Wednesday August 7 Ag News

Emergency Haying and Grazing of CRP Acres for Nebraska has been Expanded

Farm Service Agency (FSA) Director, Dan Steinkruger today announced that additional emergency haying and grazing practices have been approved under limited conditions for County Offices that have previously been approved for emergency haying and grazing.

The counties approved for emergency haying and grazing are Adams, Antelope, Arthur, Banner, Boone, Box Butte, Boyd, Buffalo, Cedar, Chase, Cheyenne, Clay, Cuming, Custer, Dakota, Dawes, Dawson, Deuel, Dixon, Dundy, Franklin, Frontier, Furnas, Garden, Garfield, Gosper, Greeley, Hall, Harlan, Hayes, Hitchcock, Holt, Howard, Kearney, Keith, Kimball, Knox, Lincoln, Logan, Loup, McPherson, Madison, Merrick, Morrill, Nance, Nuckolls, Perkins, Phelps, Pierce, Platte, Red Willow, Scotts Bluff, Sheridan, Sherman, Sioux, Stanton, Thayer, Thurston, Valley, Wayne, Webster, and Wheeler.  This authorization for 2013 began July 16, 2013 for both emergency haying and emergency grazing, which coincides with the end of the primary nesting and brood rearing season in Nebraska.

Under these conditions, farmers and ranchers affected by drought will be allowed to use certain additional CRP acres for haying or grazing under emergency conditions while maintaining safeguards to the conservation and wildlife benefits provided by CRP.  In addition, USDA announced that the reduction to CRP annual rental payments related to emergency haying or grazing will be reduced from 25 percent to 10 percent.  Further, the sale of hay will be allowed under certain conditions.  These measures take into consideration the quality of losses of the hay and will provide needed assistance to livestock producers.

“Beginning today, Nebraska FSA offices are authorized, subject to certain restrictions, to allow haying and grazing on additional lands enrolled in CRP,” Steinkruger noted.  “For counties that have been released for emergency haying and grazing, this will provide additional acres to help supplement the limited supply of forage available due to these drought conditions.”

Producers are encouraged to contact their local FSA office for additional information on CRP emergency haying and grazing.  Additional information is also available on the web at www.fsa.usda.gov/ne.



Nebraska 4-H and FFA State Fair Exhibitors to Receive Farm Bureau T-shirts

The Nebraska State Fair is the mecca for 4-H and FFA exhibitors across the state to showcase their hard work throughout the year, and this year Nebraska Farm Bureau is proud to offer them an extra reward for their efforts. All 4-H and FFA large animal exhibitors will receive a T-shirt sponsored by Nebraska Farm Bureau.

“We are proud to provide these youth with a token of our appreciation for their efforts in agriculture,” said Rob Robertson, Nebraska Farm Bureau chief administrator. “The shirts will also work to pass on Farm Bureau’s agricultural pride to the next generation.”

To receive the shirt, 4-H and FFA exhibitors must redeem a coupon found in their exhibitor packets at the Nebraska Farm Bureau booth on either Friday of the fair – August 23 or August 30. The booth will be located in Exhibition Hall, number DA20.

The Nebraska Farm Bureau booth will be staffed by members of the Young Farmers and Ranchers Committee, the Ag Promotion Committee and County Farm Bureau volunteers from across the state.

“The Nebraska State Fair has always been a place to celebrate the strong agriculture industry in our state, and we’d love to see several of our members in Grand Island,” said Robertson.

The Nebraska State Fair runs from Aug. 23 through Sept. 2, 2013, in Grand Island, Neb., at Fonner Park. Visit www.statefair.org for a full schedule of events.



Bright Future of Iowa Ag Highlighted at State Fair

Iowa Secretary of Agriculture Bill Northey Tuesday invited Iowans attending the Iowa State Fair to visit the Iowa Department of Agriculture and Land Stewardship's booth in the Agriculture Building. The display will include a truck that fairgoers can "ride in" as they watch a video that shows the journey of food from the farm all the way to the grocery store. New technologies being used by farmers to better care for the animals, their land and water quality while improving productivity will also be on display.

The Department will be giving away sunglasses that say "Iowa's Agriculture is so bright..." to fairgoers to highlight the bright future of the industry in Iowa. Fairgoers are invited to share photos of themselves wearing the sunglasses on social media with the hashtag #StateFairShades.

"The future of Iowa agriculture is incredibly bright and the State Fair is a great place to share that story with the more than 1 million visitors that will be on the grounds during the fair," Northey said. "I hope as people come out to the State Fair they will take the time to stop by the Ag Building and learn a little more about the exciting opportunities available through Iowa agriculture."

Whipple's General Store and Brown's Cafe will also be a part of the display in the Ag building again this year and will provide fairgoers with resources and samples from Iowa agriculture groups. Samples and information will be available from Iowa Soybean Association, the Iowa Egg Council, Midwest Dairy Association, Iowa Turkey Federation, Iowa Pork Producers, and the Iowa Beef Industry Council.

The Department will also have a booth in the Varied Industries building that will educate Iowans about the Department and continue the tradition of weighing fairgoers on a scale certified by the Department's Weights and Measures Bureau.

The Iowa Century Farm and Heritage Farm Awards will be presented on Aug. 13 starting at 9 a.m. at the Century/Heritage stage, just south of the Grand Avenue entrance. Century Farm awards recognize farms that have been in the same family for 100 years and Heritage Farms awards recognize farms that have been owned by the same family for 150 years. This year there are 365 Century Farm winners and 67 Heritage Farm winners. These awards are sponsored by the Iowa Department of Agriculture and Land Stewardship and the Iowa Farm Bureau.

On Aug. 15 starting at 9 a.m. Gov. Branstad, Lt. Gov. Reynolds, Northey and Iowa DNR Director Chuck Gipp will recognize Iowa Farm Environmental Leader award winners. The awards will be presented at the Penningroth Center inside the Cattle Barn and recognize the efforts of Iowa's farmers as environmental leaders committed to healthy soils and improved water quality. It seeks to recognize the exemplary voluntary actions of farmers that improve and protect the environment and natural resources of our state while also encouraging other farmers to follow in their footsteps by building success upon success.

On Aug. 14 at 10 a.m. the Department will be recognizing the winners of the 2013-2014 From the Farm to You Calendar drawing contest in the Agriculture Building. Kids from across the state submitted pictures for the calendar. Copies of the calendar are available to fairgoers at the Department's booths in the Ag Building and the Varied Industries Building.

The Iowa State Fair runs from Aug. 8 to 18 at the state fairgrounds in Des Moines.



Iowa’s 2013 Best Burger to be featured at the Iowa State Fair

Attention all burger lovers – Iowa’s 2013 Best Burger winner will be available at the Cattlemen’s Beef Quarters at the Iowa State Fair.  Fair fans will have the opportunity to try the award winning Angus Black Crown burger created by the 61 Chop House located in Mediapolis, Iowa.  This special treat will be available for one day only – Saturday, August 10.     

Burger lovers will be delighted with the fresh half-pound Certified Angus Beef patty that is grilled to perfection and topped with a made-from-scratch beer cheese sauce, pepper Colby-jack cheese and two strips of thick-cut Applewood bacon.  It’s creator, 61 Chop House owner and chef, Terry Reis will be on-site to oversee the preparation of his personal culinary creation.  
  
Available for one day only, Saturday, August 10, the Angus Black Crown Burger joins an exclusively all beef menu that boasts not only burgers but also Prime Rib dinners, roast beef sandwiches, ribeye steak sandwiches, taco salads and the original Hot Beef Sundae.

The Cattlemen’s Beef Quarters, an advocate for Iowa beef, features products from Iowa companies.  Fully cooked beef taco meat for its Taco Salads, Taco Potatoes and Walking Tacos is manufactured in Nevada, IA by Burke Corporation.  The fully cooked shredded beef used in the Hot Beef Sundaes is produced by W & G Marketing located in Ames, IA

Operated by Beef Promotions of Iowa, Inc., the Cattlemen’s Beef Quarters is managed by John Mortimer of Dallas Center.  Sixty-eight County Cattlemen’s Associations bring over 1,200 beef industry volunteers to prepare and serve beef during the Iowa State Fair. 



Discover All the Great Locations of Extension and Outreach at the Iowa State Fair

Visitors to this year's Iowa State Fair, Aug. 8-18, can discover more with Iowa State University Extension and Outreach. Extension and Outreach can be found all across the fairgrounds during the annual event.

The discovery can be kicked off with the ISU Extension and Outreach scavenger hunt that takes participants to various Extension and Outreach locations. Fairgoers may pick up an entry form at the 4-H Exhibits Building or Grandfather’s Barn. Each of six locations has a keyword sign that participants can record, and with all six keywords, they can enter online for a chance to win an iPad.

Cardinal and Gold Day
Fairgoers are encouraged to show their Cyclone pride on Friday, Aug. 9, by wearing cardinal and gold to the fair! ISU Extension and Outreach will be at the 4-H Exhibits Building, Grandfather’s Barn and Discovery Garden handing out reusable shopping bags starting at noon, until supplies are gone. Cy will be making appearances at those locations as well.

Framing the Future for Iowa
See how Iowa State University is “Framing the Future of Iowa” at the Iowa State exhibit located inside the Varied Industries Building. Photo and video content is displayed on 22 iPads and iPad minis and four large video screens in an art gallery setting, divided into three major themes: educating students who become successful alumni; providing research and outreach programs that benefit citizens; and offering entertainment and cultural opportunities.

Iowa Wine Experience
Fairgoers can find out how ISU Extension and Outreach is helping with Iowa’s growing wine industry at Grandfather’s Barn and the Iowa Wine Experience. ISU extension viticulture specialists will be on hand to answer questions, and daily grape stomps allow everyone to get in on the fun.

Iowa 4-H at the State Fair
Thousands of youth from across the state will be participating in the 2013 Iowa State Fair with exhibits, presentations and competitions. The 4-H Exhibits Building features more than 4,000 exhibits from Iowa 4-H’ers, and 4-H agricultural exhibits at the Iowa State Fair include beef, dairy, dog, horse, horticulture, poultry, rabbit, sheep and swine. In addition:
-    Many acts involving hundreds of 4-H members will take the stage in Share The Fun, a communication event in which 4-H members share talents and skills in front of a live audience.
-    Youth will create French, South American and Cajun cuisines in the 2013 Cook This! 4-H Culinary Challenge Friday and Saturday, Aug. 9-10.
-    Teams will compete in the 2013 Bratney Companies 4-H Robotics Challenge on Sunday and Monday, Aug. 11-12.
-    Nearly 200 youth will compete in the 2013 Awardrobe Clothing Event on Thursday and Friday, Aug. 15-16, at the Memorial Union on the Iowa State campus.
-    4-H’ers will showcase youth-produced films in the 2013 Iowa 4-H Film Festival Showcase on Saturday, Aug. 17.

Food Finder App for iPhone
ISU Extension and Outreach is once again partnering with the Des Moines Register to bring fairgoers the Food Finder app for iOS devices and mobile Web. The Food Finder app provides fair goers with an easy way to find the food and vendors they are looking for, as well as the nutritional information for popular menu items. Information also is included on the activity to burn off calories, and a calendar of events is included with a focus on “healthy” events. The app can be downloaded from the App Store.



Report Says U.S. is Losing Corn Export Market Share

For most of the last century, U.S. corn accounted for between 50 and 75 percent of world corn exports. But the Economic Research Service over the last decade, the nation has lost its dominance in world corn markets.

The U.S. ethanol program provided underlying support for corn prices after 2005 and, together with rising global feed demand and policies in some foreign countries, encouraged expansion in foreign corn production, with Brazil and Ukraine notably successful.

In 2012-13, with several years of below trend U.S. yields compounded by severe drought, foreign corn has become increasingly competitive in world markets.

U.S. corn export market share is forecast to fall to less than 20 percent in 2012-13.

With record U.S. corn production projected for 2013-14, U.S. export share is expected to increase and the United States is expected to return as the largest exporter.

But the U.S. market share is forecast to remain well below 50 percent, while Brazil, Ukraine, and Argentina are each forecast to account for 15 to 20 percent of world corn trade.



Red Meat Exports Hit 2013 Highs

Exports of U.S. beef and pork enjoyed their best month of the year in June, rising both in volume and value over 2012 levels, while lamb exports continued their steady increase, according to statistics released by USDA and compiled by the U.S. Meat Export Federation (USMEF).

Pork exports in June increased 2.4 percent in volume to 169,098 metric tons while edging a fraction higher in value to $469.7 million. Beef exports fared even better, rising 8 percent in volume to 101,720 metric tons and 21 percent in value to $562.3 million.

Lamb exports also continued to grow, jumping 29 percent in volume to 1,423 metric tons and nearly 4 percent in value to $2.5 million.

“There is no question that challenges persist, such as the continued closure of the Russian market, but we are seeing positive signs from key markets, including Japan and Mexico, that are vital trading partners for our industry,” said Philip Seng, USMEF president and CEO.

Another positive growth metric in June was the per-head export value recorded for both beef and pork. Beef export value was a record $260.21 per head of fed slaughter, a $56.31 increase over June of 2012. For pork, the per-head export value was $57.27 in June versus $54.78 last year.

Top performing beef export markets in June (by volume) were Japan (+66 percent), Hong Kong (+156 percent), Mexico (+14 percent), Taiwan (+400 percent) and Central/South America (+62 percent; growth mainly to Peru and Chile). The absence of exports to Russia continues to be felt, as the 5,903 metric tons of beef exported there last June made it the No. 6 market for U.S. beef.

“We are focused on the markets where we can take advantage of opportunities, such as expanded access for U.S. beef in Japan, the rebound in Taiwan and continued growth of the Hong Kong and Central/South America markets,” said Seng. “At the same time, we continue relationship-building in Russia for when that market reopens, and stand ready to capitalize on the growing demand for high-quality beef in China when access can be restored for the first time since 2003.”

Pork exports to Mexico increased 20 percent in June, pushing the first-half total nearly even with last year’s record pace. Other top pork export growth markets in June (by volume) were Japan (+4 percent), China/Hong Kong (+15 percent), Central/South America (+54 percent; mainly to Colombia, Honduras and Chile), the ASEAN (+26 percent; mainly to the Philippines), Caribbean (+36 percent; mainly to the Dominican Republic) and Taiwan (+67 percent).

“The rebound in Mexico is particularly gratifying,” said Seng. “An abundance of domestic pork in Mexico affected demand in the first quarter and the Russia closure had a negative impact on the prices paid for hams and other cuts sold to processors in Mexico. But we are focusing on this market with a pork imaging campaign that is getting positive reviews from importers and consumers alike.”

Strong buying from Mexico likely helped propel heavy hams to over 90 cents per pound by early June, a 22 percent increase compared to last year’s prices. But access to Russia will become increasingly critical as we move into seasonally larger pork production.

For the year, U.S. beef exports are down 1 percent in volume at 542,560 metric tons but 6 percent higher in value at $2.83 billion. Total beef exports (muscle cuts plus variety meat) accounted for 13.6 percent of U.S. beef production in June, up from 12 percent last year. For the year they account for 12.4 percent of production, about the same as last year.

June beef muscle cut exports accounted for 11 percent of production (up from 10 percent in June 2012). For the first half of the year, exports accounted for 9.6 percent of beef muscle cut production, about the same as last year.

Pork exports for the first half of 2013 are down 7 percent in volume and value to 1.05 million metric tons valued at $2.94 billion. Total pork exports (muscle cuts plus variety meat) accounted for 28 percent of total U.S. pork production in June versus 26 percent last year. For the year they equate to 26 percent of production versus 28 percent in 2012.

June pork muscle cut exports accounted for 24 percent of production (up from 23 percent in June 2012). For the first half, exports accounted for 21.7 percent of muscle cut production, down from 24 percent last year.

Lamb exports continue to be led by Mexico and Canada. For the year, total lamb exports are up 17 percent in volume to 7,263 metric tons valued at $15.7 million, a 25 percent jump.



Cattle Industry Summer Conference Kicks Off in Denver

Cattlemen and women are gathering in Denver, Colo., today to help create the direction for cattle industry at the 2013 Cattle Industry Summer Conference Aug. 7-10.

More than 650 producers and other industry participants are in attendance at the event, which features meetings of National Cattlemen’s Beef Association (NCBA), Cattlemen's Beef Promotion & Research Board (CBB), American National CattleWomen, Inc. and National Cattlemen's Foundation. The Cattle Industry Summer Conference is where cattle producers discuss current issues as a group, work on programs and initiatives and set the course the industry should take with various projects for the betterment of the beef cattle industry.

General Session I on Thurs., Aug. 8, officially starts the 2013 Cattle Industry Summer Conference. John Huston, executive vice president emeritus, NCBA, will address the group and discuss the 50th anniversary of the Federation of State Beef Councils. U.S. Rep. Cory Gardner (R-Colo.) will then take the stage to give an update on cattle industry priorities in Washington, D.C.

“NCBA is a member-driven organization and is the trusted leader and definitive voice of the cattle industry,” said NCBA President Scott George, a dairy and beef producer from Cody, Wyo. “I’m pleased that so many of my fellow cattle producers are here in Denver to be engaged in the policy process so that the beef industry remains viable and beef continues to be on kitchen tables around the country and the world.”

General Session II on Fri., Aug. 9, is open to all registered attendees. NCBA and CBB leadership will identify the key outcomes and updates in both the policy and Checkoff program areas and will set the stage for the focused plan of work for Fiscal Year 2014, which starts on Oct. 1. The session will also offer a look at the Beef Demand Determinants study, funded by the Beef Checkoff. This study provides extensive consumer and economic research to identify price, food safety and product quality as the most important demand drivers on which the Checkoff should focus to maintain and build beef demand.

Also on Friday, NCBA policy committees will meet to determine priorities and discuss strategies for 2014. The NCBA Board of Directors will hold a session on Sat., Aug. 10, as will members of the CBB.

“The opportunity to shape the policy that impacts this industry and the direction we take in the future is an important part of why we are in Denver these next few days,” said George. “I am encouraged that so many people have taken the time away from their farms and ranches to be here.”



Weekly Ethanol Production for 8/02/2013

According to EIA data, ethanol production averaged 853,000 barrels per day (b/d) — or 35.83 million gallons daily. That is up 21,000 b/d from the week before. The four-week average for ethanol production stood at 854,000 b/d for an annualized rate of 13.09 billion gallons.

Stocks of ethanol stood at 16.7 million barrels. That is a 1.6% increase from last week.

Imports of ethanol were 56,000 b/d, the highest in seven weeks.

Gasoline demand for the week averaged 388.3 million gallons daily, the third-highest weekly rate of the year.

Expressed as a percentage of daily gasoline demand, daily ethanol production was 9.23%.

On the co-products side, ethanol producers were using 12.934 million bushels of corn to produce ethanol and 95,197 metric tons of livestock feed, 84,869 metric tons of which were distillers grains. The rest is comprised of corn gluten feed and corn gluten meal. Additionally, ethanol producers were providing 4.44 million pounds of corn oil daily.



New University Study: “E85 Can Break the Blend Wall”

The so-called “ethanol blend wall” can be overcome and Renewable Fuel Standard (RFS) requirements can be met in 2014 and beyond through increased use of attractively-priced E85, according to a new economic analysis by the Center for Agricultural and Rural Development at Iowa State University. The analysis, titled “Price It and They Will Buy: How E85 Can Break the Blend Wall,” is available here.

“Pricing E85 low enough to generate fuel cost savings has the potential to quickly increase ethanol consumption, perhaps by three billion gallons over the next year or two,” write the study’s authors, Profs. Bruce Babcock and Sebastian Pouliot. “Rather than being a physical barrier to increased ethanol consumption, the E10 blend wall is an economic barrier that can be overcome by increasing the incentive for drivers to use E85 to fuel their vehicles.”

The analysis demonstrates how the RIN market works to lower the effective cost of E85 at the retail level, and explains the interaction among corn, ethanol, gasoline and RIN prices. “Current RIN (Renewable Identification Number) prices are high enough to achieve modest increases in ethanol consumption above 13 billion gallons and to create incentives to increase the ability to consume lower-carbon ethanol in 2016 and beyond,” according to the report. “Current high RIN prices create a large incentive for oil companies to increase consumption of E85 because expansion in E85 consumption will decrease RIN prices.” The authors conclude that it will be less expensive for oil companies to invest in E85 infrastructure than it would be to continue to pay high RIN prices.

The authors also point out that the current fleet of flex fuel vehicles (FFVs) has the capacity to conservatively consume 6.6 billion gallons of ethanol annually and more FFVs are on the way. Further, they found that more than one-third of FFV owners have access to E85 within five miles from their home. Babcock and Pouliot are careful to point out that RINs will encourage increased ethanol consumption only if EPA resists pressure from the oil industry to dramatically reduce RFS requirements in 2014. The authors write that EPA’s final RFS requirements for 2014 and beyond must be “significantly above the E10 blend wall” in order for RINs to sufficiently drive E85 demand.

Bob Dinneen, President and CEO of the Renewable Fuels Association, points out that this study underscores the fact that there are workable and economic pathways around the so-called E10 blend wall. “The CARD study exposes the absurdity of Big Oil’s contention that RFS requirements in 2014 and beyond can’t be met,” he said. “In addition to E15, increased E85 sales offer a clear and sensible pathway to compliance for obligated parties in the next several years. Bottomline, the RFS’ success — past, present, and future — lies in its inherent flexibility. It is time for Big Oil to comply rather than obstruct.”

“This analysis confirms what is already being observed in the marketplace,” continued Dinneen. “RINs are free when procured from an ethanol producer. It is not until that free RIN is detached from the gallon and begins being traded back and forth in an opaque, thinly-traded market that prices begin to rise. Ironically, though, higher RIN prices are translating into much lower E85 prices at the pump, and consumers are responding by buying more E85. In many locations today, a gallon of E85 is priced at least $1 less than regular E10. These dynamics explain why we recently saw E85 purchases in Minnesota double in just one month.”

Other recent third-party analyses, including a study conducted by private economist Philip Verleger for the Commodity Futures Trading Commission, have also concluded that E85 offers a workable solution to RFS compliance and the blend wall.



EPA Maintains Key RFS Volumes for 2013, Signals Potential Changes to 2014 Volumes

The United States Environmental Protection Agency (EPA) announced Tuesday finalized its proposed Renewable Fuel Standard (RFS) volume requirements for 2013 for conventional biofuels, cellulosic biofuels, and the total amount of Advanced Biofuels. EPA had previously finalized the 2013 volume requirements for biomass-based diesel at 1.28 billion gallons.

Today’s announcement finalizes the requirement for total Advanced Biofuel at 2.75 billion gallons. The Advanced Biofuel requirement is important to the biodiesel industry because biodiesel - as an EPA-designated Advanced Biofuel under the RFS - can fill not just the Biomass-based Diesel requirement of the program but also part, or all, of the overall Advanced Biofuel requirement. The decision to maintain the Advanced requirement at 2.75 billion gallons offers an additional market opportunity for biodiesel above and beyond the minimum 1.28 billion gallon Biomass-based Diesel requirement for 2013.

“As producers of the feedstock that accounts for more than half of all domestic biodiesel production, we are very pleased with today’s announcement,” said ASA President Danny Murphy, a soybean farmer from Canton, Miss. “The updated volumes for 2013 will allow the promising growth of the biodiesel industry to continue unhindered, and we appreciate Administrator McCarthy and the EPA’s work to see that through.”

EPA also announced it has denied two petitions for reconsideration of the 2013 biomass-based diesel standard of 1.28 billion gallons. These appeals were submitted by petroleum groups in late November 2012, raising a number of issues, including the impact of the 2012 drought and concerns about fraudulent RINs. The EPA determined that the petitions failed to meet the requirements for reconsideration under the Clean Air Act.

“During the confirmation process, Administrator McCarthy repeatedly expressed her commitment to building bridges between the agricultural community and the EPA, and this announcement, which recognizes the strengths and benefits of the RFS and takes into account both the current and potential capabilities of the industries that produce these biofuels is a pragmatic and constructive step toward doing just that,” Murphy said.

In addition to confirming the 1.28 billion gallon requirement for biomass-based diesel and the 2.75 billion gallon requirement for total Advanced Biofuels, the EPA's announcement imposes the following requirements for 2013:
-    Cellulosic biofuel: 6 million gallons - This is a reduction from the 14 million gallons previously proposed by EPA for 2013 and the 1 billion gallons called for under the statute. EPA’s action to reduce the cellulosic biofuel requirement recognizes that significant quantities of cellulosic biofuels are not yet available in the marketplace.
-    Conventional biofuel (mostly corn ethanol): 13.8 billion gallons - This quantity maintains the volumes required under the statute for 2013.
-    Total renewable fuel: 16.55 billion gallons.

Also of significance in today’s announcement, EPA indicated it likely will reduce below statutorily-set levels the total conventional biofuels and total Advanced Biofuels requirements for 2014 in a forthcoming proposal. In making these indications, EPA appears to be responding to concerns about the increasing volumes of conventional, cellulosic, and Advanced biofuels called for in 2014 under the RFS statute versus the quantity of such fuels available in the marketplace and the impacts of the impending ethanol blend wall.

“EPA’s actions to reduce the cellulosic biofuel requirement for 2013, and to indicate that it will likely reduce the total Conventional and Advanced Biofuel requirements from those set in the statute,” added Murphy, “can be seen as proof that EPA has the flexibility it needs to adjust volume requirements under the RFS based on marketplace realities and that no legislation is needed to revise or repeal the RFS.”



Six Farms, Six States: The Road to Higher Yields Farm Tour

Starting Aug. 20, The Mosaic Company will begin a 10-day tour across the Corn Belt — coined The Road to Higher Yields Farm Tour — and travel by branded bus to visit six farms in six states to spotlight the crop nutrition programs and experiences of the Pursuit of 300 Farmers as they push for higher yields.

The first full production year of the Pursuit of 300 is in full swing, and The Road to Higher Yields Farm Tour is setting out to showcase the progress of each Pursuit Field, share the successes and challenges faced by each Pursuit Farmer, and provide a unique window into the 2013 growing season of six progressive U.S. farms.

The Road to Higher Yields Farm Tour kicks off Aug. 20 at Pursuit Farmer Mitchell Baalman’s farm in Hoxie, Kan., includes a stop at the 2013 Farm Progress Show, and concludes Aug. 29 at Curt and Chris Hudson’s operation in Crawfordsville, Ind.  The tour includes a stop in West Point, NE, on Wednesday August 21st at the Prinz Farm and Feedlot.  Listen to KTIC 840AM that day when we visit with Todd Prinz and the folks from Central Valley Ag Cooperative about being a part of the Pursuit of 300 effort. 

“The Pursuit of 300 is about collaboration, sharing information and real production practices that impact full farm yields,” says Kevin Kimm, Senior Director of Marketing at The Mosaic Company. “By visiting each Pursuit Farmer and their retailer, Mosaic is encouraging and engaging in continuous conversations about what it takes to reach the 300-bushel mark.”

Each stop along the Farm Tour will feature a two-part morning and afternoon event. The first part will give members of the media an opportunity to talk with an industry-leading Pursuit Farmer as well as take a detailed look into that Pursuit Farmer’s Pursuit Field — showcasing the progress of their 100-or-more acres and uncovering the new techniques and practices they’ve implemented this year in order to push yield while maintaining efficiency. Media members will also have a chance to interview the Mosaic agronomist and retail partner working with each Pursuit Farmer about their experiences in the Pursuit of 300, and factors impacting yields potential and the 2013 growing season. 

Part two of the event includes an off-site educational session, led by Mosaic and the local retail partner, about planning a balanced crop nutrition program, using micronutrients for high-yield cropping systems, and understanding the sustainability benefits of 4R Nutrient Stewardship principles. Mosaic will also share a new video highlighting techniques for examining soil profiles, digging a root pit, and identifying nutrients needed to achieve 300-bushel yields.

“In the Pursuit of 300, we set out looking to advance production practices on real farms to ultimately maximize efficiencies and increase yields while keeping sustainability at the forefront,” says Dr. Kyle Freeman, Manager of New Product Development at The Mosaic Company. “From soil nutrients, to seed and precision agriculture technologies — we’re working to provide growers with a road map for what can be achieved through embracing today’s cutting-edge science and agronomic techniques in order to achieve new levels of yield success not reached by previous generations.”

Learn more about The Road to Higher Yields Farm Tour and the Pursuit of 300 at www.Pursuitof300.com/Farm-Tour.



Cargill reports fourth-quarter and fiscal 2013 earnings
Cargill today reported net earnings of $483 million in the fiscal 2013 fourth quarter ended May 31, up substantially from $73 million in the same period a year ago. Fourth-quarter revenues were $35.4 billion, a 4 percent increase from $34 billion in the year-ago period.

For the full fiscal year, Cargill earned $2.31 billion, nearly double the $1.17 billion realized in the prior year. Revenues totaled $136.7 billion, up 2 percent from last year’s $133.9 billion. Cash flow from operations was $4.18 billion, a 19 percent increase from $3.51 billion in fiscal 2012. 

“Cargill’s earnings improved significantly over the prior year,” said Greg Page, Cargill chairman and chief executive officer. “Nearly all of our business units were profitable, and more than two-thirds exceeded year-ago results. We did a better job of delivering innovations and solutions that help our customers succeed. We also drew on our sourcing, logistical and risk management skills to navigate volatile commodity markets in the first half that were driven by severe weather.”

Page said recent changes taken by the company also have made a noticeable difference. “We took action to increase our speed and agility, while holding costs in line. We invested in assets that expand Cargill’s global reach and capabilities, and that support our customers as they seek to grow in new markets.”

Cargill currently has $2.6 billion of major agricultural, food and energy projects under construction, near completion or recently opened in 14 countries around the world. These include a poultry further-processing plant in Efremov, Russia; an integrated poultry production and processing complex in China’s Anhui province; additional poultry processing capacity in Korat, Thailand; an animal nutrition facility in South Korea; a corn processing plant in Brazil’s southern state of Paraná; a cocoa processing plant in Indonesia’s East Java province; and, in the United States, the establishment of a biorefinery campus in Fort Dodge, Iowa, and the modernization and expansion of a multiseed processing plant in North Dakota.

Segment performance
Among Cargill’s five business segments, the origination and processing segment was the largest contributor to consolidated earnings in both the fourth quarter and full year. Results were up considerably from the prior year, with improved performance in grains and oilseeds in most geographies. The segment drew on Cargill’s global footprint and strengths in market analysis, logistics and risk management to overcome the supply challenges caused by weather disruptions  and tight stocks, serving customers reliably. The segment also realized turnarounds in cotton and sugar from the prior year.

The food ingredients and applications segment also was a significant contributor to company results in both periods. Combined earnings among the segment’s food ingredient businesses edged ahead of last year’s record, even though many units were challenged by the effects of the North American drought and historically high commodity prices. Performance was particularly strong in sweeteners, starches and cocoa in several countries. Combined earnings among the segment’s animal protein businesses were down from last year, chiefly due to the negative impacts of drought, high feed costs and, in the United States, the tightest cattle supply in 60 years.

The agriculture services segment posted improved results for the quarter and the year. The integration of Provimi, acquired last year, accelerated earnings growth in global animal nutrition. The combined expertise in nutrition, premixes and compound feeds made it possible to reach more customers with solutions that helped them address difficult feeding economics. Results in North American farm services lagged the prior year in both periods, largely due to drought-affected, smaller crops. The cold, wet spring in the U.S. Midwest, which delayed plantings and input purchases, also hampered results.

Earnings in the risk management and financial segment rose considerably from the prior year. The company’s asset management subsidiaries posted an improved performance, but energy results declined.

Although fourth-quarter earnings decreased, full-year results in Cargill’s industrial segment edged ahead of fiscal 2012. The long, snowy North American winter boosted demand for road salt and deicing products, and the first-quarter acquisition of a vegetable oil-based dielectric fluid business was accretive to segment earnings. Dielectric fluids are used to cool transformers and electrical equipment.



ADM Reports Second Quarter 2013 Earnings of $223 Million or $0.34 per Share

Archer Daniels Midland Company (NYSE: ADM) today reported financial results for the quarter ended June 30, 2013. The company reported net earnings for the quarter of    $223 million, or $0.34 per share, down from $0.43 per share in the same period one year earlier. Adjusted earnings per share were $0.46, up from $0.38 in the same period last year. Segment operating profit was $647 million, up 19 percent from the prior year.

“The team managed well through this period, as tight U.S. crop supplies reduced volumes,” said ADM Chairman and CEO Patricia Woertz. “Also, corn results improved amid volatile ethanol industry conditions.

“During the quarter, we continued our work to improve the company’s future returns and earnings power over the cycle. Our effort to unlock cash reached $2 billion, with the team reaching this milestone a half-year ahead of schedule. And, in cost, we made solid progress toward our goal of $200 million in additional cost reductions by the end of 2014.

“Looking ahead, we’ll be managing through tight crop supplies until the forecast large but delayed U.S. harvest.”

Oilseeds Earnings Essentially Flat as Stronger Crushing and Origination Profits Were Offset by Lower Cocoa Results
Oilseeds operating profit in the second quarter was $321 million, similar to the same period one year earlier.   Crushing and origination operating profit was $185 million, up $35 million from the year-ago quarter.
European crushing results improved significantly year-over-year as delays in the arrival of South American meal contributed to stronger margins. In North America, tighter crop supplies resulted in weaker soy and softseed crush margins. South American operations recovered from the first quarter and generated strong overall results, equivalent to the year-ago quarter. 

Refining, packaging, biodiesel and other generated a profit of $93 million for the quarter, up  $9 million on stronger European results.  Cocoa and other results decreased $58 million due to lower margins on business contracted in earlier quarters.   Oilseeds results in Asia for the quarter were up $4 million from the same period last year, principally reflecting ADM’s share of the improved results from Wilmar International Limited.
 
Corn Processing Results Reflect Improved Ethanol Conditions
Corn processing operating profit of $223 million represented an increase of $149 million from the same period one year earlier.  Sweeteners and starches operating profit decreased $9 million to $126 million. Excluding the impact of corn hedge ineffectiveness, sweeteners and starches results improved by $25 million, with overall demand and margins remaining solid.  Bioproducts results increased $158 million to $97 million. Overall ethanol margins were profitable, albeit volatile.

Agricultural Services Impacted by Lower U.S. Volumes and Weaker International Merchandising Results
Agricultural Services operating profit was $81 million, down $42 million from the same period one year earlier. Merchandising and handling earnings declined $16 million to $14 million, due to smaller U.S. origination and export volumes, and lower margins in international merchandising. Transportation results decreased $14 million to $3 million as lower U.S. export volumes reduced barge freight utilization. Milling and other results remained steady, excluding Gruma, as the milling business continued to perform well.

ADM Directors Declare Cash Dividend
Archer Daniels Midland Company’s (NYSE: ADM) Board of Directors today declared a cash dividend of 19.0 cents per share on the company’s common stock payable Sept. 12, 2013, to Stockholders of record Aug. 22, 2013.  This is ADM’s 327th consecutive quarterly payment, a record of 81 years of uninterrupted dividends. As of June 30, 2013, there were 658,897,578 shares of ADM common stock outstanding.



Bunge Limited Declares Dividends on Common and Preference Shares

Bunge Limited (NYSE: BG), a global agribusiness and food company, today announced that its Board of Directors has declared a regular quarterly cash dividend of $0.30 per common share. The dividend is payable on December 2, 2013 to shareholders of record on November 18, 2013.  The company also declared a quarterly cash dividend of $1.21875 per share on its 4.875% cumulative convertible perpetual preference shares, payable on December 1, 2013 to shareholders of record on November 15, 2013.



Syngenta introduces 102 corn hybrids for the 2014 planting season

Syngenta is adding to its pool of the most diverse corn genetics in the industry with the introduction of 102 corn hybrids for the 2014 planting season. Adding to an already robust portfolio of breakout Golden Harvest® and NK® brand hybrids, the lineup includes 60 hybrids containing new-to-market genetics. The additional 42 hybrids contain upgraded trait versions of proven high-performing genetics.

Twenty-four new hybrids contain the Agrisure Duracade™ trait, which will be offered in two trait stacks – Agrisure Duracade 5222 and Agrisure Duracade 5122 – for unmatched corn rootworm control. The Agrisure Duracade trait reduces beetle emergence by 99.79 percent, which is the highest reported reduction of any corn rootworm product on the market, according to USDA studies1. Sixteen of the Agrisure Duracade hybrids feature Agrisure Viptera® technology; and eight hybrids contain a trait stack of Agrisure Duracade, Agrisure Viptera and Agrisure Artesian®.

Agrisure Artesian technology, which maximizes yield when it rains and increases yield when it doesn’t, is included in 30 hybrids for the 2014 season. Widely adapted across all yield environments, Agrisure Artesian technology is included in hybrids with industry-leading genetics and best-in-class insect control and herbicide tolerance. Actual results in 2012 field research showed an even greater yield benefit of nearly 17 percent under severe and extreme drought conditions2.

New hybrids include 16 Agrisure Viptera 3111 hybrids for control of the multi-pest complex, a collection of yield- and quality-robbing insects that collectively cause $1.1 billion in annual losses for American corn growers, and 13 Agrisure Viptera 3110 hybrids for control of above-ground insects in environments where growers do not need to manage corn rootworm.

Eight hybrids containing either the Agrisure Viptera 3220, E-Z Refuge™ trait stack or the Agrisure® 3122, E-Z Refuge trait stack will be available in 2014. These products feature a 5 percent integrated, single-bag refuge for Midwestern corn growers. The Agrisure Viptera 3220, E-Z Refuge trait stack offers dual modes of action to control corn borer and above-ground lepidopteran pests. Agrisure Viptera has been shown to protect corn against the development of mycotoxins, which cause an estimated $932 million in U.S. crop losses annually3. Hybrids with the Agrisure 3122, E-Z Refuge trait stack are intended for use in areas where both corn rootworm and lepidopteran pest management are primary concerns.

Nine new Enogen® corn hybrids will be released for the 2014 season, two of which will include Agrisure Artesian technology. Enogen corn hybrids are bio-engineered to enhance the productivity and efficiency of dry grind ethanol production. Expressing alpha amylase enzyme in the corn kernel, they effectively reduce energy and water use in ethanol production plants and allow for an increase in alcohol yield and output. Enogen hybrids are only available to growers who have an Enogen contract, which requires specific grain segregation and stewardship.

“We are incredibly excited about our entire new class of hybrids for the 2014 season,” said Eric Boersma, head of corn seed product management at Syngenta. “Through new combinations, a broader genetic pool, and an innovative digital breeding process, Syngenta genetics have achieved an extraordinary rate of genetic gain over the past six years.”

Boersma added, “In addition to these exciting new hybrids, Syngenta has refined the seed sizing for Golden Harvest and NK corn hybrids to provide growers clarity in their seed purchasing decisions. All seed in 2014 will be in 80,000 kernel units, regardless of seed size.”