Monday August 18 Ag News

NEBRASKA SOYBEAN BOARD ELECTION RESULTS

The Nebraska Soybean Board held an election in July for the Director Seat in District 7.   Nebraska soybean farmers in that district voted with the following results:

District 7 - Counties consisting of Adams, Buffalo, Clay, Franklin, Hall, Kearney, Nuckolls  and Webster.
     Ron Pavelka – Glenvil, NE – Adams County – 161 - Elected
     Keith Keller – Harvard, NE – Clay County - 87
     Bill Miller – Upland, NE – Franklin County - 116
          The re-elected Director, Ron Pavelka, will begin his second term on the Board.

Daryl Obermeyer, a soybean farmer from Brownville, NE – Nemaha County – ran unopposed; therefore he becomes the District 5 director.  Obermeyer will represent soybean farmers in Cass, Johnson, Lancaster, Nemaha, Otoe, Pawnee and Richardson counties. This is his first term serving on the Nebraska Soybean Board.

Greg Anderson, a soybean farmer from Newman Grove, NE – was elected to the At-Large Position by the Nebraska Soybean Board members at the July meeting.  Anderson will begin his first term.

These board members will bring with them a wealth of experience from local leadership roles.  “We commend these farmer-leaders for the commitment of their time, energy and effort to help increase demand for Nebraska soybeans, said Victor Bohuslavsky, Nebraska Soybean Board, executive director.

The elected directors will serve a three-year term beginning October 1, 2014 and ending September 30, 2017.



I-CON PUSHES AGAINST INCREASE IN CHECKOFF

The Independent Cattlemen of Nebraska (ICON) are rejecting the recent Memorandum of Understanding (MOU) being proposed by several agricultural groups which, among other things, will in effect raise the Beef Checkoff from $1 to $2 or more.

The MOU was hammered out by the leadership of American Farm Bureau, United States Cattlemen's Association, National Cattlemen's Beef Association, Farmer's Union, and other entities and was presented to the Cattlemen's Beef Board and the Federation of State Beef Councils for their consideration at the recent NCBA convention in Denver.

At that meeting the Cattlemen's Beef Board made a decision to defer a vote on the MOU until members had a better chance to learn about what was actually involved in the Memorandum. CBB was first presented with the MOU only a few minutes before they were asked to vote on it and Nebraska CBB members Al Davis and David Wright both spoke out strongly against making a quick decision on the MOU.  The Federation of Beef Councils did vote to advance the MOU.

“One of my major concerns is the need to treat this as a binding contract and if that is so, members need to vote on this before it is signed,” said ICON president Dave Wright.

Wright also pointed out there was a Cattlemen’s Beef Board study done recently which showed the return on investment for the $1 Beef Checkoff is a little over $11. He wonders if the increase is necessary and wants proponents of the amended change to consider if this will be an unnecessary hardship for producers.

One of the guidelines of the MOU maintains regular reviews of the referendum are not necessary. After a period of five to ten years, cattle producers may visit their local Farm Service Agency office to make a request for a review but ten percent of producers are needed. Many FSA offices are closing and in the future, this may become difficult.

ICON’s boards of directors also have other concerns including where the extra assessment dollars will be used and who will have control over them. In the past, funds from Beef Checkoff dollars which were used to subsidize expenditures like salaries, travel and expenses within the National Cattlemen’s Beef Association (NCBA) were challenged. Changes are also included for nominations to the Operating Committee which could create conflicts of interest for future contract decisions.

“Why not return to 1995 before there was a merger forming the NCBA?” asked Wright. “Separate the Federations from the NCBA and then maybe consider raising the assessment.”



Affordable Care Act Has Implications for Farm Families

Considering the high cost of health insurance, farm families should become familiar with changes brought about by the Affordable Care Act. Iowa State University Extension and Outreach human sciences specialists in family finance discuss the implications for farm families in the August issue of Ag Decision Maker.

“For the farm community and the public at large, a great deal of confusion has surrounded the rollout of the Affordable Care Act. Uncertainties remain in terms of the costs and benefits associated with its implementation,” said Suzanne Bartholomae. “However, many of the new provisions of the ACA may address some of the issues faced by farm families when it comes to health coverage.”

The health insurance consumption patterns of Iowa farmers differ from the population at large, USDA research shows. Iowa farm operators tend to have greater rates of insurance coverage than the general population, partially because of the dangerous nature of farming. To get health insurance coverage, family members often take off-farm jobs.

“Farmers use health insurance to protect their farms from risk, and many farm operations support multiple farm families,” added Susan Taylor.

Bartholomae and Taylor examine the Health Insurance Marketplace, essential benefits, tax credits and cost-sharing options. See the complete story in the Ag Decision Maker newsletter.



National Pork Board to Meet Sept. 3-5 in Des Moines
Nominations to fill 2015 Board seats now open

The National Pork Board will begin to build its 2015 marketing, research and education plans during a meeting Sept. 3-5 in Des Moines, Iowa. National Pork Board President Dale Norton, a farmer from Bronson, Mich., will preside over the board meeting Sept. 3-4, followed immediately by the Plan of Work meeting Sept. 4-5. At the latter meeting, pork producers from across the country will work directly with the board to define 2015 Checkoff budget priorities.

"Our annual Plan of Work meeting is critical because we hear directly from the pork producers who pay the Pork Checkoff. Their input is important in defining priorities and ensuring that budget dollars are invested well," Norton said. "This has been an interesting year for the Checkoff. We are facing many issues, but have seen record revenues, giving us an opportunity to invest wisely in innovative programs that will have along-term positive impact on our industry."

About 40 pork producers participate in the annual Plan of Work meeting. The agenda for the board meeting will include 2015 budget planning and program development, as well as an update on the five-year strategic planning process announced earlier this year. Checkoff staff will offer comments on programs implemented in 2014, including research priorities, domestic and international marketing efforts and producer education and training programs.

Deadline for 2015 Board Member Nominations Is Nov. 1, 2014
The Pork Checkoff's Board of Directors is now accepting nominations to fill five, three-year terms that will begin July 2015. Nominees may be submitted by state pork producer associations, farm organizations or anyone who pays the Pork Checkoff, including pig farmers and pork importers. A minimum of eight candidates must be ranked by Pork Act Delegates before the nominees aresent to U.S. Secretary of Agriculture Tom Vilsack for approval.

"Serving on the National Pork Board is a great opportunity for producers to show their support of the industry while helping toplan for a successful future," Norton said. "The board plays a significant role, ensuring that the industry voice is heard on a national level." 

Any pork producer or importer who has paid all Checkoff assessments due or is a representative of a producer or company that produces hogs and/or pigs is eligible to serve on the National Pork Board. The 15 positions on the board are held by pork producers or importers who volunteer their time. Seats to be elected in 2015 are currently held by:
     - Dale Norton, Michigan - Second term - Not eligible for reelection
     - Lisa Colby, Massachusetts - Second term - Not eligible for reelection
     - Brad Greenway, South Dakota - Second term - Not eligible for reelection
     - Carl Link, Ohio - First term - Eligible for reelection to a 3-year term
     - Craig Mensink, Minnesota - First term - Eligible for reelection to a 3-year term

Candidates also are being sought for two open positions on the Pork Board Nominating Committee. Those appointed will serve a two-year term in2015 and 2016. The Pork Checkoff Nominating Committee will solicit, interview, evaluate and recommend candidates to the Pork Act Delegate Body at the annual meeting March 5-7, 2015, in San Antonio, Texas.

The application deadline is Nov. 1, 2014, with interviews for each candidate to be held in Des Moines Dec. 11-12, 2014. Please direct application requests and questions to the National Pork Board by mail to 1776 NW 114th St., Clive, Iowa 50325. Or contact Teresa Wadsworth at (515) 223-2612 or at TWadsworth@pork.org.



National Pork Board Examines International Marketing Opportunities
The National Pork Board announced today a study that will explore alternatives for promoting pork's quality and sustainability benefits with international consumers.  The study, to be conducted by SIAM Professionals, LLC, will evaluate existing marketing strategies and partners to identify methods for improving pork's position as the global meat of choice.

Funded through America's Pork Checkoff, this project will evaluate the effectiveness of current global marketing efforts and identify potential partnerships and marketing tools for promoting U.S. pork. SIAM specializes in evaluating and developing international market opportunities for the food and agribusiness industry.  

"Throughout the world, pork is the single most consumed meat. The popularity of U.S. pork is driven by its taste, versatility as a recipe and menu item, and affordable cost," said Chris Novak, chief executive officer of the National Pork Board. "For many years, pork has been marketed globally with all other meats, and it's our intention to determine the ideal way to market U.S. pork on an international basis. It is part of our ongoing commitment to examine all of our Pork Checkoff programs to ensure continuous improvement."

According to Euromonitor International's latest estimates, global pork sales are expected to grow by 12 percent in the 2013-2018 forecast period, adding 10.6 million metric tons in sales volume by 2018. Most of this increase will be seen in emerging markets, such as Eastern Europe, Asia Pacific and Latin America where populations and incomes continue to grow. In the first six months of 2014, exports increased 9 percent from the same time period a year ago, according to current data from the USDA Foreign Agricultural Service. Most of the gains are due to growth in Mexico and continued demand in Asia.

The National Pork Board is committed to addressing the international trade barriers facing the pork industry. Currently, the United States exports approximately 28 percent of the pork raised here, delivering around $70 per animal raised back to America's pig farmers.

"In 2013, the U.S. sold pork in more than 100 countries. International markets represent a significant sales channel and, grown properly, will be critical to the success of pig farmers across the country," Novak said. "As an industry, we must remain keenly focused on developing global markets and effectively promoting pork worldwide."

The Pork Checkoff's International Trade activities are overseen by the Checkoff's Board of Directors and a 23-member International Trade Committee from throughout the United States. The committee's mission is focused on:
-    Research: Conducting technical and economic research and market analysis to prove or dispute non-scientific barriers to international trade.
-    Market Access: Seeking and pursuing all legitimate avenues to market U.S. pork worldwide.
-    Market Development: Defining key target markets and creating promotion and education outreach opportunities with importers and consumers. 

The National Pork Board has funded international market development activities through the U.S. Meat Export Federation for more than 25 years and is interested in further expanding how U.S. pork is marketed on a worldwide basis. SIAM will investigate the potential for a revised or complementary approach, developing systems with a focus on identifying new and emerging markets, incorporating new messages, and more effectively measuring results. 

"Our farmers, staff, contractors and others involved in U.S.pork production look forward to using insights gleaned from SIAM's analysis in shaping and sharing pork's story with our international consumers," Novak said. "We plan to engage our entire industry in this process of global market review."

Results of SIAM's evaluation will be presented to Pork Checkoff's full board of directors in spring 2015.  



Strong U.S. Corn Exports to Colombia Continue

The United States is on track to capture more than 95 percent of Colombia’s 3.6 million metric ton (141 million bushels) corn market this marketing year, which ends Aug. 31. This is a dramatic turn-around from 2013 exports of just 644,000 tons (25 million bushels) to that country.

Colombia has traditionally been the biggest importer of U.S. corn in South America. However, due to tariff advantages Colombian importers began switching to Argentina and Brazil to source their corn needs around 2009. It wasn’t until the U.S. – Colombia free trade agreement was implemented in 2012 that U.S. exporters began to become competitive once again in this vital corn market.

The FTA agreement allows 2.3 million tons (90 million bushels) of U.S. corn to be imported duty-free. The duty-free quota for this year was filled in June, after which market watchers expected Colombian importers to switch back to South American origin as the Argentine crop began to be exported.

However, this did not happen. The low international price of corn has caused Colombia to raise its duties on other origins to more than 30 percent, compared to 18 percent on corn from the United States. As a result, Colombian grain importers returned aggressively to buying U.S. corn.

“This year, Colombian importers were able to save millions of dollars in taxes by importing U.S. corn, said USGC Director of Global Strategies Kurt Shultz.

“We benefit as a result of years of negotiations over the free trade agreement,” Shultz said. “After all these years, it’s actually been really beneficial to the U.S. corn producer.”

In addition to corn, the Council is working with the livestock industry in Colombia to introduce DDGS, which face no import duties, into that market.



New Malaysia Import Regulations: U.S. DDGS and CGM Receive Permanent Exemption

Malaysian officials last week agreed to permanently exempt imports of U.S. distiller’s dried grains with solubles (DDGS) and corn gluten meal (CGM) from that nation’s new, more stringent sanitary and phytosanitary (SPS) and inspection regulations for agricultural commodities. The decision makes permanent a temporary exemption, granted in May, for the period from July 31 to Dec. 31, 2014.

“Southeast Asia, including Malaysia, is a growth market, so this is an important decision,” said Adel Yusupov, USGC regional director for Southeast Asia. “Malaysia has experienced problems with some countries of origin, but U.S. DDGS and CGM are high quality. It is encouraging to see Malaysia recognizing this in its regulations.”

Earlier in the year, Malaysia announced new SPS and inspection regulations on imports of a number of agricultural commodities. These potentially costly regulations applied to all countries of origin, including the United States. This one-size-fits-all approach threatened to disrupt trade and impose significant and needless costs on Malaysian buyers and consumers.

Working closely with the U.S. Department of Agriculture (USDA) Foreign Agricultural Service (FAS) office in Malaysia, Yusupov immediately launched a dialogue with Malaysian officials. The temporary exemption announced in May provided time for additional discussion. Malaysian officials have now officially recognized that U.S. DDGS and CGM pose no significant threat to Malaysian agriculture and end-users.

“Without this decision, U.S. DDGS and CGM would have faced requirements for fumigation at the port of origin and strict phytosanitary certification, effective Jan. 1, 2015,” Yusupov said. “The exemption is a big win for trade, and for Malaysian consumers.”



Deere Announces Factory Layoffs

Deere & Company announced it will reduce the size of its manufacturing workforce at some agricultural equipment factories in response to current market demand for its products. The action will place more than 600 employees at four locations on indefinite layoff.

In addition, Deere is implementing seasonal and inventory adjustment shutdowns and temporary layoffs at several of the affected factories. When Deere announced third quarter earnings on Wednesday, the company said it planned to reduce agricultural equipment production in the company's fourth quarter.

Employees have been informed at the affected facilities, which include John Deere Harvester Works, East Moline, IL; John Deere Seeding and Cylinder, Moline, IL; John Deere Des Moines Works, Ankeny, IA; and John Deere Coffeyville, Coffeyville, KS. No other locations are included in the layoff announcement.

In July, Deere informed employees at its Ankeny facility of an extended shutdown affecting most manufacturing employees at that location.