Tuesday January 13 Ag News

New Officers Elected for Nebraska Beef Council

New officers for the Nebraska Beef Council were elected January 12, 2015 at the Nebraska Beef Council office in Kearney, NE.

Election results are as follows:
William “Buck” Wehrbein, a feedlot operator from Waterloo, NE, was elected as chairman. Wehrbein represents producers in District 7 including Platte, Colfax, Dodge, Washington, Nance, Merrick, Polk, Butler, Saunders, Douglas, Hamilton, York, Sarpy and Cass counties.

Dawn Caldwell, a cow-calf producer from Edgar, NE, was elected as vice-chair. Caldwell represents producers in District 8 including Seward, Lancaster, Otoe, Adams, Clay, Fillmore, Saline, Gage, Johnson, Nemaha, Webster, Nuckolls, Thayer, Jefferson, Pawnee, and Richardson counties.

Anne Burkholder, a feedlot operator from Cozad, NE, was elected as treasurer. Burkholder represents producers in District 9 including Dawson, Frontier, Gosper, Phelps, Kearney, Red Willow, Furnas, Harlan and Franklin counties.

Patrick Knobbe, a feedlot operator from West Point, NE, was elected as secretary. Knobbe represents producers in District 3 including Cedar, Dixon, Dakota, Pierce, Wayne, Thruston, Madison, Stanton, Cuming and Burt counties.



Farm Bill Education Meeting in Fremont, Tuesday Jan. 27th from 5:30 – 7:00 pm

Nebraska Extension and the Farm Service Agency (FSA) are teaming up to provide another educational meetings about the 2014 Farm Bill.   The local meeting is set for Tuesday, January 27, and will be held at the Dodge County Extension Office in Fremont from 5:30 to 7:00 pm.

All farm operators and land owners are invited to attend.     FSA will inform participants about the sign-up process for the Farm Bill including the documentation needed and the deadlines for sign-up.   FSA will provide information about the decisions that will need to be made for base acre reallocation, yield updates, and for the Agricultural Risk Coverage (ARC) vs. Price Loss Coverage (PLC) program selection.  

It should be helpful to attend one of the meetings to get insight on the options everyone has with the 2014 Farm Bill.   Farm Operators and land owners will have three main steps to signing up.   One is to review their current base acre allocations which is occurring at this time.   Secondly, a decision about re-allocation of base acres will need to be made.   Finally, the program selection will involve the ARC or PLC program.   ARC is the revenue safety net program similar to the recent ACRE program and PLC is the price safety net program.   With ARC, the options will be an Individual ARC coverage vs. a County ARC coverage.   With PLC, the available Supplemental Coverage Option (SCO) will be discussed. Decisions made for this Farm Bill sometime in 2015 will be final for the duration of the Bill.

For more information or assistance contact your local FSA (721-8455) or Nebraska Extension County Office (727-2775).   For more information about the 2014 Farm Bill, go to www.farmbill.unl.edu or www.fsa.usda.gov/farmbill.



Selection of Dr. Hank Bounds as University of Nebraska President
Steve Nelson, NeFBF President

“On behalf of the members of the Nebraska Farm Bureau Federation, we are pleased with the selection of Dr. Hank Bounds as the next President of the University of Nebraska by the NU Board of Regents.”

“From an agricultural perspective, it’s important the President fully understand and have the ability to carry out the mission of the land grant university. Dr. Bounds’ extensive experience in leading a University in Mississippi and his understanding of the importance of agriculture in that role makes him an excellent selection.”

“Having had the opportunity to serve as a member of the University of Nebraska Presidential Screening and Selection Committee, I was fortunate to have had the opportunity to interact with Dr. Bounds and it is clear from that interaction, he understands the vital role the University can play to support and enhance its partnership with agriculture through teaching, research and extension. Furthermore he possesses the personal skills that will relate well to leadership across campuses, to elected officials, faculty and the citizens of Nebraska.”

“We welcome Dr. Bounds and look forward to working with him in advancing the mission of the University of Nebraska.”



Renowned Agriculture Ethicist to discuss Farm and Food Issues

A nationally renowned agriculture ethicist and philosopher will speak about farm and ranch issues at an event on February 5th in Omaha sponsored by the Center for Rural Affairs and Humanities Nebraska.

Dr. Paul B. Thompson will provide a 45 minute presentation laying out the various consumer-farmer-industry interests in agriculture while illustrating how these interests create dilemmas for farmers and ranchers. Following the presentation will be a panel discussion featuring area farmers and questions from the audience. Thompson will speak at 3:00 p.m. at the Weitz Community Engagement Center, 6401 Dodge St. in Omaha.

“Our history and culture are inextricably linked to agriculture. Promoting thoughtful discourse about current ethical issues within our agricultural community will help to ensure future opportunities for agriculture in the state for family farms and rural communities,” says event organizer, Adele Phillips with the Center for Rural Affairs. “And Paul Thompson, together with a great moderator and panel of farmers, promises to make for a lively and interesting evening.”

According to Phillips, farmers and ranchers make tough decisions every day in their farming and ranching practice. Ever-changing public policies combined with calls for increased consideration of environmental concerns, climate impacts and animal welfare have pressured farmers, ranchers, and the organizations that represent them to take a variety of stances on how farmers and ranchers operate. At the Center for Rural Affairs, we frequently ask if farmers’ and ranchers’ voices are being included in these debates. The presentation and panel discussion featuring farmers from both Nebraska and Iowa will allow the voices of thoughtful farmers to be heard. The event, entitled Water, Soil, Toil: The Ways We Farm, is a free event open to the public.

“In addition to having Dr. Thompson join us, we are very excited to welcome our moderator, Grant Gerlock of NET News and Harvest Public Media and a panel of well-known farmers” added Phillips. “The dialogue that the event will promote has been absent from the landscape of Midwest agricultural interests, and there is urgent need for this type of forum. Matters of vertical integration in agriculture, such as that currently proposed in the Nebraska Legislature, the humane treatment of animals, and the developments in the EPA’s clean water act are current hot-button issues amongst farmers and ranchers that will likely come up in the discussion.”



Iowa Pork Producers Association to hold annual meeting Jan. 27

The Iowa Pork Producers Association will hold its 2015 annual meeting on Tuesday, January 27, in Des Moines.

More than 100 producer/delegates from around the state will receive annual survey results, hear IPPA committee and national reports and special presentations. Outgoing IPPA President Jamie Schmidt of Garner will deliver the state of the association address.

Delegates also will consider at least five resolutions during the meeting submitted by county pork associations.

One resolution to be considered calls on the National Pork Producers Council and U.S. trade representatives to work with Canada and Mexico to negotiate a legal World Trade Organization solution to the Mandatory Country of Origin of Labeling (MCOOL) law.

Other resolutions include prohibiting IPPA from making any formal endorsement of political candidates, a call for enhancing traceability and animal health information management systems and addressing Iowa Department of Transportation requirements on manure hauling.

IPPA producer/delegates will meet at 10 a.m. at the Community Choice Credit Union Convention Center. IPPA also will recognize outstanding county and individual efforts in promotion and education during the awards luncheon.

The annual meeting will conclude with the passing of the gavel from Schmidt to 2015 IPPA President David Struthers, a Collins-area hog farmer.



FARMERS WILL SHARE HOW TO IMPROVE PROFITS THROUGH SOIL HEALTH

Farmers attending this year's Iowa Power Farming Show in Des Moines February 3-5 can learn how other Midwest farmers are making decisions that improve the health of their soil, along with
yields, profis and environmental outcomes.

An educational program Building Farmer Wealth with Soil Health will focus on what soil health means, practically, when farmers make decisions about soil sampling, fertilizer application and rates, reduced tillage, tiling, and cover crops, says program manager Dan Zinkand.

While farmers can't control crop prices, they can decide how to improve soil organic matter, water infitration and drainage, which inflence how soon they can get into plant in the spring, as well as how they sample their soil and when and how they fertilize crops, says Zinkand. Thy can also decide whether to try cover crops, a practice that's vital to soil health in a corn-soybean rotation. Thse decisions not only improve yields and profiability, but also enhance environmental performance.

One-hour sessions in the "Building Farmer Wealth with Soil Health" workshop will run from 10 a.m. to 4 p.m. on Tuesday, February 3 and Wednesday, February 4 and 10 a.m. to 3 p.m. on Thrsday, February 5 in Hy-Vee Hall, Rooms 107-108.

Farmers and scientists with years of experience will explain why and how to build healthy soils, those with high organic matter, high microbial activity, stable structure, high water infitration rates and other characteristics that produce higher yields long term.

Topics include bringing dead soils back to life; using the Haney soil test to measure life in the soil; practical tools to use in building soil health; sophisticated soil sampling that leads to better fertilizer decisions; and reasons for inter-seeding cover crops into standing corn and soybeans.

Event sponsors will have exhibits in Hy-Vee Hall and there will be ample opportunities to talk with the speakers, sponsors and exhibitors during the three-day event.

Major sponsors for this year's program include forage and cover crops seed producer Saddle Butte Ag, which has dealers in Iowa and other Midwestern states; Kimberley Ag Consulting, a fim known for its decades of corn meter calibration expertise, as well as on-farm consulting for plantability and fertilizer application; KB Seed Solutions, a supplier of cover crops seeds with dealers across the Corn Belt; and the Iowa Department of Agriculture and Land Stewardship, which offrs programs to increase the use of cover crops and other practices that improve soil health and water quality. Also sponsoring is Soil Investigative Services.

Attendance for  "Building Farmer Wealth with Soil Health" is free with paid admission to the 2015 Iowa Power Farming Show. To pre-register for the Iowa Power Farming Show and get a discount on admission, check its website, www.iowapowershow.com. 



Location and Quality Driving Current Land Values

     As 2014 came to a close, land values had stabilized from the double digit increases of the past few years, according to Farmers National Company, the nation’s leading farm and ranch real estate company. Location and quality of land continue to be main drivers of prices for a given tract of land.  The lower supply of land for sale and the continued demand for agricultural land is maintaining general stability of the land market. 

     “While lower grade land has seen drops in value near 15 percent from recent highs, top quality crop and grazing land still bring solid prices as owner operators and investors seek to expand their operations with the most productive land,” said Randy Dickhut, AFM, Vice President of Real Estate Operations of Farmers National Company.

     According to Farmers National Company, the supply of land for sale is less than in the past few years as there is no tax policy change driving sales and landowners remain tight holders of the asset. “Land is viewed as a long term asset and owners consider agricultural land a stable investment in a changing world,” said Dickhut.

     Demand for cropland and grazing land from owner operators remains good, but buyers are being more realistic in what they will pay given lower grain prices. Sellers are having to be realistic in evaluating the quality of their land and the expected selling price in order to have a successful sale.

     Despite leveling or moderately decreasing land values overall, Farmers National Company has seen strong prices paid for specific properties within the last 60 days based on local competition and the desire for quality. According to Dickhut, farmland seldom comes up for sale in many locations, therefore local producers are willing to pay top dollar to grow their operation and asset base. 

     Recent value adjustments in the land market still leave land values at historically high levels in the longer term view. Price softening is happening, but at different rates depending on the region, prices for major commodities in that region, and quality of the land. Profitability from record crop incomes supported by insurance coverage, has kept farm operations in the black and producers interested in adding land.

     “Buyers are being more realistic when considering land purchases which has reduced the fervor of rapidly escalating prices seen at land auctions in recent years,” said Dickhut. “Owner operators continue to be the main purchasers of agricultural land comprising nearly 90% of buyers in many areas.”

     Investors are showing up in the market to purchase land, but are also being realistic in the timing of their purchases and the long term outlook for agricultural land.

     Profitability in recent years has left many farm owners cash rich and opting for land purchases for personal and business investments. The tangibility of land and the ability to grow their operation makes land a preferred investment for the owner operator. Producers are being more realistic with their land purchases as they give more attention to the economics of the asset and seek increased financing.
     Even with lower grain prices, record grain harvests will keep net farm income quite positive in 2015. This factor should keep the current market fairly stable for the time being.

     “As we forecast further out into late 2015 and 2016, circumstances could shift,” said Dickhut.      One of the factors that could impact values moving into 2015 is the potential for rising interest rates. If rates increase gradually, as predicted, market impact should be minimal in the short term.

     Longer term, world demand for water, food, fuel and fiber will determine commodity prices which will affect future land values.  As long as the supply of land for sale remains low and demand continues to be present, land values will be supported, according to Dickhut.

     Farmland investment is still a positive long term opportunity for most producers and investors. Despite slight downward shifts, the land market remains stable and supports business expansion for farm operators looking to grow their businesses and investors wanting a long term asset.

Colorado, South Dakota, Nebraska and Wyoming
During 2014, the wide region covering Colorado, western South Dakota, Nebraska andWyoming saw continued land sales activity. While land values have not increased significantly,they are still at a steady high level, said JD Maxson, Area Sales Manager for Farmers NationalCompany, North Platte, Neb.

Demand for high quality crop ground coupled with current commodity prices still remain themotivating factors driving land prices. Sellers currently are concerned about long-termcommodity prices and buyers are less willing to pay top price. Although land prices havestabilized throughout 2014, most noticeably in the fourth quarter, farmers, owner/operators andinvestors are still focused on acquiring additional acres.

“The majority of our buyers and sellers have adjusted their expectations in light of lowercommodity prices and are more realistic when looking at the bottom line,” said Maxson. “Recentsales and continued buyer demand have reinforced the strength of the land market, which shouldcontinue into 2015.”

Recent land auctions since September confirm that buyer demand remains strong for highquality cropland, as prices in this area have reached all-time highs. Auctions scheduled in 2015will drive the land market values in this region.

“Medium to below average farms are selling at 10, 15 and 20 percent below 2013 prices inspecific locations across Nebraska,” said Maxson. “Renewed confidence in the stock market andfinancial markets may begin to have an impact on land prices. We may see a transition of wealthaway from agriculture as investors adjust to favorable increases in returns on alternativeinvestments; however, I don't foresee a sharp decline in ag land values.”

Prices in this wide region are ranging from $4,500 to $12,000 per acre for high qualitytillable acres, with location, soils and topography dictating price.

Iowa and Minnesota
Land values appear to be trending downward in specific areas of Iowa and Minnesota,according to Sam Kain, National Sales Manager for Farmers National Company, West DesMoines, Iowa. Most of the recent changes have occurred in the last 45 to 60 days.

“It is really hard to get a handle on the change in land values as some areas still tend to bevery aggressive,” said Kain. “With the outlook for lower commodity prices in 2015, I think wemay have hit the top in the land market for a while,” said Kain. “However, with fewer propertiesfor sale it remains to be seen if a downward trend will be long-term.”

Land is a long-term investment for most buyers, farm owners who want a property that isbeing sold know they may not get a second chance to buy it within their lifetime. If they wantthat property they need to aggressively try to purchase it or they may miss the opportunity toever own it.

In Iowa, top quality land is selling at more than $11,000 per acre, while Minnesota values arereaching $9,000 per acre.



Key Factors in the Beef Market in 2015...
Glynn T. Tonsor, Associate Professor, Department of Agricultural Economics, Kansas State University

As is common for the start of each new year multiple analysts are sharing their views on what will be key factors impacting the meat and livestock markets in 2015.  A nice summary of points I have been sharing and fully concur with are those provided on December 31st by the authors of CME's Daily Livestock Report. The five key points outlined are:
          The state of meat and poultry demand
          The U.S. economy
          Growth of the broiler sector
          The number of pigs saved per litter
          Pasture and range conditions

This list of issues largely reflects core supply and demand fundamental issues of central importance to the entire meat and livestock complex and I encourage a careful assessment of each issue.  To this list, I would add a series of additional points for industry stakeholders to seriously contemplate and monitor including:

Industry infrastructure relative to herd sizes
As the cow-calf industry proceeds (weather permitting) to expand the breeding herd the immediate impact will be a further reduction in throughput of animals for the feedlot and packing segments which already operate in a state of excess capacity.  Conversely in the hog industry, there is growing concern that the pending expansion will result in insufficient processing capacity.  Monitoring these trends over the next two years will be important both in aggregate nationally and regionally as some geographic areas are likely to be impacted much more than others.

Price discovery
The ongoing concern of both fed cattle and market hog producers regarding price discovery may be elevated in 2015.  Narrowly, the multi-year pattern of lower volumes of animals being sold via negotiated cash methods continues to concern segments of the industry. Changes in the relationship of herd sizes and infrastructure (see point #1) may further exacerbate these concerns.

Political issues including country of origin labeling (COOL) and checkoff funding
There is a long history within the U.S. cattle industry of policies being met with notably mixed acceptance given divergent views on how to best lead the industry into the future.  In 2014 two such issues included COOL and possible changes to checkoff funding and structure. In order for the collective cow-calf segment to best reap the economic rewards of astounding projected profit potential in 2015, it will be critical that these and related divisive issues do not result in producers losing sight of the fundamental market factors that largely are in their favor currently.

Public acceptance of current meat production practices
While the entire livestock sector is poised for likely expansion given favorable meat-to-feedstuffs price relationship projections, the exact magnitudes of expansion will be influenced by factors that may not have been heavily considered in the past.  There are mixed views among producers regarding the growing tendency of segments of the public to ask more questions about meat production practices and at times require adjustment or additional documentation of these practices.  To the extent producers are uncomfortable with this situation or the broader uncertainty they believe it poses to their business, individual interest in expansion may well be moderated resulting in lower aggregate expansion than some analysts may otherwise anticipate.

In summary, 2015 appears certain to be another interesting year offering profitable opportunities to many stakeholders in the beef-cattle industry.  Regardless of your agreement with the specific issues raised here, I encourage everyone to stay informed and make use of available resources to guide decision making throughout the upcoming year.



Farmers Gather for NCGA Priority and Policy Conference

The National Corn Growers Association's annual Priority and Policy Conference takes place this week in St. Louis, bringing farmer leaders from many corn states to begin the discussion of state and national priorities for the remainder of the 2015 fiscal year and to begin the 2016 fiscal year planning process. Together, these grower leaders will carefully assess NCGA's policies on such subjects as biotechnology, ethanol, public policy and trade.

"I am excited about the important opportunity this meeting will provide for us to learn about the concerns of grassroots leadership and to build a consensus on how to best move forward in the months ahead," said NCGA President Chip Bowling, a grower from Newburg, Md. "It comes at an important time for our industry, with a record-breaking crop in the bins and a host of challenges on the horizon as well. There will be much to discuss and take action on this week."

Participants include the chairs, presidents and executive directors of NCGA's state organizations, as well chairs and vice chairs of the organization's action teams and committees. Official proceedings will begin Wednesday afternoon with policy discussions in which the states will voice the priorities that they have submitted for NCGA, the U.S. Grains Council and their own in-state organizations.

Again this year, as part of a collaborative initiative with the Council, the Priority and Policy Conference also includes leadership from that organization for a discussion of its future priorities and of trade issues.



DTN Retail Fertilizer Trends

No fertilizer prices showed a significant move in either direction to start the New Year, according to retail fertilizer prices tracked by DTN for the first week of January 2015. But price resistance from farm customers may be contributing to the stalemate, another DTN reader poll shows.

Prices for five fertilizers slipped lower compared to a month earlier, but none of these fertilizers registered notable price decreases. DAP dipped to an average price of $566 per ton, urea $464/ton, anhydrous $707/ton, UAN28 $323/ton and UAN32 $364/ton.

The remaining three fertilizers were higher in price compared to a month earlier, but again these moves were fairly minor. MAP had an average price of $594/ton, potash $485/ton and 10-34-0 $577/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.50/lb.N, anhydrous $0.43/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 January 2014, all while commodity prices are significantly lower from a year ago. MAP is now 16% more expensive while DAP is 15% more and both 10-34-0 and anhydrous are 14% higher. In addition, potash is 2% higher and urea and UAN28 are both 1% higher compared to last year.

One nutrient is still lower compared to retail prices from a year ago. UAN32 is 1% less expensive from a year previous.



National Dairy FARM Program Reaches 80 Percent Participation

With nine more dairy marketing organizations implementing the program since October, NMPF’s animal care program, Farmers Assuring Responsible Management, now encompasses more than 80 percent of the U.S. milk supply.

At the NMPF annual meeting in October, the NMPF Board of Directors unanimously voted to adopt several program changes, including mandating that any participating dairy co-op or proprietary processor must ensure completion of a second-party, on-farm evaluation from all of its farmer suppliers.

Additionally, the board approved provisions that delineate a clear process for addressing allegations of willful animal abuse or mistreatment on farms enrolled in the program. Any such farm will be independently reviewed, and if the allegations are substantiated, the farm will be placed on probation, pending execution of a corrective action plan to address any issues. If needed remedial actions are taken, the dairy operation will be reinstated in the FARM program.

NMPF President and CEO Jim Mulhern said this new policy will further strengthen the consistency of the program, and help such farms improve their animal care practices. “The goal of the FARM program is to assure a high level of quality animal care on our farms,” Mulhern said. “We want the program to be inclusive and adaptive. And where we find problems, we want to address and improve the situation rather than find ways to exclude individual farms from the program.”

NMPF staff will work this year to improve the functionality of the FARM user-database to keep up with the significant increase in program participation. Additionally, NMPF is engaged in efforts to communicate the integrity and rigor of the FARM program to retailers and consumers as well as developing employee training modules for producers that focus on animal care and highlight approved FARM guidelines.



CWT Assistance Total for 2014: 2.5 Billion Pounds of Milk Exported

More than 190 million pounds of butter, cheese and whole milk powder, the equivalent of 2.5 billion pounds of milk on a milkfat basis. That’s how many dairy products Cooperatives Working Together, the dairy-farmer-funded export assistance program, helped 10 U.S. member cooperatives sell in overseas markets in 2014.

The total includes 103 million pounds of cheese, 53 million pounds of butter and 35 million pounds of whole milk powder. The customers for these products are located in 45 countries on six continents.

In December, CWT accepted 21 requests for assistance in selling 2.9 million pounds of American-type cheeses in Asia, the Middle East and South Pacific. The CWT-member cooperatives making the sales included Dairy Farmers of America, Northwest Dairy Association (Darigold) and Tillamook County Creamery Association.

Through October 2014, shipments of CWT-assisted dairy products totalled 164.1 million pounds, including 93 million pounds of cheese, 55.4 million pounds of butter and 15.7 million pounds of whole milk powder. Those volumes are equal to 56 percent of total U.S. American-type cheese exports, 47 percent of butter exports and 15 percent of whole milk powder exports during the same period.

CWT is a voluntary membership organizations funded by contributions from 37 dairy cooperatives, as well as more than 100 individual farmers, representing 70 percent of the milk produced nationwide.

Since 2011, CWT has focused exclusively on expanding markets for U.S. dairy farmers overseas. Member cooperatives submit requests for help with sales in specific foreign markets. Only if the amount is economically justified is the bid accepted and financial assistance provided. The bidder then has six months to deliver the product to the overseas purchaser.

NMPF President and CEO Jim Mulhern credits CWT with helping to keep U.S. dairy prices high amid steep decline in world prices this year. “By moving more dairy products into world markets,” Mulhern said, “CWT has helped keep domestic inventories low and demand high. In turn, that has buoyed U.S. milk prices across the board, which benefits all U.S. dairy farmers.”



U.S. Tractor Sales, Combines Down in 2014

According to the Association of Equipment Manufacturer's monthly "Flash Report," the sale of all tractors in the U.S. for December, 2014, were down 2% from last year.  For the month of December, two-wheel drive smaller tractors (under 40 HP) were up 7% from last year, while 40 & under 100 HP were up 11%. Sales of 2-wheel drive 100+ HP were down 22%, while 4-wheel drive tractors were down 49%.  Combine sales were down 40% for the month.

For the twelve months in 2014, a total of 207,833 tractors were sold which compares to 201,770 sold thru December 2013 representing a 3% increase year to date.  For the twelve 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 14%, while 4-wheel drive tractors are down 26%.  Sales of combines for the first twelve months totaled 7,993, a decrease of 26% over the same period in 2013.