Friday, November 21, 2014

November 21 Cattle on Feed + Ag News

NEBRASKA CATTLE ON FEED UP 3 PERCENT

LINCOLN, NE November 21, 2014 -- Nebraska feedlots, with capacities of 1,000 or more head,contained 2.45 million cattle on feed on November 1, according to the USDA’s National Agricultural Statistics Service. This inventory was up 3 percent from last year.Placements during October totaled 660,000 head, up 5 percent from 2013.Fed cattle marketings for the month of October totaled 430,000 head, down 3 percent from last year.Other disappearance during October totaled 20,000 head, up 5,000 head from last year.



IOWA CATTLE ON FEED DOWN 8% FROM LAST YEAR


Cattle and calves on feed for slaughter market in Iowa for all feedlots totaled 1,065,000 on November 1, 2014, according to the USDA, National Agricultural Statistics Service, Iowa Field Office. The inventory is up 3 percent from October 1, 2014, but down 8 percent from November 1, 2013. Feedlots with a capacity greater than 1,000 head had 590,000 head on feed, up 5 percent from last month but unchanged from last year. Feedlots with a capacity less than 1,000 head had 475,000 head on feed, up 1 percent from last month but down 17 percent from last year. This marks the lowest November 1 inventory for feedlots with less than 1,000 head capacity since records began in 1999.

Placements during October totaled 207,000 head, an increase of 8 percent from last month but down 24 percent from last year. Feedlots with a capacity greater than 1,000 head placed 132,000 head, up 33 percent from last month and up 1 percent from last year. Feedlots with a capacity less than 1,000 head placed 75,000 head. This is down 19 percent from last month and down 47 percent from last year. This marks the lowest October placements for feedlots with less than 1,000 head capacity since records began in 1999.

Marketings for October were 166,000 head, down 19 percent from last month and down 11 percent from last year.  Feedlots with a capacity greater than 1,000 head marketed 100,000 head, down 12 percent from last month but up 12 percent from last year. Feedlots with a capacity less than 1,000 head marketed 66,000 head, down 27 percent from last month and down 33 percent from last year. This marks the lowest October marketings for feedlots with less than 1,000 head capacity since 2006. Other disappearance totaled 6,000 head.



United States Cattle on Feed Up Slightly

   
Cattle and calves on feed for slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 10.6 million head on November 1, 2014. The inventory was slightly above November 1, 2013.

Placements in feedlots during October totaled 2.36 million, 1 percent below 2013. Net placements were 2.26 million head. During October, placements of cattle and calves weighing less than 600 pounds were 690,000, 600-699 pounds were 570,000, 700-799 pounds were 462,000, and 800 pounds and greater were 635,000. For the month of October, placements are the second lowest since the series began in 1996.

Marketings of fed cattle during October totaled 1.69 million, 8 percent below 2013. October marketings are the lowest since the series began in 1996.  Other disappearance totaled 97,000 during October, 28 percent above 2013.



Number of Cattle on Feed on 1,000+ Capacity Feedlots by Month - States and US:  2013 and 2014
---------------------------------------------------------------------------------------------------
                  :                 :                 :              November 1, 2014             
                  :                 :                 :--------------------------------------------
       State      :November 1, 2013 : October 1, 2014 :              :  Percent of  :  Percent of 
                  :                 :                 :    Number    :previous year :previous month
---------------------------------------------------------------------------------------------------
                  :     --------------- 1,000 head --------------          ----- percent ----     
Arizona ..........:        270               252              250           93             99     
California .......:        495               415              420           85            101     
Colorado .........:        950               840              900           95            107     
Idaho ............:        220               205              220          100            107     
Iowa .............:        590               560              590          100            105     
Kansas ...........:      2,050             2,010            2,080          101            103     
Minnesota ........:        117               114              132          113            116     
Nebraska .........:      2,370             2,240            2,450          103            109     
Oklahoma .........:        270               245              260           96            106     
South Dakota .....:        200               190              230          115            121     
Texas ............:      2,520             2,470            2,550          101            103     
Washington .......:        203               212              226          111            107     
Other States .....:        330               305              325           98            107        
United States ....:     10,585            10,058           10,633          100            106     
---------------------------------------------------------------------------------------------------


# of Cattle Placed on Feed on 1,000+ Capacity Feedlots by Month-States and US: 2013 and 2014
---------------------------------------------------------------------------------------------
                  :              :              :            During October 2014            
                  :    During    :    During    :--------------------------------------------
       State      : October 2013 :September 2014:              :  Percent of  :  Percent of 
                  :              :              :    Number    :previous year :previous month
---------------------------------------------------------------------------------------------
                  :    ------------ 1,000 head -----------           ----- percent ----     
Arizona ..........:       28             20             22            79            110     
California .......:       55             43             53            96            123     
Colorado .........:      230            200            210            91            105     
Idaho ............:       56             64             61           109             95     
Iowa .............:      131             99            132           101            133     
Kansas ...........:      470            400            420            89            105     
Minnesota ........:       25             20             30           120            150     
Nebraska .........:      630            520            660           105            127     
Oklahoma .........:       65             55             60            92            109     
South Dakota .....:       59             50             84           142            168     
Texas ............:      520            445            520           100            117     
Washington .......:       59             46             51            86            111     
Other States .....:       50             45             54           108            120     
United States ....:    2,378          2,007          2,357            99            117     
---------------------------------------------------------------------------------------------


Number of Cattle Marketed on 1,000+ Capacity Feedlots by Month - States and US: 2013 and 2014
---------------------------------------------------------------------------------------------
                  :              :              :            During October 2014            
                  :    During    :    During    :--------------------------------------------
       State      : October 2013 :September 2014:              :  Percent of  :  Percent of 
                  :              :              :    Number    :previous year :previous month
---------------------------------------------------------------------------------------------
                  :    ------------ 1,000 head -----------           ----- percent ----     
Arizona ..........:       25             24             21            84             88     
California .......:       50             38             40            80            105     
Colorado .........:      145            155            145           100             94     
Idaho ............:       45             38             45           100            118     
Iowa .............:       89            114            100           112             88     
Kansas ...........:      400            325            320            80             98     
Minnesota ........:       10             18             11           110             61     
Nebraska .........:      445            400            430            97            108     
Oklahoma .........:       78             54             43            55             80     
South Dakota .....:       38             42             43           113            102     
Texas ............:      430            410            420            98            102     
Washington .......:       39             32             35            90            109     
Other States .....:       33             33             32            97             97     
United States ....:    1,827          1,683          1,685            92            100     
---------------------------------------------------------------------------------------------



USDA Cold Storage Highlights


Total red meat supplies in freezers were down 2 percent from the previous month and down 9 percent from last year. Total pounds of beef in freezers were up slightly from the previous month but down 15 percent from last year.  Frozen pork supplies were down 4 percent from the previous month and down
7 percent from last year. Stocks of pork bellies were down 18 percent from last month but up 5 percent from last year.

Total frozen poultry supplies on October 31, 2014 were down 5 percent from the previous month and down 9 percent from a year ago. Total stocks of chicken were up 5 percent from the previous month but down 9 percent from last year. Total pounds of turkey in freezers were down 19 percent from last month and down 10 percent from October 31, 2013.

Total natural cheese stocks in refrigerated warehouses on October 31, 2014 were down 3 percent from the previous month and down 4 percent from October 31, 2013.  Butter stocks were down 5 percent from last month and down 24 percent from a year ago.

Total frozen fruit stocks were up 13 percent from last month and up 2 percent from a year ago.  Total frozen vegetable stocks were up 5 percent from last month and up 3 percent from a year ago.



NE Dept. of Natural Resources Director Resigns


Director Brian Dunnigan of the Nebraska Department of Natural Resources resigned on Thursday. Director Dunnigan was appointed by Governor Heineman to the position in 2008 after serving in the Department for over 30 years. Director Dunnigan said, “It has been a great privilege to serve the citizens of the state and I will miss all of the wonderful people that I have worked with across the state.”

The Department has broad water management authorities, including floodplain management, interstate water management, permitting, and dam safety. During his tenure, Director Dunnigan was able to provide a strong foundation to support effective water management activities across the state by engaging local partners.

Director Dunnigan’s early days as director found him wrestling with key interstate water matters in the Republican River and Platte River basins. His leadership was instrumental in resolving those critical interstate water matters and improving the overall resilience of Nebraskans to respond to extreme droughts and floods. Through the course of Director Dunnigan’s tenure with the Department the disputes of the Republican River Compact have been stabilized and a new path of collaboration with the state of Kansas has been opened. Nebraska has also established a successful plan to implement the requirements of the federal endangered species program in the Platte River Basin. His 25 years of expertise in developing Nebraska’s framework for flood management also allowed for improved floodplain mapping and effective and efficient support in providing timely warnings to those individuals at high risk during flooding events.

Director Dunnigan said, “I certainly appreciate all of the relationships that I have developed over the years and believe that Nebraska is well poised to proactively address our state’s future water needs.”



Nebraska Soybean Day and Machinery Expo Offers 2015 Growing Season Information


            The 2014 Nebraska Soybean Day and Machinery Expo Dec. 18 will assist soybean producers in planning for next year's growing season.

            The expo, 8:30 a.m. to 2:30 p.m., will be in the pavilion at the Saunders County Fairgrounds in Wahoo, said Keith Glewen, Nebraska Extension educator.

            The expo opens with coffee, doughnuts and the opportunity to view equipment and exhibitor booths. Speakers start at 9 a.m.

            Presenters include University of Nebraska-Lincoln researchers and specialists, Nebraska Soybean Board representatives, soybean growers and private industry representatives.

            Ed Usset, a well-known grain marketing specialist from the University of Minnesota, will present a different approach to grain marketing that focuses on eliminating mistakes in “Five Common Mistakes in Grain Marketing.”  Bryce Anderson, DTN ag meteorologist and analyst, will examine the recent trends in historic-strength weather events as he presents, “Are Weather Extremes the New Normal?”  Nebraska Extension policy specialist Brad Lubben will provide perspectives on how to navigate choices in the new farm bill. And Lowell Sandell, field market development specialist, Valent U.S.A., will look at approaches for combatting glyphosate-resistant weeds in “Fighting the War on Waterhemp, Palmer Amaranth and Marestail."

            The expo also will include an update on the Nebraska Soybean Checkoff and association information.

            Producers will be able to visit with representatives from seed, herbicide, fertilizer and equipment companies and view new farm equipment during a 30-minute break at 10 a.m.

            The Saunders County Soybean Growers Organization requests that each participant donate one or more cans of nonperishable food to the food pantry.

            Complimentary noon lunch will be served.

            Registration is available the day of the expo at the door. For more information about the program or exhibitor information, call (800) 529-8030 or e-mail kglewen1@unl.edu.

            This program is sponsored by UNL Extension in the university's Institute of Agriculture and Natural Resources, the Nebraska Soybean Board, Saunders County Soybean Growers Organization and private industry.  There is no registration fee.



EPA Delays Renewable Fuels Standard Announcement


This morning the U.S. Environmental Protection Agency (EPA) announced it would not finalize the 2014 Renewable Volume Obligations (RVOs) for the Renewable Fuel Standard (RFS) this year.

According to the statement released by the EPA, the agency will set the final 2014 volume standard in 2015, and get back on schedule to propose the 2015 and 2016 blending volumes.

"Finalization of the 2014 standards rule has been significantly delayed,” the EPA said in a statement. “Due to this delay, and given ongoing consideration of the issues presented by the commenters, the EPA is not in a position to finalize the 2014 RFS standards rule before the end of the year.”

Originally, the EPA proposed rulemaking to establish 2014 Renewable Fuel Standards Nov. 29, 2013. The proposal led to controversy and comments, which expressed concerns regarding the proposal’s ability to ensure continued progress toward achieving the volumes of renewable fuel targeted by the statute.

“Changes proposed by the EPA in renewable fuel volume requirements for 2014 are not consistent with current law or legislative history,” said Todd Sneller, Nebraska Ethanol Board administrator. “The proposed reductions in biofuel use impede progress toward the use of more domestically-produced renewable fuels that mitigate the adverse impacts of petroleum on public health, the environment and the economy. Consumers deserve a wider variety of transportation fuel choices including E15 and E85. The RFS was intended to ensure choices are available to consumers. Oil companies have an obligation to meet these fuel standards.”

RFS supporters continue to advocate for renewable fuels, particularly cellulosic biofuels, which will reduce greenhouse gases emitted from transportation fuels and help diversify the nation’s fuel supply.



NeFBF Statement on EPA’s Delayed Action on 2014 Renewable Fuels Standard

Steve Nelson, President, Nebraska Farm Bureau Federation

“It is unfortunate and disappointing the Environmental Protection Agency (EPA) has again delayed action in establishing standards for the 2014 Renewable Fuel Standards Program. Pushing back their decision making into 2015, as announced earlier today, only creates unwarranted uncertainty in the marketplace for renewable fuels.”

“The growth in renewable fuels have played a huge role in reducing our country’s dependence on foreign crude oil and at the same time brought new jobs and opportunities for many rural Nebraskans, through development of Nebraska’s ethanol and renewable fuels industries.”



Statement by Iowa Soybean Association President Tom Oswald

Reaction to the EPA’s decision to delay RFS ruling
Iowa Soybean Association President Tom Oswald, who farms near Cleghorn, issued the following statement concerning today’s announcement by the Environmental Protection Agency that it will delay finalizing the 2014 Renewable Fuels Standard (RFS) until sometime next year.

“A delay is better than making an ill-advised decision. However, kicking the can down the road couldn’t come at a worse time for Iowa’s soybean farmers given record production and tightening margins. Inaction in Washington, D.C., has negative consequences for biodiesel producers and farmers across the state.

“The EPA’s decision creates more uncertainty in the biodiesel industry, which discourages investment and expansion. Biodiesel production in Iowa, the nation’s leader, is down as a result. That costs jobs and hurts the state’s economy.

“Soybean oil is a primary feed stock in biodiesel, and limiting markets has curtailed prices at a time when margins are already razor thin or nonexistent.”



SNOW AFFECTS WINTER GRAZING

Bruce Anderson, UNL Extension Forage Specialist


               Snow has covered a lot of winter pasture acres for quite a few days already this winter.  How has it affected your winter grazing?

               November has been snowier and a lot colder than usual.  These early season conditions eventually can affect the ability of your cattle to get the nutrition they need from grazing corn stalks or winter pasture.

               Grazing cattle often select plant parts like corn husks and grain or grass leaves that contain higher amounts of protein or energy than do the coarser stalks and stems.  This early snow can make it difficult for them to make these selections.  So your cattle eat what they can get to easily.  Also, moisture on dead, frozen grass can leach sugars and other soluble nutrients out of the plants.  The end result may be a diet that is less nutritious than usual.  If this goes on for very long your cattle might lose weight and go out of condition.

               So – what can you do about it?  Obviously, you can’t turn on a heater to melt the snow or put nutrients back into the plants.  Instead, you need to estimate how much different your animals’ diets are from normal and provide supplements to replace those nutrients.

               This isn’t difficult.  Normally you probably supplement your cattle after they have grazed the best plant parts.  All the snow does is force you to begin a little sooner or increase the amount they receive by a small amount.

               Of course, I assume you normally supplement correctly.  If your cows usually are a bit fat following winter, maybe they don’t need the extra supplement.  But if you usually end up with cows with just enough weight to be healthy, extra supplement might be needed this year.

               That little extra might make all the difference this snowy winter.



Upper Big Blue NRD to Construct New Headquarters to Serve Public Better


In order to serve the public better and effectively manage the ever-increasing regulatory burden placed upon Nebraska’s NRDs, the Upper Big Blue NRD Board of Directors approved building a new NRD headquarters north of the York County Fairgrounds, after outgrowing the current building the NRD has been in for 32 years.

“The new facility will be a big benefit to the District,” said Upper Big Blue Natural Resources District General Manager John Turnbull.  “Right now the office is full with little room for new staff, has limited utility storage, and lacks a much needed small meeting room.  While the office is handicap accessible it could be better.  Our vehicles and equipment are in various places.  We rent cold storage space across town for spring tree sales.  Parking is a major problem, particularly for landowners conducting business and on meeting days.  Expansion of the existing building is difficult because of our location, lot size and surrounding businesses.  The new modern facility will allow the District to continue to offer the best service to the public.”

The board feels that a new building is necessary to provide for a more efficient layout and smoother work flow, while allowing for a future increase of staff.  The changing work load is due to the regulation of irrigation to ensure long-life of the aquifer and good quality water for District farmers and citizens.  The goal is to continue providing the high level of customer attention and reliable service benefiting District citizens that they are accustomed to. The Upper Big Blue NRD is dedicated to maintaining the face-to-face relationships that have been established for citizens to have personal and transparent access to local government.

The NRD has carefully worked to conserve natural resources and the management of groundwater at the local level for the benefit of all Nebraskans.  Numerous measures such as Community Hazard Mitigation plans and Wellhead Protection Areas have also been established and will continue to be maintained to ensure the safety of District citizens and their families.

The cost for the office building and maintenance/motor pool building is $4.5 million. Construction will begin in the spring of 2015 with a projected completion date of February 2016.



High Nitrate Levels in IA Rivers


(AP) -- Two rivers that supply water to 500,000 people in the Des Moines area show nitrate levels spiking to levels that make it unsafe for some to drink, a concentration experts haven't before seen in the fall that likely stems from especially wet weather in recent months.

The utility that supplies Des Moines and most of its suburbs had workers blending river water with other sources to lower the nitrate levels, but the situation may be nearing the point at which the city starts a process that costs about $7,000 a day to remove them. If that happens, the utility has threatened to sue the state.

On Friday, the nitrate level in the Des Moines River was at 12.8 parts per million and the Raccoon River was at 13.7. The U.S. Environmental Protection Agency requires officials to inform the public about safety risks at 10 parts per million.

Iowa and other states often have problems with nitrates in the spring, when rain washes unused fertilizer from farm fields. But it's unheard of to have spikes so high in November, said Des Moines Water Works CEO Bill Stowe. Scientists believe the current problem is caused by wet weather in the late summer and fall, which sent nitrogen remaining in the soil washing downstream.

"What we're seeing are numbers late into the fall and into the early winter like we've never seen before," Stowe said.

Stowe said so far workers were keeping the drinking water at just over 8 ppm. Water above 10 ppm can be deadly to children younger than 6 months because the chemical can reduce the amount of oxygen carried in their blood. Pregnant women and adults with reduced stomach acidity are advised not to drink water above the EPA limit.

In spring 2013, nitrate levels hit all-time highs on both rivers when a wet spring washed nitrogen from fields after a severe drought. Water Works mechanically cleaned the water at a cost of $900,000 until nitrate levels subsided more than two months later. If it happens again, Stowe said the utility likely will sue, alleging the state is violating the Clean Water Act by failing to reduce the nitrogen levels in rivers.

Monitors in rivers throughout the nation show no other sites with such high nitrate levels. But the issue is especially severe in parts of Iowa given the intense farming and tiling of land. More than 2 million acres in west-central Iowa drain into the Raccoon River, most of it cropland or livestock farms. An estimated 78 percent uses man-made drainage tiles to quickly move water downstream.

Although Iowa began a voluntary program in May 2013 that encourages farmers to make changes to reduce runoff, Stowe and environmental groups argue that strategy is toothless and lacks measurable benchmarks or a timeline for improvement.

For years, environmental groups have called for the state to regulate livestock farms, much as they already do for city wastewater treatment plans, which must have permits that limit release of contaminants into rivers. They're also seeking ways to measure and limit the release of nitrates from fields where tile has been laid underground.

Iowa DNR spokesman Kevin Baskins said the state acknowledges the need to improve its waterways, but that it will take time for voluntary efforts to work. He said farmers are beginning conservation practices and government grants are giving them incentives.

"This isn't something where you just get instant results," Baskins said. "We didn't get into the kind of situation we have today in terms of excess nutrients overnight and we won't get out of it overnight."

Significantly reducing nitrogen levels likely requires slowing the flow of water into rivers by setting up wetlands or planting grasses or other cover crops on harvested fields, allowing the plants to retain water and consume excess chemicals.

"We have millions of acres on which we need to implement this stuff," said Chris Jones, an environmental scientist with the Iowa Soybean Association who has studied the Raccoon River. He said fixing the problem would cost billions of dollars.



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Did you know ...

The checkoff’s Twitter handle @Beef has been on the forefront of new technologies and has been one of the only brands to fully embrace and leverage the second screen movement – targeting consumers who utilize the internet on their laptops or smartphones while, at the same time, are watching TV. These consumers are oftentimes watching their favorite shows and are commenting and discussing them through social media, primarily Twitter. The technology that helps beef target these consumers is called “TeleContext,” a new piece of technology that only the beef checkoff uses. During this initial phase of launching TeleContext, numerous influential bloggers and celebrity chefs from the Food Network have already participated in online conversations with the @Beef handle. Plans for FY15 include expanding the list of shows that will engage the current beef community as well as drive new and potential consumers to beef checkoff recipes, tips and techniques on “Beef. It’s What’s For Dinner.” Shows like the Biggest Loser, The Today Show and Hell’s Kitchen will be added to the list – this will grow beef’s TeleContext audience to over 2.7 million potential Twitter users!

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NMPF Statement on White House Executive Action on Immigration Policy

Jim Mulhern, President and Chief Executive Officer, NMPF
“The executive action announced by the White House this week will not solve the current or future needs of dairy farmers. We still need congressional action, in the form of comprehensive legislative reform of our broken immigration system. This is both an opportunity and an obligation for Congress. We need action in both the House and Senate, with support from both Republicans and Democrats, to do the job that needs to be done.

“NMPF’s focus remains the same going forward, as it has been in the past decade: we must secure a permanent fix to our broken immigration system – and that must be done by the Congress. “Regardless of the executive order announced by the White House, we must continue pressing for a long-term, meaningful solution that provides permanent relief for current workers and future labor needs. It is imperative that Congress address this issue in 2015 and resolve it, once and for all.”



EPA to Delay  Issuing 2014 Standards for the Renewable Fuel Standard Program

(from EPA advanced Federal Register notice)

Today EPA is announcing that it will not be finalizing 2014 applicable percentage standards under the Renewable Fuel Standard (RFS) program before the end of 2014. In light of this delay in issuing the 2014 RFS standards, the compliance demonstration deadline for the 2013 RFS standards will take place in 2015.  EPA will be making modifications to the EPA-Moderated Transaction System (EMTS) to ensure that Renewable Identification Numbers (RINs) generated in 2012 are valid for demonstrating compliance with the 2013 applicable standard. 

On November 29, 2013, EPA published a notice of proposed rulemaking to establish the 2014 RFS
standards. The proposal has generated significant comment and controversy, particularly about how volumes should be set in light of lower gasoline consumption than had been forecast at the time that the Energy Independence and Security Act was enacted, and whether and on what basis the statutory volumes should be waived.  Most notably, commenters expressed concerns regarding the proposal’s ability to ensure continued progress towards achieving the volumes of renewable fuel targeted by the statute.  EPA has been evaluating these issues in light of the purposes of the statute and the Administration’s commitment to the goals of the statute to increase the use of renewable fuels, particularly cellulosic biofuels, which will reduce the greenhouse gases emitted from the consumption of transportation fuels and diversify the nation’s fuel supply.

Finalization of the 2014 standards rule has been significantly delayed.  Due to this delay, and given ongoing consideration of the issues presented by the commenters, EPA is not in a position to finalize the 2014 RFS standards rule before the end of the year. Accordingly, we intend to take action on the 2014 standards rule in 2015 prior to or in conjunction with action on the 2015 standards rule.



NCGA Statement Regarding EPA RFS Announcement


The following is a statement from Chip Bowling, Maryland farmer and president of the National Corn Growers Association, in response to today’s EPA announcement related to the Renewable Fuel Standard:

“Today’s announcement by EPA shows the Administration recognizes the proposed rule was inherently flawed and based on an unworkable methodology.  We will continue to work with EPA to ensure that the 2014 and 2015 renewable fuel requirements are consistent with what Congress set forth in the Renewable Fuel Standard (RFS).

Congress created the RFS to help reduce our dependence on foreign oil and to provide cleaner fuel choices for consumers.  We will continue working to defend the interests of corn farmers and consumers by holding EPA accountable for implementing the law as enacted by Congress.

Corn farmers have produced a second record crop in two years—resulting in corn prices that have fallen below the cost of production in many parts of the country. Our members have been frustrated by the uncertainty and delays surrounding the RFS. When the time came for them to speak up, they did so – loudly and forcefully. Our growers and allies sent the EPA a clear signal when this proposal was first issued, with nearly 200,000 people responding to the public comment opportunity in opposition to the reduction. Nearly 10,000 farmers called the White House directly. We have never before seen so much grassroots interest in a particular issue. Our farmers will continue to raise our voices as necessary in defense of this important policy.”



ASA Reacts to EPA’s Deferral of Biodiesel RVO Number Until 2015


In response to today’s announcement from the Environmental Protection Agency that the EPA would not finalize the 2014 Required Volume Obligations (RVO) will not before the end of the year, American Soybean Association President Ray Gaesser highlighted soybean farmer concerns with EPA’s inaction on the issue.

“The continued delays create great uncertainty for the biodiesel industry and soybean farmers and limits the industry’s ability to invest and expand,” said Gaesser. “The Proposed Rule was unacceptable and would have taken biodiesel backward from the amounts produced and utilized in 2013. However, ASA believes that EPA can and should finalize a 2014 rule that sets the biomass-based diesel volumes at or above the nearly 1.8 billion gallons that were produced and consumed in the U.S. in 2013.” ASA will continue to work with the National Biodiesel Board and industry partners to secure appropriate and beneficial biodiesel RFS volume requirements from EPA and the Administration.”

In making the announcement, EPA noted that it would take action in 2015 prior to or combined with the rulemaking for the 2015 RVO standards.



Statement by Bob Stallman, President, American Farm Bureau Federation, Regarding Delayed Action on 2014 Renewable Fuel Standards

“Renewable fuels have been a tremendous success story for the nation by reducing our country’s dependence on foreign crude oil, reducing air pollution and providing good-paying jobs within rural America. That is why the American Farm Bureau Federation is disappointed in the Environmental Protection Agency’s notice of delay in issuing 2014 standards for the Renewable Fuel Standard Program. Rather than set 2014 standards by the end of the year, EPA has once again delayed action on the 2014 standards.

“This significant delay and inability of the EPA to set standards for the Renewable Fuel Standard Program creates unneeded uncertainty in the marketplace. Even though EPA took the appropriate course in reconsidering its proposed rule after receiving substantial pushback from rural America, Farm Bureau continues to believe that adhering to the framework of the RFS2 remains the best approach.”



RFS Announcement: A Cloud of Uncertainty with a Silver Lining


The U.S. Environmental Protection Agency (EPA) today announced it is delaying finalization of the 2014 Renewable Fuel Standard (RFS) Renewable Volume Obligations (RVO) until 2015. Bob Dinneen, president and CEO of the Renewable Fuels Association, released the following statement:

“Deciding not to decide is not a decision. Unfortunately, the announcement today perpetuates the uncertainty that has plagued the continued evolution of biofuels production and marketing for a year. Nevertheless, the Administration has taken a major step by walking away from a proposed rule that was wrong on the law, wrong on the market impacts, wrong for innovation, and wrong for consumers.

“Moreover, it is clear that one of the reasons we find ourselves in this position is that the oil industry has steadfastly refused to make the investments in infrastructure or allow their marketers to offer higher ethanol blends like E85 or E15. In the absence of their dogged efforts to undermine the RFS, this would be far simpler for EPA.

“The monopoly-protecting talking points of the oil industry notwithstanding, the RFS has been enormously successful. It has compelled competition in motor fuel markets, lowered consumer gasoline costs, and reduced the carbon footprint of transportation fuels. We look forward to working with the Administration to assure this critically important program is implemented consistent with congressional intent, to the benefit of consumers and with the goal of advancing the evolution of biofuels production and marketing.

“Refiners will continue to resist the competition from biofuels. The RFS must be allowed to be the market forcing mechanism it was designed to be. In the end, the verdict on today’s announcement can only be made after a decision on a path forward for biofuels is identified.”



Cost of Thanksgiving Dinner Rises, Still Under $50 for 10


The American Farm Bureau Federation’s 29th annual informal price survey of classic items found on the Thanksgiving Day dinner table indicates the average cost of this year’s feast for 10 is $49.41, a 37-cent increase from last year’s average of $49.04.

The big ticket item – a 16-pound turkey – came in at $21.65 this year. That’s roughly $1.35 per pound, a decrease of less than 1 cent per pound, or a total of 11 cents per whole turkey, compared to 2013.

“Turkey production has been somewhat lower this year and wholesale prices are a little higher, but consumers should find an adequate supply of birds at their local grocery store,” AFBF Deputy Chief Economist John Anderson said. Some grocers may use turkeys as “loss leaders,” a common strategy deployed to entice shoppers to come through the doors and buy other popular Thanksgiving foods.

The AFBF survey shopping list includes turkey, bread stuffing, sweet potatoes, rolls with butter, peas, cranberries, a relish tray of carrots and celery, pumpkin pie with whipped cream, and beverages of coffee and milk, all in quantities sufficient to serve a family of 10. There is also plenty for leftovers.

Foods showing the largest increases this year were sweet potatoes, dairy products and pumpkin pie mix. Sweet potatoes came in at $3.56 for three pounds. A half pint of whipping cream was $2.00; one gallon of whole milk, $3.76; and a 30-ounce can of pumpkin pie mix, $3.12. A one-pound relish tray of carrots and celery ($.82) and one pound of green peas ($1.55) also increased in price. A combined group of miscellaneous items, including coffee and ingredients necessary to prepare the meal (butter, evaporated milk, onions, eggs, sugar and flour) rose to $3.48.

In addition to the turkey, other items that declined modestly in price included a 14-ounce package of cubed bread stuffing, $2.54; 12 ounces of fresh cranberries, $2.34; two nine-inch pie shells, $2.42; and a dozen brown-n-serve rolls, $2.17.

The average cost of the dinner has remained around $49 since 2011.

“America’s farmers and ranchers remain committed to continuously improving the way they grow food for our tables, both for everyday meals and special occasions like Thanksgiving dinner that many of us look forward to all year,” Anderson said. “We are blessed to be able to provide a special holiday meal for 10 people for about $5.00 per serving – less than the cost of most fast food meals.”

The stable average price reported this year by Farm Bureau for a classic Thanksgiving dinner tracks closely with the government’s Consumer Price Index for food eaten at home (available online at http://www.bls.gov/news.release/cpi.nr0.htm), which indicates a 3-percent increase compared to a year ago.

A total of 179 volunteer shoppers checked prices at grocery stores in 35 states. Farm Bureau volunteer shoppers are asked to look for the best possible prices, without taking advantage of special promotional coupons or purchase deals, such as spending $50 and receiving a free turkey.

Shoppers with an eye for bargains in all areas of the country should be able to purchase individual menu items at prices comparable to the Farm Bureau survey averages. Another option for busy families without a lot of time to cook is ready-to-eat Thanksgiving meals for up to 10 people, with all the trimmings, which are available at many supermarkets and take-out restaurants for around $50 to $75.

The AFBF survey was first conducted in 1986. While Farm Bureau does not make any scientific claims about the data, it is an informal gauge of price trends around the nation. Farm Bureau’s survey menu has remained unchanged since 1986 to allow for consistent price comparisons.



Checkoff Lawsuit Seeks to Uncover Why OIG Did an About-Face


In a lawsuit filed today in the U.S. District Court for the District of Columbia,  Organization for Competitive Markets v. Office of Inspector General, the plaintiff alleges that the U.S. Department of Agriculture (USDA) Office of Inspector General (OIG) is unlawfully withholding records regarding the agency's 2011 through 2014 investigation into the USDA-controlled national beef checkoff program.

The OIG investigation followed the 2010 discovery that the National Cattlemen's Beef Association (NCBA) had misappropriated over $216,000 in beef checkoff program funds and all the USDA did at the time was ask that NCBA reimburse the checkoff program for those ill-gotten funds.

R-CALF USA is hopeful the court will order the OIG to release all the records associated with the OIG's multi-year investigation.

"Those secret records are particularly important because the OIG officially withdrew its original report that erroneously concluded that the USDA and the NCBA were operating the beef checkoff program in accordance with the law and that checkoff funds were being properly spent. The OIG later re-issued its report and stated that the facts uncovered during its investigation did not support its original conclusions," said R-CALF USA CEO Bill Bullard.

The OIG's issuance of a corrected report resulted from a  May 9, 2013 complaint that R-CALF USA filed under the 2001 Data Quality Act. The complaint alleged that the OIG's initial report was a "colossal whitewash of monumental proportions," and that it misled Congress and the public because it contained significant "errors, omissions, and falsehoods."

Bullard said the OIG's action of withdrawing its original audit report from the public domain and then reissuing a substantively corrected report is unprecedented.

"The credibility and integrity of the OIG and USDA are called into question as a result of the OIG's action of making false claims that improperly exonerated USDA and the NCBA for their roles in abusing producer checkoff funds.

"After we filed our complaint under the Data Quality Act, Secretary Vilsack unexplainably defended the original, false report by the OIG stating that he had "full confidence" that OIG's audit report on USDA's oversight of the beef checkoff program was proper.

"Then, and even after the Secretary's confidence in the OIG was proven unwarranted when OIG was forced to re-issue a corrected report, USDA  Under Secretary Edward Avalos, nevertheless continued to claim the OIG audit report had exonerated both USDA and NCBA.

"In response to our request that USDA take action to address the abuses within the current beef checkoff program, Under Secretary Avalos stated unequivocally that the OIG had fully addressed all of our concerns and that there is no basis for USDA to take any further action.

"The OCM lawsuit may very well help us to finally get to the bottom of these bizarre circumstances that strongly suggest that both the USDA and the OIG are involved in a serious cover-up designed to preserve the NCBA's primary income stream, which is the tens of millions of dollars it receives each year from the beef checkoff program that is funded by mandatory assessments on independent cattle producers," Bullard concluded.



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