Tuesday December 29 Ag News

U.S. Corn Crop Quality Confirmed in USGC Report

The overall quality of the United States' 2015 corn crop was good, with 94 percent of corn samples samples rated at quality grade No. 2 or better in the U.S. Grains Council's newly-released  2015/2016 Corn Harvest Quality Report. USGC, of which the National Corn Growers Association is a founding member, works collaboratively with NCGA to build demand for U.S. corn.

"This is the fifth year of releasing our corn quality reports," said USGC Chairman Alan Tiemann of Nebraska. "Our objective in compiling and publishing this unique information is to arm our customers with the data they need to make good purchasing decisions - and take advantage of the excellent U.S. crops now available to them."

According to the corn quality report, the 2015 U.S. crop is entering marketing channels with the following key characteristics:
-    Average test weight within the range for No. 1 grade corn, indicating good kernel filling and maturation.
-    Low levels of broken corn and foreign material, with 98 percent within the range for No. 2 grade corn, indicating little cleaning will be required.
-    Low levels of total damage, with 96.1 percent within the range for U.S. No. 2 grade.
-    No observed heat damage.
-    Average elevator moisture of 15.7 percent, which will decrease the potential for stress cracking.
-    100 percent of the corn samples tested below the U.S. Food and Drug Administration action level for mycotoxins.

Our customers look forward to this information on an annual basis, and we are pleased to be able to offer it to them in a way that benefits their businesses," Tiemann said. "We've had a lot of success with building relationships with overseas buyers and end-users by presenting the findings of the corn quality reports."

The corn report is based on 620 yellow commodity corn samples taken from defined areas within 12 of the top corn-producing and exporting states, including Indiana, Illinois, Iowa, Kansas, Kentucky, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota and Wisconsin. Inbound samples were collected from local grain elevators to observe quality at the point of origin and to provide representative information about the variability of quality characteristics across geographic regions.

The corn samples were tested at the Illinois Crop Improvement Association's Identity Preserved Grain Laboratory in Champaign, Illinois, in accordance with the U.S. Department of Agriculture's Federal Grain Inspection Service's Grain Inspection Handbook. This follows the methodology that was developed for USGC's 2011/2012 Corn Harvest Quality Report and that has been used in each subsequent year's follow-up study.



Nebraska Farmers Union Says Platte Institute Report on Public Power is a Non-Solution to a Non-Problem

Nebraska Farmers Union (NeFU) was not impressed with the quality of the research or the conclusions contained in the Platte Institute’s report on Nebraska’s unique Public Power system.

NeFU President John Hansen said “The last time the ideologically driven Platte Institute came out with a plan to supposedly help rural Nebraska they supported LB405 that repealed all individual and corporate income taxes and made up the lost revenue by adding new regressive sales taxes for health care users, energy users, and production agriculture while increasing property taxes.   Where was their concern about higher energy costs when they publicly supported LB405 that dramatically increased energy costs?”  

Hansen pointed out that Nebraska’s unique public power system provides affordable and reliable electrical service to agricultural, residential, and industrial users.  He said “The idea that costs will go down and the overall quality of service to rural Nebraska will be somehow improved by for profit companies is ridiculous.  The reality is that for profit companies are not interested in incurring the operating costs of transmission and service to rural Nebraska when there are only 2.6 customers per mile for the system.  They forget that before public power was authorized, rural Nebraska was in the dark.”

“In the case of electrical service for irrigation, farmers understand that there are infrastructure costs to rural utilities for gearing up for an irrigated load that often comes at peak use times, is seasonal at best, and when it rains, is not needed at all.  We understand our public power service providers have to recover those systems costs in the rates for the power we do use.  Rural utilities do an excellent job of keeping the costs down by encouraging scheduling for irrigation at night when the loads are less and there is less water lost to evaporation.  It is a good team effort that works to everyone’s advantage,” Hansen said.   

Hansen concluded “Public power provides Nebraskans with the important ability to own and control our own destiny by electing the boards of directors that private sector profit driven companies cannot provide. We own and control it.  If we perceive a problem, we can vote for someone different to represent us on the Board of Directors.  In our state, when our electrical costs go up, we know it is because the cost of providing services went up, not because of price gouging and profit taking.” 



IOWA LIFTS BAN ON POULTRY EXHIBITIONS

The Iowa Department of Agriculture and Land Stewardship today announced that the order cancelling all live bird exhibitions at county fairs, the Iowa State Fair, livestock auction markets, swap meets, exotic sales and other gatherings of birds due to avian influenza will be lifted on January 1, 2016.

“This is very good news and another sign that we continue to recover from this devastating animal health emergency.  We know the ban on exhibitions caused some real challenges for those anticipating showing or selling birds, but we appreciate everyone cooperating as we worked to stop the disease and then allow the industry to recover,” said Bill Northey, Iowa Secretary of Agriculture.

The Department issued the order prohibiting poultry exhibitions on May 21 in the midst of the outbreak of highly pathogenic avian influenza (HPAI). The ban was put into place to minimize spread of HPAI and protect the state’s domestic bird population. Lifting the poultry exhibition ban comes as a result of no new cases of HPAI in Iowa since June and the lifting of the final quarantine on December 1.  Iowa is now considered free of HPAI.

Total of 77 premises and 31.5 million birds were affected with the disease in Iowa. There are 35 commercial turkey flocks, 22 commercial egg production flocks, 13 pullet flocks, 1 chicken breeding flock, 1 mail order hatchery, and 5 backyard flocks.

More information about the avian influenza situation in Iowa can be found at www.iowaagriculture.gov/avianinfluenza.asp.



Iowa Farmers Gain Insight into New Year at local Crop Fairs

Iowa Corn will begin the New Year by offering a series of crop fairs hosted at local venues around the state. These crop fairs feature an array of speakers on topics that will help farmers navigate the progressive agriculture industry and allow learning opportunities to directly interact with local and state experts.

One of the first crop fairs of the season will be held in Burlington, Iowa on January 8, 2016 at the Comfort Inn Suites. Registration will open at 8:30 a.m. and the program will begin at 9:00 a.m. with lunch provided. The program will conclude around 1 p.m. Attendees are also able to receive their continuing education credits with the Iowa Private Pesticide Applicator Course.

Featured speakers include:
-    Dr. Elwynn Taylor, ISU Extension Climatologist
-    Daren Mueller, ISU Extension Crop Plant Pathologist
-    Chad Hart, Associate Professor of Economics and ISU Extension Grain Market Specialist

“These crop fairs are a great way for growers to gain insight for the New Year on the latest ways to manage their operations. With the evolving agriculture industry it is imperative to stay up-to-date and we invite all of Iowa’s corn farmers to come and attend a crop fair across the state, “said Iowa Corn District Field Manager Alyssa Preston.

Pre-registration is encouraged. Please contact Pamela Moore, Merschman Seeds at pamm@merschmanseeds.com or 319-837-6111.  More information is available at www.iowacorn.org. 

Other crop fairs on the schedule include....
  - Jan. 18, 2016 - Tama Crop Fair
  - Jan. 21, 2016 - Rock Rapids Crop Fair
  - Jan. 26, 2016 - Ames Crop Fair
  - Jan. 26, 2016 - Iowa City Crop Fair
  - Jan. 27, 2016 - Sheldon Crop Fair
  - Jan. 27, 2016 - Fayette Crop Fair

Crop fair sponsors include Merschman Seeds, Inc., Iowa Corn Growers Association, Iowa Corn Promotion Board, Iowa Soybean Association, Iowa State Extension and Outreach, and University of Illinois Extension.



New exclusive savings on Cat® Construction Equipment will help Iowa Farm Bureau farmers install and maintain conservation measures on their farm

Iowa Farm Bureau Federation (IFBF) members can now save up to $2,000 on their purchases of Cat agricultural construction equipment, including machines used to construct and maintain soil conservation practices as well as machines to manage livestock feed or manure.

Eligible equipment includes Cat skid steer loaders, compact and multi-terrain loaders, wheel loaders, telehandlers, backhoe loaders, hydraulic excavators and track-type tractors.  A range of incentives from $250 - $2,000 are offered, depending on which equipment a farmer purchases.

“Caterpillar and agriculture have a shared history that goes back more than 100 years.  This new partnership will make it easier for our members to improve productivity and efficiency and that’s all a part of sustainability.  This program is especially well-timed, since skid steer loaders, backhoe loaders and hydraulic excavators can give farmers the opportunity to maintain conservation buffers, grassed waterways, filter strips and terraces on their farms, which slow down storm water as it falls on their fields.  Finding tools to help farmers continue their goals of improving conservation practices on their farm is something that has always been important to us and increasingly important in the future,” says IFBF President Craig Hill.

The Farm Bureau exclusive savings on Cat machines can be combined with any current retail discounts, promotions, rebates or offers through Caterpillar or its dealers.  Members must provide a valid IFBF member verification certificate to the Cat dealer at the time of purchase to get the discount.  Discounts can’t be applied to past purchases.  Certificates may be obtained at www.fbadvantage.com/cat.

For more information about this Cat benefit, or other savings available exclusively to IFBF members, call (866) 598-3693 or visit www.iowafarmbureau.com or your local Cat dealer. 



Mixed Outlook for 2016 Grain Prices

Corn prices could head higher in 2016 but the outlook for soybeans is less certain, according to a new analysis by Purdue University agricultural economist Chris Hurt.

Writing in the latest issue of the Purdue Agricultural Economics Report, Hurt forecasts a stronger market for corn after early-season flooding in 2015 damaged some Indiana crops.

"Corn prices are expected to increase in the winter and next spring by at least enough to cover on-farm storage costs," Hurt writes. "Eastern Corn Belt basis levels are expected to remain very strong, especially in Indiana where low yields were dominant in the northern two-thirds of the state."

According to Hurt's projections, cash prices for corn could reach the low-$4 range per bushel in coming months at processing plants and perhaps go as high as $4.40 per bushel in summer.

But soybean prices are likely to remain flat or even decline slightly if, as expected, there is a strong harvest in South America and farmers in the U.S. devote more acreage to soybeans next year. Hurt expects cash prices for soybeans to reach as high as $9.40 this winter at processing plants before falling back in spring and summer.

"Greater soybean acreage in 2016 may keep soybean prices depressed, maybe at levels that are not much different from the 2015 crop," Hurt writes. "Soybean prices are thus expected to stay well below total production costs."

Grain prices could also be held in check by a strong dollar, which makes American products more expensive overseas, he said.

"There are two ways the strong dollar is weakening U.S. grain prices," Hurt writes. "First, a strong dollar means that the currencies of our foreign buyers are weak and have reduced buying power for U.S. farm products. Secondly, the currencies of our export competitors are weak, and this makes their corn, soybeans and wheat more price competitive."



National Farmers Disappointed by Loss of Labeling Law

National Farmers Organization leaders are disappointed by President Obama’s signature on a Congressional federal spending bill that includes the repeal of COOL for cattle and hogs.

“We question whether or not the best interests of consumers are served with this decision,” said National Farmers President Paul Olson. “Food security is a rising concern of consumers, and they certainly deserve access to more information —not less — about where their food is being sourced.”

The move comes after language to repeal most significant components of COOL were contained as a rider in the 2016 Appropriations Act. The legislation was written after the World Trade Organization (WTO) ruling that the U.S. Country-of-Origin Labeling (COOL) law warrants $1.01 billion in retaliatory tariffs from Canada and Mexico.

A voluntary version of COOL had support from Democrats and Republicans, but the repeal dashes any hope for meaningful labeling legislation now.

The Country-of-Origin Labeling (COOL) law was passed in 2002, and reworded in 2008, calling for labeling that informs consumers about the country where the product was sourced. It covered muscle cuts of meat and some vegetables, nuts and fruits sold on a retail basis.

National Farmers is a conventional and organic marketing organization for the nation’s farmers and ranchers.



ADM to Build New Ethanol Hub in North Carolina

Archer Daniels Midland Company announced an agreement with Kinder Morgan, Inc. and Bailey Feed Mill to construct a new unit train rail facility and ethanol offloading system in Selma, North Carolina, U.S. KMI will invest in and construct the new facilities, which will be located at the Bailey Feed Mill and will have the ability to offload up to 96 railcar-long unit trains in a 24-hour period.

KMI will also build a new pipeline, approximately 2.6 miles in length, to connect the unit train offload system to their vast tank farm in Selma, allowing ethanol to be distributed to blending terminals in Selma and the surrounding markets, reports World-Grain.com.

"This project will help us improve the efficiency of our ethanol delivery in this market with added unload capacity, quick-turn time on railcars and a pipeline connection to tankage," said Craig Willis, president of ethanol for ADM. "And by working with KMI and Bailey Feed Mill on this project, we will achieve the benefits in a cost- and capital-efficient manner. ADM has been a long-time supplier in this market, and we are excited to work with KMI and Bailey Feed Mill to bring a more flexible, reliable and efficient solution to customers in the Selma area."

ADM and KMI anticipate having inter-terminal connections in service as early as the third quarter of 2016, with the remainder of the project expected to be complete by the end of 2016.

KMI is an energy infrastructure company in North America. It owns an interest in or operates approximately 84,000 miles of pipelines and 165 terminals.



ChemChina Looking to Buy Syngenta

The Chinese-based chemical company ChemChina says it has ambitions of buying Syngenta. ChemChina has currently increased its takeover offer for Syngenta AG, the biggest Swiss crop science company.

Bloomberg news reports that the company has offered about $472 a share for a 70 percent slice of Syngenta and the option to buy the remainder of the company at a later date, which is an increase of more than $20 a share from the roughly $450 a share ChemChina proposed earlier this year in an offer that was rejected.

Report says that the Chinese government wants to increase the slow growth of grains in China through the buyout effort as a way to develop the genetically modified organisms.

The merger of Syngenta would also help China deal with the shortfall of grain supply, which is increasingly important because China imports more grain from overseas.

It is estimated that China's grain demand will reach near 700 million tonnes with a shortfall of about 100 million tonnes in 2020.