Midwest Crop Tour Day 4 - Can the West Carry the East?
Farmers across the Corn Belt have tuned into this week's Pro Farmer Midwest Crop Tour, watching to see if Iowa and Minnesota could pick up Indiana and Ohio's slack.
The tour's Iowa average corn yield was 3 bushels per acre shy of USDA's estimate, while Minnesota's was 6 bpa higher.
Scouts estimated Iowa's corn crop would average 180.25 bushels per acre, compared to 178.75 bpa last year and the three-year average of 162.65 bpa. The pod count averaged 1,219 pods in a 3-foot-by-3-foot square, compared to last year's estimate of 1,173.6 pods and the 3-year average of 1,033.6 pods.
In Minnesota -- widely considered to be this year's garden spot -- the average corn yield was 190.9 bpa. Its corn crop averaged 170.76 bpa last year and 169.35 bpa over three years. Soybean pod counts were 1,119.2, compared to 1,031.5 bpa last year and the 3-year average of 945.1.
Rural Mainstreet Index Falls to Growth Neutral for August - Cash Rents Expand as Farmland Prices Slump
The Creighton University Rural Mainstreet Index fell for August from July’s tepid reading, according to the monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy.
Overall: The Rural Mainstreet Index (RMI), which ranges between 0 and 100, sank to growth neutral 50.0 from 53.4 in July.
“This is the first decline in the overall index since March of this year. Weaker conditions among businesses tied directly to agriculture and energy accounted for the downturn in the reading," said Ernie Goss, Jack A. MacAllister Chair in Regional Economics at Creighton University's Heider College of Business.
Farming and ranching: The farmland and ranchland price index for August increased slightly to 32.7 from July’s 31.4. “This is the 21st straight month the index has remained below growth neutral. But, as in previous months, there is a great deal of variation across the region in the direction and magnitude of farmland prices,” said Goss.
Nebraska: The Nebraska RMI for August slumped to 48.4 from 50.1 in July. The state’s farmland-price index fell to 19.6 from July’s 21.4.
Iowa: The August RMI for Iowa dropped to 53.4 from July’s 56.6. Iowa’s farmland-price index for August rose to 44.0 from July’s 43.9.
This month the survey asked bankers to project the expected change in farmland prices over the next year. On average, bankers reported an estimated decline of 5.8 percent over the next year. Last August when the same question was asked, bankers reported an expected 4.8 percent decrease.
“Bank CEOs were also asked to estimate current cash rents for nonpasture cropland. On average, bankers reported $263 per acre, which is up from $258 reported last year at this time. Additionally, bankers reported an increase in the share of farmland financed from 74 percent last August to 77 percent this month,” said Goss.
The August farm equipment-sales index sank to a very weak 14.2 from July’s 17.9, but was up from June’s record low 12.5. “With farm income expected to decline for a second straight year, farmers remain very cautious regarding the purchase of agricultural equipment,” said Goss.
Each month, community bank presidents and CEOs in nonurban agriculturally and energy-dependent portions of a 10-state area are surveyed regarding current economic conditions in their communities and their projected economic outlooks six months down the road. Bankers from Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota and Wyoming are included. The survey is supported by a grant from Security State Bank in Ansley, Neb.
This survey represents an early snapshot of the economy of rural agriculturally and energy-dependent portions of the nation. The Rural Mainstreet Index (RMI) is a unique index covering 10 regional states, focusing on approximately 200 rural communities with an average population of 1,300. It gives the most current real-time analysis of the rural economy. Goss and Bill McQuillan, former chairman of the Independent Community Banks of America, created the monthly economic survey in 2005.
HUSKER HARVEST DAYS TO FOCUS ON WEATHERING CLIMATE CHANGE
Agricultural producers and Nebraskans of every stripe can access a wealth of information on planning for climate change when they visit University of Nebraska-Lincoln Institute of Agriculture and Natural Resources exhibits at this year's Husker Harvest Days show near Grand Island.
Husker Harvest Days is Sept. 15-17.
"Successfully weathering extremes" is the theme for Nebraska Extension exhibits dealing largely with planning for potential weather extremes from climate change on the farm and ranch, as well as climate change-induced challenges and opportunities in everyday life.
"This is such an important topic on so many levels that we will examine it from many angles over both this and next year's Husker Harvest Days shows," said Ronnie Green, NU vice president, IANR Harlan Vice Chancellor and interim senior vice chancellor for academic affairs at UNL. "It's part of our focus on critical and groundbreaking research and initiatives that are important not only to all Nebraskans, but nationally and globally, as we enhance our reputation as a leader in critically important research."
Entering UNL's Husker Red steel building at Lot 321 on the south side of the exhibit grounds, showgoers will get the latest information on the challenges and opportunities facing the economics of agriculture, including variability and extremes in planning successful agricultural operations.
From there, they will view exhibits focused on the Nebraska Climate Report's take-home messages; forage alternatives for improving the resiliency of Nebraska beef systems; planning for climate-resilient irrigation systems; designing climate-resilient confined livestock systems; perennial forages for biofuels production; use of cover crops to improve resilience to higher-intensity precipitation; the role seasonal forecasts will play in future agricultural decisions; and the role of corn yield projections based on climate/weather in agricultural decisions.
UNL's adjacent open lots, east of the Husker Red building, will feature living exhibits of demonstration cover crops, plantings of switch grass for ethanol production and other uses, technologies for conserving water use in irrigation, and shade systems for reducing heat stress in feedlots.
"We believe this space has considerable potential for demonstrating the innovation and research of IANR in the form of living exhibits," Green said. "These exhibits tie directly into what showgoers will learn about when they visit the exhibits inside our building."
Also inside the Husker Red building, IANR staff will be available to answer questions on a variety of extension and research-related topics, provide copies of helpful NebGuides and direct those needing further help to extension experts in their local area.
Showgoers will also be able to learn about the latest opportunities for students at UNL's College of Agricultural Sciences and Natural Resources, and the Nebraska College of Technical Agriculture at Curtis. College representatives will be available throughout the show to answer questions from potential students. Those interested in the Nebraska LEAD (Leadership Education Action Development) program can also visit with a LEAD representative.
IANR has been part of Husker Harvest Days for nearly 40 years, since the first show in 1978.
"We enjoy the opportunity to bring the University of Nebraska-Lincoln to Husker Harvest Days and seeing all the people that stop in to see us each year," Green said. "We always appreciate the opportunity to visit with stakeholders about what they see as Nebraska's main challenges and opportunities. We are your land-grant university."
For more information on Husker Harvest Days, visit http://huskerharvestdays.com.
Nebraska Soy Grower to Speak at 12th Southeast Asia U.S. Agriculture Cooperators Conference
Nebraska farmer and American Soybean Association (ASA) Director Jim Miller is set to present at the 12th Southeast Asia U.S. Agriculture Cooperators Conference in Siem Reap, Cambodia from Aug. 25-28.
The U.S. Soybean Export Council (USSEC), together with the U.S. Grains Council (USGC) and the Foreign Agricultural Service ‐ United States Department of Agriculture (FAS‐USDA), are organizing the conference. Miller also serves as USSEC vice chairman.
This year the conference theme is “Opportunities for an Industry in Transition,” and will highlight the changes and challenges faced by agribusinesses today. Economic and population growth, as well as growing affluence in the region, continues to fuel demand for agricultural imports, and the proliferation of trade agreements in the last 15 years has had a major impact on international trade and investment.
The event offers a mix of social and networking activities as participants learn about how production and supply chains will make adjustments to meet a new market environment caused by record supplies, the coming together of the Association of Southeast Asian Nations (ASEAN) economic community by the end of this year and a lackluster Chinese economy.
According to USSEC Regional Director – Southeast Asia Timothy Loh, 18 U.S. and international grain exporters and 50 leading importers of soybeans, soybean meal, corn and dried distiller’s grain with solubles (DDGs) will be in attendance, representing an estimated soy buying volume of 3.7 million metric tons (MMT) of soybeans and 7.4 MMT of soybean meal.
Other speakers from the U.S. soy family include USSEC CEO Jim Sutter; past United Soybean Board (USB) chairman and Minnesota Soybean Research and Promotion Council director Jim Call; USSEC consultant and economist John Baize; USSEC Country Director – India Vijay Anand; USSEC consultant Jan van Eys; and USSEC Southeast Asia Technical Director – Aquaculture Lukas Manomaitis.
Zoetis Completes Manufacturing Facility for SYNOVEX® Implants
Zoetis today announced that the company has completed an expansion of its global manufacturing and supply facility in Lincoln, Nebraska, to help meet the demand for SYNOVEX® implants. The new 19,000-square-foot, three-story facility will house the global manufacturing operations for SYNOVEX, which helps improve gain and feed efficiency in beef cattle.
“Enhancing our manufacturing capacity is an important step we have taken to make sure our customers know they can rely on us to bring them the high-quality SYNOVEX implants they have used for decades,” said Paul Parker, senior marketing manager with Zoetis. “Cattle performance is more important than ever in this era of high cattle prices, and SYNOVEX implants can help our customers maximize the productivity of their cattle.”
Continued investment in new products and environmental impact
Zoetis continues to invest in research and development of SYNOVEX. Last year, the Food and Drug Administration (FDA) granted a label extension for SYNOVEX CHOICE® for use in heifers.
In 2014, the FDA completed an environmental impact review of SYNOVEX CHOICE, the first beef-cattle implant to receive such an assessment. The FDA evaluated and approved data from in-depth environmental modeling studies completed by Zoetis, which examined exposure of the active ingredients in SYNOVEX CHOICE — trenbolone acetate and estradiol benzoate — and their metabolites. The studies also evaluated direct impact of these ingredients. The FDA issued Zoetis a FONSI (finding of no significant impact) on the environmental assessment, including waterways, air, plants or aquatic species, when used according to label directions.1
“The Zoetis commitment to SYNOVEX has never been stronger,” Parker said. “We have actively secured new label claims and new product approvals from the FDA as well as completed the scientific research necessary to meet the FDA’s rigorous standards to protect the environment. Together with a significant investment in our manufacturing facility in Lincoln, we are taking a leap forward to meet the global demand for SYNOVEX implants.”
Quality-control testing, validation of the manufacturing facility and building inventories of SYNOVEX® formulations are now underway.
Ricketts Announces Howard County as Nebraska’s Newest Livestock Friendly County
Today, Governor Pete Ricketts announced that Howard County has become the newest county in the state to become designated as a Livestock Friendly County (LFC) through a program administered by the Nebraska Department of Agriculture (NDA).
“I am excited that the residents and officials of Howard County have added themselves to an expanding list of counties that have become part of the movement to Grow Nebraska’s agricultural economy,” said Gov. Ricketts. “By achieving the Livestock Friendly designation, Howard County demonstrates they are open for business and welcome new livestock operations as well as expansion of current operations.”
Created in 2003 by the Nebraska Legislature, the LFC program is designed to recognize counties in the state that support the expansion of the livestock industry. In 2014, livestock receipts in the state comprised over half of the $24 billion of Nebraska’s total on-farm receipts. The LFC designation gives counties an extra promotional tool to encourage expansion of current livestock operations and attract new businesses that spur local economies.
“This Livestock Friendly County designation signals that Howard County wants to provide opportunities for beginning farmers and ranchers as well as those families already established in the industry,” said NDA Director Greg Ibach, “We have to continue to keep our eye on the future if we are to sustain and grow agriculture in Nebraska.”
With the addition of Howard County, there are now 33 counties designated as Livestock Friendly through the state program.
Counties wishing to apply for the LFC designation must hold a public hearing and the county board must pass a resolution to apply for the designation. Then a completed application must be submitted to NDA. Local producers or groups can encourage county officials to apply.
Additional information about the Livestock Friendly County program is available on the NDA website at www.nda.nebraska.gov or by calling 800-422-6692.
Pork Production at Record High for July
Commercial red meat production for the United States totaled 4.04 billion pounds in July, up 3 percent from the 3.91 billion pounds produced in July 2014.
By State (million pounds, % of 7/2014)
Nebraska ........: 615.6 101%
Iowa ...............: 569.2 109%
Kansas ............: 444.5 99%
Beef production, at 2.05 billion pounds, was 2 percent below the previous year. Cattle slaughter totaled 2.49 million head, down 4 percent from July 2014. The average live weight was up 26 pounds from the previous year, at 1,346 pounds.
Veal production totaled 6.9 million pounds, 11 percent below July a year ago. Calf slaughter totaled 36,500 head, down 25 percent from July 2014. The average live weight was up 47 pounds from last year, at 322 pounds.
Pork production totaled 1.97 billion pounds, up 10 percent from the previous year. Hog slaughter totaled 9.40 million head, up 11 percent from July 2014. The average live weight was down 3 pounds from the previous year, at 280 pounds.
Lamb and mutton production, at 12.9 million pounds, was down 7 percent from July 2014. Sheep slaughter totaled 187,100 head, 11 percent below last year. The average live weight was 138 pounds, up 6 pounds from July a year ago.
January to July 2015 commercial red meat production was 27.8 billion pounds, up 1 percent from 2014. Accumulated beef production was down 4 percent from last year, veal was down 18 percent, pork was up 7 percent from last year, and lamb and mutton production was down 4 percent.
United States and Canadian Cattle Inventory Up 2 Percent
All cattle and calves in the United States and Canada combined totaled 111.4 million head on July 1, 2015, up 2 percent from the 109.6 million on July 1, 2014, according to USDA. All cows and heifers that have calved, at 44.5 million head, were up 1 percent from 2014.
All cattle and calves in the United States as of July 1, 2015, totaled 98.4 million head, 2 percent above the 96.3 million on July 1, 2014. All cows and heifers that have calved, at 39.8 million head, were up 2 percent from 2014.
All cattle and calves in Canada as of July 1, 2015, totaled 13.0 million head, down 2 percent from the 13.3 million on July 1, 2014. All cows and heifers that have calved, at 4.72 million, were down 3 percent from a year ago.
United States and Canadian Hog Inventory Up 7 Percent
USDA reports that the United States and Canadian inventory of all hogs and pigs for June 2015 was 80.1 million head. This was up 7 percent from June 2014, and up 3 percent from June 2013. The breeding inventory, at 7.15 million head, was up 1 percent from a year ago and up 1 percent from 2013. Market hog inventory, at 73.0 million head, was up 8 percent from last year and up 3 percent from 2013. The semi-annual pig crop, at 72.6 million head, was up 8 percent from 2014 and up 2 percent from 2013. Sows farrowing during this period totaled 6.96 million head, up 2 percent from last year and up 1 percent from 2013.
United States inventory of all hogs and pigs on June 1, 2015 was 66.9 million head. This was up 9 percent from June 1, 2014 and up slightly from March 1, 2015. The breeding inventory, at 5.93 million head, was up 1 percent from last year but down 1 percent from the previous quarter. Market hog inventory, at 61.0 million head, was up 9 percent from last year and up 1 percent from
last quarter. The pig crop, at 29.6 million head, was up 8 percent from 2014 and up 2 percent from 2013. Sows farrowed during this period totaled 2.85 million head, up 1 percent from 2014 and up 2 percent from 2013.
Canadian inventory of all hogs and pigs on July , 2015 was 13.2 million head. This was up 1 percent from July 1, 2014 and up 4 percent from July 1, 2013. The breeding inventory, at 1.23 million head, was up 1 percent from last year and up 1 percent from 2013. Market hog inventory, at 12.0 million
head, was up 1 percent from last year and up 4 percent from 2013. The semi-annual pig crop, at 14.1 million head, was up 5 percent from 2014 and up 2 percent from 2013. Sows farrowing during this period totaled 1.28 million head, up 2 percent from last year but down slightly from 2013.
Program Awards Grant to Develop Strategies to Increase Long-term Effectiveness of Bt Corn
In an effort supported by the National Corn Growers Association, the Monsanto Insect Management Knowledge Program awarded Dr. Felicia Wu, from Michigan State University, a grant for the proposal entitled "An Agent Based Model of Insect Adaptation to Transgenic Insecticidal Corn".
NCGA believes farmers should have as many options as possible to control pests. This project will develop a model to factors impacting the effectiveness of Bt corn that includes many factors that affect insect adaptation to the Bt proteins in corn, such as farmer behaviors, refuge strategy, insecticide usage, combination of traits used, crop rotation and others. Researchers hope to identify strategies that will achieve the greatest long-term effectiveness of Bt corn.
Understanding how insect resistance develops helps shape best management practices and mitigation actions that prevent the weakening of the technology's effectiveness, thus NCGA continues to work with industry and government on resistance management.
The Monsanto Insect Management Knowledge Program, a ten-member advisory committee consisting of academics and growers, provides merit-based awards for outstanding research that will not only enhance the collective understanding of insect management but also address significant challenges and issues in agriculture. NCGA Director of Research and New Uses Dr. Richard Vierling serves on the grant review committee to ensure the projects will develop tools that meet farmers' needs. The research addresses the following areas: development of predictive models of resistance; farmer education and training; and sustainable pest management. The program originally started in 2013 as the Corn Rootworm Knowledge Program but expanded its focus to include insects that are economically damaging to any U.S. row crop.
ASA Weighs in with EPA on Importance of New Tools to Combat Fungal Diseases
Citing the importance of new modes of action to combat resistance among fungal disease threats, the American Soybean Association (ASA) submitted comments calling on the Environmental Protection Agency (EPA) to move forward with the registration of Solatenol, a fungicide marketed by Syngenta as Trivapro, and a new tool to combat soybean rust, as well as fungal diseases in corn, wheat and specialty crops.
“Solatenol provides growers with a new option among fungicide products, which we are pleased to see. New modes of action like Solatenol and other products like it are critical tools for soybean farmers as we begin to address emerging and evolving threats in our fields, particularly the significant issue of resistance,” wrote ASA. “With more options, farmers can alter their approaches to the rapidly growing challenge of resistance that arises, and we encourage the Agency to move forward on registration of Solatenol to better equip us as we tackle this problem.”
Increases Shown In Ethanol Exports As Promotion Work Ramps Up
This marketing year’s U.S. ethanol exports are expected to be the second largest on record as ethanol export promotion efforts ramp up by the U.S. Grains Council (USGC) and its partners Growth Energy, the Renewable Fuels Association and USDA’s Foreign Agricultural Service.
“Efforts to promote increased exports of U.S. ethanol are showing progress, with global ethanol exports during the first 10 months of the current marketing year posting an 11 percent gain over last year’s numbers,” said USGC Chief Economist Mike Dwyer.
“The Council now expects full year 2014/2015 ethanol exports to reach 850 million gallons and to be valued at $1.9 billion, up from 768 million gallons just last year.”
While 2015 exports of U.S. ethanol to Canada – the top international customer - are down 26 percent on a volume basis, all other major markets have shown increases due to strong demand and U.S. ethanol supplies that are competitively priced.
The second and third largest importers, Brazil and the Philippines, have grown 71 percent and 44 percent respectively to 135 million gallons and 71.2 million gallons. India and the United Arab Emirates round out the top five export markets for U.S. ethanol.
Other markets seeing significant growth during the first 10 months of 2014/2015 include Korea, Mexico, the European Union and Tunisia.
Korea, which imports U.S. ethanol primarily for industrial purposes, has increased imports of U.S. ethanol by 94 percent to 42.3 million gallons, and Mexico's imports have grown by 17 percent to 26.1 million gallons.
Tunisia’s imports of ethanol have increased 224 percent over 2014 tallies to a total of 30.7 million gallons. Despite stiff anti-dumping duties imposed on U.S. ethanol entering the EU, U.S. exports are up 27 percent in the first 10 months compared to 2013/2014 volumes, totaling 41.5 million gallons.
While this success is a good starting point, there is still much work to be done to keep ethanol exports growing. The Council and its partners have plans for ongoing work to promote U.S. ethanol as a clean-burning source of fuel to buyers and end-users around the globe including assessments in potential new markets; buyer team visits to the United States; and a series of workshops focusing on the environmental and economic benefits of ethanol use.
USDA Encourages Producers to Consider Risk Protection Coverage before Fall Crop Sales Deadlines
Farm Service Agency Administrator Val Dolcini today encouraged producers to examine the available U.S. Department of Agriculture (USDA) crop risk protection options, including federal crop insurance and Noninsured Crop Disaster Assistance Program (NAP) coverage, before the sales deadline for fall crops.
“Deadlines are quickly approaching to purchase coverage for fall-seeded crops,” said Dolcini. "We remind producers that crops not covered by insurance may be eligible for the Noninsured Crop Disaster Assistance Program. The 2014 Farm Bill expanded NAP to include higher levels of protection. Beginning, underserved and limited resource farmers are now eligible for free catastrophic level coverage, as well as discounted premiums for additional levels of protection."
Federal crop insurance covers crop losses from natural adversities such as drought, hail and excessive moisture. NAP covers losses from natural disasters on crops for which no permanent federal crop insurance program is available, including forage and grazing crops, fruits, vegetables, mushrooms, floriculture, ornamental nursery, aquaculture, turf grass, ginseng, honey, syrup, bioenergy, and industrial crops.
USDA has partnered with Michigan State University and the University of Illinois to create an online tool at www.fsa.usda.gov/nap that allows producers to determine whether their crops are eligible for federal crop insurance or NAP and to explore the best level of protection for their operation. NAP basic coverage is available at 55 percent of the average market price for crop losses that exceed 50 percent of expected production, with higher levels of coverage, up to 65 percent of their expected production at 100 percent of the average market price, including coverage for organics and crops marketed directly to consumers.
Deadlines for coverage vary by state and crop. To learn more about NAP visit www.fsa.usda.gov/nap or contact your local USDA Service Center.
NFU: Currency Manipulation Again Being Used by Potential TPP Partner to Gain Unfair Advantage Over U.S. Farmers and Ranchers
National Farmers Union (NFU) President Roger Johnson today again urged the administration to ensure that the final Trans-Pacific Partnership (TPP) agreement include strong language against currency manipulation, which has been used recently by two of our trading partners- and consistently by other potential signatories of the TPP – to gain the edge on America’s farmers and ranchers.
“The devaluation of Vietnam’s currency this week and China’s last week underscores that mercantilism is alive and well around the world,” said Johnson. “Congress and the administration should take note that while many nations claim to be willing to drop blatant barriers in the name of free trade, they’re busy erecting new barriers on the side.”
Vietnam is a planned signatory onto the TPP, and will benefit from the elimination of trade barriers by many countries – like the U.S. – where it hopes to gain market share.
“The U.S. needs to prioritize meaningful measures to address currency manipulation with our trading partners,” said Johnson, who urged the administration to be wide-eyed and cautious moving forward with TPP negotiations. “Any major trade agreement that doesn’t have strong and enforceable language against currency manipulation isn’t worth the paper it’s written on,” said Johnson.
Johnson pointed out that currency manipulation is the most significant contributor to the massive U.S. trade deficit, which exceeded $505 billion in 2014.
“The trade deficit keeps growing because everyone seems to be watching out for their own best interests but the U.S.,” said Johnson. “The overall U.S. trade deficit is a 3 percent drag yearly on our national Gross Domestic Product and is robbing rural America and domestic agriculture of its potentially bright future” said Johnson.
“If the TPP is signed without strong provisions against currency manipulation, that deficit will just continue to grow,” he said.
Field to Market sustainability webinar offered
The American Society of Agronomy (ASA), Field to Market: The Alliance for Sustainable Agriculture, and the International Certified Crop Adviser (ICCA) Program are offering a new webinar August 26 on sustainable agricultural practices.
“Measuring Sustainability with Field to Market (FtM) and the Fieldprint Calculator” will connect growers with the Field to Market platform and the Fieldprint Calculator. These tools measure environmental outcomes and provide opportunities to evaluate and adopt more sustainable practices. The webinar will include a brief overview of the Field to Market’s program, the value it brings to the agricultural community, and a Fieldprint Calculator demonstration.
“This is a unique chance to learn the latest and newest information regarding sustainability tracking,” says Luther Smith, Director of Certification. “We’re pleased to unveil information that is not readily available elsewhere. It will be a primary tool for good work in agricultural sustainability.”
Rod Snyder, president of Field to Market, is the main presenter of the webinar. “In recent years, the entire agricultural supply chain has been working collaboratively to respond to consumer demands for more sustainable food production,” says Snyder. “We are proud to partner with the ICCA Program in developing their sustainability curriculum and believe certified crop advisers have a fundamental role to play in helping farmers achieve continuous improvement in productivity and environmental outcomes.”
Although the webinar is open to all, it also provides continuing education credits to Certified Crop Advisers (CCAs) and Certified Professional Agronomists (CPAgs). Registration is at https://www.agronomy.org/education.
“CCAs are the single best influencers to work with local producers,” says Smith. “They can help growers adopt more sustainable crop production practices that will satisfy the future demands of the food industry and consumer.”
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