Friday August 1 Ag News

Johanns’ Opposes EPA’s Attempt to Gain Wage Garnishing Authority

U.S. Sen. Mike Johanns (R- Neb) this week wrote a letter to Environmental Protection Agency (EPA) Administrator Gina McCarthy opposing a proposed rule granting the agency the power to garnish the wages of citizens without a court order. A copy of the letter is available HERE.

“Given this Administration’s regulatory zeal—especially in ag circles, I find it troubling that a federal agency can have the authority to garnish wages for unpaid fines or penalties without a court order,” Johanns said. “If EPA has a legitimate reason to issue a fine, and the fine is past due, the agency should have no problem getting a judge’s blessing to collect it.”

Johanns is also crafting legislation requiring a court order before garnishing the wages of non-federal workers.

The 1996 Debt Collection Improvement Act (DCIA) gave federal agencies the authority to garnish up to 15 percent of a worker’s wages to pay debts owed to the federal government without a court order. Federal agencies seek this authority via regulations and set up hearing procedures before they may garnish wages, which is the process EPA is currently undertaking.



DON’T FORGET ABOUT PRUSSIC ACID
Bruce Anderson, UNL Extension Forage Specialist

We often think about nitrates with summer annual grasses.  It’s easy to forget about other potential toxins like prussic acid.

Prussic acid, also called cyanide or hydrocyanic acid, often is overlooked when nitrate poisoning becomes a danger.  Prussic acid is different from nitrates, but just as dangerous in plants under stress.

The danger of prussic acid poisoning is limited to just a few plants, most of them related to the sorghum family.  Sudangrass produces the least amount of prussic acid and can be managed quite easily to prevent problems.  Sorghum-sudan crosses are a bit more hazardous and forage sorghums, cane, grain sorghum, and shattercane can be very dangerous.  Other summer grasses like millets, teff, and corn, as well as small grains do not produce toxic levels of prussic acid.

Here is some other good news about prussic acid – it rarely is a problem in hay or silage.  That’s because as the plants dry or ferment much of the prussic acid disappears as a gas.  But when you graze these plants, please be cautious.

New shoots and tillers, and very young leaves, contain the highest poisoning potential.  This is bad news since your cattle are likely to prefer these plant parts when grazing.  To limit their ability to select just these dangerous plant parts, wait to graze until taller plants have enough older leaves to prevent animals from just picking their favorite parts.  That means around 18 inches for sudangrass and 24 inches for sorghum-sudan hybrids.  During drought I don’t even want to think about grazing green cane or milo.

Be sure to fill animals with hay, grain, or good pasture before first turning into these pastures.  And with a little care, your animals will be safe.



2013 NE FARM PRODUCTION EXPENDITURES 

Farm and Ranch Production Expenditures for Nebraska totaled $20.3 billion in 2013, down 5 percent from a year earlier, according to USDA’s National Agricultural Statistics Service.  Livestock expenses, the largest expenditure category, at $3.56 billion, decreased 23 percent from 2012.  Rent, the next largest total expense category at $2.68 billion, increased 9 percent from 2012.  Feed, the third largest expense category, at $2.15 billion, decreased 25 percent from 2012.

Livestock expenses accounted for 18 percent of Nebraska’s total production expenditures.  Feed accounted for 11, Rent 13, and Farm Services 9 percent.

The total expenditures per farm or ranch in Nebraska averaged $408,367 in 2013, down from $424,600, a decrease of 4 percent.  The Livestock expense category was the leading expenditure, at $71,774 per operation, more than 4 times the national average.  Feed expenditures, at $43,347 per operation, were nearly 2 times the national average.  The average Rent expenditure, at $53,831, was over 3 times the national average.  Farm Services expenditures per operation, at $37,298, were double the national average.

These results are based on data from Nebraska farmers and ranchers who participated in the Agricultural Resource Management Study conducted by USDA’s National Agricultural Statistics Service.  Producers were contacted in January through April to collect 2013 farm and ranch expenses.  This is the tenth year of state level information published for Nebraska from the Agricultural Resource Management Study.



Iowa Farm Production Expenditures

According  to  the  latest USDA National Agricultural Statistics Service  Farm  Production  Expenditures  Annual  Summary report, Iowa farm production expenditures totaled $29.8 billion in 2013. This is 2.9 percent above the 2012 total expenditures. Feed  expense,  which  rose  2.2  percent  to  $5.05 billion, represented  the  largest  single  production  expense  for  Iowa farmers  in  2013,  accounting  for  16.9 percent  of  the  total. Livestock and Poultry purchase expense was the second largest expense,  totaling  $4.53  billion  and  15.2  percent  of  the  total. This  is  up  13.5  percent  from  2012.   Rent  expense  rose 4.3 percent  to $4.11 billion, and accounted for 13.8 percent of the  total.    The  largest  percentage  increases  were  for Miscellaneous Capital expenses (up 20 percent), Livestock and Poultry purchases, and Fuels (up 10.8 percent). 



2013 United States Total Farm Production Expenditure Highlights

Farm Production Expenditures in the United States are estimated at $367.3 billion for 2013, up from $360.1 billion in 2012. The 2013 Total farm production expenditures are up 2.0 percent compared with 2012 Total farm production expenditures. Nearly all expenditure items increased from the previous year. The 2012 revised estimate is up from last year's estimate by $8.3 billion due to revised 2012 Census farm numbers.

The four largest expenditures at the United States level total $167.6 billion and account for 45.6 percent of Total expenditures in 2013. These include Feed, 17.0 percent, Farm services, 10.6 percent, Livestock, poultry and related expenses, 9.3 percent, and Labor, 8.7 percent.

In 2013, the United States Total farm expenditure average per farm is $175,270 compared with $171,309 in 2012, up 2.3 percent. On average, United States farm operations spent $29,779 on Feed, $18,612 on Farm services, $16,321 on Livestock, poultry and related expenses, and $15,271 on Labor. For 2012, United States farms spent an average of $28,781 on Feed, $19,552 on Farm services, $15,937 on Livestock, poultry and related expenses, and $15,128 on Labor.

Total Fuel expense is $16.4 billion. Diesel, the largest sub-component, is $10.9 billion, accounting for 66.5 percent. Diesel expenditures are up 4.8 percent from the previous year. Gasoline is $3.0 billion, down 3.2 percent. LP gas is $1.8 billion, up 25.7 percent. Other fuel is $740 million, up 5.7 percent.

The United States Economic Sales Class contributing most to the 2013 United States Total expenditures is the $1,000,000 - $4,999,999 class with expenses of $132.1 billion (36.0 percent of the United States total), up 4.1 percent from the 2012 level of $127.0 billion. The $5,000,000 and Over class follows it with $79.0 billion, up from $74.0 billion in 2012.

In 2013, Crop farms expenditures increased to $206.7 billion, up 0.9 percent, while Livestock farms expenditures increased to $160.6 billion, up 3.4 percent. The largest expenditures for Crop farms are Rent at $26.4 billion (12.8 percent of total), Fertilizer, lime and soil conditioners at $23.8 billion, (11.5 percent), and Farm services at $23.5 billion (11.4 percent). Combined crop inputs (chemicals, fertilizers, and seeds) are $56.1 billion, accounting for 27.1 percent of Crop farms total expenses. The largest expenditures for Livestock farms are Feed at $55.7 billion (34.7 percent), Livestock, poultry and related expenses, at $28.8 billion (17.9 percent), and Farm services at $15.5 billion (9.7 percent). Together, these line items account for 62.3 percent of Livestock farms Total expenses. The average Total expenditure for a Crop farm is $211,659 compared to $143,521 per Livestock farm.

The Midwest region contributes the most to United States Total expenditures with expenses of $118.5 billion (32.3 percent of total), up from $114.8 billion in 2012. The other regions, ranked by Total expenditures, are Plains at $87.6 billion (23.9 percent), West at $76.9 billion (21.0 percent), Atlantic at $45.5 billion (12.4 percent), and South at $38.8 billion (10.6 percent). The Midwest increased $3.7 billion from 2012, which is the largest regional increase in dollars.

The sum of Total expenditures for the 15 Estimate States is $238.5 billion in 2013 (64.9 percent of the United States Total expenditures) and $234.0 billion in 2012 (65.0 percent). California contributes most to the 2013 United States Total expenditures with expenses of $36.6 billion (10.0 percent). California expenditures are up 8.6 percent from the 2012 estimate of $33.7 billion. Iowa, the next leading state, has $29.8 billion in expenses (8.1 percent). Other states with more than $20 billion in Total Expenditures are Texas with $24.2 billion and Nebraska with $20.3 billion.



NEBRASKA FARM REAL ESTATE VALUE AND LAND RENT

Nebraska’s farm real estate value, a measurement of the value of  all  land  and  buildings  on  farms,  increased  from  2013,  according  to  USDA’s  National Agricultural Statistics Service.  Farm real estate value for 2014 averaged $3,120 per acre.  This is up $320 per acre or 11 percent higher than last year. 

Cropland value  increased 7 percent  from  last year  to $5,180 per acre.   Dryland cropland value averaged  $4,000  per  acre,  up  $270  from  last  year.    Irrigated  cropland  value  averaged  $7,100 per acre, up $400 from a year ago.  Pastureland, at $900 per acre, increased $257 from a year ago.

Cash rent paid to landlords in 2014 for cropland increased from last year.  Irrigated cropland rent averaged $262 per acre, an  increase of $2 from  last year. Dryland cropland  rent averaged $149 per  acre,  up  $2  from  a  year  earlier.    Pasture  rented  for  cash,  which  averaged  $20.50 per acre, is up $0.50 from the previous year. 

County  level  averages  of  2014  cash  rents  paid  to  landlords will  be  released  on  September  5  and  will  be  available  through  NASS  Quick  Stats.    Quick  Stats  is  located  at http://quickstats.nass.usda.gov/.



Iowa Land Values

Iowa’s farm real estate value, a measurement of the value of all land and buildings on farms, averaged $8,500  per  acre  in  2014,  according  to USDA’s National Agricultural  Statistics  Service.    This  is  up $800 per acre or 10 percent higher than last year’s level.  Cropland value increased 9 percent from last year to $8,750 per acre.   Pastureland, at $3,400 per acre, increased 6 percent from a year ago. 

Cropland cash rent paid to Iowa landlords in 2014 averaged $260.00 per acre.   Non  irrigated  cropland  rent  averaged $260.00 per acre, up $5.00  from a year earlier.    Irrigated cropland rent averaged $255.00 per acre, an increase of $10.00 from last year. Pasture rented for cash, which averaged $50.00 per acre, is up $1.00 from the previous year. 



U.S. Agricultural Land Values Highlights

The United States farm real estate value, a measurement of the value of all land and buildings on farms, averaged $2,950 per acre for 2014, up 8.1 percent from 2013 values. Regional changes in the average value of farm real estate ranged from a 16.3 percent increase in the Northern Plains region to 1.1 percent increase in the Southeast region. The highest farm real estate values were in the Corn Belt region at $6,370 per acre. The Mountain region had the lowest farm real estate value at $1,070 per acre.

The United States cropland value increased by $290 per acre (7.6 percent) to $4,100 per acre from the previous year. In the Northern Plains region, the average cropland value increased 13.6 from the previous year. However, in the Mountain region, cropland values decreased by 5.1 percent.

The United States pasture value increased to $1,300 per acre, or 11.1 percent above 2013. The Southeast region had the smallest percentage increase in pasture value, 0.5 percent above 2013. The Northern Plains had the highest increase at 26.5 percent.



Grand Opening Set for New Flex Fuel Pump in Spalding

A grand opening at a new flex fuel pump at Country Partners Cooperative in Spalding on West Highway 91 is scheduled for Tuesday, August 5.

This flex fuel pump grand opening in Spalding on Tuesday, August 5 will be held from 1:00 pm to 4:00 pm.  Flex fuel vehicle owners can save 20 cents per gallon on E20, E30, and E85.

“If you don’t know if you drive a flex fuel vehicle, come visit us during the grand opening,” said Kim Clark, director of biofuels development with the Nebraska Corn Board.  In addition to savings at the pump, there will also be refreshments, giveaways, and drawings.

This E85/flex fuel pump is one of approximately 80 in Nebraska to offer a variety of renewable ethanol fuel blends.  This station will offer E10 – a blend of 10% ethanol and 90% gasoline, E20 – a blend of 20% ethanol and 80% gasoline, E30 – a blend of 30% ethanol and 70% gasoline, and E85 – a blend of 85% ethanol and 15% gasoline.   Fuels blended with 20 percent ethanol or greater are for flex fuel vehicles only.  To find a list of retailers that offer E85 and other mid-level ethanol blends visit the Nebraska Ethanol Board website at www.ne-ethanol.org or check the Nebraska Corn Board website at www.nebraskacorn.org.

One in ten Nebraska motorists currently own a flex fuel vehicle which can run on any blend of ethanol and gasoline, up to E85.  To confirm if a vehicle is flex fuel, drivers can check their owner’s manual, their gas cap, look for the flex fuel emblem on their vehicle or visit the website http://www.ne-ethanol.org/ffv

“While gas prices keep increasing, flex fuel vehicle owners can enjoy a greater savings at the pump when using ethanol fuel blends,” said Clark.  “When the price spread between E85 and regular gasoline hits a certain point, flex fuel vehicle owners can save quite a bit of money as well as improving Nebraska’s economy.”

“Consumer choice and ethanol fuel availability are a high priority with today’s gas prices,” said Todd Sneller, Nebraska Ethanol Board’s Administrator.  “When flex fuel drivers fill up on E85, they’re creating jobs, making our country more energy independent and going easier on the environment.”

This blender pump was paid for in part by a grant on behalf of Nebraska’s 23,000 corn producers through their checkoff program as administered by the Nebraska Corn Board.  For more information, visit www.nebraskacorn.org.



UFC to Merge with Heartland Co-op

The Board of Directors and management of United Western Coop (UWC) are pleased to  announce that they have completed a merger with Heartland Co-op, West Des Moines, IA, effective September 1, 2014.

The terms of the merger provide the member-owners of UWC an influx of capital for new infrastructure, rolling stock and customer service support.  The employees of UWC will become employees of Heartland Co-op.

Milo Ruffcorn will represent a new district, District K, on the Heartland Co-op Board of Directors.  Trent Sprecker has been named Regional Operations Manager.  Chris Russman will serve as the Agronomy Sales Manager for this region.

Tom Hauschel, CEO for Heartland Co-op will continue as CEO for the new organization which will be headquartered in West Des Moines, IA.

Hearland Co-op (www.heartlandcoop.com) has corporate offices located in West Des Moines, Iowa and consists of a total of 71 locations in Iowa.  The organization serves more than 5,300 members with operations in grain handling and marketing, fertilizer and application, agriculture chemicals and application, livestock feed and porcessing, agriculture energy products and propane.



Iowa Corn Announces Director Election Results

New farmer leaders for the Iowa Corn Growers Association (ICGA) and the Iowa Corn Promotion Board (ICPB) were elected. The newly elected directors, president, vice president and chair will officially take their seats on September 1, 2014. ICGA directors will bring grassroots policy issues forward and directors for the ICPB will work on market development, education and research.  Both organizations will continue to create opportunities for long-term Iowa corn grower profitability. 

*Re-elected directors.
**Newly elected directors.   

Iowa Corn Growers Association
President – Jerry Mohr, Scott County
Vice President – Bob Hemesath, Winneshiek County
Chair – Roger Zylstra, Jasper County
District 1 – Dean Meyer, Lyon County
District 2 – Gary Woodley, Wright County
District 3 – Mark Recker, Fayette County**
District 4 – Curt Mether, Harrison County*
District 5 – Dennis Friest, Hardin County
District 6 – Jim Greif, Linn County
District 7 – Carl Jardon, Fremont County
District 8 – Kyle Phillips, Marion County
District 9 – Kurt Hora, Washington County*
At-Large – Pam Johnson, Floyd County
At-Large – Dean Taylor, Jasper County
At-Large – Kevin Ross, Pottawattamie County
At-Large – Bruce Rohwer, O’Brien County

Iowa Corn Promotion Board
President – Chris Edgington, Mitchell County
Vice President – Mark Heckman, Muscatine County
Chair – Bob Bowman, Clinton County
District 1 – Lowell Appleton, O’Brien County*
District 2 – Chris Weydert, Kossuth County
District 3 – Greg Alber, Buchanan County**
District 4 – Larry Klever, Audubon County
District 5 – Roscoe Eggers, Marshall County
District 6 – Pete Brecht, Linn County**
District 7 – Duane Aistrope, Fremont/Page County
District 8 – Donald Hunerdosse, Warren County
District 9 – Wayne Humphreys, Louisa County
At Large – Deb Keller, Wright County
At-Large – Kevin Rempp, Poweshiek County

Iowa corn farmers also serve on the governing board for the National Corn Growers Association (NCGA). The NCGA directors include:
Bob Bowman, Clinton County
Don Elsbernd, Allamakee County
Pam Johnson, Floyd County
Kevin Ross, Pottawattamie County

U.S. Grains Council members recently voted to elect a new slate of board of directors, including:
Dick Gallagher, Washington County
Craig Floss, Chief Executive Officer at Iowa Corn

Gallagher was elected as the Corn Sector director and Floss as the State Checkoff Sector director. Julius Schaaf from Fremont County will become the past chairman. Deb Keller from Wright County also serves as an At-Large Director.



“Perfect Storm” Points to Rosy Picture for Cattle Industry, According to CattleFax Analyst

The cattle industry is transitioning from the liquidation phase to the expansion phase in terms of cattle numbers, according to Kevin Good, senior market analyst for CattleFax.  When combined with a very robust domestic and global demand for beef, it helps point to a rosy picture for the industry. Good made the remarks during a general session of the 2014 Cattle Industry Summer Conferences in Denver August 1. The conference will run through Aug 2. 

“It’s one for the ages,” Good said, referring to the cattle market. “It’s been a tremendous change from a year ago.”

Good said the industry is accelerating the rate of expansion, and “it’s a great opportunity to take advantage of the trend.” However, while the fundamentals are “friendly,” he said, “the market will have a correction.” And that correction could be soon. “Something needs to give,” he said. “You have to be prepared for that ceiling,” he told the hundreds of cattle producers in attendance.

Good said a “perfect storm” was in place for the industry in terms of profitability. There’s a tighter animal supply in general, with the PED Virus in the pork industry and hatchability and genetic issues in the poultry industry keeping pork and chicken supplies in check. With all animal protein supplies stable and prices increasing, beef is not that far out of line, he said.

Good said calves in 2014 are averaging $2.40 cwt., while feeder cattle are $2 and fed cattle $1.50. He said CattleFax expects prices should be stronger again on average in 2015, but larger supplies of beef by 2016 and larger total meat supplies will limit prices by then.

Lowering corn prices are giving the industry some relief. They are the lowest since 2010, and are expected to average in the $4 per bushel range, and possibly in the upper $3s, for the year. Production in 2014 is expected to be in the 14 billion bushel range, he said.

Range conditions are the third best they have been in the past 20 years, Good said. El Nino has been moderately strong, and is also providing relief to much of the country devastated by drought. However, he said the industry is still in the midst of a 20 year drought, so producers should still be cautious about conditions for 2015, 16 and 17.

Exports are increasing, and will continue to be a key component of producer profitability, according to Good. The China market (including Taiwan and Hong Kong) has become the top importer of beef in the world, and will continue to be a critical export market for beef producing countries in the future. Good said about 17-18 percent of a beef animal’s value is exported in beef, variety meats and hides, and producers should recognize the importance of this income source.

“We are living in extraordinary times,” Good said. “And prices are going to be continually strong over the next couple of years.” Still, he urged producers in the audience to exercise caution. “It’s easy to be optimistic today,” he said. “But markets don’t go up forever.”

General Session II led off day two of the Summer Conference, which includes meetings of the National Cattlemen’s Beef Association, Cattlemen’s Beef Board, American National CattleWomen and National Cattlemen’s Foundation. Among the purposes of the yearly conference is to create a framework for checkoff and policy efforts on behalf of U.S. cattle producers for the 2015 fiscal year, which for NCBA and the Cattlemen’s Beef Board begins Oct. 1.

Joint Committees and Subcommittees continue meeting Friday to develop proposals for 2015 checkoff-funded research, education and promotion programs. Also on Friday NCBA policy committees will meet to determine priorities and discuss strategies for 2015. The NCBA Board will hold a session on Saturday, as will members of the Cattlemen’s Beef Board.



Did You Know...  ...Beef Checkoff Tidbits

Demand for beef remains strong despite recession and tight supply?
Consumer demand for beef advanced 2 percent in 2013, according to ag economist Glynn Tonsor of Kansas State University. Consumers continue to be willing to pay more for beef, even as beef prices set new highs. In June 2014, they said they would pay $7.52 per pound for steak, up 18.4 percent from May 2014, according to the Oklahoma State University’s monthly Food Demand Survey. And, beef finished first in foodservice from 2009 to 2013, making more money in restaurants than any other protein and racking up the largest pound increase – up 178 million pounds – of any protein. Beef represented 32 percent of the total protein market in foodservice with sales of 8 billion pounds in the last year alone!

Your beef checkoff has helped more than 5,000 cattlemen earn their MBAs? 
Troy and Stacy Hadrick of South Dakota say, “Thanks to our checkoff-funded Masters of Beef Advocacy (MBA) program, we have the knowledge and confidence to reach out to consumers with our ranch story, and have information and facts to back it up. So, we can connect with consumers by sharing the latest news and research about beef as well as what we do day-to-day on our ranch.” That’s from . And while you and the Hadricks are managing your operations, your checkoff is making it easier for you to share your own beef story with consumers, too.



USDA Announces Commodity Credit Corporation Lending Rates for August 2014

The U.S. Department of Agriculture's Commodity Credit Corporation (CCC) today announced interest rates for August 2014. The CCC borrowing rate-based charge for August is 0.125 percent, unchanged from 0.125 percent in July.

The interest rate for crop year commodity loans less than one year disbursed during August is 1.125 percent, unchanged from 1.125 percent in July.

Interest rates for Farm Storage Facility Loans approved for August are as follows, 2.125 percent with seven-year loan terms, unchanged from 2.125 percent in July; 2.625 percent with 10-year loan terms, unchanged from 2.625 percent in July and; 2.750 percent with 12-year loan terms, unchanged from 2.750 percent in July.



Vilsack Joins World Leaders For 1st U.S. – Africa Leaders Summit

On Aug. 4, USDA Secretary Tom Vilsack will join President Obama, Members of Congress and other U.S. Government officials to welcome African heads of state and government leaders for the first-ever Africa Leaders Summit.  This historic summit, the first of its kind, will bring leaders from across the African continent to the nation's capital and further strengthen U.S. ties with one of the world's most dynamic and fast-growing regions.  The theme of the summit, which will run from Aug. 4 to Aug.6, is “Investing in the Next Generation.”

Over the course of the three day conference, Secretary Vilsack will attend several high-level events and meetings to discuss ways of improving agricultural systems and build better trade capacity in Africa.  On Aug. 4, he will speak on a panel titled “The Power of Partnerships” at the National Academy of Sciences where he will highlight U.S.–Africa cooperation to address resilience and food security in a changing climate.  He will also address the urgency of developing climate-smart agriculture, and how accurate, transparent data systems are instrumental to agricultural productivity.  Later that evening, the Secretary will participate in a dinner roundtable with several African Heads of State, to discuss issues affecting agriculture and food security in Africa.  On Aug. 5, he will attend the U.S. – Africa Business Forum to stress the importance of trade, both regional and global, to economic development.

Building on the progress made since President Obama’s trip to Africa last summer, the Summit will advance the focus on trade and investment in Africa, and highlight America’s commitment to Africa’s security, its democratic development, and elevate the ideas of young people.  At the same time, it will highlight the depth and breadth of the United States’ commitment to the African continent, advance our shared priorities and enable discussion of concrete ideas to deepen the partnership.  At its core, this Summit is about fostering stronger ties between the United States and Africa.

USDA collaborates with its partners in Africa to help strengthen connections between the U.S. and African agriculture sectors and to work towards common goals.  USDA implements programs and activities across the continent in a wide range of areas, including food security, trade capacity, investment, climate-smart agriculture, school attendance and literacy, and open data systems.



When China Spurns GMO Corn Imports, American Farmers Lose Billions
  (story from npr.org - "The Salt" blog)

For a while there, China was the American farmer's best friend. The world's most populous nation had so many pigs and chickens to feed, it became one of the of U.S. corn and soybeans almost overnight.

China also developed a big appetite for another corn-derived animal feed called "dried distillers grains with solubles," or , a byproduct of ethanol production. China's appetites for the stuff drove up global grain prices and filled Midwestern pockets with cash.

This year, though, the lovely relationship has gone sour, all because of biotechnology.

A couple of years ago, American farmers began planting a of genetically engineered corn invented by the seed company . This GMO contains a new version of a gene that protects the corn plant from certain insects. Problem is, this new gene isn't yet approved in China, and Chinese officials didn't appreciate it when traces of the new, as-yet-unapproved GMOs started showing up in boatloads of American grain.

The crackdown began in November 2013. China began rejecting shiploads of corn when officials detected traces of the new gene. By February of this year, U.S. exports of corn to China had practically ceased.
Empty shelves where eggs should be at a Whole Foods Market in Washington, D.C. The store blames increased demand for organic eggs.
David Ng (right) and Amanda Furrow, Customs and Border Protection agricultural specialists, inspect wheat for insects and alien seeds at a port in Baltimore, Md.

At the time, some American grain exporters said that there was little to worry about. The Chinese move, they said, probably was intended to slow down imports temporarily in order to make sure that China's farmers got a decent price for their own corn harvest. As evidence, they pointed to the fact that China continued to accept imports of DDGS, which also contain traces of the unapproved gene. The U.S. sent $1.6 billion worth of DDGS to China last year.

Well, last week, China expanded the ban to DDGS, shocking many traders. The price of DDGS plunged.

According to the , the Chinese ban on corn and corn products may end up costing American farmers, ethanol producers and traders a total of about $3 billion.

, director of Economics for the NGFA, who came up with that estimate, says the ban actually is hurting the Chinese, too. "They replaced [the U.S. corn] with more expensive grains," he says, such as barley from Australia. But one group of American farmers is benefiting: China is importing lots more .

In an interesting twist, American farm groups seem unsure whom to blame. Some are angry at China. Others point their finger at Syngenta.

A few days ago, the wrote a to Secretary of Agriculture Tom Vilsack, urging his "immediate, direct, and personal intervention" with Chinese officials "to halt this current regulatory sabotage of the DDGS trade with China."

The NGFA and the , on the other hand, have on Syngenta to stop selling the offending corn varieties until those varieties can be sold in major export markets.

"They're being a bad actor here," says Max Fisher of NGFA, referring to Syngenta. "They're making $40 million" selling the new corn varieties, "but it's costing U.S. farmers $1 billion."

Syngenta, for its part, any blame for the debacle. "We want to get technology into the hands of farmers as soon as possible," said the company's CEO, David Morgan, in a released on Syngenta's website. "We can't expect growers to wait indefinitely for access to technologies, based on what foreign governments decide to do." According to Morgan, China has failed to make a timely decision on the new gene, which goes by the name MIR 162.

Even if China approved MIR 162, however, the ban might remain. That's because Syngenta began selling yet another new new type of GMO corn this year, which also is not yet approved in China.

Syngenta has asked farmers to take that corn to specific grain processors, who will keep it from getting into export shipments. But Fisher thinks the new gene is likely to show up in exports. "Farmers are going to be farmers," he says, and sell their grain through the usual channels.



Response:  The Truth about the Trade Disruption
Martin Barbre, National Corn Growers Association President

Sometimes, it is necessary to respond to inaccurate stories in the media. I submitted the following response to NPR's The Salt Blog today in an attempt to correct misinformation in the recent post "When China Spurns GMO Corn, American Farmers Lose Billions":

We would like to express serious concern over your recent story "When China Spurns GMO Corn Imports, American Farmers Lose Billions." In its portrayal of the current situation involving corn exports to China, the piece misrepresented biotechnology, and Syngenta in particular, as the problem in this situation. This is clearly not the case.

For many years, when China had a need for U.S. corn imports, it did not take issue with biotechnology. While asynchronous and thus inherently problematic, its regulatory approvals of new traits came on a steady and somewhat predictable basis. Now, China has, without credible explanation, chosen to withhold biotech approvals for unspecified time periods as a means by which it can manipulate the market. In refusing to comply with even its own regulatory guidelines, China has shown a clear desire to disrupt trade to its own economic advantage with little regard for the international impacts of its actions. Recent statements that China will halt DDG imports and alfalfa imports over biotech concerns further support this conclusion.

Secondly, we take offense with the characterization of farmers. Farmers will be farmers; they will act as good stewards. The growers who planted Duracade this spring have been made well aware of their responsibilities and have signed agreements to ensure international trade issues are minimized. The National Corn Growers Association, along with others, has worked throughout this situation to keep farmers informed about the potential impacts on both market and technology access through campaigns such as that promoting the Know Before You Grow website.

Maybe things have changed elsewhere but on America's family farms people still honor their responsibilities. The implication otherwise does a disservice to the hard working men and women who do their best to grow food for our country.



USDA Sending Acreage History and Yield Reports to Help Producers Prepare for New Farm Bill Programs

U.S. Department of Agriculture (USDA) Farm Service Agency (FSA) Administrator Juan M. Garcia announced today that farmers should start receiving notices updating them on their current base acres, yields and 2009-2012 planting history. The written updates are an important part of preparing agricultural producers for the new safety net programs established by the 2014 Farm Bill.

“We’re sending these reports to make sure that farmers and ranchers have key information as they make critical decisions about programs that impact their livelihood,” said Garcia. “It’s important that producers take a few minutes to cross check the information they receive with their own farm records. If the information is correct, no further action is needed at this time. But if our letter is incomplete or incorrect, producers need to contact their local FSA county office as soon as possible.”

Verifying the accuracy of data on a farm’s acreage history is an important step for producers enrolling in the upcoming Agriculture Risk Coverage (ARC) program and the Price Loss Coverage (PLC) program. Later this summer, farmers and ranchers will have an opportunity to update their crop yield information and reallocate base acres.

“We’re working hard to prepare and educate farmers on the new programs created by the 2014 Farm Bill,” added Garcia. “I encourage producers to bring their USDA notice to any scheduled appointments with the local FSA county office. This will help ensure they have the information they need with them to discuss the available program options.”

By mid-winter all producers on a farm will be required to make a one-time, unanimous and irrevocable election between price protection and county revenue protection or individual revenue protection for 2014-2018 crop years. Producers can expect to sign contracts for ARC or PLC for the 2014 and 2015 crop years in early 2015.

Covered commodities include barley, canola, large and small chickpeas, corn, crambe, flaxseed, grain sorghum, lentils, mustard seed, oats, peanuts, dry peas, rapeseed, long grain rice, medium grain rice (includes short grain rice and temperate japonica rice), safflower seed, sesame, soybeans, sunflower seed, and wheat. Upland cotton is no longer a covered commodity.

Visit www.fsa.usda.gov or the local FSA office for information about FSA and the 2014 Farm Bill programs.



Mosaic Co. Releases Mixed Earnings Report
The Mosaic Company has reported second quarter 2014 net earnings of $248 million, up from $218 million in the first quarter of 2014 and compared to $430 million a year ago. Earnings per diluted share were $0.64 in the quarter compared to $1.01 last year. Notable items negatively impacted earnings by $45 million, or $0.06 per share. Mosaic's net sales in the second quarter of 2014 were $2.4 billion, down from $2.6 billion last year. Operating earnings during the quarter were $403 million, down from $526 million a year ago, as higher phosphate volumes were more than offset by significantly lower realized potash prices.

"Mosaic's business momentum accelerated from the first quarter to the second quarter," said Larry Stranghoener, Interim Chief Executive Officer. "Very strong global demand for phosphates pushed prices higher, while potash demand exceeded even our high expectations.

The company also announced that Jim Prokopanko will return from a previously announced medical leave and resume his duties as President and Chief Executive Officer on August 4. Stranghoener, who has announced his intention to retire at the end of 2014, will serve as Executive Vice President-Strategy and Business Development.

Cash flow provided by operating activities in the second quarter of 2014 was $796 million compared to $982 million in the prior year. Second quarter 2014 cash flows reflect strong sales volumes and declining working capital levels. Capital expenditures totaled $214 million in the quarter. Net cash returned to shareholders was $550 million and cash used in other investing activities was $146 million, resulting in total cash and cash equivalents of $2.4 billion and long-term debt of $3.0 billion as of June 30, 2014.



AGCO Reports Lower Quarterly Earnings

AGCO reported net sales of approximately $2.8 billion for the second quarter of 2014, a decrease of about 9.8% compared to net sales of approximately $3.0 billion for the second quarter of 2013. Net income for the second quarter of 2014 was $1.77 per share. This result compares to net income of $2.15 per share for the second quarter of 2013. Excluding favorable currency translation impacts of approximately 0.3%, net sales in the second quarter of 2014 decreased approximately 10.1% compared to the second quarter of 2013.

"In the second quarter, AGCO faced more challenging market conditions which resulted in a sales decline of about 10%," stated Martin Richenhagen, AGCO's Chairman, President and Chief Executive Officer. "Falling commodity prices negatively impacted farmer sentiment, and demand for agricultural equipment softened across end markets in North America and Europe while remaining weak in South America. Despite the difficult operating environment, our increased emphasis on new products with advanced technologies has been well received by our customers, and our retail market performance continues to be positive."

Net sales for the first six months of 2014 were approximately $5.1 billion, a decrease of approximately 6.7% compared to the same period in 2013. Excluding the unfavorable impact of currency translation of approximately 0.7%, net sales for the first six months of 2014 decreased approximately 6.0% compared to the same period in 2013.

For the first six months of 2014, net income was $2.79 per share. This result compares to net income of $3.34 per share for the first six months of 2013.