Thursday August 6 Ag News

Mick Named Executive Director of We Support Agriculture

Ansley Mick has been appointed Executive Director of We Support Agriculture (WSA), a Lincoln-based coalition comprised of the Nebraska Cattlemen Association, Nebraska State Dairy Association, Nebraska Farm Bureau Federation, Nebraska Pork Producers Association, and Nebraska Poultry Industries, Inc. In her new role, Mick will coordinate with like-minded entities to combat efforts aimed at restricting livestock production and growth in Nebraska. She previously served as agriculture liaison and policy adviser for Congressman Adrian Smith (Nebraska-03).

“Every day it seems there’s a new ad or article misleading consumers about how producers care for their land and animals,” Mick said. “WSA was formed to bridge the gap between the public perception that these activists are rescuing pets and helping local shelters, and the true objectives of such organizations. Extremism continues to threaten production agriculture, and I’m excited to join a team dedicated to setting the record straight.”



Frontier Cooperative Co., Interstate Commodities, Inc.Announce Business Agreement

Representatives of Frontier Cooperative Company, Brainard, Nebr., and Interstate Commodities, Inc. (ICI), Omaha, Nebr., are pleased to announce that they have entered into a business agreement involving the Frontier Coop Fremont, Nebr., location. The agreement will go into effect on August 15, 2015.

“We believe this will create opportunities and bring more markets to the Fremont-area producer,” says Randy Robeson, CEO, Frontier Cooperative. “We feel this agreement will be beneficial to both companies and the community. ICI will bring more export markets to the Fremont location, which is located on the BNSF Railway.”

All current contracts and obligations will remain intact with Frontier Coop, while all future obligations and liabilities will be transferred to ICI as of the effective date. Frontier Cooperative will continue to offer its agronomy, energy, and livestock feed needs to Fremont-area producers. These services will primarily be handled out of the Mead and North Bend Frontier Coop facilities.

Frontier Cooperative Co. is located primarily in east-central Nebraska with 23 locations, and has been proudly serving local producers with grain, agronomy, energy, and livestock feed needs for over 100 years.

ICI was founded in 1947, purchasing distillery grains and selling to the feed industry throughout the eastern United States.

“In recent years, ICI has been focused on expanding by providing value-added service in storage, logistics, and transportation for agricultural commodities,” says Cameron Gregg, Omaha-based ICI vice president. “We are excited to be a part of the Fremont agricultural community.”

ICI is a third-generation, family-owned business focusing on origination, storage, transportation, and marketing of grain and grain products. In addition to the Fremont facility, ICI operates grain storage facilities located in Lincoln, Nebr., as well as 40,000,000 bushel of grain capacity in 13 states.



Nebraskan, Alan Tiemann Elected Chairman of U.S. Grains Council

Nebraska Corn Board member Alan Tiemann, a farmer from Seward, Nebraska, was elected chairman of the U.S. Grains Council (USGC) at the organization’s 55th annual board of delegates meeting in Montreal, Canada. Tiemann served as USGC vice-chairman over the previous year.

“I have enjoyed addressing issues and helping open markets for the Grains Council over the past few years and look forward to continuing those efforts on behalf of our industry,” said Tiemann.

In his first speech to USGC delegates as chairman, Tiemann said, “Markets don’t just happen, we have to work to make them happen. The U.S. Grains Council has been successfully doing that for more than 55 years and has developed a level of excellence in its work that I want to focus on this year.”

“Although most corn grown in Nebraska is used right here in our state for livestock and ethanol, we still have a lot at stake when it comes to exports,” said Kelly Brunkhorst, executive director of the Nebraska Corn Board. “As the old saying goes, the last bushel of corn sets the price. The work that the USGC completes around the world is very valuable to Nebraska’s corn and ethanol producers.”

The Nebraska Corn Board believes strongly in USGC’s mission and has supported the organization with corn checkoff dollars since 1979. USGC strives to develop export markets around the world and has offices in more than 50 countries. With 95% of the world’s population outside of the U. S. and that population projected to grow to 9 billion by 2050, USGC is working hard to teach producers around the world how to use feed grains effectively and manage their operations efficiently.

“That is why our theme this year is Excellence in Exports. I have found the Council displays excellence in its membership, its global staff team, the relationships it fosters, the collaboration it has with its partners and its dedication to export markets. All these areas have been key in making the Council the successful organization it is today,” added Tiemann.

Tiemann farms near Seward and has spent more than 35 years in production agriculture. He serves as the at-large director and past chairman for the Nebraska Corn Board. Tiemann has been a delegate from the Nebraska Corn Board to the USGC since 2005. Prior to that, Tiemann served as a delegate to USGC from the Nebraska Grain Sorghum Board for a number of years.



Drought Monitor:  Northern and Central Plains and Midwest
http://droughtmonitor.unl.edu/

The best of the rains fell across the dry/drought regions last week but the real story, particularly in the Midwest, was the heat as temperatures ran 3 to 5 degrees above normal. That fact, on top of the recent 30-45 days of dryness (albeit after a cool and wet start to the growing season) brought a sweeping advance of D0 across central Wisconsin into extreme northeastern Iowa. Given the bounty of the early season, this recent hot and dry spell hasn’t led to many impacts yet, as can be commonly depicted under abnormally dry (D0) conditions on the Drought Monitor map. An additional small expansion of D0 can also be found in extreme northwestern Iowa, which has now pushed up against the Minnesota border. In a bit of good news, the last remnant of D0 was removed this week from the Texas Panhandle. Status quo is the call elsewhere this week across Minnesota, the Dakotas, Nebraska and Kansas.



Iowa Learning Farms August Webinar on the Full Potential of Cover Crops

The regular monthly Iowa Learning Farms webinar for August will be on Wednesday, Aug. 19, at 1 p.m. This month’s guest speaker is Tom Kaspar who will present “Reaching the Full Potential of Cover Crops in Iowa.”

Although cover crops have been around a long time, we don’t have much experience on their use in modern corn-soybean rotations in Iowa. We do, however, understand the general principles of how winter cover crops improve soil health and reduce losses of sediment, nutrients and organic matter from corn and soybean fields.  Today, we have barely scratched the surface of the potential benefits that cover crops might provide. Only continued long-term research and farmer trials will allow us to reach the full potential of cover crops. Log into the webinar to hear Kaspar’s perspective of this timely topic.

Tom Kaspar is a plant physiologist at the USDA-ARS National Laboratory for Agriculture and the Environment in Ames, and has been with ARS since 1981. Over his career, his research has focused on crop and soil management to improve water quality and soil productivity. Since 1990, he has worked on the benefits and management of winter rye as a cover crop in corn and soybean rotations in Iowa.

The ILF webinars are held on the third Wednesday of each month at 1 p.m. They are free and all that is needed to participate is a computer with Internet access. To participate, go to: https://connect.extension.iastate.edu/ilf/ at 1 p.m. on the afternoon of the webinar and log in through the guest option. Webinar attendees will be able to converse with Kaspar by typing their questions through the chat function. The ILF webinars are recorded and archived on the ILF website for viewing at any time: http://www.extension.iastate.edu/ilf/Webinars/.



Eleven Candidates to Compete for 62nd Iowa State Dairy Princess

Eleven young women involved with the Iowa dairy community will compete in the contest to win the title of 62nd Iowa State Dairy Princess.  The contest will begin on August 11 in Ankeny, with the coronation on Wednesday, August 12, at 8 p.m. at the Multi-Media Center of the Cattle Barn at the state fairgrounds in Des Moines.

The princess and her alternate are charged with helping consumers learn more about dairy products and the farm families who tend the farms and cows that provide them.

The contestants are:
    Kylie Burmeister, 18, daughter of Kerry and Keri Burmeister of Hardy, representing Humboldt County;
    Melissa Gaul, 19, daughter of Dan and Jean Gaul of Holy Cross, representing Dubuque County;
    Kelly Hain, 18, daughter of Doug and Jo Hein of Nora Springs, representing Cerro Gordo County;
    Paige Huitink, 19, daughter of Harlan and Nelva Huitink of Hospers, representing Sioux County;
    Katie Kerndt, 18, daughter of Brad and Mary Kerndt of Lansing, representing Allamakee County;
    Ally Klein, 18, daughter of Lora Klein of Readlyn, representing the Iowa Brown Swiss Association;
    Kara Maxwell, 21, daughter of John Maxwell and Trish Reisener of Donahue, representing the Iowa Jersey Cattle Club;
    Emily O’Connell, 18, daughter of Pat and Marilyn O’Connell of Earlville, representing Delaware County;
    Mary Scott, 18, daughter of Mike and Kathleen Scott of Westgate, representing the Iowa Holstein Association;
    Leslie Sivesind, 17, daughter of Dan and Jane Sivesind of Waukon, representing the Iowa Guernsey Breeders Association; and
    Kate Stewart, 18, daughter of Matt and Diana Stewart, of Oelwein, representing Fayette County;

The winners are chosen on the basis of their knowledge and enthusiasm about dairy, personality and communication ability. Both the princess and alternate receive scholarships from Midwest Dairy Association, which sponsors the contest and princess program on behalf of Iowa’s dairy farmers.

The outgoing Iowa Dairy Princess is Mikayla Lien, daughter of Gary and Patty Lien of Calmar, and the Alternate Princess is Rylie Pflughaupt, daughter of Jordan and Traci Pflughaupt of Vinton. Their reigns will be completed at the end of the Iowa State Fair, and the new Princess and Alternate will begin their duties on September 1.



First-half Results Reflect Tough Business Climate for U.S. Meat Exports

June export data, released by USDA and compiled by the U.S. Meat Export Federation (USMEF), reflected a challenging first half of 2015 for U.S. pork, beef and lamb exports.

June pork exports totaled 174,554 metric tons (mt), down 4 percent from a year ago. With pork prices down significantly from last year’s high levels, June export value fell 22 percent year-over-year to $454 million. For the first half of 2015, pork exports were down 5 percent in volume (1.09 million mt) and 16 percent in value ($2.88 billion).

Beef export volume in June was down 8 percent from a year ago to 96,716 mt, while export value fell 9 percent to $578.9 million. This was the second consecutive month that export value fell below last year’s level, resulting in first-half value being steady with 2014’s pace at $3.26 billion. First-half volume was down 10 percent to 527,109 mt.

“We were aware that exports would be facing obstacles in 2015, and that keeping pace with last year’s record performance would be difficult,” said Philip Seng, USMEF president and CEO. “The first-quarter slump was partially due to the West Coast port labor impasse, as well as intense competition from countries that continue to recognize opportunities in several markets. We were expecting to see a stronger rebound in the second quarter – and that did not materialize.”

Seng added that, while marketing budgets remain flat, competitors are beefing up efforts to capture larger shares of the red meat market. Competition continues to be a major factor, along with a strong U.S. dollar that is providing a price advantage for several competitors with slumping currencies. The European Union, for one, has been aggressive in targeting specific markets, and large supplies of European pork are making it into the coveted Asian market. This development is due in large part to the closure of Russia, traditionally the EU’s largest pork export market. Russia’s suspension of pork imports from the EU – originally due to African swine fever but reinforced by a trade embargo related to the conflict in Ukraine – has now lasted more than 18 months.

Australian beef production was expected to ramp down in 2015 as the industry entered herd-rebuilding mode after several years of poor grazing conditions. But with disappointing rainfall in Australia and attractive slaughter cattle prices, beef production and exports remained record-large through the first half of the year – though some slowdown was seen in July.

Mexico, Korea were first-half bright spots for U.S. pork
June pork exports to Mexico were the largest since March, up 13 percent from a year ago to 62,112 mt. While first-half export value ($619.3 million, down 18 percent) reflected lower prices for hams and other cuts typically shipped to Mexico, export volume remained very strong (353,296 mt, up 6 percent).

Pork exports to South Korea moderated in June to 12,512 mt, up 55 percent from a year ago but the smallest volume since November 2014. June export value was $33.1 million, up 17 percent. Korea’s first-half performance was stellar, with volume increasing 40 percent to 108,198 mt and value up 35 percent to $318.2 million.

Other first-half results for U.S. pork exports included:
    Japan remained the leading value destination for U.S. pork, despite a 20 percent decline from last year’s pace to $835.4 million. Export volume to Japan fell 13 percent to 221,776, as Japan’s total imports also slowed.

    Exports to the China/Hong Kong region fell 17 percent in volume (157,860 mt) and 22 percent in value ($330.9 million) from a year ago as the U.S. industry continues to lose market share due to lack of China-eligible supplies and the small number of plants approved to serve China. Demand for imported pork in China is on the rise due to an uptick in domestic prices and tight domestic supplies, but these opportunities are mostly being seized by European suppliers.

    Exports to Canada held up relatively well, considering the weakness of the Canadian dollar versus the U.S. dollar. Export volume was down 6 percent to 95,443 mt while value fell 10 percent to $382.7 million.

    Small markets performing well in the first half included the Dominican Republic (up 31 percent in volume to 13,006 mt and 11 percent in value to $29.6 million), Honduras (up 22 percent in volume to 10,119 mt and 3 percent in value to $21.7 million), Chile (up 10 percent in volume to 7,146 mt and 25 percent in value to $20.4 million), and Guatemala (7,072 mt, up 20 percent with value at $19.7 million, up 11 percent). June results were particularly impressive for Chile, as volume nearly doubled from a year ago to 1,237 mt and value was up 57 percent to $3 million.

“Our limited access to China has become a major obstacle for U.S. pork, especially with competition intensifying in so many other global markets,” Seng said. “It’s a situation that absolutely must be addressed in order for U.S. exports to regain momentum.”

January-June pork exports accounted for 25 percent of total production and 21 percent for muscle cuts only (down from 28 percent and 24 percent, respectively, in the first half of last year). Export value averaged $50.85 per head slaughtered, down 22 percent year-over-year and 5 percent lower than in 2013.

Beef exports strong to Korea and Taiwan, but most markets lower year-over-year
Beef exports to Korea overcame a slow start in 2015, finishing the first half up 8 percent in volume (61,190 mt) and 12 percent in value ($423.7 million). June exports were the largest in more than two years at 12,622 mt (up 30 percent) valued at $81.8 million (up 17 percent).

“The Korean market could see a brief downturn in July, as economic activity slowed severely in June due to the outbreak of Middle East respiratory syndrome (MERS),” Seng cautioned. “This had a very negative effect on hotel and restaurant traffic and caused a backup in beef inventories. But consumer activity has since recovered, so the impact of MERS on exports should be short-lived.”

First-half beef exports to Taiwan were up 2 percent in volume (16,506 mt) and 13 percent in value ($150.5 million). June was an especially strong month, hitting a record volume of 4,185 mt (up 32 percent from a year ago) valued at $33 million (up 13 percent).

Other first-half results for U.S. beef exports included:
Exports to Japan were down 2 percent from a year ago in both volume (109,010 mt) and value ($676.7 million) – a respectable performance considering the slow start to the year (due in part to port congestion, which slowed demand for chilled beef) and the tariff advantage now enjoyed by Australian beef following implementation of the Japan-Australia Economic Partnership Agreement. U.S. beef remains subject to a 38.5 percent tariff in Japan, while import tariffs on Australian chilled and frozen beef are now 31.5 percent and 28.5 percent, respectively.

    Exports to Mexico fell 7 percent in volume (108,112 mt) and 2 percent in value ($534.1 million) as the weakness of the peso versus the U.S. dollar has had a growing impact on beef demand in recent months.

    The Hong Kong market began to slow near the end of 2014, and that trend continued in the first half of the year, with exports falling 18 percent in volume (59,045 mt) and 12 percent in value ($434.4 million).

    Buoyed by strong demand in the Dominican Republic, exports to the Caribbean were up 3 percent in volume to 11,893 mt and 16 percent in value to $83.2 million.

January-June beef exports accounted for 13 percent of total production and 10 percent for muscle cuts only (down from 14 percent and 11 percent, respectively, in the first half of last year). Export value averaged $291.70 per head of fed slaughter, up 7 percent year-over-year.

Lamb exports show signs of improvement, but still sharply lower year-over-year
U.S. lamb exports endured a difficult first half but volume improved in June, increasing 9 percent from a year ago to 1,076 mt. Despite this increase, however, June export value was still down 30 percent to $1.8 million. First-half exports were down 13 percent in volume (4,755 mt) and 27 percent in value ($10.1 million) from a year ago. While lamb exports achieved promising growth in the Middle East and other emerging markets, these results were offset by sharp declines in Canada and Mexico.



Pesticide Permit Bill Underscores Need for Workable WOTUS Rule

The National Corn Growers Association today called on Congress to pass legislation withdrawing the Waters of the U.S. (WOTUS) rule, in the wake of the Senate Environment & Public Works Committee’s decision to advance a bill easing requirements for pesticide permit applications.

“This bill will cut some regulatory red tape out of the pesticide permitting process,” said Chip Bowling, NCGA President and a farmer from Maryland. “Anything we can do to cut Washington red tape will help farmers. This bill also underscores the problems with the EPA’s new Waters of the U.S. rule. The rule significantly expands the reach and power of the federal government over our farming operations. Every farm and ranch in America now has a WOTUS – and that means more paperwork, more permits, and more hassle, without actually water quality benefits. The EPA and the Army Corps of Engineers must work with farmers to rewrite WOTUS.”

Historically, water quality concerns related to pesticide applications were addressed within the Federal Insecticide, Fungicide and Rodenticide Act, rather than a Clean Water Act permitting program. However, in 2009 a federal court ruled that pesticide users are required to apply for a National Pollutant Discharge Elimination System permit under the Clean Water Act if the chemical is sprayed over, near, or into a body of water.  Under the Federal Insecticide, Fungicide and Rodenticide Act, all pesticides are reviewed and regulated for use with strict instructions on the EPA approved product label. A thorough review and accounting of impacts to water quality and aquatic species is included in every EPA review. Requiring water permits for pesticide applications is redundant and provides no additional environmental benefit.

The Sensible Environmental Protection Act of 2015 (S. 1500), sponsored by Sens. Mike Crapo (R-Idaho) and Claire McCaskill (D-Mo.), would clarify that federal law does not require this redundant permit for already regulated pesticide applications.

“NCGA urges Congress to move forward with this bill, and to pass legislation to withdraw the WOTUS rule and require EPA and the Corps to work with agriculture and other stakeholders to rewrite the rule,” said Bowling.



Withdraw South Africa’s Trade Benefits, Says NPPC

In comments submitted last night, the National Pork Producers Council asked the Obama administration to withdraw or at least limit preferential trade benefits for South Africa because of that country’s reluctance to provide market access to U.S. pork.

“South Africa has shown that it is pleased to take advantage of U.S. preferential trade programs but is unwilling to extend even customary equitable treatment to imports of pork from the United States,” said NPPC in comments to the Office of the U.S. Trade Representative.

South Africa gets duty-free access to the U.S. market for dozens of its products under the African Growth and Opportunity Act (AGOA) and the Generalized System of Preferences (GSP). In 2014, it shipped $1.7 billion of goods to the United States under AGOA and $1.3 billion under the GSP program.

NPPC noted that South Africa enforces “harsh and unjustifiable” import restrictions on U.S. pork to prevent diseases for which there is a negligible risk of transmission from U.S. pork products. The South African Ministry of Agriculture, for example, imposes time and temperature requirements on U.S. pork as mitigation for trichinae, which is nearly non-existent in the U.S. commercial hog herd.

The organization pointed out that the U.S. Department of Agriculture has offered to certify that pork exported to South Africa would only come from farms participating in the U.S. pork industry’s Pork Quality Assurance Plus program, which includes biosecurity measures to prevent exposure of pigs to sources of trichinae. Although the certification has been accepted by a number of other countries, it has been rejected by South Africa.

South Africa is maintaining trade barriers, said NPPC, despite overwhelming evidence that they are unsupported by international standards or any legitimate scientific or World Trade Organization-legal justification and is making no effort to lift them.

“We have undertaken efforts to accommodate South African demands even though we know and its officials know that they are unnecessary,” NPPC said. “We have done this with enormous trepidation because of the risk that other countries will see the South African approach as a model for how to restrict imports without raising tariffs. But it is time to draw the line.

“We believe that South Africa’s eligibility for benefits under AGOA should be withdrawn,” NPPC concluded.



China Signals Market Reforms on Corn; Details and Timing Undetermined

China’s National Development and Reform Commission (NDRC) announced last week that the country will move to a more market-oriented pricing mechanism on corn procurement.

Market-oriented reforms in China’s corn sector have been discussed for several years and while there are outspoken advocates of market liberalization in China, there has also been significant resistance to reforming this policy.

The NDRC is China’s top economic management agency and reports directly to the State Council. While details are yet to be disclosed, the announcement of a policy shift by NDRC is a potentially important signal that China may be prepared to rebalance its trade distorting policies on corn.

At the same time, however, the NDRC indicated it will continue to control grain imports and monitor market trends closely. The announcement suggested that action could be taken as early as this year, although a definite timetable and details of implementation were not specified.

China’s internal price support system for corn, coupled with quotas and non-tariff barriers to corn imports, has distorted markets. Chinese feed manufacturers, livestock producers and ultimately consumers pay the highest feed grain prices in the world. While the size of government owned stocks is a state secret, stocks are widely believed to be very large and increasingly burdensome.

Restrictions on corn imports have also boosted China’s imports of other feed ingredients.

For next year, the U.S. Department of Agriculture (USDA) projects that China will import approximately 19 million metric tons of coarse grains from all sources. Of this total, only 3 million tons (118 million bushels) is projected to be corn, with the bulk being sorghum and barley. China is also the world’s largest importer of distiller's dried grains with solubles (DDGS) and imports significant quantities of cassava, which competes with coarse grains.

Any change in China’s corn policy will thus affect multiple commodities and exporting countries.

The US Grains Council will continue to work in China and around the world on grain exporting issues that affect U.S. farmers and their customers.



Next Steps Uncertain After No TPP Agreement Reached

Hopes ran high that an agreement would be reached last week on the Trans-Pacific Partnership (TPP) during a ministerial meeting in Hawaii, but negotiators for the 12 TPP countries adjourned last Friday with major issues outstanding and the way forward uncertain.

A joint statement from the involved trade ministers professed optimism, claiming that significant progress had been made and pledging that work would continue. Among the unresolved matters, however, are tough issues such as market access for automobiles and dairy products, as well as the data exclusivity period for biologic drugs, a key intellectual property question.

“The failure to achieve an agreement last week is a concern because the political clock is ticking,” said Floyd Gaibler, US Grains Council director of trade policy and biotechnology. “The Canadian election campaign is already underway, and the United States will be in full campaign mode by the beginning of next year.

“Given the mandatory time periods for public and Congressional review, it will now be very difficult for Congress to vote this year on a TPP deal even if the remaining issues are settled quickly. Meanwhile, the politics of ratification get more polarized and more gridlocked every day as the elections draw nearer.”

No date has yet been set for a resumption of TPP talks though the pending agreement is likely to be top of mind at another ministerial meeting planned later this month in connection with the Aug. 22-25 meeting of the Association of Southeast Asian Nations (ASEAN) in Kuala Lumpur.

The Council engages in TPP negotiations on behalf of the grains industry and will continue to urge further progress on this critical trade policy priority.



WTO Retaliation Threats for COOL "Tremendously Overstated"

National Farmers Union (NFU) President Roger Johnson assured key leaders of the U.S. Senate Agriculture Committee that recent estimates by the Chamber of Commerce and others regarding the retaliatory tariffs submitted to the World Trade Organization (WTO) were way off the mark.

“The Chamber [of Commerce] might be pleased to learn that the $3 billion of retaliatory tariffs claimed by our Canadian friends are tremendously overstated. The U.S. Trade Representative (USTR) recently provided a report to the WTO that highlighted several flaws in the Canadian and Mexican reports and more accurately estimated a level of retaliation closer to $90 million,” noted Johnson in a letter today to Senate Agriculture Committee Chairman Pat Roberts and Ranking Member Debbie Stabenow. “That comes out to under $0.28 per person per year in the United States, or about one-third of a penny per pound of beef and pork in the U.S.”

Johnson argued that although retaliation has been grossly overstated, it is nevertheless not a desired outcome, and urged support for the Hoeven-Stabenow amendment for voluntary COOL. “The voluntary program will allow for those who would like to use an origin label to continue to do so, while preventing labels from being misused or misleading.”

The U.S. Trade Representative has said that both options being debated in the Senate – the Roberts amendment and the Hoeven-Stabenow amendment – ‘have the potential to constitute compliance with U.S. WTO obligations.’  U.S. Secretary of Agriculture Tom Vilsack has also praised the bipartisan compromise bill.

Johnson noted that Canada and Mexico may not like the U.S. definition of what a product of the U.S. is, but it is America’s sovereign right as a nation to determine and maintain that definition, especially in the context of a voluntary program. “If packers do not want to segregate, they do not have to. It will not be required, contrary to the Chamber’s claim; it is completely voluntary,” he pointed out. “Canadian Agriculture Minister Gerry Ritz even argued during the WTO process that the U.S. should adopt a voluntary label as a means of resolving the dispute.”

“The WTO would be permitted to, and has historically considered, any new legislation that changes the provisions that were found to be out of trade compliance,” noted the letter. “The amount of any arbitration could be completely eliminated when considering a change from a mandatory program to a voluntary program.”

“The WTO sees retaliation as a last resort and a temporary solution while parties can work towards a solution that works for everyone. We have found that solution – it is the Hoeven-Stabenow amendment,” he concluded.



Minneapolis Food Leaders To Participate In Local Discussion On National Food Sourcing Issues

From environmental sustainability to GMO safety and animal welfare, consumers increasingly want to know if the methods used to grow and raise food are impacting their long-term health or that of the planet. These topics and more will be the focus of an August 11 panel discussion featuring local representatives from across the food value chain. The event, titled, "Farm to Consumer: Bridging the Gap between Consumer Concerns and Food Production and Sourcing Decisions," is part of the U.S. Farmers & Ranchers Alliance's Food Dialogues series, and is co-sponsored by the Minnesota Soybean Research & Promotion Council and Nebraska Soybean Board.

This event will be moderated by Minnesota native and Bloomberg agriculture policy journalist, Alan Bjerga, and will feature panelists including local farmers and food executives, including:
-    Bertrand Weber, director of Minneapolis Public Schools Culinary & Nutrition Services
-    Bill Gordon, corn and soybean farmer, Gordon Farms, Worthington, Minn.
-    Greg Reynolds, Riverbend Farm, Delano, Minn.
-    Jen Haugen, Registered Dietitian, formerly of Hy-Vee
-    Jorge Guzman, executive chef, Surly Brewing
-    Rochelle Krusemark, corn, soybean, pork and beef farmer, Krusemark Farms, Trimont, Minn.
-    Steve Peterson, former director of sustainable sourcing at General Mills
-    Steve Polski, senior director, sustainability, Cargill

"We're excited that this panel line-up includes diverse and local perspectives on food production and sourcing," said Randy Krotz, CEO, U.S. Farmers & Ranchers Alliance (USFRA). "By bringing together voices from across the spectrum to a local setting, the discussion will dive deep into consumer concerns and what local food companies, large corporations, organizations and Minnesota farmers are doing to better adapt and communicate." 

The Food Dialogues: Minneapolis is co-sponsored by the Minnesota Soybean Research & Promotion Council,Nebraska Soybean Board and the U.S. Farmers & Ranchers Alliance. The August 11 event will be held at the Mill City Museum, with check-in and a networking reception beginning at 5:30 p.m. The panel discussion will begin at 7 p.m. For more details on the event, panelist bios and to register to attend, visit http://www.fooddialogues.com/events/fd-minneapolis. Follow the event online on Twitter @USFRA using #FoodD. A full-recording of the event will be available for viewing online at www.fooddialogues.com on Thursday, August 13.



One Week Remains! Apply to Serve on NCGA Action Teams, Committees Today

The National Corn Growers Association reminds growers that only one week remains to apply to serve on a NCGA action team or committee in the 2016 fiscal year, which begins Oct. 1. This service provides growers an opportunity to play an active role in shaping the future of their industry and to become a part of the national agricultural leadership community.

"As a grassroots organization, NCGA relies on its members to step forward and take an active role in developing the policies that will lead our industry forward," said NCGA First Vice President Rob Elliott. "We have opportunities this year in all of the areas the organization touches, thus allowing members to take their involvement to the next level while exploring in great depth the areas which interest them the most. I encourage those interested to apply prior to the August 14 deadline to ensure consideration."

Positions are available on all teams and committees: CornPAC, Ethanol Committee, Grower Services Action Team, Production and Stewardship Action Team, Public Policy Action Team, Research and Business Development Action Team and Trade Policy and Biotechnology Action Team. Positions are also available on the Corn Board standing committees, which are the Bylaws Committee and Nominating Committee.

Qualified applicants must be a NCGA member or prospective member and/or contribute to their state checkoff program, if applicable. Ideal candidates have interest or expertise in a particular area relevant to the team focus.

Action teams and committees are composed of up to 14 voting members representing a cross-section of corn production. The teams may utilize staff, growers and industry members to serve as resources, as determined by the action team or committee chair.

Duties of the action teams and committees include:
·       Conducting an annual planning process regarding the work and results of the team.

·       Defining programs to be implemented by the action team and implementing them with evaluation measurement for each program.

·       Seeking necessary information and expertise to advise the team.

·       Advising the Corn Board on policy positions or requesting action of the Corn Board.

·       Keeping the Corn Board informed of all obligations and contractual relationships entered into and seeking Corn Board approval for contracts or obligations that are out of the ordinary, such as those that are multi-year obligations.

·       Working through the Corn Board on public policy actions or positions.

Deadline for receipt of applications in the state corn association offices, where applicable, is August 14. State offices will then coordinate applications and submit directly to NCGA by August 19. Interested parties can contact Kathy Baker at the NCGA office with questions, at (636) 733-9004.



The Andersons, Inc. Reports Second Quarter Results

The Andersons, Inc. (NASDAQ: ANDE) announces financial results for the second quarter ended June 30, 2015.

Highlights
-    Rail Group has continued strong performance
-    Ethanol Group earnings improve significantly from the first quarter
-    Plant Nutrient Group acquires the nutrient business of Kay Flo Industries
-    Unusually wet weather negatively impacts the Plant Nutrient Group

"The Rail Group's focus on asset management and operational performance helped produce a great quarter.  The Ethanol Group had strong results as well, due primarily to an improvement in margins.  The ethanol team also continued to benefit from investments made in technology and process improvement," said CEO Mike Anderson.  "The weather, however, did not cooperate in some of our markets, which led to decreased profitability in our Plant Nutrient Group.  Extremely wet weather the last half of the second quarter impaired the normal application of crop nutrients in the Eastern corn-belt.  We expect to return to normal nutrient volumes in the fall.  Our results this quarter once again demonstrate the value of having a diversified portfolio of businesses.  The most recent addition to our portfolio, Kay Flo, has already added new markets, customers and product lines to the Company.  Additionally, significant cross selling opportunities and synergies have been identified that will pay dividends in 2016 and beyond."

Key Highlights
Net income for the second quarter of 2015 attributable to the Company was $31.1 million, or $1.09 per diluted share.  Last year second quarter net income was $44.3 million, or $1.56 per diluted share.  Net income through June this year was $35.2 million, or $1.23 per diluted share.  When excluding the partial redemption of our investment in Lansing Trade Group last year, adjusted net income through June of 2014 was $56.4 million, or $1.98 per diluted share.  (See the Reconciliation to Adjusted Net Income Table for a discussion and reconciliation of income and adjusted income.)  Second quarter 2015 revenues were $1.2 billion compared to $1.3 billion in revenues the same period last year.

    The Rail Group achieved pre-tax income of $21.7 million this quarter.  The group continues to have strong base leasing business results and the rail repair business had a $0.7 million year over year improvement.  The group also had income of $10.6 million related to a lease settlement during the quarter.

    The Rail Group's utilization rate increased for the tenth consecutive quarter and averaged 93.5 percent this quarter.

    The Ethanol Group executed well operationally and achieved record second quarter ethanol production volumes.  Strong results from the sale of co-products were also seen.

    Wet weather reduced nutrient application in a number of areas in which the Plant Nutrient Group does business.  This led to reduced margins and volume for the wholesale nutrient business, and prevented the group from regaining the volume shortfall seen in the prior two quarters.  Further, there was a $3.0 million negative impact to income this quarter related to the Kay Flo acquisition.

    The Grain Group's results were impacted by lower margins and volume, which resulted primarily from lower than expected movement of grain off farm, and lower forward contracting activity. 



ADM Reports Second Quarter Adjusted Earnings of $0.60 per Share

Daniels Midland Company (NYSE: ADM) today reported financial results for the quarter ended June 30, 2015.

The company reported adjusted earnings per share1 of $0.60, down from $0.79 in the same period last year. Adjusted segment operating profit1 was $724 million, down 13 percent from $835 million in the year-ago period. Net earnings for the quarter were $386 million, or $0.62 per share, and segment operating profit was $808 million.

Our second-quarter results demonstrate the strength and value of our geographic and business portfolio diversity, said ADM Chief Executive Officer Juan Luciano.

In Corn, domestic and export demand for ethanol was robust, but record industry production limited margins. This was partially offset by strong results from our corn sweeteners and starches business.

In Oilseeds, good meal demand supported strong North American soybean crushing results. And
South American origination and export volumes were up, leading to good throughput at our expanded origination and port network. These, combined with the flexibility of our global crush plants, helped the Oilseeds team deliver another strong performance.

The WFSI team had an excellent quarter and continues to make great progress toward achieving
their targeted cost and revenue synergies.

Ag Services earnings were impacted by lower margins and volumes of North American exports, as
they were less competitive globally, and by a sharp upward move in commodity prices at the end of
the quarter. But, within our Ag Services segment, the milling business had record second-quarter
results.

We've continued to advance our strategic plan that's improving our ROIC and growing our EVA.
Among numerous other actions, we closed the sale of our global chocolate business to Cargill; we
closed the Barcarena port transaction with Glencore in June; and we remain on track to close both
our Eaststarch transaction and the sale of our global cocoa business later this year.

ADM Directors Declare Cash Dividend
Archer Daniels Midland Company’s (NYSE: ADM) Board of Directors has declared a cash dividend of 28.0 cents per share on the company’s common stock payable Sept. 9, 2015, to Stockholders of record Aug. 19, 2015.

This is ADM’s 335th consecutive quarterly payment, a record of 83 years of uninterrupted dividends. As of June 30, 2015, there were 613,707,010 shares of ADM common stock outstanding.



Land O’Lakes, Inc. Announces Second Quarter Results

Land O’Lakes, Inc. today announced second quarter financial results, reporting year-to-date net sales of $7.1 billion and net earnings of $180 million for the period ending June 30, 2015. Second quarter net earnings were $80.9 million on sales of $3.4 billion. These results fall below the same six-month period in 2014.

“Our overall result through the second quarter continues to be negatively impacted by declining commodity markets with results below last year’s record first half,” stated Chris Policinski, Land O’Lakes, Inc. President and CEO. “Our core businesses continue to perform well and compete strongly in growing markets with many segments seeing increased volume and market share. We continue to invest in our core businesses to add value for our owners and customers and to drive future growth. Our Purina Animal Nutrition group has performed particularly well, posting record earnings through the second quarter on the focused business improvement efforts and the strength of innovative product offerings.”

Animal feed, including Purina Animal Nutrition, continued to see strong results through the second quarter of 2015, driven by strong margins in the Livestock and Lifestyle portfolios. Pre-tax earnings continue to exceed the same period during 2014.

The crop inputs segment, which includes WinField Solutions, is performing below 2014’s record levels, driven by lower volumes and margins as a result of lower commodity prices and increased competitive activity.

The dairy foods segment continued to be adversely affected by declining milk powder and cheese markets. Performance remained strong in the retail branded butter products and foodservice categories with growth in volume and market share.



USDA Schedules Hearing on a California Federal Milk Marketing Order

Today, the U.S. Department of Agriculture (USDA) announced that a hearing has been scheduled to consider proposals to establish a Federal Milk Marketing Order (FMMO) in California.  The hearing – which experts have indicated is expected to last a number of weeks or even months – will begin on September 22, 2015 at 9:00 am at the Clovis Veterans Memorial District Building (808 4th Street in Clovis, California).

In response to today’s announcement, MPC General Manager Rob Vandenheuvel issued the following statement:

“Milk Producers Council’s Board of Directors is excited to see this important process move forward.  While California’s dairy industry thrived for many years under its State-run Marketing Order, that system has failed to facilitate a competitive farm-gate milk price in recent years, resulting in our State’s manufacturers receiving a massive ‘California Discount’ on the milk they buy, to the tune of nearly $2 billion over the past five-plus years.  We greatly appreciate the leadership of the State’s three major dairy cooperatives in submitting their proposal for a California Federal Milk Marketing Order, and join with our fellow producer-run trade associations in strongly supporting that proposal.  We look forward to the opportunity to present our case to USDA in the upcoming hearing.”

In their announcement, USDA identified the four proposals that will be considered in the upcoming hearing.  The proposals were submitted by (the first two are complete proposals; the last two are focused only on specific pieces of a CA-FMMO):
-    The three major California cooperatives (California Dairies, Inc., Dairy Farmers of America and Land O’Lakes) (with unified support from the boards of California Dairy Campaign, MPC and Western United Dairymen)
-    The Dairy Institute of California (on behalf of the California milk processors they represent)
-    The California Producer Handler Association (on behalf of Foster Dairy Farms, Hollandia Dairy, Producers Dairy Foods and Rockview Dairies)
-    Ponderosa Dairy (a large dairy farm in Amargosa Valley, Nevada)

MPC has begun and will be continuing a series of articles in our newsletter looking into the details of the various proposals.  If you’ve missed the first two in that series, you can find them on our website at: http://www.milkproducerscouncil.org/cafmmo.htm.

You can also find more information on the proposals or the USDA process by visiting their website at: http://www.ams.usda.gov/rules-regulations/moa/dairy/ca.