Friday October 17 Ag News

Heineman & Ag Leaders Encourage Nebraskans to Pump E85

Governor Dave Heineman and state ag leaders are encouraging Nebraskans to utilize E85 fuel the next time they are at the gas pump with a flex fuel vehicle. To help located E85 filling stations, new phone apps are available for Nebraskans.

The Governor was joined by Nebraska Agriculture Director Greg Ibach, Tim Scheer Chair of the Nebraska Corn Board and Todd Sneller Executive Director of the Nebraska Ethanol Board to discuss the economic impact of the ethanol industry in Nebraska.

“E85 allows consumers to utilize a quality Nebraska grown and produced product,” Gov. Heineman said. “E85 continues to gain popularity across our state and country – allowing us to continue to reduce our dependence on foreign oil.”

There are currently 86 E85 filling locations in Nebraska. E85 is a blend of fuel including 85 percent ethanol and 15 percent unleaded gasoline. Flex fuel vehicles can operate on any blend of ethanol and ordinary unleaded gasoline up to 85 percent ethanol. There are approximately 180,000 flex fuel vehicles registered in Nebraska. Approximately one in ten drivers owns a flex fuel vehicle.

Nebraska is the second largest ethanol producer in the nation. Nebraska is home to 24 operating ethanol plants that produce nearly 2 billion gallons of ethanol annually. These plants employ around 3,000 people across the state. Ethanol production also provides an additional marketing opportunity for Nebraska’s 23,000 corn producers.

“As our corn producers work to harvest their crops this year, they are met with a number of challenges including wet fields that delayed harvest. There is also a larger than anticipated domestic corn inventory from last year’s harvest, which has forced corn prices to some of the lowest levels we’ve seen recently,” Dir. Ibach said. “Nebraska’s ethanol plants are providing our corn producers with additional opportunities to sell their grain and in return Nebraska is gaining a tremendous renewable fuel source.”

Gov. Heineman encouraged the nearly 180,000 flex fuel vehicle owners in Nebraska to continue to support the ethanol industry by purchasing E85 for their vehicles, and using new phone apps to locate E85 availability. Two apps are available for android and apple operating systems. The “Flex-Fuel Station Locator” app was developed by the Renewable Fuels Association. This app allows consumers to find the most up-to-date E85 locations across Nebraska and the United States. The “Flex Finder” app assists in locating the nearest E85 pumps and allows consumers to search a database of vehicles capable of operating on different blends of ethanol.

“The number of E85 pumps across Nebraska continues to grow, and there are phone apps that make it easy for consumers to find the pumps nearest them,” Gov. Heineman said.

Nebraska is well positioned for continued success with key industries creating the “Golden Triangle.” In industry terms, the Golden Triangle refers to the interconnectedness between the corn, ethanol and cattle feeding sectors. All three work together to create increased value for the raw corn commodity, as after corn is processed into ethanol and the important byproduct, distiller grains, is a quality livestock feed used by Nebraska’s vast cattle feeding sector.

This year Nebraska became the number one cattle feeding state in the nation. According to the Nebraska Corn Board, Nebraska also produced a record corn crop last year and is on pace for the second largest crop this year at an estimated 1.58 billion bushels. Ethanol production consumes approximately 32 percent of Nebraska’s corn supply annually, and livestock consuming approximately 25 percent.

“I’d like to thank Gov. Heineman and Director Ibach for their efforts in promoting renewable fuels and E85,” said Tim Scheer, a farmer from St. Paul, Nebraska and Chair of the Nebraska Corn Board. “In Nebraska, our economy is strengthened by agriculture, especially through our Golden Triangle of corn, ethanol and livestock. The synergy of these industries expands demand for Nebraska corn, provides a valuable feed product for our livestock industry and offers economical, renewable fuel choices for our consumers.”

“Nebraska’s economy is deeply interwoven with the ethanol sector,” said Todd Sneller, Nebraska Ethanol Board Executive Director. “Nebraska is currently producing 250 percent of its motor fuel needs in the form of ethanol. Recent University of Nebraska studies describe a significant economic bounce in the state’s economy when the ethanol sector is fully operational. It is in the best interests of Nebraskans and Americans to insist on wise state and federal fuel standards that support domestically produced and renewable fuel sources like E-85.”  

For more information, please visit www.nebraskacorn.org and www.ne-ethanol.org. Omaha metro area pump location is available at www.E85Omaha.com.



"AgriFuture 2014" Conference Oct. 28-30

Agriculture producers, students, agribusinesses and policy leaders are invited to the first "AgriFuture" conference in Nebraska on Oct. 28-30 in Kearney.

Students and faculty from the Nebraska College of Technical Agriculture at Curtis, Neb., will be among participants in the multi-state event, said Paul Clark, NCTA agribusiness management systems professor and division chair.

NCTA joins University of Nebraska-Lincoln Extension, the Wyoming Department of Agriculture and others in coordinating the event at the Younes Conference Center in Kearney.  Jeremy Sievers of the NCTA agribusiness faculty is part of the 2014 AgriFuture host committee.

AgriFuture comes to Nebraska after the first four sessions met in Wyoming where Director of Agriculture Jason Fearneyhough launched the annual event. Over the years, it gained momentum with attendees from several states and Canada.

"We sought to bring together the experience and wisdom of agricultural producers, businesses and policymakers with the creative and innovative ideas and energy of our future generations in agriculture," said Fearneyhough.

The fall semester timing of the workshops works well for college students who are moving into the workforce or production enterprises upon graduation next spring, said Clark.

"In the past four years, the conference has enhanced communications, mentorships, student internships and job opportunities," Clark said.  Students have opportunities to network with producers, employers and agricultural companies, and to attend the trade show and job fair.

Participants will be drawn to national speakers, who include:
 – Michael Scuse, under secretary for farm and foreign Agricultural Services at the U.S. Department of Agriculture
 – Trent Loos, Loos Tales radio personality of and ag producer from Loup City, Neb.
 – Andy Vance, agriculture journalist with Feedstuffs and entrepreneur from Ohio

Breakout sessions will feature agriculture awareness, natural resources, local/global agriculture, trends in agriculture, and financial resources presented by:
– Dee Griffin, DVM, Great Plains Veterinary Educational Center, Clay Center, Neb.
– Gary Lesoing,  UNL extension educator in Nemaha County and Sustainable Agriculture Research and Education representative for Nebraska
– Allen Vyhnalek, UNL extension educator, Platte County, Neb.
 – Vaughn Hammond of Union Orchard, Union, Neb.

Conference pre-registrations are requested but will also be taken at the door.  Register at https://2014agrifutureconference.eventbrite.com. For more information, visit http://agriculture.wy.gov/directors-office/agrifuture.



Latest PEDv Research:  PEDV Survivability in Manure

Thanks to Pork Checkoff-funded research led by Steve Tousignant, a veterinarian and epidemiologist at Swine Veterinary Center in St. Peter, Minn., we now know that Porcine Epidemic Diarrhea Virus (PEDV) can survive in manure for at least four months.

While the research trial showed there could be potentially less live virus in manure pits that originally suspected, 15 percent of the barns tested positive for live virus - meaning that producers should remain vigilant in their manure-handling protocols to reduce risk of spreading the virus further.

Specifically, the researchers advocate that producers start any manure pump-out procedures from sites that haven’t had an outbreak first, followed by barns with the longest time post-PEDV infection all the way to ones with the most recent PEDV infection last. This is the same protocol often advised for manure from herds with other diseases such as Porcine Respiratory and Reproductive Syndrome (PRRS).

As always, communication with neighboring swine farms is crucial, especially when manure has to be applied to nearby sites.

The National Pork Board and the U.S. Department of Agriculture provided funding for this project.

Feed Biosecurity Remains Top Priority
Pork producers should maintain strict protocols on all feed ingredients and feed handling even though a recent study by the World Health Organization (OIE) found that spray-dried blood plasma is not likely a carrier of Porcine Epidemic Diarrhea Virus (PEDV).

“The feed system may be a risk factor for transmitting PEDV,” said Paul Sundberg, vice president of science and technology for the National Pork Board. “Feed may be a carrier of PEDV from post-processing contamination even if it ’s not as an ingredient contaminant itself.”

In a fact sheet by the OIE, the organization reiterated that an animal-feed supplement is not likely to transmit PEDV if manufacturers follow proper safety measures. The Pork Checkoff is funding multiple feed-related studies and also reminds producers to follow feed biosecurity practices when feed trucks come to the farm.



Americans Increasingly Prefer Pork
Call it pork power. More American consumers are reporting an enduring love for pork, and more of them are also buying pork, according to new research.

More U.S. consumers rate their enjoyment of pork higher than in previous studies, according to new research findings released by the Pork Checkoff.  Also, consumer-buying habits measured by the U.S. Department of Agriculture (USDA) also show more consumers are buying pork.

“People are becoming more passionate about their consumption of pork,” said Iowa Pork Producers Association President-elect David Struthers, a pork producer from Collins. “These studies confirm that consumers are eating more pork in recipes and as a menu item because of its value, flavor and versatility.”

The tracking study indicates the size of the Pork Checkoff's consumer target market has grown to 43 percent of U.S. households, up seven points from 36 percent in May 2013, the last time the survey was fielded. In 2010, the consumer target was just 27 percent of U.S. households. Growth in the target size is attributed to people rating pork cuts higher, as well as their confidence in cooking meat.

The study also found that a majority of all fresh pork eaten - 84 percent at home and 80 percent away from home - is consumed by consumers in the Pork Checkoff's target market. The total percent of pork eaten by the consumers grew significantly since the Pork Be Inspired® campaign was introduced in 2011.

“The industry is beginning to see the impact of new marketing campaigns,” Struthers said. “We’re making a distinct difference in the marketplace and in how American consumers view and buy pork.”

Pork Rates an Eight (or Higher)
Consumers taking part in the recent Pork Checkoff study were asked to rate pork cuts on a 10-point scale, resulting in a demonstrated increase in the volume of consumers who rank pork as an eight or higher. Survey respondents were representative of the U.S. population for gender, age, ethnicity and income, Struthers noted.

The tracking study results are further reinforced by the Pork Checkoff's key measure of domestic marketing, which is real per capita consumer pork expenditures. Using USDA data, consumer pork expenditures measure the volume (in pounds) and value (in dollars) of pork sold in the United States. Data through May 2014 showed year-to-date per capita pork expenditures grew by 7.5 percent.

The consumer tracking study also asked pork eaters, “Other than price, what most influences your meat-purchasing decisions?” The top three drivers of meat purchases are quality (63 percent), followed by appearance (50 percent) and convenience (32 percent).

Pork scores high on these key areas, Struthers said. “Across the board, consumers are buying more pork from stores and foodservice outlets, which is great news.”



Informa predicts record US soybean acres in 2015

Farmers will likely shift acres from corn to soybeans in 2015 because of the more favorable economics, a report from private analytical firm Informa Economics said.

Informa forecasts corn acreage will decline 3.1 million acres from 2014 to 87.8 ma, while soybean acreage will climb 4.3 ma to 88.5 ma.

Informa said that using its acreage projections and assuming normal abandonment and trendline yields, corn production comes in at 13.4 billion bushels and soybean production at 3.9 billion bushels.

Its acreage analysis for row crops was largely based on a profitability analysis and economic and weather conditions.

“Of the major row crops, soybeans continue to have the highest implied net revenue return per acres,” Informa stated. A chart indicated soybeans’ annual planning net revenue is about $200 per acre while corn’s is about $29 lower. “Compared with last season, the current incentive to plant corn is lower. As a result, Informa expects that most acres shifted from corn will be planted to soybeans. Informa expects some cotton acreage to shift to soybeans as well due to the economic incentive to plant soybeans relative to cotton.”

Informa also released its forecast for wheat acreage based on its surveys, and it’s little changed from 2014. Overall acreage was estimated at 56.4 ma, about 400,000 acres less than last year. Hard red winter wheat acreage dropped about 300,000 acres to 30.3 ma while soft red winter wheat acreage is expected to total 8 ma, down 238,000 acres.



Energy for growing and harvesting crops is a large component of farm operating costs
Susan Hicks, US Energy Information Administration

The U.S. agriculture industry used nearly 800 trillion British thermal units (Btu) of energy in 2012, or about as much primary energy as the entire state of Utah. Agricultural energy consumption includes energy needed to grow and harvest crops and energy needed to grow livestock. Crop operations consume much more energy than livestock operations, and energy expenditures for crops account for a higher percentage of farm operating costs.

Agricultural energy consumption includes both direct and indirect energy consumption. Direct energy consumption includes the use of diesel, electricity, propane, natural gas, and renewable fuels for activities on the farm. Indirect energy consumption includes the use of fuel and feedstock (especially natural gas) in the manufacturing of agricultural chemicals such as fertilizers and pesticides.

Energy makes up a significant part of operating expenditures for most crops, especially when considering indirect energy expenditures on fertilizer, because the production of fertilizer is extremely energy-intensive, requiring large amounts of natural gas. For some crops like oats, corn, wheat, and barley, energy and fertilizer expenditures combined make up more than half of total operating expenses. The proportion of direct to indirect energy use varies by crop. For example, corn, which is also used as an energy input for ethanol production, has relatively low direct fuel expenditures but has the highest percentage of fertilizer expenditures.

The energy consumed in livestock operations is almost solely direct energy consumption and is relatively low compared with crop operations, both as a percentage of total operating expenditures and on a total energy basis. Livestock operations consume direct energy for ventilation systems, refrigeration, lighting, heating, watering, motors, and waste handling, whereas crop operations use energy to plant, harvest, irrigate, and dry crops. The energy consumed in the production of livestock feed is not included in this analysis of livestock energy consumption.

Distillate fuel is the dominant fuel for direct energy consumption for both livestock and crop operations. Distillate is used for crop tilling, harvesting, weed control, and other operations that require heavy machinery. Crop drying is another fuel-intensive farm activity, and the amount of fuel used varies by the type of crop and its moisture content. High-temperature dryers are powered by either electricity or propane.

Supplying water can also be an energy-intensive task. Although some farms have access to public water supplies, most farms pump water from wells and groundwater sources. Most pumping is done with electricity, but pumps in remote locations may use diesel or propane.

The chemicals used by the agricultural industry are a subset of the bulk chemical industry and include fertilizers and pesticides. Nitrogenous (ammonia-based) fertilizers require large amounts of natural gas as a feedstock and provide heat and power for processing. EIA's 2010 Manufacturing Energy Consumption Survey estimates that the U.S. nitrogenous fertilizer industry consumed more than 200 trillion Btu of natural gas as feedstock in 2010 and another 152 trillion Btu for heat and power.

In addition to being major energy consumers, some farms are using renewable resources to produce energy. Wind turbines, methane digesters, and photovoltaics are the most common on-farm renewables. Renewable energy can help to offset the need for purchased energy. In some cases, the renewable energy produced on farms is sold to electric power suppliers, providing additional income for farmers.



Yara, CFI Abandon Merger Talks

(AP) -- Norway's Yara International and Deerfield, Illinois-based CF Industries have abandoned merger talks that would have created a massive player in the fertilizer industry.

Both companies say discussions have been terminated because they couldn't agree on terms acceptable to all shareholders.

A merger would have created a combined company with a market capitalization of more than $26 billion and annual sales of about $20 billion.

Torger Kvidal, the CEO of Yara International ASA, said Friday that despite significant synergies, "in the end it became clear that we would not be able to agree on terms that would be acceptable to all stakeholders."

Yara has a broad, global presence, with facilities and warehouses in dozens of countries and sales to more than 150 countries. CF concentrates on nitrogen fertilizer manufacturing and distribution.



2014 World Food Prize Honors Wheat Researcher

The 2014 World Food Prize was presented to Dr. Sanjaya Rajaram in Des Moines, Iowa on Thursday for his scientific research that led to a prodigious increase in world wheat production. His breakthrough breeding technologies have had a far-reaching and significant impact in providing more nutritious food around the globe and alleviating world hunger.

Dr. Rajaram is the former colleague of the Prize’s founder Dr. Norman Borlaug and worked closely with Dr. Borlaug throughout his career in genetics and agricultural science.

“It is inspiring to see a wheat researcher awarded the 2014 World Food Prize. It is even more exciting to meet the young innovators and grower-leaders of tomorrow and see that the future of wheat research and Dr. Borlaug’s legacy is in good hands,” commented NAWG first vice president Brett Blankenship, a wheat grower from Washtucna, Wash. who was in attendance the evening of the ceremony. “This has been a great year for advancing wheat, all around the world, and I believe that this next year will be even better.”

Thanks to wheat research breakthroughs, wheat is a staple food for people worldwide, accounting for 20 percent of the world’s caloric intake.

As a the winner of the 1970 Nobel Peace Prize, Dr. Borlaug understood the value that a sustainable and flexible food supply played in ensuring peace for an increasingly populous world. This year marks the 100th anniversary of Dr. Borlaug’s birth. He is credited with sparking the Green Revolution and saving more than 1 billion people from starvation through his development of high yielding, semi-dwarf wheat.



USGC Promotes U.S. Sorghum in Japan

Consumers in Japan are among the most health conscious in the world, and the U.S. Grains Council actively promotes the health benefits of consuming food sorghum from the United States in this market. Last week, the U.S. Grains Council participated in the Health Ingredients Show in Japan, showcasing food products made from U.S. sorghum.

“Colored sorghum from the United States contains antioxidants,” said Tommy Hamamoto, USGC director in Japan. “Those products are really good for the Japanese market where consumers are extremely health conscious.”

During the show, the Council also demonstrated food products made from white sorghum. Hamamoto believes U.S. white sorghum food products will gain popularity in the Japanese market.

“The Health Ingredients Show spanned three days, and approximately 30,000 people visited the USGC booth,” Hamamoto said. “Our goal is for activities like this to drum up new business and sales for U.S. sorghum for food use.”



Become BQA Certified For FREE Through October 31
The countdown has begun for beef and dairy producers to become BQA certified for free through October 31. And, as an added bonus, anyone who becomes certified during this period is eligible to win a new cooler and grilling package, courtesy of Boehringer Ingelheim Vetmedica, Inc. and the checkoff-funded Beef Quality Assurance (BQA) program.

Boehringer Ingelheim Vetmedica, Inc. will pick up the $25-$50 certification fee for beef or dairy producers who are interested in becoming certified or recertified during this period. Visit www.BIVI-BQA.com to take advantage of the open certification period.

The winner of the cooler and grilling package will be drawn from anyone who is certified between September 1-October 31. Watch for an announcement of the winner on Facebook. To be eligible for more prizes during the Countdown to Quality event, like Boehringer Ingelheim Vetmedica’s Facebook page BIVI Prevention Works and follow our daily posts or follow #FreeBQA on Twitter.

"We are honored to be able to support the cattle industry through this sponsorship," says Steve Boren, Executive Director of the U.S. Cattle and Equine Business Segments for Boehringer Ingelheim Vetmedica, Inc. "BQA education aligns with Prevention Works, our focus of preventing disease in cattle. We do this because it is the right thing for the animal, for the producer and for the consumer."



Rapid intensification of Brazilian beef production to continue

In response to rising global beef demand, Brazil is set to step up the rapid intensification of its beef production sector over the next ten years, enabling the industry to expand into higher-value export markets. According to its latest report “Beefing up in Brazil: Feedlots to Drive Industry Growth,” the Rabobank Food & Agribusiness Research (FAR) and Advisory group expects Brazil’s feedlot capacity to more than double to 4.5 million head, turning out over 9 million head of fed cattle annually, and increasing fed beef production by approximately 2.5 million tons per year by 2023.

“The opportunities for Brazilian beef producers, feeders, processors and exporters appear very bright,” explained Rabobank Analyst Adolfo Fontes. “Expected improvements in productivity and quality in the beef industry will help Brazil increase its presence in high-value export markets such as Europe, Japan and Korea.”

Brazil is already the world’s second-largest beef producer and the largest exporter. However, the industry remains relatively inefficient by global standards, with below-average sector productivity and yield parameters, suggesting significant opportunities exist for improvement.

The outlook for global beef demand in the next decade is promising, as economic and population growth in developing countries leads to a dietary shift towards higher-protein content meals.

“Brazil is uniquely positioned to fulfil this need, due to the country’s unmatched potential for expanding corn and soybean production—the two most universally-used ingredients for animal rations,” explained Rabobank Analyst Renato Rasmussen.

However, the report anticipates major changes in beef cattle management and nutrition, will be required, with producers firmly gravitating towards more intensive production systems. Growing pressure for environmental sustainability, competition for agricultural land area with grain crops, and the need for scale in order to compensate for high basis and lower margins, are imposing significant efficiency and growth constraints on pasture-bred beef production.

The answer to Brazil’s need to grow beef production is the intensification of the finishing stage through beef cattle feedlots. The report predicts intensification will see overall beef production grow at 3.2 percent CAGR over the next decade. Feedlots—as well as other higher-technology beef production systems—will allow cattle to be slaughtered younger and heavier, resulting in increased yields and productivity, as well as improved product consistency and quality.

Currently, less than 10 percent of Brazilian beef is raised in feedlots. Rabobank estimates that the total investment needed to increase the current feedlot capacity by 2.5 million head is between USD 250 million to USD 500 million.