Wednesday February 11 Ag News

More than 400 Nebraskans Attend 2015 National Cattlemen’s Beef Assn. Convention

Nebraska Cattlemen (NC) today announced more than 400 Nebraskans registered for the National Cattlemen’s Beef Association (NCBA) Convention and Trade Show held in San Antonio, TX last week. In total, the event attracted more than 8,200 cattlemen and women, a record attendance for this major industry event.

“Beef producers nationwide are affected by policy decisions made at the NCBA conference. Nebraska Cattlemen works to ensure our members always have a seat at the table,” said NC President Dave McCracken. “Nebraska was exceptionally well represented at this year’s event. We’re proud to have engaged members who are willing to take the time to attend and step up to take leadership roles in our industry.”

At the convention, several key beef industry leadership roles were filled by Nebraska Cattlemen members:
-    NC member Craig Uden of Elmwood, NE was elected to serve as NCBA Vice President.
-    NC member Jaclyn Wilson of Lakeside, NE was selected as NCBA Resolutions Committee Chair.
-    NC member Steve Hanson of Elsie, NE was elected Vice President of the NCBA Federation Division.
-    Hanson was also selected to serve on the Beef Promotion Operating Committee as was NC member Dawn Caldwell of Edgar, NE.

In addition, NC member and 2014 Industry Service Award Winner Anne Burkholder of Cozad, NE was recognized as the 2014 Beef Magazine Trailblazer Honoree for her volunteer outreach efforts.



Federation of State Beef Councils Takes Action at 2015 Annual Meeting

Jennifer Houston, a livestock market operator from Sweetwater, Tenn., was elected chair of the Federation of State Beef Councils during the 2015 Cattle Industry Convention and NCBA Trade Show in San Antonio, Texas, last week. Elected vice chair was Steve Hanson, a cow-calf operator from Elsie, Neb. The Federation of State Beef Councils is the national home of state beef councils and a division of the National Cattlemen’s Beef Association (NCBA), a contractor to the Beef Checkoff Program.

Houston previously served as the Federation’s vice chair. She grew up on a cattle and hog farm in West Tennessee, and graduated from the University of Tennessee with a degree in animal science. She worked for the U.S. Department of Agriculture in Tennessee prior to joining her husband in a family livestock market operation. Houston has been deeply involved in the beef checkoff at the state and national levels. She was appointed to the Tennessee Beef Industry Council when it was established in 1986, and served as the TBIC representative to the National Live Stock and Meat Board, a predecessor organization to NCBA.

As chair of the Federation, Houston will serve as vice chair of the Beef Promotion Operating Committee (BPOC), which recommends beef checkoff projects funded at the national level. Hanson will also serve on that committee. Approval of BPOC-approved projects and budgets is required by the Cattlemen’s Beef Board and the U.S. Department of Agriculture.

In addition to Houston and Hanson, other Federation members of the BPOC for 2015 are Austin Brown III (Texas), Clay Burtrum (Oklahoma), Dawn Caldwell (Nebraska), Terri Carstensen (Iowa), Jerry Effertz (North Dakota), Cevin Jones (Idaho), Scott McGregor (Iowa) and Kristin Larson (Montana). Jones is past chair of the Federation. The CBB also appoints 10 members to the BPOC.
 
Support for Work of Beef Checkoff Group Expressed
The Federation at the convention expressed appreciation for efforts of the Beef Checkoff Enhancement Working Group. Members passed a resolution stating the Federation “supports the work of the Beef Checkoff Enhancement Working Group and that the Federation continue as a resource in this process.”

Because it is funded with checkoff dollars through state beef councils and their collections of the $1-per-head national beef checkoff, the Federation may not take an active role in actions of the Working Group or in efforts to increase beef checkoff rates. It will not sign the Working Group’s Memorandum of Understanding, but instead work in a resource capacity for the group’s efforts.

The 2015 Cattle Industry Convention and NCBA Trade Show attracted more than 8,200 cattlemen and women to San Antonio, a record attendance for this major industry event. Next year’s convention will be held in San Diego, Calif., Jan. 27-30, 2016.



Producers Say Beef Checkoff Has Value For Them

A random survey conducted by the independent firm Aspen Media & Market Research in late December 2014 and early January 2015 found an overwhelming majority of beef and dairy producers continue to say their beef checkoff has value for them in many ways. Producer Communications Working Group (PCWG) Chair Jeanne Harland shares more of the survey highlights:

She says,  “The exciting thing to me is that support for the checkoff remains so strong. Over 80 percent of our producers say that the checkoff has helped to contribute to a positive trend in beef demand; 72 percent of them say the beef checkoff contributes to the profitability of their own operation, and we all think locally and we all think in terms of what’s going on on our own farm; 76 percent of our producers say the checkoff would be there for them in the time of a crisis; and that same number say that the checkoff represents their interests. And beyond that, almost 70 percent of our producers believe the checkoff is well-managed.”

Harland says the survey results are very encouraging.  “With all that has gone on in the past six months, I think it’s really significant that the fewest number of producers in the history of the program say they disapprove of it right now.”

Harland explains two ways producers can stay informed about their checkoff investment... “Well the first thing I would do is I would ‘like’ MyBeefCheckoff on Facebook. Really, that’s the first place I ever see a lot of the updates and a lot of the information because that’s a media I’m on every day. Or you can just go to the MyBeefCheckoff.com website and everything is there. It’s really easy to navigate, even for someone like me who is not very tech-savvy. It’s all there and it’s a good way to keep up with things.”



Rademacher Named ISU Swine Extension Veterinarian

Dr. Christopher Rademacher joined the faculty at the Iowa State University College of Veterinary Medicine as the Swine Extension Veterinarian in December. He joins Dr. Jan Shearer, dairy, and Dr. Grant Dewell, beef, on the ISU Extension and Outreach veterinarian team. Shearer and Dewell are also Iowa State faculty.

Rademacher is internationally renowned for his experience and expertise in evidence-based swine production medicine. He grew up on a swine farm in Minnesota and went on to earn his undergraduate and veterinary degrees from the University of Minnesota. Following graduation, he served as the director of health strategies for New Fashion Pork, where he oversaw the animal health program for more than 1 million market pigs. Rademacher was recruited to join Western Operations of Murphy-Brown in 2009, where he served as director of production improvement for 330,000 sows and 7 million market pigs per year and most recently worked with the MBMO division in Princeton, Mo.

“We are extremely pleased to have one of the most progressive young swine veterinarians in the United States joining our faculty," said Dr. Pat Halbur, chair of the Department of Veterinary Diagnostic and Production Animal Medicine. "Rademacher’s international experience in swine production medicine and applied clinical research will make him a highly sought out and valued resource for swine veterinarians and pork producers.”

As the Swine Extension veterinarian, Rademacher will continue his focus and interest in using research methodologies to answer specific health and production questions and disseminate that information broadly to swine veterinarians and pork producers to continuously improve pork production in the U.S.

“I am indeed humbled and honored to be joining the College of Veterinary Medicine at Iowa State University and its internationally recognized swine veterinary program,” Rademacher said. “I am looking forward to serving swine producers and veterinarians and assisting them in improving the health, welfare and productivity of the animals they care for.”



Lambing Time Workshop for Sheep Producers Offered March 7

Iowa State University Extension and Outreach invites sheep producers to attend a Lambing Time Workshop at the Hansen Agriculture Student Learning Center, 2516 Mortensen Road in Ames, March 7 from 9:30 a.m. to noon. Discussion leaders include Dan Morrical, sheep specialist, Joe Sellers, livestock specialist and Ben Stokes, ISU sheep teaching farm manager.

The half-day program will focus on Improving Lamb Survival with Morrical, sheep specialist for ISU Extension and Outreach. “Lamb losses from birth to weaning range from 10 to 25 percent. In this session we will identify the main causes of death loss and provide management ideas to correct those causes,” says Morrical. Lamb loss can be due to starvation, hypothermia, dystocia, stillbirths, digestive disorders, scours, pneumonia and lastly trauma.

“Baby lamb survival is key to sheep production profits. A goal of flock operations is to get lambs off to a good start,” said  Sellers, livestock specialist with ISU Extension and Outreach.

Registration is at 9:30 a.m. with the program starting at 10 a.m. After 11 a.m., attendees will travel to ISU Sheep Teaching Farm, on South State Ave. in Ames, for a tour of the Iowa State lambing barn and for sessions on: condition scoring ewes, assessing lamb health, temping and tubing and lamb processing. Participants should come dressed for the weather.

Class size is limited to 40 participants. To pre-register by March 4, contact Dan Morrical at 515-294-2904, morrical@iastate.edu or Joe Sellers at 641-203-1270, sellers@iastate.edu.

Sponsors for the Lambing Time Workshop are ISU Extension and Outreach, Iowa Sheep and Wool Promotion Board, and Premier 1 Supplies, Ltd.



Farm Sector Profitability Expected To Weaken in 2015
USDA Economic Research Service

Net farm income is forecast to be $73.6 billion in 2015, down nearly 32 percent from 2014’s forecast of $108 billion. The 2015 forecast would be the lowest since 2009 and a drop of nearly 43 percent from the record high of $129 billion in 2013. Lower crop and livestock receipts are the main drivers of the change in 2015 net farm income from 2014 as production expenses are projected up less than 1 percent. Net cash income is forecast at $89.4 billion, down about 22 percent from the 2014 forecast. Net cash income is projected to decline less than net farm income primarily because it reflects the sale of carryover stocks from 2014.

Crop receipts are expected to decrease by $15.6 billion (7.9 percent) in 2015, led by a projected $6.7-billion decline in corn receipts and a $3.4-billion decline in fruit/nut receipts. Livestock receipts are forecast to decrease by $10.1 billion (4.9 percent) in 2015 largely due to lower milk prices. The implementation of new programs under the Agricultural Act of 2014 results in a projected 15-percent increase ($1.6 billion) in government payments. Total production expenses are forecast to increase by $2.5 billion (about 1 percent) in 2015, extending the upward movement in expenses for a sixth straight year.

The rate of growth in farm assets is forecast to slow in 2015 compared to recent years. The slowdown in growth is a result of lower net income leading to less capital investment, and a slight decline in farmland values. Farm sector debt is expected to increase 3.1 percent, well above the expected increase in the value of farm assets (0.4 percent). Most of the anticipated increase in debt is for nonreal estate loans, with lower income spurring demand for operating funds. Despite the anticipated higher debt, the historically low levels of debt relative to assets and equity reaffirm the sector’s relatively strong financial position despite 2 years of declining net farm income.

Increase Is Forecast for Median Income of Farm Operator Households in 2015
Median income of farm households is forecast to increase slightly in 2015, to $72,298, up from $70,718 projected for 2014. Given the broad USDA definition of a farm, many farms are not profitable even in the best farm income years. The projected median farm income of -$1,558 is essentially unchanged from the 2014 forecast of -$1,570. Most farm households earn all of their income from off-farm sources—median off-farm income is projected to increase 4 percent in 2015 to $66,361. (Note: Because they are based on unique distributions, median total income will generally not equal the sum of median off-farm and median farm income.)



USDA Releases 10-Year Baseline - Farm Income Seen Stabilizing Over Long Term
Katie Micik, DTN Markets Editor

Farmers will face two years of shrinking income, but cash receipts should increase steadily from 2017 to 2024, USDA said in its full, long-term projections report released Wednesday.

"Although farm production expenses also increase beyond 2016, net farm income remains above its 2001-10 average," the report stated. "Similarly, the value of U.S. agricultural exports falls in 2015 due to lower crop prices, but then rises over the rest of the projection period."

Earlier this week, USDA said 2015 net farm income was likely to fall 32% from 2014 to $73.6 billion, the lowest since 2009. Net cash income, which includes the sale of carryover grain stocks, was forecast at $89.4 billion, 22% lower than last year.

USDA stresses that its long-range projections, also referred to as the baseline, are not a forecast. The report is based on a specific set of assumptions, and "are a description of what would be expected to happen under these very specific assumptions and circumstances." The core assumptions: no domestic or external shocks that affect global ag markets, normal weather and trendline yields, and that the 2014 farm bill programs will remain in effect for the entire timeframe (each farm bill covers five years, but the forecast covers 10 years).

The projections cover agricultural trade, crop production estimates, livestock production, farm income by sector, oil prices, agriculture policy, biofuels and more.

Historically, the baseline estimates offer the first glimpse at where USDA might put its initial acreage estimates for the upcoming crop year. USDA reveals its first acreage forecast next week at its annual USDA Agricultural Outlook Forum. USDA's first survey-based forecast, the Prospective Plantings report, will be published on March 31.

USDA's baseline report assumes farmers will plant 88 million acres of corn in 2015, resulting in 13.45 billion bushels of grain.  Soybean planting estimates in the report, at 84 million acres, are less than most private estimates.

Other interesting highlights:
-- Lower crop prices lead to higher government payments to farmers from 2015 to 2017 through the Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) programs. "Beyond 2017, direct government payments are lower and below the average of 2001-10."

-- Ethanol production will remain relatively flat over the next 10 years, and 35% of projected corn use will go toward ethanol. Infrastructure and other issues will limit the growth of E15 blends, and E85 use will grow very slowly. There also won't be a big pickup in exports.

-- The projections assume the conflict in Russia and Ukraine is short term, and will not have any long-term effect on economic and agricultural development in those countries.

-- Crop prices are expected to remain above 2007 levels. Major crop prices have fallen over the last two years and "as markets adjust to these lower prices, the projections indicate that prices will bottom out and then rise again, reflecting long-term growth in global demand for agricultural products, a relatively low-valued dollar, and continued biofuel feedstock demand."

-- Prices for hogs and broilers are expected to decline through most of the next 10 years as production rises. Beef cattle prices, on the other hand, will initially rise as beef production declines while producers rebuild their herds. USDA expects beef cattle prices will fall for several years starting in 2018 as production increases.



Ethanol Stocks Hit 2 1/2-Year High

The Energy Information Administration released data Wednesday, Feb. 11, showing domestic ethanol inventories expanded to a fresh 2-1/2 year high, as domestic production increased while implied demand fell for the second consecutive week.

The data showed total stockpiles increased for the seventh straight week, up 100,000 barrels (bbl), or 0.7%, to 21.1 million bbl during the week-ended Feb. 6. That's the most stocks in storage since the week-ended June 1, 2012. Total supplies are 4.1 million, or 23.9%, higher than the level seen a year ago.

Plant production bucked a two-week decline, ramping up 14,000 barrels per day (bpd) to 961,000 bpd during the week-ended Feb. 6, while up 6.6% year-over-year. Four-week average output is up 7.3% versus the comparable year-ago period.

Blender inputs, a proxy for ethanol demand, decreased for the second consecutive week, down 4,000 bbl at 826,000 bpd during the week-ended Feb. 6, while edging up 1.2% year-over-year. Four-week average inputs rose 3.2% against the same period in 2014.

Implied demand for gasoline declined 160,000 bpd to 8.282 million bpd, 0.5% lower than the same week last year, EIA reported.



Inspectors Warn Against USDA's High-Speed Hog Inspection Program
Today, the Food Integrity Campaign (FIC, a program of the Government Accountability Project) is releasing evidence it has gathered from federal meat inspector whistleblowers who currently work at pork processing plants participating in a high-speed inspection pilot program. These whistleblowers voice concerns regarding the program and warn about the potential public health implications if this plan is instituted on a national level.

FIC is making publicly available affidavits from four U.S. Department of Agriculture (USDA) inspectors that illustrate serious concerns with the agency pilot program that increases the speed of processing lines and reduces the number of trained USDA inspection personnel in the hog plants.

FIC Director, Amanda Hitt, stated:
    The USDA already refused to listen to its own inspectors when it implemented a similar high-speed inspection program for poultry late last year. Now the agency is poised to reduce oversight and increase line speeds at plants with hogs. It’s become abundantly clear that the Department of Agriculture is not interested in listening to the food safety concerns voiced by its own staff. Since the government doesn’t wish to heed whistleblowers, we are urging pork producers to reject sub-par meat inspection that places profit before public health.

FIC has launched a Change.org petition <https://www.change.org/p/stop-high-speed-inspection-model-from-expanding-to-the-pork-industry> urging Hormel, one of the largest pork producers in the United States, to abandon its use of high-speed inspection. The company owns three out of five hog plants currently participating in USDA's pilot program.

USDA inspectors stationed at the Hormel pilot plants have informed FIC that the high-speed inspection model will lead to more contaminated and defective products on consumers’ plates. Some of the problems that inspector affidavits raise include:

    Plant employees take over the duties of government inspectors. While federal employees (including at USDA) have whistleblower protections and can speak on behalf of the plant workers, Hormel employees are in the private sector and have inadequate legal safeguards. They cannot safely report food safety problems or stop the lines without fear of retaliation.

    Line speeds at pilot plants run up to 20 percent faster than those at plants operating under traditional inspection. Quicker speeds make it even more difficult for plant employees and USDA inspectors to detect contamination on carcasses.

    Company employees lack adequate training and often fail to identify signs of defects and contamination that could result in foodborne illness or unwholesome products. Inspectors in pilot plants report a higher level of zero-tolerance food safety hazards compared to plants operating under traditional inspection.

    USDA inspectors are only allowed to conduct inspections on a small sample of hogs. Samples in  these plants are not representative, and don’t reflect true pathogen risk.

The affidavits released today can be found at FoodWhistleblower.org/StopHighSpeedHogs <http://www.foodwhistleblower.org/campaign/hormel-hogs/#affidavits> .

The names of three of the inspectors, and all identifying information of the specific plants, have been redacted at the request of the inspectors. However, these affidavits have the full backing and endorsement of FIC.

Direct Quotes from USDA Inspectors
- There aren’t enough eyes on the line to monitor carcasses coming by at such high speeds. (Anonymous Inspector, Affidavit #1)

- On numerous occasions I witnessed them [company inspectors] fail to spot abscesses, lesions, fecal matter, and other defects that would render an animal unsafe or unwholesome. (Anonymous Inspector, Affidavit #1)

- When USDA loses the authority to make plant employees engage in corrective actions, the program stops working. This is what has happened at the plant where I work. (Anonymous Inspector, Affidavit #2)

- Other contamination such as hair, toenails, cystic kidneys, and bladder stems has increased under HIMP [pilot program]. Line speeds don’t make it any easier to detect contamination. Most of the time they are running so fast it is impossible to see anything on the carcass. (Anonymous Inspector, Affidavit #2)

- When HIMP was originally implemented, I had high hopes that the program would improve food safety. Over the past few years, I have learned that is not the case. Instead it seems like it is just the USDA’s way of catering to the industry instead of the consumer. (Anonymous Inspector, Affidavit #2)

- The company threatens plant employees with terminations if they see them condemning too many carcasses or carcass parts. (Anonymous Inspector, Affidavit #3)

- It seems like the USDA is doing all it can to make sure the HIMP program succeeds in this plant, even if it means betraying consumers by hiding the truth about their food. (Anonymous Inspector, Affidavit #3)

- It’s no longer meaningful for consumers to see that mark indicating that their product has been USDA-inspected. (Anonymous Inspector, Affidavit #3)

- Food safety has gone down the drain under HIMP. (Anonymous Inspector, Affidavit #3)

- Personally, I will not eat any products that bear the name of the company for which this meat is produced. I don’t think that it is wholesome or safe to consume. (Joe Ferguson, Affidavit #4)

- After working in this plant for more than ten years, I definitely do not support its expansion to the rest of the industry. (Joe Ferguson, Affidavit #4)



Five questions non-operator landowners should ask their farmers about soil health
Elisa O'Halloran, Natural Resources Conservation Service

More farmers, ranchers and others who rely on the land are taking action to improve the health of their soil. Many farmers are actually building the soil. How? By using soil health management systems that include cover crops, diverse rotations and no-till.

And when they’re building the soil they’re doing something else – they’re also building the land’s production potential over the long-term.

But how do non-operator landowners (people who rent their land to farmers) know if their tenants are doing everything they need to do to make and keep their soil healthy? Barry Fisher, an Indiana farmer and nationally recognized soil health specialist with the USDA’s Natural Resources Conservation Service, recommends that they ask their farming partner these five questions.

1. Do you build organic matter in the soil?
Organic matter (carbon) may be the most important indicator of a farm’s productivity. The amount of soil organic matter often determines the price farmers will pay to rent or buy land. Finding a farmer who is interested in building organic matter by using practices like no-till and cover crops is like finding a bank with a better rate on a Certificate of Deposit, Fisher says.

2. Do you test the soil at least once every 4 years?
Fisher says maintaining fertility and pH levels are important to your farm’s productivity. Regular soil testing can give an indication of trends in soil fertility, pH and organic matter levels in each field. These tests will determine the amount of fertilizer each field needs. If a field has a history of manure application and very high fertility, a farmer could save money by planting cover crops to keep those nutrients in place rather than applying more nutrients that may not be needed.

3. Do you use no-till practices?
Some landowners like the look of a clean-tilled field in the springtime. That “nice look” is short lived, though. “The reality is a field that has bare soil is subject to erosion and loss of organic matter, since it no longer has the protective cover from the crop residue on the surface,” Fisher says. “No-till farming utilizes the crop residue to blanket the soil surface to protect it from the forces of intense rainfall and summer heat. This protective blanket will conserve moisture for the crop and prevent loss of soil from wind erosion, water erosion and CO2 (carbon) that could be burned off by summer heat.”

4. Do you use cover crops?
“Like no-till, cover crops provide a green, protective blanket through the winter months or fallow times. The green-growing cover is collecting solar energy, putting down roots and providing habitat when the soil would otherwise be lifeless and barren,” says Fisher.  This habitat provides food and shelter for a broad population of wildlife above ground and beneficial organisms below ground.  As the new life emerges, cover crops hold onto the nutrients left from the previous crop and in turn releases them to the next crop.  The solar rays these plants collect are powering photosynthesis, taking in CO2 from the atmosphere to produce food for the plant and the organisms living in the root zone.  This same process also releases clean oxygen to the air and builds nutrient rich organic matter in the soil.

5. What can we do together to improve soil health on my land?
To improve soil health, landowners and tenants have to think in terms of the long-term. According to Fisher, the duration of the lease agreement is perhaps the most critical matter in encouraging the adoption of these soil health management systems. “Farmers can actually build the production capacity and resiliency of their landowner’s soil, but it may take several years to realize the full benefits of doing so,” Fisher says. He suggests that landowners consider multiple-year leases that provide tenure security for the tenant. Longer tenures give both landowners and tenants more opportunities to improve soil health and realize the resulting longer-term production and profitability gains through sustainable conservation practices.

“Improving soil health can provide long-term, stable dividends for you, your family and your farming partner,” Fisher says. “Improving soil health also can decrease the effects of flooding, make food production more resilient to weather extremes, and improve the health of water and wildlife, as well,” he adds.

Fisher encourages landowners to learn more about the basics and benefits of soil health management systems and to begin the soil health discussion with their farming partner right away. “Even if you’re not a farmer or landowner, everyone has a great stake in improving the health of our soil,” he says.



The Mosaic Company Reports Fourth Quarter And Full-Year 2014 Results

The Mosaic Company (NYSE: MOS) today reported fourth quarter 2014 net earnings of $361 million, compared to $129 million in the fourth quarter of 2013. Earnings per diluted share were $0.97 in the quarter compared to $0.30 last year. Notable items positively impacted earnings per share by $0.10, including a discrete tax benefit. Mosaic's net sales in the fourth quarter of 2014 were $2.4 billion, up from $2.2 billion last year. Operating earnings during the quarter were $365 million, up from $179 million a year ago, driven by higher prices in the Phosphates segment, and higher sales volumes combined with lower operating costs in the Potash segment.

"While we expected strong fourth-quarter results, demand exceeded our expectations as customers came to the market in force, seeking to replenish empty inventories ahead of an expected strong spring application season in North America," said Jim Prokopanko, President and Chief Executive Officer. "2014 was a year of transformation for Mosaic. We grew and rebalanced our business portfolio, optimized our balance sheet, and worked to assure Mosaic remains a low-cost producer."

Cash flow provided by operating activities in the fourth quarter of 2014 was $382 million compared to $503 million in the prior year. Capital expenditures plus investments in Wa'ad Al Shamal Phosphate Company (also known as the Ma'aden joint venture) totaled $254 million in the quarter. Mosaic's total cash and cash equivalents were $2.4 billion and long-term debt was $3.8 billion as of December 31, 2014.

Full-Year 2014 Results (unaudited)
For the twelve months ended December 31, 2014, net income was $1.0 billion, or $2.68 per diluted share, compared to $1.1 billion, or $2.49 per diluted share in 2013. Net sales were $9.1 billion, up from $9.0 billion a year ago. Full-year operating earnings were $1.3 billion, flat with last year, as higher sales volumes for both phosphates and potash, combined with lower potash operating costs, were offset by lower realized potash prices. Full-year selling, general and administrative (SG&A) expenses were $382 million, including charges related to acquisitions and cost savings initiatives of $29 million, compared to $394 million in 2013. Net cash provided by operating activities was $2.3 billion and capital expenditures plus investments in Wa'ad Al Shamal Phosphate Company were $1.1 billion.

Business Highlights – Fourth Quarter 2014
    Mosaic completed a successful proving run at the Colonsay mine, which exceeded the expansion's design capacity by over 40 percent. As a result, Colonsay's peaking capacity increased from 1.8 to 2.5 million tonnes, and Mosaic's Canpotex entitlement percentage increased from approximately 38.8 to 40.6 percent beginning in January, 2015.

    The ongoing Esterhazy K3 expansion continues on time and on budget, with both shafts more than 1,700 feet below surface. During the quarter, Mosaic's Board of Directors approved the additional expansion of K3 to provide the option to transition ore production from Esterhazy's K1 and K2 shafts to an expanded K3 shaft.

    The Company completed integration of CF Industries' phosphates business.

    Mosaic completed the acquisition of Archer Daniels Midland's fertilizer distribution business in Brazil and Paraguay.

    The Company closed on the sale of Argentina assets, discontinued distribution operations in Chile, and ceased MOP production at the Carlsbad, New Mexico, potash mine.

    Mosaic set a new MicroEssentials® sales record for the fourth quarter and for 2014. Sales in North America grew 14 percent in 2014 over the prior year. The New Wales MicroEssentials® expansion continues on time and on budget.

    Mosaic set a new safety performance record for the full year 2014, improving on the prior year record performance by over eight percent.

    In the quarter, Mosaic repurchased 5.9 million shares at an average price of $44.12, resulting in a full year 2014 total of 59.1 million shares or $2.8 billion, at an average price of $46.83 per share. Since the beginning of 2015, the Company repurchased additional 1.7 million in shares.



The Andersons, Inc. Reports Fourth Quarter & Full Year Results

The Andersons, Inc. (Nasdaq: ANDE) today announces financial results for the fourth quarter and full year ended December 31, 2014.

Highlights
-    Record full-year earnings of $3.84 per diluted share, unadjusted.
-    The Ethanol Group delivered full-year operating income of $92.3 million, far exceeding its prior best year of $50.6 million in 2013.
-    Continued growth in the fourth quarter highlighted by the acquisition of Auburn Bean & Grain.

"We are pleased with our results in 2014.  The company's earnings this year have clearly been led by the exceptionally strong performance of our ethanol business in a very supportive market," said CEO Mike Anderson.  "After excluding the one-time pre-tax gain of $17.1 million from the partial redemption of our investment in Lansing Trade Group, our full year adjusted results of $3.46 per share were the highest in the company's history.  The company will begin to report adjusted earnings in the future, as we do for the first time below.   

"During the quarter we continued to grow.  This is highlighted by the purchase of Auburn Bean & Grain (AB&G), which added six grain and four agronomy locations throughout central Michigan and serves as a nice geographic fit between our other Michigan assets and our Thompsons joint venture in Ontario," added Mr. Anderson. "The integration of AB&G is proceeding well, and its locations were additive to income in the fourth quarter.  AB&G added grain storage capacity of about 18.1 million bushels, and 16,000 tons of dry and 3.7 million gallons of liquid nutrient capacity."

Financial and Operating Highlights
Net income for 2014 attributable to the company was a record $109.7 million, or $3.84 per diluted share, on revenues of $4.5 billion.  Last year earnings were $89.9 million, or $3.18 per diluted share on revenues of $5.6 billion.  Full-year 2014 adjusted earnings were $99.1 million, or $3.46 per diluted share, when the Lansing Trade Group gain was excluded.  (See the Reconciliation to Adjusted Net Income Table for a discussion and reconciliation of income and adjusted income.)

The company earned $25.9 million in the fourth quarter of 2014, or $0.89 per diluted share, on revenues of $1.3 billion.  In the same three month period of 2013, the company reported net income of $30.7 million, or $1.08 per diluted share, on revenues of $1.6 billion.   

    Revenues were down this year within the company's agricultural businesses due to lower commodity prices. The majority of the decrease was within the Grain Group where the average price per bushel sold decreased by 28 percent, which more than offset the slight increase in bushels sold.

    The harvest was protracted in a number of states in which the company does business, primarily due to weather conditions.

    The ethanol plants benefitted from operational improvements made the past three years, with records being achieved for ethanol production, ethanol yields, and corn oil yields.

    The Ethanol Group realized solid margins in 2014, however, fourth quarter margins were lower than the same period of the prior year.

    The Andersons received $89.5 million in net cash distributions from its non-consolidated ethanol investments in 2014.

    The distillers dried grain market, which was negatively impacted by a decline in the Chinese import market in the third quarter, rebounded late in the fourth quarter and it is again selling at levels significantly above 100 percent of corn value.

    Fourth quarter volume for the Plant Nutrient Group was down approximately 19 percent due to a late harvest and poor weather conditions.

    The Rail Group's income was down in 2014 due primarily to gains on railcar sales declining by $3.6 million, one-time gains in 2013 of $4.3 million from legal settlements, and an increase in freight and maintenance expense to move idle railcars into service, the benefits of which will be seen in future periods.

    The Rail Group's utilization rate has increased for eight consecutive quarters and ended the year at 91.0 percent.

2015 Outlook
There are solid fundamentals supporting the company's core businesses going into 2015, although results will likely be below 2014 records, in part because the $17.1 million dollar pre-tax gain on the partial sale of Lansing Trade Group will not be repeated.

    Corn acres to be planted in 2015 are estimated to be 88 to 89 million acres, which is down 2 to 3 percent from 2014. Bean acres to be planted are estimated to be roughly 85 million acres, which is very similar to or slightly higher than 2014. Assuming trend yields, this should create a good base for the company's grain business in 2015. Further, continued strong performance from the Grain Group's equity investments is anticipated.

    Early 2015 ethanol margins are well below 2014 margins, and are expected to average lower for the full year. Factors impacting current margins include lower crude price, greater ethanol production and marginally rising ethanol stocks. On a positive note, higher gasoline demand, improved demand and prices for distillers dried grains in relation to corn price, an ample corn supply, and the potential for improved export demand as the year progresses could contribute to improved ethanol margins later in the year.

    The anticipated acres to be planted creates a good environment for the Plant Nutrient Group to participate in as well. Additionally, if there is normal spring weather some of the volume lost in the fourth quarter of 2014 is expected to be regained in the first half of 2015.

    The Rail Group is expected to have improved financial results as it will benefit from increased lease and utilization rates.



The Andersons Grain Group President Announces Retirement

The Andersons, Inc. (Nasdaq: ANDE) announces today that Grain Group President Dennis J. (Denny) Addis has announced his plans to retire in May. At that time, Neill C. McKinstray, President of the Ethanol Group, will assume leadership over both groups.

"Denny has a stellar 43-year record with The Andersons and during his tenure has exhibited faithful service and exceptional leadership," says Hal Reed, Chief Operating Officer. "He was at the helm of many of the largest acquisitions in the company's history and during his three years in Grain guided his team through a severe drought and several acquisitions. His greatest impact to the company was championing a new safety philosophy that set a new direction and led to significant safety improvements across the organization."

Addis began his career with the company in 1971 bagging fertilizer and loading trucks as a part-time employee while a student at the University of Toledo. He spent all but three of his 43 years in the Plant Nutrient Group, ultimately serving as the group's president for 11 years. He has served as the president of the Grain Group since 2012.

McKinstray is a 39-year veteran with The Andersons, including more than 30 years working at increasing levels of responsibility in the Grain Group. In 2011 he was named as President of the newly-formed Ethanol Group, which he has led with great success.



Radar Sensor Header Height Control announced by Headsight, Inc.

Headsight, Inc., an industry leader in header height control solutions, announces their newest product, Terrahawk™, the first of its kind in radar height control, a fully non-contact solution.

Non-contact sensors for header height control have been highly sought after in the ag industry for years.  Engineers have experimented with sonar, and even radar, but obstacles of crops and terrain characteristics have literally stood in the way.

"I am very excited about Terrahawk," said Rich Gramm, President of Headsight, Inc. "Our team has been working on non-contact sensors since 2009. With the Terrahawk technology downed crops and challenging terrain will no longer be a problem.  This Radar product will be a leader in the next phase of harvesting technology."

The Terrahawk radar height control system is the most advanced header height control in the market.  There are no moving parts, eliminating sensor wear.  The height range has been increased, and because there is no sensor touching the ground, it doesn't push crop, so there are no cables, chains or straps needed for backing up.

The sensor itself is compact, allowing for increased flexibility in more forward mounting while allowing the operator to increase harvesting speed, even in rough terrain.

Rob Schlipf, Director of Engineering at Headsight, said, "This breakthrough represents the future of header height control, in that it allows the performance, efficiency and reliability that customers expect.  Terrahawk offers a clear advantage to our customers in satisfying a need in the market."

The Terrahawk radar height control system will be available in limited quantities for the 2015 harvest season.



PETA Killed 88 Percent of Dogs and Cats in its Possession in 2014

Today, the Center for Consumer Freedom (CCF) released its yearly review of the appalling euthanasia record of People for the Ethical Treatment of Animals (PETA). In 2014 alone, PETA killed 2,324 cats and dogs, an average of more than 6 per day and an increase of roughly 30 percent from 2013. This represents 88 percent of all pets PETA took into its shelter throughout the year. Since 1998, 33,514 animals have died at the hands of PETA.

Communities in the Eastern Shore of Virginia recently took to the streets to protest PETA after a PETA worker allegedly abducted a family’s dog named Maya, killed it, and returned to the owner with a fruit basket as compensation. Now the Virginia legislature is taking action to close PETA’s charnel house, considering legislation to define an animal shelter as “a facility operated for the purpose of finding permanent adoptive homes and facilitating other lifesaving outcomes for animals.” PETA’s facility surely doesn't qualify: Only 1.5 percent of dogs and cats left from PETA’s “shelter” for a forever home.

Will Coggin, director of research at CCF, said PETA takes hypocrisy to a whole new level.

“This delusional animal rights group is talking out of both sides of its mouth – on one side preaching animal rights, while on the other signing a death warrant for 88 percent of cats and dogs in its care. PETA should be called a slaughterhouse, not an animal shelter.”

Despite its $47 million budget, PETA fails to find homes for the van loads of animals it kills. PETA President Ingrid Newkirk previously indicated to The Virginian-Pilot that the animal rights group could stop killing pets. Of course, it would mean cutting down on press stunts and celebrity photo shoots: “We could become a no-kill shelter immediately. It means we wouldn't do as much work.”

PETA’s kill numbers come from the Virginia Department of Agriculture and Consumer Services (VDACS), which requires such annual disclosures to be made. Most animals don’t even get a chance: A 2010 inspection conducted by a VDACS veterinarian of animal custody records discovered that 84 percent of the animals PETA took in were killed within 24 hours.

Coggin concluded, “PETA’s so-called ‘shelter’ might as well be called a slaughterhouse. For an organization that once disgustingly compared the treatment of farm animals to the Holocaust, you’d think PETA would avoid the appearance of systematic killing. It’s time Virginia stopped the madness and shuttered PETA’s shelter of horrors for good.”