Thursday August 14 Ag News

Credit Conditions Remain Solid Despite Lower Farm Income
Nathan Kauffman, Kansas City Reserve - Omaha Branch executive
Maria Akers, associate economist

Credit conditions at agricultural banks remained sound in the second quarter and were expected to hold steady during the growing season. Some survey contacts pointed out that several years of strong profitability in the crop sector have bolstered the financial position of many farmers and could provide a measure of protection against a forecasted drop in income for 2014. Indeed, bankers reported very few past due farm loans in the second quarter and anticipated that the majority of farm loans in their portfolios would have no significant repayment problems this year. Bankers felt that a small portion of farm loans, less than 10 percent, may have minor repayment issues, but that these issues could be remedied easily. As a result, very few farm loans were expected to require workout negotiations or forced liquidation of assets.

However, following the sharp drop in crop prices in late 2013, some bankers noted a dip in farm loan repayment rates. While repayment rates have fluctuated across the District, the largest declines have been in states heavily dependent on crop production, particularly Nebraska. In contrast, loan repayment rates in Oklahoma strengthened in the second quarter along with improved profitability in the cattle sector. In addition to softening repayment rates, bankers also reported a rise in the number of loan renewals and extensions over the past year. Still, loan repayment rates and loan renewals and extensions were expected to hold steady in the coming months.

Despite the deterioration in farm loan repayment rates in some areas, bankers reported little change in underwriting standards in the second quarter. Collateral requirements on farm loans generally held firm and loan-to-value ratios remained relatively conservative. On average, bankers reported about half of their agricultural loans, including operating, farm machinery and real estate, had a loan-to-value ratio between 65 and 80 percent. Furthermore, about one-third of their agricultural loans were made with a loan-to-value ratio less than 65 percent. In addition, loan terms remained favorable to borrowers with interest rates holding at low levels, averaging 5.7 percent on operating loans, 5.5 percent on farm machinery loans and 5.4 percent on farm real estate loans.

Farm Income and Loan Demand
Demand for farm operating loans rose alongside lower farm income in the second quarter. District winter wheat yields in Kansas and Oklahoma were well below average due to poor growing conditions from prolonged drought, followed by scattered storm damage close to harvest. In fact, the National Agricultural Statistics Service reported winter wheat yields were down 26 percent from last year in Kansas and fell by 45 percent in Oklahoma. Although U.S. wheat production was down, strong global production estimates kept prices subdued, limiting farm income in the second quarter.

Heavy rains in June were typically too late to help the winter wheat crop but enhanced growing conditions for corn and soybeans. Strong summer storms produced record rainfall and eased severe drought conditions in many parts of the District, boosting production estimates for fall crops and improving pasture conditions for cattle grazing. In fact, the U.S. Department of Agriculture (USDA) projected 2014 corn yields at a record 167.4 bushels per acre, 11 percent higher than the most recent 10-year average. However, the potential for record yields weighed on prices, and futures markets for December delivery of corn were trading close to $4 per bushel at the end of June with further declines in July. Furthermore, USDA estimated the cost of production would be more than $4 in 2014 for a typical corn producer with an average yield of about 150 bushels per acre.

The timing of price movements is also important for revenue expectations. Some farmers have sold a portion of their crop at higher prices earlier in the crop year through forward contracting. In addition, support for 2014 farm income could come from crop insurance prices that were set earlier this year at higher levels. If prices remain low through harvest, some farmers may also decide to store grain at harvest and wait for prices to rise before selling. 

Most bankers surveyed acknowledged a connection between the strength of the farm economy and Main Street business activity in rural communities. While half of survey respondents felt a strong farm economy was supporting further economic growth in their areas, 40 percent saw signs of weakness in the farm economy that was also dampening Main Street business activity. Overall, bankers noted lower levels of household and capital spending in the second quarter compared with last year and expected further declines in coming months.

Farmland Values
Despite lower farm income, cropland values generally held steady in the second quarter. Although still above year-ago levels by about 6 percent, the change in nonirrigated and irrigated cropland values from the first to the second quarter of 2014 was less than 1 percent. Ranchland values, however, were still rising, supported by demand from the livestock sector for high-quality pastures. District ranchland values increased more than 2 percent from the first to the second quarter of 2014 and remained a little more than 9 percent above year-ago levels. Current trends in farmland values were expected to continue for the rest of the growing season with cropland values holding at high levels and ranchland values rising further.

Gains in farmland values, however, continued to vary by state. After posting some of the largest increases in farmland values during the past several years, annual value gains for Nebraska cropland in the second quarter were the lowest in the District. Farmland value gains have also moderated in Kansas and Missouri, although several years of drought in Kansas supported higher values for irrigated cropland. Bankers in Oklahoma and the Mountain States of Wyoming, Colorado and northern New Mexico reported the strongest year-over-year gains in farmland values in the second quarter due in part to land lease revenues from energy production and easing drought conditions.

Looking Forward
Agricultural bankers reported credit conditions held relatively steady in the second quarter, but also noted some emerging risks due to lower farm income. While past profits and crop insurance may help mitigate shrinking margins in 2014, financial stress for crop producers could mount in 2015 if net returns do not improve. In addition, should a large fall harvest keep prices low through the beginning of next year, crop insurance might not provide a comparable level of revenue protection in 2015. Looking forward, loan quality may become more of a concern beyond 2014 if repayment rates come under additional pressure from declining profit margins.



ACE elects 2014-2015 board of directors

During its 27th annual meeting, the American Coalition for Ethanol (ACE) re-elected several board members and elected three new representatives to the group’s Board of Directors.

Eight current board members were re-elected to serve for the remainder of 2014 and through August of 2015:
·    Bob Sather, Chippewa Falls, Wisconsin representing ACE Ethanol, LLC
·    Chuck DeGrote, Clara City, Minnesota representing Chippewa Valley Ethanol Company
·    Steve Vander Griend, Colwich, Kansas representing ICM, Inc.
·    Ron Wetherell, Cleghorn, Iowa representing Little Sioux Corn Processors
·    Gary Marshall, Jefferson City, Missouri representing Missouri Corn Growers Association
·    Todd Sneller, Lincoln, Nebraska representing Nebraska Ethanol Board
·    Nick Sinner, Fargo, North Dakota representing Red River Valley Sugar Beet Growers
·    Merle Anderson, Climax, Minnesota representing Minnkota Power Electric Cooperative

Three individuals were nominated and elected to serve as new board directors:
·    Chris Wilson, Marshall, Missouri representing Mid-Missouri Energy, LLC
·    David Kolsrud, Brandon, South Dakota representing Badger State Ethanol
·    Greg Krissek, Wichita, Kansas representing Kansas Corn Growers Association

“The ACE board of directors is a dedicated group of active volunteers who represent the grassroots diversity of our entire membership,” said Brian Jennings, ACE Executive Vice President.  “Our members are very capably represented by the passion, expertise, and experience the ACE board brings to the table and we are grateful for their support and leadership.”



Up-and-Coming Grower Leaders Get Taste of Leadership at Its Best

Growers are gathered today in Greensboro, N.C. for the first session of the NCGA Leadership Academy, co-sponsored by Syngenta. This year's class includes 16 aspiring leaders from 10 states and covers a broad swath of the nation with participants from as far east as New York and as far west as Colorado. Upon completion of the program in January, the participants will join more than 500 colleagues who have graduated from this program in the past 28 years.

At the meeting, participants got an up-close look at NCGA from President Martin Barbre, a Leadership Academy alumnus. Barbre also provided an insightful examination of the main issues facing the association, and the nation's corn farmers, today.

The farmers attending took part in media training and public speaking exercises as well as association management skill building. In addition, the class enjoyed a look at the future trends that will impact the industry and a comprehensive economic forecast given by futurist Bob Treadway. Finally, the class received a behind-the-scenes tour of Richard Childress Racing and heard how American Ethanol is benefitting NASCAR and driving consumer acceptance of higher blends of corn ethanol in the nation's fuel supply.

"As a Leadership Academy graduate, I have a deep appreciation for the confidence and skills attendees develop in such a short time, and of the ability of Syngenta and other presenters to hone in on what is most needed," Barbre said. "As NCGA president, I am excited to see new leaders who want to take on an active role in the association. When these volunteers come together, you can feel their commitment to the industry. It is heartening to know that such strong farmer leaders will carry on our mission well into the future."

This year's Leadership at Its Best Class includes: Matt Amick (MO); Russell Carpenter (N.Y.); Ann Cross (Colo.); Justin Durdan (Ill.); Kurtis Gregory (Mo.); Mark Heckman (Iowa); Bob Hemesath (Iowa); Noah Hultgren (Minn.); Paul Jeschke (Ill.); Andy Jobman (Neb.); Greg Krissek (Kan.); Jon Miller (Ohio); Ted Mottaz (Ill.); Danny Nerud (Neb.); Scott Saucer (Ala.); and Dennis Vennekotter (Ohio).

Open to all NCGA membership, Leadership at Its Best provides training to interested volunteers of all skill levels.  The second session, which will be held this Januaryin Washington, addresses public policy issues, working with the Hill and parliamentary procedure.  Through this program, participants build the skill set needed to become a more confident public speaker with a solid background in the procedures and processes used by NCGA and many state organizations.



Harmon Named Interim Director of Iowa Pork Industry Center
Jay Harmon has been named the interim director for Iowa State University’s Iowa Pork Industry Center.

Harmon, a professor of agricultural and biosystems engineering and an extension livestock housing specialist, brings expertise in pork production systems to the position, which promotes efficient pork production technologies in Iowa.

His goal is to increase awareness of the center and support member organizations in promoting their services and knowledge.

“Iowa State has great people, doing great work,” Harmon said. “My role is to increase visibility of the Iowa Pork Industry Center and encourage the continued cooperative work of the partner departments and organizations.”

Harmon succeeds Rodney “Butch” Baker, who served two years as interim director. Baker is senior clinician at Iowa State’s Department of Veterinary Diagnostic and Production Animal Medicine.

The Iowa Pork Industry Center, established in 1994, is a coordinated effort of the colleges of Agriculture and Life Sciences and Veterinary Medicine at Iowa State. Through the center, Iowa producers receive accurate and timely information to aid in making their operations more efficient and profitable.

Harmon works with producers, on-farm construction businesses, veterinarians, appraisers and other agribusiness groups in his role with Iowa State University Extension and Outreach. His main research and extension programs involve ventilation training, for which he has developed a training trailer to be used with clients across the state, along with programs on energy conservation, building design to meet animal welfare concerns, and air quality. He teaches animal production systems in the Department of Agricultural and Biosystems Engineering (ABE).

Harmon also serves as professor-in-charge of Midwest Plan Service, a university-based publishing cooperative dedicated to disseminating research-based, peer-reviewed, and un-biased publications that support the outreach missions of the Midwest land-grant universities and the USDA.

In 2011, he was named a Fellow by the American Society of Agricultural and Biological Engineers. He received the Dean’s Citation for Extraordinary Contributions from ISU’s College of Agriculture and Life Sciences in 2009. He has a Ph.D. in agricultural engineering from Virginia Tech and a master’s degree in agricultural engineering from the University of Minnesota. He earned his bachelor’s degree in agricultural engineering from Purdue University. He is a registered professional engineer.



Iowa Corn Growers Announces Kaufman, Willett 'Friends'

The Iowa Corn Growers Association (ICGA) has named two recipients for the 2014 Friend of Iowa Corn Award. The Friend of Iowa Corn Award is an annual award given to individuals that show exemplary effort on Iowa Corn Growers Association policy issues. Recipients include State Representative Bobby Kaufmann and National Corn Growers Association staff Sam Willett. Award winners were selected based on their support of ICGA's highest priorities, their accessibility and working relationships with ICGA, their effectiveness as a leader on important issues to the ICGA and overall support of ICGA policy. The awards will be presented at the ICGA Annual Meeting on Aug. 23 in Des Moines.

"We are proud to recognize these outstanding individuals for their efforts to help with the policy goals set by farmers in Iowa," said Roger Zylstra, a farmer from Lynnville and the current President of the Iowa Corn Growers Association. "We realize that we need many 'friends' in the political arena, not only in Washington D.C., but also in Iowa. These individuals have gone above and beyond on behalf of the corn industry as a whole."

Bobby Kaufmann, a farmer and Iowa House of Representatives member, was selected due to his leadership in passage of ICGA's priority bill regarding the Iowa Corn Checkoff. Kaufmann has an understanding and affinity with many Iowa Corn policy positions, and has earned a reputation as a problem-solver, approaching issues in a pragmatic fashion. As an advocate of the Iowa Corn Checkoff Bill, he helped arrange local meetings in the area with farmers who had checkoff questions, worked to eliminate concerning provisions in the bill and as Floor Manager, moved the bill forward to its ultimate passage. Representative Kaufmann is the first legislator to ever receive the Friend of Iowa Corn Award.

Sam Willett, who is the Director of Public Policy for the National Corn Growers Association, was selected for his instrumental role in helping the ICGA implement its highest federal priority this year in the Farm Bill. Willet has led the charge on crop insurance and a market oriented risk management commodity program and has built outstanding relationships with legislators as a trusted resource on Capitol Hill.

The Friend of Iowa Corn Award is an annual award given to individuals that show exemplary effort on Iowa Corn Growers Association policy issues. Past award recipients include, Brenna Findley, Dean Lemke, and Joe Shultz. The Friend of Iowa Corn Awards are presented during the Iowa Corn Annual Meeting each August.



ISA Announces New and Returning Directors

The Iowa Soybean Association Board of Directors will seat four new members during its September meeting, including the Midwest Farm Mom of the Year.  Stephanie Essick, who farms near Dickens, was recently elected as an At-Large director by soybean growers across Iowa’s nine crop districts.

Other newly elected directors include Chuck White of Spencer, District 1; Randy Souder of Rockwell City, District 4 and Morey Hill of Madrid, District 5. Lindsay Greiner of Keota, who was appointed by the board to finish the unexpired At-Large term of Jim Andrew of Jefferson, was re-elected.

Also re-elected were Wayne Fredericks of Osage for a third term in District 2 and Mark Jackson of Rose Hill for a second term in District 9.

Curt Sindergard of Rolfe, Delbert Christensen of Audubon, Randy Van Kooten of Lynnville and Roy Arends of Alexander are retiring from the board after serving nine years. Christensen will remain as an Iowa representative on the United Soybean Board (USB).

“I want to thank all our retiring members for their dedication to ISA,” said Tom Oswald, ISA president-elect. “Though we will miss our retiring directors, I welcome the newly elected board members and the fresh perspectives they bring as we celebrate ISA’s 50th anniversary and embark into the next 50 years."

Other district directors include current ISA President Brian Kemp of Sibley, from District 1; Dean Coleman of Humboldt, District 2; Scott McGregor of Nashua and Dennis Lindsay of Masonville, District 3; Sheila Hebenstreit of Jefferson, from District 4; Rolland Schnell of Newton, District 5; Ed Ulch of Solon and Benjamin Schmidt of Iowa City, District 6; Jeff Jorgensen of Sidney and Bill Shipley of Nodaway, District 7; Cliff Mulder of Pella, District 8; John Heisdorffer of Keota, District 9; Tom Oswald of Cleghorn and Ron Heck of Perry are At-Large directors.



NPPC Calls On Japan To Nix ‘Gate Price’ On Pork

In a letter sent today to top Obama administration trade officials, the National Pork Producers Council detailed the reasons U.S. negotiators on the Trans-Pacific Partnership (TPP) should insist that Japan eliminate its so-called Gate Price on U.S. pork.

The TPP is a regional negotiation that includes the United States, Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam, which account for nearly 40 percent of global GDP.

NPPC told Agriculture Secretary Tom Vilsack and U.S. Trade Representative Michael Froman that the Gate Price has associated with it a long history of fraud and criminal activity, and it discriminates against Japanese consumers by putting upward pressure on food prices and has prompted Japanese meat processing companies to move their factories to other Asian nations, costing the country much-needed jobs.

The byzantine system also may violate Japan’s constitution, which requires that obligations contained in treaties be given legal precedence over domestic laws. Japan considers the World Trade Organization’s “Marrakesh Agreement,” which established existing WTO rules, as a treaty. Several plaintiffs, including a former Japanese government official, are arguing that the Gate Price violates provisions of the WTO Agreement on Agriculture, which prohibit the use of variable import levies, and, therefore, is in violation of the country’s constitution.

Pork producers’ support for a final TPP Agreement is conditioned on the elimination of all tariff and non-tariff barriers to U.S. pork exports in each of the TPP nations, including the elimination of the Gate Price in Japan,” said NPPC President Howard Hill, a veterinarian and pork producer from Cambridge, Iowa.

In the TPP negotiations, Japan is demanding special treatment for its agricultural sector, including exempting pork and other “sensitive” products from tariff elimination and maintaining the Gate Price on pork.

“While Japan’s current TPP offer on pork, if implemented, might allow a modest increase in U.S. pork exports to that country,” Hill said, “it would rob the U.S. pork industry of hundreds of millions of dollars in annual pork exports to Japan and would stymie the creation of thousands of U.S. jobs that the industry would realize if the Gate Price and tariffs on pork were eliminated. Further, the disposition of this issue will impact our producers for the next 25 years, setting a precedent for future U.S. free trade agreements.”

Japan is the No. 1 export market for U.S. pork, which shipped nearly $2 billion of products to the island nation in 2013.



Real Value of Soybeans Lies in the Oil and Protein Content, Says CHS VP

U.S. soy’s biggest customers buy soybeans for the oil and protein content inside. Better soybean quality improves demand among these customers, which impacts the price farmers receive. The United Soybean Board’s Value Task Force finds multiple ways to add value to U.S. soybeans and make them more competitive in the global marketplace. The group also helps the U.S. soybean industry, including farmers, capture more of that added value.

Tom Malecha, vice president of CHS’s Processing and Food Ingredients divisions, serves on the Value Task Force as a representative of the soybean-processing industry. In this interview, Malecha discusses the task force’s work on behalf of U.S. soybean farmers.

Q: One of the items the task force has looked into is converting the soybean-pricing system to one that compensates farmers based on soybean quality, rather than just yield. Is that a realistic goal?
A: It certainly is. In fact, the market already values U.S. soybeans based on the component makeup of the bean. In the end, I think we’ll see more component pricing, rather than less, but I don’t believe it’s a change that will happen overnight.

Q: How would it compare to the system that exists now?
A: Just about every soybean is processed into protein and oil, but it’s hard to determine what part of the soybean price is a premium or discount for oil or protein content because the entire price of soybeans is based on the value of those. You have a pricing component on the Chicago Board of Trade called soybean meal and a pricing component called soybean oil, and then of course you have the soybean futures. So there’s already somewhat of a market-driven trading platform based on the two components.

Q: Is it feasible for elevators and processors to test every load of soybeans that comes in and compensate that farmer based on oil and protein content?
A: We use NIR (near infrared spectroscopy) machines to test every inbound load and pay based on oil and protein content, and we’ve had a premium program since 2003. NIR technology is becoming a much more widely approved method for testing soybean quality because of its accuracy. If farmers and the industry decide that component pricing is appropriate, then it will be imperative that farmers understand what NIR machines are and I think you’ll begin to see farmers begin to put them on their farm, which will allow them to segregate soybeans coming off the combine based on oil and protein content.

Q: How would you judge the Value Task Force’s progress?
A: I think it’s doing a very good job of getting to things that will benefit the entire industry for the long term and not being specific to one player in the industry. So it truly is working for the betterment of the entire soybean industry, and I think that’s valuable. As we continue, we’ll have interaction with other players in the industry, and the recommendations that this task force will make should have very good backing from the entire industry. The recommendations the task force comes up with won’t happen overnight, but they’ll make our industry more competitive, and I think just as importantly, will continue to add profitability to all levels the U.S. soy industry.



Biotech Approvals, Acceptance on the Docket at D.C. Biotechnology Roundtable

The American Soybean Association (ASA) and the Illinois Soybean Association (ISA) teamed up in Washington this week to bring together more than 100 farmers, researchers, leaders of agricultural organizations and federal officials to discuss the worldwide benefits of agricultural biotechnology, focusing on acceleration of government approval of biotech seed for soybeans and other crops.

This D.C. Biotechnology Roundtable is the latest in a series of forums ISA has organized to help advance a more science-based biotech approval process and to reinforce the proven safety of agricultural biotechnology, which farmers use to enhance the yields and quality of soybeans and other crops.

“It is critical that agriculture let policymakers and regulators in Washington know how much farmers need biotechnology to sustainably produce food for the world’s population. Scientists and regulatory agencies have established that agricultural biotechnology is safe for humans, animals and the environment. It is crucial science that helps farmers use less resources to produce more food,” says Bill Raben, soybean farmer from Ridgway, Ill., and ISA chairman.

Darci Vetter, chief agricultural negotiator for the U.S. Trade Representative delivered the keynote address. Other regulatory speakers included Dan Kenny, Environmental Protection Agency, Michael Firko, U. S. Department of Agriculture, and Jack Bobo, U.S. Department of State. Additional speakers include Michael Hawkins, Embassy of Canada, David Zilberman, University of California; Jim Sutter, U.S. Soybean Export Council, and ASA CEO Steve Censky. Firko talked about the progress USDA is making in clearing the backlog of approval of new biotechnology designed to help crops withstand pests, disease and harsh climate and to use crop nutrients more efficiently.

Zilberman said that approvals for new biotechnology traits for soybean seed can take 10-15 years, pushing costs as high as $160 million to commercialize new biotechnology.

A panel of farmers, Ron Moore, representing ISA and ASA; Jim Zimmerman, of Wisconsin, of the National Corn Growers Association, and Brett Blankenship, Washington State, representing the National Association of Wheat Growers, shared examples of the value of biotechnology and the need for collaboration across agriculture and government to make biotech crops available to farmers and food companies. The farmers emphasized that biotechnology should be viewed as a viable choice for those who see its benefits including consumers and farmers.

Robert Paarlberg, renowned author and advisor to numerous food and agricultural organizations worldwide, reiterated the proven safety of biotechnology. A professor of political science at Wellesley College and public policy at Harvard University’s Weatherhead Center for International Affairs, Paarlberg observed that opposition to biotechnology comes from environmental and anti-globalization groups in more affluent countries, particularly the European Union. He said the current state of worldwide regulation deprives people of food by preventing use of biotechnology by farmers in poorer countries who are growing food crops such as wheat, rice and potatoes, and making the technology available only to farmers in affluent countries, such as the United States, who raise biotech crops, such as soybeans and corn for livestock feed.

Hosted by ISA and ASA, the meeting was sponsored by DuPont Pioneer, Monsanto, the New York Corn & Soybean Association, U.S. Soybean Export Council, FLM+, Indiana Soybean Alliance, National Association of Wheat Growers, Indiana Corn Marketing Council, National Corn Growers Association, Dow AgroSciences and Ohio Soybean Council.



Veterinarians and Producers Gain New Tool to Assess Residue Risk

Swine veterinarians can help pork producers measure the farm risk level for violative residues in pork with the new Swine Residue Risk Assessment app. The free app is available in the Apple® App Store® for iPad® devices.

“This app is a simple way to review practices and evaluate risk levels before your product enters the pork supply,” said Michael Senn, DVM, senior manager, Pork Technical Services, Zoetis. “The results from this tool can provide meaningful guidance for a discussion between veterinarians and producers to reinforce your commitment to the responsible use of antibiotics.”

The assessment app — created with veterinary expert input — asks questions about on-farm animal care and management practices. A weighted scoring system assigns points based on the likelihood of the risk of a violative antibiotic residue in pork. The assessment rates a farm’s risk level as low, moderate or high, and it suggests next steps to maintain low risk or address higher-risk issues. Users can send the results to any email address, allowing veterinarians, producers or caregivers to easily view them.

“Veterinarians and producers are always on the go,” Dr. Senn said. “The mobility of a risk assessment app allows for easy evaluation of proper antibiotic usage. It also can be shown to caregivers, reinforcing the importance of using antibiotics responsibly.”

Download the app for free from the Apple App Store. After logging in with your Apple account information, search for the Swine Residue Risk Assessment.

Zoetis offers the Swine Residue Risk Assessment app to veterinarians and producers as part of a complete products and services portfolio. This new tool reinforces the commitment of Zoetis to encourage responsible antibiotic use and provide producers with solutions that make a difference. For more information on the assessment app or other support from Zoetis, please visit with your local Zoetis representative.



DOJ Wants More Details on Tyson, Hillshire Buyout

Tyson Foods Inc. and Hillshire Brands Co. said that they have received requests for additional information from the U.S. Department of Justice regarding Tyson's plan to buy Hillshire. The so-called second requests relate to just a "very small portion" of the companies' combined business, and the companies are working "expeditiously" to resolve this matter with the DOJ's antitrust division, Tyson and Hillshire said in a joint statement.

Companies involved in mergers often get second requests for information as the government looks into the proposed deals and sometimes sell off some of their assets in order to get the government's approval on mergers.

Hillshire also reported better-than-expected quarterly sales and profit on Wednesday. The maker of Jimmy Dean sausage did not provide any forecasts for future results, as it is waiting to be acquired.

Tyson and Hillshire said that they still expect the deal to close on or before Sept. 27, subject to customary closing conditions. Tyson said it has extended the offering period of its $63 per share tender offer for Hillshire shares by a week, until Aug. 19, due to the second requests.

Hillshire said that its long list of new products, which the company is introducing throughout 2014, also drove some of the growth. For example, the new Hillshire Farm American Craft sausages are exceeding the company’s distribution expectations, Hillshire said.



Nitrogen efficiency supports environmental stewardship  

As growers prepare for another harvest, it’s important to consider how nitrogen stabilization not only supports healthy plant growth but also fosters environmental stewardship.

“Nitrogen management is critical to grow healthy corn crops and to build a more sustainable world,” says Tiffany Galloway, U.S. product manager for nitrogen stabilizers, Dow AgroSciences. “Stabilizing nitrogen reduces the amount of nitrogen loss into the environment, which is a beneficial farming practice on multiple levels.”

The Dow AgroSciences nitrogen stabilizer portfolio, which includes N-Serve®, the original nitrogen stabilizer, and Instinct® II, supports conservation efforts by reducing leaching of nitrogen into groundwater and by limiting denitrification, the escape of nitrogen as a greenhouse gas into the atmosphere. By managing nitrification, Instinct II and N-Serve protect a grower’s largest input investment and ensure nitrogen is available when the plant needs it the most. Instinct II and N-Serve also are the only nitrification inhibitors registered by the U.S. Environmental Protection Agency.

“Since 1980, the amount of nitrogen used per acre has decreased by approximately 25 percent, yet growers continue to produce higher corn yields,” Galloway says. “By stabilizing nitrogen, growers have been able to use their applied nitrogen more efficiently, keeping it in the root zone longer for maximized yield.”

Nitrogen stabilizers slow the conversion of ammonium-N to the nitrate form, providing a better opportunity for corn to uptake the nutrient from the soil. As a result, research shows that fewer nitrates are lost into the groundwater or surface water through field drainage.

“By keeping the nitrogen in the ammonium form longer, the corn plant can get the nitrogen it needs to grow stronger and healthier,” Galloway says.

Most nitrogen loss occurs in May and June when corn is small and there is plentiful rainfall, Galloway says. This is when yield is most often lost because of leaching and denitrification. More than 10 percent of nitrogen can be lost in three days of saturated soils through denitrification, with an additional 10 percent lost every day it stays saturated.

When applied with anhydrous ammonia, N-Serve reduces leaching and denitrification. Instinct II ensures nitrogen is available in the root zone during key stages of corn growth when used with liquid nitrogen, manure or dry fertilizer blends.

Instinct II and N-Serve also support the 4R program as part of environmentally sustainable farming practices. The 4R program is a concept to use the right fertilizer source, at the right rate, at the right time, with the right placement. The 4R framework takes an innovative approach that provides educational tools, advocacy support and implementation recommendations for crop nutrient stewardship. The program advocates management practices to increase production, boost farmer profitability, enhance environmental protection and improve sustainability.