Wednesday, April 6, 2016

Tuesday March 5 Ag News

NEBRASKA CROP PROGRESS AND CONDITION

For the week ending April 3, 2016, temperatures varied widely throughout Nebraska, according to the USDA’s National Agricultural Statistics Service. Parts of the Panhandle experienced below normal temperatures, while large portions of eastern Nebraska experienced temperatures up to five degrees above normal. Precipitation, consisting of both snow and rain, covered the northern two thirds of the State. The wet conditions inhibited fieldwork activities. There were 4.4 days suitable for fieldwork. Topsoil moisture supplies rated 4 percent very short, 16 short, 76 adequate, and 4 surplus. Subsoil moisture supplies rated 3 percent very short, 17 short, 76 adequate, and 4 surplus.

Field Crops Report:

Winter wheat condition rated 0 percent very poor, 3 poor, 37 fair, 51 good, and 9 excellent.

Oats planted was at 20 percent, behind 33 last year and 26 for the five-year average.

Livestock Report:

Cattle and calf conditions rated 0 percent very poor, 1 poor, 8 fair, 75 good, and 16 excellent. Calving was 64 percent complete. Cattle and calf death loss rated 1 percent heavy, 67 average, and 32 light.

Sheep and lamb conditions rated 0 percent very poor, 0 poor, 10 fair, 84 good, and 6 excellent. Sheep and lamb death loss rated 0 percent heavy, 75 average, and 25 light.

Hay and roughage supplies rated 0 percent very short, 5 short, 90 adequate, and 5 surplus.

Stock water supplies rated 1 percent very short, 4 short, 94 adequate, and 1 surplus.


Access the National publication for Crop Progress and Condition tables at: http://usda.mannlib.cornell.edu/usda/nass/CropProg/2010s/2016/CropProg-04-05-2016.pdf

Access the High Plains Region Climate Center for Temperature and Precipitation Maps at: http://www.hprcc.unl.edu/maps.php?map=ACISClimateMaps

Access the U.S. Drought Monitor at:
http://droughtmonitor.unl.edu/Home/StateDroughtMonitor.aspx?NE



IOWA CROP PROGRESS & CONDITION REPORT


 Cool temperatures and rain hampered field work during the week ending April 3, 2016, according to the USDA, National Agricultural Statistics Service. Statewide there were 2.3 days suitable for fieldwork. However the northern one-third of Iowa, as well as the southeast corner, had less than 2.0 days suitable for fieldwork. Producers continued to apply dry fertilizer, manure, and anhydrous when able.

Topsoil moisture levels rated 0 percent very short, 1 percent short, 81 percent adequate and 18 percent surplus. Subsoil moisture levels rated 0 percent very short, 1 percent short, 86 percent adequate and 13 percent surplus. Northwest Iowa reported the highest surplus subsoil moisture level at 26 percent, with standing water in some low areas.

Thirteen percent of oats have been planted, equal to last year’s progress, but 3 days behind the 5-year average.

Pasture condition rated 1 percent very poor, 6 percent poor, 38 percent fair, 49 percent good and 6 percent excellent. Pastures were starting to green but reporters haven’t seen much growth yet. Livestock conditions were described as normal for the week. Calving and lambing activities were on-going.



IOWA PRELIMINARY WEATHER SUMMARY

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


Iowa experienced a fairly typical early spring week with widely fluctuating temperatures, frequent windy conditions and occasional showers and thunderstorms. The reporting week began with temperatures in the twenties and low thirties on Monday (28th) morning with lowest readings down to 20 degrees at Audubon, Chariton and Grinnell. Tuesday (29th) was warmer with showers and thunderstorms moving into northwest Iowa during the afternoon. Rain and cloud cover kept northern Iowa cool and damp on Wednesday (30th) while temperatures climbed into the seventies over the south where thunderstorm activity was more scattered. Some large hail was reported from a few areas of west central and central Iowa on Wednesday evening as colder air moved into the area. Thursday (31st) was seasonably cool with light to moderate rain statewide. Mostly cloudy skies, with some light rain, kept highs only in the forties over most Iowa on Friday (1st). Saturday (2nd) was sunny, cold and very windy. High temperatures Saturday were only in the upper thirties over northern areas while winds gusted to over 50 mph across the state with a top wind gust of 60 mph recorded at the Ottumwa Airport. Sunday (3rd) began cold with temperatures as low as 21 degrees at Britt. However, strong southerly winds gusting over 40 mph brought much warmer air into the state during the day on Sunday with temperatures soaring forty to fifty degrees above the morning lows by the afternoon. Little Sioux reported the state’s highest temperature at 85 degrees with all of Iowa reaching at least the mid-seventies. Much colder air began filtering into the state later Sunday with a few isolated thunderstorms during the evening with a wind gust to 70 mph at the Iowa City Airport. Temperatures for the week as a whole averaged 3.3 degrees above normal (slightly cooler in the east and warmer in the west). Weekly precipitation totals varied from only 0.02 inches near New Market in Taylor County to 1.66 inches near Badger in Webster County. The statewide average precipitation was 0.68 inches, or just slightly greater than the weekly normal of 0.62 inches. Soil temperatures at the four inch depth were averaging in the low forties northeast to upper forties southwest as of Sunday (3rd).



NEBRASKA HALL OF AGRICULTURAL ACHIEVEMENT TO HONOR 4, ELECT NEW MEMBERS


    The Nebraska Hall of Agricultural Achievement will honor Doris and Ivan Rush, Doug Gibson and Frank Johannsen at a banquet at 6 p.m. April 8 in the Great Plains Room of the Nebraska East Union, 1705 Arbor Drive.

    Formed in 1916, the hall of achievement is dedicated to preserving and improving the state's agriculture. Each year, the group recognizes at least one honoree and elects new members.

    Doris Rush is a longtime advocate for Nebraska agriculture. She has been active in the Nebraska CattleWomen and the American National CattleWomen since 1972. Rush has also promoted beef as a member of the National Cattlemen's Beef Promotion and Research Board.

    Ivan Rush was a beef extension specialist at the University of Nebraska-Lincoln Panhandle Research and Extension Center for 40 years, which provided him a venue to serve agriculture and the beef industry. He had state and national leadership roles for implementation of Integrated Resource Management in the beef cattle industry. His involvement greatly impacted productivity of cow/calf operations. Rush was on the planning committee of the Range Beef Cow Symposium, one of the most respected production-level beef cow/calf meetings in the nation.

    The Rushes have also contributed to 4-H. Ivan Rush has been a 4-H leader in Scotts Bluff County for 40 years, and his wife was a 4-H leader for 35 years.

    Doug Gibson was chief administrator and secretary-treasurer of the Nebraska Farm Bureau and Affiliated Companies from 1981 until his retirement in 2009. During that time, the Nebraska Farm Bureau more than doubled its membership, expanded programs and elevated its public policy for agriculture.

    Gibson spent six years as director of the Nebraska 4-H Foundation, six years as a director of the Nebraska Agricultural Leadership Council and many years as a presenter at the final seminar for each class in the Nebraska LEAD program.

    Since 2010, Gibson has been the secretary to Agriculture Builders of Nebraska, which works with the Institute of Agriculture and Natural Resources at UNL.

    Frank Johannsen is a native of the Bayard area and still lives on the dryland wheat farm his father started in an area known as Goodstreak. He is one of the founding members of the Nebraska Wheat Growers Association. The group was instrumental in establishing the wheat check-off program in 1955, which was the first commodity check-off program in Nebraska. Johannsen was named the Nebraska Wheat Growers Man of the Year in 1969, state president in 1975 and National Wheat Growers president in 1988.

    Johannsen also worked closely with the UNL Panhandle Research and Extension Center in Scottsbluff, providing land and support for research and demonstrations. In recognition of his efforts to help the research staff identify a wheat adapted to his part of the state, the variety "Goodstreak" was released by UNL in 2002.

    This year's new Nebraska Hall of Agricultural Achievement members, listed by hometown, are:


    > Belden: Jim Miller is a fourth-generation family farmer with his sons. He is on the board of directors for the American Soybean Association and is vice president of the U.S. Soybean Export Council.

    > Friend: David Bruntz is co-owner of a cattle operation. He is a founding member of the Beef Pit, Nebraska Cattlemen and Pit Boss. Bruntz has been on the board and as president of the Exeter Feeders Association and Nebraska Cattlemen.

    > Hastings: Dee Griffin is a professor and beef feedlot management veterinarian at the Great Plains Veterinary Educational Center. He is active in the American Association of Bovine Practitioners, National Cattlemen's Beef Association, and the Beef Quality and Safety Taskforce and Advisory Board.    

    > Leigh: Charles Folken is a cattle feeder and farmer at Folken Feed Yards. He is chair of the Property Rights and Environmental Management Committee of the National Cattlemen's Beef Association. He is also active in the Nebraska Cattlemen, being on the board for seven years including as president.

    > Lincoln: Robert Graybosch is a supervisory research geneticist with the USDA Agricultural Research Service, where he is the research leader of the Grains, Forages and Bioenergy Research Unit. He has participated in the development and release of numerous winter wheat germplasm lines and cultivars that jump-started the white wheat industry in Nebraska.

    > Mitchell: Dennis Strauch is the manager of Pathfinder Irrigation District. He is recognized throughout the state as a champion for western Nebraska irrigation and as an advocate for a realistic and balanced approach to water use in the region. Strauch was part of the 49-member state Water Policy Task Force that eventually led to LB962.

    > O'Neill: Gary Stauffer is a Nebraska Extension educator in Holt and Boyd counties. He provides leadership in the areas of livestock production, crop production, grazing management and youth development.

    > Seward: Merlyn Nielsen has contributed to Nebraska agriculture through research, teaching and service as the Kermit Wagner Distinguished Professor of Animal Science. He has taught graduate and undergraduate courses in animal breeding, experimental design and analysis of breed resource evaluations and selection, and popular genetics for more than 40 years.

    > York: Jerry Stahr is an active member of the York County Extension Board, York County 4-H Council and other community organizations. He participated in the Nebraska LEAD Program and was on the LEAD Alumni Board. Stahr is on the board of directors of Agriculture Builders of Nebraska.



Protecting our groundwater is a matter of local control


The Lower Elkhorn Natural Resources District (LENRD) Board of Directors approved changes to its Groundwater Management Area rules and regulations that now require LENRD approved flow meters on all active irrigation wells within the district by January 1, 2018.  The LENRD has approved five flow meters for installation.

The LENRD does promote technology as a tool to help with water efficiency.  The flow meters, in conjunction with technology, provide a complete package that also accounts for water management.  Technology alone does not provide the management component needed for a limited resource like water.  During times of prolonged drought, soil moisture probes will continually tell you to apply water, even after the aquifer that is the source of the water is depleted.  In 2012, these very conditions existed causing district-wide problems with water shortages.  LENRD General Manager Mike Sousek, said, “The meter may not be the best tool for efficiency, but it’s the only tool that measures water accurately.  These measurements can be used to defend the district from outside pressures downstream, or can be used in allocations when the water resource must be shared and shared alike.”

The aquifer system in northeast Nebraska has shown a propensity to recover from seasonal demands.  Static water levels do return to predevelopment levels in the spring of most years.  However, the district has seen that over periods of time dealing with continued drought (such as from 2002 to 2006), the aquifer system does not return to predevelopment levels but rather starts a downward trend suggesting mining of water is occurring.  For this resource to be around for future generations, proper management frameworks must be in place to counteract water mining and to protect the very geology that allows for the storage of water.  LENRD Water Resources Manager, Brian Bruckner, said, “In-season declines and their negative impacts to all groundwater users are something that can never be represented or predicted by only looking at static water levels.  A spike in water use, and the overlapping cones of depression that can develop after prolonged pumping, caused in-season shortages to occur during 2012, even in areas where water levels had recorded all-time record highs in the spring of 2010.  Spring water levels are a necessity and a valuable resource for the district, but they are representative of our groundwater conditions when the system is essentially ‘at rest’ and supply is at its greatest.  It is a snapshot in time. I would also point out the recent legislative efforts in California to address the groundwater mining that is occurring in that state.  My interpretation of their future plan is that they have adopted the Nebraska model for future management.  The value of the NRD system and local control is priceless.”  Bruckner added, “There hasn’t been any other organization that has been a stronger advocate for groundwater users in this state than the NRDs.”

Installing meters ensures everyone's water usage is measured accurately and equitably.  This will protect all groundwater users the next time we have a shortage of water.  LENRD board member, Joel Hansen of Wayne, said, “A water meter doesn't vary depending upon well pressure.  It leaves no legal avenue to challenge a regulation on how much water is pumped because it measures exactly what passed through the pipe over a given period of time.  As we continue to develop this precious resource those given the responsibility by the State of Nebraska to manage groundwater, the NRDs, need to be prepared to ensure everyone has the ability to flush their toilet, bathe in their own house, and drink their own water.  The Groundwater Ethic must be more than just words and good intentions.  The cost of using that groundwater must include the costs to share it.”

LENRD Board Chairman, Danny Kluthe of Dodge, added, “The meters are a management tool for drought years, they allow continued expansion of irrigated acres, and they provide hard data to defend the district from outside influences who do not have the interest of northeast Nebraska in mind.  Which is why local control is so important.”  He continued, “We can continue to highlight the differences between efficiency and management.  While efficiency is important, the responsibility of the district is to manage groundwater.” 

“The NRDs have been keeping Nebraska local since 1972.”  Sousek continued, “The locally-led districts play a vital role in the checks and balances of water regulation in our state.  We take that responsibility seriously and are diligent in making sure our water resources – and all natural resources – are used wisely and are protected for future use by generations of Nebraskans.”  He said, “The NRDs have been very effective in protecting the lives and property of our constituents and the future of our natural resources that are so important to the quality of life we enjoy in Nebraska.”

“The LENRD encourages all those effected by groundwater (all of us) to participate in the meetings and discussions that have been happening for the past 44 years.”  Sousek, said, “As we come to have a better understanding of the characteristics of our geology, the capacity of our water, the problems that have been experienced throughout the nation, and our ability to learn lessons from other districts around us, our groundwater management plan will continue to evolve.  Requiring meters happens to be the latest evolution of a document that will continue to change as our world changes.  I would encourage the public to continue to learn about this issue, to engage with the LENRD to fully appreciate all the various aspects that must be considered when managing water - a precious and valuable resource.  It’s the very thing providing life to everything that northeast Nebraska has grown to love.”

For more information, contact the LENRD or visit their website at www.lenrd.org.



WRAPPING HAY TO BEAT THE WEATHER

Bruce Anderson, NE Extension Forage Specialist


               Does rain often damage your high quality hay just before it’s ready to bale? There’s a baling method that may help solve that problem.

               Rain plays havoc with hay quality.  Even when you study weather reports and do your best to cut when good drying weather is expected, just before your hay is ready to bale, it gets damaged by rain.

               So what are your options when dark clouds are on the horizon and your hay still is a little too wet?  Well, you could go ahead and bale that tough hay and hope – hope that it doesn’t spoil, or even worse, get hot and burn.  Or you can wait out the storm and cross your fingers that you get good moisture for your row crops but it skips over the hay fields.

               There is another option.  Maybe you bale it tough, then wrap it with stretch wrap plastic to keep water and air out while keeping nutrients in.

               Studies have shown excellent success wrapping bales containing twenty-five to forty percent moisture.  After a full year in storage, the hay came out of the wrapping in great shape, with very little storage loss, a nice silage-like odor, and well-preserved nutrients.

               Wrapping tough hay reduces weather risk because wrapping often occurs a day sooner than normal baling.  Both yield and forage quality can be higher because fewer leaves are lost than with dry hay.

               It does take a lot of plastic, though.  Six or seven layers are needed to maintain feed quality.  If you don’t use enough plastic or fail to repair any holes, this kind of hay can spoil very fast.

               Wrapping slightly tough hay in plastic can improve your forage quality and reduce weather losses.  If rain damage often plagues your hay making, it might be worth looking into.



Webinar Features the Women, Land & Legacy project


The regular monthly Iowa Learning Farms webinar is Wednesday, April 20 at 1 p.m. This month’s guest speakers are Wren Almitra, Women, Land & Legacy coordinator, and Tanya Meyer-Dideriksen, NRCS area easement specialist.   

Women, Land & Legacy is a USDA outreach project that gives agricultural women in Iowa the opportunity to network with other local women landowners, to inform agencies of their needs and to become a well-informed decision maker for their land and farming operation. The program is led through local teams in 24 Iowa counties and has successfully reached more than 3,000 individuals to date. These local teams create a network of agricultural women who decide what programs, projects and information they specifically need to assist them in farming and conservation decision making. The presentation will cover the program’s statewide presence and how new counties can become involved in Iowa as well as in other states.  

The ILF webinars are held on the third Wednesday of each month at 1 p.m. They are free, and all that is needed to participate is a computer with Internet access. To log in, go to https://connect.extension.iastate.edu/ilf/ at 1 p.m. on the afternoon of the webinar and log in through the “guest” option. Webinar participants will be able to converse with Almitra and Meyer-Dideriksen by typing their questions through the chat function. The webinar will be recorded and archived on the ILF website for viewing at any time at www.extension.iastate.edu/ilf/Webinars/.

ILF has hosted a webinar every month since January 2011. To date, there are 63 webinars to view on a wide range of topics including soil erosion, water quality, cover crops, buffers, bioreactors and farmer perspectives.



Survey of Antibiotic Residues in Milk Finds Continuing Improvement


Dairy farmers continued in 2015 to improve their already stellar track record of keeping antibiotic residues out of the milk supply, with the most recent national survey finding that 99.99% of all bulk milk tankers had no violative levels of animal antibiotic drug residues. On-farm vigilance in following drug withdrawal times has led to a steady decline in detectable antibiotic residues, with 2015’s figure of 0.012% of violative tankers declining from an already low level of 0.038% in 2005 – a decline of nearly 70% in the last decade. All milk loads are tested for antibiotics, and any tanker that tests positive for a drug residue is rejected before entering a dairy plant and does not enter the market for human consumption.

These figures are based on information reported to FDA’s National Milk Drug Residue Data Base by state regulatory agencies under the National Conference on Interstate Milk Shipments. Data are reported on the extent of the national testing activities, the analytical methods used, the kind and extent of the animal drug residues identified, and the amount of contaminated milk that was removed from the human food supply.



U.S. Ethanol Production Expected to Decrease


Ethanol production in the United States is based almost entirely on corn as a feedstock. And that means corn-based ethanol production is projected to fall over the next 10 years, according to a USDA report.

This reflects declining overall gasoline consumption in the nation, which is mostly a 10-percent ethanol blend, infrastructural and other constraints on growth for E15.

Even with the U.S. ethanol production decline, demand for corn to produce ethanol continues to be strong.

While the share of U.S. corn expected to go to U.S. ethanol production falls, it accounts for over a third of total U.S. corn use throughout the projection period.



2016 Commodity Classic Session Videos Now Available


For those who attended the blockbuster 2016 Commodity Classic in New Orleans, and even for those did not have the opportunity, a video library is now available online that offers complete recordings of more than two dozen educational sessions and the popular General Session.

Commodity Classic attendees will find the video library a great way to refresh their memory regarding the sessions they attended, and they also can experience sessions they may have missed. This library can help growers all year long to brush up on best practices, continue professional development, or share industry-leading information with others.

2016 Commodity Classic registration includes free online access to the recorded educational sessions from the days registered. Videos from days in which people were not registered are available for purchase, and all streaming videos are available to the general public for purchase as well.

The General Session video, featuring U.S. Agriculture Secretary Tom Vilsack and a roundtable discussion of hot topics facing production agriculture, is provided free of charge for all viewers.

Click here for the website and more information on registering and viewing the videos. Commodity Classic attendees need their badge numbers to access the free videos... http://commodityclassic.sclivelearningcenter.com/



Applications for Farm Bureau Women's Communications Boot Camp Accepted Through May 10


The American Farm Bureau Federation is now accepting applications for its tenth Women's Communications Boot Camp; class, July 12 - 15 in Washington, D.C.

The three-day intensive training is open to all women who are Farm Bureau members. The program focuses on enhancing communication and leadership skills and includes targeted training in the areas of public speaking, media relations, messaging and advocacy.

Sherry Saylor, an Arizona row crop farmer and chair of the AFB Women's Leadership Committee; believes strongly in the benefits of the program.

"Our evaluations indicate this training is vital for helping Farm Bureau women successfully use communication tools and step out of their comfort zones to address key agricultural topics," Saylor said.

"It is imperative that farmers and ranchers continue to be transparent about what we do to produce food," she continued. "The women who participate in boot camp gain the necessary confidence and become powerful advocates in their communities across the nation, allowing the expansion and extension of positive messages about agriculture."

Saylor added that women are already outstanding spokespeople for agriculture and they can have an even greater influence when speaking with the public and telling their story via social media.

Fifteen women will be selected to participate in this year's program, which is sponsored by the AFBWLC. Applications are available online; or through state Farm Bureaus. The deadline for submissions is May 10. All applicants will be notified of their status by June 1.

The American Farm Bureau Women's Leadership program provides women with the training and education they need to encourage positive change in their communities and within agriculture. For more information, visit www.fb.org.



The Small Engine Industry Needs to Change with the Times

National Corn Growers Association CEO Chris Novak

The Outdoor Power Equipment Institute (OPEI), which represents the small engine industry, just released their annual survey results concerning consumer knowledge of small engine fuel options.  Based upon the results of the survey, corn farmers and small engine manufacturers can agree that consumers need and deserve more information about today's fuel options.  We know from our own consumer research that consumers are hungry for information about the positive effects of ethanol blended fuels.

Further, we agree with the OPEI on two other points: 1. The OPEI acknowledges that E10 is safe for use in small engines like motorcycles, lawn mowers, trimmers, boats and snowmobiles; and 2. The OPEI notes that federal law prohibits the use of higher ethanol fuel blends in outdoor power equipment.  Beyond these points of agreement, however, lays a significantly different view of the future.

Our farmers believe that consumers having a choice of fuels is a good thing.  Whether you choose renewable ethanol because you want cleaner air or because you like purchasing an American grown fuel or because higher blends of ethanol are frequently priced lower than gasoline-the bottom line is that you should have the choice if you want to kick your oil addiction.  The OPEI's press release suggests that you, as a consumer, can't handle this choice-that you lack the ability to know the differences between regular gasoline and higher ethanol blends like E-15 or E-85.  We trust consumers to make the right choice of fuel - whether it is for their cars or small engine.

Today, our farmers are working with the auto industry to examine how higher blends of ethanol, ranging from E-15 to E-25, can boost gasoline octane.  Higher gasoline octane can improve engine performance and help the auto industry achieve higher Corporate Average Fuel Economy mileage targets.  Likewise, it is time for the nation's small engine manufacturers to stop fighting renewable fuels and, instead, begin working to ensure tomorrow's small engines can run on tomorrow's renewable fuels.

Rather than fighting choice and change, our nation's small engine manufacturers should work to develop engines that can run safely on higher blends of renewable fuels.  Perhaps then, instead of bemoaning the lack of consumer knowledge and issuing dire warnings-the OPEI can offer consumers something real:  the opportunity to make a clean and renewable choice.



 CWT members capture 14.3 million pounds of dairy export sales contracts


Cooperatives Working Together member cooperatives last month received 31 contracts to sell 3.946 million pounds of cheese, 2.535 million pounds of butter and 5.589 million pounds of whole milk powder. The products will go to customers in Asia, Central America, the Middle East, North Africa, Oceania and South America. The product will be shipped from March through September 2016.

For the first three months of 2016, CWT assisted members in capturing sales contracts totaling 12.361 million pounds of American-type cheese, 7.716 million pounds of butter (82% milkfat) and 14.676 million pounds of whole milk powder going to customers in 14 countries on five continents. The sales are the equivalent of 394.845 million pounds of milk on a milkfat basis.

Assisting CWT member cooperatives gain and maintain world market share through the Export Assistance program in the long-term expands 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.



Lindsay Corporation Reports Second Quarter Results


Lindsay Corporation, a leading provider of irrigation systems and infrastructure products, today announced results for its second quarter ended February 29, 2016.

Second quarter fiscal 2016 revenues were $120.6 million versus $141.1 million of revenues in the same prior year period. Including a $13.0 million increase in environmental expenses, the Company incurred a net loss of $4.1 million or $0.37 per diluted share compared with net income of $9.0 million or $0.75 per diluted share in the prior year. The environmental charge, on an after tax basis, reduced net income by $8.7 million or $0.79 per diluted share.

Total irrigation equipment revenues decreased 5 percent to $103.1 million from $108.3 million in the prior fiscal year's second quarter. U.S. irrigation revenues of $72.3 million increased 6 percent primarily due to revenues from acquired companies, including Elecsys Corporation, which was acquired in January 2015. International irrigation revenues of $30.8 million decreased 24 percent. Excluding the effect of currency translation, international irrigation sales declined 15 percent, most significantly in Brazil and several export markets. Infrastructure revenues decreased 47 percent to $17.5 million due primarily to the completion of the Golden Gate Bridge Road Zipper project in the prior year and decreases in Contract and Tubing markets.

Gross margin was 26.9 percent of sales compared to 28.0 percent of sales in the prior year's second quarter. Gross margin in irrigation increased by approximately 1 percentage point and infrastructure gross margin decreased by approximately 8 percentage points. The increase in irrigation gross margins is primarily a result of higher margins from value added product lines such as pump stations, filtration and M2M controls, while the competitive pricing pressures on center pivot sales were largely offset by lower input costs. The decrease in infrastructure gross margin was primarily due to sales mix from the decrease in Road Zipper sales.

Operating expenses increased $12.1 million to $37.1 million compared to the second quarter of the prior fiscal year. The increase includes $13.0 million for future environmental expense which was accrued after the Company completed additional environmental testing near a building at its Lindsay, Nebraska facility. The Company's accrual relates to contamination identified in 1982. The previous accrual did not include certain areas of potential contamination because the Company had been unable to determine the extent of contamination until further testing was conducted and was uncertain as to the remediation that might be required. While the updated estimate includes a number of uncertainties including the need for any remediation plan to be approved by the EPA, it represents the Company's best estimate of remediation and operating and maintenance costs to meet the long-term regulatory requirements of the 1992 EPA consent decree at the Lindsay, Nebraska facility.

Excluding the environmental expense, operating expenses decreased $0.9 million. The addition of Elecsys Corporation and SPF added $1.7 million in operating expenses, offset by $1.2 million in lower personnel related expenses and $0.9 million of reduced acquisition and integration expenses. Operating expenses were 30.8 percent of sales in the second quarter of fiscal 2016 compared with 17.7 percent of sales in the prior year period. Operating margins were (3.9) percent in the second quarter, versus 10.3 percent in the prior year period.

Cash and cash equivalents of $89.5 million were $77.7 million lower compared to the prior year second quarter. The Company repurchased 332,949 shares for $23.0 million during the second quarter and a total of 469,212 shares for $32.2 million during the first six months of fiscal 2016. $79.8 million remains available under the Company's share repurchase program.

Backlog of unshipped orders at February 29, 2016 was $52.6 million compared with $74.3 million at February 28, 2015 and $61.9 million at November 30, 2015.

Total revenues for the six months ended February 29, 2016 were $242.2 million versus $275.9 million in the same prior year period. Foreign currency translation as compared to the prior year reduced year to date revenues by $11.5 million. Net earnings were $2.8 million or $0.25 per diluted share compared with $16.6 million or $1.36 per diluted share in the prior year. The current year includes $13.0 million of estimated environmental expenses compared to $1.5 million in the prior year.

Total irrigation equipment revenues decreased 8 percent to $204.4 million from $223.0 million during the first six months of the prior fiscal year. U.S. irrigation revenues of $131.5 million increased 1 percent, decreasing 10 percent excluding the impact of acquisitions in the prior year. International irrigation revenues of $72.8 million decreased 21 percent, 11 percent excluding the effect of foreign currency translation. Infrastructure revenues decreased 29 percent to $37.8 million, primarily due to the completion of the Golden Gate Bridge Road Zipper project in the prior year.

Rick Parod, president and chief executive officer, commented, "The irrigation markets continue to be constrained by lower commodity prices and foreign exchange rates. Excluding the Golden Gate Bridge project last year and the incremental environmental charge this year, our second quarter 2016 operating profits were flat with the prior year quarter."

Parod continued, "We are now in the midst of the primary selling season for irrigation equipment in North America. While we have seen signs of stabilization, the market continues to reflect reductions from peak periods in farmers' investments in equipment due to the lowest projected net farm income since 2002. The current environment has near-term challenges, however the longer term drivers for our markets of population growth, expanded food production, efficient water use and infrastructure upgrades and expansion remain positive."



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