Monday August 3 Ag News

Corn Disease Update – Southern Rust, Gray Leaf Spot, and Northern Corn Leaf Blight
Tamra Jackson-Ziems, Nebraska Extension Plant Pathologist

Southern rust continues to be confirmed in samples from numerous counties in eastern and south central Nebraska, as indicated on the IPM PIPE website. The disease has reportedly been confirmed at low incidence and severity in the fields thus far, but with recent days of warm humid conditions will likely spread and increase in severity.  Southern rust is likely already present in low levels in most of the counties in this part of the state, but may not develop in every field.

Southern rust in corn
Frequent scouting of corn fields is critical to determine if or when it develops and to what extent. It can take a few days to several weeks for southern rust to develop and become severe, complicating treatment decisions. The potential for yield-limiting southern rust development is higher this year than in recent years because it developed earlier in the season and a lot of corn was planted later than normal, thus is delayed in development.  Periods of rain, high humidity, dew, etc. with day or night temperatures in the 70s and 80s F will likely favor more rapid disease spread and development.
Foliar fungicides can be very effective when managing this disease, but the protection they provide can be lost in about 21 days, possibly requiring retreatment if severe disease develops or if the first application was made several weeks ago. Late planted fields that have corn delayed in development are most vulnerable to the effects of southern rust as they have several weeks of grain fill left.

Identification of southern rust can be complicated by the presence of other similar looking diseases and so it is frequently misdiagnosed.  Very early symptoms of southern rust or some other diseases may begin as tiny yellow flecks making early diagnoses difficult. The most reliable method for identification of corn rust diseases is based on examination of microscopic spore characteristics. This can be done quickly for samples submitted to the UNL Plant & Pest Diagnostic Clinic.  Southern rust spores are usually orange/tan in color, produced mostly on the top side of the leaf, and easily wiped off.

Gray Leaf Spot and Northern Corn Leaf Blight
With the warmer temperatures and high relative humidity during recent weeks, some crop consultants and Extension educators are reporting that northern corn leaf blight seems to be slowing its spread, while gray leaf spot is becoming increasingly important and moving higher in the plant canopy.

Some hybrids may need treatment with a fungicide for gray leaf spot to protect the upper leaves if it continues to worsen and is in high risk growing conditions, such as susceptible hybrids, favorable warm and humid weather, early disease development, continuous corn, and minimum tillage.  Because it takes 14-21 days for gray leaf spot lesions to develop, keep in mind that one to two leaves above the leaf where you find the highest lesion may already be infected.



FLYING COVER CROPS INTO CORN AND BEANS
Bruce Anderson, Nebraska Extension Forage Specialist

               Corn stalks and other crop residues provide good winter feed.  Adding cover crops to them can sometimes make them even better.  Getting them established, though, can be tricky.

               Corn stalks and bean stubble are some of the least expensive winter feeds we have.  But once cattle finish eating grain and husks from corn or licking up pods from beans, what remains isn’t very good.

               Some growers have improved both the amount and quality of corn and bean residue grazing by flying cover crop seed onto standing corn or beans.  When successful, cover crops provide more grazing days and extra protein as residues become poorer quality.

               Let me emphasize the words ‘when successful’.  It’s not all that easy to get a good stand of cover crops to become productive in a growing corn or bean field.

               Several factors limit success rates.  Herbicide carryover can cause problems.  Also, time of planting is critical to get sunlight to new seedlings.  Seed into beans just before leaves start to drop.  In corn, many folks wait until plants dry up to the ear.  And the earlier these crops can be harvested, the better, for cover crop growth.

               Don’t be cheap with moisture.  Usually it takes about three irrigations or equivalent rainfall to be successful.

               Cover crop selection is very important.  Only use firm, dense seeds like spring barley, cereal rye, turnip, and radish that don’t require much depth of seeding.  Avoid large seeds like peas or complex, expensive cocktails.

               Lastly is wheel traffic at harvest.  Turnips and radishes are damaged more than grasses, but both lose stand if fields get muddy.

               I like improving corn stalks or bean stubble with cover crops.  But there are challenges, so try to find ways to overcome them.



Renewable Energy Group to Acquire Imperium Renewables

Renewable Energy Group, Inc. and Imperium Renewables, Inc. announced that they have signed an asset purchase agreement where REG would acquire substantially all the assets of Imperium, including a 100-million gallon nameplate capacity biomass-based diesel refinery and deepwater port terminal at the Port of Grays Harbor, Wash.

Under the terms of the agreement, REG will pay Imperium $15 million in cash and issue 1.5 million shares of REG common stock in exchange for substantially all of Imperium's assets. In addition to these payments, REG will pay either $1.75 million in cash or 175,000 shares of REG common stock at closing as elected by REG. For two years post-closing, Imperium may receive up to a $0.05/gallon payment for biomass-based diesel produced and sold. In addition at closing, Imperium will retain its net working capital value of approximately $25 million. REG will also assume $5.2 million of Imperium's debt from Umpqua Bank, which has agreed to provide REG Grays Harbor, LLC with an additional loan capacity of up to $5 million to fund capital expenditures and improvements at the Grays Harbor facility. Closing is subject to satisfaction of customary closing conditions.

"Bringing the Imperium assets and their team into the REG network is a tremendous addition to our business," said REG President and CEO Daniel J. Oh. "As we combine our companies, we will expand the reach of REG along the west coast, including production and distribution. We already sell into these markets as they have responded to the call for more clean, advanced biofuels through low carbon fuel standards. This will enable REG to be more efficient and timely in our delivery and improve our supply assurance. We look forward to working with Imperium's experienced staff and plant employees, maintaining operational activities at Grays Harbor, and becoming active members of the community working with the Port of Grays Harbor and the cities of Hoquiam and Aberdeen."

"REG's growth over the last eight years has made them an industry leader and our biodiesel facility in Hoquiam will greatly expand their domestic production footprint and continued success." said John Plaza, president and CEO of Imperium Renewables. "We hope our facility will help them continue to grow and diversify biofuel production and sales both locally and around the region."

Umpqua Bank officials welcomed the deal. "We are very pleased to support REG in its acquisition of Imperium and growing their business here for the long-term future," said Danielle Burd, Executive Vice President and Regional Manager at Umpqua Bank. "We had a great relationship with Imperium over the last several years and look forward to continuing that as a lender to REG Grays Harbor."

Based in Ames, Iowa, REG is the leading North American producer and marketer of biomass-based diesel, with 10 active biorefineries across the US and a nationwide production, distribution and logistics system.

Seattle-based Imperium Renewables began developing proprietary technology and processes in the production of biodiesel in 2004. The Grays Harbor refinery began operation in August 2007 in Hoquiam, Wash. and is well positioned for advanced biofuel production, storage, and transport from southern California to western Canada. The fully-operational 100-million gallon nameplate capacity biorefinery will be renamed REG Grays Harbor, LLC. The facility includes 18 million gallons of storage capacity and a terminal that can accommodate feedstock intake and fuel delivery on deep-water PANAMAX class vessels as well as possessing significant rail and truck transport capability.



Army Corps Criticizes EPA for Flawed Rulemaking, Warns WOTUS has Little Legal Standing and is Not Based on Science
 
Internal memos released by the House Oversight and Government Reform Committee reveal the Army Corps of Engineers, the primary regulator over Environmental Protection Agency’s “waters of the United States” rule, believes that the rule will not hold up in the courts and that it grossly misinterprets Corps data.

“Corps data to EPA has been selectively applied out of context, and mixes terminology and disparate data sets,” one memo from General Peabody to Assistant Secretary of the Army reads. “In the Corps judgement, these documents contain numerous inappropriate assumptions with no connection to the data provided, misapplied data, analytical deficiencies and logical inconsistencies.”

Enforcement of the rule is set to begin August 28, 2015, but the more than 50 pages of released documents clearly illustrate the discrepancies between the two agencies that share jurisdiction of the Clean Water Act.

“These documents clearly show that EPA is not ready to begin enforcement of this flawed rule, and demonstrate why this rule should be withdrawn and rewritten with input from all stakeholders,” said Philip Ellis, National Cattlemen’s Beef Association president. “The EPA snubbed concerns from the countryside, and now, these memos reveal they even disregarded concerns from the Army Corps. The fact that other federal agencies’ concerns were ignored is appalling, especially given the scope of this rulemaking.”

The memos show the Corps are so concerned about the implications of this disastrous rule that at one point they state that any reference to the Army Corps name and logo should be removed from all documents pertaining to the rule. 

“The EPA placed their radical agenda above the law and went far beyond the scope of the Clean Water Act,” said Ellis. “This rule is nothing more than an attempt to run roughshod over Congress and the courts in the largest land grab in regulatory history. The legal flaws identified by the Corps in these memos are the same vulnerabilities we’ve identified in our lawsuit against this rule. The fact is, cattlemen and women still need certainty in the Clean Water Act, not a radical and arbitrary political agenda.”

NCBA calls for the EPA to immediately withdraw the final WOTUS rule and work with stakeholders and Congress to craft a rule that achieves clarity and works for all landowners.



USBCA Starts Industry-wide Conversation on the Eve of Major Biotech Commercialization

Last week, the U.S. Biotech Crops Alliance's Domestic Working Group held a technology meeting in Montreal to recommit to address any worldwide asynchrony regulatory risks associated with the commercial possibilities for biotechnology during the next three years. During the meeting, representatives from all parts of the value chain worked together, creating an understanding of both the biotechnology derived products which have or may gain U.S. regulatory approval, their international approval status and possible market risks in an attempt to help farmers understand the status of new products in world markets before they plant these varieties.

Held in conjunction with the U.S. Grains Council's Annual Board of Delegates Meeting, USBCA laid the groundwork for ongoing discussions on how to move forward as an industry that simultaneously values farmer access to valuable biotechnology-based tools and export markets for their end product. The discussions will continue this December during regularly scheduled meetings.

Notably, the group discussed the robust trait pipelines for both corn and soybeans in the coming years with several corn as many as four soy products which have full U.S. approval for market-ready varieties as early as planting season in 2016. Given the incredible array of options that could benefit America's farmers, these talks helped the industry, as a whole, as it works to optimize the potential for biotechnology and exports across the value chain.

Established under a memorandum of understanding signed in 2012, the USBCA already has developed, and is working to implement, consensus positions on key policy issues designed to improve the introduction, stewardship, domestic and international regulatory policy, and distribution in U.S. and export markets of commodities and processed products containing or derived from modern biotechnology.

The USBCA's founding organizations are the National Corn Growers Association, American Soybean Association, American Seed Trade Association, Biotechnology Industry Organization, National Grain and Feed Association, and North American Export Grain Association.  Other national organizations that subsequently have become participants in the USBCA include American Farm Bureau Federation, Corn Refiners Association, National Association of Wheat Growers, National Oilseed Processors Association, North American Millers' Association, United Sorghum Checkoff Program, U.S. Canola Association, U.S. Grains Council and U.S. Soybean Export Council. 



Idaho “Ag-Gag” Law Ruled Unconstitutional in Federal Court

Idaho’s Ag-Gag law is unconstitutional, the U.S. District Court for the District of Idaho ruled today. In a landmark victory for a broad-based public interest coalition of national nonprofits, including the Animal Legal Defense Fund (ALDF), People for the Ethical Treatment of Animals (PETA), the American Civil Liberties Union (ACLU) of Idaho, and Center for Food Safety (CFS), the court held that the Ag-Gag law, Idaho Code sec. 18-7042, violates the First and Fourteenth Amendments to the U.S. Constitution. Today’s decision marks the first time a court has declared an Ag-Gag statute unconstitutional.



AAA Gets It Wrong Again, Demonstrates They Are Clueless With Regard to Beneficial Fuel Alternatives

Recently the American Automobile Association (AAA) filed comments concerning the Environmental Protection Agency’s (EPA) Renewable Fuel Standard (RFS) Renewable Volume Obligation (RVO) proposed rule for 2014 through 2016. Once again, AAA has shown its ignorance on issues when it comes to the importance of consumer choice, American jobs and homegrown fuel.

Tom Buis, CEO of Growth Energy, noted, “AAA is failing in its mission to look out for the best interests of the consumer. By aligning itself with the oil companies and actively opposing E15, the most tested fuel to date that is less expensive, renewable and a homegrown alternative that offers motorists a choice and savings at the pump, it is showing its true oil-soaked agenda.”

Buis added, “E15 is the most tested fuel ever. The Department of Energy (DOE) tested 86 vehicles, totaling over 6 million miles without any issues regarding engine performance or durability. Furthermore, NASCAR has used E15 for five years, racing nearly 8 million miles in its top three series. To say that ‘E15 is not ready for prime time’ shows AAA’s ignorance about the value-added properties of increased octane, which helps boost engine performance, and reduces emissions, as well as and the benefits that come along with producing E15, such as increased American jobs, a cleaner environment, reduced dependence on foreign oil and a less expensive fuel for consumers.”

“But don’t just take my word – listen to experts in the field who have been working on cars for years,” he added. Gene Hammond and Mark Muncey, the co-owners of Association Motor Club Marketing, which services vehicle owners in all 50 states, have made clear their support for E15, noting they have never seen an issue with the fuel.

Hammond, who has worked in the auto club business for 40 years, said, “Not one of our over 18 million members has called us with a problem related to the new E15 fuel or any ethanol blend. Travelers Motor Club and Association Motor Club Marketing support the use of E15 in vehicles as a safe and affordable alternative to gasoline.”

Muncey, who has nearly 20 years of experience in the motor club business, said, “We decided to research the road service data from our members. Today, four years after EPA approved E15 and two years after AAA declared it was premature, we can say for certain that our members have not reported any problems with E15.”

Hammond concluded, “Our focus is on providing unmatched service to our motor club members, and in our eyes, real-world experience trumps a study paid for by opponents of ethanol every time. In addition to no service calls or complaints about E15, the fact is that winter gas line freeze problems have virtually disappeared due to the increased use of ethanol. If you drive a vehicle that has been approved for the use of E15, and want to try it, we encourage you to try it with confidence.”



USDA Announces Commodity Credit Corporation Lending Rates for August 2015

The U.S. Department of Agriculture's Commodity Credit Corporation (CCC) today announced interest rates for August 2015. The CCC borrowing rate-based charge for August is 0.250 percent, unchanged from 0.250 percent in July.

The interest rate for crop year commodity loans less than one year disbursed during August is 1.250 percent, unchanged from 1.250 percent in July.

Interest rates for Farm Storage Facility Loans approved for August are as follows, 2.125 percent with seven-year loan terms, up from 2.000 percent in July; 2.375 percent with 10-year loan terms, up from 2.250 percent in July and; 2.500 percent with 12-year loan terms, up from 2.375 percent in July.



 CWT Assists with 1.8 Million Pounds of Cheese and Whole Milk Powder Export Sales

Cooperatives Working Together (CWT) has accepted 9 requests for export assistance from Dairy Farmers of America, Michigan Milk Producers Association and Northwest Dairy Association (Darigold) who have contracts to sell 1.334 million pounds (605 metric tons) of Cheddar, Colby, Gouda, and Monterey Jack cheese, and 440,925 million pounds (200 metric tons) of whole milk powder to customers in Asia, Central America, and North Africa. The product has been contracted for delivery in the period from July 2015 through January 2016.

Year-to-date, CWT has assisted member cooperatives who have contracts to sell 43.682 million pounds of cheese, 30.395 million pounds of butter and 33.277 million pounds of whole milk powder to thirty-three countries on five continents. The amounts of cheese, butter and whole milk powder in these sales contracts represent the equivalent of 1.330 billion pounds of milk on a milkfat basis.

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



BASF Says it Would Build Up Seed Ops if Scale Achievable

Germany's BASF SE would be interested in building up its own seeds business if it were able to achieve a certain scale and market position, the head of the company's crop protection business said.

"We think that a certain strategic size and a global market position in key seeds would be required in order to make such a business attractive for BASF," Markus Heldt told The Wall Street Journal in an interview.

An acquisition could speed up the process of gaining scale and market position. In recent years, BASF had said it isn't interested in getting into the seed business, also citing a lack of attractive and economically justifiable acquisition targets.

This could, however, change if Monsanto Co.'s (MON) $45 billion bid for Swiss rival Syngenta AG were to win approval, under the condition that Syngenta sell its seed business to ease antitrust concerns. So far, the Swiss pesticide and seed maker has rejected Monsanto's offer. Analysts have cited BASF as one of the key possible bidders for Syngenta's seed business if it were for sale and would consider it a good fit.

Heldt declined to comment directly on the possibility.

"BASF is generally looking at all opportunities," he said when asked whether BASF could be interested in Syngenta's seed business if it were up for sale.

Separately BASF declined to comment on speculation that it could make a competing bid for all of Syngenta.

Over the years, BASF has looked closely at the global seeds market and would consider being a player in the key agricultural crops in the Americas, Mr. Heldt said. He said the market has a volume of about $40 billion worldwide, with 60% of the business done in the Americas. Corn and soybean account for more than 70% of the global seed business, Mr. Heldt said.

"Those are the key parameters," Mr. Heldt said.

Monsanto, DuPontCo. and Syngenta are the top three players in the global seed business, followed by Dow Chemical Co. (DOW) and Bayer AG (BAYN.XE). BASF doesn't have its own seed business.