-TIP Negotiations

Participating in a U.S.-EU stakeholder event as part of the initiation of the Transatlantic Trade and Investment Partnership (T-TIP) negotiations, the U.S. Grains Council urged that regulatory harmonization be a top priority in the agricultural sector.

A growing global population of 9 billion people by mid-century will require a doubling of the current level of food production. This will pose enormous food security challenges for consumers – as well as production challenges for producers around the world. Producers must increase productivity and continue to do so on a sustainable basis. Given the many other increasing pressures on land and water resources, agriculture will clearly have to grow more with less. The wider deployment of modern farming practices, including agricultural biotechnology is essential.

Countries must also work together to remove regulatory impediments to the timely review and approval of genetically modified events. The EU regulatory system is increasingly slow and is resulting in an ever increasing backlog of events. It lacks a workable low level presence policy to address events under review but not yet approved, and it requires a redundant risk assessment on stacked events of which the components were previously approved. Thus, the ability to respond to market conditions and opportunities to export U.S. feed grains to the EU continues to be severely constrained and unpredictable at best. Increased trade disruptions reduce U.S. feed grain exports and result in increased costs for our customers.

The Council believes it is important that these regulatory challenges be addressed as an integral part of the T-TIP negotiations. The United States and the European Union, two of the largest global economies, are seeking a systematic approach to expanding trade. Because T-TIP has been conceived as an ambitious, comprehensive, and high-standard trade and investment agreement, negotiators should seek to develop regulatory convergence and harmonization on biotechnology regulations and other sanitary and phytosanitary measures in order to expand trade and enhance global food security.



South African Team Surveys HRW Crop in Kansas

A South African trade team is visiting Kansas this week to obtain a firsthand glimpse of the 2013 hard red winter (HRW) crop. The team arrived in Kansas on July 6 and has spent the week visiting with wheat farmers, researchers, inspectors, traders and baking experts.

USW collaborated with Kansas Wheat to organize the team, which included two representatives from Premier Foods, who markets a number of the country's top flour and corn meal brands, and one member of the OLAM trading group. USW Regional Program/Information Systems Coordinator Domenique De Oliveira, based in the USW Cape Town Office, accompanied the team.

“These team members are well recognized in the South African milling industry for their evaluations of imported wheat quality,” said USW Regional Vice President for Sub-Saharan Africa Ed Wiese. “The information gained from this farm to inspection visit will be very useful in their discussions for future purchases of U.S. wheat.”

South Africa is the largest wheat producer in Sub-Saharan Africa, but imports between 1.2 and 1.7 million metric tons of wheat each year. Importers annually assess the quality and price of local and world wheat crops and purchase accordingly from multiple origins.