Wednesday February 18 Ag News

Despite Tornado, Farmers Coop - Pilger Has A Good Year

The annual shareholders meeting of Farmers Co-operative (Pilger-Stanton-Winside) was held on Tuesday afternoon at the American Legion in Norfolk.  General Manager Aaron Becker presented the financials to those in attendance.  He says the 2014 tornado certainly made things difficult for the cooperative, but not impossible. 

The coop lost about 1.2-million dollars of inventory in last June's storm, plus damage to facilities and equipment.  However, sales for the year came in just under 52.9-million dollars, up 24.5 percent from 2013.  Gross Revenue for the coop totaled 4.3-million dollars, compared to 3.7-million dollars the year prior. 

Becker says despite the difficulty over the past eight months, the Farmers Coop Board decided to distribute patronage back to members and customers.  Roughly 35-percent of the allocated total, or about 196-thousand dollars, will be returned to patrons in cash dividends.  The remaining 364-thousand was declared deferred patronage. 

As far as the Pilger rebuild is concerned, Becker says they have completed just over a million bushels of grain storage, and the work will start soon on the fertilizer shed and chemical storage.  He says the topic of the gas station and convenience store has been studied by management and the Board, and it is the decision of the Board, at this time, not to rebuild the store or gas pumps.  He says the economics just don't support it right now, but that could change in the future.  Becker also says once the projects are complete in Pilger, some much needed attention can be given to the facilities in Winside. 

Before the annual meeting was adjourned, election of Board members took place.  Both Reggie Gnirk of Hoskins and VerNeal Marotz of Winside were re-elected to the Board.  Officers of the Coop are currently Chairman Bob Schellpeper of Stanton, Vice-Chairman Josh Alexander of Pilger, and Secretary David Claus of Pilger.  Other Directors are Leon Hussmann and Dan Jaeger.  Associate Directors are Skip Deck, Joe Sateren, and Scott Marotz. 



Cuming farmer directs funds to local booster club

The West Point Central Catholic Booster Club has received a $2,500 donation from Cuming County farmer Patrick Knievel and America’s Farmers Grow Communities, sponsored by the Monsanto Fund. The donation will help the organization purchase a new wireless scoreboard for the gymnasium at Guardian Angels Central Catholic, to utilize at all indoor sporting events for the junior high and high school.

“The booster club decided the new scoreboard would be the most beneficial use for the funds, as it will be utilized during all home games.”

For five years, America’s Farmers Grow Communities has collaborated with farmers to donate over $16.5 million to over 7,300 community organizations across rural America. This year winning farmers will direct another $3.3 million to nonprofits to help fight rural hunger, purchase life saving fire and EMS equipment, support ag youth leadership programs, buy much needed classroom resources, and so much more.

America’s Farmers Grow Communities is part of the America’s Farmers initiative. Since 2010, the America’s Farmers campaign and programs have advocated on behalf of farmers and their efforts to meet society’s needs through agriculture. Today, consumers are more interested than ever in agriculture and how food is grown. Consider joining the conversation and helping to raise awareness about agriculture. Learn more at FoodDialogues.com.

A sister program in the America’s Farmers effort, Grow Rural Education, is currently in its farmer nomination phase. Farmers interested in supporting math and science education in their communities should visit www.GrowRuralEducation.com from now through April 1 to learn how.



Washington County Cattlemen Meeting is March 2nd
The monthly meeting of the Washington County Cattlemen will be on Monday March 2nd at the Blair Marina in Blair, NE.  Social hour starts at 6pm, with the dinner at 7pm.  Following dinner will be a presentation by KTIC Farm Director Chad Moyer on the history of the Nebraska Rural Radio Association, and some of the most recent events and milestones of this one-of-a-kind group of cooperative radio stations owned by over 4,500 Nebraska farmers and ranchers.  For more information, contact Brain Lokkar in Arlington. 



Saunder County Corn Growers Annual Meeting is March 3rd

The annual meeting for the Saunders County Corn Growers is Tuesday, March 3rd, at the Vets Club in Wahoo.  6:30 pm Social Hour - 7:00 pm Dinner.   Our meeting will follow with a short agenda and then the guest speaker will be KTIC Station Manager Dwight Lane with a presentation about the Nebraska Rural Radio Association.   For more info, contact Dan Wesley at 402-480-3945. 



Nebraska Dairy Convention Slated for March 10

Information about the growth of dairy in Nebraska, transitioning the farm to the next generation and the 100th anniversary of National Dairy Council will headline the 2015 Nebraska Dairy Convention on Tuesday, March 10, at the Ramada Inn in Columbus, sponsored by the Nebraska State Dairy Association. It includes a trade show, the annual meetings of both the Nebraska State Dairy Association and the Nebraska Holstein Association, and various educational sessions.

Jerry Messer, a North Dakota dairy farmer who chairs the National Dairy Council, is the featured banquet speaker, where awards will also be presented.

Beginning at 8:30 a.m., the topic of growing the dairy industry in Nebraska will kick off the day. During lunch, Midwest Dairy Association will provide a checkoff update, and at 4 p.m., David Goehler of the University of Nebraska-Lincoln will address the topic of passing the farm to the next generation.

The trade show runs from 9:30 a.m. to 5:30 p.m., followed by a wine and cheese reception and banquet.

The Nebraska Holstein Association meets at 9:30 a.m. and the Nebraska State Dairy Association Annual Meeting takes place at 1 p.m.

The 2015 Nebraska Dairy Convention is free to all Nebraska dairy producers, families and guests.  Special room rates are available at the Ramada Inn at 402-564-1492  Questions about the convention can be directed to Rod Johnson, Nebraska State Dairy Association, at 402-261-5482 or rod@nebraskamilk.org.  Attendee and sponsorship registration forms are available at nebraskamilk.org. The deadline to register is March 2. 



CFRA urges a Return to Balanced Taxes in Nebraska

Today, the Nebraska Legislature’s Revenue Committee is hearing public testimony on LB 280 and LB 357 - two legislative proposals to make major changes to Nebraska’s tax system.

LB 280 is a bill sponsored by Senator Al Davis, which proposes to reduce property taxes for school funding purposes only, expand resources for schools, reduce reliance on property taxes through a local income tax for schools, and increase state aid to schools through a method that balances the interests of all Nebraska schools.

“As Nebraskans have heard for decades, the real tax debate in this state should be how to provide meaningful and sustainable property tax reform in a state where local governmental entities are too reliant upon property taxes,” said Jon Bailey, Director of the Rural Public Policy Program at the Center for Rural Affairs. “There now seems to be a consensus among the citizens, the Legislature, and the new administration that the time has come to provide meaningful and sustainable property tax reform.”

We believe LB 280 provides the opportunity for meaningful and sustainable property reductions, particularly in rural areas, Bailey added. However, the real question, and a serious question the Revenue committee must begin to answer must be how can Nebraska enact meaningful property tax reform and also avoid harmful cuts to schools and other key services?

According to Bailey’s testimony, these questions are particularly crucial for rural Nebraska. The vast majority of our state is property rich, but people poor – an increasingly smaller number of rural residents are paying the freight for our schools and our local government. Data show that residents in areas with high amounts of agricultural land pay more in combined income and property taxes than residents of areas with the least amount of agricultural land, both on a per-capita basis and as a share of income.

“For years, the Center for Rural Affairs has called for a balanced approach to funding schools and local governments,” Bailey continued. “A third from income taxes, a third from property taxes and a third from sales taxes - the three legged stool. The current extreme reliance on property taxes for schools and local governments shows how far that three legged stool is out of balance.”

That’s why the Center supports LB 280, because it is the only balanced tax plan before the Legislature, concluded Bailey. It is the only comprehensive tax plan that recognizes that property taxes and school funding drive each other, and the only comprehensive tax plan  proposes to significantly reform that connection.



Valmont Announces Fourth Quarter and Fiscal Year 2014 Results

Valmont Industries, Inc. (NYSE: VMI), a leading global provider of engineered products and services for infrastructure and mechanized irrigation equipment for agriculture, reported fourth quarter sales of $763.1 million compared with $827.9 million for the same period of 2013. Fourth quarter 2014 operating income was $66.3 million versus $100.7 million in 2013. Fourth quarter reported diluted earnings per share were $1.66 compared with $2.04 in 2013. Included in 2014 and 2013 fourth quarter earnings were $0.04 and ($0.62) respectively of items relating to Delta EMD. Without these items, diluted earnings per share were $1.62 in 2014 and $2.66 in 2013.

Irrigation Segment (19% of 4th Quarter Sales)
Sales of $152.2 million declined 21% from 2013, due to lower activity in North American markets. International results improved despite unfavorable currency translation effects.

Record North American 2014 crop production and larger carryover stocks pressured crop prices and farmer income. Farmers reduced their capital spending on irrigation equipment compared to 2013.

Long-term, meeting the food needs of a rising global population and improving diets requires agriculture to increase productivity. Competing demands on limited fresh water resources will require that agriculture use water more efficiently. In the short-term, despite the advantages provided by efficient irrigation products, and healthy farm balance sheets, typically, when crop commodity prices and farm incomes fall, farmers reduce spending on capital goods.

Operating income was 47% lower than last year at $16.6 million or 10.9% of segment sales compared to 16.5% in 2013. The decline in operating income was largely a consequence of reduced volume and related deleverage, which outpaced cost reductions taken during the period.

FY2014 Highlights
For fiscal 2014, sales were $3.1 billion versus $3.3 billion in 2013. Operating income for fiscal 2014 was $357.7 million versus $473.1 million in 2013. Valmont's fiscal year net earnings were $183.9 million, or $7.09 per diluted share, compared to 2013 net earnings of $278.5 million or $10.35 per diluted share. Before non-recurring items, 2014 diluted earnings per share were $8.17 compared with $10.97 in 2013.



CHS Coop returns $518 million to owners

Farmers, ranchers and cooperatives across the United States will share in an estimated $518 million cash distribution from CHS Inc. (NASDAQ: CHSCP), an energy, grains and foods company and the nation's leading agricultural co-op. The distribution is among the largest in CHS history and extends its record of significant cash returns to owners.

"The ability of our owners, who are also our customers, to directly share in the financial success of CHS is a distinct advantage of being part of a cooperative business," said David Bielenberg, CHS Board chairman and a Silverton, Ore., farmer. "And, this is cash that returns to local communities, enabling farmers, ranchers and cooperatives to invest in their own futures."

Bielenberg added that the CHS Board, which consists of 17 producers, strives to "take the long view" in regard to the company's future balancing significant investments in the company's future, direct cash returns to owners and a commitment to maintaining a strong balance sheet.

"It's about making sure that we're not only serving our owners and other customers with the products, services and marketing opportunities they need today, we're investing in what they'll need years and even decades from now," he said. "And we do it with an unwavering commitment to keeping CHS strong."

The 2015 cash return to owners is based on CHS net income of $1.1 billion, the company's second highest on record, for the fiscal year ending Aug. 31, 2014. Over the past six years, CHS has returned more than $2.6 billion in cash to its agricultural producer and member cooperative owners, an amount equal to that returned the over 33 fiscal years prior from 1977 through 2009.

Patronage is based on business done with CHS by member-owner cooperatives and individual farmers and ranchers during fiscal 2014, while equity redemptions and preferred stock distributions represent retirement of ownership in CHS earned in past years. Distributions by state include:
  - Iowa - 1,398 checks to members and patrons - $28.2 million total
  - Nebraska - 2,846 checks to members and patrons - $27.3 million total

The distribution beginning this month to about 1,100 member cooperatives and nearly 59,000 individual members and others includes cash patronage paid based on their fiscal 2014 business with CHS. CHS is also distributing cash to member cooperatives that redeems equity in the company they earned in prior years. In addition, CHS will redeem equities of eligible individual members throughout 2015 and also will pay quarterly dividends to owners of its five classes of CHS preferred stock.



Analysts See US Feeder-Cattle Placements Down in January

The number of young cattle in U.S. feedyards on Feb. 1 was predicted to be even with the number at the same time in 2014, according to a Wall Street Journal survey for Friday's federal cattle-on-feed report, reflecting the ripple effects of slower beef production down the supply chain.

The U.S. Department of Agriculture is scheduled to release the report at 2 p.m. CST.

The average of estimates from nine analysts for the number of cattle in commercial feedyards through the start of the year pegs the total at 10.755 million head, according to the average of the estimates. The estimates ranged from 0.6% below to 0.4% above the same time in 2014.

A tight available supply of market-ready cattle last year drove prices for available animals and beef products to all-time record highs, sending the signal to producers to rebuild herds that had been thinned after years of drought and industry consolidation. While this could produce more burgers and steaks for consumers in years to come, in the meantime, some producers have slowed the pace of light-weight or fully grown cattle in an effort to pack more pounds onto each animal.

The average of the estimates for the number of cattle placed into feedyards last month was about 1.751 million head, or 13.7% below the same period last year.

Projections for the total number of cattle that were marketed by feedyards in January to be processed for beef averaged 8.8% below last year, at 1.631 million head.



Zoetis Selects Grant Recipients for Porcine Epidemic Diarrhea Virus Research

Zoetis has awarded research grants to Suidae Health and Production and to Iowa State University to discover solutions that can help improve control of Porcine Epidemic Diarrhea virus (PEDv) in breeding and farrowing herds.

“We were interested in proposals that help discover novel approaches for optimizing the immune response of sows and gilts to help control PEDv,” said Steve Sornsen, DVM, MS, senior director, Veterinary Business Solutions, Zoetis. “We’re pleased to collaborate with well-experienced veterinarians representing academic and production interests. The outcome of these projects should provide insights into new PEDv control methods that can be incorporated into current production systems for the industry.”

The two proposals were selected by a cross-functional group of Zoetis colleagues among a group of eight finalists. Both projects are expected to be completed in 2015.

Suidae Health and Production, a swine veterinary practice with three locations across Iowa, Minnesota and Nebraska, will use its grant in the amount of $98,000 to study the efficacy of vaccination in boosting the immune response to PEDv in both naïve sows and previously exposed sows. Results will be compared to naïve sows that receive a placebo.

“I’m very excited to serve the swine community with research and development efforts to help control PEDv,” said Trevor Schwartz, DVM, Suidae Health and Production. “I’m thankful for Zoetis’ commitment to increasing the information available to veterinarians and producers.”

The $59,000 grant awarded to Iowa State University extends the partnership between school researchers and Zoetis on multiple projects related to PEDv management.

“Losses in breeding herds chronically affected by PEDv can be devastating,” said Derald Holtkamp, DVM, MS, Assistant Professor, Iowa State University. “The source of the problem in these chronically affected herds appears to be an imbalance between immunity passed onto the piglets and the viral load of PEDv in the environment.”

University researchers will measure the effectiveness of the conditionally licensed PED vaccine*  from Zoetis in helping to reduce PEDv incidence on chronically affected breeding farms by studying the effect of the killed vaccine on immunological parameters in terms of both sow and colostral immunity.

“Our goal is to then determine if we can measure and predict PEDv immunity and if that immunity improves productivity in a chronically affected breeding herd,” added Chris Rademacher, DVM, Swine Extension Veterinarian, Iowa State University.

Cases of PEDv have been confirmed in at least 33 states, and about 30% of farms report a reoccurrence within a year of an initial outbreak.1,2 After reaching 12-month lows for new cases of PEDv in mid-October, reports of new cases increased in December as colder weather moved in.

*This product license is conditional. Efficacy and potency studies are in progress.



Canada Says Cow With BSE Born Two Years After Regulations Toughened

(AP) -- Canada's food safety organization says a cow discovered on an Alberta farm with bovine spongiform encephalopathy was born two years after the government imposed a tougher ban on animal feed to guard against the disease.

The Canadian Food Inspection Agency said Wednesday the cow discovered earlier this month with BSE was born in March 2009. The cause is still under investigation.

Paul Mayers, a CFIA vice-president, says investigators are working to determine the source of the feed used at the birth farm in Alberta and assess any potential risk factors.

Mayers says the case has been reported to the World Organization for Animal Health and won't affect Canada's official beef trade status.

He says Canada expects its trading partners not to restrict market access to Canadian beef.

However, South Korea has already announced it is banning Canadian beef imports, renewing an eight-year ban it had just lifted in January 2012.



Syngenta Considers Counterclaims to Biotech Corn Lawsuits

Syngenta AG may file counterclaims against some of the more than 750 U.S. grain farmers and exporters who have sued the seed maker over sales of biotech corn seed that disrupted trading with China last year, regulatory documents show. Reuters reports that the company is "assessing the scope for potential counterclaims" in response to lawsuits over Agrisure Viptera corn, also known as MIR 162, according to a filing with the U.S. Securities and Exchange Commission.

A company spokesman declined to comment on Friday due to "active litigation." Last year, global grain handlers Cargill Inc and Archer Daniels Midland Co, along with hundreds of farmers, sued Syngenta for damages stemming from China's rejections of shipments of U.S. crops that contained Viptera corn.

At the time, the trait was approved for planting in the United States but not for import by China, a major corn buyer.

As of Jan. 28, 762 lawsuits had been filed, according to Syngenta's SEC filing on Thursday. The company says the claims are without merit, Reuters reports.

Farmers and exporters accuse Syngenta of misleading the farm industry about the timeline for import approval by China and blame the company for a decline in U.S. corn prices.



Ceres Introduces Forage Sorghum Hybrids for U.S. Feed Market

Ceres, Inc. today announced that its seed product offerings in the U.S. will include three new forage sorghum hybrids, following positive results from commercial evaluations last season as well as new university results released last week that highlighted a number of performance advantages, including the highest milk yield per acre, which is a key metric for dairy operations.

The company's expansion into the forage market is expected to bring innovative new products to growers and producers, including hybrids with higher yields, greater disease resistance and improved nutrition.

Walter Nelson, Ceres Vice President of Product Development, says that forage is a natural extension of the company's work in energy crop development. Since 2007, Ceres has made substantial investments in developing hybrids from new sources of breeding lines, including many from challenging growing environments, to increase biomass yields and optimize the conversion of plant material into energy.

"The forage market is highly complementary to our existing technology and hybrid development programs. Based on results from our pipeline, we believe we can substantially improve the nutritional quality and digestibility of forage sorghum," said Nelson.

Last season, the company's Blade brand hybrids performed well in large-scale evaluations with livestock and dairy producers, out-yielding current sorghum hybrids and comparing favorably to other forage crops, such as corn silage, which is planted for its high nutritional value.

Ceres' products also performed well in numerous multi-hybrid trials.  For example, the University of Florida reported that one of the company's forage sorghum hybrids, EJ 7281, was the highest yielding commercial hybrid in both their spring and summer trials in 2014. In spring trials, EJ 7281 yields were calculated at 43,000 pounds of milk per acre, or 40% higher than the nearest entry. Results from summer plantings released last week by the university showed milk yields per acre approximately 20% higher than other commercially planted hybrids.  The company's Blade brand hybrids also scored well for standability and plant health.

Ceres is currently accepting seed bookings for its Blade brand hybrids EJ 7281, EJ 7282 and DS 7853 for spring and summer plantings. Blade forage hybrids automatically include common seed treatment for no additional charge. The company will also be testing pre-commercial products with dairies and livestock producers.

"Improved sorghum can be a particularly attractive crop for livestock producers in water-deficit geographies as well as producers facing high input costs for feed," said Ceres Sales Agronomist Bud Wylie. "We believe that we have a pipeline of products that can fill this role."

In addition to its direct sales efforts, Ceres has completed a distribution agreement with Helena Chemical Company, a leading distributor of crop protection and crop production inputs and services with more than 450 locations in the U.S. Helena will provide sales and customer support for the company's forage sorghum in the southeastern U.S. "Helena approached us last season after seeing how well our hybrids performed, and we believe their local staff and resources will be a helpful complement to our own activities," said Wylie. "We are pleased to be working with such a well-regarded supplier."