Thursday February 5 Ag News

Corn and Soybean Clinic to Feature Managing Revenue Risk and Cost of Production During Times of Lower Prices on February 19
Steve Tonn, UNL Extension Educator, Washington County
What are prices going to be in the next year or next five years?  How can I manage my risk for revenue and price?  How can I manage my cost of production through times of lower prices?  Can I manage revenue risk with the use of marketing tools and crop insurance?  How do these decisions impact my Farm Program choices?  Nebraska Extension specialists will help farmers, landowners and farm mangers to answer these questions at the 2015 Washington County Corn and Soybean Production Clinic.  The clinic is from 1:00 p.m. - 3:30 p.m. on Thursday, Feb. 19 at the Washington County Extension Office, 597 Grant Street in Blair.

Featured clinic speakers will be Dr. Cory Walters, Nebraska Extension Ag Economist for Crop Marketing, Crop Insurance and Risk Management; and Tina Barrett, Nebraska Farm Business Inc. Executive Director; and Steve Tonn, Washington County Extension Educator.   The free clinic is sponsored by the University of Nebraska –Lincoln Extension in Washington County.  For more information contact the UNL Extension Office in Washington County at 402-426-9455, email  or visit the Washington County Extension web site at washington.unl.edu.



CME Group to Close Most Open Outcry Futures Trading in Chicago and New York by July; Most Options Markets to Remain Open

As open outcry futures trading has fallen to just one percent of the company's total futures volume, CME Group today announced it will close most of its futures trading pits in Chicago and New York by July 2, 2015.  The floor-based S&P 500 futures market, which continues to provide an important venue for trading the underlying futures contract for the open outcry S&P 500 options on futures contract, will remain open on CME Group's Chicago trading floor.

Options on futures contracts, which continue to trade actively on both the floor and the screen, will remain open on both trading floors except for the DJIA ($10) and NASDAQ-100 open outcry equity index options markets which are designed to deliver into floor-based futures contracts.

With the exception of the S&P 500 futures and options on futures pits which will remain open, equity index futures pits and the DJIA ($10) and NASDAQ-100 options pits will close following the expiration of the June 2015 contract on June 19, 2015. All other futures pits will close on July 2.  In addition, in Chicago, all options pits will be located on a single floor in the company's Financial Room by September.

To assist floor traders with the transition going forward, the company will make every attempt to make booth space available to those who want to trade electronically following the closure of the open outcry futures pits.

CME Group will hold members' meetings in Chicago and New York to answer questions and discuss transition plans.  Only current member owners will be admitted.



Checkoff Helps Commercialize 33 New Soy-Based Products

What does foam that keeps floors from squeaking have in common with NASCAR racing tires? Both contain soybean oil. Both are on the list of 33 new products commercialized in 2014 with soy checkoff support. And both are driving demand for U.S. soybeans.

All together, more than 800 soy-based products have been developed with checkoff support since 1990. United Soybean Board (USB) director Dale Profit, a soybean farmer from Van Wert, Ohio, has seen many advancements firsthand and anticipates even more soy-based product development in the future.

“Some new uses, like biodiesel, are high-volume,” Profit explains. “Other products, like carpet backing, paint and concrete-release forms, may use smaller amounts of soy, but have higher value. The market for ingredients like soy polyols keeps increasing in industries ranging from automotive to furniture manufacturers, which increases the demand for U.S. soy at home and abroad.”

Checkoff-funded research continues to pay dividends as manufacturers look for ways to displace industry standards like petroleum, latex, mineral oil and other possibly carcinogenic materials in their products. Raw materials from sustainable soy provide environmental benefits and have been proven to perform as well as the ingredients they replace in a wide range of products, at a comparable cost. In fact, some perform even better.

Browse USB’s Soy Products Guide, an online catalog of the thousands of currently available soy-based products, ingredients and manufacturers.

New soy-based products and ingredients introduced in 2014 as a result of checkoff support include:

PLASTICS
Eco Ultimate Silencer™ – Foam underlayment and carpet cushion by Foam Products Corp.
Eco Silencer HD FOF™ – A high-density-foam underlayment for floors by Foam Products Corp.
BETAFOAM™ Renue – Sound-deadening foam by Dow Chemical that is used in cars
Automotive seating for GM cars – Foam made with soy polyols by Lear Corporation
TSE EcoWIND™ – A polyurethane resin with soy oil for filament winding by TSE Industries, Inc.

RUBBER
NASCAR Racing Tires – Soybean oil used in rubber compounds by Goodyear Tire & Rubber

COATINGS /PRINTING INKS
Avicor® 384 and Avicor® 385 – Low-VOC architectural latex paints by Celanese
Beckosol AQ® 400 – Traffic line paint by Reichhold

ADHESIVES
Liquamelt® – A new adhesive system for wood by H.B. Fuller
CedarSafe® – 4’x8’ flakeboard panels used to make cedar closets made with Soyad® soy-based adhesive by Giles & Kendall, Inc.
Hardwood plywood panels – Made with Soyad® soy-based adhesive by States Industries, LLC, and available in home-improvement stores
Pangua PureGlue™ – Plywood with Soyad® soy-based adhesive made by Panguaneta S.P.A.
NU GREEN® – Particleboard and thermofused laminates by Uniboard Canada that replace formaldehyde with Soyad® soy-based adhesive

PAPER
AW-130SB™, AW-140SB™, AW-150SB™ – Soy wax emulsions for paper and packaging applications by A&W Products
PSA50MA™ and A5060™ – Binders for paper and paperboard made by Applied Protein Systems

SOLVENTS
Elevance Clean™ 1200 – Zero-VOC metal degreaser made by Elevance Renewable Sciences
ECO-300™ and MFS-Green™ – Oil-storage-tank cleaners made by FloTek industries

LUBRICANTS
GEOlube SCO™ – Oil-well-drilling lubricants by GEO Specialty Chemicals
Concert™ GC-350 – A grease-processing aid made by Elevance Renewable Sciences

EMERGING INDUSTRIAL OPPORTUNITIES
StimOil® FBA M, StimOil® FBA Plus, StimOil® EC, and StimOil® EN – Downhole crude oil recovery aides by FloTek industries
Azelaic acid – A soy-derived product by Emery Oleochemicals that is used in Nylon 6.9 and greases
Pelargonic acid – A soy-derived product used in paints, inks and greases by Emery Oleochemicals

WAX
Soy-based candles – Bennington Candle Company
Soy-based candles – Coyer Candle Company
Soy-based candles – Prize Candle Company

The 70 farmer-directors of USB oversee the investments of the soy checkoff to maximize profit opportunities for all U.S. soybean farmers. These volunteers invest and leverage checkoff funds to increase the value of U.S. soy meal and oil, to ensure U.S. soybean farmers and their customers have the freedom and infrastructure to operate, and to meet the needs of U.S. soy’s customers. As stipulated in the federal Soybean Promotion, Research and Consumer Information Act, the USDA Agricultural Marketing Service has oversight responsibilities for USB and the soy checkoff.



National Pork Industry Forum to Be Held March 5-7

Delegates from across the United States will gather in San Antonio, March 5-7 for the annual National Pork Industry Forum.

The 15 producers who serve as members of the National Pork Board and Pork Checkoff staff leadership will hear directly from the forum delegates appointed by U.S. Secretary of Agriculture Tom Vilsack. Each year the Pork Act Delegates confer, vote on resolutions and advisements and provide valuable direction on the important issues facing pork producers and the industry.

The theme for the annual pork forum – People. Pigs. Planet . – is in reference to the recently adopted Pork Checkoff 2020 Strategic Plan. The new strategic plan is focused on anticipating and managing the changing world facing U.S. pork producers now and in the future.

“As an industry, we have a defined commitment to “elevate U.S. pork as the global protein of choice by continuously and collaboratively working to do what’s right for people, pigs and the planet,” said Dale Norton, president of the National Pork Board and a producer from Bronson, Mich. “It has never been more critical that we work together as producers, processors and foodservice and retail leaders to make a collective difference to pork’s consumers.”

In advance of the annual meeting, members of the National Pork Board also will convene their March board meeting. The agenda for that meeting will include updates on 2015 plans to enhance pork demand, increase market opportunities, improve pork production practices and invest in research priorities.

Included on the 2015 Pork Forum agenda will be opportunities for pork producers to become trained in the pork industry’s Pork Quality Assurance® Plus (PQA Plus®) certification process, as well as learn more about pork industry programs.

The full agenda is available at www.porkindustryforum.com. As the event draws near, the website will be updated with current information and links to the Pork Forum manual and videos of candidates nominated for industry positions.



Vilsack on One-Year Anniversary of Passage of the 2014 Farm Bill

Agriculture Secretary Tom Vilsack today issued the following statement in advance of the first anniversary of the 2014 Farm Bill, which was signed into law by President Obama on February 7, 2014:

"Every American, and many around the world, has been positively impacted by the 2014 Farm Bill. The Farm Bill achieves meaningful reform while making critical investments that create jobs, drive long-term economic growth, and support more resilient rural communities where people want to live and raise families.

"Thanks to the Farm Bill, farmers have a common-sense risk management system in place to protect their families and livelihoods from future disasters. It's helped families become first time home buyers. It's supported rural businesses as they grow and create jobs. Communities have clean drinking water, some for the first time. Farm Bill disaster assistance programs have helped to rebuild lives.

"I am proud to stand alongside the thousands of USDA employees who have worked hard to implement the bulk of the Farm Bill's programs in record time."



Ag, Food Groups Urge Quick Passage Of TPA

The National Pork Producers Council today joined 70 other food and agricultural organizations in urging Congress to quickly introduce and approve legislation renewing Trade Promotion Authority (TPA) so that major trade deals can be finalized and implemented to help the U.S. economy.

TPA defines U.S. negotiating objectives and priorities for trade agreements and establishes consultation and notification requirements for the president to follow throughout the negotiation process. Once negotiators finalize a deal, Congress gets an up or down vote – without amendments – on it. Congress has granted TPA to every president since 1974, with the most recent law being approved in August 2002 and expiring June 30, 2007.

In a letter sent to all 535 congressional lawmakers, the food and agricultural groups said the farmers, ranchers, food and agricultural companies – and workers – they represent are heavily dependent on trade for their livelihoods. (Click here to read the letter.)

“Their ability to compete in global markets is tied to the ability of the United States to eliminate impediments to international trade,” said the organizations, which pointed out that as a result of trade agreements implemented since 1989 U.S. agricultural exports have nearly quadrupled in value, topping $152 billion in fiscal 2014. And those trade deals have been very beneficial to the U.S. economy, with every $1 in U.S. farm exports generating an additional $1.27 in business activity and every $1 billion in agricultural exports supporting 6,600 American jobs.

TPA, the groups said, will allow U.S. trade negotiators the ability, with direction and backing from Congress, “to extract the best deals possible from other countries.” Without it, though, “our negotiating partners would be unwilling to make the toughest concessions.”

The food and agricultural organizations are particularly interested in finalizing the Trans-Pacific Partnership (TPP), an Asia-Pacific regional agreement among 12 nations whose economies account for 40 percent global economic output.

“Should Congress not pass TPA, it will signal to our TPP partners and to the world that we are turning our back on the fastest growing economic region in the world,” said the organizations.



Cattlemen Announce Partnership with National Sheriffs’ Association
 
Today, during the Cattle Industry Convention, National Cattlemen’s Beef Association President Bob McCan and Sheriff T. Michael O’Connor from the National Sheriffs’ Association announced a partnership to work collaboratively on issues that impact both associations.

Cattle producers and local sheriffs’ offices interact on a daily basis addressing issues of criminal trespass or activity, animal welfare, and the operation of motor vehicles in the local communities.

“Alignment between our two groups will help to further both our interests on critical issues such as transportation and border security,” said McCan, a cattle producer from Victoria, Texas. “With these overlapping issues, we can strengthen our position and our message by working together. There is a lot to be gained from collaboration and this is a proud and historic moment for NCBA.”

The Memorandum of Understanding between the groups specifically calls for increased collaboration between local cattlemen’s associations and sheriffs’ offices, coordination in advocacy on Capitol Hill, and the development of joint media pieces on issues of mutual interest such as border security and immigration reform, animal welfare, private property rights, and transportation policy.

“I am very pleased the National Sheriffs’ Association formalized an agreement with the cattlemen,” said O’Connor, a fifth generation rancher  also from Victoria, Texas. “This is mile-stone event. Cattle producers are the economic driver of many of our rural communities and there is a lot of overlap between the two groups.”

Sheriff O’Connor stressed in addition to political issues, this partnership is critical for educational resources and referred to many instances where law enforcement is called to deal with livestock.

“This is where NCBA can help us tremendously,” said O’Connor. “We need your expertise to help train law enforcement and expand our capability for livestock management.”



Cattle Industry Convention Keynote Speaker Encourages Members to Create “Breakthrough Opportunities”

Keynote speaker Erik Wahl encouraged cattlemen to "break outside of business as usual” to create new opportunities and become stronger through failure at the Opening General Session of the 2015 Cattle Industry Convention & NCBA Trade Show. The convention, which opened in San Antonio, Texas, today will run through Saturday, Feb. 7.

The Opening General Session was sponsored by Boehringer Ingelheim Vetmetica, Inc.

Wahl’s unique presentation captivated the thousands of attendees, with the internationally-recognized graffiti artist using paintings created onstage to help share his message of creativity through innovations and the ability to conquer fear. His entertaining presentation has been shared with some of the country’s largest and most influential companies over the past 10 years.

“How are you going to reignite your artistry as a cattle rancher?” Wahl asked the audience. “We were always taught to be risk averse. But you need to unlock your minds to find ways to go back on the offensive to build consumer trust and loyalty. You need to see the world through different eyes.”

Wahl said cattlemen should “not be afraid to fail. Not be afraid to risk.” He used on-stage paintings to demonstrate how he had created his own art and revealed breakthrough pockets of opportunity.

More than 7,000 cattlemen and women and industry partners are already registered for the convention and trade show, with more expected as the NCBA Trade Show gets started Wednesday evening. The Trade show will feature more than 360 exhibitors on about 6.6 acres of the Henry B. Gonzalez Convention Center floor. It’s the largest cattle industry trade show in the country – and the largest one ever staged by the industry.

Also making remarks at the opening general session were Bob McCan of Texas, NCBA President; Kim Brackett of Idaho, Cattlemen’s Beef Promotion and Research Board Chairman; and Patti Buck of Colorado, president of the American National CattleWomen.

Singing the national anthem at the session was 11-year-old Mollie Beaver of Kansas, winner of the 2015 NCBA National Anthem Contest. Mollie will also sing the National Anthem at the Cowboy Comedy Club event Friday, Feb. 6, featuring comedian Jeff Foxworthy and musical guests Riders in the Sky. A “Mustache Bash After Party” following the event will feature the musical group Asleep at the Wheel.

A reception opening the NCBA Trade Show was held immediately following the general session. Meetings conducted by the NCBA Policy Division and Joint Beef Checkoff Committees will follow on Thursday, Feb. 5 and Friday, Feb. 6. The NCBA and the CBB will conduct meetings of their entire boards on Saturday, Feb. 7.



Pork Production Passes Beef for First Time Ever

Bloomberg News is reporting that beef is about to fall on the nation's overall meat scale. For the past two decades, chicken has outranked beef as the most produced meat, and now pork is about to surpass it as well. Hog herds have rebounded from a deadly virus last year, while record-high meat prices and cheaper feed led to breeding of more sows and bigger pigs. As pork output in 2015 jumps 4.6 percent to a record, cattle ranchers have yet to recover from a 2012 drought, and beef production is headed for a 22-year low, the U.S. Department of Agriculture estimates.

When porcine epidemic diarrhea virus killed millions of piglets across the country in 2014, prices for bacon and pork chops surged to all-time highs as supplies tightened. With more hogs arriving in recent months and demand increasing, costs are dropping for buyers including Domino's Pizza Inc. and Hormel Foods Corp.

"A year ago, it looked like the sky was going to fall," said Ed Juhl, a farmer in Hudson, Iowa, who lost about 2,400 pigs to the virus in June. His herd is now healthy, he expects output by June will be back to its annual sales pace of 36,000 animals. With each passing week, the industry's "confidence that we're going to increase pork supply is rapidly going up."

That's because the breeding-sow herd, during the three months ended Dec. 1, posted the biggest increase since 1998 and reached the largest in five years, the government reported Dec. 23. The total hog population jumped 2 percent from a year earlier to 66.05 million, the most in five quarters.

After two years of bumper corn and soybean crops, feed is cheap and that means hogs are getting bigger. On average, pigs for slaughter weighed 216 pounds last year, touching a record 222 pounds in May, compared with 208 pounds in 2013.

Pork production will climb this year to a record 23.908 billion pounds, as per-capita consumption reaches the highest in five years, the USDA said Jan. 12. Beef output will drop 1.7 percent to 23.901 billion while chicken jumps to an all-time high of 39.206 billion pounds, government data show.



GOODLATTE: ETHANOL MANDATE IS A 'KITCHEN TABLE' ISSUE

Congressman Bob Goodlatte released the following statement today after introducing two bills to alter the Renewable Fuel Standard (RFS), the RFS Elimination Act (H.R. 703) and the RFS Reform Act (H.R. 704):

“The ethanol mandate is a true ‘kitchen table’ issue – this unworkable policy impacts every American family trying to make financial decisions. From food costs to wear and tear on the family car or lawnmower, the RFS means added costs and less money for other purchases. It certainly impacts the cost of doing business for many, but it’s the consumers who ultimately shoulder the costs of this broken policy. This is one of the concerns I consistently hear from folks in the Sixth District whether they run a restaurant, farm for a living, or have noticed an increase in their grocery bills. The federal government’s ethanol mandate has triggered a domino effect that is hurting American consumers, energy users, livestock producers, food manufacturers, and retailers. Plus, the EPA’s continued failure to meet their deadlines to set renewable fuels requirements for both this year and last year, only create more uncertainty for those who must comply with this mandate. It’s clear that the majorly flawed RFS just isn’t working.

“Today, I introduced the RFS Elimination Act to stop this boondoggle of a policy in its tracks. While I would ultimately prefer to completely repeal this mandate, growing support from lawmakers in the House and Senate, as well as a diverse coalition of organizations, signals that there is momentum this Congress to achieve real reforms of the RFS. As we continue to work towards full repeal, the RFS Reform Act is a common sense solution to help curb some of the most harmful effects of this federal mandate.”

The RFS Elimination Act eliminates the RFS and makes ethanol compete in the free market. This legislation already has the support of 38 cosponsors. Additionally, Congressman Goodlatte introduced the bipartisan RFS Reform Act, which eliminates corn-based ethanol requirements, caps the amount of ethanol that can be blended into conventional gasoline at 10 percent, and requires the EPA to set cellulosic biofuels levels at production levels. This legislation already has the support of 34 cosponsors. The RFS Reform Act is supported by a diverse group of over 50 organizations.

The Renewable Fuel Standard (RFS) mandates that 36 billion gallons of renewable fuels be part of our nation’s fuel supply by 2022. Almost all of this is currently being fulfilled by corn ethanol. Both the RFS Elimination Act and the RFS Reform Act will be referred to the House Energy and Commerce Committee.



CWT Opens 2015 by Assisting 18.8 Million Pounds of U.S. Dairy Product Sales

In January, Cooperatives Working Together helped its member cooperatives sell 4.4 million pound of cheese and 14.4 million pounds of butter overseas. The products – the equivalent of 365 million pounds of milk on a milkfat basis – will go to customers in 14 countries on four continents.

Developed by NMPF, CWT is a voluntary export assistance program supported by dairy farmers producing 70 percent of the nation’s milk. By moving U.S. dairy products into world markets, CWT helps keep domestic inventories and dairy farmer milk prices at reasonable levels.

In 2014, CWT helped 10 member cooperatives sell 190 million pounds of butter, cheese and whole milk powder overseas. That is the milk equivalent of 2.5 billion pounds of milk.



ADM Reports Strong Adjusted Fourth Quarter 2014 Earnings of $1.00 per Share

Archer Daniels Midland Company (NYSE: ADM) today reported financial results for the quarter ended Dec. 31, 2014.

The company reported adjusted earnings per share of $1.00, up from $0.95 in the same period last year.  Adjusted segment operating profit was $1.13 billion, up 8 percent from $1.04 billion in the year-ago period. For the calendar year, adjusted earnings per share of $3.20 were up 37 percent versus the prior year.

Net earnings for the quarter were $701 million, or $1.08 per share, and segment operating profit1 was
$1.26 billion.

The Agricultural Services team executed well to capitalize on strong conditions, while international
merchandising continued to show year-over-year recovery, said ADM Chief Executive Offcer Juan
Luciano. In North America and Europe, Oilseeds showed strong year-over-year growth, offset by weaker results in South America. Looking ahead in North America and Europe, solid crush margins and export opportunities have carried into the first quarter. Market conditions in South America Oilseeds should improve with the large harvest, and we are working toward higher returns throughout 2015 in this key geography.

While U.S. ethanol demand was seasonally strong, boosted by the domestic response to lower gasoline prices, high industry production has built excess inventories. Margins in this industry should remain challenged until supplies are better aligned with demand. We will continue our work to optimize cost and product mix in the Corn business to maximize profitability.

Fourth Quarter 2014 Highlights
- Adjusted EPS of $1.00 excludes approximately $0.14 of asset disposal gains, $0.09 in benefits
related to biodiesel tax credits attributable to the first three quarters of the year, $0.09 in noncash pension settlement charges, and other net charges totaling $0.06.
- Oilseeds Processing decreased $107 million from an exceptional comparator, with record profits
from North American soybean crushing and strong results from soybean crushing in Europe
more than offset by weakness in South American results.
- Corn Processing decreased $31 million with rising net corn costs through the quarter partially
offset by strong ethanol results.
- Agricultural Services increased $234 million amid strong margins, record volumes and good
execution in the U.S., and improved international merchandising.
- Trailing four-quarter-average adjusted ROIC was 9.0 percent, up 240 basis points year over year
and 260 basis points above annual WACC of 6.4 percent.
- During the fourth quarter, the company repurchased 9.4 million shares. During 2014, ADM
returned more than $1.8 billion to shareholders through dividends and share repurchases.



Syngenta 2014 Full Year Results Released

- Integrated sales up 6 percent
- Fourth quarter sales up 12 percent
- Total sales up 5 percent at constant exchange rates to $15.1 billion
- Earlings hit $2.9 billion, up 1 percent; margin 19.3 percent

Mike Mack, Chief Executive Officer, said:

"In 2014 we achieved our integrated sales target of six percent at constant exchange rates despite lower crop prices, unfavorable weather conditions in North America and a deliberate reduction in low margin sales of glyphosate. Emerging markets registered double digit growth1 for the fifth consecutive year despite the geopolitical uncertainty in the CIS. Encouragingly, growth in Western Europe was also robust, with a particularly strong performance from our broadened fungicide portfolio. In Latin America, our new fungicide ELATUS™ achieved sales of over $300 million following its introduction in Brazil. This is the largest product launch in Syngenta's history, resulting in widespread grower recognition of the product's superlative performance against soybean rust.

"With emerging markets now accounting for over 50 percent of our sales, managing more volatile conditions has become an integral part of our business. A negative impact from currencies, notably those of the CIS, resulted in an EBITDA margin slightly below the previous year. Margins in 2014 were also affected by adverse product mix linked in large part to the reduction in US corn acres. We remain focused on improving profitability and in November announced decisive actions underpinning the realization in 2015 of the first cost savings under our Accelerating Operational Leverage program. The program will enhance our commercial effectiveness as well as improving efficiency in Research and Development and in the supply chain. It will allow us to realize the full potential of the integrated strategy and will ensure that increases in profitability are sustained over time."