Wednesday February 25 Ag News

Fortenberry Introduces Farm to School Act

Congressman Jeff Fortenberry (R-NE) today joined Congresswoman Marcia Fudge (D-OH) to introduce the Farm to School Act to expand and strengthen the United States Department of Agriculture (USDA) Farm to School Grant program. Senators Thad Cochran (R-MS) and Patrick Leahy (D-VT) introduced companion legislation in the U.S. Senate.

“Schools throughout Nebraska and across the U.S. are eagerly embracing local foods from local farms,” Fortenberry said. “More than 10,000 schools participate in Farm to School programs and we can incentivize this important trend. The Farm to School Act creates a win-win-win for schools, students and area farmers. Schools have more options to purchase fresh food, students receive nutritious meal choices, and farmers and ranchers are given new market opportunities.”

The Farm to School Act promotes the use of fresh, locally produced foods in schools. The legislation will expand the existing USDA Farm to School Grant program to include preschools and summer and after school programs. Tribal schools will also see increased access to foods from tribal producers.   

In the 2008 Farm Bill, Fortenberry sponsored language allowing optional geographic preference in sourcing local foods for school nutrition programs and helped improve USDA’s Farm to School initiative.

Fortenberry is a member of the House Appropriations Committee. He is a former chairman of the House Agriculture Subcommittee on Department Operations, Oversight, and Credit.  



Policy to be Focus at Commodity Classic

With Commodity Classic Grand Opening in Phoenix only one day away, the National Corn Growers Association invites attendees to dig a little deeper at three association-sponsored Learning Centers and one What's New Session. Highlighting some of NCGA's hottest programs and offering valuable advice for farmers, these opportunities offer a unique chance to get ahead of the curve and support the overall industry.

The first session, "Finding CommonGround," kicks off Friday at 12:30 pm. CommonGround volunteers Sara Ross and Joan Ruskamp will show attendees how CommonGround, a grassroots movement of farm women who want to foster conversations between the women who grow and raise food and those who buy it. Using the power of their personal experiences, Ross and Ruskamp will explain how farm women across the country are sharing their experiences and helping consumers feel confident about American ag today. The session will also feature an interactive component that will allow all attendees to work in groups and put the CommonGround approach to consumer conversations in action.

At 1:45 that afternoon, "Helping Farmers Take Political Action" will explore how farmers can make their voices heard in the media, state capitol and in Washington to protect your way of life and defend your ability to produce food, feed, fiber and fuel for the world. The public respects the American farmer and trusts farmers over many of the opponents we face. However, agriculture can only use that tremendous advantage if farmers use their voices. Join nationally-renowned grassroots influence expert and author Amy Showalter to be motivated to become involved through a greater understanding on how powerful and important your voice as a farmer is with media and lawmakers.

At 3:00 pm, join The Soil Health Partnership for "Farmers of the Soil Health Partnership - A Panel to Discuss Soil Health Contributions to Productivity, Profitability and Sustainability." Demonstration network farmers will discuss what they've learned, experienced and shared while hosting farmer-to-farmer field days within their communities, The session will begin with a  review of the current program goals and first year focus geography and benchmark data collected from Illinois, Indiana, Iowa, Nebraska, Ohio and Wisconsin. This panel boasts a diverse set of agronomic skills and experiences that will help grower attendees around the country improve their operations. They will share their thoughts on soil health, experiences with conservation cropping system practices and give advice to those interested in adopting cover crops, prescription nutrient management and other soil health practices.

Finally, at 3:30 pm, NCGA, National Association of Wheat Growers, American Soybean Association and American Farm Bureau Federation, present a What's New Session titled "Learn About New Guidelines to Help Protect Your Farm's Data." Every farmer's data is a valuable asset that can help increase productivity, but do they know who can assess it or how it is being used? Leaders from major farm organizations will explain the new Privacy and Security Principles for Farm Data to outline what should be included in any data agreement a farmer signs.



 NFU Voices Strong Opposition to Fast Track, Says Trade Deals Should Be Transparent

National Farmers Union (NFU) President Roger Johnson urged members of Congress to oppose trade promotion authority – also known as fast track – noting that trade agreements should be fair to all parties involved, and the process should be transparent.

“Trade promotion authority (“fast track”) would remove an important constitutional check on the president’s power to negotiate trade agreements,” noted Johnson in a letter sent to all members of Congress today. “Trade agreements must be fair for all parties involved and should therefore be subjected to review by the Congress – not conducted secretly.”

Johnson reminded members of Congress that the Trans-Pacific Partnership (TPP) was negotiated behind closed doors with little input from the public or Congress. “Congress should have full opportunity to review the provisions of a trade agreement, consistent with the authority and power endowed by the U.S. Constitution,” he said. “The lack of transparency in negotiating TPP is particularly egregious, considering its expansive scope.”

Johnson pointed out that past trade agreements have served to increase, not decrease, the trade deficit. “For 30 years and after several free trade agreements, including the North American Free Trade Agreement and the U.S.-Korea Trade Agreement, the U.S. has grown a significant trade deficit,” he said.

Last year, the trade deficit increased to $505 billion, representing nearly 3 percent of GDP and slowing growth, Johnson noted. He said that while the positive trade balance of U.S. agriculture trade is good news, “it is massively overshadowed by the alarming overall U.S. trade deficit.”

Johnson pointed out that a major factor impacting the trade deficit is currency manipulation. “Several countries involved in the TPP negotiations are known currency manipulators including Malaysia, Singapore, and Japan,” he said. “According to recent reports, the U.S.-Japan trade deficit reached nearly $80 billion in 2013, and currency manipulation was the most significant cause of the deficit.”

“The Economic Policy Institute estimates that this trade deficit with Japan resulted in 896,600 jobs eliminated in the U.S, in nearly every congressional district. Future trade agreements, including TPP, should directly address currency manipulation and include binding consequences for those that continue to manipulate currency,” he said.



Land O’Lakes, Inc. Reports Financial Results for Year-end and Fourth Quarter 2014

Land O'Lakes, Inc. today announced 2014 business results that included net earnings of $266 million on record sales of $15 billion and a record $184 million in cash returned to members. These results were driven by continued growth in key areas of the company’s core business units: Crop Inputs, Dairy Foods and Feed.

“Our 2014 results reflect record annual revenues, continuing nearly a decade of consistent growth and increasing returns for our member-owners,” said Chris Policinski, president and CEO of Land O’Lakes, Inc. “Our continuing strong performance, together with our value-added, branded focus in businesses which extend from the farm to market – Winfield crop inputs, Purina animal feed and Land O’Lakes consumer foods – positions us to successfully compete in a growing food and agriculture marketplace. From international partnerships to innovative products and services designed to improve on-farm productivity, we’re leveraging our broad portfolio and perspectives to help farmers more productively and sustainably feed the world.”

YEAR END DETAILS
Net earnings were $266 million, down from $306 million the previous year. These results reflect $18 million in pretax restructure and impairment charges related to a facility closure in Denmark, Wisconsin, and other organizational restructuring. Pretax earnings on continuing operations before unrealized hedging and rebate adjustments, which are used to determine member patronage, were up 11.6 percent to a record $308 million compared to the previous year.

Cash returned to members of $184 million represents a 25 percent increase compared to the previous year. This is the sixth consecutive year cash returned to members has exceeded $100 million, bringing the nine-year total to more than $1 billion.

FOURTH QUARTER RESULTS
For the quarter ended Dec. 31, 2014, Land O’Lakes, Inc. delivered net earnings of $38.3 million on quarterly revenues of $3.5 billion, a slight increase in year-over-year revenues. Fourth quarter earnings reflected the downward pressure exerted on the global dairy markets.

BUSINESS SEGMENTS
· Crop Inputs reported sales of $4.9 billion, up from the previous year. Pretax earnings totaled $220 million, up $2 million compared to the previous year. These results continue a multi-year trend of growth, driven by the market strength of the WinField brand and successful pursuit of new opportunities in rapidly growing agribusiness segments that focus on productivity, sustainability and new technologies in precision agriculture. Corn volumes were down 3 percent as planted acres decreased due to declines in corn prices. Soybean volumes increased 24 percent in 2014 compared to the previous year. Alfalfa volumes increased 1 percent year over year.

· Dairy Foods reported sales of $5.1 billion, a 13.3 percent increase year-over-year. Pretax earnings for Dairy Foods totaled $40 million, down from $75 million in 2013. Dairy Foods earnings reflect a one-time charge associated with the closure of the Denmark, Wisconsin, dairy facility and a sharp devaluation in global dairy powder markets. Dairy Foods results were driven by strong volumes, particularly in the butter, refrigerated desserts and food service categories. Branded butter volumes increased 9 percent in 2014 compared to the previous year, reflecting the strength of the
LAND O LAKES brand in the resurging butter segment. Kozy Shack refrigerated desserts volumes were up 6 percent.

· Feed reported sales of $4.7 billion, down slightly from $4.8 billion in 2013. Pretax earnings of $27.8 million increased 58 percent compared to the previous year. These results were driven by increased demand for products in the core livestock and lifestyle segments and the successful marketing of the Purina Animal Nutrition Center, located in Gray Summit, Missouri. Livestock feed sales increased 6 percent and Lifestyle product sales increased 2 percent year-over-year. In its first full year of operation, the new Purina Animal Nutrition Center generated $5MM of incremental gross margin, more than triple the gross margin generated in 2012, the last full year prior to the remodeling investment.

During 2014, Land O'Lakes continued to implement previously announced plans to divest of its commodity egg business, operated through Moark, LLC. During the year, the company sold substantially all of the Western and Midwestern assets of this business for $166 million, a profit of $6 million. Land O’Lakes, Inc. continues to evaluate options with respect to the remaining commodity egg assets in the Eastern United States.



EIA: Ethanol Stocks Soar; Output Down

Ethanol inventories in the United States soared to a near three-year high last week while domestic production and blending demand both eased, according to data released Wednesday, Feb. 25, by the Energy Information Administration.

Total ethanol stocks jumped nearly 500,000 barrels (bbl), or 2.0%, to 21.6 million bbl during the week-ended Feb. 20, the highest level since the week-ended Apr. 27, 2012. Supplies were up 4.6 million bbl, or 26.8%, from a year earlier.

Regionally, stock builds were reported along the major trade hubs in the East and West Coast plus the key Midwest.

Plant production slumped 18,000 barrels per day (bpd), or 2.0%, last week to 947,000 bpd while up 4.5% year-over-year with four-week average output up 6.0%.

Blender inputs, a proxy for ethanol demand, fell 7,000 bpd, or 0.8%, to 845,000 bpd, while up 10,000 bpd or 1.2% on a year-over-year basis. Four-week average inputs were up 2.8%.

EIA also reported implied demand for motor gasoline increased 106,000 bpd to 8.915 million bpd, 4.5% higher than the same week last year.



2015 NFU College Conference on Cooperatives a Success

More than 150 attendees from 25 states and Puerto Rico participated in the 2015 National Farmers Union (NFU) College Conference on Cooperatives in Minneapolis, Minnesota, over the weekend. The participants learned how cooperative businesses are adapting to changing environments and heard from cooperative experts from across the nation on why member-owned businesses are thriving in industries ranging from senior housing to healthcare.

“This is an opportunity for the cooperative community to teach young people about cooperative business principles and to show them that there are great careers in these dynamic, ethical and community-minded businesses,” said NFU President Roger Johnson.

To bring cooperative education to life, students toured housing, retail, and marketing cooperatives in Minneapolis and St. Paul. They also visited the headquarters of CHS Inc., the nation’s largest agricultural cooperative, and the Mill City Museum, built into the ruins of what was once the world’s largest flour mill. Students heard from cooperative leaders, farmers and government experts who explained current challenges they face.

Presenters ranged from members, directors, employees and managers of traditional and value-added agricultural cooperatives to representatives of housing and worker-owned co-ops, as well as consumer cooperatives such as REI and natural foods co-ops. These professionals offered insights on cooperative development here and abroad.

“Farmers Union remains true to its roots of both being an advocate for cooperative businesses and offering education programs,” said Johnson. “Our own history is very closely tied with the cooperative movement. Cooperatives were made possible by legislative activity and organized by farmers and ranchers to strengthen the economic opportunities in rural and urban communities. Farmers Union has a strong commitment to providing cooperative education not only to our own members, but also to the general public, and especially to young people, many of whom are just learning about the cooperative way of doing business.”

The conference was organized by National Farmers Union and sponsored by the CHS Foundation, CoBank, Farmers Union Industries Foundation, NFU Foundation, The Cooperative Foundation, CHS Inc., Minnesota Cooperative Education Foundation, Federated Youth Foundation and Organic Valley.   


    
Brazilian Truck Strike Threatens Food, Fuel Supplies

Truck drivers protesting high fuel prices for a seventh day on Tuesday interrupted supplies of diesel and raw materials across Brazil's farm belt and threatened to hold up grains exports at ports in the midst of a record harvest. The strike started as an isolated protest but has now spread to at least 10 states, reports Reuters.

President Dilma Rousseff has called an emergency meeting for Tuesday to seek ways to defuse the demonstrations before they hurt exports.

Brazil, a farming powerhouse that relies heavily on commodities exports, is weathering an economic downturn, which has been exacerbated by weaker global prices for crops such as soybeans, corn and sugar. On Monday, traders said soy exports were offered at a discount to attract buyers wary of long delays in ship loading.

The strike has led to a shortage of diesel fuel in parts of Brazil's bountiful center-west grains belt. Some farmers have temporarily halted soybean harvesting machinery.

Paranagua, Brazil's No. 2 port, said it had sufficient grain stocks to fill ships now loading, but worried a sharp drop in soy arriving by truck would disrupt the normal flow of vessels if the protest continued.



Ukraine Grain Exports Remain High

Ukraine grain exports remain high despite government's efforts to impose limits to ensure there's sufficient supply for the domestic market, the agriculture ministry said Wednesday.

Ukraine has exported 24.0 million metric tons of grain since the marketing year began July 1, through Feb. 24, compared with 23.9 million tons on the same date last year, the ministry said.

Ukraine has exported 9.1 million tons of wheat, 3.9 million tons of barley and 10.8 million tons of corn.

Ukrainian grain traders have agreed to limit milling wheat exports to 1.2 million tons between Jan. 1 and the end of the current marketing year June 30. As a result, the ministry expects a decline in the pace of grain exports in the coming months.

The agriculture ministry said earlier that Ukraine's grain harvest in 2014 increased to over 64 million tons from 63 million tons in 2013, despite the loss of Crimea Peninsula and military conflict in the south-east of the country.



Reducing Food Waste Could Save the Global Economy $300 Billion a Year

Reducing consumer food waste could save between US$120 and 300 billion per year by 2030 according to a new report by WRAP (The Waste & Resources Action Programme) and the Global Commission on the Economy and Climate. To achieve this would require a 20-50% reduction in consumer food waste.

One third of all food produced in the world ends up as waste, while the value of global consumer food waste is more than US$400 billion per year. As the global middle class expands over the course of the decade, the cost could rise to US$600 billion, according to new research conducted by WRAP for the Global Commission.

Their report, Strategies to achieve economic and environmental gains by reducing food waste, also identifies significant opportunities to improve economic performance and tackle climate change by reducing the amount of food that is wasted in agriculture, transport, storage and consumption.

Dr Richard Swannell, Director of Sustainable Food Systems at WRAP said: “Food waste is a global issue and tackling it is a priority. This report emphasises the benefits that can be obtained for businesses, consumers and the environment. The difficulty is often in knowing where to start and how to make the biggest economic and environmental savings. In partnership with UNEP and FAO, WRAP produced international guidance on how to achieve that through implementing effective food waste prevention strategies that can be used across the world.

“Consumers also have a role to play. In the United Kingdom, where we are based, the majority of food waste occurs in the home. Through our consumer campaign Love Food Hate Waste we empower consumers with advice and tips on how to waste less and save more. Between 2007 and 2012, this helped householders reduce avoidable food waste by 21%, saving a total of £13 billion.”

Reducing food waste can also make a significant contribution to tackling climate change. An astonishing 7% of all global greenhouse gas emissions (GHGs), or 3.3 billion tonnes CO2 equivalent (CO2eq) per year, are due to food waste.

WRAP estimates that by 2030 global GHGs could be lowered by at least 0.2 and possibly as much as 1 billion tonnes CO2eq per year through food waste reductions, more than the annual emissions of Germany. When food waste is decreased, this makes it more likely that an increasing population can potentially be fed from the same amount of land.

Helen Mountford, Global Programme Director for the New Climate Economy, said: “Reducing food waste is good for the economy and good for the climate. Less food waste means greater efficiency, more productivity, and direct savings for consumers. It also means more food available to feed the estimated 805 million that go to bed hungry each day. Reducing food waste is also a great way to reduce the greenhouse gas emissions that contribute to climate change. These findings should serve as a wakeup call to policymakers around the world.”

The report highlights how practical changes, such as lowering the average temperatures of refrigerators or designing better packaging, can make a considerable difference in preventing spoilage. Approximately 25% of food waste in the developing world could be eliminated with better refrigeration equipment.

WRAP’s findings contributed to Better Growth, Better Climate: The New Climate Economy Report. This report, released in 2014 by the Global Commission on the Economy and Climate, demonstrates how countries can achieve economic growth while dealing with the risks posed by climate change. The report highlighted how reforms in urban development, land use and energy policy would lead to sustained growth in a low-carbon economy.



BASF focuses on the promise of a sustainable future in crop protection
2015 marks the 150th anniversary of BASF and BASF Crop Protection kicked off the anniversary year in the U.S. with the 9th annual media symposium, the Science Behind the Right Chemistry, at Commodity Classic in Phoenix, Arizona.

The company, which was founded in 1865 as Badische Anilin- und Soda-Fabrik in Ludwigshafen, Germany, has played a key role in turning family farms into the modern operations they are today.

From developing ammonia synthesis processes to obtaining the industry’s first Plant Health label, BASF is a leader in providing innovative solutions to growers.

“Conscientious care toward the environment and society are two of the reasons for our long-term success,” said Paul Rea, Senior Vice President, Crop Protection, North America, BASF. “Sustainability is a core value that has supported our growth since 1865 into the world’s largest chemical company, and will take us into the next 150 years.” 

Innovative Solutions for Agriculture
From 2015 to 2019, BASF Crop Protection plans to introduce 45 new products to help growers increase yield potential and grow healthier, more abundant crops. More than $1.5 million is invested daily into research and development to make those introductions possible. These new products will be part of a robust portfolio of industry-leading products that includes Priaxor® fungicide, Xanthion™ In-furrow fungicide, Limus® nitrogen management, Kixor® herbicide technology, and Engenia™ herbicide, which will be BASF’s most advanced formulation of dicamba. Engenia herbicide is expected to receive U.S. Environmental Protection Agency (EPA) registration this year.

“The innovations from BASF help our customers meet these challenges, and continually improve sustainability,” Rea said. “Our goal is to be there alongside our customers today, tomorrow and 150 years from now.”



Next Class Products To Deliver Top Performance For Asgrow® And Dekalb® Brands In 2016

Farmers can count on strong yield potential in 2016 with the robust lineup of new Asgrow® and DEKALB® brand products. The high-performing products demonstrate the latest advances from the industry’s leading breeding program. Farmers will have the opportunity to protect their investment through leading traits and the best in plant health with the 2016 Next Class.

2016 Asgrow Next Class Products Offer Best Defensive Traits
The Asgrow brand’s lineup of Next Class products includes strong genetics and reliable technology, such as Genuity® Roundup Ready 2 Yield®.  All Asgrow products are developed and tested in a broad, diverse network of breeding stations across the country where Asgrow breeders work to provide solutions to farmers in various agronomic situations. With a comprehensive package of agronomic traits, Next Class products offer high yield potential and protection against yield-robbing pests. Featuring exclusive and diverse genetics, the Next Class offers the best in the industry with new and reliable products.

Building on the trusted Genuity® Roundup Ready 2 Yield® technology, Next Class products plan to feature the highly anticipated Roundup Ready 2 Xtend™ soybeans pending necessary regulatory approvals. As part of the largest biotech trait launch in Monsanto history, the Next Class products that contain the Roundup Ready 2 Xtend™ soybean trait will offer tolerance to dicamba and glyphosate herbicides providing farmers more weed management options and increased application flexibility.

 “For the last 40 years, Asgrow has led soybean breeding innovation and is dedicated to bringing farmers more advanced products and agronomic solutions,” said Mike Bachman, Monsanto Soybean Product Development Manager. “Our products are the best-of-the-best from the Asgrow brand’s elite breeding program.”

DEKALB Next Class Product Lineup Innovates in 2016
The DEKALB brand’s 2016 Next Class lineup includes 23 top products. In today’s economy, it’s more important than ever for consistent high-yielding results that give farmers confidence in their products to help outlast the toughest conditions. With DEKALB Next Class products, farmers can expect the highest yield potential, improved crop protection and plant health with greater resistance from diseases and environmental stressors. Through advanced breeding practices, new products are created by tapping an expansive foundation of germplasm that pulls genetics from more than 30 countries. Breeders are then able to work with the best genetic ingredients which allow them to provide top products and solutions to farmers that are tailored to each unique location to optimize individual performance.

“The products in our portfolio today are a sample of the pipeline ahead, with more traits and products designed to optimize yield against stress, disease and environmental conditions,” said Matt Rowland, DEKALB Product Development Manager. “Our commitment to providing new and improved DEKALB products every year keeps us looking ahead beyond tomorrow to the fields of 2020 and 2030.”