Friday February 19 Ag News

NEBRASKA CATTLE ON FEED DOWN 2 PERCENT

Nebraska feedlots, with capacities of 1,000 or more head, contained 2.46 million cattle on feed on February 1, according to the USDA’s National Agricultural Statistics Service. This inventory was down 2 percent from last year. Placements during January totaled 490,000 head, down 3 percent from 2015. Fed cattle marketings for the month of January totaled 435,000 head, down 3 percent from last year.  Other disappearance during January totaled 15,000 head, unchanged from last year.



IOWA CATTLE ON FEED

 Cattle and calves on feed for slaughter market in Iowa for all feedlots totaled 1,235,000 on February 1, 2016, according to the latest USDA, National Agricultural Statistics Service - Cattle on Feed report. The inventory is up less than one percent from January 1, 2016, but down 2 percent from February 1, 2015. Feedlots with a capacity of 1,000 or more head had 620,000 head on feed, unchanged from last month but down 5 percent from last year. Feedlots with a capacity less than 1,000 head had 615,000 head on feed, up 1 percent from last month but unchanged from last year.

Placements during January totaled 168,000 head, a decrease of 12 percent from last month and down 9 percent from last year. Feedlots with a capacity of 1,000 or more head placed 89,000 head, down 1 percent from last month and last year. Feedlots with a capacity less than 1,000 head placed 79,000 head. This is down 21 percent from last month and down 17 percent from last year.

Marketings for January were 155,000 head, up 13 percent from last month and up 16 percent from last year. Feedlots with capacity of 1,000 or more head marketed 86,000 head, down 11 percent from last month but up 10 percent from last year. Feedlots with a capacity less than 1,000 head marketed 69,000 head, up 73 percent from last month and up 23 percent from last year. Other disappearance totaled 8,000 head.



United States Cattle on Feed Down Slightly
  
Cattle and calves on feed for the slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 10.7 million head on February 1, 2016. The inventory was slightly below February 1, 2015.

Placements in feedlots during January totaled 1.78 million head, 1 percent below 2015. Net placements were 1.72 million head. During January, placements of cattle and calves weighing less than 600 pounds were 340,000 head, 600-699 pounds were 365,000 head, 700-799 pounds were 494,000 head, and 800 pounds and greater were 580,000 head.

Marketings of fed cattle during January totaled 1.59 million head, 2 percent below 2015. Marketings are the lowest for January since the series began in 1996.  Other disappearance totaled 56,000 head during January, 27 percent below 2015. Other disappearance are the lowest for January since the series began in 1996.

2015 Cattle on Feed and Annual Size Group Estimates
Cattle and calves on feed for slaughter market in the United States for feedlots with capacity of 1,000 or more head represented 80.3 percent of all cattle and calves on feed in the United States on January 1, 2016, down 1 percent from the 81.6 percent on January 1, 2015.

Marketings of fed cattle for feedlots with capacity of 1,000 or more head during 2015 represented 87.2 percent of total cattle marketed from all feedlots in the United States, down slightly from 2014.

Number of Cattle on Feed  -  as of Feb 1 2016
State  -                    1,000 hd    -  % of Feb '15
Colorado ...........:        880            99       
Iowa .................:        620             95     
Kansas ..............:       2,140         102     
Nebraska ..........:       2,460           98       
Oklahoma .........:       280             106        
Texas ................:       2,430           98       

Number of Cattle Placed in Jan 2016
State   -                    1,000 hd   -   % of Jan '15
Colorado ...........:        145           107       
Iowa .................:         89             99      
Kansas ..............:        415           101      
Nebraska ..........:        490            97         
Oklahoma .........:         45             90      
Texas ................:       335            96        

Number of Cattle Marketed in Jan 2016
State                   1,000 hd   -   % of Jan '15
Colorado ...........:        130            93      
Iowa .................:         86             110         
Kansas ..............:        355           100          
Nebraska ..........:        435            97          
Oklahoma .........:         34             87     
Texas ................:       325             94         



January Milk Production up 0.3 Percent
                      
Milk production in the 23 major States during January totaled 16.6 billion pounds, up 0.3 percent from January 2015. December revised production, at 16.4 billion pounds, was up 0.7 percent from December 2014.  The December revision represented an increase of 19 million pounds or 0.1 percent from last month's preliminary production estimate.

Production per cow in the 23 major States averaged 1,923 pounds for January, 4 pounds above January 2015. This is the highest production per cow for the month of January since the 23 State series began in 2003.

The number of milk cows on farms in the 23 major States was 8.63 million head, 6,000 head more than January 2015, but 11,000 head less than December 2015.



2015 Annual Milk Production up 1.3 Percent from 2014

State 2015 Milk Production
Nebraska ....:      1,307.0 million pounds - +9.4% from 2014   
Iowa ...........:      4,841.0 million pounds - +4.2% from 2014   

The annual production of milk for the United States during 2015 was 209 billion pounds, 1.3 percent above 2014. Revisions to 2014 production increased the annual total 8 million pounds.  Revised 2015 production was up 139 million pounds from last month's publication.

Production per cow in the United States averaged 22,393 pounds for 2015, 134 pounds above 2014. The average annual rate of milk production per cow has increased 12.6 percent from 2006.

The average number of milk cows on farms in the United States during 2015 was 9.32 million head, up 0.6 percent from 2014. The average number of milk cows was revised up 2,000 head for 2015.



IBACH ENCOURAGES GOVERNOR’S AG CONFERENCE PARTICIPATION AS NEW SPEAKER IS ADDED

A key Cargill official with expertise on the subject of agricultural sustainability has been added to the line-up of speakers for the Nebraska Governor’s Ag Conference, being held March 2-3 in Kearney.

Nicole Johnson-Hoffman serves as vice president and managing director for Cargill’s North American McDonald’s Business Unit. She is well-known nationally for her work on the U.S. and Global Roundtables for Sustainable Beef.

“Through her position with Cargill, Nicole has really helped shape the conversation about what the word ‘sustainability’ means from the farm gate all the way through the food chain,” Nebraska Agriculture Director Greg Ibach said. “The definition of ‘sustainability’ matters as our Nebraska food processing sector works to meet consumer demand, while allowing farmers and ranchers to be profitable.”

Ibach said Johnson-Hoffman received the national spotlight several years ago when she appeared, on Cargill’s behalf, on “The Oprah Winfrey Show” as it took an inside-look at meat processing. She was Cargill’s Fort Morgan, Colorado, plant manager at the time.

Johnson-Hoffman replaces, on the conference agenda, JBS’s Cameron Bruett who had a scheduling conflict. She joins a slate of Governor’s Ag Conference speakers who will be addressing a wide variety of subjects important to the agriculture community, Ibach said. The event will be held at the Kearney Holiday Inn and Convention Center and gets under way at 3:30 p.m. on Wednesday, March 2.

Farmers, ranchers, and agribusiness owners are encouraged to attend the event, Ibach said. Registration and additional information, including a detailed agenda with speakers, is available online at www.nda.nebraska.gov or by calling 800-831-0550.

“The conference is for anyone with an interest in agriculture,” Ibach said.



Northeast Cattlemen Membership Meeting
Mon Feb 22nd 6.00pm - 10.00pm
Geno’s Steakhouse, Wayne



Washington County Cattlemen Membership Meeting
Mon Mar 7th 6.00pm - 10.00pm
Blair Marina, Blair



Nebraska Corn Board Vacancies

Notice is hereby given that the terms for three members of the Nebraska Corn Development, Utilization and Marketing Board will expire June 30, 2016. The members represent Districts 1, 4 and 5.

District #1 Counties of Butler, Saunders, Douglas, Sarpy, Seward, Lancaster, Cass, Otoe, Saline, Jefferson, Gage, Johnson, Nemaha, Pawnee, and Richardson (Note: David Bruntz, the current District 1 director, has indicated that he will pursue re-appointment.)

District #4 Counties of Knox, Cedar, Dixon, Dakota, Pierce, Wayne, Thurston, Madison, Stanton, Cuming, Burt, Colfax, Dodge, and Washington (Note: Debbie Borg, the current District 4 director, has indicated that she will pursue re-appointment.)

District #5 Counties of Sherman, Howard, Dawson, Buffalo and Hall (Note: Tim Scheer, the current District 5 director, has indicated that he will pursue re-appointment.)

Appointments to the board for Districts 1, 4 and 5 are made by the Governor. Any candidate for appointment may place his or her name on the candidacy list by filing a petition with the Nebraska Corn Board. Qualified candidates include those individuals who are citizens of Nebraska, are at least 21 years old, have been actively engaged in growing corn in Nebraska for a period of five years, and derive a substantial portion of their income from growing corn. Board members who currently represent these districts are also eligible to re-petition.

Petitions may be obtained by writing the Nebraska Corn Board, P.O. Box 95107, Lincoln, NE 68509-5107 or by calling (800) 632-6761 or email ncb.info@nebraska.gov. A candidacy petition must carry the signatures of at least 50 corn producers from that district. All petitions must be received by the Corn Board no later than 5:00 p.m. on Friday, May 20, 2016. Faxed copies do not qualify.



FEED HIGH QUALITY HAY AFTER CALVING
Bruce Anderson, NE Extension Forage Specialist

               Good cow nutrition is crucial following calving to get cows rebred.  Today let's review some guidelines to do the job right.

               Cows need good feed after calving.  Each cow experiences much stress after calving because she is producing milk for her calf and she is preparing her reproductive system to rebreed.  As a result, nutrient demands are high.  Energy requirements increase about 30 percent and protein needs nearly double after calving.  Underfeeding reduces the amount of milk she provides her calf, and it can delay or even prevent rebreeding.  And if it gets cold, wet, or icy again, nutrient demands can sky-rocket.

               Winter grass, corn stalks, and other crop residues are low quality right now because these feeds are weathered and have been pretty well picked over.  So it is critical that the hay or silage you feed will provide the extra nutrients your cows need.

               Not just any hay or silage will do.  Your cow needs 10 to 12 percent crude protein and 60 to 65 percent TDN in her total diet.  If she is grazing poor quality feeds or eating grass hay, your other forages and supplements must make up any deficiencies.

               Make sure your forage has adequate nutrients;  if you haven't done so, get it tested now for protein and energy content.  Compare this to the nutrient requirements of your cows.  Then feed your cows a ration that will meet their requirements.  But don't overfeed, either.  That is wasteful and expensive.

               In summary, avoid underfeeding after calving;  it can delay rebreeding and slow down calf growth.  Use your best quality forages with any needed supplements to provide adequate nutrition.  Your cows will milk well, rebreed on time, and produce healthy calves year after year.



NE Corn Growers 2016 Washington DC Leadership Program

The Nebraska Corn Growers Association selected 13 participants was to attend the Nebraska Corn Growers 28th  annual Washington DC Leadership Trip.  From February 8th – February 12th, producers from across the state gained firsthand experience of Washington, DC and the legislative process.

The leadership visit to Washington is a great way for Nebraska corn farmers to engage with key contacts and help put a face on Nebraska agriculture. The participants had a full slate of meetings over three days.  From meetings with Nebraska’s congressional representatives, to meetings with key industry contacts such as the Renewable Fuels Association, Animal Agriculture Alliance, Corn Refiners Association, North American Millers Association, Syngenta, CropLife, American Farm Bureau, Growth Energy, BIO, and US Grains Council –the participants were able to talk with a wide variety of people and organizations who have a great deal of influence over farming operations.

Participants
Chad McDaniel – Roca
Jared Moser – Crete
Kristi Moser – Crete
Brent Hopkins – Rogers
Jordan Bergquist – Oxford
Janae Bergquist – Oxford
Eric Pospisil – Wahoo
Amy Pospisil – Wahoo
Dan Kristensen – Minden
Dave Warner – Albion
Mitch Schweers – Wisner
Isaac Johnson – Cambridge
Randy Pelster – Petersburg

Leaders
Steve Ebke – Daykin
Larry Mussack – Decatur
Joel Grams – Minden
Brandon Hunnicutt – Giltner



Current National Drought Summary
droughtmonitor.unl.edu

Unsettled, cold weather across the eastern half of the country contrasted with mostly dry, warm weather from the Great Plains to the Pacific Coast. Rain and northern snow fell from the central Gulf Coast into New England, though the heaviest precipitation fell outside of the driest areas. Meanwhile, unseasonably warm, locally hot conditions across Texas renewed concerns over dryness and rapidly-developing drought. Likewise, warm, dry weather returned to the West's core drought areas following recent beneficial rain and mountain snow. However, locally heavy precipitation continued in parts of the Pacific Northwest and northern Rockies.

Central Plains
Sunny skies and above-normal temperatures prevailed across this drought-free region. However, pockets of short-term dryness are being monitored from southeastern Colorado into southern Kansas.

Looking Ahead
Mild weather will expand to cover much of the nation, including the previously cold eastern U.S. Warm weather will continue to set high-temperature records across the nation’s mid-section, with warmth peaking in many areas on February 18. On that date, high temperatures could reach 90°F on the southern High Plains. At the height of the southern Plains’ warm spell, gusty winds and dry conditions will lead to an enhanced risk of wildfires. Dry weather will prevail during the next 5 days across the Deep South, as well as the central and southern Plains. In contrast, precipitation totaling 2 to 6 inches — much of which will fall on February 17-18 — can be expected in parts of northern California and the Pacific Northwest. Toward week’s end, snow can be expected from the upper Great Lakes into northern New England, while rain showers will develop from the mid-South into the Ohio Valley. The NWS 6- to 10-day outlook for February 23 – 27 calls for above-normal temperatures across much of the western and central U.S., with cooler-than-normal conditions largely confined to the Southeast. Meanwhile, below-normal precipitation is anticipated from southern California and the Great Basin eastward into the Corn Belt and Great Lakes, encompassing the Rockies and Plains. Wetter-than-normal conditions will be confined to coastal areas of the Pacific Northwest and from the eastern Gulf Coast States into New England.



IFBF Margin Management Series features 2016 crop marketing webinar 'Tactics for tight margins- Are you ready for 2016?'

Farmers are feeling the crunch of more challenging times with tight grain margins and high input costs.  Faced with many difficult decisions entering this growing season, the tide has turned to a time when decisions are more critical to a farm’s survival and growth.

On Wednesday, March 2 at 1:00 p.m., the Iowa Farm Bureau Federation (IFBF) has organized a webinar that will look at income and cost trends with a focus on tactics to manage through challenging financial times.  The webinar will address several integral questions facing farmers in 2016: Who are the most vulnerable producers?  What can you do to make the transition to the new cost/revenue realities?  How do you compare to your neighbors?  What is your lender looking for?  And many more questions that are top of mind for farmers today. 

“As record-profit years are in the rear-view mirror for most farmers during this time of extremely tight margins, understanding the trends and tools to keep the farm operating in the black have never been more important,” said IFBF Commodity Services Manager Ed Kordick.  “We look forward to sharing sound farm financial management ideas and insight during this critical time for farmers.”

IFBF’s new webinar focused on farm operation survival during difficult times will feature Bob Craven, director of the Center for Farm Financial Management at the University of Minnesota.  Craven will provide insight into using the effective tools for farm financial management when margins are tight.  

Farmers can access the webinar by going to www.iowafarmbureau.com, clicking on the webinar banner and entering the forum as a guest on the day of the event.  Pre-registration is not required for online viewing, but attendees are encouraged to test their computer’s ability to participate prior to the webinar.

For more information, contact Kordick at ekordick@ifbf.org.



ASA Supports Roberts Bill to Set GMO Labeling Standard

The American Soybean Association (ASA) welcomed legislation introduced today by Senate Agriculture Chairman Pat Roberts that would establish a national framework for the labeling of foods containing bioengineering. The legislation comes as a result of extensive work between ASA and fellow members of the Coalition for Safe, Affordable Food and Senate leadership, and reflects the urgent need to find a path forward on the GMO issue before a controversial law requiring labeling takes effect in Vermont in July.

“We’ve heard repeatedly that Americans want more information on what’s in their food, and we are invested in providing that information to them. Chairman Roberts’ bill is one that moves the food production industry in a direction of greater transparency, while at the same time protecting farmers’ ability to use what science has repeatedly proven to be a safe and sustainable technology,” said ASA President Richard Wilkins, a farmer from Greenwood, Del.

The bill instructs USDA to establish a set of standards within two years for labeling foods that do contain or may contain bioengineering. The bill also directs USDA to conduct an outreach and education campaign on the safety of bioengineered food. Additionally, the bill would preempt a patchwork of conflicting labeling laws at the state level.

“As growers, our primary concern is the ability to continue to produce food in the quantity and of the quality that American consumers demand, and we are acutely aware of consumers’ desire for us to reduce our impact on the environment in the process,” added Wilkins. “This is the dual promise of bioengineering. It has been proven safe repeatedly for nearly 20 years, and we can’t stand by while a small subset of activists willfully misinterprets and misrepresents bioengineering to advance their agenda.”

“We commend Chairman Roberts for his work,” added Wilkins, “and we will work with offices on both sides of the aisle to underscore just how important a national solution is in advance of the Vermont law.”



National Corn Growers Association Applauds Introduction of Proposal to Avoid Patchwork of State Labeling Laws

The National Corn Growers Association today applauded Sen. Pat Roberts for his introduction of a bill to address the growing threat of a patchwork of state labeling laws and called for the urgent passage of this important legislation.

“The introduction of Roberts’s proposal is an important first step to restoring sanity to America’s food labeling laws,” said National Corn Growers Association President Chip Bowling, a farmer from Maryland.  “GMOs are perfectly safe and America’s farmers rely on this proven technology to protect our crops from insects, weeds and drought. Important food safety and labeling decisions should be made by the scientists and qualified policymakers at the FDA, not political activists and campaigns. Yet, despite the scientific evidence, states such as Vermont are quickly moving toward costly, confusing mandatory labeling legislation. It is imperative that the Senate takes up this issue quickly to avoid a situation in which all American consumers pay a high price and gain little actual information.”

Vermont’s mandatory law requiring on-package labels of foods containing ingredients that have been genetically modified takes effect in July, and unless Congress acts swiftly, families, farmers and food companies will face chaos in the market and higher costs. Multiple studies have shown that the associated costs with Vermont’s GMO-labeling law and a subsequent patchwork of state laws will cost American families hundreds of dollars more in groceries each year – with low-income Americans being hit the hardest.

Roberts’s proposal brings continuity to the marketplace, ensuring that consumers have the access to product information they deserve without stigmatizing this safe, proven technology valued by American farmers. The bill, which will go through a markup by the Senate Committee on Agriculture next Thursday, will provide a national framework that places standards in the hands of the U.S. Department of Agriculture and creates a campaign that will educate the public on both the safety of GMOs and on the way in which they can find out more about the foods they purchase.

NCGA, working with partners across the value chain, has pushed for a solution to this issue for more than two years now as a member of the Coalition for Safe Affordable Food.

For more information on the need for a federal labeling standard, visit the Coalition for Safe Affordable Food, at www.CFSAF.org.



USSEC Works with USDA/APHIS to Find Solutions on Temporary Restriction of Russian Imports from the U.S.

The U.S. Soybean Export Council (USSEC) is working with the U.S. Department of Agriculture’s (USDA) Animal and Plant Health Inspection Service (APHIS) to find a solution to technical issues affecting exports to Russia. This effort is in response to the disappointing official notification received on February 15, 2016 by the U.S. government of a temporary restriction of imports to the Russian Federation due to alleged violations of national and international phytosanitary requirements on previous shipments.

According to the USDA APHIS, Russia’s Federal Service for Veterinary and Phytosanitary Surveillance (VPSS) has stated that U.S. soybean and corn shipments being loaded prior to February 15 may enter Russia, but will be subject to more intensive inspection. Russia has yet to specify those additional restrictions, which will be placed on shipments loaded thereafter, but prohibition of entry is likely.

“The USSEC Team in Russia and the U.S. is working with APHIS/USDA to endeavor to find a solution to these issues,” stated USSEC CEO Jim Sutter. “We will continue to work collaboratively with VPSS in an effort to lift the temporary prohibition on imports.”

Sutter continues, “In the 2014/15 marketing year, Russia imported 267 thousand metric tons (TMT) of U.S. Soy worth nearly $111 million dollars.  With 426 thousand metric tons of U.S. soy exports already reaching Russia since October 1, 2015, we continue to see potential in the market.”



 COOL REPEAL RULEMAKING NOW UNDER REVIEW

The regulatory rulemaking for the removal of Country of Origin Labeling (COOL) requirements for beef and pork muscle cuts, ground beef and ground pork has been logged at the Office of Management and Budget (OMB) for review. Congress in December approved a fiscal 2016 catch-all federal spending bill that included repeal of the meat labeling provision of the COOL law, avoiding trade retaliation from Canada and Mexico. OMB must review all regulations before they are implemented.

The COOL statute required meat to be labeled with the country where the animal from which it was derived was born, raised and harvested. (It also applies to fish, shellfish, fresh and frozen fruits and vegetables and certain nuts.) Canada and Mexico brought cases against COOL to the World Trade Organization, which ruled that it violated U.S. international trade obligations, discriminating against Canadian and Mexican livestock sent to the United States to be fed out and processed. The decision authorized Canada and Mexico to put retaliatory tariffs on U.S. goods going to those countries – the No. 1 and No. 2 U.S. export markets. In December, the WTO set the retaliation level at more than $1 billion annually. Repeal of the labeling provision for pork and beef came the day – Dec. 18 – those tariffs could have been applied to a host of U.S. exports going to Canada and Mexico.



NFU Continues Excellence in Cooperative Education

As supporters of cooperative businesses and young professionals, the nation’s second largest general farm organization will host more than 110 students from 15 colleges and universities here this weekend.  The 2016 National Farmers Union (NFU) College Conference on Cooperatives (CCOC) will provide a three-day, interactive learning experience designed to help shape the next generation of agriculture.

“Cooperatives organized by farmers and ranchers play an important role in strengthening rural and urban economies across the country. CCOC engages tomorrow’s leaders through a unique platform that teaches them about cooperative business principles and the opportunities available through the cooperative model,” said NFU President Roger Johnson.

Representatives from traditional and value-added agricultural cooperatives, housing and worker-owned co-ops, and consumer cooperatives such as grocery co-ops will offer insights on cooperative development. Students will also hear about the challenges facing the industry from current cooperative leaders, farmers and members.

In addition, participants will visit several area cooperatives, including the nation’s largest agricultural cooperative CHS Inc., and the Mill City Museum, a river-front museum built into the ruins of what was once the world’s largest flour mill.

Johnson explained, “NFU was founded on the core principles of education and cooperation, and we proudly continue that emphasis today with hands-on learning experiences, like CCOC.”

“Thanks to the support of our sponsors, NFU is able to provide cooperative education beyond the farm and ranch gate to young leaders from college campuses across the United States,” Johnson concluded.

This year’s conference was made possible by the generous support of the CHS Foundation, CHS Inc., CoBank, Farmers Union Industries Foundation, NFU Foundation, Minnesota Cooperative Education Foundation, and Organic Valley.  

To learn more, visit www.nfu.org/ccoc.



DUPONT, DOW ANNOUNCE SITE STRUCTURE OF INTENDED INDEPENDENT AGRICULTURE COMPANY

DuPont (NYSE:DD) and The Dow Chemical Company (NYSE:DOW) today announced the U.S. site structure for the global agriculture leader the companies intend to create following the planned separation of DowDuPont into three independent, publicly traded companies.

The corporate headquarters for the Agriculture company will be located in Wilmington, Delaware and will include the office of the CEO and key corporate support functions. Sites in Johnston, Iowa and Indianapolis, Indiana will serve as Global Business Centers, with leadership of business lines, business support functions, R&D, global supply chain, and sales and marketing capabilities concentrated in the two Midwest locations. In addition, the independent Agriculture company will feature DuPont in the company’s name, following completion of the corporate naming and branding process.

“This efficient structure takes full advantage of the unique expertise and resources that exist in each location, enabling us to deliver the long-term opportunity for the leading global Agriculture company we intend to create,” said Edward D. Breen, chairman and chief executive officer of DuPont. “Our deep presence in Iowa and Indiana will continue the close ties to our customer base and the broader Agriculture community, while leveraging the existing corporate infrastructure and expertise we have in Delaware – DuPont’s home for more than 200 years.”

The structure of the Agriculture company was specifically developed to ensure the cost discipline and efficiency necessary to achieve the previously stated $1.3 billion in synergies, while establishing the strongest foundation possible for sustainable growth over the long term – which will in turn create long-term opportunities for the company’s global employee base and local communities. This structure enables the intended independent Agriculture company to consolidate DuPont’s and Dow’s complete Agriculture capabilities across seed and crop protection in three primary locations, which is integral to achieving the planned synergies.

“We want to thank the leaders of each state for a highly constructive, cooperative process to achieve the best possible approach that leverages key advantages in each location. As we advance plans for the intended merger, DuPont and the state of Delaware are committed to leveraging our respective science infrastructures and competencies to nurture the emerging science and technology innovation hub in the state,” Breen stated.

“The proposed combination of Dow’s and DuPont’s agricultural businesses will create a U.S.-based global leader with the scale and breadth necessary to deliver greater value and choice for growers worldwide and compete against the largest global competitors,” said Andrew N. Liveris, chairman and chief executive officer of Dow. “Combining each company’s strengths in science and R&D, with increased global market access, enables greater opportunity for innovative new solutions in both seed and crop protection. The headquarters location of the Agriculture company being announced as Wilmington, with global business centers in Indiana and Iowa is consistent with the intended headquarters of the Material Science company, to be named Dow, being headquartered in Midland, Michigan, but having global business centers in other U.S. and global locations.” 

“Today’s announcement is another step toward our creation of a leading global agriculture company. The intended Agriculture company will be highly focused, stronger, more competitive, more resilient and better equipped to deliver growth and long-term, sustainable value than either DuPont or Dow could deliver on its own. Both companies have highly respected brands in the agriculture industry, such as Pioneer and Mycogen, which we will continue to build and leverage. Going forward, we will be better equipped to meet and exceed grower expectations for innovation in crop technology and agricultural services. We intend to bring a broader suite of products to the market, faster, to increase grower productivity and profitability,” Breen concluded.
 
THREE INTENDED INDEPENDENT, PUBLICLY TRADED COMPANIES
 With the announcement of the intended Agriculture company site structure, each headquarters location of the three intended independent, publicly traded companies now has been determined.

    Agriculture Company: A leading global pure‐play Agriculture company that unites the Seeds and Crop Protection businesses from DuPont and Dow. The combined entity is expected to have the most comprehensive and diverse portfolio in the industry and a robust pipeline with exceptional growth opportunities in the near‐, mid‐ and long‐term. The complementary offerings will provide growers across geographies with a broad portfolio of solutions and greater choice. The Agriculture company will be headquartered in Wilmington, Delaware. In addition, the independent Agriculture company will feature DuPont in the company’s name.

    Material Science Company: A pure‐play industrial leader, consisting of Dow’s Performance Plastics, Performance Materials and Chemicals, Infrastructure Solutions, Consumer Care and Automotive Solutions (excluding the Dow Electronic Materials business) operating segments, as well as DuPont’s Performance Materials segment. The combination of complementary capabilities is expected to create a low‐cost, innovation‐driven leader that can provide customers in high‐growth, high-value industry segments in packaging, transportation, and infrastructure solutions, among others, with a broad and deep portfolio of cost‐effective offerings. The Material Science company will be headquartered in Midland, Michigan. In addition, the independent Material Science company will feature Dow in the company’s name.

    Specialty Products Company: A leading global specialty business focused on attractive secular growth markets where innovative science capabilities offer a clear competitive advantage. The company is expected to be composed of four strong businesses which include DuPont’s Nutrition & Health, Industrial Biosciences, and Protective Solutions businesses as well as the integration of DuPont’s Electronics & Communications business with Dow’s Electronic Materials business unit. The Specialty Products company will be headquartered in Wilmington, Delaware.


Prior to the intended separation into three independent companies, DowDuPont will be dual headquartered in Wilmington, Delaware and Midland, Michigan.

Both parties continue to plan for the closing of the transaction during the second half of 2016, subject to satisfying the necessary closing conditions including obtaining the required pre-merger regulatory approvals.