Wednesday October 8 Ag News

Coalition Acknowledges Comment Extension, Again Calls for EPA to Withdraw Rule

Members of the Common Sense Nebraska coalition acknowledged Environmental Protection Agency’s (EPA) announcement to provide additional time for public comment on the agency’s “Waters of the U.S.” (WOTUS) proposal, but coalition partners again called for EPA to withdraw the proposal in its entirety.

EPA announced Oct. 6 it would extend the official public comment period through Nov. 14. The original deadline for public comment was Oct. 20.

“Given this proposal would expand EPA’s power to regulate virtually every waterway in the continental United States including those simply running through farm fields, on the side of roads and even backyards; it only makes sense the public is given more time to comment.  That being said, we continue to call on EPA to withdraw this proposal, as the only way to rectify this rule is to withdraw it and start over with true stakeholder input,” said Ken Boswell, president of the Nebraska Soybean Association.

EPA’s actions would extend the comment period until after the Nov. 4 general election. The rule has become highly controversial and drawn criticism from all five members of Nebraska’s Congressional delegation along with interests ranging from farmers and ranchers to golf course managers, county officials and virtually everything in between.

“We look forward to providing public comment on the full scope of this regulatory overreach by EPA and encourage others to do so as well. We do have our doubts as to how much the agency will listen, however, given their massive taxpayer funded public relations campaign in support of the rule while publically challenging anyone who questions it,” said Boswell.

‘Common Sense Nebraska’ is a Nebraska-based coalition consisting of organizations and entities that have come together in response to EPA’s “Waters of the U.S.” proposal which would harm both rural and urban Nebraskans through expansion of EPA’s powers and authorities under the federal Clean Water Act. The coalition’s purpose is to build awareness and understanding of the EPA proposal and the impacts it would have on Nebraskans.



NDA AWARDED FEDERAL SPECIALTY CROP GRANT FUNDS FOR 17 PROJECTS

Nebraska Department of Agriculture (NDA) Director Greg Ibach today announced that 17 Nebraska grant projects have been funded to enhance the competitiveness of and strengthen markets for the state’s specialty crop sector.

According to Ibach, the 17 projects will share $599,691 awarded to NDA from the United States Department of Agriculture’s (USDA) Specialty Crop Block Grant program, which was authorized in the 2014 Farm Bill.

“We are pleased to coordinate this program on behalf of specialty crop growers in the state,” said Ibach.  “The diversity of Nebraska agriculture is reflected in these grant awards.  We welcome the opportunity to help support research, education and market development projects to make these crops more competitive."

NDA was awarded the grant monies after submitting a state plan to USDA.  The 17 projects included in the plan were selected by NDA through a competitive process. Specialty crops, according to program rules, include crops such as fruits, vegetables, tree nuts, horticulture and nursery crops.

Examples of some of the funded projects include:
·         Potatoes: The establishment of a potato pest management program to control the Potato Psyllid and the diseases the pest causes.  A project to establish a potato aphid monitoring network.  Surveys to detect and monitor the Potato Cyst Nematode as well as Columbia Root Knot Nematode.
·         A project to increase the consumption of dry edible beans.
·         Disease research for the production of dry yellow peas. 
·         Research to determine production parameters for fenugreek.
·         Fruits and vegetables: a project to increase access to locally grown fruits and vegetables in food desert areas.  Work to increase the supply and demand at a local farmers' market. A project using forced air geothermal greenhouse technology to increase production of specialty crops.
·         Education and marketing project to enhance producer knowledge of growing hops in Nebraska. 

A complete listing of grants that were funded can be found on the USDA website at http://tinyurl.com/nxfrwr8 under awards granted.



BE ALERT TO HEALTH RISKS WHEN GRAZING TURNIPS
Bruce Anderson, UNL Extension Forage Specialist

Good moisture has boosted growth of summer planted turnips and many are ready to graze.  This wonderful resource is not without potential health hazards, however.

Turnips may be the best grazing option available for late fall and winter.  But, like everything else, they can cause problems.

Turnip leaves can cause a blood mineral disease called hemolytic anemia, a brain disorder called polioencephalomalacia that is characterized by twitching and incoordination, pulmonary emphysema, which is a breathing disorder, and even bloat.  These problems generally occur during the first couple weeks of grazing.  Turnips can be high in nitrates and also affect function of the thyroid gland and, thus, are goiter-genic.

Now this may all sound scary, but most problems are rare and are reduced or eliminated with careful management.  To begin, don’t shift cattle onto turnips suddenly.  Adjust them by feeding high quality hay or pasture for a couple weeks before grazing turnips to prepare their rumen for the high energy and protein in turnips.  Giving them just a few hours access to turnips at the start also helps.  Make sure they have access to a dry roughage like corn stalks or a palatable hay.  This also helps reduce diarrhea, which is common with turnips.  Strip grazing that forces cattle to eat both roots and tops reduces problems and increases carrying capacity.  And finally, always provide an iodized salt-trace mineral mix.

Many folks worry about choking.  It’s not very common but it does happen.  Growers who have experienced this problem tell me that they usually can remove the plug using a stick or by hand.

Don’t be afraid to graze turnips; they’re a wonderful resource.  Just manage carefully and be alert so problems don’t affect you.



USDA TO STUDY CORN PRODUCTION PRACTICES

The U.S. Department of Agriculture’s National Agricultural Statistics Service (NASS) in collaboration with the Economic Research Service (ERS) is conducting the 2014 Agricultural Resource Management Survey (ARMS) which will focus on corn production practices. 

“ARMS serves as the primary source of information on the use of crop protection chemicals, ensuring that the Environmental Protection Agency and other regulators use real-world data when making decision about the future availability of these products,” said Greg Thessen, director of the Iowa NASS Field Office. “The survey results help agricultural leaders and decision-makers better understand how producers cope with risk, adapt to policy changes, and make decisions about chemical use, new technologies and many other aspects of farming.”

In fact, the data reported in 2010 showed that “During 1996 - 2010, corn acres with excess phosphorus and nitrogen applied above the crop’s needs decreased by twelve percent, while yields increased“, added Thessen.  The data collected from this survey will be your voice to show the current production practices used on farms.  

In Iowa, data will only be collected from 300 corn producers.  Therefore, participation of producers is critical, so please take the time to complete an interview if you are contacted by your local NASS representative.

NASS interviewers will contact selected producers in October and November, hopefully allowing farmers enough time to complete the report at their convenience.  NASS safeguards the privacy of all survey respondents and publishes only state and national-level data from this survey, ensuring that no individual operation or grower can be identified. 

The results of the ARMS will be released on NASS’s website at www.nass.usda.gov/results on May 15, 2015.  For more information on NASS surveys and reports, visit www.nass.usda.gov.



Nominations sought for Iowa Soybean Association leadership awards

Nominations are being sought by the Iowa Soybean Association (ISA) for five awards recognizing those who have demonstrated commitment and leadership in agriculture and improving soybean production and environmental performance.

Awards will be presented in five categories: Legacy of Leadership, Rising Star, Environmental Leader, New Leader and Friend of the Iowa Soybean Association. 

ISA President Tom Oswald of Cleghorn says the program provides a unique opportunity to recognize those who dedicate their time, talents and expertise to furthering the mission and goals of the association.

“We’re dedicated to expanding opportunities and delivering results for Iowa’s soybean farmers,” said Oswald. “The success of the association and soybean industry is driven by committed individuals, including the great work of our farmer leaders in all stages of their careers, as well partners who have supported Iowa soybean farmers.”

Awards and criteria are:
-    Legacy of Leadership — given to an Iowa soybean farmer who has demonstrated a passionate and relentless commitment to growing the soybean industry in Iowa.
-    Rising Star — recognizes the son or daughter of an ISA member who’s actively involved in promoting agriculture through involvement in local, state and national activities and organizations and who is preparing to continue ag studies in college. Eligible nominees are 14-18 years of age (high school students or students who have just graduated from high school).
-    Environmental Leader — presented to an ISA member who has demonstrated a commitment to practices that improve environmental performance. The soybean farmer who receives this honor will be nominated for the American Soybean Association Conservation Legacy Award to be presented at the 2016 Commodity Classic.
-    New Leader — awarded to a district soybean leader who has been involved in his/her District Advisory Council for two years or less, has shown outstanding involvement and possesses the skills and talents to do great things for the soybean industry and agriculture.
-    Friend of the Iowa Soybean Farmer — given to an elected leader, reporter or other ISA partner who has supported Iowa soybean farmers through his/her actions and efforts.

All nominations must be in writing and received no later than Nov. 3. Nomination information can be accessed at www.iasoybeans.com/awards/ or requested by calling (800) 383-1423. Nominations can be submitted by mail to Iowa Soybean Association, Attn: Ann Clinton, 1255 SW Prairie Trail Pkwy, Ankeny, Iowa 50023, or aclinton@iasoybeans.com.

Award recipients will be selected by members of the ISA Board of Directors. Awards will be presented at the association’s 50th anniversary celebration at the Embassy Suites in Des Moines Dec. 17.

Last year’s award recipients were: Legacy of Leadership, family of Raymond Heck, Perry; Friend of the Iowa Soybean Farmer, Dr. John Pesek, Iowa State University; Environmental Leader, Steve Berger, Wellman; New Leader, Kellie Blair, Dayton; and Rising Star, Kolton Greiner, Keota.

To learn more about ISA, go to www.iasoybeans.com.



Producers Have Until November 28 to Sign Up for New Federal Safety Net Program

Dairy farmers have until November 28 to sign up for the new federal dairy safety net, known as the Margin Protection Program, or MPP. To help farmers understand the program, the National Milk Producers Federation has a variety of on-line tools, including a five-page written summary, a downloadable calculator, and a narrated slide presentation that walks the viewer through the details.

These and other materials are available through both the NMPF website http://www.nmpf.org/content/margin-protection-program-2014-farm-bill and the Future for Dairy website http://www.futurefordairy.com/. The Future for Dairy site is serving as an information hub for the new program.

The calculator allows farmers to enter their own milk production and commodity price data to gauge the new program’s likely impact on their operations. It complements a similar tool created by a consortium of land grant universities and available through the Agriculture Department website http://fsa.usda.gov/FSA/pages/content/farmBill/fb_MPPDTool.jsp.

The 21-minute slide presentation covers who is eligible for the program, how to sign up, and what the fees and payments might look like under various scenarios. Also covered are the basic concept of the program, what it replaces, and how it compares to the previous dairy safety net.

“Dairy farmers are starting to make their participation decisions,” said NMPF President and CEO Jim Mulhern. “The calculator and the other NMPF tools should help them make the best choices for their individual circumstances.”

NMPF was instrumental in developing the new safety net and is strongly encouraging farmers to sign up. Rather than supporting milk prices, the program allows producers to insure their profit margins on a sliding scale. Basic coverage is free, aside from $100 annual administrative fee. Producers can sign up for the remainder of 2014, all of 2015, or both, through the end of November.

Dairy Industry Blasts Market Barriers in EU-Canada Trade Deal
The recent release of the official text of the free trade agreement between the European Union and Canada has triggered dairy industry charges that the authors are attempting to further restrict U.S. access to the Canadian cheese market.

Dairy trade groups including NMPF, the International Dairy Foods Association and the U.S. Dairy Export Council said the text includes objectionable provisions on geographical indications, and reallocates some of Canada’s import quota for cheese from the United States and other countries to the EU.

The geographical indications provisions are particularly alarming, the groups said, because they grant the EU automatic protection for five commonly used cheese names in violation of both international trade commitments and Canadian intellectual property law.

The cheese names are asiago, feta, fontina, gorgonzola and munster. Under the agreement, manufacturers that produced these cheeses before last October can continue to use the generic names, but others will be required to use qualifiers, such as asiago-type, feta-style or imitation munster cheese.

Jaime Castaneda, senior vice president of both NMPF and the U.S. Dairy Export Council, said Canada added insult to injury by both watering down the already-limited access of U.S. exporters to the Canadian cheese market and by restricting access U.S. exporters expect to gain through a separate Trans-Pacific free trade agreement.

“This is yet another example of Canada’s work at every turn to limit access to its market for highly competitive U.S. products,” Castaneda said.

The text of the agreement, known as the Comprehensive Economic and Trade Agreement, or CETA, still must be ratified. An implementation date is not known.



AgriBank CEO Bill York Participates in Panel Discussion at International Summit of Cooperatives

Bill York, CEO of Minnesota-based AgriBank, yesterday participated in a seven-member panel discussion at the International Summit of Cooperatives in Quebec City, Quebec, Canada. More than 3,000 attendees from 93 countries attended the Summit to discuss global issues facing cooperatives.

The panel discussion, titled, “Financing: Between New Regulations and Market Turmoil,” addressed the capital and financing solutions cooperatives are embracing to ensure their survival and development amidst competitive, economic and regulatory challenges. York provided an overview of AgriBank’s federated cooperative structure and initiatives to bolster its financial and capital position, including the issuance of $250 million of preferred stock in 2013.

“Fulfilling our mission to provide a reliable source of credit to farmers and ranchers and other eligible borrowers depends on our ability to remain on solid financial footing and have continued access to capital,” York said. “The International Summit provided a valuable opportunity for cooperative leaders from around the world to exchange experiences with promising financing and capitalization solutions.”

David Scanlon with Bloomberg News, Canada moderated the panel. In addition to York, other panelists included Rym Ayadi, professor and director of the Centre d'études Desjardins, HEC Montréal, Canada; Réal Bellemare, senior vice-president, Operations and Performance, Desjardins Group, Canada; Bertrand Bluzat, partner, Ernst & Young, France; Hilmar Gernet, member of the board, director Politics & Society, Raiffeisen, Switzerland; Wolfgang Kirsch, CEO and chairman of the board of managing directors, DZ BANK AG, Germany; Nicolas Théry, CEO CIC Est, France; and Lawrence Schembri, deputy governor, Bank of Canada, Canada.

AgriBank is one of the largest banks within the national Farm Credit System, with more than $85 billion in total assets. Under the Farm Credit System's cooperative structure, AgriBank is owned by 17 affiliated Farm Credit Associations. The AgriBank District covers America's Midwest, a 15-state area stretching from Wyoming to Ohio and Minnesota to Arkansas. More than half of the nation's cropland is located within the AgriBank District, providing the Bank and its Association owners with exceptional expertise in production agriculture. For more information, visit www.AgriBank.com.



CWT Continues to Grow Export Markets for U.S. Dairy Products
Cooperatives Working Together helped its member cooperatives make 33 export sales in September, involving 5.7 million pounds of American-type cheese and 12.7 million pounds of whole milk powder. The total 18.4 million pounds of dairy products will be delivered to customers on six continents by March 2015.

The September total brings CWT-assisted dairy export sales to 167 million pounds for the year. The sales are equivalent of 2.1 billion pounds of milk on a milkfat basis. That equals the annual milk production of nearly 100,000 cows.

USDA data shows there were 47,000 more cows in the national dairy herd in August than a year earlier. CWT’s Export Assistance program has helped member cooperatives market the milk of those cows and more.

CWT is a voluntary, farmer-funded program developed by NMPF to preserve family dairy farms. It helps cooperatives maintain and expand world markets for products made from milk produced by U.S. dairy farmers.



Ethanol Stocks Ease; Output Up
The Energy Information Administration released data Wednesday showing ethanol inventories in the United States fell last week from an 18-month high despite an increase in domestic production.

Total ethanol stocks fell 177,000 barrels (bbl) to 18.651 million bbl during the week-ended Oct. 3. Stocks remain 3.3 million bbl, or 21.2%, above a year ago.

Plant production rose 20,000 barrels per day (bpd) last week to 901,000 bpd while 3.8% higher than a year ago. Four-week average output surged 5.6%.

Blender inputs, a proxy for ethanol demand, eased 4,000 bpd to 858,000 bpd last week, down 1.2% year-over-year, while four-week average demand edged up 1.3%.



Cargill reports first-quarter fiscal 2015 earnings

Cargill today reported net earnings of $425 million in the fiscal 2015 first quarter ended Aug. 31, down 26 percent from $571 million in the year-ago period. Revenues in the first three months totaled $33.3 billion, a 2 percent change from last year’s $33.8 billion.

“Although Cargill’s first quarter was not as strong as last year, we had several areas of good performance and are optimistic about the opportunities ahead,” said David MacLennan, Cargill’s president and chief executive officer. “This year’s big crops, not just in North America but across agricultural production areas worldwide, will enhance food security after several years of weather disruptions. Our company is well positioned to connect these new supplies to growing demand.”

MacLennan noted the first quarter was marked by a great deal of geopolitical uncertainty, and that Cargill’s regional teams did an excellent job serving customers while managing the impact. He also said Cargill made good progress on efforts underway to improve the company’s efficiency and accelerate the pace of technology and process improvements.

Among Cargill’s business segments, Origination & Processing was the largest contributor to first-quarter earnings, with results slightly below the year-ago level. Global commodity markets for corn, soybeans and wheat were characterized by falling prices, reduced price volatility, lower soybean crush volumes and limited farmer selling in some countries. Grain shipments in Canada remained brisk due to the large carryover from the country’s record 2013 crops.

Food Ingredients & Applications earnings decreased moderately from last year, with many food ingredient businesses experiencing softer volumes often tied to sluggish economic conditions in a number of countries. On the upside, strong demand for corn-based ethanol lifted Cargill’s corn processing results in North America.

Segment results for Animal Nutrition & Protein rose moderately in the first quarter. The segment’s animal nutrition operations performed well, with higher sales volumes but slightly lower earnings due to a gain on the sale of a milling business in last year’s first quarter.

The segment’s animal protein businesses jointly delivered a strong performance. Beef processing in Australia benefited from ample cattle supplies and strong export demand. In North America, lower input costs bolstered cattle feeding results; on the processing side of the business, cattle costs were very high during most of the period but consumer demand for beef stayed strong. The expected shortage of hogs caused by the porcine epidemic diarrhea virus (PEDv) was less detrimental to Cargill’s U.S. pork operations than anticipated, allowing for a good first quarter. Cargill’s chicken and turkey operations in Central America, Europe, Thailand and the U.S., also realized higher earnings on a combined basis.

Earnings in Industrial & Financial Services decreased moderately from last year’s first quarter. Within the segment, results were mixed. Performance in energy rebounded, driven by the decision in the preceding quarter to focus on crude oil and petroleum products, and North American power and natural gas. Trading results in ocean shipping were reduced by an erratic Capesize vessel market. Performance in metals also fell, with tightening credit markets in China diminishing demand and prices for iron ore and steel.

During the quarter, the company closed its beef harvest facility in Milwaukee, an outcome of the tight cattle supply brought about by producers retaining cattle for herd expansion. The U.S. beef cattle herd is at its lowest level since 1951. The ground beef plant at the site remains open to meet customer needs. Cargill will close its Memphis, Tennessee, corn milling facility, effective January 2015. Located away from the Corn Belt, the plant is underutilized. Its corn oil refinery will remain open and operate as a stand-alone facility.



Monsanto 4Q Loss Narrows

Monsanto Co. forecast lower-than-expected profits over the coming fiscal year, saying it expects farmers to change their planting and tighten spending on farm supplies amid the weakest grain prices in years.

The world's biggest seed company by sales on Wednesday said it anticipates fewer acres dedicated to corn -- Monsanto's biggest source of seed sales -- in South America, and a potential 10% decline in overall pesticide earnings to weigh on its 2015 profits.

"This year the industry will certainly face the headwinds of a more-challenging agricultural environment," Hugh Grant, Monsanto's chief executive, said on a conference call with analysts. "We're not immune."

Monsanto and other big agribusiness companies are grappling with a second-straight year of bumper grain and oilseed crops that has sent corn futures prices to their lowest level in five years, with similar drops in soybean and wheat prices. The U.S. Department of Agriculture projects record U.S. corn and soybean harvests this year.

As a result, farmers are spending less on tractors, pesticides, fertilizer and seeds, which has driven the share price of farm equipment maker Deere Co. down by 12% over the past three months, and that of fertilizer producer Mosaic Co. by 13%. Monsanto shares fell about 13% over that period, when the S&P 500 stock index fell 2%.

Grain trading companies also have taken a hit. Cargill Inc. on Tuesday reported a 26% drop in quarterly profit due to the protracted slide in crop prices and farmers selling grain more slowly than normal. Those results weighed on rival Archer Daniels Midland Co.'s shares Wednesday, which recently fell 4.1% to $47.52.

Monsanto's shares were up slightly in early afternoon trading after falling before the U.S. stock market's opening Wednesday.

Executives said the St. Louis-based company remains on track to double its earnings per share over the next five years and that the overall level of corn and soybean acres planted by farmers next year will be similar to this year, which "relieved some concern that planted acres would be down somewhat due to lower grain prices," said Matt Arnold, analyst with Edward Jones.

For the fiscal fourth quarter, ended in August, Monsanto said its loss narrowed to $156 million, or 31 cents a share, from a year-earlier loss of $249 million, or 47 cents a share. Revenue increased 19.4% to $2.6 billion, boosted by strong soybean seed sales.



Robertson Leads Newly Created Ceva Swine Division

Gary Robertson has joined Ceva Animal Health as Director of the newly formed swine business unit. Robertson joins Ceva with more than 15 years of experience growing swine product portfolios for animal health companies. In his new role, Robertson is charged with building Ceva's U.S. swine division, which will include product development, sales, marketing and technical services.

"Gary's passion and understanding of the market, along with his strong relationships in the industry, will help Ceva launch a successful swine business unit," says Craig Wallace, CEO and North American Zone Director. "Launching a swine division is imperative to achieving our goal of becoming a broad-based animal health company."

Ceva is an emerging animal health company both on a global and national scale. The company most recently launched its equine division and, with the additional expansion into swine, hopes to continue its strategic growth in the U.S. animal health space. Adding a swine division with Robertson at the helm demonstrates Ceva's continued investment in the animal health industry.

"Our companion animal, equine and poultry business units are rapidly growing and now our expansion into swine helps us continue that strategic growth," says Wallace. "Gary brings to Ceva broad U.S. and international experience in sales, marketing and account management in the swine industry. This is something I'm confident producers and veterinarians will notice and appreciate."

Ceva has a strong commitment to its customers. The company continues to invest heavily in research and development to manufacture products for novel diseases and create custom solutions for its customers.

"Producers and veterinarians don't currently associate the Ceva brand with swine health," says Robertson. "We are new to this market and I know it will take time for swine producers and veterinarians to get to know us. But I'm confident the industry will see our dedication to customers and our commitment to providing products and solutions that truly impact not only producers and veterinarians, but the industry as well."

Robertson will be building the U.S. swine division from the ground up and is excited and ready for the challenge. "Ceva is an innovative company that has an entrepreneurial spirit led by talented people," says Robertson.

Wallace adds that Robertson is one of those talented people that will help the company continue to grow. "Gary has the experience, passion, drive and relationships to create an unparalleled pipeline of effective products and a technical support team for the swine industry," says Wallace.

Robertson has previously worked for Zoetis (formerly Pfizer Animal Health), Fort Dodge Animal Health and Boehringer Ingelheim Vetmedica, Inc. He earned his Bachelor of Science degree in animal science from Oklahoma State University and is a past recipient of the National Agri-Marketing Association's Professional Development Award of Excellence.