Friday August 15 Ag News

Nebraska Corn Board announces recently appointed board members and elected officers

Two new board members were appointed to the Nebraska Corn Board at the start of the 2014-15 fiscal year. Brandon Hunnicutt, farmer from Giltner, Nebraska was appointed to District 3, and John Greer, farmer from Edgar, Nebraska was appointed to District 2. Alan Tiemann, farmer from Seward, Nebraska, was reelected by the board to serve in the At-Large position.

Brandon Hunnicutt is a fourth generation farmer who farms with his dad and brother. They raise corn, soybeans, popcorn, and seed corn. Hunnicutt graduated from the University of Nebraska-Lincoln with a degree in Agribusiness. He has been very involved with the Hamilton County Corn Growers and with the Nebraska Corn Growers Association as Past President. He served as Past President and Secretary of the Nebraska Agriculture Technologies Association, Board member of the Hamilton County Farm Bureau, and is a member of the Nebraska Soybean Association and the Agriculture Builders of Nebraska.  On a national level, he is Past Chairman of the Grower Services Action Team for the National Corn Growers Association and currently sit on the Trade Policy and Biotech Action Team. He and his wife, Lisa, have seven children and live on the farmstead that has been in the family for over 100 years.

John Greer is the fourth generation to farm his family’s farm in northern Nuckolls County. Greer raises irrigated corn and soybeans and has a 90 head cow/calf operation. He graduated from the University of Nebraska-Lincoln in 1971 with a degree in Agricultural Education and a minor in Animal Science. He has formerly served on the Davenport Public School Board, South Central Cattlemen Board of Directors, Nebraska Cattlemen Board of Directors, and was also a 4-H leader.  His current leadership roles include serving as the president of the South Central Public Power Board of Directors, Edgar Rural Fire Board, Davenport United Methodist Church Board, and Trail Captain for the National Pony Express Association. He, and his wife, Lynn, are the parents of two married daughters who are also involved in production agriculture.

With the addition of two new board members, the Nebraska Corn Board met on August 14 and elected officers, during their meeting in Lincoln.
     - Tim Scheer, District 5 director from St. Paul, Nebraska, was reelected to remain chairman of the board.
     - David Merrell, District 7 director from St. Edward, Nebraska, was elected to serve as vice-chairman of the board. He formerly served as the secretary/treasurer.
     - Dennis Gengenbach, District 6 director from Smithfield, Nebraska, was elected to serve as secretary/treasurer of the board.
     - Alan Tiemann, at-large director from Seward, Nebraska, will continue to serve as the past-chairman of the board.

“In an unmatched time in agriculture, we welcome two new board members,” said Kelly Brunkhorst, executive director of the Nebraska Corn Board. “They, along with our officer team, will play a dynamic role in helping the Nebraska economy through its market development, research, promotion, education, and in supporting the mission and vision for Nebraska’s 23,000 corn producers that invest in the corn checkoff.”

Greer and Hunnicutt’s appointments concluded the service of Mark Jagels of Davenport, Nebraska (District 2) and Curt Friesen of Henderson, Nebraska (District 3).

“We absolutely want to thank Mark and Curt for their years of dedicated service on the Nebraska Corn Board,” added Brunkhorst.  “Through their passion for leadership to the corn, livestock, export and ethanol industries, they have made unprecedented history in the impact that the corn checkoff has had in Nebraska and around the globe.”



Livestock Disaster Assistance Info Meeting Aug. 20

On Aug. 20, the Pierce County Farm Service Agency will be holding an informational meeting open to the public on livestock disaster programs as authorized by the 2014 Farm Bill. The meeting will start at 3 p.m. at the Town & Country Insurance building meeting room.

Sign-up for the Livestock Forage Disaster Program (LFP) is underway at the Farm Service Agency. Pierce County livestock producers may be eligible for payments on pasture, small grain, and other grazed forages based upon the number of head of livestock and acres grazed in both 2012 and 2013.

Appointments are available now for producers who grazed livestock in 2012 and 2013. To speed up the signup process, producers are encouraged to provide the following PRIOR to their appointment:

1. Applicants will need to supply livestock numbers as of July 24, 2012 and May 1, 2013 for livestock intended for grazing in 2012 and 2013 respectively. For cattle, this shall be broken down by cows, bulls, and animals over 500 pounds.

FSA is not requesting livestock inventory documentation at the time of application. Producers shall maintain livestock inventory documentation (such as cash flows, tax records, vet records and etc.) for three years in case they are pulled for a spot-check of the livestock inventory.

2. Farm Numbers and/or legal descriptions of all grazed acres.

An accurate certification of grazed acres will need to be provided. Indicate grazed land owned. If grazed land is leased, form CCC-855 must be signed by all landowners. If provided to FSA, a copy of the written cash lease maybe used instead of the CCC-855. CCC-855 forms are available at any FSA office or by email request to shanna.waterman@ne.usda.gov.

3. Are the livestock owned on shares? Ex. 50/50 father/daughter.

4. Does anyone else graze their livestock in the same pasture?

Payments are processed throughout the signup period. Many Pierce County LFP applicants have already been paid. Contact Pierce County FSA at (402) 329-4996 ext. 2 to set up an appointment.



Dairy Visibility Increases at Nebraska State Fair

Thanks to a joint effort by farmer-funded groups in Nebraska, dairy farming and food are among the topics for a new display called Raising Nebraska at the Nebraska State Fair. The display is a centerpiece component in the new Nebraska building at the fair, which begins Aug. 22 in Grand Island.

Midwest Dairy Association, funded by dairy farm families in 10 states, is a sponsor of the display, which tells dairy’s farm-to-fork story with graphics and video. Dean Engelman of Classic Dairy at Jansen, Nebraska, talks about his farm in the video segment, describing the animal care and resource management that results in wholesome milk.

The milking parlor, which serves both as an important tool for exhibitors who bring milking cows to the show and an educational opportunity for fair-goers, is sponsored by Midwest Dairy as well. Cows that stay in what’s called the “Avenue of Breeds” are used for milking demonstrations throughout the fair. The Esau family from Beatrice manages the cows for the Avenue of Breeds, which are furnished by various dairies in Nebraska.

For those who wish to get a taste of hand milking a cow, a model cow called Annabelle resides near the milking parlor in the Cattle Barn, and provides a fun opportunity for children and families to simulate the experience. Dairy shows and contests also provide enjoyment for spectators and cow lovers. Dairy judging will take place the first weekend of the fair, starting Friday morning with the open class dairy cattle show.  On Saturday and Sunday the youth dairy judging and cattle show will take place in the Five Points Bank Arena.

On the fair’s Kids’ Days, Midwest Dairy will provide milk as part of a healthy snack presentation given on the hour between 9 a.m. and 2 p.m. in cooperation with the Nebraska Wheat Board, on the Raising Nebraska presentation stage.

The Nebraska State Fair runs through Sept. 1.



Rural Development Assists Nebraska Vo-Ag Center

USDA Rural Development announced a $1,255,000 loan to the Nebraska Vocational Agricultural Center in Aurora. The funds will help with needed improvements at the Center and to refinance debt.

"We are very excited to be working with the USDA on our upcoming project. The Leadership Center is an incredible facility and these updates will help us serve our community and guests even better. The Nebraska Vocational Agricultural Foundation Board of Directors and I would also like to thank all our partners working on this including the USDA, Pinnacle Bank and Cornerstone Bank," said Maile Ilac Boeder, Nebraska Vocational Agricultural Center.

Improvements to be made to the Center include replacement of the roof, remodeling of the kitchen and dining area, and the upgrading of the mechanical equipment and kitchen equipment. Also, the refinancing of current debt will occur. The USDA loan will be repaid over 40 years at a four percent interest rate.

"Communities need a place to gather that is pleasing to be in. This Center is in need of some updates to keep it functional for future generations and we are glad that USDA can assist," said Community Programs Specialist Janice Stopak, USDA Rural Development.

The Nebraska Vocational Agricultural Foundation was founded in 1968 after Irv Wedeking, Dr. Ted Ward Lodge and Norval McCaslin purchased the original property. The property was purchased for the Nebraska Future Farmers of America (FFA) leadership camps. The first camp was held in 1971 and students slept in tents.

Over the 46 year history, the property was developed and expanded in property, buildings and services. There is now more than 13,000 square feet of meeting space under one roof, a gymnasium, indoor pool, full service kitchen, fully stocked catch and release pond, sand volleyball pits and much more. There are 60 lodge rooms and three dorms that sleep up to 158 people.

Every year the Nebraska FFA hold their COLT Conference and NPOWER conferences as well as three Leadership Skills Contests and a number of FFA Chapter retreats at the Center. Also served are 4-H and University Extension throughout Nebraska. Other groups include Boys Town, Nebraska Commission for the Blind and Sight Impaired, Boys Hope Girls Hope, University of Nebraska Lincoln International Student Retreat, University of Nebraska Kearney-Multicultural Retreat, Hastings College Music Department, Nebraska Corn Growers, Nebraska Art Teachers Association, Aurora Cooperative and numerous other groups from around the state and country. The site is host to numerous church groups as well as families for reunions and many more. Nebraska Vocational Agriculture Center partners with Aurora Public Schools for special education swims and on Senior Success day.

In 2013, more than 45,000 people utilized The Leadership Center in a variety of ways.

The project was funded through the USDA Rural Development Community Facility Direct Loan program.



SW Iowa Renewable Energy Announces Third Quarter Results

Southwest Iowa Renewable Energy, LLC (SIRE) announced its unaudited financial results for the three and nine months ended June 30, 2014.

SIRE reported net income of $5.6 million or $421.05 per basic unit for the three months ended June 30, 2014, compared to a net income of $1.5 million or $114.24 per basic unit for the three months ended June 30, 2013. SIRE reported net income of $35.6 million or $2,701.99 per basic unit for the nine months ended June 30, 2014, compared to a net loss of $(9.6) million or $(731.11) per basic unit for the nine months ended June 30, 2013.

Modified EBITDA, which is defined as earnings before interest, income taxes, depreciation, amortization, unrealized hedging gains and losses and loss from debt extinguishment was $63.1 million for the nine months ended June 30, 2014, compared to $10.0 million for the nine months ended June 30, 2013.

SIRE had $3.5 million in cash and cash equivalents and $26.0 million available under revolving loan agreements, for total cash and available borrowings of $29.5 million at June 30, 2014. The cash flow from operating activities was $52.4 million compared to $4.6 million for the nine months ended June 30, 2014 and 2013, respectively.

In July, SIRE announced the completion of a $66.0 million Senior Credit Agreement with Farm Credit Services of America and CoBank, with the proceeds used to refinance senior bank debt. The Credit Agreement provides SIRE with a term loan of $30 million and a revolving term loan of $36 million. Interest rate on the Credit Agreement was reduced from 6.0% to LIBOR plus 3.35%.

SIRE also completed a $26.2 million Subordinated Debt offering, with the interest rate reduced from LIBOR plus 7.5% to LIBOR plus 6.25%. The proceeds of the Subordinated Debt were used to refinance the remaining balance of Subordinated Debt previously outstanding. Prior to completing this offering, SIRE also paid a total of $26.8 million to its subordinated lenders.

As part of amending and restating the Subordinated Debt agreements, SIRE was required to evaluate the change under very specific debt modification accounting guidance for an instrument with an embedded conversion feature. As a result, SIRE determined an "extinguishment" occurred, which required determination of the fair value of the related debt. SIRE determined that the Subordinated Debt fair value exceeded the face value by approximately $10.1 million due to the substantial premium contained in the conversion feature, requiring the Company to report a "loss from debt extinguishment". An equal offset to this "loss" was reflected as an increase to members' equity with the debt remaining at face value. Therefore, this transaction had no impact on cash, working capital, or equity.

SIRE considers the $10.1 million loss from debt extinguishment to be a one-time event, and does not anticipate re-valuing the debt in the future.

Brian Cahill, SIRE's president and CEO stated, "This third quarter of Fiscal 2014 was monumental for SIRE! Our profit was excellent, and as we reported earlier, we completed our bank debt refinancing, paid down over half of our subdebt, and renewed the remainder, all at good terms."

"During this third quarter, we continued to see some of the best margins in the history of the company, continuing the trend of the past few quarters. We were able to continue operating at full capacity nearly every day, capitalizing not only on our ability to manage our railcar fleet during the winter storms that caused many delays and slowdowns, but also on our dual-powering, as we utilized our steam line the majority of the second and third quarters, avoiding the higher prices and curtailments for natural gas that others in the industry experienced. We did have a weather problem in June, when heavy rain caused damage to our steam line, taking it out of service through the summer. Fortunately, gas prices have returned to a reasonable level, and has not affected our profitability"

"Our book value per share has now surpassed $6,591 per unit," continued Cahill, "with $2,702 per unit profit through these first three quarters."

During the third quarter of Fiscal 2014, SIRE sold 28.6 million gallons of ethanol, and has sold 89.3 million gallons during these first three quarters of Fiscal 2014. Cahill commented: "Transportation and the rail situation continue to be a challenge, for us as well as the ethanol industry. We continue to focus on running the plant at full capacity when possible, with a balance of optimizing the yield and profit."

SIRE is located on 275 acres in Council Bluffs, Iowa, operating a 125 million gallon-per-year ethanol plant. SIRE began producing ethanol in February 2009 and sells its ethanol, distillers grains, corn syrup, and corn oil in the continental United States, Mexico and the Pacific Rim.



EPA Announces Label Restrictions for Lannate
This week the EPA announced label changes to methomyl, a restricted-use, broad-spectrum carbamate insecticide used in field crops, alfalfa, and commercial vegetable production.  Methomyl is sold as Lannate®, a product of DuPont™.

The changes will restrict the number of sprays allowed per season on field corn, popcorn and seed corn, cancel use on barley, oat, and rye, and restrict use in wheat to Idaho, Oregon, and Washington.

For corn, language will be added to labels to change the timing of applications so that only two applications can occur prior to tassel push, at the 1-2 leaf stage, and applications will no longer be allowed on bare soil. Also, the number of applications for field corn, popcorn, and seed corn will be reduced 25% to 50%.

These changes are due to concerns about potential risks to drinking water from exposure to methomyl. The EPA expects to release the human health and ecological risk assessments for methomyl for public comment in early 2016, according to an Aug. 14 news release. "Additional mitigation measures may be identified as EPA continues its evaluation of this pesticide."

Labels are expected to reflect the new restrictions by the end of 2014.



Prevent Plant Acres Decline From 2013

Prevented planting acreage declined significantly from last year and is largely concentrated in North Dakota and Minnesota, according to Farm Services Agency's initial release of certified acreage data.

Farmers were prevented from planting 1.54 million acres of corn, down from 2013's total of 3.16 million acres.  On soybeans, 827,131 acres went unplanted, compared to 1.7 million acres last year.

The only state with more than 1 million prevented planting acres was North Dakota. North Dakota and Minnesota combined accounted for 53% of prevented corn and 62% of prevented soybeans.

FSA's initial data is estimated to be 3% incomplete. The agency will update acreage information monthly, but USDA will not incorporate the acreage figures until its October crop reports.



USMEF Hosts Congressional Delegation from Mexico

This week the U.S. Meat Export Federation (USMEF) hosted a congressional delegation from Mexico for a firsthand look at U.S. meat production. The three visiting legislators are members of the lower house of the Mexican Congress, where all three serve on the Livestock Committee – including the committee’s president, Salvador Barajas, who is from the state of Jalisco. Other Congressmen attending were Dario Badillo of Hidalgo and Raudel López of Aguascalientes.

A top official from Mexico’s Department of Agriculture, Livestock, Rural Development, Fisheries and Food (SAGARPA), Coordinator of Livestock Development Francisco Gurria, was also included in the delegation. USMEF staff members accompanying the group were Chad Russell, regional director for Mexico, Central America and the Dominican Republic, Dr. Nelson Huerta, director of technical services for USMEF-Mexico, and Cheyenne Dixon, manager of technical services in Denver.

“USMEF was pleased to have the opportunity to host such an influential group,” said Russell. “At both a legislative and regulatory level, these are people directly involved in shaping livestock policy in Mexico.”

Their first stop was the Aristocrat Angus ranching operation near Platteville, Colorado, where they learned about the production of purebred breeding stock as well as the management of a commercial cattle herd. At Colorado State University (CSU) in Fort Collins, the group met with CSU President Tony Frank and Provost Rick Miranda. They also toured the Center for Meat Safety and Quality and received an overview of the research conducted at CSU and how it supports the agricultural economy of Colorado and the United States.

At USMEF headquarters in Denver, the delegation received a briefing on the role and mission of USMEF and some examples of its market development activities in Mexico and other key markets. They also met with officials from the Colorado Office of Economic Development and International Trade.

Other key industry activities included a tour of the Cargill beef processing plant in Fort Morgan, Colorado, and the JBS Five Rivers Cattle Feeding operation near Kersey, Colorado.

“The delegation definitely received a thorough, farm-to-plate examination of U.S. meat production,” said Russell. “They were very complimentary of the information provided, and found it to be an extremely beneficial experience.”

A Tuesday evening reception was hosted by USMEF President and CEO Philip Seng, USMEF Chair-elect Leann Saunders and Birko CEO Mark Swanson, a member of the USMEF Executive Committee. Special guests included Colorado Commissioner of Agriculture John Salazar, Elie Smilovitz, consul for economic and political affairs with the Consulate-General of Mexico in Denver, Colorado Farm Bureau President Don Shawcroft and Lauren Dever, executive director of the Colorado Pork Producers Council.

“As our No. 1 volume market for both U.S. beef and pork, maintaining a positive trading relationship with Mexico is particularly important to the U.S. meat industry,” Seng said. “This is why it is so important for USMEF to be actively engaged with leaders in both the executive and legislative branches of the Mexican government. Hosting this delegation is exactly the type of outreach that will benefit agricultural interests on both sides of the border for many years to come.”


 
CRP Early Out Sign Up Underway
Signup for Conservation Reserve Program contract holders to take advantage of the early out provision in the 2014 Farm Bill started Aug. 6 and will run through Jan. 30, 2015. The early out option is available to certain CRP contract holders during FY 2015 provided the contracts have been in effect for at least five years. Only CRP contracts with effective dates of October 1, 2009 or earlier are eligible for termination under the early out provisions. Of the 42 conservation practices on CRP acres, only five are eligible to be terminated under the early out option. These include CP1 Establishment of Permanent Introduced Grasses and Legumes, CP2 Establishment of Permanent Native Grasses, CP3 Tree Planting, CP10 Gras Already Established and CP11 Trees already established. To learn more, click here.... http://www.fsa.usda.gov/Internet/FSA_Notice/crp_774.pdf. 



Demand Strong as Market Year End Approaches

China has proven to be a strong contender for U.S. sorghum through their purchasing patterns throughout the current marketing year, ending Aug. 31, 2014. The USDA Foreign Agricultural Service’s Aug. 14 report indicated China has committed to a total of 177 million bushels of U.S. grain sorghum for the current marketing year, representing 90 percent of U.S. sorghum exports. In combination with food aid, total exports for the year have reached 214 million bushels. Demand is reaching into the new marketing year beginning Sept. 1 with total commitments of 38.1 million bushels of which China represents 28.8 million bushels.