Thursday May 5 Ag News

PROJECT SENSE AIMS TO HELP CORN PRODUCERS, ENVIRONMENT

    When and at what rate nitrogen fertilizer should be applied are major questions for today's corn producers. Nebraska Extension is helping answer these questions through Project SENSE, which stands for Sensors for Efficient Nitrogen Use and Stewardship of the Environment.

    Over the last 40 years, producers have greatly increased fertilizer efficiency, but that gain in efficiency may be starting to plateau. This points to the need to adopt new technologies to reach efficiency increases producers are used to seeing. Project SENSE, implemented by Nebraska Extension for the first time last year, is focused on improving nitrogen use efficiency by fertilization during the growing season.

    Richard Ferguson, Nebraska Extension soil specialist, is leading the project, which focuses on using crop canopy sensors to direct variable-rate, in-season nitrogen application in corn. The sensors are attached to the nitrogen applicator and work by emitting light onto the crop canopy. Photodetectors on the bottom of the sensor measure specific wavelengths of light that are reflected by a leaf. The wavelength information is recorded by the crop canopy sensor and combined to form an index that has been correlated to the nitrogen status of the crop. This information is used by the system to generate a recommended rate of additional fertilizer that is then applied to the crop in real time.

    "Farmers aim to apply fertilizer at a time and rate that will maximize yield," Ferguson said. "Project SENSE can help them better define what the appropriate rate should be based on how stressed the plant is for nitrogen."

    When it comes to timing, a goal of Project SENSE is to show producers the benefits of moving fertilizer application from the fall and spring into the growing season. Corn does not typically begin using significant amounts of fertilizer until June or July, so when fertilizer is applied months before, there is a long window of time when fertilizer can be lost.

    "May is one of our wettest months of the year in Nebraska, so if we have fertilizer not being used by the crop, it's going to be lost with rainfall," Ferguson said.

    Project SENSE was implemented at 17 research sites across five natural resources districts in Nebraska in 2015. Results from the first growing season are encouraging. Use of the sensors reduced the nitrogen rate by 40 pounds per acre compared with the grower's standard management practice. While this did cause a slight yield reduction of five bushels per acre, producers saw an overall increase in profit because of reduced fertilizer cost. Researchers estimate that the sensing equipment would pay for itself in two to three years in a typical Nebraska farming operation.

    Brandon Hunnicutt, a farmer in south central Nebraska and member of the Nebraska Corn Board, participated in Project SENSE in 2015. Hunnicutt, like many Nebraska corn farmers, is concerned about managing inputs and improving efficiency.

    "Project SENSE is a forward-thinking approach in using technology to increase nitrogen use efficiency that in addition continues farmers' stewardship of the environment," he said.

    Nitrogen is a dynamically moving nutrient in soil, making it difficult to manage because it can be lost through many pathways in the environment, which can lead to high-nitrate groundwater. Strategies implemented through the project, such as in-season fertilizer application, can improve groundwater nitrate levels.

    The project team plans to implement studies at 20 locations in 2016 and hopes to encourage producers to adopt the technology, for both economic and environmental reasons.

    "With Project SENSE, we'll continue to evaluate ways to increase efficiency to maintain economic yield levels, and also reduce nitrogen loss into groundwater," Ferguson said.

    The project is a collaborative effort of Nebraska Extension, Nebraska Corn Board and Nebraska Natural Resources Districts.



HOW EARLY CAN ALFALFA BE CUT?
Bruce Anderson, NE Extension Forage Specialist

               How early can you cut alfalfa?  Does it hurt alfalfa to cut first harvest before buds develop?

               First cutting often is the most important cutting of the year.  It usually produces the most yield and its forage quality changes fastest from day to day.  Alfalfa started growing like gangbusters this spring, is almost knee high in some places, and could be ready to cut soon.

               Many growers cut soon after first blooms appear.  But weather can cause long delays and sometimes alfalfa doesn’t bloom very aggressively during spring.  Plus, waiting until alfalfa begins to bloom often results in hay that is too low in quality for dairy use.

               So what about cutting before plants bloom — or even before they form buds?  Is this an alternative?  And what are the risks?

               Cutting healthy, vigorously growing alfalfa after it gets fifteen  to twenty inches tall has several advantages.  Weather might be better than later in spring.  You begin the harvest sequence early rather than waiting until all the alfalfa is ready at once.  Some insect and disease problems can be reduced by early harvest.  Most importantly, feed value can be very high.  Plus, second cutting probably will be ready before summer heat lowers forage quality on it.

               Yes, yield will be lower from this early cut, although much of it will be made up in later harvests.  Regrowth for second harvest also may be a bit slower than if alfalfa had been cut at a more advanced stage of growth, especially if your alfalfa experienced winter injury this year.  And you must be sure to allow a longer than normal recovery after either the first or the second cutting if you want to maintain long-term stands.

               Still, try early harvest on a field this year. You might like it.



Enhancing In-Season Nitrogen Use Efficiency Is In The Details

Spring is here and crops are in the ground. Do you have a plan for your nitrogen during the growing season? Experts say to get the most out of those nutrients, timing is everything. To improve their bottom line and make the most of their inputs, growers are fine-tuning their nutrient management strategies, spreading out their applications and utilizing nutrient management products.

Mike Zwingman, agronomy research and development manager for Central Valley Ag in York, Nebraska, says one key to protecting ROI and enhancing nitrogen use is taking advantage of the wealth of information available to growers.

“The opportunity exists to really dial that efficiency down to the razor’s edge of the production model,” said Zwingman. “Growers should start with an accurate, high-resolution soil sample to get the right information from the beginning. Then they need to think about the 4Rs and how their crop is using nitrogen. What form does the crop prefer? How much is needed, and when is it needed most? Finally, what placement and proximity to the plant results in the greatest efficiency?”

The 4R Nutrient Stewardship program promotes best management practices for nutrient stewardship, including applications from the right source, at the right rate, right time and right place.

Managing Challenging Weather
Beyond the 4Rs, Zwingman says growers have seen success with nitrogen management products. “Everyone heads into the season with ideal application timings we want to hit, but we all know that, when we get into the season, we have a lot of variables to deal with,” said Zwingman. “Products like NutriSphere-N from Verdesian Life Sciences really help us bridge that gap. It protects nitrogen, keeping it in the ammonia form, the form that’s most available to the plant, the longest. It also extends and widens application windows so we can get every acre covered in the most efficient way possible.”

Dr. Darin Lickfeldt, technical development manager with Verdesian Life Sciences, says fertilizer managers continue to provide value in a tight farm economy.

“More than ever before, growers are scrutinizing every dollar they spend,” said Lickfeldt. “With NutriSphere-N, we have nearly 10 years of research, over 400 trials, and the average yield advantage is 10 Bu./A with 90 percent of those trials showing a positive yield enhancement. Even in a tight economy with $3/bushel corn price, NutriSphere-N provides a 3:1 return on investment.”

This year’s El Nino brought wet weather to the Corn Belt in the winter with drier, warmer conditions in March and April, leaving the soil warm early in the year and creating prime conditions for nutrient transformations in the soil. The challenge for growers this season will be to keep nitrogen available to the plant when it needs it most.

Planning for the Unpredictable
“Farmers spend a lot of their yearly investment in nitrogen and, unfortunately, some estimates are that 40 to 50 percent can be lost to the environment and not used by the plant,” said Lickfeldt. Some estimates show that a corn plant uses only about 20 percent of its nitrogen before the V6 stage of growth.

“Growers who put down only a preplant application are really asking that nitrogen to do a lot. They’re asking it to stick around until September,” he said. “I would recommend using 30-50 percent at preplant and then 50-70 percent at sidedress. That, along with NutriSphere-N, is going to stretch the effectiveness of those nitrogen applications.”

Zwingman echoes that recommendation. He says split applying and managing nutrients more precisely are habits growers need to establish now to remain profitable in the future.

“The first thing we talk about with our growers is splitting up and opening up those timing windows for nitrogen application,” said Zwingman. “Then we can use modeling tools, in-season imagery and soil sampling tools to get an idea of where that nitrogen is, how well the plant’s using it and then we make a high-resolution, effective plan for nitrogen application as we go into the end of the growing season. We’re asking growers to get a start on that, and we’ll help them to build on that plan for this year and beyond.”



USDA’S RIPPKE, SUAREZ HEADLINE ANIMAL HEALTH IN THE HEARTLAND: BIOTECHNOLOGY’S ROLE IN EMERGENCY PREPAREDNESS SYMPOSIUM

BioNebraska Executive Director Phil Kozera and Iowa Biotechnology Association (IowaBio) Executive Director Joe Hrdlicka announced today the two organizations are collaborating on an animal health symposium scheduled for Wednesday, July 20th in Omaha that will focus on the biotech industry’s role in mitigating animal health emergencies.

Kozera and Hrdlicka said they are pleased to have commitments from the nation’s foremost research and regulatory experts to lead the discussion on past and future emergency outbreaks. The symposium is scheduled from 7:30 a.m. to 4:45 p.m. on Wednesday, July 20th at the Sorrell Center at the University of Nebraska Medical Center in Omaha.

Drs. Byron Rippke (of the Center for Veterinary Biologics with the U. S. Dept. of Agriculture), Keith Hamilton (of the Kansas State University College of Veterinary Medicine) and David Suarez (of the Southeast Poultry Research Laboratory with the U.S. Dept. of Agriculture) are among the list of leading animal health experts addressing critical topics to livestock producers and animal health professionals in government, academia and industry. 

Those interested in attending this event may register by clicking this link: www.iowabio.org/animalhealth.

Recent outbreaks of Avian Influenza (AIV) and Porcine Epidemic Diarrhea Virus (PEDV) have had serious consequences in the Heartland region, impacting animal health, human health, animal producers, the encompassing agriculture industry, and the overall economy both domestic and abroad, Kozera and Hrdlicka said. They indicated the impact of these recent outbreaks inspired the symposium.

“These were not the first diseases emerging in the region, and will certainly not be the last, Hrdlicka said. “In our discussion with industry and regulatory experts, we believe that it’s critical to open the dialogue to minimize impact from future events.”

Kozera said our regions’ leadership in animal production dictates a need for an ongoing dialogue on practices designed to quickly respond to outbreaks. “We have seen first-hand the significant dangers these diseases pose for the economies of Midwest states like Nebraska and Iowa,” he said. “It is critical that animal health professionals, producers, academia and government leaders collaborate in an effort to minimize future threats.”

Dr. Marcus Kehrli (of the National Animal Disease Center with the U. S. Dept. of Agriculture) will moderate the symposium. “I’m pleased to work with these organizations on this event,” he said. “More discussion and collaboration is needed to prepare for these emergencies and this forum provides that platform.”



Red Meat Exports Move Higher in March; First-quarter Volumes Up 2 Percent

March exports of both U.S. beef and pork increased year-over-year in volume, according to statistics released by USDA and compiled by the U.S. Meat Export Federation (USMEF). March export values were lower than a year ago but trended upward, with both reaching a 2016 high.

Beef exports totaled 89,482 metric tons (mt) in March, up 3 percent from a year ago and pushing first-quarter volume to 254,986 mt – up 2 percent. March export value was $483.3 million, down 8 percent from a year ago but the highest since December. For the first quarter, export value was $1.36 billion – down 13 percent from the same period last year.

March pork exports were the largest in 11 months at 195,898 mt, up 3 percent year-over-year. First-quarter exports reached 534,321 mt, up 2 percent. March export value ($480.4 million) was down 3 percent from a year ago but the highest since May 2015. First-quarter export value totaled $1.3 billion, 9 percent below last year’s pace.

“Exports showed an encouraging level of improvement in March, especially to our key Asian markets,” said USMEF President and CEO Philip Seng. “The U.S. pork industry is now better positioned to capitalize on strong demand in China. Pork exports to Japan were also higher, though we are still in a very tough battle for market share as Japan’s imports from Europe increased at a faster pace. On the beef side, exports continued to perform well in Japan, South Korea and Taiwan. So while U.S. exports continue to recover from a down year in 2015, volumes are on track for improvement in most markets this year.”

Beef variety meat demand bolsters exports to Asia, Middle East
While lower beef prices pushed export values below year-ago levels in most destinations, Korea and Taiwan stood out as top performers. For the first quarter, exports to Korea increased 25 percent from a year ago in volume (34,638 mt) and were steady in value at $205 million. Exports to Taiwan increased 20 percent to 7,634 mt, while value climbed 3 percent to $66.4 million. These markets continue to show strong demand for high-quality chilled U.S. beef cuts in both the retail and foodservice sectors. Beef variety meat exports to Korea have also performed exceptionally well in 2016, with first-quarter exports more than doubling in volume (3,954 mt, +133 percent) and increasing 84 percent in value ($17.6 million).

First-quarter beef export volume to Japan improved 9 percent from a year ago to 52,841 mt, while value fell 7 percent to $300.4 million. Led by strong demand for U.S. beef tongues, beef variety meat exports to Japan were very strong in the first quarter, increasing 21 percent from a year ago in volume (9,877 mt) and 22 percent in value ($70.4 million).

Beef exports to the Middle East increased 13 percent in the first quarter to 27,641 mt, though value fell 11 percent to $60.3 million. Variety meat exports to Egypt increased 47 percent year-over-year in March, pushing the first-quarter total to 24,543 mt (+14 percent). The United Arab Emirates (UAE) is the leading market in the region for beef muscle cuts, with first-quarter exports increasing 8 percent year-over-year to 1,507 mt. Export value to the UAE fell 2 percent to $17.3 million.

Weakness of the Mexican peso and Canadian dollar continues to be a significant obstacle for U.S. beef. First-quarter exports to Canada declined 9 percent from a year ago in volume (26,246 mt) and 21 percent in value ($160.7 million). First-quarter exports to Mexico were down 14 percent (48,916 mt) and 23 percent ($219.4 million), respectively, though beef muscle cut exports to Mexico rebounded to some degree in March at 9,103 mt – the highest volume since December.

First-quarter exports equated to 12.5 percent of total U.S. beef production and 9 percent for muscle cuts only – both down slightly from a year ago. Export value averaged $243.21 per head of fed slaughter in the first quarter, down 16 percent from last year’s pace.

Pork exports surge to China/Hong Kong; chilled pork drives improvement in Japan
March pork exports to the China/Hong Kong region were 50,695 mt, up 80 percent from a year ago and the largest volume since December 2011. For the first quarter, exports to China/Hong Kong increased 83 percent in volume (124,231 mt) and 54 percent in value ($233.7 million). But China’s imports from all suppliers – especially the European Union – have been record-large in recent months, raising concerns that the market could soften despite the downward trend in domestic production.

Japan’s pork imports from all suppliers showed renewed momentum in March, which helped boost U.S. exports to Japan above year-ago levels for the first time this year. Led by strong demand for U.S. chilled pork, March exports were 36,914 mt, up 3 percent from a year ago and the largest volume since May 2015. March export value increased 5 percent to $138.7 million. For the first quarter, exports to Japan were still lower year-over-year in both volume (94,982 mt, -9 percent) and value ($363.2 million, -6 percent).

Pork exports saw mixed results in North America in March, with exports to Mexico falling 17 percent in volume (51,452 mt) and 16 percent in value ($86.6 million). For the first quarter, exports to Mexico were down 11 percent (159,947 mt) and 18 percent ($262.7 million), respectively. March exports to Canada were the largest in six months at 18,871 mt, which was steady with last year. Export value slipped 4 percent to $68.7 million. First-quarter exports to Canada were down 3 percent from a year ago in volume (47,510 mt) and 9 percent lower in value ($174.2 million).

Driven by strong growth in the Philippines, first-quarter exports to the ASEAN region increased 2 percent in volume (9,658 mt) and 1 percent in value ($21.1 million). Exports to the Philippines were up 10 percent (8,007 mt) and 18 percent (17,021 mt), respectively.

First-quarter pork exports to Central America were also higher in both volume (15,491 mt, +24 percent) and value ($35.5 million, +9 percent), led by strong growth in Honduras and Guatemala.

First-quarter exports equated to 24 percent of total pork production and 20 percent for muscle cuts only – both steady with last year. But for March, the muscle cut ratio was 22 percent – the highest in 10 months. Export value averaged $44.41 per head in the first quarter, down 10 percent from the same period last year.

Lamb export volume higher than a year ago; value shows signs of improvement
March exports of U.S. lamb increased 20 percent from a year ago to 875 mt. Export value was the highest since December at $1.68 million, but still down 12 percent year-over-year. For January through March, exports increased 18 percent in volume to 2,676 mt while value fell 16 percent to $4.49 million. Bermuda has re-emerged as a strong destination for U.S. lamb in 2016, though total exports to the Caribbean region were lower in the first quarter. Other emerging markets performing well this year include Singapore and the UAE.



USDA Announces Conservation Reserve Program Results

Agriculture Secretary Tom Vilsack today announced the enrollment of more than 800,000 acres in the Conservation Reserve Program (CRP) through the program's 49th sign up period. Through CRP, the U.S. Department of Agriculture (USDA) helps farmers offset the costs of restoring, enhancing and protecting certain grasses, shrubs and trees that improve water quality, prevent soil erosion and strengthen wildlife habitat. Farmers' and ranchers' participation in CRP continues to provide numerous benefits to our nation, including helping reduce emissions of harmful greenhouse gases and providing resiliency to future weather changes.

"The Conservation Reserve Program provides nearly $2 billion annually to land owners – dollars that make their way into local economies, supporting small businesses and creating jobs. When these direct benefits are taken together with the resulting economic activity, the benefits related to CRP are estimated at $3.1 billion annually," said Vilsack. "Over the past 30 years, CRP has created major environmental improvements throughout the countryside. The program has removed carbon dioxide from the atmosphere equal to removing nine million cars from the road annually, and prevented 600 million dump trucks of soil from erosion. With today's announcement, USDA is continuing these achievements by maximizing conservation benefits within the limitations provided by law."

This was one of the most selective sign-up periods in CRP's 30-year history, with a record high Environmental Benefits Index cut-off and the lowest-percentage of applications accepted. The high bar means that the per-acre conservation benefits are being maximized and that acres enrolled address multiple conservation priorities simultaneously.

A nationwide acreage limit was established for this program in the 2014 Farm Bill, capping the total number of acres that may be enrolled at 24 million for fiscal years 2017 and 2018. At the same time, USDA has experienced a record demand from farmers and ranchers interested in participating in the voluntary program. As of March 2016, 23.8 million acres were enrolled in CRP, with 1.7 million acres set to expire this fall.

Over three million acres have been offered for enrollment this year across the three main categories within CRP, with USDA's Farm Service Agency (FSA) receiving over 26,000 offers to enroll more than 1.8 million acres during the general enrollment period, and over 4,600 offers to enroll more than one million acres in the new CRP Grasslands program. Coming off a record-setting 2015 continuous enrollment of over 860,000 acres, more than 364,000 acres already have been accepted for 2016 in the CRP continuous enrollment, triple the pace of last year.

FSA will accept 411,000 acres in general enrollment, the most competitive selection in in the history of the program, with the acreage providing record high conservation benefits. USDA selected offers by weighing environmental factors plus cost, including wildlife enhancement, water quality, soil erosion, enduring benefits, and air quality.

The results of the first-ever enrollment period for CRP Grasslands, FSA will also accept 101,000 acres in the program, providing participants with financial assistance for establishing approved grasses, trees and shrubs on pasture and rangeland that can continue to be grazed. More than 70 percent of these acres are diverse native grasslands under threat of conversion, and more than 97 percent of the acres have a new, veteran or underserved farmer or rancher as a primary producer. FSA continues to accept CRP Grasslands offers and will conduct another ranking period later this year. Acres are ranked according to current and future use, new and underserved producer involvement, maximum grassland preservation, vegetative cover, pollinator habitat and various other environmental factors.

Participants in CRP establish long-term, resource-conserving plant species, such as approved grasses or trees (known as "covers") to control soil erosion, improve water quality and develop wildlife habitat on marginally productive agricultural lands. In return, FSA provides participants with rental payments and cost-share assistance. Contract duration is between 10 and 15 years.

CRP is currently protecting more than 100,000 acres of bottomland hardwood trees, nearly 300,000 acres of flood-plain wetlands, and 300,000 acres each for duck nesting habitat and nearly 250,000 acres of upland bird habitat. In addition, CRP is creating economic benefits that include at least $545 million per year in recreation benefits and water quality benefits from reduced sedimentation of $587 million per year.



NRCS, FSA Prompted to Re-Evaluate, Improve Conservation Compliance Reviews

The USDA’s Office of Inspector General (OIG) released an interim audit report that the Natural Resources Conservation Service (NRCS) and the Farm Service Agency (FSA) need to improve their method for reviewing conservation compliance.

In its investigation, the OIG revealed that only one FSA program, the Direct and Counter-cyclical Program (DCP), subjected its enrolled producers to random sample reviews from 2012-2014, despite the fact that all recipients of payments, loans, or other benefits from NRCS and FSA are all required to comply to the same extent as DCP participants with the highly erodible land (HEL) and wetland conservation requirements. The report also identified that in 2014, data from 10 states was omitted, with invalid results and records.

With these revelations, OIG claims that the agencies cannot now verify an accurate representation of producer compliance.

Following this, the OIG recommended that NRCS, FSA, and RMA establish a working solution to make the process for reviewing compliance more efficient, including creating working groups, outlining the roles of the agencies, and developing methodology for conducting reviews. Efforts are now being made to improve the review process in accordance with the findings.




Bio-Based Motor Oil Being Tested in Federal Vehicles
(from the American Soybean Assoc. weekly newsletter, 05-05-16)

The Department of Defense has begun testing bio-based oil in federal vehicles, the Defense Logistics Agency (DLA) said.

The tests, which include the use of oil that contains a 25-40 percent mix derived from agricultural products such as canola or soybean oil as well as animal fats, are being tested at four Air Force bases and a Department of Homeland Security facility. DLA said program managers are looking to expand to other federal agencies soon. DLA said it is conducting the tests in partnership with the Air Force Research Laboratory.

“Our office funds projects like this to find alternatives not only to reduce hazardous materials, but to reduce our reliance on foreign oil,” Andy Shaban, chemical engineer and DLA Aviation program manager, said in a statement. “Oil and greases are typically composed of base oils thickened with polymers, solids and other additives, which are considered hazardous. Our job is to find an environmentally safer substitute for the traditional oil that military and federal agencies use in non-tactical vehicles.”

The tests, which are designed to assess the compatibility of bio-based synthetic oil in government fleets, are being conducted under authority granted by Congress in the 2002 Farm Security and Investment Act. The Pentagon uses about 1.1 million gal of four-cycle engine oil in 180,000 vehicles each year, according to DLA. A total of 633,000 vehicles are maintained by the federal  government overall, it said.

The testing began in January at the Seymour Johnson Air Force Base in North Carolina. Bio-based synthetic oil replaced conventional motor oil in four base vehicles. The process was repeated on 40 more vehicles at air bases in Arizona, Montana and Washington state at the DHS Federal Law Enforcement Training Center.

The testing locations were chosen to provide further information on the environmental impacts various climates may have on the oil.

The testing will consist of driving and long idling sessions over a 12-18 month period.

“Some of the testing will be based on mileage, some will be time-based,” Shaban said. “After a certain mileage or time frame, the oil will be removed and sent to a lab for testing. If the requirement was to change the conventional oil at 5,000 miles, we will test the bio-based oil at 5,000 miles and compare.

Bio-based synthetic oil from Biosynthetic Technologies, G-Oil (Loch Sciences) and BioBlend are being used in the testing, DLA said.



With Corn Exports Struggling, Grains In All Forms Offer Brighter Picture

U.S. exports of feed grains in all forms for September through March of this marketing year totaled 51.4 million metric tons, down 7 percent from the same period last marketing year, with higher exports of distiller’s dried grains with solubles (DDGS), corn gluten feed, corn gluten meal, sorghum and pork working to offset weaker exports of corn, barley, beef, poultry and ethanol, according to numbers released this week by the U.S. Census Bureau.

Last marketing year, U.S. exports of feed grains in all forms totaled a near record 100 million tons, representing 26 percent of U.S. corn, sorghum and barley production. This year, the U.S. Grains Council (USGC) expects the total will be in the range of 93 to 96 million tons based on export statistics to date and market conditions.

U.S. feed grains in all forms is a measurement including U.S. corn, sorghum, barley, DDGS, corn gluten feed, corn gluten meal and ethanol as measured in corn equivalents, as well as the grains consumed in the production of meat and poultry.

By accounting for all feed grains that are exported by the United States – in either unprocessed or value-added form – the measure is intended to offer a holistic look at demand from global customers being met by U.S. farmers. It also offers a more expansive view of the amount of U.S. feed grain production being exported.

For instance, this marketing year, U.S. corn exports have decreased by 15 percent compared to last marketing year as they face challenges from the strong U.S. dollar and larger-than-expected global grain supplies. Among the top 10 markets, the most notable declines have come in Asian markets with exports down to Japan (-30 percent), Korea (-48 percent) and Taiwan (-49 percent). However, there are bright spots including Mexico, which is up 24 percent and has overtaken Japan as the top U.S. corn market so far this marketing year. Other notable gainers include Colombia (+11 percent), Saudi Arabia (+19 percent) and Guatemala (+12 percent).

DDGS sales have also been a bright spot, with shipments during the first seven months of the marketing year up 18 percent. This corn co-product has the potential to reach a record amount of exports this year, with broad-based gains including seven of the top 10 markets showing increases. The best performing market has been China, with exports up significantly, though this was in part due to lower-than-normal exports early in the 2014/2015 marketing year. Other major markets showing gains included Mexico (+4 percent), Vietnam (+38 percent), Korea (+24 percent), EU-28 (+29 percent), Thailand (+9 percent), and Indonesia (+36 percent).

At the same time, U.S. ethanol exports are down 4 percent as sharply lower petroleum and gasoline prices have hurt exports to discretionary blending markets. However, China has increased its imports of U.S. ethanol, registering its highest level of U.S. ethanol imports ever in March. For September to March of this marketing year, China has purchased 134.7 million gallons (510 million liters) total, which is only fractionally lower than Canada, the traditional top market for U.S. ethanol with 135.2 million gallons (512 million liters) purchased during the same period.

USGC's global staff is closely watching a recent uptick in sales not captured in the statistics released this week and expects continued strength in future export reports. This is based on recent sales to Colombia, Korea and countries in North Africa as well as sales to markets that don’t typically come in as top U.S. importers, including South Africa and Pakistan. Information from the trade indicates that ethanol exports also continue to show strength as the marketing year continues.

Programming from USGC's global offices will continue to target customers seeking to capitalize on the favorable price environment and logistic advantages buying from the U.S. can offer and will evolve as needed as the corn growing season in the U.S. begins.



USGC Offers Support For Modified Changes To U.S. Grains Standards Act

The U.S. Grains Council (USGC) and a coalition of grain and feed trade associations last week urged reforms to a proposed rule from USDA’s Grain Inspection, Packers and Stockyards Administration (GIPSA) to ensure that intermittent service withdrawals by the agency don’t disrupt export shipments.

In a letter sent supporting proposed rule changes made to the U.S. Grain Standards Act (USGSA), the Council, the National Oilseed Processors Association (NOPA) and other state and regional groups said that safeguards should ensure that the kind of disruptions in export shipments resulting from intermittent withdrawal of official services like those that occurred at the Port of Vancouver, Washington, during 2013-2014 never reoccur.

Amendments made to the USGSA by Congress represent the most significant changes to the statute in nearly 20 years and are expected to have a significant impact on U.S. exports.

These issues include:
-    calculation and adjustment of fees to maintain a three- to six-month operating reserve for inspection and weighing services;
-    new definitions and clarification of provisions in existing requirements; and
-    the addition of an important new section to the statute that would require delegated states to notify GIPSA if they plan to temporarily discontinue official service.

“The comments we submitted reinforce the importance of the feed grain value chain’s reliance on GIPSA and its delegated state agencies,” said USGC Director of Trade Policy and Biotechnology Floyd Gaibler. “It is of great importance that these agencies continue to provide and perform state-of-the-art, market responsive official inspections and weighing services in an efficient, cost-effective and reliable manner.”

The groups recommended a suspension of the $0.011 per metric ton fee that is collected on U.S. domestic grain shipments inspected and/or weighed until the agency’s operating reserve reaches four and a half months of average monthly expenses based on the previous fiscal year’s spending.

Finally, the comments offered strong support for regulations requiring notification to export facilities if official service is to be discontinued by delegated official agencies 72 hours in advance of the discontinuation of such service. This is similar to the requirements to notify the U.S. Secretary of Agriculture of such discontinuance.

The comments that were filed align with a similar document that was filed by the National Grain and Feed Association and the North American Export Grain Association.



Jobe Leaves NBB After 20 Years to Pursue Other Opportunities

National Biodiesel Board CEO Joe Jobe leaves trade association after nearly 20 years with the organization to pursue other opportunities, NBB said in a statement on Thursday, May 5.

Jobe began with NBB in 1997 and was named CEO in 1999. During his tenure with the trade association, the industry expanded from 200,000 gallons of production to more than two billion gallons projected for this year.

"I want to thank the National Biodiesel Board for giving me the opportunity to work in an industry that is helping to change the world," Jobe said. "I love this industry -- the hard-working people, the visionary leaders, and the product that I will continue to use every day. Now is a good time for me to pursue a different path. Biodiesel is positioned to lead the carbon reduction goals of the nation and I can't wait to see what biodiesel does next."



2015 KS Wheat Quality Council Hard Winter Tour Completed

Twenty-two cars with 88 crop scouts surveyed and evaluated the potential of the Kansas wheat crop the week of May 4-7, 2015. The total number of field stops was 659 compared to 587 one year ago. This year the weather was muddy most of the time, making things more difficult. The participants attended a brief training and tour overview session in Manhattan on the evening of May 4 before enjoying a great steak fry.

Day One saw the 22 cars traveling on six different routes from Manhattan to Colby. The wheat seemed pretty good on most routes in the Central portion of the state, with the drought being very evident. The Nebraska route found fair wheat in the south Central averaging about 34 bu/acre. As the routes moved farther west, the drought became even more evident.  Yields for the day ranged from 12-76 bushels per acre with the day one average on all routes at 34.3 bushels. This compares with 34.7 bushels one year ago. We stopped in 284 fields on day one. A group scouted eastern Colorado and reported a yield average of 38 bushels and estimated a total production of 89.3 million bushels for 2015. The NE Wheat Board estimated their production at 37 bushels and 54.4 million total.

Day Two the cars traveled from Colby to Wichita. Several cars went into the far western Kansas counties and three cars actually covered the northern tier of Oklahoma counties. The western Kansas area was reported as being still very dry. The cars in Oklahoma found better wheat this year than for the past several years. The day two average was 34.5 bushels per acre compared to 30.8 in 2014. We had a range from 0-79 bushels and made 305 stops. Oklahoma reported an estimated 29.4 bushels per acre and a total production of 111.7 million bushels. This compares with 47.6 million bushels last year.

Day Three concluded the trip with the cars traveling from Wichita to Kansas City. We lost some cars and a few people in Wichita and made 70 stops on a shortened day. This smaller production area does not have a significant impact on the state-wide average, but is usually a high yielding area. Yields ranged from 20-95 bushels with the day three average at 48.9 compared to 37.8 last year.

The Calculated Average for the entire tour was 35.9 bushels per acre compared to 33.2 bushels on the same routes in 2014. The scouts use a formula provided by KS Ag Statistics to arrive at their calculated average. The formula is based on a 10-year rolling average and changes slightly from year to year.

The Estimated Production for the Kansas crop by 53 participants who joined the pool this year is 288.5 million bushels compared to our 2014 estimate of 260.7. These people base their estimates on yield estimates and acres expected to be harvested. There are always a number of abandoned acres and they attempt to factor that into the equation.

KS Ag Statistics will release their official estimate of the crop on May 12.



KENTUCKY FARMER NAMED 2016 NATIONAL “FARM MOM OF THE YEAR”

After nearly two weeks of online voting, America has determined the national winner in Monsanto’s 2016 America’s Farmers Mom of the Year contest. Kentucky farmer Mary Courtney, who started her farm with her husband, Shane, and now grows corn, soybeans, burley tobacco, mixed vegetables, green bell peppers, eggplant, cucumbers, squash and zucchini, specialty peppers and seedless watermelon, and raises cattle, garnered the most online votes to capture the national title. She is the first ever regional or national winner from the Bluegrass State.

Mary was one of five women who were recognized at the end of April as a regional finalist in the program. All of them, including Ann Stamp (Cranston, R.I.), Karen Kasper (Owatonna, Minn.), Katie Heger (Underwood, N.D.), Nikki Weathers (Yuma, Colo.) and Mary were selected by both the American Agri-Women and Monsanto for their dedication and commitment to their families, farms, communities and the agriculture industry.

America voted online at www.AmericasFarmers.com from April 22 through May 4 for one of the five regional finalists to be named the national winner. All five women will receive $5,000. Mary will receive an additional $5,000 for securing the most votes to be named the national “Farm Mom of the Year.”

“I had the fortunate opportunity to meet all of these women in person at the end of April, and their energy and passion for their families, communities and agriculture is absolutely inspiring,” says Tracy Mueller, corporate brand manager for Monsanto. “These women are literally helping nurture and grow our world. They love talking about their lives and their farming lifestyle, yet they are so humble about their invaluable role. We can’t wait for everyone to learn more about what they do and how they’re making a positive difference in farming today.”

About Mary Courtney
Mary was nominated for the America’s Farmers Mom of the Year contest by her husband, Shane. In his nomination, he noted that being a mom is no easy task, but Mary makes being a full-time farmer, director of a multi-state ag lender and mother of four look easy.

“Where she has a will, she finds a way. We began our farming operation from scratch in 2008, the same year we welcomed our first son. It is with tenacity and fortitude, she taught herself payroll taxes, manages a crew of 18 migrant workers, plans, produces, and markets an abundance of local fruits and vegetables, contracts grain, and teaches the oldest children to bottle feed calves, while the youngest is in tow.”

Mary is an active member of the Kentucky Farm Bureau, and she spends any “free time” she has minimizing barriers for the next generation of agriculturists as well as speaking about agriculture to help lessen any food fears consumers may have. She created a “Touch the Dirt Day” event to encourage consumers to come out to their farm and learn about agriculture, she works on various ag literacy efforts and provides guidance to the local cooperative extension. 



Reduce Summer Pneumonia Risk in Calves

While summer offers warm weather and green pastures, the season also threatens calves with summer pneumonia — an often fatal respiratory condition for young calves. Changing weather conditions and stress from working or transporting calves opens the door for the primary pathogens that cause summer pneumonia, Bovine Respiratory Syncytial Virus (BRSV) and Mannheimia haemolytica.

“Summer pneumonia is a real challenge and can occur during dry or wet weather conditions,” said Jon Seeger, DVM, managing veterinarian with Zoetis. “Young calves may not last long with summer pneumonia and can succumb to the disease quickly. Identifying sick calves isn’t difficult, but identifying them early in the disease process, when clinical signs can be most effectively addressed, becomes more challenging when the calves are turned out on pasture.”

Clinical signs for summer pneumonia can include droopy ears, sluggish demeanor, extended neck, rapid breathing and nasal discharge — all signs commonly seen in bovine respiratory disease (BRD). Keeping a consistent, watchful eye on cattle offers the best chances for early detection and prevention.

Vaccination programs, combined with sound herd management, are key. By ingesting colostrum, calves absorb maternal antibodies that initiate a strong immune system early in life; however, this immunity quickly deteriorates as the calf gets older, making vaccinations even more vital. Vaccines train the calf’s immune system to recognize and fight the viruses and bacteria it encounters later in life.

“Think of a vaccination program like sending the calf’s immune system to school,” Dr. Seeger said. “It’s important for producers to vaccinate calves before putting them out for summer so they can develop the proper immune capabilities.”

Vaccinating young calves in the springtime will help you and the calf win the fight against summer pneumonia before it begins.  A great way to provide your calves a strong start is through an initial vaccine series with INFORCE™ 3 and ONE SHOT® BVD. INFORCE 3 is the most trusted and utilized respiratory vaccine on the market, and the only vaccine that can prevent respiratory disease caused by BRSV and aid in the prevention of IBR virus and PI3 virus.1 By adding ONE SHOT BVD to the initial vaccination series, producers provide their calves a rapid, balanced immune response against all of the important bovine respiratory disease pathogens and the highest level of protection available against Mannheimia haemolytica. A fall booster to this initial series with BOVI-SHIELD GOLD ONE SHOT® provides uncompromised protection against the important BRD pathogens and a long duration of immunity to meet the needs of any production system. BOVI-SHIELD GOLD ONE SHOT is the only combination vaccine which can prevent three important BRD conditions, while also providing the highest level of protection available against M. haemolytica in a single, convenient injection.

Dr. Seeger shares the following tips to reduce summer pneumonia risk:
·         While all calves are at risk, calves born to heifers and young cows have the highest risk of summer pneumonia
·         When working cows, handle calves with care to avoid unnecessary stress
·         Observe calves frequently to detect sickness in its earliest stages
·         Be mindful of extreme heat and dust when working, driving or transporting cattle
·         Administer respiratory vaccines before pasture turnout

“Anything abnormal to the animal’s environment or daily activity can be a stress factor, and young calves’ immune systems must compensate for it,” Dr. Seeger said. “When calves are taken out of their normal comfort zone, keep an eye on them for at least the next seven to 10 days to make sure sickness doesn’t follow the associated stress.”  



Mosaic Co. Sales, Net Income Down

The Mosaic Company reported first quarter 2016 net earnings of $257 million, down from $295 million in the first quarter of 2015. Earnings per diluted share were $0.73 and included a positive impact of $0.59 from notable items, primarily related to currency and tax benefits.

Mosaic's net sales in the first quarter of 2016 were $1.7 billion, down from $2.1 billion last year, reflecting lower prices as well as lower potash sales volumes. Operating earnings during the quarter were $163 million, down from $319 million a year ago, as the lower net sales were partially mitigated by lower potash and phosphate production costs and benefits of continued expense management initiatives.

"We are seeing the benefits of the actions we've taken to weather this down part of the cycle," said Joc O'Rourke, President and Chief Executive Officer. "While we expect profitability to improve in the second half of the year, we are making further adjustments to ensure Mosaic remains competitive in any environment."

Cash flow provided by operating activities in the first quarter of 2016 was $266 million compared to $729 million in the prior year. Capital expenditures plus investments totaled $274 million in the quarter. Mosaic's total cash and cash equivalents were $1.1 billion and long-term debt was $3.8 billion as of March 31, 2016. The Company completed a previously announced $75 million accelerated share repurchase.



Zoetis Report Strong Quarterly Financials

Zoetis Inc. reported its financial results for the first quarter of 2016 and updated its guidance for full year 2016 and full year 2017.

The company reported revenue of $1.2 billion for the first quarter of 2016, an increase of 5% compared with the first quarter of 2015. Revenue reflected an operational1 increase of 12%, excluding the impact of foreign currency.

Net income for the first quarter of 2016 was $204 million, or $0.41 per diluted share, an increase of 24%, compared with the first quarter of 2015. Adjusted net income2 for the first quarter of 2016 was $239 million, or $0.48 per diluted share, an increase of 15% and 17%, respectively.

Adjusted net income for the first quarter of 2016 excludes the net impact of $35 million, or $0.07 per diluted share, for purchase accounting adjustments, acquisition-related costs and certain significant items. On an operational basis, adjusted net income for the first quarter of 2016 increased 28%, with foreign currency having a negative impact of 13 percentage points.

Due to accounting calendars, the first quarter of 2016 includes six additional calendar days compared with the first quarter of 2015, resulting in higher sales, costs and expenses. The company estimates the impact of the additional days to be approximately 6 percentage points of operational growth.'