Tuesday November 3 Ag News

Forage, Feed, and Grazing Restrictions for Row Crop  Herbicides
Larry Howard, UNL Extension Educator, Cuming County

It’s nice seeing cattle beginning to be turned out into corn stalks.   One point that needs mentioned is that we all need to be checking the herbicide label for any grazing restrictions of crop residues.

Check the labels from in-season applied herbicides to row crops and fall-applied herbicides to crop residue for any potential grazing restrictions and also any restrictions on grazing cover crops planted into crop residues following application of those chemicals to a row crop.   If the label doesn’t specify any restrictions, then it should be ok.  If you want to be on the safe side, a rule of thumb some chemical representatives use is to use the pre-harvest interval for the amount of time to wait before grazing stalks.

Some labels will say that residue should not be grazed or baled and fed to livestock.   Sometimes studies were actually conducted to know there is a safety concern.   In other cases, the chemical company may not choose to conduct all the studies the Environmental Protection Agency (EPA) required for labeling due to high costs.   If that’s the case, the EPA requires the strongest restrictive language be placed on the label.

Regardless, if it says there’s a grazing restriction on the label, the label needs to be followed as it is a legal document and the law.   Your cattle may/may not be affected by grazing stalks or cover crops where a chemical with a grazing restriction is on the label, but there may be other concerns such as problems with the chemical affecting the calf or being retained in the cow’s milk.

Hail/rain/wind caused for soybean shatter and harvest loss for some areas of the state.  Volunteer beans have created green fields in the area. For those considering grazing, you also need to look at any herbicide grazing restrictions from herbicides applied in-season to soybeans as well. UNL Extension Forage Specialist, Bruce Anderson recently shared, “Soybeans can cause bloat, but the incidence is low. The young green ones may be more risky. Founder would be possible problem with a sudden diet change. Too many unsprouted beans in the diet could cause excess fat; I think maximum is about 3 pounds of beans per cow. I’d try to limit amount of grazing for a few days, maybe feeding a very palatable supplement like a ground forage/distillers mix and reduce the amount of this supplement each day for a week or so. And keep a dry, palatable hay always available free choice.”

For a quick reference, the 2015 UNL Guide for Weed Management shows the Forage, Feed, Grazing Restrictions for Row Crop Herbicides on pages 174-177.   A new weed guide will be released January 2016.   These pages just provide a reference; it is always best to read and follow the label.



Field to Market Assessments to Improve Efficiency
Keith Glewen, Nebraska Extension Educator

        Nebraska Extension in Saunders County announces that the University of Nebraska Agricultural Research and Development Center near Mead, Neb. will be a host site for a new series of workshops that employs the agricultural industry authored Field to Market tool to estimate efficiency of input use and environmental sustainability for your farming practices.   The workshop is sponsored by Nebraska Extension, Nebraska Corn Board and Nebraska Soybean Board.  Participating farmers will use a new web based tool called the Fieldprint® Calculator.

   Calculating "Fieldprints" can help growers to establish benchmark data on a field and track improvements overtime, set energy saving and efficiency goals and compare performance against local, state and national benchmarks said Extension Educator Keith Glewen.  The Fieldprint Calculator is simple to use, though the technology behind it is very complex and the metrics are science based. 

   The Field Assessment workshops in Nebraska are hands-on and will show growers how to document eight sustainability and efficiency indicators via use of a laptop computer.  They are Land Use, Conservation, Soil Carbon, Irrigation Water Use, Water Quality, Energy Use, Greenhouse Gas Emissions and Water Quality.

   Participants will select a representative corn or soybean field for 2015 and complete a data input sheet in advance of the Fieldprint® Calculator workshops.  Meals and workshop materials are sponsored. Computer laptops are provided or bring your own. No prior computer knowledge is necessary, there will be plenty of experienced users to assist all who attend or bring along a helper.  Pre-registration is required by Thursday, December 3, 2015, by contacting a host Extension office. Participants from 2014 workshops are invited back to review outcomes from last year’s workshops and complete another cropping sequence.

   “We want growers in Nebraska to be better able to understand and communicate how management choices affect overall sustainability performance and operational efficiency of their farm operations, but also be prepared for any new supply chain initiatives in the food sector that could emerge” said Glewen.

   The workshop instructors include a core team of Nebraska Extension faculty.   For more information and to pre-register by the December 3, 2015 deadline, contact the Nebraska Extension at 402-624-8030 or Saunders-County@unl.edu.

Nebraska Workshop Times, Locations and Pre-registration Information:
   LINCOLN:  Monday, December 7, 9:00 AM – 1:00 PM
   UNL Extension Office in Lancaster County, 444 Cherrycreek Road
   Contact: Tyler Williams, (402)441-7180 or tyler.williams@unl.edu



Green Plains Reports Third Quarter 2015 Financial Results

Omaha-based Green Plains Inc. (NASDAQ:GPRE) announced today its financial results for the third quarter of 2015. Net income attributable to the company for the quarter was $6.2 million, or $0.16 per diluted share, compared to net income of $41.7 million, or $1.03 per diluted share, for the same period in 2014. Revenues were $742.8 million for the third quarter of 2015 compared to $833.9 million for the same period in 2014.

"We are pleased with our results considering the tight margin environment experienced during the third quarter," said Todd Becker, president and chief executive officer. "Based on the recent improvement in the forward curve for ethanol margins and current market fundamentals, we believe our fourth quarter operating income will exceed the third quarter of 2015."

With the formation of Green Plains Partners LP, Green Plains restructured its operating segments to create a separate reportable segment for the partnership. The partnership is included in the Green Plains' consolidated financial statements, with public ownership reflected as a noncontrolling interest.

During the third quarter, Green Plains' ethanol production totaled 215.6 million gallons, or approximately 83.8% of its daily average production capacity. As a result of additional intersegment transactions primarily relating to contractual arrangements with Green Plains Partners, the company has added financial disclosure concerning the consolidated ethanol crush margin, i.e. the gross margin earned before charges and fees paid to affiliates. The consolidated ethanol crush margin is operating income before depreciation and amortization from the ethanol production segment, including corn oil production, plus the partnership's intercompany storage and transportation activities and other internal fees. The consolidated ethanol crush margin was $34.9 million, or $0.16 per gallon for the third quarter of 2015, compared to $82.8 million, or $0.34 per gallon for the same period in 2014.

"With our recent acquisition activity, we are putting our strong balance sheet to work for our shareholders," Becker said. "The purchase of ethanol plants in Hopewell and Hereford, along with expansion projects completed to date, will increase our production capacity to over 1.2 billion gallons per year. We believe each of these transactions will be accretive to earnings in the near term."

Revenues were $2.2 billion for the nine-month period ended September 30, 2015 compared to $2.4 billion for the same period of 2014. Net income attributable to Green Plains for the nine-month period ended September 30, 2015 was $10.7 million, or $0.27 per diluted share, compared to net income of $117.3 million, or $2.90 per diluted share, for the same period in 2014.

"Global demand for ethanol remains strong, with domestic blending occurring at a record pace and ethanol exports running approximately 6% ahead of last year," continued Becker. "For the third quarter, ethanol export sales were 21% of our production. We continue to see strong interest from a variety of countries for the ethanol, distillers grains and corn oil we produce."

Green Plains had $512.5 million in total cash and equivalents and $275.3 million available under committed loan agreements at subsidiaries (subject to borrowing base restrictions and other specified lending conditions) at September 30, 2015. EBITDA, which is defined as earnings before interest, income taxes, depreciation and amortization, for the third quarter 2015 was $36.3 million compared to $91.9 million for the same period in 2014.



Green Plains Partners Reports 3rd Quarter 2015 Financial Results

Omaha-based Green Plains Partners LP (NASDAQ:GPP) today announced financial and operating results for the three months ended Sept. 30, 2015. The partnership reported adjusted EBITDA of $13.1 million and distributable cash flow of $12.9 million. Third quarter 2015 net income was $10.9 million, or $0.34 per common unit.

“The partnership’s stable fee-based contract structure allowed us to achieve solid financial results for our first quarter of operation as a public company,” commented Todd Becker, president and chief executive officer of Green Plains Partners.

“Storage and throughput volumes were slightly lower than expected during the quarter due to seasonally scheduled maintenance completed on the production facilities, increased production of export product which reduces plant production rates and the decision by Green Plains Inc. to slow production in response to lower ethanol margins,” continued Becker. “Green Plains has since returned to production levels that are more consistent with prior quarters. As a result, we expect stronger adjusted EBITDA in the fourth quarter.”

“We also expect Green Plains Inc. to offer the partnership its first dropdown opportunity in the fourth quarter as a result of their recent acquisitions. At the same time, we are pursuing organic and acquisitive growth opportunities on our own,” Becker added. “With our strong liquidity position, we are uniquely positioned to move quickly for the right opportunity.”

Green Plains Partners LP is a Delaware limited partnership formed by its parent, Green Plains Inc., to provide fuel storage and transportation services by owning, operating, developing and acquiring ethanol and fuel storage tanks, terminals, transportation assets and other related assets and businesses.

On July 1, 2015, the partnership completed its initial public offering of 11,500,000 common units representing limited partner interests at a price of $15.00 per common unit, which included 1,500,000 common units issued in accordance with the underwriters’ over-allotment option. Common units of the partnership are traded under the symbol “GPP” on The NASDAQ Global Market. As of July 1, 2015, the partnership’s assets include:

    Ethanol Storage Facilities. The partnership owns 27 ethanol storage facilities located at or near 12 ethanol production plants owned by its parent in Indiana, Iowa, Michigan, Minnesota, Nebraska and Tennessee with combined on-site ethanol storage capacity of approximately 26.6 million gallons, or mmg, and an aggregate throughput capacity of approximately 1,330 million gallons per year, or mmgy. The ethanol storage assets are the principal method of storing and loading the ethanol produced at Green Plains’ ethanol production plants for delivery to its customers.

    Fuel Terminal Facilities. The partnership provides terminal services and logistics solutions at fuel terminal facilities it owns and operates. These eight fuel terminal facilities, located in seven south-central states, have fuel holding tanks and access to major rail lines for transporting ethanol or other fuels. The partnership’s fuel terminal facilities have a combined total storage capacity of approximately 7.4 mmg.

    Transportation Assets. The partnership’s transportation assets include a leased railcar fleet of approximately 2,200 railcars with an aggregate capacity of approximately 66.3 mmg as of Sept. 30, 2015, which are dedicated to transporting products, including ethanol and other fuels, under commercial agreements with Green Plains Inc. from the partnership’s fuel terminal facilities or third-party production facilities to refineries throughout the United States and international export terminals. In addition, the partnership uses a fleet of tanker trucks to provide fuel transportation services.

The partnership received net proceeds of $157.4 million from the sale of the common units, after deducting underwriting discounts of $10.3 million, structuring fees of $0.9 million and other IPO expenses of approximately $3.9 million. Net proceeds were used to make a distribution of $155.3 million to Green Plains, in part, as reimbursement for capital expenditures incurred and to pay $0.9 million in origination fees under the partnership’s new revolving credit facility. The remaining $1.2 million was retained for general partnership purposes.




Iowa Farm Bureau to feature inspirational speaker, Aaron Thomas, as keynote for 97th Annual Meeting

Members of the Iowa’s largest grassroots farm organization will gather to celebrate the many ways Iowa agriculture is ‘growing for the greater good’ during the 97th annual meeting of the Iowa Farm Bureau Federation (IFBF), Dec. 1 and 2 at the Community Choice Credit Union Convention Center in Des Moines.   

To mark the occasion, Governor Terry Branstad has declared Nov. 30- Dec. 6 as ‘Iowa Farm Bureau Week’ to honor the many accomplishments and contributions of the 97-year-old grassroots farm organization, more than 159,000 members strong.

“Our annual meeting theme, ‘Growing for the Greater Good,’ highlights the sustainability, innovation and growth of Iowa agriculture and celebrates the dedication, accomplishments, and potential of our diverse farm families who help move our state forward,” says IFBF President Craig Hill.  “Today’s responsible farmers are always looking for ways to improve what we grow and how we grow it, while being exemplary caretakers of the land.  We are excited to showcase some of Iowa’s best and brightest farm families during award presentations, and we are bringing a group of high-caliber experts to lead educational breakout sessions.  We are also looking forward to having acclaimed inspirational speaker, Aaron Thomas, deliver the keynote address to members.”

Thomas will share his message of overcoming adversity and turning his family’s tragedy into an opportunity to help others.  Thomas is the son of the late Aplington-Parkersburg coach, Ed Thomas, who inspired countless student-athletes and community members before and even after his murder, at the hands of a troubled, former student athlete.   Thomas not only took over the role of coach after his father’s death, he also serves as a community leader, role model and inspirational speaker.

In addition to innovative and thought-provoking speakers, the 97th IFBF annual meeting will also feature nine different ‘hands-on’ educational seminars to help Farm Bureau members navigate important issues like conservation and water quality, rural transportation, busting food production myths with real science, and new technology and innovation in agriculture.

Iowa’s next generation of farm leaders will also take the stage for the IFBF Young Farmer Discussion Meet Dec. 2, competing for the state title, a John Deere X320 riding lawn mower, and the chance to advance to the national competition during the American Farm Bureau Federation (AFBF) Annual Convention, January 8-13, in Orlando, Florida.

This year’s entertainment includes an evening reception December 1 and features the Dueling Pianos of local musicians Tony Bohnenkamp and Whitney Maxwell.  Bohnenkamp is also a member of the popular Iowa band, The Nadas.  The nationally-recognized YouTube sensation and TV personality, ‘Iowa Nice Guy’ and IFBF’s ‘Farmer Nice Guy’, Scott Siepker, will serve as emcee for the evening.

Members can register for the 2015 IFBF annual meeting at their county Farm Bureau offices.



Iowa Soybean Association releases how-to guide for on-farm research

Tips, insights and processes to inform farmers’ decision making  fill the Guide to On-Farm Replicated Strip Trials published by the Iowa Soybean Association (ISA) On-Farm Network®.

The comprehensive manual provides farmers, agronomists, researchers and consultants details about how to set up trials and collect, summarize and analyze data.

“The guide captures the experiences gained from conducting trials over the last 15 years,” said Pat Reeg, On-Farm Network director. “We’ve continuously improved our methodologies and share these along with science-based practices and ‘watch-outs’ so that more farmers can easily implement trials on their farm — with or without the On-Farm Network — and realize the full potential of each field.” 

Replicated strip trials allow farmers first-hand experience evaluating products and practices on limited acres. While technological advancements have made it easier than ever to collect valuable data, knowing how to properly use it remains key to benefiting from that data.

“Farmers may be more open to try new things when commodity prices are high,” said Reeg. “But now, with tightening margins, it is even more important to test and determine the profitability of products and practices.”

Setting up an on-farm trial can be simple and easy for farmers whether utilizing the guide or working with local agronomists, consultants or their regional On-Farm Network field research specialist. Farmers use their own planter, applicators, tillage implements or sprayers to establish the trials. Then in the fall use combines equipped with on-board GPS and yield monitors to collect spatial data. This work can be done utilizing the guide or working with local agronomists

“It is a very simple process from a farmer standpoint,” said Rolland Schnell, farmer from Newton and ISA president-elect. “I’ve being working with the On-Farm Network for several years, and have made many production decisions based on my data and the analysis of data available through ISA. The guide to on-farm research is a great tool for farmers just starting to consider research as well as those who have been doing it a while.”

Schnell says a major benefit to working with the team is the assistance and availability of results from on-farm research across multiple sites and years.

Having access to this type of data, he adds, can help improve understanding of how current management practices, products, weather and soil variability affect yield and profitability.

The On-Farm Network team also aggregates information to influence management decisions. Data is then available to participating farmers and the public anonymously online.

The Guide to On-Farm Replicated Strip Trials is available  www.isafarmnet.com. The print version will be offered at the ISU Extension Crop Advantage meetings in January and provided to attendees of the annual ISA Research Conference to be held Feb. 16-17 in Des Moines.



Fischer Votes for Bill to Stop WOTUS

U.S. Senator Deb Fischer (R-Neb.), a member of the Senate Environment and Public Works Committee, released the following statement this afternoon after voting for S. 1140 – The Federal Water Quality Protection Act, which she cosponsored:

“Today, I voted to stop the federal government’s attack on Nebraska families, taxpayers, job creators, ag producers, and communities.

“The Federal Water Quality Protection Act would require the government to do its homework and work with states and local stakeholders before imposing such a rule – something that should have happened in the first place.

“I will continue to hold the administration accountable and ensure the citizens of Nebraska, not bureaucrats in Washington, remain in control of our water resources.”

This afternoon, the U.S. Senate voted on The Federal Water Quality Protection Act, which would direct the administration to withdraw the rule and issue a revised proposal. The bill would set clear limits on federal regulation of water, require consultation with states and impacted stakeholders, and ensure that a thorough economic analysis is conducted. It failed to pass the necessary 60-vote threshold to advance by a margin of 57-41.

Fischer is also an original cosponsor of S. 1178 – The Defending Rivers from Overreaching Policies Act. This bill targets the flawed science used by the EPA to expand the definition of water.

The WOTUS rule has been marked with strong, bipartisan opposition since it was first announced last year. On August 27, 2015, hours before the rule went live, a temporary injunction was issued by U.S. District Court Judge Ralph Erickson of North Dakota. Nebraska was one of 13 states exempted from the rule. Last month, on October 9, the U.S. Court of Appeals for the Sixth Circuit ruled against WOTUS. This ruling immediately blocked the implementation of WOTUS nationwide.



NCBA and PLC Urge Senate Support for Federal Water Quality Protection Act
 
Today the National Cattlemen’s Beef Association and Public Lands Council sent a letter urging the Senate to vote for S. 1140, the Federal Water Quality Protection Act. This bipartisan legislation would direct the EPA and Army Corps of Engineers to withdraw the current “waters of the United States” rule and immediately work with all stakeholders to draft a rule that would bring clarity to the Clean Water Act without usurping state and private water rights. NCBA President and Chugwater, Wyo., cattleman Philip Ellis said this legislation is the best option for ensuring the rights of producers are recognized.

“The WOTUS rule is the most burdensome and far reaching piece of regulation we have ever seen, touching almost every producer and leaving a path of regulatory uncertainty,” said Ellis. “While cattlemen and women continue in litigation with the agencies over this regulation, the Senate has the opportunity to step in and withdraw this disastrous rule. Action by the Senate now will save cattle producers and states millions of dollars in legal fees and years in litigation.”

Currently, the United States Court of Appeals for the Sixth Circuit has temporarily stayed implementation of the WOTUS rule across the country until they can determine jurisdiction. In granting the stay, the Court found that the WOTUS rule may violate established law on the extent of the Clean Water Act. Moreover, the Court cited the flawed rulemaking process used by the EPA and the arbitrary nature of the limits set in the rule.

“The preliminary court rulings in this case show that cattle producers are likely to succeed in their case and point to EPA’s failed rulemaking process,” said Ellis. “With the doubt cast by the Court, added to the concerns expressed by the Army Corps over this rule, it is clear that a failed rule resulted from a failed process. The House acted in a bi-partisan way to withdraw this rule, and it is time for the Senate to do the same.”

NCBA and PLC support the Federal Water Quality Protection Act and will continue to pursue legislation and litigation to withdraw the WOTUS rule.



Farmer Co-ops Urge Support for Senate "Waters of the U.S." Bill

The National Council of Farmer Cooperatives (NCFC) today urged the Senate to proceed to debate on S. 1140, the Federal Water Quality Protection Act of 2015. The bill would instruct the Environmental Protection Agency (EPA) and the U.S. Army Corps of Engineers to put forth a new rule based on set criteria about what constitutes a “water of the United States” (WOTUS) under the Clean Water Act.

“The recent redefinition of what constitutes a WOTUS goes far beyond what Congress intended in passing the Clean Water Act and expands EPA regulatory jurisdiction in an unprecedented way. The fact that the Sixth Circuit Court has enjoined enforcement of the rules shows that there are major problems with what EPA and the Corps produced and that Congress should provide additional direction to the agencies to fix it,” said Chuck Conner, president and CEO of NCFC. “A debate on S. 1140 would be an important step in that direction, and so we urge senators to vote ‘yes’ on the motion to proceed later today.”



Informa Boosts US Estimates

Private analytical firm Informa Economics sees U.S. corn and soybean crops increasing slightly from USDA’s last forecast.

It estimated the national average corn yield at 170.1 bushels per acre, up 2.1 bpa from last month. Production was pegged at 13.72 billion bushels. Informa increased its estimated yields in Illinois and Iowa by 5 bpa and Indiana, Minnesota, the Dakotas and Arkansas by 2 bpa.

The soybean crop, estimated at 3.95 bb, is 64 million bushels higher than USDA’s October forecast. Informa’s national average yield estimate increased 0.8 bpa from last month to a record 47.9 bpa. Yield estimates increased in more than a dozen states.

Informa also released its estimates of world crop production as market focus increasingly shifts to planting in Brazil and Argentina. It’s still early for these estimates to be entirely accurate, Hultman said, adding that they should be watched through the lens of changes in the weather as planting continues.

Forecasts for Brazilian corn and soybean production both increased in Informa’s latest report. Soybean production is now forecast at 101 million metric tons, 1 mmt higher than last month, based on Informa’s planting survey that indicated a 5% increase in planted acres.

Informa projects that Brazil’s corn production will total 81.8 mmt, which is 700,000 metric tons above last month. Farmers are expected to harvest 27.8 mmt of main season corn and 54 mmt of winter corn.

Argentina producers are expected to increase soybean production at the expense of corn harvest. Informa’s estimate for soybean production increased 3 mmt from last month to 59 mmt, and is based on a recent planting survey. Argentina’s corn production is forecast at 18.5 mmt, down 1.5 mmt from Informa’s report last month.



Fertilizer Prices Level Slightly in Past Week

Retail prices of most fertilizers followed no particular trend in the past week, with some falling, some increasing and some remaining unchanged, according to dealers tracked by DTN for the fourth week of October 2015.

The bottom line is that compared to a month ago, all fertilizers trended lower but none have budged more than 4%.

DAP averaged $546/ton, MAP $562/ton, potash $431/ton, urea $409/ton, 10-34-0 $583/ton, anhydrous $638/ton, UAN28 $292/ton and UAN32 $234/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.44/lb.N, anhydrous $0.39/lb.N, UAN28 $0.52/lb.N and UAN32 $0.52/lb.N.

All retail fertilizer prices except 10-34-0 are lower now compared to a year earlier.

Urea has seen the most dramatic fall with prices now 19% lower than last year. Prices of UAN28 and UAN32 are both 11% lower than last year, while potash comes in at 10% lower.

Anhydrous prices are 9% lower than last year, while DAP and MAP come in at a 6% decline respectively. Starter fertilizer, 10-34-0, runs 5% above year ago levels.



Alternatives to Corn Ethanol Would Cut Carbon Emissions

Compared to dirty corn ethanol, biofuels from next-generation feedstocks could greatly reduce carbon emissions that contribute to climate change, according to a new report by EWG and University of California experts.

EWG measured the carbon emitted over the life cycle of ethanol made from switchgrass and from corn stover, the stalks and leaves left on fields after harvest. EWG’s analysis found that the life-cycle carbon intensity of corn stover ethanol is 96 percent lower than gasoline and that of switchgrass ethanol is 47 percent lower than gasoline.

By contrast, EPA studies show that the life-cycle carbon intensity of conventional corn ethanol is greater than gasoline. Yet current federal policy – the Renewable Fuel Standard, or RFS, established in 2005 – strongly favors the production of corn ethanol at the expense of cleaner alternatives.

“When the Renewable Fuel Standard was established, corn ethanol was touted as being cleaner than gasoline, but 10 years later we know it’s just the opposite,” said EWG Research Analyst Emily Cassidy, author of the report. “It’s time to break up the corn ethanol monopoly to make room for next-generation biofuels that could reduce carbon emissions.”

The RFS mandates that by 2022 refiners must blend 36 billion gallons of biofuel into gasoline each year. This has driven the conversion of millions of acres of grasslands and wetlands to grow corn for making ethanol.

But converting grasslands and wetlands into corn fields releases the carbon stored in the soil. Growing corn also requires fertilizers that emit nitrous oxide, another powerful greenhouse gas. As a result, the boom in corn ethanol has contributed to more climate-warming emissions than if there were no mandate, and will do so for at least another 20 years.

The report concludes that Congress should reform the RFS to eliminate the mandate for adding increasing amounts of corn ethanol to gasoline, and to accelerate development of biofuels from lower-carbon feedstocks. If Congress fails to act, EPA should employ the reset provisions of the RFS to gradually reduce the mandate for corn ethanol and encourage development of cleaner second-generation fuels.



House Science Committee Subcommittees on Oversight and Environment Fail to Acknowledge Success of RFS

This morning, the House Science Committee held a hearing on the 10th anniversary of the Renewable Fuel Standard (RFS). The Science Committee has a history of misrepresenting biofuels, relying on misinformation and outright lies to cast a negative light on an American success story. In response to today’s hearing, Tom Buis, co-chair of Growth Energy, issued the following statement:

“Today’s hearing was nothing more than a coordinated attack against biofuels. Minus a few open-minded individuals who examined this issue based on facts, not pre-determined bias, this hearing did nothing to reflect the overwhelming contributions of the RFS.

“The RFS has been a resounding success since its passage a decade ago. It is important that we recognize how much this policy has done to help improve the lives of all Americans. This bipartisan law was passed in Congress in 2005 and strengthened in 2007 with several policy goals: improved energy security, job creation and reduced greenhouse gas emissions. Ten years later, any objective analysis will prove this policy has done exactly what it was designed to do.

“With regards to the environmental benefits of ethanol, the facts are clear. According to Argonne National Laboratory, – an objective national laboratory – ethanol reduces greenhouse gas (GHG) emissions by an average of 34 percent compared to gasoline, even when the highly controversial and disputed theory on Indirect Land Use Change (ILUC) is factored into the modeling. Furthermore, Argonne has found that without ILUC included, ethanol reduces GHG emissions by 57 percent compared to gasoline.

“It is unfortunate that the Science Committee missed an opportunity to provide an unbiased examination of the RFS.  Instead, the Committee – which has no jurisdiction over this policy – continued to present a misguided agenda to smear biofuels, hosting several witnesses that fabricated information on the impact biofuels have on food prices, the environment and the American economy. This treatment of homegrown American fuels is insulting to the hardworking Americans across our country who are helping fuel our energy independence.

“Since the enactment of the RFS, biofuels have helped reduced our dependence on foreign oil by more than half — from 60 percent to 27 percent. We have created nearly 400,000 jobs that cannot be outsourced and our industry is helping mitigate climate change by reducing harmful greenhouse gas emissions. Additionally, the RFS is the only meaningful policy that has helped loosen the near monopoly Big Oil has on the motor fuel marketplace, as well as provide market access to higher blends of renewable fuels, giving consumers a choice at the pump.

“The RFS is working. It is doing exactly what it was intended to do. This success should renew Congress and EPA’s faith in this program. They must ensure that we continue down a path of renewable fuel innovation by continuing to support the RFS and refuse to accept the status quo of foreign oil and fossil fuels as our transportation energy future.”



USDA Dairy Products September 2015 Production Highlights

Total cheese output (excluding cottage cheese) was 956 million pounds, 2.4 percent above September 2014 but 2.3 percent below August 2015. Italian type cheese production totaled 403 million pounds, 0.4 percent above September 2014 but 1.6 percent below August 2015. American type cheese production totaled 376 million pounds, 2.8 percent above September 2014 but 3.8 percent below August 2015.

Butter production was 134 million pounds, 0.9 percent above September 2014 and 4.3 percent above August 2015.

Dry milk powders (comparisons with September 2014)
Nonfat dry milk, human - 121 million pounds, up 7.3 percent.
Skim milk powders - 26.8 million pounds, down 34.4 percent.

Whey products (comparisons with September 2014)
Dry whey, total - 78.4 million pounds, up 12.5 percent.
Lactose, human and animal - 86.5 million pounds, down 5.3 percent.
Whey protein concentrate, total - 37.4 million pounds, down 9.4 percent.

Frozen products (comparisons with September 2014)
Ice cream, regular (hard) - 64.4 million gallons, up 2.9 percent.
Ice cream, lowfat (total) - 34.3 million gallons, up 2.0 percent.
Sherbet (hard) - 3.48 million gallons, down 1 percent.
Frozen yogurt (total) - 4.93 million gallons, down 3.8 percent.



ADM's Profit, Revenue Slide

Archer Daniels Midland Co. reported steeper-than-expected drops in revenue and profit in its third quarter, as the grain trader and processor was hurt by weak ethanol margins and lower North American export volumes.

Shares fell 2.8% in premarket trading.

ADM, among the world's largest agribusinesses and a major ethanol producer, has been buffeted recently by lower ethanol-production margins and sluggish overseas demand for North American crops.

The Chicago company has also faced weakness in its grain-trading business as a strong U.S. dollar and large crops in South America crimped export demand for North American grain.

In the third quarter, revenue in ADM's corn-processing business fell 17% to $2.52 billion.

Revenue in ADM's agricultural-services segment fell 6.2% to $6.6 billion.

ADM's oilseed-processing business posted a 12% drop in revenue to $6.75 billion.

The wild flavors and specialty ingredients segment was a bright spot, as revenue more than doubled to $588 million in the quarter.

Overall, the company posted earnings of $252 million, or 41 cents a share, down from $747 million, or $1.14 a share, a year earlier.

The quarter included $65 million in impairment, exit and restructuring costs.

Excluding those charges and other special items, per-share earnings fell to 60 cents a share from 86 cents a year earlier.

Revenue slid 8.6% to $16.57 billion.



JBS Concludes Purchase of Cargill Pork Unit

Brazilian meatpacker JBS SA has concluded its $1.45 billion acquisition of Cargill Inc's U.S. pork assets without any restrictions from regulators, making it one of the largest meat companies in the United States. According to Reuters, the deal closed on the earlier end of the forecast JBS gave in early July, when officials said they expected antitrust approval of the pork assets to clear within four to seven months. In August, JBS raised $1.2 billion in the syndicated loan market to help fund the acquisition.

The U.S. Justice Department on Friday declined to comment on the deal. JBS USA, a wholly owned subsidiary of JBS SA, did not return requests for comment.

The deal includes Cargill's two meat processing plants in Iowa and Illinois, as well as five feed mills in Missouri, Arkansas, Iowa and Texas and four hog farms in Arkansas, Oklahoma and Texas.

The transition was already under way at the two plants in Beardstown, Illinois, and Ottumwa, Iowa.

While pork products were still shipping out of the plants to customers on Friday, both were shuttered for slaughtering hogs, Cargill spokesman Michael Martin said.

JBS USA is a leading processor of beef, pork and lamb, as well as a majority shareholder in chicken processor Pilgrim's Pride Corp.

By adding Cargill's hog slaughter capacity, JBS USA becomes the second-largest pork packer in the country - just behind Smithfield Foods Inc, a wholly owned subsidiary of China-based pork processor WH Group Ltd.



NFU Calls Yet Another Approval of Massive Meat Industry Acquisition

The Department of Justice (DOJ) has announced its approval of the purchase by JBS SA of Cargill Inc.'s pork unit.  National Farmers Union President Roger Johnson made this statement:

“Despite the fact that American agriculture is already highly concentrated, the DOJ has once again approved a major acquisition by one meat industry behemoth of another. The continued string of acquisitions and mergers that we’ve seen over the last few years creates a marketplace that is controlled by just a handful of companies, placing family farmers and ranchers at a significant disadvantage. For America’s family farmers and ranchers, this is nothing short of ‘death by a thousand cuts.’ 

“In fact, with the approval of this deal, more than seventy percent of the pork processing ability in the United States is controlled by just four companies. This increased concentration further reduces marketing opportunities for family farmers and could directly impact pork prices for consumers. Brazilian meatpacker JBS is now the second-largest pork packer in the country, with Chinese-owned Smithfield Foods remaining the largest.

“What is additionally troubling is that the DOJ has not asked for a single restriction on this deal.  While they have argued that family farmers are free to comment if they have any concerns, the unfortunate fact is that most producers are afraid to speak out, fearing retribution by the handful of meatpackers who run the show.

“It’s time for the Department of Justice to wake up and realize that simply rubber stamping every merger and acquisition request that comes before it is directly undermining our nation’s already vulnerable family farmers and small producers.”



John Deere and The Climate Corporation Expand Precision and Digital Agriculture Options for Farmers

Deere & Company (NYSE: DE) and The Climate Corporation, a subsidiary of Monsanto Company (NYSE: MON), have signed definitive agreements for Deere to acquire the Precision Planting LLC equipment business and to enable exclusive near real-time data connectivity between certain John Deere farm equipment and the Climate FieldViewTM platform. The agreements represent the industry’s first and only near real-time in-cab wireless connection to John Deere equipment by a third party.

“To maximize the value of digital agriculture, farmers need solutions for simple and seamless collection of in-field agronomic data,” said Mike Stern, president and chief operating officer for The Climate Corporation. “As a result of these milestone agreements, farmers will experience the fastest, most frequent and highest resolution third-party connectivity between John Deere’s equipment and the Climate FieldView platform.”

John May, president, agricultural solutions and chief information officer at Deere, said, “The agreements we are announcing allow John Deere to extend the range of retrofit options available from Precision Planting to many more products and into new geographies.

John Deere strengthens its position as the most open platform in the industry both in our equipment and the cloud-based data management solution known as the John Deere Operations Center.”

Under the terms of the agreements, Deere will purchase Precision Planting while Climate will retain the digital agriculture portfolio that has been integrated into the Climate FieldView platform. The acquisition is subject to customary closing conditions, including the approval of the relevant antitrust authorities to the extent required.

Stern said, “Our agreements enable farmers to combine the industry-leading technology of John Deere equipment with Climate FieldView, the platform that offers farmers the broadest equipment connectivity in the industry backed by data science. This connectivity allows farmers to collect and directly share data to the Climate cloud, enables data visualization in the cab and supports the development of customized data science-driven insights.”

“This strategic acquisition expands the John Deere precision agriculture business and accelerates our momentum as a market leader,” May said. “Strategic use of information is an important factor in successful agriculture. Today’s actions demonstrate John Deere’s ongoing investments to enhance the product and service solutions we offer our customers.”

The companies said customers will have the option to share their current and historical agronomic data between the John Deere Operations Center and the Climate FieldView platform and seamlessly execute agronomic prescriptions with John Deere equipment.