Wednesday October 2 Ag News

UNL Extension Partners with Universities for Annual Four-State Insurance Workshops

The annual Four-State Crop Insurance Workshop, “Farm Legislation and Optimizing Risk Management Strategies,” will be in Grand Island Nov. 13 at College Park, 3180 W. Highway 34.

University of Nebraska-Lincoln Extension is teaming up again with Colorado State University, Kansas State University and Oklahoma State University Extension to provide a series of crop insurance workshops.

Crop insurance agents, agricultural lenders, marketing consultants, agricultural educators and other risk management service providers will benefit from the workshops to help their clients make more profitable risk management decisions.

Farmers and ranchers will be able to apply the information to help them make management decisions.

After attending the workshop, participants will be able to:
            – understand implications of precision farming on crop insurance claims
            – understand the status of the farm legislation and implications for 2014 farm decisions
            – assess good irrigation practices for crop insurance coverage
            – assess grain marketing strategies for 2013-14

Other workshops will be Nov. 12 at the Brush Fairgrounds Event Center in Brush, Colo., Nov. 14 at the Salina Ramada Inn in Salina, Kan., and Nov. 15 at the Autry Technology Center in Enid, Okla.

The workshop costs $90 if registered at least five days before the workshop and $120 after that deadline. Each workshop begins at 8 a.m. for registration and ends by 4 p.m.

For more information, including lodging, registration and continuing education information, visit cropinsure.unl.edu.



Johanns Statement on Announcement of Farm Bill Conferees

U.S. Sen. Mike Johanns (R-Neb.), a member of the Senate Agriculture Committee and former Secretary of Agriculture, today released the following statement on the House and Senate announcing farm bill conferees:

“This takes us one step closer to enacting a long-term farm bill and giving our ag producers the certainty they need,” Johanns said. “There is a lot of work left to do, but I believe the House and Senate can come to an agreement on a fiscally responsible, market-oriented bill. I look forward to voting on a final bill.”

The House and Senate conferees are tasked with merging each chamber’s version of the farm bill into a single piece of legislation. That must pass the House and Senate before being signed into law by the President.

Senate conferees are Sens. Debbie Stabenow (D-Mich.), Pat Leahy (D-Vt.), Tom Harkin (D-Iowa), Max Baucus (D-Mont.), Sherrod Brown (D-Ohio), Amy Klobuchar (D-Minn.), Bob Bennet (D-Colo.), Thad Cochran (R-Miss.), Saxby Chambliss (R-Ga.), Pat Roberts (R-Kan.), John Boozman (R-Ark.) and John Hoeven (R-N.D.).



Beta-agonists: What are they and should I be concerned?
Lindsay Chichester – UNL Extension Educator, Saunders County
Galen Erickson – Nebraska Cattle Industry Professor of Animal Science

Beta-agonists are approved feed additives and are deemed safe by the U.S. Food and Drug Administration (FDA), where they act to enhance lean muscle gain, increase growth rate, and increase feed efficiency. There are differences between specific beta-agonists, but those approved by the FDA include ractopamine (brand names include Optaflexx and Paylean) and zilpaterol (brand name Zilmax). They are used in the U.S. swine and beef production since receiving FDA approval in 1999 and 2003, respectively. Additionally, beta-agonists have been approved for use in more than 24 countries (including the U.S., Canada, and Australia); and some countries have restrictions on specific types of beta-agonists. Approval for use in turkeys followed, but beta-agonists are not used as extensively in the turkey industry as in the swine and cattle industries. Beta-agonists re-focus the energy spent on feed conversion, and instead of adding mainly fat to the animal at the end of the finishing period, beta-agonists signal the animal to also continue to add additional lean muscle 20-40 days prior to harvest.

The beta-agonist binds to receptors in a muscle cell where it initiates an increase in protein synthesis, resulting in an increase in muscle fiber size. Beta-agonists are different than hormone implants in that the effects occur at a cellular level and do not affect the hormone status of the animal; whereas an implant, made of natural and synthetic hormones, does affect the hormone status of the animal to promote growth.

Interestingly, beta-agonists have been used and studied in human medicine long before they entered the animal production industries. In human medicine, beta-agonists are inhaled directly into lungs of asthma patients to relax smooth muscles that are constricting airways; they are routinely used on smooth muscle tissue through direct entry into the cardiopulmonary system; and pregnant women who are in premature labor have beta-agonists injected into their blood via IVs, to relax the smooth muscle tissue of the uterus, preventing premature births.

It is estimated that 60-80% of U.S. fed cattle are raised with a beta-agonist; either Zilmax (also known as zilpaterol hydrochloride, made by Merck Animal Health) or Optaflexx (also known as ractopamine hydrochloride, made by Elanco Animal Health). Zilmax has a three-day withdrawal period and is not intended for use in breeding animals, equine animals, or veal calves. With the addition of beta-agonists in an animal’s diet, there have been no reports of foodborne illness or human side effects reported. Beta-agonists have a very short half-life, meaning the animal’s organs break them down, metabolize and excrete them quickly in the feces and urine; ultimately resulting in no beta-agonists stored in the animal’s tissues (i.e. meat).

On August 7, 2013, Tyson Fresh Meats announced that as of September 6, it would no longer accept (temporarily at this point) cattle fed the beta-agonist Zilmax. Tyson Foods said the decision was based on animal mobility and welfare concerns, not food safety. It is unknown what the true cause of the mobility concerns are from, but animal health experts suggested Zilmax could be a possible cause. This decision was based off of observations that animals were arriving at harvest facilities showing signs of difficulty in walking or moving. The decision came quickly and without direct science and research to prove these claims; there is currently no scientific evidence that supports that beta-agonists may be causing cattle mobility issues. Further, no indications of lameness and mobility problems have been reported in controlled feedlot cattle studies prior to these claims where tens-of-thousands of cattle were involved in direct research. Days after Tyson’s announcement, Cargill posted a statement on their website announcing they too will stop purchasing cattle fed Zilmax in North America until the Merck research study is complete. At this time, the other packers, National Beef and JBS, have decided not to follow suit and are still accepting animals fed Zilmax.

Merck (the maker of Zilmax) has since taken proactive steps and announced it will temporarily suspend Zilmax sales in the U.S. and Canada during a product study period. During this period their plan is to establish valid study protocols, identify feeders and packers to participate in the audit, and create a third-party verification team to oversee the process and validate the results.

Merck indicated that animal health and well-being are the first and foremost priority. The benefits and safety of the product are well documented in a 30+ year history of research, development, and rigorous testing of the Zilmax product. In addition, worldwide regulatory agencies have reviewed the extensive data and found that when used according to the label, it is safe. Merck also stressed they have a strict policy to “vigorously pursue all reported adverse events, whether or not they are deemed related to the product.” Merck also announced they would re-certify all feedlot operators using Zilmax, to ensure the drug was being used properly. In addition, a “scientific audit” will be conducted to determine the potential causes of lameness and other mobility issues in the cattle Tyson based their decision on.

Merck’s animal health unit said it would require cattle feeders using Zilmax to undergo more training as part of a ‘Five-step Approach to Ensuring Responsible Beef.’ The five steps include:
1) Recertify every feeder, nutritionist, or veterinarian that feeds Zilmax to cattle, with special attention to feed mixing and determining which cattle are good candidates for beta-agonist use.
2) Within 30 days, reach out to packers and suppliers to initiate a scientific audit, focusing on feeding Zilmax. Cattle will be tracked from the feedlot to the packing plant to determine potential causes of lameness and other mobility concerns during feeding, transportation, off-loading, and staging at the packing facility.
3) Based on the findings, Merck will enforce appropriate management practices to include overall nutrition and feeding objectives, animal handling, low-stress environments, and transportation.
4) Within 30 days, Merck will form a health advisory board. The group will be made of small, medium, and large feeders, packers, cow-calf operators, and animal health and nutrition experts. These people will be responsible for reviewing available data and recommend any needed management practices.
5) Merck will share all findings.

Tyson’s website indicates they process about 132,000 cattle a week, which is approximately 26% of the U.S. beef market; while Cargill indicates they are approximately 21% of the U.S. beef market processing about 174,000 cattle a week. Cattle feeders who sold to Tyson and/or Cargill now have three options, they can continue to feed Zilmax and market to other packers, switch to a different beta-agonist (Optaflexx in this case), or stop feeding Zilmax altogether. Optaflexx research indicates that carcass weight increases are not as significant as compared to the response from Zilmax, with six to eight pounds less per carcass.

Market analysis reports indicate that the use of beta-agonists account for up to a 1.5-2% increase in meat production; which equates to approximately 24-33 additional pounds of beef, and six to seven additional pounds of pork. If you estimate that half of the 24 million head of beef cattle harvested annually produce an additional 30 pounds of meat. This would be an additional 360 million pounds of lean beef a year! This becomes a staggering number to ponder, especially as we continue to face drought, decreasing cattle inventory numbers, increasing grain prices, as well as increases in the price for red meat at a retail level. With an estimated 700 million pigs receiving a beta-agonist each producing six additional pounds, an additional 4 billion pounds of pork would be produced annually! While the use of technology in the cattle and pork feeding industry is making great strides, concerns have surfaced about the possibility of less tonnage of beef being produced in the coming months. It will be hard to tell immediately, as other beta agonists are available to cattle feeders. Industry reports have indicated fed-cattle futures and boxed-beef prices have moved higher, with shorter beef supplies anticipated.

The goal is to ensure that the animal’s well-being is considered first and foremost. Animal health companies, feedlots, and the packing industry are working in conjunction with scientists, researchers, and cattle industry representatives to determine the cause of the mobility and lameness concerns (these allegations will be proved though sound science and research), and to address this problem if one is found to exist. In this case, animal mobility has become an animal care concern and the beef industry is being proactive by temporarily halting sales of Zilmax to complete further research. Stay tuned as all research results will be made available!



Reducing Replacement Heifer Development Costs Utilizing a Systems Approach
Rick Funston, UNL Beef Reproductive Physiology Specialist 

Replacement heifer development and cow depreciation is the largest expense to most cow-calf operations after feed for mature cows. Thus, producers should strive for systems that optimize replacement heifer development costs, timely pregnancies, and cow herd longevity. In the past several decades, post-weaning development of replacement heifers has focused on feeding heifers to reach a target body weight of 60 to 65% of mature weight at breeding to achieve acceptable pregnancy rates (85 to 95%) in a 45 to 70 day breeding season. This development system was based on historical research indicating heifers bred at approximately 14 months of age should reach this target weight for acceptable pregnancy rates to be achieved.

In an effort to reduce costs, recent research has focused on comparing traditional, more intensive replacement heifer development systems to systems utilizing more inexpensive feed resources to develop heifers to lighter target body weights at breeding (i.e., 50 to 57% of mature weight compared with 60 to 65% of mature weight). Research has demonstrated replacement heifers developed to lower target weights, but are on a positive plane of nutrition before the breeding season through calving can have acceptable pregnancy rates and longevity. These lower-input systems allow producers to develop replacement heifers at lower costs without sacrificing reproductive performance.

Why have recommendations for heifer target body weight at breeding changed?

Genetic Selection
Much of the research recommending heifers be at a target weight of 60 to 65% of mature weight by breeding was conducted from the late 1960s through the 1980s. Since then, the genetic makeup of the U.S. cowherd has changed significantly. Age of puberty does not seem to be limiting heifer development programs as it did in the past. Heifers are reaching puberty at younger ages and at a lower percentage of their mature weight than has occurred historically. These genetic trends have been realized by widespread management changes and the use of Expected Progeny Differences (EPDs) in the selection for a variety of traits, including scrotal circumference and yearling weight.

Greater Understanding of Heifer Development Physiology
Timing of body weight gain: Use of timing when body weight gain occurs in replacement heifer development can be used to reduce development costs. Heifers developed to 50 to 57% of mature weight at breeding can still achieve acceptable pregnancy rates (80 to 95% during a 45 to 60 day breeding season) if the period of slower weight gain is followed by a positive energy balance prior to and through the breeding season. Heifers developed on crop residue or native range at low rates of gain have demonstrated compensatory gain in the spring when placed on higher quality forage. When this compensatory/higher rate of gain coincides with breeding, either A.I. or natural service, it appears to benefit conception and maintenance of pregnancy.

Learning to be a Cow
Replacement heifers developed on forages (often low-quality) they will utilize as cows are often better adapted to their environment than heifers in intensive development systems. It is hypothesized grazing is a learned behavior, suggesting heifers developed on grazed forages acquire more experience consuming forage, allowing them to better utilize these same feed resources as cows. Intensively developed heifers appear to undergo a learning and adaptation phase when introduced to forages, which can coincide with a time when they are already nutritionally challenged as growing yearling heifers being bred for their first calf.

Supplementation Strategies for Summer Breeding of Heifers
Current research validates the importance of nutrition prior to and through the breeding season to achieve acceptable pregnancy rates for heifers developed in a low-input system. Many cow-calf producers have moved to a later spring calving period to decrease labor, increase flexibility in marketing calves, and decrease harvested feed costs. This shift to later spring calving has resulted in heifers being bred in mid to late summer on pasture and rangeland where forage quality is often decreasing. These heifers, adequate in size and age for breeding, often have decreased pregnancy rates. A recent study demonstrated supplementing heifers during a late summer breeding season with a protein supplement (1 lb/hd/day of a 30% crude protein cube containing Rumensin®) on native range resulted in 20 to 25% greater pregnancy rates than heifers not receiving supplement. When breeding occurs during decreasing forage quality, protein supplementation prior to and during the breeding season may be important to the success of the heifer development system.

Summary
Development systems targeting 12 to 14 month old heifers to be at 50 to 57% of mature weight at the time of breeding can result in acceptable pregnancy rates. These systems must employ adequate nutrition prior to and through the breeding season as these heifers need to experience compensatory gain from breeding to calving to ensure adequate size and body condition to calve successfully. Development systems utilizing lower quality forages allow heifers to be developed at lower costs than intensive development systems. When changing to a lower-input development system, it is recommended to initially retain more replacement heifers than needed to determine how herd genetics will respond to a reduced nutritional environment during development.



Revitalizing Warm-Season Pastures
Bruce Anderson, UNL Extension Forage Specialist

Cheat grass, downy brome, bluegrass, smooth brome and other cool-season plants have invaded many warm-season grass pastures and rangeland. This invasion shifts good grazing away from summer and towards springtime when most folks have plenty of pasture anyway.

Cool-season grasses take over summer pastures relatively easily because they develop rapidly during fall and spring when native grass provides little competition. Then they use moisture and nutrients during spring before warm-season plants have a chance to use them.Hard grazing this fall after our recent freezes as well as early next spring will weaken brome and bluegrass when warm-season plants are dormant and unaffected. This can stop further invasion and slowly improve summer production. A prescribed spring burn also can do wonders for a warm-season pasture if you have enough fuel to carry a fire and can conduct the burn safely and legally.

Maybe the fastest approach, though, is to apply glyphosate herbicides like Roundup now in late fall. Recent hard freezes have turned warm-season plants dormant but weedy cool-season grasses still are green. Apply glyphosate when temperatures during the day are above 60 degrees and nighttime temperatures stay above 40 degrees for best results. This will kill or weaken the green and susceptible cool-season grasses but not affect dormant warm-season plants. By reducing competition, warm-season plants will grow more vigorously next year and provide better summer pasture.

Don't settle for invaded native pasture. Transform them back to vigorous warm-season grasses for better summer grazing.



REAP Holding Meetings Across Iowa
The public will have a chance to shape the future of Iowa's conservation and outdoor recreation at any of the 18 Resource Enhancement and Protection (REAP) assemblies this fall.REAP is a program that provides grants for and encourages enhancing and protecting Iowa's natural and cultural resources. The assemblies will show local impacts of REAP."We get the opportunity to go out to the public to talk about REAP's local impact," said Tammie Krausman, REAP coordinator.

The assemblies will also allow attendees to voice ideas for changes and modifications to REAP and its programs."People who are passionate about conservation and outdoor recreation should get involved to make decisions on what's happening locally," said Krausman.The assemblies will also allow participants to elect five members for REAP Congress. REAP Congress will meet Jan. 4 at the state capitol to talk about a variety of conservation topics such as soil conservation, water quality and outdoor recreation.

Next year is the 25th anniversary of REAP, so the meetings will reflect on REAP's accomplishments. They will also look to the future."REAP is as relevant today as it was 24 years ago, and the needs are still as great," said Krausman.All 18 assemblies are open to the public and will have open houses from 6 to 6:30 p.m. The assembly will be held from 6:30 to 8 p.m.REAP received $16 million for fiscal year 2014 (July 1, 2013 to June 2014). In addition to projects that enhance and protect resources, funding also goes to enhance soil and water quality, historic preservation, roadside vegetation and several other programs that are beneficial to Iowa. REAP has funded projects in every county in Iowa.

People can get involved in REAP outside the assemblies as well. "Most counties have a REAP committee where, if they want to talk more about these things, they can," Krausman said.County REAP committee chair person contacts can be found on the DNR's website at www.iowadnr.gov/. Meeting details can be found at: www.iowadnr.gov/Environment/REAP/. 



Congressional Report Touts Importance of Agriculture Exports

A report released this week by the Joint Economic Committee of the U.S. Congress cites the importance of agriculture – and agricultural exports in particular – to the American economy.

The report, titled “The Economic Contribution of America’s Farmers and the Importance of Agricultural Exports,” notes that the United States is the world’s leading exporter of agricultural products, with a record $141.3 billion exported in 2012 and a $38.5 billion trade surplus for the year for the agriculture sector.

While those totals are impressive, the report also notes that although agriculture has accounted for less than 5 percent of the United States’ gross domestic product (GDP) from 2007 through 2011, agricultural products as a share of total exports hovered around 10 percent.

“Exports are critical to the success of U.S. agriculture, and population and income growth in developing countries ensures that this will continue to be the case in the decades to come,” the report states. “Taking action to facilitate exports would help to strengthen the agricultural sector and promote overall economic growth.”

The report goes on to say that agricultural exporters often encounter trade barriers.

“Despite some progress, average agricultural tariffs remain substantially higher than those imposed on other products,” the report noted. “Moreover, unpredictable and unscientific applications of sanitary and phytosanitary (SPS) measures can create a significant burden for exporters, in particular for producers and processors of meat products.”

According to the report, pressing for lower tariffs on agricultural products – as well as ensuring that SPS measures are not used inappropriately to keep U.S. goods out of overseas markets – would help exporters.

The report recommends actions that Congress can take to facilitate export opportunities for America’s farmers, ranchers and agricultural producers, including:
-    Enacting a long-term farm bill to provide a certainty for U.S. agriculture
-    Pushing for provisions that reduce barriers to agricultural exports
-    Promoting export opportunities for small and beginning farmers, ranchers and processors

The report cites the changing landscape for American agricultural exports over the past 20 years. Two decades ago, just 1 percent of U.S. agricultural export sales went to China. This total increased to 4 percent by 2002 but, by 2012, China was the top destination for U.S. agricultural products, purchasing more than $25 billion in products that accounted for more than 18 percent of total sales.

In 2012, the China/Hong Kong region was the No. 3 market for U.S. pork exports, purchasing 431,145 metric tons (950 million pounds) valued at $886.2 million. China also has rapidly grown into one of the leading global markets for beef, but the country has remained closed to U.S. beef exports since the 2003 BSE finding in the United States.

“This report reinforces the importance of exports for the American agricultural sector,” said Philip Seng, president and CEO of the U.S. Meat Export Federation. “It also documents two areas that are critical for the success of agricultural exports: the enactment of a long-term farm bill to provide support for agricultural exports and provisions that reduce barriers to those exports. Both are equally important for an area of the economy that produces a much-needed budget surplus and supports an estimated one million jobs across the country.”

In 2012, U.S. beef, pork and lamb exports amounted to more than 7.5 billion pounds of product valued at more than $11.8 billion. The export value per head processed amounted to $55.87 for pork and $216.73 for beef.



Retail Fertilizer Prices Continue the Slide...

Retail fertilizer prices continue their historic move lower, according to prices tracked by DTN for the fourth week of September.  All eight of the major fertilizers registered lower prices from the fourth week of August and all eight also moved down significantly.

UAN32 sank 10% compared to last month while potash, urea and UAN28 were all down 9%. UAN32 had average price of $369 per ton, potash $500 per ton, urea $444 per ton and UAN28 $325 per ton.  The remaining four fertilizers were all down 5% compared to last month. DAP had an average price of $533/ton, MAP $571/ton, 10-34-0 $525/ton and anhydrous $654/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.48/lb.N, anhydrous $0.40/lb.N, UAN28 $0.58/lb.N and UAN32 $0.58/lb.N.

All eight of the major fertilizers are now double digits lower in price compared to September 2012.  UAN32 is now down 10%, MAP is 14% less expensive, DAP, 10-34-0 and UAN28 are all 15% lower, potash is 18% less, anhydrous is 21% lower and urea is 25% less expensive compared to last year.



Ag Panel Explores Ways to Improve Customer Protections, Avoid Another MF Global
Today, Rep. K. Michael Conaway, Chairman of the House Agriculture Subcommittee on General Farm Commodities and Risk Management, held a fourth hearing on the future of the Commodity Futures Trading Commission (CFTC) in advance of writing legislation to reauthorize the agency. The purpose of this hearing was to explore ways to improve customer protections and understand how best to avoid or prevent the collapse of another futures commission merchant (FCM) that disproportionately impacts farmers and ranchers in light of the failures at MF Global and PFG Best.

"Improving customer protections in futures markets is a topic that members on both sides of the aisle have been eager to explore for some time. For many of our constituents, the failure of MF Global and PFG Best added a new worry to their already overcrowded plate of concerns. An essential part of our job as lawmakers is to figure out the best way to restore confidence that an investor’s funds will always be safe, no matter what happens to other market participants. Our challenge is to put in place systems and processes that ensure mistakes are caught swiftly and wrongdoing is made exceptionally difficult. As we do so, we must examine whether the costs of new regulations outweigh the benefits to the marketplace," said Chairman K. Michael Conaway (R-TX).

"We must ensure that whatever regulatory regime the CFTC moves to put into place to protect our farmers, ranchers and co-ops in the future works well for all involved in the market by reducing risk and protecting customer funds without significantly raising the price of doing business.  But, as we continue to place burdens upon the CFTC to do more and to do better, we must also ensure they have adequate fiscal support to do the tasks they’re charged with," said Ranking Member David Scott (D-GA).

Witness List:
Mr. Terrence A. Duffy, Executive Chairman and President, CME Group, Inc., Chicago, Illinois
Mr. Daniel J. Roth, President and CEO, National Futures Association, Chicago, Illinois
Dr. Christopher L. Culp, Senior Advisor, COMPASS LEXECON, Chicago, Illinois
Mr. Michael J. Anderson, Regional Sales Manager, The Andersons Inc., Union City, Tennessee, on behalf of the National Grain and Feed Association
Mr. James L. Koutoulas, Esq., President and Co-Founder, Commodity Customer Coalition, Inc., Chicago, Illinois
Mr. Theodore L. Johnson, President, Frontier Futures, Inc., Cedar Rapids, Iowa

This is expected to be the final hearing in the series on the future of the CFTC. The first one was a full committee hearing to gain perspectives from the market. The last two were subcommittee proceedings to hear from the CFTC Commissioners and end-users directly.



NCGA First Vice President Urges Action with an Eye toward the Future

When the National Corn Growers Association entered a new fiscal year yesterday, Maryland farmer Chip Bowling assumed the role of first vice president.  Off the Cob spoke with the new officer to explore the issues he sees as needing the most immediate attention and his long-term goals for his term.

"We will still be facing the need to pass a new farm bill in 2014," he said. "Passing this legislation is a necessity. It's been an ongoing struggle for all farm commodities, and it doesn't appear that a new five-year bill will be completed any time soon."

He notes that, at the same time, it is imperative that NCGA, and all corn farmers, defend the RFS vigorously.

"We will also continue to face the seemingly never-ending attack on the Renewable Fuel Standard," said Bowling. "At this point, ethanol means almost everything to a corn farmer. We will carry on in our efforts to protect the RFS, and we will look for new ways to grow and improve the market for ethanol markets."

Following his term as first vice president, Bowling will serve as president for the 2015 fiscal year. In the long run, he hopes to execute a sustained effort to help Midwestern farmers who will face regulatory issues similar to those already in place in his home state.

"I want to improve how we work with the Environmental Protection Agency to ensure we have a seat at the table," he said. "We are going to have new regulations coming out and face the implementation of those already in place. Dealing with water regulations on the Chesapeake Bay has been a non-stop effort for the farmers in my area. It appears that our regulatory issues are moving westward to impact those near the Mississippi River. As these issues begin to affect more and more corn farmers, we need to work to make compliance as easy and effortless as possible. We know that they are coming, but we need a seat at the table to make sure that they work well with how we farm."



Weekly Ethanol Production for 9/27/2013
According to EIA data, ethanol production averaged 875,000 barrels per day (b/d) — or 36.75 million gallons daily. That is up 43,000 b/d from the week before and the highest in 12 weeks. The four-week average for ethanol production stood at 848,000 b/d for an annualized rate of 13.00 billion gallons.

Stocks of ethanol stood at 15.5 million barrels. That is a 0.7% decrease from last week and the lowest since the week ended 6/28/2013.

Imports of ethanol were 14,000 b/d, down from last week. EIA’s weekly data suggest year-to-date ethanol imports stood at 240 million gallons.

Gasoline demand for the week averaged 358.1 million gallons daily, the lowest since early May.

Expressed as a percentage of daily gasoline demand, daily ethanol production was 10.26%, a 21-week high.

On the co-products side, ethanol producers were using 13.267 million bushels of corn to produce ethanol and 97,653 metric tons of livestock feed, 87,058 metric tons of which were distillers grains. The rest is comprised of corn gluten feed and corn gluten meal. Additionally, ethanol producers were providing 4.56 million pounds of corn oil daily.



Certified Crop Advisor Exam Taken by Record Number in 2013

In 2013, a record number of aspiring and current agronomy professionals made a commitment to agronomy by taking their first step towards becoming a Certified Crop Adviser. Over 2,200 individuals took the Local-Board, International, or both exams.

The CCA program is growing because the agricultural and resource-conservation industries demand it. Through the CCA program, the American Society of Agronomy has been providing a uniform set of standards by which to measure agronomy professionals for over 20 years.

The continually changing landscape of agriculture and environmental regulation has led to an increased reliance on the rigorous program benchmarks, by government agencies and industry employers. Organizations find value in the program through the hiring process, reduced risk, and a multitude of benefits associated with having a more well-rounded and prepared employee.

Employers want to ensure that their employees are providing customers with the most profitable and environmentally-conscious options for their land-usage planning. The program provides that a certified professional has demonstrated the commitment, education, expertise, and experience to make a difference.

The adherence to the four main knowledge categories-Nutrient Management, Soil & Water Management, Crop Management, and Integrated Pest Management-has not changed, but the content has to coincide with the advancement of agronomy.



Ukraine Grain Harvest 13.4% Higher on Year
Ukrainian farmers are reporting higher yields from this year's grain harvest than last year when a drought damaged crops.

As of Wednesday, 37.732 million metric tons of grain had been harvested from 74% of the total area, for an average yield of 3.24 tons a hectare, the agriculture ministry said. That is 13.4% more than the average yield of 2.76 tons a hectare on the same day last year.

The ministry expects a total grain harvest of nearly 54 million tons this year, including corn, up from 46.2 million tons last year.



NCBA Holds National Anthem Contest

Oh, say, can you sing? Are you 18 or younger and related to National Cattlemen’s Beef Association (NCBA), American National Cattlewomen (ANCW) or Cattlemen’s Beef Board (CBB)? If so, you could win terrific prizes at the 2014 Cattle Industry Convention and NCBA Trade Show in Nashville, Tenn., Feb. 4-7. NCBA is hosting its first annual National Anthem Singing Contest to determine the singer of the Star Spangled Banner at the 2014 Opening General Session Tuesday,  Feb. 4, and at the Grand Ole Opry House during the Cowboy’s Night at the Opry II.

The winner of the contest will receive round-trip airfare for two to Nashville, a hotel room for three nights at the Gaylord, free registration for two to the convention and western wear from Roper and Stetson! The deadline for entry is Nov. 1, and the top four finalists will be selected by Nov. 15. Online voting will take place to determine the winner until Dec. 13, with the winner announced on Dec. 20.

“The 2014 Cattle Industry Convention and NCBA Trade Show is the place to be in February. The singing of the Star Spangled Banner is an important part of the event as we kick off the convention, not to mention the once in a lifetime opportunity to sing at the Grand Ole Opry” said NCBA President Scott George. “I encourage all talented youth who are 18 or younger and related to a member of NCBA, ANCW or CBB to submit an entry for this contest.”

If you know a stage-worthy singer, or if you are interested in entering the contest, visit www.beefusa.org for more information.




Monsanto to Acquire The Climate Corporation

Monsanto Company announced it has signed a definitive agreement to acquire The Climate Corporation for a cash purchase price of approximately $930 million. The acquisition will combine The Climate Corporation’s expertise in agriculture analytics and risk-management with Monsanto’s R&D capabilities, and will provide farmers access to more information about the many factors that affect the success of their crops. The companies’ combined capabilities will support greater productivity while utilizing the planet’s finite resources more precisely.

The acquisition is expected to expand on The Climate Corporation’s leadership in the area of data science, which represents the agriculture sector’s next major breakthrough, and will immediately expand both the near- and long-term growth opportunities for Monsanto’s business and Integrated Farming Systems platform.

“The Climate Corporation is focused on unlocking new value for the farm through data science,” said Hugh Grant, chairman and chief executive officer for Monsanto. “Everyone benefits when farmers are able to produce more with fewer resources. The Climate Corporation team brings leading expertise that will continue to greatly benefit farmers and their bottom-line, and we want to expand upon this tremendous work and broaden their reach to more crops and more world areas. We look forward to working closely with our distribution partners and others in the agricultural industry to bring this suite of information resources to the farm.”

The Climate Corporation was founded in 2006 by a highly successful team of software engineers and data scientists formerly with Google and other leading Silicon Valley technology companies. Since that time, the company has built the agriculture industry’s most advanced technology platform combining hyper-local weather monitoring, agronomic data modeling, and high-resolution weather simulations to deliver a complete suite of full-season monitoring, analytics and risk-management products.

“Farmers around the world are challenged to make key decisions for their farms in the face of increasingly volatile weather, as well as a proliferation of information sources,” said David Friedberg, chief executive officer for The Climate Corporation. “Our team understands that the ability to turn data into actionable insight and farm management recommendations is vitally important for agriculture around the world and can greatly benefit farmers, regardless of farm size or their preferred farming methods. Monsanto shares this important vision for our business and we look forward to creating even greater experiences for our farmer customers.”

The Climate Corporation has a core set of support tools to benefit farmers. These include products that help them boost yields on existing farmland and better manage risks that occur throughout a crop season. The Climate Corporation will continue to offer its current risk-management products including an online service that provides crop planning, monitoring, and recommendations, and insurance offerings through its network of independent agents.

The acquisition is subject to customary closing conditions and is expected to close in the first quarter of Monsanto’s 2014 fiscal year. Following the acquisition, The Climate Corporation will operate its business to retain its distinct brand identity and customer experience. The company will continue to maintain headquarters in Silicon Valley and all of its employees will be offered continued employment.

Combined Company to Be a Leader in Data Science, Acquisition Expected to Drive Near-and Long-Term Growth Potential
The acquisition of The Climate Corporation represents a natural extension of Monsanto’s vision to increase crop productivity, conserve more of our planet’s natural resources and improve the lives of people around the world. It will also greatly expand The Climate Corporation’s capabilities in data science, agriculture’s next major growth frontier, an area that represents a potential opportunity of $20 billion beyond Monsanto’s core focus today. The companies estimate the majority of farmers have an untapped yield opportunity of up to 30 bushels to 50 bushels in their corn fields, and they believe that advancements in data science can help further unlock that additional value for the farm.

The combined capabilities will immediately expand both the near- and long-term growth opportunities of Monsanto’s Integrated Farming Systems platform and research and development pipeline in the coming years.

Longer-term, the combination is expected to broaden the product choices available to farmers beyond Monsanto’s current row crop and vegetable portfolio, both inside and outside of the United States. This includes the delivery of insight and decision-support tools that could increase agriculture productivity on a billion planted acres around the globe.

Monsanto and The Climate Corporation share a commitment to delivering innovation for farmers through a broad range of choices and service providers. Monsanto noted that, consistent with its broad-licensing and multi-channel approach to technology, it intends to deliver the value of The Climate Corporation’s current and future applications through its distribution network.



Monsanto Delivers Third Consecutive Year of Strong Growth on Performance of Global Portfolio 

Monsanto reported net sales of approximately $2.2 billion for the fourth quarter of fiscal year 2013, an increase over the prior year period. Net sales for the full fiscal year were approximately $14.9 billion, a 10 percent increase over fiscal year 2012. Full year net sales results were driven by the strength of the Agricultural Productivity segment and global corn seeds and traits revenue.

Seeds and Genomics segment net sales were approximately $1.2 billion for the quarter. For the fiscal year, net sales for the Seeds and Genomics segment reached $10.3 billion, an approximately six percent increase over the prior year. Agricultural Productivity segment net sales were $1 billion for the quarter. Net sales for the Agricultural Productivity segment for the fiscal year increased to $4.5 billion.

Monsanto reported a net loss of $249 million in the fourth quarter of fiscal year 2013, compared with a reported net loss of $229 million in the same period last year. Net income for fiscal year 2013 was approximately $2.5 billion, an increase over fiscal year 2012 net income of $2.1 billion.

The company's fiscal year 2013 earnings per share (EPS) was $4.56 on an ongoing basis and $4.60 on an as-reported basis. For the fourth quarter, the company reported a loss per share of $0.47 on an ongoing basis and as-reported basis.