Thursday August 29 Ag News

Another Retailer in Nebraska to Offer E15

Frontier Coop will begin offering E15 for 2001 and newer vehicles at four locations beginning September 20. A grand opening promotion will be announced soon.

Vehicles that are 2001 and newer account for 75% of the vehicles on the road and those vehicles consume over 85% of the fuel sold in the country.

Frontier Coop will offer E15 as a fuel choice for consumers in Weston, Brainard, Ceresco, and Dwight. “E15 seemed like the logical fuel to offer to support our local economies,” said Jeff Ingalls, energy department manager for Frontier Coop. “We want to give consumers fuel choice and what better than to offer a locally homegrown and produced fuel?”

All the necessary steps to offer E15 were followed by Frontier Coop including being registered for the fuel survey, adopting the misfueling mitigation plan created by the Renewable Fuels Association, and the pumps will be labeled properly for selling E15.

“It is a great feat for the ethanol industry to see E15 sold in multiple states, and we are pleased that Nebraska is expanding the number of locations offering E15 for 2001 and newer vehicles,” said Robert White, director of market development for the Renewable Fuels Association.

Due to a lack of a one pound reed vapor pressure waiver for E15, retailers must change their labels in the summer months and offer E15 to flex fuel vehicles only. Beginning September 15 retailers can resume offering E15 to 2001 and newer vehicles.

“It has been 30 years since a new fuel has been introduced, and just after a year, E15 is starting to gain traction, and will be sold in nine states starting September 15,” said White.

“It is great to see our rural communities supporting their local corn farmers. There are so many benefits of ethanol fuel and moving to E15 adds to the benefits,” said Don Hutchens, executive director of the Nebraska Corn Board.

Nebraska is the second largest producer of ethanol in the United States. Ethanol creates jobs, spurs economic development, increases energy independence, and helps Nebraska drivers by lowering the price at the pump. E15 is moving us in the direction of being even more self-sufficient.



Eight Soybean Producers Win Free Biodiesel

The Nebraska Soybean Board (NSB) held its annual Soybean Management Field Days on August 13-16, across the state at four locations: Minden, York, Pierce and Waterloo. The four-day event included cool temperatures and spotty rain showers at each of the locations, but attendance was very good. The four-day numbers included over 500 soybean producers, crop advisors, and other industry affiliates.

This year marked the second time that NSB partnered with the United Soybean Board to give away two 300-gallon prizes of biodiesel at each of the four locations. Winners of the biodiesel drawing included the following producers at the respective locations:

Minden:  Kenny Long, Kearney and Robert Olson, Holdrege
York:  Ronald Hayek, Friend and Steven Gabel, Osceola
Pierce:  Roger Gabelman, Neligh and Ervin Kander, Clarkson
Waterloo:  Jerry Ostransky, Wahoo and Wes Anderson, Kennard

The Nebraska Soybean Board would like to congratulate the winners and thank all participants for helping to make this year’s Soybean Management Field Days one of the most successful to date.



Iowa Farm Bureau Wraps Up Summer Policy Conference

Iowa Farm Bureau voting delegates shared concerns about infrastructure problems, regulatory implications, and watershed management as they gathered in West Des Moines Aug. 27-28 to set state and national legislative policy. Water and soil conservation and country of origin labeling also topped their discussions.

"Over the last two days, our voting delegates discussed these priority issues and planned our course of action for 2014," said IFBF President Craig Hill.

Iowa's largest grassroots farm organization called for Watershed Management efforts to be established with balanced urban and agricultural representation from within that watershed, as members showed enthusiasm for conservation and improving Iowa's soil and waterways. "Our Farm Bureau members are considering what they can do to make a difference on their farms and be visibly seen as leading the way towards progress in water quality," Hill said. "After all, the overall goals of farmers and non-farmers have always been the same: to keep our soils strong and our water safe, and this is just one more way to assure progress in the field continues."

Transportation infrastructure funding also found consensus among IFBF farmers. "It's a continuous effort to fund road infrastructure to facilitate sustainability and growth," said Hill. "This isn't just an agricultural issue; this is an issue that affects all Iowans."

Another lively discussion at the IFBF Summer Policy Conference concerning the national issue of country of origin labeling (COOL). "Trade compliance is very important to us, and we want to be a good trading partner," said Hill. "IFBF members concluded that a mandatory COOL for meat harms open trade between the U.S. and our neighbors, and our members prefer a voluntary meat labeling program."

The IFBF Summer Policy Conference is a step in Farm Bureau's grassroots policy development process, which begins in the spring at the county level. The national policies will now be subject to debate during American Farm Bureau Federation policy discussions in January 2014 in San Antonio.



Bull, heifer reservations due for IA Cattlemen Evaluation program

Iowa cattle producers who want to enroll their seedstock bulls and heifers in the evaluation program managed by the Iowa Cattlemen’s Association can make their reservations now. Both consignment and private reservations for fall-born and spring-born bulls will be taken through Sept. 27, or until pens are full. Heifer reservations can be made through Nov. 22, or until pens are full.

Each year, breeders in the Midwest enter hundreds of bulls and open heifers into the program for comparison and benchmarking, says Kellie Carolan, ICA’s seedstock manager. “The value of the ICA evaluation program is producers can compare their genetics to other producers,” Carolan says. “This is an excellent opportunity to get important performance information on your seedstock without having to tie up lot space.”

New this year for the evaluation program service will be the addition of high density DNA testing as an added option for bulls and females enrolled in the program. Throughout the test history, the ICA Performance Evaluation Committee has always strived to give bull and heifer buyers and the seedstock producers more information to assist in their genetic selection process. That information ranges from being part of bull selection clinics, adding ultrasound data and pelvic measurements to the catalog in recent years, to including PI-BVD testing for  all cattle and adding new EPDs and indexes to the catalog.

ICA’s Bull Evaluation Program has been in place since 1985. The goal of the program is to provide bulls that meet the program’s two basic objectives: 1) evaluate high-quality bulls in a common environment and; 2) identify and merchandise a select group of bulls which excel in traits that have a high economic value. The performance evaluation of heifers started in 1999, with the same basic tenets.

The fall bulls will be fed and evaluated at Kirkwood Community College in Cedar Rapids, while the spring bulls and open heifers will be delivered to the Van Meter Feedyard near Guthrie Center.

The quality genetics that come from this ICA program are offered to commercial cattle producers at three sales across Iowa in the spring. Those sales will be at auction barns in Bloomfield on March 17, 2014;  in Dunlap on March 28, 2014; and in Tama on May 2, 2014.

Bulls and heifers will be evaluated through the feeding period, and need to meet strict selection criteria to be eligible for an ICA sale and be worthy of the ICA ‘Symbol of Excellence.’ “As an ICA bull and heifer consignor you have the opportunity to open another market for your seedstock,” Carolan says. “The ICA evaluation program has a long reputation of offering elite genetics to commercial breeders and other purebred producers.”

“Using the private reservations may be best for producers interested in a cost-effective way of gathering ultrasound and performance data on their herd, while reserving the right to take their stock home after the evaluation,” Carolan says.

Details for program requirements can be found at the ICA website, www.iacattlemen.org. Look for Bull and Heifer Program under the ICA Programs tab. You can also call 515-296-2266 or email Kellie@iabeef.org for more information.



FY 2014 Exports Forecast Down $5 Billion From Record; Imports at a Record $113 Billion
 
Fiscal 2014 agricultural exports are forecasted at $135 billion, down $5 billion from the $140 billion forecast for fiscal 2013.  Oilseeds and products are expected to decline the most, down $5.4 billion due to lower soybean and meal prices. Grain and feed exports are expected to fall $1.7 billion due to lower wheat, rice, and feeds and fodders exports.  Cotton exports are forecast down $700 million due to lower domestic production and reduced demand from China. Little change is expected in exports of livestock, poultry, and dairy products, while horticultural exports are forecast to increase $2.5 billion to a record $34.5 billion. Agricultural exports to China are forecast down $2 billion from fiscal 2013 and Canada is expected to return to its position as the top U.S. market for agricultural products.

U.S. agricultural imports are forecast at a record $113 billion, $8 billion higher than in fiscal 2013.  Increases in import value are expected for most products in 2014, with the largest gains in horticultural products and sugar and tropical products.  The U.S. agricultural trade surplus is expected to fall by $13 billion in fiscal 2014, to $22 billion. This would be the smallest surplus since 2007.

For fiscal 2013, the record $140 billion forecast for agricultural exports is up slightly from last quarter’s forecast. Fiscal 2013 imports are forecast at $105 billion, $6 billion lower than the May forecast, but still expected to exceed imports for any previous year. 

Export Products
Fiscal year 2014 grain and feed exports are forecast at $28.8 billion, down $1.7 billion from the 2013 estimate, a decline driven by sharply lower grain prices.  Wheat is forecast at $7.7 billion, a drop of $1.9 billion due to lower prices and volume. Abundant exportable supplies in competitor countries are expected to limit growth opportunities. Feeds and fodders are down $1.4 billion because distiller’s dried grains (DDGS) value is expected to drop sharply with corn prices.

Coarse grain exports are forecast at $8.4 billion, up $2.3 billion, mostly on higher corn volumes as exportable supplies are replenished following last year’s drought-decimated crop.  Corn is up $2.0 billion to $7.5 billion because of a near-doubling of volume with a forecast record crop; however, unit values fall by more than 25 percent.  Rice exports, at $2.1 billion, are down 10 percent due to smaller supplies, an expected reduction in sales to South America and the Middle East, and more competition from lower-priced exporters.  

The fiscal 2013 estimate for grain and feed exports is up $500 million to $30.5 billion. Wheat is up $600 million to $9.6 billion on higher volume, particularly to Brazil and China. Corn is reduced $500 million to $5.5 billion due to lower volumes as a result of competitive pressures. Feed and other products are up $400 million on both higher values and volumes. Rice is up $100 million to $2.3 billion on stronger sales to the Caribbean and South America.      

The fiscal 2014 export forecast for oilseeds and products is forecast at $26.4 billion, down $5.4 billion from the 2013 estimate, driven by lower soybean and meal prices in response to an improved domestic supply.  Soybeans are forecast to drop $2.4 billion to $18.4 billion as lower unit values more than offset higher volumes.  Soybean meal is projected down as domestic consumption rebounds, encouraged by lower prices and increased use in the pork and poultry sectors.  Soybean oil is forecast to fall as a greater share of supply is diverted to the energy sector.  

Oilseed and products exports for fiscal 2014 are forecast at $26.4 billion, down $5.4 billion from the 2013 forecast, driven by lower soybean, meal, and oil prices in response to larger domestic soybean supplies.  Soybean exports are forecast to drop $2.4 billion to $18.4 billion as lower unit values more than offset higher volume.  Soybean meal exports are forecast down on lower unit values and volume.  Meal export volume is forecasted lower on increased competition from South America.  In addition, growth in domestic consumption limits export availability. Soybean oil is forecasted to fall on reduced volume due to increased competition from South America, especially Argentina, where sharp reductions in biodiesel exports leads to gains in exportable supplies of soybean oil.  In addition to increased competition, expanded use of soybean oil as feedstock for biodiesel in the United States limits exportable supplies. 

Fiscal 2014 cotton exports are forecast at $5.0 billion, down $700 million from the 2013 estimate. Export volume is forecast to decline to 2.3 million tons.  Exportable supplies are down sharply due to a projected near-20-percent decline in production.  In addition, global import demand is falling, mainly in China.  Unit value is expected to be up slightly. 

The fiscal 2013 estimate for cotton is raised $200 million to $5.7 billion as stronger-than-expected import demand from China supports higher unit values. 

Fiscal 2014 livestock, poultry, and dairy exports are up $100 million to $31.1 billion from the previous year.  Growth in pork and poultry products offset declines in dairy and beef.  Pork is forecast $60 million higher at $5.1 billion, with strong demand expected from Mexico and some Asian markets.  Poultry is forecast to increase by $50 million to $6.5 billion on greater egg and other poultry product exports.  Dairy exports are forecast to decline $200 million to $5.6 billion as volumes and global prices are expected to moderate. Beef exports are forecast to decline $170 million to $4.9 billion as lower volumes offset higher prices.  

The fiscal 2013 export value is raised $1.0 billion to $31.0 billion with gains in dairy, poultry, and pork. Dairy is up $500 million to $5.8 billion on higher prices and volumes due to lagging milk production in the European Union (EU). 

The fiscal 2014 export forecast for horticultural products is a record $34.5 billion, up $2.5 billion from the 2013 estimate.  Fresh fruit and vegetables are forecast at a record $8.1 billion, up $500 million.  Exports to Canada and Mexico are expected to continue expanding. Processed fruit and vegetables are forecast at $8.0 billion, up $600 million. Unit values for several processed products are expected to continue rising with demand from major markets.  Whole and processed tree nuts are forecast at $7.8 billion, up $800 million primarily due to continued strong demand from China and Europe for almonds, pistachios, and walnuts. 

The fiscal 2013 export estimate for horticultural products is unchanged at $32.0 billion.

Import Products
Although fiscal 2013 year-to-date U.S. agricultural imports have climbed 11 percent in volume, the corresponding import value is up only 1 percent.  The underlying reason for this disparity in growth rates is a 9-percent decline in import unit values.  Lower import prices for vegetable oils, dairy products, sugar and other tropical products over the past three quarters nearly offset total import volume growth thus far in the fiscal year.  The overall import value in 2013 is projected to be $105 billion, up only 1.6 percent from 2012 and is $6 billion less than the last forecast.

Total imports based on volume were up 19 percent in the third quarter, and gained an average 10.7 percent over the past three quarters.  The 19-percent volume jump in the third quarter this year supports a stronger import projection for fiscal 2014--$113 billion, a 7.6-percent increase from 2013.

In addition to lower commodity prices in general, growth of real consumer spending for food consumed at home averaged only 0.8 percent over the past four quarters. This weak spending behavior closely matches the 0.9-percent average growth in disposable personal income (based on chained 2009 dollars) during the past 12 months. The relatively slow spending pattern for food this past year and in the recent spring months exacerbated the downward effect of lower food commodity prices on U.S. import value. The somewhat brighter spending picture with respect to food services (food consumed away from home)—which expanded 2.5 percent in the past year—suggests that spending growth for food consumed at home can similarly move higher if personal disposable income shows consistently stronger advances.

The 10-percent average decline in import unit values for sugar, coffee, cocoa, and natural rubber amounted to a $3.5-billion drop in their import value as a group, which offset most of the value gains for all the other imported products.  As a group, imported sugar and tropical products are estimated at $24.1 billion in 2013, which is $4.2 billion less than in fiscal 2012 and $2 billion lower than the previous forecast for fiscal 2013.  Sugar and tropical products are the only import group that has a smaller aggregate value in 2013 than in 2012, which makes it largely responsible for the unexpectedly weak $1.6-billion projected U.S. import gain in 2013 from 2012.  For fiscal 2014, tropical commodity prices, including prices for tropical vegetable oils, are expected to stabilize. Thus, as the overall projected import volume of tropical products grows in future months, their import values are expected to expand accordingly.

The new lower projected import value for horticultural products in 2013 is attributed largely to lower prices for processed fruit and vegetables, tree nuts, and cut flowers.  The smaller estimates for imported wine and beer are accounted for by weaker demand as import volumes, especially for beer, have declined.  In 2014, the value of imported horticultural products is projected to rebound to $47.8 billion, or 8 percent higher than in 2013.  This growth is led by fresh fruits and vegetables, processed fruit, wine, beer, and essential oils.  The stronger forecast for these products is premised on more stable import unit values and generally positive import volume growth in the next year.

The lower import projection for vegetable oils in 2013 is due to the 1.5-percent fall in import volume combined with a collective 9-percent drop in unit values.  

Coconut oil prices of around $835 per metric ton are down from $1,100 in 2012 and $1,700 in 2011.  Palm oil prices of $760 per metric ton are down from $940 in 2012 and $1,077 in 2011.  Unit values for other imported oilseed products (except oilcake and oilmeal) are also lower.  The volume demand for oilseeds and non-tropical vegetable oils except olive oil is also lower.

U.S. import demand for bulk grains, processed grains, and feeds pushed their combined import value up 22 percent thus far from 2012.  Wheat and corn volume imports are also up.  Imported feeds and fodders also contribute significantly to the $500-million growth in processed grain products in 2013.  An aggregate $11.6 billion of grain and feed products imports are projected in 2013, or $2.1 billion more than in 2012.  These imports, however, are anticipated to fall by $800 million to $10.8 billion in 2014 as bulk grain imports retreat by $1.5 billion due to larger domestic production of corn, sorghum, and oats.

The total import value of all livestock and dairy products in 2014 is forecast to increase by about $1.1 billion to $15.1 billion. About $800 million of this projected increase is for beef and veal imports.  U.S. beef imports in fiscal 2014 are forecast at nearly $4.6 billion based on higher volumes and unit values.  Thus far in 2013, beef imports from New Zealand and Mexico are up, but shipments are lower from Canada and Australia.  Projected cattle imports are lowered to 2 million head in 2013 partly because of decreased shipments from Mexico as cattle inventories have become smaller there. Projected 2013 swine imports are lowered as hog supplies in Canada are limited.



Statement from Agriculture Secretary Tom Vilsack on Forecast for U.S. Exports

The U.S. Department of Agriculture released its Outlook for U.S. Agricultural Trade today. USDA projects that Fiscal Year 2013 agricultural exports will reach $140 billion, which if realized would be a new record.

Agriculture Secretary Tom Vilsack made the following statement on this news:

"Driven by the productivity of U.S. farmers and ranchers, we have achieved five years of positive momentum for agricultural exports and today's forecast is another promising development. Agricultural exports have a real impact on Main Street and beyond, supporting more than one million good jobs here at home. We're counting on Congress to help keep up this momentum. With just a few weeks left before expiration of many Farm Bill programs – including trade promotion programs that return $35 in economic benefits for every dollar invested – producers and rural communities need passage of a comprehensive Food, Farm and Jobs Bill as soon as possible. This would enable USDA to continue trade promotion, and carry out a wide variety of additional efforts to support a productive U.S. agriculture sector. At the same time, America's farmers and ranchers need a reliable and stable agricultural workforce to keep up production. Passage of the commonsense immigration reform measure, which was already approved by a bipartisan majority in the U.S. Senate, would further strengthen American agriculture and help put our nation on solid footing to maintain strong exports in the years to come.

At USDA we intend to build on the record agricultural trade already achieved in the Obama Administration. We will continue breaking down barriers to U.S. products and working toward new agreements to expand exports, including a Transatlantic Trade and Investment Partnership with the European Union and a Trans-Pacific Partnership with Asian nations."



EPA Announces July Biodiesel Production Figures

The EPA on Thursday reported 132 million gallons of biodiesel production for the month of July and year-to-date volume of more than 768 million gallons.

Biodiesel is the first EPA-designated Advanced Biofuel to reach 1 billion gallons of annual production. The industry has surpassed RFS targets for two consecutive years and is on pace to do so again this year.

The production volumes are reported under the Biomass-based Diesel category under the RFS. To view the figures, visit the EPA's website here. The latest numbers show a total of more than 166 million gallons of Biomass-based Diesel in July, but that total also includes production of renewable diesel. The biodiesel portion of the total was 132 million gallons.



China’s Growing Beef Appetite Creates Opportunities for Key Suppliers
Beef consumption in China has risen steadily over the last few years. According to a new report from the Rabobank Food & Agribusiness (FAR) Research and Advisory group, rising incomes, dietary shift and urbanization are driving the increasing Chinese appetite for beef. The report, “The Dragon’s Appetite for Beef: Rising Opportunity for Key Beef Suppliers,” finds that with local production unable to grow fast enough to meet increasing demand, the Chinese market provides a great opportunity for exporters from the key beef producing countries. These include exporters in Australia, New Zealand, Brazil, Uruguay, India and potentially the United States, if it’s suspension from the Chinese market in the aftermath of the 2004 BSE outbreak is lifted.

“The consumption of beef in China is expected to rise, on a per capita basis, by 24 percent in the coming decade,” says Rabobank Food & Agribusiness (FAR) Research and Advisory group analyst, Guilherme Melo. “This is actually below what it should be, as supply shortages and rising prices are restricting demand. Nonetheless, while market share will probably remain flat over the next ten years as a result, the absolute volume will increase by roughly 25 percent, adjusted for population growth.”

Beef is a niche product in China, accounting for only 8 percent of per capita meat consumption, in contrast to 22 percent for poultry and 65 percent for pork. It is generally considered more of a special occasion item, rather than an everyday meal option. More than 60 percent of total beef consumption takes place outside the home with the major options for eating away from home including ‘hot pot’, canteens at work, Western-style restaurants and quick service restaurants (QSR) such as McDonald’s and KFC.

While demand has been growing at a reasonable pace, Chinese beef production has stagnated since 2006. This stagnation is mainly attributable to a low economic return for beef production compared to other agricultural activities, which in turn is intrinsically linked to a combination of high input costs (e.g. labor and feed), poor genetics, reduced government support and difficult access to rural credit.

To correct the market imbalance, imports will remain on the rise over the coming years. This will offer great opportunities for exporters from the key beef producing countries, most notably Australia, which is not only geographically closer, but is also well placed to supply a variety of beef products to meet different segments in China’s market. However, other important exporter countries are also likely to benefit, and no specific country is expected to dominate the market, given that China is expected to provide or increase access to more countries wishing to enter its beef market.



New Dairy Cattle Awards Announced for 2013 World Dairy Expo

Dairy cattle exhibitors will soon be traveling to Madison for the 47th World Dairy Expo October 1 through October 5 at the Alliant Energy Center. More than a thousand cattle exhibitors with over   2,500 head of cattle are anticipated to compete on the famous colored shavings.

New for the 2013 International Junior Holstein Show, Y-Tex Corporation is graciously sponsoring the premiums for each class, which will benefit those junior exhibitors. The International Junior Holstein Show was started in 2004. Since its inception over 1,600 junior owned Holstein cattle have been exhibited. Last year alone, 242 head of cattle were exhibited by 170 youth from 28 states. Every year, all of Expo’s junior shows feature exceptional youth exhibitors and dairy cattle competing for top awards. It’s a privilege to partner with Y-Tex Corporation to help recognize the International Junior Holstein Show exhibitors.

For the first time in the history of the show, Premier Breeder and Premier Exhibitor of the Heifer Show will be awarded banners in all seven breeds. The Dairy Cattle Exhibitor Committee approved and established rules earlier this year. These awards are based on their counter-part for the overall breed shows that currently exist. Pre-entry is required and will be based on six heifers. Entries must be received in the Dairy Cattle Show Office by 5 p.m. the day prior to the heifer show. Heifers are also eligible for the overall Premier Breeder and Premier Exhibitor banners. Points will be based on the existing Premier Breeder and Exhibitor point system. The fourteen award banners for the Premier Breeder and Premier Exhibitor of the Heifer Show are sponsored by American Wood Fibers Inc.

Dairy producers from across the globe are invited to attend World Dairy Expo that includes eight dairy cattle shows, Expo Seminars, Virtual Farm Tours, youth competition and over 850 exhibiting trade show companies. Visit worlddairyexpo.com or call 608-224-6455 for further details.