Tuesday August 18 Ag News

Midwest Crop Tour Day 2 - Variability is the Name of the Game

Both Nebraska and Indiana's corn yield estimates on the Pro Farmer Midwest Crop Tour came in lower than USDA numbers.

On the eastern leg of the tour, the average yield estimate of Indiana's corn fields came in at 142.9 bushels per acre compared to USDA's estimate of 158 bpa and the 3-year average of 155.2 bpa. Scouts estimated Indiana soybean pod counts in a 3-foot-by-3-foot square at 1,093 pods compared to a 3-year average of 1,146.4 bpa.

On the western leg of the tour, Nebraska's average corn yield was estimated at 165.16 bpa, compared to a 3-year average of 150.2 bpa and USDA's estimate of 187 bpa. Nebraska soybean pod count averaged 1,220, compared to a 3-year average of 1,054 bpa.

Over the past two days, crop tour estimates came in below USDA figures in Ohio, Indiana and Nebraska. South Dakota's crop tour estimates were higher than USDA.

NEBRASKA CORN SHOWS EMERGENCE ISSUES
Scouts on the western leg of the tour spent the second day husking corn and counting pods in central and southeastern Nebraska. Encouraged by a record crop in South Dakota and good tallies from northern Nebraska on Monday, scouts found crops were more variable as they rolled south. Early spring planting had taken a toll on emergence. Although corn appeared to have pollinated well, stand counts dampened yields. Planting date was judged to make a difference between a bumper crop and an average one.

Nebraska's average corn yield was estimated at 165.16 bpa, higher than the 2014 tour estimate of 163.77 bpa and the 3-year average of 150.16 bpa. USDA's August Nebraska estimate of 187 bpa has caused some talk. However, the crop tour typically estimates Nebraska yields 15 bpa light because the tour samples generally 60% dryland fields and the state is actually 60% irrigated, western tour director Chip Flory told DTN. Add the 15 bpa to the tour average, and it's pretty close to Nebraska's average last year of 179 bpa.

The western tour scouts found consistency in corn ear size. Adequate moisture appears to have helped fill those ears.

Soybeans also showed the importance of planting date. Pods in many fields have yet to fill and some fields were found to be still blooming. Recent rains were welcome and soybeans yields are often made in August. Pod counts on the western tour were measured at 1,220 in a 3-foot-by-3-foot square compared to 1,103.26 in 2014 and a 3-year average of 1,045.54. In August, USDA estimated Nebraska's soybean yield at 56 bpa compared to 54 bpa in 2014.



Changes to Nebraska Grain Dealer Act Effective August 30th

The Nebraska Public Service Commission reminds grain dealers and producers that changes to the Grain Dealer Act (Act) become effective August 30. In May, the Legislature passed LB 183 modifying certain portions of the Act. With the effective date just weeks away, the Commission wants dealers and producers to be prepared. Beginning August 30, producers that sell grain to a dealer have 15 days from the last delivery, instead of 30 days, to demand payment from the dealer. The deadlines to negotiate checks received from a dealer and report an insufficient fund check to the PSC were also reduced to 15 days. Failure to comply with the deadlines will result in no security protection for those transactions in the event of a dealer failure.

“The changes to the Dealer Act incentivize prudent business practices within the industry,” said Commission Chair, Jerry Vap of McCook, “these are extremely important changes for those conducting business with grain dealers,” Vap said. “Don’t wait to get your money after delivery is complete,” urged Commissioner Rod Johnson from Sutton. “Delay in seeking payment and reporting any problems to the Commission is risky,” Johnson continued.

LB 183 made other changes as well, including clarifying dealer security coverage applies to first producers, eliminating Commission licensing requirements for dealers utilizing their own grain trucks, and clarifying acceptable financial documents for licensing. More information on LB 183 is available on the Commission’s website at www.psc.nebraska.gov. “The changes in LB 183 are positive for the industry,” said Vap, “we just want to ensure that producers are aware important changes to their marketing plans are happening August 30.”



RYE, TRITICALE, OR WHEAT – WHICH IS BEST?
Bruce Anderson, NE Extension Forage Specialist

               Are you planting or at least thinking about planting wheat, rye, or triticale for early spring forage?  Which one will you choose?

               Which small grain – wheat, rye, or triticale – should you plant this fall for forage next spring?  Let’s look at some of their characteristics to help you select.

               Let’s start with cereal rye.  Rye is your best choice for the earliest grazing possible.  Because it’s early, it also may be the best match for double cropping.  Some varieties provide quite a bit of fall growth, too, if planted early.  Rye also may be the most reliable when planted under stressful conditions.  But it has some drawbacks.  It turns stemmy and matures much earlier than wheat or triticale, losing feed value and palatability earlier in the spring.  Plus, wheat grain producers don’t want it contaminating fields next year.

               Triticale holds on to its feed value best into late spring.  This makes it well suited for hay and silage, or for stretching grazing well into June if you don’t mind starting two or three weeks later compared to rye.  But triticale tends to be a bit more susceptible to winter injury.

               Winter wheat has been the small grain of choice for winter and spring grazing in the southern plains where higher winter temperatures allow growth to continue, although slowly.  Up here where wheat goes dormant, though, its carrying capacity is not as high as triticale or rye.  But it is top quality before stems develop.  And it’s the clear choice if you want the double use as early pasture and then for grain.

               There it is.  Rye for early pasture, triticale for hay, silage, or later grazing, and wheat for grazing plus grain.  You may have other factors affecting your choice, but in general, these guidelines work well.



Cattle ‘Drop Values’ Fall

Meat packers call it the “drop value.” It’s everything that drops off the carcass, including hide and offal. In the past, there’s been a nice little return tied to that drop value. But in a trend that runs counter to the idea of tight supplies, these values have been falling off since last year.

Dave Anderson, Extension economist at Texas A&M, College Station, said the drop value was $11.79 per cwt on fed cattle in late July 2015. For comparison, the drop value at the end of 2014 on fed cattle was $16.24 per cwt.

“That is a substantial amount of money,” Anderson said. “It used to be we talked about that being the profit on the meatpacking side.”

By late summer (mid-July, USDA), hide values were at $4.92 per cwt, or $64 per head. Hides are the highest part of the total drop value. At the end of 2014, hide values were $7.82 per cwt, or $107.53 per head. This represents about a 40% decrease.

As drop values fall, Anderson said the industry is likely to see a negative effect on fed cattle prices. How much of a negative effect will be unclear until feed prices are known.

Anderson believes the strong dollar overseas is the primary reason for the decline in hide values. He explains most hides go overseas for tanning and processing. Economic slowdowns in countries like China can cut into the demand from processors who make leather goods.



DTN Retail Fertilizer Trends

Retail fertilizer prices remained fairly steady in the second week of August 2015, according to retailers tracked by DTN. But it was consolidation of nitrogen manufacturing that stole headlines in the fertilizer world last week.

All eight of the major fertilizers were lower in price compared to a month prior but these moves to the low side were fairly small. DAP averaged $568/ton, MAP $591/ton, potash $479/ton, urea $457/ton, 10-34-0 $631/ton, anhydrous $677/ton, UAN28 $315/ton and UAN32 $356/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.50/lb.N, anhydrous $0.41/lb.N, UAN28 $0.56/lb.N and UAN32 $0.56/lb.N.

Only one of the eight major fertilizers are double digits higher in price compared to August 2014, all while commodity prices are significantly lower from a year ago. 10-34-0 is still 14% higher compared to last year.

One fertilizer is slightly more expensive compared to a year earlier. Potash is up 1% compared to last year.

The remaining six nutrients are now lower compared to retail prices from a year ago. Anhydrous is 2% lower, MAP is 3% less expensive, DAP is 4% lower, UAN32 is 6% less expensive, UAN28 is down 7% and urea is 12% less expensive from a year previous.



AFIA: FDA Crosses Line with Proposal for Monitoring Antibiotics in Ag

The American Feed Industry Association's legal counsel today submitted comments on behalf of the organization to the U.S. Food and Drug Administration on the proposed rulemaking on antimicrobial animal drug sales and distribution reporting. AFIA strongly believes the proposed rule is a giant overstep of the legal boundaries established by Congress in the Animal Drug User Fee Act, as it pushes forward in its overall goal to collect animal drug use data and lower the incidence of antibiotic resistance in humans.

"While AFIA welcomes the proposed changes that would reduce duplicative reporting requirements, AFIA strongly contests the wisdom and FDA's legal authority to require new animal drug sponsors to report species-specific estimates of product sales," the comments state.

"This is a crystal clear example of FDA ignoring congressional intent," said Richard Sellers, AFIA senior vice president of legislative and regulatory affairs. "We are not debating the overall goal--to monitor the use of antibiotics within agriculture--we are debating FDA's legal authority to require new animal drug sponsors to report species-specific distribution estimates. The sponsors do not have that data, and the proposed requirement to 'estimate' it from data extrapolation of expected use is a poor use of the available information."

The proposed rule would require new animal drug sponsors to submit estimates of antimicrobial ingredient sales by species. The estimates would then be submitted as part of the annual distribution reports required by the Animal Drug User Fee Amendments of 2008. "However, Congress has not provided FDA the authority to require reporting of these estimates," the comments remind.

"New animal drug sponsors do not maintain sales distribution records by species. Many of these products are sold as premixes to distributors and licensed feed mills, and at this point, the new animal drug sponsors are no longer responsible for what species of animals actually receive the products," explained Sellers.

"Bad data should not be preferred over a lack of data," the comments state. "Without actual data, an estimate is nothing more than a guess."

"The President's National Action Plan for Combating Antibiotic Resistance requires FDA and USDA to cooperate and develop a plan to collect more detailed farm-level data on usage through the National Animal Health Monitoring System," added Sellers. "This will be much more useful information than what is being suggested in this proposed rulemaking."

AFIA supports sections within the proposed rule that would allow animal drug sponsors an option to exclude annual antimicrobial distribution data from the annual drug experience reports as it would eliminate unnecessary, duplicative reporting requirements for sponsors. The organization also lends support to FDA's proposal that would allow sponsors to report antimicrobial sales by unit versus the volume of active ingredients as it would simplify the distribution reporting process and minimize the tedious recordkeeping burden.

AFIA is working with the Animal Agriculture Coalition, a group of 45 food, feed and fiber groups dedicated to working with Congress and federal agencies for mutual benefit. This group has met with FDA on several occasions to discuss animal drug use data collection and to reach a reasonable consensus on what data are available that will assist in determining use by animal producers. 



Walking the fields: Wet weather exposes wheat to mold and mycotoxins

Before the combines hit the fields this fall for harvest, farmers may want to keep a watchful eye on their crop quality. Preliminary testing over the summer months of the 2015 North America wheat crop, conducted by Alltech’s 37+® mycotoxin analysis, shows an average 3.2 mycotoxins per sample, with Deoxynivalenol (DON) the most predominant toxin.

Produced by Fusarium graminaerum mold, DON is part of the Type B Trichothecene family. At high risk levels, DON can have negative impacts on animal health and productivity, such as a reduction in milk production and weight gain, gut irritation and lower immune response. Critical factors for Fusarium mold growth include heavy rainfall, moderate temperatures, plant immaturity and crop stress or damage from insects, hail and wind.

Summer rainfall levels through Missouri, Iowa, Illinois, Ohio, Michigan and Indiana presented a consistent pattern with areas of high mycotoxin contamination in wheat testing from 1,200 to 2,000 parts per billion (ppb).

“For the past 90 days, we have had above average rainfall. This caused late planting, with some acres not planted at all. This made it difficult to get in to spray or do post planting field work. Wet soil has also created a nitrogen loss situation,” said Dr. Max Hawkins, nutritionist with Alltech’s Mycotoxin Management team. “The next month’s climate will tell us a lot about the severity of any mold and mycotoxin problems. Cool and extended wet weather would not be ideal.”

Hawkins advises farmers to scout fields for any stalk or leaf mold issues, as well as for any damage to plants from insects or weather conditions, such as wind or hail. Also look for any irregularity in the field. Excess rain can create ponds that can drown out or stunt crop growth and generate differences in soil types across a field.

“Crop differences displayed across a field go into the same storage bin or bunker and are mixed, contaminating the entire crop,” Hawkins said. “Once the crop is in the bin, we can get pockets with higher moisture levels, attributing to increased mold growth and spoilage, which in turn can produce mycotoxins and lower the nutrient value of the feed.”

Producers should take the necessary management steps upon harvest to help troubleshoot existing issues with contaminated feedstuffs:
-    Use of a silage inoculant
-    Proper packing and covering of grains
-    Grain drying – dry to 14 percent moisture
-    Use of a proper mycotoxin management program

“The precursors for mold and mycotoxins are in place. Keep an eye on the weather leading up to harvest,” Hawkins said. “It’s still a long time until we have the 2015 crop in the bunker or bin, but we need to be proactive.”



Farmers Show Strong Interest in Soil Health Field Days

Field days to promote practices that improve soil health are underway in Iowa, Illinois and Indiana, with at least a dozen more events planned in those states as well as Ohio and Nebraska. Hosted by the Soil Health Partnership, the field days demonstrate how changing certain practices, such as adding cover crops, can create lasting environmental benefits while potentially increasing farm productivity and income.

On Aug. 4, Don Elsbernd hosted local growers to a tour of his farm near Postville, Iowa to see what management practices he had implemented to improve the health of his soil. "Healthy soils help reduce soil erosion and allow us to more efficiently use our water and applied nutrients," said Elsbernd.

A field day in Harlan, Ind. on Aug. 12 drew more than 100 farmers and others interested in cover crop demonstrations. All told, the organizers estimated more than one million acres were represented at the event.  Indiana SHP field managers Hans Kok and Dan Towery explained the project's mission, which is to catalyze enhanced agricultural sustainability and productivity by demonstrating and communicating the economic and environmental benefits of improved soil health.

"We stressed the benefits of cover crops to improve soil health, selecting appropriate cover crops, and establishment and termination timing," Kok said. "Farmers engaged in a lively discussion, sharing their cover crop experiences with each other."

In Lafayette, Indiana, SHP farmer Brent Bible plans on hosting a field day later this fall. He will discuss the impact of precise fertilizer placement, timing and quantity.

"We don't want to waste money or harm our soil by applying too much fertilizer," said Bible. "Being in the partnership gives you a perspective on improving soil health that looks at trends over time. It's a more disciplined approach. We are doing something unique and exciting with the Soil Health Partnership that will keep these fields sustainable and pumping out great yields long beyond my lifetime."

Field days were also held Monday (Aug. 17) at two farms, one hosted by David, Joe and Chase Brown in Decatur, Ill., and one by Leon Corzine in Assumption, Ill. The next ones are scheduled for Aug. 25 in Gilman, Iowa and Aug. 26 in Bloomington, Ill.

Although each field day concentrates on similar subject matter, the geography and local soil types guide the discussions. This gives testament to the diverse approach the Partnership takes in defining soil health.

An initiative of the National Corn Growers Association, the SHP works closely with diverse organizations including commodity groups, industry, foundations, federal agencies, universities and well-known environmental groups toward the common goal of improving soil health.

For a complete list of Soil Health Field Days, visit SoilHealthPartnership.org or email soilhealth@ncga.com. Events will be added throughout the summer.