Monday November 02 Ag News

2015 Crop Insurance Workshop Targets Risk Management

"Risk Management Decisions for Tomorrow" will be the focus of four crop insurance workshops to be held in the Midwest in November. The Nebraska workshop will be Nov. 11 in College Park in Grand Island at 3180 W. Highway 34.

The event begins at 8 a.m. with registration and coffee, with the program beginning at 9 a.m. and ending after closing comments at 3:30 p.m.

The program is intended for farmers and ranchers who want to enhance their knowledge of risk management, as well as consultants, crop insurance agents, lenders, farm managers, grain merchandisers, and financial advisers.

Topics and Presenters
-    Past As A Prologue — Lessons from the 1970s and 1980s with Allen Featherstone, Department Head, Ag Economics Department, Kansas State University
-    Financial Picture at the Farm the Level with Tina Barrett, Nebraska Farm Business Association, University of Nebraska-Lincoln
-    How Insurance Will Use Technology and Big Data with Terry Griffin, Cropping Systems Economist, Kansas State University
-    Market Outlook for Grain with Cory Walters, Assistant Professor Ag Economics, University of Nebraska-Lincoln
-    Market Outlook for Livestock with Kate Brooks, Assistant Professor Ag Economics, University of Nebraska-Lincoln
-    Eliminating Harvest Price – Are We Looking at Cuts in the Farm Safety Net? with Art Barnaby, professor and Extension Ag Economist, Kansas State University

Register online at http://cropinsure.unl.edu. Cost is $100 if registering more than five days before the event or $120 after that point. See program brochure for nearby accommodations and registration information and form.



Cornhusker Economics Outlook

The 2015 Cornhusker Economics Outlook meeting series will focus on the ag outlook and management decisions for Nebraska farmers and ranchers at six locations across the state on November 17-24. The annual meeting series is offered by Nebraska Extension and the University of Nebraska Lincoln Department of Agricultural Economics. The meetings are free to participants thanks to the statewide series support of Great Western Bank along with local meeting sponsors.

The outlook meetings are scheduled for a concise, fast-paced discussion of crop, livestock, policy, and financial outlook with attention to production, management, and marketing decisions for 2016.

Kate Brooks, Extension Livestock Economist at UNL will provide outlook and analysis for beef and other livestock producers. Kate will digest emerging livestock market fundamentals, meat supplies, and meat demand to assess producer profit potential and sound marketing and production decisions in 2016.

Cory Walters, Extension Crop Economist at UNL will discuss the crop outlook and implications for producers. Cory will discuss the current price environment and market outlook for Nebraska crop producers and the implications for production, marketing, and risk management decisions in the year ahead.

Brad Lubben, Extension Policy Specialist at UNL will discuss the ag policy outlook. Beyond the current policy environment in Washington, Lubben will focus on the role of the farm income safety net and the projected support from farm programs and crop insurance for cash flow planning and risk management decision-making.

Tina Barrett, Director of Nebraska Farm Business, Inc. will discuss the farm financial outlook and financial management decisions ahead for producers. Building on data from hundreds of farm cooperators in NFBI, Tina will focus on the current financial position and trends for Nebraska agriculture and the financial management challenges and decisions facing producers, with a focus on budgeting and cost control for the year ahead.

Jay Parsons, Extension Economist at UNL will discuss farm and ranch risk management issues and decisions. Jay will draw on his expertise in risk management to incorporate the marketing, production, policy, and financial discussion into risk management decisions and strategies for producers for 2016.

Locations, Dates, Times, and Local Contacts

York
Tuesday, November 17, 1:00 – 4:00 p.m. CST
Holthus Convention Center
3130 Holen Avenue, York, NE 
Contact: Gary Zoubek, York County Extension – 402-362-5508 or gzoubek1@unl.edu or Brandy VanDeWalle, Fillmore County Extension – 402759-3712 or bvandewalle2@unl.edu

Bridgeport
Wednesday, November 18, 9:00 a.m. – 12:00 noon MST
Prairie Winds Community Center
428 Main St., Bridgeport, NE 
Contact: Jessica Groskopf, Panhandle Research and Extension Center – 308-632-1247 or jjohnson@unl.edu

McCook
Thursday, November 19, 9:00 a.m. – 12:00 noon CST
McCook Christian Church
507 West B Street, McCook, NE 
Contact: Robert Tigner, Red Willow County Extension – 308-345-3390 or rtigner2@unl.edu

Kearney
Thursday, November 19, 1:00 – 4:00 p.m. CST
Buffalo County Fairgrounds in conjunction with the Gateway Farm Expo
3807 Ave. N Kearney, NE
Contact: Brent Plugge, Kearney County Extension – 308-236-1235 or bplugge1@unl.edu

Nebraska City
Monday, November 23, 9:00 a.m. – 12:00 noon CST
Kimmel Education and Research Center
5985 G Road, Nebraska City, NE
Contact: Monte Vandeveer, Otoe County Extension – 402-269-2301 or mvandeveer2@unl.edu

Wayne
Tuesday, November 24, 9:00 a.m. – 12:00 noon CST
Wayne Fire Hall
510 Tomar Drive. Wayne, NE
Contact: Tim Lemmons, Northeast Research and Extension Center – 402-370-4061 or tlemmons2@unl.edu or Jim Jansen, Cedar County Extension – 402-254-6821 or jjansen4@unl.edu



Winter Weeds: Control or Not to Control?
Amit Jhala, UNL Extension Weed Management Specialist

Recently we received several phone calls about winter weeds, particularly marestail. It is important for growers to decide now if they want to apply a herbicide.  The following FAQs about winter weeds can help growers make a decision.

1. What winter weeds should growers watch for?
The most common winter weeds in Nebraska are marestail, henbit, field pennycress, prickly lettuce, shepherd’s purse, downy brome, tansy mustard, and dandelion.

2. Is a fall herbicide application needed?
Not necessarily. Herbicide timing to achieve the most effective control varies with the weed species present. Field scouting (see this Crop Watch article) and weed identification (see EC 304) are important. For example, if you see a lot of marestail, a fall herbicide application is needed.

3. Why focus on marestail?
Marestail is a significant problem weed in Nebraska. Most marestail in Nebraska is resistant to glyphosate and the ALS group of herbicides and is challenging to control with only a glyphosate burndown program. A recent survey reported that more than 2 million acres in Nebraska is infested with resistant marestail.

4. Why do you think a fall herbicide treatment is important in controlling glyphosate-resistant marestail?
Marestail can emerge in the fall and in the spring. However, most marestail in Nebraska is fall emerging and more effectively controlled then when it's in a seedling stage.

5. What do growers risk if they don’t use a fall herbicide treatment to control glyphosate-resistant marestail?
Growers can choose an early spring application of herbicides; however, sometimes early spring weather is not very cooperative. For example, this year, early spring was too wet and growers couldn't apply early spring burndown herbicide applications. In fact, pre-emergence herbicides also were not applied due to wet fields, leaving post-emergence herbicide applications as the only option to control marestail. By then, the marestail was too tall to be effectively controlled.  Additionally, options for effective post-emergence herbicides are limited.

Variable response has been observed with early spring application of herbicides for marestail control. Some biennials and cool season perennials, including dandelion, wild carrot, and poison hamlock, also can be controlled more effectively with fall herbicide application.

6.    When to control winter weeds?
UNL research has shown that most fall emergence was completed by early November, thus, targeting herbicide applications from late October to mid November would be important. Younger weeds tend to be more susceptible to herbicide treatments than those at an advanced growth stage.

7.    What herbicides to consider?
Several herbicide tank-mix options are available for control of most winter annual weeds. Consult pages 61 (corn) and 105 (soybeans) of the 2015 Guide for Weed Management in Nebraska (EC 130) for effective options. 



Smith Receives Fueling Growth Award for Support of Ethanol

Congressman Adrian Smith (R-NE) has received the 2015 Fueling Growth Award for his leadership in supporting domestic energy production and the ethanol industry.  The award was presented by Growth Energy.

“Ethanol provides consumers in Nebraska and across America with a competitive alternative,” Smith said.  “In April, I introduced H.R. 1736 to expand consumer choice at the fuel pump by extending to E15 the same waiver from EPA volatility standards already granted to E10, allowing both blends of ethanol to be sold year-round.  I am honored to be recognized by Growth Energy as a leading advocate for biofuels and will continue working to advance domestic energy production in Nebraska and nationwide.”

In presenting the award, Tom Buis, co-chairman of Growth Energy, said, “Representative Smith has been a long-time champion for the ethanol industry.  He has always worked to ensure sound federal policies are in place to ensure the growth of the industry.  He understands the importance renewable fuels add to our energy security.  Furthermore, Representative Smith understands the importance of consumer choice and savings at the pump.  His tenure in Congress has been one that has helped the industry grow and thrive, and we are grateful for his continued and unwavering support.”



Green Plains to Purchase Texas Ethanol Facility From Murphy USA

Omaha-based Green Plains Inc. (NASDAQ:GPRE) and Murphy USA Inc. (NYSE:MUSA) today announced that they have signed a definitive agreement regarding the purchase by Green Plains of Murphy USA's ethanol production facility located in Hereford, Texas. Under the terms of the agreement, Green Plains will acquire Hereford Renewable Energy, LLC for approximately $93.8 million, subject to customary closing adjustments. The transaction value includes $78.5 million for the ethanol production facility with the balance for working capital. The transaction is expected to close this month subject to customary closing conditions and regulatory approvals.

The facility is a Lurgi-designed, ICM-modified ethanol plant with approximately 100 million gallons per year of production capacity, a corn oil extraction system and other related assets.

"The Hereford facility has many strategic and financial advantages over other destination plants because of its location, leading to both export and domestic market opportunities for ethanol and distillers grains," commented Todd Becker, president and chief executive officer of Green Plains. "Because it is located near the largest concentration of cattle in the world, with over a million head of cattle fed within a 50-mile radius, the plant can produce a low carbon intensity fuel which is typically sold for a premium to ethanol produced at most other plants."

Andrew Clyde, president and CEO of Murphy USA, added, "The Hereford facility has become a high-performing facility and we want to recognize the commitment of the Hereford employees who executed the two-year turnaround plan and established a track record of consistent, strong performance. Their commitment created the opportunity for us to attract a prominent, long-term focused buyer such as Green Plains who can build on the progress demonstrated to date at Hereford. This transaction reinforces Murphy USA's strategic intent of selling our non-core assets in a manner that captures the most value for our shareholders."

The facility's production capacity is complemented by a shuttle unload facility that can unload 40,000 bushels of corn per hour, a double-loop track that holds two unit trains at a time and a grain handling system with over 4.8 million bushels of storage. The plant also has 4.5 million gallons of ethanol storage capacity.

"We intend to utilize this asset and its shuttle train unload capability to serve the local market with corn and distillers grains produced in the Midwest to further improve the overall economics of the facility," stated Becker. "The value of this acquisition goes well beyond just producing ethanol."

The company will offer the facility's transportation and storage assets to its master limited partnership, Green Plains Partners LP.



Nugent is New Habitat Specialist for Rainwater Basin Joint Venture

The Rainwater Basin Joint Venture has named Ele Nugent of Grand Island as the partnership’s new Habitat Specialist. Nugent will assist the Joint Venture in planning and coordinating the restoration and management of wetlands throughout the Rainwater Basin region. She will also work with Rainwater Basin landowners and agriculture producers who are interested in learning about the Joint Venture’s conservation programs, including the Working Landscapes initiative for grazing wetlands.

Prior to assuming the position of Habitat Specialist, Nugent worked in the RWBJV’s science office where, among other projects, she led a region-wide assessment of changes over the past twelve years in waterfowl and shorebird habitat.

Nugent earned her bachelor’s degree in Environmental Studies at Michigan State University. At Oklahoma State University, where she earned a master’s degree in Natural Resource Ecology and Management, her research focused on avian response to wetland habitat restored through NRCS’s Wetlands Reserve Program.

RWBJV coordinator Andy Bishop noted that Nugent has experience in not only assessing landscapes but also in implementing conservation measures. “Ele’s background has allowed her to hit the ground running; she is already working with public land managers and private lands biologists to implement wetland management and control invasive species,” he said.



Adopt Financial Contingency Plan for Unexpected Farm Downturns

Farmers need to evaluate their cash and asset management if they experience negative cash flow during this period of downward-sliding crop prices, according to Iowa State University Extension and Outreach economic experts. They advise every farmer to have a financial contingency plan in place to cover cash flow shortfalls.

“People need to know their current situation and make sure that they have the reserves to make it through the lean years,” said Tim Eggers, ISU Extension and Outreach farm management specialist.

A recent ISU Extension and Outreach publication, “Farm financial management: 16 ways to stretch cash flow,” details the actions that farmers can take to improve their liquidity when times get tough. Available on the ISU Extension’s Ag Decision Maker website www.extension.iastate.edu/agdm, it was written by William Edwards, a retired farm management economist with 40 years of ISU Extension and Outreach experience.

Edwards witnessed numerous farm economy slowdowns during his long tenure and reinforces “behaviors that work when things aren’t bright and shiny,” Eggers said. The steps in the publication are listed from the easiest to the most difficult. 

Cash management is the first tactic that farmers can take. Edwards’ suggestions include using cash surpluses from previous years, liquidating stored crops, marketing livestock, tapping into credit reserves and refinancing loans. The last may involve lengthening the loan repayment period or adding balloon payments.

“There may be machinery with a fair amount of equity or equipment that was financed with a short-term note when cash flowed in the good years,” Eggers said. “When times are lean, spreading loan payments over more years can help with cash flow.”

Other options that could help when money is tight include to own equipment jointly with others, trade use with someone else or lease it. Machinery lease payments are often lower than loan payments. But selling assets may be hard if prices are trending down.

“Timeliness is a real issue when it comes to any equipment decision,” Eggers said. “Was that piece of equipment purchased with the notion that it would be putting in a decade or more on the farm? If so, selling it may be tough. It may be doubly tough if there isn’t equity to recapture due to decreasing values.”

Farmers can take other actions related to asset management to improve their financial picture. These alternatives include deferring capital purchases, refurbishing equipment instead of buying new and reducing livestock culling rates rather than replacing breeding stock. “It’s important to carefully consider any new purchases to determine whether you can afford them,” Eggers said.

A decline in the farm economy has wide-ranging ramifications and can be difficult for individuals to handle alone.

“Low prices and high costs affect everyone,” wrote Edwards in his publication. “Financial stress can lead to increased stress in other areas. During unprofitable times in agriculture, check in with friends and neighbors. If you or someone you know is struggling, encourage them to seek professional help.”

Available assistance
ISU Extension and Outreach has assistance available at any time through the Iowa Concern Hotline, 800-447-1985.

Farm financial planning also is available at no charge from extension farm financial management associates. They provide one-on-one financial counseling, a computerized analysis of the farm business and referral to other useful services. Learn more at www.extension.iastate.edu/farmanalysis/.



18 Students Named To Iowa Corn Collegiate Advisory Team

Iowa Corn would like to announce the 18 Iowa college students who will make up the fifth Iowa Corn Collegiate Advisory Team (CAT).

The CAT team is sponsored by the Iowa Corn Growers Association (ICGA) and the Iowa Corn Promotion Board (ICPB). The advisory team helps ICGA and ICPB in developing programs that target and enhance Iowa Corn’s relationship with students who are pursuing careers in agriculture production, business and the industry as a whole.

The 2015/2016 participants:
 ·    Dalton Webster, Dordt College
 ·    Jacquie Kenyon, Ellsworth Community College (?)
 ·    Jacob Still, Graceland College
 ·    Jayden Van Berkum, Hawkeye Community College (?)
 ·    Hannah Wilson, Indian Hills Community College
 ·    Keyton Strutzenburg, Iowa Central Community College
 ·    Trent Taglauer, Iowa State
 ·    Warren Bailey, Iowa State University
 ·    Michael Barr, Iowa State University
 ·    Mikayla Edwards, Iowa State University
 ·    Kaitlin Ihns, Iowa State University
 ·    Kellin Chambers, Iowa Western Community College
 ·    Kayla Smith, Kirkwood Community College
 ·    Valarie Hernandez, Morningside College
 ·    Ty Schillerstrom, Muscatine Community College
 ·    Sami Searle, Northern Iowa Area Community College
 ·    Natalie Te Grootenhuis, Northwestern College
 ·    Michaella Beckman, Southeastern Community College

“Iowa Corn is very excited to work with these 18 bright students on ways we can cultivate and promote the industry, “said Don Hunerdosse who is the chair of the committee who oversees the team. “We look forward to hearing their ideas on how we can become more engaged.”



USDA Announces Commodity Credit Corporation Lending Rates for November 2015

The U.S. Department of Agriculture's Commodity Credit Corporation (CCC) today announced interest rates for November 2015. The CCC borrowing rate-based charge for November is 0.250 percent, down from 0.375 percent in October.

The interest rate for crop year commodity loans less than one year disbursed during November is 1.250 percent, down from 1.375 percent in October.

Interest rates for Farm Storage Facility Loans approved for November are as follows, 1.750 percent with seven-year loan terms, down from 1.875 percent in October; 2.125 percent with 10-year loan terms, unchanged from 2.125 percent in October and; 2.250 percent with 12-year loan terms, down from 2.375 percent in October.



Selection of 2015-16 Officers Concludes 88th National FFA Convention & Expo

Students from Arkansas, Tennessee, Ohio, Iowa, Georgia and Utah have been elected by delegates from throughout the United States to serve on the 2015-16 National FFA Officer team.

Taylor McNeel of Arkansas, an agricultural business major at Southern Arkansas University, was elected president. Nick Baker of Tennessee, an agricultural communications major at the University of Tennessee, will serve as secretary.

Sydney Snider of Ohio, an agricultural communications major at The Ohio State University, was elected eastern region vice president and Abrah Meyer of Iowa, an agricultural business major at Iowa State University, will serve as central region vice president.

Abbey Gretsch of Georgia, an agricultural communications major at the University of Georgia, was elected southern region vice president and Sarah Draper of Utah, an agricultural education major at Utah State University, will serve as western region vice president.

Each year at the National FFA Convention & Expo, six students are elected by delegates to represent the organization as National FFA officers. Delegates elect a president, secretary and vice presidents representing the central, southern, eastern and western regions of the country.



Pilgrim's Pride Reports Lower Third Quarter Sales

Pilgrim's Pride Corporation reports third quarter 2015 financial results with Net Sales of $2.11 billion for the 13-week period, compared to $2.27 billion for the same period in 2014. The 2015 Q3 Net Income was $137.1 million compared to the $256.0 million reported in the same period in 2014.

The company says continued challenges in the export markets, the strong dollar, and the lowest chicken cutout in the past five years during the quarter have had an impact on the commodity segments of our business, and on our U.S. export and Mexico sales.

"Despite these challenges, our team has managed to produce solid margins compared to periods when prices were at similar levels," stated Bill Lovette, CEO of Pilgrim's. "The Q3 results are a strong validation of our portfolio model, and the strategy we have pursued and implemented over the past four years is fundamental in improving our ability to maintain strong performance, minimize the impact of different market conditions, and give us more consistent financial results."

Lovette says the firm is also on track to extract $200 million in operational improvements for the year.



Kellogg Commits to Gage-Free Eggs, Eliminating Gestation Stalls

Kellogg Company announced its plans to build on its commitment to animal welfare by sourcing only cage-free eggs for its foods and eliminating gestation stalls from its pork supply chain by the end of 2025. Kellogg says it will also consider the "Five Freedoms" of animal welfare, an internationally recognized set of humane treatment principles, as part of its process to continuously improve its supply chain in the future.

"Even though we are a grains-based company and use very few animal products in our foods, we understand that we have a role to play in influencing responsible behavior throughout our supply chain," said Paul Norman, President, Kellogg North America. "Today's announcement allows us to lead positive change in a way we know gives consumers more of what they want from brands and companies - a strong focus on social responsibility."

Kellogg uses eggs in some of its foods, including Eggo frozen breakfast foods and MorningStar Farms frozen veggie foods brands. The company also purchases a very small amount of pork for some of its frozen breakfast sandwiches.

Kellogg has already reduced its use of eggs from caged hens in MorningStar Farms products by 20 million eggs since 2007, and by the end of 2016, the company has committed to switch one million more cage-free eggs within its MorningStar Farms brand.

The announcement, which applies to its U.S. operations, takes those promises one step further with the move to 100 percent cage-free eggs.



Movember is here - Join the dairy industry to support men’s health during the month of November.

Movember is here, and it’s time to shave for a cause. Support prostate cancer awareness by growing a mustache – starting now! If you can’t sport a ‘stache, you can support the cause by spreading the word or making a donation.

The MoDairy campaign supports the Movember Foundation, a national organization committed to raising awareness of men’s health issues including prostate cancer, testicular cancer and mental health. The foundation uses the mustache as a symbol and suggests men grow mustaches to raise awareness of men’s health issues.

“We need to continue to emphasize men’s health issues such as prostate cancer throughout our industry,” says Amy Throndsen with Advanced Comfort Technology/DCC Waterbeds, sponsor of the MoDairy campaign. Many of us know of someone we care about that has been impacted by these health issues, and we need to bond together to raise awareness.”

MoDairy will once again be hosting the “Show Us Your ‘Stache” contest to start conversations about men’s health. If you currently have facial hair, consider shaving and growing a new mustache throughout November. Post pictures of your mustache at www.facebook.com/MoDairy. For every image posted, MoDairy will donate $5 to the Movember Foundation. The person featured photo with the most likes at the end of Movember will win his or her choice of a 20- by 20-inch Steel Cow print.

Want to get involved and support the cause? Here are a few ideas:

    Throw a MoDairy party or decorate your office and social media channels with MoDairy art. MoDairy social media content, printable mustaches and more are available at: http://bitly.com/MoDairy_PartyKit.

    Contact your doctor to schedule your annual health screening.

    Join the MoDairy network and donate to the Movember USA campaign to fund prostate cancer research. Visit: http://moteam.co/modairy to donate.

Sponsors of the 2015 MoDairy campaign include Advanced Comfort Technology/DCC Waterbeds, Filament Marketing, Jaylor, Schaefer Ventilation, Udder Tech and Rock River Laboratory.