Wednesday April 22 Ag News

Chilling Injury in Corn and Soybeans
Jim Specht, Professor Emeritus, Department of Agronomy and Horticulture
Nathan Mueller, Extension Educator, Dodge County
If you're considering going to the field this week to start planting, be sure to check predicted temperatures for the critical 48 hours after planting as well as average soil temperatures for the previous seven days to avoid germination problems.

Corn Cold Stress
Corn seed is very sensitive to soil and soil water temperatures below 50°F during the first 48 hours after planting. This is when water rushes into the seed to rehydrate the cells through a process known as imbibition. If temperatures are below 50°F, cells can rupture, which can lead to nonviable swollen kernels and aborted growth of the radicle (root) and coleoptile (shoot). Cold temperatures will interfere with proper hydration of cell membranes and could lead to chilling injury and reduced yield.

When temperatures remain above 50°F for the first 48 hours after planting, seeds can be expected to germinate. If the soil temperature dips below 50°F after the imbibition period, it usually isn't an issue as the seed will be taking in water through a slower process known as osmosis. With cooler temperatures germination will be delayed, but should occur.

Soybean Cold Stress
Cold stress also can occur in soybean if the soil temperature falls below 50°F during the first 48 hours after planting.

The germination stage of soybean consists first of a very fast uptake of water (imbibitional phase) followed by a much slower uptake of water (osmotic phase). Chilling during the first phase can cause severe problems because the imbibed water is needed to rehydrate the cotyledons and embryo to the point that cell membranes become functional. Cold temperatures interfere with proper hydration of those membranes. The imbibitional phase typically is not very long (less than 24 hours) and can occur with relatively little soil moisture since the seed is dry. Thus, getting a cold rain 0-24 hours after you plant can lead to chilling injury in soybean and lower stands.  A study by UNL researcher W.J. Bramlage et al. showed that when the soybean seed coat was removed, imbibition injury occurred within 30 minutes. With a seed coat, imbibition is slower and a longer exposure would be needed before chilling injury occurs.

A key point to consider is that chilling injury is likely to be greater if soil temperatures were cold (conservatively, less than 50°F) at planting rather than becoming cold 24 or more hours after sowing. (The 50°F threshold is a change from previous CropWatch articles that listed 40°F as the injury threshold for soybeans during the imbibition stage.) The longer the seed is in the ground at warm soil temperatures before cold temperatures occur, the less likelihood there is of chilling injury. The bottom line is: You can consider planting soybeans if you think soil temperatures won't get cold (less than 50°F) for at least 24-48 hours after planting. If you planted two or more days before the cold rain, there should be no imbibitional injury due to cold temperature.

Checking Soil Temperature in Your Field
If you're thinking about planting:
-    Check the average soil temperatures for the last seven days.
-    Check the air temperature predicted for your area for the next 48 hours after planting. Note that soil temperatures, particularly in wet soils, change more slowly than air temperatures.
-    Test the soil temperatures in your field. Get a thermometer with a probe (for example, a meat thermometer that's kept for soil tests). On the day you'd like to plant, take a reading just after dawn — this is the coldest period during a 24-hour timeframe — to determine today's soil temperature.

If the results of these tests indicate soil tests are currently below 50°F or are expected to drop for much of the 48-hour imbibition period, consider delaying planting. Wait until you feel confident that soil temperatures will be above 50°F for the 48 hours after planting.



Loan Volumes Continue Rising as Lower Farm Incomes Persist
Nathan Kauffman, Kansas City Federal reserve - Omaha Branch Executive
Cortney Cowley, Economist 

Loan volumes for almost all farming purposes rose at commercial banks, as many producers contended with tighter profit margins. Persistently low crop prices and elevated input costs continued to increase farmers’ short-term financing needs. High prices for feeder cattle further boosted loan volumes in the livestock sector. Agricultural input costs were expected to decline in 2015, but cash receipts were expected to drop further, keeping profit margins tight for many producers.

Lower farm incomes kept loan demand strong throughout the Federal Reserve Districts surveyed, while loan repayment rates were slightly weaker. Despite reduced farm incomes and increased debt outstanding, loan delinquency rates declined, and profits increased slightly at most agricultural banks. Lower farm incomes also affected farmland values, but the changes varied widely among states. Farmland values in crop-intensive states decreased slightly, while demand strengthened for good-quality farmland and ranchland in states more concentrated in livestock production or with wealth generated from other sources, such as oil and natural gas exploration.

Section A - First Quarter National Farm Loan Data
Agricultural lending continued to grow in the first quarter of 2015. The national Survey of Terms of Bank Lending to Farmers, conducted during the first full week of February, indicated the total volume of non-real estate farm loans was $8.1 billion more than in the same period in 2014. Overall growth in loan volume was driven by increased borrowing for current operating expenses and livestock purchases. Current operating loan volumes grew for the third year in a row following several quarters of depressed crop prices. Demand for operating loans could remain elevated as futures markets for fall crops show prices are expected to remain low due to the possibility of another record harvest.

The USDA projected plantings report showed soybean acreage could rise to record levels in 2015. Corn acreage was expected to decline for the third consecutive year, but the corn crop was still projected to be the third largest in history. As in 2014, large corn and soybean harvests could keep crop prices comparatively low, which would further weaken cash receipts for fall crops. This year, input costs were expected to decline less than crop cash receipts, which could put additional downward pressure on farm income and further increase the need for financing to cover expenses.

Livestock loan volumes increased in the first quarter of 2015 as profit margins in the cattle sector reacted to another quarter of strong prices for feeder cattle. Profit margins tightened for feedlot operators, while cow/calf producers experienced better margins due to high cattle prices and low feed costs. Lending for feeder livestock increased more than 20 percent as producers rebuilt their herds and feedlot operators dealt with increasing costs. Following several years of herd liquidation, in 2014, cattle operations switched from liquidation to expansion and the U.S. cattle herd grew by 2.1 percent. As cattle inventories rebounded slightly, feeder cattle prices softened in the first quarter of 2015 but remained historically high. High feeder cattle prices continued to sustain livestock loan volumes but could moderate. 

In the hog sector, loan volumes rose as declining hog prices resulted in reduced profit margins. The drop in hog prices over the last two quarters was primarily the result of a growing U.S. hog herd. Hog inventories began rebounding in the second half of 2014, following massive reductions during the porcine epidemic diarrhea virus outbreak. Since June 2014, hog prices have dropped 40 percent, causing hog producers to depend more on lending to maintain inventories and cover operating expenses.  

Although farm sector lending has continued to rise, the share of farm loans made with fixed interest rates increased notably in the first quarter of 2015. Between the first quarters of 2013 and 2015, the share of all non-real estate farm loans with fixed interest rates rose from 26 percent to 40 percent, respectively.  This shift from floating to fixed interest rates was most pronounced for livestock loans, excluding feeder livestock, and farm machinery and equipment loans. Interest rates on non-real estate farm loans increased modestly in the first quarter of 2015, after declining steadily since 2007, and this uptick could have prompted more farmers to further “lock-in” at historically low rates. 

Section B - Fourth Quarter Call Report Data
Despite declines in farm income over the last several quarters, delinquency rates on both farm real estate and non-real estate loans declined in late 2014.  Although incomes have dropped substantially from recent highs, they were not yet expected to fall below the average of the past 40 years. In addition, extremely low incomes (i.e., 50 percent below the long-run average) have not been observed since 1983 and, in the four years prior to 2015, incomes were extraordinarily high. Multiple years of historically high incomes helped strengthen balance sheets and better prepare producers for the effects of declining prices seen more recently. As a result of borrowers’ strong financial positions, credit conditions have remained solid, even as debt in the farm sector has increased.

Commercial bank call report data showed that farm sector lending at commercial banks has, in fact, continued to rise and profitability at both agricultural and other small banks has remained relatively strong. In the fourth quarter of 2014, farm debt outstanding at commercial banks grew 8.3 percent from 2013. Loan growth was driven by a 6.8 percent increase in the volume of loans secured by farm real estate and a 9.9 percent increase in the volume of loans to finance agricultural production. At the same time, the percentage of nonperforming farm loans and net charge-offs declined. Improved farm sector loan performance supported a slight rise in profits at agricultural banks. At the end of the fourth quarter, the return on assets at banks with an above-average share of loans made to the agricultural sector rose from 1.09 percent in 2013 to 1.13 percent in 2014.

Section C - Fourth Quarter Regional Agricultural Data
Although loan delinquency rates remain low, Federal Reserve District agricultural survey data showed slight deteriorations in some credit conditions across some regions. In most districts, demand for operating loans increased, loan repayment rates declined and more requests were made for loan renewals and extensions. Declines in farm income also pushed down household and capital spending in all districts. Survey respondents indicated that funds were available for farm loans but noted a slight increase in collateral requirements. Looking ahead, bankers in the Chicago and Dallas Federal Reserve Districts expected lending to increase for cattle and operating expenses next quarter, while loan volume was expected to decrease for crop storage and farm machinery.

Depressed farm incomes have begun to put downward pressure on farmland values, particularly in areas devoted to crop production. Farmland values declined in states throughout the Corn Belt due to lower crop prices, while values rose in states relatively more dependent on cattle, oil and natural gas production. In the Dallas Federal Reserve District for example, farmland values strengthened for all types of farmland, while dryland and irrigated farmland values declined or increased at a slower rate in the Minneapolis and Kansas City Districts. Ranchland values continued to climb in all districts, as feeder cattle prices supported strong profit margins for cow/calf operations. As demand remained high and supply became more limited for good-quality land, the range of prices between good and marginal land also increased. A majority of survey respondents, however, expected farmland values to remain steady or decline in 2015.

Conclusion
As profit margins on farms tightened, producers borrowed more and reduced capital spending in late 2014 and early 2015. However, farm income has yet to fall below long-term historical averages, and recent data have shown only minimal declines in credit conditions. Relatively strong credit conditions have been partially supported by extraordinary profits among crop producers the last several years and, more recently, record profits for cow/calf producers. If the declining trend in farm income persists, however, agricultural credit conditions could weaken more noticeably in the future.



CONTROLLING MUSK THISTLE
Bruce Anderson,  UNL Extension Forage Specialist

               Does anybody like musk thistles?  If not, let’s do something about them.

               Following recent rains you’re probably anxious to get into the field for planting.  Don’t forget, though, that this also is the best time to control musk thistles.  And I’ll also bet that you can get into your pastures to spray at least one or two days sooner than you can get into row crop fields to plant.

               Did you have musk thistles last year?  If so, I’m sure you’ll have them again this spring.  And the current rosette growth form is the ideal stage for controlling these plants this spring.  That means spray herbicides soon, while your musk thistle plants still are in that rosette form, and very few plants will send up flowering stalks for hand digging later.

               Several herbicides are effective and recommended for musk thistle control.  My current favorites are called Milestone and GrazonNext, which basically is a mixture of Milestone and 2,4-D.  Both Milestone and GrazonNext also will help control other weeds that usually appear later in the season.

               Other herbicides also can control musk thistles in pastures this spring – like Chaparral, Cimarron, Overdrive, and Curtail.  A tank mix of dicamba and 2,4-D also works very well.  No matter which weed killer you use, though, be sure to read and follow label instructions, and be especially sure to spray on time.

               All these herbicides will work for you this spring if you spray soon, before musk thistles bolt and send up their flowering stalks.

               After flowering, though, the shovel is about the only method remaining to control thistles this year.



NDA ANNOUNCES NEW FARMERS’ MARKET ONLINE DATABASE

Nebraskans interested in purchasing fresh fruits and vegetables have a new tool for sourcing their produce from farmers in their local area.  Nebraska Department of Agriculture (NDA) Director Greg Ibach today announced the rollout of a new Farmers’ Market Online Database.  The database is designed to make it easier for consumers, as well as retailers, to find local produce growers and farmers’ markets across Nebraska.

According to Ibach, the database is easily navigated and will allow consumers to quickly locate farmers’ markets in their area, as well as individual farmers.  The database includes details such as vendor names, location, contact information, hours of operation and produce options.  Consumers can also find vendors who participate in one of NDA’s fresh produce coupon programs for low income individuals.

“In the past 15 years, we have seen an increase in consumer demand for locally grown fresh fruits and vegetables.  The number of farmers’ markets across the state has grown 228% in that same time frame,” Ibach said.  “This new, searchable database makes it easy for consumers to find the fresh produce growers in their immediate area.  It’s a benefit for consumers and a benefit for growers at the same time.”

Farmers’ market managers and fresh produce growers who have not already submitted information for the database and would like to are encouraged to contact Casey Foster with NDA’s Ag Promotion and Development Focus Area at 800-422-6692.

The online database can be accessed at http://ne.gov/go/neproduce.  Individuals without online access can receive information about farmers’ markets or individual growers in their area by contacting NDA at 800-422-6692. 



Pesticide Record Keeping Made Easy with Mobile App

A new release of the Iowa State University Extension and Outreach Pesticide and Field Records mobile app supports sending emails and printing hardcopies of crop and pesticide application information.

The free Pesticide and Field Records app, designed by the ISU Extension and Outreach Pesticide Safety Education Program, helps private applicators and commercial agricultural businesses record and maintain pesticide application information on their Android smartphones and tablets or iPads.

Users input application details such as crop and pesticides used, targeted pests, date and time applied, temperature and wind speed and direction while linking these specifications to specific field locations using satellite mapping capabilities. Application records can then be quickly and easily accessed, emailed or printed to comply with state and federal record keeping requirements. The app includes a convenient searchable list of Iowa registered pesticide products and Environmental Protection Agency product registration numbers.

“This app allows users to record information in the field at the time of application, and then print and email the records,” said Kristine Schaefer, PSEP program manager with ISU Extension and Outreach. “We continue to work with the developers to improve the app’s usefulness and features.”

Schaefer indicated the app gives applicators the opportunity to see satellite images of sensitive areas such as creeks, streams or other features such as wet or weedy areas of the field prior to applying pesticides.

The newly updated Pesticide and Field Records app can be downloaded from Google Play for Android operating systems. The app’s iPad version can be found under Pesticide and Field Records Plus at the iTunes store. Developers are working on an iPhone version. Previous users of the iPad app will need to download the new version to access the printing and email features.

Development of the app was funded by the ISU Extension and Outreach Pesticide Safety Education Program and a grant from EPA under assistance of the Iowa Department of Agriculture and Land Stewardship Pesticide Bureau.



ISU Extension Workshop Offered for Crop Scouts

Field Scouting Basics Workshop, an Iowa State University Extension and Outreach educational program, will be Monday, May 18, at the Field Extension Education Laboratory near Boone, Iowa. Designed for beginning-level crop scouts, the half-day course provides hands-on, in-field experience to crop scouts for the 2015 growing season.

This supplemental Field Scouting Basics class builds a foundation of knowledge in corn and soybean growth and development principles that support sound agronomic decision-making throughout the growing season.

“Before scouts head to the fields this season, this program will refresh the memory of those who attended the Field Crop Scouting School March 7 and teach the basics of scouting to those that were unable to attend the earlier school,” said coordinator Warren Pierson, program specialist with FEEL. “The agenda is geared toward feedback from the March school, and the goal is to get the scouts into corn and soybean fields to learn by doing.”

ISU Extension and Outreach specialists and field agronomists will provide instruction on the principles of Integrated Pest Management with emphasis on weed, insect and crop disease identification in Iowa corn and soybean production. An overview of basic field scouting skills including sample collection, observation and documentation are also offered.

The half-day Field Scouting Basics Workshop presentation topics and Iowa State University instructors include:
-    Crop scouting tips and tools – Angie Rieck-Hinz, extension field agronomist
-    Corn and soybean growth and development – Mark Licht, extension cropping systems agronomist
-    Weed identification – Bob Hartzler, extension weed management specialist
-    Disease identification – Rashelle Matthiesen-Anderson, plant pathology research associate
-    Insect identification – Erin Hodgson, associate professor of entomology and extension entomologist

Registration opens at 8 a.m. with sessions starting at 8:30 a.m. and adjourning at noon with the serving of lunch. Pre-registration is required; pre-registration closes at midnight, May 13. Cost is $65; includes lunch and class materials. Attendees of the March 7 Field Crop Scouting School receive a $20 discount. To register, go to www.aep.iastate.edu/feel/scout. Registration is available online with credit card or by mail with check payment.



USDA Cold Storage Highlights

Total red meat supplies in freezers as of March 31, 2015 were down 3 percent from the previous month but up 18 percent from last year, according to USDA's Cold Storage report issued Wednesday afternoon. Total pounds of beef in freezers were down 2 percent from the previous month but up 18 percent from last year.  Frozen pork supplies were down 3 percent from the previous month but up 16 percent from last year. Stocks of pork bellies were up 1 percent from last month but down 14 percent from last year.

Total frozen poultry supplies on March 31, 2015 were up 4 percent from the previous month and up 19 percent from a year ago. Total stocks of chicken were up 3 percent from the previous month and up 27 percent from last year. Total pounds of turkey in freezers were up 8 percent from last month and up 3 percent from March 31, 2014.

Total natural cheese stocks in refrigerated warehouses on March 31, 2015 were down slightly from the previous month but up 4 percent from March 31, 2014.  Butter stocks were up 4 percent from last month but down 4 percent from a year ago.  Total frozen fruit stocks were down 6 percent from last month and down 3 percent from a year ago.  Total frozen vegetable stocks were down 7 percent from last month but up slightly from a year ago.



Senate Finance Committee Passes TPA Legislation
 
Today, the Senate Finance Committee passed Trade Promotion Authority legislation (S. 995) by a bi-partisan vote of 20 to 6. National Cattlemen’s Beef Association President and Chugwater, Wyo. cattleman Philip Ellis highlighted the importance of this legislation.

“We were very happy to see the Committee pass a TPA bill, without amendments that would hinder progress on future free trade agreements,” said Ellis. “Trade Promotion Authority gives our negotiators and trading partners a clear signal to negotiate the best deal for our products, knowing it will receive an up or down vote in Congress. Current and future free trade agreements give us the ability to take our beef, the best protein in the world, to the 96 percent of the world’s population that lives beyond our borders. Trade and greater access to markets around the world mean the future to my ranch, my kids and my grandkids; and I urge Congress to pass this legislation without delay.”



ASA Presses EPA to Accept Comments on Rewrite of Waters of the U.S. Rule

In a letter to Environmental Protection Agency Administrator Gina McCarthy, the American Soybean Association urged the agency to accept feedback and comments from industry as it prepares a revised Waters of the United States rule as part of the Clean Water Act.

Following introduction of the proposed rule in April 2014, ASA expressed strong concerns about its jurisdiction, application and potential impacts on American farms, and asked that the rule be withdrawn and a new rule that included input from farmers be developed. In response to these concerns, EPA Administrator McCarthy has given assurances that problems in the original rule will be fixed when a final rule is issued.

“While we appreciate (Administrator McCarthy’s) strong statements that these problems have been fixed, we will not have an opportunity to offer comments if the rule is published as a final rule,” wrote ASA President and Brownfield, Texas, farmer Wade Cowan in the letter. “We anticipate, given (EPA’s) statements, that the revised rule will be substantially different from the first. Because the rule has the potential to have such large economic consequences for farmers and the entire economy, ASA strongly urges … a second period to provide comments on this rule. This could be accomplished by issuing either a revised proposed rule or an interim final rule. We respectfully ask that these revisions be offered for public comment, in the interest of finalizing a rule that provides clarity to farmers and truly maintains all exemptions for normal agricultural practices.”

The original rule prompted a range of lawmakers in both parties to criticize the process and the potential for detrimental impacts not only on the farm, but across rural communities, and that sentiment remains. Cowan noted many of ASA’s concerns with the original rule in the letter, saying that the rule as originally proposed would create new uncertainty and legal jeopardy for soybean farmers across the country. ASA’s concerns range from internal contradictions and inconsistencies in the rule to the lack of important definitions to confusion over what land and water could be subject to the rule’s jurisdiction.



ASA Expresses Concern on EU Action that Would Permit Individual EU Countries to Ban the Import of Food and Feed Containing Biotech Ingredients

The American Soybean Association (ASA) responded today with concern and disappointment in a decision from the European Commission to propose amending its approvals process for biotechnology traits to allow individual member states to opt out of the import of products containing those traits, even though such traits have been fully approved by EU food safety officials.

“Today’s decision from the European Commission is bad for the EU’s own livestock producers and feed industries, will make those industries less competitive, and is bad for EU consumers who ultimately will pay more for the meat they put on their tables,” said ASA Vice President and Delaware farmer Richard Wilkins. “The EU feed and livestock industries have reacted very negatively to the EU Commission’s action, warning that it would make livestock production uncompetitive and disrupt trade into and within the EU market. Currently, the EU feed industry imports 75 percent of the soymeal it requires for livestock uses.”

Wilkins also expressed strong concerns about the compatibility of today’s action by the Commission with the EU’s existing international trade obligations as well as the ongoing Transatlantic Trade and Investment Partnership (TTIP) negotiations between the United States and EU. “The World Trade Organization has ruled against the EU for not operating a timely and science-based approval process, and today’s decision would create new WTO violations by allowing member states to restrict these imports based on something as trivial as political or popular whims. It also runs completely contrary to the very spirit of eliminating barriers to US-EU trade under the TTIP. We believe this proposal, if finalized, would negatively impact U.S. soy trade with the EU.”

“What is particularly troubling about this proposal is that it hardly squares with the EU’s goal of presenting one coordinated economic face to the rest of the world,” added Wilkins. “Instead of standing with science, with modern agriculture, and with the realities of the global economy, the EU has divided itself with this proposal between those member states that choose to recognize the promise and potential of biotechnology to provide for their citizens, and those that do not.”

The proposal now must be adopted by the 28 EU member states and the EU parliament through the co-decision process. A timeline for that has not been set.



NCGA Applauds Introduction of Fuel Choice and Deregulation Act in House

The National Corn Growers Association today applauded Reps. Rod Blum (R-Iowa), Ken Buck (R-Col.), Collin Peterson (D-Minn.), and David Young (R-Iowa) for introducing the Fuel Choice and Deregulation Act of 2015. The House legislation, which mirrors a bill introduced in the Senate in March by Senators Chuck Grassley and Rand Paul, would ultimately increase the availability of E15 ethanol in the marketplace.

"We thank Representatives Blum, Buck, Peterson, and Young for their leadership in the House to expand consumer choices at the pump and give people year-round access to clean, renewable fuel," said NCGA President Chip Bowling.

Reid Vapor Pressure measures the evaporation rate of gasoline. The Environmental Protection Agency has granted a volatility waiver to E10 blends, allowing year-round sales throughout the country. The EPA has refused to grant E15 the same waiver, despite some legal analysts who say it is within their authority to do so. Without the waiver, approximately 60 percent of the country can only sell E15 from June 1 to September 15. If the bill passes, more retailers would be expected to offer E15.

"Consumers should have year-round access to higher ethanol blends," Bowling said. "This is the single largest regulatory hurdle standing in the way. We urge both the House and the Senate to step up, remove this hurdle, and expand consumer choice."



NCGA to Congress: Pass Trade Promotion Authority Now

The National Corn Growers Association today applauded members of the Senate Finance Committee who voted to advance the Bipartisan Congressional Trade Priorities and Accountability Act of 2015 (TPA-2015) out of committee and urged Congress to quickly pass the bill.

“On behalf of America’s corn farmers, our customers, and the one million Americans whose jobs depend on agricultural trade, I want to thank the Senate Finance Committee members who voted to advance Trade Promotion Authority out of committee,” said Chip Bowling, a Maryland farmer and president of NCGA. “We now call on members of the House Ways & Means Committee to pass a clean TPA bill out of committee, and for both the House and Senate to bring this important legislation to a floor vote as soon as possible.”

“American family farmers depend on trade. Congress, we are now depending on you to pass Trade Promotion Authority. Let’s remove trade barriers, expand our access to global markets, and ensure farmers get the best possible trade agreements.”



NFU Urges Congress to Maintain Constitutional Authority by Rejecting TPA;
Says TPA Fails to Address Currency Manipulation, Balance Trade Deficit

National Farmers Union (NFU) President Roger Johnson today submitted testimony to both the U.S. Senate Committee on Finance and the U.S. House of Representatives Committee on Ways and Means, urging Congress to reject Trade Promotion Authority (TPA) legislation that does not address the United States’ massive trade deficit or currency manipulation.

“Trade Promotion Authority for the Trans-Pacific Partnership (TPP) fails to address our nation’s massive and growing trade deficit or currency manipulation in member countries of TPP negotiations,” said Johnson. “Congress should maintain its constitutional authority to address these concerns by rejecting TPA legislation that removes it.”

Johnson noted that American agriculture’s good fortune to fair relatively well in trade is overshadowed by a massive overall trade deficit that represents a roughly three percent drag on the U.S. Gross Domestic Product (GDP).

“International trade is an important part of successful family farming in the U.S., but increasing trade is not an end unto itself,” said Johnson. “Our nation’s trade deficit, which causes a drag on overall growth of the economy, has negative impacts on jobs and rural communities. Because of this significant impact, all future trade agreements, such as TPP and the Transatlantic Trade and Investment Partnership (T-TIP), must have the explicit objective of balancing trade.”

Johnson noted that currency manipulation also remains a top concern for NFU, as it has the capacity to eliminate any potential gains in tariff reductions that may be made in free trade agreements.

“Without measures to enforce restrictions on currency manipulation, free trade agreements fail to live up to the promises made by their supporters,” said Johnson “With passage of Trade Promotion Authority, Congress eliminates its capacity to ensure that this significant trade agreement contains enforceable measures to address currency manipulation."

Johnson said that the original intent of TPA was to lay out the procedures for notification between the executive and legislative branch and the expedited legislative process for approval.

“TPA legislation sets forth the objectives for any president for negotiating trade agreements,” said Johnson. “The Trans-Pacific Partnership negotiations are largely completed, so there is no need for Congressionally-assigned, unenforceable objectives. Objective-setting should occur prior to the start of negotiations, not near the end.



Ethanol Stocks Surge to 7-Week High

U.S. ethanol inventories continued to build last week, increasing 697,000 barrels (bbl) to a seven-week high of 21.342 million bbl during the week-ended April 17, new data from Energy Information Administration showed.

The nationwide ethanol stock build coincided with data showing a rebound in domestic production, a decline in demand and the largest amount of ethanol imported since August 2013.

Compared to a year ago, total ethanol supplies are 4.8 million bbl, or 29.2%, higher.

The EIA data showed domestic production rising 6,000 barrels per day (bpd) to 930,000 bpd for the week profiled, bouncing off a nearly six-month low. Last week's output was up 2.0% versus a year earlier.

EIA data also showed the United States imported 53,000 bpd of ethanol last week, the first week since the week-ended Dec. 26, 2014, that ethanol imports have been reported, and the largest amount of U.S. ethanol imports since August 2013.

Blender inputs, a proxy for ethanol demand, declined 6,000 bpd to 879,000 bpd for the week-ended April 17, while up 3.0% year over year.

Implied demand for motor gasoline rose 271,000 bpd last week to 9.185 million bpd, 9.0% higher than the same week last year.



10-34-0 Leads Fertilizers Higher Again

Most retail fertilizer prices remain fairly steady as they have for months, according to retailers tracked by DTN for the second week of April 2015. The one exception would be 10-34-0, which has seen prices rise significantly over the last several months because of issues with the supply of an acid used to make the fertilizer.

Starter fertilizer is 6% more expensive compared to a month earlier and has an average price of $649 per ton.

Five of the remaining seven major fertilizers were higher in price compared to a month earlier, but these moves were fairly slight. MAP had an average price of $598/ton, potash $491/ton, anhydrous $711/ton, UAN28 $332/ton and UAN32 $370/ton.

Two fertilizers were lower compared to the previous month, but again neither was down by any consequence. DAP had an average price of $570/ton and urea $453/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.49/lb.N, anhydrous $0.43/lb.N, UAN28 $0.59/lb.N and UAN32 $0.58/lb.N.

One of the eight major fertilizers is now double digits higher in price compared to April 2014, all while commodity prices are significantly lower from a year ago. 10-34-0 is 24% higher compared to last year.

Two other fertilizers are slightly more expensive compared to a year earlier. Anhydrous is 4% more expensive while potash is 3% higher compared to a year earlier.

The remaining five nutrients are now lower compared to retail prices from a year ago. Both MAP and DAP are 3% less expensive, UAN28 is down 7%, UAN32 is now 8% less expensive and urea is 18% less expensive from a year ago.



Annual U.S. Wheat Crop Tour Strengthens Relationships with Japanese Executive Millers

Building mutual trust and long-term business relationships takes time and commitment. As a part of its market development activities, one important activity U.S. Wheat Associates (USW) employs to create stronger partnerships with overseas customers is to invite them to have a firsthand look at the U.S. wheat crop. That is what a team of six flour milling executives from Japan’s leading milling companies will do during travel to the Pacific Northwest April 30 to May 8, 2015.

“Japan imports large amounts of U.S. wheat so it is important for the Japanese flour milling industry to regularly exchange views and information with U.S. wheat organizations and businesses,” said Mr. Masaaki Kadota, executive director of Japan’s Flour Millers Association. “We really appreciate your efforts to support our needs as your customers.”

USW collaborated with the Montana Wheat and Barley Committee, Oregon Wheat Commission and Washington Grain Commission to organize and host this trade team.

The Oregon Wheat Growers League (OWGL) established the first overseas U.S. wheat export office in Tokyo in 1956 and in that same year, the first Japanese millers team visited the United States to learn about its markets. After it was established, USW continued the tradition and for well over a decade, this particular activity has become an annual trip for Japanese executive millers. According to Kadota — who has accompanied this team for many years — there is always something new to learn and discuss.

“There is nothing better than strengthening the mutual trust I have with those whom I meet each year,” said Kadota.

The team will make stops in Oregon, Washington and Montana. During meetings with wheat farmers, grain industry representatives and university researchers, the team will discuss the U.S. wheat supply and demand picture, including potential quality, availability and price. The team will also discuss current views on competitive markets, dietary trends and the role innovations in wheat breeding will have in balancing future world food supply demands with the need for less impact on the environment.

“This exchange of dialogue and information is essential to U.S. trade with Japan,” said USW West Coast Office Assistant Director Shawn Campbell. “When questions and concerns arise, we rely on the trust built during these activities to guide us toward decisions that have a positive impact for both U.S. wheat farmers and the Japanese milling industry.”



What You Need to Know About the Current Highly Pathogenic Avian Influenza Outbreaks
Dr. John Clifford, USDA Chief Veterinary Officer

Today I had a press call with our USDA partner, Dr. Alicia Fry from CDC and Dr. David Swayne of USDA’s Southeast Poultry Research Lab to help get out some important information about the avian influenza event currently occurring in the United States.

Since December 2014, USDA has confirmed cases of highly pathogenic avian influenza (HPAI) H5 in the Pacific, Central and Mississippi Flyways (migratory paths for birds). The disease has been found in wild birds, as well as in some backyard and commercial poultry flocks.

There are three important things that you need to know about this situation:

    Our food supply is safe. Food is safe because the United States has the strongest AI surveillance system in the world. We actively look for the disease, educate the public and producers on the most appropriate practices to ensure their health and safety, as well as provide compensation to affected producers to encourage disease reporting.

    The risk to humans is low. No human infections with these viruses have been detected, and the CDC considers the risk to people from these HPAI H5 infections in wild birds, backyard flocks, and commercial poultry to be low.

    USDA will continue to do everything it can to support states and producers. We are coordinating closely with State officials and other Federal departments on rigorous surveillance, reporting, and control efforts. At the same time, USDA will continue to work with Congress to ensure that we are able to provide a much-needed safety net to the poultry producers who are experiencing economic hardships as a result of losses due to the disease.

Along with industry, USDA and its Federal and State partners are responding quickly and decisively to these outbreaks. You can learn more about the situation and USDA’s response by listening to a recording of the press conference: http://www.usda.gov/documents/usda-cdc-media-call.mp3.

You too can help by continuing to practice good biosecurity if you own birds. All birds owners, whether commercial producers or backyard enthusiasts, should prevent contact between their birds and wild birds and report sick birds or unusual birds deaths to State/Federal officials, either through their state veterinarian or through USDA’s toll-free number at 1-866-536-7593.

Learn more about biosecurity for backyard flocks at http://healthybirds.aphis.usda.gov. More information about USDA avian influenza efforts is available at http://www.usda.gov/avian_influenza.html.



USDA Eyes Bird Flu Vaccine

(AP) -- As losses to poultry producers continue to climb from a deadly strain of bird flu, the U.S. Department of Agriculture is working on a potential vaccine in response to the current outbreak.

A pure "seed strain" would target the H5N2 virus -- which has already cost Midwest turkey and chicken producers more than 6.7 million birds since early March -- as well as some other highly pathogenic viruses in the H5 family that have been detected in other parts of North America. The USDA would then provide that seed strain to drug manufacturers if the agency ultimately decides the vaccine is necessary to stop avian influenza.

The process, though, is fraught with questions about which birds would get the vaccine, how it might affect exports and whether it'd be effective against the current strain, which continues to spread.

WHY PRODUCERS WANT A VACCINE
USDA officials have said the H5N2 virus could be a problem for the poultry industry for several years. The virus had already killed or led authorities to order the culling of nearly 2.3 million turkeys before it was confirmed Monday at an Iowa egg-laying operation with 3.8 million hens. And Tuesday, four more turkey farms with more than 425,000 birds total were added to the list.

There could be a resurgence this fall when the wild waterfowl that are believed to carry the virus fly south for the winter. Another concern is that it could spread to big poultry producing states in the East.

While government agencies and producers would much rather see tight biosecurity and other current strategies succeed, they want to have another tool available, said Dr. T.J. Myers, an associate deputy administrator for veterinary services with the USDA's Animal and Plant Health Inspection Service.

WHERE THE VACCINE STANDS
The USDA's Southeast Poultry Research Laboratory in Athens, Georgia, is developing the seed strain, which is essentially a pure virus sample that could be the foundation for producing an effective vaccine. The center's director, Dr. David Swayne, said it has already gone through a couple rounds of lab testing, and animal experiments will begin in early May to determine whether it's an effective strain to use. If those tests are successful and the USDA decides to put a vaccine into production, it would turn to the private sector to make it.

WHAT IT WOULD COST
Dr. John Clifford, the USDA's chief veterinary officer, said it's not clear how much a vaccine would add to the cost of producing birds but doesn't expect it would be much. It might be used mainly on more expensive birds such as those used for breeding, he said.

For turkey producers, the price of the vaccine could be minor compared to the cost of losing entire flocks, according to Steve Olson, executive director of the Minnesota Turkey Growers Association and the Chicken and Egg Association of Minnesota. But a vaccine might be too expensive for the broiler chicken industry, where profits per bird are small.

WHY USDA MIGHT DECIDE AGAINST A VACCINE
Introducing a vaccine raises a lot of questions, Myers said, including which poultry would get it, in what kind of settings, whether it would be effective in stopping the disease and potential negative effects on poultry exports.

James Sumner, president of the Georgia-based USA Poultry and Egg Export Council, said some countries might regard vaccine use as a reason to bar imports from the U.S. The concern is that the vaccine could mask any actual virus that poultry might be carrying, he said, because tests for the disease look for antibodies -- the same thing vaccines trigger a body to produce.

Dr. Kyoungjin Yoon, an avian influenza expert at Iowa State University, said human experience shows flu vaccines don't always match well with viruses in circulation. Vaccine-induced immunity could also slow the detection of outbreaks, Yoon said. One of the main symptoms is that flocks start dying off quickly.



As Pest Season Begins, Take Steps to Help Protect the Productivity of Your Livestock Operation

With normal to high insect pressure anticipated this spring and summer, experts at Bayer HealthCare LLC Animal Health suggest getting in front of those seasonal and year-round pest problems before they become an issue.

"When it comes to pests, the best offense is a good defense," says Larry Hawkins, DVM, Senior Technical Services Veterinarian at Bayer HealthCare Animal Health. "Our Defense Point System can provide a specific strategy to help protect your livestock operation from pests and the damage they can cause." 

This damage can include decreasing the productivity of your operation, transmitting disease, disrupting feeding and ultimately reducing animal weight gain.

The key to an effective pest management strategy is understanding the type of insect you are dealing with, its feeding habits, breeding areas and preferred resting spaces. This is true whether you have a beef, dairy, poultry or swine operation.

To do this, Dr. Hawkins recommends dividing a producer's entire operation into multiple treatment areas. These include:

    On-Animal – Animals are ground zero for pest damage. On-animal treatment targets pests that want to take blood meal from your livestock, such as horn flies, mites and ticks. On-animal treatments include ear tags, pour ons, on-animal sprays and dusts.

    Facility – Facility and pen premise treatments allow you to target pests in areas where your animals feed and rest. This creates a prime location for pests to pass from one animal to another. Treating your facilities can help reduce the number of pests bothering your livestock. For cattle and swine, these include baits and sprays. For poultry, they include sprays and dusts.

    Environment – Pests may use the areas beyond the immediate housing facilities to breed. Treating potential pest-breeding areas that surround your livestock buildings, horse stables and feed storage areas may play a significant role in reducing the pest populations. For cattle and swine, these treatments include baits, sprays and dusts. For poultry, these include sprays.

    Feed-Through – Several species of flies lay their eggs directly in manure. Feed-through insecticides kill fly larva as the eggs hatch, before they can mature and continue the cycle. The use of an oral larvicide can be a proactive effort in disrupting the fly's lifecycle.

"Bayer offers a comprehensive line of pest control products that are backed by science," says Bruce Brinkmeyer, Manager, Farm Hygiene Products at Bayer HealthCare Animal Health.

Bayer's line of pest control products covers a wide variety of insects and comes in multiple forms. For specific product recommendations by category, visit www.BayerLivestock.com.

In addition to selecting quality products, rotation can help minimize the development of resistance in insecticides as pests can develop reduced susceptibility to an active ingredient over time. To help prevent this, consider rotating to a product that uses a different mode of action (MOA) every year or so. An effective rotation strategy alternates between products from completely different MOA groups, not just between active ingredients from the same MOA group.

"Use the products that fit your management style, but be sure to keep your method of fly control active," Brinkmeyer says. "That will go a long way in bolstering your defenses and ensuring an effective pest control program."