Smith Introduces Bill to Block Unilateral Regulations on Fertilizer for Farmers
Congressman Adrian Smith (R-NE) introduced H.R. 5213, the Fertilizer Access and Responsible Management (FARM) Act, today to repeal the Occupational Safety and Health Administration’s (OSHA) interpretive memorandum which revoked the exemption for retail facilities from Process Safety Management (PSM) regulations for anhydrous ammonia.
Congressman Smith said:
“Anhydrous ammonia plays a crucial role in Nebraska agriculture as the most common source of nitrogen fertilizer for farmers. The compliance costs of this rule would likely force small retailers to stop selling anhydrous ammonia, restricting producers’ access to this important input.
“OSHA ignored federal statute requiring major regulatory actions to be published for public input. Retailers and producers should be given the opportunity to voice their concerns and share their expertise through the formal rulemaking process rather than having yet another unilateral regulation forced upon them by this administration.”
Steve Nelson, president of the Nebraska Farm Bureau Federation, said:
“Congressman Smith’s efforts to stop the implementation of these misguided OSHA rules that would add millions of dollars in new costs to Nebraska anhydrous retailers, and thus Nebraska farmers, are truly appreciated. Nebraska agriculture should not have to pay the price for new and unnecessary regulations that were predicated over an unfortunate incident that has now been determined to have occurred by a deliberate act. Congress should now work to immediately pass this important piece of regulatory relief.”
David Briggs, president and CEO of WESTCO in Alliance and chairman of the board of the Nebraska Cooperative Council, said:
“The Nebraska Cooperative Council applauds Congressman Smith’s leadership on behalf of Nebraska’s anhydrous ammonia fertilizer retailers and agricultural producers on this issue of significant economic impact. OSHA’s recent correspondence to Congress asking it not to interfere with enforcement of application of the PSM standard to retail anhydrous facilities while it conducts formal rulemaking requires that Congress act to stay any costly compliance and enforcement until such time as a new rule and the requirements of any new rule are known. Nebraska’s farmer-owned cooperatives appreciate the efforts of Congressman Smith and his staff in their prompt and thoughtful response to concerns raised by the Nebraska Cooperative Council and other Nebraska agricultural interests.”
Original cosponsors of this bipartisan bill are Rep. Collin Peterson (D-MN), Rep. Stephen Fincher (R-TN), and Rep. Jim Costa (D-CA).
Background
In July 2015, the Occupational Safety and Health Administration (OSHA) bypassed the rulemaking process and issued an interpretive memorandum redefining regulations on anhydrous ammonia, forcing retailers to comply with the Process Safety Management of Highly Hazardous Chemicals (PSM) standard from which they were previously exempt.
This memorandum impacts approximately 4,800 fertilizer retailers and will cost the industry in excess of $100 million to comply. Federal law requires any regulatory action which has an economic impact of $100 million or more to be submitted to Congress and published for public review.
The Obama administration cited a 2013 ammonium nitrate explosion at a fertilizer plant in Texas when issuing the regulatory memorandum. This week, federal investigators announced the cause of the explosion was arson.
Agriculture Groups, Smith, Fischer, Push OSHA to Rollback Misguided Fertilizer Regulation
Nebraska farmers and fertilizer dealers are working together with members of Nebraska’s congressional delegation to fix a misguided regulatory proposal by the Occupational Safety and Health Administration (OSHA) related to the storage and handling of anhydrous ammonia fertilizer. “The regulatory proposal was initiated under a false premise, is unnecessary, and will cost Nebraska cooperatives and Nebraska farmers millions of dollars collectively,” said Nebraska Farm Bureau President Steve Nelson, May 12.
Anhydrous ammonia is a common fertilizer product used by Nebraska farmers and sold by Nebraska cooperatives and fertilizer dealers. In July of 2015, OSHA reversed a long-standing policy of exempting anhydrous ammonia retail facilities from extensive federal regulations governing management of hazardous chemicals. OSHA initiated the changes as a direct result of an explosion at a fertilizer company in West, Texas in April of 2013. While anhydrous ammonia was present at the Texas facility, its presence was not a contributing factor to the explosion.
Arguments by the Nebraska Agri-Business Association, Nebraska Cooperative Council, Nebraska Corn Growers Association, Nebraska Farm Bureau and the Nebraska Soybean Growers Association that the OSHA rule change was misguided, were further validated May 11, when federal officials verified the West, Texas explosion was the result of an intentional criminal act, not an anhydrous ammonia storage or handling issue.
“OSHA’s change in regulatory policy was flawed from the start and the fact the West, Texas explosion was the result of criminal action only further justifies the need for OSHA to roll-back to a more reasonable policy,” said David Briggs, chairman of the Nebraska Cooperative Council board.
According to Briggs, the increased regulatory threshold would require Nebraska Cooperatives and other wholesale distributors of anhydrous ammonia to purchase new storage tanks. The fertilizer industry estimates compliance costs of more than $100,000 per facility. Nebraska farmers would also feel the impact of the changes in regulations.
“There’s no question farmers will bear some of the costs of added regulatory burdens within the fertilizer industry. There’s also a very real threat that some wholesalers simply will choose not to handle the product to avoid the additional costs, causing anhydrous ammonia availability problems,” said Larry Mussack, president of the Nebraska Corn Growers Association.
Today, Congressman Adrian Smith introduced the Fertilizer Access and Responsible Management (FARM) Act, which would repeal these new OSHA regulations. U.S. Sen. Deb Fischer has also led the charge in the U.S. Senate to address this critical issue.
“As Nebraska organizations, we greatly appreciate the work of Congressman Smith, Senator Fischer, and the rest of Nebraska’s congressional delegation to fix this problem. The OSHA regulation is another example of more regulation that simply fails to meet the common sense test,” said Dennis Fujan, president of the Nebraska Soybean Association.
The OSHA regulation is set to go into effect Oct. 1, 2016, unless corrective action is taken legislatively or by the federal agency.
“It’s vital we prevent these new requirements from taking effect. Increasing costs or eliminating options for farmers to access anhydrous ammonia would cause massive economic harm to Nebraska agriculture collectively and to our state’s broader economy. We remain committed to working with our partners and the delegation to make sure that these regulations are fixed,” said Nelson.
For more information about the Nebraska agricultural organizations involved in this effort visit the Nebraska Agri-Business Association at www.na-ba.com; the Nebraska Cooperative Council at www.nebr.coop; the Nebraska Corn Growers Association at www.necga.org; Nebraska Farm Bureau at www.nefb.org; and the Nebraska Soybean Association at www.Nebraskasoybeans.org/ne-nsa.
NEBRASKA AGRICULTURE REPRESENTATIVES TO TRAVEL TO EUROPEAN UNION
Nebraska Department of Agriculture (NDA) Director Greg Ibach will be traveling to the European Union (EU) later this week to promote Nebraska beef and pork products. Ibach will be joined by representatives of the Nebraska Corn Board, the Nebraska Cattlemen’s Association, the Nebraska Pork Producers Association and the U.S. Meat Export Federation from May 15-21 as they travel to London, Brussels and Amsterdam.
“This mission will allow us the opportunity to conduct follow-up visits with some of the businesses and organizations we worked with last June during the Governor’s trade mission, as well as make some new connections,” said Ibach.
During the mission the team will discuss progress being made in creating new marketing opportunities for Nebraska beef products. According to Ibach, NDA has been working with two companies as well as the United States Department of Agriculture to establish a process verified program that would certify beef products were born and raised on a Nebraska farm.
“Having a system to verify the source of meat products will further establish Nebraska as a premium beef producing state and will open additional opportunities for Nebraska meat products in overseas markets as well as provide additional income to the producers and feeders that would choose to utilize the system once it is developed,” Ibach said. “We look forward to sharing this process and receiving feedback from our friends in the EU.”
Many of the events will also feature Nebraska pork products while helping the EU partners learn about the practices and technologies that Nebraska utilizes to produce safe, quality meat products.
The mission is being funding by the Nebraska Corn Board and is being planned in conjunction with the U.S. Meat Export Federation.
“The international relationships built on these trade missions are vital to Nebraska’s beef and pork producers. They help ensure that Nebraska is top of mind when the international marketplaces think of high quality meat products,” said David Merrell, farmer from St. Edward and chairman of the Nebraska Corn Board.
Other Nebraskans accompanying Director Ibach on this trade mission include: David Merrell and Debbie Borg with the Nebraska Corn Board, Barb Cooksley with the Nebraska Cattlemen, Russ Vering with the Nebraska Pork Producers and Stan Garbacz with the Nebraska Department of Agriculture.
Current National Drought Summary
droughtmonitor.unl.edu
An active weather pattern over much of the eastern United States brought with it cooler than normal temperatures for most areas east of the Mississippi River. Areas of the Mid-Atlantic and Florida recorded above-normal precipitation with departures of up to 2 inches above normal for the week. Temperatures were also cooler than normal over the Southwest as above-normal precipitation from southern Oregon to western Arizona helped to keep temperatures down. Areas of the central Rocky Mountains recorded up to 4 inches above normal precipitation as a series of low pressure systems developed there and tracked onto the Plains. Drier than normal conditions dominated much of the South and much of the northern United States had above-normal temperatures.
High Plains and South
Areas of Nebraska and South Dakota were above normal for precipitation this week as a series of storms tracked through the region. After a reanalysis of the region, portions of the D0 in western North Dakota were improved this week. Additional rain over the D0 areas in Kansas allowed for the removal of most of the remaining abnormally dry areas in the state with only a small area of southeast Kansas remaining. In Oklahoma, D0 was improved in the central and western portions of the state while in Texas, D1 was removed from the western panhandle and D0 was expanded to the south in the eastern panhandle. New areas of D0 were added in south Texas in response to developing dry conditions while some improvement to D0 was made in west Texas.
Midwest
Most of the Midwest was drier than normal this week, with only areas of western Iowa, northern Illinois, and northern and southern Missouri above normal for the week. Even with the dryness, drought is minimal in the region and no changes were made this week.
Looking Ahead
Over the next 5-7 days, the Plains, Midwest, and Northeast remain in a very active weather pattern; the greatest precipitation amounts are projected from northeast Texas into southern Missouri, where up to 5 inches of rain is forecast. With this active pattern, a shot of cold air out of Canada will impact temperatures all the way into the south, with below-normal temperatures. Temperatures are expected to be coolest over the central Plains with departures of up to 15 degrees below normal.
The 6-10 day outlooks show that the best chances for above-normal temperatures are in Alaska and the southern United States from Texas to the Carolinas. Projections show that the below-normal temperatures could be experienced over the Pacific Northwest, Midwest, and New England. A wetter than normal pattern looks to be likely as there are above-normal chances for precipitation above normal over areas from the Pacific Northwest, Central Plains, and most of the eastern United States. The greatest chances of above-normal precipitation are expected over the lower Mississippi River Valley and the Great Basin.
Farm Debt Accumulating
Cortney Cowley, Economist and Matt Clark, Assistant Economist
Federal Reserve Bank of Kansas City
First Quarter 2016Further increases in farm debt pointed to growing concerns about the Tenth District’s agricultural economy. Loan demand continued to rise, repayment rates continued to weaken, and almost all District bankers reported that farm income declined in the first quarter of 2016. To mitigate their exposure to risk in this environment, District bankers raised collateral requirements somewhat and increased their use of government guaranteed loan programs. Although cash rents declined modestly, production costs generally have remained high and many producers reduced both capital and household spending in an effort to cut costs. Farmland values also moderated slightly and were expected to remain under pressure in the coming year.
Lending and Credit Conditions
Farm sector credit conditions continued to deteriorate according to respondents of the Tenth District Survey of Agricultural Credit Conditions. Bankers noted that poor cash flow prevented many borrowers from paying off loans from the previous year, causing them to carry outstanding debt into the first quarter. The share of farm borrowers in the Tenth District with more carry-over debt than a year earlier increased from 18 percent in 2015 to 29 percent in the last quarter. Moreover, bankers noted that more than 18 percent of loans made in the first quarter involved restructuring existing debt to meet short-term liquidity needs.
More generally, loan demand at agricultural banks in the Tenth District continued to climb and loan repayment rates weakened further. Through the first quarter, survey respondents reported three full years of increasing loan demand amid reduced profits. Similarly, loan repayment rates weakened for the 10th consecutive quarter, the longest streak of declining repayment rates since the early 2000s.
Loan demand continued to rise most significantly in states where farm income declined sharply. For example, 66 percent of bankers in Nebraska indicated that loan demand increased in the first quarter and almost all bankers in the state reported a decline in farm income from a year ago. Moreover, Nebraska bankers also reported that 37 percent of their farm borrowers had more carry-over debt than a year ago. Significant expansions in loan demand and the recent increase in carry-over debt underscored a heightened sense of risk in farm sector lending, particularly if incomes remain low.
In response to perceptions of heightened risk, bankers raised collateral requirements in the first quarter. More than 30 percent of respondents—a significant increase from previous years—noted that collateral requirements rose in the first quarter. This bump in collateral requirements was discussed in the first quarter issue of the Ag Finance Databook, which reported that bankers sought to reduce exposure to lending risks by requiring more farm real estate as collateral for large, non-real estate farm loans.
Bankers in the Tenth District also reported a significant increase in the use of guaranteed loan programs through the USDA Farm Service Agency. Bankers traditionally have used guaranteed loan programs to provide an additional layer of security for credit extended to new or marginal customers. In the first quarter, however, more than 30 percent of respondents indicated that their bank had increased the use of these loan programs from a year ago.
Farm Income and Spending
The ongoing decline in farm income remained the primary driver of weakening credit conditions and modified loan terms. In the first quarter, 86 percent of survey respondents reported a drop in farm income from a year ago. Persistently low prices for commodities have weighed on gross revenue while production costs have remained elevated, keeping profit margins for crop producers relatively tight. Capital spending softened alongside the declines in farm income, and more bankers also cited lower household spending. Moreover, 50 percent of bankers indicated that household spending fell in the first quarter, up sharply from 25 percent a year ago.
Declines in farm income have coincided with adjustments in farm household spending and capital spending in all District states over the last four years. Amid elevated farm income in 2012, household spending and capital spending had continued to increase in all District states following the near-record income of previous years. While capital spending had begun to slow in 2014, household spending had remained relatively steady. Since 2014, however, tightening profit margins have spurred reductions in both household and capital spending. In this year’s first quarter survey, more than half of bankers expected farm income, capital spending and household spending all would decline in the next three months.
Farmland Values and Cash Rents
Although most costs associated with agricultural production have held firm, cash rents declined for all farmland types. After remaining positive through most of 2015, ranchland cash rents dropped in the first quarter, declining 10 percent from a year earlier. The sharp drop marked the largest annual decline in ranchland cash rents since the third quarter of 2009 and corresponded with a 30-percent decline in the price of feeder cattle over the same period. Ranchland cash rents increased slightly in Oklahoma and the Mountain States, but significant declines in Nebraska and moderate declines in Kansas weighed on the District average. District nonirrigated and irrigated cash rents were down 6 percent from the previous year, continuing trends of modest annual declines for both types of cropland.
Similar to cash rents, nonirrigated and irrigated cropland values continued to moderate. Values declined for both types of farmland in all District states, with the exception of irrigated cropland in the Mountain States, which increased 13 percent from the previous year. Over the same period, nonirrigated cropland in the Mountain States fell 7 percent, the largest annual decline for the District. The relatively wide disparity between the values of nonirrigated and irrigated cropland in the Mountain States could reflect the importance of irrigation in a region where annual precipitation varies significantly and averages just 15 inches. Moving forward, about half of District bankers indicated they expect further declines in nonirrigated and irrigated farmland values. Contrary to ranchland cash rents, ranchland values remained unchanged, and 70 percent of survey respondents expected ranchland values to stay flat in the next quarter.
Looking Forward
The gradual tug of low farm income has pulled loan demand upward. This most recent uptick in loan demand may be more concerning because it has coincided with a period of falling repayment rates, softening farmland values and increasing collateral requirements. Despite lower repayment rates, delinquency rates on farm loans have remained low compared to historical standards and compared to delinquency rates on other types of loans outside of agriculture. However, marginal borrowers, particularly those with large capital debt and limited borrowing bases, may experience continued strains on liquidity. Moderating farmland values could also create additional concerns for lenders and borrowers, especially those who have become more highly leveraged.
Field day to focus on using a crimper to provide mulch moved to Sunday
The University of Nebraska-Lincoln triticale crimping field day at the Roh farm a half mile west of Abie. Due to heavy rain earlier this week, the triticale crimping field day will now be held on Sunday, May 15 from 5 – 7:30 p.m.
There is no charge to attend the field day.
Experts will be on hand to answer farmer’s questions on using a mulch crop to avoid soil crusting and erosion in soybeans. Participants will see the first use of an aggressive crimper designed by UNL students to stop triticale growth at the flowering stage and rolll the triticale down to form a week-suppressive mulch. Green beans will be immediately planted into the triticale mulch at the Roh farm.
Last year 30 early-flowering, high biomass triticale lines were screened on the nearby Stanislav farm. Seven of the best lines were planted last fall in replicated plots on the Roh, Stanislav and nearby Fendrich farms. The plan is to drill beans into standing triticale a week before the crimper demonstration and into adjacent strips on the day of crimping. Participants are welcome to visit the Stanislav plots 3 miles north of Abie following the crimper demonstration to view soybeans planted into the standing triticale.
For more information on the field day contact UNL research technologist, Richard Little at 402-805-7482 or visit http://agronomy.unl.edu/mulchcropping.
NORTHEY TO VISIT POTTAWATTAMIE, CASS AND ADAMS COUNTIES MAY 13
Iowa Secretary of Agriculture Bill Northey today announced that he will be making stops in Pottawattamie, Cass and Adams Counties on Friday, May 13.
Northey will tour the Union Pacific Railroad Museum in Council Bluffs, have lunch at the Downtowner in Atlantic and then visit Corning Meat Processing Services.
The details of the visits follow here: Friday, May 13, 2016
Pottawattamie County – 11:15 a.m., visit the Union Pacific Railroad Museum, 605 S. 3rd St., Council Bluffs
Cass County – 1:15 p.m., have lunch at The Downtowner, 14 E. 4th St., Atlantic
Adams County – 3:30 p.m., visit Corning Meat Processing Services, 501 Davis Ave., Corning
Northey, a corn and soybean farmer from Spirit Lake, is serving his third term as Secretary of Agriculture. His priorities as Secretary of Agriculture are promoting the use of science and new technologies to better care for our air, soil and water, and reaching out to tell the story of Iowa agriculture.
ARA Releases Statement on ATF Findings
The U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives announced yesterday that the fire leading to the April 17, 2013, explosion at the West Fertilizer Company in West, Texas, was a criminal act. ATF ruled out all accidental and natural causes and confirmed the fire was intentionally started.
No arrests have been made, but ATF says it has several leads and the investigation remains open. ATF is offering a $50,000 reward for information leading to an arrest.
The impact of this disaster is still being felt -- within and beyond the West community -- more than three years after the incident. It's tragic someone would intentionally start a fire that would lead to such devastating consequences. We hope the criminal, or criminals, responsible for deliberately setting the fire are brought to swift and decisive justice.
The Agricultural Retailers Association and our member companies remain committed to community and employee safety through the secure and responsible handling of ammonium nitrate and other essential crop production nutrients.
In an effort to further enhance a culture of safety and accountability within the fertilizer industry, ARA and The Fertilizer Institute established ResponsibleAg. Using third-party audits and other tools, ResponsibleAg assists agricultural retailers with federal regulatory compliance surrounding the safe handling and storage of fertilizer.
Safety is our top priority. Through ResponsibleAg and other efforts, the agricultural retail industry continues to advance initiatives to improve upon its sound stewardship practices.
American Farm Bureau Federation Statement Regarding H-2A e-Approval System
"Farm Bureau is pleased to see the United States Citizenship and Immigration Services and the State Department launching a new online approval platform today that will hopefully expedite H-2A processing.
"These visa approval delays have gone on far too long and cost farmers across the country hundreds of thousands of dollars in lost business. Without workers in place to plant, tend and harvest, crops are going to waste while bureaucratic paperwork keeps piling up.
"Farm Bureau raised the flag on this major breakdown in our food-growing system in hopes that agencies would find an immediate solution, and we believe USCIS and DOS are taking an important step to bring the H-2A processing system into the 21st century. However, farmers across the country are still experiencing delays due to this backlog that spans multiple agencies. We will continue to work with congressional leaders and the agencies to ensure farmers get workers by their date of need."
USDA Releases Results of New Survey on Honey Bee Colony Health
The U.S. Department of Agriculture's National Agriculture Statistics Service (NASS) released the results of its first ever Honey Bee Colony Loss survey today. The survey queried more than 20,000 honey beekeepers about the number of colonies, colonies lost, colonies added, and colonies affected by certain stressors and gleans state-level estimates on key honey bee health topics. The survey was developed as part of the "National Strategy to Promote the Health of Honey Bees and Other Pollinators" released last summer, and gleans state-level estimates on key pollinator health topics.
Results from the survey will provide statistically strong baseline information about honey bee losses and can help guide honey bee management decisions in the United States. NASS created the survey questions with input from beekeepers and researchers, and other stakeholders. The results will allow USDA and other federal departments and agencies to create a more unified and complementary approach to implementing the National Strategy, which was unveiled in May 2015.
"Pollinators are essential to the production of food, and in the United States, honey bees pollinate an estimated $15 billion of crops each year, ranging from almonds to zucchinis," said Dr. Ann Bartuska, USDA Deputy Under Secretary for Research, Education and Economics. "This new data will add to USDA's robust scientific body of knowledge on the inventory, movement and death loss of honeybees in the United States."
For this report, NASS surveyed 3,300 beekeeping operations with five or more colonies on a quarterly basis, following their operations throughout the year. In addition, NASS surveyed a sample of 20,000 beekeepers who have less than five colonies annually. Data collected covers the state in which colonies are located, movement of colonies between states, newly added or replaced colonies, number of colonies lost, colonies renovated, and presence of colony stressors and specific signs of illness. The responses allow USDA for the first time to differentiate patterns between small-scale and commercial beekeepers, analyze data on a state-by-state basis, and compare more specific quarterly losses, additions and renovations for larger scale beekeepers.
According to the survey released today, there were 2.59 million or 8% fewer honey bee colonies on January 1, 2016 than the 2.82 million present a year earlier on January 1, 2015 for operations with five or more colonies. New quarterly colony data allow new levels of analysis. For example, there was an 18% loss of colonies in the January-March quarter in 2015 and a 17% loss in the same quarter in 2016. Honey beekeepers with five or more colonies reported Varroa mites as the leading stressor affecting colonies. They also reported more colonies with symptoms of Colony Collapse Disorder lost in the first quarter of 2016 with 113,930 than the 92,250 lost in the same quarter in 2015.
This research complements other information USDA and partners have been collecting for years. For example, in March NASS released its annual report on honey production and prices for 2015. This report, which is used by USDA, producers, economists, agribusiness and others, found that U.S. honey production in 2015 from producers with five or more colonies totaled 157 million pounds, down 12 percent from 2014. There were 2.66 million colonies from which honey was harvested in 2015, down 3 percent from 2014. Honey prices were 209.0 cents per pound, down 4 percent from a record high of 217.3 cents per pound in 2014.
In addition, for the past 10 years USDA's National Institute of Food and Agriculture has helped fund collaboration between the Bee Informed Partnership and the Apiary Inspectors of America to produce an annual survey that asks both commercial and small-scale beekeepers to track the health and survival rates of their honey bee colonies. This year's survey results, which were released May 10, were gleaned from the responses of 5,700 beekeepers from 48 states who are responsible for about 15 percent of the nation's managed honey bee colonies.
The data being released by NASS today adds to these two efforts by providing a baseline federal statistical resource to track change of reported numbers and death loss in colonies managed by small hobbyists up to the largest commercial producers.
The National Strategy, developed under the leadership of the U.S. Environmental Protection Agency (EPA) and USDA) set three overarching goals: 1) reduce honey bee colony losses to economically sustainable levels; 2) increase monarch butterfly numbers to protect the annual migration; and 3) restore or enhance millions of acres of land for pollinators through combined public and private action. The plan was accompanied by a science-based Pollinator Research Action Plan. In addition to the surveys mentioned above, a number of research activities within USDA's Research, Education and Economics mission area have been initiated since the action plan was released; for example:
- NIFA is currently seeking applications for a total of $16.8 million in grant funding for research projects with an emphasis on pollinator health;
- The Agricultural Research Service (ARS) is organizing a national bee genebank as part of the agency's response to ongoing problems facing the country's beekeepers. The genebank, which will be located in Fort Collins, Colorado, will help preserve the genetic diversity of honey bees, especially for traits such as resistance to pests or diseases and pollination efficiency;
- ARS has launched a research project aimed at determining the effects of seasonal pollens on brood rearing, on bees' immune response to pathogen stress, and on whether geographic location influences such effects;
- ARS has launched a study to determine whether hyperspectral imaging can be used as a non-invasive method of monitoring bee colony health; and
- ARS has launched a project to determine colony survival, population size, cost and the return on investment of two overwintering strategies for controlling Varroa mites.
Bayer Eyes Monsanto
The Germans pronounce Bayer as "Buyer." That's exactly what news reports suggest Germany's Bayer AG is contemplating through a potential bid for Monsanto.
Monsanto, valued at approximately $40 billion as of Wednesday's stock market close, made several failed bids for Syngenta last year. Since then, Dow Chemical Company and DuPont Company have announced plans to combine operations. China National Chemical Corporation (ChemChina) agreed in February to acquire Syngenta AG of Switzerland for $43 billion.
Bayer, which is valued at about $96 billion, refused to comment on the rumors. "As a matter of principle, we do not comment on market speculation," Darren Wallis, vice president, North America Communications at Bayer CropScience. Sara Miller, global corporate communications at Monsanto echoed the same sentiment. Rumors that German-based BASF is in the hunt have also surfaced. BASF and Monsanto have a long history of collaboration on various projects.
Bayer may be best known in non-agriculture sectors for discovering aspirin, but the company has compiled an extensive list of agricultural products and innovations. Farmers are familiar with the company's LibertyLink (glufosinate) herbicide technology. In 1985, Bayer patented imidacloprid as the first commercial neonicotinoid and has heavily invested in bee health research as that class of insecticides has been implicated in pollinator losses.
In seed, Bayer focuses on cotton through the FiberMax and Stoneville brands and InVigor canola. In recent years, the company has purchased some soybean seed businesses and branded the Credenz soybean line. Monsanto's strength in corn seed would fill a void in Bayer's seed portfolio.
Antitrust regulators in the U.S. and elsewhere are likely to closely examine whether a combination of the two agribusiness firms would concentrate too much market power. Monsanto pledged to divest all of Syngenta's seed and trait assets and certain overlapping chemistry assets to address anti-trust concerns during negotiations last year.
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