Tuesday October 28 Ag News

Heineman Announces Knox County Designated Livestock Friendly

Today, Gov. Dave Heineman announced the official designation of Knox County as Nebraska’s newest county to receive the Livestock Friendly County designation through the Nebraska Department of Agriculture.

“The designation of Knox County as Livestock Friendly is another reason why Nebraska is the number one cattle feeding state in America,” said Gov. Heineman. “Agriculture is our state’s most important industry, and livestock production is an essential part of our success. Being part of the Livestock Friendly program is significant and it is a great way to recognize the tremendous positive impact the livestock industry has on Main Streets and the local economy.”

With the addition of Knox County, there are now 28 counties designated as Livestock Friendly through the state program. Knox County joins Adams, Banner, Box Butte, Cuming, Dawes, Dawson, Deuel, Dodge, Gage, Garden, Grant, Hitchcock, Holt, Jefferson, Johnson, Kimball, Keith, Lincoln, Merrick, Morrill, Otoe, Pawnee, Saline, Scotts Bluff, Sheridan, Wayne and Webster counties.

Gov. Heineman presented the Livestock Friendly certificate to Knox County Supervisors Marty O’Connor, Virgil Miller, Norman Mackeprang, James Sokol Jr., Patrick Liska, Danny Schlote and Jim Fuchtman.

Knox County will receive road signs bearing the program logo to display along highways. The state program is coordinated by the Department of Agriculture.

Department of Agriculture Assistant Director Bobbie Kriz-Wickham said the official designation makes a positive statement about each county’s commitment to rural economic development through livestock production. “It is clear from the submitted materials that county officials have given some purposeful thought to supporting the livestock industry. We are pleased to welcome Knox County into the program.”

To apply for a livestock friendly county designation, the county board must hold a public hearing and pass a resolution to apply. A completed application is then submitted to Department of Agriculture for review. Local producers or community groups can encourage their county board to submit a livestock friendly county application.

Additional information on the Livestock Friendly County program is available by contacting the Nebraska Department of Agriculture toll-free at 800-422-6692, or by visiting the Department of Agriculture website at www.nda.nebraska.gov and clicking the Livestock Friendly County link.



On-Farm Research Helps Growers Generate Results

As corn and soybean growers work to get crops out of the fields this fall, next year's growing season may not be the first thing on their minds.  However, Laura Thompson, UNL Extension educator, said harvest is the ideal time to consider how on-farm research could benefit their operations.

"Harvest provides a great opportunity to think through production-related questions and determine what practices and inputs should be evaluated next year," Thompson said. "Did that new product or extra application of fertilizer or water pay off?  How does a grower know if the investment was profitable for their specific operation? With lower commodity prices, it is more important than ever to evaluate if production inputs and practices are really paying off."

The Nebraska On-Farm Research Network (NOFRN) provides an opportunity for growers to get questions answered about their own fields. Research typically is conducted with the producer's equipment, on the producer's land and using the producer's management practices.

NOFRN is sponsored by University of Nebraska-Lincoln Extension in partnership with the Nebraska Corn Growers Association, the Nebraska Corn Board and the Nebraska Soybean Board. The goal of the network is to put to use a statewide on-farm research program addressing critical farmer production, profitability and natural resources questions.

Keith Glewen, UNL Extension educator, has worked with farm operators conducting on-farm research for many years.

"The farm operator makes the final decision as to the research topic to be evaluated," Glewen said. "We encourage growers to give careful thought as to what production practice may be limiting profitability or could enhance the use of soil and water resources on their farm."

Some current research topics include irrigation management, planting populations, nitrogen management and cover crops.

For more information on the project or how to participate, contact Glewen at 402-624-8030, kglewen1@unl.edu, a local UNL Extension office, the Nebraska Corn Board at 402-471-2676, Nebraska Corn Growers Association at 402-438-6459 or the Nebraska Soybean Board at 402-441-3240.

The NOFRN website is at cropwatch.unl.edu/farmresearch.



Green Plains Reports Third Quarter 2014 Results

Green Plains Inc. (Nasdaq:GPRE) announced today its financial results for the third quarter of 2014. Net income for the quarter was $41.7 million, or $1.03 per diluted share, compared to net income of $9.4 million, or $0.28 per diluted share, for the same period in 2013. Revenues were $833.9 million for the third quarter of 2014 compared to $758.0 million for the same period in 2013.

"The strength in our businesses continues as Green Plains has generated over $320 million of EBITDA over the last four quarters," said Todd Becker, President and Chief Executive Officer. "We continue to execute our business strategy, take advantage of the current ethanol industry environment and look for opportunities to further our growth."

During the third quarter, Green Plains had record production of 246.9 million gallons of ethanol, or approximately 96% of its daily average production capacity. Non-ethanol operating income from the corn oil production, agribusiness, and marketing and distribution segments was $22.2 million in the third quarter of 2014 compared to $14.2 million for the same period in 2013. Non-ethanol operating income for the nine-month period ended September 30, 2014 was $79.9 million compared to $52.7 million for the same period in 2013.

Revenues were $2.4 billion for the nine-month period ended September 30, 2014 compared to $2.3 billion for the same period in 2013. Net income for the nine-month period ended September 30, 2014 was $117.3 million, or $2.90 per diluted share, compared to net income of $17.9 million, or $0.56 per diluted share, for the same period in 2013.

"U.S. ethanol production margins continue to reflect strong demand, both domestically and globally. As a result of this environment, we are reaffirming our mid-year guidance of stronger earnings per share performance in the second half of 2014," added Becker.

Green Plains had $414.3 million in total cash and equivalents and $167.7 million available under committed loan agreements at subsidiaries (subject to borrowing base restrictions and other specified lending conditions) at September 30, 2014. Third quarter 2014 EBITDA, which is defined as earnings before interest, income taxes, depreciation and amortization, was $91.4 million compared to $37.4 million for the same period in 2013. For the nine-month period ending September 30, 2014, EBITDA was $260.0 million compared to $92.7 million for the same period in 2013. For reconciliations of net income to EBITDA, see "EBITDA" below.

Third Quarter 2014 Business Highlights
-    In August 2014, Green Plains announced a share repurchase program of up to $100 million of its common stock. Green Plains may repurchase shares from time to time in open market transactions, privately negotiated transactions, accelerated share buyback programs, tender offers or by other means. The timing and amount of repurchase transactions will be determined by the Company's management based on its evaluation of market conditions, share price, legal requirements and other factors. No shares have been repurchased pursuant to this program to date.
    
-    In September 2014, Green Plains paid a quarterly cash dividend of $0.08 per share on its common stock. The cash dividend was a 100% increase from the previous quarterly cash dividend. On a year-to-date basis, Green Plains has paid $5.9 million in dividends to shareholders.



Valmont Announces Third Quarter 2014 Results

Valmont Industries, Inc., a leading global provider of engineered products and services for infrastructure and mechanized irrigation equipment for agriculture, reported third quarter sales of $765.7 million compared with $778.0 million for the same period of 2013. Third quarter 2014 operating income was $87.8 million versus $109.9 million in 2013. Third quarter net income was $23.6 million versus $56.5 million in 2013, or $0.92 in diluted earnings per share compared to $2.10 in 2013. Third quarter net income per diluted share as adjusted for significant non-recurring items was $1.92 for the 2014 third quarter and $2.41 for the 2013 third quarter.

The Company completed a refinancing of its long-term debt in the third quarter. The Company issued $250 million of 5.0% senior notes due 2044 and $250 million 5.25% senior notes due 2054. A portion of the proceeds from the sale of the notes were used for a partial tender offer to repurchase approximately $200 million of existing senior notes that are due in 2020. The tender offer resulted in a non-recurring expense of $38.7 million ($24.2 million or $0.95 per diluted share after tax for the quarter). Last year's third quarter included an $8.3 million, (or $0.31 per diluted share) reduction in net earnings arising from a change in the U.K. tax rate. (See Regulation G reconciliation table on last page.)

For the first nine months of 2014, sales were $2,360.0 million versus $2,476.3 million in 2013. Valmont's nine month net earnings were $143.5 million, or $5.43 per diluted share, compared with 2013 nine month net earnings of $223.6 million, or $8.31 per diluted share. Nine month net income per diluted share as adjusted for significant non-recurring items was $6.53 for the 2014 third quarter and $8.46 for the 2013 third quarter.

"It was a particularly weak quarter in the Utility Support Structures Segment. Underutilization of capacity and price weakness in certain markets led to a 59% decline in segment profitability. We expect significant fourth quarter revenue and profitability improvements compared with third quarter results," said Mogens C. Bay, Valmont's chairman and CEO. "Profitability improved in the Engineered Infrastructure Products Segment, benefiting from acquisitions and continuing operational improvements. In the Irrigation Segment, operating income remained strong at 15.4%, somewhat lower than last year's exceptional third quarter results. International Irrigation sales and profitability improved. The Coatings Segment operating income was a solid 20.2% despite reduced volumes in Australia. Consolidated operating income was 11.5% of sales, compared with last year's record third quarter result of 14.1%."

-- Engineered Infrastructure Products Segment (37% of 3rd Quarter Sales)

Lighting, traffic and highway safety products, wireless communication structures and components, industrial gratings, access systems and wind energy and oil and gas exploration applications in global markets.

Third quarter sales were $294.9 million, a 13.3% increase over 2013. Sales gains were supported by the addition of $41.3 million in revenue from the March 2014, acquisition of Valmont-SM, a European manufacturer of offshore structures and components for the wind and energy industries.

In North America, sales of lighting and traffic structures increased, while sales of wireless communication products were slightly lower.

In Europe, lighting and traffic structure sales were lower in all regions except the U.K.

In the Asia-Pacific region, engineered access system sales were comparable to last year, with improved activity in Southeast Asian markets offsetting declines in Australia due to mining weakness. Highway safety product sales improved. In China, wireless communication structure sales were higher and intercompany utility sales declined.

We are pleased with the improved segment results especially in light of constrained spending on infrastructure due to economic weakness in Europe, a decline in the mining sector in Australia, a reduced pace of economic growth in China, and the lack of a new highway bill in North America. Longer term, we believe the pace of investment in infrastructure should increase, since infrastructure spending contributes to the growth of an economy, global competitiveness and employment.

Operating income increased 29% to $33.2 million, or 11.3% of segment sales. The increase was the result of operational improvements and the contribution from Valmont-SM. In addition, a $4.3 million accrual made for contingent purchase consideration at the time of the Locker acquisition was reversed during the third quarter.

-- Utility Support Structures Segment (23% of 3rd Quarter Sales)

Steel and concrete structures for the global electric utility industry.

Sales of $181.2 million were 21% lower than 2013, due to a reduction in North American volumes, including lack of large projects. The resulting sales mix included a greater proportion of smaller projects, which are subject in some cases to highly competitive pricing.

Capacity added in the industry last year has relieved extreme tightness in the structures market, bringing supply into better balance with demand, resulting in increased price competition in some market segments.

The long term drivers of North American utility demand remain in place. There is a need to upgrade transmission infrastructure to meet the goals of improved reliability and increased capacity. Alternative energy sources drive additional needs for transmission capacity. These factors, combined with a regulatory environment that encourages greater investment in the transmission grid should lead to continued demand for Valmont's utility support structures.

Utility Support Structures Segment operating income declined 59% to $17.0 million, or 9.4% of segment sales. The decrease in operating income was due to reduced volumes and related deleverage of fixed operating costs, a less favorable sales mix, and a more competitive pricing environment.

-- Coatings Segment (11% of 3rd Quarter Sales)
Hot-dip galvanizing, and other coatings to protect against corrosion of steel and aluminum in global markets.

Global Coatings Segment sales of $86.7 million were 3% lower than last year.

Operating income of $17.6 million was 11% below last year at a solid 20.2% of segment sales, despite increased zinc costs and weakness in Australia. The reduction in operating income was due to volume declines and the associated fixed cost deleverage in Australia. Benefitting third quarter operating income were $2.5 million of insurance proceeds related to a fire at a facility last year.

-- Irrigation Segment (22% of 3rd Quarter Sales)
Center pivot and linear move mechanized irrigation equipment and parts for agriculture in global markets.

Irrigation Segment sales were virtually unchanged from last year at $174.3 million. Sales in North American markets declined modestly, offset by increased international sales.

International demand improved, benefitting from broad geographic coverage and increased investments in farm productivity.

The long term drivers of demand for irrigation equipment remain quite strong, as global population growth and changing dietary preferences increase the demand for food. Mechanized irrigation equipment is a vital part of the solution to global water and food challenges with its ability to significantly reduce the amount of water used in agriculture and improve farm productivity.

Operating income declined 14% to $26.9 million, or 15.4% of segment sales. The decline in operating income was primarily due to the slightly lower sales in North America and the associated deleverage of fixed factory and SG&A costs.

"In the Utility Support Structures Segment, we expect significant fourth quarter sales improvements and a return to double digit operating income percent, compared to the third quarter, although well below last year's fourth quarter levels. This is supported by our existing backlog and current order flow. In the Irrigation Segment, the fall harvest is not complete and until then, growers are not inclined to visit dealers, resulting in a later start to the selling season. We expect our earnings per diluted share for the year will be in the range of $8.55 to $8.65 per share, which includes the impact of share repurchase, excludes the $0.18 year-to-date fair value adjustments for Delta EMD and excludes the $0.91 year-to-date expenses associated with our debt refinancing," concluded Mr. Bay.



IFB, UI Announce Nov. 1 America Needs Farmers Game Activities

The Iowa Farm Bureau and Iowa Hawkeyes are teaming up to celebrate Iowa's farmers for the fourth annual ANF Game Day Nov. 1 when the UI football team entertains Northwestern in a college football game that will kick off at 11:00 a.m. inside historic Kinnick Stadium in Iowa City.

As in the past, the celebration of America's -- and Iowa's -- farmers will begin with a long list of activities for friends and fans of the Hawkeyes inside and around the Iowa Farm Bureau's ANF Legends Tent inside Krause Family Plaza located immediately south of Kinnick. Fans will have the opportunity to meet Iowa farmers and their families, win prizes in the ANF tailgate toss and high striker games, and meet and secure autographs from a variety of former Hawkeyes including 2014 ANF Wall of Honor honoree Bruce Nelson (click here to hear from Bruce bit.ly/10vmtdl), Pat Angerer, Dallas Clark, and Allen Reisner in addition to radio voices of the Iowa Hawkeyes, Gary Dolphin and Ed Podolak. The tent will be open from 8 to 10:30 a.m. with the autograph session running from 8:30 to 10 a.m.

"The ANF program and great role models like Bruce are so important to reaching new audiences who want to understand more about how their food is grown today. Bruce has the character it takes to get the job done and embraces the hard work it takes to succeed, both on the farm and on the football field. We are so proud to have him join our team, to help share that farming perspective," said Craig Hill, president of the Iowa Farm Bureau Federation (IFBF).

"There are a lot of similarities between farming and football," Nelson said. "In football, you're in a three-point stance and your face is about two feet from the dirt all the time. In farming, you're not much further away from that. You're always working with what the environment gives you: you practice in the sun, snow, or rain. You farm in all those conditions, too. In football, there is always something new; you have new opponents and teammates. In farming, there is something new to do every day. About the time you get bored planting corn you go into side dressing or spraying."

Nelson was a first-team All-America center in 2002 when Iowa shared the Big Ten Conference championship and advanced to the 2003 FedEx Orange Bowl. He was a four-time letter winner for the Hawkeyes beginning in 1999, a period that saw Iowa advance from one victory in the 1999 season to 11 victories and a perfect 8-0 record in Big Ten play in 2002.

Nelson was a captain of that championship team and earned first-team All-Big Ten honors. He was selected by the Carolina Panthers in the second round of the 2003 NFL Draft and played professionally for two seasons before being sidelined by injury. He was Carolina's starting center in Super Bowl XXXVIII, a 32-29 loss to New England.

The ANF Wall of Honor salutes former University of Iowa football student-athletes who exemplify the tenacity, work ethic, and character of the Iowa farmer, qualities that have helped Iowa remain one of the leading agricultural states in the nation.

"The symbol ANF represents a lot to me," Nelson said. "I remember when I was a kid and Hayden Fry put it on the helmets of the Iowa football team. That was my first memory and it was special. I knew that the 80s were a tough time for farmers, especially for my dad, uncle, and grandpa. It was a time when they needed support, because there wasn't a lot of financial support going on. When that (sticker) showed up on the helmets, it was special, especially for me growing up on the farm."

ANF-theme activities inside the stadium will include a special ANF presentation by the Hawkeye Marching Band during its pregame show, the UI's second double-sided "card stunt" that will include an ANF-theme design that will be displayed during the singing of "God Bless America" by Miss Iowa, Aly Olson of Des Moines, and the on-field introduction of Nelson, who, after retirement from the NFL, returned to his hometown of Emmetsburg, Iowa to farm.

On game day, ANF Farm Strong merchandise will be available at Herky's Locker Room locations around the stadium with a portion of the proceeds from the sale of ANF Farm Strong merchandise going to support the Iowa Food Banks. Since the IFBF and UI teamed up for the ANF initiative, more than $70,000 has been donated to the Iowa Food Bank Association.

ANF was first launched during the Hawkeyes' 1985 Rose Bowl season by Coach Hayden Fry when the Farm Crisis of the 1980's was hitting the Heartland exceptionally hard. For more information about ANF and Game Day activities, visit www.americaneedsfarmers.org.



Research Proposals Sought to Target Porcine Epidemic Diarrhea Virus

Zoetis is seeking proposals for well-defined studies that focus on optimizing the immune response of sows and gilts for the control of Porcine Epidemic Diarrhea virus (PEDv). The studies should provide insights into new methods that can help control PEDv in breeding and farrowing herds.

Zoetis will award a total of $125,000 to a study or studies under its PEDv immune response research grant program. University researchers or practicing veterinarians are invited to submit research proposals for consideration.

“There is a critical need to better understand immune response to help control PEDv,” said Steve Sornsen, DVM, senior director, Veterinary Business Solutions, Zoetis. “At Zoetis, we are absolutely committed to solutions for our customers to help fight PEDv, and that includes ongoing research to help identify new insight and tools.”

Research proposals must be received by Dec. 5, 2014. The research must be conducted in the United States. To receive a copy of the abstract template or to submit questions, email PEDvResearch@zoetis.com. A committee will review the proposals, and an announcement of the successful applications will be made in January.

Since PEDv was confirmed in the United States last year, the disease has devastated the pork industry, with cases confirmed in 31 states thus far.



CattleFax Announces Agenda for Outlook & Strategies Seminar

The potential for the beef cattle industry to rebuild and expand the cowherd has not been this strong in more than 20 years. Likewise, cheaper feedstuff prices and robust protein demand are fueling expansion efforts in the pork and chicken segments.

Beef industry participants will feel the far-reaching influence of livestock expansion well beyond 2015. CattleFax will discuss those implications in detail during its Outlook & Strategies 2015 Seminar on Tuesday, December 2, 2014.

The event’s keynote speaker is Jan Lambregts, Global Head of Financial Markets Research for Rabobank International. He will share his thoughts on what factors will shape the U.S. and global economy in 2015. Art Douglas, Ph.D., Professor Emeritus of the Atmospheric Science Department at Creighton University, will discuss weather patterns and trends expected for 2015 and beyond.

The CattleFax team will share its expectations on the major trends that will shape the livestock, grain, protein and energy markets over the next 12 to 24 months. Discussions will highlight …
-    U.S. livestock and feedstuff production scenarios and expansion implications
-    Domestic wholesale and retail protein market demand considerations
-    Global supply and demand drivers for agricultural products
-    Strategies to grow profits and manage risk in an expansion-era livestock market
-    Forecasts for 2015 prices in the calf, feeder cattle, fed cattle and beef markets

Seminar discussion will include topics such as beef cowherd expansion, cheaper feedstuffs, energy market price changes, feedyard and packing segment overcapacity, protein market trends, interest rate expectations and world trade policy.

The Marriott Denver South at Park Meadows in Littleton, Colo., is the seminar headquarter hotel. Seminar cost is $325 per person and includes a pre-seminar networking reception on the evening of Monday, December 2. Registration is open, but space is limited.

Interested participants can visit www.CattleFax.com/meetings.aspx for more information and to download a registration form. Questions regarding the seminar can be answered by calling 800-825-7525 or e-mailing leigh@cattlefax.com.



NCBA and PLC Tell EPA: Don't Drown Land Owners in Regulatory Flood

Today, the National Cattlemen’s Beef Association and the Public Lands Council filed comments calling for the immediate withdrawal of the Environmental Protection Agency and the Army Corps of Engineers’ proposed “waters of the United States” rule. The proposed rule vastly expands the agencies’ jurisdiction and attempts to regulate all land uses.

“The agencies’ proposal jeopardizes private property rights and violates Supreme Court precedent by subjecting nearly all waters to regulation,” said NCBA Environmental Counsel Ashley McDonald. “Through the use of broad and ambiguous language, the proposal is a limitless expansion of authority that cannot be supported by the Clean Water Act or the U.S. Constitution.”

In the eight months the proposal has been public, cattlemen and women have voiced their concerns only to have them deemed “ludicrous” by EPA Administrator Gina McCarthy. NCBA and PLC state the agencies must start over with a transparent and inclusive process with more stakeholder involvement.

Dustin Van Liew, Public Lands Council executive director, added that while there is a need for clarification, this attempt by the EPA and the Corps will only add layers of bureaucracy and subjectivity to the Clean Water Act, further muddling the landscape.

“The proposed rule places no limit on the federal government’s authority over water, violating the Clean Water Act as articulated by the Supreme Court, and will eviscerate over a century of settled water law in much of the country,” said Van Liew. “Contrary to the agencies' claims, the exclusions and exemptions in the proposal are unclear and provide the livestock industry no certainty.”

McDonald added, “Through this process, cattlemen and women have learned one thing; the only thing that is completely unregulated is the arrogance of the EPA.”

The EPA and Corps are required by law to consider public comment; therefore it is imperative livestock producers voice their opposition to this land grab either online or by sending the original and three copies of your comments to: Water Docket, Environmental Protection Agency, Mail Code 2822T, 1200 Pennsylvania Avenue NW., Washington, DC 20460, Attention: Docket ID No. EPA-HQ-OW-2011-0880.



Fertilizer Prices Continue on Steady Trend

Prices of retail fertilizer tracked by DTN for the fourth week of October continued on a steady trend with very little price movement.

No types of fertilizer had any significant increases or decreases in prices compared to a month ago. Five of the eight major fertilizers had only slightly higher prices compared to a month earlier while the other half were very slightly lower.

DAP, MAP, potash, 10-34-0 and anhydrous were only slightly higher in price compared to a month previous, while urea, UAN28 and UAN32 were a tiny bit lower.

DAP had an average price of $582 per ton, urea $507/ton, UAN28 $327/ton and UAN32 $369/ton. MAP had an average price of $599/ton, potash $477/ton, 10-34-0 $557/ton and anhydrous $697/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.55/lb.N, anhydrous $0.42/lb.N, UAN28 $0.58/lb.N and UAN32 $0.58/lb.N.

Seven of the eight major fertilizers are higher in price compared to October 2013, all while commodity prices are significantly lower from a year ago. Urea is now up 15% compared to a year earlier followed by DAP, which is 11% more expensive.

In addition, 10-34-0 is up 7%, while anhydrous and MAP are both up 6%. Also, UAN28 and UAN32 are both just 1% higher.

Potash remains the only nutrient which is still lower compared to retail prices from a year ago, coming in at about 3% lower than a year ago.



Voters give a strong "Yes!" to biodiesel policy

Policies supporting biodiesel production would win a resounding vote of confidence if they were on the ballot in next week’s elections, according to a nationwide survey released Tuesday.

Three out of four voters (75 percent) support a tax incentive for biodiesel, the survey found. Seventy-six percent said they support a national renewable fuel standard. The survey of nearly 1,200 registered U.S. voters was conducted by Moore Information Opinion Research between Sept. 30 and Oct. 2. It was commissioned by the National Biodiesel Board (NBB).

“These numbers reflect overwhelming public support for developing cleaner, alternative fuels so that we’re not so dangerously dependent on petroleum,” said Anne Steckel, NBB’s vice president of federal affairs. “These policies are popular because they are effective. We’re gradually reducing our dependence on oil. We’re reducing harmful and costly pollution. And we’re creating jobs and economic activity at home. Congress and the Obama administration should take cues from the people who elected them and step up to make sure we have strong, stable policies supporting biodiesel production.”

Biodiesel – made from a variety of resources including soybean oil, recycled cooking oil and animal fats – is the first EPA-designated Advanced Biofuel to reach commercial-scale production nationwide. With plants in nearly every state in the country, the industry had a record U.S. market last year of nearly 1.8 billion gallons. According to the EPA, biodiesel reduces greenhouse gas emissions by 57 percent to 86 percent compared with petroleum diesel.

Nonetheless, the EPA late last year proposed holding biodiesel production under the Renewable Fuel Standard (RFS) at 1.28 billion gallons, well below actual 2013 production. The proposal, seen as a retreat from the RFS by the Obama administration, has shaken the U.S. biodiesel industry and caused many companies to pull back production and lay off employees. With just a few months left in the year, the EPA has still not finalized the standard, leaving the industry with tremendous uncertainty and instability.

At the same time, Congress allowed the $1-per-gallon biodiesel tax incentive to expire at the end of 2013 and has failed to reinstate it despite broad bipartisan support. House and Senate leaders have expressed hope that Congress will pass an extension in the lame duck session after the elections.

“This is one of those issues that illustrates why voters are so fed up with Washington,” Steckel said. “You have policies with overwhelming support from the public and strong bipartisan support in Congress, yet Washington seems paralyzed with inaction. Jobs are at stake here, and we urge the Obama administration and Congress to act quickly to get this industry back on track.”

Among other findings in the survey, 85 percent of respondents said a candidate’s position on energy issues was somewhat important or very important in their voting decision, and 78 percent said a candidate’s position on alternative fuels was very important or somewhat important.



Growth Energy Announces Multi-Year Support, Presents Workshops during 87th National FFA Convention & Expo

Growth Energy, a company that represents the producers and supporters of ethanol, recently announced support of the National FFA Organization and agricultural education as a special project of the National FFA Foundation. The multi-year sponsorship, a first-time gift to the organization from the company, will immediately launch with teacher and student workshops presented by Growth Energy this week at the 87th National FFA Convention & Expo, Oct. 29-Nov. 1, 2014, in Louisville, Ky.

The workshops, titled “Ethanol – Past, Present, Future,” take place on Friday, Oct. 31 and will provide an overview of the changing landscape in the ethanol industry and provide resources for teachers and students to take back to their classrooms after the event.

“Sustainable gifts, such as this from Growth Energy, provide long-term support for FFA and agricultural education,” Molly Ball, president of the National FFA Foundation, said. “We are excited to announce this new partnership and look forward to having Growth Energy host workshops this week to immediately engage with FFA members and agriculture educators.”

In addition to the workshops, funding from Growth Energy will help support TeachAg and Curriculum for Agricultural Science Education™ (CASE), which are programs focused on agriculture educator recruitment and retention and curriculum development.

Also included in the gift is support for the national organization’s online personalized career exploration and development resources called “My Journey.” Support for Washington Leadership Conference, an annual event focused on developing students’ leadership skills and service to others, is also included in the sponsorship.

“Growth Energy is thrilled to help sponsor several important programs for FFA, including expanded opportunities to continue to educate FFA members on critical issues such as the important role biofuels and energy play in American agriculture,” Tom Buis, CEO of Growth Energy, said.  “Additionally, together, we will continue to build a robust networking system to attract new agriculture teachers and highlight the opportunities FFA members have as they enter the workforce. Ultimately, what this comes down to is investing in our most valuable resource, tomorrow’s leaders of American agriculture."   



NMPF Leaders Set Sights on Immigration, Trade & Other Issues In Wake of 2014 Victory on New Dairy Safety Net

With a major reform of the federal dairy safety net now complete, the leadership of the National Milk Producers Federation pledged today to step up efforts on other key issues, including the fight for meaningful immigration reform, and opening more foreign markets to U.S. dairy products.

Speaking at the organization’s two-day annual meeting here, Board Chairman Randy Mooney and President and CEO Jim Mulhern also stressed the need to address environmental issues and concerns over the treatment of animals on dairy farms. 

The Mooney-Mulhern joint presentation came less than two months after the Agriculture Department formally launched the new dairy safety net, a margin insurance program known the Margin Protection Program, or MPP.

NMPF conceived of the program after dairy farmers lost billions of dollars in equity in the 2008-2009 recession. The organization, the voice of 32,000 dairy farmers in Washington, then lobbied Congress to include margin insurance in the 2014 farm bill.

“The new Margin Protection Program is going to be more flexible, more fair, and more functional than the old MILC program,” said Mooney, a dairy farmer from Rogersville, Missouri.

“I want, most of all, to remind farmers to take action and enroll their operation in the Margin Protection Program by USDA’s Thanksgiving deadline,” added Mulhern, who took over as NMPF president 10 months ago. “Even if you only want the barebones catastrophic coverage for next year, it will only cost you $100.”

Mooney and Mulhern said NMPF would continue working with USDA to smooth the implementation of the MPP, while also focusing on other key issues on its agenda in the months ahead.

On immigration, Mulhern said congressional inaction this year would not keep NMPF from pressing the fight for reform in 2015. “Our industry and our members must continue to beat the drum in Washington, and – more importantly – in states and congressional districts across the nation, that immigration reform must be dealt with, and finally resolved, in the coming year,” he said.

Regardless of who controls Congress after next month’s elections, the two leaders said NMPF would continue pushing for reform because it is crucial for dairy farmers. “This issue must be resolved,” said Mulhern.

On exports, Mooney and Mulhern said the U.S. dairy industry is intent on being a major player in world markets from here on out. “World trade in dairy is today’s reality and tomorrow’s opportunity,” said Mooney.

Mulhern said dairy farmers have a lot riding on trade negotiations now under way involving both Europe and Asia. “Japan is a huge potential opportunity,” he said. “We could export a lot more dairy products … if the U.S. government can achieve a breakthrough in negotiations and bring back a trade agreement providing meaningful increased market access there.”

But both in Japan and Europe, Mulhern said, entrenched domestic dairy interests don’t want more competition from the United States. “The European defense strategy includes an outrageous focus on bastardizing the concept Geographic Indicators in an attempt to claw back, for their own protectionist use, the names of many common foods,” he said. “These foods include many cheeses that we’ve been making for decades…

“Christopher Columbus’s relatives in the Old World can keep their Parmigiano-Reggiano,” Mulhern said, “But those of us in the New World … have every right to make and market award-winning Parmesan, for the use and enjoyment of folks here and, ultimately, around the world.”

Both leaders also praised the role of Cooperatives Working Together, an NMPF-managed program, in today’s favorable dairy export picture. “The rise in exports in the past decade is due to a number of factors, but a big one is that we have, in our Cooperatives Working Together program, a very effective tool to help seal the deal in markets where we are competing with products from other countries,” Mooney said.

This year alone, CWT, which is funded completely by farmers, has helped find markets for 86 million pounds of cheese, 51 million pounds of butter and 37 million pounds of whole milk power in 43 counties on six continents. “No other investment we make can pay off like CWT,” said Mooney.

Turning to environmental issues, Mulhern said it is important for the dairy industry “to turn them from a liability to an opportunity.”

As examples of this, Mulhern and Mooney cited NMPF’s work with the White House and federal agencies to encourage methane gas generation from dairy farm waste, and also efforts to recover and market valuable nutrients from livestock manure.

Mulhern compared nutrient recovery to whey generation by cheese plants, which not long ago was considered an environmental problem. “Today,” he said, “whey has been transformed into something like white gold, a nutritious high-protein source of money to cheese plants, and a boost for farmers’ Class III price.

“We have a great deal more work ahead of us to turn this from a dream into a reality,” Mulhern said, “but thanks to the vision, commitment and initial spadework of some of our co-ops, I firmly believe this will be a long-term boon to our farmers and cooperatives by creating new revenue sources, reducing regulatory pressures and legal challenges by solving potential environmental problems before they occur, and enhancing consumer and public attitudes toward our industry.”

Finally, concerning animal care, Mooney said it’s frustrating to hear “a small but vocal minority of critics attack dairy farmers and paint a twisted and false image of the care we provide our animals.”

Mulhern noted that conscientious animal care is not just morally and ethically right but also good business, since healthy cows produce more milk. “But it is also clear in this age of social media and the internet that we’re past the point where we can ask people just to take our word” that we are providing proper care, he said.

Both leaders praised the NMPF board for voting the previous day to require dairy cooperatives participating in an industry animal care program to require all their farmer members to be evaluated under the program’s guidelines.

“It means that all of our farms will be held to the same high standards, with no exceptions,” said Mooney. “And it helps us demonstrate that farms, regardless of size, are run by families … who take pride in what they do, and are committed to running a successful business that centers on producing high-quality milk from healthy cows.”

Summing up, Mooney said, while the dairy industry faces challenges, there are also tremendous opportunities. “We have a world of opportunities awaiting us that, working together, we can take advantage of,” he said.

Mulhern concluded by stressing the need for better grassroots involvement by dairy farmers in policy decisions. “The political footprint of agriculture is contracting,” he said. “That’s one reason it was such a challenge to pass a new farm bill.”

As a result, Mulhern said, the quality of grassroots engagement by farmers must improve. “Concentrating and amplifying our efforts,” he said, “we can continue to accomplish great things.”    



CWT Assists with 7.8 Million Pounds of Cheese, Butter, Whole Milk Powder

Cooperatives Working Together (CWT) has accepted 13 requests for export assistance from Dairy Farmers of America, Michigan Milk Producers Association, Tillamook County Creamery Association and Upstate-Niagara/O-AT-KA to sell 5.735 million pounds (2,601 metric tons) of Cheddar cheese, 1,984 million pounds (900 metric tons) of butter (82% milkfat) and 46,297 pounds (21 metric tons) of whole milk powder to customers in Asia, the Middle East and North Africa. The product will be delivered October 2014 through April 2015.

Year-to-date, CWT has assisted member cooperatives in selling 92.632 million pounds of cheese, 53.421 million pounds of butter and 37.893 million pounds of whole milk powder to 43 countries on six continents. These sales are the equivalent of 2.334 billion pounds of milk on a milkfat basis. Figures are adjusted for cancellations that occurred during the month.

Assisting CWT members through the Export Assistance program, in the long-term, helps member cooperatives gain and maintain market share, thus expanding the demand for U.S. dairy products and the U.S. farm milk that produces them in the rapidly growing world dairy markets. This, in turn, positively impacts U.S. dairy farmers by strengthening and maintaining the value of dairy products that directly impact their milk price.



NMPF Board Votes to Require that Organizations Participating in FARM Animal Care Program Must Enroll All Dairy Farms in Their Supply Chain

The board of directors of the National Milk Producers Federation voted Monday to require that each dairy marketing organization participating in the organization’s animal care program must enroll all its farmer-suppliers to ensure full participation in the program.

The unanimous vote came as the board, meeting here during NMPF’s annual meeting, reviewed the structure and participation levels of the National Dairy F.A.R.M (Farmers Assuring Responsible Management) program.  Now in its fifth year, the FARM program features a set of on-farm practices demonstrating farmers’ commitment to responsible animal care. In addition to dairy cooperatives, the program is open to milk processors and individual farmers.  Cooperatives and processors handling 75% of the nation’s milk supply are implementing the FARM program, although not all farms involved in those organizations have reviewed and adopted the program’s practices. Under the new policy, cooperatives and processors must require that every farmer supplying them must enroll in the program.

NMPF Board Chairman Randy Mooney hailed the vote as sending a clear message that the program must not be implemented selectively, in order to continue demonstrating the universal value and integrity of the FARM program.

“The FARM program has become the dairy industry animal care standard because of its integrity, rigor and authenticity,” Mooney said. “This decision means each farm in a participating cooperative will be held to the same high standards, with no exceptions. It demonstrates that the nation’s dairy farms, regardless of size, are committed to high-quality animal care across the supply chain.”

The NMPF board also this week reviewed new provisions in the FARM program that establish a clear process to investigate allegations of animal mistreatment on farms enrolled in the program. Any such farm will be subject to an independent review and may be temporarily suspended from the program if the allegations are substantiated. A corrective action plan will be developed to address any issues. Once any needed remedial actions are taken, the dairy operation can be reinstated in the FARM program.

NMPF President and CEO Jim Mulhern said this new policy will further strengthen the consistency of the program, and help such farms improve their animal care practices. “The goal of the FARM program is to assure a high level of quality animal care on our farms,” Mulhern said. “We want the program to be inclusive and adaptive. And where we find problems, we want to address and improve the situation rather than find ways to exclude individual farms from the program.”



Farmland Documentary Premiere on Hulu Ends This Week

The four-week premiere of Academy Award-winning filmmaker James Moll's feature-length documentary, Farmland, wraps up this week on the free, ad-supported Hulu and Hulu Plus subscription service.

During its theatrical debut this year, Farmland was shown in more than 170 theaters across the country, including Regal Cinemas, Marcus Theatres, Carmike Cinemas, Landmark Theatres, and many key independent theaters. Farmland was produced with generous support from the U.S. Farmers & Ranchers Alliance, of which the National Corn Growers Association is a founding affiliate.

"This is a film for anyone who eats," says Moll.  "It's not what you'd expect. I certainly learned a lot when making the film. The world of farming is complex and often controversial, but the farmers themselves are some of most hard-working and fascinating people I've ever met."

Many Americans have never stepped foot on a farm or ranch or even talked to the people who grow and raise the food we eat, yet are increasingly passionate about understanding where their food comes from. Farmland takes the viewer inside the world of farming for a first-hand glimpse into the lives of six young farmers and ranchers in their twenties. Through the personal stories of these farmers and ranchers, viewers learn about their high-risk/high-reward jobs and passion for a way of life that has been passed down from generation to generation, yet continues to evolve.

Produced by Moll's Allentown Productions, Farmland received notable attention during its theatrical run securing reviews in several national mediums and recognition in film festivals across the country, including: Atlanta, Cleveland and Newport Beach, Calif. The film also earned a 92 percent audience rating on RottenTomatoes.com.



CNH to Cut 150 Jobs at Wisconsin Tractor Plant

For the second time in two and a half years, the CNH Industrial plant in Mount Pleasant will be cutting a large number of workers. Union officials said 150 employees will be laid off indefinitely on December 1. The facility is used to make Case IH Magnum and New Holland 8000 series tractors.

Jeff Vassh, who leads the United Auto Workers Local 180, told the Racine Journal Times that CNH will shut down its second-shift tractor assembly this fall and slow tractor production from 40 tractors per day to 30.

CNH blames the slowdown in sales on lower commodity prices, especially in corn and soybeans.

The plant currently employs about 850 union employees. In 2011, the plant expanded its workforce by adding 150 new employees, but then cut about 100 of those jobs in February 2012.



$1.4B Fertilizer Plant Coming to Ill.

(AP) -- A chemical company plans to build a $1.4 billion fertilizer plant in eastern Illinois, state economic officials confirmed Tuesday.

Cronus Chemicals will build the plant just outside Tuscola, a town about 20 miles south of Champaign, and plans to open a U.S. headquarters in Chicago, according to Illinois Department of Commerce and Economic Opportunity spokesman David Roeder.

The Cronus Fertilizers plant will employ about 175 people, while another 2,000 temporary construction jobs are expected to be created while the plant is being built. Construction is expected to start on the plant next spring and take about three years.

Cronus is owned by a group of Swiss and Turkish investors. In discussions going back more than a year, Tuscola had been competing for the plant against an alternative site in Mitchell County, Iowa. Sites in other states were also considered.

The 250-acre Tuscola site is primarily farm land that sits alongside a CSX rail line. It is also near Interstate 57 and has easy access to major natural gas lines -- a key component in fertilizer production. The site was once considered for the FutureGen clean-coal project.

Details of any incentives that Illinois offered to Cronus weren't immediately available. Officials say the Chicago U.S. headquarters will have about 25 employees.