Monday November 23 Ag News

DEC. 4 WORKSHOP FOCUSES ON WINDBREAKS

A well designed and maintained windbreak can provide many benefits to a farm, home or acreage. Nebraska Extension is partnering with the Nebraska Forest Service and the Lower Platte North Natural Resources District to provide a workshop offering information on how to create and implement a windbreak plan. The workshop will be Dec. 4 at the University of Nebraska's Agricultural Research and Development Center near Mead. 

Registration begins at 9 a.m. with the workshop from 9:30 to noon.

According to Nebraska Extension educator Keith Glewen, many of the windbreaks in eastern Nebraska have outlived their usefulness and are in desperate need of renovation and replacement in some cases. This workshop will provide participants with information on how to start the process.

Topics and presenters include: 
    > "Windbreak Renovations," Steve Karloff, Nebraska Forest Service district forester
    > "Planting New Windbreaks," Jay Seaton, Lower Platte South NRD forester
    > "Current Tree Health Issues," Jennifer Morris, Nebraska Forest Service, forest health specialist
    > "Lower Platte North NRD Tree Planting Program," Bob Heimann, operations and maintenance manager
    > "Bag Trees for Windbreaks," Heather Byers, horticulturist, Nebraska Certified Nurseryman, Weston

Pre-register by Dec. 2 to reserve a seat and to ensure workshop materials are available the day of the workshop. To register, contact Nebraska Extension at 402-624-8000 or cdunbar2@unl.edu. For questions about the program, contact Glewen at the above phone number or kglewen1@unl.edu.



Deere Dealers Oregon Trail, LandMark Implement to Merge

Nebraska-based John Deere dealerships Oregon Trail Equipment and LandMark Implement have announced the businesses will merge.

Oregon Trail Equipment owner Rick Bennett made the announcement to customers in a letter on Nov. 12. In the letter he said, "Even though the company will be going through a name change, most of the people you deal with every day, from the parts department to the sales team, will not change."

Oregon Trail Equipment was formed back in 2003 when three John Deere dealerships merged.

"Because a number of LandMark Implement dealerships are located in adjacent counties to the Oregon Trail stores, the merger also forms a near-continuous dealer network that spans from Marysville to Gothenburg, Neb.," Bennett said in the letter. "That translates into a number of customer benefits, including an even more extensive parts supply, a larger new and used equipment inventory and specialized product support."

According to reports, Bennett plans to retire and his two sons, Justin and Luke Bennett, are buying his interest in the company. Mike Kongs, who has been a business partner since Oregon Trail Equipment was formed by the merger of 3 dealerships back in 2003, will remain a part of the new organization.

Oregon Trail Equipment currently has locations in Marysville, Beatrice, Fairfield, Hastings, Hebron, Superior and Red Cloud, Neb. LandMark Implement has locations in Holdrege, Arapahoe, Elwood, Kearney, Minden, Shelton, Lexington and Gothenburg, Neb., as well as Phillipsburg and Smith Center, Kan.



Iowa Soybean Association’s Wolf recognized as Steward of Iowa’s Land

The innovative environmental efforts of Roger Wolf, Iowa Soybean Association (ISA) Environmental Programs and Services (EPS) director, were recognized by Drake University’s Agricultural Law Center at the Sustaining our Iowa Land (SOIL) conference Nov. 19 in Des Moines.

  Wolf was recognized as a Steward of Iowa’s Land for having shown long-term leadership and contributions to protecting Iowa’s land and water resources. He was presented with the award by farmer Ray Gaesser of Corning.

“Fifteen years ago, we hired this young environmental guy who challenged us and took us out of our comfort zone,” said Gaesser who is also a past ISA president and American Soybean Association chairman. “I’m glad he challenged us to make a difference. Because of Wolf’s efforts, ISA’s water and environmental programs are known around the United States. He is truly a Steward of Our Iowa Land.”

Wolf leads the ISA EPS team that focuses on the creation, development and oversight of programs and services designed to achieve data-driven environmental performance at farm and watershed scales, while improving agronomic and economic performance.

“I’m honored to receive the award and, more importantly, to have the opportunity to influence the positive progress of agriculture in this arena,” Wolf said. “Many farmers, partners and stakeholders across Iowa have come together to improve Iowa’s water and soil quality, and I believe that applying science and collaboration are the keys to moving forward.”          

Wolf also provides leadership to the industry through involvement in regional and national organizations including the U.S. Water Alliance Board of Directors, Green Land Blue Waters Steering Committee, America’s Watershed Initiative Steering Committee, 25x25 Climate Adaptation Working Group and Fishers and Farmers Partnership Steering Committee.



CHS posts fiscal 2015 earnings of $781 million

CHS Inc. (NASDAQ: CHSCP), the nation's leading farmer-owned cooperative and a global energy, grains and foods company, today announced earnings for fiscal 2015 of $781 million.

CHS earnings for fiscal 2015 (Sept. 1, 2014 – Aug. 31, 2015) of $781 million were down 28 percent from more than $1.1 billion for fiscal 2014, reflecting singular events as well as lower margins across CHS energy and agriculture businesses. Revenues for the year were $34.6 billion, down 19 percent from $42.7 billion for fiscal 2014, primarily due to lower values for the commodity energy and grains products it handles.

"Our core businesses of agriculture and energy have entered a global down cycle which affected both earnings and revenues for fiscal 2015," said Carl Casale, president and chief executive officer. "Nonetheless, we continue to fulfill our commitment to our owners by making significant investments in the future of our businesses; providing direct economic returns and maintaining a strong financial foundation for the future."

Year-over-year earnings for the CHS Energy segment declined primarily due to significantly reduced refining margins resulting from major maintenance turnarounds at its Laurel, Mont., and McPherson, Kan., refineries. Earnings for the company's propane business also declined due to lower margins and demand for both fall 2014 crop drying and winter 2014-15 heating use. CHS lubricants business reported record earnings.

CHS Ag segment earnings for fiscal 2015 also declined overall, driven primarily by a $116.5 million impairment associated with the decision to cease development of a nitrogen fertilizer plant at Spiritwood, N.D. In addition, grain marketing earnings decreased primarily as a result of robust logistical performance in fiscal 2014 which did not reoccur in fiscal 2015, as well as growth-related expenses and foreign exchange losses which were partially offset by increased margins. Within the company's Country Operations local retail, animal nutrition and sunflower businesses, earnings declined due to lower retail agronomy margins and growth expenses, but were partially offset by higher grain volumes and margins. CHS wholesale crop nutrients earnings increased in fiscal 2015 compared to fiscal 2014 due to increased margins partially offset by decreased volumes.

CHS renewable fuels marketing and production operations earnings also declined, primarily due to lower ethanol market prices and corresponding lower marketing commissions; this decrease was partially offset by additional production earnings from the company's two Illinois ethanol plants. CHS Processing and Food Ingredients fiscal 2015 earnings increased when compared with fiscal 2014; fiscal 2014 earnings included an impairment related to its CHS Israel assets.

CHS reports results for its Business Solutions operations and two food processing-related joint ventures under the Corporate and Other heading. Overall earnings for fiscal 2015 declined when compared with fiscal 2014; fiscal 2014 included a gain of $109.2 million associated with the formation of the Ardent Mills milling joint venture. Combined earnings for CHS Insurance, CHS Hedging and CHS Capital increased slightly in fiscal 2015.

In fiscal 2015, based on fiscal 2014 earnings, CHS returned $533.8 million to its owners in cash patronage, equity redemptions, preferred stock and dividends on preferred stock to its owners.



USDA Cold Storage Highlights

Total red meat supplies in freezers were down 3 percent from the previous month but up 21 percent from last year, according to USDA's monthly Cold Storage report released Monday afteroon. Total red meat is a record high for the month of October, since the data was first recorded in 1916. Total pounds of beef in freezers were up 3 percent from the previous month and up 34 percent from last year. Frozen pork supplies were down 8 percent from the previous month but up 13 percent from last year. Stocks of pork bellies were up 64 percent from last month but down 39 percent from last year.

Total frozen poultry supplies on October 31, 2015 were down 3 percent from the previous month but up 16 percent from a year ago. Total stocks of chicken were up 8 percent from the previous month and up 31 percent from last year. Total chicken is a record high for the month of October, since the data was first recorded in 1939. Total pounds of turkey in freezers were down 21 percent from last month and down 9 percent from October 31, 2014.

Total natural cheese stocks in refrigerated warehouses on October 31, 2015 were down slightly from the previous month but up 15 percent from October 31, 2014. Butter stocks were down 5 percent from last month but up 21 percent from a year ago.

Total frozen fruit stocks were up 13 percent from last month and up 5 percent from a year ago.  Total frozen vegetable stocks were up 5 percent from last month and up 1 percent from a year ago.



New Growth Energy Ad on RFS, Featuring “Bachelor” Star and Iowa Farmer Chris Soules

On a press call earlier today, Growth Energy and Chris Soules, Iowa farmer and star of “The Bachelor” and “Dancing with the Stars” announced a new television ad emphasizing the economic and environmental benefits of ethanol. The ad points to the significant harm that the EPA’s proposal poses to America’s farmers and features Soules urging politicians in Washington to support clean, secure, American-made ethanol.

On the call, Growth Energy Co-Chair Tom Buis spoke to the major progress in revitalization and job creation in rural America thanks to ethanol production. You can listen to a recording of the call here. Currently the ad is airing in Iowa, Illinois, Ohio and Indiana.

Under the Renewable Fuel Standard (RFS), the ethanol industry has helped to generate more than 852,000 jobs throughout America and helped farming communities make a strong comeback. In Iowa alone, the renewable fuel industry spurs more than 73,000 jobs, generates $19.3 billion in annual economic output and $5 billion in wages annually, and contributes $1.7 billion in state and federal taxes each year.

“The Renewable Fuel Standard is a great American success story,” said Tom Buis, co-chair of Growth Energy. “More renewable fuel like ethanol means more investments in rural economies across America. Homegrown renewable fuel is also helping consumers at the pump, driving down our dependence on oil from hostile foreign regions, and reducing pollution in our air and water.”

“American-made ethanol reduces our dependence on foreign oil,” said Chris Soules, a fourth-generation Iowa farmer. “Our farmers are also leading the way in helping reduce carbon emissions—the use of corn ethanol results in a 34 percent reduction in greenhouse gas emissions compared to regular gasoline. We need a strong Renewable Fuel Standard so we can continue providing opportunities for our country’s farmers and produce clean energy right here in America.”



Open Communication Crucial as USDA Examines Biotech Regulatory Process

National Corn Growers Association Trade Policy and Biotechnology Chair John Linder, a farmer from Ohio, and Director of Biotechnology and Crop Inputs Nathan Fields took part in a meeting hosted by the Biotechnology Regulatory Service to share with stakeholders how the U.S. Department of Agriculture plans to approach new rulemaking around part 340. This section of code, which is used to regulate the approval and deregulation of biotechnology products, is currently under review by USDA's Animal and Plant Health Inspection Service, under which BRS falls.

"We are encouraged that the USDA reached out to stakeholders in this way, keeping them updated in a timely manner as the review process proceeds," said Linder. "By decreasing unnecessarily burdensome processes and delays, while maintaining the highest level of safety and careful review, USDA will help farmers gain access to the cutting edge products that they need to face ever-evolving challenges in the fields."

In describing how the USDA will approach rulemaking, BRS officials conveyed two points of particular importance.

First, USDA will attempt to reduce the regulatory burden registration extension. This would, in real world terms, mean that technology providers would only have to gain approval for each trait and, after deregulation, would be able to extend that approval in stacks with very specific additional information. Additionally, it would allow for expedited approval of traits already approved for use in another crop.

Second, USDA would likely move from a product-by-product assessment to a system that relies more heavily on an upfront risk assessment of new technologies. In doing so, it would create a clearer landscape for technology companies at an earlier stage, thus allowing them greater freedom to operate.

Notably, BRS representatives stressed that the USDA has been and will continue to be engaged with all of the United States' major trading partners as the process is developed to maximize potential synchrony with global markets.

The meeting, which was held in Riverside Park, Maryland, had the highest attendance of any stakeholder meeting of its type yet with more than 100 participating. The group consisted mainly of representatives of grower groups and technical companies with some from the grain trade also on hand.

NCGA will continue to engage with APHIS as this process moves forward and plans to submit remarks when the agency opens the public comment period on the notice of intent.



Growth in U.S. Agricultural Exports to China

USDA Secretary Tom Vilsack arrived in China this weekend. Over the past decade, the United States' agricultural exports to China have risen sharply, propelling China into its position as the fastest-growing and highest-value export destination for U.S. farm and food products. In 2011, China surpassed Canada to become the top U.S. market and it has since retained that position. In fiscal year (FY) 2015, U.S. agriculture and related exports to China totaled $25.9 billion, comprising approximately 16 percent of all U.S. agricultural exports.

While the rapid growth in U.S. farm exports to China has plateaued in recent years, many macroeconomic conditions signal the potential for continued long-term growth and trade expansion in China. An increasingly urban population, a growing middle class, and higher disposable incomes have increased Chinese consumers' ability to diversify their diets and purchase high-value, protein-rich foods.

USDA forecasts a considerable increase in China's imports of coarse grains, soybeans, cotton, beef, and pork by 2024. Furthermore, growth in U.S. exports of horticultural goods, dairy, and alcoholic beverages to China bode well for future opportunities within the consumer-oriented products sector. Provided the U.S.-China trade partnership remains strong, U.S. agricultural producers are well positioned to capitalize on China's economic development and consumer demand into the foreseeable future.

The value of U.S. agricultural and related exports to China has more than tripled over the last 10 years, reaching a record $29.6 billion in FY 2014 before declining slightly in FY 2015.

Due to China's severe cropland shortage and inexpensive labor force, U.S. exports to the country have traditionally been dominated by land-intensive bulk commodities that China then processes for domestic consumption or export. More recently, China's booming demand for luxury items and ready-to-eat foods has created new opportunities for the United States, particularly for exporters of intermediate products such as oils, fats, flour, meal, and sweeteners, and consumer-oriented products such as processed foods, meats, dairy, eggs, tree nuts, and wine and beer. U.S. exports of bulk, intermediate, and agricultural-related products, such as forest and fish products, have each increased approximately 250 percent since 2006. Exports of consumer-oriented products grew 150 percent over the same period.

A variety of agricultural goods have made significant contributions to U.S. export totals, many gaining first-time market access to China in the last couple of years. For example, U.S. sorghum and distiller's dried grains used for animal feed have become billion-dollar exports to China despite being almost non-existent prior to 2008. Sales of these lower-cost feed substitutes have helped offset recent declines in U.S. corn exports caused by China's restrictive trade policies. Similarly, exports of U.S. hides and skins, seafood, and wood products have recently surpassed the $1 billion mark. While these numbers are significant, soybeans continue to dominate U.S. agricultural exports to China, historically accounting for approximately half the total value of U.S. exports. In FY 2015, U.S. soybean exports to China were valued at $12.7 billion, the second-highest level on record.

The tremendous expansion of U.S. agricultural trade with China has not come without challenges. Chinese consumers recognize the United States as a supplier of high-quality agricultural and food products that are both trusted and desired. However, U.S. exports are limited by Chinese policies that promote agricultural self-sufficiency and protect domestic industries. China's lack of regulatory transparency, inconsistent product review and approval processes, and erratic distribution of import quotas all distort trade and create uncertainty for U.S. exporters. This environment has prevented the United States from achieving its full potential in exports to China.

The size of the agricultural trade relationship for both the United States and China, as well as U.S. agricultural exports' support for China's food security through trade, provides incentives for both sides to address these issues. Recent engagements have shown that negotiations between the two countries can achieve positive results. For instance, a series of agreements on sanitary and phytosanitary (SPS) measures and technical barriers to trade (TBT) for horticultural goods has greatly benefited U.S. almond, citrus, and apple producers. In FY 2015, U.S. exports of these goods to China were valued at $87 million, $34 million, and $20 million, respectively.

Ample opportunities for expansion continue to exist within China's food and agricultural markets. Growth in China's food consumption is forecast to outpace its domestic output by more than two percent per year between 2015 and 2020, resulting in increased demand for imports (IHS Global Insight). In order to address the growing demand for food, China is pursuing a number of economic and regulatory reforms to bolster its domestic agricultural production and efficiency. Additionally, according to Chinese officials, these reforms are designed to be market-oriented and consumer-driven. As China moves forward with this process, U.S. agricultural stakeholders must be fully engaged with the Chinese in order to avoid unwarranted restrictions of U.S. exports and to promote policies that are mutually beneficial to the trade partnership.



Registration Open for USGC Winter Meeting in Sarasota, Florida

The U.S. Grains Council (USGC) encourages farmers, members and other industry representatives to register soon for its 13th International Marketing Conference and 56th Annual Membership Meeting scheduled for Sarasota, Florida, from Feb. 15 to 17, 2016.

Registration is available online via www.grains.org.

The February meeting will follow USGC's annual theme of Excellence in Exports, with opportunities for attendees to learn about new developments and challenges emerging in the global grain trade. They will also get to meet face-to-face with USGC’s international directors who will travel to the sessions to provide insights into their dynamic markets.

“The Council’s Monday general session will focus on trade policy and the unique role it plays in our businesses as farmers,” said USGC Chairman Alan Tiemann. “We plan to discuss the two multinational trade agreements currently being negotiated, the long-term impacts that the NAFTA (North American Free Trade Agreement) had in Mexico and more.”

This meeting’s speaker line-up is scheduled to include renowned political analyst and publisher of The Cook Political Report, Charlie Cook, who will delve into the 2016 presidential election and how it may impact the global grain trade.

“After hearing from expert speakers like Charlie and our international staff, we are hopeful our members will leave the meeting fired up and dedicated to the work that needs to be done to continue expanding grain exports,” Tiemann said.

A significant amount of time at the Sarasota conference will be spent in meetings of the USGC Advisory Teams (A-Teams) and commodity-specific stakeholders. These groups will go in-depth on global strategies and compare notes about the global grain trade. During this time, members will also provide input into the Council’s planning process to enhance its strategic cohesiveness.

As a member-led organization, the Council depends on its delegates’ commitment and participation and encourages stakeholders to make plans soon to attend the February meeting.

“This meeting will be a step toward achieving our goals of Excellence in Exports,” Tiemann said. “Come to Sarasota this winter to build relationships with both new and old friends, collaborate with like-minded people and nurture your dedication to this organization.”

More about the meeting is available online at www.grains.org. 



 CWT Assists with 5.6 million Pounds of Cheese and Whole Milk Powder Export Sales

Cooperatives Working Together (CWT) has accepted six requests for export assistance from Dairy Farmers of America, Northwest Dairy Association (Darigold) and Tillamook County Creamery Association who have contracts to sell 307,104 pounds (139 metric tons) of Cheddar, Gouda and Monterey Jack cheese, and 5.331 million pounds (2,418 metric tons) of whole milk powder to customers in Asia and South America. The product has been contracted for delivery in the period from November 2015 through March 2016.

Year-to-date, CWT has assisted member cooperatives who have contracts to sell 53.667 million pounds of cheese, 25.671 million pounds of butter and 40.411 million pounds of whole milk powder to thirty-five countries on six continents. The amounts of cheese, butter and whole milk powder in these sales contracts represent the equivalent of 1.368 billion pounds of milk on a milkfat basis.

Assisting CWT members through the Export Assistance program, in the long-term, helps member cooperatives gain and maintain market share, thus expanding the demand for U.S. dairy products and the U.S. farm milk that produces them. This, in turn, positively impacts all U.S. dairy farmers by strengthening and maintaining the value of dairy products that directly impact their milk price.