Tuesday May 19 Ag News

Legislation Introduced in House to Repeal COOL
 
After over a decade and two administrations failing to successfully implement the rule, House Agriculture Committee Chairman Conaway (R-Texas) introduced legislation (H.R. 2393) to repeal Country of Origin Labeling. Originally introduced in the 2002 Farm Bill covering beef, pork and chicken; and implemented in 2008, COOL has been detrimental to the U.S. livestock industry and without benefit to U.S. consumers. After multiple rulings against the U.S. by the World Trade Organization, National Cattlemen’s Beef Association President and Chugwater, Wyoming, cattleman, Philip Ellis said this action by Congress is long overdue.

“As a fifth-generation rancher I am proud of the products we produce and we produce the best beef in the world, but mandatory labeling has only cost producers money without benefit,” said Ellis. “Continued economic analysis has shown that consumers do not use COOL information in their purchasing decisions, and despite implementation costs in excess of $1 billion for beef alone, these same reviews have found little or no economic benefit from this rule. It has resulted in discounts paid to U.S. producers like myself, and it is directly related to the closure of a number of processing plants and feedlots in the U.S.”

Ruling initially in 2011 on a complaint by Canada and Mexico, the WTO found that the U.S. COOL rule violates our international trade obligations by discriminating against livestock from our largest trading partners, adding costs and burdens to cattle solely based on their origin. Canada and Mexico are two of the top three export destinations for U.S. beef, accounting for over $2 billion in sales and nearly one-third of total U.S. beef exports.

“We support voluntary labeling efforts, efforts that give consumers the information they are looking for and reward producers all along the supply chain for meeting specifications,” said Ellis. “Programs like Born and Raised in the USA, Laura’s Lean, and Nolan Ryan’s Guaranteed Tender, that are run by the industry work; they don’t violate our trade obligations and they pay premiums back to the producer.”

Despite contentions by proponents of COOL, a recent economic study mandated in the 2012 Farm Bill and commissioned by Congress, showed that after six years of implementation, the rule had little effect on price or demand for covered commodities.

“A large part of this conversation has revolved around what consumers say they want when they are surveyed,” said Ellis. “But in my business, consumers vote with their pocketbook. At the meat counter, consumers buy beef based on price and appearance, not origin labeling. We support industry-led labeling because we know the private industry can and does do better, marketing our product with eye-appealing labels and standing behind promises with a guarantee. For all the hopes and aspirations, COOL will never be that, and that is why I can say without a doubt that it is a broken program, failed legislation, that has no place in this country.”

In early 2014, the U.S. Department of Agriculture amended the COOL rule to mandate origin on the born, raised and slaughtered locations of affected commodities. A WTO compliance panel ruled that the amended rule still violated international obligations by adding costs discriminately to foreign livestock. Earlier this week, a WTO appellate body upheld the panel’s review and recommended immediate changes to bring the rule into compliance. Following that decision, and without action by Congress, Canada and Mexico will be awarded retaliatory tariffs once damages are proven.

“Secretary Vilsack has said that the USDA is at a loss on how to fix this rule, given the statutory language, supporting what cattlemen have long maintained; there is no regulatory fix that will bring this rule into compliance with our international obligations,” said Ellis. “The only solution on the table is full repeal.”

Canada has published their list of products, by state, for possible retaliation. NCBA calls on Congress to act quickly in passing this legislation before retaliation places a chilling effect on the U.S. economy and further damages our trade relationships.



Nebraska Cattlemen Applauds Rep. Ashford's Co-sponsorship of Bill to Repeal COOL

Yesterday, a WTO dispute panel ruled for the fourth time country of origin labeling (COOL) violates our international trade agreements and discriminates against Canadian and Mexican livestock.  Today, H. R. 2393 was introduced in the House Agriculture Committee to amend the Agricultural Marketing Act of 1946 to repeal country of origin labeling requirements for beef, pork, and chicken.

Nebraska Cattlemen heartily applauds both developments. Nebraska Cattlemen has long said COOL is a burdensome and costly regulatory policy.  USDA agrees; recently the agency issued a report to Congress stating the regulatory costs of the program far exceed the minimal, if any, benefits to consumers.

“There is no regulatory fix to bring the COOL rule in to compliance with WTO obligations and satisfy our trading partners.  Trade and exports adds $300 per head value to each beef animal marketed in Nebraska and it is time Congress repeal this broken regulation,” said Dave McCracken, Nebraska Cattlemen President.

As a result of the WTO ruling Canada and Mexico will be able to place retaliatory tariffs on beef and other U.S. products. Canada has indicated it will target a long list of U.S. products.

Canada has published its list of products, by state, for possible retaliation and says 13 percent of Nebraska’s total commodity exports to Canada are threatened by COOL retaliation.

Congressman Brad Ashford commented, “Retaliation severely harms our economy and relationships with our top trading partners. What is clear from the WTO ruling is that COOL cannot be administratively fixed. This is why I have agreed to cosponsor bi-partisan legislation in Congress to repeal COOL.”

The straightforward bill to repeal COOL is also cosponsored by Nebraska Representative Adrian Smith. “We greatly appreciate that Adrian has agreed with us on this issue for years,” McCracken said.

This juncture is the latest in COOL’s long history. Thirteen years ago Canadian livestock groups started lobbying against the U.S. labeling rules.  In May 2002, the 2002 U.S. Farm Bill became law, requiring retailers to inform consumers of the country of origin for perishable agricultural commodities. In June 2008, the 2008 U.S. Farm Bill became law, maintaining the 2002 Farm Bill mandate to implement COOL.  In March 2009, the final rule for COOL was implemented, making country of origin labeling mandatory for muscle cuts and ground beef (including veal), pork, lamb, goat, and chicken; wild and farm-raised fish and shellfish; fresh and frozen fruits and vegetables; peanuts, pecans, macadamia nuts, and ginseng. Congress required meatpackers to identify where animals are born, raised and slaughtered—and whether those steps occur in different countries. The information has been printed on packages of beef and other meat products sold in grocery stores.

Canada and Mexico contend that labeling requirements put their cattle and hogs at a disadvantage—not because consumers snub their products but because U.S. meatpackers don’t want to go through the hassle and expense of tracking imported animals. As a result, meatpackers have offered lower prices for hogs and cattle brought in from Canada and Mexico.



NPPC Backs Bill Repealing Meat Labeling Requirements

The National Pork Producers Council is urging swift passage of H.R. 2393, legislation to repeal country of origin labeling requirements for beef, pork and poultry, following yesterday’s World Trade Organization (WTO) decision that the requirements violate international trade rules.

The WTO Monday rejected an appeal by the United States of the international trade body’s October 2014 ruling that the U.S. Country-Of-Origin Labeling (COOL) law discriminates against Canadian cattle and pigs and Mexican cattle. COOL requires meat to be labeled with the country where the animal from which it was derived was born, raised and harvested. Canada and Mexico send livestock to the United States to be fed out and processed. The WTO decision paves the way for those countries to place retaliatory tariffs on U.S. imports.

The bill introduced by House Committee on Agriculture Chairman Michael Conaway, R-Texas, and cosponsored by 56 members would amend the Agricultural Marketing Act of 1946 to repeal the meat labeling provisions. No companion measure has been introduced in the Senate yet.

In a letter of support sent today to members of the Agriculture Committee, NPPC President Ron Prestage, a veterinarian and pork producer from Camden, S.C., said, “We must avoid retaliation from our No. 1 and No. 3 export markets, and quick passage of H.R. 2393, followed by immediate action in the Senate, will ensure that U.S. jobs and the American economy will not suffer the negative effects of tariffs.”

Canada and Mexico are expected in the coming days to request authorization from the WTO to retaliate against a host of U.S. products, including pork, beef and even non-agricultural goods. The countries are expected to claim billions of dollars in damages, and the WTO likely will authorize a high level of retaliation possibly as soon as this summer.

“We can’t afford to have our products restricted, through tariffs, to two of our most important markets,” said Prestage, who pointed out that last year the U.S. pork industry exported almost $6.7 billion of pork, including about $2.5 billion just to Canada and Mexico, which added nearly $63 to the price of each hog marketed.




USDA NASS SEEKS INPUT FROM FARMERS ABOUT 2015 CROPS

During the next several weeks, U.S. Department of Agriculture’s National Agricultural Statistics Service (NASS) will conduct two major mid-year surveys, the June Agricultural Survey and the June Area Survey. The agency will survey nearly 6,000 across Nebraska to determine crop production and supplies levels in 2015.

“Due to the widespread impact of its results, the June Agricultural Survey, also known as the Crops/Stocks Survey, and the June Area Survey, are two of the most significant surveys NASS conducts,” explained Dean Groskurth, director of the NASS Northern Plains Regional Field Office.

“Information growers provide serves as the first clear sign of the prospective production and supply of major commodities in the United States for the 2015 crop year.”

NASS gathers the data for the June Agriculture Survey online, by mail and/or by phone. For the June Area Survey, agency representatives will visit randomly selected tracts of land and interview the operators of any farm or ranch on that land. Growers will provide information on crop acreage – including biotech crops—as well as grain stocks, livestock inventory, cash rents, land values, and value of sales.

NASS will compile and analyze the survey information and publish the results in a series of USDA reports, including the annual Acreage report and quarterly Grain Stocks report, both to be released June 30, 2015. Survey data contribute to NASS’s monthly and annual Crop Production reports, as well as the annual Small Grains Summary and USDA’s monthly World Agricultural Supply and Demand Estimates.

As with all NASS surveys, information provided by respondents is kept strictly confidential, as required by federal law. “NASS safeguards the privacy of all responses and publishes only state and national-level data, ensuring that no individual operation or producer can be identified,” stated
Groskurth.

All reports are available on the NASS website: www.nass.usda.gov.



BIVI Helps New UNL Diagnostic Center Break Ground

The University of Nebraska-Lincoln (UNL) recently broke ground on its new Veterinary Diagnostic Center. Boehringer Ingelheim Vetmedica, Inc. (BIVI) contributed support for the state-of-the-art facility that will provide improved service to livestock producers and veterinarians throughout the region and the country. It is expected to open by the end of 2017.

The new center was part of the University of Nebraska's Building a Healthier Nebraska Initiative. In 2012, the Nebraska Unicameral approved legislation to build a new center. Total cost of the project is $44.7 million, of which $4.1 million is funded with private donations.

"We are very grateful for the investment Boehringer Ingelheim Vetmedica, Inc. is making to support a new, state-of-the-art veterinary diagnostic center, which will provide improved service to livestock producers and veterinarians throughout the region and the country," said Ronnie Green, University of Nebraska vice president of agriculture and natural resources. "This partnership helps to bring attention to this high-priority fundraising initiative and the opportunity to be involved. We're also very pleased to be the primary beef diagnostic lab partner with BIVI.

Dr. Scott King, marketing director for the U.S. Cattle Business Segment at BIVI said, "We care deeply about our customers and the health of their livestock, and we're proud to invest in the new veterinary diagnostic center. This investment will help ensure we are able to provide a high level of service to livestock producers and veterinarians."

Local and state representatives, as well as public and private donors were on hand for the groundbreaking ceremony, including BIVI Nebraska sales representatives Dan Wolfe of Raymond and Ben Siegfried of McCook.

BIVI’s support helps replace an aging facility that no longer meets modern laboratory standards. The new facility will provide testing services and hands-on training for large animal veterinarians. It is considered a national center of excellence for testing of livestock diseases, and the work done at the center impacts agriculture and public health across the country.



New nutrient management certification offered

The American Society of Agronomy (ASA) and the International Certified Crop Adviser (ICCA) program announce a new specialty certification in 4R Nutrient Management Planning (NMP).

Environmental and resource management concerns require farmers have access to advanced knowledge in improved water quality and environmental stewardship. The ICCA Program 4R Nutrient Management Planning (4R NMP) Specialty Certification meets this demand.

The 4R NMP Specialty Certification is currently available in six states – Illinois, Indiana, Iowa, Michigan, Minnesota, Wisconsin – with plans to expand in the near future. Certified crop advisers (CCAs) are eligible to apply for this certification.

Nutrient management is an integrated process that considers the agronomic aspects of soil and crop nutrition as well as the social, economic, and environmental relationships with the management system. It centers on the goal of building a nutrient management plan that puts the right nutrient sources, at the right rate, in the right place, and at the right time---the 4Rs of nutrient management.

4R nutrient management also considers the integration of agronomic practices with economic analysis and environmental interaction. These elements are important for success in the local field and downstream communities.

Proficiency areas tested include nutrient management planning; nitrogen, phosphorus, and potassium; secondary macronutrients and micronutrients; and manure management.

The first exam is on August 7, 2015. Performance objectives and registration materials are available at https://www.certifiedcropadviser.org/exams.

The Certified Crop Adviser certification, established by ASA in 1992, recognizes the education, expertise and experience of over 13,000 CCAs. CCAs must meet eligibility requirements and pass rigorous exams. To maintain certification and keep current in the knowledge, CCAs engage in continuing education activities each year.

ICCA is the largest, most recognized agriculture certification program in North America. Its professional standards are widely respected by industry, academia, and government. For more information on ICCA, visit https://www.certifiedcropadviser.org/.



April Milk Production in the United States up 1.7 Percent

Milk production in the United States during April totaled 17.8 billion pounds, up 1.7 percent from April 2014.  Production per cow in the United States averaged 1,911 pounds for April, 19 pounds above April 2014.  The number of milk cows on farms in the United States was 9.31 million head, 65,000 head more than April 2014, and 1,000 head more than March 2015.

IOWA:  Milk production in Iowa during April 2015 totaled 410 million pounds, up 6 percent from April 2014 according to the USDA, National Agricultural Statistics Service – Milk Production report. The average number of milk cows during April, at 212,000 head, was up 1,000 from last month and 6,000 more than a year ago. This is the highest number of milk cows since June 2010. Monthly production per cow averaged 1,935 pounds, up 55 pounds from last April.



FOUR PROBABLE CASES OF HIGHLY PATHOGENIC AVIAN INFLUENZA IN SAC AND SIOUX COUNTIES

The Iowa Department of Agriculture and Land Stewardship is responding to four probable cases of highly pathogenic avian influenza (HPAI) in Sac and Sioux counties.  With the new announcements, Iowa now has 56 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.

Sac 4 – Turkey 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.

Sac 5 – Turkey 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.

Sioux 13 – A backyard duck flock with an estimated 50 birds that was found during monitoring activities by the Department around a previous case.  Initial testing showed it positive for H5 avian influenza.  Additional confirmatory testing is pending from the APHIS National Veterinary Services Laboratories (NVSL) in Ames.

Sioux 14 – A backyard chicken flock with an estimated 12 birds that reported showing clinical signs.  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.



USDA: Bird Flu Could Cost MN, IA $1 Billion

(AP) -- Bird flu could cost nearly $1 billion in the economies of the two states hardest hit, Minnesota and Iowa, agricultural economists said Monday, and the virus is still spreading.

Iowa, the nation's leading egg producer, has lost about 20 million chickens that lay eggs for food use, more than a third of the total. Minnesota, the top turkey state has lost more than 8 million birds.

So far the U.S. Department of Agriculture has confirmed the bird flu has claimed nearly 37 million birds in 15 states but the number is significantly larger because additional farms in Iowa and Minnesota recently discovered are not yet on the list. The figures include birds killed by the virus as well as those killed to prevent its spread.

On Saturday, Rembrandt Foods announced that chickens at its second farm, an egg facility in Renville, Minnesota, had tested positive for the virus. About 2 million chickens will be euthanized. The company, one of the largest egg producers in the U.S., had to destroy 5.5 million chickens on its Rembrandt, Iowa, farm after the flu turned up there last month.

"Avian Influenza is a challenge to not only the Rembrandt Foods' business, but also its co-workers, customers, the communities in which it operates, and to the widespread industry as a whole," Jonathan Spurway, a company spokesman, said in a statement.

Minnesota's estimated loss of nearly $310 million in poultry production includes sales losses to feed suppliers, trucking companies, and processing plants, said Brigid Tuck, a senior economic impact analyst with the University of Minnesota in Mankato.

The loss in sales of poultry alone is estimated at $114 million. The estimates were based on the bird losses as of last Monday.

"If the virus affects more farms, as we have seen since May 11, the impact levels will rise," Tuck said.

In Iowa, the estimated economic loss from egg production is estimated at just over $600 million based on figures from Iowa State University economists using current estimates of dead chickens. Egg producers generate more than $2 billion a year in economic activity and the estimate is based on a loss of a third of the flock. Additional losses were reported Monday.

Other agriculture economists believe the economic losses for those two states could be even higher.

The economists said that the estimates are based on annual figures and the exact economic impact won't be known until it's determined how long it takes to declare barns virus-free and safe for restocking after birds are cleared out and facilities are disinfected.

"They are not going to come back all at once. It's going to take one to two years for these layer facilities to be back into full production, it's a gradual process," said Maro Ibarburu, a business analyst at the Egg Industry Center at Iowa State University.

While agriculture economists compute financial losses for states hardest hit, the U.S. Department of Agriculture released a monthly report Monday that said national exports of turkey meat will fall 10 percent, eggs about 1.5 percent and even chicken meat exports will fall 6.8 percent this year.

The broiler chicken industry, which provides chickens for meat, has not been directly hit by the of the bird flu virus that has mainly infected turkeys and egg-laying hens, but the export impact is due to national bans of all U.S. poultry products imposed by China, Russia and South Korea.

The USDA said turkey farmers were having a very good year before the bird flu struck the Midwest in March. First quarter production was 1.4 billion pounds, 7 percent higher than last year's comparable quarter. Second and third quarter production is expected to fall by 50 million pounds due to bird flu, however the strength of the first quarter is expected to help boost turkey production for the year by 3.9 percent above last year to 5.98 billion pounds.

Egg production for March was nearly 1 percent higher than a year ago. The bird flu virus first surfaced in Iowa egg barns in early April. The government's new forecast is for table egg production to fall to 7.2 billion dozen, a decline of 0.7 percent from last year.



Fertilizer Prices Stall

Fertilizer prices continue to move little this spring, according to retailers surveyed by DTN for the second week of May 2015. No fertilizer was significantly lower or higher in price compared to a month earlier.

Five of the eight major fertilizers edged higher in price compared to a month prior, but these moves were fairly small. Potash had an average price of $491 per ton, urea $457/ton, 10-34-0 $653/ton, anhydrous $711/ton and UAN32 $371/ton.

Two fertilizers slipped lower compared to the previous month, but again the move down was fairly minor. MAP had an average price of $598/ton and UAN28 $331/ton.

One fertilizer was unchanged from a month earlier. DAP had an average price of $570/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.50/lb.N, anhydrous $0.43/lb.N, UAN28 $0.59/lb.N and UAN32 $0.58/lb.N.

Only one of the eight major fertilizers tracked by DTN is double digits higher in price compared to May 2014, all while commodity prices are significantly lower from a year ago. 10-34-0 remains 18% higher compared to last year.

Two other fertilizers are slightly more expensive compared to a year earlier. Potash is 3% more expensive while anhydrous is 2% more expensive compared to a year earlier.

The remaining five nutrients are now lower compared to retail prices from a year ago. DAP is 4% less expensive, MAP is 5% lower, UAN28 is down 7%, UAN32 is now 9% less expensive and urea is 18% less expensive from a year earlier.



NCGA Welcomes Announcement of Pollinator Health Strategy, Calls for Continued Collaboration with Farmers

The National Corn Growers Association welcomed the announcement of the National Pollinator Health Strategy, released today by the White House Pollinator Health Task Force. NCGA applauded the Task Force for emphasizing the importance of public-private partnerships and called for continued discussion and collaboration between farmers, industry, and government about how to ensure a health and robust population of honeybees and other pollinators.

"Even though corn does not rely on pollinators, we recognize that they are critical to the overall health and vitality of our agricultural system," said Don Glenn, chair of NCGA's Production and Stewardship Action Team. "The National Pollinator Health Strategy underscores that everyone - farmers, beekeepers, conservationists, industry, and government - must work together to solve this challenge."

NCGA has been a leading voice for farmers on pollinator issues since the Task Force formed last summer. Glenn testified at the Task Force's public listening session last fall, and NCGA has regularly met with other stakeholder groups about this issue. NCGA is also a member of the Honey Bee Health Coalition, a diverse group of agricultural and conservation groups focused on healthy populations of pollinators in the context of productive agricultural systems and thriving ecosystems.

"NCGA is eager to review the Task Force's recommendations in detail," said Glenn. "We are committed to implementing solutions that will improve pollinator health and population while being economically viable and practical for farmers. We look forward to our continued collaboration with the Task Force and all stakeholders focused on pollinator health."



May is World Trade Month: Join the Ag #TradeTuesday Discussion Online

Join the National Corn Growers Association, U.S. Grains Council, sister farmer organizations and the International Trade Administration in celebrating World Trade Month this May.

Here are some fun facts about trade according to the office of the U.S. Trade Representative:

    Every billion dollars of goods and services exported supported more than an estimated 5,000 U.S. jobs in 2011.

    The five largest U.S. export markets for corn in 2014 were: Japan (466 million bushels), Mexico (412 million bushels), South Korea (196 million bushels), Colombia (136 million bushels) and China (108 million bushels).

    U.S. exports of agricultural products to the Asia Pacific Economic Cooperation countries totaled $104.7 billion in 2013.  Leading categories included: soybeans ($18.7 billion), pork and pork products ($5.6 billion), wheat ($5.5 billion), beef and beef products ($5.4 billion), and corn ($5.2 billion).

NCGA, in partnership with USGC, has been joining the Twitter discussion with the hashtag #TradeTuesday. NCGA encourages everyone to share your favorite agriculture trade fact this week on Twitter.



NMPF and IDFA Commend Introduction of School Milk Nutrition Act

A bipartisan bill to help reverse the decline of milk consumption in schools will be introduced this afternoon by Representatives G.T. Thompson (R-PA) and Joe Courtney (D-CT). The School Milk Nutrition Act of 2015 focuses on preserving milk’s role in school feeding programs, while complying with the most recent Dietary Guidelines for Americans (DGA).

The School Milk Nutrition Act of 2015 aims to increase milk consumption in schools by reaffirming the requirement that milk is offered with each school meal, consistent with current law and the DGA. The bill also aims to improve the variety and availability of milk served in schools through a new pilot program and research.

The International Dairy Foods Association (IDFA) and the National Milk Producers Federation (NMPF) strongly support the bill and encourage Congress to adopt it in the Child Nutrition Reauthorization process.

“With Congress set to reauthorize school nutrition programs this year, we applaud Congressman Thompson and Congressman Courtney for introducing this bill, and for recognizing the importance of milk to the health and well-being of our nation’s school children,” said Connie Tipton, president and CEO of IDFA.

Highlighting the nutritional importance and history of school milk over the past century, the National Dairy Council (NDC) recently released a new report, “Fluid Milk in School Meal Programs.” The NDC report identified declining milk consumption in schools as a concern and noted it is difficult to replace the nutrient package found in milk with other foods, without adding extra calories and cost. The NDC report is available here.

“Although milk is the number one source of nine essential nutrients in young Americans’ diets and provides multiple health benefits, children over four years old are not meeting the federal guidance that advises three daily servings of milk or other dairy foods for children nine years and older,” said Jim Mulhern, president and CEO of NMPF. He noted that from 2012 to 2014, schools served 187 million fewer half-pints of milk, although total public school enrollment grew during that period.

Authorization for the federal child nutrition programs expires at the end of September, and Congress is now beginning the process of reauthorizing the programs.



Dairy Situation and Outlook
Bob Cropp, University of Wisconsin Cooperative Extension

May milk prices will be the highest thus far this year. The May Class III price will be near $16.20 compared to $15.81 for April, and the Class IV price will be near $14.00 compared to $13.51 for April. Slower than anticipated increase in milk production, good domestic sales of cheese and butter, and some improvement in dairy exports are the reasons for higher milk prices. With record milk prices last year, and lower feed costs predictions at the beginning of the year was for milk production to run well over 2% higher than the year before. But, this has not occurred. USDA’s milk production report estimated April milk production for the U.S. to be just 1.7% higher than last year. Milk production during the January through April period was just 1.8% higher than a year ago. Both retail and restaurant sales have been good for both butter and cheese. In March, U.S. dairy export volumes reached their highest levels in nine months. Overall volume improved from February, though sales were below year ago levels. But, nonfat dry milk/skim milk powder exports were 7% higher than a year ago. Compared to a year ago, cheese exports were 5% lower, total whey exports 16% lower, and butterfat exports 79% lower. Exports as a percent of production were 55% for nonfat dry milk/skim milk powder, 47% for dry whey, 7.7% for cheese and 3.5% for butterfat. U.S. exports on a total milk solids basis was equivalent to 15.9% of U.S. milk solids production.

May milk cow numbers increased 1,000 head from March after decreasing by 2,000 head February to March. Compared to April of last year, cow numbers were 65,000 higher and milk per cow 1.0% higher resulting in the 1.7% increase in total milk production.

Milk production continues rather weak in the West in comparison to the Northeast and Upper Midwest.

April compared to last year, California had 2,000 fewer cows and 1.9% less milk per cow resulting in a 2.1% decline in milk production. Idaho had 12,000 more cows, but just 0.3% more per cow resulting in 2.4% more milk production. Texas had 2,000 more cows, but just a 0.5% more milk per cow resulting in 0.9% more milk production. New Mexico had the same number of cows but less milk per cow resulting in 1.4% less milk production. Milk per cow was higher for New York, Pennsylvania and Michigan. New York had 2,000 more cows, Pennsylvania 1,000 fewer cows and Michigan 20,000 more cows. Milk production was 1.9% higher for New York, 2.8% higher for Pennsylvania, and 6.5% higher for Michigan. Milk per cow was higher for Iowa, Minnesota and Wisconsin. Iowa had 6,000 more cows, Minnesota 1,000 fewer cows and Wisconsin 9,000 more cows. Total milk production was 5.9% higher for Iowa, 2.7% higher for Minnesota and 4.0% higher for Wisconsin.

The stronger milk production this spring in the Northeast and the Upper Midwest put pressure on milk plant capacity. While butter production in March continued to run below year ago, down 3.0%, cheese production was 1.8% higher, and nonfat dry milk production 8.7% higher. March 31st stocks compared to a year ago remain fairly tight, except for nonfat dry milk, with butter stocks 3.9% lower (7.4% lower than the 5-year average), American cheese stocks 1.5% lower (even with the 5-year average) and total cheese stocks 4.4% higher (2.1% high than the 5-year average). Nonfat dry milk stocks were 17.8% higher.

Higher cheese prices is the reason for the higher May Class III price and higher butter prices offsetting lower nonfat dry milk prices for the higher Class IV price. On the CME cheddar barrels averaged $1.6135 per pound in April, reached a high of $1.6375 on May 12th, and were $1.6125 on May 19th. The 40-pound cheddar blocks averaged $1.589 per pound in April, reached a high of $1.63 on May 18th and held on May 19th.. Butter averaged $1.7937 per pound in April, reached a high of $2.06 on May 13th, but has fallen back to $1.905 on May 19th.

There is uncertainty as to where milk prices are headed for the reminder of the year. Dairy futures have prices to continue to show strength. Class III futures are in the $17’s by September and for the remainder of the year. Class IV futures reach the $15’s by August and the $16’s for November and December. But, there is a concern that buyers of cheese have been building inventory and will not be as active in purchases going into summer and fall. Dairy exports may not improve as much as earlier anticipated and will stay below year ago levels. Prices on the Global Dairy Trade have shown further weakness and keep prices below U.S. prices. China’s milk production has improved, their economy has slowed some and it is uncertain to what extent China will become more active later this year in importing dairy products. The world milk supply may be higher than earlier anticipated with New Zealand’s milk production now anticipated to turn out higher than earlier predicted with improved rainfall, and the quota on milk production has ended in the EU. It is quite possible that milk prices could weaken some June through July before showing some strength this fall. It depends a lot on how milk production plays out for the remainder of the year. USDA is now forecasting milk production to end the year just 1.3% higher than last year. An increase in milk production well below 2% is bullish for milk prices. At this time it doesn’t appear that milk prices could either fall or increase sharply for the remainder of the year. Prices could still average $6 to $7 lower than the record high prices of last year. But, with lower feed prices than last year margins (returns over feed costs) are still conducive to increased milk production.



CLAAS OF AMERICA INTRODUCES MAX CUT MOWER BAR WITH UNIQUE WAVE DESIGN

As fields begin to green up, CLAAS of America wants farmers to think about adding the all-new MAX CUT mower bar to their forage harvesting lineup. Introduced last fall, the MAX CUT mower bar features a wave-shaped bed, which is stamped — not welded — from a single piece of steel. This design allows for features on the bar that lead to a better cut in the field.

“This is the secret of MAX CUT,” said CLAAS of America Product Coordinator Matt Jaynes. “The wave design gives the bar the required underlying strength and allows the satellite gears to move forward for greater overlap and to eliminate the chance of discs colliding. I really feel that the wave design is the only way to meet all the requirements of a mower bar today.”

The large cross-section created by the mower bar’s exclusive wave design, along with the very small module openings in the bar cover, ensure outstanding strength and stamina for years of worry-free use. MAX CUT is now standard equipment on all PROFIL front mowers, center pivot mowers and hydraulic 3-point mowers.

Only the wave design can provide the space needed for two distinctive connecting pieces, which are expressly hardened for this design. The connection piece with a raised section where the knives run toward each other operates like a shear bar, preventing clumps of dirt from forming. It also protects the bar from cutting damage. With the slimline connecting piece on the right, as the knives move apart, they clear the bar earlier and start cutting immediately. The special design also ensures optimum crop flow.

“Overlap is the key to a perfect cut,” Jaynes continued. “And, thanks to the specially shaped connecting pieces at the point where the knife pairs are moving apart, there is maximum overlap between the circles of rotation of the knives, boosting the cut surface area.”

The base and cover are machined together, resulting in an ultra-precise fit between the two halves of the structure. The innovative bolt design also provides a perfect positive connection for maximum deflection and impact resistance without the weakening effect of welding processes.

Those familiar with the CLAAS SAFETY LINK safety module will be happy to see that is has been improved and is larger than before. The sealed double-groove ball bearing ensures maximum service life. Each individual mowing disc is protected by a predetermined breaking point in the safety module and will be kept away from the drive train in the event of a collision. An axial bolt holds the mowing disc firmly in position.

“We’re excited about what this new mower bar has to offer,” Jaynes said. “The new design and shorter disc allow our farmers to get the smoothest operation, cleanest cut, greatest wear and easiest maintenance of any mower bar on the market.”



Reward your community through Drive to Thrive contest
Syngenta is giving growers and other agricultural professionals a chance to reward their communities through the second annual Drive to Thrive contest. But act quickly because the deadline for entering is fast-approaching.

The application process, which ends June 1, 2015, is simple:
-   Click on the easy-to-use online entry form.
-   Briefly describe how agriculture makes your community thrive.
-   Then, upload a photograph or video that visually supports your written entry.

Shortly after the entry deadline, a panel of judges will choose 10 finalists, who will each receive a mini touch-screen tablet. Syngenta will then post all finalists’ entries on the Thrive website and ask visitors to help choose the grand prizewinner by voting online. These votes, along with the judges’ scores, will determine the winner. The grand prize is a $500 gift card, plus Syngenta will donate $1,000 to the winner’s favorite local charity or civic organization. Online voting ends Sept. 1, 2015, with Syngenta announcing the grand prizewinner in October.

For more information about the Drive to Thrive contest, visit www.syngentathrive.com.



Helena Boosts Crop Health with Liquid Chisel®

Helena Chemical Co. is helping agricultural producers maximize yields and efficiency with the introduction of Liquid Chisel®, a new product designed to improve soil health and nutrient availability. Liquid Chisel is a blend of soil conditioning agents and potash that improves soil tilth by increasing the solubility of calcium and magnesium salts, moving them away from plant roots. Soils containing sodium and other salts can disrupt root growth and moisture absorption and result in crop stress and desiccation.

Liquid Chisel helps roots grow to their full potential by helping salts move through the soil profile and away from the root zone. Increasing the solubility of salts displaces sodium on clay particles, allowing sodium to be leached away with irrigation water. With sodium displaced, soil tilth is improved along with increased irrigation efficiency and better availability of soil nutrients.

Unlike similar products, Liquid Chisel features soil wetting agents to improve water movement in the soil. Liquid Chisel improves efficiency by increasing irrigation uniformity and keeping irrigation lines clean. With better tilth and availability of soil nutrients, Liquid Chisel applications can improve the seed germination environment and enhance soil microbial activity. Liquid Chisel can be applied through irrigation and with most fertilizers and residual herbicides according to label recommendations.



Bayer Welcomes Release of National Pollinator Strategy
Calling it a “balanced and multi-faceted approach,” Bayer CropScience today welcomed the release of the President’s Pollinator Task Force’s National Strategy to Promote the Health of Honey Bees and Other Pollinators. Bayer commended the call for extensive new research into all aspects of pollinator health and the unprecedented commitment to increase pollinator habitat and forage.

For almost 30 years Bayer has worked to study and improve pollinator health, particularly managed honey bee colonies important to ensuring an abundant and affordable food supply.  Specifically, Bayer has focused on collaborating with researchers to understand the factors affecting honey bee health, helping beekeepers control the dangerous Varroa mite, expanding education and outreach on pollinator health, and increasing forage for all pollinators.

“This strategy is a strong statement in favor of a balanced and multi-faceted approach to improving pollinator health,” said Dr. Becky Langer, head of Bayer CropScience’s North American Bee Care Program.  “While bee populations are not declining, they face many complex challenges, some of which we’re only just beginning to fully understand.  Improving honey bee health will take a concerted effort from all stakeholders, including the public, and this strategy will help provide a framework for our collective response.

Jim Blome, president and CEO of Bayer CropScience LP added, “We are particularly encouraged by the specific commitment to invest more into research to improve our understanding of pollinator health.  Everything from grower decisions, consumer choice and regulatory actions must be based in sound science and the strategy’s call for more research will help ensure that we have the best science available. We are proud to be contributing new studies and understanding population dynamics.”

Many of Bayer’s on-going pollinator initiatives mirror specific recommendations included in the national strategy.  Some specific highlights include:

•    The Feed a Bee initiative is working with people across the country to grow 50 million flowers and to increase bee forage areas by working with at least 50 government and nonprofit organizations and businesses to plant thousands of acres of flower-producing crops grown between regular crop production periods for bees. 
o    The NC Department of Transportation (NCDOT) will work with Bayer CropScience to create bee-attractant habitats along highway rights-of-ways.
o     Project Apis m., a non-profit dedicated to better bee health through its work with growers, will work with Bayer CropScience to establish up to 3,000 acres of bee forage in California and Washington.
o    Bayer has invested over $100,000 in a project with Integrated Vegetation Management Partners, Inc., (IVM Partners) designed to improve and expand pollinator and wildlife habitats, including monarch butterfly habitat, on public rights-of-way through integrated vegetation management.
•    Bayer has been actively involved in finding solutions to improve honey bee health by developing products and services through research including:
o    Smart Hives & Stock Improvement
§    Remote, non-invasive monitoring of honey bee colonies and hive/environment conditions using digital sensor technology can provide early alerts to undesirable changes and responses in hives. This will contribute to timely hive management, better understanding of timelines and causes of colony impacts, and better assessments of stock improvement programs.
o    Bee Repellents
§   Bee repellents comprised of both natural and synthetic products that repel honey bees from foraging over a period of time until any residual insecticide risk is minimized. This new commercial concept has potential use for agricultural and non-crop uses. 
o    Varroacides
§    The varroa mite, Varroa destructor, considered by the majority of scientists to be number one enemy of honey bees. It is prevalent in almost every hive and must be managed. There is a need for new varroacides with different modes of action/application, as well as a better understanding of mite susceptibility patterns and resistance development/management.
o    Healthy Hives 20/20
§    The initiative seeks to improve the health of honey bee hives by convening a group of leading experts to identify and conduct specific research projects that will have a tangible and measurable impact on improving the overall health of honey bee colonies in North America by 2020.
•    Bayer has been an industry leader in public and stakeholder outreach on pollinator health including hosting more than 3,000 visitors in the first year since opening the North American Bee Care Center, participating in nearly 100 bee-keeping events and working to improve communication between bee keepers and growers through its CARE program.
•    Bayer launched Fluency Agent, a seed lubricant designed to reduce dust when planting treated corn and soybean seeds, helping minimize potential risk of exposure to foraging honey bees and other pollinators.