Wednesday November 12 Ag News

Farm Credit CFOs See Interest Rates Rising, Borrowers Locking In Fixed Rates

A poll of chief financial officers for Farm Credit lenders in America’s heartland found that, after several years of low interest rates, the cost of borrowing is expected to rise as the Federal Reserve contemplates tightening monetary policy.

“The poll reflects the consensus among economists and market participants that the Federal Reserve will begin raising interest rates by the middle of 2015 or early 2016,” said Brian O’Keane, executive vice president Banking and Finance, and CFO of AgriBank. “The Fed has kept interest rates low to encourage economic activity, remove slack from the labor force and keep inflation from falling too far, or turning into deflation. Now that the economy is slowly but steadily growing, the Fed is expected to increase interest rates to help keep inflation in check.”

The Federal Funds rate, the short-term interest rate set by the Fed and upon which other short-term U.S. interest rates are based, has been effectively zero since 2009 near the end of the Great Recession. The CFOs said they expect the Fed Funds rate will be, on average, 0.46 percent in one year, 1.09 percent in two years and 1.89 percent in three years. The CFOs expect the 10-year U.S. Treasury yield, currently just over 2 percent, to increase, on average, to 2.64 percent in one year, 3.18 percent in two years and 3.82 percent in three years.

St. Paul-based AgriBank conducted the poll Oct. 27-Nov. 3 among CFOs for the Bank and its 17 affiliated Farm Credit Associations, which provide agricultural loans in a 15-state area stretching from Wyoming to Ohio and Minnesota to Arkansas. Farm Credit is a top source of loans for agriculture and rural borrowers in these states. Seventeen of 18 AgriBank District CFOs participated in the poll.

BORROWERS PREPARE FOR HIGHER INTEREST RATES
During the past several years of relatively low interest rates, many borrowers have locked in fixed interest rates on their long-term debt. In the poll, 65 percent of the CFOs said they expect more farmers, ranchers and agribusinesses in the territories they serve to lock in interest rates on long-term debt during the next year.

The CFOs’ outlook for investments in farm, ranch and agribusiness operations is moderate. Of those polled, 63 percent expect ag operations to hold steady their investment in new employees, with 25 percent expecting a decrease in investment and 6 percent expecting an increase. The CFOs were split 50-50 as to whether ag borrowers would hold steady their investment in new equipment or decrease such investment. And 60 percent said they expect farmers, ranchers and agribusiness to hold steady their investment in farmland, versus 33 percent who said they expect an increase and 7 percent who expect a decrease.

“Now is the time for borrowers to understand and minimize the potential effect of rising interest rates on their operations before the anticipated rate increases begin,” O’Keane said. “Farm Credit Associations offer multiple interest rate options and cash management solutions that can help them hold down the cost of borrowing.”

During the week the poll was conducted, the Fed announced it would end its $3 trillion bond-buying program, which it had been using to stimulate the economy — another signal the Fed is contemplating tightening monetary policy.



Exports Adding More Value to U.S. Pork
The record pace of U.S. pork exports continues to accelerate and put more money in producers' pockets, despite intense global competition and other market challenges.

"We can be proud of what we've accomplished with exports," said Brian Zimmerman, a pork producer from Beatrice, Neb., who chairs the Pork Checkoff's International Trade Committee. "Through the first eight months of 2014, exports made up 28 percent of U.S. pork and pork variety meat production, and the value of exports amounted to $65.29 per hog."

The numbers reflect an upward trend from 2013, when exports comprised 26 percent of U.S. pork production, and the value of exports equated to $53.95 per head.

Exports to leading markets, such as Mexico, Japan and South Korea, continue to increase. Also, for the first eight months of the year, the U.S. pork export volume was up 6 percent at 1.48 million metric tons, while the value increased 15 percent to $4.53 billion, compared with the same time period in 2013.



Ethanol Saving Nebraska Motorists Millions

In recent weeks, falling gas prices have captured the attention of Nebraska drivers. While lower crude oil prices account for some savings, the greater savings are from Nebraska-produced ethanol blended with sub-octane gasoline at the state’s fuel terminals.

Between September 2013 and September 2014, 75.2 percent of the 840.7 million gallons of motor fuel sold in Nebraska contained ethanol. With the wholesale cost of ethanol blends averaging $0.295 per gallon below all-hydrocarbon blends from U.S. refiners, Nebraska motorists and businesses saved $187.5 million.

Ethanol blends are even more important since U.S. petroleum refiners announced a policy to terminate supplies of minimum-octane gasoline to Nebraska fuel terminals in September 2013.

“Petroleum refiners sell sub-octane fuel because they can squeeze more gallons out of each barrel of oil they process,” said Steve Sorum, Nebraska Ethanol Board project manager.

Instead of a minimum 87 octane product required by federal regulation, refiners now supply 84 octane fuels to eastern and central Nebraska terminals. In western Nebraska, where 85 octane is standard because of higher elevations, refiners supply 82 octane. This sub-octane gasoline is not suitable for sale to the public until ethanol is added to increase octane. Some marketers opt to increase the octane to legal limits by adding more expensive premium grades of gasoline. This process increases the price and toxicity of the final gasoline blend, said Sorum.

According to Sorum, this policy is now in effect across the country, so all motor fuel supplied to U.S. terminals must be blended with 91 octane premium-grade gasoline or 113 octane ethanol to meet federal regulations.

“U.S. ethanol production is a primary factor in the resurgence of domestic liquid energy production,” Sorum said. “Ethanol now accounts for more than 11 percent by volume of all motor fuels sold in the U.S. Along with increasing domestic crude oil production, ethanol is helping the U.S. approach the once seemingly impossible goal of U.S. energy self-sufficiency.”



Nebraska Farm Bureau Reaches 2014 Membership Quota with 35 Quota Counties

Nebraska Farm Bureau has made its membership quota for 2014. We have turned the corner on membership and I look forward to continued growth in the coming years, Phil Erdman, NFBF vice president of membership said Oct. 3.

“Congratulations to county leaders and career agents! It’s their leadership, innovative ideas and hard work that make consistent membership growth possible year after year. This has truly been a great accomplishment,” Erdman said.

The numbers show that we increased our membership more in 2014 than in 2012 and 2013 combined.

“Our organization had more than 7,000 new members join and ended the year with a nearly 92 percent retention rate. Over all we had a fantastic year. With our current group of employees, county leaders and career agents I know we are ready and willing to work hard to ensure Farm Bureau has another stellar year,” said Lisa Klutz, director of member benefits and database.

The counties that made quota are:
NORTHWEST DISTRICT: Cherry; Sheridan; Thomas.
CENTRAL DISTRICT: Buffalo; Garfield; Hall; Polk; Sherman/Valley.
NORTHEAST DISTRICT: Boyd; Brown; Cedar; Cuming; Dakota; Holt; Madison; Rock; Stanton; Thurston; Wheeler.
SOUTHEAST DISTRICT: Douglas; Fillmore; Johnson; Lancaster ;Sarpy; Saunders; Seward; Thayer; York.
SOUTHWEST DISTRICT: Adams; Chase; Clay; Dawson; Frontier; Lincoln; Nuckolls.

Another thank you goes out to the 32 counties that participated in the Investment in the Future program for 2014 bringing in 104 new members. Be watching for the announcement of the 2015 program very soon.

“This has been a successful program and I hope more counties take advantage of it in the 2015 membership year. The focus of this program is bringing in new future leaders into the organization,” Erdman said.

The 2015 membership year is well under way as of October 1 and I encourage all of our counties to continue planning your activities to recruit new members and get them involved in your county Farm Bureau. Now let’s go out and reach our membership goals, he said.



New Faces to Join NE Farm Bureau Staff       

Nebraska Farm Bureau is pleased to announce that Sallie Atkins of Thomas County and Dayna Wasserburger of Lincoln County will be joining the staff of Nebraska Farm Bureau. Atkins will serve as Regional Director of Membership in the newly created Farm Bureau district in North Central Nebraska. Wasserburger will serve as the Regional Director of Membership in Southwest and South Central Nebraska. Wasserburger will fill the vacancy created by the upcoming retirement of long-time Southwest Regional Director Dick Neel.  Both Atkins and Wasserburger will start with Farm Bureau in January.

Sallie Atkins and her husband Alan farm and ranch in Thomas County on the same land where their families began their rich agriculture tradition.  She has devoted her life to “walking the talk” and making a difference in the lives of farmers and ranchers.  Before joining Nebraska Farm Bureau, Sallie served as the Executive Director and Chairman of the Nebraska Beef Council and numerous foundations from Nebraska Rural Radio, NEBRASKAland, to Nebraska 4-H and FFA.  She received the Nebraska Volunteer of the Year award in 2011 for her work on the State Fair.  Sallie is currently serving on staff with US Senator Mike Johanns and will officially join Farm Bureau on Jan. 5.

Dayna Wasserburger and her husband Trey live in Lincoln County.  Dayna and her family have deep roots in Nebraska agriculture.  She grew up in Lincoln County where her family farms and owns a cattle feeding operation and a quarter horse business.  She is currently working with ESU 16 as a speech language communications assistant.  With Dayna’s strong agricultural roots and experience building relationships in rural Nebraska it makes her an exciting addition to our team.  She will be officially joining the Nebraska Farm Bureau Team on Jan. 1.



Ag Progress Show Will Help Producers Increase Profitability

            A Dec. 17 Ag Progress Show at the Atkinson Community Center in Atkinson will give producers an opportunity to hear research-based information on current topics that potentially could increase their profitability, a University of Nebraska-Lincoln Extension educator said.

            Anyone who raises crops or beef cattle should attend the show, said Amy Timmerman, extension educator in Holt/Boyd counties.

            Timmerman said past participants have said the show is "very informative" with "relevant speaker topics."

            The show will start at 8:30 a.m. with the program starting at 9 a.m. The exhibit hall will close at 5 p.m. Commercial exhibits present during the entire show.

            No registration is necessary. The show will include a beef and cropping systems meeting and a door prize drawing for two tickets to the Nebraska vs. BYU football game on Sept. 5, 2015.

            Speakers and presentations include:
            – Tim Lemmons, UNL Extension Educator, "2014 Farm Bill Opportunities and Decisions"
            – Dale Blasi, Kansas State Extension Specialist, "Stocker Receiving and Health Management" and "Animal Electronic Identification Technology"
            – Joe Luck, UNL Extension Specialist, "Precision Agriculture"
            – Roger Elmore, UNL Extension Specialist, "Corn Growth, Development and Management"
            – Matthew Spangler, UNL Extension Specialist, "Genetic Selection Tools in Beef Cattle: What to Use and When to Use It"

            Lunch is complimentary, and there is no cost to attend. For more information, contact Timmerman at the Holt Count Extension office at 402-336-2760.



Poll: Rural Nebraskans Can't Always Get What They Need

            There's a gap between what characteristics rural Nebraskans say are essential in a community and what currently exists in theirs, according to the Nebraska Rural Poll.

            The findings may reflect rural residents' acceptance of the trade-offs that are inherent in their lifestyle: Certain wants and needs can't be met there, but other qualities make the lifestyle worthwhile.

            The 19th annual University of Nebraska-Lincoln poll was sent to 6,813 households in 86 Nebraska counties last spring. Results are based on 1,943 responses.

            At least half of respondents said the following characteristics are "absolutely essential" in a community to have a high quality of life: sense of personal safety, a quality school system, jobs/economic opportunities, available medical services, affordable housing, quality housing, well-maintained infrastructure, effective community leadership and a strong church/religious community.

            For most of those characteristics, the percentage saying they're essential is higher than the percentage saying it describes their current community. For example, 77 percent said having quality jobs/economic opportunities is absolutely essential, but only 11 percent said their community has this to a great extent.

            Other comparisons between what residents said is essential and what they said is present in their community to a great extent include: a quality school system, 77 and 44 percent; affordable housing, 65 and 15 percent; and well-maintained infrastructure, 57 and 19 percent.

            "It's amazing and a little problematic," said Cheryl Burkhart-Kreisel, associate professor and UNL Extension community vitality specialist. "If you think these things are essential and they're not there, it could be a little frustrating. Obviously, other characteristics are also very important to them."

            Since the last time these questions were asked in the Rural Poll, in 2002, respondents rated the following community characteristics higher this time: jobs/economic opportunities, up from 65 to 77 percent; affordable housing, up from 60 to 65 percent; and adequate information technology, up from 27 to 31 percent.

            There were declines in a number of characteristics, including a clean and attractive natural environment, down from 57 to 49 percent; friendly people, down from 55 to 46 percent; a sense of community among residents, down from 49 to 42 percent; and a local newspaper willing to report controversial news, down from 36 to 30 percent.

            Poll organizers noted significant differences among age groups. Younger residents ranked some characteristics as more essential than older respondents, including jobs/economic opportunities, affordable housing, available child care services, recreational opportunities, quality school system, available college classes, lack of congestion and a sense of personal safety.

            The Rural Poll is the largest annual poll of rural Nebraskans' perceptions on quality of life and policy issues. This year's response rate was about 29 percent. The margin of error is plus or minus 2 percent. Complete results are available online at http://ruralpoll.unl.edu.

            With its 19-year history, the poll has a collection of data about rural trends and perceptions that is unmatched in the country, said Becky Vogt, survey research manager who's been working on the Rural Poll since its second year.

            Although the Grand Island area (Hall, Hamilton, Howard and Merrick counties) was designated a metropolitan area by the U.S. Census Bureau in 2013, the Rural Poll continues to include those counties in its sample. Also, Dixon and Dakota counties were added to the poll this year.

            The university's Department of Agricultural Economics conducts the poll in cooperation with the Nebraska Rural Futures Institute with funding from UNL Extension and the Agricultural Research Division in the Institute of Agriculture and Natural Resources.



ISU & SDSU Specialists to Discuss Lamb Carcass Quality and Value

Sheep producers and agribusiness staff will learn how to improve lamb carcass quality, resulting in better returns for the producer at a Dec. 9 meeting in Sheldon, Iowa. The lamb meeting is cooperatively sponsored by Iowa State University Extension and Outreach, Northwest Iowa Sheep Producers, Iowa Sheep and Wool Promotion Board, and Premier 1. The meeting will be held at the Pizza Ranch and begins with a 6 p.m. dinner, followed by a short business meeting and presentations from various university sheep specialists.

Jeff Held, extension sheep specialist at South Dakota State University, will lead off with “Managing Market Lambs to Minimize Shrink”.  Currently producers are paid on live weight delivered to the packing plant or carcass weight after the lambs are harvested.  In either case, it is important to reduce the amount of weight lost in transportation and/or the harvest process.  Held will discuss best management practices that reduce shrink and thus improve the financial return to the producer.

Dan Morrical, extension sheep specialist with Iowa State University will follow. He will discuss feeding approaches with market lambs that will improve yield grades. “Yield grades are a measure of the boneless, closely trimmed retail cuts from the shoulder, rib, loin and leg.  A recent Lamb Industry Report indicated that eliminating excess fat and providing consistent quality are top priorities for the American lamb industry,” said Morrical. “I’ll present approaches producers can implement to reduce excess carcass fat.”

Cost to attend the meeting is $6 per person for the meal, payable at the door. Participants should register by Dec. 3 by calling the ISU Extension and Outreach office in Sioux County at 712-737-4230 or email Beth Doran, ISU Extension and Outreach beef program specialist, at doranb@iastate.edu.



Environmentalist, GMO Expert to Keynote Iowa Farm Bureau Meeting
Members of the state's largest grassroots farm organization will gather to celebrate their 2014 accomplishments and seeds of opportunity that exist for Iowa agriculture and its 156,000 members during the 96th annual meeting of the Iowa Farm Bureau Federation (IFBF), Dec. 2 and 3 at the Community Choice Credit Union Convention Center in Des Moines.

To mark the occasion, Governor Terry Branstad has declared Dec. 1-7 as 'Iowa Farm Bureau Week' to honor the many accomplishments and contributions of the 96-year-old grassroots farm organization.

"Our annual meeting theme, 'Seeds of Growth,' highlights the sustainability and growth of Iowa agriculture and celebrates the dedication, accomplishments, and potential of our diverse farm families that help move the state forward," says IFBF President Craig Hill. "Today's responsible farmers are always looking for ways to improve what we grow and how we grow it, while being exemplary caretakers of the land. This year, we're bringing in a high caliber group of experts to share new knowledge, including acclaimed environmentalist Mark Lynas, a former GMO opponent who changed his mind after learning how biotech crops protect the environment and play an instrumental role feeding the world's growing population, to our annual meeting."

In addition to innovative speakers, the 96th IFBF annual meeting will also feature nine different 'hands-on' educational seminars to help Farm Bureau members navigate important issues like conservation and water quality, rural transportation, farm transition planning, health care and new technology including Unmanned Aerial Systems.

Iowa's best and brightest young farmers will also take the stage for the IFBF Young Farmer Discussion Meet Dec. 3, competing for the state title, a John Deere X320 riding lawn mower, and the chance to advance to the national competition during the American Farm Bureau Federation (AFBF) Annual Convention, Jan. 11-14, in San Diego, Calif.

IFBF President and Milo farmer Craig Hill will address members and special guests on Dec. 3 at 8:15 a.m. The organization will celebrate the achievements and contributions dedicated Farm Bureau members have made with a recognition luncheon Dec. 2 at noon and a young farm leaders' achievement luncheon on Dec. 3 at 12:30 p.m.

Farm Bureau's voting delegate sessions will be held on Dec. 2 from 9:30-11:30 a.m. and Dec. 3 from 10:30 a.m. -12:15 p.m.

Grant Golliher, known as the 'Horse Whisperer,' will showcase his remarkable trust-based training techniques on Dec. 2, at 5:15 p.m. in Hy-Vee Hall B. During demonstrations, Golliher quickly develops a relationship with an unbroken horse, and is typically able to ride the horse within the hour. The Dec. 2 events will conclude with a concert, sponsored by Farm Bureau Financial Services and IFBF, featuring country recording artist Jason Brown beginning at 8 p.m.

Gayle Becwar, a comic and musician¸ will close out the 2014 annual meeting on Dec. 3 following the Young Farmers Luncheon.

Members can register for the 2014 IFBF annual meeting at their county Farm Bureau offices. For a complete listing of events and activities, visit www.iowafarmbureau.com. 



Young Farmers and Ranchers Tell EPA to Ditch the Rule

America’s young farmers and ranchers are speaking out on the devastating impact their new businesses will suffer under the EPA and Army Corps of Engineers’ proposed Waters of the U.S. rule, the American Farm Bureau Federation said.

AFBF’s Young Farmers and Ranchers Committee outlined its key concerns regarding the Waters of the U.S. rule in formal comments submitted to the EPA.

“EPA keeps grasping for control over our farms and ranches,” AFBF Young Farmers and Ranchers Committee Chair Jake Carter said. “Young farmers and ranchers are the future of American agriculture, and we take our role of protecting the land seriously. This proposal puts serious roadblocks in our way without any material improvements in water quality.”

Young farmers and ranchers are especially vulnerable to increased costs in farming. Since the already narrow “normal farming and ranching” exemption in the Clean Water Act excludes farms and ranches that started operating after 1977, farmers and ranchers with newer businesses will need permits for basic farming activities, including simply moving dirt.

Under this proposed rule, the only thing that is clear and certain is that it will be more difficult to farm and ranch, or to make any changes on the land – even if those changes would benefit the environment, the AFBF committee said.



NPPC Assistant Director of Science and Technology Named

The National Pork Producers Council has named Dr. Daniel Kovich as assistant director of science and technology, focusing on food and feed safety and animal handling issues. Kovich, who begins his duties Nov. 17, will be located in NPPC’s Washington, D.C., office, reporting to NPPC Chief Veterinarian Dr. Liz Wagstrom.

Kovich comes to NPPC from the Virginia Department of Agriculture and Consumer Services, where he managed state animal welfare and control programs, including animal control officer training and technical support, animal care inspection services, emergency animal sheltering and regulatory enforcement activity. He previously was staff veterinarian for animal health and welfare in the department’s Office of Veterinary Services and served as a foreign animal disease diagnostician.

Prior to working for the state of Virginia, Kovich served in the U.S. Public Health Service – attaining the rank of lieutenant – where he was detailed to the U.S. Department of Agriculture’s Food Safety Inspection Service as a supervisory public health veterinarian. He also worked as a research assistant for the University of Minnesota’s Center for Animal Health and Food Safety and for Iowa State University’s Department of Animal Science.

“Dr. Kovich brings considerable practical experience in and knowledge of animal health and welfare,” said Audrey Adamson, NPPC vice president of domestic policy issues. “I know he’ll be a tremendous asset to our public-policy team because of his work in food safety and animal welfare. On those issues, he adds to the depth NPPC already has with Dr. Wagstrom, our chief veterinarian.”

Kovich received a bachelor’s degree in animal science from Iowa State University and earned a master’s degree in public health and a doctorate in veterinary medicine from the University of Minnesota.

“NPPC is very pleased Dr. Kovich is joining our staff,” said NPPC CEO Neil Dierks. “His background, knowledge and skills make him a valuable resource for U.S. pork producers and the U.S. pork industry.”



Farmers Play Wait-and-See on Fertilizer Plans

Retail fertilizer prices tracked by DTN for the first week of November continue to show very little price movement, which has been a feature of the market for several months now. As harvest wraps up, farmers are moving on to fall field work, including some fertilization, but some are already curbing plans for corn acres.

Five of the eight major fertilizers had lower prices compared to a month earlier. These fertilizers did not move higher with any significance.

DAP, MAP, urea, UAN28 and UAN32 were all just slightly lower in price compared to the previous month. DAP had an average price of $579 per ton, MAP $598/ton, urea $500/ton, UAN28 $324/ton, UAN32 $369/ton.

Three fertilizers were higher in price compared to a month earlier, but again these moves were fairly minor. Potash had an average price of $479/ton, 10-34-0 $559/ton and anhydrous $706/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.54/lb.N, anhydrous $0.43/lb.N, UAN28 $0.58/lb.N and UAN32 $0.58/lb.N.

Two of the eight major fertilizers are now double-digits higher in price compared to November of 2013, all while commodity prices are significantly lower than a year ago. Urea is now up 14% compared to a year earlier followed by DAP 12% more expensive.

In addition, anhydrous and 10-34-0 are both now up 8% while MAP is 6% more expensive and both UAN28 and UAN32 are 1% higher.

Potash remains the only nutrient that is still lower compared to retail prices from a year ago. Potash is 2% less expensive than in November 2013.



EIA: Ethanol Output Steady
The Energy Information Administration expects ethanol production to average 927,000 barrels per day (bpd) this year, according to this month's Short-term Energy Outlook published Wednesday, Nov. 12, unchanged from month prior estimates.

In 2015, the agency expects domestic ethanol production to average 934,000 bpd, slightly higher than October's 933,000 bpd estimate.

Ethanol production in June matched the monthly average production record of 959,000 bpd set in December 2011 and then fell back to an estimated average of 911,000 bpd in October.

EIA said biodiesel production averaged 89,000 bpd in 2013 and is forecast to average 80,000 bpd this year and 84,000 bpd in 2015.



Monsanto Company and Wheat Farmers Reach Settlement Agreement

Monsanto Company has entered into a settlement agreement with soft white wheat farmers in the Pacific Northwest that resolves a number of lawsuits related to the May 2013 discovery of genetically-modified wheat on a farm in Eastern Oregon and subsequent temporary limits on certain exports of soft white wheat. Under the settlement and without any admission of liability, Monsanto has agreed to pay:
-    a total of $250,000 to wheat growers’ associations, including $100,000 to the National Wheat Foundation, and $50,000 each to the Washington Association of Wheat Growers, the Oregon Wheat Growers’ League, and the Idaho Grain Producers’ Association; and
-    $2.125 million into a settlement fund, which will be designated to pay farmers in Washington, Oregon, and Idaho who sold soft white wheat between May 30, 2013 and November 30, 2013.

“Rather than paying the costs of protracted litigation, this agreement puts that money to work in research and development efforts for the wheat industry, while providing a negotiated level of compensation for farmers with documented soft white wheat sales from May 30 to November 30, 2013,” said Kyle McClain, Monsanto chief litigation counsel. “Resolution in this manner is reasonable and in the best interest of all of the parties.”

The claims administrator designated by the parties, Heffler Claims Group, will process the submission of claims by farmers who choose to make claims. Soft white wheat farmers seeking a claim form or more information about the claims process can contact Heffler Claims Group at 855-229-7512 or submit claims through the website www.swwsettlement.com.

In the event that any portion of the settlement fund remains after claims are paid, up to $250,000 of the remainder will be added as donations to the wheat associations listed above. As part of the resolution of these claims, Monsanto will also reimburse plaintiffs’ counsel for a portion of their out-of-pocket costs and fees associated with this litigation.

One of the attorneys for the farmers, James Pizzirusso of Hausfeld LLP in Washington, D.C., noted, “We believe this is a unique and fair mechanism for resolving the claims of soft white wheat farmers.” “We are pleased to end this litigation expeditiously with a reasonable recovery for our clients,” added co-counsel, Kim Stephens of Tousley Brain Stephens PLLC in Seattle, Washington. Co-counsel Erin Green Comite of Scott+Scott, Attorneys at Law, LLP, in Colchester, Connecticut, commented, “The settlement fairly and equitably resolves our clients’ claims and benefits the soft white wheat industry as well.”

The following class action lawsuits will be dismissed, with prejudice, as a result of the settlement agreement:
-    Behrend, Behrend & Knittel Farms, et al. v. Monsanto Company, MDL No. 2473; Case No. 13 md-2473-KHV; D. Kan. No. 13-2545-KHV;
-    Ediger v. Monsanto Company, MDL No. 2473; Case No. 13-md-2473-KHV; D. Kan. No. 13-2562-KHV; and
-    Dreger land Company, Inc., et al. v. Monsanto Company, MDL No. 2473; Case No. 13-md-2473-KHV; D. Kan. No. 13-2554-KHV.

This settlement will not resolve claims that remain pending by wheat growers who grew a type of wheat other than soft white wheat.



U.S. Small Tractor Sales Up Last Month

According to the Association of Equipment Manufacturer's monthly "Flash Report," the sale of all tractors in the U.S. for October, 2014, were up even with last year.  For the month, two-wheel drive smaller tractors (under 40 HP) were up 14% from last year, while 40 & under 100 HP were up 6%. Sales of 2-wheel drive 100+ HP were up 2%, while 4-wheel drive tractors were down 46%.  Combine sales were down 49% for the month.

For the ten months in 2014, a total of 179,923 tractors were sold which compares to 172,865 sold thru October, 2013 representing a 4% increase year to date.  For the ten months, two-wheel drive smaller tractors (under 40 HP) are up 9% over last year, while 40 & under 100 HP are up 7%. Sales of 2-wheel drive 100+ HP are down 11%, while 4-wheel drive tractors are down 20%.  Sales of combines for the first ten months totaled 6,951, a decrease of 21% over the same period in 2013.



Merck Animal Health Launches ‘Creating Connections’ to Improve Cattle Well-Being

Merck Animal Health (known as MSD Animal Health outside the USA and Canada) today announced the launch of Creating Connections, a new program designed to help producers better understand cattle behavior and use that knowledge to employ strategies that can reduce stress, improve reproduction and foster stronger immune responses. Since calmer cattle are easier to examine, diagnose, treat and move, the techniques shared through Creating Connections will help make it easier for producers to improve the health of their herds.

“At Merck Animal Health, we are committed to improving animal well-being and contributing to the ongoing success of our customers,” said Paulo Loureiro, D.V.M, Merck Animal Health. “We are proud to launch Creating Connections, a program that advances the health of cattle and creates value for our customers.”

The program will launch with a series of videos explaining how common cattle behavioral cues can be interpreted to understand their comfort and well-being. The video series will be followed by additional resources, including learning modules and training seminars, in the coming months.

“The behavior of cattle – how they interact with each other and with people – can be shaped by positive interactions with caregivers, and tell us a tremendous amount about how cattle are feeling,” said Tom Noffsinger, D.V.M., a consulting feedyard veterinarian well known for his work on low-stress cattle handling practices. “Creating Connections is a valuable tool to help producers all over the world improve herd health, as well as contribute to a safe environment for cattle and their handlers.”

To learn more about Creating Connections, ask your Merck Animal Health representative or visit www.creatingconnections.info.



A New Option for Control of Respiratory Disease in Beef Cattle

Zoetis announced a new label claim for ADVOCIN® (danofloxacin mesylate) Sterile Injectable Solution for control of bovine respiratory disease (BRD) in high-risk cattle. Previously approved for treatment of BRD, a large multi-site study demonstrated that ADVOCIN was safe and effective for the control of BRD in beef cattle at high risk of developing BRD.

ADVOCIN offers a convenient alternative for veterinarians and producers managing BRD. Producers can now use ADVOCIN for control of BRD in high-risk cattle on arrival or take advantage of the short, four-day withdrawal time for treating respiratory disease late in the feeding period. ADVOCIN delivers what veterinarians expect from a fluoroquinolone and now offers added flexibility to use the product in two ways.

“The new ADVOCIN claim helps provide another way to control BRD with the fast-acting fluoroquinolone power of ADVOCIN,” said Jeffrey Sarchet, DVM, Beef Technical Services, Zoetis. “BRD remains one of the most economically impactful challenges facing the beef industry and is extremely difficult to diagnose. Choosing the right antimicrobials that help control and treat subclinical BRD is critical to cattle health, performance and the bottom line of any operation.”

ADVOCIN is part of the comprehensive and versatile portfolio of leading BRD Management Solutions from Zoetis, which also includes DRAXXIN® (tulathromycin) Injectable Solution and EXCEDE® (ceftiofur crystalline free acid) Sterile Suspension.

“The advantages of a comprehensive BRD management program can make or break an operation,” Dr. Sarchet said. “The new ADVOCIN claim for control adds another tool to help effectively control BRD in beef cattle.”



U.S. Flour Milling Industry Faces Substantial Structural Changes

Several recent mergers in the U.S. flour milling industry and the impact of these mergers on  wheat producers, flour buyers and the milling industry in general  is the focus of a new report from the Rabobank Food & Agribusiness (FAR) Research and Advisory group.
The report, “Ag Focus: U.S. Flour Milling: Grist for the Mills” explores the implications of, and opportunities resulting from, several recent mergers including:
·         ConAgra and Horizon into Ardent Milling
·         Pendleton Flour Mills, Milner Milling and Cereal Food Processors into Grain Craft
·         Nisshin Mills entering the U.S. and purchasing several mills.

“The flour milling and baking industries have weathered changing diets, consolidation and rationalization due to falling demand, all in the past decade,” says report author and Rabobank Food & Agribusiness Research and Advisory (FAR) group Grain and Oilseeds Analyst, Stephen Nicholson. “Growth in flour consumption in the U.S. can best be described as modest, and that trend is not expected to change. That said, we believe there  are still opportunities for the remaining millers and the potential for new investment in the U.S. flour milling industry, now that it is on the M&A radar. ”

In the report, Rabobank projects that production and domestic use will continue to increase at a modest rate, driven primarily by population growth. Since stagnating in the early part of this century, flour use has been slowly increasing.

The report goes on to note that wheat producers will have the same number of mills in which to sell their wheat. New mill owners and entities will be anxious to prove that they can be price-competitive to producers. Flour millers will need to —and have—identify new products (e.g. ancient grain flour, flat breads, etc.), find new customers and learn to focus on their strengths (e.g. geographic, customer service, etc.). The flour milling industry has demonstrated its resilience and, at the same time, attracted the attention of outside investors, showing that there are numerous opportunities remaining in the U.S. flour milling sector.

“This is an unprecedented time in the flour milling industry with huge structural changes. It’s going to be very interesting to see how everyone reacts and finds their market niche, their customer niche, and moves forward as the flour industry continues to change,” says Nicholson.