Tuesday December 3 Ag News

Grazing Corn Stalk Residue
Larry Howard, UNL Extension Educator, Cuming County

Having cows graze to meet their nutrient needs is less expensive than having to deliver harvested forages to them. Crop residues can be an inexpensive option.  When grazing residue, cattle will select and eat the grain first, followed by the husk and leaf and finally the cob and stalk. Unless the corn field has experienced high winds causing a lot of corn to be left in the field, there is usually less than a bushel of ear drop per acre. If cows have husk and leaf to select, they will consume a diet that is 52 to 55 percent TDN and about 5% to 5.5% crude protein.

In the Midwest, weather records indicate the range in number of continuous grazing days for crop residue is 65-111 days. Weather is the major factor that determines the number of grazing days. Beef cows can successfully graze corn residue fields that have 4 to 6 inches of snow cover. Cows will not be able to graze stalk fields that are covered with ice. Ordinarily, dry cows will maintain body weight, and may gain weight, on corn and grain sorghum residue grazing programs when grain, husks, and leaves are available. Do not force cattle to eat the cobs and stalks.

Stocking rate influences the amount of grain, husk, and leaf available per animal. The amount of grain, leaf, and husk available affect diet quality because they are highly digestible. Residue (leaf and husk) yield left in the field is related to corn grain yield. There will be about 16 lb dry leaf and husk per bushel of corn yield.  It is recommended to design a grazing strategy to remove only 50% of the leaf and husk. Instead of remembering this equation, there is a nice spreadsheet called the Corn Stalk Grazing Calculator that is available on the web that will help you determine the number of acres at a specific corn grain yield needed for a certain number of cows.  It is available at http://beef.unl.edu/web/beef/learning/cornstalkgrazingcalc.shtml.  To run this spreadsheet, you will need Excel.

For more information on cornstalk grazing is available in a series of presentations from the Sustainable Use of Crop Residues on Cow/Calf and Yearling Operations Conference that was held in June of 2013.  The archive of that conference is online at http://beef.unl.edu/web/cattleproduction/sustainableuse-residues.



Nebraska Soybean Day and Machinery Expo Offers 2014 Growing Season Information

            The 2013 Nebraska Soybean Day and Machinery Expo Dec. 19 will assist soybean producers in planning for next year's growing season.

            The expo, which begins at 8:30 a.m. and concludes at 2:30 p.m., will be in the pavilion at the Saunders County Fairgrounds in Wahoo, said Keith Glewen, University of Nebraska-Lincoln Extension educator.

            The expo opens with coffee, doughnuts and the opportunity to view equipment and exhibitor booths. Speakers start at 9 a.m.

            Presenters include UNL researchers and specialists, Nebraska Soybean Board representatives, soybean growers and private industry representatives.

            This year's featured presentation is "5 Tips for Profitable Soybean Yields" with Marion Calmer, farmer and president of Calmer Research Center/Calmer Corn Heads, Alpha, Ill.

            Improving profits and growing high yielding soybeans are a passion on Marion Calmer's farm in northwest Illinois.  Populations, row spacing, residue management, fertility and combine settings are all part of his on-farm, research-based train of thought for maximizing profit.

            Calmer started his farming operation of 80 acres of corn and 10 gilts in 1975.  During his career, he has gone from conventional tillage to no-till, adopted the use of biotechnology, and has gone from growing corn and soybeans in 40-inch rows to growing both crops in 15-inch rows.  He also strives to reduce input costs.  Calmer has reduced the number of field passes that it takes to grow a crop from nine to three.  Calmer is a researcher, inventor, business owner, and nationally recognized and sought out speaker.

            Other topics of the program include: The World of Weather and Agriculture, Elwynn Taylor, climatologist, Iowa State University; Markets – The Soybean and Corn Complex, Darin Newsom, DTN senior analyst; and Research Report – No-till vs. Strip Till – Discovering Production Answers On Your Farm, Keith Glewen, UNL Extension educator – Nebraska On-Farm Research Network.

            The expo also will include an update on the Nebraska Soybean Checkoff update and association information.

            Producers will be able to visit with representatives from seed, herbicide, fertilizer and equipment companies and view new farm equipment during a 30-minute break at 9:45 a.m.

            The Saunders County Soybean Growers Organization requests that each participant donate one or more cans of nonperishable food to the food pantry.

            Soy doughnuts will be cooked on site, and noon lunch will be served.

            Registration is available the day of the expo at the door. For more information about the program or exhibitor information, call 800-529-8030 or e-mail kglewen1@unl.edu.

            This program is sponsored by UNL Extension in the university's Institute of Agriculture and Natural Resources, the Nebraska Soybean Board, Saunders County Soybean Growers Organization and private industry.  There is no registration fee.



NEBRASKA STUDENTS TO TOUR TAIWAN
Three Nebraska students will travel to Taiwan next week to experience the country’s agricultural education system, agricultural industry and to learn more about the role Nebraska agriculture plays in foreign markets.

The students are participating in a student exchange program between the Nebraska Department of Agriculture (NDA) and the National Taichung Agricultural Senior High School in Taiwan.  For the past ten years, three students from the Taiwan school have visited Nebraska to attend the annual Nebraska Agricultural Youth Institute (NAYI) – a week-long summer program coordinated by NDA.  In return, NDA chooses three NAYI delegates to travel to Taiwan.

“This exchange program is a wonderful opportunity for our students to experience a different culture, and to see firsthand how far reaching Nebraska agriculture’s impact truly is,” said NDA Director Greg Ibach.  “This is a program our students, and the students from Taiwan, look forward to every year and one we are proud to have been able to provide for the last decade.” 

The trip is coordinated by NDA and the Taipei Economic and Cultural Office (TECO) in Kansas City and is sponsored by the Nebraska Farm Bureau and TECO.

The students will leave for Taiwan on December 8 and will return to Nebraska on December 13.  While in Taiwan, the students will be staying at the Taichung school.  Their visit will include tours of the campus, interaction with Taiwanese students, participation in presentations, visits to local farms, and observations of several agricultural research institutes.  They also will have the opportunity to do some sightseeing.

The students will participate in the 2014 NAYI, where they will share their experiences with the delegates.

The three students selected by NDA are:
·         Mr. Zach Settje from Raymond.  Zach is a senior at Raymond Central and is the son of Dean and Kristi Settje.
·         Mr. Brandon Nichols from Bridgeport.  Brandon is a senior at Bridgeport High School and is the son of Robert Dale and Tammi Nichols.
·         Mr. Shawn McDonald from Phillips.  Shawn is a senior at Aurora High School and is the son of John and Susan McDonald.



Incredible, Edible Vehicle Competition Dec. 10 on UNL's East Campus

            Having the dog eat this homework isn't too far-fetched.

            The Dec. 10 Incredible, Edible Vehicle Competition will be at the Great Plains Room of the Nebraska East Union from 2-4 p.m.

            Students in Dennis Schulte's introductory biological systems and agricultural engineering class will demonstrate their edible cars. Schulte started the Incredible Edible Car competition several years ago to foster teamwork among his students.

            The cars must be made entirely of food and nothing else. Students then must be able eat the car at the end of the competition.

            Teams roll their cars down a sloped track to see which one travels farthest and stays in one piece. The top three teams receive a certificate. Teams also must make a poster detailing the process of making the car.

            Evan Curtis, department of Biological Systems Engineering, is coordinating the event, which is part of E-Day, a day for engineers held annually.

            Curtis said there are always many unique designs using a variety of products each year. Vegetables, sausage, cheese and candy are just a few of the materials students use in making the cars. With the addition of a 1300 calorie limit, the vehicles this year are expected to be healthier than ever before, Curtis said.

            It's a good way for students to show their creativity, he said.

            Curtis expects to have 26 freshman teams competing as well as several alumni returning to show their support in the form of a mini-career fair. Also in attendance will be 19 senior instrumentation posters.

            The Department of Biological Systems Engineering is jointly in the College of Engineering and the College of Agricultural Sciences and Natural Resources, which is a part of the Institute of Agriculture and Natural Resources.



CONSERVATION STEWARDSHIP PROGRAM SIGN-UP CURRENTLY UNDERWAY.

Nebraska landowners and operators have until Jan. 17, 2014, to sign up for the Conservation Stewardship Program (CSP) at their local USDA Natural Resources Conservation Service(NRCS) office. CSP is a voluntary program that provides financial and technical assistance to help farmers and ranchers conserve and enhance soil, water, air, and related natural resources on their agricultural and forestry land.

CSP applications are accepted at any time.  However, only applications received by the Jan. 17 cutoff date will be considered for the current ranking and funding period.

Craig Derickson, NRCS state conservationist in Nebraska, encourages Nebraska farmers and ranchers to not miss out on this opportunity.

“The Conservation Stewardship Program is unique. CSP participants will receive an annual land use payment for the environmental benefits they produce on their operations. Under CSP, participants are paid for conservation performance - the higher the operational performance, the higher their payment,” Derickson said.

According to Derickson, CSP has been a very successful program for Nebraska’s farmers and ranchers. Over 2,000 CSP contracts occur in all 93 counties and cover 4.8 million acres in Nebraska.

“CSP is popular in Nebraska because farmers and ranchers don’t have to take land out of production to participate. CSP helps conserve natural resources on working lands. Keeping land in production while protecting natural resources creates a win-win for all Nebraskans. CSP makes it possible to produce crops and livestock while also improving water quality, soil health and wildlife habitat,” Derickson said.

CSP is available statewide to individual landowners, legal entities, and Indian tribes. Eligible land includes cropland, grassland, prairie, improved pastureland, non-industrial private forestland, and agricultural land under the jurisdiction of an Indian tribe. Contracts are set at five years and include all the land controlled by an operator.

For more information about CSP, including eligibility requirements and a self-screening checklist, producers can visit http://www.ne.nrcs.usda.gov/programs/CSP.html or stop by their local NRCS field office.



Nebraska Counties Designated as Presidential Disaster Due to Severe Storms, Winter Storms, Tornadoes, and Flooding

Farm Service Agency (FSA) State Executive Director, Dan Steinkruger, announced nine Nebraska counties have been designated as primary natural disaster areas due to severe storms, winter storms, tornadoes, and flooding.  Those counties are Adams, Dawes, Dixon, Howard, Sheridan, Sherman, Sioux, Thurston, and Wayne.

These counties were declared a Presidential Major Disaster on November 26, 2013, based on storms occurring October 2 to October 6, 2013.  This designation authorizes Emergency (EM) Loans for eligible producers.  Steinkruger stated, “Producers in these nine counties are encouraged to contact their local FSA Service Center for detailed information about available programs and updated disaster designations.”

In addition to the Emergency (EM) Loan Program, the FSA has other loan programs and disaster assistance programs which can be considered in assisting farmers to recover from their losses.

Contact your local FSA Service Center or access additional information about FSA Disaster Assistance and Farm Loan programs at www.fsa.usda.gov.

While this release pertains to the availability of FSA programs, other federal agencies such as FEMA (Federal Emergency Management Agency) and SBA (Small Business Administration) may also have assistance to the public.  Information is available from these two agencies at the following websites: www.fema.gov and www.sba.gov.



“NRDs Praise Nebraska Officials on Special Master Report”

The Republican Basin Natural Resources Districts (NRDs) and the Nebraska Association of Resources Districts are encouraged by the recommendations issued by Special Master William J. Kayatta on the Republican River case. Further, the recently released results of non-binding arbitration related to an augmentation project in the Upper Republican NRD are also favorable to Nebraska.

In particular, Governor Dave Heineman, Attorney General Jon Bruning, the Nebraska Department of Natural Resources and the legal team that defended Nebraska deserve praise for their diligent efforts to create and defend Nebraska’s methods of maintaining compliance with the Republican River Compact. The means of compliance responsibly manage natural resources while protecting the economy and the right to use water in the basin.

The irrigators in the basin also deserve praise for their compliance with regulatory actions and willingness to work with the NRDs and the State of Nebraska to develop workable, common sense, Nebraska-based water management plans that will keep Nebraska in compliance while helping preserve natural resources for generations to come.

“The local NRDs will continue to protect the local economy of Nebraska while providing adequate regulations to protect the water resources,” said Joe Anderjaska, President of the Nebraska Association of Resources Districts and a Middle Republican Natural Resources District board member.  Anderjaska added, “The ability to create augmentation projects and the willingness of Nebraska irrigators to finance them will assure that Nebraska maintains compliance, sustains the water supply, and protects the local irrigated economy in the basin.”

The case went before Special Master William J. Kayatta in August of 2012.  The State of Kansas had sued Nebraska asking for up to 300,000 acres permanently retired from irrigation and up to $80 million in damages for water use in 2006. Kayatta instead recommended Nebraska pay $5.5 million in damages. He didn’t recommend a massive shutdown as Kansas had requested, which is a victory worth more than $100 million annually to the State’s economy. His recommendations will now be considered by the U.S. Supreme Court.

On the heels of the Special Master’s recommendations, arbitrator Jeffrey Fereday issued a non-binding arbitration order approving Nebraska’s Rock Creek Augmentation Plan and Alternative Water-Short Year Administration Plan. Fereday rejected Kansas’ multi-pronged challenge to the augmentation project in Dundy County and concluded that it complied with terms of a settlement between Kansas, Colorado and Nebraska reached in 2003. The Upper Republican NRD began operating the project early this year. It takes water that otherwise would have been used to irrigate crops in the sand hills north of Parks, Neb. and deposits it into Rock Creek, a tributary of the Republican River.

“The outcomes reflect the hard work of the Department of Natural Resources, the Attorney General’s Office, the NRDs and water users of the Basin to implement measures that achieve and assure Compact compliance,” URNRD General Manager Jasper Fanning said of the Special Master’s Report and arbitration order.

Although it would have been preferred to not have a financial damage award, $5.5 million recommended by the Special Master is much less than the requested $80 million. Kansas’ request for future restrictions on water use was denied and the Special Master acknowledged Nebraska’s accounting concerns, which are huge victories compared to the small damage award to Kansas. Among Special Master Kayatta’s recommendations were the following:
- Republican River Compact Administration (RRCA) Accounting Procedures should be corrected for accounting years after 2006 so that Nebraska is not charged with the consumption of Imported Water Supply as if it were Virgin Water Supply.
- 100% of the evaporation from Harlan County Lake during 2006 as calculated under the RRCA Accounting Procedures should be charged to Kansas.
- Kansas’ request that Nebraska be found in contempt should be denied.
- All remaining requests for relief, including Kansas’ requests for injunctive relief, sanctions, and appointment of a River Master, should be denied.

While the special master’s recommendations validate Nebraska’s compact compliance actions and procedures, the state and NRDs are working to further bolster efforts to ensure long-term compliance in ways that protect the economy.

Since 2006, several laws have changed to give the local districts the ability to develop water conservation and river augmentation projects.  The Nebraska Cooperative Republican Platte Enhancement Project (NCORPE) in Lincoln County provides an opportunity to provide additional water in compact call and water-short years and avoid additional regulation. Almost 16,000 acres were retired from irrigation by the Lower Republican, Middle Republican, Upper Republican and Twin Platte NRDs with the purchase of the farm. The project is very similar to the Rock Creek Augmentation Project but significantly larger and will be operational in 2014 to help prevent an irrigation shutdown on 100,000 or more acres in the Basin   In the future, water will also be piped into the Platte River to help return a portion of that Basin to 1997 levels.

Two surface water irrigation districts in the Republican Basin, Frenchman Cambridge Irrigation District and Bostwick Irrigation District, took legal action to stop the Rock Creek and NCORPE projects from being implemented but a federal court dismissed the lawsuit

The NARD, the trade association for Nebraska's 23 natural resources districts, works with individual NRDs to protect lives, protect property and protect the future of Nebraska’s natural resources.  These districts are unique to Nebraska.  NRDs are local government entities with broad responsibilities to protect our natural resources.  Major Nebraska river basins form the boundaries of the 23 NRDs, enabling districts to respond best to local conservation and resource management needs.



2013 Farm Poll: Farmers Concerned about Herbicide-Resistant Weeds

Iowa farmers are increasingly concerned about herbicide-resistant weeds and are changing their weed management practices to deal with the issue, according to the 2013 Iowa Farm and Rural Life Poll.

“In this year’s poll, we directed herbicide resistance questions to farmers who planted corn, soybeans or other row crops in 2012,” said J. Gordon Arbuckle Jr., a sociologist with Iowa State University Extension and Outreach. Arbuckle co-directs the annual poll with Paul Lasley, also an ISU Extension and Outreach sociologist.

The sociologists developed herbicide resistance questions for the 2013 poll in partnership with the ISU Department of Agronomy. Associate Chair Micheal Owen, university professor and extension weed specialist, said they wanted to gather in-depth information about the state of herbicide resistance in Iowa. They hoped to reveal farmers’ impressions of herbicide resistance and gain insight into the weed management practices farmers might be using.

“Typically growers don’t realize they have an herbicide resistance problem until 30 percent of the weeds are of the resistant phenotype,” Owen said.

Arbuckle said 35 percent of farmers responding to the poll reported they had weeds they believed to be resistant to at least one herbicide group. Glyphosate resistance was most commonly cited, with 32 percent of farmers reporting glyphosate-resistant weeds. Fourteen percent of farmers reported they had weeds they believed to be resistant to ALS inhibitor herbicides. Only 5 percent or fewer reported weeds resistant to triazine, HPPD inhibitor or PPO inhibitor herbicides.

Fifty-two percent of respondents indicated that they had changed their weed management program in the past five years to address herbicide-resistant weeds. Less than half reported that they developed their own herbicide programs, and 65 percent indicated that they hired custom applicators to do at least some of their spraying.

Ninety percent of respondents reported that they used postemergence herbicides in 2012, and 64 percent applied them to more than 75 percent of their land. Eighty-five percent reported using soil-applied herbicides, with half of farmers applying them to more than 75 percent of their cropland. Eighty-one percent indicated that they used formal scouting methods to determine the need for postemergence spraying on at least some of their land.

The researchers also asked farmers whether they used particular management practices and how effective those practices were for managing herbicide-resistant weeds.

Ninety-three percent used crop rotation and 80 percent used multiple herbicide application timings. Seventy-four percent of farmers also had managed weeds using tillage, 71 percent had used multiple modes of herbicide action in a season and 60 percent had used multiple modes of herbicide action in each application.

“These most commonly used strategies for managing herbicide-resistant weeds were also rated as the most effective,” Arbuckle said. “More than 80 percent of farmers rated crop rotation and multiple herbicide application timings as effective or very effective. At least 70 percent rated tillage or multiple modes of herbicide action used in a season or in each application as effective or very effective management strategies.”

The 2013 Iowa Farm and Rural Life Poll “provides us with a snap shot of how agriculture in Iowa is understanding and addressing issues regarding herbicide resistance. Researchers still have a lot of work to do before growers are fully aware of the serious issues. Growers can learn there are a lot of tactics they can use,” Owen said.

The weed specialist noted that more analyses of the farm poll data would be useful. How did growers with 1,000 acres or more respond compared with growers on smaller farms? Did they use different tactics? Getting answers to those types of questions could be helpful in developing ISU Extension and Outreach education programs.



Iowans Participate in International Ag Trade Mission to China

Members of the Iowa Corn Leadership Enhancement and Development (I-LEAD) program class 6 are preparing for an international agricultural trade mission to China. The purpose of the I-LEAD foreign mission is to help class members learn about the world food and fiber system and develop a deeper appreciation for the views of international customers. The class will be spending 10 days meeting with government officials, customers, industry experts, and farmers to discuss export market development for four of Iowa's main agriculture commodities; corn, soybeans, pork and beef. This class is working closely with international offices of the U.S. Grains Council and the U.S. Meat Export Federation. Iowa Corn has a well established market development relationship with both organizations.

"The I-LEAD international trade mission shows our next leaders how important trade is to Iowa and the United States. China is a very important market for ag products today and into the future, said Shannon Textor, Iowa Corn market development director and the staff member leading the mission. "Building relationships with key customers, like China, is a top priority in growing trade opportunities. We need to understand the opportunities and challenges and make sure they understand that we grow and produce safe and reliable food and grain."

Class members determined five objectives that they wanted to focus on during the trade mission. The objectives helped to define an intensive ten day agenda. They included:
-- Reviewing competitor markets or developing markets
-- Meetings with major consumers (including those with existing relationships in Iowa)
-- Learn more about market access with current restrictions or barriers

"We hope to build on the current Iowa relationships," said Textor. "After we return, we will continue to work with these customers to make sure they are receiving the quality they need and want from us."



Informa Boosts Global Soy Production

Private analytical firm Informa Economics increased its expectations for Brazil's soybean crop to 88 million metric tons, which would be 6.5 mmt above 2012-13 production and in line with USDA's November forecast.

Informa pegged Argentina's soybean production at 59.5 mmt, which, if realized, would be 10.2 mmt more than last year's harvest. By comparison, USDA estimated Argentina's crop at 53.5 mmt last month.

Brazilian soybean acreage is likely to increase 5.9% to 29.35 million hectares, or about 72.5 million acres, Informa said. Planted area in Argentina is likely to be 8.8% larger than last season at 21.8 million hectares, or 53.9 million acres.

Brazilian planting is about 85% complete, about average, while Argentina planting is 54% complete, slightly behind last year's pace, Informa said.

Informa's world crop estimates pegged world soybean production at 289.7 mmt in 2013, up significantly from USDA's estimate of 283.5 mmt in November. 

USDA will release its next round of supply and demand estimates on Tuesday, Dec. 10, at 11 a.m. CST. 

Informa's world crop estimate of corn totaled 966.8 mmt, up from USDA's November estimate of 962.8 mmt.



USDA:  Dairy Products Production October 2013 Highlights

Total cheese output (excluding cottage cheese) was 950 million pounds, 2.1 percent above October 2012 and 6.7 percent above September 2013.  Italian type cheese production totaled 411 million pounds, 5.7 percent above October 2012 and 6.9 percent above September 2013.  American type cheese production totaled 368 million pounds, 0.6 percent below October 2012 but 6.4 percent above September 2013.  Butter production was 146 million pounds, 1.2 percent above October 2012 and 10.2 percent above September 2013.

Dry milk powders (comparisons with October 2012)
Nonfat dry milk, human - 85.5 million pounds, down 10.1 percent.
Skim milk powders - 62.4 million pounds, up 36.7 percent.

Whey products (comparisons with October 2012)
Dry whey, total - 72.7 million pounds, down 5.7 percent.
Lactose, human and animal - 88.8 million pounds, up 8.0 percent.
Whey protein concentrate, total - 44.7 million pounds, up 20.9 percent.

Frozen products (comparisons with October 2012)
Ice cream, regular (hard) - 64.7 million gallons, down 0.9 percent.
Ice cream, lowfat (total) - 28.2 million gallons, down 21.1 percent.
Sherbet (hard) - 3.25 million gallons, up 11.6 percent.
Frozen yogurt (total) - 5.39 million gallons, down 0.4 percent.



Using, Not Buying, Livestock Gross Margin for Cattle
Matthew Diersen, Professor, South Dakota State University
       
While visiting with agriculture bankers in recent weeks, several asked about feeding margins and what their customers could do to manage margins. Protecting the margin is a common concern of cattle feeders too. One way to monitor the margin is to use the format from Livestock Gross Margin (LGM) insurance. The margin in LGM acts like a "cattle crush", where one sells live cattle and buys corn and feeder cattle. By tracking a specific margin, one can see its track record and decide if the margin is large enough to protect. Some of you may recall the textbook advice to use selective hedging for livestock. The reason for selective hedging is that always hedging livestock in a feeding setting will result in returns similar to always being in the cash market.

Consider the LGM margin for yearlings that are six months from marketing as fed cattle. In November, that expected margin coverage would have reflected a 1250 pound steer to be sold in May of 2014. The expected margin would have been what was left over after buying a 750 pound steer in December of 2013 and 50 bushels of corn in March of 2014. There is a formula that takes futures prices of either the contracts for those months or their surrounding months. In November, that expected margin was $181 per head, down from $207 per head in October. The actual margin will be computed based on the eventual feeder prices in a few months, corn at the end of March, and live cattle in six months. If a producer had purchased LGM in November, that is the margin covered and any combination of live cattle futures decreasing and corn or feeder cattle futures increasing would change the actual margin.

The 6-month expected margin is stable relative to the actual margin. The expected margin has averaged $164 per head over the past five years. That would also represent normal returns before non-corn feed costs. The expected margin has stayed above $100 per head since early in 2009. It has only exceeded $230 per head a couple of times - in early 2008 and again in August of 2013. The actual margin has much greater variability. The actual margin has turned negative a few times, in 2008 and 2012. Thus, cattle feeders would not have begun to cover variable costs during those stretches on unprotected cattle. However, being fully hedged all the time would have cost feeders the several times the actual margin has exceeded $300 per head, reaching a record level last month of $379 per head.

In a competitive environment, one would not expect very high or very low expected margins to last very long. One could monitor the expected margin. When it exceeds the average level, then protection could be considered. The trend, currently lower, could also be monitored as a signal to place protection before the margin becomes too low.

The expected and actual margin can be monitored on the Risk Management Agency website: www.rma.usda.gov. Details about LGM are available there also. Admittedly, LGM is not popular for cattle. So far in fiscal year 2014 only 250 head have been covered, up from 135 head in fiscal year 2013. If the volatility in the market were very high - making option protection on live cattle and/or corn expensive - then LGM can be cost-effective. To monitor the cost of premiums, the site: www.iaii.us can be used.



USDA, EPA Partnership Supports Water Quality Trading To Benefit Environment, Economy

The U. S. Department of Agriculture (USDA) and the Environmental Protection Agency (EPA) have announced an expanded partnership to support water quality trading and other market-based approaches that provide benefits to the environment and economy.

"New water quality trading markets hold incredible potential to benefit rural America by providing new income opportunities and enhancing conservation of water and wildlife habitat," Agriculture Secretary Tom Vilsack said. "Additionally, these efforts will strengthen businesses across the nation by providing a new pathway to comply with regulatory requirements."

"EPA is committed to finding collaborative solutions that protect and restore our nation's waterways and the health of the communities that depend on them," said EPA Administrator Gina McCarthy. "We're excited about partnering with USDA to expand support for water quality trading, which shows that environmental improvements can mean a better bottom line for farmers and ranchers."

Water quality trading provides a cost-effective approach for regulated entities to comply with EPA Clean Water Act requirements, including water quality-based effluent limits in National Pollutant Discharge Elimination System permits. Trading would allow regulated entities to purchase and use pollutant reduction credits generated by other sources in a watershed. Cost savings and other economic incentives are key motivators for parties engaged in trading. Water quality trading can also provide additional environmental and economic benefits, such as air quality improvements, enhanced wildlife habitat, carbon capture and storage, and new income and employment opportunities for rural America.

EPA and USDA are working together to implement and coordinate policies and programs that encourage water quality trading. The Department and the Agency will identify opportunities to work collaboratively to help improve water quality trading programs across the country. Cooperative management and technical assistance will improve resource management and public services, and accelerate implementation.

USDA and EPA will:
-    Coordinate and enhance communications and outreach to states, agricultural producers, regulated sources, and interested third parties on water quality trading;
-    Engage expertise across agencies in the review of grants, loans or technical assistance programs focused on water quality trading;
-    Share information on the development of rules and guidance that have the potential to affect water quality trading;
-    Collaborate on developing tools and information resources for states and credit generators to guide decision making, reduce costs in program design and implementation, improve environmental performance, and foster consistency and integrity across regional initiatives;
-    Co-host a workshop by 2015 to share tools and resources available to assist in stakeholder decision making and opportunities.

The purpose of this policy is to support states, interstate agencies and tribes as they develop and implement water quality trading programs for nutrients, sediments and other pollutants where opportunities exist to achieve water quality improvements at reduced costs.



Potash Corp. to Cut Jobs

(AP) -- Potash Corp. is cutting more than 1,000 jobs, about 18 percent of its workforce, because of slumping demand for potash and phosphate, two key fertilizer ingredients.

The Saskatchewan-based company said Tuesday it will cut 440 jobs in Saskatchewan, 130 in New Brunswick, 350 in Florida, 85 in North Carolina, and 40 in other U.S. regions and Trinidad.

The company controls more than 25 percent of the world's supply of potash, which helps farmers boost crop production.

Potash CEO Bill Doyle says they must make steps to run a sustainable business.

Shares of nutrient companies were hammered this year after news that a big Russian fertilizer company would stop cooperating in a pricing cartel.

Potash has been selling for around $300 per ton, about $100 less than earlier this year.