Thursday September 17 Ag News

Rural Mainstreet Index Falls Below Growth Neutral for September 

The Creighton University Heider College of Business Rural Mainstreet Index for September fell from August’s weak 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 49.0 from August’s growth neutral 50.0.

“This is the second straight month the overall index has declined reflecting weakness stemming from lower agricultural and energy commodity prices," 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 September increased to 35.5 from 32.7 in August. “This is the 22nd straight month the index has moved 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. On an annualized basis farmland prices are declining by 6 percent to 7 percent,” said Goss.

The September farm equipment-sales index was unchanged from August’s anemic 14.2. “The 2014 and 2015 downturns in farm income continue to reduce sales and production of agriculture equipment dealers and producers across the region. Bankers remain pessimistic about the short and intermediate prospects for agriculture equipment dealers and producers on Rural Mainstreet,” said Goss.

Nebraska: The Nebraska RMI for September slumped to 47.3 from 48.4 in August. The state’s farmland-price index fell to 18.7 from August’s 19.6. Nebraska’s new-hiring index slumped to 48.6 from 58.0 in August.

Iowa: The September RMI for Iowa improved to 54.2 from August’s 53.4. Iowa’s farmland-price index for September rose to 47.2 from August’s 44.0. Iowa’s new-hiring index for September decreased to 60.0 from 67.8 in August.

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.



NDA Director Greg Ibach assumes national leadership role

Nebraska Department of Agriculture (NDA) Director Greg Ibach has been elected president of the National Association of State Departments of Agriculture (NASDA). Ibach assumed the office of president at the NASDA annual meeting being held in Hawaii, after having served as the organization’s vice president over the past year.

NASDA is a nonpartisan, nonprofit association which represents the elected and appointed commissioners, secretaries and directors of the departments of agriculture in all 50 states and four U.S. territories. The association is dedicated to the development, implementation and communication of sound public policy and programs that promote the American agricultural industry, while protecting consumers and the environment.

“NASDA has been vital in providing a direct voice for agriculture to members of Congress and federal government agencies,” said Ibach. “I plan to work diligently in the year ahead to make sure state departments of agriculture continue to present a unified front on key issues facing our nation’s farmers and ranchers. We have a great deal of work to do to advance the best interests of agriculture each day.”

Ibach has been active in NASDA since taking over as the director of NDA in 2005. Most recently Ibach has served as chair of the Marketing and International Trade Committee.

“I know Greg will represent American agriculture well, while at the same time protecting and supporting farmers, ranchers and agri-businesses in Nebraska,” said Gov. Pete Ricketts. “Nebraskans can be proud to have our agriculture director in another position of national influence.”

As president, Ibach will host the 100th Anniversary of the association’s annual meeting, which will be held in Lincoln, Nebraska, Sept. 21-24, 2016.



NDA CONFIRMS ADDITIONAL VESICULAR STOMATITIS CASES IN HORSES

The Nebraska Department of Agriculture (NDA) this week has confirmed additional cases of Vesicular Stomatitis (VS) in Panhandle horses. State Veterinarian Dr. Dennis Hughes said NDA has confirmed a total of five cases, including the case from last week. Four of those cases are in Scotts Bluff County and one is in Sioux County. Five additional cases are being investigated with test results pending, including four in Scotts Bluff County and a fifth in Lincoln County.

Hughes said the additional cases are not unexpected, based on transmission patterns in other states where the disease is present, and he is encouraging horse and cattle owners to take precautions, particularly with animals that may be comingling with other animals at events over the next several months.

“We just want owners to be aware of the cases and consider taking precautions, especially now that we know the disease is spreading in Nebraska,” Hughes said. “The primary way the virus is transmitted is from biting insects or midges, so consider treatments to reduce flies and mosquitos in quarters where animals are housed. We also want owners to be cognizant of the fact that VS also can be spread by nose-to-nose contact between animals.”

VS is a viral disease which primarily affects horses and cattle, but can also affect sheep, goats and swine. It causes blister-like lesions to form in the mouth and on the dental pad, tongue, lips, nostrils, hooves and teats. As a result of the lesions, infected animals may refuse to eat and drink, which leads to severe weight loss.

NDA has quarantined the livestock on all affected farms.

“The virus itself usually runs its course in five to seven days, and it can take up to an additional seven days for that infected animal to recover from the symptoms,” said Hughes.

Hughes said Colorado, Wyoming and South Dakota all have VS cases at this time, and several of the Wyoming cases are near the Nebraska Panhandle border.

“The case we are investigating in Lincoln County involved a horse that recently had been in a competition in Wyoming,” Hughes said.

Hughes said that due to last week’s confirmed VS finding, he and officials for the Aksarben Horse Show, scheduled for this weekend at the Lancaster Event Center in Lincoln, and the Aksarben Stock Show and Rodeo, scheduled for Sept. 24-27, in Omaha, have agreed to put in place new requirements for horse and cattle exhibitors. Horses arriving at the shows from anywhere within Nebraska will need to have seen a veterinarian within 48 hours. The 48-hour rule also will apply to any cattle coming to the show from the Nebraska Panhandle counties.

Hughes is encouraging the managers of other livestock exhibitions and events to consider similar requirements.

“Unfortunately, until cold weather moves in, VS will be a threat,” Hughes said. Freezing temperatures kill the insects that spread the virus.

For more information on VS, visit: http://www.nda.nebraska.gov/animal/diseases/vs/index.html.



MAKING SILAGE OUT OF DRY CORN
Bruce Anderson, UNL Extension Forage Specialist

               Last week a couple farmers telephoned me, concerned that the corn they were chopping for silage was too dry.  They knew that dry silage often heats and molds, lowering its energy and protein digestibility.  This happens primarily because dry silage is difficult to pack, which allows more oxygen to remain imbedded inside the silage.

               Many corn fields are quickly getting too dry for best silage making.  Adding water to increase moisture content is next to impossible.  It takes about 7 gallons of water for each ton of silage to raise moisture content just one point.  Even if you have enough water the chopped corn can’t absorb it fast enough to do any good.

               Another solution may be to blend a wetter feed, like fresh alfalfa, forage sorghum, or green soybeans with dry corn.  Or maybe some later planted corn that’s still quite green.  It can be tricky to get the right combination, but it can produce excellent silage.

               Your main goal must be to minimize oxygen in your silage.  Another way to help accomplish this is to adjust knives to cut finer.  Also, add extra packing weight, even if the chopped corn seems to spring right back up at you.  I also suggest saving your wettest forage for the top layer.  This helps add extra packing weight and gets better sealing.  If you do have water handy, apply it to this top layer for even more packing weight.  And, of course, always cover dry silage with plastic to prevent outside air from seeping in.

               Get the moisture right for the best silage.  But if it is too dry, chop extra fine, pack well, and cover with plastic for best results.



2015 Rural Futures Conference Oct. 21-22 at NCTA

“Hope Inspires Vision” is the theme of the third national Rural Futures Conference, scheduled for Oct. 21-23 in two Nebraska locations, including the Nebraska College of Technical Agriculture in Curtis.

Registration for the conference, which drew a sold-out crowd of more than 500 when it was last held in 2013, is currently open at http://rfc.nebraska.edu. The conference is hosted by the Rural Futures Institute at the University of Nebraska.

Attendees from the Curtis area will be able to participate in this year’s conference at NCTA on Oct. 21 and 22. Registration is $100 for the Curtis location ($20 for high school and college students). The conference also will be offered at Nebraska Innovation Campus in Lincoln.

“The Rural Futures Institute has been known for its ingenuity since its start, and the Nebraska College of Technical Agriculture is pleased to be a partner in taking that innovation one step further by hosting the conference simultaneously here in Curtis,” said Ron Rosati, NCTA dean.

“Entrepreneurs, business leaders, agricultural producers and students from high schools and colleges throughout the region will be joining us at NCTA to share in this live, rural perspective close to where we work and live,” Rosati said.

Conference sessions will encourage attendees to work together to build hope and develop a vision for invigorating rural communities, he added.

The conference kicks off on the evening of Oct. 21 with a dialogue session between Howard G. Buffett and Howard W. Buffett, authors of 40 Chances: Finding Hope in a Hungry World, a book about the limited opportunities people have to make a difference in the world.

Ronnie Green, NU vice president of agriculture and natural resources and senior vice chancellor for academic affairs and Harlan Vice Chancellor of the University of Nebraska-Lincoln’s Institute for Agriculture and Natural Resources, will moderate the dialog.

The Buffetts’ session, “Finding Hope: Pioneering Your 40 Chances,” is free and open to the public and is jointly sponsored with the Heuermann Lectures at IANR.  NCTA participants are invited for pre-session refreshments at 4:45 p.m. at NCTA’s Nebraska Agriculture Industry Education Center.

Other conference speakers include Clifton Taulbert, a noted author, entrepreneur and businessman who is president and CEO of the Freemount Corp., a human capital development company; and Shane Lopez, author of Making Hope Happen and a leading Gallup researcher on the science of hope. University of Nebraska President Hank Bounds will make opening remarks, “Dream Big With Me,” on the morning of Oct. 22.

“We know that hope matters tremendously to the success of rural communities,” said Chuck Schroeder, founding executive director of the Rural Futures Institute. “Active hope, combined with a strong vision for the future, can energize rural people and places and ensure that rural communities are a viable choice for young people to live and work.”

Speakers involved at the Curtis site are Anne Burkholder, Will Feed, Inc., Cozad; Ben Blecha, Ace Ortho Solutions, Benkelman; Ken Rahjes, AgView, Elwood; Sarah Pinet, Victory Hill Farm, Scottsbluff; and Barry Fox, Kinkaider Brewing Company, Broken  Bow.  Educators from four NCTA partner high schools will be bringing students and participating as well on Oct 22. They are from Cambridge, Cozad, Elm Creek and York.

“Our first two conferences in 2012 and 2013 confirmed our thinking that the long-term economic success of rural communities is a critical area for research and engagement – one in which the University of Nebraska is well-positioned to play a leadership role,” Schroeder adds. “We’re excited to again bring together stakeholders from Nebraska and beyond to share our best ideas.”

Other conference sessions will focus on entrepreneurship, broadband development, civic engagement, transdisciplinary education, eco-education, innovation and youth leadership. Faculty and students also will have the opportunity to present posters on research questions that showcase new knowledge and ideas relevant to the conference theme.

“The access for rural residents through the latest in communication technologies is vital for this conference,” Rosati adds. “We hope many will take advantage of this great opportunity here in Curtis.”

Activities at Lincoln include the first-ever Rural Opportunities Fair on Oct. 21, an event similar to a career fair in which students will have a chance to explore opportunities to live and work in rural communities across Nebraska and the region. Conference activities on Oct. 23 in Lincoln include remarks from Gov. Pete Ricketts, breakout sessions, a panel discussion and closing remarks from Schroeder.

Complete conference details with a full agenda, registration information, speaker biographies, poster session guidelines and more, are available at http://rfc.nebraska.edu.



Beef Checkoff Sets FY2016 Plan of Work

The Cattlemen’s Beef Board will invest about $42 million into programs of beef promotion, research, consumer information, industry information, foreign marketing and producer communications in fiscal year 2016, if this week’s recommendation of the Beef Promotion Operating Committee is approved by USDA, following review by the full Beef Board .

In action concluding its Sept. 15-16 meeting in Denver, the Operating Committee — including 10 members of the Beef Board and 10 members of the Federation of State Beef Councils — approved checkoff funding for a total of 11 “Authorization Requests,” or proposals for checkoff funding, in the fiscal year beginning Oct. 1, 2015. The committee also recommended full Beef Board approval of a budget amendment to reflect the split of funding between budget categories affected by their decisions.

"Tremendous efforts go into making decisions about responsible investment of producers’ and importers’ hard-earned dollars into checkoff programs that produce results for its investors,” said Beef Board and Operating Committee Chairman Jimmy Maxey, a cattle producer from California.

“This committee spent a full day listening to proposals for checkoff funding from numerous potential beef-industry contractors, then engaged in extensive discussions before making important decisions about how we invest this industry’s checkoff dollars,” Maxey said. “After members of the Beef Board and Federation of State Beef Councils worked over months to help develop efficient programs for fiscal 2016, it’s always a challenge to cut back some of those viable programs to meet our budget challenges, but I feel confident that the plan of work we created for fiscal 2016 will put us in a position to continue increasing consumer confidence in and preference for beef over other protein options.” Cuts from contractor proposals to meet budget requirements totaled $696,200.

In the end, the Operating Committee approved proposals from seven national beef organizations for funding through the FY16 Cattlemen’s Beef Board budget, as follows:
    National Cattlemen’s Beef Association (four proposals for $30.3 million)
    U.S. Meat Export Federation (one proposal for $8.4 million)
    Cattlemen’s Beef Board (one proposal for $1.5 million)
    North American Meat Association (two proposals for $1 million)
    Meat Importers Council of America (one proposal for $350,800)
    American Farm Bureau Foundation for Agriculture (one proposal for $400,700)
    National Livestock Producers Association (one proposal for $47,500)

Broken out by budget component, the Fiscal Year 2016 Plan of Work for the Cattlemen’s Beef Board budget includes:

    $9 million for promotion programs, including continuation of the checkoff’s consumer digital advertising program, as well as veal promotion.

    $10.3 million for research programs, focusing on a variety of critical issues, including pre- and post-harvest beef safety research, product quality research, human nutrition research and scientific affairs, market research, and beef and culinary innovations.

    $8.1 million for consumer information programs, including a Northeast public relations initiative, national consumer public relations, including, nutrition-influencer relations, and work with primary- and secondary-school curriculum directors nationwide to get accurate information about the beef industry into classrooms of today’s youth.

    $4.7 million for industry information programs, comprising dissemination of accurate information about the beef industry to counter misinformation from anti-beef groups and others, as well as funding for checkoff participation in a fifth annual national industrywide symposium focused on discussion and dissemination of information about antibiotic use.

    $8.4 million for foreign marketing and education in some 80 countries in the following: ASEAN region; Caribbean; Central America/Dominican Republic; China/Hong Kong; Europe; Japan; Korea; Mexico; Middle East; Russia/Greater Russian Region; South America; Taiwan; and new markets.

    $1.5 million for producer communications, which includes investor outreach using national communications and direct communications to producers and importers about checkoff results; as well as development and utilization of information conduits, such as auction markets; maintenance of a seamless partnership with state beef council producer-communication efforts; and producer attitude research to determine producer attitudes about and desires of their checkoff program.

Separate from the authorization requests, other expenses funded through the total $44.8 million 2016 CBB budget include $221,000 for evaluation, $303,000 for program development, $325,000 for USDA oversight; and about $2 million for administration, which includes costs for Board meetings, legal fees, travel costs, office rental, supplies, equipment, and administrative staff compensation. Fiscal Year 2016 begins Oct. 1, 2015.

“As a cattle producer, the more I continue to see all of the tremendous results that our checkoff dollars are accomplishing, the more thankful I am for the Beef Checkoff Program and the dedicated contractors we have working for us,” Maxey said. “With all of the challenges before our industry, I am proud of the plan we were able to put together for fiscal 2016 on behalf of all beef producers and importers who invest into this program.”

For details about the proposals considered by the Operating Committee this week, visit the Meeting Center on www.MyBeefCheckoff.com.



NPPC Urges Senate To Pass Mandatory Price Reporting Bill

The National Pork Producers Council is urging the Senate to quickly approve legislation reauthorizing the livestock mandatory price reporting law after today’s markup by the Senate Agriculture, Nutrition & Forestry Committee. The law expires Sept. 30.

The statute requires meat packers to report to the U.S. Department of Agriculture the prices they pay for cattle, swine and lambs and other information. USDA publishes twice-daily reports with information on pricing, contracting for purchase, supply and demand conditions for livestock, livestock production and livestock products.

Similar to a bill (H.R. 2051) passed by the House in early June, the Senate agriculture panel-approved measure includes new provisions sought by the U.S. pork industry. One would add a new “Negotiated-Formula” price category to better reflect the total number of hogs negotiated each day regardless of how buyers and sellers arrive at the prices. Another provision would require that pigs sold after 1:30 p.m. be included in the next morning’s price report. Not included in the Senate legislation but in the House version is language to amend the definition of “reporting day” to ensure that price reports are available during government shutdowns or emergency furloughs of federal employees.

“It is imperative that the Senate reauthorize before it expires the mandatory price reporting law, which provides pork producers and meat packers transparent, accurate and timely national market information to make knowledge-based business decisions about selling and buying hogs,” said NPPC President Dr. Ron Prestage, a veterinarian and pork producer from Camden, S.C. “We commend the Senate Agriculture Committee and Chairman [Pat] Roberts [R-Kan.] for getting this done.

“While we’re disappointed that some senators opposed including in the Senate bill language to ensure price reports are published during, for example, a government shutdown, we’ll continue to work with lawmakers to get that important provision enacted.”

The Livestock Mandatory Reporting Act of 1999 changed a voluntary reporting system for hogs, cattle and other livestock at slaughter to a requirement for meat processors to report detailed price and sales data. The law requires packers to submit to USDA regional and national data on a daily and weekly basis for hogs and similar information for cattle and lambs. It also required USDA to establish a library of the types of contracts offered by packers to pork producers for the purchase of hogs, including future delivery purchases.



House Committee to Act on Bonus Depreciation

The House will act this week on legislation that would permanently extend five expired tax breaks, including the bonus depreciation provision that expired at the end of 2014.

The House Ways and Means Committee announced a mark-up on Thursday, Sept. 17. The bonus depreciation provision and other temporary provisions have routinely been temporarily and retroactively extended over the past several years as part of a “tax extenders” package.

The Senate Finance Committee has passed a tax extenders package that includes a two year extension of the 50 percent bonus depreciation provisions as well as other American Soybean Association (ASA) priorities, such as the biodiesel tax credit and the higher Section 179 expensing limits. However, the timeline for consideration by the full Senate or House of Representatives is unknown and the ultimate outcome is still uncertain.



Soy Growers Support Reauthorization of the Grain Standards Act

Soy growers showed support on Thursday for legislation to reauthorize the U.S. Grain Standards Act (USGSA) set to expire at the end of September.

USGSA sets the framework for the functioning of the U.S. Department of Agriculture’s (USDA) Federal Grain Inspection Service (FGIS), requiring official inspections for all export shipments.

The Senate Ag Committee will mark up a reauthorization bill on Thursday, which includes renewal of the USGSA. The American Soybean Association (ASA), along with the National Association of Wheat Growers (NAWG), and several other ag groups, sent a letter to Sens. Pat Roberts (KS) and Debbie Stabenow (MI) this week urging a conclusion the reauthorization process.

“We believe the bill you are considering this morning includes several important provisions that will enable uninterrupted trade in agricultural products and maintain trust in our inspection system,” the letter states. “Specifically, we support the inclusion of the provisions requiring that in instances where a delegated state agency decides to discontinue inspection services, that agency must provide 72-hour notice, as well as the requirement that FGIS immediately take such actions as are necessary to maintain inspections.”

ASA has been active in the development of legislation to reauthorize the USGSA, including testimony by ASA Director Bill Gordon (MN) earlier this year before the Senate Agriculture Committee.  At that hearing, Gordon called on Congress to ensure that grain inspections under USGSA remain both mandatory and continuous, in response to several high-profile work stoppages that disrupted the flow of grain through the supply chain last year.



Wheat Growers Pleased by Senate Ag Committee Action on Grain Standards Act

The National Association of Wheat Growers (NAWG) is pleased by the Senate Agriculture Committee action this morning on the Grain Standards Act that sets the framework for the functioning of the U.S. Department of Agriculture’s Federal Grain Inspection Service.

Following is a statement from NAWG President, Brett Blankenship, wheat grower from Washtucna, Wash.:

“NAWG is very supportive of this bipartisan bill. We need to prevent port disruptions like that which we saw at the Port of Vancouver last year. It is vital that we remain the world’s reliable supplier of wheat.  This bill will establish more transparency and will help ensure there is no disruption in inspection services should a delegated state agency discontinue providing services. NAWG urges Congress to act on the bill to prevent a lapse in authorization.”

NAWG also sent a letter of support to the Senate Agriculture Committee. “With the impending expiration of the USGSA at the end of September, it is critically important that Congress conclude the reauthorization process. We believe the bill you are considering includes several important provisions that will enable uninterrupted trade in agricultural products and maintain trust in our inspection system.”

NAWG supports legislation requiring FGIS to take whatever actions are necessary to immediately restore official grain inspection and weighing service wherever and whenever it is disrupted.



Committee Approves Ag Bill Bundle

The Senate Agriculture Committee passed a package of bills on Thursday that reauthorizes and updates laws on grain inspections, mandatory livestock price reporting and the National Forest Foundation.

The package of bills, called the Agriculture Reauthorization Act, reauthorizes the U.S. Grain Standards Act, the Livestock Mandatory Reporting Act and the National Forest Foundation Act through 2020. The first two provisions are set to expire on Sept. 30.

The House and Senate committees have been working together to pass bipartisan reauthorization bills. The House had already passed a version, but later agreed to some changes while working with the Senate. They will need to vote again on the compromise measure, and grain groups believe it will be passed in the next few weeks.



USDA Licenses Diagnostic for Swine Flu Introduced

Pork producers now have access to a comprehensive diagnostic kit designed to test production animals for swine influenza virus (SIV) subtypes with the launch of the VetMAX-Gold SIV Subtyping Kit, the industry's only U.S. Department of Agriculture (USDA)-approved, real-time PCR test of its kind.

Swine have a unique role in the transmission of influenza viruses among species. They are the only animal raised in abundance that can both be infected by and transmit virus to other pigs. When housed in close contact, the pig can serve as a biological mixing vessel, where influenza genes from any susceptible species can combine and undergo re-assortment within the animal to emerge as a new subtype. The complexity of swine influenza diagnostics requires a robust molecular subtyping solution for reliable differentiation of the swine H and N subtypes, providing information used to monitor and control the disease.

When used in combination with MagMAX Pathogen RNA/DNA Kit and VetMAX-Gold SIV Detection Kit, the VetMAX-Gold SIV Subtyping Kit provides veterinary diagnostic laboratories with a complete screening and subtyping solution that is both rapid and cost-effective. The SIV Detection Kit provides a detection rate of more than 95 percent in positive samples, and can return results in less than a day.

Counted among the top three respiratory health challenges in production animals, SIV is highly contagious, causing fever, lethargy and significant weight loss, resulting in economic loss to producers. Hog production companies have previously estimated the cost of the disease to range from $3.231 to $10.312 per pig as a result of reduced performance or mortality.

Thermo Fisher now offers five USDA-licensed molecular diagnostic tests for customers, more than any other company in the animal health space. Sold under the VetMAX-Gold name, they include: BVDV PI Detection Kit, SIV Detection Kit, SIV Subtyping Kit, Trich Detection Kit and the AIV Detection Kit.