Thursday August 15 Ag News

Rural Mainstreet Economy Grows:  Farm Equipment Sales Decline

While growth for the Rural Mainstreet economy remains healthy, it slowed a bit in August, according to the monthly survey of bank CEOs in a 10-state area.   

Overall: 
The Rural Mainstreet Index (RMI), which ranges between 0 and 100 with 50.0 representing growth neutral, slipped to 55.8 from July’s 57.3, but was well ahead of last August’s 47.1.   “Last year at this time the drought was weighing on the Rural Mainstreet Economy. This year, weaker agriculture commodity prices are having a dampening impact on the farm economy and businesses tied to agriculture. Even so, the economy continues to expand at a reasonable pace according to bank CEOs,” said Ernie Goss, the Jack A. MacAllister Chair in Regional Economics at Creighton University.

Nebraska: 
After moving below growth neutral for January, Nebraska’s Rural Mainstreet Index has been above growth neutral for seven straight months. The August RMI declined to 56.2 from July’s 58.0.  The farmland-price index for August slipped to 47.7 from July’s 48.5. Nebraska’s new-hiring index stood at 53.4 down slightly from  July’s 53.9.

Iowa:
The August RMI for Iowa sank to 56.9 from 62.3 in July. The farmland-price index slipped to 53.2 from July’s 54.6. Iowa’s new-hiring index for August declined to 52.4 from July’s 58.0.

Farming:
The farmland-price index declined for the eighth time in the past nine months. The August index fell to 55.8 from 58.2 in August. “Our farmland-price index has been above growth neutral since February 2010.  However, lower farm commodity prices are slowing growth in farmland prices. I expect farmland price growth to continue to weaken as agriculture commodity prices soften,” said Goss.

This month bankers were asked to estimate the share of farmland sales going to nonfarm investors.  Banking leaders indicated that approximately one-fifth of sales are going to non-farm investors, the same as this spring when the same question was asked.

In some areas of the region, investor purchases are down dramatically. For example, Fritz Kuhlmeier, CEO of Citizens State Bank in Lena, Ill., said, “Local farmers have completely driven the nonfarmer investors out of the farmland market by elevating the prices over returns investors demand.”

Furthermore, the inventory of available farmland is down significantly. According to Jim Stanosheck, CEO of State Bank of Odell, in Odell, Neb., “There is very little farm real estate available in the area.”

Farm equipment sales also softened for August with the index moving below growth neutral for the first time since 2009. The index slumped to 49.2 from 50.0 in July. “I am concerned that agriculture equipment dealers may find themselves with higher and higher unsold inventory. The direction we are seeing in agriculture commodity prices, while helpful to livestock producers, is pushing farmers to pullback on their equipment purchases. This trend will begin slowing overall rural growth in the months ahead,” said Goss.

Each month, community bank presidents and CEOs in nonurban, agriculturally and energy-dependent portions of a 10-state area are surveyed regarding current economic conditions in their communities and their projected economic outlooks six months down the road. Bankers from Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota and Wyoming are included.

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



Record Number of NE Ag Ed Programs Underway
Stacy Agnew, Exec. Dir., NE FFA Foundation

This week, many of the 13,000 ag ed students are starting up the 2013-14 school year. With a record high 150 Agricultural Education and FFA programs in the Nebraska, we're very excited see what students will accomplish this year.

The first thing on many FFA member's shopping list is a new FFA jacket and the Nebraska FFA Foundation is excited to be running the "Blue Jackets, Bright Futures" jacket program again this year. Until September 2nd, you can join us in donating an FFA jacket and tie or scarf to a deserving FFA member. I know that we all have important memories associated with the FFA jacket and many of us still have our old jacket hanging in our closets.If you believe in the power of the blue corduroy, please go to our website and donate today. 

If you aren't sure what the FFA jacket means to a student, just read our latest blog post to witness an FFA alumni's reflection on the jacket. Thank you for your generosity as these students begin the experience of a lifetime.

Join us at Husker Harvest Days for the 1st Annual Farm Tire Auction
Wednesday, September 11 at 1:00 will mark the first annual Student Driving Tractor in Field Nebraska FFA Foundation Farm Tire Auction. The auction, which will be held at Husker Harvest Days, is sponsored by Titan Tire and Goodyear Farm Tires.  Over 70 tires donated by Titan Tire Corporations will be auction off. They've even added a "Big Chill Blower" and Husker football tickets. All proceeds supporting the Nebraska FFA Foundation.  Go to www.neffafoundation.org to download a full bid sheet.

State FFA Officers Complete Business & Industry Visits
Nebraska FFA State Officers met with the Nebraska Soybean Board during their week of business and industry visits.  Nebraska FFA State Officers took five full days in August to visit many of their generous supporters from Omaha to North Platte. This is a unique way for Officers to engage with supporters and learn more about the ag industry and it allows the ag industry to get an update on Nebraska FFA.  You can find photos of the week on our Facebook page.

Join us for an Ice Cream Social at the NE State Fair
Bring your family for some ice cream, get updated on Nebraska FFA and meet a few current FFA members at on August 31 from 3:00-5:00. You can also register to have an FFA jacket donated to a deserving student in your name. Find us at the Nebraska State Fair Hospitality Suite in the upper level of the Arena.



IPPA to update hog farmers on swine health management issues at conferences

The Iowa Pork Producers Association, in cooperation with the Iowa Pork Industry Center at Iowa State University and ISU Extension and Outreach, has developed a new series of conferences for hog farmers in response to current swine health issues impacting the industry.

The IPPA Swine Health and Animal Well-being Committee will hold four “free” management conferences around the state later this month and in early September. The sites and dates are:
·    Aug. 26, 1 p.m. to 4 p.m. – Northwest Iowa Community College, Sheldon
·    Aug. 28, 1 p.m. to 4 p.m. – Carroll Co. Extension Office, Carroll
·    Aug. 30, 9:30 a.m. to 12:30 p.m. – Chickasaw Co. Extension Office, New Hampton
·    Sept. 3, 1 p.m. to 4 p.m. – Washington Co. Extension Office, Washington

Dr. Rodney “Butch” Baker of the Iowa Pork Industry Center at ISU will share what is currently known about the Porcine Epidemic Diarrhea Virus (PEDV) that has proven deadly to piglets across the country this year. Baker will explain how producers can manage employees and visitors relative to PEDV, how hog farmers can protect their herd when most packing plants and trailers are testing positive for the virus, and what can be learned from Transmissible Gastroenteritis (TGE) and the practices that should be effective against PEDV.

“Porcine Reproductive and Respiratory Syndrome (PRRS) has caused great economic harm to the industry for years and now we’re facing the devastating impact of PEDV,” said Dr. Craig Rowles, committee chairman and a pork producer from Carroll. “We’re offering these conferences to provide the latest information on these issues and try to help producers deal with or avoid these swine health concerns.”

ISU’s Dr. James McKean will discuss how producers can avoid residues and a U.S. Food and Drug Administration inspection. His presentation will include changes in residue testing at packing plants, the impact of detected residues and practical steps to avoid chemical residues.

Rounding out the list of presenters is Dr. Lee Schulz, ISU Extension livestock economist. He will explain how pork farmers can survive with a short corn supply, prospects for continued hog demand and 2014 opportunities.

“FDA has introduced new residue limits and testing procedures and we want to make sure hog farmers are aware of these changes,” Rowles said. “Also, the current and future economic impacts of the swine health issues are critical to producers’ success, so we feel it’s important to include this discussion as well.”

Producers will not be required to register to attend any of the conferences. Interested farmers simply need to attend the conference of their choice.

Any questions should be directed to IPPA Public Policy Director Cody McKinley at (800) 372-7675. 



Webinar Focuses on Nutrient Reduction Strategy

Iowa Department of Agriculture and Land Stewardship staff members Jim Gillespie and Shawn Richmond are featured speakers for the Iowa Learning Farms monthly webinar Wednesday, Aug. 21 at 11:30 a.m. They will be presenting information about the Iowa Nutrient Reduction Strategy.

The webinar is part of a free series, hosted by ILF, through Adobe Connect. The series is on the third Wednesday of each month. A computer with Internet access is all that is needed to participate.

Gillespie, IDALS Division of Soil Conservation director, and Richmond, Conservation Reserve Enhancement Program coordinator, will provide an overview of what the Nutrient Reduction Strategy is, what the goals are and how the strategy will be put in place.

The Iowa NRS is an outcome of the Mississippi River/Gulf of Mexico Watershed Nutrient Task Force. This group called upon each of the 12 states along the Mississippi River to develop its own strategy to reduce nutrients entering the river and in turn reduce the Gulf of Mexico hypoxia zone, or dead zone. The NRS was developed jointly by IDALS, the Iowa Department of Natural Resources and Iowa State University.

To connect to the webinar, go to https://connect.extension.iastate.edu/ilf/ at 11:30 a.m. on the morning of the webinar and log in using the guest option. Gillespie and Richmond will be able to answer questions from webinar “attendees” via the Adobe Connect chat box.

The ILF website contains links for archived webinars from all previous sessions at http://www.extension.iastate.edu/ilf/Webinars/. The webinar archive also is available in a podcast through iTunes.



Iowa farmers, families recognized as environmental leaders at Iowa State Fair

Iowa soybean farmers were well represented today at the second annual Iowa Farm Environmental Leader Award ceremony at the Iowa State Fair.

                Sixty-two Iowa farmers and farm families --- more than two-thirds were Iowa Soybean Association members --- were recognized for their commitment to healthy soils and improved water quality. The awards are sponsored by the Iowa Governor’s office, Iowa Department of Agriculture and Land Stewardship and the Iowa Department of Natural Resources.

                The awards recognize farmers who serve as local leaders in environmental stewardship by utilizing a variety of techniques and best management practices. Examples include conservation tillage, restoring wetlands, installing grass waterways and using precision agriculture, among other things.

                ISA member Laura Foell and her husband, Bill, of Schaller were honored for utilizing no-till and strip till, buffer strips, terraces, field boarders, grass waterways, stalk testing and planting wild flowers to help honey bees. Despite record spring rains, Laura Foell said she didn’t notice any erosion on their 900-acre soybean and corn farm. Farmers want to improve soil water quality, she said.

                “We started using these practices in the early 1990s and our goal is to leave the land better than how we got it,” says Foell, who also serves on the United Soybean Board.          

                Award winners received a signed certificate from Gov. Terry Branstad and a metal sign donated by Monsanto commemorating the honor. Hagie Manufacturing, based in Clarion, hosted a catered lunch in honor of the winners, as well.

                Gov. Branstad said the awards highlight agriculture and the great progress family farmers are making to improve the environment.

                “Farmers are taking steps to protect soil and water, while increasing crop production to feed us,” Branstad said.

ISA’s Environmental Program and Services and On-Farm Network teams assist members in their environmental efforts, while helping them be as productive and profitable as possible. ISA board member Jim Andrew of rural Jefferson served on the award selection committee.

The award winners are (listed alphabetically by county):
    Adair: Dennis & Connie Lundy; Lundy Farms, Inc.
    Allamakee and Winneshiek: Don, Trish & Eric Elsbernd; Elsbernd Farms
    Appanoose: Arthur & Mary Lemley
    Benton and Iowa: Larry, Nancy & Mike Beyer, Koszta Farm Corp.
    Bremer: Mark & Jeri Mueller, Howard & Fran Mueller
    Buena Vista: Garold & Ila Galvin
    Butler: Scott Bruns
    Butler: David J. Muth, Sr.
    Calhoun: Gary Johnson
    Calhoun and Sac: Randy & Mary Kay Kent
    Carroll: Jim & Donna Riesberg
    Carroll: David L. Schroeder
    Carroll and Sac: Dean Tiefenthaler
    Carroll, Crawford and Shelby: Orland & Mike Fara; Fara Farms
    Cedar: Steve Leazer; Blue Knoll Farm
    Cherokee: Nathan & Sarah Anderson
    Clarke: Terry & Lorie Bear
    Clarke: Kenlyn Kelso & Kyle Kelso
    Clarke and Decatur: Jim & Betty Sullivan Farms
    Clarke and Lucas: Jeff Pollard
    Clay: Jerry & Georgia Crew
    Dallas: Sam & Julie Spellman
    Dallas: Daniel Golightly; Jonbar Ranch
    Davis: Ray & Phyllis More
    Decatur: Dick & Connie Hines
    Delaware and Jones: Eric Wahl, Wahl Farms LTD
    Des Moines: Charles & Connie Nealey
    Floyd and Mitchell: Jon & Ardi Giselson
    Franklin: Myron & Brad Vanhorn
    Greene: Jerry M. Peckumn, Thomas R. Peckumn
    Greene and Carroll: Craig, Lois, Kyle & Garrett Peterson
    Grundy: Fred & Vicki Abels; K&A Acres, Inc.
    Hamilton: John P. Thompson
    Hancock: Dean & Debbie Stromer
    Harrison: Bill & Babetta Lucke; Lucke Farms, Inc
    Howard and Mitchell: John & Kay Reis, Jason & Jennifer Reis, Josh & Amy Reis
    Humboldt: Robert & Linda Lynch, Jay & Emily Lynch
    Jackson: Mike, Debra, Megan, Sara & Mitchell Redmond
    Jasper: Roger, Carolyn & Wesley Zylstra
    Jefferson and Wapello: Willhoit Farms, Inc.
    Johnson: Ed Ulch & Brian Ulch
    Linn: Russell Brothers, LLC
    Lucas: Burdette, Connie, Doyle & Dennis Smith; WB Smith Family
    Lucas: Randy & Sandy Swartz, Travis & Anne Swartz
    Lyon: Roger, Janet, Thadd, Trent, Troy & Travis Knoblock & Jon Blomgren; JRT Focus Farms
    Marion: Harlan & Janet Petty
    Mills: Bach, Nancy & Jon Bakehouse
    Mitchell: Tim & Jenny Sullivan
    Mitchell: Wayne & Ruth Fredericks
    Monroe: Mike & Brenda Ryan
    Montgomery: Bruce Family Farm
    O’Brien: Dan & Lorna Wilson, Torray, Erin & Jaron Wilson
    Sac: Roger & Duane Buehler; Buehler Farms, Inc.
    Sac: William & Laura Foell
    Sac: Darwyn & Sharri Hansen
    Wapello: Rouw Farm
    Woodbury: Jim & Katie Brown and family
    Wright: Steve & Deborah Janssen
    Wright and Hamilton: Rick Lee
    Wright and Hamilton: Glenn N. Lee
    Wright: Arliss & Jacqueline Nielsen
    Wright: Wayne & Lanette Watts
    Wright: Carl, Carol, Joe & Jane Roberts



ISA encourages farmers to seek water quality initiative funding

The Iowa Soybean Association (ISA) encourages farmers to apply for state cost-share assistance for practices that will reduce nutrient runoff and achieve goals set in the Iowa Nutrient Reduction Strategy.

The Iowa Department of Agriculture and Land Stewardship (IDALS) recently announced funding priorities which include cover crops, no-till or strip till and nitrification inhibitors, specifically nitrapyrin with fall applied anhydrous fertilizer. The cost-share rate per acre is $25, $10 and $3, respectively.

“IDALS cost share is a great way for farmers across the state to receive support in implementing and evaluating these practices on their farms. They help hold soil in place, reduce nutrient loss caused by runoff and drainage and help improve water quality,” said Health Ellison, ISA’s Environmental Programs and Services agronomy and natural resources manager.

Any farmer not already planting cover crops, practicing no-till or strip till or using a nitrification inhibitor can apply for assistance at their local Soil and Water Conservation District office. Farmers are only eligible for cost share on up to 160 acres.

IDALS received $3 million in one-time funding to support statewide science-based water quality practices, of which $1.8 million was set aside for disbursement this fall. ISA was instrumental in helping develop the nutrient reduction strategy, with a goal of reducing total nitrogen and phosphorous loads in Iowa waters from both point and nonpoint sources, like farm fields, by 45 percent.

“The ISA On-Farm Network and Environmental Programs and Services teams can partner with farmers to develop replicated strip trails for your cover crop, nitrogen stabilizer and no-till acres in order to collect useful data on the relevance of these efforts to production and environmental stewardship practices,” Ellison said. “ISA has been actively assisting farmers in testing, evaluating and managing many of the practices identified in the nutrient reduction strategy through targeted watershed projects and field research since 2000.”

ISA’s Environmental Programs and Services team helps farmers conserve and protect natural resources, remain profitable and increase yields to meet growing demands for food, feed and fuel—all essential components of long-term sustainability. The association’s On-Farm Network focuses on precision agriculture tools and technology to collect information that can increase growers' profits from crop production.



Adoption of Intensive Pond Aquaculture Technology Will Create Higher Demand for U.S. Soybeans in China
A group of U.S soybean grower leaders organized by the Iowa Soybean Association traveled to Pingwang, Jiangsu Province, China on July 22 to visit the Intensive Pond Aquaculture (IPA) demonstration, a project co-sponsored by the Iowa Soybean Association.

IPA technology was first introduced to China by USSEC in 2012 during technical seminars.  The Chinese aquaculture industry showed great interest because of IPA’s potential to substantially increase yield in the face of escalating production costs for many Chinese fish farmers.  Pingwang Fish Farm was chosen from many applicants to cooperate with USSEC as a demonstration base in 2013.  On this trip, grower leaders inspected the remodeled IPA pond, participated in fish feeding with USSEC-formulated extruded soy-based floating pellets and witnessed the newly invested internet-based farm operation system.

IPA technology, developed in the U.S, is intended for areas where environmental pressure is heavy and the production cost is high.  To accomplish this project, the cooperator should reconstruct existing ponds by adding the specially-designed water-push (White-Water) system to create a constant water current in the pond to go through the production cells; theoretically, it is capable of increasing yields by 300% in China to 3,500 kilograms (kg) per mu (21,000 kg per acre).  Moreover, the technology requires no water exchange during the entire production season and can produce different species or one species of different sizes to help ease producers’ cash flow pressure.  From the onset, the technology has drawn a lot of attention and has received many industry visitors including government officials, extension specialists and fish farm managers from all over the country.  USSEC is confident that the success of the first feeding trial will lead to the rapid adoption and extension of the technology, creating a greater demand for U.S. soy.

In addition to the IPA farm tour, the U.S. team also visited Shanghai Lutang Fisheries Science & Technology Development Co., Ltd in Songjiang in Shanghai and Shanghai Yihao Aquaculture Co., Ltd.  Both companies intend to use IPA technology after the completion of the ongoing production trial in Pingwang.



Farmland Values Surge Despite Falling Income
Nathan Kauffman, Economist, Kansas City Federal Reserve
Maria Akers, Associate Economist, KC Fed

District farm income fell in the second quarter and bankers expected a further drop in coming months. A poor winter wheat harvest in the Tenth District and a decline in wheat prices brought on by strong global production pushed farm income lower. Ongoing weakness in the livestock sector also limited farm income growth as operators continued to endure high feed and forage costs combined with falling cattle prices. Bankers expected income to drop further in the next few months due to the possibility of sharply lower corn and soybean prices at harvest.

Despite lower farm income and expectations of additional declines, farmland values surged further during the second quarter. Irrigated cropland values in the District jumped 25 percent from a year ago. Nonirrigated cropland values advanced 18 percent from the previous year, a slightly slower pace of growth than in the first quarter. Ranchland values also rose, gaining 14 percent year-over-year. However, more bankers expected farmland value gains to moderate slightly in coming months. Bankers indicated that expected farm income was not the main factor contributing to the value of farmland.

Instead, bankers cited the overall wealth level of the farm sector, supported by several years of strong income, as the primary driver of farmland values. Low interest rates and a lack of alternative investment options were also noted as significant factors, ahead of farm income expectations.

Lower farm income boosted operating loan demand and hindered loan repayment rates in the second quarter.  According to survey respondents, operating loan demand rose to its highest level in more than two years. Loan repayment rates improved modestly, but bankers expected repayment rates to fall in the future with weakening farm income. In addition, interest rates for farm real estate loans edged up during the quarter, which could make repayments more difficult. Interest rates on farm operating loans decreased slightly in the second quarter, but by the smallest percentage in three years.

Read the entire report here... http://www.kansascityfed.org/publicat/research/indicatorsdata/agcredit/AGCR2Q13.pdf.  



FSA Releases Prevented Planting Data

Farmers were prevented from planting 3.4 million acres of corn, 1.6 ma of soybeans and 1.7 ma of wheat in 2013, according to preliminary data released by the Farm Services Agency Thursday.  FSA extended its deadline for filing acreage reports, which are used to determine farm program payments. The deadline was extended from July 15 to Aug. 2, and the prevented planting data could be revised in FSA's next monthly update.

NASS increased corn acreage to 97.4 million acres in its June acreage report, a move that seemed to run counter to anecdotal evidence of large swaths of unplanted acres in Iowa and Minnesota.  According to the FSA data, 613,257 acres of corn and 106,350 acres of soybeans went unplanted in Iowa. Minnesota farmers didn't plant 616,671 corn acres and 203,760 soybean acres.  NASS doesn't incorporate FSA data into its calculations until October.



More PED Swine Viruses Reported

The total number of swine accessions and diagnostic case submissions testing positive for the Porcine Epidemic Diarrhoea virus is now 461, according the latest figures from the American Association of Swine Veterinarians.

By farm class, this figure breaks down as follows since April: suckling, 44; nursery, 39; grower/finisher, 210; sows/boars, 89 and 69 unknown. The total is up 27 from a week ago.

Wisconsin has reported its first positive result in the last week, bringing the total number of states known to be affected since the start of reporting to 17. Those states with 10 or more positive tests are: Iowa, 163; Oklahoma, 107; Kansas, 41; Minnesota, 40; Indiana, 21; North Carolina, 20; Colorado, 15 and Ohio, 12. Of these states, only Ohio reported no additional positive results in the last week; Iowa had the biggest increase, with nine new cases.

In mid-June, the reporting system was adjusted. For the weeks prior to 16 June, laboratories were able to provide diagnostic case submissions and number of premises testing positive for PEDv.

Since the week of 16 June, the total number of swine samples testing positive is 994, up from 926 the previous week. The most-affected states are: Oklahoma, 341; Kansas, 230; North Carolina, 134; Iowa, 116; Ohio, 50; Minnesota, 47 and Colorado, 30. Other states, where positive, reported 20 positives or fewer.



NCBA Clarifies Position on Tyson Decision to Stop Accepting Cattle Fed Zilmax

As stated in a press release issued on Friday, Aug. 9, “Cattlemen and women believe in the right of farmers and ranchers to responsibly use FDA-approved technologies. We also believe in Tyson’s right to make individual company decisions that they feel are in the best interest of their business.”

To clarify, NCBA supports Tyson’s right to make their decision to stop accepting cattle fed Zilmax, in order to ensure animal health and well-being. We also support Merck Animal Health’s five-step plan and their efforts to  address questions related to the use of Zilmax and animal welfare.



Higher Water Quality Means Greater Profitability

The Field to Market alliance is preparing to release a water quality metric to its Fieldprint Calculator. This update includes the integration of the U.S. Department of Agriculture's Natural Resources Conservation Service Water Quality Index and can help growers better understand how their farming systems and practices affect the quality of water flowing off their fields.

"The time, landscape and community in which farmers grow their crops, along with their management decisions and skills regarding inputs and production practices, all play a part in the profitability of a farming operation," said Keith Alverson, NCGA's board representative to Field to Market. "No farmer wants to leave dollars on the field, and the water quality metric in the Fieldprint Calculator will help determine if we are boosting yields enough to cover things like extra fertilizer costs or soil loss. While profitability is import, longevity is a greater priority."

NCGA is involved in proactively addressing potential water quality concerns to avoid a one-size-fits-all regulation that will inhibit the ability of farmers to have adequate flexibility in managing issues unique to their operation. In addition to working with Field to Market, NCGA's Production and Stewardship Action Team participates in the Ag Nutrient Policy Council and Waters Advocacy Coalition, two broad-based coalitions working to ensure the Clean Water Act works for American agriculture.

Although best management practices are adopted by individual growers, their performance and cost-effectiveness are not well characterized. To promote more sustainable water quality solutions, NCGA has invested in the development of a comprehensive data management system for collecting, storing, and evaluating water quality related agricultural best management practice information.

NCGA's recent "Driving Change" video and its new Water Quality Training Module are recent additions to the organization's water quality educational tools for farmers.



No Word on Farm Bill Talks; Your Voices Still Needed in the Debate
(from NAWG)

There has been little news, formal or informal, on the farm bill since the August recess began last week. Most Members are back in their districts meeting with constituents, including farmers and consumers concerned about the legislation. In a sign of issues still to be resolved, House Democrats wrote Speaker of the House John Boehner (R-Ohio) on Tuesday, stressing the importance of the Supplemental Nutrition Assistance Program (SNAP), commonly known as food stamps, and asserting that the final farm bill or any other SNAP legislation “must be crafted to ensure that we do not increase hunger in America.”  A group of South Dakota-based farm and food organizations have started a “Back the Farm Bill” campaign to encourage outreach to Congress urging completion of new farm policy. The effort has a Facebook page that has garnered more than 1,000 likes, accessible at www.facebook.com/backthefarmbill.

With Plate Already Full, Debt Ceiling Fight Awaits Returning Congress
In addition to the farm bill and a continuing resolution to fund the government, Members of Congress coming back to D.C. after Labor Day will be returning to another perennial problem: the debt ceiling. Estimates are that the United States will reach its borrowing limit sometime between early September and mid-November. Early this month, the Treasury Department said it would undertake one of its so-called “extraordinary measures” to keep the government paying bills as the debt limit draws near. Those efforts and recent payments from Fannie Mae and Freddie Mac back into the general treasury will likely stave of the deadline until late fall. Of course, there is no sign of compromise on the issue in Congress, and it has also been a sticking point for a formal conference committee on the budget resolution.



U.S. Government Forecasters See Warm Autumn in Northeast, Southwest

Autumn temperatures will likely be above normal in the Northeast U.S., a major market for home-heating oil and natural gas, government weather forecasters said Thursday.

The National Oceanic and Atmospheric Administration projects above-normal temperatures will reach from the Great Lakes region eastward to encompass New England and the Northeast southward into central New Jersey in September through November.

Above-normal temperatures also are forecast in the three-month period for the Southwest, centering on Arizona, and extending into eastern California, southern Oregon and Idaho and into west Texas.

NOAA doesn't project below-normal temperatures for any part of the nation during September through November.

However, NOAA said the outlook is uncertain for much of the nation, outside the areas where above-normal temperatures are forecast. These areas carry an "equal chances" designation, meaning they see equal likelihood of normal, above-normal or below-normal temperatures in the period.

For September alone, NOAA sees enhanced probabilities for above-normal temperatures for "most of the western U.S., with the exception of the coast, and for parts of the Northeast."



CME's Longer Hours Spur Volatile Prices

Longer trading hours in the U.S. corn futures market have exposed the market to more-violent price swings, according to research by the Federal Reserve Bank of Kansas City.

Exchange operator CME Group Inc.'s controversial move last year to lengthen the trading day for its benchmark agricultural markets has led to "brief shocks" to prices around the release of key U.S. government crop reports, which previously came out when markets were closed, according to the Kansas City Fed paper.

CME's move to extend grain-trading hours in June 2012 ignited protests among agribusiness companies and floor traders, who feared that markets would lose stability and that the cost of staffing trading desks would rise. CME expanded trading hours after a rival, IntercontinentalExchange Inc. (ICE), announced its own push into the market.

Farmers, grain elevators and agribusiness companies use futures contracts to hedge against shifts in the price of crops, while hedge funds and automated-trading firms seek profits from buying and selling the contracts. CME runs the world's largest market for trading corn, wheat and soybeans, according to data from the Futures Industry Association.

Last April, CME reduced its trading session for some agricultural markets to a 17.5-hour day from 21 hours, bowing to some customers' concerns. But contracts still can be bought and sold during the release of market-moving reports from the U.S. Department of Agriculture. Prior to last year's expansion, the market was open 17 hours per day, and key USDA reports came out early in the morning, before trading began.

Some traders complain that permitting trading during the USDA release times enables electronic traders to abruptly shift futures prices before grain merchants and other commercial players have time to parse the often-complex reports, which detail the supply and demand of major agricultural commodities.

"There has been a fairly distinct pattern" of spikes in volatility after USDA reports hit the market, said Nathan Kauffman, an economist at the Kansas City Fed's Omaha branch and the author of the paper, which was published on the bank's website last week.

Kauffman wrote that the swings, which he found typically last 30 to 60 minutes, can be a headache for agricultural producers that manage their price risk throughout the day. Grain elevators and other commercial players that don't trade actively throughout the day may not notice much change under the new structure, Kauffman wrote.



USGC Makes Waves in India’s Poultry Markets

poultry india1India's poultry industry currently sells 95 percent of its product through wet markets, fresh food markets where animals are sold live and then processed either onsite or in the consumer's home. These wet markets pose numerous sanitary risks and are inaccessible to long-distance consumers. Moving to a processed poultry market would give India better control of food safety and quality, and would over time increase consumer confidence. It would also enhance the ability to transport processed poultry products to distant markets and ultimately expand poultry consumption — all of which would lead to a higher per capita poultry consumption.

Consumer education is a key to unlocking this potential. Indian consumers believe that by purchasing at a wet market they can select a fresh, healthy product. These consumers are reluctant to purchase processed products and favor wet markets that they believe allow them to select a superior product. While the traditional preference for freshness is understandable, however, processed products offer important marketable advantages, especially with regard to superior quality control, minimization of health risks, and product availability.

The U.S. Grains Council organized a series of seminars to educate poultry integrators about how to run a successful marketing campaign to promote processed poultry products. At a recent seminar, Awi Tantra, director of PT Sierad Produce in Indonesia, was sponsored by the Council to share how PT Sierad Produce moved from a wet market to a processed market. Other USGC speakers shared ideas from countries such as Thailand and Sri Lanka, where government support made it possible for the industry to change to a processed market.

"India's poultry production is just as efficient as the United States, but they have yet to convince Indian consumers to purchase processed poultry meat," said Adel Yusupov, USGC regional director in Southeast Asia. "Even though India's government has yet to enforce food safety standards, the Council believes that though a series of seminars and discussion with other Southeast Asia poultry companies the Indian poultry industry will take it upon themselves to sell a good, safe product to the consumer."

India's poultry sector is the fourth largest in the world, placing 3 billion chicks per year, and is one of the biggest consumers of corn in India. This country's large poultry industry utilizes almost 9 million metric tons (354 million bushels) of corn annually, which could increase if the poultry industry continues to grow.

Although India does not offer immediate prospects for U.S. coarse grain and co-product exports, India remains an import player in the global grain supply chain. Today India is a corn exporter, but the Council projects that India's feed demand eventually will outpace its domestic supply and that India may become a net importer of coarse grains and co-products in the future. Through seminars like this, the Council fosters new demand for Indian poultry which ultimately will increase the demand for U.S. grains from the Indian poultry production sector as they increase production to meet new market demand.



Webinar to Focus on Ethanol Use in Legacy Engines

Old tractors are often prized possessions, whether it's an antique tractor used in shows and parades or that tractor still occasionally putting in an honest day's work in the field. Tractors and other old vehicles with "legacy" engines in them were designed to run on the fuels of their time, but what about running modern fuels, like ethanol, in these older machines?

A webinar, titled "Ethanol Use in Legacy Engines," will take place on Aug. 30, at 10 a.m. CST to discuss just that. Edwin Brokesh, an instructor of biological and agricultural engineering at Kansas State University, will present the webinar, which will cover the interaction of ethanol with different materials found in older engines and how the combustion process may affect the operation of older engines. Participants should come away with a better understanding of the care and maintenance of an older engine using ethanol-containing fuels.

Brokesh says much of his work with K-State Research and Extension involves providing people with a basic understanding of biofuels--what they are, how they work in engines, and their differences and similarities. While writing an Extension publication about small non-road engines and ethanol, he had the idea to present this webinar as a learning tool.

"I started to think about all these old tractors that you see at farm shows, parades and fairs, and the countless others that Dad or Grandpa bought new and are still being used," Brokesh said. "These machines also may see fuels containing ethanol. Because it is fair season, the thought was to produce a webinar now and then to write a publication off of the material presented in it later."

To participate in this free webinar, start connecting five minutes prior to the start time at https://connect.extension.iastate.edu/agenergy/. You need a computer with Internet access and speakers. Participants can login by clicking "Enter as a Guest" and entering their name and business or institution, and clicking "Enter Room." The webinar should last about an hour. To confirm the ability to connect, visit www.extension.iastate.edu/testconnect/.

Questions can be directed to Brokesh at 785-532-2907 or ebrokesh@ksu.edu. To see other farm energy videos or webinars, see http://farmenergymedia.extension.org/videos.



Don’t Dump Money Down The Udder

As summer winds down, many dairies may see a little relief in sight as temperatures begin to cool down and the incidences of heat stress decrease. While heat stress is a common concern during these months, many producers may want to consider how the temperature is affecting their milk production and milk quality.

According to the National Mastitis Council, poor milk quality isn’t cheap. The average case of mastitis costs a farmer $184, with two-thirds of that amount due to loss in milk production

Keeping herds healthy and protected from the threat of mastitis can be extremely difficult, especially during the summer months.  Heat, humidity and other factors can make managing the potential for pathogenic bacteria even more challenging. Poor practices that might be tolerated during cooler parts of the year hold minimal to no forgiveness during the warmer months.

Dr. Roger Scaletti, a milk quality expert with Alltech, provides four areas that can keep your herd on the right path for peak productivity and assist you in managing or even working to prevent instances of mastitis in your herd:
-    Parlor routine can be very often overlooked, as simply getting cows milked two to three times a day, can be a feat in itself.  When assessing parlor routine, ironically, some of the smallest things can make a world of difference.  Wearing gloves, making sure there is adequate predip coverage, and keeping in mind the contact time of predip before it is wiped off are just some examples of small tasks that can pack a big punch. Are all employees adequately following the standards that you have in place, leaving none out, and completing them properly? Milking clean, dry, teats is the name of the game, and all employees should be working towards a common goal.
-    The environment that your cattle are housed in can also be a factor that can play a role in poor milk quality.  Are your cows housed in mastitis infection yards, or are they in a well-ventilated dry area, with minimal contact to some of the key mastitis-causing bacteria?
-    When purchasing cattle, what kind of screening takes place before allowing these animals into your herd?  Assessing milk culture and production records, as well as quarantining the animals before allowing them the ability to infect your entire herd, can help to minimize instances of introducing a new infection to your herd.
-    Teat end health is critical when it comes to avoiding infection in your herd.  Milking equipment should be serviced routinely, as equipment not performing properly can cause teat end problems.   Using a five- point scoring system can help to analyze the condition of teat ends, as well as ensure that the bacteria-blocking keratin plug is able to fulfill its responsibilities.  Teat ends should maintain a smooth structure, avoiding any lesions or fraying, as these rough surfaces can more easily allow bacteria to enter the gland.

Nutrition and the use of organic trace minerals can also play a key role in milk quality, and can play a huge part in managing infections before they even occur.  For more information about managing milk quality and the Alltech On-Farm Solutions and Support program, please visit www.alltech.com or call (800)289-8324.