Friday October 18 Ag News

South Dakota Conference to Focus on Beef Barns

Beef barns of all types are becoming more common in the upper Midwest, but there's still a lot to learn about them. Several states are combining to conduct an informational conference.

The one-day Beef Facilities Conference will be Nov. 21 at the Best Western Plus Ramkota Hotel and Conference Center in Sioux Falls, S.D. The conference is a cooperative effort of Iowa State University Extension and Outreach, University of Nebraska-Lincoln Extension, South Dakota State University, USDA Agricultural Research Service and the USDA National Institute of Food and Agriculture.

"The purpose of the conference is two-fold," said Beth Doran, ISU Extension and Outreach beef program specialist. "Morning sessions feature environmental research with these facilities; afternoon sessions focus on building management and cattle performance."

The morning session will include results of a two-year air emissions study in mono-slope barns, air quality regulations and how to capture, manage and use nutrients produced in beef barns.  The two-year air emissions study looked at the emissions of gases and dust and is one of the first studies looking at air quality in these barns. Morning presenters are Erin Cortus, assistant professor at SDSU; Mindy Spiehs, research animal scientist at USDA, ARS, U.S. Meat Animal Research Center; Rick Stowell, associate professor at UNL; Kris Kohl, ISU Extension and Outreach ag engineering program specialist; and Angie Rieck-Hinz, extension program specialist at ISU.

Afternoon sessions will feature two panels – a producer panel discussing building management in different style barns and a university panel discussing cattle performance.  Four styles of facilities will be featured – mono-slopes, hoops, slatted floor deep-pit barns and open lots.  The university panel includes Robbi Pritchard, distinguished professor at SDSU; Dan Loy, director of the Iowa Beef Center at ISU; Shawn Shouse, ISU Extension and Outreach ag engineering program specialist; and Russ Euken, ISU Extension and Outreach livestock program specialist.

The conference is tailored to feedlot producers, beef consultants, building contractors, engineers and consultants, state and federal agency staff and extension and university professionals.

Conference information, registration materials and potential sponsorships are available on-line at www.aep.iastate.edu/facility/.  Registration is $40 if registered by Nov. 14.  Students receive a $15 discount.  Fees will increase $20 after Nov. 14 for all participants.



LANDOWNERS SHOULD APPLY NOW FOR RESOURCE CONSERVATION FUNDS

Farmers and ranchers interested in soil, water and wildlife conservation are encouraged to sign up now for the Environmental Quality Incentives Program (EQIP). EQIP is available from the USDA Natural Resources Conservation Service.  Those interested in applying are encouraged to sign up before Nov. 15, 2013.

EQIP is a voluntary conservation program available to private landowners and operators. Through EQIP, farmers and ranchers may receive financial and technical help to install conservation practices on agricultural land.

According to Craig Derickson, NRCS State Conservationist, there are several options available to producers through EQIP.

“EQIP is one of our most versatile programs. It offers cost share and technical assistance to apply conservation measures on cropland and rangeland, as well as for animal feeding operations and establishing or enhancing wildlife habitat. There are special initiatives to help conserve water in the Ogallala Aquifer, conserve energy on the farm or ranch, and provide assistance to convert to organic agriculture. There are many opportunities available, and NRCS staff can help landowners and operators sort out their EQIP options,” Derickson said.

EQIP has become one of the most widely applied conservation programs in Nebraska; enrolling over 600,000 acres last year with more than 8 million acres currently under contract statewide. The goal of EQIP is to provide a financial incentive to encourage landowners to install conservation practices that protect natural resources, resulting in cleaner air, water and more wildlife habitat.

“EQIP provides a good option for working lands. These contracts protect natural resources on land still in production and generating income. That’s a win-win situation for all Nebraskans,” Derickson said.

Individuals interested in entering into an EQIP agreement may file an application at any time, but the ranking of applications on hand to receive funding will begin Nov. 15, 2013, with a second round application ranking cutoff date of Jan. 17, 2014. Producers will be required to attain a minimum ranking score to be accepted for the first round of funding. The more conservation work a producer agrees to install, the higher the ranking score, and the greater the probability of being approved for funding.

The first step is to visit your local NRCS field office and complete an application. Producers are encouraged to sign up soon since all funding for EQIP in Nebraska could potentially be obligated by early 2014.

For more than 75 years, the Natural Resources Conservation Service (NRCS) has helped agricultural producers with conservation plans. NRCS Conservationists will work with landowners on their farm or ranch to develop a conservation plan based on resource goals.  Conservation planning assistance is free and does not require participation in financial programs.

For more information about EQIP and the other available conservation programs visit your local NRCS field office or www.ne.nrcs.usda.gov.



59th Annual Federal Income Tax Institute at 7 Sites Across State

For the 59th year, the University of Nebraska-Lincoln will partner with the Internal Revenue Service and the Nebraska Department of Revenue to bring training to tax preparers and professionals across Nebraska through the Annual Federal and State Income Tax Institute.

More than 1,200 tax practitioners participate on an annual basis as the institute travels to Lincoln, Grand Island, Kearney, Norfolk, North Platte, Omaha and Scottsbluff in November and December to continue this education.

Presenters this year include enrolled agents Frank Gaines, Gary Bredensteiner, Anthony Barrett and Mark Burch as well as IRS senior stakeholder liaison Theresa McGill. Training will include new federal tax laws, ethics and important income tax updates and laws.

"This year's presenters provide several years of experience, in-depth knowledge and presentation styles that make complex tax issues easier to understand," program coordinator Virginia Uzendoski said. "Once again this year attendees will leave feeling comfortable and confident in their knowledge for the 2013 tax season."

The Institute provides CPAs, enrolled agents, attorneys, certified financial planners, public accountants, tax preparers, paralegals, bookkeepers and banking, insurance and real-estate professionals with training to remain current on tax rules and regulations while earning continuing education credits, including two hours of ethics credit. The institute is accredited as IRS Continuing Education Provider (#NQ6J1).

Locations and dates:
-- Lincoln: Nov. 5-6 and Dec 2-3, Embassy Suites, 1040 P St.
-- Scottsbluff: Nov. 11-12, Hampton Inn and Suites, 301 W. Highway 26
-- North Platte: Nov. 14-15, Holiday Inn Express, 300 Holiday Frontage Road
-- Kearney: Nov. 18-19, Holiday Inn Convention Center, 110 Second Ave.
-- Grand Island Nov. 21-22, Midtown Holiday Inn, 2503 S. Locust St.
-- Norfolk: Nov. 25-26, Northeast Community College Learning Center, 801 E. Benjamin
-- Omaha: Dec 10-11, Omaha Marriott, 10220 Regency Circle

To register or for more information, go to taxinstitute.unl.edu, telephone 402-472-9334 or email Uzendoski. The registration fee is $310. This fee includes all course materials and presentations. The institute is sponsored by the UNL Office of Online and Distance Education.



Iowa Cover Crop Planting Deadline Extended to Oct. 31

Iowa Secretary of Agriculture Bill Northey Thursday said that farmers participating in the state water quality cost share program that are intending to plant cover crops have until Oct. 31 to get the cover crops planted and still qualify for assistance.

This extension only applies to state funded programs and is only available for those species that are likely to establish well, specifically winter rye, winter triticale and winter wheat.

"Everything has been behind this year due to the extremely wet spring weather, so some farmers have been unable to get cover crops planted as timely has they had anticipated," Northey said. "Scientists from Iowa State have assured us there are still significant water quality benefits to planting certain cover crops and that is why we have extended the deadline until the end of the month."

The recommended cutoff date for seeding cover crops in Iowa previously was October 15th. The Iowa Department of Agriculture and Land Stewardship has received guidance from Iowa State University that cover crops planted after this date still have the potential to provide substantial reduction in nutrient losses and soil erosion, so the Department extended the deadline until the end of the month.

Farmers who had been approved for cost share assistance and are still unable to get cover crops seeded should contact their local Soil and Water Conservation District office.



NASS Updates Schedule for October Reports

A number of agricultural estimates reports issued by the U.S. Department of Agriculture’s National Agricultural Statistics Service (NASS) were impacted by the lapse in federal funding. As a result, NASS made a number of changes to its report schedule. Below is a partial list of the updated schedule for some reports originally scheduled for release in October:

Agriculture Prices, October 31, No Change
Cattle on Feed, October 18, October 31
Cold Storage, October 22, October 31
Crop Production, October 11, Cancelled (next forecast November 8)
Crop Progress, October 7, Cancelled
Crop Progress, October 15, Cancelled
Crop Progress, October 21, No Change
Livestock Slaughter, October 24, October 31
Milk Production, October 21, November 1

In addition, the lapse in funding affected data collection efforts for the Farm Labor. The report, originally scheduled to be released on November 21, will be published on December 5.  More information is available online at www.nass.usda.gov.  



WRRDA Could Hit the House Floor As Early as Next Wednesday

The Water Resources Reform and Development Act (WRRDA), which was passed by the House Transportation and Infrastructure Committee last month, could be on the House floor next week. House Members are able to submit amendments to the bill until 10 a.m. on Tuesday, Oct. 22, which will be considered later that evening by the Rules Committee. After the Rules Committee’s approval, the bill could see floor time next Wednesday or Thursday. WRRDA seeks to increase funding for waterway development projects, such as deepening waterways and lock and dam repair and upgrades. The T&I Committee-passed bill includes language that will help speed up the project review process, which should ultimately allow goods like wheat to be shipped more efficiently. The Senate passed its version of the bill on May 15.



Informa Projects Record Soybean Acreage

Private analytical firm Informa Economics forecasts that farmers will plant 7 million more acres to soybeans in 2014 than they did in 2013. If realized, Informa's estimate of 83.9 million soybean acres would be a record.  Using a "trend-type" yield of 44.5 bushels per acre, next year's soybean production could swell to 3.7 billion bushels, Informa's report stated.

Corn acreage is expected to fall 4.3 million acres next year to 91.7 ma as corn's potential net revenue per acre falls below soybeans' prospects. Informa estimates that U.S. growers will produce 13.7 bb of corn in 2014 using a "trend-type" yield of 163 bpa.

Its wheat estimates, which put all-wheat acreage up 1.6 ma at 57.7 ma, are based on economic prospects as well as Informa's survey of winter wheat planting intentions.  The survey indicated 42.8 ma will be planted to winter wheat, with hard red winter wheat acreage estimated at 29.6 ma and soft red winter wheat acreage at 9.8 ma. The firm estimates that winter wheat will yield 48 bpa and spring wheat will yield 43 bpa. All wheat production is pegged at 2.3 bb.



Global Corn Demand Up: Where is it Going

According to USDA global corn trade will be 102.1 million metric tons (4 billion bushels) in 2013/14, up from 97.6 million tons (3.8 billion bushels) in 2012/13. The top 10 corn importing countries account for 68 million tons (2.7 billion bushels) – about two-thirds of global corn trade.

Japan will again be the biggest corn importer with 15.1 million tons (594.5 million bushels). Of the top 10 importers, five are located in Asia, two in Latin America and two in Middle East/North Africa. In spite of growing competition from Ukraine and South America, U.S. corn exports are poised to sustain and recover market share in Japan, Korea, Mexico, China, Taiwan and Colombia.

U.S. share of world corn trade has fallen from its historic level between 50 and 60 percent to a low of 18 percent in 2012/13. USDA currently projects that U.S. share will rebound to 31 percent in 2013/14, but established competition from South America and Ukraine will make it difficult for the United States to regain all lost market share.

However, USDA in its 2013 10-year outlook projected that the United States will capture 85 percent of future growth in world corn import demand.



Record Corn Harvest Ramps up, the Council Brings Buyers to the Table

With a record corn crop filling the silos this fall, the U.S. Grains Council has been busy bringing foreign buyers to the United States to show them the crop in an effort to encourage overseas customers to shift purchasing patterns back to the United States. In the latest of many foreign delegations visiting the United States this fall, the Council this week hosted nine buyers from Colombia, Venezuela, Peru, Ecuador and Panama, in South Dakota, Missouri and Louisiana.

The Latin America region is home to 12 of the top 20 U.S. corn customers, but the U.S. has recently lost market share. After several years of stiff competition due to high prices and low availability of U.S. corn, however, the tide turn is starting to turn. Colombian importers have already purchased more than 180,000 tons (7 million bushels) of U.S. corn. This is driven by the duty preferences given to U.S. corn under the Colombia-US Free Trade Agreement.IMG 3028 Likewise, after a two-year of absence from the U.S. market, Peruvian importers are looking to buy U.S. corn again as there is a duty-free quota for more than 600,000 tons (23.6 million bushels) of U.S. corn in Peru. In the next two months, at least, 90,000 tons (3.5 million bushels) of U.S. corn have been ordered for delivery to Peru.

Currently Ecuador is not buying corn as their local crop is very large, but importers are very interested in U.S. distiller's dried grains with solubles (DDGS). In 2013, Ecuador imported more than 13,000 tons of DDGS. Meanwhile Venezuela was the fifth largest importer of U.S. corn in 2012. Government controls on importers and access to hard currency is a major bottleneck for Venezuelan importers. However the Council is working to build closer relationships in this vital market.

Over the past decade U.S. producers have laid a foundation for a strong export year in Latin America by supporting several Free Trade Agreements which insure that U.S. corn, sorghum and DDGS are very competitive. In addition, regional buyers know that the United States is a reliable supplier of good quality products and are excited to see the large U.S. crop filling the export channels.



What the Panama Canal Expansion Means for U.S. Soybean Exports
(from USB)

More soybeans travel through the Panama Canal than any other agricultural product, which makes the canal extremely important to the U.S. soy industry.

The Panama Canal serves as a shortcut between Gulf of Mexico ports, where many U.S. soybeans get loaded onto ships, and Asia, home to many important U.S. soy customers. A much-needed expansion, scheduled to wrap up in 2015, could make soybean exports even more cost-efficient and beneficial to farmers’ profitability.

Here are five more things U.S. soybean farmers should know about the expansion:

1. The $5.2 billion investment to expand the canal will greatly increase the canal’s transit capacity and create more room for bigger ships with deeper drafts, allowing U.S. farmers to move more of their products at once.

2. The larger ships that will be able to use the expanded canal will improve the economy of scale for soybean exports. Taking into account fuel, charter fees and port and canal fees, 95,000-ton ships can save $7.59 per metric ton, or about $650,000 a trip compared with ships that can carry 55,000 deadweight tons.

3. Grain represents the second-biggest category of shipments through the canal. In fact, 35 million tons of grain passed through the canal in 2012. Included in that are 560 million bushels of U.S. soybean exports, which represent 52 percent of the shipments of grain between the Gulf of Mexico and Asia.

4. During the peak months following harvest, it typically takes between two and three days for a dry bulk ship to be able to pass through the canal. That includes the time a ship spends waiting in line. Last October, every day a ship spent waiting to cross the canal cost the owner of that ship more than $8,000.

5. Nearly 500 ships that will fit through the new canal and can carry up to 180,000 deadweight tons have been delivered to shippers, and nearly 200 more are on order.



ASA Writes to House Leadership in Opposition to Means Testing for Crop Insurance

Along with other major farm groups, the American Soybean Association has reached out in a letter this week to House leadership asking them to oppose any provisions in the upcoming farm bill conference that would impose adjusted gross income (AGI) means testing for the federal crop insurance program. In their letter, the groups note the critical role crop insurance plays in the survival of farms and ranches, and asked House leadership and the House conferees to oppose resolutions that undermine strong crop insurance protection.

A portion of the letter reads....
It is clear that crop insurance plays a critical role in the survival of farms and ranches, and remains a key reason that producers have been able to return to growing food, fiber, feed and fuel this year. But despite the success of the program, attempts were made to cut crop insurance protection during floor consideration of the 2013 farm bill. Those attempts were opposed by a diverse group of stakeholders, and they were ultimately defeated. We are now disappointed to face yet another attack on crop insurance in the form of a Sense of the House, and we oppose this resolution.

As with other lines of insurance, the crop insurance program is actuarially sound and requires a broad pool of participants to function properly. Arbitrarily assigning a means test for support would reduce program participation, resulting in a higher risk pool of insured producers, higher loss ratios over time and increased premium rates for those that remain in the program. Limiting crop insurance protection would also yield the unintended consequence of increased calls for ad hoc, off-budget disaster assistance.

The 2013 Farm Bill includes provisions to strengthen, improve and expand crop insurance; creating a barrier to participation through a means test is counter to that goal. Today, crop insurance is available for approximately 130 crops and types of livestock. Means testing unfairly discriminates against full-time and diversified farms. Additionally, it discriminates against those producing fruits and vegetables and other high-value crops. Clearly, producers would be impacted by means testing, and those thresholds would likely become more severe in the future.
Other groups that signed on include....
Agricultural Retailers Association
American Farm Bureau Federation
Corn Refiners Association
National Association of Conservation Districts
National Association of Wheat Growers
National Barley Growers Association
National Corn Growers Association
National Council of Farmer Cooperatives
National Farmers Union
National Milk Producers Federation
National Sorghum Producers
U.S. Cattlemen’s Association



2013 Hard Red Winter Crop Has Good Protein and Functionality

The USDA Agricultural Research Service Hard Winter Wheat Quality Lab and Plains Grains, Inc. collected and analyzed 534 samples from Texas, Oklahoma, Colorado, Kansas, Nebraska, South Dakota, North Dakota, Wyoming, Montana, Washington, Idaho and Oregon, representing about 80 percent of U.S. HRW production.

Despite generally dry growing conditions and kernel characteristics slightly below average, the 2013 HRW crop has unusually high protein content and very good processing characteristics. Water absorption and loaf volumes are very good and significantly exceed long-term averages.

Wheat and Grade Data.
The overall average grade was US No. 2 HRW, down from last year and the five-year average of No. 1 HRW because average test weight was 59.9 lb/bu (78.8 kg/hl). Forty-nine percent of the samples graded US No. 1 HRW. Nearly all the overall average wheat characteristics reflected the adverse weather conditions. Test weight and thousand kernel weight were well below the 2012 and five-year averages. Dockage of 0.6% was slightly above the 2012 and five-year average of 0.5%, while total defects of 2.0% was significantly above last year’s 1.4% and the five-year average of 1.5%. Both Gulf and PNW samples showed similar changes in kernel characteristics from last year and the five-year averages. The average protein of 13.4% was almost a full percentage point above the 2012 average of 12.6% and more than a full point above the five-year average of 12.2%. For both Gulf and PNW samples approximately 15% are in the less than 11.5% protein category, 25% in the 11.5% to 12.5% category and 60% in the greater than 12.5% category. Average falling number of 421 seconds indicates sound wheat.

Flour and Baking Data.
The laboratory mill flour yield averaged 76.1%, above the 2012 average of 75.2%, but with higher flour ash content. The yield is significantly above the five-year average, a difference mostly attributable to use of a new tandem Buhler Experimental Mill. Wheat to flour protein loss averaged 1.1%, below the five-year average of 1.3%. Overall average farinograph peak time and stability were slightly above the 2012 and five-year averages, and water absorption of 59.8% was higher than the 2012 average of 58.9% and significantly above the five-year average of 57.9%. The alveograph W value of 250 (10-4 J) is comparable to 2012 and five-year averages. Overall loaf volume averages 860 cc, significantly higher than the 2012 and five-year averages. The flour and baking data indicate there is protein quantity and quality in the 2013 HRW crop.

Following is an initial summary of results funded by USW, HRW states supporting Plains Grains and USDA’s Foreign Agricultural Service. USW will post complete results on www.uswheat.org soon and discuss characteristics with overseas customers at its annual Crop Quality Seminar events. Buyers are encouraged to construct specifications carefully to be sure that they receive qualities that meet their needs.



 History in the Making: US Sorghum Today Unloads in China Port

October 18, 2013, is a day that will go down in history as the first-ever bulk shipment of U.S. sorghum to China berthed and began unloading at the Guangzhou Port Facility. U.S Grains Council staff, representatives of buyers and sellers, port officials and a U.S. government representative arrived on the scene to celebrate the unloading and witness this historical event in the growing U.S.-China agricultural trade relationship.

The shipment of 60,000 metric tons (2.36 million bushels) is designated for animal feed and demonstrates the continuing modernization of China’s feed industry.

“China’s sophisticated feed industry has the capacity to explore different feed ingredients and evaluate their effectiveness in a highly competitive environment,” said Bryan Lohmar, USGC director in China. “The Council believes U.S. sorghum has significant potential to become a regular feed ingredient in China. Sorghum imports from the United States can help keep food prices low and improve China’s overall food security.”

With several more cargos on the way, Council sources indicate China could purchase a significant share of the 2013 U.S. crop.

“As of this month there are approximately 20 Panamax vessels sold of U.S. sorghum to China, which represents around 1.1 to 1.2 million tons (43.3 to 47.2 million bushels),” said Alvaro Cordero, USGC manager of global trade. “Traders estimate that the 2013/14 crop year should register sales of 1.6 million tons (63 million bushels) or more.”

Restrictions on corn imports through China’s tariff rate quota are providing a prime opportunity for the Council to help China’s feed industry and livestock producers seek a wider variety of options, including U.S. sorghum.

In September, the Council, along with the United Sorghum Checkoff Program, provided technical seminars and assistance to help the industry understand the nutritional value of sorghum, how to incorporate it into feed formulations and the potential for future sorghum export supplies from the United States.

One local Chinese trader said in an interview this week that these programs are directly attributable to the rapid development of the sorghum market in China.

“With China’s meat consumption growing and subsequent growth in feed demand, the United States is in a unique position, both in its capacity to produce and its variety of products, to respond and meet China’s feed grain needs,” said Julius Schaaf, USGC chairman.