Friday May 6 Ag News

Ricketts Proclaims May as Beef Month in Nebraska

Today, Gov. Pete Ricketts proclaimed May as Beef Month in Nebraska at a ceremony to recognize the important role the beef community contributes to the state.  Nebraska Agriculture Director Greg Ibach and representatives for Nebraska Cattlemen and Nebraska Beef Council joined the Governor for the proclamation signing.

“Agriculture is Nebraska’s number one industry and beef is our state’s largest agricultural sector,” Gov. Ricketts said.  “This is a great time to celebrate beef and recognize the hard-working men, women, and families in Nebraska who continue to grow the industry throughout the beef supply chain.  Through their work, Nebraska is feeding the world.”

Nebraska continues to rank first in the nation in cattle on feed and was second in cattle production in 2014 at $7.4 billion.  In 2015, Nebraska broke the $1 billion mark in overall beef exports for the second year in a row.  Every dollar of beef exported from Nebraska generates up to $1.42 in additional business activity in the state.

“Every time we are able to export more beef from Nebraska, we also are adding value to the feed grain that is grown here,” said Director Ibach.  “We know from our interaction with buyers and influencers in Japan, Asia, and Europe, that beef from Nebraska resonates with them, and is gaining a strong reputation as a premium product.  This is opening more doors for us in new and existing overseas markets.”

Japan continues to be the number one importer of Nebraska’s beef, followed by South Korea, Hong Kong, Mexico, and the European Union.

“We appreciate the Governor recognizing the importance of beef to Nebraska by proclaiming May as Beef Month,” said Chairman of the Nebraska Beef Council, Buck Wehrbein of Waterloo.  “The state’s farmers and ranchers not only work diligently to produce premium-quality, great tasting beef products, but they also contribute significant amounts of the time and resources to promote and market these products nationally and internationally.”

Barb Cooksley, a rancher from Anselmo and president of Nebraska Cattlemen, says Beef Month offers a great opportunity for the state’s producers to help consumers learn where their beef comes from.

“We understand the growing interest from consumers in wanting to know where and how cattle are being raised to produce the great tasting beef they feed their families,” said Cooksley.  “We want them to know we use the best production practices to make sure we raise healthy animals.”



CCF Responds to New HSUS National Agriculture Advisory Council

Friday afternoon, the Humane Society of the United States (HSUS) held a press conference at the Nebraska State Capitol to announce the formation of The HSUS National Agriculture Advisory Council.

HSUS claims the council will build alliances with farmers and ranchers and advise them on practicing responsible stewardship of animal welfare—even though senior HSUS staff have worked feverishly to put every farm or ranch that uses livestock out of business.

HSUS has said that it hopes to "get rid of the entire [animal agriculture] industry.” The organization’s vice president for farm issues, Paul Schapiro, has claimed "[e]ating meat causes animal cruelty" and "[t]he meat industry equals systematic murder."

Will Coggin, director of research at the nonprofit Center for Consumer Freedom, issued the following statement responding to the formation of The HSUS National Agriculture Advisory Council:

Farmers and ranchers joining HSUS’s agriculture council makes as much sense as pacifists joining ISIS. The so-called Humane Society of the United States is led by vegan extremists, and its food policy director has abhorrently compared farms to Nazi concentration camps. HSUS has the admitted goal of putting all livestock farmers, no matter how humane or what size, out of business.



Nebraskans Say Beef Is What’s For Dinner

There’s a reason Nebraska is called “The Beef State”. With more cattle on feed than any other state in the nation and over seven billion pounds of red meat produced each year, the nickname certainly fits. However, Nebraskans don’t just raise beef, they consume it. Research conducted by the Beef Checkoff shows that 56% of Nebraskans enjoy beef three or more times per week.

“On a national average, consumers eat beef 2.2 times per week,” said Adam Wegner, Director of Marketing for the Nebraska Beef Council. “Here in Nebraska, beef is consumed about 3.3 times per week. I think the availability, preparation knowledge and confidence in the health and safety of beef products leads to more beef meals here in our state.”

Nebraskans take advantage of the abundant, home-grown supply of beef. Nearly 10% of those interviewed reported having recently purchased beef from a local source or direct from a farmer or rancher. That compares to just 2% nationally.

The consumer beef index study conducted in the fall of 2015 helps the Nebraska Beef Council gain a better understanding of Nebraska consumers and their attitudes toward beef. The study was conducted through phone interviews with Nebraskans from various locations in the state and with varying age, race and social demographics.

When asked to list the most important factors to consider when purchasing beef, 94% of those polled stated “great taste” as their top priority. Other important factors included “good value for their money” (92%) and “safe to eat” (82%). Nutrition is also important to Nebraskans with 72% listing it as an extremely or very important factor.

Wegner says the study also asked consumers to compare beef to other proteins. Only 12% listed beef as a better nutritional value while 24% ranked beef’s versatility over the competitors.

“This data helps us understand where beef scores well with consumers and where we can improve,” Wegner said. “We’ll continue to stress the nutritional benefits of beef and help consumers find new and creative ways to prepare beef for their families.”

For more information about beef in Nebraska visit www.nebeef.org.



NC Midyear Meeting Registration Now Open

The Nebraska Cattlemen Midyear Meeting held June 8-9 in Broken Bow, NE is a streamlined version of the annual convention. Cattlemen and cattlewomen gather for the conference to attend educational sessions and to conduct a Board of Directors meeting.

Wednesday June 8th will be a fun filled day with area tours and a golf tournament. Join us that evening for a great meal, beer garden and an NC PAC Auction at One Box Convention Center for the reception.

Thursday is housed with committee meetings, NC Foundation Lunch, General Session and we end the day with a Recognition Reception for Dr. Larry Berger. You won't want to miss the speakers at this years general session:
-    Tracy Brunner, NCBA President
-    Don Adams, Transitional Research and Extension Director with the Eastern Nebraska Research and Education Center
-    Brian Klippenstein, Protect the Harvest

View full schedule and register here... http://nebraskacattlemen.org/midyear1.aspx..



HARVESTING SUNLIGHT
Bruce Anderson, NE Extension Forage Specialist

               Free for the taking.  Free lunch.  Absolutely no cost.  Something for nothing.  Don’t you love it when you can get something for free?

               Input costs keep rising.  Seed, fertilizer, pesticides, fuel, hay, supplements, trucking – everything seems to get more expensive.  But miraculously, the most important input is still free.  That input is sunlight.

               Grassland managers need to capitalize on free sunlight to be profitable.  That’s especially important after receiving good rains.  With good moisture and the return of warm temperatures, pastures and rangeland are poised to grow rapidly.

               Just because sunlight is free, though, don’t take it for granted.  Instead, take advantage of as much free sunlight as possible.  As your grazinglands capture more solar energy, they become more productive and your livestock more profitable.

               The only way to capture solar energy is with healthy, green leaves.  The more land area completely covered by green leaves, the more sunlight that’s captured and converted into more grazable forage.

               This season, as you check your livestock and pastures, don’t just look over the pastures.  Also look down.  Straight down.  How much bare ground do you see?  How much dead litter or brown, dying leaves?  And – how much healthy, green leaf area?  The more green, the better.

               Increasing  the amount of green leaves capturing sunlight begins with proper stocking rate.  Once that’s accomplished, avoid grazing too short.  Move animals to new pastures while you still have lots of green leaves remaining to capture sunlight.

               Then your plants will harvest that sunlight, regrow more rapidly, and produce more forage for your animals to graze later on.



2017 Inaugural Nebraska Grower - Brewer Conference and Trade Show Announced

The University of Nebraska–Lincoln is pleased to announce the dates for the First Annual Nebraska Grower - Brewer Conference and Trade Show. The two-day conference will be held Thursday and Friday, January 5-6, 2017 at Nebraska Innovation Campus, 2021 Transformation Drive, Lincoln, NE.

The conference will feature separate basic and advanced sessions for hop growers and craft brewers. The growers’ sessions will include several prominent speakers from around the country discussing: market outlook, horticultural practices, pest and disease control, harvest and post-harvest practices.  The brewers’ sessions (held in conjunction with the Nebraska Craft Brewers’ Guild’s Annual Meeting) will address best brewing practices, brewery safety, input management, and water science, and will offer an up-to-date overview of legal and regulatory topics.

There will also be a brewer/grower networking session that focuses on procuring local ingredients and hop quality. The session will provide growers with a better idea of quality requirements and help align the supply of Nebraska grown hops with brewer needs.

The conference is sponsored in part by Midwest Hop Producers, LLC., Nebraska Craft Brewers Guild, Nebraska Hop Growers Association, the Institute of Agriculture and Natural Resources at UNL, the UNL Food Processing Center, the UNL Department of Agronomy and Horticulture, the Agricultural Research Division at IANR and Nebraska Extension, among others.

Visit midwesthopproducers.com or go.unl.edu/brewconference for updated information. Also follow Midwest Hop Producers on Facebook at facebook.com/midwesthopproducers. Website and ticket information coming soon.



Current National Drought Summary
droughtmonitor.unl.edu

A strong upper-level low pressure system moved through the central and eastern United States during the week. In the Rocky Mountains, wet snow was recorded; on the Plains and eastward, many areas had rain. The greatest amounts were over east Texas, eastern Oklahoma, Arkansas and into the Ohio River Valley, where up to 5 inches of rain was measured at several locations. As the system tracked east, areas of the Mid-Atlantic to southern New England recorded 2-3 inches of rain, with locally greater amounts. During this time, much of the West, the northern Plains, much of the Southeast, the upper Midwest, and northern New England remained dry. Those areas that received the precipitation were also cooler than normal for the week, with departures of up to 12 degrees below normal over the High Plains and Rocky Mountains. Warmer than normal temperatures were recorded over much of the Pacific Northwest and the Southeast.

High Plains and South
Dryness continued over much of North Dakota, but no additional degradations were made this week. It was a wet week over much of South Dakota, Nebraska, Kansas, Oklahoma, and the Texas Panhandle. Cooler than normal conditions and slow-moving rain events allowed for improvements in the region. A full category improvement was made to the moderate drought and abnormally dry conditions for much of Nebraska, Kansas, Colorado and central Arkansas. Improvements were made in Oklahoma, where most areas saw a full category improvement and severe drought was eliminated. Much of the Texas Panhandle also had a full category improvement. Abnormally dry conditions were expanded slightly in west Texas and several areas of Texas were identified as areas to watch in the next several weeks for degradation if rains don’t materialize.

Looking Ahead
Over the next 5-7 days, temperatures are expected to be above normal over the eastern half of the United States with departures of 6-9 degrees above normal over the Southeast. The Pacific Northwest and northern Rocky Mountains also should see above-normal temperatures with departures of up to 12 degrees above normal. Cooler than normal temperatures are projected over the central Rocky Mountains into the Southwest with departures of 3-6 degrees below normal. Another active week appears likely as several storm systems develop over the West and eject out onto the Plains and move into the Northeast. Precipitation amounts are forecast to be greatest over the northern Rocky Mountains with amounts up to 5 inches over Wyoming. On the Plains, up to 3 inches are projected in portions of Missouri and east Texas while amounts of over 3 inches are expected in portions of the Mid-Atlantic. Most of the Great Basin, New England, and the Florida peninsula are forecast to receive widespread precipitation as well.

The 6-10 day outlooks show that the chances for above-normal temperatures are greatest over the East Coast, West Coast, and Great Basin as well as Alaska, while the best chances for below-normal temperatures will be over the northern and southern Plains. Forecasts show that the best chances for above-normal precipitation will be from the central and southern Plains to the East Coast. Chances for below-normal precipitation are best over the upper Midwest and Pacific Northwest.



The Andersons Finalizes Sale of Grain and Plant Nutrient Assets in Iowa

The Andersons, Inc. (Nasdaq: ANDE) announces today it has completed the sale of eight of its facilities in Iowa to MaxYield Cooperative of West Bend, Iowa.

"We believe the sale of these assets to MaxYield provided the best solution for the operation of these facilities as well as for employees and customers," said CEO Pat Bowe.

The Andersons acquired the eight grain and agronomy locations as a part of its 2012 acquisition from Green Plains Grain Company. The Tennessee assets acquired during that same transaction will remain a part of The Andersons. This transaction does not divest or otherwise involve the Company's ethanol facility or recently-acquired Nutra-Flo facilities in Iowa.



The Andersons, Inc. Reports First Quarter Results

The Andersons, Inc. (NASDAQ: ANDE) announces financial results for the first-quarter ended March 31, 2016.
-    Company reports a net loss of $14.7 million for the first quarter or $0.52 per diluted share
-    Rail Group delivers pre-tax earnings of $9.4 million, sustaining utilization levels in softening market and validating strategy of customer and industry diversification
-    Plant Nutrient Group improves pre-tax income to $1.7 million on stronger sales of nutrient and lawn products. Poised for planting season with richer mix of specialty products
-    Ethanol Group performs well, remaining cash positive in margin environment challenged by low oil prices and coupled with seasonally lower first quarter demand
-    Grain Group reports a pre-tax loss of $17.4 million as impact of poor 2015 crop persists; takes action on underperforming assets, selling locations in Northwest Iowa
-    Company announces initiative to reduce ongoing costs by more than $10 million

The Company reported a net loss attributable to The Andersons of $14.7 million, or $0.52 per diluted share, on revenues of $887.9 million for the first quarter of 2016 compared to net income of $4.1 million or $0.14 per diluted share on revenues of $918.2 million in the first quarter of 2015.
The Andersons, Inc. logo.

"We are understandably disappointed with these results," said CEO Pat Bowe. "Market conditions in the first quarter prevented our Grain Group from realizing meaningful basis appreciation following last year's poor harvest in the Eastern Corn Belt.  Additionally, our affiliates experienced losses resulting from limited trading opportunities, including compressed margins at both the producer and processor ends of the supply chain and significant reductions in distillers dried grain shipments to China.

"We are aggressively moving forward to deliver improved operating results by addressing costs," he continued.  "We see a stronger outlook for the remainder of the year as nutrient sales are trending favorably and ethanol margins are expected to improve with summer driving demand.

Grain performance will continue to be challenged until the fall harvest which should produce opportunities to return to normal levels of profitability."



NPPC NOW PARTY TO ‘PORK. THE OTHER WHITE MEAT’ LAWSUIT

The U.S. District Court for the District of Columbia Circuit this week granted the National Pork Producers Council’s motion to intervene in the lawsuit brought by the Humane Society of the United States (HSUS) against the U.S. Department of Agriculture over the sale of the Pork. The Other White Meat trademarks. The win for NPPC comes two weeks after USDA’s Agricultural Marketing Service (AMS) decided that, based on its review of the value of four trademarks the National Pork Board purchased from NPPC, it would continue to approve the Pork Board’s annual payments for the trademarks.

NPPC sold the trademarks to the Pork Board in 2006 for about $35 million. NPPC financed the purchase over 20 years, making the Pork Board’s annual payment $3 million. The sale was an arms-length transaction with a lengthy negotiation in which both parties were represented by legal counsel, and USDA, which oversees the federal Pork Checkoff program administered by the Pork Board, approved the purchase.

In 2012, HSUS, a lone Iowa farmer and the Iowa Citizens for Community Improvement filed suit against USDA, seeking to have the sale rescinded. The U.S. District Court dismissed the suit for lack of standing, but a federal appeals court in August 2015 reinstated it. Subsequently, USDA agreed to review the purchase, including conducting a valuation of the trademarks. In a frequently-asked-questions document on its website, AMS said the value of the four trademarks is between $113 million and $132 million.

HSUS is pressing forward with its lawsuit despite the trademarks today being worth nearly four times what NPPC sold them for in 2006. The animal-rights group claimed they only are worth between about $2.6 million and $17.6 million.



BQA is my story, what's yours? Facebook Contest

The beef checkoff’s Beef Quality Assurance (BQA) program is kicking off a Facebook photo contest on May 9, 2016. Beef and dairy producers are encouraged to enter the ‘BQA is my story, what’s yours?’ contest by sharing their BQA story in the comments of one of the four BQA contest specific posts.

Each week, the BQA program will select one person as the weekly Facebook Story and Photo Contest winner to receive a BQA vest valued at $50. Following the contest, one of the four weekly winners will receive an Omaha Steaks package valued at $250. The grand prize winner will be announced June 13, 2016.

Find the contest rules here... http://bqa.org/home/bqa-facebook-contest-rules/. 

“Consumers continue to be more engaged in the discussion about where their food comes and how it is raised,” says Chase DeCoite, associate director of the BQA program. “Producers all have great stories and photos to share. Engage with us today on Facebook and share YOUR positive ‘AgVocating’ story!”



T-TIP TOTTERING TOWARD OBLIVION?

The future of the Transatlantic Trade and Investment Partnership (TTIP) free trade agreement now being negotiated between the United States and the European Union is in doubt after leaked documents on the trade talks showed the sides are far apart and after French President Hollande said his country wouldn’t accept the deal as it now stands. He said France will not jeopardize “essential principles for our agriculture, for our culture …,” likely referring to the absence in the negotiations of acceptance of the EU’s precautionary principle, which rejects actions or policies that have any risk of causing harm to the public or the environment. Last weekend in New York, U.S. and EU negotiators held their 13th round of talks on TTIP.

Some are skeptical of progress being made on it based on the intransigence of the EU on various issues. NPPC is concerned about the many critical ideological rifts that remain on agriculture. While the EU is willing to eliminate tariffs on nearly all goods, for example, it announced publicly it is unwilling to eliminate them on beef, poultry and pork. It also is refusing to reconsider its stance on beef hormones and the feed additive ractopamine, which is used in beef and pork production. In general, U.S. ag groups want in T-TIP the same deal it has gotten in the 20 other free trade agreements the United States has concluded and in the TPP, which was recently finalized: elimination of tariff and non-tariff barriers.




NAFTA LEADERS TO MEET IN OTTAWA

President Obama, Canadian Prime Minister Justin Trudeau and Mexican President Enrique Peña Nieto will meet in Ottawa June 29 for the North American Leaders Summit. “The summit is further recognition of the value of a more integrated North America to advance the security and prosperity of the continent. It also highlights the importance of continuing to strengthen the bilateral and trilateral ties between the United States, Canada and Mexico,” the White House said in a statement. Obama is likely to also discuss the Trans Pacific Partnership (TPP), which includes all three countries.



ADM Elects Directors at Annual Meeting, Declares Cash Dividend

Archer Daniels Midland Company (NYSE: ADM) today announced at its 93rd Annual Stockholders’ Meeting the election of its board of directors, including new director, Debra Sandler.

Sandler most recently served as chief health and wellbeing officer at Mars, after serving there as chief consumer officer and president of Mars Chocolate North America. She also previously held senior leadership positions at Johnson & Johnson and PepsiCo.

“Debra’s extensive expertise in the consumer packaged goods will be an extremely valuable asset to ADM as we continue expanding and evolving in the food ingredient space,” said ADM Chairman and CEO Juan Luciano. “We are pleased that Debra is joining our board of directors.”

The Board’s 11 incumbent directors were also re-elected. The directors re-elected are: Alan L. Boeckmann, Mollie Hale Carter, Terrell K. Crews, Pierre Dufour, Donald E. Felsinger, Juan R. Luciano, Antonio Maciel Neto, Patrick J. Moore, Francisco Sanchez, Daniel Shih and Kelvin R. Westbrook.

Cash Dividend Declared
In addition, ADM’s Board of Directors declared a cash dividend of 30 cents per share on the company’s common stock payable June 8, 2016, to shareholders of record May 18, 2016. This is ADM’s 338th consecutive quarterly payment, a record of 84 years of uninterrupted dividends. As of March 31, 2016, there were 587,213,352 shares of ADM common stock outstanding.



ADM Reports First Quarter Adjusted Earnings of $0.42 per Share

Archer Daniels Midland Company (NYSE: ADM) today reported financial results for the quarter ended Mar. 31, 2016. The company reported adjusted earnings per share1 of $0.42, down from $0.78 in the same period last year. Included in these results was a $0.08 per share loss related to updated portfolio valuations in an investment joint venture. Adjusted segment operating profit1 was $573 million, down 36 percent from $892 million in the year-ago period. Net earnings for the quarter were $230 million, or $0.39 per share, and segment operating profit1 was $573 million.

“Challenging market conditions continued in the first quarter, particularly affecting Ag Services,” said ADM Chairman and CEO Juan Luciano. “Low U.S. export volumes and weak margins continued, and in the quarter, poor results from the global trade desk impacted results for Ag Services. Results for Corn improved compared to the first quarter one year ago, led by a strong performance in sweeteners and starches. For Oilseeds, global protein demand remained solid. However, first quarter results were impacted by weak global crush margins. WFSI results were in line with expectations.

“During the quarter, we continued to advance our strategic plan. We acquired a controlling stake in Harvest Innovations, enhancing ADM’s plant protein, gluten-free ingredient portfolio. We announced the purchase of a corn wet mill in Morocco that will further expand our global sweeteners footprint.

We opened our new, state-of-the-art flavor creation, application and customer innovation center in Cranbury, New Jersey. And, as part of our ongoing portfolio management efforts, we reached an agreement to sell our Brazilian sugarcane ethanol operations. In addition, we achieved almost $50 million of run-rate savings in the quarter and remain on track to meet our $275 million target by the end of the calendar year. We repurchased about $300 million of shares in the quarter as we continue to execute on our balanced capital allocation framework.

“The first half of the year continues to present a challenging environment. However, we are cautiousl optimistic that reduced South American soybean and corn production could bring improved soybean crush margins and merchandising opportunities in the second half of the year.”

First Quarter 2016 Highlights
• Adjusted EPS of $0.42 excludes a $0.02 per share charge related to LIFO and $0.01 per share in
impairments. Included in adjusted EPS is a $0.08 per share loss related to updated portfolio
investment valuations in CIP, an investment joint venture.
• Agricultural Services decreased $118 million compared to a strong quarter last year amid lower
North American export volumes and margins, fewer global merchandising and transportation
opportunities, as well as unfavorable Global Trade Desk merchandising positions.
• Corn Processing increased $2 million as strong results for sweeteners and starches were offset by
weaker lysine results and lower ethanol margins.
• Oilseeds Processing decreased $231 million compared to a very strong year-ago period, as higher
Argentine crush run rates weakened global margins.
• WILD Flavors and Specialty Ingredients earned $70 million on solid performance from WILD
Flavors and higher results from specialty ingredients.
• Trailing four-quarter-average adjusted ROIC was 6.3 percent, 30 basis points below our annual
WACC of 6.6 percent.
• The company returned $0.5 billion to shareholders through dividends and share repurchases.