Thursday November 20 Ag News

November’s Rural Mainstreet Index Still Weak: Almost 30 Percent Increase in Regulatory Compliance Costs

The Rural Mainstreet Index moved higher according to the November survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy. The index has been trending lower since June 2013. 

Overall: The Rural Mainstreet Index (RMI), which ranges between 0 and 100, rose to growth neutral, 50.0,up from 43.4 in October.

“Even though the overall index rose sharply, low grain and energy prices continue to restrain the rural economy,” said Ernie Goss, Ph.D., Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business.

Higher input costs and lower crop prices are squeezing farm profitability across the region.  According to Jim Ashworth, president of CNB Bank Shares of Carlinville, Ill., “Some landlords acknowledge that all grain input costs are increasing.  If grain prices can't sustain costs, something will have to give.”

Farming and ranching: The farmland and ranchland-price index for November advanced to a very weak 30.0 from October’s record low 20.2. “Much weaker crop prices continue to take the air out of the bubble in agriculture land prices. This is the 12th straight month that the index has moved below growth neutral,” said Goss.

The November farm-equipment sales index expanded to 18.6 from October’s record low 15.1. The index has been below growth neutral for 16 straight months. “As a result of the more than 30 percent decline in crop prices, farmers continue to reduce their purchases of agriculture equipment,” said Goss.

Nebraska: The Nebraska RMI for November advanced to 48.3 from 43.0 in October. The state’s farmland-price index for November expanded to 21.5 from 13.1 in October. Nebraska’s new-hiring index jumped to 52.5 from October’s 46.9. 

Iowa: The November RMI for Iowa advanced to 49.8 from October’s 40.5. The state’s farmland-price index for November expanded to 30.2 from 18.9 in October. Iowa’s new-hiring index for November rose to 59.5 from October’s 53.9.

Each month, community bank presidents and CEOs in nonurban, agriculturally and energy-dependent portions of a 10-state area are surveyed regarding current economic conditions in their communities and their projected economic outlooks six months down the road. Bankers from Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota and Wyoming are included. The survey is supported by a grant from Security State Bank in Ansley, Neb.

This survey represents an early snapshot of the economy of rural, agriculturally and energy-dependent portions of the nation. The Rural Mainstreet Index (RMI) is a unique index covering 10 regional states, focusing on approximately 200 rural communities with an average population of 1,300. It gives the most current real-time analysis of the rural economy. Goss and Bill McQuillan, former chairman of the Independent Community Banks of America, created the monthly economic survey in 2005.



Saunders Co Bean Growers Plan Bus Tour
Keith Glewen, UNL Extension Educator

The Saunders County Soybean Growers Organization is sponsoring a bus tour on Wednesday, December 3rd to the Lincoln area. Thanks to a grant from the Nebraska Soybean Board a chartered bus has been reserved. In addition, the grant will cover the cost of the noon lunch. The bus will depart from the Fairgrounds in Wahoo at 8:00 a.m. – Sharp! and return by 9 p.m. or sooner.

Some of the stops include:
1.       Prairieland Dairy – did you know the average dairy animal consumes approximately 5# of soybeans per day?
2.       Tour of State Capital, catered lunch and visit with Senator Jerry Johnson on the important issues facing agriculture.
3.       Tour StarTran Bus Company – see and hear how biodiesel has worked over millions of miles in their fleet of busses.
4.       UNL East Campus Dairy Store- ice cream compliments of Keith!
5.       Tour UNL Tractor Testing Lab
6.       Surprise Stop
7.       Dinner – Beacon Hills Restaurant – Enjoyable refreshments and dinner your expense.

To reserve a seat on the bus call the Saunders County Extension Office at 402-624-8030 ASAP. A mailing will also be made in the coming days.



National Biodiesel Board Members Elect Governing Board

National Biodiesel Board members selected their trade association leadership this week, electing five returning governing board members and two new members to serve in leadership roles.

“Biodiesel has faced many challenges but with strong leadership from among all sectors of the industry we are in a position as an organization to face those challenges head on,” said NBB CEO Joe Jobe. “This industry has produced more than a billion gallons of advanced biofuels each of the last three years and will continue to grow into the future under the direction of the board.”

Officers elected to lead the board are:
-    Steven J. Levy, chairman, Sprague Operating Resources
-    Ron Marr, vice chair, Minnesota Soybean Processors
-    Mike Cunningham, treasurer, American Soybean Association
-    Greg Anderson, secretary, Nebraska Soybean Board

NBB members also voted to fill seven board member spots. Members elected to the Governing Board included officers Steven J. Levy, Greg Anderson, and Mike Cunningham along with:
-    Jennifer Case, New Leaf Biofuel
-    Tim Keaveney, HERO BX
-    Robert Morton, Newport Biodiesel
-    Ben Wootton, World Energy

Ron Marr, Gary Haer, Todd Ellis, Kent Engelbrecht, Ed Hegland, Bob Metz, Robert Stobaugh, and Ed Ulch also continue to serve on the Governing Board.

During the annual fall membership meeting NBB members discussed a number of important topics including the current state of federal policies impacting the industry, held meetings of standing committees, and began the annual program planning process.

The NBB governing board also recognized a handful of outstanding members for their involvement in the industry. Those recognized included Wayne Presby, White Mountain Biodiesel; Robert Morton, Newport Biodiesel; Thomas Brooks, Western Dubuque Biodiesel; Grant Kimberley, Iowa Biodiesel Board; Cliff Smith, Mid-America Biofuels; Gene Griffith, Patriot Fuels Biodiesel; and Julia Robbins, New York Corn & Soybean Growers Association.



Cooperative Water Agreement Signed with Colorado, Kansas & Nebraska

Reflecting a new spirit of cooperation, Colorado, Kansas and Nebraska today have reached an historic agreement during a special meeting of the Republican River Compact Administration. Representatives of the States have signed a resolution, approving operational adjustments in 2014 and 2015 under the Republican River Compact that will benefit water users throughout the Basin and set the Administration on a course to find long-term solutions to persistent problems.

Chairman Brian Dunnigan, Nebraska Director of the Department of Natural Resources, cited recent comments by U.S. Supreme Court Special Master William J. Kayatta, who encouraged the States to work toward greater consensus for administering the waters of the Basin. “It is in that spirit that the States have negotiated the resolution that was approved today,” said Chairman Dunnigan.

Today’s signed agreement addresses the operational adjustments address how water is administered for the benefit of irrigators in the Basin. It provides Nebraska with 100% credit for water delivered from augmentation projects to Harlan County Lake prior to June 1, 2015, and the delivered water is for exclusive use by Kansas irrigators.

Today’s agreement is in addition to two cooperative agreements signed in October. Together, these three agreements change the traditional ways the compact has been previously interpreted and implemented for a more cooperative approach.

Kansas Commissioner David Barfield acknowledged that the new resolution comes on the heels of another mutually acceptable pair of resolutions signed in October in Denver, Colorado. “Approving the resolutions will bring significant benefits to the States by preserving the remaining water supply in Harlan County Lake and providing additional certainty to water users throughout the Basin.”

“These resolutions reflect the States’ strong resolve on these matters,” said Dick Wolfe, Commissioner from Colorado. “We know there is additional work to do, but we are moving in the right direction to reach long-term agreements that are fair to all parties and reflect good management of the Basin’s water supply.”

At an October 22 Republican River Compact Administration meeting in Denver, Colorado, two of the agreements were signed. One of the agreements ensured that the Kansas Bostwick Irrigation District in north central Kansas will have a viable irrigation water supply for the 2015 growing season while providing Nebraska certainty of the effectiveness of its compact compliance efforts. The other agreement ensured that Colorado and Kansas will work towards improving Kansas’ water supply on the South Fork Republican River while authorizing Colorado to receive credit in the Compact accounting for operating its augmentation project on the North Fork Republican River.

The Republican River Compact Administration is comprised of one member each from the States of Colorado, Kansas and Nebraska. The purpose of the Republican River Compact Administration is to administer the Republican River Compact. This Compact allocates the waters of the Republican River among the three states.



Soil Health Partnership Field Days Generate Farmer Discussions

There were more than snow flurries sprinkling the Midwest over the past few weeks. In Nebraska, Illinois and Indiana, the Soil Health Partnership was busy holding field days.

In Shelby, Nebraska, SHP demonstration farmer Greg Whitmore told farmers that he approaches soil health by asking himself, "What do I want to happen in specific field? Farmers should consider both the economics and environmental benefits of each soil management practice in their crop plan. One of the unique elements of this program is its emphasis on farmer-to-farmer gatherings that give us an opportunity to discuss what works and what doesn't, what we can change and the time frame for changes."

Whitmore also noted that water quantity looms high on a farmer's list of challenges in Nebraska.

"The soil samples I take help me identify what soil management practices contribute to water efficiency in each of the fields where I want to make a change. After participating in this program, I expect to be better able to assess the interplay of yield with compaction and water filtration, organic matter, the nutrient cycle, and other chemical, physical and biological attributes."

At the Forrest, Illinois field day, Mike Trainor talked about his past experience with cover crops and what he hopes to gain by participating in the Soil Health Partnership.

"What is attractive about this program is the attention it places on the economic benefits of using cover crops," said Trainor.

Dr. Laura Gentry, visiting research assistant professor at the University of Illinois generated farmer interest at the Forrest, Illinois field day when she discussed her research on the local yield effect of stover removal in continuous corn. Depending on market conditions in this part of the Corn Belt, continuous corn can represents anywhere from 10 to 20 percent of the corn planted.

Mark Bramstedt, a soil scientist at the Natural Resources Conservation Service Illinois,  explained that drainage and ponding problems in the local clay soils may actually be compaction and soil pore space issues. As such, these issues could be reduced through tillage practices that increase organic matter rather than through tiling.

Although Tim Seifert and Dave Moose both use soil health management practices on their farms in Auburn, Illinois, they have very different approaches towards implementation.

"Dave and I like to challenge each other on this," said Seifert. "We both struggle with the application of cover crops, but we can deal with the challenges. What we fret about are the results. I've been adopting conservation practices for a long time, but cover crops require an intense management system. It's a tool that depends a lot on mother nature."

While Seifert prefers to take an incremental approach to soil health practices, Moose implements on a broader scale.

"The bottom line is that I want to keep my soil out of Lake Springfield and the Mississippi River," said Moose. "Tim is the tester; I jump in. I'm fortunate that I own the family farm. I guess I can take a few more risks."

Leon Corzine, another SHP demonstration farmer, invited his neighbors in Assumption, Illinois to hear how soil health benefits farmers' operations.

"My son Craig now farms with me. Leaving the farm to him in better shape than I got it is important to me," said Corzine.  "I'm interested in growing cover crops but, like other farmers, I'm not quite sure what will work best. Working with Soil Health Partnership is a way for me to learn more about what I can do."

"The field is a classroom. The question is, 'Are you taking notes?'" said Randy McElroy, a Monsanto technology development representative from Clay County. "Working with cover crops is long term. Farmers need to develop an 18-month to two-year plan to incorporate cover crops into their operation that has flexibility in its implementation because things will change from growing season to growing season."

In Darlington, Indiana, discussions about the Soil Health Partnership's grounding in scientific results dominated farmer interest. Hosts Brent Bible and Brandon Mosely talked about their experiences with managing cover crops and the importance of farmers gathering to exchange information.

"I haven't been using cover crops long enough to understand how best to utilize this tool on my farm," said Bible. "By getting together with technical experts and other farmers and asking questions about new practices, I may just discover the very thing I want to know."

Although each field day concentrated on the same subjects, it was clear that there are a number of ways to implement soil health management practices. This gives testament to the diverse approach the partnership takes in defining soil health.



Red Meat Production Down 4 Percent From Last Year

Commercial red meat production for the United States totaled 4.32 billion pounds in October, down 4 percent from the 4.51 billion pounds produced in October 2013.

Beef production, at 2.17 billion pounds, was 6 percent below the previous year. Cattle slaughter totaled 2.64 million head, down 9 percent from October 2013. The average live weight was up 28 pounds from the previous year, at 1,355 pounds.

Veal production totaled 7.7 million pounds, 22 percent below October a year ago. Calf slaughter totaled 43,300 head, down 38 percent from October 2013. The average live weight was up 59 pounds from last year, at 304 pounds.

Pork production totaled 2.13 billion pounds, down 2 percent from the previous year. Hog slaughter totaled 9.95 million head, down 4 percent from October 2013. The average live weight was up 8 pounds from the previous year, at 286 pounds.

Lamb and mutton production, at 13.4 million pounds, was up 2 percent from October 2013. Sheep slaughter totaled 207,700 head, slightly below last year. The average live weight was 129 pounds, up 3 pounds from October a year ago.

January to October 2014 commercial red meat production was 39.5 billion pounds, down 4 percent from 2013. Accumulated beef production was down 6 percent from last year, veal was down 14 percent, pork was down 1 percent from last year, and lamb and mutton production was down slightly.

By State  (million pounds, % of Oct '14)
Nebraska ....:     687.8             99      
Iowa ...........:     622.6            103      



Greater trust in farming accompanies this holiday season, Food & Family Project survey finds

More Iowans understand how the food they’ll serve this holiday season is grown and they increasingly trust farmers to do a good job growing it, according to an Iowa Food & Family Project (Iowa FFP) survey.

Ninety-five percent of respondents said they are “very” and “somewhat” knowledgeable about how the food they purchase is produced, up 6 percentage points from last year and 9 points from 2012. The survey also found 81 percent of people have a positive impression about farming.

The Consumer Pulse survey, conducted by Campaign HQ of Brooklyn, polled 353 health-conscious Iowans who make the majority of their household’s food purchases. Respondents were queried on a variety of food topics, their familiarity with the Iowa FFP and how that familiarity changes their perceptions about today’s farms and food system.

Fifteen percent of respondents said farmers “do things right regardless of financial benefit,” up 6 percentage points from last year. Sixty-one percent believe growers “balance doing what’s right” with profit, while just 14 percent think farmers are “driven solely by profit,” down 4 points from last year.

These results matter to Cristen Clark, a grain and pig farmer near Runnells. Public perception is influenced by many things, she said, including speculation and a lack of information and transparency. Therefore, having conversations with Iowans and answering their questions about what farmers do and believe are important.

“There is a concerted effort by families to work the land and care for the livestock in a way that allows us to provide the next generation — our children — with a farm that is just as productive or more productive than how we found it,” said Clark, who volunteers as an Iowa FFP advisory team member. “I take pride in passing on farming for my kids just as my great-grandfather did for me. That’s a story I want to share.”

Launched in 2011 by the Iowa Soybean Association (ISA), the Food & Family Project facilitates greater confidence among food-minded Iowans about how food is grown and acquaints them with the farmers who grow it. Partners include Hy-Vee, Iowa Beef Industry Council, Iowa Egg Council, Iowa Pork Producers Association, Iowa Soybean Association, Subway, Midwest Dairy Association, Iowa Corn Growers Association and Casey’s General Store, to name a few.

Programs include Join my Journey with Iowa Girl Eats Kristin Porter, in which the popular Des Moines food blogger invites people to follow along as she learns about production agriculture and You on the Farm tours that provide urban residents a chance to experience farm activities. Iowa FFP is also a presenting sponsor of the Iowa Games and a supporter of Live Healthy Iowa.

Survey results indicate the Food & Family Project is having success. People familiar with the Iowa FFP said they are more knowledgeable about farming and have a more favorable impression about production agriculture. They’re:
·         Ten percent more confident that farmers care for the well-being of their livestock
·         Nine percent more confident that farmers protect the environment
·         Nine percent more trusting that farmers balance doing what’s right with financial considerations
·         More likely to pay attention to food labels and seek details about how food is grown

“What these numbers tell us is that we’re influencing the food influencers,” said Iowa FFP Coordinator Aaron Putze. “Those involved in the Iowa FFP have a passion for helping Iowans be healthier, happier and more informed about the food they love and the farmers who grow it. Our work is groundbreaking and the results are real, positive and measureable.”

Paula Hender of Ankeny agrees. As a mother, food safety is at the top of the list when buying groceries so she values the opportunity to actively engage in conversations about how food is grown.

Earlier this fall, Paula was selected as a You on the Farm contest winner and, with her husband Derek and sons Jason and Dylan, joined farmers Kevin, Julie, Jacob and Emily Van Manen of Kellogg for corn harvesting. The tour reaffirmed Paula’s opinion that farmers have her best interest in mind when it comes to providing wholesome food.

“I have concerns just like other moms and sometimes they lead me to question the choices I make,” she said. “I want to be confident and purchase food that tastes good and is good for my family. Connecting with the Food and Family Project and Iowa’s farmers has been very helpful.”

The Iowa FFP also queried Iowans about food labels and advertising claims. Seventy-seven percent of consumers said they find labels helpful, a dramatic increase from 31 percent a year ago. Food quality matters most when making food purchases (35 percent), followed by safety (24 percent) and price (21 percent).

Respondents expressed most satisfaction with food labeled “local” (62 percent) but definitions of “local” varied greatly. Food labeled “organic” continues to lose favor among consumers with just 25 percent of those polled saying it’s better than food not labeled “organic,” down 11 points from 2013.

A detailed report on the survey’s findings can be found at www.iowafoodandfamily.com.



STC’s 5th Annual Railroad Report Card: Grain Shippers Rate Union Pacific Best Railroad Amid Widespread Frustration

The Soy Transportation Coalition (STC) released its fifth annual Railroad Report Card last week and Union Pacific reclaimed its position as the top performing railroad. The top ranked railroad in 2011 and 2012, Union Pacific finished second to CSX in 2013. Norfolk Southern Railway climbed to second place from its third place ranking in 2013. Survey respondents ranked Canadian Pacific in last place for the fourth year in a row.

The survey was completed anonymously by agricultural shippers of various sizes and scale of operations and has been comprised of the same eleven questions since the report card’s inception.  Surveys were completed and submitted during September and October. The questions are categorized under: 1.) On Time Performance; 2.) Customer Service; and 3.) Costs. For most questions, participants were asked to rate each of the seven Class I railroads on a scale from 1-10 with ten being the highest and one being the lowest.  The 2014 survey had the largest number of participants in the history of the report card.

After combining the results from the 11 survey questions, Union Pacific received the highest overall rating. The company ranked first in six out of the eleven questions.  Canadian Pacific, rated as the lowest performing railroad, received a last place ranking in each of the 11 questions.

Soy Transportation Coalition Rail Customer Satisfaction Index –  Overall Ratings:
1.)  Union Pacific Railroad
2.)  Norfolk Southern Railway
3.)  CSX Transportation
4.)  Canadian National Railway
5.)  Kansas City Southern Railway
6.)  BNSF Railway
7.)  Canadian Pacific Railway

Overall, the survey revealed substantial frustration with the condition of rail service in 2014. On average, railroads received a 14 percent lower score than in 2013.  Survey respondents in 2014 rated railroads 28 percent lower in their ability to provide on time service – the largest area of decline from the previous year.  Moreover, average scores for each of the eleven questions were lower than in 2013 – confirming the widespread conclusion among agricultural shippers that rail service has been inadequate.



U.S. Pork Output Could Reach New Highs in 2015

The United States is projected to produce 10.868 million metric tons and 10.858 million metric tons of beef and pork in 2015, respectively. If realized, this will be the lowest beef production in 23 years, but the most pork produced in history.

The difference between beef and pork production in 2015 is an estimated 10,000 metric tons. This will be the closest beef and pork production ever seen before.

The country first produced over 10 million metric tons of pork in 2008 and has has produced more than 10 million metric tons every year since then. The U.S. first produced 10 million metric tons of beef in 1970. It has produced more than 10 million metric tons every year since then except for three years.

In 1975 and 1976, the United States produced 53 percent more beef than pork. The U.S. produced 30 percent more beef than pork in 2000.



CattleFax Webinar Helps Producers in High-Price Environment

Cow-calf producers are at a fork in the road, according to CattleFax, the global leader in beef industry research, analysis and information. The current expansion environment has produced record profitability and exposed the segment to more financial and production risk than any other time in recent history. CattleFax will address this challenge during its next Trends+ Cow-Calf Webinar at 5:30 p.m. MT, Jan. 21, 2015.

Calf prices are nearly $100/cwt. higher than last year at this time, and bred cow values have increased nearly $1000/head in the last year. The dynamic market shift occurring in 2014 has motivated cow-calf expansion and created indecision at the same time.

During the one-hour session, CattleFax analysts Mike Murphy and Lance Zimmerman will discuss how producers can navigate marketing decisions and business plans for the next five to 10 years. To participate in the webinar and access program details, producers and industry leaders simply need to register online at www.cattlefax.com/meetings.aspx.

Elanco Animal Health is sponsoring the webinar – making it free for all cattle and beef producers to benefit from CattleFax’s analysis and perspective on factors influencing the cow-calf, stocker and backgrounding businesses. The webinar will include …
-    A winter and spring 2015 market outlook for breeding cattle, calf, feeder cattle and feedstuff markets,
-    Advice on high-return cowherd and bull purchasing decisions, and
-    Considerations on the long-term implications of U.S. beef cowherd expansion

The Trends+ webinar is designed to inform cattle producers about current market realities and provide producers with decision-friendly information to assist in making intelligent marketing decisions. More than 1,500 producers have benefitted from the analysis and strategies shared through the webinar series since September 2013.



Farm Bill Allows Early Termination for Certain CRP Contracts

The Farm Service Agency reminds producers with acres under contract through the Conservation Reserve Program (CRP) that they can apply for early contract termination, as required by the 2014 Farm Bill.  The deadline to request early CRP contract termination is Jan. 30, 2015.

This is a unique opportunity to request early termination afforded by the 2014 Farm Bill. The earliest effective date for this early termination is October 1, 2014. The requesting CRP contract must have been in effect for at least five years and additional eligibility conditions must be met to qualify.  The 2014 Farm Bill identifies a list of 10 exceptions whereby land will not be eligible for the early termination provisions.  For a complete list of these exceptions, please view the program fact sheet online at http://www.fsa.usda.gov/Internet/FSA_File/crp_opt_out_fact_sht.pdf. 

Once a CRP contract termination request is approved by the FSA County Committee, the decision may not be reversed and the terminated contract will not be reinstated. Once the land is no longer considered under the CRP contract all participants must meet HEL/WC and other conservation compliance provisions for all associated lands.

For more information or to verify eligibility for early termination (opt-out) for existing CRP contracts, please contact your local FSA office.  For local FSA Service Center contact information, please visit: http://offices.sc.egov.usda.gov/locator/app.



Soy Checkoff Farmer-Leader Appointed USFRA Chairperson

The United Soybean Board (USB) congratulates soy checkoff farmer-leader Nancy Kavazanjian on her election as chairperson of the U.S. Farmers & Ranchers Alliance (USFRA).  Kavazanjian, a soybean farmer from Beaver Dam, Wisconsin, is in her fourth year as a USB farmer-director.

“Nancy is a dedicated farmer-director and a great asset to our industry,” says USB Chairman Jim Call, a soybean farmer from Madison, Minnesota. “She’ll continue to be a leader in telling ag’s story.”

Previously, Kavazanjian served as vice chairperson of USFRA, which consists of more than 80 farmer- and rancher-led organizations and agricultural partners representing virtually all aspects of agriculture. The organization works to engage in dialogue with consumers who have questions about how today’s food is grown and raised.
“Our goal at USFRA is to build trust in the way American farmers and ranchers produce food, and this helps to maintain our freedom to operate,” Kavazanjian says. “This mission is at the heart of both USFRA’s and USB’s work.”

In addition to her leadership roles within the soy checkoff and USFRA, Kavazanjian is also a member of two state-level organizations: the Wisconsin Corn Growers Association and Wisconsin Women in Agriculture. She is also a contributor to her family’s farming operation, Hammer & Kavazanjian Farms, which grows soybeans, corn and wheat.




Export Exchange Follow-Up: Southeast Asia DDGS Buyers Still Adapting to Low-Oil DDGS

During last month’s Export Exchange program in Seattle and associated pre- and post-tours, Council staff discovered that some end-users in Southeast Asia are still learning how to adjust to the newer, low-oil distiller’s dried grains with solubles (DDGS) now reaching the market.  Many are limiting inclusion rates to dampen the effects of nutrient composition variability from different DDGS producers.

U.S. Grains Council (USGC) staff and consultants are now conducting intensive follow-up outreach throughout Southeast Asia to address questions raised by local customers. By promoting new equations that predict the amount of energy livestock can metabolize from DDGS, the Council hopes to familiarize Southeast Asian nutritionists with low-oil DDGS.

Low-oil DDGS is produced when ethanol producers use corn oil extraction equipment that removes part of the non-food grade corn oil in DDGS. The oil is a valuable co-product that can be made available for other uses, but its extraction changes the feeding characteristics and potential value of DDGS. Traditional DDGS may contain 10 to 12 percent oil (fat), while low-oil varieties contain 6 to 9 percent.

The prediction equations are simple tools that feed mills can use to manage the variability in nutrient content and therefore extract the most value possible from DDGS.

“We need to be careful when using published energy and nutrient composition values from references, especially for low- and medium-oil DDGS, because they represent a limited number of samples and not a lot of information about nutrient composition was known for low-oil DDGS when the reference was published in 2012,” said Dr. Gerald Shurson of the University of Minnesota.

“Removing oil from DDGS leaves a challenging puzzle for nutritionists with regards to energy. Conventional wisdom tells you if you remove oil, you reduce energy, but that’s not necessarily true.”     

So far in the 2014 marketing year through September, Southeast Asia has imported more than 1 million metric tons of U.S. DDGS, making it the third largest importing region behind East Asia and North America, which include the top importers of U.S. DDGS this marketing year, China and Mexico.

“Whenever you’re not familiar with a new product, the easy answer is to not use it. However, this really puts an industry behind the technology curve and dampens competitiveness. This is certainly the case with DDGS inclusions,” said Kevin Roepke, USGC regional director for South and Southeast Asia.

“When much of the technical information is only available in a language our customers don’t understand, it’s incumbent upon the Council to keep cutting edge technologies and information at the disposal of international feed ingredient formulators.”

Another issue raised during the Export Exchange program was antibiotic residues in DDGS. Ethanol producers sometimes use antibiotics, particularly virginiamycin, to manage bacterial contamination in the fermentation process as bacteria competes with yeast for sugars and can reduce ethanol yield and DDGS nutritional value.

However many end-users in Thailand are becoming increasingly concerned about feed products with antibiotic residue due to their interest in the European market. USGC staff and consultants assured end-users during these follow-ups that residual concentrations are extremely low in DDGS and much less than the U.S. Food and Drug Administration (FDA) approved level for feed products for animals. Additionally, the majority of residues in DDGS are inactivated during the distillation process.

The Council recognizes the strong potential for exports of U.S. coarse grain and co-products to Southeast Asia and will continue to provide market education and trade servicing to increase U.S. market share in this dynamic region.     



Rebuild, Restore, Renew: Bio S.I.’s SD 25 To The Rescue

Under normal conditions, the four seasons of farming are outlined by specific requirements and crucial steps between preparing, planting, growing and harvesting in order to sustain effective agricultural results. With ongoing and unprecedented drought conditions  in place, pile and burn tactics not only hold an even greater fire hazard as the land is already so dry and readily flammable, but they also fail to restore the soil with essential carbon and microbial life. The current “mega-drought” has farmers in 30-35% of the country facing moderate to extreme drought conditions, according to the US Drought Monitor[1].  These conditions, mixed with the cold winter months ahead, one would think would be worst time to consider doing something to rebuild the humus (carbon fraction) of the soil or replenishing the soil life.  However, experience shows it is a great time to do just that.

Microbes do a lot of work during the winter months.  It has been demonstrated that microbial activity increases the soil temperature by 2-4 degrees when organic matter is available for digestion. By using Bio SI Technology’s (www.biositechnology.com) SD 25 Field Stubble Digester beneficial soil microbes will be added to the soil that digest the plant debris (stubble) left behind after harvest, recycling the nutrients tied up in the plant debris for the next crop. This activity makes both nutrient and water use more efficient.  Soil microbes, are essential to restore carbon, improve water efficiency, and improve nutrient holding capacity of the soil.  Without a proper mixture of microbes in the soil, organic matter can’t be totally broken down and the soil becomes clogged with two much undigested organic matter that ties up nutrients. SD 25 Field Stubble Digester replenishes the soil with naturally occurring microbes that convert and recycle nutrients tied up in stubble to make them available for the next crop.

“SD 25 works beyond the growing seasons to prepare fields for future planting by releasing the nutrients tied up in leftover debris,” says Bio S.I. Founder and CEO, Wayne Tucker.  “Plant debris can be a real problem for the next planting season for some growers. SD 25 helps farmers re-use nutrients they have already paid for plus the benefits of adding carbon (humus) to the soil which holds water and nutrients in their fields.”

The conversion of plant debris to humus aerates the soil, improves soil tilth, and improves water penetration. Creating healthy soils is essential to continuous production of healthy, nutritious food for future generations. SD 25 is an all-natural microbial formula that is safe for organic use.  Unlike other stubble digesters, SD 25 is free of preservatives, which makes it safe for use in any setting.

After harvest and before the ground freezes, growers should apply the initial application.  SD 25 can be used successfully in till and no-till regimens, although it is important to beat the first freeze because microbial activity and decomposition are significantly slowed by cold temperatures. Growers will notice debris is significantly decomposed within 60-75 days. Apply 20-25 oz. of SD 25 per acre with a minimum of 10 gallons of water per acre. Also add nitrogen to balance the C:N ratio for better breakdown.  SD 25 can be used to digest any leftover plant debris; whether that is from corn, wheat, beans, barley, cotton, rice, milo, beets, sugar cane, hops, grasses or any other crop.