Wednesday January 15th Ag News

Demand for Midwest Farmland Remains Strong While Prices Show Signs of Leveling Off

Land prices and demand continue to be strong across a four-state area of the upper Midwest, but the latest data aggregated by Farm Credit Services of America suggest the market for crop production farmland could be leveling off or in some cases softening.

“After years of a steady rise led by lower than average U.S. yields, strong domestic and international demand for commodities, low interest rates and solid profit margins, we’re seeing the rate of price increases leveling off for farmland in some areas we serve,” said Mark Jensen, senior vice president and chief risk officer for farmer-owned FCSAmerica.  The financial services cooperative is a leading ag lender to farmers and ranchers in Iowa, Nebraska, South Dakota and Wyoming.

Jensen referred to two reports produced this month by the FCSAmerica appraisal team. The first is a semi-annual update of their Benchmark Land Values study, in which the lender has tracked the values of 65 farms for more than three decades. The second report is a compilation and analysis of more than 3,500 agricultural real estate sales transactions – both auctions and private sales – in all four states during 2013.

Average Change in Benchmark Farmland Values as of January 1, 2014
State           Six Months       One Year      Five Years      Ten Years
Iowa (21):        -2.8%             3.4%           98.3%          282.1%
Nebraska (19):  0.7%             8.0%          143.2%         325.9%
Source:  Farm Credit Services of America. Numbers in parentheses indicate number of farms studied.

Both the benchmark report and the analysis of sales transactions suggest the market for farmland is leveling off and in some areas softening in FCSAmerica’s four-state region, Jensen said.

“There’s evidence that farmland prices may be on a slight decline from record highs seen at the end of 2012 and for most of 2013,” he noted.  “Based on our benchmark study, Iowa land prices were down 2.8 percent in the second half of the year, and our review of real estate transactions showed Iowa land prices down 3.3 percent in the fourth quarter of 2013 compared to the third quarter.  Nebraska benchmark farm value increases slowed to the lowest levels in several years, up just 0.7 percent.”

Demand Remains Strong
Land prices and demand for farmland continue to be strong in the four-state area, Jensen said, but buyer sentiment could be adjusting with decreased commodity prices that will reduce the record profit margins experienced the past few years.

“Even though the number of public land auctions in 2013 was down 25 to 30 percent compared to 2012, auctions were often well-attended with multiple bidders,” Jensen said. “The number of auction ‘no sales’ in Iowa was 6.7 percent in 2013, an increase from 3 percent in 2012. Some sellers may have expected higher prices than the auction high bid. Local farmers continued to make most of the purchases.”

Jensen said FCSAmerica’s data suggest customers are positioned to weather a moderate downturn in land prices.

“Since 2008 FCSAmerica has used a risk management strategy that includes a cap per acre on the amount of money we’ll loan for land purchases.  We’ve been using a long-term sustainable value approach to projecting repayment and lending levels based on corn prices closer to $4.50 per bushel versus the prices of $7 or more that some farmers were receiving in 2012,” he noted. “Our customers understand the financial risks and volatility in the agriculture industry.  Their balance sheets and working capital levels are generally in a position of strength, and they have put a significant amount of equity into land purchases.”

State-by-State Highlights:

Iowa
·         Land continues to sell at all-time highs with premium ground generally bringing from $12,000 to as much as $17,000 per acre.
·         The average price for unimproved cropland was $9,700 per acre in the fourth quarter, down from $10,100 in the second and third quarters. However, the average price of land was $9,800 for 2013, up 8 percent from $9,000 in 2012.
·         There were approximately 30 percent fewer public land auctions in Iowa compared to 2012.

Nebraska
·         Nebraska benchmark land values were up 0.7 percent in January 2014 compared to July 2013 and increased 8 percent for the year.
·         Nebraska unimproved cropland values are measured separately for dry cropland and irrigated cropland.
·         Nebraska dry cropland prices have had significant price swings over the last two years. For the fourth quarter of 2013, prices increased by 15 percent to $5,900 per acre. The price per acre for 2012 and 2013 was $5,500 on average.
·         Nebraska irrigated cropland prices continued to rise, selling at all-time highs of $8,100 per acre. Land prices increased 6 percent during the fourth quarter of 2013. For all of 2013, prices were up 4.4 percent compared to 2012.
·         Auction activity in Nebraska was off approximately 30 percent in 2013 compared to 2012.



NeCGA previews NCGA Priority and Policy Conference at Colfax-Dodge Co. Corn Growers Mtg

The National Corn Growers Association's annual Priority and Policy Conference takes place this week in St. Louis, bringing farmer leaders from many corn states to begin the discussion of state and national priorities for the remainder of the 2014 fiscal year and to begin the 2015 fiscal year planning process. Together, these grower leaders will carefully assess NCGA's policies on such subjects as biotechnology, ethanol, public policy and trade.

"This meeting is an important opportunity for us to learn from leaders in our state organizations about their concerns and work together on a consensus for moving forward in the months ahead," said NCGA President Martin Barbre, a grower from Carmi, Ill. "It comes at an important time for our industry, with ethanol and the farm bill being just a few big priorities in Washington. There's much to discuss and much to take action on this week."

Scott Merritt is the Executive Director of the Nebraska Corn Growers Association, and was the featured speaker at Tuesday night's Colfax-Dodge County Corn Growers annual meeting.  Merritt told the group there are sure to be at least four priorities that are discussed at the NCGA conference...
    - Farm Bill Completion and finding a compromise on the Nutrition title and target prices, while holding the line on crop insurance
    - Keeping the blending requirements of the Renewable Fuel Standard at the current level
    - Water quality - Watching to see if the EPA takes the results from the Chesapeake Bay and tries to implement in other watersheds, including the Mississippi and/or Missouri
    - GMO labels on food - potentially a GMO food label compromise? 

Participants include the chairs, presidents and executive directors of NCGA's state organizations, as well chairs and vice chairs of the organization's action teams and committees. Official proceedings will begin Wednesday afternoon with policy discussions in which the states will voice the priorities that they have submitted for NCGA, the U.S. Grains Council and their own in-state organizations.

Again this year, as part of a collaborative initiative with the Council, the Priority and Policy Conference also includes leadership from that organization for a discussion of its future priorities and of trade issues.



Approps Package Requires EPA Aerial Surveillance Transparency, Accountability

U.S. Sen. Mike Johanns (R-Neb.) today announced that the Environmental Protection Agency (EPA) will finally have to reveal details about its aerial surveillance program. He applauded the inclusion of a provision he pushed in the omnibus appropriations package requiring EPA give a full account, including where the flyovers took place, how much they cost and how many were conducted. Johanns first asked questions about EPA’s use of aerial surveillance to monitor agriculture operations in a letter to the agency’s former administrator in 2012 and has since resubmitted nearly a half dozen requests, most recently during a committee hearing last year.

“For an Administration that publicly pats itself on the back for transparency, EPA has done nothing but try to keep these flyovers in the shadows,” Johanns said. “It’s unfortunate that Congress had to step in for EPA to simply reveal when, where, and how they are using taxpayer dollars to snoop on Americans. They were given numerous opportunities to be upfront, but instead chose to give flippant, snarky answers even going as far as to deny the existence of flyover records.”

The omnibus clarifying report language requires EPA  to, “submit a report to the House and Senate Committees on Appropriations within 180 days of enactment of this Act that identifies by fiscal year:  the amount of funding spent to contract for aerial over-flights, the contractor performing the work, the number of flights performed, geographical areas (county and State) that the contracted flights surveyed, and data that identifies by fiscal year the number of enforcement actions where aerial survey information was utilized as contributing evidence, and the outcome of each action.  The report shall include data from fiscal year 2003 to fiscal year 2013.”

Johanns sent multiple letters requesting information, which EPA, in response, refused to provide a national account of the program. Johanns also offered an amendment during the Senate’s farm bill debate requiring EPA to stop the program. The amendment earned the support of 56 Senators, including 10 Democrats, sending a strong message that EPA must be accountable to Americans.



Keep rural schools growing through America’s Farmers Grow Rural Education

Across the US, school districts are working to incorporate common core state standards and hands-on learning opportunities into their math and science curriculum.  These new opportunities are designed to provide real world experiences that help grow the next generation by preparing them for success in college and in their careers. Now in its third year, the America’s Farmers Grow Rural Education program, sponsored by the Monsanto Fund, is once again gearing up to help rural school districts by investing over $2.3 million to strengthen math and science education in rural communities.

Between now and April 6, 2014, farmers have the opportunity to nominate their local public school district to compete for a grant of either $10,000 or $25,000. Administrators from nominated school districts can then submit grant applications for either amount, through April 21, 2014 to enhance their math and/or science programs.

“We believe that growing the next generation begins with a strong foundation in math and science,” said Michelle Insco, Monsanto Fund program officer.  “This opportunity for success begins in the classroom.”

The America’s Farmers Grow Rural Education program is part of a broad commitment by the Monsanto Fund to partner with farmers to support rural communities.  America’s Farmers Grow Rural Education launched in 2012 after a successful pilot in Minnesota and Illinois. The program has since helped more than 400 school districts improve math and science education across 39 states.

In 2013, the following Nebraska school districts received a total of $130,000 to enhance math and science curriculums:
·         Amherst Public Schools, $10,000
·         Clarkson Public Schools, $10,000
·         Falls City Public Schools, $25,000
·         Gibbon Public Schools, $10,000
·         Mitchell Public Schools, $10,000
·         O’Neill Public Schools, $10,000
·         Perkins County Schools, $10,000
·         Plattsmouth Community Schools, $25,000
·         So Sioux City Community Schools, $10,000
·         Thayer Central Community Schools, $10,000

School districts that apply for a $10,000 grant compete against other school districts in the same USDA-appointed Crop Reporting District (CRD).  CRDs with five or fewer eligible school districts will compete against each other for a single $10,000 grant. School districts that apply for a $25,000 grant will compete against schools that are located in the same state or designated region. Winners will be announced in August 2014.

Monsanto Fund grants will be judged based on merit, need and community support. The America’s Farmers Grow Rural Education Advisory Council, a group of 30 farmer leaders from across the country, will select the winning grant applications.  Advisory Council members were selected based on their passion for agriculture and education, as well as experience in rural school districts.

In 2013, more than 73,000 farmers demonstrated their support for education by nominating 3,851 school districts, resulting in $2.3 million in grants to 181 recipients. This year, the number of eligible counties has expanded from 1,271 to 1,289.

For more information about the America’s Farmers Grow Rural Education program and to view the official rules, a list of eligible states, counties and CRDs, visit www.GrowRuralEducation.com.




Panel: U.S. Ag Research Spending Lags, But It Must Remain Global Leader

            Public investment in agricultural research in the United States is lagging behind other nations, but land-grant university scientists still have the intellectual heft to make the country a leader in the challenge of feeding a growing global population, a former secretary of agriculture said Tuesday.

            Dan Glickman, who served in President Clinton's cabinet, was part of a Heuermann Lectures panel discussing the topic "Regaining the U.S. Lead in Agricultural and Natural Resources Research and Education."

            In 1980, the U.S. was the world's leader in public funding of agriculture, but beginning in about 2000, China began dramatically increasing its investment and has surpassed the U.S., said another panelist, Catherine Woteki, U.S. Department of Agriculture undersecretary for research, education and economics. Brazil and India also have increased such spending at a time when U.S. spending turned stagnant and even decreased.

            "This is not an arms race," Glickman said. "We're glad other countries are spending" on agricultural research and education. But the U.S. must stake a place in the effort to feed a population expected to increase from 7 billion to 9 billion by mid-century.

            "We have the best scientists. We don't have to be doing all this work, but we have to be a leader," he added.

            Woteki shared a bit of good news: The farm bill still bogged down in Congress appears likely to reverse the last few years' decline in ag research spending.

            Glickman noted that the lengthy farm-bill debate, though, has done nothing to illuminate the true challenges ahead. Dominated by discussion of farm-program payments and the food-stamp program, the media coverage leaves people "questioning whether agriculture has its act together."

            "We hear very little about the future of agriculture, about the ability to feed the world in a sustainable way, very little about these huge challenges," Glickman said of the political debate.

            "You'll probably never get great leadership out of the Congress on the issue of agricultural research," said Glickman, a congressman from Kansas for 18 years. "It comes from universities, the private sector."

            Within those universities and even among some policy makers, though, this may be a pivotal "moment in history with respect to U.S. leadership and policy" on agriculture, said another panelist, Phil Pardey, professor in the University of Minnesota's Department of Applied Economics.

            Although politicians tend to look only three to five years ahead, many in the ag sector understand the importance of "building new systems in this moment that will outlive them," Pardey said.

            A key attempt to build those new systems recently outlined some recommendations. Among the proposals from the President's Council of Advisors on Science and Technology is a plan for six large, multidisciplinary "innovation institutes" that would bring together public-private partnerships to focus on emerging challenges to agriculture.

            Woteki was in Omaha earlier Tuesday for one in a series of listening sessions to get ideas for the institutes, which the presidential panel recommends funding with $25 million in federal dollars per institute per year.

            "We're early in our thinking," Woteki said, but the concept has potential to reframe investments and priorities to put the U.S. back in a leadership role.

            "We need a grand strategy," Glickman said. "The United States must be the leader. We are uniquely positioned to lead a global call for action, but we've got to put our money where our mouth is."

            Heuermann Lectures in IANR are made possible through a gift from B. Keith and Norma Heuermann of Phillips, long-time university supporters with a strong commitment to Nebraska's production agriculture, natural resources, rural areas and people.

            The lectures focus on providing and sustaining enough food, natural resources and renewable energy for the world's people, and on securing the sustainability of rural communities where the vital work of producing food and renewable energy occurs.  Lectures stream live at http://heuermannlectures.unl.edu and are archived at that site soon after the lecture.  They're also seen on NET2 World at a date following the lecture.



Advancing Water Quality and Soil Conservation Efforts, Protecting Property Taxpayers, and Infrastructure Funding Among Top 2014 Iowa Farm Bureau Legislative Priorities
Iowa Farm Bureau Federation (IFBF) members will continue to work to advance Iowa’s water quality and soil conservation efforts, protect property taxpayers, and improve Iowa’s road and bridge infrastructure in the 2014 legislative session.          

A strong push to continue to improve soil and water quality is one of several priorities identified by IFBF members.  “It’s very important to maintain the momentum we have already seen for these voluntary conservation efforts by Iowa farmers through the Iowa Nutrient Reduction Strategy,” said Craig Hill, IFBF president.  “The strong demand last fall for water quality and soil conservation funds which were allocated during the 2013 legislative session clearly shows that farmers are stepping up to reduce nutrient loss and improve the soil for generations to come.”          

In 2013 the Legislature allocated on-going and one-time money to implement the Iowa Nutrient Reduction Strategy, and the majority of that money has been allocated.  Iowa Farm Bureau will seek an additional $10 million in one-time funding to continue these new efforts in crop management and watershed projects.  In addition, Farm Bureau will advocate for one-time funds to help address the $18.5 million backlog of conservation cost-share projects to reduce soil loss, where demand has significantly outpaced cost-share funding, as well as one-time money to help close Iowa’s remaining ag drainage wells.  “Allocating one-time funding for these important conservation projects is an ideal use for the state’s ending fund balance,” Hill said.             

Ensuring that property taxpayers’ contributions to the mental health system remain limited and controlled will be another emphasis for Farm Bureau during the 2014 legislative session.  As a result of previous mental health reform legislation, the current funding formula for property taxes is set to expire, and will need to be addressed this session.          

Farm Bureau members will also advocate for increased funding for Iowa’s roads and bridges, many of which are deteriorating and in need of repair or rebuilding.  Studies have shown that an additional $215 million per year is needed to meet the critical needs of Iowa’s aging roads and bridges.  “Our delegates have strongly supported policy which says that any additional revenue for transportation infrastructure should be generated from the state’s fuel tax,” Hill said.  “Increasing the state fuel tax, which has not been increased since 1989, would ensure that the users of the roads, including out-of-state motorists, are paying directly for infrastructure repairs.”          

An increase in the user fee would also reduce pressure on Iowa’s property taxpayers.  In fiscal year 2013, rural property owners paid over $153 million in property taxes to their local roads and bridges.  Additionally, with no other alternatives to pay for the needed repairs, more and more local governments are turning to bonding as an alternative source of revenue, with this debt being financed by local property taxpayers.  “This is a disturbing trend that we have seen throughout the state, and it will only continue into the future until the fuel tax is increased to cover road and bridge funding needs,” Hill said.            

Farm Bureau will also push for a continued commitment to agricultural research that adds value to ag products, aids the environment, increases farm efficiency, and improves health and safety.  In order to accomplish that, Farm Bureau will work to increase state funding for the Iowa State University (ISU) Ag Experiment Station and other ISU research programs.



Sowbridge and PorkBridge Programs Begin Soon

The successful pork industry distance education programs SowBridge and PorkBridge are scheduled to begin in early February, so those who want to participate need to register very soon. Iowa State University animal science professor and extension swine specialist Ken Stalder said registrations are still being accepted.

“Although the registration deadline to ensure materials are received in time for the first session for each program has passed, people can still register by completing the form and submitting payment,” he said. “We will do our best to get materials to our subscribers in time for the initial sessions on Feb. 5 and 6, respectively.”

Stalder, who also is the Iowa contact for the programs, said the programs offer accurate and timely information on a variety of topics through a regular schedule. In addition, the registration fee has not increased for either program. Each registration provides access to one phone line per session and all the materials for all sessions. For operations with more than one location, lower fees for subsequent registrations from the same entity are available.

“Cost is $250 for SowBridge and $125 for PorkBridge,” he said. “Contact us at the Iowa Pork Industry Center for any questions on either program.”

More information on SowBridge, including a link to the program brochure, is available on the IPIC website. The website also has a section for PorkBridge including that brochure. Iowa residents who want more information on either program can call IPIC at 800-808-7675.

SowBridge and PorkBridge are sponsored by a group of 11 state universities – including Iowa State – from the major swine producing states.



IOWA GROCERY SHOPPERS MOST INTERESTED IN TASTE, PRICE WHEN THEY BUY MEAT, POULTRY AND DAIRY
When it comes to meat, poultry and dairy products, “price” and “taste” drive most purchasing decisions of Iowa grocery shoppers, according to new research from the Iowa Farm Bureau Food and Farm Index, conducted online by Harris Interactive® in November and December of 2013.  Nearly 8 in 10 Iowa grocery shoppers cited price (79% for meat/poultry; 80% for dairy) and taste (76% for meat/poultry; 77% for dairy) as among the most important factors to them when buying meat, poultry and dairy products.  That finding on price was consistent, even among higher income Iowan grocery shoppers (those who make $75,000 or more).

The next most important considerations for Iowa grocery shoppers are “food safety” (39% for meat/poultry; 40% for dairy) and “nutrition” (41% for meat/poultry; 37% for dairy).

The Iowa Farm Bureau Food & Farm Indexsm surveys Iowa residents between 20 and 60 years old who have primary or shared responsibility for household grocery shopping; 502 such respondents were interviewed for this wave of research. It is the first in a semi-annual survey of Iowans to study the factors driving their food purchases.

Iowa grocery shoppers read labels
While the survey points to the common sense food priorities of Iowa shoppers, it also shows they’re hungry for more information about how or where their food is grown or raised.  About two-thirds of Iowa grocery shoppers (68%) pay attention to such labels on their food.  Among those who do, the highest percentages say labels indicating that the food was raised in the U.S. (50%) give them the information they are seeking, followed by raised locally (43%), hormone free (36%) or antibiotic free (32%).      

 “This survey shows us there is an opportunity for farmers to share how they raise farm animals or use antibiotics to protect the animals’ health and that’s an important issue because here in Iowa, where we lead the nation in several types of meat production, there are too many Iowans who don’t understand the ‘big picture’ of antibiotic use on the farm,” said Dr. Scott Hurd, DVM, PhD and Associate Professor, Iowa State University College of Veterinary Medicine.

Hurd, who served as Deputy Undersecretary for Food Safety at the USDA in 2008, directing all federal meat and poultry inspection, says advances in feed, housing and veterinary medicine guide the care of all food chain animals and by law, there are strict withdrawal guidelines.  “That means no animals are on antibiotics when they go into the food chain, so there are zero antibiotics in meat.  Furthermore, Iowa farmers are also subject to standards of care on the farm which require regular supervision, ongoing research and certification programs to make sure animals raised in Iowa are kept safe, well-fed and pain-free,” he said.

Farmers agree the Iowa Farm Bureau Food and Farm Indexsm shows a need for conversations to continue with consumers. “This shows us that Iowans believe their food is safe, but they want information about their food, so this is an opportunity for all farmers to connect with them and clarify a few things.  Since many Iowa shoppers pay attention to labels that claim the food is ‘raised hormone free’, they need to know that all foods come from living organisms and all living organisms have hormones.  In fact, science has long documented (http://www.usmef.org/growth-hormones-in-cattle/) that meat or dairy products have a fraction of the amount of hormones that cabbage contains.  This is an opportunity for critical food safety dialogue,” said Craig Hill, Iowa livestock farmer and president of IFBF.

Farmers more trusted than doctors regarding food safety questions
The Iowa Farm Bureau Food and Farm Indexsm also showed that when it comes to the most trusted sources about food safety information, farmers (26%) ranked higher than dietitians/nutritionists (16%), medical professionals (11%), the government (7%), food companies (5%) or chefs/cooks (2%).  

Additionally, 50 percent of Iowa grocery shoppers ranked farmers in their top three – the highest percentage for this status – followed by dietitians/nutritionists (46%).



25x'25 Alliance Enters Second Decade with Strengthened Focus on Renewable Energy Goals

As the 25x'25 Alliance enters its second decade, the organization is restructuring its leadership team to further strengthen plans to devote more effort into defining and articulating the multiple benefits of a 25x'25 future, the co-chairmen of the new executive leadership committee said today.

Read Smith, a Washington state grain farmer and former president of the National Association of Conservation Districts, and Bart Ruth, a Nebraska corn and soybean farmer who is a former president of the American Soybean Association, said in a joint statement that the reconstituted leadership team will help the alliance launch a "fresh vision" campaign that will embrace an "all of the above energy approach while emphasizing the tremendous economic and quality-of-life improvements that renewable energy development has delivered to our nation, particularly in rural areas."

The 25x'25 Vision calls for America's farms, ranches and forestlands to produce the biomass, biofuels, wind energy, solar power, geothermal energy and hydropower sufficient to meet at least 25 percent of the nation's energy needs by the year 2025, all while providing an ample, affordable and safe supply of food, feed and fiber.

Other members of the new executive committee include A.G. Kawamura, a former secretary of the California Department of Food and Agriculture; Martin Lowery, executive vice president of external affairs for the National Rural Electric Cooperative Association; Allen Rider, former president of New Holland North America; Nathan Rudgers, senior vice-president and director of business development with Farm Credit East; Jerry Vap, a member of the Nebraska Public Service Commission; and Fred Yoder, an Ohio corn, soybean and wheat farmer, and a past president of the National Corn Growers Association.

Additional executive committee members coming from value chain partners who share the 25x'25 Vision and who support the Alliance's work will be named later this month.

Smith and Ruth said the Alliance was also creating a secondary leadership level - a Senior Advisors Board - comprised of committed leaders who can provide ongoing counsel and support to the Alliance.

Continuing to serve 25x'25 as senior advisors are former members of Congress Stephanie Herseth Sandlin, Charlie Stenholm and Tom Ewing, along with Barry Flinchbaugh, Bobby Moser and Bill Richards, among others.

Ernie Shea will continue as project coordinator.

In the 10 years since 25x'25 was founded, U.S. energy consumption coming from renewables has increased from 5.7 percent in 2004 to 9.3 percent in 2013, marking a steady growth of nearly all forms of renewable energy. The Federal Energy Regulatory Commission says nearly half of all new electrical generating capacity installed in the United States in 2012 came from renewable energy sources.

"While we have accomplished much over the first decade of our existence, the next decade will be much more challenging and our collective efforts will determine whether or not our shared vision is realized," Smith and Ruth said.

The co-chairmen said goals set by the Alliance for 2014 include a campaign to reframe the national agriculture energy conversation to focus on the benefits to rural America of 25x'25's renewable energy and adaptation strategies. Other Alliance efforts this year include facilitating the development of a national biofuel framework plan; protecting the federal Renewable Fuel Standard and state Renewable Energy Standards; ensuring that EPA biogenic carbon accounting rules allow for the full benefits of biomass energy; and developing and piloting business models and customer engagement programs to support rural electric cooperative distributed renewable energy programs.

"We believe that this restructuring and the goals we have set for this year optimize our support of renewable energy champions and beneficiaries who will mobilize to ensure continued progress in achieving the 25x'25 renewable energy goal," Smith and Ruth said.



Farm Bureau Delegates Set Public Policy Positions for 2014

Voting delegates to the American Farm Bureau Federation’s 95th annual meeting yesterday approved resolutions that will provide the organization with authority from its grassroots members to push Congress toward the goal line on unfinished issues like the farm bill and ag labor.

“Securing victories on those issues is critical to our competitiveness as individual farmers and ranchers, and to our nation’s success as a food producer,” said AFBF President Bob Stallman, who was re-elected to his eighth two-year term as the organization’s president. “Farm Bureau made progress on our priorities this past year, more so than most other organizations, and this year, our delegates have provided us direction to work with Congress to complete this agenda.”

On the farm labor front, delegates reaffirmed their strong support for meaningful ag labor reforms that ensure farmers and ranchers have access to workers when they are needed. Delegates also voted to support flexibility that would allow the employment of workers by more than one farmer.

“Farmers and ranchers need a reliable supply of labor,” Stallman said. “That is a simple truth. It’s about availability and flexibility – neither of which have been hallmarks of the system our farmers, ranchers and growers have operated under for many years. We must have a workable ag labor program.”

With congressional farm bill action nearing completion, delegates reaffirmed Farm Bureau’s policy, overwhelmingly determining that now is not the time to make changes.

“Congress is still haggling over dairy policy, but for the most part, they are very close to completing a five-year farm bill,” Stallman said. “It has been a long process, but substantial reforms have been made. Crop insurance has been strengthened so that farmers can play a role in determining the level of their safety net, and how much they are willing to invest for that coverage.”

Specifically on dairy-related issues, delegates reaffirmed policy supporting changes to the dairy safety net, including margin insurance programs.

On another livestock-related issue, delegates maintained their support for country of origin labeling and reiterated that it needs to be compliant with World Trade Organization rules. They also voted to support efforts to lengthen the term of grazing permits from 10 years to 20 years.

On other issues, delegates adopted new policy that supports the use of unmanned aircraft systems for commercial agricultural, forestry and other natural resource purposes. They also supported the requirement for drone users to gain the consent of the landowners, if operating below navigable airspace However, delegates opposed federal agencies’ use of drones for regulatory enforcement, litigation or natural resource inventory surveys.

Delegates approved new policy supporting the protection of proprietary data collected from farmers and maintaining that such data should remain their property. Delegates also voted to support efforts to educate farmers regarding the benefits and risks of collaborative data collection systems. They also approved policy stating that farmers should be compensated if companies market their propriety information, and that farmers should have the right to sell their proprietary data to another producer, such as in the case of a land sale. Delegates voted to oppose farmers’ data being held in a clearinghouse or database by any entity subject to the Freedom of Information Act.

Delegates also reaffirmed their support for the renewable fuels standard and approved a policy supporting renewable fuels tax incentives for the production of biodiesel and cellulosic ethanol and installation of blender pumps.

At the AFBF Annual Meeting, 357 voting delegates, representing every crop and livestock sector in the United States, deliberated on policies affecting farmers’ and ranchers’ productivity and profitability. The policies approved at the annual meeting will guide the nation’s largest general farm organization throughout 2014.



Weekly Ethanol Production for 1/10/2014

According to EIA data, ethanol production averaged 868,000 barrels per day (b/d)—or 36.46 million gallons daily. That is down 51,000 b/d from the week before. The four-week average for ethanol production stood at 907,000 b/d for an annualized rate of 13.90 billion gallons. It is likely that last week’s notable drop in production was related to the widespread winter storm that obstructed key transportation routes and complicated normal plant operations.

Stocks of ethanol stood at 16.1 million barrels. That is a 0.4% decrease from last week.

Imports of ethanol remained at zero b/d for the 15th week in a row.

Gasoline demand for the week averaged 336.9 million gallons daily, also a reflection of the winter storm’s impacts.

Expressed as a percentage of daily gasoline demand, daily ethanol production was 10.82%.

On the co-products side, ethanol producers were using 13.161 million bushels of corn to produce ethanol and 96,871 metric tons of livestock feed, 86,362 metric tons of which were distillers grains. The rest is comprised of corn gluten feed and corn gluten meal. Additionally, ethanol producers were providing 4.52 million pounds of corn oil daily.



New Study: Corn Ethanol Reduces GHG Emissions by 37-40% Compared to Fracking and Tar Sands

A comprehensive new study (with appendix) conducted by Life Cycle Associates found that the carbon footprint of corn ethanol continues to shrink, while the carbon impacts associated with crude oil production continue to worsen as more marginal sources are introduced to the fuel supply. According to the report, “As the average carbon intensity of petroleum is gradually increasing, the carbon intensity of corn ethanol is declining. Corn ethanol producers are motivated by economics to reduce the energy inputs and improve product yields.”

The study, commissioned by the Renewable Fuels Association (RFA), found that average corn ethanol reduced greenhouse gas (GHG) emissions by 32% compared to average petroleum in 2012. Importantly, this estimate includes prospective emissions from indirect land use change (ILUC) for corn ethanol. When compared to marginal petroleum sources like tight oil from fracking and oil sands, average corn ethanol reduces GHG emissions by 37-40%.

As more unconventional crude oil sources enter the U.S. oil supply, and as corn ethanol production processes become even more efficient, the carbon impacts of ethanol and crude oil will continue to diverge. By 2022, average corn ethanol reduces GHG emissions by 43-60% compared to petroleum, the study found.

“The majority of unconventional fuel sources emit significantly more GHG emissions than both biofuels and conventional fossil fuel sources,” according to the study. “The biggest future impacts on the U.S. oil slate are expected to come from oil sands and fracking production.” In the absence of biofuels, “…significant quantities of marginal oil would be fed into U.S. refineries, generating corresponding emissions penalties that would be further aggravated in the absence of renewable fuel alternatives.”

The study also reveals several fundamental flaws with the GHG analysis conducted by the Environmental Protection Agency (EPA) for the expanded Renewable Fuel Standard (RFS2) regulations. Notably, corn ethanol was already reducing GHG emissions by 21% compared to gasoline in 2005, according to the analysis. Yet, the EPA’s analysis for the RFS2 assumes corn ethanol GHG reductions won’t reach 21% until 2022. EPA’s analysis also implicitly assumes the carbon intensity of crude oil will be the same in 2022 as it was in 2005, a presumption that has already been disproven by the real-world increase in the carbon intensity of crude oil. “As unconventional sources of crude oil have grown in recent years, the carbon intensity of petroleum fuels has increased above the baseline levels initially identified in the Renewable Fuel Standard...” according to the authors, who call on EPA to address several shortcomings with its analysis.

Other key findings and recommendations from the study are highlighted in this three-page summary, along with additional information about Life Cycle Associates.

RFA President and CEO Bob Dinneen offered the following comments on the results of the new study: “When it comes to ethanol’s carbon footprint, biofuel critics and some regulatory agencies are unfortunately stuck in the past. We don’t need to wait until 2022 for corn ethanol to deliver on its promise to reduce GHG emissions. This study uses the latest data and modeling tools to show that corn ethanol has significantly reduced GHG emissions from the transportation sector since enactment of the original RFS in 2005. Further, the report highlights that ethanol’s GHG performance will continue to improve and diverge with crude oil sources that will only get dirtier as time goes on. When ethanol is appropriately compared to the unconventional petroleum sources it is replacing at the margin, the GHG benefits are even more obvious. We urge EPA officials to closely examine this new information and make good on their commitment to ensure the RFS regulations are based on the latest data and best available science.”



Major Breakthrough for E15 – MAPCO to Offer E15 in 2014

Today, convenience store operator MAPCO Express, Inc. (“MAPCO”), one of the largest company-operated retail chains in the United States, announced it will begin offering E15 to consumers. MAPCO has set a goal of offering E15 at all pumps at 100 stations.

Bob Dinneen, President and CEO of the Renewable Fuels Association, commented, “This is a major market breakthrough for E15. MAPCO is to be applauded for its unwavering commitment to bring cost-saving fuel choice to its consumers. MAPCO studied performance and demand for E15 and made a solid decision to put consumers first and foremost. MAPCO consumers will soon have a money-saving, renewable, octane-boosting choice at the pump. We believe other retailers will soon follow MAPCO’s lead.”

MAPCO operates 362 convenience stores in seven states under the MAPCO Express®, MAPCO Mart®, East Coast®, Discount Food Mart™, Fast Food and Fuel™, Delta Express®, and Favorite Markets® brand names, including Kentucky, North Carolina, Tennessee, Mississippi, Alabama, and Georgia. 



Texas Drought Conditions Seeing Signs of Improvement

Drought conditions continued to recede in Texas, according to the U.S. Drought Monitor and reports from Texas A&M AgriLife Extension Service personnel. According to the monitor, a large chunk of the state, comprised mostly of East Texas counties, had normal or better soil-moisture levels. About another 28 percent of the state was merely abnormally dry, which means though soil moisture was low, the areas were either not yet in drought or were recovering from drought.

These numbers represent a large improvement from last January, when about 71 percent of the state was in one stage of drought or another, from moderate to extreme. However, many parts of the state still did not show improvement.

The East Texas, Southeast, Coastal Bend and parts of the South regions reported good soil-moisture conditions, which benefited winter wheat, oats and winter pastures. But for much of the rest of the state, dry, cold, windy weather continued to dry out soils and challenge winter forage production, according to agent reports.

"Winter wheat benefited from previous week's rains," reported AgriLife Extension in Martin County AgriLife Extension. "Sorghum harvesting is still going, with about 85 percent harvested. Producers are gearing fields up for upcoming cotton season. Weather has been really warm the last couple weeks especially for this time of year in West Texas, with a few nights getting below freezing but by midday jumping up to 60?s."

In East Texas, moisture levels were good, but extremely cold temperatures set forage growth back, according to Aaron Low, AgriLife Extension agent for Cherokee County.

After a very dry December, the Coastal Bend region received some rain, which should generate new winter pasture growth, said Scott Willey, AgriLife Extension agent for Fayette County. However, many livestock ponds were still low and will continue to be so until a major rain event.

In the Panhandle, South Plains and Rolling Plains regions, dry conditions were still a threat to dryland winter wheat and rangeland forbs.