Monday February 15 Ag News

Grain Handling Safety Training Available

The University of Illinois, the Grain Handling Safety Coalition (GHSC), and the Central States Center for Agricultural Safety and Health (CS-CASH) are partnering to bring Grain Safety Training Courses to midwestern communities.  Trainings will be conducted at no expense to the participants or the host.

Learn life-saving practices when you host free grain handling safety training in your community.

Organizations interested in hosting an event are encouraged to partner with public and private groups in their community. Groups might include Nebraska extension, elevators, co-ops, emergency response teams, hospitals, banks, and agribusinesses. Full day, half day, and shorter sessions are available and may be scheduled as part of a larger event in your community.  Generally, a minimum attendance of 20 is required.

This free training is supported by a grant and must be held by Sept. 30, 2016.

For more information contact:  Alex Ivanova, grain safety training and program promotion coordinator, at ghscpromotions@gmail.com or 630-866-3267; or Ellen Duysen, CS-CASH Coordinator, at ellen.duysen@unmc.edu.

The Grain Handling Safety Coalition (GHSC) is a team from industry-related associations and agencies, and individuals with a shared dedication to preventing accidents, injuries and fatalities in grain handling operations on the farm and at the elevator.  GHSC has developed educational videos and animations on grain bin safety and has posted them to YouTube.com.

The Central States Center for Agricultural Safety and Health (CS-CASH), housed at the University of Nebraska Medical Center, serves a seven-state region consisting of North Dakota, South Dakota, Nebraska, Kansas, Minnesota, Iowa, and Missouri. Each of the regional centers has unique projects. CS-CASH focuses primarily on respiratory disease research, injury surveillance, hearing protection, and the educational needs of farmers, their family members, and farm workers.




Low Prices May Suggest New Land Uses
Amy Timmerman – NE Extension Educator

High pasture rents, risk of drought, and little profit from irrigated crops make irrigated pasture an attractive option this year.

When pasture rent approaches or even exceeds $300 per cow-calf pair for the season, it may be time to look at other options.   One attractive option might be to grow your own irrigated pasture, especially when corn prices are below $4 a bushel.   Well-managed irrigated pasture can support about 1.5 cow-calf pairs per acre.   At current pasture rental rates this could save you over $400 per acre.

Of course, you will gross a whole lot more per acre by continuing to grow irrigated corn, but this doesn't mean you're generating a proportionately higher profit per acre. Cash costs to raise corn are much higher than those for irrigated pasture.

This doesn’t account for other advantages of irrigated pasture, such as the convenience of having so many animals near home, better early spring grass, and improved bull power when breeding in such small areas.   Only you can determine what these are worth to you.

Irrigated pastures can be highly productive and profitable, but they will require your best management efforts.   If you're considering this change, you may want to review several Nebraska Extension NebGuides with further information on seeding and managing irrigated pastures:
·    Perennial Forages for Irrigated Pasture (G1502): Plant traits and selection guide for perennial forages for irrigated pasture in Nebraska, including information on recommended mixtures and species characteristics.
·    Fertilizing Grass Pastures and Hayland (G1977): Proper fertilization is an important component of managing pastures and haylands.
·    Grazing Management of Irrigated Grass Pastures (G563): Factors and principles of plant growth that influence irrigated pasture production

This year, with $4 per bushel corn, irrigated pastures may provide more of the benefits you need for your overall operation.



USGC Delegates Gather to Develop 2016, 2017 Overseas Marketing Plans

More than 230 U.S. Grains Council (USGC) delegates from across the United States are gathering in Sarasota, Florida, for meetings to assess existing programs and develop marketing strategies for the upcoming year.

The 13th International Marketing Conference and 56th Annual Membership Meeting is a once-a-year opportunity for USGC members from across the grains value chain to assemble as a group and discuss the organization’s global efforts directly with the Council’s international staff.

USGC Advisory Teams (A-Teams), which provide guidance and set priorities for the Council’s international operations, will meet over two days to review 2016 strategies and compare notes about the global grain trade.

The full group will also gather Monday for a general session and Wednesday for a business meeting and update from Council leaders.

“As a member-led organization, our delegates provide critical guidance to USGC leadership and staff who carry out our programs around the world,” said USGC Chairman Alan Tiemann. “Meeting together each year is critical to helping us identify new opportunities and priorities in a rapidly changing environment, which we then translate into the Council’s operational plans for the coming year.”

Attendees will learn about how the upcoming presidential election may impact the global grain trade; the status of trade policy priorities and their importance to U.S. grain sales; and about the world grain markets from the eyes of Argentine partners in MAIZALL, the international maize alliance.

The Council’s winter annual meeting will conclude with Wednesday’s session focused on the Council’s operations, with the USGC Board of Delegates and Board of Directors holding business meetings.

More about the ongoing annual meeting is available online at http://grains.org/news-and-events/events/13th-international-marketing-conference-56th-annual-membership-meeting. 



Over Half of U.S. Imports Coming From Canada, Mexico

The value of U.S. agricultural imports has more than doubled since 2004, exceeding $114 billion in fiscal year 2015 and up 4 percent from the previous year.

Canada and Mexico are the two largest sources of U.S. agricultural imports and account for about one-third of the total value, while the combined value of imports from the countries that comprise the European Union roughly equal the value of imports from Canada.

Together, Canada, Mexico, and the European Union account for just over half of the value of agricultural products that the United States imports, and this share has held relatively constant over the past decade although the import shares for Canada and the EU have declined, while Mexico's has grown.

The $4.3 billion in agricultural imports from China in 2015 still accounts for less than 4 percent of the U.S. total, but has grown by nearly 170 percent since 2004.



CWT Assists with 3.9 Million Pounds of Cheese and Butter  Export Sales

Cooperatives Working Together (CWT) has accepted 11 requests for export assistance from Dairy Farmers of America, Maryland-Virginia Milk Producers Association, Northwest Dairy Association (Darigold), and Tillamook County Creamery Association who have contracts to sell 1.613 million pounds (732 metric tons) of Cheddar cheese and 2.315 million pounds (1,050 metric tons) of butter (82% milkfat) to customers in Asia, the Middle East and Oceania. The product has been contracted for delivery in the period from February through August 2016.

So far this year, CWT has assisted member cooperatives who have contracts to sell 6.003 million pounds of cheese, 5.181 million pounds of butter and 5.392 million pounds of whole milk powder to eleven countries on five continents. The sales are the equivalent of 211.344 million pounds of milk on a milkfat basis.

Assisting CWT members through the Export Assistance program, in the long-term, helps member cooperatives gain and maintain market share, thus expanding the demand for U.S. dairy products and the U.S. farm milk that produces them. This, in turn, positively impacts all U.S. dairy farmers by strengthening and maintaining the value of dairy products that directly impact their milk price.



The Andersons Reports Lower Earnings in 2015

The Andersons, Inc. announces financial results for the fourth-quarter and full-year ended December 31, 2015. The company reported a net loss attributable to its $13.1 million or a loss of $0.46 per diluted share, on revenues of $4.2 billion for 2015 compared to net income of $109.7 million or $3.84 per diluted share in 2014 on revenues of $4.5 billion.

Adjusted net income attributable to the Company for 2015 was $41.2 million, or $1.45 per diluted share compared to last year's adjusted $99.1 million, or $3.46 per diluted share. (see Reconciliation to Adjusted Net Income table)

Adjusted net income attributable to The Andersons for the fourth quarter was $5.0 million, or $0.18 per diluted share, on revenues of $1.2 billion compared to $25.9 million, or $0.89 per diluted share, on revenues of $1.3 billion in the same period of the prior year.

"We are understandably disappointed in 2015's overall results. Market conditions this year in the Eastern Corn Belt coupled with underperformance in our Grain Group significantly impacted the performance of our agriculture businesses," said CEO Pat Bowe.

Ethanol Group executed very well in the face of low oil prices and high industry supply levels, delivering third best profit year despite market conditions

The Ethanol Group delivered record production output in the fourth quarter and full year. In 2015 the ethanol facilities produced 384 million gallons compared to 372 million gallons in 2014 and their nameplate capacity of 330 million gallons.

Margins of co-products were under pressure in the fourth quarter as lower international demand, particularly in China, put pressure on distillers dried grain pricing.



Mosaic Reports Fourth Quarter and Full-Year Results

The Mosaic Company, Plymouth, Minn., reported fourth quarter 2015 net earnings of $155 million, down from $361 million in the fourth quarter of 2014. Earnings per diluted share were $0.44 and included both a negative $0.16 impact from notable items and a benefit of $0.07 per share from adjusting the full year effective tax rate accrual. Mosaic's net sales in the fourth quarter of 2015 were $2.2 billion, down from $2.4 billion last year. Operating earnings during the quarter were $204 million, down from $365 million a year ago, impacted by lower potash and phosphate prices and volumes, as well as lower potash production, partially offset by cost savings.

"Our fourth quarter results reflect the cyclicality and seasonality of our business," said Joc O'Rourke, president and CEO. "Our progress on cost savings initiatives and strategic investments has positioned Mosaic to optimize performance in the current macroeconomic environment. At the same time, our prudent balance sheet management allows us to take advantage of opportunities to create long-term value. Repurchasing shares at the bottom of the cycle is high on the priority list."

Cash flow provided by operating activities in the fourth quarter of 2015 was $302 million compared to $347 million in the prior year. Capital expenditures plus investments in the Ma'aden Wa'ad Al Shamal Phosphate Company ("MWSPC," also known as the Ma'aden joint venture) totaled $398 million in the quarter. Mosaic's total cash and cash equivalents were $1.3 billion and long-term debt was $3.8 billion as of December 31, 2015.

"Mosaic grew full-year earnings per share in this challenging environment by focusing on cost control and executing share repurchases in accordance with our stated goals," said Rich Mack, Mosaic's executive vice president and chief financial officer.

For the 12 months ended December 31, 2015, net income was $1.0 billion, or $2.78 per diluted share, compared to $1.0 billion, or $2.68 per diluted share in 2014. Net sales were $8.9 billion, down from $9.1 billion a year ago. Full-year operating earnings were $1.3 billion, roughly flat with last year, as lower sales volumes and prices in potash combined with lower phosphate margins, were largely offset by lower expenses.

Full-year selling, general and administrative (SG&A) expenses were $361 million compared to $382 million in 2014. Net cash provided by operating activities was $1.8 billion and capital expenditures including investments in MWSPC were $1.2 billion, resulting in free cash flow of approximately $580 million, before dividends.



Get Ready to Receive Your 2016 Seed

Spring planting is just around the corner, and seed soon will leave the distribution facility and head toward your farm. Before receiving your seed, it’s important to prepare your facilities and equipment for trouble-free delivery and storage.

Jason Welker, Mycogen Seeds commercial agronomist, offers several steps to ensure seed quality, time efficiency and worker safety at planting time. “Now is the time to get ready to receive those seed bags, pallets and boxes,” Welker says. “A few preparations can save time and make spring planting easier and safer down the road.”

    Plan for seed storage. Make sure you have a readily accessible indoor area that is large enough to store the seed and still leave space to move equipment as needed. If you don’t have adequate storage, arrange to leave seed at the dealership until it’s needed for planting.

    Prepare facilities. A clean, dry storage area is essential to maintain seed purity and quality. Here’s a checklist:
-    Sweep out your on-farm seed storage area to eliminate sand or debris that could hamper forklift operations when moving pallets and bags.
-    Check for and repair roof or building leaks to keep seed from getting wet.
-    Prevent seed damage by controlling bird and mice populations.
-    Check facility ventilation and, if necessary, open doors to increase airflow.
-    Replace any burned-out light bulbs in the storage area so you can read seed tags easily.

    Determine field planting order. It’s important to know which varieties you’ll be planting first, so the dealer can place your seed in the proper order in storage. A little preplanning can save time when you get busy. “In the rush of planting, you won’t want the seed you need first to be stuck behind other varieties,” Welker says.

    Check seed tags. After seed delivery, review bag tags or super box tags so you are aware of management guidelines for seed treatments. “Knowing these requirements in advance helps prevent slowdowns during planting,” Welker says.

    Maintain handling equipment. Check to make sure your tenders, conveyors and augers are in working order and ready for the season. Worn augers could damage seed and reduce germination.

    Stay safe. “During this hectic time, make safety a priority,” Welker says. He advises wearing personal protective equipment and long sleeves when handling seed to prevent contact with seed treatments should a bag or box break open. Also, avoid stacking pallets or bins more than four high and make sure seed containers are tied down adequately when transporting over the road.

“Attention to these preparations and precautions will help minimize downtime and pave the way for a successful planting season,” Welker says.