Monday April 6 Ag News

Considerations for Pasture Leases
Allan Vyhnalek, UNL Extension Educator

It is appropriate to review typical lease arrangements for pastures from time to time.  With more education in the area of leases, the more it is realized that each "neighborhood" has a different set of rules for leasing. Provisions mentioned here are normal for the common lease.

The length of the pasture lease is typically five months, often starting May 15 and ending October 15. West of Highway 14, leases tend to start later, running from June 1 to November 1.

Setting Lease Terms
Lease terms either ask for rent to be paid by the acre or by the stocking rate which is the cow/calf pair.  The per-acre lease is a flat amount per acre for the grazing season.  The cow/calf pair rate is typically expressed either as an amount per month or an amount for the grazing season.  The per-acre charge is more common in eastern Nebraska, while the cow/calf pair rate is more common in north central and western Nebraska, especially in the Sandhills.

In some cases, I've run into situations where the lease is set up on a per head per day basis. This amount is simply calculated by taking a monthly rate and dividing by 30.  Know that this payment method for pasture rents is not a legal lease as determined by the USDA, meaning that the Livestock Forage Disaster Program (LFP) would not be in effect for any pastures rented with this method.  Contact your Farm Service Agency for more information about the LFP program requirements.

The landlord typically is responsible for fences with this rental rate.  Another common arrangement is for the tenant to provide the labor for fence maintenance and the landlord to provide the materials.  If the tenant provides the labor or materials, it is appropriate for the lease to be discounted by some amount to reflect the work being provided to the landlord.

The tenant usually provides the fertilizer and the noxious weed control.  Volunteer tree control, most notably control of eastern red cedars, is a landlord responsibility and expense.

Expect the Unexpected
One of the most important parts of the lease is to make provisions for unexpected events such as the drought of 2012.  The pastures ran out of grass early that year.  What provision is there in the lease for such events as drought, hail, flooding, or fire?  Both parties need to be protected in such cases.  Or, what happens if the well goes bad, or the watering holes go dry?  Who will bear the expense of these events?

There isn't a good database of common practices to work from to make solid recommendations about how the lease is modified to account for a drought for example. These situations should be discussed and a procedure should be outlined and included in the lease provisions.  What the landlord and tenant agree to is always the best lease that you can have.

Get the Lease in Writing
Sample pasture lease forms are available on the UNL Department of Ag Economics website at   http://agecon.unl.edu/realestate.



First Annual Natural Resources Districts 5K Run Raises Money for Children

Run-a-Hoo at Wanahoo! It’s time to lace up your shoes and join the Natural Resources Districts for the first annual 5K Run and 1 Mile Fun Run/Walk fundraiser on Saturday, April 11, 2015 at Lake Wanahoo near Wahoo! The run starts at 8:30 AM.

The Natural Resources Districts are excited to raise money for children who love the outdoors and are excited to learn about how to better conserve Nebraska’s natural resources. Each dollar raised goes to support several programs the NRD’s Foundation sponsors. This includes programs like Future Farmers of America (FFA) which encourages our youth to invest in natural resources and agriculture now and in the future and Adventure Camp about the Environment (ACE Camp) where middle-school aged children learn about the state’s wildlife, soil and water.

The Natural Resources Districts have high hopes for this year’s run and many more in the future.

This is a great way to showcase the different NRD recreation areas every year, so everyone gets a chance to see our amazing parks, lakes, hiking trails, and camping and fishing sites!

The Natural Resources Districts are proud to protect the lives, property and future of Nebraska.

We hope the public comes out to support our youth and spends a day enjoying Lake Wanahoo!  Again, the 5K Run and 1 Mile Fun Run/Walk fundraiser kicks off at 8:30 AM. It’s Saturday, April 11th at Lake Wanahoo near Wahoo. You can sign up at http://getmeregistered.com/RunaHoo.



Local Ethanol Producer Provides Infrastructure Grant

Nebraska ethanol producers continue to work with retailers across the state to provide additional fuel choice for consumers. The most recent of these ethanol producers is Husker Ag LLC.

In 2012, Husker Ag passed a resolution to promote higher ethanol fuel blends at the retail level. Since then, the Plainview ethanol plant has provided grant money and ethanol for several retail locations in northeast Nebraska including Creighton, Crofton, Hartington, Osmond, Pierce at two locations, and Valentine.

“Many Nebraska ethanol producers work directly with retailers to expand availability of American Ethanol blends like E15 and E85,” said Todd Sneller, Nebraska Ethanol Board administrator. “This strategic partnership provides consumers with additional choices at the pump, and makes clear to consumers the value of choosing fuels produced locally from renewable sources.”

Conoco in Valentine (203 E. Hwy 20) has two flex fuel pumps offering E10, E20, E30 and E85; and is the first station in Cherry County to offer higher ethanol blends. The grand opening is set for Saturday, April 11. Drivers can fill up with American Ethanol from 11 a.m. to 3 p.m. and save $0.20/gallon on E20, $0.30/gallon on E30 and $0.85/gallon on E85. In addition to savings at the pump, there also will be $1 slices of Hot Stuff pizza and promotional giveaways.

Plainview Roadrunner (204 W. Park St.) plans to install one flex fuel pump offering E10, E20, E30 and E85. The pump, located just 4 miles from the Husker Ag ethanol plant, is expected to be in operation by mid-summer. This will be the eighth retail location partnership that Husker Ag has provided an infrastructure grant.

“We are very excited to see the works of many coming together to expand ethanol usage in Nebraska – the second largest producer of ethanol,” said Seth Harder, Husker Ag general manager. “Partnerships are key to moving the needle on ethanol fuel usage.”

“The logistics of using locally produced fuel in areas where it is consumed is extremely efficient,” Sneller said. “As a result, consumers have access to a wider variety of fuels at a lower cost. In 2014, Nebraska motorists saved $100 million on gasoline by choosing blends that contained 10 percent or more locally produced ethanol.”

Approximately 80 pumps in Nebraska offer higher blends of American Ethanol, a brand created by a partnership between the National Corn Growers Association and Growth Energy.

Currently, one in seven Nebraska motorists drives a flex fuel vehicle, which can run on any blend of American Ethanol and gasoline, up to E85. To confirm your vehicle is flex fuel look for a yellow gas cap, flex fuel emblem or check your owner’s manual. American Ethanol with 20 percent or greater is for flex fuel vehicles only.

The flex fuel pumps were also paid for in part by the Nebraska Corn Board’s flex fuel infrastructure grant program on behalf of Nebraska’s 23,000 corn producers through their checkoff program.

To find a list of retailers that offer American Ethanol blends throughout the state, visit the Nebraska Ethanol Board website (www.ethanol.nebraska.gov) or the Nebraska Corn Board website (www.nebraskacorn.org).



INCREASE PASTURE CARRYING CAPACITY USING CROSS FENCES
Bruce Anderson, UNL Extension Forage Specialist

               As your cows finish grazing corn stalks, don't put away your electric fence for the summer.  You can use it to stretch your pasture.

               Electric fence is the easiest and cheapest way to increase production from summer pastures.  Dividing pastures with electric cross fences gives you more control of when and where your cattle graze.  It helps you encourage cattle to graze pastures more uniformly and completely, including areas they normally avoid.  And, it can help you improve the health and vigor of your grass by giving it time to recover and regrow after each grazing.  As a result, your grass production and pasture carrying capacity will increase.  This will be especially valuable this year considering the currently high cost of pasture.

               I'm sure you've seen many ads promoting high-powered, high-tensile, imported electric fencing systems.  I encourage using these systems in many situations – I use them myself sometimes.  But, cross fences do not need to be permanent, nor do they need to be expensive.  This is especially true if you already have electric fencing your animals respect.  And using fencing equipment you already have gives you an inexpensive opportunity to experiment with where you might eventually place a more permanent cross fence.

               The electric fence that keeps your cows on stalks during winter can give you this inexpensive opportunity to try some cross fencing where you have been reluctant to try it before.  You might need to use two strands, though, to help keep baby calves in place.

               So, as spring growth of your pastures begins to slow down, use your winter electric fence to try some extra summer cross fencing of your pastures.

               More grass, better gains, and better profits might be the result.




Finance and Ag Law Counseling Sites for April

One-on-one, confidential Farm Finance Clinics will be held at several sites this month. An experienced ag law attorney and ag financial counselor will be available to address farm and ranch issues related to financial planning, estate and transition planning, farm loan programs, debtor/creditor law, water rights, and other relevant matters.

February Clinic Sites and Dates
    Grand Island — Thursday, April 2
    North Platte — Thursday, April 9
    Broken Bow — Thursday, April 9
    Norfolk — Thursday, April 16
    Lexington — Thursday, April 16
    Valentine — Friday, April 17
    Fairbury — Thursday, April 23
    Norfolk — Thursday, April 30

To sign up for a clinic or to get more information, call Michelle at the Nebraska Farm Hotline at 1-800-464-0258.  The Nebraska Department of Agriculture and Legal Aid of Nebraska sponsor these clinics.



Northey Shares Tips for Managing Cover Crops this Spring

As the number of Iowa farmers using cover crops continues to grow, it's important to help make sure these farmers have a successful experience. Iowa Secretary of Agriculture Bill Northey shared a number of spring management tips for farmers new to growing cover crops.

"We have seen tremendous growth in the number of farmers using cover crops on their farm as they seek to reduce erosion, protect water quality and improve soil health. As with any new practice there can be a significant learning curve. These tips can hopefully help farmers have a successful experience which encourages them to grow cover crops again in the future," Northey said.

This information was put together with the help of the Iowa cover crop working group, which includes representatives from the Iowa Department of Agriculture and Land Stewardship, Practical Farmers of Iowa, Iowa State University, Iowa Learning Farms, and USDA Agriculture Research Service. More information about incorporating cover crops into your farming operation can be found at www.cleanwateriowa.org/farm-practices.aspx or at www.extension.iastate.edu/ilf/.

1) Evaluate for winter kill -- If the above ground cover crop is brown and near the soil surface no green plant material is present then your cover crop winter-killed. Cover crops such as tillage radishes and oats typically winter kill and then no additional spring management is needed. Other cover crops, such as winter or cereal rye, winter wheat, triticale, and barley, consistently over-winters in Iowa. In late March, double check plant stems near soil surface to see if the plant has survived.

2) Termination options -- Herbicides, tillage or a combination of the two can be used to effectively manage cover crops in the spring. Keep in mind any tillage will reduce the effectiveness of the cover crop residue to protect against erosion and suppress weeds. Some additional considerations for both methods of termination follow:

For successful herbicide termination, make sure the plant has "greened-up" and has enough living surface area for the herbicide to work. Experienced farmers suggest spraying during the middle of the day and, if possible, spray when air temperature is at least 45 or 50F. Unless you have experience, separate nitrogen application from a "burndown" herbicide application.

Terminating cover crops with tillage can be effective, but may take more than one tillage pass. Wet periods can delay tillage to terminate cover crops and wet conditions following tillage can allow cover crop plants to survive tillage operations. Also, tilling a cover crop to terminate eliminates the erosion prevention benefit that the cover crop would usually provide in the early part of the growing season.

3) Consider nitrogen needs -- Cover crops effectively sequester nitrogen and as the plant residue breaks down it will release its nutrients, making them available for the crop later in the season when they need them the most. However, there is the potential for lower available nitrogen early in the growing season, especially following an overwintering grass cover crop like cereal rye. To protect yield, farmers growing corn after a cereal rye cover crop may want to apply 30-50 lbs of nitrogen at or near corn planting. This is not additional nitrogen, but within the farmer's total fertilizer program.

4) Know crop insurance requirements -- Crop insurance rules state that a cover crop in Zone 3 (western third of Iowa) must be terminated by the day of cash crop planting. A cover crop in Zone 4 (eastern 2/3rds of Iowa) must be terminated within 5 days of cash crop planting. If using no-till add 7 days to either scenario. More information about insurance requirements can be found at www.rma.usda.gov/help/faq/covercrops2014.html

5) Start planning now for cover crop needs this fall -- Determine what cover crop(s) work with your current or planned crop protection program. Some residual herbicides have carryover restrictions for certain species of cover crops. Consult with your agronomist and/or cover crop seed representative to look at your specific management system with the integration of cover crops. Additional information can be found at www.weeds.iastate.edu/mgmt/2015/CCherbicides.pdf

More than 1,600 farmers have volunteered to invested $4.2 million to try a new practice on their farm to better protect water quality over the past two years through the Iowa Water Quality Initiative. Thousands of other Iowa farmers are using cost share through other state and federal programs or growing cover crops on their own with no assistance.

Iowa also currently has 16 Water Quality Initiative demonstration projects in targeted watersheds that are focused on helping farmers implement and demonstrate water quality practices. The state has provided $7.4 million in funding to support these projects and has leveraged an additional $11.7 million in additional funding from partners and landowners. More than 95 organizations are participating in these projects.

Visit CleanWaterIowa.org to learn more about voluntary, science-based practices that can be implemented on our farms and in our cities to improve water quality. Iowans can also follow @CleanWaterIowa on twitter or "like" the page on Facebook to receive updates and other information about the ongoing Iowa water quality initiative.



#BeefsOnMyPlate Campaign Kicks Off
 
The National Cattlemen’s Beef Association has a unique opportunity for you to engage in the discussion around diet and health in Washington D.C. The most recent Dietary Guidelines Advisory Committee’s report has confusing nutritional messages by leaving lean meat out of healthy dietary pattern, despite its own nutritional evidence review.  Now, you can engage by posting your pictures of how beef fits on your plate using #BeefsOnMyPlate.

“A one-sized-fits-all approach to a diet doesn’t work, but we know beef fits into wide a range of healthy diets because of its versatility,” said Shalene McNeill, registered dietitian and nutrition scientist with NCBA. “We have a lot of sound evidence out there showing lean beef consumption contributes zinc, iron, protein and B-vitamins, which helps keep you satisfied, helps manage your weight, and can fuel a healthy and active lifestyle.”

Lean beef is a calorie saver. For about 150 calories, a 3-oz serving of lean beef provides about the same amount of protein as three servings (1½ cups) of cooked black beans with 341 calories. Philip Ellis, a Wyoming rancher and president of the NCBA said this is a great opportunity to showcase how beef fits in a healthy and calorie-conscious diet and encourage the Secretaries to make sure lean beef is not just a footnote in the guidelines.

“It’s unfortunate that the Advisory Committee failed to review all the science that undoubtedly shows the value of lean meat in the healthy diet,” said Ellis. “But the Secretaries have the opportunity to pick up where the Committee fell short and finish the scientific review of red meat’s role in a healthy diet to re-instate the 2010 Dietary Guidelines recommendation on lean meat. Let’s post our pictures and show them a variety of healthy diets that include lean beef.”



USDA to Issue Disaster Assistance to Help Honeybee, Livestock and Farm-Raised Fish Producers

The U.S. Department of Agriculture’s (USDA) Farm Service Agency today announced that nearly 2,700 applicants in over 40 states will begin receiving disaster assistance through the Emergency Assistance for Livestock, Honeybees and Farm-Raised Fish Program (ELAP) for losses experienced from Oct. 1, 2013, through Sept. 30, 2014.

The program, re-authorized by the 2014 Farm Bill, provides disaster relief to livestock, honeybee, and farm-raised fish producers not covered by other agricultural disaster assistance programs. Eligible losses may include excessive heat or winds, flooding, blizzards, hail, wildfires, lightning strikes, volcanic eruptions and diseases, or in the case of honeybees, losses due to colony collapse disorder. Beekeepers, most of whom suffered honeybee colony losses, represent more than half of ELAP recipients.

The farm bill caps ELAP disaster funding at $20 million per federal fiscal year and the Budget Control Act of 2011, passed by Congress, requires USDA to reduce payments by 7.3 percent, beginning Oct. 1, 2014. To accommodate the number of requests for ELAP assistance, which exceeded 2014 funding, payments will be reduced to ensure that all eligible applicants receive a prorated share.



CWT Assists with 1.5 Million Pounds of Cheese and Butter Export Sales

Cooperatives Working Together (CWT) has accepted 10 requests for export assistance from Dairy Farmers of America, Northwest Dairy Association (Darigold), and Tillamook County Creamery Association who have contracts to sell 1.405 million pounds (637 metric tons) of Cheddar, Gouda, and Monterey Jack cheese and 55,116 pounds (25 metric tons) of butter to customers in Asia, the Middle East, and Oceania. The product has been contracted for delivery in the period from April through September 2015.

Year-to-date, CWT has assisted member cooperatives who have contracts to sell 24.842 million pounds of cheese and 24.387 million pounds of butter to 22 countries on five continents. The amounts of cheese and butter in these sales contracts represent the equivalent of 778.008 million pounds of milk on a milkfat basis.

Assisting CWT members through the Export Assistance program, in the long-term, helps member cooperatives gain and maintain market share, thus expanding the demand for U.S. dairy products and the U.S. farm milk that produces them. This, in turn, positively impacts U.S. dairy farmers by strengthening and maintaining the value of dairy products that directly impact their milk price.



Congress Seeks a Positive Market-Access Outcome for U.S. Dairy in Pacific Trade Pact

The dairy industry today praised the more than 75 House members who have urged the Obama Administration to negotiate a strong market-access outcome for the U.S. dairy industry in the Pacific Rim trade agreement.

Led by the co-chairs of the Congressional Dairy Farmer Caucus, the House members sent a bipartisan letter to U.S. Trade Representative Michael Froman and Agriculture Secretary Tom Vilsack, saying Canadian and Japanese dairy market barriers must be addressed in any final Trans-Pacific Partnership (TPP) agreement to allow more U.S. dairy exports. The TPP involves trade negotiations between the United States and 11 other nations.

“We recognize that you must juggle a wide range of priorities,” the congressmen said in the letter. “However . . . we believe that winning an overall positive market access result for the U.S. dairy industry is critical to the success of the TPP negotiations.”

The National Milk Producers Federation, the U.S. Dairy Export Council and the International Dairy Foods Association commended the House members’ action, noting that dairy producers and processors agree on the importance of a balanced, positive TPP market-access outcome for their industry.

“The U.S. dairy industry has a $4 billion trade surplus worldwide and supports tens of thousands of jobs here at home, yet we still face substantial hurdles in major markets,” said Tom Suber, USDEC president. “TPP should expand our ability to compete through new access and more fair rules of trade.”

“The U.S. cannot give a pass to major countries like Canada and Japan while at the same time increasing access for major competitors into our own market. That is completely unacceptable,” said Jim Mulhern, NMPF president and CEO. “Given that TPP is likely to introduce more competition in a number of key markets, the bottom line is that this agreement must result in a net boost in export opportunities for U.S. dairy producers.”

Connie Tipton, IDFA president and CEO, added, “Significant market access for all dairy products must be on the table in negotiations with Japan and Canada. If this is to be a true 21st century trade agreement, U.S. dairy exporters should not be limited on what they sell into these markets.”

A majority of the House members signing the letter have voted in support of at least one of the U.S. free trade agreements approved in 2011, which are the most recent to date. Spearheading the letter were the Congressional Dairy Farmer Caucus co-Chairs: Reid Ribble (R-WI), Peter Welch (D-VT), Joe Courtney (D-CT), Suzan Delbene (D-WA), Tom Reed (R-NY), Michael Simpson (R-ID), David Valadao (R-CA) and Timothy Walz (D-MN).



Ag Giants Sow Venture-Capital Seed

Agribusiness giants are sowing their own venture-capital seeds.

Biotech seed producers Monsanto Co. and Bayer AG are among the companies that recently established or expanded investment units to fund new agricultural ventures. As a wave of entrepreneurial vigor sweeps the Farm Belt, the companies want to ensure they don't miss out on cutting-edge tools for food formulation and pest prevention, the companies say.

Geoff Kneen, head of North America new ventures for Bayer's agriculture unit, said the company sees venture-capital investing as a means to adapt innovation from aerospace and other sectors that could help harness huge quantities of newly available data about food production.

Bayer in February formed a new $150 million fund focused on agricultural technology with investment firms Finistere Ventures and AVAC Ltd. Mr. Kneen said his company put up a minority portion of the money and attracted partners because it assured them that their startups would be able to target a large market quickly by tapping Bayer's scientific and sales infrastructure.

"The technological landscape is changing," he said. "Our role will be to develop those technologies for the future of food production."

St. Louis-based Monsanto set up Monsanto Growth Ventures in late 2012 as a way to spot and exploit capabilities Monsanto didn't have in-house. The effort also helps identify acquisitions, including its $930 million deal in 2013 for Climate Corp., a weather data-crunching firm that is now the flagship for Monsanto's push into computer-powered farming services.

"We wanted to get one step closer to the entrepreneurs, one step closer to the scientists," said Steve Padgette, Monsanto's head of research and development investment strategy who helps lead the division. He declined to say how much money Monsanto has put into its venture investments.

Rival Syngenta AG also is cultivating startups. Its ventures arm in February helped lead $7.3 million in fundraising for AgriMetis LLC, which aims to synthesize molecules that plants naturally produce to defend against pests.

As they compete with other investors to woo good targets, some agricultural companies tout their commitment to a business that, by definition, can move as slowly as the seasons. Agricultural entrepreneurs at times have been wary of working with nonagriculture venture funds that they fear want to cash out quickly, industry observers said.

The Andersons Inc., an Ohio grain company with $4.5 billion in annual revenue, highlighted its long-term aspirations when it launched a new venture fund in January targeting investments of $500,000 to $5 million in new concepts for fertilizers, computer-guided farming and food safety.

"We are unencumbered by a compulsion to 'exit' for the sake of earning a quick return," the company said.