Friday September 5 Ag News

PVC Schedule Outlook Meeting
Brett Andrew Mueller, Platte Valley Cattlemen President

As the weather changes and choppers start rolling it can only mean one thing…the next Platte Valley Cattlemen meeting is here!  Monday, September 15th at Wunderlich’s we are planning on having our annual Outlook meeting starting with a social at 6:00 p.m. and our meal to begin at 7:00 p.m. 

We want to be sure to thank in advance Frontier Coop for sponsoring our meal and Pinnacle Bank for sponsoring the social hour.
 
Our featured speaker for the night will be Steve Knuth from Holdrege.  Steve is the President of Ag West Commodities LL.  He has been a licensed commodity broker since 1990 and started his own company in 1999.

We look forward to seeing everyone the 15th!



Safety demonstrations with GSI, Inc at Husker Harvest Days

The Nebraska Corn Board (NCB) and Nebraska Corn Growers Association (NeCGA) in partnership with GSI, Inc., are hosting grain engulfment safety demonstrations throughout the Husker Harvest Days event, September 9-11, 2014. These demos tie with the theme, “Take a Second for Safety” that all of the commodities will be promoting in the Commodities Building (Lot #8) on Main Street.

Over the past 50 years in the U.S., more than 900 cases of grain engulfment have been reported—and the fatality rate is 62 percent. With several grain bin accidents already reported this year in Nebraska, NCB and NeCGA want to advocate for more training and safety tubes to be available for local fire departments across the state.

Each day, there will be rescue demonstrations held at the GSI booth (Lot #217) on 2nd Street.  The demonstrations take place at 9:30 am, 10:30 am, 1:30 pm and 2:30 pm on Tuesday, Wednesday and Thursday at the GSI booth.

These demonstrations are very real – actual people are submerged up to their chest in corn. Experts from the Safety and Technical Rescue Association (SATRA) show how to use grain rescue tubes to save the individuals. While demonstrating, they explain just how easy it is for an individual to get themselves into a bad situation—and how common sense and proper safety protocols can help avoid a tragedy.

These demos also show how important it is that local emergency responders have the proper equipment and training to manage a grain engulfment situation. While Husker Harvest Days participants are at the Commodity Building, they can register to win one of two grain rescue tubes which will be given to their local fire departments or emergency response organization.

At the Commodities Building, participants will also be encouraged to take time to comment on EPA's proposed Waters of the U.S. (WOTUS) rules. These proposed rules can have a dramatic effect on Nebraska farmers’ freedom to farm and the cost of doing business.



New Holland Agriculture Sponsors Great American Wheat Harvest Documentary Film Screening in Grand Island, Neb., during Husker Harvest Days 2014

Conrad Weaver of ConjoStudios, LLC announces New Holland Agriculture as the screening sponsor for the Great American Wheat Harvest documentary film at the historic Grand Theatre in Grand Island, Neb., during Husker Harvest Days 2014 Wednesday, Sept. 10.

The public is welcomed and invited to attend. Doors open at 6 p.m. and the begins at 7 p.m. Moviegoers can enjoy special "Wheat Treats" provided by the Nebraska Wheat Board in cooperation with the Nebraska Wheat Growers.

Weaver recognizes New Holland Agriculture as one of the many companies and agricultural organizations that provided support for the production of the film, as well as the Nebraska Wheat Board, along with other state wheat commissions that sponsored the film.

"Grand Island is great city and venue to feature the film, as it is home to many of the national conventions of the U.S.Custom Harvesters, who are spotlighted in the film," Weaver says. "We are excited to have the film back in Nebraska and once again welcome the support of New Holland and the participation of the Nebraska Wheat Board."

The Zeorian Harvesting & Trucking of Manley, Neb., run New Holland combines on the wheat harvest route from Texas and Canada and are profiled in the film. The Zeorian's, who are just finishing their run in Montana, tell their story of the wheat harvest through the All Aboard Wheat Harvest custom harvester blog, produced by High Plains Journal and sponsored by New Holland Agriculture.

“New Holland is pleased to sponsor the showing of this important documentary film during Husker Harvest Days in Nebraska, whose wheat producers rank amongst the top-10 in the nation,” says Mark Hooper, New Holland Director of Marketing, North America. “As an advocate for agriculture, we feel this film is a smart way to connect consumers with the North American wheat growers and custom harvesters who produce their food.”

New Holland provides combine service to custom harvesters through the New Holland Harvest Support Team, which travels with the wheat harvest. Some of the area New Holland dealerships and and equipment experts will be attending the film showing in Grand Island. The Grand Theatre is located Downtown 316 West 3rd Street.



Managing Soybean Harvest Timing, Moisture to Improve Yield
Gary Zoubek, UNL Extension Educator

Timely soybean harvest is important to maximize profits. Several years ago Andy Christiansen, former Hamilton County Extension Educator, and I collected information from 115 truckloads of soybean that were harvested and being delivered to the elevators.  Of those sampled, 5% were less than 8.9% moisture; nearly 14% were between 9-9.9%; 28% were between 10-10.9%; 27% were between 11-11.9%; 29% were between 12-12.9%; 9% were 13-13.9% while about 3% were 14-14.9% moisture.

What difference does harvesting and selling soybeans at 8% or 9% moisture mean to your bottom line?  If you sell soybeans at 8% moisture, you're losing about 5.43% of your yield; at 9% moisture, it's 4.4%; at 10% moisture, 3.3%; at 11% moisture, 2.25%; and at 12% moisture, it's 1.14% yield. For a field that's yielding 75 bushels/acre at 13% moisture, harvesting it at 9% results in selling 3.3 fewer bushels/acre. With soybeans priced at $10/bushel, that's a loss of $33 per acre.

So what can you do?  We know that it is impossible to harvest all your soybeans at exactly 13%, but that should be your goal. Consider these soybean harvest tips:

-    When harvesting tough or green stems, make combine adjustments and operate at slower speeds. Harvest at a slow pace and make combine adjustments to match conditions several times a day as conditions change.
   
-    Begin harvesting at 14% or 15% moisture. What appears to be wet from the road may be dry enough to harvest. Try harvesting when some of the leaves are still dry on the plant; the beans may be drier than you think. Soybeans are fully mature when 95% of the pods are at their mature tan color.
   
-    Harvest under optimum conditions. Moisture content can increase by several points with an overnight dew or it can decrease by several points during a day with low humidity and windy conditions. Avoid harvesting when beans are driest, such as on hot afternoons, to maintain moisture and reduce shattering losses.
   
-    Avoid harvest losses from shattering. Four to five beans on the ground per square foot can add up to one bushel per acre loss. If you are putting beans in a bin equipped for drying grain, start harvesting at 16% to 18% moisture and aerate down to 13%.

Finally, we know it's too late for this season, but next year select your varieties and schedule your planting to spread out plant maturity and harvest. Good luck and hopefully you'll harvest an excellent crop of 13% moisture soybeans.



DEADLINES APPROACHING TO APPLY FOR RESOURCE CONSERVATION FUNDS FROM NRCS
Farmers and ranchers interested in soil, water and wildlife conservation are encouraged to sign up now for the Environmental Quality Incentives Program (EQIP). EQIP is available from the USDA Natural Resources Conservation Service.  Those interested in applying are encouraged to sign up before Oct. 17, 2014.

EQIP is a voluntary conservation program available to private landowners and operators. Through EQIP, farmers and ranchers may receive financial and technical help to install conservation practices on agricultural land.

According to Craig Derickson, NRCS State Conservationist, there are several options available to producers through EQIP.

"EQIP is one of our most versatile programs. It offers cost share and technical assistance to apply conservation measures on cropland and rangeland, as well as for animal feeding operations and establishing or enhancing wildlife habitat. There are many opportunities available, and NRCS staff can help landowners and operators sort out their EQIP options,” Derickson said.

The Environmental Quality Incentives Program has become one of the most widely applied conservation programs in Nebraska; enrolling over 600,000 acres last year with more than 8 million acres currently under contract statewide. The goal of EQIP is to provide a financial incentive to encourage landowners to install conservation practices that protect natural resources, resulting in cleaner air and water, healthy soil and more wildlife habitat.

Individuals interested in entering into an EQIP agreement may file an application at any time, but the ranking of applications on hand to receive funding will begin Oct. 17, 2014. The first step is to visit your local NRCS field office and complete an application.

NRCS is also reminding producers who first participated in the Conservation Stewardship Program (CSP) in 2009 that they have until Sept. 12, 2014, to renew their contracts.

The Conservation Stewardship Program helps agricultural producers maintain and improve their existing conservation systems and adopt additional conservation practices. The program provides farmers and ranchers who are already established conservation stewards financial and technical assistance to further improve water quality, soil health and wildlife habitat on their farming and ranching operations.

About 20,000 CSP contracts nationwide are reaching the end of their initial five-year contract period. In Nebraska, there are 1,057 contracts that may be renewed for an additional five years where participants agree to install additional conservation measures.

“This program allows landowners to reach the next level of conservation and opens the door to trying new conservation activities,” Derickson said.

For more than 75 years, the Natural Resources Conservation Service (NRCS) has helped agricultural producers with conservation plans. NRCS Conservationists work with landowners on their farm or ranch to develop a conservation plan based on resource goals. Conservation planning assistance is free and does not require participation in financial programs.

For more information about the Environmental Quality Incentives Program, the Conservation Stewardship Program and other conservation programs, visit your local NRCS field office or www.ne.nrcs.usda.gov.



Sales Tax Exemption For Ag Repair Parts
Tina Barrett, Director, Nebraska Farm Business Inc.  

The Nebraska State Legislature passed LB 96 this year making the sales of all repair and replacement parts used to repair agricultural machinery and equipment exempt from sales tax. This legislation will go into effect on October 1, 2014.

Any repairs made prior to October 1, 2014 will still be subject to sales tax. Prior to that date, repairs that must be capitalized (put on your depreciation schedule) are still eligible for a refund. In other words, if you made a repair to a piece of farm equipment that substantially increased the value and life of the asset causing it to be classified as a capital purchase, you can file for a refund of the sales tax paid. This is the only way to get repairs free from sales tax prior to October 1, 2014.
Qualifying Assets

For repairs to be exempt from sales tax, the repair must be done on agricultural machinery and equipment used in commercial agriculture. To be defined as commercial agriculture, you "must be in the business of producing food products or other useful and valuable crops or raising animal life." This does include commercial production in greenhouses, nurseries, tree farms, sod farms and feedlots, but does not include commercial elevators or animals held in stockyards or sale barns. The asset itself must also be a qualifying asset. Those that qualify must be "tangible personal property that is used DIRECTLY in cultivating or harvesting a crop, raising or caring for animal life, or collecting or processing an agricultural product on the farm or ranch". This means assets such as four-wheelers, utility vehicles, lawn mowers and other farm assets that are not directly tied to production will not meet the exemption for sales tax.

Read More of Barrett's Cornhusker Economics article, including a list of what qualifies for the exemption and what doesn't, here.... http://agecon.unl.edu/cornhuskereconomics.



Iowa to Host Midwest-U.S. - Japan Association Conference

"Building a Robust and Sustainable Future" is the theme of the Midwest U.S.-Japan Association Conference, set for Sept, 7 to 9 in Des Moines, Iowa, at the Des Moines Marriott hotel.

For over four decades, business leaders from the Midwest region of the U.S. and Japan have met on an annual basis to discuss the growth and progress of economic relations of the American Midwest and Japan.

The conference typically attracts top-level speakers and representatives from member states. This year is no exception, with remarks scheduled from:
-- Hon. James R. Thompson, U.S. Conference Chairman, and former Governor of Illinois
-- Yuzaburo Mogi, Japan Conference Chairman, Honorary CEO and Chairman of the Board, Kikkoman Corporation
-- Gov. Terry E. Branstad, State of Iowa, Conference Host
-- Lt. Gov. Kim Reynolds, State of Iowa
-- Hon. Masaharu Yoshida, Consul General, Consulate General of Japan at Chicago
-- Gov. Dave Heineman, State of Nebraska
-- Gov. Kiyoshi Ueda, Saitama Prefecture
-- Gov. Jay Nixon, State of Missouri
-- Gov. Shomei Yokouchi, Yamanashi Prefecture
-- Gov. Mike Pence, State of Indiana
-- Gov. Rick Snyder, State of Michigan
-- Gov. Scott Walker, State of Wisconsin
-- Michael Beeman, Acting Assistant USTR for Japan, Korea, and APEC Affairs, Office of the U.S. Trade Representative (USTR)
-- H.E. Kenichiro Sasae, Japanese Ambassador to the United States
-- Hon. Kazuyuki Katayama, Consul General of Japan in Detroit

The full agenda for the conference can be found at www.midwest-japan.org/pages/agenda.aspx.



Iowa Soybean Association board of directors elects 2015 officers
Six farmers were elected to leadership positions at the Sept. 4 meeting of the Iowa Soybean Association (ISA) board of directors.

Tom Oswald of Cleghorn took his seat as president and Wayne Fredericks of Osage was elected president-elect. Jeff Jorgenson of Sidney was chosen as treasurer and Rolland Schnell of Newton was elected secretary. Ben Schmidt of Iowa City was also elected to the executive committee.

ISA directors re-elected John Heisdorffer of Keota to represent Iowa on the American Soybean Association (ASA) board of directors. Fredericks was elected to serve the remaining year of the vacant Iowa spot on the ASA board of directors.  To learn more about ISA, visit its website at www.iasoybeans.com.

“Iowa soybean farmers look to these leaders as they work to be more efficient and productive on their own farms,” said Oswald. “ISA plays an important role in agriculture, from state to national to international levels;  working to secure and strengthen new and existing markets for soybeans and support our farmers as they continue to be the leaders in national soybean production.”



Conservation, Energy Top Discussions at IFBF Policy Conference

Iowa Farm Bureau Federation (IFBF) voting delegates met in West Des Moines this week to develop policy direction on issues important to farmers and all Iowans. Topping discussion this year: the need to assess Iowa's watersheds to better understand conservation progress, and policies designed to solve energy transportation issues.

"Our members have a lot of interest in seeing wide adoption of conservation practices framed within the Nutrient Reduction Strategy, because even though the conservation strategy encourages voluntary implementation, that doesn't mean it's optional," said IFBF President Craig Hill.

Iowa's largest grassroots farm organization called for information to be collected to demonstrate the increased adoption of conservation practices that support the Iowa Nutrient Reduction Strategy, a plan which was designed by multiple environmental and farm group stakeholders and put in place a year ago.

"Farmers have shown great enthusiasm for this plan and have been putting record conservation measures in place to improve Iowa's soil and waterways," said Hill. "The best way to show what works best and what work remains is to assess the progress in our priority watersheds. We need to understand this, so we can better target scarce resources for the biggest impact possible. Farmers also care about who gathers that information and how it will be used. We believe the data needs to be developed to understand progress, where improvements have been made, and what work remains, while at the same time protect privacy and individually identifying information. After all, the overall goals of farmers and non-farmers have always been the same: to keep our land fertile, our farms sustainable and our water safe."

Energy policy also brought lively discussion to the 2014 Summer Policy Conference.

"Farmers want to make sure property rights and farmland productivity are protected when electrical transmission lines or pipeline projects are proposed. Our delegates reinforced these policy positions, recognizing that pipeline construction and maintenance should minimize damage to farmland, tile lines and conservation practices. At the same time, it is clear that Farm Bureau members support the growth of domestically-produced energy and the need to transport that energy to markets in and around Iowa. This is an issue that we have been working on with our members all along, encouraging transparency so farmers have all the facts before they make their individual decisions," said Hill.

The IFBF Summer Policy Conference is the culmination of a grassroots policy process in each of the 100 county Farm Bureaus across the state. National policies are subject to debate during American Farm Bureau Federation policy discussions, which will take place in San Diego in January.



Informa Predicts Bigger US Crops

Private analytical firm Informa Economics released two sets of crop production estimates on Friday. One reflects what it expects USDA to forecast in its supply and demand report next Thursday. The other incorporates acreage adjustments based on Farm Services Agency data.

USDA won't include FSA data in its analysis until October.

Informa expects UDSA to peg corn production at 14.28 billion bushels with a national average yield of 170.3 bushels per acre in its September WASDE report. That's higher than August's USDA forecast of 14.03 bb with an average yield of 167.4 bpa. The report noted that Illinois corn is expected to average 194 bpa.

On soybeans, Informa expects USDA to forecast a national average yield of 46.1 bpa, resulting in production of 3.816 bb. In August, USDA pegged soybean production at 3.816 bb with an average yield of 45.4 bpa.

The most notable state yield increases were in Nebraska at 54 bpa, up 2 bpa, and Iowa at 53 bpa, up 3 bpa. No state yield estimates declined.

The National Agricultural Statistics Service incorporates FSA-certified acreage data into its October report, after FSA's data set is mostly complete. FSA's report in August showed 4.4% of the data set is incomplete.



July Meat Export Volumes Lower, but Values Remain on Record Pace

U.S. red meat exports slowed in July, the first time this year that year-over-year export volumes were lower for both beef and pork. But 2014 exports remain on a strong pace, according to statistics released by USDA and compiled by the U.S. Meat Export Federation (USMEF).

July beef exports fell 15 percent in volume to 101,799 metric tons (mt), although this was in comparison to large totals in July 2013. July export value was steady at $621.7 million. For January through July, beef exports were still 4 percent higher in volume (687,752 mt) and remained on a record pace in value ($3.89 billion, +13 percent).

Pork export volume was down 3 percent in July to 173,270 mt, while value was up 14 percent to $573.5 million. For January-July, exports established a record pace in both volume (1.32 million mt, +7 percent) and value ($4.0 billion) – marking the first time pork export value has exceeded $4 billion before August.

U.S. beef performing well in key Asian markets
January-July beef exports equated to 14 percent of total production and 11 percent for muscle cuts only (these ratios were up slightly from a year ago). Export value per head of fed slaughter was $298.56 in July – down slightly from the June record but still up more than $25 year-over-year. For January-July, export value per head was $272.70, up $31.25.

“Demand for U.S. beef in Asian markets has continued to strengthen this year, adding further value to cuts that are popular there and underutilized domestically,” said USMEF President and CEO Philip Seng. “With our limited supplies, competition for these cuts among Asian buyers contributes greatly to U.S. cattle prices. USMEF continues to work with our industry partners to educate the trade about alternative cuts and merchandising ideas, so that we can deliver value to our Asian customers even in these times of historically tight supplies.”

January-July highlights for U.S. beef included:
-    Exports to South Korea totaled 65,792 mt (+12 percent) valued at $445.4 million (+41 percent) as demand for U.S. beef strengthened across all sectors and U.S. beef gained market share.
-    Despite slumping in July, exports to Hong Kong reached 81,372 mt valued at $564.6 million, up 35 percent and 53 percent, respectively.
-    While export volume to Japan was moderately lower, it remained the leading destination for U.S. beef exports in both volume (136,884 mt, -4 percent) and value ($860.8 million, +1 percent). Japan has been a difficult market for other suppliers this year, importing less beef from all other main exporters while U.S. beef continued to gain market share.
-    July exports to Taiwan increased 83 percent in volume (3,310 mt) and nearly doubled in value ($29.4 million, +96 percent), pushing year-to-date totals to 19,437 mt (+11 percent) valued at $162.2 million (+16 percent).
-    Though beef export volume to Mexico slowed modestly in July, export value for the month still reached $94.6 million (+4 percent). For January through July, exports to Mexico were up 23 percent in volume (136,200 mt) and 36 percent in value ($640.5 million). USMEF is concerned, however, about possible export data issues in the first half of 2013, which means that these year-over-year increases for Mexico could be overstated.

Pork exports held strong through July, despite record prices
January-July pork exports equated to 28 percent of total production and 23 percent for muscle cuts only – each up 2 percentage points from a year ago. July export value per head of slaughter was $67.81 – down from its record high in June but still up 23 percent from a year ago. January-July export value was up 21 percent to $64.45.

Seng noted that pork exports’ record pace in both volume and value so far this year was achieved despite record-high U.S. prices and intense competition in many key markets. High prices for domestic pork in most regions – other than Europe and China – also helped stimulate global demand for U.S. pork.

“Pork exports have overcome some severe price disadvantages this year, especially in Asian markets where we compete head-to-head with European pork,” he explained. “U.S. prices began to moderate in August, so these price gaps have now been narrowed or eliminated. Going forward, this should relieve some of the price pressure on U.S. exporters.”

Mainstay markets Japan, Mexico and South Korea, along with emerging markets such as Colombia, helped offset lower exports to China/Hong Kong. January-July highlights included:
-    Exports to Mexico remained well ahead of last year’s record pace, increasing 12 percent in volume (388,157 mt) and 38 percent in value ($887.1 million).
-    Despite a large increase in Japanese imports of European pork, U.S. exports performed well in leading value market Japan. Pork muscle cut exports to Japan reached 245,497 mt (+2 percent) valued at $1.13 billion (+5 percent).
-    A similar situation unfolded in Korea, where despite aggressive competition from the EU, total U.S. pork exports increased 31 percent in volume (83,149 mt) and 49 percent in value ($257.5 million).
-    Colombia is now the pacesetter for U.S. pork in the Central and South America region, with exports up 72 percent in volume (29,181 mt) and 88 percent in value ($80.8 million).

While Russia did not reopen to U.S. pork until early March, and then only to pork from two U.S. slaughter plants, exports through July still reached 32,163 mt valued at $116.7 million. In July alone, exports were 12,910 mt valued at $49.4 million. Exports to Russia were suspended on Aug. 7 due to Russia’s import ban on many agricultural products from the United States, Canada, the EU, Norway and Australia.

Lamb exports rebound in July, but still lower year-over-year
July lamb exports increased 3 percent in volume to 942 mt and hit their highest monthly value of the year at just under $3 million. For January through July, exports were still down 22 percent in volume (6,403 mt) and 5 percent in value ($16.8 million).

Demand in the Caribbean has shown a recent rebound, with exports through July reaching 420 mt (+27 percent) valued at $2.9 million (+20 percent). Exports were also higher to the United Arab Emirates, Saudi Arabia and Panama, partially offsetting lower totals for Canada.



Groups Release ‘Waters of the U.S.’ Mapping Tool

The National Pork Producers Council, along with other agricultural groups, today unveiled an interactive website that shows land likely to be regulated by the federal Clean Water Act (CWA) under a proposed rule from the U.S. Environmental Protection Agency and the U.S. Army Corps of Engineers.

Geosyntec Consultants, headquartered in Columbia, Md., used U.S. Geologic Survey data to develop maps of 17 states, depicting the areas that would fall under the jurisdiction of EPA and the Corps of Engineers if their “Waters of the United States” rule is finalized. Click here to view the maps... http://tinyurl.com/EPAWaters.

Currently, that jurisdiction – based on several U.S. Supreme Court decisions – includes “navigable” waters and waters with a significant hydrologic connection to navigable waters. The proposed rule would redefine “Waters of the United States” to include, among other water bodies, intermittent and ephemeral streams such as the kind farmers use for drainage and irrigation. It also would encompass lands adjacent to such waters or that fall within an expansive definition of flood plain.

Coverage areas would more than double in most of the 17 states, a separate analysis of the maps indicate. Almost the entire state of Missouri – and, potentially, all the activities in it – for example, would be subject to EPA and Corps of Engineers authority.

That power could include a requirement that farmers obtain CWA discharge permits for normal farming practices such as applying fertilizer, filling ditches and planting crops, NPPC and the agricultural organizations have pointed out. Among other concerns with the proposed rule, the groups said it was issued before EPA completed a study on the hydrologic connections between intermittent waters and wetlands and larger bodies of water.

NPPC will be submitting comments on the proposed rule by the Oct. 21 deadline.



CHS will boost diesel production with $406 million Montana refinery investment

CHS Inc., the nation's leading farmer-owned cooperative and a global energy, grains and foods company, announced today it will invest $406 million in its Laurel, Mont., refinery to boost efficiency and increase diesel production.

"These projects, along with all of our ongoing major refining, distribution and storage investments, underscore our continued commitment to building the CHS energy platform," said Jay Debertin, CHS executive vice president and chief operating officer, Energy and Foods. "We are dedicated to providing long-term dependable supplies of quality refined fuels products that help our owners and rural customers grow."

The investments consist of related projects, some of which will begin this fall, and are expected to be completed in phases through 2019. Included in the $406 million investment are:
-    A new hydrogen plant and crude unit modifications that will increase crude oil throughput and increase diesel production.
-    Hyrocracker modifications that will increase diesel production, reduce production interruptions, and allow the refinery to process additional crudes.

Debertin said the additional diesel production will help its growing network of Cenex® -branded marketers continue to capture growth opportunities resulting from robust diesel demand, particularly in the northern tier states.

With the addition of these projects, in recent years CHS will have invested nearly $2 billion in its operations based at Laurel and McPherson, Kan., including refinery ownership, production expansion and efficiencies; new and expanded terminals and storage; and an additional crude oil supply connection.

Debertin said when all current Montana and Kansas refinery projects are complete in 2019, total CHS refining capacity will increase by as much as 33 percent from 120,000 barrels per day to an estimated 160,000 barrels per day.



CHS to build fertilizer plant at Spiritwood, N.D.

CHS Inc. announced today it will proceed with construction of a fertilizer manufacturing plant at Spiritwood, N.D.

The CHS Board of Directors approved final plans for the approximately $3 billion project at its September meeting. Groundbreaking will take place following completion of additional details, with the plant intended to be fully operational in the first half of calendar 2018. When complete, the plant will employ 160-180 people.

"With this decision, CHS is taking an important, strategic step on behalf of its member-owners by ensuring them a reliable domestic supply of nitrogen fertilizers essential to help farmers raise healthy, profitable crops to feed a growing global population," said Carl Casale, CHS president and chief executive officer.

The fertilizer plant at Spiritwood will be the single largest investment in CHS history, as well as the single largest private investment project ever undertaken in North Dakota. "CHS is proceeding today as the plant's sole investor," said Casale. "However, because our owners' interests are at the heart of what we do, we will always pursue ownership of strategic assets and partnerships that will help us continually add value to their businesses."

Tim Skidmore, CHS executive vice president and chief financial officer, said, "CHS is a financially strong company with the balance sheet strength to undertake this significant investment. We believe this fertilizer plant will deliver solid returns on our owners' investment in addition to providing them with an essential crop input."

The CHS fertilizer plant will produce more than 2,400 tons of ammonia daily which will be further converted to urea, UAN and Diesel Exhaust Fuel (DEF). The majority of the nitrogen products from the plant will serve farmer-owned cooperatives and independent farm supply retailers within a 200-mile radius of the plant in the Dakotas, parts of Minnesota, Montana and Canada.

The plant will be located 10 miles northeast of Jamestown, N.D., on a 640-acre site near the Spiritwood Energy Park. When fully operational, it is expected to use an estimated 88,000 MM British thermal units/day of natural gas, 40 megawatts/day of electricity and 2,400-2,700 gallons/minute of water.

"Throughout plant construction and when operational, CHS is committed to stringent employee and community safety standards and has plans for a fully-trained, on-site emergency response team for fire and EMT services, along with an emergency response plan developed with community responders and safety systems for fail-safe shutdown," said Brian Schouvieller, CHS senior vice president, Ag Business.

CHS first announced its interest in building a fertilizer manufacturing plant in September 2012. In April 2014, the company postponed a final decision when construction and labor costs exceeded initial estimates.

"Because of the size and scale of this investment, we needed to take the additional time to review costs and reassess areas where we could make modifications," Casale said. "We are now fully prepared to proceed with an investment that will add tremendous value to our member-owners, and further expand our global crop nutrients business platform."



NMPF Launches Online Calculator to Help Farmers Select Coverage Levels under New Dairy Safety Net

The National Milk Producers Federation today launched an online, downloadable calculator to help farmers select coverage levels under the new federal dairy safety net, known as the Margin Protection Program for dairy (MPP). The calculator is located at www.futurefordairy.com/mpp-calculator.

The calculator allows farmers to enter their own milk production and commodity price data to gauge the new program’s likely impact on their operations. It complements a similar tool created by a consortium of land grant universities that is available through the Agriculture Department website.

A key difference between the two tools is that NMPF’s is available both online, and as a downloadable Excel file. Also, while the USDA tool is pre-programmed with market forecasts from the Chicago Mercantile Exchange, the NMPF tool allows farmers to input their own projections for milk as well as corn, soybean meal and alfalfa hay prices.

“Dairy farmers must make some important decisions in the coming weeks about how best to use the new insurance program,” said Jim Mulhern, President and CEO of NMPF. “This calculator, along with the other informational tools that NMPF has prepared, will help them learn about the program and make the best choices for the future.”

The calculator and other tools are available at www.futurefordairy.com, which is serving as NMPF’s information hub for the Margin Protection Program, as well as at www.nmpf.org.

NMPF was instrumental in crafting the new safety net over the last five years. It developed the program after extensive discussions with farmers in 2009 and 2010 and then worked with Congress to include the plan in the 2014 farm bill. More recently, NMPF worked closely with the Agriculture Department on implementation issues for the program.

USDA formally unveiled the MPP in August. A three-month sign up period opened September 2, with farmers having until Nov. 28th to obtain coverage either for the remainder of 2014, all of calendar year 2015, or both.

The new safety net helps protect against the kind of catastrophic losses many dairy farmers experienced in 2009 and again in 2012 by limiting volatility in producer margins caused by either low milk prices, high feed costs or a combination of both.

Producers will insure their operations on a sliding scale, deciding both how much of their milk production to cover and how much of a margin to protect. Basic margin insurance at $4 per hundredweight is available for a $100 registration fee. Above the $4 level, a premium is required.

The NMPF online MPP calculator comes with a printable instruction manual.

NMPF also is preparing a narrated slide presentation to walk through the entire MPP program. That video presentation will be available next week, also at www.futurefordairy.com.



Vermeer Introduces First Fully Continuous Round Baler
Determined to keep operators moving forward in the field in order to boost productivity and save time, Vermeer has introduced the first fully continuous round baler (CRB). Developed in conjunction with agriculture innovator Lely Group, the new CRB concept machine allows two bales to be formed simultaneously, enabling the operator to continually move forward without having to stop and wait for a finished bale to eject before moving on to the next bale.

“When operators must stop and wait for each bale to eject, that eats up a lot of time that, when you add it all up, could be devoted to another field or another task,” said Jason Andringa, President of Forage and Environmental Solutions at Vermeer Corporation. “Continuous baling will help operators become more productive, so they can produce the same, if not more, bales in the same amount of time, and with fewer balers and operators in the field.”

A simple, yet innovative design allows the CRB concept machine to shape two bales simultaneously. As the first bale nears its desired size, it is guided back toward the bale ramp. At the same time, the next bale begins to take shape near the feed intake. Once the finished bale is ejected, the next bale moves into the main chamber for completion. This process is repeated continuously until the job is done.

“Stopping, waiting and starting again takes a toll on the operator,” said Andringa. “So in addition to improving productivity and saving time, continuous baling also helps to reduce operator fatigue.”

According to Alexander van der Lely, CEO of Lely Group, continuous round baling is something hay and forage producers worldwide are ready for. “No matter where you are, there is a certain window of opportunity to perform baling and forage harvesting to create the right feed for cattle. The continuous round baler allows you to bale more bales, with the right quality, in the narrow window of opportunity you have,” said van der Lely.

The CRB is still in the development phase. According to Andringa, an official launch date has yet to be determined. Initial field tests, however, have produced positive results.