Monday January 20 Ag News

UNL to Offer Beef Profitability Workshops for Producers

Beef producers can attend any of 16 beef profitability workshops offered this winter through the University of Nebraska-Lincoln.  Meals will be provided. The cost to attend is $20. Register by calling the local extension office in the host county at least three days before the workshop.  The workshops are designed to help producers evaluate their operations and make them more profitable through the latest research information.  They are sponsored by UNL Extension.

Four of the following topics will be presented at each workshop:
            – Harvesting crop residues-does it affect future crop yields?
            – Balancing the ranch for protein
            – Alternative forages for grazing- what works
            – Fencing and watering options on crop residues
            – Mineral nutrition
            – Composting livestock carcasses
            – Windrow grazing
            – Forage testing and what the numbers mean
            – EPDs and bull selection
            – What the beef is all about

Dates, times, locations, contacts and speakers are:
            – Jan. 23, Neligh, courthouse meeting room, noon, Rod Wilke, 402-887-5414, Steve Niemeyer, Gary Stauffer, Steve Pritchard
            – Jan. 28, Stanton, noon, fairgrounds office, Kim Bearnes, 402-439-2231, Larry Howard, Steve Niemeyer, Dennis Bauer
            – Jan. 28, 6 p.m., Hartington, courthouse meeting room, Jackie Steffen, 402-254-6821, Larry Howard, Steve Niemeyer, Dennis Bauer
            – Jan. 29, Center, noon, courthouse meeting room, Ruth Vonderohe, 402-288-5611, Dennis Bauer, Steve Niemeyer, Gary Stauffer
            – Jan. 29, 6 p.m., Pierce, courthouse meeting room, Ann Fenton, 402-329-4821, Dennis Bauer, Steve Niemeyer, Gary Stauffer
            – Jan. 31, 11 a.m., Leigh, Colfax County Fairgrounds, Aaron Nygren, 402-352-3821, Dennis Bauer, Larry Howard, Steve Pritchard
            – Feb. 5, 9 a.m., Norfolk, Lifelong Learning Center, Dennis Bauer, 402-387-2213, the whole team
            – Feb. 6, noon, Butte, courthouse, Gary Stauffer, 402-336-2760, Dennis Bauer, Gary Stauffer, Steve Niemeyer
            – Feb 6, 6 p.m., O'Neill, extension office meeting room, Gary Stauffer, 402-336-2760, Dennis Bauer, Gary Stauffer, Steve Niemeyer
            – Feb. 11, noon, Dakota City, USDA Service Area, 1505 Broadway, Keith Jarvi, 402-987-2140, Dennis Bauer, Gary Stauffer, Steve Niemeyer
            – Feb. 11, 6 p.m., Pender, Firehall, Keith Jarvi, 402-987-2140, Dennis Bauer, Gary Stauffer, Steve Niemeyer
            – Feb. 12, noon, Tekamah, First National Bank, northeast meeting room, John Wilson, 402-374-2929, Larry Howard, Gary Stauffer, Steve Pritchard
            – Feb. 12, 6 p.m., West Point, Cuming County courthouse meeting room, Larry Howard, 402-372-6006, Gary Stauffer, Larry Howard, Steve Pritchard
            – TBA, Boone-Nance, Steve Pritchard, 402-395-2158
            – Feb 25, noon, Bartlett, Bibs and Boots restaurant ,Steve Niemeyer, 308-346-4200, Larry Howard, Gary Stauffer, Steve Pritchard
            – TBA, Central IV, Steve Niemeyer, 308-346-4200



New Northeast FB Regional Director Hired

Megan Kvols of Laurel, Neb., has accepted the Northeast Regional Director of Membership position within the membership department. Kvols replaces Clark Kinnison, who retired in November, Del Ficke, director of membership services, said Jan. 10. Kvols’ first day with Nebraska Farm Bureau will be Jan. 27.

“We are very excited to make this announcement. We look forward to Megan coming into our Farm Bureau family, building new relationships and continuing our efforts to place a stronger emphasis on membership,” he said.

Megan and her husband, Greg, operate a corn and soybean farm near Laurel and are members of Cedar County Farm Bureau. They also help oversee a family cow/calf operation near Whitney.

Megan is currently operating her own publishing company in which she has published four children’s books and she is also providing freelance writing services to a variety of online companies. She has several years of corporate sales and management experience including four years of being a district sales manager for Corporate Avon.

She was a 2002 honors graduate from the University of Nebraska-Lincoln where she majored in elementary education and social sciences. Right after college she taught kindergarten and first grades at Greeley-Wolbach schools and then third and fourth grades in the Omaha Public schools.

“Kvols brings an excellent skill set to the position in terms of communications, marketing and sales experience as well as a passion for agriculture that should serve our members, County Farm Bureaus and Nebraska Farm Bureau well in the northeast district,” Ficke said.

She and her husband have a four-year-old daughter, Elizabeth, and two-year-old twin boys, Jake and Grant.



Obama’s Regulatory Machine
Senator Mike Johanns

As the President gears up for his annual State of the Union address next week, you can bet he will discuss jobs and the economy—topics on the minds of many Americans who continue to struggle with our nation’s sluggish climb out of recession.  What he won’t highlight is the bevy of job-crushing federal regulations his Administration continues to unleash on would-be job creators who are being forced to comply with new federal burdens.

Last year, the federal government added 80,224 pages of new regulations to the Federal Register.  Stack them up and you have a tower of regulations that would dwarf the goalposts at Memorial Stadium. According to the American Action Forum, the Administration has already issued 2,074 pages of regulations in 2014 at a cost of $67.5 million.

I am hearing a growing chorus of concern from Nebraskans in a vast array of industries about how increased government regulations have hampered businesses and prevented expansion and hiring. Obamacare and its reams of regulations alone have even caused businesses to curtail hours for folks who are employed to avoid costly penalties. Some businesses face a $42,000 penalty for hiring their 51st employee because of the law and its regulations regarding the employer mandate.

While Obamacare’s many burdens remain in the spotlight, they aren’t the only examples of this Administration’s cavalier focus on expanding its regulatory reach—even despite laws that draw clear jurisdictional boundaries. Take the recent example of the Occupational Safety and Health Administration’s (OSHA) attempt to fine a family farm in Nebraska for failing to comply with regulations that didn’t even apply to family farm operations. Congress has protected family farms from OSHA regulations for more than 35 years, but that didn’t stop the agency from skirting the law and slapping the farm with $132,000 in fines. In response, Congress passed a measure last week that included my language clarifying Congress’s long-held protection of family farms and requiring OSHA to consult with the Department of Agriculture before attempting to regulate these operations in the future.

Admittedly, reasoned federal regulations have a place. We can all agree that a clean environment, safe workplace and secure transportation system are important, and measured federal regulations can help make it possible. But all too often, excessive one-size-fits-all regulations carry heavy unintended consequences for communities, businesses and families. As a result, hard-working folks who are already striving to overcome current economic challenges must now face added pressure from overzealous federal agencies.

This Administration’s addiction to overregulation is a source of increased uncertainty and increased compliance costs that are impeding job creation and economic growth in America. If the President really wants to improve the economy and curb unemployment, his Administration needs to reverse the rising tide of expensive, oppressive regulations and focus instead on getting out of the way of those who are eager to innovate and employ our way to greater prosperity.



Pork Producers Start to Slowly Expand National Herd

The U.S. pork industry has started a slow expansion driven by lower feed costs, which should lead to more rapid growth of pork supplies in the latter half of this year, says Purdue Extension agricultural economist Chris Hurt.

That could result in 2014 turning into the best year for pork producers in nearly a decade.

If corn and soybean meal prices stay low as expected, hog weights and pork production should continue to increase into 2015, Hurt said.

"The U.S. Department of Agriculture reports the number of market hogs to be down fractionally in 2014, but weights are expected to run about 2 percent higher and result in a 1 to 2 percent increase in pork production for the first half of 2014," Hurt said. "Farrowing intentions for this winter and coming spring are up 1 to 2 percent. With pigs per litter about 1.5 percent higher and higher weights, pork production in the last half of 2014 will be up 3 percent.

That continuing growth will be met with strong demand both based on limited competition domestically and strong export demand. Total meat supplies of beef, pork, chicken and turkey combined are likely to remain unchanged this year.

While chicken production is expected to grow by about 3 percent and turkey by about 2 percent, Hurt said beef supplies will fall by as much as 6 percent on the tails of a small calf crop and higher heifer-retention rates.

"Retail pork prices will be much lower than beef and will thus continue to pull some consumption away from beef at the retail counter," he said. "USDA analysts expect pork export demand to increase by 4 percent and represent nearly 22 percent of total production."

Last year, live-hog prices averaged $65 per hundredweight. Hurt said they are expected to average about $66 this year, with the highest prices ranging from $69 to $71 in the second and third quarters. Increased production during the summer and fall will then drive prices back down to below the 2013 levels.

Low production costs will, however, help maintain strong profit margins for pork producers.

"From 2000 to 2006, the estimated total costs of raising hogs was about $36 per live hundredweight," Hurt said. "That reached a high on a calendar year basis of $67 in 2012. Costs were estimated at $64 last year and are expected to average about $56 for the 2014 calendar year."

Part of what continues to drive low production costs is low feed prices. Corn averaged an estimated $6 per bushel in 2013. That price could fall to an estimated $4.45 per-bushel average for the 2014 calendar year. Soybean meal averaged about $440 per ton last year and likely will drop to an average of $395 per ton in 2014.

According to Hurt, profits could reach about $27 per head, making this year the most profitable for pork producers since 2005. As supplies increase, he said those margins will tighten, but not disappear.



NCBA Accepting Applications for Public Policy Internship

The National Cattlemen’s Beef Association’s and the Public Lands Council government affairs office in Washington, D.C., are accepting applications for the fall 2014 public policy internship. The deadline to submit an application is Feb. 17, 2014.

“NCBA and PLC’s internship is a great opportunity to see firsthand a grassroots effort at work in the nation’s most powerful city,” said Rachel Abeh, a Montana State University senior and fall 2013 intern. “I have a better understanding of the complexity and implications of the political issues facing our ranchers back here in the West, along with a greater appreciation for the lobbyists who work on behalf of our producers day in and day out.”

NCBA Executive Director of Legislative Affairs Kristina Butts said this is a great opportunity for students with an interest in the beef industry and public policy.

“From food safety and trade to environmental issues and taxes, this internship will give college students the opportunity to work alongside staff on many critical issues affecting U.S. cattlemen and women,” Butts said. “The internship is designed to work closely with the lobbying team on Capitol Hill; to assist with NCBA and PLC’s regulatory efforts; and to work closely with the communications team.”

The full-time internship will begin Sept. 8, 2014 and end Dec. 13, 2014. To apply, interested college juniors, seniors or graduate students should submit the application, college transcripts, two letters of recommendation and a resume to internships@beef.org. More information about the NCBA public policy internship is available on www.BeefUSA.org.



Alternative Energy Patent Issued to Kansas State University

Kansas State University was recently granted a U.S. patent for a material that helps convert straw and other grasses into a cleaner substance for alternative energy and fuel.

The patent, "Char Supported Catalysts for Syngas Cleanup and Condition," was issued to the Kansas State University Research Foundation, a nonprofit corporation responsible for managing technology transfer activities at the university. The patent is for research conducted by former faculty members Wenqiao Yuan and Duo Wang.

The patent focuses on more efficiently converting biomass made from straw and other grasses into a synthetic gas called syngas. Syngas can be burned for energy, used to generate electricity and is a basic building block in fossil fuels.

Yuan and Wang developed a catalyst -- a substance that increases the rate of a chemical reaction and is left unchanged by the reaction -- that can be used in syngas production. Converting biomass to syngas creates tar, an unwanted byproduct that must be scrubbed from the syngas.

"The Kansas State University-produced catalyst is more effective at removing tar from the syngas production cycle and is less expensive than current filtration methods," said Marcia Molina, vice president of the university's research foundation.

The patent currently is available to license.

Two patents were issued to Kansas State University in 2013. The university currently holds 100 active patients in its portfolio.



California Governor Declares Drought State of Emergency

With California facing water shortfalls in the driest year in recorded state history, Governor Edmund G. Brown Jr. proclaimed a State of Emergency and directed state officials to take all necessary actions to prepare for these drought conditions.

"We can't make it rain, but we can be much better prepared for the terrible consequences that California's drought now threatens, including dramatically less water for our farms and communities and increased fires in both urban and rural areas," said Governor Brown. "I've declared this emergency and I'm calling all Californians to conserve water in every way possible."

In the State of Emergency declaration, Brown directed state officials to assist farmers and communities that are economically impacted by dry conditions and to ensure the state can respond if Californians face drinking water shortages. The Governor also directed state agencies to use less water and hire more firefighters and initiated a greatly expanded water conservation public awareness campaign.

In addition, the proclamation gives state water officials more flexibility to manage supply throughout California under drought conditions.

State water officials say that California's river and reservoirs are below their record lows. Manual and electronic readings record the snowpack’s statewide water content at about 20 percent of normal average for this time of year.

Last week, USDA designated areas in 11 states, including 27 counties in California, as primary natural disaster areas due to drought. This designation makes farmers and ranchers in those areas eligible for assistance through a number of USDA programs. USDA is also working with farmers and ranchers to increase their irrigation water efficiency, protect vulnerable soils from erosion, and improve the health of pasture and range lands.



Ukraine Grain Exports Up 34% on Year

Ukraine exported 20.5 million metric tons of grain between the beginning of the current marketing year--July 1, 2013--and Jan. 17, 34% more than in the corresponding period a year earlier, the agriculture ministry said Monday.

Wheat exports to date totaled 6.94 million tons. The total figure of exported wheat included 5.62 million tons of milling wheat. Barley exports to date totaled 2.07 million tons, and corn exports 11.33 million tons.

The agriculture ministry said earlier that Ukraine's grain exports in the July 2013-June 2014 marketing year were likely to rise to 32.5 million tons from about 23 million tons in the previous marketing year owing to a bigger harvest.

The ministry said earlier Ukraine's 2013 grain harvest was over 63 million tons in bunker weight, up from 46.2 million tons in 2012, when crops were damaged by drought.



AgRural Trims Brazil Soy Crop

Dry weather in a number of Brazil's soybean-producing regions prompted AgRural, a local farm consultancy, to lower its 2013-14 crop forecast to 88.8 million metric tons from the 89.5 mmt predicted in December.

The greatest damage from a dry spell in December and part of January was seen in Mato Grosso do Sul and Goias, said the consultancy. As a result, it cut forecast average yields in Mato Grosso do Sul by 7% to 43 bushels per acre and in Goias by 4% to 45 bpa.

AgRural is the first consultancy to lower its Brazilian soybean number on the dry weather, putting its figure at the bottom end of the range of market estimates of between 89 mmt and 92 mmt.

Despite some heavy showers last week, harvest efforts picked up pace in Mato Grosso, Brazil's No. 1 soy state. Some 4% of the crop had been collected as of Friday, said AgRural. Field work is most advanced in the west of the state, where 8% has been harvested.

Early yield figures are pretty good across the state. With 15% of the crop harvested, farmers in Sapezal, western Mato Grosso, are registering average yields of 48 bpa. In Sorriso, northern Mato Grosso, yields of between 40 and 58 bpa have been reported on the 5% harvested.



Rains Arrive Over Argentine Corn, Soy

Rains fell across Cordoba, one of Argentina's key soybean and corn-producing provinces, over the weekend. Precipitation is expected to spread across the heart of the grain belt over the next couple of days, ending a hot, dry spell of nearly two weeks that was beginning to stress plants.

Ample showers fell on some parts of Cordoba Saturday and Sunday. Bengolea in the south of the province got 3 1/2 inches, but many other areas enjoyed only lighter rains, further east in San Francisco just three-fourths of an inch fell.

But showers are forecast to spread across most of the key grain-producing regions in the next few days. According to the Argentine Agricultural Technology Institute (INTA), the outlook for the next nine days is for moderate showers across Buenos Aires, Cordoba, Santa Fe and Entre Rios provinces.

The rain will be strongest in northern reaches, where it is perhaps needed most.



Bunge to Close Soy Processing Plant in Brazil

Bunge Brasil, a subsidiary of U.S. based Bunge Ltd, said it is closing a soy processing plant in southern Rio Grande do Sul state this week, saying Brazil's tax structure favors the export of raw soybeans. According to Reuters, Brazil's soy crushing plants processed less in 2013 than in the previous year after President Dilma Rousseff's government lifted the so-called PIS/Cofins social-security and payroll tax from the cooking-oil industry, leaving crushers holding large amounts of worthless tax credits.

Soyoil producers had previously been able to use those credits against other tax liabilities, but many of those taxes were also lifted. The changes have hurt the crushing industry's profit margins and resulted in idle processing plants.

Bunge still has six soy processing plants in Brazil, in five different states. The company said closing the plant will not effect other operations in Passo Fundo, Rio Grande do Sul, where it has a grain silo, and some commercial activity.

After reporting a quarterly net loss, Bunge's new chief executive in October signaled plans to shed the company's loss-making Brazilian sugar milling business, Reuters reports.

If it presses ahead with those plans, Bunge would be the first major merchant to consider exiting the once-hot sector that has swallowed billions of dollars of investment.