Monday September 9 Ag News

Nebraska tax reform committee shows its ‘options’
(from NE Watchdog)

A panel of lawmakers looking to update Nebraska’s tax code has released a list of “options” to consider as it begins holding public hearings around the state.

The Tax Modernization Committee will hold public hearings in September and October as it works to make the tax code more fair, balanced and stable. It must issue a report with its recommendations by mid-December before the Legislature convenes in January.

Three months into the process, the committee has released a list of options for dealing with the most frequent tax concerns, but was careful to note that they are not recommendations.

The committee has said its recommendations will be revenue-neutral, meaning if one tax is reduced, the lost revenue would have to be replaced.

Among the “options” being considered by the committee:
    Offer tax relief by ag producers by reducing ag land value from the current 75 percent of market or by using the income capitalization approach used by other states in the region.
    Reduce the state’s reliance on property taxes by increasing state aid to schools, counties, cities, etc. or give local governments the authority to use other tax sources, including the sales tax (cities already have this option).
    Offer property tax relief by increasing the $115 million tax credit or redirect the funds through an income tax credit, for example, or by creating a “circuit breaker” program which gives a credit against income tax liability for property taxes that exceed a certain percentage of household income (often 5 percent).
    To reduce the personal property tax burden on businesses and farm operators, offer income tax credits for property tax paid on ag and business personal property or exempt all business equipment from the personal property tax. Another option: exempt a portion of each taxpayers’ personal property value from taxation.
    To make the property tax system more progressive, impose a higher property tax rate on owners of large amounts of property, which would require the state constitution to be amended by voters.
    Exempt business and ag purchases of materials, machinery and equipment. Currently, the state exempts farm machinery and equipment but not repair or replacement parts, and exempts manufacturing machinery, equipment and repair and replacement parts. Another option: exempt farm repair and replacement parts or extend the manufacturing machinery and equipment exemption to all businesses.
    Periodically review sales tax exemptions; amend all of them to include a five-year sunset.
    Begin taxing personal or consumer services, or just certain services.
    Reduce Nebraska’s individual income tax rates to better compete with South Dakota and Wyoming, which have no income tax, and Colorado’s single flat income tax rate. Nebraska’s rates range from 2.46 to 6.85 percent, which are about average nationwide. Another option: Reduce only the top rate to below 6 percent or adjust all the rates and brackets.
    Exempt all Social Security benefits from income tax, as 30 other states do, or only for those with incomes below $62,000 for married couples and $57,000 for all other filers. Another option: raise the federal thresholds for taxation.
    Change Nebraska’s taxation of most capital gains to match the feds’ or tax all capital gains at a rate lower than the highest marginal rate of 6.84 percent.
    Reduce the state’s corporate income tax or increase the threshold at which the rate increases from 5.58 to 7.81 percent from $100,000 to $250,000 to better compete with other states, particularly South Dakota and Wyoming, which don’t have a corporate income tax. Another option: Switch to a single bracket and rate or increase the threshold and lower the top rate to no more than 6.84 percent.



A Guide to Late Season Corn Stalk and Ear Rot Diseases
Tamra Jackson-Ziems, UNL Extension Plant Pathologist

Survey fields now and prioritize harvest and storage accordingly
Corn in parts of Nebraska has been damaged during recent weeks by hail and and stressed by very hot, dry conditions. These events and conditions can potentially lead to serious problems with grain quality during harvest and storage. Corn fields have sustained varying levels of damage. Plants that were impacted by hail likely have wounds on leaves, stalks, and ears where pathogens can infect the plant and cause diseases.

Some of these diseases and mycotoxins might have been exacerbated during the recent heat wave. The pathogens that cause stalk and ear rot diseases are common in fields and have probably already infected wounded plants. The severity of these diseases will depend on the extent of wounding and infection, as well as weather conditions and hybrid genetics.

As farmers approach harvest, the development and extent of these diseases should be determined in high risk fields so decisions can be made regarding field harvest order and how to best handle grain to minimize potential impacts of these diseases. Scouting is recommended prior to harvest to determine the extent of damage caused by stalk and ear rot diseases.

Stalk Rot Diseases
You can determine the risk for lodging and stalk rot disease incidence in fields using the “Push or Pinch Test.” While walking through fields, randomly select at least 100 plants that represent most of the field area and either:
-    Push the plant tops approximately 30° from vertical . If plants fail to snap back to vertical, the stalk may have been compromised by stalk rot and is at risk for lodging prior to harvest.
-    Pinch or squeeze the plants at one of the lowest internodes above the brace roots. If stalks crush easily by hand, their integrity has been reduced by stalk rots, making them more prone to lodging.

Fields with elevated risk for lodging should be harvested before less affected fields to minimize the chance of lodging and other complications during harvest.

Ear Rot Diseases
Ear rot pathogens will likely continue to grow during storage of infected grain and lead to grain mold that can seriously reduce grain quality and lead to major deductions at the elevator. Even under the best growing conditions, grain molds will usually continue to grow and, in some cases, may spread through the entire bin. Losses of up to 30% have been reported in south central Nebraska in recent years when grain was removed from storage, especially after a mild winter. Even during cold winters, remember that conditions inside the bin may be very different from its surroundings. Temperatures inside the bin may take several weeks to stabilize and condensation may develop, adding unwanted moisture that promotes fungal growth.

Steps you can take to minimize losses due to ear rot diseases and grain molds:
-    Remove old grain from empty bins because it harbors fungi that can infect new grain.
-    Avoid further damage to kernels during harvest and handling.
-    When possible, avoid storing grain from fields with a high incidence of ear rot diseases, or at least avoid mixing affected grain with healthy grain.
-    If storage is necessary, store for a minimum amount of time.
-    Cool grain as quickly as possible after harvest.
-    Dry grain to less than 15% moisture within 48 hours of harvest to slow further growth of fungi, especially with longer term storage.
-    Continue to stir and aerate grain bins during storage to prevent the development of hot spots.

Aspergillus Ear Rot
Aflatoxin is the best known mycotoxin in Nebraska and is produced by the fungus that causes Aspergillus ear rot. At this time there have not been any reports of aflatoxin in the 2013 crop. Hot, dry weather during the latter half of the growing season after pollination especially favors aflatoxin production. Drought-stressed corn, such as that in non-irrigated fields and non-irrigated pivot corners, is especially vulnerable to the accumulation of aflatoxin. Aflatoxin is toxic and carcinogenic to humans and livestock. The FDA has suggested action levels for aflatoxin concentrations, ranging from 0.5-300 parts per billion (ppb), depending on its end use.

Fusarium Ear Rot
Fusarium ear rot is a common disease in hail-damaged corn. Fusarium may infect any part of the ear and take advantage of wounds created by insects or hail. The species that cause this disease also can secrete a mycotoxin called fumonisin into the grain. This mycotoxin is carcinogenic, but is not measured at concentrations as low as that of aflatoxin (up to 50 ppm). Fusarium ear rot is favored by a wide range of environmental conditions and can be recognized by its scattered tufts of mold on the ears that may be white to pink in color and may be accompanied by starburst patterns on the kernels.

Diplodia Ear Rot
Diplodia (also called Stenocarpella) ear rot is a common disease in the Corn Belt. The fungus that causes this disease does not usually produce a mycotoxin in the United States, but can significantly reduce grain quality. Extensive fungal growth usually begins at the base of the ear and can overtake the entire ear, creating a lightweight mummified ear. In addition to these symptoms, it produces small raised, black fungal reproductive structures on infected kernels and stalks that give it a rough feeling when touched, similar to sandpaper.

Penicillium Ear Rot
Another grain mold, Penicillium, can cause discoloration of the embryo known as “blue eye” and produce penicillic acid, which is not usually a toxigenic concern. This disease is particularly a storage problem and is favored by high moisture levels in grain bins. The disease is managed by reducing insect wounds in the field and maintaining low moisture while the grain is in storage.
Grain Handling and Management During Storage

Ear rot pathogens will usually continue to grow to some extent during grain storage. However, taking extra steps can minimize fungal growth and contamination of unaffected grain and potential deductions at the elevator. Drying grain to less than 15% moisture (for longer storage) or at least to less than 18% (for shorter term storage) is necessary to slow mold growth.

In addition to storage in bins, storing the grain in bags for silage, earlage, etc., to promote fermentation will only hasten the growth of these fungi when grain moisture is high and temperatures are still warm. Eventually, once oxygen is depleted and fermentation begins, it may indeed slow mold growth, but the process may take several days to weeks to do so, during which time the environment inside the bag can act as an incubator for fungi, allowing them to grow even more rapidly than they would inside a bin.
Identification and Management Resources

Identification of ear rot diseases can be made by the UNL Plant and Pest Diagnostic Clinic. Sample submission forms and more information can be found at Plant Disease Central.



Sudden Death Syndrome Reports Increasing in Soybean
Loren Giesler, UNL Extension Plant Pathologist

Sudden death syndrome was recently confirmed in soybeans in the southeast, central, and east central districts of Nebraska. A soil-borne fungal disease, SDS produces a very resistant survival structure that is not affected by crop rotation.

Research at Iowa State University has shown that the SDS pathogen also survives well on corn kernels on the soil surface. This is relevant to Neraska producers who have had SDS in their fields and this year experienced late season hail with grain loss. These kernels could serve as a site for this and other fungal pathogens to overwinter.

SDS was first confirmed in Nebraska in 2004 and often is contained to areas within a field. Brown stem rot has been a disease of Nebraska soybean for many years.

Differenting SDS and Brown Stem Rot
Foliar symptoms of SDS are similar to those of brown stem rot; however, stem damage is different. Split the stem to more closely exam symptoms.

With brown stem rot, the center of the stem will be discolored and typically will be brown from the soil line upward. With sudden death syndrome discoloration will be confined to the outer layers of the split stem. The center will not be discolored, but the root cortex will be light gray to brown and may extend up the stem.

As with many plant diseases, the main management option is to select resistant varieties. Correct diagnosis is important so you’re aware of the pathogens in this year’s crop that may overwinter and cause problems for next year’s harvest. Fields with high SDS should not be planted early in future years and should be managed to reduce any compaction issues. Rotation will not affect SDS. Fields with brown stem rot will benefit from longer rotations. Foliar fungicides are not recommended for managing either disease.

For assistance in correctly identifying these diseases, submit a sample to the UNL Plant and Pest Diagnostic Clinic



Free Farm Finance Clinics Set for September

One-on-one, confidential Farm Finance Clinics are held across the state each month. An experienced ag law attorney and ag financial counselor will be available to address farm and ranch issues related to financial planning, estate and transition planning, farm loan programs, debtor/creditor law, water rights, and other relevant matters.  The Nebraska Department of Agriculture and Legal Aid of Nebraska sponsor these clinics.

Clinic Sites and Dates
    Fairbury – Wednesday, September 11
    North Platte – Thursday, September 12
    Norfolk – Wednesday, September 18
    Valentine – Thursday, Septemer 19
    Lexington – Thursday, September 19

To sign up for a clinic or to get more information, call Michelle at the Nebraska Farm Hotline at 1-800-464-0258.



New UNL Website Will Help Business Owners Understand Affordable Care Act
            A new University of Nebraska-Lincoln Extension website at http://eship.unl.edu/healthcare will help business owners understand the Affordable Care Act and its impact on their businesses.

            "The website includes timely information for those who are self-employed or who employ a small or large number of people, whether they are retail, manufacturing or agricultural businesses" according to Carroll Welte, UNL Extension educator. "Under the ACA, agricultural businesses are no different from other business types. Farmers and ranchers need to know the rules, especially if they have a large number of employees."

            The website features articles, videos and other news and blog feeds that will be helpful in understanding how the changes will affect business, and how they can develop a business strategy that fulfills the Affordable Care Act requirements and best meets their needs for continued growth.

            "The Oct. 1, 2013 deadline is coming fast and employers need to be aware of the ACA employee notification requirement of whether they will or will not provide health coverage in 2014." says Marilyn Schlake, UNL Extension educator. "The federally funded individual Marketplace and the Small Business Health Options Program (SHOP) exchanges are scheduled to open on Oct. 1. By this time, employers need to inform employees of their coverage options."

            The Affordable Care Act was signed into law March 23, 2010. Some mandates are already in place with more becoming effective in 2014. The large employers shared responsibility provision that requires employers to provide insurance coverage or face penalties was delayed until Jan. 1, 2015. However, all business owners should be planning now to explore the options that best meet the ACA law requirements and their employee and business needs.

            For questions or additional information from the UNL Extension ACA Team, email ACAbizNE@unl.edu.



September 18th - Burt County Cattlemen Fall Outlook Meeting
Location: Oakland Country Club
Time: 6:00 PM PM

September 19th - Dodge County Cattlemen Meeting
Location: Scribner Steakhouse
Time: 6:30 PM Social, Meal at 7:30PM
Program:  NE LEAD Fellow Tony Johanson of Oakland
More information: Duane Muller at 402.720.4591



Cuming County 4-H Members Excel at the Nebraska State Livestock Shows

Cuming County 4-H members had another very successful year at the Nebraska State Fair that was held in Grand Island.  According to Larry Howard, UNL Extension Educator in Cuming County, sixty-two Cuming County 4-H exhibitors showed 120 animals at the livestock shows this year.

In the Beef show, Sutton Bellar of Wisner showed the Reserve Champion Commercial Breeding Heifer, Katlyn Ahrens of West Point showed the Reserve Champion Maine Anjou Breeding Heifer and Sydney Williams of Wisner exhibited the Reserve Champion Simmental Breeding Heifer.  Megan Schroeder of Wisner placed sixth in the Intermediate Beef Showmanship contest.

In the Rabbit show, Joshua Sebade of Emerson showed the Best of Show.  His rabbit was also the Best of Breed-New Zealand and Best Commercial Rabbit.  Joshua also showed the Best of Breed-Netherland Dwarf.  Evie Schlickbernd of West Point showed the Best Opposite in the Mini Satin Breed.  Alexandria Breitkreutz of West Point showed the Best of Breed & Best Opposite of the Havana breed.  Alexandria was also the Senior Champion Rabbit Showamn.  Adrianna Meiergerd of West Point was the Intermediate Champion Rabbit Showman.

In the Swine show, Nathan Groth of Beemer was the tenth place Senior Swine Showmanship.

In the Elite Showmanship contest, Hunter Schroeder of West Point was named Overall Champion representing the Cuming County 4-H Program.  Hunter also placed first in the Swine, Sheep and Interview divisions.

Cuming County 4-H Members Complete at the Norfolk Beef Expo
The Cuming County 4-H program was well represented at the 64th Annual Norfolk Beef Exposition that was held at the Northeast Community College Agriculture complex on Sunday, September 8.  Cuming County had eighteen exhibitors show twenty head of Market Beef.

Shaila Bennett of Beemer showed the Champion Division 3 Market Steer.  In the Showmanship contests, Megan Schroeder of Wisner was the Champion Intermediate Showman and Chase Albers of Wisner was the Reserve Showman.  Cuming County also had youth participating on four teams in the Beef Fitting Contest.  Members on the Champion Fitting team were: Ryan McBride of Wisner representing Cuming County along with Trenton Elliott of Burt County and Taylor Gall of Colfax County.  The Reserve Champion team members were Hunter Schroeder, Heath Schroeder, and Haley Schroeder all of West Point.  Members on the third place team were Megan Schroeder, Wisner, Alexis Heller, Wisner and Paige Schroeder, Fremont.



Circle R Side Dump Introduces New Trailer:  37’ SuperCube Dump Body

Circle R Side Dump is proud to announce the newest addition to the lineup of side dump trailers.

The new 37’ SuberCube Dump Body is now available! This trailer features the same amount of reliability and toughness that Circle R is known for, but with even more efficiency! The new 37’ dumb body offers a 26.1 cubic yard capacity and an incredible 42.6 cubic yard capacity when a high capacity kit is installed.

The SuperCube is available on a 44’ chassis with axle options of: a tri-axle, quad-axle or quint-axle, allowing operators to maximize hauling potential in their state.

QuickLoad AirWeight® Scales are standard equipment on trailers with the new 37’ dump body. The scale converts air pressure in the air springs into accurate on-the-ground weight, eliminating check weigh fees and overweight fines.

The new Circle R trailer will be on public display for the first time at Husker Harvest Days (Booth #716) in Grand Island Nebraska, September 10-12, 2013.  



Nebraska farmers lend a helping hand

Thanks to famers across Nebraska, $947,500 has been invested in rural communities throughout the state. Back for the fourth consecutive year, America’s Farmers Grow Communities, sponsored by the Monsanto Fund, will be giving farmers the opportunity to win a $2,500 donation for their favorite, local nonprofit organization. Since the program was piloted in 2010, America’s Farmers Grow Communities has helped more than 379 nonprofit organizations.

Nonprofit organizations continue to search for funding opportunities that will better enhance their programs. Through the America’s Farmers Grow Communities℠ program, farmers have been able to support a variety of nonprofit organizations in Nebraska.
·         FFA chapters across the state have received a total of $110,000 in Grow Communities donations.
·         Farmers helped put out fires by donating $262,500 to fire- and health-related organizations.
·          Service organizations, like food pantries, have received $105,000.
·         Grow Communities has donated $137,500 to education organizations.
·         Community improvement organizations have received $237,500 through Grow Communities.
·         Many farmers chose to give back to their local 4-H clubs. A total of $77,500 has been donated to 4-H clubs across the state.

America’s Farmers Grow Communities launched nationally in 2011 and has grown to include 1,289 eligible counties in 39 states. Farmers and rural community members can now visit GrowCommunities.com or call 1-877-267-3332 and register to win or submit an idea for a nonprofit in need of funding. This program is part of the Monsanto Fund's overall effort to support rural communities.



USDA Reports Iowa Cash Rent

Cash Rent paid for non-irrigated cropland in Iowa during 2013 averaged $255.00 per acre, an increase of $20.00 from 2012, according to the latest numbers released by USDA’s National Agricultural Statistics Service. 

Two counties, Ida and Grundy, averaged over $300 per acre for non-irrigated cropland cash rents in 2013. Grundy county had the highest average cash rent in 2012, at $299 per acre.  Fifteen counties had average cash rents less than $200 per acre in 2013, compared with 20 counties in 2012.  These 15 counties were all in the 3 southern districts.

Cash rent paid for pasture in Iowa, at $49.00 per acre, was up $3.00 from 2012.  Average cash rents ranged from $30.00 per acre in Webster county to $77.50 per acre in Harrison and Pottawattamie counties. 
 
County - Non-Irrigated Cash Rent - $ per Acre
Plymouth - 276
Woodbury - 243
Ida - 314
Manona - 231
Crawford - 257
Carroll - 291
Harrison - 242
Shelby - 275
Audubon - 276
Pottawattamie - 269
Cass - 239
Mills - 260
Montgomery - 236
Fremont - 246

Cash rent rates for other states are available online at http://www.nass.usda.gov/Data_and_Statistics/index.asp.



Six past U.S. secretaries of agriculture to share the stage at Oct. 21 Landon Lecture

Kansas State University's next Landon Lecture will include six of the nation's chief leaders in the agriculture industry.

The event will be from 7 to 9 p.m. Monday, Oct. 21, at McCain Auditorium and will be a presented in a Q&A format. The past U.S secretaries of agriculture will be Mike Johanns, Ann Veneman, Dan Glickman, Mike Espy, Clayton Yeutter and John Block.

"The Landon Lecture Series on Public Issues has a long tradition of highlighting leaders in agriculture, but to have six of the nation's agriculture leaders on the same stage is nothing short of monumental," said Jackie Hartman, the university's chief of staff and director of community relations. "In addition, this forum is very fitting given the university's celebration of the sesquicentennial and our land-grant mission."

Johanns served as secretary from 2005 to 2008. Days after he took office, he began working with U.S. trading partners to reopen their markets to U.S. beef. Nearly 119 countries had closed their markets after a single finding of a cow infected with BSE, commonly called mad cow disease. Within his first year, Johanns convinced nearly half of them to reopen their markets.

Veneman served as secretary from 2001 to 2005. She was actively involved in the Uruguay Round of General Agreements of Tariffs and Trade negotiations, the North American Free Trade Agreement, and the U.S.-Canada Free Trade Agreement.

Glickman served as secretary from 1995 to 2001. For 18 years he served in the U.S. House of Representatives for Kansas' 4th Congressional District. He contributed to the farm bills of 1977, 1981, 1985 and 1990.

Espy served as secretary from 1993 to 1994. He was first elected to Congress in 1986 and served on the Agriculture and Budget committees. Within these committees, he served on several subcommittees, including the Natural Resources and Community Development subcommittees, the Lower Mississippi Delta Caucus, and the Select Committee on Hunger's Domestic Task Force.

Yeutter served as secretary 1989 to 1991. He held numerous positions, including president of the Chicago Mercantile Exchange until 1985 when President Ronald Reagan appointed him U.S. trade representative. Yeutter later served as chairman of the Republican National Committee.

Block served as secretary from 1981 to 1986. Previously he was Illinois secretary of agriculture. After leaving the USDA, Block became the president of the National-American Wholesale Grocers' Association based in Washington, D.C.

For more than 40 years, Kansas State University's Alfred M. Landon Lecture Series on Public Issues has brought prestigious speakers to campus. Alfred Landon served two consecutive terms as Kansas governor and was the 1936 Republican Party nominee for president of the United States.



Fostering Old Relationships to Regain Market Share

In 2012, Korea was the third largest corn importer in the world and the fourth largest market for U.S. corn. Yet because of the drought of 2012, U.S. imports have dropped to less than 1 percent so far in the 2013 calendar year, according to Korean import statistics. This has propelled the U.S. Grains Council to engage in aggressive programming to reinvigorate Korean buyers for U.S. corn.

The Council has been active in Korea since opening an office there in 1972, and Korea remains an important market. Korea produces very little coarse grains and imports more than 98 percent of total consumption. Corn has dominated in Korean grains import market, ranging from 65-85 percent of the total market.

A delegation of U.S. corn producers was escorted by the Council in Korea last week and has continued to Japan to reassure long-time customers of the United States' ability to produce to satisfy its customers' needs. The group, consisting of farmers and representatives from across Iowa, Illinois, Ohio and Missouri, met with Korean feed grain buyers who represent 83 percent of the market.

The Korean market is unique in its ability to adapt rations quickly in response to changing market prices which has caused U.S. market share to drop.

"In the aftermath of the 2012 drought, U.S. grain producers are trying to mitigate natural disasters through reinvestment on the farm," said Gene Baumgardner, Ohio Corn Marketing Program district 14 board member. "This message was well received by foreign buyers searching for relief from high commodity prices."

The USGC delegation is actively fostering relationships between the United States and its largest international customers, stressing the importance of the export markets and reestablishing the United States as the preferred, reliable, long-term supplier of quality feed grains.

"Korean buyers were impressed with the U.S. effort to increase corn production through new technology" said Byong Min, USGC director in Korea. "Korean import buyers will likely return to purchasing U.S. corn when the price becomes competitive because Korean feed millers and corn processors prefer to use U.S. corn that produces higher quality end-products."



Why a Farm Bill Extension Won't Work
Tom Vilsack, Secretary of Agriculture

In just a few days, Congress will come back to Washington, D.C. and Rural America is counting on passage of a comprehensive, multiyear Food, Farm and Jobs Bill as soon as possible.

In January, Congress extended some of the 2008 Farm Bill programs for nine months. This didn’t include important disaster assistance programs for farmers and ranchers. On September 30, many of these programs will expire, leaving producers and rural communities without a wide variety of Farm Bill programs.

While Congress has already extended these programs once, another extension of current law isn’t common sense and it won’t solve this challenge.

An extension won’t provide the certainty that has for so long been a cornerstone of the Farm Bill. It would deny farmers and ranchers the ability to plan their operation around a predictable, long-term farm safety net. For rural communities, it would provide little certainty with regard to economic development programs. It would set no long-term standards for conservation or renewable energy programs.

And failure to pass a comprehensive Food, Farm and Jobs Bill would do nothing to solve the Brazil cotton trade dispute. Left unresolved, this situation threatens producers and small businesses in America with hundreds of millions of dollars annually in tariff penalties against U.S. agriculture products and other American-made goods.

All of this uncertainty would diminish the positive impacts that Farm Bill programs have in rural America. Another extension would not accomplish the many important goals that would be achieved through passage of a comprehensive, long-term bill. In many respects, it would simply reward failure on the part of Congress.

However, Congress has the opportunity to tackle this challenge and get a comprehensive bill done for rural America. A multi-year Food, Farm and Jobs Bill would lend the certainty and predictability that producers and rural communities deserve. It would put our farmers and ranchers in a position to continue a period of strong growth and growing exports, while providing a leg up for rural communities and working families.

Rural America is counting on Congress to get their job done as soon as possible on a new Food, Farm and Jobs Bill – not another extension.