Wednesday August 28 Ag News

Late Corn Planting Could Lead to Frost Losses in Some Areas

            Late corn planting in some areas because of wet field conditions last spring could lead to reduced yields if an early frost hits this fall, University of Nebraska-Lincoln Extension experts say.

            Overall, Nebraska's corn crop is looking strong, and for farmers who planted around the average time, in mid-May, yields in irrigated fields are projected to be up 5 to 10 percent over the 30-year average, said Jenny Rees, UNL Extension educator.

            But some farmers didn't get into the fields until after Memorial Day because of wet conditions. Expected yields in those fields could be down as much as 13 percent from the 30-year averages, thanks to late-season lower temperatures and a dramatic increase in the probability of frost damage before the crop matures.

            The projections were made using UNL's Hybrid-Maize model, a computer program that simulates the growth of a corn crop, and weather data from the High Plains Regional.

            Yields for rainfed fields are harder to project, but the model simulated yields where corn was planted on the average planting date to be lower than an average year for most areas, but close to or higher than a normal yield in the northeast, thanks to above-average growing season rains. For fields planted around June 1, simulated yields are also lower than an average year for most locations.



Iowa Farmers invited to participate in Soybean Sustainability Program

Soybean farmers are encouraged to learn more about a pilot program that procures sustainable soybeans for the retail market Thursday, Aug. 29, beginning at 9 a.m. at the Iowa FFA Enrichment Center in Ankeny. 

The Soybean Sustainability Program, introduced earlier this year, is a cooperative effort of Unilever, Archer Daniels Midland Company (ADM) and ISA. Participating farmers document responsible farming practices already being utilized to raise soybeans including precision agriculture, no-till and other conservation practices. In return, farmers receive a financial incentive when their soybeans are sold.

Attendees will learn more about the program and have an opportunity to enroll with the assistance of qualified experts. A growing number of farmers are enrolling in the program, but more are needed to reach the initial goal of 50.

“The program recognizes our commitment as farmers to providing quality soybeans while embracing responsible farming practices,” says ISA President Mark Jackson, who farms near Rose Hill and is enrolled in the program. “Its success depends on our involvement of soybean farmers.”

Qualified soybeans must be delivered into the ADM Des Moines supply chain, which includes the ADM processing plant in Des Moines, an ADM grain elevator or a participating commercial grain dealer.  Farmers must contact ADM or the local elevator with questions regarding participation.

 Unilever sources all its soybean oil to make Hellmann’s Mayonnaise from the plant. Farmers can contact ADM Merchandiser Maree Deventer at (515) 263-3266 or maree.Deventer@adm.com to learn more about participation premiums and delivery options.

Unilever --- and consumers, they believe --- want to understand where their food is coming from and how it is produced. Company executives recently toured Jackson’s farm to see first-hand how sustainable soybeans are being raised.

“It’s all about passion to make quality products,” said Brian Orlando, Unilever senior marketing director for dressings in the United States. “The more you know how they’re made, the better you can make them. Consumers want to know, as well.”

The FFA Enrichment Center is located at 1055 SW Prairie Trail Parkway in Ankeny. To learn more about ISA, go to www.iasoybeans.com. 



Net Farm Income Forecast To Increase 6 Percent in 2013
(USDA Economic Research Service)
Net farm income is forecast to be $120.6 billion in 2013, up 6 percent from 2012’s estimate of $113.8 billion. After adjusting for inflation, 2013’s net farm income is expected to be the second highest since 1973. Net cash income is forecast at $120.8 billion, down 10 percent from 2012 (see table on farm income indicators PDF icon (16x16)). Not all crops produced in 2013 will be sold by the end of the 2013 calendar year; we anticipate substantial increases in the annual quantity and value of crop inventories, particularly for corn. As a result, crop cash receipts are expected to decline 5.5 percent in 2013. The projected increase in livestock receipts (4.9 percent) is not sufficient to offset increasing expenses. Nevertheless, after adjusting for inflation, net cash income is expected to remain high by historical standards.
 
Highlights
-    Net farm income is forecast to increase 6 percent, to $120.6 billion in 2013, due largely to expectations of record crop production. This would be the second highest inflation-adjusted amount since 1973, with only 2011’s inflation-adjusted income being higher.
-    Net cash income is forecast to decline by more than 10 percent from 2012. Unlike net farm income, net cash income does not account for capital consumption, change in inventories, and nonmoney income. Substantial year-end crop inventories buoying the 2013 net farm income forecast are not reflected in net cash income.
-   The value of livestock production is expected to increase 5.2 percent in 2013, with receipts increasing nearly 4.9 percent. The projected gains result mostly from expectations of higher prices. Crop receipts are forecast to decline by $12.4 billion (5.5 percent) in 2013, which would be the first decline since 2009. Nonetheless, the value of crop production is expected to rise 2.7 percent in 2013, with increases boosting anticipated year-end crop inventories.
-    At $354.2 billion, total expenses are projected to increase $13.1 billion in 2013, continuing a string of large year-to-year increases since 2010. In both nominal and inflation-adjusted dollars, 2013 production expenses are expected to be the highest on record.
-    Increases in farm asset values are expected to continue to exceed increases in farm debt, leading to expectations of another new record high for farm equity.
-    Farm financial risk indicators are expected to continue at historically low levels.

Value of Both Crop and Livestock Production Forecast Up in 2013
The value of crop production (the sum of cash receipts, value of inventory adjustment, and home consumption) is expected to rise in 2013 despite an anticipated $12.4-billion decline in 2013 crop cash receipts. This paradox is explained by a very large 2012-13 increase ($18.3 billion) predicted in the value of inventory adjustment for crops, led by corn and soybeans. See table on quantity and value of annual inventory change for selected crops and livestock PDF icon (16x16). The large increases in end-of-2013 inventories for both commodities more than offset the negative impact of lower expected prices. (Both corn and soybeans enjoyed record high prices in 2012.) 

Corn production, reflecting the impact of the drought, fell almost 13 percent in 2012 to its lowest level since 2006. Soybean production dipped 2.5 percent in 2012 to its lowest level since 2008. Higher prices and production shortfalls made it attractive to reduce inventories in 2012. A return to normal weather in 2013 should improve yields and restore corn and soybean production to more normal levels, sold at reduced prices.

Expected lower prices in 2013 mean cash receipts are forecast to decline significantly from 2012 for four major commodities: corn, soybeans, cotton (lint and seed), and peanuts.

Lower corn receipts reflect an anticipated fall in 2013’s average price ($5.85 per bushel) from its record-high price in 2012. The forecast price decline more than offsets an anticipated increase in the quantity of corn sold in 2013, with bushels sold expected to be the third highest on record.

While U.S. soybean production and use are both expected to increase in marketing year 2013, expectations for lower soybean receipts reflect lower prices more than offsetting a slight increase in quantities sold. Value of peanut production is expected to drop 38 percent in 2013, reflecting both lower prices and quantities sold.

Food grain receipts are expected to remain relatively stable. A forecast decline in the price of wheat in 2013 will be mostly offset by an increase in quantity sold. Rice receipts are expected to remain stable due to higher prices and lower sales.

Cotton receipts (lint and seed) are expected to decline in 2013 from their record 2012 level, reflecting large declines in both supply of and demand for cotton. A decline in cottonseed receipts will be mostly offset by an expected rise in open-market sales of cotton lint. The large decline predicted in cotton cash receipts from 2012 to 2013 is almost entirely due to a large decline in receipts from placements and redemptions of lint with the Commodity Credit Corporation (CCC), especially in the 4th quarter of 2012. U.S. cotton sales are especially dependent on world demand for U.S. cotton, which has been declining sharply and reducing U.S. cotton exports.    

Vegetable and melon receipts are expected up 17 percent in 2013, mainly due to higher prices (excluding dry beans).  Receipts for potatoes are expected to increase due to increased sales and a higher average price in 2013. While sales of dry beans are expected to increase, a forecast price decline leads to lower dry bean receipts. Large production gains are expected for peaches, prunes, and plums in 2013, with more modest increases expected for apples, pears, strawberries, grapefruit, and lemons. Large production declines are forecast for avocados and sweet cherries, with smaller but substantial declines in the production of oranges and almonds. The overall average price index for fruits and nuts is predicted to decline about 1.5 percent in 2013.

Value of Livestock Production Forecast Up in 2013
The value of livestock, dairy, and poultry production is expected to increase over 5 percent in 2013, reflecting large gains in broiler and milk sales. Other livestock categories are forecast to change only slightly from their 2012 levels. The annual average price for broilers is expected to rise almost 11 cents per pound (22 percent) in 2013. Broiler receipts will also benefit from a small expected increase in volume sold. Broiler exports are expected to increase almost 3 percent.

Milk receipts in 2013 are forecast to exceed the previous high set in 2011. The annual price of milk is expected to increase over $1 per cwt (6 percent) from 2012; at $19.70 per cwt, it would be second highest on record. Milk production is expected to be about 1 percent above 2012 and 3 percent above 2011. U.S. milk exports are expected to increase 17 percent in 2013.

Farm Production Expenses Continue To Climb
The projected increase of $13.1 billion (3.8 percent) in total expenses in 2013 continues a string of recent annual increases, interrupted only in 2009, as expenses are forecast to reach another nominal record-high, at $354.2 billion. The expected rise in 2013 is less than half of the $28.5-billion (9.1-percent) rise in 2012 and much less than the $25.1-billion (8.7-percent) rise in 2011. Total expenses in 2013 will amount to 75 percent of gross farm income, less than in 2012 but more than in 2011. In inflation-adjusted dollars, 2013 production expenses are also a record high.

Since 2003, expenses for both farm-origin and manufactured inputs have increased 106 percent, while other operating and overhead expenses have increased 60 percent. Farm-origin expenses (such as feed and purchased livestock) and those for manufactured inputs (such as chemical fertilizers and pesticides) now constitute 48 percent of total production expenses, up from 42 percent in 2003. In contrast with recent trends, these expenses are expected to rise less than other operating and overhead expenses in 2013.

A steady increase in prices rather than higher quantities of inputs is the biggest factor in rising production expenses since 2003.

The two major livestock expenses—feed and livestock purchases—are projected to rise $2.6 billion (3.1 percent) in 2013. Feed expenses are slated to rise $2.1 billion (3.6 percent) because feed prices will remain relatively high through the first 9 months of 2013. Feed costs are beginning to subside, however. Even though grain prices remain high, the prices-paid index for complete feeds has fallen 10.0 percent since peaking in September 2012. Feed costs are anticipated to decline because of the projected drop of nearly 30 percent in the price of corn and 16 percent in the price of soybeans between the 3rd and 4th quarters of 2013.

Livestock and poultry purchases are forecast to rise $431 million (1.8 percent) in 2013, a lesser increase than during the previous 3 years. Cattle feeding margins have been negative since May 2011 due primarily to high feed costs, and reduced beef production has lowered the number of cattle on feed. As a result, the price for Oklahoma City feeder steers has fallen since 2012 and is forecast to sink further in the 3rd quarter of 2013 before a seasonal rebound in the 4th quarter. Also pressuring steer prices is the large number of milk cows being slaughtered because of drought in the West and Southwest. These factors are prompting farmers to hold their steers until they have grown to heavier weights, despite high feed costs. Heavier-weight steers are attractive to feedlots because it means that they will have to spend less on feed to bring them to market weight.

Despite a projected 9.0-percent increase in crop output in 2013, the principal crop-related expenses are also expected to rise more slowly than in 2012. Together, they are forecast to increase 1.3 percent, with seed and pesticide expenses rising and fertilizer expenses declining. During the last 2 years, crop-related expenses increased $14.5 billion (30 percent), of which fertilizer accounted for $7.5 billion. One factor determining forecast crop input expenses—acres of field crops planted—is thought to have fallen marginally in 2013.

The upward movement in prices paid for crop inputs was the major reason for increasing expenses during the previous 2 years. In particular, the fertilizer prices-paid index rose 30 percent during 2011. In 2013, the prices-paid index for seeds is forecast to rise 5.3 percent and for pesticides 1.5 percent. However, the fertilizer price index is expected to decline 1.0 percent, after leveling off in 2012. Only one of eight major fertilizers has risen in price since June 2012, partly because the price of natural gas, a major material in nitrogen fertilizers, has fallen over the last 2 years. Natural gas prices are rising in 2013, but that turnaround is not likely to immediately translate into higher fertilizer prices.

The fuels/oils expense in 2012 was flat because of a decline in Refiner Acquisition Cost (RAC). In 2013, fuel and oil expenses are forecast to decrease $190 million (1.2 percent) due to the slight declines in RAC and planted acres.

Payments to Stakeholders To Rise Slightly More Than Net Value Added in 2013
Net value added is distributed among stakeholders and equity owners. Stakeholders provide the hired labor, leased capital, and rental land used in agricultural production. Since stakeholders do not own what is produced, they do not share in the risks involved in producing highly variable agricultural output. Subsequently, the payments that stakeholders receive are more stable over time than net returns to the owners of agricultural production. Payments to stakeholders can move in a different direction than net value added, as occurred in 2009 and 2011. In 2013, payments to stakeholders are slated to rise $3.9 billion (6.8 percent). Since net value added is rising at nearly the same rate (6.2 percent), the share of net value added going to stakeholders is expected to remain largely unchanged in 2013, at 34 percent.

Employee compensation (hired labor) is expected to increase slightly less than $2.2 billion (8.1 percent) in 2013. Combined with the $4.3-billion increase in hired labor in 2012, it will have risen $6.5 billion (29.0 percent) in the last 2 years. Total labor expenses (including contract labor) are expected to climb $2.1 billion (6.9 percent) in 2013 due to a 1.3-percent growth in wage rates and a 5.5-percent rise in total output. Reductions in vegetable and fruit/nut production should result in a small decline in contract labor in 2013, slightly offsetting the anticipated increase in hired labor expenses. Output on greenhouse/nursery and dairy farms—farms that typically employ the most hired laborers—will likely be up less than 1 percent. However, the production of grains and oilseeds is expected to use much more hired labor than usual in 2013.

Net rent to nonoperator landlords is forecast to rise $1.3 billion (8.5 percent) in 2013, after a $3.0-billion increase in 2012, in line with a smaller increase in crop value of production. Cash rent is forecast up 7.3 percent, the result of a 7.5-percent increase in land values and a minute decrease in planted acreage. Share rent is forecast up 2.7 percent, the same as the increase in crop value of production. Government payments and crop insurance indemnities received by landlords are a consistent proportion of sectorwide payments and indemnities, so they usually vary as sectorwide outlays do. Landlord government payments and crop insurance indemnities are expected to be 6.7 percent and 32 percent higher in 2013, respectively.

Total interest expenses in 2013 are forecast to increase around $500 million (2.9 percent) as nonreal estate interest expenses climb $600 million (9.8 percent) and real estate interest expenses decline $100 million (1.2 percent). Debt and interest rates are discussed in the Assets, Debt, and Wealth section.

Government Payments Forecast To Increase Slightly in 2013
Government payments paid directly to producers are expected to total $11.1 billion in 2013, representing a 4.4-percent increase from 2012 (see table on government payments PDF icon (16x16)). Fixed direct payments under the Direct and Countercyclical Program and the Average Crop Revenue Election Program (ACRE) are forecast at $4.39 billion for 2013, down 6.3 percent from 2012. The decline is attributed both to a reduction in payments because of sequestration and the likelihood that more producers will exceed statutory limits on adjusted gross income.

Strong crop prices in 2013 are expected to result in few commodity program payments based on price.  Farmers are currently expected to receive $30 million in ACRE payments this year, covering final 2011-crop ACRE payments for rice and 2012-crop ACRE payments for the other commodities. ACRE payments in 2013 could change depending on final 2012-13 market-year average prices.

The Milk Income Loss Contract (MILC) program was reinstituted in the Farm Act extension under the American Taxpayer Relief Act, signed by the President in January 2013. This program compensates dairy producers when domestic milk prices fall below a specified benchmark price. Beginning in September 2013, the program’s payment rate and annual volume of covered milk production are reduced and the feed adjustment factor increased. As a result, dairy producers are expected to receive $225 million in MILC payments in 2013, down 50 percent from 2012.

Tobacco farmers and quota holders are expected to receive $643 million from the Tobacco Transition Payment Program (TTPP) in 2013. Payments reported here include both CCC payments and lump-sum payments. Begun in 2005, this program provides annual payments over a 10-year period to eligible quota holders and producers of tobacco. The TTPP will expire after making final payments in 2014.

Conservation program payments include payments to producers from all conservation programs operated by USDA’s Farm Service Agency and Natural Resources Conservation Service. Estimated conservation payments of $3.8 billion in 2013 are up slightly from 2012.

Supplemental and Ad Hoc Disaster Assistance payments are forecast to be $2.02 billion in 2013, an 84-percent increase from 2012 levels. Expected payments from the Noninsured Assistance Program (NAP) and Supplemental Revenue Assistance Program (SURE) account for almost 97 percent of these 2013 payments. NAP payments of $280 million are expected to be made to livestock and specialty crop producers for which no commodity insurance program is available. Under the SURE program, the bulk of the expected $1.68 billion paid to producers cover the commodity losses incurred during the 2011 crop year, representing a 146-percent increase over 2012’s SURE payments. Heaviest hit by the 2011 drought were producers in Texas, North Dakota, Kansas, Oklahoma, and Missouri, who collectively are expected to receive $1.22 billion in SURE payments in 2013.

The Farm Act extension only covers disaster relief payments for covered losses incurred prior to October 1, 2011. Thus, drought-related commodity and livestock losses incurred more recently are not covered. The time lag for receiving a SURE payment is primarily due to the fact that the crop year is defined by a commodity's harvest cycle, such that it often overlaps two calendar years and SURE payments are made after a current crop year ends.

Change in February’s Forecast for Corn Leads to Reduced Expectation for 2013 Net Farm Income
USDA’s August forecast for 2013 shows a decline of $7.6 billion (6.3 percent) in net farm income from its February forecast. Underlying the adjustment are expectations of a drop in the value of crop production; an increase in payments to stakeholders and for manufactured inputs; and a decline in machine hire and custom work revenues. Offsetting these downward revisions were expectations of an increase in the value of livestock production and other farm income, combined with declines in inputs purchased from the farm sector, particularly feed.

The largest change in dollar-value terms since February’s forecast was a $9.5-billion downward revision in feed crop cash receipts, mostly for corn (down $8.1 billion). Forecast receipts from miscellaneous livestock were lowered almost $1 billion. The value of annual change in crop inventories was reduced almost $5 billion from February’s expectations. Machine hire and custom work revenues were lowered almost 13 percent. On the expenditure side, payments to stakeholders as well as forecast expenditures on pesticides, fertilizer/lime, purchased livestock/poultry, and seed are higher than February’s forecast.

Cash receipt forecasts were revised upward for vegetables and melons, broilers, all other crops, eggs, and milk.   The 2013 forecast for other farm income was raised over $1 billion, driven mostly by payment of 2012 crop insurance indemnities slipping into 2013. Forecast feed purchases were lowered almost $6.5 billion from February’s forecast. Marketing, storage, transportation, and miscellaneous expenditures were revised downward by over $2 billion from February’s forecast.
 
Median Farm Household Income Forecast Lower in 2013
Projected median total farm household income is expected to decrease by 2.5 percent in 2013, to $66,989. Given the broad USDA definition of a farm, many farms are not profitable even in the best farm income years. Despite high prices for many crops, 2012 was no exception, with a median farm income of -$1,453. With sectorwide net cash farm income forecast to decline in 2013, median farm income is expected to decline to -$2,300. Most farm households earn all of their income from off-farm sources—median off-farm income is projected to increase by 1.8 percent in 2013, to $60,659. (Note: Because they are based on unique distributions, median total income will generally not equal the sum of median off-farm and median farm income.)



Statement by Agriculture Secretary Tom Vilsack on 2013 Farm Income Forecast

United States Agriculture Secretary Tom Vilsack today issued the following statement on the 2013 farm income forecast from USDA's Economic Research Service:

“This week’s forecast of a $6.8 billion increase in net farm income is a testament to the resilience and productivity of U.S. farmers and ranchers, and a further sign of the positive momentum they have achieved over the past five years.  A six percent increase in this key measure would be the second highest inflation-adjusted amount since 1973, even as agriculture has worked hard to recover from an historic drought and other disasters. I am confident that our farmers and ranchers will continue to show the determination and innovation that has been the hallmark of American agriculture for generations. To help continue their strong momentum, producers and rural communities are counting on Congress to provide a comprehensive, long-term Food, Farm and Jobs Bill that will lend certainty to Federal farm policy – as well as passage of a commonsense immigration reform measure to ensure a stable and dependable agricultural workforce in the years to come.”

Highlights from the 2013 Farm Income Forecast are available at: http://www.ers.usda.gov/topics/farm-economy/farm-sector-income-finances/highlights-from-the-2013-farm-income-forecast.aspx. 



Coalition Issues Principles For TPP Agreement

An ad hoc coalition of agricultural and food organizations led by the National Pork Producers Council and Cargill has communicated to U.S. trade negotiators its “core” principles for a final, successful Trans-Pacific Partnership (TPP) trade agreement.

The 19th round of negotiations on the TPP concludes this week in Brunei Darussalam. The regional trade talks include the United States, Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

In a July 15 letter to U.S. Trade Representative Mike Froman and U.S. Agriculture Secretary Tom Vilsack, the coalition of 37 agricultural and food organizations presented a set of principles to ensure that the TPP negotiations “fulfill the promise of a high-quality agreement that can serve as a standard for future trade agreements.” The group said a final TPP agreement must:
-    Cover all elements of trade and investment, including agriculture, goods, services, digital trade, competition policy and intellectual property.
-    Not include product or sector exclusions, including in agriculture. Exclusions would limit opportunities in each of the member countries to reach new markets, grow businesses and generate economic growth and jobs.
-    Phase out all tariffs and other market access barriers by the end of the negotiated transition period. Transition periods must have commercially meaningful timeframes, which should be short and not back-loaded.
-    Include robust outcomes on sanitary-phytosanitary (SPS) issues. SPS measures also must be supported by risk-based scientific decision making, regulatory convergence and equivalence.
-    Include a “Rapid Response Mechanism” to resolve issues with perishable and time-sensitive shipments of agricultural products held up as result of SPS and technical barriers to trade.
-    Include an enforcement mechanism for trade obligations that go beyond those in the World Trade Organization. Failure to include such a mechanism would render new TPP disciplines valueless.
-    Be a single undertaking. All elements of the negotiation, including tariff and nontariff SPS measures, must be part of an indivisible package and cannot be agreed upon separately.

“The TPP represents the single most important trade negotiation ever for the U.S. pork industry and for most of U.S. agriculture,” said NPPC President Randy Spronk, a pork producer from Edgerton, Minn., “but for it to be a comprehensive, high-quality 21st century agreement, it must include all sectors, address SPS issues and tariffs and be enforceable. TPP can be a win-win for all the countries involved if it meets those criteria.”



Cool is the rule for vaccine handling

A vaccine program is only as effective as your dairy’s storage and handling protocols. The warm outdoor temperatures serve as a good reminder to brush up on vaccine storage and handling. “Cool is the rule for a successful vaccine program, and it starts with proper storage and handling,” advised Greg Edwards, DVM, Zoetis Dairy Technical Services. 

Poor handling and storage can reduce vaccine potency and effectiveness. Research trials and data showing product efficacy are based on storage temperatures indicated on the label. “Vaccines are sensitive. You can’t expect vaccines to perform at their highest level of protection if you don’t store and handle them properly,” Dr. Edwards explained.

He offered these tips for warm-weather vaccine storage and handling:

Always read and follow label instructions.
        Labels clearly indicate the proper procedures to yield the best outcome from a vaccine.

Keep vaccines cool and out of direct sunlight.
        Always store vaccines according to the label.
        Make sure vaccines are cold when delivered and refrigerate immediately.
        Refrigerate vaccines between 35°F to 45°F.
        Keep a thermometer in the refrigerator to monitor temperature.

Train employees about proper storage and handling.
        Instruct employees to take only the amount of vaccine needed and to keep the rest refrigerated.
        Remind employees that once they open vaccine bottles, the clock starts ticking. Each vaccine has a specific time limit for use. For example, modified-live vaccines, such as Bovi-Shield GOLD FP® 5 L5 HB, must be used within one hour of being mixed.

Consult with your herd veterinarian to develop and review herd vaccination protocols.
        Involve your veterinarian as much as possible. Your veterinarian is most familiar with diseases unique to your operation and is the most knowledgeable when it comes to vaccine selection.



Weekly Ethanol Production for 8/23/2013
According to EIA data, ethanol production averaged 820,000 barrels per day (b/d) — or 34.44 million gallons daily. That is down 24,000 b/d from the week before. The 4-week average for ethanol production stood at 843,000 b/d for an annualized rate of 12.92 billion gallons.

Stocks of ethanol stood at 16.3 million barrels. That is a 1.4% decrease from last week.

Imports of ethanol were 4,000 b/d, down from last week.

Gasoline demand for the week averaged 379.3 million gallons daily.

Expressed as a percentage of daily gasoline demand, daily ethanol production was 9.08%.

On the co-products side, ethanol producers were using 12.433 million bushels of corn to produce ethanol and 91,514 metric tons of livestock feed, 81,586 metric tons of which were distillers grains. The rest is comprised of corn gluten feed and corn gluten meal. Additionally, ethanol producers were providing 4.27 million pounds of corn oil daily.



RFA Letter Urges EPA to Deny Big Oil’s Contrived RFS Waiver Petition

In a letter sent today to Environmental Protection Agency (EPA) Administrator Gina McCarthy, the Renewable Fuels Association (RFA) urged EPA to reject the petition for a partial waiver of the 2014 Renewable Fuel Standard (RFS) submitted recently by the American Petroleum Institute (API) and American Fuel & Petrochemical Manufacturers (AFPM).

“Big Oil’s attempt to completely rewrite and redefine the statute pertaining to RFS waivers is just another shameless example of how far they’ll go to protect their market share and block larger volumes of renewable fuel from reaching the consumer,” said Bob Dinneen, RFA’s President and CEO. “Not only do API and AFPM blatantly contort the meaning and intent of the statute, but, as trade associations, they aren’t even entitled to file a petition for a waiver in the first place.”

According to RFA’s letter, the petition from API and AFPM obscures the fundamental purpose and intent of the RFS, which is to drive the production and use of renewable fuels beyond their traditional role as fuel additives.

“The need to move beyond E10 in 2014 for the purposes of RFS compliance should hardly come as a surprise to obligated parties,” wrote Dinneen, pointing out that it was clear as early as 2009 that the so-called E10 “blend wall” would occur in 2013 or 2014. “Unfortunately, many obligated parties chose to blatantly ignore the strong signals compelling them to begin preparations for higher volumes of renewable fuels and to increase investments in storage and distribution infrastructure. Now, the members of API and AFPM seek relief from their renewable fuel blending obligations, arguing that their failure to prepare for 2014 RFS requirements somehow merits reprieve. EPA should not reward such blatant disregard for resoundingly clear policy signals.”

The RFA comments conclude that the combination of increased E85 and E15 sales, carry-over RINs from 2013, and likely administrative adjustments to the 2014 advanced biofuel standard will allow obligated parties to easily meet their RFS requirements without adverse economic consequences.

“EPA should act swiftly to reject the petition submitted by API and AFPM. The conditions outlined in the Clean Air Act under which EPA may grant a waiver simply do not exist,” Dinneen concluded. “The RFS is working precisely as intended—EPA is exercising its authority to adjust annual blending requirements, RINs are sending clear signals to the marketplace to expand renewable fuels infrastructure and consumption, and RIN banking and trading provisions are providing compliance flexibility to obligated parties. In short, oil refiners and importers should have no difficulty in meeting their 2014 blending requirements.”



NASS to Resume Milk Production Surveys in October

USDA’s National Agricultural Statistics Service will resume milk production quarterly producer surveys in the new federal fiscal year, which begins October 1, 2013.  NASS suspended the surveys in April of this year to meet the budget reductions required by sequestration. The agency uses information gathered in the quarterly surveys along with various sources of administrative data to establish the monthly milk production estimates.  With the quarterly surveys, the dairy cow and milk per cow statistics will once again be available.  These are critical data points for interested parties to forecast future milk supply. The program will resume with a late September mailing of the survey form to producers and the release of resulting data on October 21.



Ukraine to See Higher Grain Exports
Ukraine's grain harvest this year is greater than last year, and the pace of grain export is exceeding last year's volumes, the agriculture ministry said Wednesday.

Ukraine exported at the start of the current marketing year, July 1 to Aug. 27, 3.23 million metric tons of grain, 16.2% more than in the same period a year earlier, the ministry said.

Wheat export to date totaled 1.5 million tons, barley exports were 1.15 million tons and corn exports reached 0.56 million tons.

The agriculture ministry said earlier that Ukraine's grain export in the 2013-2014 marketing year--July 2013-June 2014--was likely to rise to 26 million tons from about 23 million tons in the previous marketing year as this year's harvest was greater than last year.

The agriculture ministry expects a grain harvest this year of 53-54 million tons, up from 46.2 million tons last year, when crops were damaged by drought.



Cargill invests $48 million in Dodge City, Kansas, beef plant order distribution system

To better serve its customers and meet their needs for beef produced at its Dodge City, Kan., processing facility, Cargill is investing $48 million in a new automated order distribution system at its plant here. Construction will begin during the fourth quarter of calendar 2013, with the new system scheduled to be operational by spring 2015. The new order distribution system, capable of holding approximately 155,000 boxes of beef, will be housed in a new 62,000-square-foot building specifically constructed for that purpose. This will increase boxed beef capacity at Dodge City by 130,000 boxes. The new system uses Retrotech automation and Viastore equipment, and replaces a system that has served the plant since Ronald Reagan was president of the United States.

Strategically located in the western Kansas, the Dodge City plant supplies beef products to retail, foodservice and processed foods customers throughout the U.S., and internationally. The new system will allow Cargill to better support its customers and improve the plant’s ability to keep highly perishable fresh meat products flowing to hundreds of destinations.

“This new distribution system will benefit our customers by improving order accuracy and on-time delivery, in addition to providing better capability to handle the ever-increasing complexity of product offerings shipped to domestic and international markets,” said John Keating, president of Wichita, Kansas-based Cargill Beef. “Installation of this new system will help us better meet our customers’ expectations, something we have demonstrated as a core competency through similar investments made in recent years at our Schuyler, Neb.; Friona, Texas; and High River, Alberta, Canada, beef processing plants.”

Operationally, the new order distribution system at Dodge City will deliver increased efficiency, improved reliability, reduced maintenance, lower operating costs, increased capacity and utilization, in a more sustainable way due to improved energy use compared with equipment manufactured three decades ago.

“We take a great deal of pride in the products and services we provide to our customers, always mindful that we operate in a highly competitive business environment and they have options,” stated Keating. “I believe Cargill people do a tremendous job serving our customers and the proof is when they continue coming back for more of our beef.”

The investment at Dodge City continues Cargill’s ongoing commitment to invest in its facilities with an emphasis on providing superior customer service. The company has invested more than $760 million in capital expenditures in its North American beef processing plants over the past 10 years.

Cargill’s Dodge City beef processing facility opened for business in 1979, is located on 1,400 acres, employs nearly 2,700 people and harvests 6,000 head of cattle daily. Annually, the plant’s local economic impact includes a payroll of more than $83 million, $8 million paid in taxes, $1.7 billion worth of goods and services purchased and approximately $120,000.00 reinvested in the community through donations from the Dodge City Cargill Cares Council and Cargill, Inc.



CASE IH ANNOUNCES NEW EXPANDED LINEUP FOR LIVESTOCK, HAY & FORAGE USES

  With the introduction of 26 new compact and utility tractors and 11 hay and forage tools over the last three years, Case IH has demonstrated its focus on meeting livestock and hay producers’ unique equipment needs. To complete the updated lineup, Case IH is introducing the first windrower with factory-installed autoguidance, redesigned draper headers, disc mower conditioners designed to speed up dry down, and a durable round baler designed to minimize losses.

  “Case IH has launched new models and significant redesigns across our entire lineup of hay and forage tools and compact and utility tractors, all based on customer feedback,” says Zach Hetterick, Case IH Livestock Equipment Marketing Manager.

“Livestock producers will also appreciate the new investments Case IH has made in personnel, with nine new livestock specialists working with dealers and producers in the field.”

  Here are the newest Case IH products, which complete the Case IH hay/forage and livestock lineup: 

WD3 II Series Windrowers Offer Industry-First Factory Installed Autoguidance
  Redesigned Case IH WD3 series windrowers are the first in the industry to offer a factory-installed autoguidance system managed through the Case IH AFS Pro 700 control center to increase productivity and reduce operator fatigue. 

  “Windrowers are one the hardest pieces of equipment to drive,” says Hetterick.   “However, Case IH has made it much easier with AFS autoguidance and a new hydraulic steering system with fewer linkages and pivot joints. Operators will appreciate the improved drivability in the field, as well as the great steering responsiveness on the road, which creates the ability to operate at higher road speeds.”

  Case IH engineers conducted dynamic stability testing on a road slalom course. As a result, they adjusted the machine’s weight balance and developed caster wheels, set at a 9-degree angle. In addition, a dampening feature prevents oversteering, especially at high speeds.

  WD3 series windrowers can now top out at 24 mph road speed – the fastest in the industry – so operators can get to one more field before calling it a day. 

Reliable DH3 Series Draper Headers Cover More Acres Faster 
   Case IH DH3 series draper headers for windrowers help producers cover more acres faster and more efficiently with an all-new 40-foot header. A shallow, angled top section offers higher throughput capacity, crop feeding and crop flow.

  Crop quality is also protected through the draper heads’ agronomic design. A two-circuit hydraulic system offers more consistent flow and power across the header, so producers get more even crop feed, resulting in more consistent, well-formed windrows.

  Improved crop feeding is also assisted by an all-new, heavy-duty frame design with larger reel arms and increased strength. The rugged Case IH cutterbar offers additional protection, even in harsh conditions.

DC3 Series Disc Mower Conditioners Simplify the Path to High-Quality Hay
  New Case IH DC3 series disc mower conditioners are designed to improve dry down for better hay quality and higher profits. A new cutterbar design with wide discs cuts closer and cleaner, getting more hay in windrows and leaving less hay in the field. Larger-diameter discs improve crop flow and windrow consistency. 

  Designed for easy, uninterrupted use, the DC3 series disc mower conditioners have lightweight, impact-resistant plastic access doors, simplifying adjustments.   “Adjustments can be done in the field on the new disc mower conditioners,” says Hetterick. “Producers don’t even require tools to make alterations to the conditioners, swath doors and swath board.”

  New shielding minimizes the opportunity for material to build up as you create windrows. A simplified drive system helps to minimize horsepower consumption and maintenance needs.

RB565 Round Baler: Get More Hay in Customizable Bales
  The new RB565 provides 20 percent more capacity than previous models. The new overshot feeder between the pick-up and bale chamber creates a quick and even feed of material into the bale chamber. The new roller windguard and five bar pick-up comb the crop off the ground for fast and even feeding.

  The new RB565 is built to last. It features a total redesigned pick-up that has been strengthened from the inside out. Some of the new enhancements include double spider gears, solid line bars, and rubber mounted teeth that provide five times the wear life of the previous generation teeth.  Belt tracking and durability has never been better using all-new premium belts available in a laced or endless design.

  The baler has also been made easier to operate with the Case IH ISOBUS-compliant control system. You can now run the baler thorough the AFS Pro 700 display in your tractor, giving you a simple layout with the large touch screen monitor.

  In the past 12 months, Case IH has added several other new products to the Case IH livestock/hay/forage product lines to better meet livestock producers’ unique needs, including Farmall