Thursday May 14 Ag News

SECOND CASE OF HPAI CONFIRMED IN DIXON COUNTY

The Nebraska Department of Agriculture (NDA) in conjunction with the United States Department of Agriculture’s (USDA) Animal and Plant Health Inspection Service (APHIS) has confirmed the presence of a second case of highly pathogenic H5N2 avian influenza (HPAI) in a commercial layer flock in Dixon County.  The second farm (referred to as Dixon 2) is in close proximity to the initial farm (referred to as Dixon 1) identified Tuesday. Both farms are owned and operated by the same producer.

Dixon 2 is a flock of 1.8 million chickens.

“Having a second farm in Nebraska confirmed to have HPAI is unfortunate but not completely unexpected.  This follows the pattern we’ve seen in other states when it comes to the spread of the virus,” said NDA Director Ibach.  “NDA will continue to use all the resources at our disposal, in coordination with our federal and state agency counterparts, to manage a quick and effective response.”

According to Ibach, both farms are under quarantine, and the birds on both properties will be depopulated. NDA is working with Nebraska Department of Environmental Quality to ensure proper disposal of dead birds. A perimeter has been established around Dixon 2, and as is the USDA protocol, NDA will be visiting all locations within a 6.2 mile radius of the farm that have poultry to conduct testing. Due to the proximity of Dixon 2 to Dixon 1, the 6.2 mile radius overlaps significantly.

Gov. Pete Ricketts has issued a state emergency declaration to provide NDA and other state agencies with appropriate resources to address the HPAI situation.

“We continue to receive excellent support and assistance from federal, state and local officials. This cooperation is essential to our response efforts,” Ibach said.

The Centers for Disease Control considers the risk to people from HPAI H5 infections to be low.  Proper handling and cooking of poultry and eggs to an internal temperature of 165 degrees kills the virus.  Eggs from both facilities are processed and go through pasteurization, eliminating product consumption risk.  Both farms are egg laying facilities and therefore the chickens are not consumed.   

Ibach is asking Nebraska poultry producers, large and small, to follow strict biosecurity measures on their farms and to monitor their flocks for symptoms of the virus and notify NDA immediately if they suspect any problems. All bird owners, whether commercial producers or backyard enthusiasts, should prevent contact between their birds and wild birds, and report sick birds or unusual bird deaths to state/federal officials, either through NDA by calling 877-800-4080 or through USDA’s toll-free number at 1-866-536-7593.

As part of the existing USDA avian influenza response plans, federal and state partners as well as industry are following these five basic steps: 1) Quarantine – restricting movement of poultry and poultry-moving equipment into and out of the control area; 2) Eradicate – humanely euthanizing the affected flock(s); 3) Monitor region – testing wild and domestic birds in a broad area around the quarantine area; 4)  Disinfect – kills the virus in the affected flock locations; and 5) Test – confirming that the poultry farm is AI virus-free.

Additional information on HPAI can be found online at www.nda.nebraska.gov. Information is available for producers and the general public.



TWO PROBABLE CASES OF HPAI IN SIOUX AND PLYMOUTH COUNTIES

The Iowa Department of Agriculture and Land Stewardship Thursday responded to two probable cases of highly pathogenic avian influenza (HPAI) in Sioux and Plymouth counties.  With the new announcements, Iowa now has 52 cases of the disease in the state. The Department has quarantined the premises and once the presence of the disease is confirmed, all birds on the property will be humanely euthanized to prevent the spread of the disease.

    Sioux 12 – A pullet farm that has experienced increased mortality.  An estimate on the number of birds at the site is still pending.  Initial testing showed it positive for H5 avian influenza.  Additional confirmatory testing is pending from the APHIS National Veterinary Services Laboratories (NVSL) in Ames.

    Plymouth 1 – A pullet farm that has experienced increased mortality.  An estimate on the number of birds at the site is still pending.  Initial testing showed it positive for H5 avian influenza.  Additional confirmatory testing is pending from the APHIS National Veterinary Services Laboratories (NVSL) in Ames.

On Wednesday the Iowa Department of Agriculture and Land Stewardship responded to one probable cases of highly pathogenic avian influenza (HPAI) at a commercial laying operation in Sioux County.  The Department has quarantined the premises and once the presence of the disease is confirmed, all birds on the property will be humanely euthanized to prevent the spread of the disease.

Sioux 11 – A commercial laying operation with an estimated 238,000 birds that has experienced increased mortality.  Initial testing showed it positive for H5 avian influenza.  Additional confirmatory testing is pending from the APHIS National Veterinary Services Laboratories (NVSL) in Ames.

    As the Department receives final confirmations of the disease updated information will be posted to the Iowa Department of Agriculture and Land Stewardship’s website at www.iowaagriculture.gov/avianinfluenza.asp.



Bird Flu Hits SD Chicken Farm

(AP) -- An eastern South Dakota farm with 1.3 million egg-laying chickens is the first in the chicken-production business in the state to be infected with a deadly flu virus despite efforts to prevent it, state and farm officials said Thursday.

Flandreau-based Dakota Layers, which accounts for nearly half of the state's almost 2.7 million egg-laying chickens, reached out to the state veterinarian Wednesday after it noticed an unusual number of dead birds in one of its nine barns.

A South Dakota State University lab confirmed the presence of the highly pathogenic H5 avian influenza virus. Officials hadn't confirmed yet Thursday whether it was the H5N2 strain. If so, then the virus will have led to the deaths of more than 33 million chickens and turkeys in the Midwest, primarily at farms in neighboring Minnesota and Iowa.

South Dakota State Veterinarian Dustin Oedekoven said crews would begin euthanizing the chickens after they determined how best to handle the largest outbreak the state has seen thus far.

Dakota Layers' Chief Executive Officer Scott Ramsdell said in a statement Thursday that Dakota Layers had taken "extensive biosecurity measures" over the last two months to prevent an outbreak in their barns.

"Unfortunately, as many poultry farms are discovering, even our extraordinary measures proved ineffective in preventing the spread of avian influenza into one of our barns," Ramsdell said.

Dakota Layers produces more than 90,000 dozens of eggs daily and ships about 70 percent of its eggs to California. Agriculture officials have stressed there is no danger to the supply and very low risk to humans.

Oedekoven said it was disappointing to see a large-scale operation lose it birds after taking all the appropriate precautions.

"It's a big loss, it's a big hit," he said.

Officials from the U.S. Department of Agriculture were on site Thursday to evaluate the operation and work with the state in figuring out how to proceed. Bird flu has already been found at eight turkey farms in South Dakota -- affecting almost 500,000 birds -- but none of this magnitude.

The hens would likely be humanely euthanized with carbon dioxide gas, Oedekoven said, but the state hasn't yet decided how to dispose of the carcasses. Officials have primarily been burying turkey carcasses in addition to composting them.

"It's not pleasant work, but we've had great cooperation with our industry and we hope they can make it through this," Oedekoven said. "We'll proceed as best we can and continue to hope for the end of this plague."



Agricultural Credit Conditions Weaken
Nathan Kauffman, Assistant Vice President and Omaha Branch Executive , Kansas City Federal Reserve

Credit conditions in the Federal Reserve’s Tenth District weakened as farm income declined further in the first quarter of 2015. Persistently low crop prices and high input costs reduced profit margins and increased concerns about future loan repayment capacity. Funds were available to meet historically high loan demand, but loan repayment rates dropped considerably. Although profit margins in the livestock industry have remained stable, most bankers do not expect farm income or credit conditions to improve in the next three months. Reduced incomes in the crop sector trimmed the value of nonirrigated and irrigated cropland, but steady profitability in the cattle sector supported higher prices for ranchland.

Farm Income
Farm income continued to decline in the first quarter of 2015. Reduced supplies from winter wheat kill and persistently low crop prices have tightened revenues for crop producers. Despite poor winter wheat conditions in parts of the Tenth District that may limit production, wheat prices have remained around 30 percent less than a year ago. Similarly, as of the end of April, corn prices were about 27 percent less than the previous year. Moreover, since July 2014, the monthly average price of corn has been less than $4.00 per bushel, generally below what some bankers noted is the breakeven cost of production for corn producers. Although many livestock operators have profited from lower feed grain costs, crop production costs have remained relatively high.

Weaker profit margins and reduced cash flows caused financial conditions to weaken for many crop producers in the District. In fact, more than 60 percent of survey respondents reported a modest deterioration from a year ago in the financial conditions of crop producers. In contrast, nearly half of respondents indicated that financial conditions have improved over the past year for borrowers that rely on crops as inputs, such as cattle, hog, poultry and dairy producers.

On a more regional level, farm income declined in all District states except Oklahoma. In Oklahoma, farm income has steadily improved over the last three years due to revenue from mineral rights and cattle production but remained unchanged in the first quarter of 2015. Although farm income held steady in Oklahoma, a greater portion of agricultural lenders reported farm income was lower than a year ago in Kansas, western Missouri, Nebraska and the Mountain States (Colorado, northern New Mexico and Wyoming).

Strains on the farm economy have begun to affect the overall economic outlook in some states. Through 2014, growth in per capita personal income was notably smaller in states most heavily concentrated in crop production. For example, per capita personal income expanded less than 1.0 percent in Iowa and South Dakota and declined slightly in Nebraska. These growth rates were significantly weaker than the national average of 3.9 percent from 2013 to 2014. Ninety-four percent of survey respondents expect farm income to remain the same or decline further in the next three months. Additional declines in farm income could continue to create economic challenges in states heavily dependent on crops.

Farm Loan Demand and Credit Conditions
The continued decline in farm income boosted demand for new loans as well as renewals and extensions on existing loans. During years of historically high farm income, some farmers were able to self-finance. However, as working capital has declined due to high production costs and lower crop revenues, more producers have needed external financing to pay for operating expenses and capital purchases. Loan demand was also supported by livestock loans on feeder cattle, which still command historically high prices. In fact, demand for non-real estate farm loans increased across all District states in the first quarter and is expected to remain elevated over the next three months. If expectations are met, the survey measure of loan demand would be the highest since the survey began in 1980.

Alongside reduced farm income and higher loan demand, loan repayment rates have declined significantly. More than 26 percent of survey respondents reported that loan repayment rates declined in the first quarter of 2015, compared to 17 percent in the previous quarter. Moreover, the expectation for loan repayment rates in the next three months was the lowest since 2003, and, if expectations hold, could be the first time in several years that repayment rates decline in all District states. 

The deterioration in loan repayment rates has not yet affected fund availability, which increased slightly in the first quarter. Of banks responding to the survey, 98.8 percent indicated that no loans were reduced or refused due to a shortage of funds. Still, collateral requirements remained the same or increased slightly for most farm loans throughout the District due to concerns over reduced working capital and annual increases in carry-over debt. Bankers also expressed concerns over increased debt-to-asset ratios, especially for younger farmers with high borrowing needs.

Farmland Values
Amid further declines in farm income, bankers reported that Tenth District cropland values edged down in the first quarter. In fact, irrigated cropland values declined in the first quarter, falling slightly below year-ago levels for the first time in more than five years. The value of nonirrigated cropland also declined, but was holding just above year-ago levels. Similar to previous surveys, Nebraska posted some of the largest price declines while cropland values in Oklahoma and the Mountain States remained the most resilient. Looking ahead, very few bankers expect price appreciation and more than a quarter of survey respondents expect cropland values to decline further in the next three months. Still, a majority of bankers anticipates that cropland values will hold steady, partly due to a limited supply of farms for sale.

Tenth District ranchland values generally held firm in the first quarter of 2015 and year-over-year gains remained strong. In contrast to the crop sector, where lower incomes were starting to place downward pressure on cropland values, bankers reported profits in the cattle sector were continuing to support high ranchland values. Ranchland in Nebraska and the Mountain States appreciated the most during the past year with somewhat smaller gains reported in Kansas and Oklahoma, due in part to dry pasture conditions. Looking ahead, bankers expect continued strength in the cattle sector and increasing cattle inventories will sustain demand, and prices, for ranchland.

Conclusion
Low crop prices placed added stress on net farm incomes and contributed to weaker credit conditions in the first quarter. As farm incomes fell, cropland values moderated and more producers depended on financing to cover operating expenses. Sufficient funds were available to meet increases in loan demand, but declines in repayment rates as well as slight increases in carry-over debt, collateral requirements and loan renewals and extensions suggest that credit quality may become more of a concern moving forward.



USDA Invests $6.5 Million to Help Conserve Water, Improve Water Quality in Ogallala Aquifer Region

Agriculture Secretary Tom Vilsack announced today that the U.S. Department of Agriculture (USDA) is investing $6.5 million in the Ogallala Aquifer region this year to help farmers and ranchers conserve billions of gallons of water and improve water quality. Funding will be targeted to seven priority areas to support their primary water source and strengthen rural economies.

"This funding assists conservationists and agricultural producers in planning and implementing conservation practices that conserve water and improve water quality," said Vilsack. "This work not only expands the viability of the Ogallala Aquifer but also helps producers across the Great Plains strengthen their agricultural operations."

Underlying the Great Plains in eight states, the Ogallala supports nearly one-fifth of the wheat, corn, cotton and cattle produced in the United States. It has long been the main water supply for the High Plains' population and is being depleted at an unsustainable rate. The reservoir was created more than a million years ago through geologic action and covers about 174,000 square miles; mainly in Nebraska, Kansas, Oklahoma, and Texas (also known as the High Plains). The aquifer also covers part of South Dakota, Wyoming, Colorado, and New Mexico.

Through the Ogallala Aquifer Initiative (OAI), USDA's Natural Resources Conservation Service (NRCS) is directing funding in fiscal 2015 to support targeted, local efforts to improve the quality and availability of this vital water supply. This year's work is planned in seven priority areas in five states and will continue for up to four years. It will conserve billions of gallons of water per year, extending the viability of the aquifer for multiple uses. This conservation investment builds on $66 million that NRCS has invested through OAI since 2011, which helped farmers and ranchers conserve water on more than 325,000 acres. The Secretary noted that much of the funding invested by USDA has been matched or supplemented by individual producers.

The fiscal 2015 priority areas in Nebraska include:
  - Central Platte NRD - Parts of Dawson, Custer, Buffalo, Hall, Howard, Nance, Merrick, Hamilton, Platte, Polk and Frontier counties.  Partners include the Central Platte Natural Resources District, Nebraska Association of Resources Districts, Nebraska Department of Natural Resources.

  - Little Blue NRD - Parts of Adams, Clay, Fillmore, Nuckolls, Thayer and Webster counties.  Partners include the Little Blue Natural Resources District, University of Nebraska-Lincoln Extension.

  - Upper Big Blue NRD - Parts of Adams, Clay, Hamilton, Steward and York counties.  USDA's partner in this project is the Upper Big Blue Natural Resources District.

"Water is a precious resource, and the Ogallala Aquifer Initiative helps our farmers and ranchers use it wisely," NRCS Chief Jason Weller. "This is especially important in a place like the Ogallala, where drought conditions have prevailed in recent years. We know we can't change the weather, but we can help producers be ready for it."

Many western states were affected by a historic drought earlier in the decade, and that drought continues in areas including California and the southwest. NRCS works with producers to provide innovative, field-based conservation technologies and approaches, leading to improvements like enhancing soil's ability to hold water, evaluating irrigation water use and installing grazing systems that are more tolerant to drought.



NEBRASKA ON-FARM RESEARCH NETWORK LAUNCHES MOBILE APP

Resources from the Nebraska On-Farm Research Network are available through a new app for iPhone and Android users.

The app enables users to create treatment strips in their fields and develop a map of their research. Once the field is created, the user can enter information on insects, diseases, weeds, irrigation totals and other key observations, including photos. At the conclusion of the research trial, the user inputs the harvest results and exports them to a Microsoft Excel file. The data collected will be beneficial to both the app user and those evaluating the results within the research network.

"This app is the first known smartphone tool available for growers to easily develop their own infield, on-farm research trials," said Keith Glewen, Nebraska Extension educator.

The network is an opportunity for crop producers and UNL faculty to work closely and generate unbiased, research-based answers at the field level. Participants can collaborate with faculty to design and carry out projects and analyze the results.

"The power of on-farm research is being able to sort out inherent field and environmental variability to determine if differences are the result of the treatment being studied," said Laura Thompson, extension educator. "This app makes it simple to set up and visualize a well-designed study that will address questions growers are interested in.

"The introduction of this app is just one more way we are working with on-farm research participants to collect information that is important to them and to farmers all across the state."

The app also allows youth to become engaged with the scientific aspects of on-farm research.

The network is free to join. The mission of the Nebraska On-Farm Research Network is to assist growers in increasing production, reducing inputs and maintaining or improving profits. To learn more about the network and the smartphone app, visit http://cropwatch.unl.edu/farmresearch.



Seaboard Foods and Triumph Foods announce plans to build new pork processing plant

Seaboard Foods and Triumph Foods announced today the formation of a joint venture, with equal ownership, to construct a new pork processing facility in Sioux City, Iowa, with site work expected to begin this summer and construction completed by July 2017.

The plant is expected to process about 3 million market hogs annually operating a single shift and employ approximately 1,100 persons, including approximately 200 salaried positions and 900 hourly production positions. The plant will be built on property in the Bridgeport West Industrial Park in Sioux City, located north of the Sioux Gateway Airport along the Missouri River.

A full line of fresh pork products for international, retail, food service, and further processing markets will be produced. Seaboard Foods will market and sell the pork produced by the plant. Currently, Seaboard Foods markets and sells fresh pork processed by Triumph Foods' St. Joseph, Mo., and Seaboard Foods' Guymon, Okla., plants to domestic markets under the PrairieFresh® Premium Pork brand and international markets under the Seaboard Farms® and St. Joe Pork® brands.

"Today's announcement marks another step in strengthening our business partnership and position as a leading integrated food system providing customers domestically and throughout the world with premium pork focused on the highest standards for food safety and pork quality consistency," says Terry Holton, Seaboard Foods president and CEO. "We look forward to the new opportunities the plant will bring to our customers as well as the Sioux City region."

Mark Campbell, Triumph Foods CEO, adds, "When we started inquiring about expanding our business, we recognized the strong commitment and willingness to welcome Triumph Foods and Seaboard Foods to the city. Local leaders have built a business environment poised to bring growth to the region. We look forward to the new pork processing facility being part of that growth, and its staff being actively involved in the Sioux City community."

Triumph Foods is owned exclusively by pork producers and Seaboard Foods is a wholly-owned subsidiary of Seaboard Corporation (NYSE MKT: "SEB"). Triumph Foods and Seaboard Foods are integrated food companies, with farm operations and pork processing, controlling the entire process every step of the way from before the farm to the plate. Together, Seaboard Foods and Triumph Foods have aligned their farm operations and pork processing, including genetics, pig nutrition, animal care, food safety and product quality, to ensure consistent, wholesome premium pork products to its customers. If the two companies were considered as a single combined entity, they would comprise the second largest hog producer, a top 5 U.S. pork processor, and a leading exporter of U.S. pork.

In addition to the new plant, Seaboard Foods and Triumph Foods own Daily's® Premium Meats that has bacon processing plants in Salt Lake City and Missoula, Mont., and a third plant under construction in St. Joseph, Mo. Daily's markets and sells a variety of processed pork items from signature honey cured bacon to applewood smoked bacon to naturally smoked hams to breakfast sausages. The new pork processing plant will supply raw materials for Daily's operations in addition to the Guymon and St. Joseph plants.

Sioux City was selected because of the existence of a shovel-ready industrial site location, transportation infrastructure, availability of market hogs in the region, and the pro-business environment city leaders, the Iowa Economic Development Authority and the state of Iowa demonstrated throughout the site selection process.

Both Seaboard Foods and Triumph Foods share a strong commitment to stewardship and community involvement. Focused on being good neighbors, the pork processing facility will include a modern architecture design, customized landscaping for beautification and buffering from neighbors, and modern odor abatement technologies, as well as other environmentally friendly design features. Also, Triumph Foods and Seaboard Foods have made a commitment for the plant to support local civic and charitable organizations and community events.



Senate Votes to Debate Trade Promotion Authority
Steve Nelson, Nebraska Farm Bureau President

“We are pleased the U.S. Senate has come to an agreement on the need to begin debate on Trade Promotion Authority (TPA). As we have stated on many occasions, passage of TPA is critical to Nebraska’s farm and ranch families and to Nebraska’s overall economy.”

“It is our hope the Senate will take swift action to advance the TPA legislation. The future of agriculture will depend heavily on the ability of the U.S. to be a part of key trade agreements such as the Trans-Pacific Partnership and the Trans-Atlantic Trade and Investment Partnership that are already in the negotiation stage. The passage of TPA is instrumental in demonstrating the U.S. commitment to being a part of these vital trade agreements.”



Nebraska Corn Applauds Nebraska Congressional Leaders for Support of E15 Legislation

The Nebraska Corn Growers Association and Nebraska Corn Board would like to thank Senator Deb Fischer for co-sponsoring and Representative Adrian Smith for introducing a bill to expand the volatility waiver for blends of American Ethanol up to 15 percent (E15), ultimately increasing consumers' access to higher blends of American Ethanol year-round.

"We appreciate Senator Fischer and Representative Smith for their continued efforts to support America’s ethanol industry,” said Larry Mussack, farmer from Decatur, Nebraska and president of the Nebraska Corn Growers Association.  “Their joint effort on the E15 bill not only supports the market for ethanol producers but also expands consumer choice at the pump.”

“From reducing our dependence on foreign oil, to expanding our use of renewable fuels, to improving the air we breathe, there are many benefits to expanding the volatility waiver for E15,” said Tim Scheer, farmer from St. Paul, Nebraska and chairman of the Nebraska Corn Board. “Passing this legislation will ensure that consumers have access to energy that is clean, renewable, and American-grown.”

Reid Vapor Pressure measures the evaporation rate of gasoline. Under current regulations, summertime volatility restrictions are in place from June 1 through September 15, but E10 receives a volatility waiver. This legislation would extend the same waiver to E15 blends. Similar legislation was introduced in the House of Representatives in April.



NDA HOSTS UGANDAN VISITORS WITH FOCUS ON GRAINS

The Nebraska Department of Agriculture (NDA) hosted representatives this week from the Uganda Ministry of Agriculture. NDA Director Greg Ibach said the visit focused on potential opportunities between Nebraska and Uganda in the areas of crop preservation techniques and food processing and grain storage equipment.

Okaasai Opolot, director of Crop Resources for the Uganda Ministry of Agriculture, and Patience Rwamigisa, personal aide to the Uganda Minister of Agriculture, met with Director Ibach and State Senator Jerry Johnson, the chair of the Nebraska Legislature’s Agriculture Committee. The Ugandan delegation also toured and met with key staff at the University of Nebraska Food Processing Center and Behlen Manufacturing in Columbus. They also visited a large grain storage facility in Oakland.

“This visit is about building relationships and sharing knowledge in a way that has the potential to lead to agricultural sales,” said Ibach. “The Uganda Ministry of Agriculture wants to tap into Nebraska’s expertise in grain storage and grain processing for food products. These types of partnerships continue to be crucial in our efforts to create and build foreign markets. Being able to have face to face meetings goes a long way toward achieving our goals of growing Nebraska’s agriculture industry.”

The visit lays the foundation for a Memorandum of Understanding between the developing East African country and Nebraska, Ibach said.

“With a population of over 40 million people, it is an important market opportunity,” he said.



National US Drought Summary for May 12, 2015
National Drought Mitigation Center at the University of Nebraska-Lincoln

During the current U.S. Drought Monitor week, a series of storm systems moved out of the southwest and ejected onto the plains. With the Gulf of Mexico wide open, there has been ample atmospheric moisture feeding into these storms. Severe weather and record-setting rains were widespread on the front end, while areas on the backside of these storms recorded several feet of wet snow. The greatest precipitation amounts were recorded in Oklahoma, Arkansas, and north Texas, with widespread areas of 8-10 inches of rain. Portions of southeast Nebraska also recorded up to 10 inches of rain, with a swath of 6-8 inches from north central Kansas into southeast Nebraska. Many areas in the western half of the U.S. received 200-400 percent of normal precipitation for the week. Tropical storm Ana impacted portions of the southeast where 3-6 inches of rain fell along the coastal Carolinas. Temperatures for the week were above normal over the eastern United States with departures of 5-10 degrees above normal while the western half was cooler than normal with departures of 5-10 degrees below normal.

GREAT PLAINS:  Most of the region had below-normal temperatures for the week, with the greatest departures (10 degrees or more) over portions of eastern Wyoming, western Nebraska and western South Dakota. Areas of eastern Kansas, eastern Oklahoma, and most of Texas were above normal for temperatures, with departures of 4-6 degrees common. The big story for the region was the torrential rains and severe weather. The widespread 2-4 inch readings across South Dakota resulted in 1-category improvement to the D2 and D1 conditions in the state. Much of the precipitation which did occur was snow. Snow amounts ranged from 12 inches in the plains of South Dakota to 16 inches in the Black Hills while portions of western Nebraska had up to 24 inches of snow. The improvements extended into North Dakota where D1 was improved in the southeast part of the state, while D0 was expanded over the northern and northwest portions of the state. There was a slight trimming of D1 and D0 conditions over Nebraska where the rains were enough to show improvements. The recent rains allowed for a large-scale 1-category improvement across southern Kansas and parts of southwest and west central Kansas. A small area of D2 was introduced into northwest Kansas where the recent rains have not been as substantial and conditions are worsening. In Oklahoma and Texas, large-scale 1-2 category improvements were made after copious rains of 6-10 inches or more were recorded. Most areas in Texas and Oklahoma were good out to 24 months, but some residual dryness was still evident at 36 months. D4 has been completely eliminated from Texas and Oklahoma for the first time since July 2012. With the short-term indicators all showing drought-free conditions, a substantial shift of the long-term delineation line to the north was made this week as only long-term issues are impacting the southern plains.

UPPER MIDWEST & GREAT PLAINS:  Warmer than normal temperatures dominated the entire region outside of Minnesota. Temperatures were 9-12 degrees above normal over the eastern Corn Belt and 3-6 degrees above normal over the rest of the region. Minnesota was cool with temperatures 3-6 degrees below normal. Precipitation was below normal over the eastern portions of the region while portions of Missouri, Illinois, Michigan, western Wisconsin, and Minnesota were up to 4 inches above normal precipitation for the week. Changes made this week included an expansion of D0 across northern Ohio, northern Indiana and northern Michigan. In response to recent rains, some improvement was shown to the D0 and D1 regions of northwest Iowa as well as a full category improvement over all of western Minnesota.

LOOKING AHEAD:  Over the next 5-7 days, temperatures over the eastern United States are anticipated to be above normal with departures of up to 6 degrees. Most of the rest of the United States will have temperatures at or below normal, with the greatest departures (up to 9 degrees below normal) over the west coast. An active pattern looks to continue over much of the plains states and into the southeast. Precipitation forecast amounts of more than 6 inches are being projected over east Texas and up to 3 inches through the Dakotas. The latest 7-day projections have precipitation chances over almost the entire country.

The 6-10 day outlooks show the likelihood of above-normal temperatures over the southeast, Pacific Northwest, and Alaska while there are above-normal chances of temperatures being below normal through the plains, Midwest and southwest. There are below-normal chances of precipitation over the upper Midwest and Great Lakes regions. A good portion of the United States has above-normal chances of seeing precipitation above normal, with the best chances over the southeast and Great Basin.



Updated ISU Resources for Determining Beef Feedlot Facility Needs

As the beef feedlot industry in Iowa continues to grow and improve, some producers are considering their options for expanding or adding new feedlot facilities. All alternatives have advantages and disadvantages, and making the right choices can favorably help an operation’s bottom line. That’s why Iowa Beef Center and Iowa State University Extension and Outreach completely revised the Beef Feedlot Systems Manual.beef facility

Russ Euken, beef specialist with Iowa State University Extension and Outreach, led the revision effort on the manual which describes and compares different types of feedlot facilities: open lots, open lots with shelter, solid floor bedded confinements and slatted floor confinement buildings. He said the manual is designed to help producers make investment decisions based on these types of facilities.

“The manual has updated investment and operating costs for different types of facilities, and includes estimated performance and manure values,” Euken said. “A calculated cost of gain for each facility type is provided, and environmental stewardship and regulations are also discussed in the manual.”

The manual is available at no charge as a 36-page PDF download on the Iowa Beef Center feedlot website www.iowabeefcenter.org/feedlot.html and from the Extension Online Store at https://store.extension.iastate.edu/. Print versions of the manual are available for purchase from both websites.

Because actual facility costs can vary from those used in the manual, Euken and others also developed a spreadsheet-based calculator that allows users to enter their own costs and performance assumptions for making facility decisions.

“In addition to entering their own costs and performance assumptions, users can explore financing alternatives for facilities,” Euken explained. “The calculator will provide a cost of gain calculation for each type of facility entered, as well as an income statement and financial efficiency measures.”

The calculator is available as a free download from the Iowa Beef Center following registration. Complete the registration form found on the IBC feedlot Web page under Facilities, then Feedlot Facilities and the Environment.

For more information on the revised manual, new calculator or feedlot facilities in general, contact any of the ISU Extension and Outreach beef specialists.



Informa Boosts Soybean Acres to 87.2 MA

Private analytical firm Informa Economics thinks farmers will plant 87.2 million acres of soybeans this spring, 2.55 million more than USDA forecast in its March Prospective Plantings report.

UDSA last forecast that farmers will plant 84.6 million acres of soybeans. Informa argues in its latest acreage report that its survey of farmers in early March showed a greater appetite for soybeans in the Western Corn Belt. It sees North Dakota planting 450,000 more acres, Kansas planting 400,000 more acres and Nebraska and Minnesota each planting an additional 300,000.

Informa pegged U.S. corn acres at 88.7 million, down 462,000 from USDA's report in March. Most of the decline is from states in the eastern reaches of the Corn Belt that experienced a wet, slow planting season. Informa does see increased acreage in the Dakotas making up for some of the losses in the Eastern Corn Belt.

Using an estimated national average yield of 166.4 bpa, Informa thinks production could come in around 13.55 billion bushels.

As for wheat, Informa sees higher spring and durum planted acreage than USDA forecast last fall. Spring wheat acreage is likely to total 13.2 million, up 250,000 from USDA's March estimate. Durum acreage is expected to increase to 1.98 million acres.

Informa also expects cotton acreage to decline from USDA's March estimates. It's now calling for 9.3 million acres, down 215,000, with the bulk of reduction expected in Texas.



ASA’s Wilkins Talks TPA at Critical Time for Trade in Washington

American Soybean Association (ASA) First Vice President Richard Wilkins took part in two separate trade briefings in Washington today as the association ramps up its pressure on Congress to pass legislation that would grant trade promotion authority to the White House. Wilkins, who farms in Greenwood, Del., comes to Washington as a bill to extend TPA to the Obama Administration is projected to come to the floor Thursday. In his comments, Wilkins expressed optimism at the bill’s progress in the Senate.

“ASA is pleased to see the Senate move toward a vote on TPA. Trade is a critically important an issue for soybean farmers, and trade promotion authority is one of the top priorities for ASA in the 114th Congress, so we'll continue to push for passage of the Bipartisan Congressional Trade Priorities and Accountability Act,” Wilkins said. “The passage of the bill by the Senate Finance Committee and the House Ways and Means Committee shows that there is support on both sides of the aisle to get a deal done, and we’ve already seen both parties come together to address their differences. That signals, to us at least, that we’re making progress.”

In comments during a discussion on trade with Agriculture Secretary Tom Vilsack, followed by a press conference organized by Sen. John Thune of South Dakota, Senate Agriculture Committee Chairman Pat Roberts of Kansas, and Sens. Steve Daines of Montana and Cory Gardner of Colorado, Wilkins pointed to the necessity of TPA, also known as fast-track authority to quickly and effectively negotiating and enacting new agreements.

“We can’t conclude agreements expeditiously without Trade Promotion Authority. In the immediate term, this means the Trans-Pacific Partnership with our partners along the Pacific Rim. In the future, it means agreements with Europe and a broad range of new partners,” said Wilkins. “The bill gives USTR the ability to get the best deal possible for American farmers, and it provides Congress the oversight it needs to ensure each agreement works for everyone.”

Wilkins also highlighted the significant role global trade plays in the continued growth of the soybean industry in the U.S. Soybeans and soy products are the most valuable U.S. agricultural export, with 2014 exports of roughly $30.5 billion in soybeans, soybean meal and soybean oil. Between 2000 and 2010, the value of U.S. oilseed and product exports more than doubled, from $9 billion to over $20 billion.

“TPA is critical for soybean farmers because new trade agreements expand market access and help American soybean farmers as we look to maintain our position at the vanguard of world agricultural trade,” Wilkins said.



NCGA On Trade Promotion Authority Bill: Time For Congress To Step Up

Today the United States Senate voted to advance H.R. 1314, the Bipartisan Congressional Trade Priorities and Accountability Act of 2015 (TPA-2015). A final vote is expected to take place next week.

National Corn Growers Association President Chip Bowling issued the following statement:

“Thank you to the bipartisan group of senators who voted to take up Trade Promotion Authority legislation. Trade is essential to the livelihoods of American farmers, as well as the one million people whose jobs depend on agricultural trade. TPA legislation is critical to removing trade barriers, expanding our access to global markets, and ensuring farmers get the best possible deal in trade agreements.

“American farmers are stepping up to meet the growing demand for our products abroad. Now we’re asking Congress to step up and pass Trade Promotion Authority as quickly as possible.”



Monopolies, Reform Policies, MTBE and U.S. Ethanol Exports
Ashley Kongs, U.S. Grains Council Manager of Ethanol Export Programs

This week, the U.S. Grains Council (USGC) and its partners, the Renewable Fuels Association (RFA), Growth Energy and U.S. Department of Agriculture's (USDA's) Foreign Agriculture Service (FAS), are conducting a mission to Mexico to explore the potential ethanol market in that country. This comes on the heels of Pemex’s announcement earlier this year that it would invest 880 million pesos ($58 million USD) in infrastructure upgrades to handle and blend ethanol into gasoline in Mexico. Pemex holds a monopoly on Mexico’s gasoline market.

Mexico has been considering domestically-produced ethanol from sugarcane and sorghum since 2007 as a potential oxygenate to blend with gasoline. However, in the past, Pemex could not source ethanol at a price competitive with methyl tertiary butyl ether (MTBE). Currently, Mexico is one of the world’s largest markets for MTBE, which is now banned in many countries due to environmental concerns.

While these impacts were previously less critical, reforms in Mexico’s energy policy are changing the picture. The reform will eliminate Pemex’s monopoly starting in 2017. In addition, the reform also requires that in 2018, gasoline and diesel prices will no longer by set by the government. This mean in two to three years’ time, Pemex will need to be competitive in the international marketplace. In March, Pemex announced its plan to introduce its first-ever blend of gasoline mixed with ethanol.

So far, Pemex has awarded six contracts to local ethanol plants, including one the USGC mission visited this week. Under Mexican law, these plants are prohibited from the domestic production of corn-based ethanol, but it is clear that domestic sugarcane production can only meet a portion of the ethanol fuel supply potential in Mexico.

This could create a potential for U.S. exports of ethanol to the market, which under the North American Free Trade Agreement (NAFTA) should have no tariffs. However, U.S. ethanol exports to Mexico will only occur if they are economically competitive and will require an incentive to the ethanol blender and/or gasoline distributor to change the existing fuel distribution system in favor of using ethanol.

The USGC mission members included Greg Krissek of Kansas Corn Commission, Kelly Davis of RFA, Steve Bleyl of Green Plains Renewable Energy, Inc., Brian Healy of USDA-FAS, Julio Hernandez of USGC, Javier Chavez of USGC and Ashley Kongs of USGC. In addition to the Mexican ethanol plants, the team also visited biofuels and energy policy experts, energy and petroleum industries, and related public and private institutes.



Jordan Receives U.S. Wheat

Early this week USDA Secretary Vilsack signed an agreement with the Jordan Minister of Planning and International Cooperation, Imad Fakhoury, that 100,000 tons of wheat will be donated to Jordan to help feed the 600,000 Syrian refugees. The wheat, valued at about $25 million, will also help strengthen Jordan’s agriculture sector. This is the third and largest wheat donation to help these refugees, who are fleeing their homeland due to war. On the donation Secretary Vilsack said, "I think it's an important message that we're sending of America's willingness to help in the face of a humanitarian crisis that Jordan is now confronting."



Argentina Expects Record Soybean Crop

With credit hard to come by and margins tight, Argentine farmers cut back investments in their soybean crop as far as they dared in 2014-15.

It left them susceptible to bad weather, but they needn't have worried. The season ran almost perfectly with an average of over 30 inches of rain falling across the main grain regions between September and March.

With the harvest now three-quarters complete, a record crop of as much as 60 million metric tons appears assured, up around 5% on last year.

"The crop has exceeded all expectations. We have extremely strong production," Christian Russo, crop analyst at the Rosario Cereals Exchange.  He said first-crop average yields of 64 bushels per acre, according to the Rosario exchange, point to a record year. 



USDA Announces Funding to Assist with Organic Certification Costs

The U.S. Department of Agriculture's (USDA) Agricultural Marketing Service (AMS) announced today that approximately $11.9 million in organic certification assistance is available through state departments of agriculture to make organic certification more affordable for organic producers and handlers across the country.

"The organic industry saw record growth in 2014, accounting for over $39 billion in retail sales in the United States," said Agriculture Secretary Tom Vilsack. "The organic certification cost share programs help more organic businesses succeed and take advantage of economic opportunities in this growing market."

The funding is provided on a cost share basis and certification assistance is distributed by two programs. Through the National Organic Certification Cost Share Program, $11 million is available to organic farms and businesses nationwide. Through the Agricultural Management Assistance Organic Certification Cost Share Program (AMA), an additional $900,000 is available to organic producers (crop and livestock operators only) in Connecticut, Delaware, Hawaii, Maine, Maryland, Massachusetts, Nevada, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont, West Virginia, and Wyoming.

Funded by the 2014 Farm Bill, these programs provide cost share assistance to USDA certified organic producers and handlers, covering as much as 75 percent of an individual applicant's certification costs, up to a maximum of $750 annually per certification scope. In 2014, USDA issued nearly 10,000 reimbursements totaling over $6 million, providing critical support to the organic community.

To receive cost share assistance, certified organic producers and handlers should contact their appropriate state agencies via the contact information on the National Organic Program's (NOP) cost share website: www.ams.usda.gov/NOPCostSharing. Each state has its own guidelines and requirements for reimbursement, and NOP assists states to successfully implement the programs. Applicants for cost share assistance through the AMA program are encouraged to apply early, as these funds are only available through Sept. 30, 2015.

USDA connects organic farmers and businesses with resources that will ensure the continued growth of the organic industry domestically and abroad. During this Administration, USDA has signed four major organic trade arrangements and has helped organic stakeholders access programs that support conservation, provide access to loans and grants, fund organic research and education, and mitigate pest emergencies. The NOP upholds the integrity of the organic label and has helped the sector grow to include over 27,000 businesses around the world.



Farm Bureau Kicks Off 2015 Photo Contest

The American Farm Bureau Federation, in conjunction with the American Farm Bureau Foundation for Agriculture, has announced the 2015 Farm Bureau Photo Contest. The contest is open to all state and county Farm Bureau members and staff above 18 years of age at the time of entry, including professional photographers.

Photo submissions will be used to accurately portray today’s agriculture and the safe practices of farmers and ranchers, and also for future publications, promotions and social media by AFBF and related companies. All photos submitted must exemplify safe practices on the farm or ranch.

The contest will run May 15, 2015, through March 31, 2016. Photos may be entered in four categories: Farm Families, Farm Labor, Technology and Consumer Outreach. Monetary prizes will be awarded to the top three placing photos from each category. First place winners will be awarded $150, second place $100 and third place $75.

Judges will also select a “Best in Show” winner for the most dynamic photo entered across all categories as well as two runners-up. The Best in Show winner will receive $400, with first runner-up and second runner-up receiving $300 and $200, respectively.

“The timeframe for this competition opens up vast possibilities for members interested in capturing farm and ranch photos throughout the four seasons,” said Kim Baker, AFBF’s assistant director, creative services. “We look forward to seeing a bumper crop of diverse submissions from photographers around the country for this contest.”

Contest winners will be announced April 15, 2016, on Farm Bureau’s social media platforms and website.

For more information on how to register and to view the contest rules and regulations, visit the 2015 Farm Bureau Photo Contest webpage at http://photocontest.fb.org. Questions about the contest may be sent via email to photocontest@fb.org.



CLAAS OF AMERICA RESTRUCTURES TOP MANAGEMENT TO SUPPORT COMPANY GROWTH

To support the next chapter of worldwide company growth, CLAAS (Omaha) has restructured its Business Unit Sales and Service into six global regions. As a result, Leif Magnusson has taken on the role of President CLAAS Global Sales - Americas. In this role, Magnusson will oversee three sales regions made up of CLAAS of America, CLAAS Argentina and CLAAS America Latina.

“In the last five years, CLAAS has seen dramatic growth around the world,” Magnusson said. “From new acquisitions in Asia and expanding new markets in India and Eastern Europe to unprecedented growth right here in the breadbasket of the world, the largest family-owned agricultural equipment company on the planet has plenty to cheer about.”

In support of Magnusson’s expanded responsibilities, Eric Raby has joined CLAAS of America as the new President and General Manager - Sales. He comes to CLAAS with extensive experience in the agricultural equipment industry. In his prior post with a major manufacturer, Raby served 24 years in various leadership roles.

In addition, Tim Conrad has been promoted to President and General Manager - Finance and is now responsible for the financial management of both CLAAS of America and its retail operations. Conrad is also responsible for the CLAAS of America sales logistics operations. John Buse has also been promoted to Executive Vice President - Retail and is responsible for all retail operations in North America.

Finally, after four years in Omaha, Executive Vice President - Finance & CFO Holger Krumel will assume the role of Executive VP Finance and Administration for CLAAS Tractor Division in Velizy, France. His tenure with the North American Leadership Team will officially end on August 1, 2015.

“The legacy Holger leaves behind is significant,” Magnusson continued. “He played a big role in the development, growth and profitability of our business through his leadership on the North American management team. We wish Holger all the best and success at CLAAS Tractor and we welcome Eric to our Omaha family. We also congratulate Tim and John on their promotions. I am grateful for the support seen from our employees and dealers as we continue our successful journey to grow the North American business.”



ConAgra Foods Acquires Blake's All Natural Foods

ConAgra Foods, Inc., Omaha, that it has acquired Blake's All Natural Foods, a rapidly-growing, family-owned company which makes natural and organic frozen meals, including pot pies, casseroles, pasta dishes and other entrees.

Sean Connolly, ConAgra Foods' chief executive officer, said, "We are thrilled to have Blake's All Natural Foods join ConAgra Foods. Blake's is a great addition to our existing frozen meals business and provides more choices to a growing group of people buying natural and organic foods. ConAgra Foods will help Blake's grow and offer its wholesome food to more people across the country."

ConAgra Foods has a broad portfolio of brands in the frozen foods aisle, including Alexia, Healthy Choice, Marie Callender's, Banquet, Kid Cuisine, Bertolli, Odom's Tennessee Pride and P.F. Chang's.

"Blake's is really excited to join the ConAgra Foods team as it will allow us to build on the momentum we've created over several years and continue to meet the growing demand for our meals," said Chris Licata, president and chief executive officer of Blake's All Natural Foods. "Natural and organic food has clearly earned a place in American households, and we will continue to make the same meals that the Blake family has made for people over four generations."

Blake's All Natural Foods has approximately 60 employees based in Concord, N.H. Licata will continue to lead the Blake's business from its headquarters in Concord.

Blake's is one of the fastest growing natural and organic frozen food brands. According to IRI data, the natural and organic frozen single-serve meals category grew by more than 33 percent between 2011 and 2015.

Terms of this all-cash deal were not disclosed. This transaction has no impact to ConAgra Foods' previously communicated debt reduction commitments for fiscal 2015.



Boost Alfalfa Tonnage with Better Boron Fertilizer
Kevin Boehm, Territory Manager, Compass Minerals Plant Nutrition

Alfalfa growers shooting for high-production, high-yielding hay know that fertilizing boosts quality and tonnage. You have a lot of options when you’re choosing what kind of fertilizer to use to optimize forage production, but one important nutrient requirement that shouldn’t be overlooked is boron.

Boron is important to the establishment and re-growth of alfalfa. Because boron is essential for proper cell wall formation, highly cellulosic crops like alfalfa have high boron requirements. Alfalfa fields require frequent boron fertilizer applications because you’re constantly removing the whole crop from the field; unlike crops like corn, where boron stored up in the cellulosic part of the plant - the corn stover - recycles back into the soil as the stover breaks down after harvest.

When you’re choosing what kind of fertilizer to use, ensure your alfalfa has the nutrient requirements it needs after a cutting. Boost yields with a cost-effective application of Wolf Trax® Boron DDP®,  a proven performer in intensely managed alfalfa systems.

Specially formulated, Boron DDP can be applied in several ways that are convenient for alfalfa growers:
-    Coat Boron DDP onto dry fertilizer applied prior to or after a cutting.
-    Mix Boron DDP with an insecticide or fungicide spray in-season.
-    Apply Boron DDP in a foliar application or through fertigation.

Also because adequate levels of boron can improve winter hardiness, this application helps ensure nutrient reserves going into fall.  And some progressive growers are utilizing in-season fungicide and insecticide applications to manage pests. Boron DDP has a good fit in those in-season applications as well.

If you want to boost your alfalfa yields this season, ask for a better boron fertilizer option for  alfalfa. Ask your fertilizer dealer for Boron DDP.



AGCO Plus+ Rolls Out No-Interest, No-Payments Offer

Fluctuating commodity prices, along with the steep costs of seed, feed and fertilizer, can make budgeting for in-season expenses challenging. AGCO Corporation (NYSE:AGCO), a worldwide manufacturer and distributor of agricultural equipment, is offering an innovative financing solution on qualifying Parts and Service transactions, designed to make those investments easier.

Now through August 31, 2015, AGCO Plus+ account holders can take advantage of the No-Interest, No-Payments offer on any AGCO Parts and Service purchase over $1,000*.

"The AGCO Plus+ program is just one way that AGCO ensures that our customers get the parts and service they need when they need them," said Darren Parker, director of sales and marketing for AGCO Parts and Service. "We know that farmers need flexibility, especially in today's markets, and the launch of 120 days of No-Interest, No-Payments will help farmers meet the challenges ahead."

Launched in 2012, AGCO Plus+ was designed to provide the financial solutions, support, and flexibility to help farmers reach their goals. The program supports the superior products, service, knowledge and expertise AGCO customers have come to expect.

Those who are not currently AGCO Plus+ account holders can still take advantage of this program by visiting the nearest participating AGCO Parts dealer to sign up today.