Thursday January 21 Ag News

Nebraska Agriculture Groups, Business Leaders, Support Eliminating Ban on Packers Owning Hogs

Nebraska’s mainstream agriculture organizations representing Nebraska pork producers, as well as Nebraska business groups, support eliminating the ban on packer ownership of hogs in Nebraska. LB 176, which eliminates the ban, is up for debate before the Nebraska legislature. The groups support is founded in the fact that the ban actually hurts farm families looking for opportunities to engaging in hog production and has been a major contributor to declining hog numbers in Nebraska for decades.

“While on its face, the ban on packer ownership of hogs may seem like a good idea to protect Nebraska farm families. However, the reality is that it’s had the reverse effect and Nebraska farmers looking to diversify into hog production are missing out on opportunities that are being capitalized by farmers in other states,” said Al Juhnke, executive director of the Nebraska Pork Producers Association.

 From 1997 to 2007 Nebraska lost 63 percent of its hog numbers and experienced another 25 percent decline from 2007 to 2012. After ranking 6th nationally in hog numbers for several years, Nebraska now ranks 8th in production. Adding salt to the wound is that while Nebraska production numbers have declined, pork numbers in neighboring states have been on the rise. South Dakota grew its hog production numbers by 5 percent last year alone. Today, Iowa produces seven times the amount of hogs produced in Nebraska. The loss in hog numbers does not just hurt pork producers but hurts Nebraska mainstream businesses and economic opportunity.

“This law limits opportunities for Nebraska farm families and it’s slowly killing hog production in our state. If you cut beyond the anti-packer rhetoric and understand the challenges our pork producers face today, it’s clear why we need to change the law. Arguments that removing the ban will harm independent producers don’t hold up. Iowa doesn’t prevent pork processors from owning hogs and they still procure nearly one-half of their hogs from independent producers,” said Steve Nelson, president of Nebraska Farm Bureau.

The groups also cite the fact that current state law prohibits packers who own processing facilities in Nebraska from owning hogs. There is no prohibition preventing packers who own facilities in other states from owning hogs in Nebraska and participating in contract feeding agreements with Nebraska farmers.

“Not only does this law eliminate opportunities for farmers, it punishes companies in Nebraska who own facilities, employ Nebraskans, and pay Nebraska taxes. Nebraska is the last state in the United States to have the ban on packer ownership. We can no longer afford to be an island that leaves both our farmers and Nebraska companies at a competitive disadvantage,” said Barry Kennedy, president of the Nebraska Chamber of Commerce and Industry.

Nebraska agriculture organizations supporting LB 176 include the Nebraska Pork Producers Association, the Nebraska Farm Bureau, the Nebraska Corn Growers Association, the Nebraska Soybean Growers Association, the Nebraska Bankers Association and the Nebraska State Chamber of Commerce and Industry.



Mainstreet Index Lowest Since August 2009: Growing Regulatory Burdens Hurt Bank Outlook

The Creighton University Rural Mainstreet Index for January fell from December’s weak reading, according to the 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 34.8 from December’s 41.5. 

“This is the fifth straight month the overall index has declined, and the lowest reading since August 2009.   Recent declines are the result of lower agriculture and energy commodity prices and downturns in manufacturing. Over the last 12 months, prices for farm products have fallen by approximately 15 percent, and for fuels by roughly 20 percent," said Ernie Goss, Jack A. MacAllister Chair in Regional Economics at Creighton University's Heider College of Business.

“Sinking prices for grain and fuel have had moderate impacts on the region’s ethanol industry. Approximately one-fifth of the bank CEOs reported that ethanol plants in their area had reduced production, while seven of 10 bankers indicated that ethanol plants had made no changes to their production levels,” said Goss.

Farming and ranching: The farmland and ranchland price index for January sank to 23.9 from December’s 28.8. “This is the 26th 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.

The January farm equipment-sales index plummeted to a record low 7.0 from December’s record low 8.8.  “The strengthening U.S. dollar and global economic weakness have pushed grain prices down by 8 percent, and slaughter cattle prices 28 percent lower over the past 12 months.   These weaker prices have discouraged farmers from buying additional agriculture equipment, and have negatively affected the agriculture equipment dealers and manufacturers in the region,” said Goss.

Nebraska: The Nebraska RMI for January slumped to 35.0 from 36.3 in December. The state’s farmland-price index grew to 19.8 from December’s 12.3. Nebraska’s new-hiring index increased to 49.2 from 48.0 in December.

Iowa: The January RMI for Iowa sank to 38.2 from December’s 40.8. Iowa’s farmland-price index for January increased to 36.0 from 32.1 in December.  Iowa’s new-hiring index for January dipped slightly to 55.1 from 55.2 in December.

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.



 Green Plains Partners Announces Fourth Quarter 2015 Cash Distribution

Omaha-based Green Plains Partners LP (NASDAQ:GPP) today announced that the board of directors of its general partner declared a quarterly cash distribution of $0.4025 per unit on all of its outstanding common and subordinated units, or $1.61 per unit on an annualized basis, for the fourth quarter of 2015. This distribution represents a 0.25 cent increase over the partnership’s previous quarterly distribution of $0.40 per unit. The distribution is payable on Feb. 12, 2016, to unitholders of record at the close of business on Feb. 5, 2016.

This release serves as a qualified notice to nominees under Treasury Regulation Section 1.1446-4(b). Please note that 100 percent of Green Plains Partners’ distributions to foreign investors are attributable to income that is effectively connected with a U.S. trade or business. Accordingly, all of the partnership’s distributions to foreign investors are subject to U.S. federal income tax withholding at the highest effective tax rate.

Green Plains Partners LP (NASDAQ:GPP) is a fee-based Delaware limited partnership formed by 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.



2016 Iowa Pork Regional Conferences slated for Feb. 22-25

The Iowa Pork Producers Association has teamed up with the Iowa Pork Industry Center and Iowa State University Extension and Outreach swine specialists to host regional conferences Feb. 22-25.
All sessions are hosted from 1 p.m. to 4:30 p.m. Conference dates and locations are as follows:
    ● Monday, Feb. 22 - Sheldon, Northwest Iowa Community College, Building A
    ● Tuesday, Feb. 23 - Carroll, Carroll County Extension Office
    ● Wednesday, Feb. 24 - Nashua, Borlaug Learning Center
    ● Friday, Feb. 25 - Iowa City, Johnson County Extension Office

Conferences are free for those who pre-register or $5 at the door. Individuals can pre-register by calling IPPA at (800) 372-7675 or sending an e-mail to bnelson@iowapork.org.

"We strive to provide educational sessions that can provide a return on producer's Pork Checkoff investment," said Tyler Bettin, IPPA state public policy director. "This year's sessions should provide take home value for anyone involved in day-to-day pork production management."

This year's conferences will highlight the follow presentations:

Positioning Your Operation for Future Success
Mark Greenwood, senior vice president, AgStar Financial Services
Mark will take a closer look at current market situations, indicators and forecasts to give a sense of what 2016 may have in store for pork producers and how they can best position themselves to manage through potential challenges. He will share strategies and techniques to better position producers for the long haul and teach ways to take control of approaches best for individual situations.

Understanding Seneca Valley Virus
Dr. Chris Rademacher, Extension swine veterinarian, Iowa State University
Seneca Valley Virus has shown an increase in prevalence throughout the past year. Due to symptom resemblance to Foot and Mouth Disease, special precautions must be taken when suspecting it on the farm. Dr. Rademacher will share key information and action steps for proper diagnosis and management of the virus to minimize potential impacts on the farm and prevent issues at market points. This presentation will cover case reports in breeding and growing pigs to understand what to look for and what we have learned over the past year.

Practical PRRS Management Strategies
Dr. Daniel Linhares, assistant professor, Iowa State University
The PRRS virus continues to create challenges for pork producers across the country. New to the Iowa State University College of Veterinary Medicine, Dr. Linhares will share his experience and expertise while taking a closer look at PRRS 174 vs. other variants and discuss valuable strategies to minimize losses following a PRRS infection.

Applied Antibiotic Use Considerations
Iowa State University Extension swine specialists
Antibiotic use in livestock production continues to receive scrutiny from customers and the regulatory environment. ISU Extension and Outreach swine specialists will take a closer look at FDA Guidance #209 and #213 and the recent Veterinary Feed Directives (VFDs) rule, with particular attention to on-farm application and compliance.

ISU swine specialists also will offer free PQA Plus® training prior to each conference. Training will be hosted from 9:30 a.m. to noon at each conference location. Contact IPPA (800) 372-7675 or bnelson@iowapork.org for more information or to pre-register.



FFA Members Return from Educational, Cultural Experience in South Africa

During the past two weeks, 75 members visited South Africa for a 12-day educational and cultural experience.

Members participated in the 2016 International Leadership Seminar for State Officers, as an annual, international opportunity through the National FFA Organization for past and present state FFA officers. The experience allows FFA members to experience foreign culture, learn about international agriculture and become more knowledgeable of the global marketplace.

75 past and present state FFA officers representing 23 states left the U.S. on Jan. 4. The group traveled throughout five of the country's nine provinces while surveying the agricultural landscape. FFA officers met with government and U.S. Embassy officials to learn about U.S.- South African trade relations, toured crop and livestock operations, met with business and industry leaders and explored a private game reserve, which is home to lions, leopards, elephants, rhinos and buffalo. The group also met with fruit exporters and olive oil producers and much more.

“This seminar exposes students to culture and food production practices beyond what they are accustomed to in the United States,” said Shane Jacques, education specialist with the National FFA Organization. “Our hope is that through a structured experience like ILSSO, these students will see that study abroad opportunities or global internships and careers are not only attainable, but essential to providing a sustainable talent pipeline for agriculture and feeding the world.” Jacques added that, on average, nine out of ten students who participate in the program admit that they would be receptive to living and working abroad as a result of this experience.

Prior to departing the United States, the students completed ten weeks of online coursework related to cross-cultural adaptability. The program was made possible by corporate sponsors Bunge North America and John Deere.

Those students who participated in the trip were: Jordan Stowe of Enterprise, Ala.; Will Clark of Rogers, Ark.; Taylor Pearce of Okeechobee, Fla.; Anne Schwartz of Gainesville, Fla.; Stephen Singleton of San Mateo, Fla.; Matt Staples of Groveland, Fla.; Heather Yoder of Blountstown, Fla.; Amanda Anderson of Algona, Iowa; Erica Baier of Adel, Iowa; Hailey Burley of Lake City, Iowa; Mikayla Dolch of Villisca, Iowa; Hunter Hamilton of Lone Tree, Iowa; Brandon Hanson of Iowa Falls, Iowa; Kayla Kaalberg of Nichols, Iowa; Elisa Russ of New Hampton, Iowa; Connor Carmody of Hardin, Ill.; Kade Hill of Paxton, Ill.; Jordan Johns of Pontiac, Ill.; Kolton Kimpling of Streator, Ill.; Susie Thompson of Maple Park, Ill.; Lane Coberly of Manhattan, Kan.; Gabryelle Gilliam of Washington, Kan.; Dean Klahr of Holton, Kan.; Kyler Langvardt of Chapman, Kan.; Bailey Peterson of Buhler, Kan.; Karl Wilhelm of Manhatta, Kan.; Hannah Adkins of Laytonsville, Md.; Katelyn Allen of Jefferson, Md.; Ashley Fuss of Frederick, Md.; Elizabeth Knight of Frederick, Md.; Isabella Kukor-Laureano of Frederick, Md.; Anna Linthicum of Laytonsville, Md.; Dayna McCrum of Mars Hill, Maine; Connor Ewald of Elkton, Mich.; PJ Aarsvold of Altura, Mich.; Sam Johnson of Glenville, Minn.; Morgan Krause of Buffalo, Minn.; Maggie Larson of Aitkin, Minn.; Madison Taylor of Randolph, Minn.; Travis Troendle of Lanesboro, Minn.; Daniel Derrick of Cornith, Miss.; Jessica Everett of Decatur, Miss.; Brice Fortinberry of Leakesville, Miss.; Juwan Page of Lamar, Miss.; Karli Stringer of Sumarall, Miss.; Gage Hoegermeyer of Herman, Neb.; Katie Nolles of Basset, Neb.; David Schuler of Bridgeport, Neb.; Renae Sieck of Martell, Neb.; Nevada Smith of Ashland, Neb.; Trevor Spath of Eagle, Neb.; Jake Wilkins of Ainsworth, Neb.; Myranda Bond, of Stockton, N.J.; Mitchell Pinnell of Texico, N. M.; Maria Martinez of Flushing, N.Y.; Matthew Klopfenstein of Haviland, Ohio; Addie Howell of Jefferson, Ore.; Joe Matteo of Sutherlin, Ore.; Luis Mendoza of Molalla, Ore.; Ricky Molitor of Madras, Ore.; Bailey Myers of Nyssa, Ore.; Alyssa Smith of Elkton, Ore.; Jordanne Howe of Redfield, S.D.; Shane Mueller of Garretson, S.D.; Derek Anderson of Machester, Tenn.; Madison Benson of Reagan, Tenn.;  Chelsea Wattenbarger of Crossville, Tenn.; Bethany Gochenour of Lebanon Church, Va.; Emily Moyers of Covington, Va.; Cailin Orgen of Stephens City, Va.; Chandler Vaughan of Keysville, Va.; Hunter Wimmer of Bedford, Va.; Julia Spangler of Wenatchee, Wash.; and Kyle Webber of Powell, Wyo.

The National FFA Organization provides leadership, personal growth and career success training through agricultural education to 629,367 student members who belong to one of 7,757 local FFA chapters throughout the U.S., Puerto Rico and the Virgin Islands.



Iowa Corn Farmers Take Their Priorities Issues to the State Capitol

Corn growers from across Iowa descended on the Iowa State Capitol Wednesday for their first “Day on the Hill” lobbying event this session. The delegation of 40 included Iowa Corn Growers Association (ICGA) members, Board of Directors, county leaders and student FFA members.

“ICGA members’ relationships with their state legislators directly impact our ability to advance priority issues for Iowa’s corn industry,” said Iowa Corn Growers Association President Bob Hemesath, a farmer from Decorah. “The hard work and dedication of our members helps maintain ICGA’s political clout at the State Capitol.”

ICGA's “Day of the Hill” efforts focused on three of the organization’s top state legislative priorities for 2016, including:
 1.    Conservation: Protecting Iowa’s waterways
 ·    A voluntary watershed approach to nutrient management rather than a regulatory approach
 ·    2016 funding of the Iowa Nutrient Reduction Strategy
 ·    Data collection through IDALS to measure water quality improvements as long as the privacy and confidentiality of landowners and operators are protected

 2.    ETHANOL: Ensuring consumer choice at the pump
 ·    Extending/renewing income-tax credits for renewable fuel retailers (E15, E85, and increasing levels of biofuels)
 ·    Infrastructure cost-share for retail fuel stations up to E85
 ·    Tax credits for cellulosic ethanol production or other advanced biofuels

 3.    LIVESTOCK: Maintaining a sustainable livestock industry
 ·    Full $4 million funding for ISU Veterinary Diagnostic Laboratory
 ·    Supporting the existing laws regulating livestock operations
 ·    Increased funding for ISU experiment station, livestock related research regarding animal stress and odor management

“If you missed this Day on the Hill event, we encourage you to save the date for our next event on March 30, 2016,” said Iowa Corn Director of Government Relations Mindy Larsen Poldberg. “ICGA members will again be appearing at the Capitol to discuss the important issues affecting Iowa’s corn farmers.” Registration information will be released soon at http://www.iowacorn.org/dayonthehill.



Senate Committee Acts on NPDES Fix

This week the Senate Environment and Public Works Committee approved the NPDES "fix" bill as part of a package of Sportsmen’s bills. The NPDES bill addresses the duplicative regulation of the application of certain pesticides by both the Clean Water Act and the Federal Insecticide Fungicide and Rodenticide Act.  The legislation will now proceed to the full Senate for consideration.



Record High Pork Production for December

Commercial red meat production for the United States totaled 4.27 billion pounds in December, up 3 percent from the 4.14 billion pounds produced in December 2014.

Commercial Red Meat Production by State - Dec 2015
                          (million pounds, % of Dec '14)
Nebraska .......:               675.3            108      
Iowa ..............:               606.3            100      
Kansas ...........:               422.4            102      

Beef production, at 2.05 billion pounds, was 2 percent above the previous year. Cattle slaughter totaled 2.45 million head, up slightly from December 2014. The average live weight was up 25 pounds from the previous year, at 1,388 pounds.

Veal production totaled 7.8 million pounds, 2 percent above December a year ago. Calf slaughter totaled 45,200 head, up 5 percent from December 2014. The average live weight was down 8 pounds from last year, at 295 pounds.

Pork production totaled 2.21 billion pounds, up 4 percent from the previous year. Hog slaughter totaled 10.36 million head, up 5 percent from December 2014. The average live weight was down 1 pound from the previous year, at 285 pounds.

Lamb and mutton production, at 13.2 million pounds, was down 1 percent from December 2014. Sheep slaughter totaled 199,600 head, slightly above last year. The average live weight was 132 pounds, down 2 pounds from December a year ago.

January to December 2015 commercial red meat production was 48.4 billion pounds, up 2 percent from 2014. Accumulated beef production was down 2 percent from last year, veal was down 12 percent, pork was up 7 percent from last year, and lamb and mutton production was down 3 percent.



Agrible, Inc. Appointed to Interim Board Tackling Data Privacy and Security in Agriculture

Agrible, Inc. is pleased to announce its appointment to the interim board of a coalition to address the importance of big data privacy, security, and transparency for growers. This coalition of leading farm and commodity associations, growers and companies - startups and large corporations alike - will work to promote privacy and security principles for farm data. 

According to an American Farm Bureau Federation (AFBF) poll, over 80% of growers indicated that they do not know what happens to their data after they upload it to an Ag Technology Provider (ATP). In response to this concern, the coalition is developing the Transparency Evaluation tool: a reliable and easy-to-use resource enabling growers to make the most informed decisions possible on who they trust with their data.

The tool will be based on key questions that ATPs answer about what happens to a grower's data after it is uploaded. Answers will then be published to a searchable database with links to each ATP's data policy.

"Data security is incredibly important to the growers we work with and we whole-heartedly agree. It's one of the principles Agrible was founded on," said Chris Harbourt, CEO of Agrible. "Joining the interim board of this new coalition provides yet another way for us to honor our commitment to growers to be transparent about our data policies and to push the industry to do the same."

In addition to becoming an interim board member, Agrible will have a representative on the coalition's technical committee. Because Agrible's team of experts include both highly-skilled scientists and active growers, they bring the unique perspective of knowing what issues are important to the agricultural community and how best to address them.

"It's important for startups like Agrible, as well as bigger agricultural companies, to come together and agree on policies that are best for the grower," said Mary Kay Thatcher, American Farm Bureau Federation International & Agricultural Policy Senior Director. "We look forward to their contributions."

Agrible will continue providing high-quality data products through its Morning Farm Report platform with its 2016 Grower Bundle. The 2016 Grower Bundle adds alerts for increased disease and insect pressure, nutrient availability forecasts and alerts, hourly forecasts on wind speed and direction, soil conditions, temperature inversions, pollinator safety and more to the predictive analytics tools already provided in Morning Farm Report.

For more information about the coalition's principles, visit http://www.fb.org/issues/bigdata/privacysecurityprinciplesfarmdata.html.



Farm Futures' survey shows more corn, less soybeans for 2016

Low prices and poor profit margins should keep expansion plans by most growers under wraps for 2016, according to Farm Futures latest survey of planting intentions.

Results of the survey are released this morning on the opening day of the 10th annual Farm Futures Business Summit, a Penton Agriculture event. The two day event is located in St. Louis and hosts hundreds of farmers from across the country.
 
Modest acre increase reported
While Farm Futures found farmers ready to boost corn acreage this spring, the increase is modest at 89.5 million. That would be up 1.7% from 2015, which was reduced substantially by bad weather, but 1.1 million acres below levels achieved in 2014.

Growers told Farm Futures they plan to cut back on soybeans, intending to plant 82.2 million acres, down around 500,000 from 2015. While flooding also set back soybean seedings in 2015, economics may keep growers from taking another crack at soybeans with that ground.

“Neither corn nor soybeans is showing a profit based on current 2016 crop prices, but corn has better potential to break even this year,” says Bryce Knorr, Farm Futures senior grain market analyst. “Farmers are beginning to recognize this, even though corn will require more cash flow in a tight year to plant due to higher production costs.”

Those tight margins should keep farmers from boosting overall acreage much, says Knorr, who expects more land to go into forage crops or lay fallow unless markets improve.

One big question facing the markets is what will happen to winter wheat ground that wasn’t seeded last fall. On Jan. 12, USDA reported a 2.85 million acre drop in seedings. While growers in the Midwest boosted acreage, wet weather kept farmers in the South from putting in fields. Low prices appeared to discourage farmers on the Plains from sticking with wheat.

The Farm Futures survey suggests farmers on the Plains will favor corn over soybeans, if they have water available, either through rainfall or irrigation. But Plains farmers appear ready to hit the pause button on sorghum expansion, after rushing to plant that feed grain in 2015. Farm Futures estimates sorghum acreage could fall 2.5% to 8.25 million in 2016.

"Sorghum’s premium to corn soared to record levels in 2015 after China began buying,” says Knorr. “But increased production swamped demand, and sorghum is trading at a weaker than normal discount to corn in many areas on the Plains.”

Spring wheat seedings could see another year of modest expansion this spring. The Farm Futures survey puts acreage on the Plains up less than 100,000, to 13.3 million. With durum acreage also rising, that could leave total wheat acreage at 52 million, down almost 5% from 2015.

Farm Futures surveyed more than 1,550 growers from Dec. 7 to Jan. 4. Farmers from all over the country were invited by email to complete the survey online.



CoBank Report Predicts Easing Of U.S. Protein Glut in 2016

The supply glut that plagued U.S. beef, pork and poultry markets last year and ratcheted down margins is expected to ease in 2016, according to a new research report from CoBank. The bank, a major agribusiness lender, says leading indicators point to animal protein supplies moving toward a state of equilibrium, with protein stocks more in line with overall levels of demand.

Trevor Amen“It’s clear that in the coming year, the headwinds and adverse conditions created by excessive protein stocks are clearing,” said Trevor Amen, animal protein economist with CoBank. “Surprisingly strong U.S. consumer demand helped lay the groundwork for improving market conditions in the coming year, meaning the net trade balance is expected to shift toward growing exports and fewer imports. This is welcome news for U.S. beef, pork and poultry producers.”

On the Horizon
In the first half of 2016 protein exports are expected to remain somewhat of a challenge. “But conditions are predicted to improve over depressed 2015 levels due to a variety of economic factors,” added Amen.

Meanwhile, imports of lean beef should slow significantly and domestic consumer demand for beef, pork and poultry is anticipated to remain strong and supportive of prices. Supply imbalances have already begun the correction phase, with supply and demand expected to achieve equilibrium by about mid-year. The strength of consumer demand going forward will impact how much and how soon U.S. meat prices change.

For instance, meat demand in the restaurant sector continues to grow. The Restaurant Performance Index and the Expectation Index each indicate positive restaurant business conditions. Combined with lower gas prices, current consumer attitudes indicate a willingness to spend more at restaurants versus in-home meals during 2016.

Price outlooks are mixed:
-    Pork and chicken prices have an upside potential compared to last year’s low levels, based on adjustments made for future production.
-    Beef prices will likely remain under pressure for the next two years, however, as the industry is coming off cyclical highs of 2014.


Of course, optimism for 2016 should be tempered by the oversupply lessons of 2015.

“Total red meat and poultry production set an all-time high in 2015,” said Amen. “Combined with fewer exports and more imports, total domestic meat supplies surged by 4.4 percent, the highest year-over-year increase in 40 years.” That increase in supply translated to an additional 9 pounds of protein per person—historically, protein supplies rose an average of 0.8 pounds per person per year from 1960 to 2015.

As the market works through the recent protein oversupply hangover, the long-term outlook remains positive, especially with continued global middle class growth. “The increasing demand for a higher-quality diet likely provides domestic protein producers with significant opportunities in the next decade,” concludes Amen.



U.S. Corn Sales to Cuba Highlight New Market Potential

The U.S. Department of Agriculture (USDA) recently reported sales of 50,000 metric tons (1.9 million bushels) of U.S. corn to Cuba so far this marketing year, highlighting the potential of the Cuban market and the need for ongoing engagement by market developers like the U.S. Grains Council (USGC).

The United States has sold corn to Cuba each marketing year since the early 2000s, with market share varying from as high as 100 percent in the 2007/2008 marketing year to as low as 15 percent more recently. Overall, Cuba takes about 900,000 metric tons (35.4 million bushels) of corn each year, meaning that if U.S. farmers could capture all of it on a regular basis, the country would become the 12th largest importer of U.S. corn.

“The Council has been active in the Cuban market for many years, sending staff to assess possibilities and offer trade servicing,” said USGC Regional Director for the Western Hemisphere Marri Carrow. “But in 2014, when the Obama Administration announced it would seek to normalize trade relations with Cuba, the Council viewed if Cuba with a renewed energy and began to rethink and ramp up its programming efforts for the island nation.”

Despite this new energy for work in Cuba, the long-time U.S. embargo has limited the ability of Cubans to bring in U.S. dollars from tourism or exports. This and restrictions on how sales to Cuba can be financed have made increasing trade with the country very challenging.

“While the politics with financing and ending the embargo are beyond our control, we are closely monitoring these sales and hope to see them continue into the future," Carrow said.

In 2015, Council staff and members participated in multiple agriculture industry missions to Cuba and undertook market-focused assessment work. The USGC and National Corn Growers Association (NCGA) officer corps also traveled to Cuba last year to help rebuild relationships with government importers, who are critical to generating new demand for U.S. products.



IGC Revises Wheat Forecast Up

The International Grains Council on Thursday lifted its forecast for wheat production in 2015-16, with favorable growing conditions set to contribute to the largest global grain stockpiles in 29 years.

"[Owing] to abundant supplies, there will likely be a further accumulation of end-season stocks ... to a three-decade peak," IGC said in its bi-monthly market report.

London-based IGC said wheat production will amount to 731 million metric tons tons, having forecast 726 million tons in its previous forecast in November.

IGC trimmed its forecast for overall grain production by four million tons to just under two billion tons, reflecting the impact of drought on the corn harvest in South Africa and India.

The forecast for grains consumption came in eight million tons lower at around 1.98 billion tons--still the second highest figure on record--amid lower projected demand for animal feed.

Reflecting the reduced consumption forecast, IGC lifted its forecast for the size of grain stockpiles to be carried over into the next marketing year by one million tons to 455 million tons, the highest in 29 years.

Looking ahead to the 2016-17 marketing year, IGC said harvest prospects remain "mostly favorable."



Wisconsin Cow Sets New Milk Production Record

Another Holstein cow from Wisconsin has set an all-time record for milk production. The Holstein Association USA announced that 'Bur-Wall Buckeye Gigi,' a nine-year-old cow bred and owned by Bur-Wall Holsteins of Brooklyn, set a 365-day record of 74,650 pounds of milk, with 2,126 pounds of fat and 2,142 pounds of protein.

Gigi's production breaks the record previously set by 'Ever-Green-View My 1326-ET,' owned by Tom Kestell of Waldo. Back in 2010, that cow's 365-day record was 72,170 pounds of milk.

"Gigi represents what's great about the Holstein breed," said Holstein Association CEO John Meyer. "She is nine years old, she produced 74,650 pounds of high-quality milk in one year, and she excels in type, as she is classified EX-94. The national milk production record is a true credit to not only Gigi, but to the Behnke family's breeding and management expertise."

Sired by R-E-W Buckeye-ET, Gigi was classified VG-88 as a two-year-old. Then, as an eight-year-old, she gave 61,186 pounds of milk and led the state of Wisconsin and the country in milk production, fat, and protein for Mature cows.

Meanwhile, her dairy show resume is impressive too. She took third place and Best Udder in the 2011 Midwest Spring National Holstein Show; placed eighth as a Five-Year-Old Cow in the 2012 International Holstein Show at World Dairy Expo; and fifth as an Aged Cow in the 2013 Midwest Spring National Holstein Show. She was also the 2013 winner of Holstein Association USA's Star of the Breed award, when her 365-day production record was 52,190 pounds of milk.

Bur-Wall Holsteins is owned by Bob and Denise Behnke. Their operation has 50 Registered Holstein cows, with a rolling herd average of 32,377 pounds of milk, 3.9 percent fat, 1,256 pounds of fat, 3.2 percent protein and 1,029 pounds of protein. The herd has a Breed Age Average of 110.6.



Agriculture Deputy Secretary Harden on Plans to Depart USDA

Agriculture Deputy Secretary Krysta Harden today made the following statement on her plans to depart the U.S. Department of Agriculture (USDA) at the end of February 2016:

"Today is bittersweet for me as I announce my decision to step down as Deputy Secretary at the end of February. I am proud of what our Department has accomplished since 2009 to bring economic opportunity that will help rural America thrive for generations to come. And although I will not be part of the many great and transformational things USDA will accomplish over the next year, I am more committed than ever to USDA's mission. We have worked hard over the past seven years to make USDA truly the People's Department, as demonstrated by this Administration's commitment to bring young people, women, veterans and equal access to the forefront of food and agriculture policy.

"I began my service to USDA in the Office of Congressional Relations, where our team helped shepherd two of the most significant pieces of legislation in our time here—the Healthy, Hunger Free Kids Act and securing funding from Congress to help resolve outstanding claims of discrimination by African American farmers. Each achievement charted a new path toward a brighter future for our country and symbolized USDA's deep commitment under the Obama Administration to create opportunity for all Americans.

"As the Secretary's Chief of Staff, I had the pleasure of working with many bright and talented USDA employees who have dedicated their lives to helping rural America thrive. From college interns to seasoned professionals with 60 years of federal service, our employees are resilient and creative, finding ways to do more with less, year after year. Because of their hard work and dedication, the next generation will inherit a rural America that is stronger, more diverse, and more capable of rising to the challenges of the next decade.

"As Deputy Secretary, I am proud to lead the implementation of the 2014 Farm Bill. The Farm Bill, like USDA, impacts every American and millions of people around the world, and I was grateful to play a small part in helping to achieve important, meaningful reforms for the future of agriculture through its implementation. More than anything, I am grateful to have traveled across the country to visit with young people, women, and veterans, interested in farming and ranching. I take comfort in knowing today's USDA is there to support their dreams.

"Finally, I want to thank President Obama and Secretary Vilsack for the opportunity to be part of their team. As the proud daughter of farmers and someone who cherishes rural values, I couldn't have served for anyone more genuine and committed to making a difference than Secretary Vilsack. My work at USDA on behalf of our farmers, ranchers, producers and rural communities has been the greatest honor of my professional life."



Vilsack on Departure of Deputy Secretary Krysta Harden

Agriculture Deputy Secretary Krysta Harden announced earlier today her plans to depart the U.S. Department of Agriculture (USDA) at the end of February 2016. To ensure continuity of operations upon her departure, Agriculture Secretary Tom Vilsack announced today that Michael Scuse, the current Under Secretary for Farm and Foreign Agricultural Services (FFAS), will serve as Acting Deputy Secretary of Agriculture. Secretary Vilsack also directed Alexis Taylor, the current Deputy Under Secretary for Farm and Foreign Agricultural Services, to assume the duties of Under Secretary for FFAS.

Secretary Vilsack made the following statement on the departure of Deputy Secretary Krysta Harden:

"Krysta Harden shares a special bond with rural America and agriculture that is deeply rooted in her family history and personal values, embodying the mission of USDA in a genuine way. I greatly appreciate her many years of service to the Obama Administration and to USDA. But more than anything, I am grateful for her friendship, sound judgement and leadership as a key member of my team since 2009.

"When I asked her to serve as Deputy Secretary, Krysta shared her priorities with me, which included strengthening our civil rights record and the inclusivity of USDA programs and policies, expanding opportunities for the next generation of farmers and ranchers, and emboldening rural communities with the resources they need to thrive. Looking back, she has delivered decisively on each one.

"As a farmer's daughter from rural Georgia, Krysta used her position as Deputy Secretary to explain the opportunities and challenges facing U.S. agriculture. To address the graying nature of farming, Krysta led the development of USDA's Beginning Farmers website, an interactive tool to help anyone develop a career in farming and ranching. Understanding that women make up about 50 percent of the agricultural labor force worldwide, yet own and operate a disproportionately small number of farms in the United States, Krysta founded the Department's Women in Agriculture Mentoring Network to support and engage women across all areas of agriculture and to foster professional partnerships between women with shared goals. Less than a year later, the Women in Ag Network has more than 1,000 members, and growing. Finally, faced with a challenging legislative climate in Washington, Krysta helped to lead USDA's efforts in collaboration with Congress to see the 2014 Farm Bill through to completion and, eventually, implementation. In fact, many have called the 2014 Farm Bill the best-implemented Farm Bill in history, and I believe that is due in large part to Krysta's leadership.

"Her tenure at USDA first as Assistant Secretary for Congressional Relations, then as my Chief of Staff, and finally as Deputy Secretary, underscore her unique talents as a leader and a champion for rural America. I speak for thousands of colleagues across the USDA, the federal family, and our nation's food and agriculture sector, when I say she will be missed. I appreciate her service and wish her well in her future endeavors."



Soy Growers: Harden a Champion for Farmers

The American Soybean Association (ASA) thanked outgoing Deputy Secretary of Agriculture Krysta Harden today for her service to the nation’s farmers. Harden, who announced her resignation this afternoon, served as Deputy Secretary since August of 2013, before which she served as Chief of Staff to Secretary Tom Vilsack. Harden also has a special link to soybean farmers, working for more than a decade in the Washington offices of ASA prior to her public service. Richard Wilkins, president of ASA and a farmer from Greenwood, Del., praised Harden’s attention to the needs of America’s farmers.

“Krysta Harden is the kind of public servant that comes along only too rarely. She has blended a personal background, professional knowledge base, and exceptional passion for agriculture into a career that has served farmers at every level. As Deputy Secretary, she has been a visionary leader and a willing partner for soybean farmers across the country as we work to contend with the changing realities of our market, both here in the U.S. and overseas. We are of course sad to see her go, but happy to know that she will continue her service and her outstanding advocacy for farmers and rural Americans wherever she goes. We thank her and wish her nothing but the best of luck.”



NCGA Statement on Deputy Secretary Harden

The following is a statement from Chip Bowling, president of the National Corn Growers Association and a farmer from Newburg, Maryland, regarding U.S. Department of Agriculture (USDA) Deputy Secretary Krysta Harden’s decision to step down in February.

“Deputy Secretary Harden described today as bittersweet. We could not agree more,” said Bowling “The National Corn Growers Association has had a long relationship with her, before and during her time at USDA. We are sad to see her go, but we wish her well in her next chapter and hope to work with her again in the future.”

“On a personal note, I appreciate Deputy Secretary Harden for her no-nonsense, common-sense leadership. At a time when too many people in Washington seem to be shouting at one another, she knows how to build bridges and put everyone at ease. Talking to Krysta feels like sitting down with a lifelong friend. She is a farm girl at heart, and USDA was a better place because of it. I will miss her, and I wish her the best,” said Bowling