Wednesday December 10 Ag News

Nebraska Farm Bureau Delegates Outline Positions on Taxes, Beef Checkoff; Elect New Leaders

Nebraska Farm Bureau’s voting delegates reinforced the need for property tax relief, adopting a handful of resolutions targeted to lessening the property tax burden on Nebraska farm and ranch families as part of the organization’s 97th Annual Convention held Dec. 8-9 in Kearney.

“Tax reform and property tax relief is the top priority as we head into the 2015 legislative session and that was reflected in discussions at our Annual Convention,” said Nebraska Farm Bureau President Steve Nelson.

Among the positions adopted by delegates was a resolution to restrict the annual changes in assessed property values and property taxes paid. Such a measure would help slow the dramatic increases in farmers and ranchers property tax bills from year to year. 

Delegates also adopted policy on the national beef checkoff program. Under the current program, beef producers are assessed $1 per head each time a beef animal changes ownership. The dollars collected from beef producers is used for beef promotion, consumer education and beef research. United States Department of Agriculture (USDA) Secretary Tom Vilsack recently introduced a proposal to establish a second beef checkoff program after interested parties at the national level we’re unable to reach agreement on modifications to the checkoff.

“Our delegates are opposed to creating an additional beef checkoff program. They did identify some caveats on how a second program should operate if created. They also communicated their support for increasing the amount of the checkoff assessment up to an additional dollar to help grow the demand for beef,” said Nelson.

Delegates to the convention also adopted policy resolutions opposing any new restrictions on the use of coal in the production of electricity or any reductions in the number of coal-fired plants.

“We support and encourage the development of alternative renewable energies, but we won’t support limiting the use of coal as an energy source until an economically viable alternative for power generation can be found,” said Nelson.

The declining condition of Nebraska’s rural bridges was also a topic for delegates.

“Our delegates are willing to allow counties the ability to implement a local sales tax provided that sales tax is used only for funding county roads and bridges. They also would like to see some state highway budget dollars be given to the counties for bridge repair and maintenance,” said Nelson.

All national policy recommendations adopted at the Nebraska Farm Bureau convention, including the beef checkoff resolutions, must be approved by delegates to the American Farm Bureau Federation annual meeting before they become official policy for the organization.

In addition to taking policy positions, delegates also conducted elections for positions on Nebraska Farm Bureau Federation board of directors.

Delegates re-elected Steve Nelson to the position of president. Nelson was first elected president of the organization in 2011. Nelson and his family grow commercial corn and soybeans and hi-bred seed corn near Axtel.

Dave Nielsen of Lancaster County Farm Bureau was elected to the position of at-large director. Nielsen and his family grow dryland corn, soybeans and hay near Lincoln.

Joni Albrecht of Thurston County Farm Bureau was elected to represent Dist. 3, which includes Antelope, Cedar, Dakota, Dixon, Knox, Madison, Pierce, Thurston, and Wayne counties. Albrecht and her family operate a cow-calf and cattle feeding operation, while also growing corn and soybeans near Thurston.

Bill Baldwin of Scotts Bluff County Farm Bureau was elected to represent Dist. 8, which includes Arthur, Banner, Box Butte, Cheyenne, Dawes, Deuel, Garden, Keith, Morrill, Perkins, Sheridan, and Sioux counties. Baldwin and his family operate a cow-calf operation and grow crops near Mitchell.



Two Nebraska Recipients of USDA Awards for Producers of Advanced Biofuel

Agriculture Secretary Tom Vilsack has announced that USDA is making $5.6 million in grants to 220 producers across the nation to support the production of advanced biofuels.

Ag Processing, Inc. headquartered in Omaha, Nebraska will receive $388,036 in payments for biodiesel production from soybean, canola and waste vegetable oils at their St. Joseph, Missouri, Sargeant Bluffs, Iowa, and Algona, Iowa production facilities.

Cornhusker Energy Lexington, LLC will receive $924 in payments for ethanol production from sorghum at its plant located in Lexington.

"Producing advanced biofuel is a major component of the drive to take control of America's energy future by developing domestic, renewable energy sources," Vilsack said. "These resources represent the Obama Administration's commitment to support an 'all-of-the-above' energy strategy that seeks to build a robust bio-based economy. Investments in biofuels will also help create jobs and further diversify the economy in our rural communities."

The funding for producers announced today is being provided through USDA's Advanced Biofuel Payment Program, which was established in the 2008 Farm Bill. Under this program, payments are made to eligible producers based on the amount of advanced biofuel produced and sold from renewable biomass, other than corn kernel starch. Examples of eligible feedstocks include, but are not limited to: crop residue; animal, food and yard waste; vegetable oil; and animal fat.

Through the Advanced Biofuel Payment Program, USDA supports the research, investment and infrastructure necessary to build a strong biofuel industry that creates jobs and broadens the range of feedstocks used to produce renewable fuel. USDA has made more than $280 million in payments to more than 350 producers (more than 3,100 total payments) in 47 states and territories since the program's inception. These payments have supported the production of more than 5.8 billion gallons of advanced biofuel and the equivalent of more than 58 billion kilowatt hours of electric energy.



RABO AGRIFINANCE OPENS OFFICE IN GRAND ISLAND

Rabo AgriFinance, a provider of capital and financial solutions to U.S. agricultural producers and agri-businesses, announces the opening of its new office in Grand Island, Nebraska. The new office is led by local Grand Island resident, Bruce Eberle, senior relationship manager and team lead.

“Our grand opening was a great opportunity to visit with members of the Grand Island community,” said Shawn Kemp, Rabo AgriFinance regional vice president. “We look forward to Bruce’s leadership building a strong reputation in this new marketplace.”

The Rabo AgriFinance team joined more than 40 community members and business leaders for a ribbon cutting ceremony and open house to celebrate the addition of the office to the Grand Island business community.

“Rabo AgriFinance is pleased to have our new office in Grand Island,” notes Van Dewey, Rabo AgriFinance managing director. “We have a strong track record of partnering with producers across the country and we’ve experienced tremendous growth as a result. Opening this office enhances our agricultural lending services as we work toward becoming the premier ag lender in Nebraska.”

This is the 12th office opened for the company within the Plains Territory serving Nebraska, Kansas, Oklahoma, Texas, New Mexico, Arizona and Colorado.

The new office is located at 2535 N. Carleton Ave., Suite A. Stop by or call 855-731-0241 to visit about how Rabo AgriFinance can address the lending and financial needs of your agricultural business. 

“Farmers, livestock producers and agribusinesses across the U.S. have benefitted from the committed business relationships Rabo AgriFinance provides to our clients,” says Eberle. “Rabo AgriFinance has the stability to grow with our clients, and this region’s strong agricultural sector is a great fit for our services. Opening the Grand Island office confirms our commitment to Nebraska agriculture.”

As a large-capacity lender, Rabo AgriFinance has the ability and expertise to serve substantial operations and diverse credit needs. A global team of analysts provides a competitive edge with proprietary insights into industry trends, and a comprehensive portfolio of services includes the right tools for producers to prepare for and take advantage of market opportunities. Whether it’s financial lending, crop insurance or risk management support, Rabo AgriFinance’s experts help customers achieve their growing ambition for the future. 



Valmont Board Declares Quarterly Dividend

The Board of Directors of Valmont Industries, Inc has declared a quarterly dividend of 37.5 cents per share payable on January 15, 2015 to shareholders of record on December 26, 2014. The dividend indicates an annual rate of $1.50 per share.

Valmont is a global leader, designing and manufacturing highly engineered products that support global infrastructure development and agricultural productivity.

Its products for infrastructure serve highway, transportation, wireless communication, electric transmission, and industrial construction and energy markets. Its mechanized irrigation equipment for large scale agriculture improves farm productivity while conserving fresh water resources. In addition, Valmont provides coatings services that protect against corrosion and improve the service lives of steel and other metal products.



World Ag Supply and Demand Report - Dec 10, 2014
USDA WAOB

COARSE GRAINS: U.S. feed grain supply and use projections for 2014/15 are mostly unchanged as a small increase in projected corn food, seed, and industrial (FSI) use reduces ending stocks slightly. Expected corn use for sweeteners is raised 10 million bushels dropping projected corn ending stocks just below 2.0 billion bushels. Supply and use projections for the other feed grains are unchanged. The projected range for the season-average corn farm price is unchanged at $3.20 to $3.80 per bushel. The sorghum farm price range is raised 5 cents on each end to $3.20 to $3.80 per bushel, equal to corn, as strong demand from China supports sorghum prices.

Global coarse grain supplies for 2014/15 are projected 1.1 million tons higher. Higher corn production for China and EU, higher rye production for Russia, and higher oats production for Canada, more than offset lower expected corn and barley output for Argentina. Upward production revisions largely reflect the latest official government estimates and harvest results.  Corn production for Argentina is lowered 1.0 million tons reflecting lower expected plantings,but the reduction in area is partly offset by higher expected yields with abundant early season soil moisture in key growing areas.

Global coarse grain consumption for 2014/15 is raised 2.5 million tons mostly on higher expected barley and mixed grain feeding for EU and higher sorghum feeding for China. Corn feeding is also raised for EU driving the increase in projected foreign corn consumption. EU livestock and poultry feeders are expected to shift rations toward coarse grains as abundant supplies and stronger wheat exports make coarse grain feeding more competitive.

Global coarse grain trade for 2014/15 is mostly unchanged. China corn imports are lowered,but China sorghum imports are raised. Mostly offsetting the increase for China sorghum is areduction for Japan sorghum imports. Barley imports are raised for Saudi Arabia. Barley exports are lowered for Argentina, but partly offset by an increase for EU. World corn exports are lowered slightly with a reduction for Argentina only partly offset by an increase for Vietnam.

Global ending stocks are projected 0.7 million tons higher mostly reflecting the larger China corn crop. Small reductions in U.S. and EU corn stocks partly offset the increase for China.

OILSEEDS: Total U.S. oilseed production for 2014/15 is projected at 117.0 million tons, down slightly due to a small reduction in cottonseed. Soybean exports are increased 40 million bushels to 1,760 million reflecting the record export pace in recent weeks and prospects for additional sales and shipments ahead of the South American harvest. With crush unchanged, soybean ending stocks for 2014/15 are projected at 410 million bushels, down 40 million from last month but still the highest since 2006/07.

The U.S. season-average soybean price range for 2014/15 is projected at $9.00 to $11.00 per bushel, unchanged from last month. The soybean meal price is projected at $340 to $380 per short ton, up 10 dollars on both ends of the range. The soybean oil price range is projected at 32 to 36 cents per pound, down 2 cents on both ends reflecting lower-than-expected early season vegetable oil prices and lower petroleum prices.Global oilseed production for 2014/15 is projected at a record 530.7 million tons, up 1.8 million tons from last month. Foreign oilseed production accounts for most of the change on increases for soybeans, rapeseed, and sunflower seed.

Global soybean production is projected at a record 312.8 million tons with gains this month for Canada, Ukraine, and Paraguay. Global rapeseed production is projected at a record 71.9 million tons, up 1.2 million mainly on increased production for Canada, which is estimated at 15.6 million tons based on the latest survey results from Statistics Canada. Other changes include increased sunflowerseed production for EU and reduced peanut production for Argentina. Palm oil production is reduced for Indonesia for both 2013/14 and 2014/15 on revised yields.

Global oilseed trade for 2014/15 is projected at 135.3 million tons, up 0.8 million from last month. Soybean exports account for most of the change with higher projections for the United States, Paraguay, Ukraine, and Canada only partly offset by reductions for Argentina and Brazil. Global oilseed ending stocks are projected at 104.1 million tons, up 1.1 million from last month and 23.5 million above year-earlier levels. Increased rapeseed stocks in Canada and higher soybean stocks in Brazil and Argentina are only partly offset with lower soybean stocks in the United States.

WHEAT: Projected U.S. wheat supplies for 2014/15 are raised 10 million bushels this month with higher projected imports. Increased production and higher imports from Canada are expected to add to U.S. wheat supplies. The entire import increase is for Durum. Domestic use projections and wheat exports are unchanged.  However, a 15-million-bushel reduction for Hard Red Winter exports is offset by 5-million-bushel increases for Hard Red Spring, White, and Durum. Ending stocks for all wheat are projected 10 million bushels higher with the supply increase. The projected season-average farm price range is raised 10 cents per bushel at the midpoint to $5.80 to $6.20 per bushel on prices reported to date and recently higher cash and futures prices.

Global wheat supplies for 2014/15 are raised 1.9 million tons with increased production offsetting lower beginning stocks. World wheat production remains record high and is raised 2.3 million tons led by a 1.8-million-ton increase for Canada. Kazakhstan is raised 0.5 million tons. Both production increases are from updated government statistics. Partly offsetting is a 0.4-million-ton reduction for global beginning stocks with Indonesia consumption raised for 2012/13 and 2013/14.

Global wheat trade for 2014/15 is raised with exports up 3.1 million tons on larger supplies and stronger demand in several importing countries. Exports are raised 1.0 million tons for EU, and 0.5 million tons each for Canada, Iran, and Kazakhstan. The EU increase stems from competitive prices and a fast sales pace to date. The Canada and Kazakhstan increases reflect larger crops. Iran exports are raised on larger flour exports to nearby countries. Russia exports are lowered 0.5 million tons on increased competition, particularly from EU. Iran imports are raised 1.0 million tons on a fast pace of shipments from EU. Egypt imports are raised 0.5 million tons on increasing purchases from the private sector. Smaller increases are made for Bangladesh, Jordan, Colombia, Ethiopia, and Uzbekistan.

Global wheat consumption for 2014/15 is down slightly. The biggest change is a 1.5-million ton decrease in EU wheat feeding on larger coarse grain supplies and higher wheat exports.  Canada wheat feeding is raised 0.5 million tons on the larger crop. Global ending stocks are projected 2.0 million tons higher mostly on increases for Canada, EU, and Russia.

LIVESTOCK, POULTRY, AND DAIRY:
The forecast for total meat production in 2014 is lowered from last month, as lower beef production in the fourth quarter more than offsets increased pork production. Beef production is reduced as slaughter is expected lower. However, carcass weights remain heavy which partly offsets the decline. Hog slaughter for the fourth quarter is increased from last month as slaughter to date has been strong. A small revision is made to third-quarter broiler slaughter but the forecasts for fourth quarter broiler and turkey production are unchanged. For 2015, total meat production is slightly higher on small increase in beef production; other production forecasts are unchanged. USDA will release its

Quarterly Hogs and Pigs report on December 23, providing an indication of producers’ sow farrowing intentions into 2015.The forecast for 2014 beef imports is raised on the pace of imports to date, but the export forecast is unchanged from last month. No change is made to 2015 forecasts. Pork imports are raised for 2014 and exports are reduced as relatively high prices are expected to encourage imports and limit sales opportunities. For 2015, the import forecast is raised but exports are unchanged. No change is made to the broiler or turkey export forecasts.  The cattle price forecasts for 2014 and 2015 are raised from last month on continued demand strength and tight supplies of fed cattle. The hog price forecast for 2014 is lowered on current prices, but the 2015 price is unchanged. The broiler and turkey price forecasts for 2014 are raised. The turkey price forecast is increased for 2015 but broilers are unchanged. The egg price forecasts for 2014 and 2015 are raised on expectations of strong demand through theend of 2014 and into early 2015.  The milk production forecast for 2014 is unchanged from last month, but is lowered for 2015 as growth in milk per cow is expected to be more moderate. Fat basis imports are reduced for 2014 as milkfat imports have been lower than expected. Export forecasts on a skim-solids basis are raised for 2014 on stronger whey product sales to date. Fat and skim-solids basis trade forecasts for 2015 are unchanged.

The butter price is raised for 2014, reflecting current price movements, but the price forecast for 2015 is unchanged at the midpoint of the range.  Cheese and nonfat dry milk (NDM) prices are reduced for both 2014 and 2015 as supplies are expected to remain large. Whey prices are unchanged from last month. Class III prices for 2014 and 2015 are lowered on weaker cheese prices. The Class IV price is unchanged for 2014 as a higher butter price is offset by a lower NDM price. For 2015 a lower NDM price results in a reduced Class IV price forecast.  The all milk price is lowered to $24.05 to $24.15 per cwt for 2014 and $18.45 to $19.25 per cwt for 2015.



K.S. - N.E. A-G's challenge EPA ethanol emissions model

Kansas Attorney General Derek Schmidt has asked a federal appeals court to block new Environmental Protection Agency (EPA) regulations that discourage the use of ethanol by requiring states to adopt conclusions about ethanol emissions not backed by scientific facts.

 The lawsuit, filed in the D.C. Circuit Court of Appeals, asks the court to reject new EPA regulations that will require states to immediately begin using the MOVES2014 model in their State Implementation Plans (SIPs) for controlling pollutants governed by national air quality standards. By implementing the MOVES2014 model without the opportunity for review and comment by the states and affected parties, the EPA forces states to measure emissions from ethanol-blended fuels in a way that incorrectly predicts higher levels of pollution.

 The MOVES2014 model is based on an EPA-commissioned fuel study that purports to analyze the emissions effects of different fuel parameters, including ethanol content, while artificially and unnecessarily holding other fuel parameters constant. This so-called “match-blending” methodology unfairly targets ethanol and assigns disproportionate negative emissions effects. The dictated use of this model effectively blocks states from encouraging the use of ethanol as part of their clean air plans.

 “Ethanol production is an important industry for Kansas and grain agriculture specifically,” Schmidt said.  “EPA’s requirement that states use this faulty model was unlawfully adopted without notice and opportunity for comment. This is an example of the EPA imposing its will on the states rather than working cooperatively toward the shared goal of cleaner air. We are asking that this model be rejected and replaced with a model that more accurately reflects the true emission effects of ethanol.”

 The case is State of Kansas, et al. v. U.S. Environmental Protection Agency, et al., in the U.S. Court of Appeals for the D.C. Circuit. Nebraska Attorney General Jon Bruning, the Energy Future Coalition, and the Urban Air Initiative, Inc. joined Schmidt in filing the case.



Epidemiologist Models Impact of Regional FMD Disease Outbreak

A research project in the Kansas State University College of Veterinary Medicine presents the largest model to date for evaluating the impact and control of a potential outbreak of foot-and-mouth disease in livestock.

Mike Sanderson, professor of epidemiology in the college's diagnostic medicine and pathobiology department, and Sara McReynolds, a former graduate student of Sanderson's, published the results of their research in the December issue of the journal Preventive Veterinary Medicine.

The researchers developed simulation models to assess the impact of livestock herd types and vaccination on foot-and-mouth disease outbreaks using the North American Animal Disease Spread Model. In this study, potential foot-and-mouth disease virus outbreaks in the central region of the U.S. were simulated to compare different vaccination strategies to a depopulation-only scenario. Their work received funding from the U.S. Department of Homeland Security's Foreign Animal Disease Zoonotic Center, which is now the Institute for Infectious Animal Diseases; the Kansas Department of Agriculture; and the U.S. Department of Agriculture through Iowa State University.

Based on data from the U.S. Department of Agriculture National Agricultural Statistics Service, a simulated population of 151,620 livestock operations characterized by latitude and longitude, production type and herd size was generated. Data for the study was generated by surveying livestock producers in Kansas and Colorado in order to determine the rate of contact between herd populations.

"The results of this study will provide information about the impacts of disease-control protocols, which may be useful in choosing the optimal control methods to be used by the livestock industry and animal health professionals to meet the goal of rapid effective control and eradication," Sanderson said. "The challenge behind this project is that you don't want to destroy the livestock industry in the process of trying to destroy the virus. You have to control the virus in a way that allows the industry to survive as effectively as possible."

Sanderson said the modeling study will support a subsequent project.

"We have more work underway in what is called a 'Secure Beef Supply Plan,' which is a project in collaboration with Iowa State University," Sanderson said. "Our modeling work also is being used here at K-State for an economic model developed by Ted Schroeder, a university distinguished professor of livestock marketing in the agricultural economics department."

McReynolds graduated from Kansas State University with a Doctor of Veterinary Medicine and Master of Public Health in 2008 and a doctorate in pathobiology in 2013. She is currently the assistant state veterinarian in North Dakota.

"Our results only give an indication of what could happen in the livestock industry when following specific control protocols," McReynolds said. "Livestock movement control and good biosecurity to limit disease transmission between farms will be very important. More research would be needed to better understand the optimal response to a foot-and-mouth disease outbreak in the central U.S as well as in livestock operations in other parts of the country."



Brazil Raises 2014-15 Soy Estimate

Brazil raised its official estimate for soy production in the 2014-15 season, helped by expected good weather and an increase in the area planted with the crop.

The country's farmers will produce 95.8 million metric tons of soy in the season, crop agency Conab said Wednesday, compared with the agency's November forecast for a range from 89.3 million tons to 91.7 million tons.

The newest forecast would mean an increase of 11.2% from the 86.1 million tons grown in the 2013-14 season, with a rise of 4.9% in the area planted with the crop.

Brazil is the world's second-biggest producer and exporter of soy. The country's farmers have invested heavily in recent years in mechanization and improved use of fertilizers and pesticides to boost their productivity, while expanding the area planted with the crop as well.

Conab forecast total corn production of 78.7 million metric tons for the 2014-15 season, which would be a decline of 1.5% from the 79.9 million tons grown last year but is near the top of the 77.3 million ton to 78.9 million ton forecast from November. The area planted with the crop is forecast to fall 2.8% from the 2013-14 season, Conab said.



Ethanol Production Hits Record High

The Energy Information Administration reported on Wednesday, Dec. 10, that ethanol inventories in the United States increased last week as domestic production soared to a record high while demand eased to a nine-month low.

Total ethanol stocks increased nearly 500,000 barrels (bbl) to 17.8 million bbl during the week-ended Dec. 5, and are 2.3 million bbl, or 14.9%, above the level seen a year earlier.

Plant production jumped 26,000 bpd, or 2.7%, last week to 988,000 bpd, the highest since EIA started keeping records in the summer of 2010, while up 4.7% year-over-year. Four-week average output was up 5.7% at 975,000 bpd.

Blender inputs, a proxy for ethanol demand, fell 20,000 bbl or 2.3% to 836,000 bpd, the lowest since the week-ended Feb. 21, although up 12,000 bbl, or 1.4%, on a year-over-year basis. During the four weeks ended Dec. 5, blender inputs of ethanol averaged 856,000 bpd, up 2.1% from the comparable year-ago period.



Fertilizer Prices Remain Stable

Average retail fertilizer prices continued on their fairly balanced recent path during the first week of December, according to data tracked by DTN.

Five of the eight major fertilizers had slightly lower prices compared to a month earlier, while the remaining three were up just slightly. No fertilizer price moved a significant amount.

DAP, MAP, urea, UAN28 and UAN32 were all just slightly lower in price compared to the previous month. DAP had an average price of $573/ton, MAP $592/ton, urea $485/ton, UAN28 $323/ton and UAN32 $368/ton.

Potash, 10-34-0, and anhydrous were higher in price compared to a month earlier, but again these moves were fairly small. Potash had an average price of $481/ton, 10-34-0 $568/ton and anhydrous $714/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.53/lb.N, anhydrous $0.44/lb.N, UAN28 $0.58/lb.N and UAN32 $0.57/lb.N.

Half of the eight major fertilizers are now double-digits higher in price compared to December 2014, all while commodity prices are significantly lower from a year ago. DAP and anhydrous are both 11% higher while urea and 10-34-0 are now 10% more expensive compared to year earlier.

In addition, MAP is 7% more expensive, and both UAN28 and UAN32 are 2% higher from last year.

Potash remains the only nutrient which is still lower compared to retail prices from a year ago. Potash is 1% less expensive from a year previous.



NFU Strongly Objects to Anti-Family Farmer Provisions Snuck Into Appropriations Bill

National Farmers Union (NFU) President Roger Johnson and United States Cattlemen’s Association (USCA) President Danni Beer today sent a letter to the House and Senate leaders strongly objecting to three anti-family farmer and rancher provisions slipped into the 2015 Appropriations Act in the dark of the night, without a single congressional hearing or an ounce of public discussion.

“NFU and USCA are very concerned that the report language included on Country-of-Origin Labeling (COOL) could be used as an opportunity to stop the appeals process at the World Trade Organization or re-open the legislation that mandated COOL, both of which are unacceptable,” notes the letter. “Congress should not intervene in the WTO process.”

Formally known as Consolidated and Further Continuing Appropriations Act, 2015, the bills are being considered before both the House and the Senate this week. The joint letter points out that also hid inside the Act is a provision that orders the Secretary of Agriculture to refrain from implementing a reformed beef checkoff program, with the irony that the closing period on public comments for the beef checkoff is today.

“National Cattlemen’s Beef Association (NCBA) is so fearful of losing its $40 million-plus revenue stream through the beef checkoff that it has lobbied for this language to be included in the report rather than allowing producers the ability to have their comments recognized and addressed through the commenting process. NCBA has lobbied Congress on a mandatory producer checkoff program that they control,” notes the letter.

Also contained in the proposed Act is a legislative provision that prohibits the United States Department of Agriculture (USDA) Grain Inspection, Packers and Stockyard Administration (GIPSA) from implementing regulations on the livestock and poultry industry that would address an array of fraudulent, deceptive, anti-competitive and retaliatory practices. 

The letter points out that gutting the GIPSA law “would deny farmers protection from retaliation when they use their first amendment rights to speak with congressional representatives, deny them the right to a jury trial, and deny them the right to request information on how their pay is calculated. This provision is unconscionable.  Its inclusion in a funding bill is unacceptable to NFU’s and USCA’s members.”

“We strongly object to the use of the appropriations process as a mechanism to limit the secretary’s authority to uphold the COOL law, to respond to the dire need for reform of the beef checkoff, and to address anti-competitive market concerns.” 



NCGA Applauds House Subcommittee for Advancing Transparent, Science-Based Food Labeling Discussion

The National Corn Growers Association applauded the House Energy and Commerce Subcommittee on Health for holding a hearing today regarding the U.S. Food and Drug Administration's role in regulating GMOs and the Safe and Accurate Food Labeling Act. The hearing serves to advance an ongoing open, transparent conversation about the importance of this technology both to farmers and consumers. Furthermore, it highlighted that a science-based federal solution to the labeling debate is necessary to provide all parties with the certainty that they need.

"With activist and special interest groups continually attempting to impose state-level measures that would lead to further confusion and increase grocery bills for American consumers, this hearing is an important step toward a real solution," said NCGA Trade Policy and Biotechnology Chair John Linder, a farmer from Ohio. "Food labeling decisions should be left to scientific experts and not dictate by agenda-driven activists. We hope that this public discussion helps bring clarity, and we look forward to working with lawmakers in the new Congress to advance this important piece of legislation."

The Safe and Accurate Food Labeling Act, authored by Representatives Mike Pompeo (R-Kan.) and G.K. Butterfield (D-N.C.), would eliminate consumer confusion created by a state-by-state patchwork of labeling laws, advance food safety, inform consumers and provide consistency in labeling. The legislation reaffirms the FDA as America's preeminent authority on food safety and labeling requirements, requires the FDA to approve all new GMO ingredients before they are brought to market and establishes federal standards for companies that wish to voluntarily label their products for the absence or presence of GMO food ingredients.

NCGA, as a member of the Coalition for Safe Affordable Food, works to advance clear, science-based food labeling. Following costly mandatory-labeling ballot initiatives that were recently voted down in Oregon, Colorado and Washington State, CFSAF believes now is the time for Congress to adopt a national, consistent, labeling standard that protects consumers, famers and food manufacturers.

"Today's hearing makes clear that Congress is taking this issue very seriously," said CFSAF Spokeswoman Claire Parker.  "Representatives Pompeo and Butterfield are to be commended for advancing a bipartisan solution that will ensure consumers' grocery prices are not subject to the whims of activists traveling from state to state. Consumers deserve consistent, clear labeling guidelines no matter where they are in the United States-not misinformation, loopholes and inconsistencies."

Studies have shown that mandated GMO labeling would increase grocery prices for consumers by hundreds of dollars per year as food companies construct multiple supply streams, design new labels, acquire additional warehouse space and create new transportation routes.  A recent study by Cornell University found that GMO labeling would increase grocery costs for an average family by $500 per year.  Consumers would be forced to bear these increased costs despite the fact that more than 1,000 peer reviewed studies and the world's most respected health and safety authorities - including the American Medical Association, the World Health Organization and the U.S. Food and Drug Administration - have determined that GM food ingredients are safe.

The Coalition for Safe Affordable Food is a broad-based coalition representing the entire American agriculture food chain.  The Coalition is committed to increasing understanding about the science and safety of GM technology and to advocating for a federal labeling solution.  For more information about the Coalition for Safe Affordable Food standard, visit www.cfsaf.org.



ACE statement on RFS hearing

Brian Jennings, Executive Vice President for the American Coalition for Ethanol (ACE), today issued the following statement as Janet McCabe, Acting Assistant Administrator for Air and Radiation with the U.S. Environmental Protection Agency (EPA), testified at a hearing entitled “Examining EPA’s Management of the Renewable Fuel Standard (RFS)” before the Energy Policy Subcommittee of the House Committee on Oversight and Government Reform.

“While it’s important for EPA to put the annual RFS rulemaking process back on schedule, it’s much more important for the Agency to get the RFS right.   EPA was right to reconsider their original proposal to limit the 2014 RFS to the amount of ethanol that oil companies were willing to blend with their gasoline, because that plan would have violated the Clean Air Act and congressional intent.   We look forward to working with EPA to ensure they use their authority to hold oil companies legally responsible for making cleaner and less expensive renewable fuel choices, such as E15 and E85, available to consumers as they issue the final 2014 rule, and RFS proposals for 2015 and 2016.”



BP to Close U.S. Cellulosic Ethanol Operations

BP Plc plans to close down its U.S. cellulosic operation by the end of next year's first quarter. Bloomberg Business Week reports that the business was part of an effort to find ways to produce ethanol from sources such as switchgrass, wood chips and agricultural waste as an alternative to biofuels from food crops. BP Biofuels North America paid $98.3 million in 2010 for Verenium Corp.'s cellulosic biofuels business. The purchase included facilities in Jennings, Louisiana and San Diego.

Cellulosic biofuel is a liquid fuel made by extracting sugars out of grass. At the time of the purchase from Verenium, BP executives said they intended to be a leader in the industry in the U.S.

BP is exploring options to sell the demonstration plant in Jennings, a technology center in San Diego, the Highlands feedstock farm in Florida and some activities in Brazil, Houston or London, spokesman Brett Clanton, said in an e-mail.

BP will stop working on developing ligno-cellulosic ethanol technology and related activities, Clanton said, adding that the decision doesn't affect BP's Vivergo bioethanol joint venture in the U.K. or the Butamax Advanced Biofuels LLC and Kingston Research Ltd. bio-butanol joint ventures.

The focus on BP's biofuels investment will now be on building the profitability and scale of its sugarcane biofuels business in Brazil, Clanton said.



AGCO Certified Pre-Owned program offered to North American dealers in 2015

AGCO Corporation (NYSE:AGCO), the first manufacturer to stand behind equipment with a Certified Pre-Owned (CPO) program, is expanding the offering for more comprehensive coverage throughout North America. After piloting the CPO program with 16 dealers for more than a year, the company will unveil the full program in early 2015.

The CPO program aims to enhance quality and decrease risk by certifying used equipment for farmers in North America. To qualify, equipment must be thoroughly inspected and reconditioned at more than 100 points.

"Farmers are savvy businesspeople, and particularly in a down market, they are squeezed to maximize their net profit," said Eric Lescourret, AGCO director of Commercial Strategic Initiatives. "Key areas of focus for farmers are capital expense and the purchase or lease of more fuel-efficient and productive equipment. AGCO was the first agriculture equipment manufacturer to stand behind equipment with a certified pre-owned program, beginning with pilot dealers, starting in 2013."

Throughout 2014, the company gained efficiencies and made improvements to the program to ensure maximum quality for the full rollout to its dealer network. The learnings and improvements from the pilot program have convinced AGCO that the program will provide farmers with maximum peace of mind and the best value in the market for their used-equipment purchases. All certified equipment also includes a first-class extended-service package. This means any piece of CPO equipment purchased will come with at least one year of comprehensive extended-service coverage, helping customers avoid costly repairs. AGCO stands behind the coverage because of the thorough inspection each piece of equipment must undergo. Tractors and windrowers are each inspected at over 100 points, large square balers are inspected at over 160 points and combines are inspected at over 200 points. Once inspected, each piece of equipment is reconditioned by certified technicians.

AGCO equipment available in the pilot program includes models from each of the following brands:
-    Challenger®, Massey Ferguson® and Fendt® HHP tractors
-    Challenger, Massey Ferguson and Gleaner® combines
-    Massey Ferguson and Challenger self-propelled windrowers
-    Hesston® by Massey Ferguson and Challenger large square balers
-    RoGator® sprayers

As part of the rollout, farmers will be able to access CPO inventory across North America through dealers as well as on AGCOcorp.com, MasseyFerguson.us and Challenger-Ag.us.



 Seed Industry to Launch 2015 Consumer Education Effort

The American Seed Trade Association (ASTA) today unveiled results of research commissioned by the seed industry revealing that consumers underappreciate the role of seed and seed improvement in our lives, until they are presented with specific examples of the environmental, economic and health benefits of seed.  ASTA briefed members of the media during its CSS 2014 & Seed Expo in Chicago, the largest seed industry conference in the country, attracting professionals from more than 150 companies and more than 20 countries.

ASTA surveyed more than 600 moms, millennials and "food-focused" people – three consumer segments who are recognized for driving conversation around food issues and who have significant purchasing power – to measure consumer awareness regarding the role seed innovation plays in improving quality of life.

"The agricultural industry recognizes the significance of seed innovations and that many of the things that improve our quality of life can be traced back to a seed," said ASTA President and CEO Andy LaVigne.  "But, when we reach beyond the industry, we realize we have work to do in educating people about the value of seed and seed improvement."

According to LaVigne, research results revealed that the work of the seed industry is generally undervalued among educated consumers.  Yet three in four educated consumers believe that the role of technology in agriculture is important.

However, LaVigne shared that when the same groups were provided additional information regarding the specific benefits of seed improvement, they began to show appreciation and a greater understanding of the impact of seed innovation.  Specifically, survey respondents were provided examples of seed improvements in areas of food, feed, fuel and fiber.  Total positive impressions among millennials increased by 18%, total positive impressions among moms increased by 13% and total positive impressions among foodies increased by 16%.
When people understand the specific benefits of seed improvement, they begin to show more appreciation.

"These results are extremely encouraging," said LaVigne.  "As one of the oldest trade associations in the country, ASTA is uniquely positioned to help educate consumers about seed improvements that are providing solutions for the increasing demands of a growing world. It also gives our organization an opportunity to focus on 'why' we do what we do."  ASTA also provided topline results highlighting seed improvements and associated benefits that had the most resonance across the three consumer groups.

Seed improvement enhances quality of life
    Seed improvements allow farmers to produce more food from the same land.  (76% of overall consumers viewed positively.)
    Seed improvements result in foods that are healthier and provide better nutrition.  (70% of overall consumers viewed positively.)
    Seed improvements allow family farmers to sustain their way of life for generations to come. (69% of overall consumers viewed positively.)

"To support the good work of our member companies, we are launching a three-year communications effort to reach consumers about the importance of seed improvement," said John Schoenecker, ASTA Board Chair.  "Our hope is to increase awareness among consumers about the diversity of the seed industry, the value of crops and food produced from improved seed and the impact it has on their daily lives now and into the future."



BASF helps fight hunger with $75,000 donation to Feeding America

BASF is donating $75,000 to Feeding America, the nation’s largest hunger-relief organization, to help feed struggling families and individuals throughout the U.S.

“Hunger is a very real problem for tens of millions of people in America, including low-income families and seniors,” said Scott Kay, Vice President, U.S. Crop Protection for BASF. “Through our contribution to Feeding America, we can help provide healthy fruits and vegetables to people and communities who may not have regular access to them. In many ways, this partnership is an extension of the work we do every day with growers to help them feed our hungry world population.”

The donation will support Feeding America’s National Produce Program, an initiative that helps with planning, transportation and logistics to ensure fresh produce deliveries to the 200 member food banks around the country.

The commitment from BASF will help Feeding America provide 675,000 pounds of produce to families and individuals in need. The donation includes $5,000 in contributions from BASF grower customers who chose to be part of this donation.

“BASF was a natural fit to partner with Feeding America as we continue to focus on providing more nutritious fruits and vegetables for the clients we serve,” said Nancy Curby, vice president of corporate partnerships for Feeding America. “Their support will help extend the reach of our National Produce Program and help more Americans in need.” 



Global Ag Biotechnology to Reach $46.8 Billion in 2019

BCC Research reveals in its new report, Agricultural Biotechnology: Emerging Technologies and Global Markets, the global market for agricultural biotechnology is expected to grow to $46.8 billion by 2019, with a five-year compound annual growth rate (CAGR) of 11%. The biotechnology tools category, the fastest growing segment of the market, is moving at phenomenal 49.9% CAGR.

Rapid changes in highly technical fields such as DNA sequencing, genome editing, and synthetic biology are driving new products and applications in agriculture. Indeed, increasing demand for seeds that can produce higher crop yields and resistance to plant stresses and threats, ongoing innovations in enabling biotechnologies, and a growing demand for environmentally-friendly crop protection products will drive significant growth in this market, which is segmented into biotechnology tools, genomic-enabled products, and biologicals, for the foreseeable future.

Genomic-enabled products, the largest segment of the overall market, include transgenic seeds and synthetic biology-enabled products, which use plant feedstocks. This segment is expected to reach $38.6 billion in 2019 to register a CAGR of 10%.

However, the biotechnology tools category, including DNA sequencing, biochips, RNA interference, synthetic biology, and genome editing tools comprise a small but high-growth segment of the market. These tools enable the development of better plant breeding programs, as well as novel plant traits, thus enhancing downstream agricultural markets. This segment, which was valued at just $136.8 million in 2013, is expected to jump to nearly $1.3 billion by 2019.

Meanwhile, the biologicals segment, which includes biopesticides and biostimulants, is expected to reach $7 billion by 2019 and register a healthy 13.7% CAGR.

North America and South America are the leading geographic markets for agricultural biotechnology products. South America and Asia are forecast to have high growth rates in their markets due to favorable regulatory climates as well as new transgenic crops. The market for biologicals in Europe will help to drive growth in that geography.

"Several of the key market segments, including transgenic seeds and biopesticides, are characterized by a consolidated industry structure consisting of six large agricultural companies," said BCC Research biotechnology analyst John Bergin. The agricultural biotechnology tools industry, by contrast, is much more fragmented. The large agricultural companies maintain active alliances with the biotechnology companies, allowing them to participate in the upside of new genomics technologies that will enhance their breeding and seed development programs.

Agricultural Biotechnology: Emerging Technologies and Global Markets provides an overview of the global market for agricultural biotechnology. It includes analyses of global market trends, with data from 2013, estimates for 2014, and projections of CAGRs through 2019.