Friday November 7 Ag News

Heineman Seeks Applicants for Legislative District 15 Seat

Gov. Dave Heineman is seeking qualified applicants to represent the Fifteenth District in the Nebraska Legislature. Governor Heineman will be working closely with Gov.-elect Pete Ricketts on this appointment.

This week’s election of State Senator Charlie Janssen of Fremont as the next State Auditor creates the vacancy beginning on Jan. 7, 2015. Auditor-elect Janssen is expected to resign his State Senate seat after the Thanksgiving holiday.

While applications will be submitted to Gov. Heineman, Gov.-elect Ricketts will review the candidates and select the next LD 15 State Senator. At that point, Gov. Heineman will make the official appointment, based on Gov.-elect Ricketts’ selection.

Applications will be accepted through noon central time on Wed., Nov. 26. Applicants must live within the boundaries of Legislative District 15 and must have done so for at least one year. The district encompasses Dodge County. A detailed map of the district and its boundaries is available on the Nebraska Legislature’s website: www.nebraskalegislature.gov. The Governor-elect may also choose to seek out additional qualified candidates.

This will be a two-year appointment. The appointee will serve until January 2017, with the seat up for election in November 2016. Due to the amount of time remaining in the current State Senator’s term, the appointee will be eligible to run for re-election once, serving up to a total of six years, if re-elected.

Individuals interested in the position may complete the online application at www.governor.nebraska.gov. It can be found under the “Contact Us” tab. A cover letter, resume and additional materials may be emailed to kathleen.dolezal@nebraska.gov or mailed to the Governor’s Office, at P.O. Box 94848, Lincoln, Nebraska 68509. Questions may be directed to Kathleen Dolezal with the Governor’s Office at (402) 471-1971.

In addition to Auditor-elect Janssen, State Senator Scott Lautenbaugh of Legislative District 18 in Omaha has announced his resignation, and former State Senator John Nelson resigned his Legislative District 6 seat, also of Omaha, in September 2014 to become Gov. Heineman’s Lt. Governor. Appointments will not be made for these districts, as the recent elections have deemed the incoming State Senators, Brett Lindstrom (LD 18) and Joni Craighead (LD 6), who will be sworn-in on Jan. 7, 2015.



Norfolk USDA Service Center to Hold Open House

The United States Department of Agriculture (USDA) cordially invites the public to an Open House for the new Norfolk USDA Service Center located at 2601 Lakeridge Dr. The Open House will be held on Nov. 19 from 1 to 3 p.m. A ribbon cutting ceremony will kick off the event.

The new Service Center is home to the Madison County Farm Service Agency (FSA) and Natural Resources and Conservation Service (NRCS), the Regional NRCS Water Quality Team (WQT) and Rural Development (RD).

The new Service Center consolidates all of the county USDA agencies into one location. The USDA Offices are more convenient for area customers by providing one-stop customer service. The offices were previously located in Battle Creek and Norfolk. Part of the old office space did not meet federal leasing requirements.

Selection and the award for the space was done on a competitive basis for existing office space or new space. The new facility is privately owned and leased by USDA. It takes advantage of the Norfolk trade area. It also allows USDA to gain cost savings in space allocations, IT delivery and other cost efficiencies.

To reach any of the USDA agencies located in the new Norfolk USDA Service Center, call (402) 371-5350.



Platte Valley Cattlemen to Meet Nov 17th
Brett Mueller, President, Platte Valley Cattlemen

We will be meeting Monday, November 17th, at Wunderlich’s Catering in Columbus, with social hour beginning at 6:00 P.M. and the meal at 7:00 P.M.  We want to be sure to thank Rosendahl Farms Feed & Seed for sponsoring our social hour.

For our November meeting Allan Vyhnalek, UNL Extension Educator in Platte County, has arranged for Dr. Richard Funston with the West Central Research & Extension Center to come and present.  
 


TOXICITY FROM BLACK NIGHTSHADE
Bruce Anderson, UNL Extension Forage Specialist

               Plan to graze corn stalks or bean stubble?  If these fields have much black nightshade, be careful, it might be toxic.

               Black nightshade is common in many corn and bean fields this fall, especially those with hail damage.  It usually isn’t a problem, but if the population gets high it can poison livestock grazing many of the plants.  Almost all livestock, including cattle, sheep, swine, horses, and poultry are susceptible.                                           

               All plant parts contain some of the toxin and the concentration increases as plants mature, except in the berries.  Drying as hay or after a freeze will not reduce the toxicity.

               It is very difficult to determine how much black nightshade is risky.  Guidelines say that a 1000 pound animal that eats one to three pounds of fresh black nightshade is at risk of being poisoned.  These guidelines, though, are considered conservative since there is little data on the actual toxicity of nightshade plants.  Also encouraging is that reports of nightshade poisoning have been very scarce in the past.

               How will you know how much nightshade your animals will eat?  In a corn stalk or bean stubble field, cattle usually don’t appear to seek out nightshade plants to graze.  However, green plants of nightshade might become tempting to a grazing animal, especially if there is little grain, husks, or leaves to select.

               So common sense and good observation must be your guide.  If you see animals selectively graze green plants in stalk or stubble fields, pull them out and wait for a hard freeze before trying again.  Check again every couple days since diet selection may change as more desired residue parts are removed. If still unsure, expose only a few animals at a time to risky feed.

               Just remember, an ounce of prevention is worth a pound of cure.



Nebraska Farmers Union 101st Annual Convention Agenda Released
Kearney Ramada Inn, Kearney, December 5-6th

“Changing the Course of History for the Next 100 Years” is the theme for the 101st annual Nebraska Farmers Union (NeFU) state convention. 

John Hansen, NeFU President said, “This year’s convention will celebrate our 100 years of accomplishments and service to family farm and ranch agriculture and their rural communities.  Our outstanding program of speakers will help us prepare for the challenges and opportunities facing us next year, and into the future.  While we have a good time at our meetings and convention, NeFU takes on the difficult issues and serious topics that deserve our full attention and consideration.  Our mission to educate ourselves first so that we can educate others continues.”

Friday morning highlights include:
·         Craig Larson, CEO of the Nebraska Rural Radio Association;
·         Jeff Downing, General Manager of the Midwest Agency, LLP;
·         Dr. Donald Wilhite, the University of Nebraska professor of Applied Climate Science in the School of Natural Resources that was the lead author of:  “Understanding and Assessing Climate Change:  Implications for Nebraska.”
·         Governor Dave Heineman will once again be the Friday noon luncheon speaker. 
Friday afternoon speakers include:
·         Renee Fry, Executive Director of the Open Sky Policy Institute will present their new report on K-12 funding:  “Investing in Our Future:  An Overview of Nebraska’s Education Funding System.”
·         Stephene Moore, U.S. Department of Health & Human Services Regional Director for four Midwest states including Nebraska will provide an update on the Affordable Care Act.
·         A panel discussion of State Senators including Sen. Danielle Conrad of Lincoln, Sen. Annette Dubas of Fullerton, Sen. Ken Haar, and Sen. Norm Wallman of Cortland

The Friday evening banquet keynote speaker will be Chuck Hassebrook.

Saturday morning highlights will include: 
·         Thomas Driscoll, National Farmers Union Government Affairs Representative will provide a NFU legislative issues report that will include COOL. EPA, and Waters of the U.S.
·         Larry Mitchell, Administrator of the USDA Grain Inspection, Packers & Stockyards Administration will discuss issues facing their agency.
·         Ted Genoways, an award-winning poet, journalist, and editor will discuss his new book:  “The Chain:  Farm, Factory and the Fate of Our Food”.
·         Dan Steinkruger, Executive Director of the USDA Nebraska Farm Service Administration will report on the Farm Bill options workshops taking place across Nebraska and other program issues.

The Noon Luncheon will feature “100 Years of Changing The Course of History” researched by NFU Historian Tom Giessel of Larned, Kansas and presented by John Hansen, NeFU State President.

Registration costs are $35 and begins at 8:00 a.m. Friday and Saturday mornings.  Convention begins at 9:00 a.m. Friday and 8:30 a.m. Saturday.  As always, all members and the public is always welcome.  More information is available at:  www.nebraskafarmersunion.org or at 402-476-8815. 



Agriculture Must Answer Consumers Questions Better, Panelists Agree

Consumers are asking questions about the food-production system they've never asked before, and agriculture needs to do a better job of answering those questions, panelists at a University of Nebraska-Lincoln lecture agreed Thursday.

The discussion, titled "What Does Agricultural Communication Mean in the 21st Century?," was the second lecture in the 2014-15 season for the Heuermann Lectures. Moderated by Orion Samuelson, longtime agricultural broadcaster, panelists reflected on the challenges facing the agriculture industry in explaining the science of food production in an environment of low scientific literacy.

"People are looking at the food system and asking questions they've never asked before," said Kevin Murphy,  owner and founder of Food-Chain Communication, a marketing organization devoted to helping food-chain stakeholders communicate more effectively.

Those questions often focus on the ethics and morality of food production and frame agriculture "as a problem, as a culprit in social ills," Murphy added.

Marcy Tessman, president of Charleston-Orwig, an integrated marketing business, said she encourages her clients in food production to "sit at the table with people with opposing views ... We need to be accessible, we need to be transparent."

"Everybody should understand where their food comes from," said Barb Glenn, chief executive officer of the National Association of State Departments of Agriculture.

"That's good for society, that's good for public health, that's good for stewardship of the environment."

Murphy noted that high school and college students are being taught the work of agriculture critics such as Michael Pollan and being shown slanted documentaries such as "Food Inc." but are not hearing voices speaking on behalf of agriculture.

Ronnie Green, vice chancellor of UNL's Institute of Agriculture and Natural Resources, said it makes good sense, especially in Nebraska, to integrate agricultural science into middle- and high-school curricula.

Green said, "Scientists are trained to not make value judgments," but rather to simply present their scientific findings.

"I would argue we live in a world where we can't do that anymore," Green said.

Heuermann Lectures, sponsored by IANR, focus on providing and sustaining enough food, natural resources and renewable energy for the world's people, and on securing the sustainability of rural communities where the vital work of producing food and renewable energy occurs. They are made possible by a gift from B. Keith and Norma Heuermann of Phillips, long-time university supporters with a strong commitment to Nebraska's production agriculture, natural resources, rural areas and people.

Lectures are streamed live online at http://heuermannlectures.unl.edu, and aired live on UNL campus and state cable channel 4. Lectures are archived after the event and are broadcast on NET2 World at a later date.



USDA Seeks Input on New Beef Promotion Order

The U.S. Department of Agriculture's Agricultural Marketing Service is seeking input from the public to guide its development of a new industry-funded promotion, research and information order (also known as a "checkoff program") for beef and beef products. The new order would be in addition to the existing beef checkoff program, providing American beef producers with more resources for the marketing of their products and research to help strengthen the country's beef industry.

"Beef industry representatives agree that this important program needs more resources. USDA is stepping up at a critical juncture to help achieve the industry's goal," said Agriculture Secretary Tom Vilsack. "With this action we can boost research investments, increase beef exports, and encourage folks here at home to support American beef producers."

Beef industry leaders agree that the current fee of $1 per-head-of-cattle per producer is too little. The $1 assessment has remained the same since 1985 when Congress first created the beef checkoff program, and the amount can only be changed through Congressional action. This assessment provides resources for marketing to promote beef sales, research, and many other benefits for producers. An additional supplemental program like the one USDA is proposing would enhance available resources, which would help the beef industry address important issues including improving and enhancing nutritional and consumer information through initiatives such as consumer advertising, education, research and new-product development.

Additional resources could help increase demand for beef both domestically and internationally, thus benefitting cattle producers and the domestic beef industry. USDA is acting to help beef producers continue to enjoy these benefits—and strengthen them—in a way that works for all producers.

Interested individuals and organizations are invited to provide their views concerning provisions that would be included in the new order. A referendum on an order established under the 1996 Act would be conducted within three years after assessments begin to determine whether beef producers favor the program and if it should continue. A second referendum would be held within seven years of the start of the program.

Interested parties have until Dec.10, 2014, to submit comments on any of the issues below, and comments should reference the appropriate heading:

1. Who should be assessed?

2. What should be the board structure?
    Who is eligible to serve?
    Should there be a relatively large delegate body appointed by the Secretary that would elect and recommend from within itself a smaller board?
    What should be the size of the board?
    What should be the term of office?

3. How should the board be selected?
    Who may nominate eligible candidates to serve?
    What should be the nomination and selection process?

4. What should be the powers and duties of the board?

5. Who has decision-making authority?
    Should funding decisions be made by the full board or a smaller body elected from within this board?
    Should funding decisions be made in conjunction with other organizations such as the Federation of State Beef Councils or the current Cattlemen's Beef Promotion and Research Board?

6. How should the assessment rate be determined?
    Should the assessment be a specified amount, a percent of value, or an amount determined by board?
    If a specified amount or a percent of value, should there be provisions for adjustments to the rate by the board, and without subsequent producer referendum?
    Should there be a de minimis exemption for certain size operations or classes of cattle or beef?
    Should there be temporary or permanent provisions for refunds of assessments?

7. How should assessments be collected?
    Should the States or the national board collect the assessment?
    Should be assessment be levied at all points of sale, at slaughter, or at some other time?

8. When should the referenda be conducted?

USDA will consider written comments in developing its proposal for a Beef Promotion, Research and Information Order that provides for a promotion, research, and information program for beef and beef products under the 1996 Act. The new program would operate concurrently with the Beef Checkoff Program authorized under the authority of the 1985 Act.

Details of the notice of inquiry will appear in the Nov. 10, 2014, Federal Register. Comments may be submitted online at www.regulations.gov or sent to Beef Promotion, Research, and Information Order; Research and Promotion Division, Room 2096-S; Livestock, Poultry and Seed Program; AMS, USDA, STOP 0249; 1400 Independence Avenue, S.W.; Washington, D.C. 20250-0249; telephone number (202) 720-5705.

In September, Secretary Vilsack announced his intentions to increase USDA's involvement to support beef producers and help ensure that the beef checkoff program can move forward with broad-based producer organization support. The new order would be developed under the Commodity Promotion, Research, and Information Act of 1996. The proposed program would be in addition to the existing beef promotion and research program established under the Beef Promotion and Research Act of 1985.



MIR 162 Lawsuits Swell

At least 130 farmers in 13 states have filed lawsuits against Syngenta in the past month, alleging they've suffered damages due to market disruptions following the company's commercialization of its MIR 162 trait before China approved the variety for import.

The Panel on Multidistrict Litigation, sitting in Charleston, S.C., on December 4, will determine whether these cases should be transferred to a single court for all pretrial proceedings and, if so, to which court. Among the courts being proposed for that transfer are the federal courts in Chicago, Iowa, and Minnesota.

To gain class action status, plaintiffs must prove the issues in question are common to a large group of people and not individualized or specialized to that case. Many of the lawsuits filed are nearly identical except for details like the plaintiffs' names.

In general, the lawsuits allege Syngenta's release of MIR 162, also known as Viptera, effectively shut down the export market to China and shaved about 11 cents per bushel off the price of corn, according to a study by the National Grain and Feed Association. The lawsuits also allege Syngenta downplayed the importance of China as an export market destination and the role exports play in corn prices in an attempt to boost sales of seeds with its new traits.

In the 2009-10 and 2010-11 marketing years, when Syngenta was making decisions about commercializing Viptera, China's share of the U.S. corn export market was about 2%, but it swelled to 13.5% in the following two marketing years, according to USDA export sales data.



NCGA Urges Army Corps to Delay Planned Work Along Mississippi River

In a letter sent to the U.S. Army Corps of Engineers today, the National Corn Growers Association urged the Army Corps to delay its planned mat-laying work along the Mississippi River.

“This comes at a terrible time for U.S. corn farmers,” said NCGA President Chip Bowling. “We produced a record crop in 2014, much of which will be transported along the Mississippi River. It is imperative that barge traffic not be impeded, and as much grain as possible is transported before winter.”

In the letter, NCGA notes that the closure is being done with little notice, and it will result in significant delays of grain shipments.



Ag Allies Ask President to Reign in EPA on Biofuels Cuts

In a letter sent to President Obama this week, the National Corn Growers Association and several agricultural allies asked him to intervene with the U.S. Environmental Protection Agency regarding its proposed cuts in the 2014 volume obligations for the Renewable Fuel Standard.

“The blending targets and the methodology in your administration’s proposed rule are already causing significant harm to the biofuel sector,” the letter states. “These impacts are reverberating throughout the U.S. agriculture economy, and we expect this trend to continue if the targets and the methodology in the rule are not corrected.”

The letter discusses how the ag sector has met its responsibility in growing sufficient feedstock for biofuels, but is also working with the ethanol industry on infrastructure and advanced fuels. The letter concludes: “The EPA’s proposed policy decision is driving one of our key economic engines – the biofuel sector -­‐ overseas. We have invested in response to the signals in the RFS and are poised to deliver the very low carbon fuels you have sought for so long. Instead of reaping the economic benefits of this investment with a build-­‐out of a domestic biofuel industry, the methodology proposed by EPA is offshoring the industry – and our market. This is a decision we cannot afford in America’s heartland.”

Joining NCGA in the letter are, in alphabetical order, the Agricultural Retailers Association, American Farm Bureau Federation, Association of Equipment Manufacturers, National Association of Wheat Growers, the National Farmers Union and National Sorghum Producers.



U.S. Exports of soybeans, Soymeal Record High in 2013- 14

The U.S. Census Bureau released U.S. export data for September showing record highs for value and volume of soybeans and soymeal exported in 2013-14.  The data below show soy exports in metric tons and in dollars. The soybean data are for September through August and the soymeal and soyoil data are for October through September. Those are the marketing years for those commodities.

                     2012/13             2012/13                  2013/14             2013/14
Commodity        MT                  Value                       MT                  Value
Soybeans     35,845,494    $21,552,343,000          44,815,120     $24,121,752,000
Soymeal        9,987,981     $5,487,839,000           10,365,899      $5,686,742,000
Soyoil             981,358       $1,147,826,000             851,198          $809,598,000
Total           46,814,833      $28,188,008,000          56,032,217    $30,618,092,000



Sign Up Deadline for New Safety Net Pushed Back to December 5 Due to Holiday

Friday, December 5, is the new deadline for signing up for the revamped federal dairy program, known as the Margin Protection Program, or MPP. The U.S. Department of Agriculture agreed to the National Milk Producers Federation’s request to extend the deadline because the previous cutoff was the day after Thanksgiving, when many Americans are preoccupied with the holiday.

USDA Secretary Tom Vilsack announced the extension in a presentation at the NMPF annual meeting in Grapevine, Texas, October 29. “We want dairy producers to have enough time to make thoughtful and well-studied choices,” Vilsack said. “Markets change and the Margin Protection Program can help protect dairy producers from those changes.”

NMPF President and CEO Jim Mulhern joined Vilsack in urging dairy farmers to look closely at the details of the new program, which substitutes margin insurance for price supports. “Even if you only want barebones coverage next year, it will only cost you $100,” Mulhern said.  “For a relatively small investment, you can do a lot to protect the future of your farm.”

NMPF has a variety of tools on its Future for Dairy website to help farmers make decisions on the program.  Producers can sign up for the remainder of 2014, all of 2015, or both.

Also in his comments, Vilsack hinted that USDA is sympathetic to concerns that Margin Protection Program rules make it harder for older producers to pass farms on to their children. “USDA is committed to creating strong opportunities for the next generation of farmers and ranchers,” Vilsack said. “If our current rules hinder intergenerational changes or if improvements are needed in these programs, we want to hear from dairy producers,” he said.

Interested parties have until December 15 to comment on the interim rules for the program, which are available on the government’s website for pending regulations. NMPF was instrumental in developing the new safety net program, which was included in the farm bill enacted early this year.



CWT Helps Sell 16.7 Million Pounds of U.S. Dairy Products in October

In October, Cooperatives Working Together helped member cooperatives make 31 export sales of 6.8 million pounds of American-type cheese, 5.2 million pounds of butter and 4.7 million pounds of whole milk powder. The products will go to customers on six continents from October 2014 through April 2015.

The October CWT-assisted sales bring the year-to-date total to the equivalent of 2.3 billion pounds of milk on a milkfat basis. That is equal to the annual milk production of over 100,000 cows.

CWT is a voluntary, farmer-funded program that provides assistance to member cooperatives to maintain and expand world markets for U.S. dairy products made from milk produced by America’s dairy farmers.

At the NMPF annual meeting in Texas, President and CEO Jim Mulhern credited CWT with helping to keep U.S. dairy product prices at historical highs amid a steep decline in dairy prices worldwide. “By moving additional quantities of product from the U.S. market into world markets,” Mulhern said, “CWT, in conjunction with strong domestic sales, has kept domestic inventories low. That increased demand created through CWT has helped strengthen milk prices across the board.”



AgriBank Reports Third Quarter 2014 and Nine Month Financial Results

Friday St. Paul-based AgriBank announced financial results for the third quarter of 2014.

"AgriBank maintained strong financial performance through the third quarter of 2014, with a modest increase in net income and improved credit quality that reflects the disciplined underwriting practices of affiliated Associations and the financial strength of borrowers," said Bill York, AgriBank CEO. "While record harvests will contribute to lower commodity prices and reduced profits for crop producers, the good news is that these lower prices will benefit livestock producers and others across our diverse portfolio."

YEAR-TO-DATE 2014 RESULTS OF OPERATIONS
Net income increased to $422.3 million for the nine months ended September 30, 2014 from $420.9 million during the same period in 2013.

Net interest income remained relatively flat at $390.6 million for the nine months ended September 30, 2014, compared to $391.1 million for the same period in 2013. The slight decrease was related to decreased spread and loan volume related to our Asset Pool program which was substantially offset by increases in net interest income due to growth in the AgDirect equipment financing program and wholesale loan volume.

Non-interest income increased to $114.5 million for the nine months ended September 30, 2014 from $108.8 million during the same period in 2013. The increase was primarily due to the sale of available-for-sale investment securities that resulted in net gains of $14.1 million and increased mineral income of $17.3 million driven by royalties received from increased production activities. These increases were primarily offset by a $26.7 million decrease in fee income due to fewer loan conversions and prepayments during 2014.

THIRD QUARTER 2014 RESULTS OF OPERATIONS
Third quarter 2014 net income was strong at $155.8 million, an increase of $16.2 million from $139.6 million for the same period last year. The increase was primarily attributable to the sale of available-for-sale investment securities during the quarter ended September 30, 2014.

LOAN PORTFOLIO
Total loans increased slightly to $74.9 billion as of September 30, 2014 from $73.7 billion as of December 31, 2013. Increases in our wholesale loans were due to increased affiliated Association loans, primarily in the real estate mortgage, production and intermediate term and agribusiness sectors. In addition, production and intermediate term loans increased, driven primarily by purchases of equipment financing loans through the AgDirect program. These increases were partially offset by a decrease in real estate mortgage loans, primarily related to paydowns on our loan participations purchased from our affiliated Associations. The strong liquidity and equity positions of many borrowers are reflected in the continued favorable credit quality of AgriBank’s loan portfolio. The portfolio improved to 99.9 percent non-adverse loans as of September 30, 2014 from 99.8 percent at December 31, 2013. Nonaccrual loans as of September 30, 2014 declined slightly to $38.7 million from $39.7 million as of December 31, 2013. The allowance for loan losses increased to $11.7 million as of September 30, 2014 from $10.1 million as of December 31, 2013.

The U.S. Department of Agriculture projects 2014 net farm income to decline 13.8 percent to $113.2 billion from the record $131.3 billion set in 2013. The forecasted decrease is largely driven by expected lower crop revenues due to lower crop prices — despite record high prices for livestock and diary.

The 2014 harvest across the AgriBank District is progressing well and is expected to result in record corn and soybean yields. Prices for these key commodities are down significantly from the previous year, generally resulting in lower income levels for crop producers. However, income for livestock producers has been strong due to low feed costs and high prices for their production. Low commodity prices and feed costs should continue to have a positive impact on livestock as well as dairy, poultry and ethanol producers.

CAPITAL RESOURCES AND LIQUIDITY
Total capital decreased $40.6 million during the period to $4.9 billion, driven primarily by reduced capital stock and participation certificates of $202.0 million and patronage distributions of $235.6 million, substantially offset by net income of $422.3 million. The decrease in capital stock and participation certificates was primarily due to the first quarter amendment to our capital plan, which reduced the base required stock investment for all affiliated Associations and other financing institutions from 2.50 percent to 2.25 percent effective March 31, 2014. The capital plan amendment was made possible by the issuance of $250.0 million in non-cumulative perpetual preferred stock in the fourth quarter of 2013.

Cash and investments totaled $15.1 billion as of September 30, 2014, compared to $13.5 billion as of December 31, 2013, providing adequate liquidity to continue to meet our operating and regulatory requirements.

AgriBank is one of the largest banks within the national Farm Credit System, with more than $90 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.



USGC Ethanol Study Team Discovers Promising Potential in Peru

A joint team representing the U.S. Grains Council (USGC), Renewable Fuels Association (RFA) and Growth Energy visited Peru this week to assess the potential for U.S. ethanol exports to that country. The ethanol study team was part of a broader trade mission hosted by the U.S. Chamber of Commerce to determine how the U.S. ethanol sector can fit into Peru’s energy portfolio.

As a result of the U.S.-Peru free trade agreement (FTA), Peruvian trade barriers to U.S. goods, services and investments have been reduced. The United States already accounts for roughly 25 percent of all Peruvian imports according to International Trade Administration figures. Given U.S. export success in this market and Peru’s commitment to energy security, diversification and climate change, there are exciting opportunities for furthering trade relations with the U.S. agricultural and energy sectors.

In 2008, Peru established its renewable energy portfolio standard with the goal of creating an energy system that was sustainable and reliable. Four priorities were established: implementation of measures that will increase energy efficiency; continued development of the country’s natural gas industry; integration of electricity markets in the Latin American region; and minimization of environmental impact and expansion in the use of low-carbon technologies.

Just two years later, in 2010, Peru began requiring a 7.8 percent ethanol blend in its conventional gasoline. While Peru has two modern ethanol production facilities, domestically-produced ethanol is still a relatively new industry with potential for growth. U.S. Department of Agriculture's (USDA) Foreign Agriculture Service (FAS) in Lima forecasts Peru’s ethanol production at 250 million liters in calendar year 2015, up 5 million liters or 2 percent from the previous year.

While Peru is a potential market for U.S. ethanol exports, the most important takeaway from this mission was establishing potential partners and determining where and how the Council can be most effective in further expanding this emerging market.

“The team walked away feeling positive about the U.S. ethanol export market and the potential for growth,” said Marri Carrow, USGC regional director for the Western Hemisphere.

“It was good to hear firsthand from Peruvian officials of the country’s high priority on climate change and its commitment to clean energy development. They expressed optimism and interest to learn more about how U.S. ethanol can fit into that strategy.”

This week’s ethanol mission and two others in the current round of market assessments were made possible earlier this year when USDA announced ethanol exports could be promoted under the Market Access Program (MAP). This program, part of the U.S. farm bill, provides cooperative funding for U.S. agricultural export promotion initiatives around the world.

The team will finish its study mission Nov. 7 in Panama City, Panama. Upon return to the United States the Council, RFA and Growth will determine how to best serve the particular needs of this market based on the information they gathered.

The Council is also planning to conduct another study mission to Southeast Asia later this year.