Thursday August 22 Ag News

New Dairy Display at Nebraska State Fair
Throughout the 2013 Nebraska State Fair, August 23 through Labor Day, it will be easy for fair-goers to notice Nebraska’s dairy presence.  New this year will be an expanded display connected to the milking parlor and dedicated to dairy.  Its focus is to share the Healthy People, Healthy Community and Healthy Planet story of dairy farmers.  Various breeds of dairy cattle will be featured along with fun facts, such as what a cow eats in a week and produces in a year.  

Annabelle, Midwest Dairy Association’s popular model milking cow, will be located in the Exhibition Building, providing a fun opportunity for children to get life-like experience milking a dairy cow.

Dairy judging will take place the first weekend of the fair, starting Friday morning with the open class dairy cattle show.  On Saturday and Sunday the youth dairy cattle show will take place in the Five Points Bank Arena.

The Nebraska Dairy Princess will make various appearances throughout the fair, reaching out to consumers to help them understand the important role dairy products play in a healthful diet, and providing information about how dairy farmers care for their cows.



Food price increases second lowest in 20 years. Still blame ethanol?
(from NE Corn Board blog)

Food prices rose just 1.8% in 2012, the second-lowest annual rate in the last 20 years, according to recently released consumer price index (CPI) data, Geoff Cooper, VP of Research and Analysis for the Renewable Fuels Association shared recently.

The new data demonstrates the absurdity of the alarmist rhetoric coming from Big Food about the impact of ethanol and the Renewable Fuel Standard (RFS) on consumer food prices. Indeed, annual food inflation has averaged 2.8% since the RFS was first enacted in 2005, compared to a 25-year average (1988-2012) of 2.92%.

Other interesting facts from the December CPI:
-    Food inflation in 2012 was barely higher than general inflation, which totaled 1.7% for the year.
-    Prices for “food at home” (i.e., groceries) in 2012 were just 1.3% higher than in 2011.
-    Prices for “food away from home” (i.e., restaurants) were 2.5% higher, indicating that restaurants marked food prices up at nearly twice the rate as grocers.
-    Prices for cereals and bakery products were just 0.8% higher.
-    Meats, poultry, fish and egg prices were just 1.5% higher in 2012, less than the overall food inflation rate and the general inflation rate.
-    Pork prices were actually lower in 2012 than in 2011.
-    Spending on meats, poultry, fish and eggs comprised about 2% of overall expenses for the average American family.
-    Prices for dairy and related products increased just 0.5% last year.

Use these facts the next time Big Food and Big Oil sound their bogus alarm bells about “skyrocketing” food prices and the effects of the RFS on food prices.



American Corn Growers Foundation Sponsoring 6th Annual Nebraska Wind Energy Conference

“For the sixth year in a row the American Corn Growers Foundation (ACGF) will sponsor the Annual Nebraska Wind Energy Conference. It will be held November 13-15, 2013 at the Cornhusker Hotel in Lincoln,” said Dan McGuire, ACGF Wealth from the Wind project director and Co-Chair of the 6th Annual Nebraska Wind Conference. “We anticipate another well attended conference as it will include state, regional and national wind energy leaders and experts. The program will be extremely informative and valuable. A great addition this year will be solar energy sessions, with industry experts and leaders.”

“Nebraska has come a long way since the early 2000’s when the ACGF launched our Wealth from the Wind public outreach and educational program here. By 2014, with existing and planned wind projects, the state is projected to have just over 800 MW (megawatts) of installed capacity. Nebraska still has a long way to go to catch up with our neighboring states but we have tremendous upside growth potential. Nebraska policy needs to facilitate more in-state community and distributed wind energy projects. More wind projects means more rural economic development and that’s a big boost for our total economy and for all Nebraskans,” says McGuire.

The 2013 conference program has a number of confirmed, well-known national wind and renewable energy industry experts. Speakers confirmed at this time include: national wind industry leader Dan Juhl, CEO of Juhl Energy; a former high level USDA rural development official; and representatives of Nebraska’s three major public power entities (NPPD, OPPD and LES). Nebraska is also part of the regional Southwest Power Pool (SPP) and there will be SPP experts speaking on the program to provide updates and information on transmission and other key issues. Other experts will include managers of two rural electric cooperatives.

McGuire and the ACGF urge individuals interested in the future of wind energy policy and project development in both Nebraska and regionally to visit the 2013 Nebraska Wind Conference web site at www.NebraskaWindConference.com where they can register early and consider being an exhibitor or sponsor.

“The 2013 Nebraska Wind Conference continues the essential public wind energy outreach work that ACGF has been doing in Nebraska for over ten years. The ACGF first launched our major public wind energy outreach effort in the state in the early 2000’s and later partnered with the National Renewable Energy Laboratory (NREL) and the Wind Powering America (WPA) program. Then in 2007 we teamed up with the Nebraska Wind Working Group. It has all been a very successful program.  The ACGF was very active with an educational booth at Husker Harvest Days early on,” said McGuire. “We had wind energy radio spots on the Rural Radio Network. We were at the Nebraska State Fair and in other regional venues such as the Farm Progress Show disseminating technical wind energy materials from NREL-WPA and AWEA to rural audiences and public officials. ACGF also helped lead the way in developing new wind energy policy in Nebraska. In 2003 the ACGF brought Minnesota wind industry policy leader Dan Juhl to Nebraska. Mr. Juhl convinced policy leaders of the rural economic benefits generated by wind energy, which led to the Nebraska Legislature adopting policies in 2007 that allowed the privately-owned wind projects we’re seeing built in the state today.”



Farmers invited to participate in Aug. 29 Soybean Sustainability Program

Soybean farmers are encouraged to learn more about a pilot program that procures sustainable soybeans for the retail market Friday, 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. 



Iowa State to Establish Advanced Manufacturing Innovation Network
Iowa State University will be establishing the Advanced Manufacturing Innovation Network with a $250,000 grant from the U.S. Economic Development Administration’s 2013 University Center Economic Development Program Competition. The grant was awarded to the ISU Extension and Outreach Center for Industrial Research and Service.

“The EDA University Center Program is an integral component of Iowa State University’s effort to drive innovation-based economic development and job creation in Iowa,” said CIRAS Director Ron Cox.

“The EDA-ISU partnership will help match university experts with advanced manufacturing companies to provide the innovation and technology solutions Iowa industry needs to remain competitive in a global economy,” Cox said.

The Advanced Manufacturing Innovation Network will help address gaps in Iowa’s economic ecosystem, said Mike O’Donnell, EDA program director with CIRAS. CIRAS will work with one sector in advanced manufacturing during each of the program’s five years. For each industry, CIRAS will perform a SWOT analysis — examining the strengths, weaknesses, opportunities and threats the industry faces. CIRAS experts will bring together university faculty, industry and Iowa leaders, applying a set of research-based tools to help this diverse group create innovative ideas for their industry. Teams formed during the summit will be coached to incubate those ideas and create innovative solutions to improve the industry or grow their business.

The term “advanced manufacturing” means looking at new ways of manufacturing existing products as well as new products that may emerge from advanced technologies. It can involve innovative use of information, automation and networking, as well as cutting edge materials and emerging capabilities.

Iowa State is one of 19 colleges and universities in 10 states receiving new EDA funding to run five-year programs that will leverage university assets to promote American innovation and strengthen regional economies. The EDA grants total $2.5 million.



IOWA FOOD & FAMILY PROJECT CONNECTS RECORD FAIR CROWDS WITH FOOD, FARMING

A one-of-a-kind sculpture consisting of nearly 40,000 LEGO® bricks attracted strong interest and record crowds to the Iowa Food & Family Project’s (Iowa FFP) “Get Connected to Farming” exhibit at the Iowa State Fair.

An estimated 300,000 fairgoers visited the display featuring a unique sculpture built by Sean Kenney, a LEGO® Certified Professional. Made completely of LEGO pieces and taking 300 hours to create, it featured a colorful representation of Iowa’s landscape including rolling farm fields interspersed with farms and towns surrounded by food grown, made and sold in Iowa.

Visitors to the IFFP exhibit tested their farming knowledge, mingled with farmers, participated in celebrity LEGO brick-build contests, created their own farm-themed creations using LEGO pieces and donated nearly $2,000 to the Iowa Food Bank Association (IFBA).

The exhibit featured a contest asking visitors to guess how many LEGO bricks were in the food and farming sculpture. More than 10,000 fairgoers submitted guesses – a record number. Karla Velasquez of Aurora, IL, received $500 in groceries courtesy of the Iowa Grocery Industry Association for her winning guess of 38,725, just six bricks shy more than the actual number of 38,719.

“Growing up in Iowa, I understand and appreciate the importance of agriculture. I think it’s neat how the Iowa Food & Family Project connected with fairgoers through LEGOs,” Velasquez says. “My family and I will make good use of the groceries as we travel to Iowa City to cheer on the Hawkeyes this football season. The Iowa State Fair is an annual event for our family, so we look forward to see what Iowa Food & Family Project has in store for next year.”

Placing second in the contest with a guess of 38,752 was Brian Wardenburg of Williamsburg, while first runner-up with a guess of 38,765 was Beau Christiansen of Ames. Both are winners of Casey’s Pizza-for-a-Year courtesy of Casey’s General Store. Martina Wolf of Des Moines was chosen randomly from the Iowa FFP’s more than 3,000 Facebook fans and also won $500 in groceries.

Aaron Putze, director of communications for the Iowa Soybean Association and Iowa FFP coordinator, said this year’s theme combined with the use of LEGO pieces and activities resonated with people of all ages.

“Our presence captivated the interest of fairgoers and offered our nearly 300 volunteers, many of whom were farmers, the opportunity to have unique conversations about today’s farms and to personalize their dedication to providing wholesome food for everyone,” Putze says. “The interactive exhibit also was the catalyst for a dramatic increase in traffic to our online presence, proof that people want to have ongoing conversations about food and farming topics.”

Special guests who visited the exhibit included Gov. Terry Branstad, Lt. Gov. Kim Reynolds, Iowa Ag Secretary Bill Northey, Iowa Lottery CEO Terry Rich, WHO-TV anchor and reporter Erin Kiernan and 2013 Iowa State Fair Queen Kelsey Smith. Mascots Cy, Herky, and Subman mingled with fairgoers and numerous reporters provided live and recorded coverage of the exhibit’s purpose and activities.

Those donating to the IFBA were also eligible to win a special gift. Denise Bubeck of Grimes received five cases of fresh pork loin courtesy of Iowa Select Farms. Bubeck will enjoy one case of fresh pork while the remaining four will be donated to a community food pantry of her choice.

For a complete list of all “Get Connected to Farming” prize winners and a fair photo gallery, go to iowafoodandfamily.com.

Exhibit sponsors were the Iowa Soybean Association, Iowa Pork Producers Association, Farm Credit Services of America, Midwest Dairy Association, Syngenta, Iowa Food Bank Association, Iowa Grocery Industry Association and United Soybean Board.

Also during the fair, the Iowa FFP teamed with the Iowa Soybean Association, GROWMARK and the Iowa State Fair to support the packaging of more than 255,000 servings of soy-based meals for Meals from the Heartland on the fair’s opening day on Aug. 8.

            The Iowa Food & Family Project (iowafoodandfamily.com) is dedicated to uniting Iowans in conversations about today’s farms and food system through personal engagement and advocacy. It believes the more we know about farming, the more we grow and proudly serves as presenting sponsor of the Iowa Games and supporter of Live Healthy Iowa.



Commercial Red Meat Production Up From Last Year

Commercial red meat production for the United States totaled 4.16 billion pounds in July, up 5 percent from the 3.95 billion pounds produced in July 2012.

Beef production, at 2.29 billion pounds, was 4 percent above the previous year. Cattle slaughter totaled 2.89 million head, up 4 percent from July 2012. The average live weight was up 7 pounds from the previous year, at 1,302 pounds.

Veal production totaled 9.6 million pounds, 1 percent above July a year ago. Calf slaughter totaled 70,000 head, up 4 percent from July 2012. The average live weight was down 7 pounds from last year, at 234 pounds.

Pork production totaled 1.84 billion pounds, up 7 percent from the previous year. Hog slaughter totaled 9.08 million head, up 6 percent from July 2012. The average live weight was up 2 pounds from the previous year, at 271 pounds.

Lamb and mutton production, at 14.1 million pounds, was up 13 percent from July 2012. Sheep slaughter totaled 211,600 head, 19 percent above last year. The average live weight was 133 pounds, down 7 pounds from July a year ago.

January to July 2013 commercial red meat production was 28.3 billion pounds, up slightly from 2012. Accumulated beef production was up slightly from last year, veal was down 6 percent, pork was up slightly from last year, and lamb and mutton production was up 2 percent.

Nebraska ..:     632.5 million pounds, +7% from July 2012
Iowa .........:     520.6 million pounds, +7% from July 2012
Kansas ....:     513.9 million pounds, +11% from July 2012



US and Canadian Hog Inventory Up Slightly

United States and Canadian inventory of all hogs and pigs for June 2013 was 79.6 million head. This was up slightly from June 2012, and up 2 percent from June 2011. The breeding inventory, at 7.10 million head, was up slightly from a year ago and up 1 percent from 2011. Market hog inventory, at 72.5 million head, was up slightly from last year and up 2 percent from 2011. The semi-annual pig crop, at 73.1 million head, was up slightly from 2012 and up 3 percent from 2011. Sows farrowing during this period totaled 7.08 million head, down 1 percent from last year and down 1 percent from 2011.

United States inventory of all hogs and pigs on June 1, 2013 was 66.6 million head. This was down slightly from June 1, 2012 but up 2 percent from March 1, 2013. The breeding inventory, at 5.88 million head, was up slightly from last year and up 1 from the previous quarter. Market hog inventory, at 60.8 million head, was down slightly from last year, but up 2 percent from last quarter. The March-May 2013 pig crop, at 30.1 million head, was up slightly from 2012 and up 3 percent from 2011. Sows farrowed during this period totaled 2.92 million head, down 2 percent from 2012 but up slightly from 2011. 

Canadian inventory of all hogs and pigs on July 1, 2013 was 12.9 million head. This was up 1 percent from July 1, 2012 and up 2 percent from July 1, 2011. The breeding inventory, at 1.22 million head, was up slightly from last year and up 1 percent from 2011. Market hog inventory, at 11.7 million head, was up 1 percent from last year and up 2 percent from 2011. The semi-annual pig crop, at 13.9 million head, was down 2 percent from 2012 and down 1 percent from 2011. Sows farrowing during this period totaled 1.28 million head, down 4 percent from last year and down 6 percent from 2011.

This publication is a result of a joint effort by Statistics Canada and NASS to release the total hogs, breeding, market hogs, sows farrowed, and pig crop for both countries within one publication. This information was requested by the United States hog industry to provide producers additional information about potential hog supplies. United States inventory numbers were previously released on June 28, 2013.



USDA Cold Storage Highlights

Total red meat supplies in freezers were down 3 percent from the previous month and down slightly from last year. Total pounds of beef in freezers were down 4 percent from the previous month but up 1 percent from last year. Frozen pork supplies were down 4 percent from the previous month and down 1 percent from last year. Stocks of pork bellies were down 33 percent from last month but up 1 percent from last year.

Total frozen poultry supplies on July 31, 2013 were up 3 percent from the previous month and up 5 percent from a year ago. Total stocks of chicken were up 4 percent from the previous month and up 5 percent from last year. Total pounds of turkey in freezers were up 3 percent from last month and up 6 percent from July 31, 2012.

Total natural cheese stocks in refrigerated warehouses on July 31, 2013 were up slightly from the previous month and up 5 percent from July 31, 2012.  Butter stocks were down 7 percent from last month but up 26 percent from a year ago.

Total frozen fruit stocks were up 31 percent from last month and up 16 percent from a year ago.  Total frozen vegetable stocks were up 8 percent from last month and up slightly from a year ago.



USFRA's Food Dialogues Go Regional

Following the success of the Food Dialogues event series, the U.S. Farmers and Ranchers and some of its affiliates have kicked off a series of regional events to bring communities together to talk about food and farm issues.

"We're very proud to be part of USFRA and bring the conversation about food and farming from our fields to homes across America," said NCGA Corn Board member Mike Geske, a Missouri corn farmer and member of USFRA's board of directors. "These regional events help us spread the dialogue so we can hear from more people and share our stories about farming and ranching."

These events kicked off last week with The Food Dialogues: Ohio, held in Columbus. This event features two discussions focused on biotechnology and sustainability to be moderated by local talk radio host Joel Riley.

The first panel discussion, "Biotechnology (GMOs) And Your Food," explored the role of science when it comes to issues tied to food. Experts addressed tough questions like whether GMOs present long-term health risks and how biotech crops affect the environment. The second panel discussion, "Sustainability And Your Food," focused on how our food production system impacts the environment and our economy. Farmers, ranchers, academics and industry experts talked about what "sustainability" means to them, and food producers had the opportunity to share what they do on the farm to ensure a safe, sustainable food supply.

The Ohio event took place in collaboration with the Ohio Soybean Council and Ohio Farm Bureau Federation. These discussions can be viewed online here.

Coming up next, on September 19, two events will take place - The Food Dialogues: Missouri, working with Missouri Farmers Care, and The Food Dialogues: North Carolina, in conjunction with the North Carolina Animal Agriculture Coalition. These events will bring together an exciting set of diverse panelists to discuss some of the most pressing topics in food production today. And, each of the events will stream live on the affiliates' website for all to tune-in.

For more information on USFRA, visit www.fooddialogues.com.



‘Time for Congress to Get Things Done’

Farm Bureau is working hard to “Bring the Heat” during the August congressional recess, so members of Congress know they need to get things done when they return to Washington, according to American Farm Bureau Federation President Bob Stallman.

“The farm bill is at the very top of the list of things Congress needs to get done,” Stallman said in remarks presented at IDEAg Dakotafest. “We have to keep the heat on Congress to get a five-year farm bill done this year. It’s premature to even be talking about an extension” of the 2008 legislation, Stallman emphasized.

Although some in Washington have expressed skepticism regarding the speed at which lawmakers will need to act in order to complete a farm bill, Stallman was upbeat.

“There is plenty of time in this Congress to pass a five-year farm bill. We have to stay focused on getting it done,” he said.

Calling a proposed one-year extension of the current farm bill “a cop-out,” Stallman urged farmers and ranchers to keep sending Congress the message that agriculture needs a new, five-year farm bill – nothing less.

The number one reason a new farm bill is critical, according to Farm Bureau, is because another extension does not give farmers and ranchers the certainty they need to plan the crops they intend to grow and obtain financing ahead of time.

In addition, policy reforms – such as a larger role for crop insurance as part of the farm safety net, more equity across crops grown and increased support for fruit and vegetable growers – that have been proposed in the new legislation are not possible if the current farm bill is extended.

Further, a new farm bill would help Congress get the nation’s fiscal house in order by saving about $20 billion compared to the 2008 law.

“Everyone who eats needs a farm bill. Please tell your senators and House members to get the job done,” Stallman concluded.

Gen. McChrystal to Keynote AFBF Annual Convention
Gen. Stan McChrystal, a retired four-star general and former commander of U.S. and international forces in Afghanistan, will deliver the keynote address at the American Farm Bureau Federation’s 2014 Annual Convention, Jan. 12-15, 2014, in San Antonio, Texas.

More than 7,000 Farm Bureau members from across the nation are expected to gather in San Antonio for the 95th Annual Convention to hear from distinguished leaders and participate in a grassroots policy-setting process that will guide AFBF through 2014.

McChrystal has been referred to as “one of America’s greatest warriors,” dedicating 34 years of military service to the U.S. He is a former leader of the Pentagon’s Joint Special Operations Command, which oversees the military’s most sensitive forces. His leadership of JSOC is recognized for the December 2003 capture of Saddam Hussein as well as Abu Mousab al-Zarqawi, the leader of al-Qaeda in Iraq, in June 2006.

“Farm Bureau is excited to announce Gen. Stan McChrystal as our keynote speaker,” said AFBF President Bob Stallman. “His dedication to our country, marked by one-of-a-kind leadership skills and a noteworthy record of achievement, is truly motivating,” he added.

McChrystal retired from the military in 2010. He currently teaches a leadership course at Yale University and is the co-founder of the McChrystal Group, which delivers innovative leadership solutions to organizations. He is also the author of the best-selling leadership book, “My Share of the Task: A Memoir.”

Farm Bureau members can register for the 95th AFBF Annual Convention through their state Farm Bureau. Learn more about convention events and related activities at http://annualconvention.fb.org/.

Tablet App for ‘My American Farm’ Now Available
The American Farm Bureau Foundation for Agriculture has released a tablet app modeled after the popular agricultural game site, “My American Farm.”  The app is now available for free download on iTunes and Google Play.

The app features five games from My American Farm – In My Barn; My Little Ag Me; Equipment Engineer; Farmer’s Market Challenge; and Ag Across America.

App users are rewarded with a virtual sticker after successfully completing each game. Stickers can be dragged and dropped onto a virtual passport, allowing users to track their progress.

New resources have also been developed to provide guidance for using the app in a traditional or non-traditional setting. A formal lesson plan for classroom instruction, as well as tips and tricks for suggested integration in a variety of settings will be available at www.myamericanfarm.org/games. For additional information, email myamericanfarm@fb.org.

The My American Farm educational resource is a special project of the Foundation. The site and resources are made possible through the generous support of title sponsor, DuPont Pioneer. To take advantage of the free My American Farm resources, games and activities, visit www.myamericanfarm.org.



About 7 Cents of the U.S. Food Dollar Added by Farms

For a typical dollar spent in 2011 by U.S. consumers on domestically produced food, 15.5 cents represents the farm share, or value added at the farm gate. The farm share includes the value added by the farmer; services and supplies from agribusinesses; and farm-level inputs from nonagribusiness industries, according to data released by the Economic Research Service.

For example, the energy industry supplies natural gas to agribusinesses producing nitrogen fertilizers used on U.S. farms, and the finance and insurance industry supplies financial services to U.S. farmers. Nonagribusiness industries accounted for 4.6 cents of the farm share in 2011, and agribusinesses added 3.0 cents of value.

From the remaining 7.9 cents of farm value added, 6.6 cents was produced on U.S. farms and 1.3 cents represents imported farm commodities purchased as inputs by U.S. producers.

Most of the farm value added represents property income accruing to the farmers who own the farm operations. Salaries and benefits for hired farmworkers amounted to 1.7 cents.

Net farm subsidies from the Government lowered farm commodity costs per food dollar by about 1 cent in 2011.



China 2013-14 Corn Imports May Rise to 10 Mln Tons

China's corn imports are likely to rise more than threefold to 10 million metric tons in 2013-14 due to high domestic prices and rising demand for meat, a senior industry official said Thursday.

If the forecast turns out to be true, China will surpass Mexico and South Korea to become world's second-largest corn importer after Japan, with around 10% share in global trade, and will boost global prices.

There is no serious problem with China's upcoming corn harvest but demand exceeds supply, prices are high and imports next marketing year will be one of the highest ever, Bryan Lohmar, Country Director for China at the U.S. Grains Council said.

Corn prices in major consuming regions in China are closer to $390/ton, Mr. Lohmar said. U.S. corn on a delivered basis for December shipment to Chinese ports is now offered around $245/ton, he said.

"Buyers have already used up most of their import quotas for this (calendar) year and if permitted, they would buy immediately for next year as well," Mr. Lohmar said. China allots quotas for corn imports to private and state-run companies totalling around 7.2 million tons every calendar year. This quota for 2014 may be used up in the first nine months itself. After, including likely corn imports during fourth quarter of 2013, total marketing year imports may reach 10 million tons or even higher, Mr Lohmar said.

Despite a likely rise in domestic output, China has already bought 3 million tons of U.S. new crop corn that will be harvested in a few weeks, up from 800,000 tons during this time a year earlier, according to an estimate of the U.S. Department of Agriculture.

Global corn prices have declined by more than 40% after hitting a record high an year ago, due to a serious drought in the U.S. and parts of South America. Higher global supply and lower import prices are prompting China's government agencies and animal feedmillers to replenish corn stocks, Mr. Lohmar said.

China consumes more than 50 million tons of pork each year, with demand growing around 7%-8% annually, according to industry estimates.



2013 Harvest Analysis Detects Mycotoxin Threat

It’s not too early to begin scouting the fields, preparing for the 2013 harvest and the potential mycotoxin challenges it may bring.

Producers are still dealing with the 2012 contaminated corn crop and the issues it has brought to cow health and performance. Alltech’s 37+ Program surveyed 329 samples from July 1 through Dec. 31, 2012, and results showed only one percent of the samples analyzed were free of mycotoxins.

Analyses conducted since January has shown similar results but with interesting new findings: the numbers of mycotoxins present are still increasing.

“This increase in the total numbers of mycotoxins over time can be attributed to areas such as poor fermentation and inadequate packing or face management that can contribute to further mold growth and mycotoxin production,” said Dr. Max Hawkins, Alltech Mycotoxin Management Team.

While 2013’s crop may have different results, Hawkins said mycotoxins are already showing up in different parts of the country due to late planting, more moisture and temperature swings.

“Producers need to implement a mycotoxin control program now to reduce the threat to their herds,” Hawkins said. “This is the time to be proactive.”

Hawkins said the new crop is variable across the country due to weather and planting, and the early samples of wheat and barley are showing DON. Hay and haylage analyses have also shown mycotoxins present and, without a preventative plan, cows may experience a drop in milk production as well as health issues.

Due to the “trash” or crop residue on top of the ground during a cold, wet spring, an ideal climate was created for many fusarium molds to get a foothold.

The future mycotoxin picture is still unclear but the levels of harmful contaminants will depend on the weather leading up to harvest and the way crops are stored. At harvest time, it is recommended for mycotoxin contaminated grain to be dried to 14 percent moisture within 24 to 48 hours to stabilize mold growth and ensure adequate grain storage. By limiting mold growth, mycotoxin production can be stabilized, but any mycotoxins already present would remain.

Hawkins recommends producers using the rest of the 2012 crop should only run aeration fans during the coolest times of day or night and continually monitor stored grain for temperature and mycotoxins.

Mold growth in storage is greater where there are leaks in facilities and where fines and damaged kernels are concentrated. Grain should be held at 50 degrees Fahrenheit or less as new mold growth will increase temperature and moisture in surrounding grain.

Hawkins encourages producers to be vigilant with their myocotoxin management programs as they finish out the 2012 harvest and continue to track the 2013 crop as harvest approaches.



Class III Milk Price May Still Hit $18 cwt. This Fall

Despite record dairy product exports for the first six months of this year and a slowdown in total milk production increases compared to 2012, milk prices haven't exactly spiked in a way that most experts have predicted. Dr. Bob Cropp with the University of Wisconsin-Extension noted in his monthly Dairy Situation and Outlook report this week that a few scenarios may be holding the price of milk back this summer.

"It now appears that milk prices will not peak as high this summer and fall as earlier predicted. Milk production in relation to domestic demand and exports is keeping prices lower," Cropp said.

He says last year's hot weather and high feed prices kept milk production below 2011 levels in the late summer/early fall. But this year, the estimated July milk production is expected to hit near-record levels in the 23 major dairy states.

"For the most part, compared to a year ago, July milk production among the 23 reporting states shows a similar pattern as recent months, with lower or small increases in the West, and increases in the Northeast and Upper Midwest," he noted. "Of the 23 states, just four had lower milk production in July versus a year ago, and all were in the West."

Cropp adds that while margins have fallen a little for the past two months due to lower milk prices, they have been higher overall since March of this year. This, along with anticipated low feed prices this fall and winter may be encouraging an expansion in milk cow numbers--which means even more production could be coming down the pipeline during the next year.

So what's in store for the rest of 2013? The professor emeritus says the August Class III should be higher than the $17.38/cwt. July price because cheese prices have been averaging a little higher than last month. If you add the fact that production usually declines seasonally, schools will be opening soon and dairy exports continue to look strong, Cropp says the fall Class III price may still high the upper $18 mark by October.



United States Chickens & Egg July Report 

United  States  egg  production  totaled  7.97  billion  during  July  2013,  up  3  percent  from  last  year.  Production included  6.88  billion  table  eggs,  and  1.09  billion  hatching  eggs,  of which  1.01  billion were  broiler-type  and 77 million were egg-type. The total number of layers during July 2013 averaged 344 million, up 2 percent from last year. July egg production per 100 layers was 2,313 eggs, up slightly from July 2012.

All  layers  in  the  United  States  on  August  1,  2013  totaled  345  million,  up  3  percent  from  last  year.  The 345 million  layers  consisted  of  289 million  layers  producing  table  or market  type  eggs,  52.6 million  layers producing broiler-type hatching eggs, and 3.15 million layers producing egg-type hatching eggs. Rate of lay per day on August 1, 2013, averaged 74.5 eggs per 100 layers, down slightly from August 1, 2012.

Egg production in Iowa for July 2013 was 1.23 billion eggs, up 3 percent from last month, and up 1 percent from last year,  according to the latest Chickens and Eggs release from USDA’s  National Agricultural Statistics Service. The total number of layers  on hand during July was 52.5 million, down fractionally from last month, but up 1 percent from the 51.8 million in July, 2012.  Eggs per 100 layers for  the month of July were 2,343, 3 percent higher than last month, but down fractionally from the 2,350 last year.



Japanese Team to Examine U.S. Wheat Crop from Farm to Port

Japanese flour millers – and their customers – want to know more about the system that produces, transports, inspects and ships the wheat used in their products. And, because Japan typically accounts for 10 percent of all U.S. wheat imports, U.S. Wheat Associates (USW) and its state wheat commission members are happy to satisfy that request.

From August 25 to 31, USW is bringing a team of mid-level flour milling managers to Oregon, Washington and North Dakota to gain a better understanding of U.S. wheat breeding, production, handling and marketing systems. The four team members, all of whom are involved in flour production and quality control for their respective companies, will also gain firsthand knowledge of this year’s soft white (SW), hard red spring (HRS) and durum wheat crops.

“These team visits reinforce the strong relationship between Japanese millers and U.S. wheat farmers,” said USW Japan County Director Wataru “Charlie” Utsunomiya, who will accompany the team. “It is important to help mid-level managers, who will eventually have full responsibility for production and evaluating inputs, gain insight and perspective into U.S. wheat’s consistently high quality, reliability and value.”

USW worked with the Oregon Wheat Commission, Washington Grain Commission and North Dakota Wheat Commission to organize this year’s team in addition to collaborating with other industry organizations. 

This team was planned far in advance of the discovery of volunteer wheat plants with an unapproved genetically modified (GM) trait in a single field in Oregon and Japan’s government suspension of new tenders for Western White, a sub-class of soft white wheat. Japan’s Ministry of Agriculture, Forestry and Fisheries, which purchases imported wheat, resumed tenders for Western White wheat in late July, thanks in part to USW, the U.S. commercial grain trade, state wheat organizations and wheat farmers helping identify and share the most accurate information from the ongoing APHIS investigation to buyers, government agencies and end users.



Brazil Declared 99% FMD Free

More than 205 million head of cattle--99 percent of the national herd have been declared free of foot and mouth disease by the agriculture minister, Antonio Andrade.  According to the ministry, the regions of Alagoas, Ceara, Maranhao, northern Para, Paraiba, Pernambuco, Piaui and Rio Grande de Norte are free of the disease.  This represents the premier cattle regions. The Maranhao herd is over 7.4 million, the biggest in the country and Para, with 4.6 million cattle, has the largest buffalo herd of over 450,000.

However, official confirmation for the country as a whole is still required for approval on an international level from the World Organization for Animal Health which currently has the figure at 78 percent FMD free.  This figure pertains to the Amapa, Roraima and Amazonian areas unable to eradicate the disease.

Authorities expect to receive certification from the OIE is expected by May 2014.



Pickens to Headline 2014 Land Investment Expo on Jan. 24 in West Des Moines, Iowa

Big thinking on big issues from big money will fuel the seventh annual Land Investment Expo on Jan. 24 at the Sheraton Hotel West Des Moines.

One of the world’s richest men will travel to the epicenter of the U.S. biofuels boom to deliver the 2014 Land Expo’s keynote presentation, “Powering America's Energy and Economic Future: A Conversation with T. Boone Pickens.” Pickens is the strategic and managerial force who founded Mesa Petroleum and built it into one of the largest independent natural gas and oil companies in the U.S. before his departure in 1996. Since then, he founded BP Capital, a highly successful energy investment fund, and has embarked on a five-year initiative known as the Pickens Plan, aimed at addressing the national security and economic risks associated with America’s dependence of OPEC oil.

The Land Investment Expo, presented by Peoples Company real estate firm, is a daylong event that annually attracts the brightest minds in land investing and farm real estate to central Iowa. Peoples Company President Steve Bruere tapped Pickens as this year’s featured luncheon speaker to showcase the Oklahoma native’s folksy, no-holds-barred approach to solving America’s energy crisis and the lessons he has learned over the course of his outstanding professional life.

A longtime advocate for harnessing domestic alternatives and developing even greater new technologies, the man CNBC dubbed “The Oracle of Oil” for his uncanny knack of predicting oil price movements now is on a mission to enhance U.S. energy policies to lessen the nation’s dependence on Middle Eastern oil.

July marked the fifth anniversary of his Pickens Plan, with its cornerstone focus on expanding the use of America’s natural gas in heavy-duty trucks and fleet vehicles in place of OPEC oil, diesel and gasoline. “In a nutshell, we’ve got the supply, the technology, and the infrastructure in place,” Pickens posted July 16 on his video blog (www.pickensplan.com/boonecam/2013/07/16/the-natural-gas-highway-is-open/). “I can’t wait to see what we accomplish over the next five years!”

Pickens’ wide range of other business interests extends to land ownership, as well. A recent story in The Land Report magazine noted he was one of the first to recognize the investment potential in owning land in northern Texas. Pickens has profited from buying working livestock ranches, improving them with wildlife enhancement and reselling them. “What we’re trying to do is change the traditional way that land has been treated,” Pickens told the magazine. “It’s going to be treated with respect.”

“T. Boone Pickens’ investment approach acknowledges the link among energy demand, commodity prices and land values that form the core of our business,” Bruere said. “Beyond agricultural production, he grasps the opportunities for wildlife habitat, recreational use, water and mineral rights – even pipeline easements – in land ownership.

“Boone was at the forefront of the current trend of oil and energy investors to buy agricultural properties. Now we’re seeing other Forbes billionaires like brothers Farris and Dan Wilks plowing their oil wealth into ranch- and farmland. His expertise is a natural centerpiece for the upcoming Land Expo event.”

Besides Pickens’ thoughts on what’s ahead for energy and the economy, the 2014 Land Investment Expo will extend the ongoing discussion on climbing farm values with inputs from a slate of experienced investors, lenders, climate specialists, policy experts and business leaders.

Featured speakers will include John Roach, an Iowa native who founded commodity brokerage Roach Ag Marketing, Boca Raton, Fla.; climatologist, author and global warming skeptic Patrick Michaels, director of the Center for the Study of Science at Washington’s Cato Institute; nationally acclaimed economist Elliot Eisenberg, formerly a senior economist with the National Association of Home Builders in Washington; Mark Dotzour, chief economist and director of research at the Real Estate Center at Texas A&M University, College Station; Iowa entrepreneur Bruce Rastetter, CEO of Summit Farms, Alden, Iowa; and Marcia Zarley Taylor, executive editor responsible for farm business coverage at DTN commodity news service, Omaha, Neb. Ag broadcaster and reporter Ken Root, former executive producer and anchor of the Agribusiness Report, will return as master of ceremonies.

Overall, the 2014 Land Expo will remain the cornerstone of Bruere’s efforts to position Peoples Company as a leader in the U.S. land business. Each event since 2008 has been a sellout, and Bruere fully expects another capacity crowd of 600 bankers, farmers, real estate agents, investors and developers at his seventh annual Land Expo.

“Peoples Company specializes in land brokerage, land auctions, land management, land development and crop insurance, and we want to be a resource to past, current and future clients by providing information without obligation,” Bruere said. “Educational events like the Land Investment Expo represent Peoples Company’s aggressive efforts to connect investors, farmers and owners with global opportunities.”

In addition to the Jan. 24 Land Expo, Peoples Company will host a pre-event reception from 4 to 6 p.m. on Jan. 23 at the Sheraton West Des Moines Hotel. More information about both events is available at www.LandInvestmentExpo.com or 855-800-LAND (5263).