Thursday October 23 Ag News

NDA CONTINUES TO BUILD MOMENTUM FOR NEBRASKA AGRICULTURAL EXPORTS WITH HONG KONG VISIT

Nebraska Department of Agriculture (NDA) Director Greg Ibach is furthering the state’s efforts to increase exports of Nebraska meat products with a promotional trip to Hong Kong Oct. 27-29.

“This trip provides us the opportunity for two important objectives,” said Ibach. “We will continue to foster our customer relationships in one of Nebraska’s top meat export markets, Hong Kong. At the same time we are hopeful that at some point China will lift its ban on U.S. beef exports, and we want to make sure they look at Nebraska as their top exporter. Hong Kong could be an important pathway into the Chinese marketplace.”

Joining Ibach on the trip is Dawn Caldwell, a cattle producer from Edgar, Nebraska, who serves on the Nebraska Beef Council. The Council is providing partial funding for Hong Kong promotional activities.

“As a cattle producer I want to meet face to face with some of our best customers to gain knowledge about how we can continue to provide them with quality beef products from Nebraska,” said Caldwell. “Understanding the consumer market in Hong Kong will support our efforts to serve our customers.”

Meetings and events planned during the trip include:
·         A “chef’s table” promotional event intended to maintain current client relationships and build new clients. It is to be attended by Hong Kong representatives of major restaurants, hotels and grocery stores. An acclaimed chef will prepare beef from Nebraska for a first-hand tasting experience.

·         Discussions with the executive chef and food and beverage manager of Hong Kong Disneyland to increase the offerings of Nebraska beef and pork at the resort, which hosts visitors from all across Southeast Asia.

·         A meeting with representatives from several food importers in Southeast Asia.

·         Briefing with members of the American Consulate in Hong Kong and members of the U.S. Meat Export Federation Asian staff to discuss further development of the Asian marketplace for beef and pork from Nebraska, as well as explore specific export opportunities for Nebraska in the Chinese marketplace.

“The food export market is getting tight, and this is the time to stay aggressive in promoting Nebraska meat products,” said Ibach. “Nebraska currently is the number one supplier of American beef to Hong Kong, and we want to keep our place. We also will be showcasing a series of videos that we have translated into Chinese as part of our international communications initiative.”

The series of four customized videos promote beef from Nebraska by telling the story of the people, resources and expertise behind the cattle that are raised in the state from pasture to plate.

In 2014, Hong Kong was the second largest importer of Nebraska beef with exports reaching more than $239 million.



Nebraska Farm Bureau Reminds Farmers to Protect Grain Interests at Harvest

With harvest in full swing, Nebraska Farm Bureau is reminding farmers of recent changes in the state law regarding what they need to do to protect their interests when selling or storing grain, in the event of financial failure by a grain dealer or grain warehouse.

“There’s a lot going on at harvest, but it’s important farmers don’t forget to do their due diligence in securing the protections offered to them under Nebraska Public Service Commission (NPSC) regulations,” said Jay Rempe, Nebraska Farm Bureau vice-president of governmental relations.

Farmers who sell grain have no recourse to a grain dealer’s security posted with the NPSC unless they meet specific requirements. The changes in state law deal with the timing of when farmers must act to secure such protections.

“To receive NPSC protections, farmers need to demand payment from the grain buyer within 15 days after the date of the last shipment of any contract. They also need to cash or negotiate any check or draft issued as payment for the grain within 15 days after issuance,” said Rempe. “The other caveat to protecting themselves is that a farmer must notify the NPSC within 15 days after an apparent loss if they want to be covered under the terms of the grain dealer’s security.”

Similarly, farmers who store grain need to also meet specific requirements to receive NPSC protections.

“In order to be covered by the NPSC required securities of a grain warehouse, farmers need to secure a post-direct delivery storage position within 15 days after the last shipment of any contract,” said Rempe.

Prior to the changes in state law, farmers had 30 days to take similar actions to ensure protections for both the sale and storage of grain. The change in the timing of when farmers must take action were made to improve business practices and help speed up the discovery of grain dealer and grain warehouse insolvency issues.

“The changes in state law took effect Aug. 30, but it’s easy for things to fall through the cracks at harvest when farmers are so focused on getting crops out of the field,” said Rempe.  



ASHFORD SIGNS ON TO YOUNG FARMER SUCCESS ACT

Congressman Brad Ashford (NE-02) today announced his cosponsorship of a bill to incentivize careers in farming for young people. H.R. 2590, the Young Farmer Success Act of 2015, would extend an existing loan forgiveness program for careers in public service to our nation’s farmers.

 “Farmers feed America,” said Ashford, a member of the House Agriculture Committee. “If that’s not public service, I’m not sure what is. Only six percent of our country’s farmers are under the age of 35. We need to incentivize careers in farming to ensure we have a sustainable employment model to protect America’s food security going forward. Everyone who is interested in a career in agriculture should have the opportunity to pursue it without fears of lifelong debt.”

Currently, the Public Service Loan Forgiveness program allows teachers, nurses and employees in public service to receive loan forgiveness under specific circumstances. Qualifying employees must pay their loans on-time and work in public service for 10 years to receive this benefit.

Steven Waller, Dean of Agricultural Sciences and Natural Resources at the University of Nebraska-Lincoln is a strong advocate of the bill. “We are confident that such a proposal could certainly provide an important incentive for students who are reluctant to even consider agribusiness careers because of anticipated student debt,” said Waller.

Executive Director and Co-founder of the National Young Farmers Coalition, Lindsey Lusher Shute said of the bill, “We are extremely proud of the coalition that has come together in support of this bill….If we want to support farm economies and feed our nation, not just for the next five years but for the next five generations and beyond, we must make recruiting young farmers a top priority.”

Under the Young Farmer Success Act, farmers with student loan debt would be required to work for 10 years at a qualified farm or ranch and make loan payments on-time to be eligible for the program. For a farm or ranch to qualify, it must earn a gross profit of at least $35,000 per year.



BUFFETTS DISCUSS HOW TO FIND HOPE IN A HUNGRY WORLD

    Through their travels to places such as Brazil, India, Ghana, Rwanda and Congo, Howard G. Buffett and his son Howard W. Buffett have come to recognize that it's important to understand the country-, culture- and environment-specific challenges every country faces in addressing hunger.

    The Buffetts spoke to an overflow audience at Nebraska Innovation Campus on Wednesday evening in the first Heuermann Lecture of the 2015-16 season.

    The two co-authored the New York Times bestseller “40 Chances: Finding Hope in a Hungry World,” which examines global agriculture, hunger and food systems challenges. The discussion was moderated by Ronnie Green, University of Nebraska vice president, IANR Harlan Vice Chancellor and interim senior vice chancellor for academic affairs at the University of Nebraska-Lincoln.

    Howard W. Buffett began traveling the world with his father, Howard G. Buffett, at 13. Together, they've seen the tough issues facing many areas of the world when it comes to poverty and food security. While observing many horrific scenes at such a young age, Howard W. Buffett began to question why there is so much needless suffering around the world.

    "Part of what we wanted to explore in '40 Chances' was to start digging deeper," said Howard W. Buffett. "Why are there so many people living in these conditions that really don't have to be?"

    While all farmers across the world are facing similar challenges when it comes to insects, drought or flooding, not all have the same resources available to face those challenges. The solutions farmers find in the United States will not translate into solutions for farmers in countries in Africa.

    "Diversity is what changes the risk profile of a small farmer and you can't take that away from them," said Howard G. Buffett. "When you go to those countries and you meet people that have experienced horrendous things in their lives, you can't go home from those experiences without saying, 'That's a place I want to work in, and those are people I want to work with.'"

    Observing these situations firsthand is what has driven the Buffetts to lead the effort to find solutions through the Howard G. Buffett Foundation, a private charitable foundation working to catalyze transformational change in the most impoverished areas of the world. It is also what has led Howard W. Buffett to inspire students as a lecturer at UNL. Students have had the opportunity to meet and learn from people profiled in "40 Chances," which highlights the work of those who have inspired the Buffetts in places many don't have exposure to.

    "'40 Chances' gives a whole mosaic of information and knowledge around international development and agricultural policy that students get a real kick out of," Howard W. Buffett said.

    While he has made an impact in the classroom at UNL, according to him, the opportunity to work with students in Nebraska has been a great opportunity for him.

    "It has been a very rewarding experience for me because there is an amazing student group here at UNL," he said. "I see a lot of former students here and they have been absolute superstars -- off the charts -- so I commend UNL."

    The discussion took place in conjunction with the third national Rural Futures Conference, hosted by the Rural Futures Institute at the University of Nebraska. The conference presents opportunities for people to work together to build hope and develop a vision for invigorating rural communities. According to Howard G. Buffett, there has been a decline in rural America over the years so he believes the conference is one of the most important things happening in the country.

    "We built this country from rural America up," he said. "Rural America has to survive and stay strong. It's the people sitting in this room and coming to this conference that can do that."

    For more information on the conference, visit http://rfc.nebraska.edu or follow the conversation on Twitter using hashtag #RFC2015.

    Heuermann Lectures in the Institute of Agriculture and Natural Resources at UNL are possible through a gift from B. Keith and Norma Heuermann of Phillips. The Heuermanns are longtime university supporters with a strong commitment to Nebraska's production agriculture, natural resources, rural areas and people. Lectures stream live at http://heuermannlectures.unl.edu and are archived at that site soon afterward. They also air on NET2 World at a later date.



USDA Livestock Slaughter Report - Record High Pork Production for September

Commercial red meat production for the United States totaled 4.14 billion pounds in September, up 5 percent from the 3.96 billion pounds produced in September 2014.

Beef production, at 2.09 billion pounds, was 1 percent above the previous year. Cattle slaughter totaled 2.47 million head, down 2 percent from September 2014. The average live weight was up 39 pounds from the previous year, at 1,383 pounds.

Veal production totaled 6.8 million pounds, 5 percent below September a year ago. Calf slaughter totaled 37,200 head, down 12 percent from September 2014. The average live weight was up 22 pounds from last year, at 312 pounds.

Pork production totaled 2.04 billion pounds, up 9 percent from the previous year. Hog slaughter totaled 9.73 million head, up 10 percent from September 2014. The average live weight was down 3 pounds from the previous year, at 280 pounds.

Lamb and mutton production, at 12.2 million pounds, was down slightly from September 2014. Sheep slaughter totaled 190,800 head, slightly below last year. The average live weight was 128 pounds, unchanged from September a year ago.

By State - Sept '15 Prod (million Pounds) - % of Sept '14
Nebraska ..............:                673.9                 107      
Iowa .....................:                563.1                 106      
Kansas ..................:                450.8                 104      

January to September 2015 commercial red meat production was 35.8 billion pounds, up 2 percent from 2014. Accumulated beef production was down 4 percent from last year, veal was down 16 percent, pork was up 8 percent from last year, and lamb and mutton production was down 4 percent.



USDA Cold Storage Highlights

Total red meat supplies in freezers on September 30, 2015 were up 2 percent from the previous month and up 24 percent from last year, according to USDA's Thursday Cold Storage Report. Total red meat is a record high for the month of September, since the data was first recorded in 1916. Total pounds of beef in freezers were up 6 percent from the previous month and up 31 percent from last year. Total beef is a record high for the month of September, since the data was first recorded in 1915. Frozen pork supplies were up slightly from the previous month and up 19 percent from last year. Total pork is a record high for the month of September, since the data was first recorded in 1915. Stocks of pork bellies were down 21 percent from last month and down 68 percent from last year.

Total frozen poultry supplies were down slightly from the previous month but up 13 percent from a year ago. Total stocks of chicken were up 2 percent from the previous month and up 28 percent from last year. Total pounds of turkey in freezers were down 5 percent from last month and down 6 percent from September 30, 2014.

Total natural cheese stocks in refrigerated warehouses on September 30, 2015 were down 2 percent from the previous month but up 13 percent from September 30, 2014. Butter stocks were down 12 percent from last month but up 23 percent from a year ago.

Total frozen fruit stocks were up 3 percent from last month and up 6 percent from a year ago. Total frozen fruit is a record high for the month of September, since the data was first recorded in 1923.  Total frozen vegetable stocks were up 15 percent from last month and up 1 percent from a year ago.



Prepare for 2016 Iowa Agriculture at Pro-Ag Outlook and Management Meetings

Iowa State University Extension and Outreach will host 12 Agricultural Outlook meetings across Iowa in November and December. This program is designed to provide participants with a concise evaluation of current market conditions, expected trends in crop and livestock income potential, and management implications.

Chad Hart, associate professor in economics and extension grain markets specialist with Iowa State University, will discuss past, current and future prices. “Farmers know today’s price,” said Hart. “What I ask is how much did it cost to produce it?” Hart continued, “To make marketing decisions, farmers need to know their production costs.”

Lee Schulz, livestock economist with ISU Extension and Outreach, will explain factors that are influencing calf prices and how producers can use that information to make decisions about selling at weaning, backgrounding, or finishing.

Alejandro Plastina, assistant professor and extension economist at Iowa State University, will address how to manage a farm business with low to negative crop margins. “It is important for producers and ag-business professionals to have a clear understanding of the profitability analysis for corn and soybeans in the state of Iowa, as well as on their own operations,” said Plastina. “Profit analysis, as well as being aware of possible strategies to cope with low- to negative-profit margins are key to managing in 2016.”

Each program will feature information presented by specialists from Iowa State University Extension and Outreach. Some locations will also provide expertise from Iowa State University agricultural legal experts and Extension field agronomists, who will give participants a realistic expectation of production prices and tactics to decrease costs to get to a profitable margin. Specific topics will vary to provide a regional focus for participants.

Pro-Ag Outlook and Management meeting dates and locations
•    Nov. 5 – Iowa City
•    Nov. 16 – Altoona
•    Nov. 17 – Cherokee
•    Nov. 19 – Waterloo
•    Nov. 19 – Fort Dodge
•    Nov. 20 – Mason City
•    Nov. 23 – Carroll
•    Nov. 23 – Clarinda
•    Dec. 8 – Decorah
•    Dec. 10 – Greenfield
•    Dec. 11 – Mt. Pleasant
•    Dec. 11 – Eddyville

The sessions are open to the public, however pre-registration is requested two days prior to the date of the event. Speakers, registration fees and provided meals vary by location. For locations, times and program content, contact your farm management field specialist or visit www.extension.iastate.edu/agdm/info/meetings.html.



Jason Ross to Lead Iowa Pork Industry Center at Iowa State University

Jason Ross, Lloyd L. Anderson Professor in Physiology and an associate professor of animal science at Iowa State University, has been appointed as the director of the Iowa Pork Industry Center at Iowa State, effective Oct. 1. 

Ross succeeds Jay Harmon, who has served as interim director since July 2014. 

“Jason has a great track record in swine research,” said John Lawrence, associate dean of the College of Agriculture and Life Sciences and director of Agriculture and Natural Resources Extension and Outreach. “He has built effective teams, within Iowa State and across universities in his research program. We’re excited about the opportunity for him to do that within the Extension and Outreach role that the Iowa Pork Industry Center plays.”

Ross received his bachelor’s degree in animal science at Iowa State in 2000. He returned in 2008 to join the animal science faculty and continue his research, after completing his graduate degrees at Oklahoma State University and a postdoctoral appointment at the University of Missouri with Randy Prather, a world-renowned leader in the development of genetically modified pigs. 

He holds courtesy appointments at the College of Veterinary Medicine at Iowa State, in the departments of Biomedical Sciences and Veterinary Diagnostic and Production Animal Medicine. 

In 2012, Ross was the recipient of the College of Agriculture and Life Sciences Early Achievement in Research Award. In 2014, he received the American Society of Animal Science Early Career Achievement Award and was presented the Lloyd Anderson Endowed Professorship in Physiology, recognizing his contributions to the field of animal physiology. 

“I’ve come full circle,” Ross said. “My interest in reproductive physiology started as an undergraduate as I completed an independent study project with Dr. Lloyd Anderson at Iowa State University. At the same time I was working in the swine industry for pork producers in Marshall County, Paul and Allen Edler.  That’s when I really got interested in further improving swine reproduction efficiency. Since then, most of my training as a scientist was at a molecular or basic science level. I’ve been fortunate in the training and experiences I have had since my undergraduate studies at Iowa State, they have really enabled me to develop a diverse research program with both fundamental and applied aspects since joining the animal science faculty.”

In addition to strengthening relationships with industry stakeholders, Ross is looking forward to strengthening relationships among faculty in different departments who have an interest in swine production.

“I see an opportunity to strengthen the whole interface between the College of Agriculture and Life Sciences and the College of Veterinary Medicine and the industry; to add synergies in research, outreach and education of producers. I also see a lot of opportunities to work with partners like the Iowa Pork Producers Association and other groups that are invested in positively influencing animal agriculture in Iowa. Those are things that I look forward to doing,” Ross said.



New Online Options for Certified Manure Applicators

New online options make training and fee payment easier than ever for more than 4,500 certified Iowa manure applicators.

“Applicators can still complete training in person, watch a video at a county Extension office or take a test at a DNR field office, and mail a check in to pay their certification fees, just as they always have,” said Gene Tinker, DNR animal feeding operations coordinator. “But, we’ve added the convenience of training at home or in the office.

“That gives them many options, allowing applicators to take training, pay fees or print their certificates via an online system, or use any combination of traditional and online services,” Tinker added.

Online training is available to anyone interested in manure application, but is specifically designed to help manure applicators meet state requirements to become certified.

Applicators can take training with any device that has internet access, but may find a personal computer provides the best performance. If using a public access computer, check with the provider – coffee shop, library or motel – to see how secure the connection is, especially when sharing information about bank accounts.

Online training modules cover topics like biosecurity for human and animal safety, and managing nutrients to improve water quality. Each module is followed by a short activity. Online is similar to in-person or video training, however it’s self-paced and applicators may complete one topic at a time or all topics in one sitting. Online training is also limited to one applicator per computer.

A major advantage of the online option is the convenience of paying fees online. “We think that’s a great benefit for those who spend the winter out of state or applicators from neighboring states who apply manure in Iowa,” Tinker added.

Find a link to online training at www.iowadnr.gov/manureapplicator. This is also where applicators and business managers can check their own records for renewals, expiration dates and fees.

Traditional training options include two-hour workshops for confinement site applicators with agricultural and biosystems engineering specialists, livestock specialists and field agronomists with ISU Extension and Outreach. Commercial applicators are offered a three-hour training via statewide showing in early January. Videotaped sessions are also available by appointment throughout the year. Check the Manure Applicator section of the Iowa Manure Management Action Group’s website www.agronext.iastate.edu/immag/ for a list of training dates.

Iowa State University Extension and Outreach, in cooperation with the Iowa Department of Natural Resources, developed the online training. The legislature provided funding for the project. 



Rabobank: Exchange Rates Increasingly Dominate Pork Market

After disappointing developments in Q3, the global pork market will continue its slow recovery in Q4. The main drivers of the limited growth in the global market were the adverse exchange rates, which limited global pork trade. This resulted in a clearly visible mismatch between supply and demand across the globe, with elevated price levels in one group of countries and stable/pressured prices in the other countries, according to the Rabobank Global Pork Quarterly Q4 report.

The recovery of the global market in Q2 contracted unexpectedly in July, followed by a slow recovery in the months thereafter. Depreciating currencies in main import markets pushed up prices of imported pork, which hampered import growth in the first part of Q3. This was largely compensated by rising Chinese imports in the second part of the quarter. This, combined with the decline in domestic production in these countries, caused pork prices to rise.

"The global pork market shows a clear mismatch between supply and demand across the globe, with elevated price levels in one group of countries and stable/pressured prices in the other countries," says Rabobank Animal Protein analyst Albert Vernooij.

Supply growth in the main exporting regions (the US, EU and, to a lesser extent, Canada) was not able to reach the demanding markets in Asia. As a result, the Rabobank five-nation hog price index declined into Q3, followed by some recovery towards the end of the quarter. The global pork market will slowly improve towards the end of 2015 and into 2016. Trade is expected to continue to rise, but exchange rate developments will impact both the volumes and returns in key export markets.

In the longer term, the main question is how large the growth of pork production will be in importing countries and how this will impact global pork trade. This is an issue, as herd developments in the exporting countries show that production is expected to increase further.



2015/16 HRW Quality Offers Excellent Value

The USW 2015/16 hard red winter (HRW) crop quality survey is complete and shows that, once again, wheat farmers across 16 states have grown a crop that provides the characteristics buyers need to meet the growing global demand for high quality baked goods and other wheat foods.

Though they seeded less wheat this year, farmers produced more HRW than in 2014/15. Widely varying growing conditions helped, but also resulted in more quality variation than is normally found in this class. For more information about how weather and harvest conditions affected the new U.S HRW crop, see Harvest Reveals Better HRW Yields, Quality; USDA Sees Bigger Total Supply in the July 2, 2015, issue of “Wheat Letter.”

This year, the USDA ARS Hard Winter Wheat Quality Lab and Plains Grains, Inc., collected and analyzed 500 samples from the 12 states making up the Gulf and PNW tributary regions. USW’s partner organizations determined grade and non-grade factors on each sample. They also performed functionality tests on 95 composite samples representing different growing areas and these protein ranges: less than 11.5 percent (12 percent mb), 11.5 percent to 12.5 percent, and more than 12.5 percent.

Wheat and Grade Data. The final average HRW grade for 2015/16 is U.S. No. 2, with 76 percent of samples grading U.S. No. 2 or better compared to 67 percent in the Gulf tributary and 89 percent in the PNW tributary. The overall average test weight is 59.0 lbs/bu (77.6kg/hl) which is below the minimum for U.S. No. 1 and below recent averages. The average dockage of 0.8 percent is above last year’s 0.4 percent and the 5-year average of 0.5 percent. Total defects of 1.8 percent are also slightly higher than 2014 and the 5-year average. The overall average thousand kernel weight of 29.6 g is above the 5-year average of 29.1 g, but below last year’s 30.7. Average kernel diameter of 2.59 mm is similar to both last year’s average and the 5-year average. The average protein of 12.4 percent is lower than 2014 and slightly lower than the 5-year average of 12.7 percent. Kernels are generally smaller in the higher protein southern region and larger with lower protein to the north. Approximately 22 percent of samples were less than 11.5 percent protein, 41 percent between 11.5 percent and 12.5 percent, and 37 percent above 12.5 percent. The average falling number of 400 seconds indicates a sound wheat.

Flour and Baking Data. The overall Buhler Laboratory Mill flour yield averages 74.1 percent, comparable to the 2014 average of 73.9 percent but above the 5-year average of 73.3 percent. Average flour ash content exceeds 2014 and the 5-year average. Protein loss during flour conversion averaged 0.7 percent (14 percent mb), which is below the 5-year average loss of 1.0 percent. The W value of 214 (10-4 J) is significantly below 2014’s 266 and the 5-year average of 250. Overall, average bake absorption of 62.5 percent is lower than 2014’s 63.7 percent, but is higher than the 5-year average of 61.8 percent. Farinograph peak time and stability of 4.8 min and 6.9 min, respectively, are both significantly lower than last year and the 5-year average. Overall, average loaf volume of 870 cc is somewhat higher than 2014’s 859 cc and significantly higher than the 5-year average of 825 cc.

U.S. wheat farmers, through their state commission membership in USW, and USDA’s Foreign Agricultural Service fund the annual crop quality survey of all six U.S. wheat classes. Regional HRW reports, along with regional reports for all six U.S. wheat classes, are posted and USW’s 2015 Crop Quality Report will be available soon at www.uswheat.org/cropQuality. USW will also share the results of the survey with hundreds of overseas customers at several upcoming events, including USW's annual crop quality seminars. Buyers are encouraged to construct specifications carefully to be sure they receive qualities that meet their needs.



USGC Analysis: U.S. Exports of Feed Grains In All Forms Reach 2nd Highest Level Ever

The U.S. Grains Council (USGC) estimates 100.1 million metric tons of U.S. feed grains in all forms were exported in the 2014/2015 marketing year, up 800,000 tons from the previous year and the second highest export total on record.

U.S. feed grains in all forms is a measurement including U.S. corn, sorghum, barley, distiller’s dried grains with solubles (DDGS), corn gluten feed (CGF), corn gluten meal (CGM), ethanol as measured in corn equivalents, meat and poultry as measured in corn equivalents and processed feed grain products.

By accounting for all feed grains that are exported by the United States – in either unprocessed or value-added form – the measure is intended to offer a holistic look at demand from global customers being met by U.S. farmers. It also offers a more expansive view of the amount of U.S. feed grain production being exported.

For instance, in the marketing year that just ended, unprocessed feed grain exports accounted for less than 15 percent of all U.S. production. However, unprocessed grains plus the grain equivalents for value-added products accounted for 26 percent of U.S. production.

That percentage is expected to increase in future years. Using 10-year projections on corn, sorghum, barley, ethanol, meat and poultry, and co-products like DDGS from the U.S. Department of Agriculture (USDA) and ProExporter, the Council estimates that the grain equivalent of these exports will rise to 131 million tons by 2024/2025, accounting for roughly 33 percent of U.S. feed grain production.

Factors influencing this estimate include projected increases in foreign demand for U.S. corn as an animal feed; rising demand for U.S. ethanol to meet other countries’ industrial uses and fuel blending requirements; and rising U.S. meat and poultry exports to developing countries due to the rapid expansion of their middle classes. Increasing demand overseas should also contribute to rising net returns to U.S. feed grain producers.

Gaining access to new and existing export markets is critical to achieve increased sales of both unprocessed and value-added feed grains products. To this end, the U.S. grain industry is highly supportive of broad-based trade agreements such as those in place with Central American countries (CAFTA), Peru and Colombia and, in principle, new agreements like the 12-nation Trans-Pacific Partnership (TPP) and Transatlantic Trade and Investment Partnership (T-TIP) with the European Union.

Once trade agreements are in place, these broad marketplace trends also call for support of market development programs like the Market Access Program (MAP) and the Foreign Market Development (FMD) program, which are part of the U.S. farm bill and support work around the globe by organizations like the Council.



Senate Agriculture Committee Talks Biotechnology

For the first time in 10 years, the Senate Agriculture Committee held a hearing on biotechnology. In speaking on the importance of the advancements made in those 10 years, Chairman Roberts (R-KS) called biotechnology a “topic that is of utmost importance for producers in meeting the global food challenge.”

Testimonies were heard from government agencies on regulatory efforts on biotechnology including U.S. Department of Agriculture’s Animal and Plant Health Inspection Service, the U.S. Environmental Protection Agency’s Office of Pesticide Programs, and the Food and Drug Administration’s Center for Food Safety and Applied Nutrition. The committee also heard from a variety of witnesses along the value chain including a producer, a food manufacturer, consumer groups and a medical expert.

Although the hearing largely focused on the regulatory aspect of biotechnology, GMO labeling was also discussed in testimony and follow up questions. Ranking Member Stabenow (D-MI) announced that she is working with Senator Hoeven (R-ND) and Chairman Roberts on a GMO labeling bill, stating that the bill will be different from the version passed by the House earlier in the year, as she does not believe the House-passed bill could pass in the Senate. 
 
House Agriculture Committee Looks at Foreign Subsidies 
The House Agriculture Committee held a hearing this week to explore foreign subsidies and the distorting impact those subsidies have on markets, putting U.S. agriculture products at a disadvantage.

Dr. Dermot Hayes, Professor and Pioneer Chair in Agribusiness at Iowa State University, was among the witnesses.  Hayes recently conducted a study, funded by the U.S. Wheat Associates that looked at the economic impacts that China, India, Turkey, Brazil and other developed countries’ support programs have on the U.S. producer. The study found that these four countries exceed their trade commitments, resulting in driving down prices received by the U.S. producers.

The other testimonies reviewed programs that distort cotton, sugar and dairy. The Committee dived into particular programs and possible avenues the U.S. could take to prevent further loss and market distortion. The Committee also questioned the witnesses on their opinion on the Trans Pacific Partnership (TPP). Although the full text of the TPP agreement is not available, the witnesses provided a positive outlook on the deal but could not give full support without reviewing first



Following GMO Hearing, ASA to Senate: Let’s Get a Bill Done

The American Soybean Association (ASA) is calling on senators to come to the table and finalize a plan to establish a voluntary national framework for the labeling of foods containing GMOs in the wake of a hearing yesterday on Capitol Hill to examine the issues surrounding agricultural biotechnology. The hearing, before the Senate Agriculture Committee, showcased officials from the U.S. Department of Agriculture, the Food and Drug Administration, and the Environmental Protection Agency—the three agencies charged with affirming the safety and market use of this technology. Additionally featured was a group of professionals at all stages in the food and farm supply chain, who talked about the impacts of biotechnology and its potential regulation on their particular industry sectors.

“We’ve seen our champions emerge from both sides of the aisle in the House, and we’ve seen interest in getting a solution put in place in the Senate,” said ASA President and Texas farmer Wade Cowan. “But we can’t afford only to flirt with this concept anymore; now is the time to come to the table, to commit, and to put a national plan in place to give consumers information they want about their food, while avoiding stigmatization of the technologies that farmers need to grow more food while using fewer resources.”

The plan advocated by ASA, as a part of the Coalition for Safe and Affordable Food, would establish a voluntary national standard for foods containing biotechnology, as well as those companies that wish to market their products as non-GMO.

“We’ve seen Ranking Member Stabenow’s desire to move forward, we know of the fantastic work already put in by Sen. Hoeven, and we hope that we can gather all these parties together to find a solution before the calendar flips to 2016,” added Cowan. “Moreover, we absolutely echo Sen. Stabenow’s desire to tackle this issue this year with legislation that avoids a state-by-state patchwork of conflicting legislation. We have no interest in continuing this staggered, piecemeal fight. We’re invested in finding a long-term fix that gives consumers what they need and keeps this safe technology available and unencumbered for future use.”



House Panel Approves NMPF-Backed Amendment Allowing Increased Truck Weight Limits for Milk Hauling

The House Transportation and Infrastructure Committee today approved legislation backed by the National Milk Producers Federation allowing states to increase truck weights so that milk is shipped as quickly and as efficiently as possible.

The bipartisan amendment, offered by New York Republican Richard Hanna and Connecticut Democrat Elizabeth Esty, was added to a transportation bill that could reach the House floor later this fall. It was approved on a voice vote.

“Today’s amendment recognizes the unique needs of hauling milk,” said NMPF President and CEO Jim Mulhern. “Milk is extremely perishable. Both the supply of it coming from farms, and the daily intake needs of processing plants, can fluctuate unpredictably. As a result, milk handling requirements sometimes conflict with limits on truck weights.”

To solve the problem, the Hanna-Esty amendment gives states the option to issue permits allowing milk haulers to increase their truck weights beyond Interstate Highway System limits. The permits would still need to comply with each state’s trucking laws.

“Timing is critical in moving milk to market,” Mulhern added. “This amendment recognizes the specific challenges in transporting milk and allows states to ensure that milk is delivered in a timely fashion while adhering to all transportation and food safety standards.”

Mulhern thanked Representatives Hanna and Esty for sponsoring the amendment and urged the House to take up the highway bill as soon as possible.



Cropp: Slowdown in Milk Output Keeping Prices Stable

Now that holiday orders are being filled for butter and cheese, dairy prices are expected to fall during the closing months of 2015. University of Wisconsin-Extension expert Bob Cropp noted in his latest Dairy Situation and Outlook report that the Class III price is predicted to be around $15.45 by December and the Class IV price about $14.50. He says sales of butter and cheese have been good in recent months, but since exports continue to decline, the industry is not expecting any large bumps in farm-paid prices.

"We could expect further price declines in the first half of 2016," Cropp said. "How low prices may end up will depend heavily upon the level of milk production and domestic sales because much improvement in exports is not likely until the last half of 2016."

He points out that the increase in milk production has been slowing. September production was just 0.4 percent higher than a year ago. And September milk cow numbers declined 5,000 head from August. USDA has forecasted milk production for the year to be 1.4 percent higher than 2014.

"But, if the growth in milk production for the last three months of the year continues at this relatively small increase, total production for the year may only be up about 1.2 percent."

Meanwhile, Cropp says cheese prices could drop to around $1.60 per pound, and if dry whey remains around $0.20 per pound, by April and May the Class III price would drop below $15.00. If butter drops to around $1.85 per pound and nonfat dry milk stays around $0.90 per pound, the Class IV price would be about $13.40.

"While Class III and Class IV futures also show declines for the first half of 2016 they remain higher than this," Cropp stated. "If milk production continues to increase at less than 1 percent going into 2016, then milk prices will be higher."

The professor emeritus reminder producers that milk prices can swing quickly in either direction, but with expected domestic sales to remain solid and some improvement in exports for the second half of the year.



Vilsack Announces Sorghum Checkoff Board Appointments

Agriculture Secretary Tom Vilsack announced today the appointments of four members to serve on the United Sorghum Checkoff Program board of directors. Members will serve three-year terms.

According to the USDA Agricultural Marketing Service press release, the growers appointed to the board are:
    Boyd Funk, Garden City, Kansas
    Craig Poore, Alton, Kansas
    David Fremark, St. Lawrence, South Dakota, at-large member
    Jim Massey IV, Robstown, Texas

“We are looking forward to the diverse perspectives of oncoming leadership,” said Florentino Lopez, Sorghum Checkoff executive director. “Our priority is to achieve our main objective, producer profitability, and these new farmer leaders will be an asset to the board and to the industry.”

The board is structured so that the state with the largest production is allocated five positions. The state with the second largest production is allocated three positions. The state with the third largest production is allocated one position. There are four at-large national positions for which at least two representatives must be appointed from states other than the top three sorghum producing states. The maximum number of producers from one state is limited to six.

The 13-member board is authorized by the Commodity Promotion, Research, and Information Act of 1996. The Secretary selected the appointees from sorghum producers nominated by certified sorghum producer organizations.

The new directors will be sworn in during the Sorghum Checkoff December board meeting.

Outgoing Sorghum Checkoff board members will include:
    Bill Greving, Prairie View, Kansas
    Bill Kubecka, Palacios, Texas
    Greg Shelor, Minneola, Kansas

“These outgoing board members are the last of the initial Sorghum Checkoff board directors that helped set the stage for the development of the checkoff and the founding strategy,” said Tim Lust, Sorghum Checkoff CEO. “Their dedication and hard work through the years have resulted in much success. We are greatly appreciative of them and their efforts that have helped push the industry forward.”



Kubota Tractor Breaks Ground on New Headquarters

Kubota Tractor Corporation broke ground at its new corporate headquarters location in Grapevine, Texas. The three-story office building of approximately 125,000 square feet, plus a 68,000 square foot research and development facility, will place Kubota's leadership and professional staff closer to Kubota's major markets and its manufacturing, assembly, and distribution facilities in Georgia and Kansas.

By centrally locating more of its operations, Kubota will be able to respond more quickly to changes in markets and the industry, and streamline its operations for both dealer and customer benefit.

The new headquarters will be an environmentally-friendly, state-of-the-art building designed to maximize work efficiencies and conserve resources in alignment with Kubota's global brand statement, "For Earth, For Life."

"Kubota's more than $50 million investment in this project demonstrates our commitment to being here," said Masato Yoshikawa, President and CEO of KTC, at this week's ceremony. "Currently, we have 123 employees in Texas.

And with the relocation of our headquarters to Grapevine, combined with our continued business growth, we will bring more than 300 new jobs to this area in the future. This is the most significant change we have undertaken in our long and successful history in the U.S., and we are looking forward to further establishing our roots here in Texas."