Wednesday January 28 Ag News

Landlord/Tenant Lease Workshops Scheduled

Nebraska Extension will be hosting Landlord/Tenant Cash Lease Workshops this February-March to help landlords and tenants put together a lease that is right for both parties and helps maintain positive farm leasing relations.

Topics will include:
-    Latest information about land values and cash rental rates for the area and state.
-    Expectations from the lease, including goal setting for the rental property.
-    Lease termination, including terminating handshake or verbal leases.
-    Lease communication, determining appropriate information sharing for both the tenant and landlord.
-    Alternative cash lease arrangements, flexible provision considerations for your situation.
-    Other topics, like irrigation systems, hay rent, pasture rental agreements, and grain bin rental will be covered as time allows.

Extension Educators Allan Vyhnalek, Jim Jensen, Monte Vandeveer, or Tim Lemmons will present on these topics and provide common sense tips during the presentation. It is helpful if the tenant and landlord, as well as their spouses, attend together.

Landlord/Tenant Cash Lease Schedule
Feb. 4, 9:30 a.m. — Grand Island, Hall County Extension Office, 308-385-5088
Feb. 6, 9:30 a.m. — Blue Hill, Community Center, 402-746-3417
Feb. 9, 1 p.m. — Pierce, location TBD, 402-329-4821
Feb. 11, 1 p.m. — Hartington, Courthouse Annex Basement, 402-254-6821
Feb. 12, 1 p.m. — Center, Extension Office Classroom, 402-288-5611
Feb. 13, 9:30 a.m. — Lincoln, Lancaster County Extension Office, 402-441-7180
Feb. 17, 1 p.m. — Norfolk, Northeast Community College, Life Long Learning Center, 402-370-4040
Feb. 17, 6:30 p.m. — Omaha, Douglas County Extension Office, 402-444-7804
Feb. 19, 9:30 a.m. — Clay Center, Fairgrounds, 402-762-3644
Feb. 25, 1 p.m. — Neligh, Fairgrounds, 402-887-5414
Mar. 5, 9:30 a.m. — Auburn, 4-H Building, Fairgrounds, 402-274-4755
Mar. 10, 9:30 a.m. — Albion, Casey's Building, Fairgrounds, 402-395-2158

This free workshop is sponsored by the Nebraska Soybean Board.  Refreshments and handouts are provided. Registration is requested; please contact the host county.

This workshop has been held extensively across Nebraska for the past two years with over 2,600 attending.  Both landlords and tenants have said they found the workshop to be helpful in improving communications, setting rental terms, and learning about the use of flex lease provisions.  As crop budgets tighten, it is even more important to attend and listen to the latest discussion about leasing issues.

For more information or assistance, please contact Allan Vyhnalek, extension educator, Nebraska Extension in Platte County, at 402-563-4901 or avyhnalek2@unl.edu.



Center Pivot Irrigation Management Short Course

Getting the most value from your irrigation water will be the focus of the Center Pivot Irrigation Management Short Course, a day-long class to be hosted by Nebraska Extension at four sites this February.  A session was added for Feb 6th in Norfolk! 

Topics will include:
-    sprinkler package selection,
-    soil water management, and
-    pumping plant performance.

Also, irrigation industry representatives will be available to discuss the latest in center pivot irrigation technology.

Feb. 6 — Norfolk
Lifelong Learning Center on the Northeast Community College Campus
To register, call 402-370-4040 or email Madison-County@unl.edu

Feb. 9 — Scottsbluff
Panhandle Research and Extension Center
To register, call 308-632-1276 or email pmartin2@unl.edu

Feb. 10 — Holdrege
Ag Center on the Phelps County Fairgrounds
To register, call 308-995-4222 or email Phelps-County@unl.edu

Feb. 11 — Central City
4-H Building on the Merrick County Fairgrounds
To register, call 308-946-3843 or email Merrick-County@unl.edu

The day begins with check-in at 9 a.m. and speakers from 9:30 a.m. to 3:15 p.m. The program is free but participants are asked to pre-register so appropriate materials and lunch can be provided. To register, contact the host site.



Cargill to relocate meat slicing and packaging from Springfield, Mo., to Nebraska and Texas

Cargill has announced it is moving its meat slicing and packaging facility from Springfield, Mo., to the company’s facilities at Nebraska City, Neb., and Waco, Texas. The Springfield facility will close on March 11, 2015. The decision to close its Springfield facility followed a thorough assessment of Cargill’s turkey and cooked meats future business needs.

Cargill says the decision to close its Springfield facility will help it better serve customers given the meat products sliced and packaged there involve meat produced at other locations, including Nebraska City and Waco. “Given the scale of our facilities where this work is going, the proximity to raw materials, and technology driven efficiencies that can be gained, in addition to the shipping logistics benefits for our customers, we believe this move better positions us for future growth in a highly competitive environment,” stated Ruth Kimmelshue, president of Wichita, Kansas-based Cargill Turkey & Cooked Meats. “Nevertheless, it always hurts when people’s jobs are impacted, which is why we will offer to provide them with an appropriate level of transition support.”



Nebraska Cattlemen Voices Support for LB 85, Encourage Amended Fee Structure

Nebraska Cattlemen (NC) today testified in support of LB 85, a bill regarding fees for the Nebraska Brand Committee, sponsored by Sen. Al Davis of Legislative District 43. In addition to voicing support for the bill, NC encouraged the Nebraska Brand Committee (NBC) and members of the Nebraska Agriculture Committee to review the fee structure as written and suggested an amendment be made to reflect equitable payment for equitable services received across the beef cattle industry.

“Nebraska Cattlemen represents beef cattle producers from all sectors of the industry and continues to advocate for a comprehensive review of the NBC fee structure,” said NC Director of Legislative Affairs Laura Field. “NC’s longstanding policy - thoroughly vetted by our membership - supports brand inspection. We look forward to working with the Brand Committee to address our concerns for those sectors who receive less value for each dollar paid.”

Nebraska Cattlemen’s policy regarding increased NBC inspection fees was originally adopted in 2009 and adapted and approved by membership vote at following years’ annual conventions. The last membership vote was December 2014.



Smith Stands for Nebraska Agriculture at Trade Hearing

Congressman Adrian Smith (R-NE) participated Tuesday in a House Ways and Means Committee hearing on the U.S. trade policy agenda.  In the hearing, Smith raised concerns to U.S. Trade Representative Michael Froman about workforce disputes at West Coast ports causing perishable goods such as beef and pork to spoil prior to shipping.  He also asked about U.S. efforts to elevate biotechnology issues in ongoing discussions with China and negotiations through the Transatlantic Trade and Investment Partnership (T-TIP).

“During this Congress, expanding American trade will be one of our top priorities on the Ways and Means Committee,” said Congressman Smith.  “Today I had the opportunity to speak with Ambassador Froman about the importance of making agricultural issues including innovation a priority in U.S. trade initiatives.  Nebraska’s Third District is the number one agricultural district in the nation, and I will continue working to open new markets for Nebraska’s agriculture products starting with a Trade Promotion Authority bill that reflects these priorities.”



USDA Expected to Report Cattle Herd for Jan. 1 at 87.6 Million Head

Analysts and economists participating in The Wall Street Journal cattle inventory survey expect government data to show the U.S. herd as of Jan. 1 nearly even with this time last year, potentially ending eight years of contraction as producers have worked to rebuild following years of drought across the central U.S.

If the average of analysts' estimates is on target, the nation's cattle herd as of Jan. 1 was just shy of this time last year and the smallest in over 60 years. The semiannual U.S. cattle inventory report is scheduled for release on Friday at 3 p.m. EST (2000 GMT).

The Agriculture Department is expected to report the cattle herd for Jan. 1 at 87.6 million head, 0.1% fewer than a year ago, according to the average prediction of three analysts and economists. Estimates ranged from even with to 0.3% below the supply as of Jan. 1, 2014.

The average estimate for calves born in 2014 was about 33.4 million head, representing a decline of 1.5% from 2013. It takes a cow around nine months of gestation to give birth.

Market analysts expect the agency to report the number of beef heifers, or females, being retained to replace cows in order to breed new calves up 0.6% from last year. Although those heifers remaining on the farm means a smaller number may be headed into feedyards in the next few months, further pinching supplies of slaughter-ready animals in the near-term, they're expected to contribute to an increase in numbers when they calve in the years ahead.



AFBF on Dismissal of Lawsuit against EPA
Bob Stallman, President, American Farm Bureau Federation

“Farmers, ranchers and citizens in general should be concerned about the court’s disregard for individual privacy. This court seems to believe that the Internet age has eliminated the individual’s interest in controlling the distribution of his or her personal information. We strongly disagree.”

BACKGROUND TO THE RULING
AFBF was disappointed to learn late yesterday that the federal district court in Minnesota dismissed its lawsuit seeking to block EPA from releasing the personal information (such as a person’s name, home address, GPS location and telephone number) of livestock and poultry farmers and ranchers in response to Freedom of Information Act (FOIA) requests. The court concluded that no federally permitted livestock or poultry farmer is injured by such disclosure because the Clean Water Act mandates disclosure of information concerning permit issuance. For livestock and poultry farmers without a Clean Water Act permit, the court concluded that so long as the farmer’s personal information can be found somewhere on the Internet, EPA’s distribution of that same information does not result in any injury to the farmer. The court noted that a farmer with a public Facebook page used to promote the farm, or whose information could be found via search engine or any state regulatory website in any form, has no right to sue to stop the federal government from compiling and distributing that information.

AFBF and its co-plaintiff the National Pork Producers Council have 60 days to appeal the decision. Prior to the AFBF suit, EPA had already released personal information of farmers and ranchers from 29 states. AFBF filed suit to block further disclosures regarding farmers and ranchers in Minnesota, California, Idaho, Nevada, Oklahoma and Washington.



 Dispute Must Be Resolved Now To Protect U.S. Exports
The National Pork Producers Council and 92 other food, agricultural and allied industry groups today urged the parties involved in a labor dispute that’s affecting food exports that ship out of West Coast ports to resolve their differences as soon as possible. The organizations also called on the federal government to consider all remedies to bring the dispute to a swift end.

Slowdowns by dock workers at the ports in Long Beach, Los Angeles and Oakland, Calif., and in Seattle and Tacoma, Wash., have stranded thousands of containers of pork and other farm products over the past several months. Since November, pork prices, for example, have tumbled by 20 percent in large part because of the port problem, and meat and other perishable products awaiting shipment soon may need to be destroyed or discounted and sold on the domestic market. One estimate has the U.S. meat and poultry industries losing more than $30 million a week.

The International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association (PMA) have been unable to hammer out a new contract since the last one expired in July. Although the ILWU initially agreed to continue sending workers to the ports during the contract negotiations, in November it reneged on that agreement.

Exports of agricultural products have grown to $144 billion in 2013 from $46 million in 1994, with much of the growth in Asian markets, which are most directly affected by the ports slowdowns.

In an open letter to the White House, congressional lawmakers, the PMA and the ILWU, NPPC and the other organizations pointed out that the increase in food and agriculture products exported has been very beneficial to the companies that own West Coast ports and to the dock workers. “But the apparent indifference by [the PMA and the ILWU] to the impact the slowdowns are having on our sectors is disturbing,” the groups said.



ASA Ratchets Up Pressure on Unions, Ports to Resolve West Coast Slowdown

The American Soybean Association (ASA), along with more than 90 fellow farm and food organizations, called on representatives on both sides of the labor dispute impacting operations at five west coast ports to come to the bargaining table and resolve the issue that threatens the supply chain continuity for countless U.S. agricultural commodities. Not only is this dispute causing extreme congestion, delays, and uncertainty, it is costing the agriculture industry millions of dollars for every week that the negotiations and slowdowns drag on.

In an open letter, ASA and its fellow organizations urged both the International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association (PMA) to take into account the impact the dispute is having on consumers and to resolve their differences as quickly as possible. The groups also urged the federal government to consider all available remedies to bring the dispute to a rapid end, noting the potentially dire consequences of not reaching an agreement that gets each port back up and running quickly.

“This regrettable situation is having a severe impact on our ability to export agricultural and food products to many of our main export markets,” wrote the groups in the letter. “Inevitably, these overseas customers will look to other sources for their supply of these goods. Similar to what we encountered after ill-advised export embargoes in the past, once lost, a foreign customer can be difficult to recapture.”



All Retail Fertilizer Prices Creep Higher

Retail fertilizer prices all moved higher, but the shift is not very significant, according to retail fertilizer prices tracked by DTN for the third week of January 2015. That repeats last week's survey pattern.

All eight of the major fertilizers crept higher compared to a month earlier. DAP had an average price of $568 per ton, MAP $596/ton, potash $487/ton and urea $469/ton. 10-34-0 had an average price of $585/ton, anhydrous $707/ton, UAN28 $326/ton and UAN32 $367/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.51/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. 10-34-0 is 18% higher, anhydrous is 15% more expensive and both MAP and DAP are now 11% more expensive. In addition, potash is 3% higher compared to a year earlier.

Three nutrients are now lower compared to retail prices from a year ago. Both UAN28 and UAN32 are now 2% less expensive and urea is 4% less expensive from a year previous.



Group housing for sows at Cargill-owned farms completed 11 months early

Cargill Pork, LLC, one of the largest pork producers in the U.S., is 11 months ahead of its own schedule for completing the conversion to group housing for sows at company-owned farms.  In June 2014, Cargill Pork announced a commitment to group housing of sows at company-owned farms, with the original completion date set for Dec. 31, 2015.

“We are pleased to achieve 100 percent group housing at Cargill Pork farms nearly one year ahead of schedule,” said Mike Luker, president of Cargill Meat Solutions Corporation’s pork business.  “This is a significant investment in the future of our pork business, and one we made as the result of listening to the marketplace in recent years.”

For a number of years, Cargill’s U.S. pork operation had maintained 50 percent group housing for company-owned sows at farms owned by Cargill Pork.  Its 2011 acquisition of an idled hog farm complex in the Texas Panhandle helped the company achieve 100 percent group housing for its gestating sows at company-owned farms.

Since the Texas site was acquired, Cargill Pork has invested more than $60 million in the purchase and improvement of the 22,000-acre property near Dalhart, including the conversion of sow barns to contain group housing.  Cargill Pork’s Dalhart facility employs more than 300 people, including a team trained to care for the animals at the site.

"In recent years, many of our customers have made commitments related to the pork they will buy in the future, and we intend to meet those needs,” stated Luker.  “We’ve been a pioneer in the use of group housing for gestating sows dating back more than a decade, and recently there has been growing public interest in the welfare related to animals raised for food. Group housing and individual housing for gestating sows both have benefits and challenges.  Although a large-scale change to group housing takes time and is costly, we believe it is the right thing to do for the long term future of our pork production in the U.S., and our customers agree with us and support our decision.  However, we are always mindful about the many family farms raising hogs that have livelihoods invested in their operations and it will require patience and resources, should they choose to move to group housing.”

The target for conversion to group housing at contract farms containing Cargill Pork sows remains Dec. 31, 2017. Hogs produced by Cargill Pork-owned sows represent approximately 30 percent of the total animals harvested each year at Cargill’s two pork processing facilities.



Ethanol Stocks Climb to 2-Year High

The Energy Information Administration released data Wednesday, Jan. 28, showing an increase in ethanol inventories and implied demand while domestic production was little changed.

The data showed total stockpiles increased for the fifth straight week, up 244,000 barrels (bbl), or 1.2%, to 20.631 million bbl during the week-ended Jan. 23, putting supplies 3.7 million or 21.8% higher than the level seen a year ago.

Plant production eased 1,000 barrels per day (bpd) from a one-month high to 978,000 bpd during the week reviewed. Output was up 8.5% year-over-year while four-week average output was up 8.1%.



ASA to EPA: Where Are Your Renewable Fuel Priorities?

The farmer leaders of the American Soybean Association (ASA) today voiced their exasperation, confusion and anger at the U.S. Environmental Protection Agency following an announcement that the EPA will approve an application allowing Argentine biodiesel easier access to the U.S. market.

“Today’s decision issued by EPA on Argentinian biodiesel shows a lack of coordination and alarming tone-deafness regarding the purposes of the Renewable Fuels Standard,” said ASA President and Brownfield, Texas, farmer Wade Cowan. “EPA has put the interests of our foreign competitors above those of soybean farmers here in the U.S. At this point, we can only scratch our heads and wonder what EPA’s priorities are when it comes to the domestic renewable fuels industry.”

EPA’s announcement followed a December notice that the agency would postpone setting biofuels volume requirements for 2014 until early in 2015. Speaking at the National Biodiesel Board Conference last week, former Senator Byron Dorgan said EPA’s inability or unwillingness to set the 2014 RFS volume requirements demonstrated that there was “no minimum threshold for embarrassment” at EPA.

Cowan added, “Do they recognize that they have not set volume requirements for 2014—which has already passed—or for 2015, which we’re already a month into? Do they realize that every link in the biodiesel supply chain—from soybean farmers to gas station owners—is in limbo, awaiting their long-delinquent action on these decisions? Do they recall that one of the purposes of this program is to increase domestic energy independence? It sure seems that the answer to each of these questions is a resounding ‘no’.”

ASA wrote to EPA in March 2014 with questions and a request that the Argentine application be subject to a formal public comment period, given the potential ramifications and the numerous factors involved and impacts that go beyond EPA’s domain. EPA did not respond to ASA’s letter, and no public comment period was provided before its announcement. ASA is not aware of any requirement or deadline for EPA to act on the Argentine application.

“President Obama should not be pleased with the job EPA is doing on renewable fuels. The agency’s manner of haphazard decision-making, which is so sorely lacking in direction, belies the Obama Administration’s support for the U.S. biofuels industry,” Cowan said. “Until the past year, the White House could rightly share the credit for the benefits that this industry has provided to the rural economy, energy security, and reductions in greenhouse gas emissions. But these latest actions and inactions from EPA overshadow that progress and can only be seen as an embarrassment.”



Lindsay Corp. Completes Acquisition of Elecsys Corp.

Lindsay Corporation, a leading provider of irrigation systems and infrastructure products, announced the completion of its acquisition of Elecsys Corporation, a provider of machine-to-machine (M2M) technology solutions and custom electronic systems. Elecsys shareholders will receive $17.50 per share in cash for each share of common stock they owned as of the effective time of the merger, without interest and less any applicable withholding taxes. The agreement was announced on Nov. 4 and approved at a special meeting of Elecsys stockholders by over 99% of shares voted.

Headquartered in Olathe, Kan., Elecsys will continue to be operated by its current management team. As a result of the merger, the common stock of Elecsys will no longer be listed for trading on the NASDAQ exchange.

"We are pleased to welcome the Elecsys management team and employees to the Lindsay family," stated Rick Parod, Lindsay's president and chief executive officer. "Elecsys is a key strategic addition to Lindsay Corporation's long term strategy of leading the market in advanced technologies for managing water use efficiency. The combined strengths of Lindsay and Elecsys will create value for all our stakeholders and we are eager to move forward."

"The acquisition is an exciting opportunity for Elecsys and we are proud to become part of the Lindsay organization," added Karl Gemperli, president and chief executive officer of Elecsys. "Lindsay's financial strength, resources, and global market presence will enable Elecsys to expand our capabilities and global reach. We will continue to deliver leading industrial M2M solutions to customers in our established markets while we seek to achieve synergies with Lindsay's core businesses."

Holders of Elecsys stock certificates will receive an exchange package, with instructions concerning how to deliver their shares for payment, from the paying agent, Computershare. Stockholders who hold their shares in "street name" will receive information from their banks or brokers, who will handle the exchange of their shares directly. Elecsys stockholders with questions can call Computershare:

Lindsay manufactures and markets irrigation equipment primarily used in agricultural markets which increase or stabilize crop production while conserving water, energy, and labor. The Company also manufactures and markets infrastructure and road safety products under the Lindsay Transportation Solutions trade name. At November 30, 2014 Lindsay had approximately 12.1 million shares outstanding, which are traded on the New York Stock Exchange.



Culver's Raises Half-Million Dollars for 'Thank You Farmers' Fund

The Wisconsin-based Culver's restaurant chain announced it has contributed nearly $500,000 to the National FFA Foundation during the second year of its 'Thank You Farmers' initiative. The franchise says the program has connected with people across the nation in its goal to thank family farmers who have made Culver's the business it is today.

"We're excited to see the enthusiasm with which guests have embraced 'Thank You Farmers,'" said CEO and Founder Craig Culver. "We're deeply grounded in the farms that produce the dairy and grow the food that have made our restaurant what it is. It's been a natural partnership since Culver's was established over 30 years ago."

The second year of 'Thank You Farmers' kicked off with increased education around farming and where food comes from in Culver's restaurants across the U.S. Participating restaurants pledged their support to farm families through percent-of-sales nights, a guest donation program and event sponsorships--all benefiting local chapters of the National FFA Organization and other agricultural organizations.

Funds were used for projects like a corn maze in Minnesota, painting three blue barns sharing a giant 'thank you to America's farmers' message, and sponsoring a nationwide coloring contest.

In 2013, Culver's also held an online donation campaign to contribute to the cause. That project raised $50,000 for FFA sponsorships.