Thursday, February 4, 2016

Thursday February 4 Ag News

NFB Foundation for Agriculture Deadline for Scholarships and Education Loans Fast Approaching

"Time is running out to apply for valuable scholarship dollars for our Nebraska Farm Bureau members and we encourage applicants to check out the programs available,” Megahn Schafer, executive director NFB Foundation for Agriculture said.

There are four scholarships offered through the Foundation. Below is a list that summarizes each scholarship and its requirements. Applications are open to all Farm Bureau members.

Nebraska Agriculture Education Student Teacher Scholarship Program
Applicants who apply for the Nebraska Agriculture Education Student Teacher Scholarship Program must be enrolled in the Agricultural Education Teacher Education program at the University of Nebraska-Lincoln. They are eligible to apply for scholarship for the value of approximately one-half tuition or $1,200 for the semester in which the student's student teaching experience occurs. Applications are due March 1, 2016.

Charles Marshall Loans
The Charles Marshall Loan Fund is supported by voluntary contributions from Farm Bureau members. It offers higher education loans for worthy Farm Bureau members enrolled for training in accredited institutions for the advancement of professional skills. Loans can be approved up to and including 50 percent of the cost of training which includes tuition, room, board, books and transportation. The amount approved depends upon the needs of the applicant and funds available. Applications are due May 1, 2016.

Kenneth Schwartz Scholarship
This fund is administered through the University of Nebraska Foundation, and at least one $1,000 scholarship will be awarded per year. The applicant must be an incoming junior or senior at the University of Nebraska-Lincoln majoring in an agricultural or agricultural-related program including agribusiness. Applicants must belong to a member family of a county Farm Bureau in Nebraska or have their own Farm Bureau membership. A student who receives the scholarship as a junior is eligible to receive the scholarship a second year if a satisfactory grade level has been maintained and the applicant again receives committee selection. The scholarship fund was established by the family of the late Kenneth E. Schwartz, who was executive vice president of Farm Bureau Insurance Company of Nebraska at the time of his death in 1987. Applications are due March 1, 2016.

Greater Horizon Scholarship
The Greater Horizon Scholarship is awarded to student’s ages 18 to 35 who are from a Farm Bureau member or their family is a member. Applicants must plan to study an agriculture-related field full-time at a college or university and plan to return to production agriculture. Applicants must be a resident of Nebraska and demonstrate leadership potential through extracurricular activities and work experience. Up to two $1,000 scholarships may be awarded. Applications are due March 1, 2016.

To apply for any of these programs, use the forms available on the Nebraska Farm Bureau Foundation for Agriculture website at www.nefbfoundation.org, or contact the Foundation team at FoundationForAg@nefb.org or 402-471-4747.



NEBRASKA LEAD 34 FELLOWS TRAVEL TO HUNGARY, ROMANIA, MOLDOVA


    Twenty-nine Nebraska LEAD 34 Fellows recently returned from an international study and travel seminar in Hungary, Romania and Moldova.

    "Our international study is designed to provide firsthand appreciation and understanding of our international community and the potential for people of all nations to work together," said Terry Hejny, LEAD program director and group leader.

    During the Jan. 5-19 seminar, LEAD fellows participated in briefings with U.S. Embassy officials in Budapest, Hungary; Bucharest, Romania; and Chisinau, Moldova, including sessions with Colleen Bell, U.S. ambassador to Hungary; Hans Klemm, U.S. ambassador to Romania; and Jeanette Tyson of the Political-Economic Section in Moldova. The LEAD fellows also visited international businesses, several farm operations and entrepreneurs. Additionally, the fellows were able to meet with officials at Szent Istvan University in Godollo, Hungary; the Pioneer-DuPont Agriculture and Nutrition Research Center near Bucharest, Romania; and Agromester HD, the national John Deere dealership near Chisinau, Moldova.

    "The people-to-people encounters provided the members of Nebraska LEAD Group 34 an opportunity to view characteristics, conditions and trends in Hungary, Romania and Moldova and determine relationships to issues and situations in our country," Hejny said. "Through this experience, participants develop techniques in identifying comparisons and contrasts of the countries we recently studied in areas such as agriculture, politics, economics, energy, religion, culture and history as well as technology, trade, food, art and philosophy."

    LEAD 34 fellows in alphabetical order are: Reed Allen, Wayne; Lance Atwater, Hastings; Ashley Babl, Albion; Nicole Bohuslavsky, Omaha; Wayne Brozek, Gering; Adam Bruning, Kearney; Jonathan Carlson, Callaway; Josh Cool, Gothenburg; Tabbatha Cornelius, Bassett; Jordan Feller, Wisner; Debra Gangwish, Shelton; Mat Habrock, Lincoln; Todd Heithoff, Elgin; Clayton Hensley, Fremont; Justin Jarecke, Kearney; Tyler Kugler, Elwood; Hilary Maricle, Albion; Mark Miles, Ainsworth; Bryan Palm, Mitchell; Esther Rickert, Wood River; Jacob Robison, Elk Creek; Cecil Schriner, Hildreth; Jeff Schroeder, West Point; Alex Schwarz, Bertrand; Rick Spencer, Culbertson; Misty Stauffer, Harrisburg; Sarah Werner, Davenport; Lance Williams, Nora; and Teri Zimmerman, Wymore.   

    The Nebraska LEAD Program includes men and women currently active in production agriculture and agribusiness, and is a two-year leadership development program under the direction of the Nebraska Agricultural Leadership Council, in cooperation with the University of Nebraska-Lincoln's Institute of Agriculture and Natural Resources.

    For more information, or to request an application for LEAD 36, contact the Nebraska LEAD Program at 104 Agricultural Communications Building, UNL, Lincoln, NE 68583-0763, call 402-472-6810 or email leadprogram@unl.edu. The application deadline is June 15.



2016 Gross Crop Margins Negative Despite Lower Costs


The total cost of corn and soybean production in Iowa is expected to fall this year, according to a report published by Alejandro Plastina, an assistant professor in economics at Iowa State University and ISU Extension and Outreach economist.

The report, titled “Estimated Costs of Crop Production in Iowa - 2016,” shows the cost of corn production dipping by 6 percent and soybean production falling by 2.5 percent this year. The full report is available online on the ISU Extension and Outreach Store at http://store.extension.iastate.edu/Product/Estimated-Costs-of-Crop-Production-in-Iowa-2016-pdf.

Total cost per bushel is projected at $4.63 for corn following corn, assuming an average yield of 165 bushels per acre, and $3.99 for corn following soybeans, assuming an average yield of 180 bushels per acre. The total cost per bushel of soybeans, assuming an average yield of 50 bushels per acre, is projected at $10.67 for the herbicide tolerant variety and $10.66 for non-herbicide-tolerant, according to the report.

“A substantial decline in fertilizer and lime prices, machinery costs and land rents are expected to more than offset increases in crop protection costs, especially herbicides,” Plastina said. “Labor costs are also projected to remain flat in 2016.”

Despite higher fixed costs associated with slightly higher interest rates, total machinery costs are projected to drop due to lower diesel and LP gas prices. Lower crop prices will result in lower crop insurance liabilities and therefore lower insurance premiums.

The accumulated declines in total costs of corn and soybean production amount, respectively, to 8 percent since 2013 and 4 percent since 2014. However, these cost reductions are dwarfed by the 47 percent and 37 percent reduction in corn and soybean prices, respectively, between 2012 and 2015.

Several caveats do apply to the projections. First, fertilizer and lime costs include volume and early purchase discounts. Second, producers paying land rents higher than the ones estimated in the report might face higher costs of production. Third, to be able to compare budgets through time, calculations are based on a fixed rate of input use.

This might be a strong assumption for 2016, when lower crop prices will likely push some producers to look for additional cost savings by changing the mix of inputs used. For example, some producers might opt for seeds with fewer traits than in other years to save on front-loaded input costs.

Finally, crop budgets are calculated assuming average yields remain constant through time. If El NiƱo impacts climatological conditions in 2016, there is a high chance of having higher than average yields. In that case, costs of production per bushel might be lower than reported.

“Thin profit margins in owned land and likely negative margins on rented land should warrant a discussion with a trusted agronomist to evaluate where to cut costs without hurting revenue potential,” Plastina said. “Knowing the cost per acre of your own operation is critical for marketing your crop and making the necessary arrangements (such as securing operating loans, restructuring machinery or real estate loans, adding non-farm income) to cash flow your operation. For more information, visit with your ISU Extension and Outreach field agronomist or farm management specialist.”



IOWA CROP PROGRESS & CONDITION REPORT


 Iowa experienced close to normal precipitation totals and temperatures for the month of January. Fieldwork activities for the month of January were limited to some dry fertilizer application according to the USDA, National Agricultural Statistics Service. Average snow depth for January was 3 inches.

As January came to a close, topsoil moisture levels rated 0 percent very short, 0 percent short, 74 percent adequate, and 26 percent surplus. The south central portion of Iowa reported the highest moisture level with 45 percent rated surplus.

Grain movement rated 34 percent none, 45 percent light, 18 percent moderate, and 3 percent heavy. This year over three-quarters of grain movement for the month of January was rated light to none. Grain movement was generally prompted by a need for grain by end users or a need to generate cash flow by operators. Central Iowa recorded the most grain movement rated moderate to heavy for the month of January at 34 percent, while south east Iowa had the second most rated moderate to heavy at 30 percent.

Availability of hay and roughage supplies was 0 percent very short, 7 percent short, 84 percent adequate, and 9 percent surplus. Cattle conditions and performance deteriorated when temperatures were above freezing as cattle producers dealt with muddy pastures and feedlots. However, livestock conditions returned to normal whenever the ground was able to freeze.

IOWA PRELIMINARY WEATHER SUMMARY

Provided by Harry J. Hillaker, State Climatologist
Iowa Department of Agriculture & Land Stewardship


General Summary. Iowa temperatures averaged 19.2° or 0.2° below normal while precipitation totaled 0.61 inches or 0.31inches below normal. This ranks as the 69th warmest and 36th driest January among 144 years of records.

Temperatures. The new year opened with eight consecutive days of above normal temperatures, continuing the mild pattern that persisted through the last one-third of 2015. A brief period of cold weather prevailed from the 9th through the 13th. Daytime high temperatures reached only -4° at Elkader and Northwood on the 10th while morning lows fell to -18° at Spencer on the 10th and at Northwood on the 11th. Brisk winds combined with the cold air to produce wind chill indices down to -36° at Estherville and Spencer on the morning of the 10th. A brief warm-up occurred on the 14th and 15th with Keosauqua recording the month’s highest temperature with a 55° reading on the 14th. This was soon followed by the coldest weather of January on the 17th and 18th. Spencer recorded a minimum temperature of -21° on the morning of the 17th along with a wind chill index of -42°. Daytime highs remained below zero over about the northern one-half of the state on the 17th with Northwood reaching a maximum of only -9°. Parts of far northeast and far northern Iowa endured a second straight day of subzero high temperatures on the 18th. Temperatures were above normal in most areas from the 21st through the end of the month with no subzero readings recorded in the state after the 20th. Temperatures reached into the low fifties at many far southern Iowa locations on the 29th, 30th and 31st. The mild and wet December 2015 weather resulted in little, if any, soil frost at the beginning of January. However, the arrival of very cold weather on the 9th quickly drove frost much deeper into the soil during the middle one-third of the month. At month’s end soils were frozen to depths of 12 to 18 inches over central Iowa and to about ten inches across the southern part of the state. However, a deeper snow pack across northern Iowa insulated the soils there with eight inches or less of frozen ground at month’s end.

Heating Degree Days. Home heating requirements, as estimated by heating degree day totals, averaged the same as normal, but 4% more than last January. Thus far this heating season (since July 1) heating requirements are running 14% less than last year at this time and 15% less than normal.

Precipitation. Precipitation was frequent during January, but in sharp contrast to November and December did not amount to much. About two-thirds of the month’s precipitation came in the form of rain from the 6th to the 9th. Otherwise there were numerous light accumulations of snow through the remainder of January but only one event, on the 19th, brought more than four inches of snow to any single location when Mount Ayr accumulated 5.1 inches. Despite the relative lack of new snowfall or persistent cold during January snow remained on the ground for most of the month across the northern one-half of the state. The statewide average snowfall was 3.4 inches or 4.3 inches less than normal. This ranks as the 18th least snowy January among 129 years of records. January precipitation totals varied from 0.26 inches at Fairfield to 1.55 inches at Tripoli. Meanwhile monthly snowfall totals varied from 1.1 inches at Washington to 8.9 inches at Little Sioux.



Extension Specialists Seek Soybean Field Data to Help Farmers Reach Potential Yields


Iowa State University Extension and Outreach specialists are asking soybean farmers to provide yield and agronomic data specific to their soybean production fields by March 1, 2016. Daren Mueller, extension plant pathologist, and Mark Licht, cropping systems agronomist, are gathering the data for a three-year project to identify key factors that prohibit soybean farmers from obtaining yields that are potentially attainable on their respective farms.

soybean field photo by Daren MuellerSoybean production is expected to rise to satisfy the increasing demand for food, biodiesel and livestock feed, both in the United States and globally. It is critical to reduce the yield gap, which is the difference between the attainable crop yield, as determined by the interactive effects of weather, soils and genetics, and the actual crop yield attained by the producer.

“We will conduct an in-depth analysis of what factors might be causing a yield gap from the data we receive,” said Licht. “We intend to provide annual reports to all soybean farmers based on our analysis of the data collected from farms across Iowa and major soybean growing areas of the Midwest.

The “Soybean Yield Benchmarking Project” is a collaborative effort and is funded by soybean checkoff funds through the North Central Soybean Research Program. The 12 states in the North Central region of the United States produced 81 percent of total U.S. soybean production and acreage from 2010-2014. During this time, the average soybean yield for the region was 43 bushels/acre, but some producers have consistently reached soybean yields near or greater then 80 bushels/acre.

“This large gap between an average state yield and the very high yield obtained by some producers in that state needs to be explored and better understood,” said Licht.

The project will benchmark current yield and management practices in producer fields across each participating state to identify key management factors that can be used by individual producers to increase soybean yield on their farms with input-use efficiency that will improve bottom-line net profit.

“Once those factors are identified, both the producer and the university research or extension specialist can focus on how to close the yield gap for that individual producers and others like them,” said Mueller.

To submit field information, email the fillable PDF to lichtma@iastate.edu or mail it to Mark Licht, Iowa State University, 2104M Agronomy Hall, Ames, Iowa 50011.



Buchanan County producer new Iowa Pork Producers president


A pig farmer with 37 years of production experience is the new president of the Iowa Pork Producers Association.

Al Wulfekuhle of Quasqueton began his one-year term as Iowa's pork industry leader on Jan. 26 at the conclusion of the IPPA Annual Meeting in Des Moines. He served as president-elect in 2015 and succeeds Dave Struthers of Collins.

"It's an honor to represent the industry and I'm looking forward to working with the great board and staff at IPPA," Wulfekuhle says.

Wulfekuhle outlined several issues that he says the IPPA Board of Directors will need to be concerned with during his term.

The U.S. Food and Drug Administration's new Veterinary Feed Directive that prohibits pig farmers' use of certain antibiotics and requires a veterinarian's prescription for others will take effect on Jan. 1, 2017, and Wulfekuhle says preparing producers for the change will be key.

"Staff and the board members need to get the word out about it and educate producers so they're prepared," Wulfekuhle said. "I don't think it'll be a big issue, but we need to do our part to make sure producers are aware of it and prepared for it."

IPPA is a strong supporter of the Iowa Nutrient Reduction Strategy and the Iowa Water Quality Initiative and the new president says the association will stay involved and work with other commodity groups.

"We've started a task force to do just that and work with Iowa State University again so we use science and research-based recommendations," he said.

Wulfekuhle believes it's going to be another challenging year for producers from a profitability standpoint. IPPA has invested additional resources with the National Pork Board and increased its marketing efforts to promote and sell more pork. He also recognizes the industry may have tighter packing capacity next fall and winter and encourages producers to be sure to communicate closely with their packers.

First elected to the IPPA Board of Directors in 2012, Wulfekuhle says production and management experience are his primary strengths.

Wulfekuhle is president and majority owner of G & W Pork, a farrow-to-finish business with 1,600 sows. About 36,000 pigs are marketed annually to Tyson in Waterloo and another 4,000 are sold as maternal gilts. He also owns CNI Consulting and farms 500 acres of corn and soybeans. He was named a county and state Master Pork Producer in 1991.



Nebraska Cattlemen Representing at the 2016 Cattle Industry Convention and NCBA Tradeshow


Nebraska was well represented during the Cattle Industry Convention and the National Cattlemen's Beef Association (NCBA) Trade Show held in San Diego, California last week. More than 6,700 folks gathered under the sunshine to attend this year's convention. There was much to do during the days in San Diego from engaging in grassroots policy process, hearing from industry experts and browsing the vast trade show.

"After gathering together with producers from around the country I've realized that we may have different genetics, resources, and concerns, but we all have a passion for the cattle business and work hard to do our best for our livestock, land, consumers and families," Said NC President Barb Cooksley. "NCBA meetings always reinforce the fact, that we need the staff in Washington DC every day representing our interests and concerns to our elected officials.  With them doing their job, I can do mine at home!"

At the convention, several key beef industry leadership roles were filled by Nebraska Cattlemen members:
    Jerry Adams of Broken Bow, was elected to represent the North Plains for CattleFax
    Dawn Caldwell, Edgar, was elected to the Federation Operating Committee
    Steve Hanson, Elsie, was elected Chairman of the Federation of State Beef Councils
    Tom Jensen of Omaha, was appointed as Treasurer of CattleFax
    Joan Ruskamp, Dodge, was appointed Secretary Treasurer of the Cattlemen's Beef Board
    Craig Uden, Ellwood, was elected to become President Elect of NCBA

Congratulations to the Nebraska cattlemen and women that received awards for their hard work and dedication to the cattle industry:
    BQA Marketer Award - Scott Mueller, Samson, Inc. from Columbus
    2015 Top Hand Club Res. Champion with 80 Members - Melody Benjamin, Nebraska Cattlemen, Lakeside
    Top Recruiter for Revenue with $12,600 in dues - Melody Benjamin, Nebraska Cattlemen, Lakeside
        Top Hand Recruiters - Craig Uden 18; Mackenzie Johnston, 10; Bonita Lederer, 7; Dave Doeschot, 7; Brenda Masek, 3; Chris Schluntz, 3; Gregg Wiedel, 3; Barb Cooksley, 2; Bill Weaver, 2; Dick Hollman, 2; Joel Bruns, 2; Kurt Kruse, 2; and Mark Spurgin, 2.
    Beef Industry's 40 under 40 - Jaclyn Wilson, Flying Diamond Genetics, Lakeside
    BEEF Magazine National Stocker Award - Homer and Larry Buell, Shovel Dot Ranch, Bassett

In addition, Nebraska Cattlemen was one of eleven state affiliates to receive the "Outstanding Affiliate Award" presented by NCBA.



Iowans honored at National Cattlemen’s Beef Association Convention


Several Iowa cattle producers were honored at last week’s National Cattlemen’s Beef Association convention in San Diego.

Dave Petty, a cow-calf and small feedlot operator from Eldora, was honored for his work with NCBA’s Environmental Stewardship Awards Program (ESAP), which is celebrating its 25th year. Petty has played an important role in the program for many years, serving on the selection committee, engaging partners, and working to improve this program, which honors cattlemen who show exemplary environmental stewardship on their farms and ranches. “The Environmental Stewardship Award Program has been one of NCBA’s most successful programs for more than two decades,” said NCBA Immediate Past President Philip Ellis. “We are proud to have had the opportunity to honor Dave Petty for his leadership and the important role he has played to recognize and promote some of America’s best ranchers and their outstanding management practices.” Petty also serves as NCBA Region III Vice President and is a member of the NCBA Executive Committee.

Glenn and Bev Rowe of Lorimor were honored as the Region III Nominees for the Environmental Stewardship Awards Program. The Rowe family has shown a dedication to conservation and sustainability on their cow-calf operation, making improvements through the years that benefit the land and their livestock.

Ben Novak, Tama County cattleman, was recognized as the Region III Representative for the Young Beef Leader (YBL) program. The program is focused on education, engagement, networking and development of the next generation of beef industry leaders through engagement with NCBA’s state and breed affiliated organizations and incorporation into industry meetings and events.

Nodaway Valley Feeders owners Todd and Kristi Drake of Nodaway Valley won the beef checkoff’s annual national Beef Quality Assurance (BQA) Feedyard award. The award recognizes outstanding beef producers from across the country who incorporate BQA principles as part of the day-to-day activities on their operations.

Iowans also hold several leadership roles at the national level. Ed Grieman, feedlot operator from Garner, will continue in his role as chairman of the Cattle Marketing and Trade committee for NCBA. Scott McGregor, a cow-calf and feedlot operator from Nashua, was named co-chair of the Consumer Trust committee for the Federation of State Beef Councils and also serves on the Beef Promotion Operating Committee. Finally, Rock Valley feedlot operator, Kent Pruismann, continues his service on the executive committee for the Cattlemen’s Beef Board.

ICA is proud of the impact its members have at the local and national level and congratulates all those honored for their accomplishments.



CattleFax Elects Officers for 2016


New CattleFax officers for 2016 were elected at the organization’s annual business meeting Jan. 28, 2016, in San Diego Calif. Jeff Sparrowk, a cow/calf and stocker operator from Clements, Calif., was elected President. He has been actively involved in the National Cattlemen’s Beef Association, and has served as a past Chairman of that organization’s Marketing Committee. He is also a past President of California Cattlemen’s Marketing Committee.

President Elect is Todd Allen of Newton, Kan. Re-elected as Executive Vice President was Randy Blach of Centennial, Colo.  Jerry Adams of Broken Bow, Neb., was elected to replace Jerry Kuenning of Imperial, Neb., representing the North Plains. Dale Smith of Amarillo, Texas, was re-elected to a four-year term representing the Southwest region

Other Directors currently serving terms for CattleFax are Tom Jensen of Omaha, Neb., as Treasurer;  Jamie Willrett of Malta Ill.; Don Quincey of Chiefland, Fla.; Pono Von Holt of Kamuela, Hawaii; and Mark Frasier of Fort Morgan, Colo.

CattleFax is a member-owned organization that serves producers in all segments of the cattle and beef business. CattleFax is the global leader in beef industry research, analysis and information. Since 1968, the organization’s exclusive industry database has set the standard for market information and analysis. Visit www.cattlefax.com to learn more and become a member.




The U.S. Beef Consumer: Getting to Know This Complex Individual State by State


Five people may provide five different routes to the same destination, and each of those routes may eventually end at the final point. But which route makes the most sense when all of the factors are considered? When deciding how to spend beef checkoff dollars to maximize impact on consumer beef demand, it’s an important question.

Identifying who the beef consumer is and what they want is where it all starts. The national Consumer Beef Index (CBI) is an important tool in describing the beef consumer, according to John Lundeen, senior executive director of market research for the National Cattlemen’s Beef Association, a contractor to the Beef Checkoff Program.  Still, it obviously can’t explain everything about every consumer in every part of the country. In fact, when staff and boards at state beef councils take a look at the national numbers they may naturally wonder whether the picture represents their own beef consumers and the best route to reach them.

Nationally, the checkoff-funded CBI was started in 2006 as a “meaningful, actionable, data-driven national performance measure” to meet a beef industry Long Range Plan goal for a mechanism to track goals, according to Lundeen.  He says it has continued on a bi-annual basis through 2015, with 18 “waves” creating a combined national database of more than 19,500 consumers aged 13-65.

The CBI measures changes in consumer perceptions of, and demand for, beef relative to other meat proteins; consumer impressions of beef that could be attributed to the industry’s communications and advertising efforts; areas of relative strength and potential vulnerability for beef sales; and market dimensions having an impact on national communication strategies.

It paints effective pictures of U.S. beef consumers at the national level, Lundeen says, and has been important in the development of national checkoff-funded programs that address consumer demand for beef. But by itself the research doesn’t distinguish between consumers geographically. That’s why since 2007 states have been allowed to customize that index to determine how their consumers differ from national scores for behavior and beliefs regarding beef and its primary competitors.

“The state or regional scoreboards enable state beef council boards to pinpoint their unique areas of strengths or vulnerabilities for beef within their own geographies,” according to Lundeen. “They also identify specific regional competitive challenges, while allowing each to tailor in-market communications strategies to the local culture.”  Or the endpoint is to develop further confidence in rolling out national programs because that state’s consumers mirror national norms on most variables. 

 So, what are the nuances to date? Lundeen notes it might include how often consumers eat beef (consumers in beef production states tend to eat beef more often); the importance or reduced importance of production issues; competitive proteins (chicken is produced more commonly in some areas of the country); and distribution channels (big discounters are more prevalent in certain regions).

Larger differences do exist, however. Lundeen says he was interested to learn, for instance, that even within what are commonly thought of as “beef production states” there are some significant urban elements. “Every state has a preponderance of urban dwellers that dominate the population in that state,” he says. “While consumers in these urban areas are more knowledgeable on agricultural issues than consumers in, say, Los Angeles or New York City, they are still further removed from agriculture.

“Those are the kinds of things a council board really wants to know,” Lundeen says. “They’re trying to make smart decisions in that state, and this information can help them. They want to set some targets, and maybe close some gaps.”
 
A Welcome Tool

State beef councils have responded very well to the checkoff-funded information, which they can purchase at-cost through the national database.  “It does help us in directing our program,” according to Linda Bebee, vice president of domestic marketing for the Texas Beef Council. “Obviously, our total program isn’t based on [the CBI], but it is interesting to see.”

Bebee says the TBC will be using the results from 2013-15 CBI research in development of their 2017 programs. They have used results from previous CBI research in developing current and previous TBC marketing programs, comparing Texas numbers to the national ones and doing research to determine local differences within the state.

“It’s always hard to get state-specific information,” Bebee says. “We wonder if Texas consumers are different than those in other parts of the country. Are they different from those on the coasts? Are they different from those in the rest of the Beef Belt? Answers to those kinds of comparisons are good to know.”

In the northern U.S. similar questions have surfaced, which have motivated participation in the program. “We wanted to see how we compared to the rest of the world,” says John Freitag, executive director of the Wisconsin Beef Council. “We also wanted a benchmark from which we could build some programs. The CBI gave our programs some direction, and things to focus on.”

Freitag says the research delivers valuable information as the WBC attempts to maximize its value to beef producers in Wisconsin. “We need to better understand consumers in our state,” he says. “We think using the CBI gives us the best opportunity for making key checkoff-funded decisions. Furthermore, we can use the CBI information to show that we’re being accountable and using the dollars wisely. If we don’t have benchmarks, how are we going to know where the best returns are?”

Patti Brumbach, executive director of the Washington State Beef Commission, agrees, saying her council has been participating in the CBI program at the state level since 2007. She and her board rely heavily on information gleaned from it. “It’s a very important part of our marketing plan,” she says. “We use it both as a benchmark and to evaluate our programs. We use it so that we can understand how best to invest funds and to be accountable for what we set out to accomplish.”
 
Joining Forces

Not all states have the consumer population that makes it cost-effective to conduct individual state CBIs. Ann Marie Bosshamer, executive director of the Nebraska Beef Council, says her organization joined forces with councils in Missouri, Kansas and Iowa to acquire data that would help them in their marketing plans. By joining together the “MINK” states could gather information useful in their efforts.

“As a state we looked at it quite a while, but thought it was cost prohibitive,” according to Bosshamer. “But by joining forces with Missouri, Iowa and Kansas, our states can get data we need. And I’ve been very pleased with the results.

”It’s definitely a valuable tool for us,” adds Bosshamer. “It shows us what the consumers know, and what they don’t know. It’s something we need to continue.”

In December Lundeen presented results from the MINK research to the participating states. Prior to that Bosshamer met with staff leaders from the other states to “discuss ways to partner on a variety of programs. We want to look at what we’re doing well, and in what areas we need to work harder,” she says.

States utilize the information they obtain in ways that are meaningful to their own volunteer producer state boards. For instance, the Wisconsin Beef Council used CBI information that suggested consumers in that state appreciate small meat markets to form a promotion partnership with the Wisconsin Association of Meat Processors. “Each state has different needs,” says WBC’s Freitag. “We all have to look for partnerships that make the most sense for programs and producers in our state.”

“Some states are using it to make their boards more knowledgeable, or to set key tracking goals,” according to Lundeen.  “Being able to divide this information for states was a creative solution to let them look at consumers within their own states.”

Bebee says that other research besides the CBI is crucial to planning – research in nutrition communications, for example. That information is conducted nationally through the Beef Checkoff Program and shared at the state level. WBC’s Freitag says they have used this kind of research to work with his state’s heart association and other health groups to promote beef’s value.
 
Bottom Line

According to Brumbach, CBI information is the kind of third-party research crucial to an industry that sometimes has a skewed perspective. “When you’re from the industry, you’re not objective,” she says. “We’re just too close to our product and our work. Being involved in the CBI allows us to see the consumer objectively, and plan and act accordingly. We need to remember that what we do starts and ends with the consumer.

“It’s important to remember that understanding the consumer is foundational for us,” she says. “If we don’t understand the consumer, we’re out of business.”



NCBA and PLC Accepting Applications for Two Summer Positions


The National Cattlemen’s Beef Association and the Public Lands Council’s government affairs office in Washington, D.C., is accepting applications for a 2016 summer  public policy intern as well as a summer law clerk. The deadline to submit an application for either position is Feb. 24, 2016.

NCBA Executive Director of Government Affairs Kristina Butts said these internships are a great opportunity for students with an interest in the beef industry and public policy.

“The internship gives college students the opportunity to work alongside staff on a range of issues that impact U.S. cattlemen and women,” Butts said. “Our interns work closely with the lobbying team on Capitol Hill and assist with NCBA and PLC’s regulatory efforts, providing college students a one-of-a-kind view into the policy making process. The interns are valuable team members that help staff on several fronts.”

Producer-led and consumer-focused, NCBA is the nation's oldest and largest national organization representing America's cattle producers. PLC is the only organization in Washington, D.C., dedicated solely to representing cattle and sheep ranchers that utilize federal lands. The organizations work hand-in-hand on many issues, sharing office space in the heart of the nation's capital.

The public policy internship will give students an opportunity to learn about career options and provide practical experience. From tax and trade to environmental and food safety regulations, interns will work on a variety of issues and have the opportunity to work specifically in the area of their interest. College juniors, seniors and graduates students are encouraged to apply.

The summer law clerk will provide support to NCBA’s Environmental Counsel on issues relating to environmental legislation and regulations that impact beef producers. The position will also work closely with the Executive Director of the Public Lands Council on issues relating to Federal lands management, grazing, and the Endangered Species Act. To apply for the law clerk position, students must currently enrolled in an ABA-accredited law school.

The full-time internship and law clerk positions will begin May 23, 2016 and end August 19, 2016. To apply for the public policy internship or law clerk position, visit www.beefusa.org.



As U.S. Signs Trans-Pacific Partnership, ASA Calls on Congress to Pass TPP This Year


In a ceremony today in New Zealand, the United States signed the Trans-Pacific Partnership and formally enabled the Obama Administration to begin the process of writing legislation for Congress to approve the pact later this year. The American Soybean Association (ASA) is a leading supporter of the TPP agreement, which represents more than a third of the world's gross domestic product, and both emerging and major soybean export markets along the Pacific Rim. ASA President Richard Wilkins, a farmer from Greenwood, Del., reiterated the association's support and encouraged Congress to press through election-year rhetoric and get to work on the TPP in 2016.

"With valuable, established markets alongside promising emerging markets, the 11 partner nations within the TPP combine to make this one of our most significant policy priorities right now. We are absolutely committed to the full-court press that we'll need to move it across the finish line this year. We know that the election makes everything harder, but this is important enough that we're ready to do whatever it takes. What we need from Congress is a commitment to move beyond the shortsighted focus on November and see what this agreement means for our economy, both in rural communities and nationwide. It means increased demand at home and abroad, which drives exports, which support jobs and economic activity all across the country. Election year or not, the TPP is a no-brainer."



Wheat Grower Organizations Welcome TPP Signing, Look for Rapid Congressional Review


The signing of the 12 nation Trans-Pacific Partnership (TPP) today in New Zealand marks another step toward putting the world’s largest free trade agreement into action. National Association of Wheat Growers (NAWG) and U.S. Wheat Associates (USW) welcome this step and now call for rapid consideration and eventual ratification of TPP by Congress.

"Wheat growers are "all-in" regarding the promise of the Trans-Pacific Partnership," said NAWG President Brett Blankenship, a wheat farmer from Washtucna, Wa. "Expanding sales and market share are important pillars to help revitalize the wheat industry. Now the ball is in Congress’ court and NAWG urges Congress to act quickly.”

A number of national and state wheat grower association members visited congressional offices this week to stress their support for the agreement. That is because wheat is the most export-dependent grain commodity grown by U.S. farmers. South Asia and Latin America represent growing, but highly competitive markets for our production. When implemented, TPP will have a significant positive impact on American wheat producers and on our country’s export supply industry.

“We need swift consideration and approval because every day that implementation is delayed, we face tariff disadvantages that undercut our ability to compete in established and new markets,” said USW Chairman Brian O’Toole, a wheat farmer from Crystal, N.D.

With duty-free access under its free trade agreement with Vietnam, for example, Australia currently enjoys a $12 to $15 per metric ton price advantage over U.S. wheat. U.S. wheat exports are at a tariff disadvantage in a number of other countries that want to join TPP but cannot apply for membership until after Congress and the governments of the 11 other countries ratify the agreement.

TPP is American agriculture’s platform for success in the expanding global market for years to come. As soon as possible after the implementing legislation is introduced, Congress should complete its reviews and take its up or down vote on TPP.



Some U.S. Farmers Urge Congress to Stop TPP


The U.S. Trade Representative today signed the Trans-Pacific Partnership (TPP), and a national organization representing farmers and ranchers from coast to coast is calling on Congress to block the giant trade pact.

“TPP is modeled after the failed deals of the past, and it is destined to fail,” explained Roger Johnson, president of the National Farmers Union.  “Those past deals worsened America’s trade deficit, did nothing to stop our foreign competitors from cheating the system, and failed to live up to a long list of promises.”

Once signed by the Administration, TPP will eventually be delivered to Congress for a debate and an up-or-down vote without amendments.  Johnson and NFU members in all 50 states are urging Congress to take its time during the examination process and to ultimately reject the deal.

“The more people learn about TPP, the more they dislike it,” Johnson noted.  “It’s soft on enforcement, it fails to reign in predatory trade practices abroad, and it does nothing to improve America’s trade balance.”

Johnson, who testified before the U.S. International Trade Commission last month, told government officials that TPP needs better mechanisms to hold trading partners accountable for promises made and should focus on improving the U.S. trade balance instead of simply reducing tariffs.

The U.S. trade deficit soared to $508 billion in 2014, up 6 percent from the previous year, despite trade deals with 20 countries, he testified.  And this trade imbalance, he explained, is a major hurdle to economic and job growth.

“TPP is a bad deal for rural and urban America alike,” Johnson said immediately after the pact was signed.  “We encourage all members of Congress to carefully read the text and ask the hard questions that have, thus far, gone unanswered.  Once they do, we believe legislators will vote no and demand better negotiations in the future.”



NFU Statement on Syngenta Merger


In response to today’s merger announcement by Syngenta AG and China National Chemical Corporation, National Farmers Union (NFU) President Roger Johnson released the following statement:

“Today’s announcement is cause for concern among everyone in U.S. agriculture, especially farmers. NFU will pay particularly close attention to the alarming trend of Chinese government-owned entities purchasing U.S. and other agricultural companies. Most recently, Chinese company Shuanghui International acquired U.S. pork producer Smithfield.

“In this case, Syngenta would be owned by a company controlled by the Chinese government. For an increasingly consolidated sector of agriculture, this is of particular concern since state-owned businesses frequently do not act in economically rational or predictable ways.  As a result, more uncertainty often surrounds their businesses, and consequently, other competing businesses may be adversely affected.

“While NFU is pleased that Syngenta will maintain its North American presence for the sake of competition in the marketplace, we will continue to review the impact this deal may have on the competitiveness in U.S. agriculture. NFU is especially concerned that yet another merger will trigger additional domestic consolidation of the remaining seed and crop protection companies.

“We urge the Committee on Foreign Investment in the United States (CFIUS) to review this transaction to the fullest capacity of its jurisdiction for its impact on national security.”



ADM May Sell Off Ethanol Plants


When Archer Daniels Midland opened two of the country's largest ethanol plants in Nebraska and Iowa six years ago, the biofuels market was on the cusp of a boom with prices and profits on the rise. But now, the plants are more of a headache for the Chicago-based company, considered an industry pioneer, amid crushed margins and weak prices as the financial success of its almost 40-year- old business fades.

In the industry's first major capitulation to depressed market conditions, ADM's chief executive, Juan Luciano, on Tuesday said he would consider options, including a sale, for those two plants as well as another in Peoria, Illinois. Reuters reports that the three dry-mill ethanol plants, some of the largest in the country, represent just under half of ADM's 1.8-billion-gallon-per-year U.S. ethanol capacity.

The news came as ADM blamed weaker-than-expected quarterly profits on poor ethanol margins and depressed U.S. grain exports, sending its shares tumbling almost 9 percent for their worst day in 6-1/2 years.

The review also comes as the 114-year-old company continues to shift its focus on developing new food ingredients as domestic demand for gasoline additive ethanol is forecast to remain flat over the next decade.

ADM is not alone as sinking ethanol prices and relatively stable corn prices squeeze margins and as crude oil prices tumbled to their lowest level in over a decade. Last week, Valero Energy Corp, one of the largest U.S. producers, reported a 76 percent plunge in income from its ethanol business in the final four months of last year.



Massey Ferguson Introduces 4700 Series Utility Tractors


Massey Ferguson®, a global brand of AGCO Corporation (NYSE:AGCO), will introduce North American producers to the highly anticipated and all-new 4700 Series heavy-duty utility tractors during the 2016 National Farm Machinery Show. The 4700 Series tractors stand out within the utility tractor market because they are designed with the weight, power, durability, and lift capacity to manage heavier, larger implements, draft work and other tough, demanding jobs.

“Producers have been waiting for a real tractor of this size, with this kind of performance, for a long time,” says Warren Morris, tactical marketing manager, Under 140 HP Tractors. “Many are looking for a new tractor in this horsepower range to use for more traditional field work and one that offers the pulling power and lift capacity they need for a reasonable price. The 4700 Series fills that need and delivers on Massey Ferguson’s world-wide reputation for power, endurance, value and ease of use.”

Three introductory models of this Tier 4 Final Series are the 4708 (80 HP), 4709 (90 HP) and 4710 (100 HP) open-station, 2WD and 4WD configurations. The 4700 Classic was developed for stability, versatility and operator comfort, offering a standard 8 x 8 or 12 x 12 Synchro-shuttle transmission. All Deluxe Edition models are equipped with a 12 x 12 Power-shuttle transmission plus other features to increase productivity. Cab models will be introduced soon.



AGCO Reports Lower Sales in 2015


Agco Corp. on Tuesday said its profit slumped 20% in the fourth quarter as sales fell across all of its geographic regions. The agricultural equipment maker said it anticipates its results for the year to reflect softer industry demand for farm equipment across all regions and the unfavorable effects of foreign currency translation.

The company reported that its gross and operating margins are projected to be below 2015 levels due to the impact of lower sales and production volumes, a weaker sales mix and increased investment in product development expenses. The company, however, backed its previously issued earnings and revenue guidance for 2016.

For the quarter, the company reported a profit of $62.1 million or 73 cents a share, down from $77.6 million, or 85 cents a share, in the year-earlier period. Excluding items, the company reported per-share earnings of 80 cents compared with $1.18 a year ago.



USDA Finalizes New Food Safety Measures to Reduce Salmonella and Campylobacter in Poultry


The U.S. Department of Agriculture's (USDA) Food Safety and Inspection Service (FSIS) today announced the finalization of new federal standards to reduce Salmonella and Campylobacter in ground chicken and turkey products, as well as in raw chicken breasts, legs, and wings. Based on scientific risk assessments, FSIS estimates that implementation of these standards will lead to an average of 50,000 prevented illnesses annually.

As part of this move to make chicken and turkey items that Americans frequently purchase safer to eat, FSIS has also updated its microbial testing schedule at poultry facilities and will soon begin posting more information online about individual companies' food safety performance.

"Over the past seven years, USDA has put in place tighter and more strategic food safety measures than ever before for meat and poultry products. We have made strides in modernizing every aspect of food safety inspection, from company record keeping, to labeling requirements, to the way we perform testing in our labs," said Agriculture Secretary Tom Vilsack. "These new standards, in combination with greater transparency about poultry companies' food safety performance and better testing procedures, will help prevent tens of thousands of foodborne illnesses every year, reaching our Healthy People 2020 goals."

FSIS uses pathogen reduction performance standards to assess the food safety performance of establishments that prepare meat and poultry products. By making the standards for ground poultry tougher to meet, ground poultry products nationwide will have less contamination and therefore result in fewer foodborne illnesses. FSIS implemented performance standards for whole chickens in 1996 but has since learned that Salmonella levels increase as chicken is further processed into parts. Poultry parts like breasts, wings and others represent 80 percent of the chicken available for Americans to purchase. By creating a standard for chicken parts, and by performing regulatory testing at a point closer to the final product, FSIS can greatly reduce consumer exposure to Salmonella and Campylobacter.

"This approach to poultry inspection is based on science, supported by strong data, and will truly improve public health," said USDA Deputy Under Secretary for Food Safety Al Almanza. "The new performance standards will complement the many other proactive, prevention-based food policies that we've put in place in recent years to make America's supply of meat and poultry safer to eat."

For chicken parts, ground chicken, and ground turkey, FSIS is finalizing a pathogen reduction performance standard designed to achieve at least a 30 percent reduction in illnesses from Salmonella. For chicken parts and ground chicken, FSIS is finalizing a pathogen reduction performance standard designed to achieve at least a 32 percent reduction in illnesses from Campylobacter. Because FSIS has found the prevalence for Campylobacter in ground turkey to be already low, the reduction for this product is estimated to be 19 percent.

After these standards were proposed in early 2015, FSIS began to use routine sampling throughout the year rather than infrequent sampling on consecutive days to assess whether establishments' processes are effectively addressing Salmonella and Campylobacter. Once establishments have completed a full set of testing under the new standards, the agency will also begin posting online which facilities pass, meet or fail the new standards.

An estimated 1.2 million foodborne illnesses are thought to be caused every year by Salmonella, with approximately one-third or 360,000 of those illnesses attributed to FSIS-regulated products. In 2013, the agency released a Salmonella Action Plan, which created a blueprint for the agency to address this pathogen of significant public health concern. Today's announcement fulfills the major steps that FSIS had outlined in its plan.



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