Rural Mainstreet Index Falls Below Growth Neutral for Third Straight Month
The Creighton University Rural Mainstreet Index for November fell from October’s weak reading, according to a monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy.
Overall: The Rural Mainstreet Index (RMI), which ranges between 0 and 100, sank to 43.7 from October’s weak 44.4.
“This is the fourth straight month the overall index has declined, reflecting weakness stemming from lower agriculture and energy commodity prices and from downturns in manufacturing," said Ernie Goss, Jack A. MacAllister Chair in Regional Economics at Creighton University's Heider College of Business.
Farming and ranching: The farmland and ranchland price index for November rose to 34.8 from 31.0 in October. “This is the 24th straight month the index has moved below growth neutral. But, as in previous months, there is a great deal of variation across the region in the direction and magnitude of farmland prices with prices growing in some portions of the region,” said Goss.
Even with lower farmland prices, more than one-third, or 34.8 percent, of bankers indicated their banks have sufficient liquidity and continue to lend to farmers as demanded. This proportion differs little from November 2014.
The November farm equipment-sales index advanced to a very weak 14.2 from October’s record low 10.8. “The strengthening U.S. dollar and global economic weakness have pushed farm commodity prices down by 14.1 percent over the past 12 months. These weaker prices have discouraged farmers from buying more agriculture equipment and have negatively affected the agriculture equipment dealers and manufacturers in the region. Bankers remain pessimistic about the short and intermediate prospects for agriculture equipment dealers and producers on Rural Mainstreet,” said Goss.
Nebraska: The Nebraska RMI for November slumped to 40.1 from 45.2 in October. The state’s farmland-price index slipped to 20.8 from October’s 21.8. Nebraska’s new-hiring index declined to 47.7 from 49.7 in October.
Iowa: The November RMI for Iowa sank to 44.3 from October’s 46.9. Iowa’s farmland-price index for November fell to 28.6 from October’s 42.5. Iowa’s new-hiring index for November decreased to 50.9 from 57.9 in October. In response to greater regulatory oversight, Larry Winum CEO of Glenwood State Bank in Glenwood, said, “The cost to comply, and the extended timeframe required to fund these type of loans, along with no concrete benefit to the customer, makes it very difficult to offer certain mortgage products.”
Each month, community bank presidents and CEOs in nonurban agriculturally and energy-dependent portions of a 10-state area are surveyed regarding current economic conditions in their communities and their projected economic outlooks six months down the road. Bankers from Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota and Wyoming are included. The survey is supported by a grant from Security State Bank in Ansley, Neb.
This survey represents an early snapshot of the economy of rural agriculturally and energy-dependent portions of the nation. The Rural Mainstreet Index (RMI) is a unique index covering 10 regional states, focusing on approximately 200 rural communities with an average population of 1,300. It gives the most current real-time analysis of the rural economy. Goss and Bill McQuillan, former chairman of the Independent Community Banks of America, created the monthly economic survey in 2005.
WORKSHOPS TO HELP TACKLE IMPORTANT TOPICS: FARM SUCCESSION AND ESTATE PLANNING
Nebraska Department of Agriculture (NDA) Director Greg Ibach is encouraging farm and ranch families to take advantage of free workshops being held statewide to address succession and estate planning for agriculture operations.
“It is not an easy task to decide the best path to take in handing down a farm or ranch operation from one generation to another,” said Ibach. “These free workshops offer families the information they need to begin the planning process. It’s also an opportunity for farm or ranch owners who don’t have family members available to take over their operation, to learn more about other options that can help a beginning farmer or rancher get started in the industry.”
The one-day workshops will be held at various locations across Nebraska. The first one is scheduled for Dec. 2, in Hartington. Details and registration (required) can be found at www.nextgen.nebraska.gov. Dave Goeller, with the University of Nebraska-Lincoln Northeast Center for Risk Management Education, and Joe Hawbaker, an agriculture law attorney based in Omaha, are the workshop presenters.
“Hartington is located in the core area of dairy production in Nebraska,” said Ibach. “The dairy industry is a sector that needs, and can benefit from, sound succession and estate planning to assure the next generation takes over an operation that might otherwise disappear.”
The free workshop will address such topics as: the stages of succession planning; the importance of communication; beginning farmer loan and tax programs; and the use of trusts, wills, life estate deeds and business entities.
The workshops are being hosted in partnership by the NDA, University of Nebraska Extension and Legal Aid of Nebraska. Farm and ranch succession and estate planning workshops will be held at other locations across the state with dates and sites to be posted on www.nextgen.nebraska.gov as they become available. For more information contact the NDA at 800-446-4071.
Nebraska Farmers Union 102nd Annual Convention Agenda Announced
Midtown Holiday Inn, Grand Island, December 4-5th
“Old Values and New Visions for the 21st Century” is the theme for the 102nd annual Nebraska Farmers Union (NeFU) state convention. John Hansen, NeFU President said, “In addition to our delegates and members electing our officers, selecting our delegates to the NFU Convention, and setting our policy, our state convention focuses on the issues, challenges, and opportunities facing us in the year ahead and in the future.”
Our Friday afternoon beginning farmer and farm succession workshop is open to the public, and is free. We have some excellent panel discussions and state and national experts on property tax reforms, trade policy, national issues, state issues, Farm Bill Implementation, and soil building while also showcasing the efforts of our Farmers Union members on farm solar development and the status of the Keystone XL pipeline. Education is at the base of the Farmers Union triangle because all successful efforts begin with good information.”
Friday morning highlights include:
· Craig Larson, CEO of the Nebraska Rural Radio Association;
· Jeff Downing, General Manager of the Midwest Agency, LLP;
· Renee Fry, Executive Director of Open Sky and Revenue Committee member Senator Al Davis who will focus on: “The Unsolved Property Tax Problem Continues”;
· Senator Al Davis who provide a look at issues in play for the upcoming 2016 Legislative Session at the Friday noon luncheon;
· Barbara Patterson, NFU Government Affairs Representative will provide a National Farmers Union issues report at the Friday noon luncheon;
Friday afternoon speakers include:
· Joe Hawbaker and Dave Goeller who will present: “The Nebraska Beginning Farmer & Rancher Network: Farm Succession Series--A Workshop on Farm and Ranch Business Succession & Estate Planning”
· Mike Kucera, USDA NRCS Agronomist will present: “Resiliency Begins With Our Soils”
The Friday evening banquet keynote speaker will be NFU President Roger Johnson.
Saturday morning highlights will include:
· “The NeFU Farm Solar Report” with four NeFU members actively engaged in farm solar projects;
· “Is Our Trade Policy Working” panel discussion with NFU President Roger Johnson, NFU Government Affairs Representative Barbara Patterson, and NeFU President John Hansen;
· A “Big Red Worms, LLC Project Report” from Jeremiah Picard and John Hansen;
· Dan Steinkruger, Executive Director of the USDA Nebraska Farm Service Administration will report on the Farm Bill implementation and other program issues;
· A panel discussion on the status of the Keystone XL pipeline with four impacted landowners;
The Noon Luncheon will feature “Farmers Union’s Leadership Role in a Renewable Future” with NFU President Roger Johnson and NeFU President John Hansen.
Registration costs are $35 and begin at 8:00 a.m. Friday and Saturday mornings. Convention begins at 9:00 a.m. Friday and 8:30 a.m. Saturday. As always, all members and the public is always welcome. More information is available at: www.nebraskafarmersunion.org or call (402) 476-8815.
Pheasants Forever Hosting 56 CRP General Sign-Up Meetings for Landowners in Nebraska
Pheasants Forever and Quail Forever, along with the Nebraska Game and Parks Commission, the Natural Resources Conservation Service and the Farm Service Agency, will host 56 Conservation Reserve Program (CRP) general sign-up informational meetings for landowners during the upcoming sign-up period. The CRP general sign-up will be held Dec. 1, 2015 through Feb. 26, 2016.
CRP remains the gold standard program for creating upland habitat for pheasants, quail and other wildlife in Nebraska. In addition to wildlife habitat, CRP provides landowners with many benefits. “CRP continues to evolve. With competitive rental rates, the ability to enroll partial fields and haying and grazing options for management, landowners will want to attend a local meeting and learn how voluntary conservation programs can work to increase farm and ranch income,” says Kelsi Wehrman, Pheasants Forever and Quail Forever’s state coordinator in Nebraska. Landowners are encouraged to RSVP for an event by contacting their local USDA Service Center or their local Pheasants Forever and Quail Forever Farm Bill wildlife biologist.
CRP general sign-up information meetings will focus on eligibility and the CRP sign-up process, as well as updates to CRP mid-contract management. Presentations will also cover various CRP practices, updated rental rates, and public access / additional incentive opportunities.
CRP Informational Meetings by County in our area....
County Date Time Location/Address
Antelope 1/14 7 p.m - 9 p.m. CST UNL Extension Service (501 Main St., Suite 98) in Neligh
Boone 1/5 7 p.m. - 9 p.m. CST Cornerstone Bank (240 S 3rd St.) in Albion
Burt 1/5 12 p.m. - 1:30 p.m. CST 1st National Bank (NE 448 South 13th St.) in Tekamah
Burt 1/7 6 p.m. - 8 p.m. CST City Auditorium (401 N. Oakland Ave.) in Oakland
Butler 1/7 1 p.m. - 2:30 p.m. CST Hruska Memorial Public Library (399 5th St.) in David City
Cedar 1/7 12 p.m. - 2 p.m. CST Auditorium (101 N. Broadway) in Hartington
Colfax 1/13 1 p.m. - 2:30 p.m. Schuyler Golf Club (295 Higgins Drive) in Schuyler
Cuming 1/14 1 p.m. - 2:30 p.m. Pizza Ranch (245 S Main St.) in West Point
Dixon 1/7 6 p.m. - 8 p.m. CST Ponca State Park (88090 Spur 26E in Ponca
Dodge 1/12 1 p.m. - 2:30 p.m. CST VFW (108 N Main St.) in Hooper
Douglas/Sarpy 1/13 12 p.m. - 1:30 p.m. Papio-Missouri River NRD (901 S. 154 St.) in Omaha
Holt 1/6 3 p.m. - 5 p.m. CST UNL Extension Service (128 N. 6th St. Suite 100) in O'Neill
Knox 1/13 10 a.m. - 12 p.m. CST Community Center (101 S. Broadway) in Bloomfield
Lancaster 1/28 5:30 p.m. - 7 p.m. CST UNL Extension (444 Cherrycreek Rd.) in Lincoln
Madison 1/5 12 p.m. - 3 p.m. CST Lifelong Learning Center (801 E. Benjamin Ave.) in Norfolk
Saunders 1/12 7 p.m. - 8:30 p.m. CST Lower Platte North NRD (511 Commercial Park Rd.) in Wahoo
Washington 1/11 12 p.m. - 1:30 p.m. USDA Service Center (1060 Wilbur St.) in Blair
Wayne 1/13 6 p.m. - 8 p.m. CST The Max (109 Main St.) in Wayne
The CRP informational meetings are made possible through funding from the Nebraska Environmental Trust.
USDA-NASS: NORTHERN PLAINS FARM LABOR
In the Northern Plains Region (Kansas, Nebraska, North Dakota, and South Dakota) there were 37,000 workers hired directly by farm operators on farms and ranches during the week of July 12-18, 2015, up 3 percent from the July 2014 reference week, according to USDA’s National Agricultural Statistics Service. Workers numbered 40,000 during the week of October11-17, 2015, up 11 percent from the October 2014 reference week.
Farm operators in the Northern Plains Region paid their hired workers an average wage of $13.96 per hour during the July 2015 reference week, down 1 percent from the July 2014 reference week. Field workers received an average of $13.66 per hour, down 43 cents. Livestock workers earned $13.31 per hour, up 32 cents. The field and livestock worker combined wage rate at $13.50, was down 15 cents from the 2014 reference week. Hired laborers worked an average of 39.6 hours during the July 2015 reference week, compared with 40.9 hours worked during the July 2014 reference week.
Farm operators paid their hired workers an average wage of $14.72 per hour during the October 2015 reference week, up 1 percent from the October 2014 reference week. Field workers received an average of $14.59 per hour, up 4 cents. Livestock workers earned $13.86 per hour compared with $13.17 a year earlier. The field and livestock worker combined wage rate, at $14.30, was up 25 cents from the October 2014 reference week. Hired laborers worked an average of 41.0 hours during the October 2015 reference week, compared with 43.5 hours worked during the October 2014 reference week.
Iowa/Missouri Farm Labor Report
There were 34,000 workers hired directly by farms in the Corn Belt 2 Region (Iowa and Missouri) during the reference week of October 11-17, 2015, according to the USDA, National Agricultural Statistics Service – Farm Labor Report. Farm operators paid their hired workers an average wage rate of $13.03 per hour, down four cents from October 2014. The number of hours worked averaged 41.0 for hired workers during the reference week, compared with 37.5 hours in October 2014.
During the reference week of July 12-18, 2015, there were 25,000 workers hired directly by farms in the Corn Belt 2 Region (Iowa and Missouri). Farm operators paid their hired workers an average wage rate of $12.89 per hour during the July 2015 reference week, down twelve cents from July 2014. The number of hours worked averaged 39.6 for hired workers during the reference week, up from 38.2 hours in July 2014.
October Hired Workers Increase 8 Percent, Wage Rates Increase 6 Percent From Previous Year
Workers hired directly by farm operators numbered 841,000 for the reference week of October 11-17, 2015, up 8 percent from the October 2014 reference week. There were 872,000 workers hired directly by farm operators on the Nation's farms and ranches during the week of July 12-18, 2015, up 4 percent from the July 2014 reference week.
Farm operators paid their hired workers an average wage of $12.82 per hour during the October 2015 reference week, up 6 percent from a year earlier. Field workers received an average of $12.11 per hour, up 5 percent from a year earlier. Livestock workers earned $12.02, up 6 percent. The field and
livestock worker combined wage rate, at $12.09 per hour, was up 5 percent from October 2014. Hired laborers worked an average of 41.7 hours during the October 2015 reference week, compared with 41.3 hours a year earlier.
Farm operators paid their hired workers an average wage of $12.47 per hour during the July 2015 reference week, up 4 percent from a year earlier. Field workers received an average of $11.73 per hour, up 3 percent. Livestock workers earned $11.80 per hour, up 5 percent. The field and livestock worker combined wage rate, at $11.75 per hour, was up 4 percent from July 2014. Hired laborers worked an average of 41.0 hours during the July 2015 reference week, compared with 40.5 hours a year earlier.
The 2015 U.S. all hired worker annual average wage rate was $12.54 per hour, up 4 percent from the 2014 annual average wage. The 2015 U.S. field worker annual average wage rate was $11.72 per hour, up 4 percent from the 2014 annual average. The 2015 U.S. annual average combined wage for field and livestock workers was $11.74, up 4 percent from the 2014 annual average of $11.29 per hour.
NCTA Vet Tech program re-accredited
Veterinary technician students at the University of Nebraska’s agriculture college in Curtis know plenty about animal health care. In fact, during year-end exams, each student is tested on 130 skills or tasks.
This in-depth, hands-on education is a hallmark for the Nebraska College of Technical Agriculture, and helps earn national recognition for the 45-year-old program.
The American Veterinary Medical Association recently re-affirmed accreditation for NCTA’s Veterinary Technology Program, said Ron Rosati, dean of NCTA, a two-year-degree institution.
“We are pleased to learn of the AVMA accreditation, based on a site visit in the Fall of 2014,” Rosati said. “NCTA’s veterinary technician option features a curriculum built around more than 130 essential skills and tasks established by national entities.”
In addition to veterinary technician, NCTA offers degree options in veterinary assistant, animal husbandry, equine health care and animal health management.
The Veterinary Technology Program has been continuously accredited by the AVMA and the Committee on Veterinary Technician Education and Activities (CVTEA) since the early ‘70s, said Barbara Berg, VT division chair. She leads the fulltime “vet tech” faculty of four instructors, a staff assistant and licensed veterinary technician (LVT) from NCTA’s animal science program. All the instructors are LVT’s or licensed veterinarians.
“As an AVMA accredited program, the veterinary technician option at NCTA provides the hands-on skills and academic background needed to accept career opportunities as an entry level veterinary technician,” Berg said. She has been with NCTA for 35 years.
The vet tech option graduates are qualified to take the Veterinary Technician National Licensing Exam and upon passage can become a LVT in Nebraska, Berg said. Commonly, 80-100 percent of the veterinary technician graduates have passed the exam.
NCTA’s veterinary technology program was established in 1968 by Dr. Walter Long, for whom the campus teaching clinic is named. Long was joined by local veterinarian, Dr. Everett Stencil, in championing the college and animal health courses.
Periodic reviews are conducted by AVMA. The next accreditation visit is scheduled for the fall of 2020.
Reviewers on the 2014 visit were Dr. Mark Hughes, Grand Island; LVT Lisa Gaede Marquardt, Lincoln; Donna Ramsey, Curtis; Dr. John Lawrence, Burnsville, Minn., and Laura Lien, CVTEA program coordinator.
Berg said the team provided insightful suggestions which will strengthen NCTA’s program for future students and technicians. Program details are available at ncta.unl.edu/veterinary-technology.
Iowa Cattlemen’s Association thanks Carcass Challenge Donors
The 5th annual Iowa Cattlemen’s Association (ICA) Carcass Challenge is off to a good start. A total of 55 steers, donated by cattlemen and friends of the industry across the state, were delivered on November 10th to Amana Farms.
The steers were vaccinated with booster vaccines, retagged and weighed. The carcass challenge steers will be allowed a two week warm-up to help remove the shrink factor from the haul to the feedyard and allow the steers time to acclimate to the new feed ration and environment. Official on-test weights and carcass ultrasounds will be taken on Wednesday, November 25, 2015.
All steers will be ranked in two categories: efficiency and carcass quality. Steers will be ranked on the “Retail Value per Days on Feed” category which scores the steers on their profitability in the feedyard based on carcass characteristics and feed conversion. The “Carcass Merit” category ranks steers solely on grid price per pound, with discount allowances for small ribeye areas, low average daily gain, and excessive trimming. The top five in each category receives an award and recognition during the awards banquet.
In addition, individual awards will be given to the steers with the highest Average Daily Gain, largest Rib Eye Area, the top marbling score, and the chef award, which is for a 12-14” ribeye with the highest marbling score.
ICA thanks this year’s Carcass Challenge steer donors and sponsors. The proceeds from their generous donations help drive educational and leadership opportunities for ICA members, such as the Young Cattlemen’s Leadership Program and ICA feedlot and cow-calf forums.
To view photos of this year’s steers please the ICA Facebook page at https://www.facebook.com/IowaCattlemensAssociation/.
USDA Livestock Slaughter Report
Commercial red meat production for the United States totaled 4.31 billion pounds in October, down slightly from the 4.32 billion pounds produced in October 2014.
Beef production, at 2.13 billion pounds, was 2 percent below the previous year. Cattle slaughter totaled 2.51 million head, down 5 percent from October 2014. The average live weight was up 35 pounds from the previous year, at 1,390 pounds.
Veal production totaled 7.2 million pounds, 7 percent below October a year ago. Calf slaughter totaled 40,300 head, down 7 percent from October 2014. The average live weight was up 1 pound from last year, at 305 pounds.
Pork production totaled 2.17 billion pounds, up 2 percent from the previous year. Hog slaughter totaled 10.25 million head, up 3 percent from October 2014. The average live weight was down 3 pounds from the previous year, at 283 pounds.
Lamb and mutton production, at 12.0 million pounds, was down 11 percent from October 2014. Sheep slaughter totaled 186,300 head, 10 percent below last year. The average live weight was 129 pounds, unchanged from October a year ago.
By State (million pounds, % of Oct '14)
Nebraska ...........: 687.7 100
Iowa ..................: 600.0 96
Kansas ...............: 452.8 103
January to October 2015 commercial red meat production was 40.1 billion pounds, up 2 percent from 2014. Accumulated beef production was down 3 percent from last year, veal was down 15 percent, pork was up 7 percent from last year, and lamb and mutton production was down 4 percent.
U.S. Corn Exports Down, But Sales Continue
With 96 percent of this year’s U.S. corn crop harvested as of Nov. 15 according to the U.S. Department of Agriculture’s (USDA’s) weekly Crop Progress report, U.S. farmers are now turning toward the market, looking for pockets of demand to sell their bountiful crop.
This season’s harvest of grain corn is predicted to be 345.5 million metric tons (13.6 billion bushels) with 45.7 million tons (1.8 billion bushels) destined for export, according to the USDA World Agricultural Supply and Demand Estimates (WASDE) report.
The strong dollar is causing export demand to be weaker than would typically be expected for such a large crop with prices currently below $4 per bushel. USDA reported lower corn inspections last week compared with the same time last year, putting total exports for the 2015/2016 marketing year down 24 percent from a year ago.
Still, international markets are active, and customers are looking for details of the new crop’s availability and quality. For instance, U.S. corn sales to Mexico as of Nov. 12 totaled 5.6 million tons (220.4 million bushels), up 5.7 percent from last year. Japan and Latin America also continue to be leading buyers of U.S. corn, and additional exports of distiller's dried grains with solubles (DDGS), ethanol, meats and dairy - as well as other feed grains including barley and sorghum - will further increase the total of grain equivalents exported.
“This is typically the time the United States is competing most directly with other origins for market share,” said U.S. Grains Council Chairman Alan Tiemann, who farms in Nebraska. “But the strong U.S. dollar is causing U.S. corn to not be priced competitively against supplies from Brazil and Ukraine.
“However, U.S. origin corn has other advantages including being graded by one of the most transparent and reliable systems in the world. We are also able to consistently deliver the grain specified in our contracts in a timely manner. These are important advantages that our overseas customers value.”
The current low prices are creating buying opportunities around the globe and can offer international customers the opportunity to invest in their businesses, ultimately growing long-term demand. The Council is working closely around the world on trade servicing activities including the coming roll-outs of quality reports on both corn and sorghum.
In addition to a strong corn marketing program in 2016, the Council will be stepping up its ethanol and DDGS export promotion programs. U.S. ethanol is an extremely competitive, cleaning-burning source of fuel, and the Council is seeking to build demand overseas for the commodity.
“The Council is helping to build on our buyers’ past positive experiences with U.S. grain as well as enter new markets through networking opportunities with U.S. sellers and providing our customers unique information,” Tiemann said. “By doing this, we are helping simulate demand today and creating long-term relationships, too.”
Webinar Outlines 2016 Calf Market Expectations
Cow-calf margins will shrink as the U.S. beef cowherd expands, but producers can ensure future profitability by adjusting business plans for the supply increase. An upcoming free CattleFax webinar will address a 2016 outlook for the cow-calf segment and entire beef sector, while exploring continued cowherd expansion.
The CattleFax Trends+ Cow-Calf Webinar will be at 5:30 p.m. MT, Jan. 20, 2016. To participate in the webinar and access program details, producers and industry leaders simply need to register online at www.cattlefax.com/meetings.aspx.
One of the most aggressive U.S. beef cowherd expansions in the last four decades will increase beef supplies and pressure cow-calf profitability over the next several years. As profits narrow during that time, well-informed producers can maintain healthy margins by adjusting production, marketing and risk management plans with increasing supplies in mind.
CattleFax analysts will discuss a variety of topics in the one-hour session, including:
- Cattle and feedstuff market projections for the next 12 to 18 months
- Supply and margin expectations based on U.S. beef cowherd expansion estimates
- Expected returns of beef cows over their productive life and potential opportunities.
The Trends+ webinar series informs cattle producers about current market conditions and provides providing decision-friendly advice regarding management decisions. The analysis and strategies shared through the webinar series has reached more than 2,500 producers, and sponsorship from Elanco Animal Health is making the seminar free for all attendees.
October US Cattle Placements Seen Down
The number of cattle placed into U.S. feed yards last month was predicted to be 4.1% lower than the same time in 2014, according to a Wall Street Journal survey for Friday's federal cattle-on-feed report, as cattle prices continued to slide in October.
The U.S. Department of Agriculture is scheduled to release the report Friday at 3 p.m. ET.
The average of estimates from nine analysts for the number of cattle sold to commercial feedyards through the end of the month at 2.271 million head, according to the average of the estimates, which ranged from 1.6% to 6.2% below the same time in 2014. The wide range reflects uncertainty about the pace at which feedyard operators sought to fill pens for fattening light-weight cattle amid plunging feeder-cattle prices.
The average of the estimates for the number of cattle in feedyards as of November 1 was about 10.805 million head, or 2.2% above the same period last year, reflecting the build-up of livestock being fed for slaughter as operators retain animals for longer stretches of time. This has added to the volume of beef for retailers and restaurants to sell, contributing to a steep drop in the wholesale value of beef in recent months, too.
Projections for the total number of cattle that were marketed by feedyards in October to be processed for beef averaged 3.8% below this time last year, at 1.620 million head.
October Milk Production in the United States up 0.1 Percent
Milk production in the United States during October totaled 17.1 billion pounds, up 0.1 percent from October 2014 according to USDA. Production per cow in the United States averaged 1,835 pounds for October, 5 pounds below October 2014. The number of milk cows on farms in the United States was 9.31 million head, 32,000 head more than October 2014, but 1,000 head less than September 2015.
Milk production in Iowa during October 2015 totaled 395 million pounds, up 1 percent from October 2014 according to the latest USDA, National Agricultural Statistics Service – Milk Production report. This is the highest October milk production for Iowa since 1967. The average number of milk cows during October, at 210,000 head, was the same as last month but 2,000 more than a year ago. Monthly production per cow averaged 1,880 pounds, up 5 pounds from last October.
Global Soybean Leaders Join Forces to Address Biotech Acceptance in Europe
U.S. and South American soybean farmers are meeting with government officials, industry partners and other key influencers in Europe this week to discuss biotechnology acceptance and the implications of biotech approval delays. The farmers, who represent more than 95 percent of the world’s soybean exports and normally battle for global market share, are joining forces to advocate for a science-based and more predictable biotech approval process.
“Soybeans are part of a global market,” said Bob Haselwood, United Soybean Board (USB) chairman and soybean farmer from Berryton, Kansas. “We need a collaborative effort across the U.S., South America and the European Union to work toward timely approvals for new biotech traits. These traits will help us continue to supply a safe, reliable and abundant food supply for the world’s consumers.”
The delegation from the U.S. and South America is part of the International Soybean Growers Alliance (ISGA), which brings together farmers from these key soybean-producing countries to address global issues impacting all soybean farmers, including biotechnology acceptance.
A study released during an ISGA trade mission earlier this year showed that a three-year postponement in global approval of biotech-enhanced soybean traits any time in the next 10 years would cost farmers and consumers nearly $19 billion, compared with typical approval timelines.
The groups with the most to lose from delayed approvals include consumers in large importing countries, including China and nations in the European Union, and farmers in large soy-exporting countries that quickly adopt new technology, such as the U.S., Brazil and Argentina, according to the report.
“The global supply chain is a powerful economic engine that benefits not only farmers and consumers but also stakeholders at each stage in between,” said Ron Moore, American Soybean Association (ASA) secretary, U.S. Soybean Export Council (USSEC) board member and soybean farmer from Roseville, Illinois. “The soybeans we grow create jobs in the U.S. and in each of our export markets. These economic benefits can’t be fully realized without a fully functioning biotech approval process.”
ASA Urges U.S. to Keep Up Pressure on China Biotech Approvals
The American Soybean Association (ASA) and the U. S. Biotech Crops Alliance (USBCA) members sent a letter this week to United States Department of Agriculture (USDA) Secretary Tom Vilsack, Secretary Penny Pritzker and Ambassador Michael Froman urging them to continue pushing for timely, science based biotechnology approvals in China.
With the upcoming U.S.-China Joint Commission on Commerce and Trade (JCCT) scheduled to take place this weekend, USBCA is looking to the United States government to follow-up on the short term commitments made by China to advancethe full queue of products, and specifically to issue safety certificates for all productsthat have cleared the National Biosafety Committee by year end.
During Chinese President Xi Jinping’s recent visit to the United States, a series of concrete commitments were established aimed at creating an enabling environment for agricultural innovation between the U.S. and China, which included an improved biotech import-approval process and reiterating the need for a timely, transparent, predictable, science-based approval process.
ASA and USBCA also sent a letter this week in response to the Strategic Agricultural Innovation Dialogue (SAID), a deliverable of the 2014 JCCT and held on the margins of President Xi’s State Visit, which enabled both the U.S. and China to discuss goals of fostering agricultural innovation.
ASA along with all the USBCA members look forward to seeing SAID continue with a focused work plan aimed at supporting policy improvement and strengthening cooperation.
Illinois Cattleman Testifies Before Congress; Calls for Updated Business Size Standards for Agriculture
Illinois cattle producer Jeff Beasley testified before the House Committee on Small Business, Subcommittee on Agriculture, Energy, and Trade regarding the outdated small business size standards for agriculture. Beasley, co-owner of Beasley & Sons Livestock from Creal Springs, Ill., said the size standards haven’t kept up with the evolving industry, and hurt small family operations like his own.
“The outdated size standards of the Small Business Act clearly do not reflect the needs of modern agriculture,” said Beasley, who manages between 2,000 and 4,000 head of cattle depending on the year. “Many farm operations, like mine, are still family owned and operated, but the cost of doing business has increased tremendously; as has the average age of the farmer.”
The Small Business Act of 1953 authorized the Small Business Administration to establish the standards for determining the financial eligibility assistance of small businesses. The definition of a small business is subjective and it varies by industry. Under the Small Business Act, a small business is determined by number of employees, dollar volume of business, net worth, net income, a combination thereof, or other factors. The definition is meant to be relative to each industry and reflect the differing characteristics between industries.
“Living and working on a cattle farm is a wonderful way of life, and it’s a great place to raise a family. You must have a strong desire, passion and a good work ethic to accept this challenge of raising livestock. I've never had anyone tell me they got into agriculture to get rich, but rather because they loved doing this work. However, we in agriculture can't live solely on dreams. Farming and ranching is the quintessential ‘small business.’ We should be recognized as such and we need to be treated as such, in regard to business regulations that can so greatly affect us.”
In 1984, the Small Business Administration proposed changing the definition of ‘small’ to farms with cash receipts less than $100,000. Congress responded in 1985 by removing SBA’s ability to establish a small business size standard for agriculture by enacting a statutory level of $500,000 that was later increased to $750,000 by Congress in 2000. The authority to update the standards has not been transferred back to the Administrator of the Small Business Administration.
The Small Agriculture Producer Size and Standards Improvement Act (H.R. 3714) was introduced by Rep. Mike Bost (R-Ill.) in October. The bill amends the Small Business Act to return the authority for establishing size standards for agriculture to the Small Business Administration, the same process as other small businesses. Beasley said he strongly supports this bill.
“An average farmer in 1987 would have been eligible for a loan through the Small Business Administration by not exceeding the statutory limit of $500,000,” explained Beasley. “However, an average farm value in 2012 would vastly exceed the statutory limit of $750,000 established in 2012. The Small Business Administration should have the authority to adjust statutory limits on a regular basis using data such as the Census of Agriculture that is conducted every five years, as well as other data provided by the U.S. Department of Commerce.”
NCBA and its members believe that despite the increasing regulatory and tax burdens and the frivolous abuse of the legal system, America continues to be a fertile ground for the entrepreneurial spirt and multi-generational, family-owned businesses. Enacting the Small Agriculture Producer Size and Standards Improvement Act is a step in the right direction to recognize the important role of small agricultural businesses in America’s economy.
ASA Welcomes White House, FDA GMO Labeling Developments and Calls on Senate to Move Legislation Forward
The American Soybean Association (ASA) welcomes guidance issued today by the U.S. Food and Drug Administration that establishes guidelines for the uniform, voluntary labeling for non-GMO foods. Establishing a uniform standard for voluntary labeling has been a key part of ASA’s push to reduce consumer confusion about which foods do and do not contain ingredients derived from biotechnology.
“ASA is happy to see the guidance from FDA today that affirms that voluntary rather than mandatory labeling is the correct science-based and health policy,” said ASA President and Texas farmer Wade Cowan. “This concept has been at the heart of our work on a legislative solution that would provide more clarity to consumers, and we’re encouraged to see that part of the process move forward.”
ASA also pointed to news today out of the White House that the administration has rejected a petition calling for the mandatory labeling of GMO’s as indication that the discussion on biotechnology in the consumer marketplace is moving according to science, rather than misconception.
“We have consistently said that explicit labeling should be reserved for health or safety concerns, and science has time and time again proven that these concerns don’t apply to GMOs,” added Cowan. “Slapping a warning label on the front of a food product when no such warning is warranted will only serve to steer people away from the safe and affordable food they need to feed their families. The White House has chosen science over rhetoric today, and we applaud them for it.”
Cowan further suggested that the news creates the momentum needed to get labeling legislation that would prevent a patchwork of mandatory state labeling laws passed in the Senate prior to the holiday recess at the end of the year.
“Winter is coming,” Cowan said. “The Senate has the ability in the coming weeks to establish a path forward on labeling that is based in science and doesn’t stigmatize a safe and proven technology, but at the same time provides consumers with the information they want. We encourage Senators to keep moving forward with their work.”
NCGA Applauds FDA Approach to Voluntary Labeling Guidelines
The National Corn Growers Association today thanked the U.S. Food and Drug Administration for issuing science-based, reasonable guidance on voluntary labeling for foods with ingredients from genetically engineered sources. This guidance, which importantly stresses that the Agency only has purview to require mandatory labels in the case of material difference, addresses consumer interests with a clear outline of recommendations for food companies wishing to label their products.
"The FDA's approach to voluntary labeling of food products would provide American consumers with truthful information in a clear manner that respects regulatory processes already in place," said NCGA President Chip Bowling, a farmer from Newburg, Maryland. "In maintaining a science- and process-based approach to mandatory labels while laying out a thoughtful, conscientious path for voluntary labeling, the FDA stood firmly both with the people who grow our food and those who buy it. A voluntary labeling system, like the one outlined, provides information that would allow consumers to make choices based in facts and not in fear."
Farmer Co-ops Applaud FDA Rejection of Mandatory GMO Labeling Request
The National Council of Farmer Cooperatives (NCFC) today applauded the decision of the U.S. Food and Drug Administration (FDA) to reject a petition for mandatory labeling of foods containing genetically modified ingredients (GMOs).
“In denying this petition, the FDA once again looked at the research on GMOs and reaffirmed what every reputable scientific study on these products has found—that GMOs are safe and not different in any meaningful way from foods produced without this breeding technology,” said Chuck Conner, president and CEO of NCFC. “This decision opens the way for further congressional action on legislation that will provide a verifiable, process-based and federal voluntary GMO labeling standard that will expand consumer choice in the marketplace and provide consistency and certainty across the country. Legislation should also prevent states from creating their own labeling standards, such as Vermont has done, that have no basis in science and would create an untenable, 50-state patchwork of standards.”
Statement from NMPF President and CEO Jim Mulhern on FDA Announcements Regarding Labeling of Food from Genetically Engineered Sources
“We commend the U.S. Food and Drug Administration for releasing recommendations on the voluntary labeling of food made from genetically engineered foods. Once again, FDA has confirmed the safety of these products.
“Furthermore, we are heartened by FDA’s rejection of a petition seeking mandatory labeling of foods made with genetically modified ingredients. FDA’s rejection of the petition is a strong reaffirmation of the sound science policy underlying FDA’s approval process. Only products found to be safe for human or animal use should be approved. And if they are approved as safe, there is no basis for mandatory labeling."
Growth Energy and RFA Meet with OMB to Discuss Forthcoming RFS Rule
At a meeting on Wednesday with the Office of Management and Budget (OMB), Bob Dinneen, president and CEO of the Renewable Fuels Association (RFA), and Tom Buis, CEO of Growth Energy, delivered the message that the Renewable Fuel Standard (RFS) is working and that there is no reason for the Environmental Protection Agency (EPA) to set the Renewable Volume Obligations (RVOs) for undifferentiated renewable fuel (primarily corn ethanol) below the levels specified in the statute. EPA is expected to issue the final RFS rule for 2014-2016 on or before Nov. 30. Dinneen said data show the U.S. ethanol industry would have no problem meeting the 15 billion gallon blending level specified by the statute.
“The latest data from the Energy Information Administration show that gasoline consumption projections for 2016 have increased. In fact, EIA expects 2016 gasoline demand to achieve a nine-year high,” said Dinneen, underscoring a recent analysis by RFA [link to blog post]. “Our calculations show that because of the uptick in gasoline demand alone, EPA must increase the 2016 RVO by 270 million gallons.
“Additionally, the EPA significantly understated the use of E85 and non-ethanol conventional renewable fuels, including non-advanced renewable diesel and biodiesel, in its proposal. Moreover, USDA’s recent Biofuels Infrastructure Program grants will give consumers greater access to higher blends of ethanol like E85 and E15 through the installation of more than 5,000 blender pumps at 1,400 fueling stations. We provided OMB with data showing that EPA has understated the likely market for E85 and non-ethanol conventional biofuels in 2016 by at least 440 million gallons. All of this suggests there will be at least 14.7 billion gallons of undifferentiated renewable fuel blended next year. With approximately 2 billion surplus RINs credits available for refiners to use for compliance with the RFS, there is simply no reason for the EPA to lower the 2016 RVO below the statutorily imposed level of 15 billion gallons.
Buis added, “Yesterday we impressed upon OMB the importance of moving the Renewable Fuel Standard forward, not backward. This is a policy this is creating jobs, reducing our dependence on foreign oil, improving our environment, and one that is breaking the near monopoly Big Oil has on the liquid fuels transportation market, providing consumers with a choice and savings at the pump. The data is there to prove the value of the program and it shows the RFS is doing exactly what it was intended to do.”
“This meeting was really our closing argument before the administration makes its final decision. We impressed upon OMB that the oil industry’s ‘blend wall’ narrative is simply not true. The president needs to uphold the statute, both concluded.”
National Water Quality Database Released to Address Nutrient Challenges
The National Corn Growers Association and the Water Environment Research Foundation announced the completion of the Agricultural Best Management Practices Database today at the American Water Resources Association’s Annual Conference on Water Resources.
Along with other project sponsors, such as the United Soybean Board, this database was developed to create a centralized repository of agricultural best management practice performance studies related to water quality in agricultural areas.
“The goal of the database is to provide farmers, agricultural advisors, planners, and consultants with information that enables them to implement cost-effective water quality improvement solutions,” said NCGA Production and Stewardship Action Team Chair Brent Hostetler. “Currently, many conservation practices and pollutant reduction measures are being voluntarily adopted. However, until now, the effectiveness of various practices has been uncertain due to the limited availability of comprehensive and comparable field-scale data. The Agricultural Best Management Practices Database addresses this problem by providing a comprehensive set of monitoring and reporting protocols and a clearinghouse for collecting, storing, and evaluating agricultural best management practice performance information.”
“WERF appreciates the proactive approach that NCGA and USB are taking with creation of the Ag BMP Database,” explained WERF Research Program Director Theresa Connor. “Having a clearinghouse of meta and performance data for agricultural conservation practices will assist both growers and watershed managers make more informed decisions on the impact of their conservation practices on water quality, and as information is available costs and crop yield. Bringing the many available, diverse research projects into one data system can ultimately help growers more effectively implement conservation practices and researchers share information.”
The database includes performance data and metadata that document the many variables that affect BMP performance. These variables include geographic area, field conditions such as soils and slopes, tillage and nutrient management practices, and the existence of buffers, constructed wetlands, and other edge-of-field practices. The database’s initial release focuses on row crops, particularly corn and soybeans, and its primary analytical focus is on phosphorus, nitrogen, and sediment.
The project data summary, appendices, and database are available at http://www.bmpdatabase.org/agBMP.html.
USDA Announces $350 Million Available to Help States, Private Partners Protect and Restore Grasslands, Wetlands, and Working Lands
Agricultural Secretary Tom Vilsack today announced the availability of $350 million to help landowners protect and restore key farmlands, grasslands and wetlands across the nation. The funding is provided through the Agricultural Conservation Easement Program (ACEP), created by the 2014 Farm Bill to protect critical water resources and wildlife habitat, and encourage private owners to maintain land for farming and ranching. Through the voluntary sale of an easement, landowners limit future development to protect these key resources.
"The benefits of restoring, enhancing and protecting these working agricultural lands and critical wetlands cannot be overstated," Vilsack said. "USDA is committed to preserving working agricultural lands to help protect the long-term viability of farming across the country as well as to restoring and protecting vital sensitive wetlands that provide important wildlife habitat and improve water quality."
ACEP's agricultural land easements not only protect the long-term viability of the nation's food supply by preventing conversion of productive working lands to non-agricultural uses, they also support environmental quality, wildlife habitat, historic preservation and protection of open spaces. Native American Tribes, state and local governments and non-governmental organizations that have farmland or grassland protection programs are eligible to partner with NRCS to purchase conservation easements.
Wetland reserve easements allow landowners to successfully restore, enhance and protect habitat for wildlife on their lands, reduce damage from flooding, recharge groundwater and provide outdoor recreational and educational opportunities. Eligible landowners can choose to enroll in a permanent or 30-year easement. Tribal landowners also have the option of enrolling in 30-year contracts.
In north central Iowa, ACEP funds have been used to add nearly 400 acres to an existing contiguous 600 acre wetland complex protecting the recently restored public Big Wall Lake. Two land trusts in Colorado plan to use ACEP funds to enroll 1,805 acres to protect critical Sage Grouse habitat in Saguache County and in the Upper Colorado River Corridor Priority Landscape located in Grand County.
In FY 2014 and FY 2015, NRCS invested more than $600 million in ACEP funding to help landowners engage in voluntary conservation to provide long-term protection of an estimated 250,000 acres of farmland, grassland, and wetlands through more than 750 new easements.
New Fact Sheets Bring Wheat Trade Issues into Focus
U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) have launched a series of fact sheets highlighting trade policy topics of priority for the U.S. wheat industry. The fact sheets provide a comprehensive overview of selected topics including perspectives from U.S. wheat growers. The fact sheets offer a resource for state wheat commissions, farmers and media to utilize in their own policy and educational efforts.
“There are many policies that impact U.S. wheat growers and exports,” said USW Director of Policy Dalton Henry. “These resources help break down those topics, providing clear, concise messaging. They will be a great tool moving forward in our policy programming, and for our colleagues at NAWG to use on Capitol Hill.”
To date, three fact sheets are available for download on the USW website, www.uswheat.org/factsheets:
Call for Grain Trade Equality at the Canadian Border
Canada allows tariff-free access to U.S. wheat and certain other foreign sources. However, imported U.S. wheat, even wheat of the highest quality, must be segregated from most Canadian wheat. It is automatically given the lowest grade established by regulation and therefore receives the lowest possible price.
More Change Needed to Rebuild Cuban Wheat Sales
Cuba’s proximity, as well as historical and cultural ties, should make it a natural trading partner for the United States. Averaging over 30 million bushels imported per year, Cuba is the largest market in the Caribbean for wheat, but the embargo locks U.S. wheat out of this market.
U.S. Wheat: A Vital Food Aid Tool
Wheat is the source of 20 percent of the world’s caloric intake and a dietary staple around the world. The U.S. wheat industry is committed to global food assistance and encourages a program that includes the full range of options to help countries attain lasting and sustainable food security.
Additional fact sheets are in development and scheduled for future release.
Thanksgiving Dinner Up a Tad, to Just Over $50
The American Farm Bureau Federation’s 30th annual informal price survey of classic items found on the Thanksgiving Day dinner table indicates the average cost of this year’s feast for 10 is $50.11, a 70-cent increase from last year’s average of $49.41.
The big ticket item – a 16-pound turkey – came in at a total of $23.04 this year. That’s roughly $1.44 per pound, an increase of less than 9 cents per pound, or a total of $1.39 per whole turkey, compared to 2014.
“Retail prices seem to have stabilized quite a bit for turkey, which is the centerpiece of the meal in our marketbasket,” AFBF Deputy Chief Economist John Anderson said. “There were some production disruptions earlier this year due to the highly pathogenic Avian influenza outbreak in the Midwest. Turkey production is down this year but not dramatically. Our survey shows a modest increase in turkey prices compared to last year. But we’re now starting to see retailers feature turkeys aggressively for the holiday. According to USDA retail price reports, featured prices fell sharply just last week and were actually lower than last year,” he added.
The AFBF survey shopping list includes turkey, bread stuffing, sweet potatoes, rolls with butter, peas, cranberries, a relish tray of carrots and celery, pumpkin pie with whipped cream, and beverages of coffee and milk, all in quantities sufficient to serve a family of 10. There is also plenty for leftovers.
Foods showing the largest increases this year in addition to turkey were pumpkin pie mix, a dozen brown-n-serve rolls, cubed bread stuffing and pie shells. A 30-ounce can of pumpkin pie mix was $3.20; a 14-ounce package of cubed bread stuffing, $2.61; and two nine-inch pie shells, $2.47.
“Despite concerns earlier this fall about pumpkin production due to wet weather, the supply of canned product will be adequate for this holiday season,” Anderson said.
Items that declined modestly in price were mainly dairy items including one gallon of whole milk, $3.25; a combined group of miscellaneous items, including coffee and ingredients necessary to prepare the meal (butter, evaporated milk, onions, eggs, sugar and flour), $3.18; a half pint of whipping cream, $1.94; and 12 ounces of fresh cranberries, $2.29. A one-pound relish tray of carrots and celery (79 cents) and one pound of green peas ($1.52) also decreased slightly in price.
The average cost of the dinner has remained around $49 since 2011. This year’s survey totaled over $50 for the first time.
“America’s farmers and ranchers are able to provide a bounty of food for a classic Thanksgiving dinner that many of us look forward to all year,” Anderson said. “We are fortunate to be able to provide a special holiday meal for 10 people for just over $5 per serving.”
The stable average price reported this year by Farm Bureau for a classic Thanksgiving dinner tracks closely with the government’s Consumer Price Index for food eaten at home. For October, the most recent month available, the food at home CPI posted a 0.7 percent increase compared to a year ago (available online at http://www.bls.gov/news.release/cpi.nr0.htm).
A total of 138 volunteer shoppers checked prices at grocery stores in 32 states. Farm Bureau volunteer shoppers are asked to look for the best possible prices, without taking advantage of special promotional coupons or purchase deals, such as spending $50 and receiving a free turkey.
Shoppers with an eye for bargains in all areas of the country should be able to purchase individual menu items at prices comparable to the Farm Bureau survey averages. Another option for busy families without a lot of time to cook is ready-to-eat Thanksgiving meals for up to 10 people, with all the trimmings, which are available at many supermarkets and take-out restaurants for around $50 to $75.
The AFBF survey was first conducted in 1986. While Farm Bureau does not make any scientific claims about the data, it is an informal gauge of price trends around the nation. Farm Bureau’s survey menu has remained unchanged since 1986 to allow for consistent price comparisons.
Welcome to the KTIC Agriculture Information blog!!! Check back here for the latest in ag news and information, from local events to international happenings and government reports that affect your operation. Please email with suggestions! -Chad Moyer, Farm Director, KTIC Radio
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