Thursday October 30 Ag News

Average Crop Revenue Election Set for Certain 2013 Crops

U.S. Department of Agriculture (USDA) Farm Service Agency (FSA) State Executive Director Dan Steinkruger announced that FSA has begun distributing Average Crop Revenue Election (ACRE) payments for revenue losses associated with certain crops in Nebraska. Discontinued by the 2014 Farm Bill, the ACRE program provided producers with protection from revenue losses for crops grown in 2009-2013.

Crops eligible for October payments in Nebraska include wheat, grain sorghum, dry peas and irrigated barley grown during the 2013 crop year. The Budget Control Act (sequestration) passed by Congress in 2011 requires these payments to be reduced by 5.1 percent.

Nebraska ranks as one of the top states for participation in ACRE, with just over 17,000 farms enrolled in the program. Payments were issued under the program last year for drought losses to non-irrigated corn, soybeans and other crops grown in 2012. The ACRE program was discontinued by the Agricultural Act of 2014 (Farm Bill) which established two new programs -- Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC). Farmers will be making decisions regarding their election into these programs beginning November 17, 2014.

For more information on 2013 ACRE payments, producers should contact their local FSA office or visit FSA's website at www.fsa.usda.gov/ne. 



Scientific Climate Info Now Available for Northern Plains
Justin Derner, Northern Plains Regional Climate Hubs

This fall, ranchers, farmers, and land managers in the Northern Plains from Bartlett, Neb., to the Wind River Indian Reservation in Wyoming will be making decisions that will affect their operations in the coming year. Land managers often consider markets, weather and changing climatic conditions using data and information from various sources including newspapers and popular press publications, Cooperative Extension agents, State Climatologists, and the Internet.

With the recent launch of the USDA Northern Plains Regional Climate Hub website, ranchers, farmers, and land managers have a new source for region-specific, science-based information, practical management and conservation strategies, and decision-support tools. The national Hubs site features links to the latest climate news, events, thematic climate highlights (e.g. Croplands, Forestland, Grazing Lands and Livestock) as well as educational materials, factsheets, and regional contact information.

The collaborative efforts of the USDA Northern Plains Regional Climate Hub encompass agencies both within and outside of USDA. The Northern Plains hub is located at the Agricultural Research Service Plains Area Office in Fort Collins, Colorado and key partners include the USDA National Agroforestry Center, Cooperative Extension at the University of Wyoming, Colorado State University, University of Nebraska-Lincoln, South Dakota State University, North Dakota State University, and Montana State University. The hub is undertaking educational curriculum development with Wyoming Agriculture in the Classroom, and closely coordinating with the North Central Climate Science Center, the National Drought Mitigation Center, the National Integrated Drought Information System, the High Plains Regional Climate Center, and Western Water Assessment.



2014 ELAP Enrollment Closes Nov. 3

Producers are reminded that the enrollment deadline for the 2014 Emergency Assistance for Livestock, Honeybees and Farm-Raised Fish Program (ELAP) is Nov. 3. The deadline for 2012 and 2013 ELAP has already passed. The 2014 Farm Bill designated ELAP as a permanent disaster program and provides retroactive authority to cover losses that occurred on or after Oct. 1, 2011.

ELAP provides emergency assistance to eligible producers of livestock, honeybees and farm-raised fish that have losses due to disease, adverse weather, or other conditions, such as blizzards and wildfires. ELAP assistance is provided for losses not covered by the Livestock Forage Disaster Program (LFP) and the Livestock Indemnity Program (LIP). For 2014 program year losses, the notice of loss and an application for payment must be submitted by Nov. 3.

For more information, producers can review the ELAP Fact Sheet on the Farm Bill webpage. Producers are encouraged to make an appointment with their local FSA office to enroll in ELAP.



Country of Origin Labeling Reform Coalition Sends Letter to Congress Asking for Immediate Action

Please be advised that the COOL Reform Coalition sent this letter to Congress at 10:00 a.m. Eastern today.  It is signed by 109 stakeholders.


October 30, 2014

TO THE MEMBERS OF THE UNITED STATES CONGRESS:

The undersigned stakeholders are gravely concerned about the negative impact that the existing U.S. Mandatory Country of Origin Labeling (COOL) rule for muscle cuts of meat will have on the U.S. economy. On October 20, 2014, a World Trade Organization (WTO) Compliance Panel released a report determining that the rule violates obligations the United States has undertaken as a member of the WTO with regard to our two largest export markets, Canada and Mexico. While there is an opportunity for the United States to appeal this decision, final adjudication should occur in early 2015. At that time, if the Compliance Panel's original findings are found to be valid, both Canada and Mexico could subject an array of U.S. exports to retaliatory tariffs. A finding of non-compliance would surely result in serious economic harm to U.S. firms and farmers that export to our neighbors.

Canada has already issued a preliminary retaliation list targeting a broad spectrum of commodities and manufactured products that will affect every state in the country. Mexico has not yet announced a preliminary retaliation list, but has implemented retaliatory tariffs in the past which may be indicative of future tariff opportunities. It is expected that U.S. industries would suffer billions in lost sales if retaliation is allowed. We invite you to review the state-by-state retaliatory analysis available at www.COOLReform.com.

Given the negative impact on the U.S. manufacturing and agriculture economies, we respectfully submit that it would be intolerable for the United States to maintain, even briefly, a rule that has been deemed non-compliant by the WTO. With little potential for quick Congressional action after a WTO final adjudication, we request that Congress immediately authorize and direct the Secretary of Agriculture to rescind elements of COOL that have been determined to be non-compliant with international trade obligations by a final WTO adjudication. Such action by Congress would not undermine COOL to the extent COOL is consistent with international trade obligations nor would it weaken the U.S. defense of COOL in WTO litigation.

Thank you for your attention to this very important matter and for protecting American food production, agriculture and manufacturing from economic harm.

Sincerely,
Abbott
Agri Beef Co.
Altrius Group, LLC
American Bakers Association
American Beverage Association
American Chamber of Commerce of Mexico, A.C.
American Feed Industry Association
American Frozen Food Institute
American Fruit and Vegetable Processors and Growers Coalition
American Meat Institute
American Peanut Product Manufacturers, Inc.
American Seed Trade Association
American Soybean Association
Anheuser-Busch
Animal Health Institute
Appvion
Archer Daniels Midland
Auto Care Association
California Chamber of Commerce
California Cherry Export Association
California Pear Growers Association
California Table Grape Commission
Campbell Soup Company
Cargill, Incorporated
The Coca-Cola Company
ConAgra Foods, Inc.
Consumer Electronics Association
Corn Refiners Association
Dart Container Corporation
Dr Pepper Snapple Group
Emergency Committee for American Trade (ECAT)
Fashion Jewelry and Accessories Trade Association
Food & Consumer Products of Canada
Food Marketing Institute
General Mills
Georgia Food Industry Association
Glanbia USA
Grocery Manufacturers Association
Hawaii Food Industry Association
Herbalife Ltd.
The Hershey Company
Hills & Company
Hilmar Cheese Company Inc.
H.J. Heinz Company
Hormel Foods Corporation
Independent Bakers Association
Information Technology Industry Council (ITI)
Ingredion Incorporated
International Dairy Foods Association
International Franchise Association
International Sleep Products Association
Kellogg Company
Kraft Foods Group, Inc.
The Latino Coalition
Leprino Foods Company
Louisiana Retailers Association
Mars, Incorporated
Metals Service Center Institute
Midwest Food Processors Association
Mondelez Global LLC
National Association of Egg Farmers
National Association of Manufacturers
National Beef Packing Co., LLC
National Cattlemen's Beef Association
National Confectioners Association
National Corn Growers Association
National Council of Farmer Cooperatives
National Foreign Trade Council
National Grain and Feed Association
National Grocers Association
National Oilseed Processors Association
National Pork Producers Council
National Renderers Association
National Retail Federation
Nestlé USA
Nestlé Waters North America
North American Equipment Dealers Association
North American Export Grain Association
North American Meat Association
Northwest Food Processors Association
Northwest Horticultural Council
NPES The Association for Suppliers of Printing, Publishing and Converting Technologies
Peanut and Tree Nut Processors Association
Penford Products Co.
Pennsylvania Food Merchants Association
PepsiCo
Pet Food Institute
Produce Marketing Association
Red Gold, Inc.
Remy International, Inc.
Roquette America
Sargento Foods Inc.
The Schwan Food Company
Smithfield Foods
Snack Food Association
Sweetener Users Association
Tate & Lyle Americas
Transportation Intermediaries Association
Tyson Foods, Inc.
Unilever
United Egg Producers
United Producers, Inc.
United States Council for International Business
U.S. Chamber of Commerce
U.S. Premium Beef
USA Rice Federation
The Walter Bagehot Council
WineAmerica
Wine Institute



College Aggies Online Individual Winners to Receive Full Scholarship to 2015 Collegiate Congress

The College Aggies Online (CAO) program, an initiative led by the Animal Agriculture Alliance, announces the addition of a full scholarship to AgChat Foundation’s 2015 Collegiate Congress scheduled for January 17-18, 2015. The CAO is a nationwide scholarship program aimed at helping college students and collegiate agriculture clubs unitize social media and community engagement to share agriculture’s story.

The CAO competition is held every fall, running approximately 11 weeks between September and November. An online competition, CAO is open to all college students with an interest in agriculture. Since the competition’s inception in 2009, more than 1,500 college students from more than 100 different colleges and universities have participated in the program.

This year the CAO program has teamed with the AgChat Foundation (ACF) as partners in the 2015 Collegiate Congress event which will be held at Dow AgroSciences headquarters in Indianapolis. In addition to monetary scholarships in the amount of $5,000.00 and $2,500, respectively, the top two individual winners will each be rewarded will an all expenses paid trip to attend the Collegiate Congress.

The ACF’s 2015 Collegiate Congress is the first of its kind, and aims to challenge passionate, agriculture college-students from across the U.S. to expand their social media experiences and shorten the bridge between consumers and their food. The event will include sessions on what consumers see and hear, how social media can be improved to tell a story when you are living on campus and away from the farm, how to use blogging, and what it means to make a consumer connection, both on and offline. Attendees can expect a strong focus on networking with other students and exchanging ideas on how to connect with fellow non-agriculture students on their campuses.

In addition, students will learn more about connecting agriculture to consumers through an optional tour of Fair Oaks Farm in Fair Oaks, Indiana. The tour is scheduled for Sunday, January 18 and will include the dairy adventure, pig adventure and the cheese and yogurt factory. Lunch is included at the Cheese Factory Cafe, which offers soups, grilled cheese sandwiches made with Fair Oaks cheese, and Fair Oaks ice cream. The tour will provide a hands-on look at how Fair Oaks creates unique visibility of dairy and pork farming.

“We are excited to be teaming with the College Aggies Online program on the 2015 National Collegiate Congress. As we build a solid foundation for our youngest agvocates, developing alliances with other like-minded programs is essential,” stated AgChat Foundation’s Executive Director Jenny Schweigert. “This year’s College Aggies Online program includes some of the best of the best of college advocates. We are delighted to further their experiences by hosting the top two individual winners of the College Aggies Online competition.”

With support from Dow AgroSciences, National FFA and Animal Agriculture Alliance, the National Collegiate Congress will bring together 165 students to learn about extending their abilities to connecting with consumers.

Learn more about the event at http://agchat.rocks/indy/. Early bird registration ends November 30. To learn more about the College Aggies Online program visit http://www.animalagalliance.org/connect/#collegeaggies.



CLARIFIDE from Zoetis Packs More Information into Latest Version
New advancements by Zoetis to its CLARIFIDE® genomic test will give producers new tools to predict future performance. More markers, new genetic conditions, Holstein coat color outcomes and a proprietary polled test highlight new test features available in October.

“Recent advancements to the CLARIFIDE test will help dairy producers discover new opportunities to advance their herd’s genetic potential through more advanced genetic decisions,” says Dr. Sue DeNise, executive director, Zoetis research and development genetics research. “These advancements by Zoetis signify our commitment to ongoing research and product development that benefits dairy producer profitability.”

The new technology inherent in the CLARIFIDE test includes the following:
·         More markers. The number of markers increases from 12,000 to nearly 19,000 markers, with reliability comparable to other low density assays on the market. More than 17,500 markers are reported to the Council on Dairy Cattle Breeding (CDCB), with the remainder used by Zoetis in other research and development efforts.
·         More genetic conditions, haplotypes and milk components with genotype results. These new advancements make the results official for specific breeds. Previously, some breed associations did not recognize haplotype data as official results.
·         New coat color outcomes. CLARIFIDE now provides coat color identification solutions to Holstein producers to help them meet their goals to add red color to their herd.
·         A new polled test proprietary to Zoetis for Holstein and Jersey cattle.

The results of the new assay will be reflected in animals that are included in the USDA-CDCB October reporting period for animals tested with CLARIFIDE. Information is available at Clarifide.com regarding haplotype vs. gene-based results, coat color and the polled test.

“Dairy producers have made Zoetis’s CLARIFIDE the most widely used genomic test in all U.S. dairy animals in 2014 thus far,” says Cheryl Marti, senior marketing manager, dairy genetics and reproductives at Zoetis.1 “We’re proud of the paradigm-changing genetic strategies we’ve helped dairy producers adopt through education, industry partnerships and development of modeling tools. This coupled with our unmatched technical support helps turn genomic data into meaningful, useful and profitable results for dairies.”



Bunge Agribusiness Sales Fall 8.2%

Bunge Ltd. said sales in its main agribusiness segment fell 8.2% in the latest quarter, as the decline in commodity prices resulted in slow farmer selling.

One of the largest grain handlers in the world, White Plains, N.Y.-based Bunge buys, sells, stores and transports oilseeds and grains world-wide, among other businesses.

Earlier this year, the company benefited from a strong crop season and increased demand. However, in the latest quarter, the downward shift in commodity prices dented results in the agribusiness segment.

"The transition from tight to plentiful global grain and oilseed supplies, highlighted by falling prices and some of the slowest farmer selling in recent memory in South America, created a challenging market environment," Chief Executive Soren Schroder said.

Sales in the agribusiness segment--the company's largest business by revenue--fell to $9.84 billion from $10.72 billion a year earlier.

For the quarter ended in September, Bunge reported a profit of $294 million, compared with a loss of $148 million a year earlier. On a per-share basis, which includes certain dividend payments, the profit was $1.90, compared with a loss of $1.13. Excluding certain gains and charges, the company recorded a profit from continuing operations of $1.31 a share in the latest quarter, down from $1.89.

Sales declined to $13.68 billion from $14.7 billion a year earlier.



BASF Report Higher Sales, Income

In the third quarter of 2014, BASF observed declining demand in the chemicals business and in the Agricultural Solutions segment. But sales grew by 3% compared with the previous third quarter, reaching €18.3 billion.

A sharp rise in volumes in the Natural Gas Trading business sector was mainly responsible for this growth, which was slowed by a drop in oil and gas prices. The company raised income from operations before special items by €150 million to around €1.8 billion.

The primary contributors to this development were the Chemicals and Oil & Gas segments, together with Other. The increase was dampened by a considerable earnings decline in the Agricultural Solutions segment.

Meanwhile, sales volumes grew compared with the third quarter of 2013. This was largely on account of a sharp increase in volumes in the Natural Gas Trading business sector.

In the Agricultural Solutions segment, sales were slightly below the level of the third quarter of 2013. Price increases in all regions were unable to compensate for a drop in sales volumes. Earnings fell significantly.



DuPont Reports Operating Earnings Up 20 Percent

DuPont announced third quarter 2014 operating earnings of $0.54 per share compared to $0.45 per share in the prior year. GAAP1 earnings per share were $0.47 versus $0.28 last year. Consolidated sales were $7.5 billion, 3 percent below last year, reflecting portfolio changes, as price, volume and currency were in line with the prior year period.

"In the third quarter, we improved our operating margins in five of seven segments and grew operating earnings per share 20 percent, despite a weaker Ag environment and sluggish economic growth in most of the world," said DuPont Chair and CEO Ellen Kullman. "Our increase in margins in a slow growth environment reflects the momentum we are building as we execute our plan, which is driving new products, portfolio enhancements and a broad initiative to redesign our operating model with a smaller cost base and a simplified support structure. We are positioning DuPont for our next stage of growth, while increasing returns to our shareholders."

Third quarter 2014 net sales of $7.5 billion were 3 percent below last year due to portfolio changes. Increased volumes were offset by a decrease in local selling prices. The table below shows third quarter regional sales and variances versus third quarter 2013.

Agriculture -- A seasonal operating loss of $55 million improved $7 million, or 11 percent, due primarily to lower seed input costs and operating cost improvements, partially offset by lower sales and the absence of the prior year $26 million gain from the acquisition of a controlling interest in Pannar. Increases in insecticide and fungicide volumes, mainly in Latin America, were more than offset by lower corn seed and herbicide volumes and lower corn seed price.

For the fourth quarter, the company expects sluggish growth in the global economy, along with continuing headwinds in agriculture and from currency. However, the company remains confident in its ability to create higher value from its portfolio while continuing to deliver against cost productivity and corporate initiatives. Overall, the company expects fourth quarter operating earnings per share to grow about 20 percent from last year's $0.59 per share, matching the growth rate the company achieved in the third quarter, and bringing full year 2014 operating earnings within its previously communicated outlook range of $4.00 - $4.10 per share.



CME Earnings Rise 23%

CME Group Inc. said its earnings rose 23% as trading volume picked up in the third quarter.

The company's profit exceeded expectations.

CME Group (CME), which is the largest futures exchange operator in the world in terms of contracts traded, posted a 12% increase in trading volume during the period, reflecting an average of about 13.5 million contracts a day. CME said interest rate volume rose 23% to a daily average of 7.2 million contracts.

Overall, CME Group posted earnings of $290 million, or 86 cents a share, up from $597.9 million, or 71 cents a share, in the prior-year period. Excluding items, the company's per-share earnings were 84 cents.

Revenue rose 6.7% to $762.4 million.