Tuesday May 10 Ag News

2015 NE Farm Economy Preliminary Averages
Nebraska Farm Business, Inc.

We are about 75% complete with our averages for 2015 and there is certainly many interesting things to be pulled from the data.

Net Farm Income is coming in around $32,000 for 2015.  This is an $115,000 drop from 2013 and 2014’s average income right around $175,000.  That’s about an 80% decline in net farm income in just one year.  While crop operations saw a second year with a 50% decline in profitability, the major change came in the disappearance of profitability in the livestock industry.  Our hog, beef and dairy groups are all showing negative net farm income averages.

2015 will mark the first time we will see an average net worth loss since 2002 and the largest net worth loss since 1984.  While the total debt owed stayed about the same, asset values (most typically grain and livestock prices) dropped.  Another contributor to the net worth loss, larger than price drop, is non-farm spending.  Average family living spending is down about $6,000 or about 6% but it is still considerably higher than farm and non-farm income combined.

Another area that is standing out for concern is the current debt situation, namely the current ratio and working capital.  The average current ratio is down to 1.6 which is the lowest we’ve seen since 2004 and 2005.  Working capital to gross revenue is down to 30%.  Both these measures are below the industry standards for a healthy operation.  These measures show us the ability of a farm to be able to service its debts over the next 12 months.  As they deteriorate, we will see tightening cash flows, the need to refinance or banks fully pulling their funding.

There is some good news.  The preliminary average cost to produce an acre of irrigated corn has come down from $820/ac to $800/ac.  With almost record high yields, there was just enough income to cover these costs, but not enough to cover family living needs.  This is the second year in a row we are seeing total costs decline.  This is encouraging to see some adjustments to most input costs and hope that will continue into 2016.



See for Yourself Program Delivers for Nebraska Soybean Growers

Farmers who only focus on the process of growing crops and delivering them to the local elevator may be missing an important part of the big picture according to participants in the Nebraska Soybean Board’s (NSB) See for Yourself program. The NSB hosted more than 30 farmers, ag industry leaders and staff members on two learning experience tours; to Mexico in February and the Seattle area in March.

Keith Heithoff of Elgin says the See for Yourself tour in the Seattle area helped him to better understand how soybeans are shipped overseas. He was also surprised at the role cleaner-burning biodiesel, made with soybean oil, plays in fueling transportation in the environmentally sensitive Puget Sound. “It’s unbelievable the amount of knowledge among the people on the trip,” Heithoff said. “I was really glad I went.”

On the See for Yourself experience in Mexico, participants learned how Nebraska soybeans are used for poultry production, aquaculture and cooking oil. Brian Brown of Central City was impressed by the role the soybean checkoff plays in increasing market share for U.S. soybeans in Mexico. “The local producers there who buy our products like to meet face to face with the people they’re buying from,” Brown said. “I think the checkoff and See for Yourself are very worthwhile.”

Mexico is the second largest export market for U.S. soybeans. Cortland farmer Leon Dorn was surprised at what checkoff-funded organizations do to promote U.S. soybeans. “We have people on the ground working one-on-one with the poultry and aquaculture operations,” Dorn said. “Our people are there to increase our market share of soybean meal and soybean oil, using our checkoff dollars to ultimately improve the price of soybeans.”

The goal of the See for Yourself program is to help farmers learn how the soybean checkoff is used to develop and grow markets for U.S. soybeans. Participants in this year’s events say most farmers could benefit from the program. “It’s neat to see firsthand that they’re actually using that money to promote new uses for soybeans,” said Brown. “I encourage farmers to go, especially if you question why you pay the checkoff. Go for yourself and see.”

This was the eleventh consecutive year for the NSB to host the See for Yourself program. Farmers interested in applying for the program in the future should look for information this fall at NebraskaSoybeans.org. 



NEBRASKA CROP PRODUCTION REPORT

Based on May 1 conditions, Nebraska's 2016 winter wheat crop is forecast at 61.3 million bushels, up 33 percent from last year’s crop, according to the USDA’s National Agricultural Statistics Service. Average yield is forecast at 49 bushels per acre, up 11 bushels from a year earlier. If realized this would tie the record yield from 2014.

Acreage to be harvested for grain is estimated at 1.25 million acres, up 40,000 acres from a year ago. This would be 93 percent of the planted acres, above last year’s 81 percent harvested.

May 1 hay stocks of 1.45 million tons are up 16 percent from last year.

USDA:  Winter Wheat Production Up 4 Percent from 2015
Winter wheat production is forecast at 1.43 billion bushels, up 4 percent from 2015. As of May 1, the United States yield is forecast at 47.8 bushels per acre, up 5.3 bushels from last year. If realized, this will equal the record yield set in 1999.

Hard Red Winter production, at 863 million bushels, is up 4 percent from a year ago. Soft Red Winter, at 357 million bushels, is down nearly 1 percent from 2015. White Winter, at 208 million bushels, is up 13 percent from last year. Of the White Winter production, 17.4 million bushels are Hard White and 191 million bushels are Soft White.



POSTEMERGENCE WEED CONTROL IN ALFALFA
Bruce Anderson, NE Extension Forage Specialist

               Are weeds showing up in your new alfalfa?  If they get thick, your alfalfa will suffer.  Check your fields today after listening to some options to control those weeds.

               Alfalfa seedlings compete poorly with weeds.  Control decisions can be difficult.  Vigorous weed growth this spring might be making it extra tough for your seedlings to compete with these weeds.

               When weeds, especially broadleaf weeds, threaten seedling alfalfa, a common method to control them is mowing.  Adjust mowing height so several leaves remain on alfalfa seedlings after clipping to help your alfalfa seedlings regrow rapidly.  Also, do not smother small seedlings with clippings.  So mow weeds before they get so tall that they produce a large quantity of clippings.

               If you would rather spray broadleaf weeds than mow them, use either Buctril, Butyrac, Pursuit, or Raptor.  Buctril controls most small broadleaf weeds, but alfalfa injury can occur when temperatures exceed 80 degrees.  If you expect those high temperatures when you spray, it might be better to use Butyrac, Pursuit, or Raptor.  These herbicides also control most small broadleaf weeds, but weeds must be less than three inches tall or results will be inconsistent.  Pursuit and Raptor are more expensive but their soil activity will continue to control weeds throughout much of the season.

               Mowing is not very effective with grassy weeds, so use Poast Plus or Select to kill grassy weeds.  Make sure you spray before grasses get 4 inches tall or control will be spotty.

               Weeds reduce growth of new alfalfa by shading and competing for moisture.  You can prevent these problems by acting quickly.  Exam your fields soon and control weeds as needed.



DRAINING/ALTERING WETLANDS COULD COST PRODUCERS USDA PROGRAM BENEFITS

USDA reminds producers to check conservation compliance rules before installing tile drainage systems.

Nebraska farmers are urged to talk with USDA Natural Resources Conservation Service (NRCS) before draining any wet areas or bringing new land into production. NRCS State Wildlife Biologist Ritch Nelson says there has been an increased interest by producers to install tile drainage systems to address soil moisture issues on cropland.

“It is important to note that producers who receive certain benefits from USDA may be subject to restrictions when tile drainage systems impact wetlands protected by the Food Security Act initially passed in 1985,” Nelson said.

Those benefits include USDA loans and disaster payments from the Farm Service Agency; conservation programs from the Natural Resources Conservation Service; and federal crop insurance premium subsidies.

Nelson said, for growers planning to install a new drainage system, it's a good idea to contact the Farm Service Agency and sign an AD-1026 form. “Then the Natural Resources Conservation Service (NRCS) will complete a wetland determination to make sure the ground you're installing on isn't a wetland.”

Nelson pointed out that wetlands are not always as obvious as a pond of water with ducks swimming in it. In fact, wetlands are not always wet.

“Wetlands are identified by several characteristics, including hydric soils, hydrophytic (or “water-loving”) vegetation, and inundated or saturated hydrology. Areas of a field that are difficult to plant during a wet spring may exhibit these characteristics even if they do not pond water for several days at a time,” Nelson said.

Wetlands protected by the Food Security Act can be difficult for producers to identify on their own. Protected wetlands may be small, and may occur in places such as shallow depressions on flat cropland, along a sloped drainage where a side hill seep is present, or along the fringe of a small stream channel, just to name a few examples.

Nelson said, “It is important to consult with NRCS on your tile design prior to installation to ensure it won’t affect your farm program eligibility.  In some cases, the tile could be designed to drain some areas of the field without affecting the hydrology of the wetland.  These design considerations are based on site-specific factors, so you will need to consult with NRCS to determine what you can do.”

Nelson stressed that these requests should be submitted to USDA as early as possible since some counties experience a high volume of requests for certified wetland determinations.  Often, field data must be collected at times of the year when the ground is not frozen or when tall crops such as corn restrict access to the possible wetland areas.

“If you have a wet area which you’re considering altering, come in and talk to the NRCS staff. We can do a wetland determination to know if that area is a wetland or not and keep you in compliance with your current conservation plan,” says Nelson.  “The ramifications of altering wetlands can be significant in terms of the potential for losing USDA financial assistance and also in the amount of time that it takes to resolve unapproved alterations.”

Landowners are also encouraged to visit NRCS staff about voluntary conservation programs that provide farmers payments for preserving or restoring wetlands.  Landowners benefit by retaining ownership and access to their land. They no longer try to farm marginal cropland, and have possible income opportunities from recreation, grazing or haying.

For more information about wetlands, conservation programs or compliance issues, visit your local NRCS field office or www.ne.nrcs.usda.gov.



HORSE QUARANTINE RELEASED AT FONNER PARK IN GRAND ISLAND

State Veterinarian Dr. Dennis Hughes has released the quarantine issued for Fonner Park in Grand Island after three confirmed cases of Equine Herpes Myeloencephalopathy (EHM) were detected there last month.

“The horses at Fonner Parker were quarantined for 21 days where they were monitored closely.  During that time, no further cases were confirmed so the quarantine has been lifted,” said Dr. Hughes.  “We continue to ask horse owners and facility managers to take precautions to prevent the spread of the disease by remaining vigilant and following strict biosecurity measures.

EHM is the neurological form of Equine Herpes Virus (EHV-1) and cases of the disease have been confirmed in several locations around the country this year.

The disease is spread through direct or indirect contact with infected horses, so Dr. Hughes encourages operators of horse shows and exhibitions to review their biosecurity plans and minimize the opportunity for horses to have direct or indirect contact with each other. Indirect contact includes the use of shared water and feed sources, as well as the use of shared equipment. In addition, Dr. Hughes said he recommends horse owners planning to travel to shows and exhibitions contact the venue prior to transporting their horses to inquire about entrance requirements for the event.

Biosecurity measures horse owners should take at their own operations include requiring individuals to wash their hands before and after contact with each horse, disinfecting boots and changing clothes that come into contact with horses other than their own.

“If possible, horse owners should avoid contact with other people’s horses, and isolate horses returning from shows or exhibitions for 3 to 4 weeks,” said Dr. Hughes. “Owners who will be co-mingling their horses also should consider contacting their veterinarian to discuss their horses’ current vaccination status and weigh the benefits of vaccination.”

EHM symptoms include: fever, decreased coordination, nasal discharge, urine dribbling, loss of tail tone, hind limb weakness, leaning against a wall or fence to maintain balance, lethargy and the inability to rise. While there is no cure, the symptoms of the disease may be treatable. Additional information can be viewed at www.nda.nebraska.gov/animal/diseases/ehv/index.html.



Iowa Cash Rent Prices Decline for Third Consecutive Year

For the third consecutive year rental rates for Iowa farmland declined, according to results from the 2016 Cash Rental Rates for Iowa Survey conducted by Iowa State University Extension and Outreach.

After 15 consecutive years of rental price increases (1998-2012), prices have now gone down for three straight years. Prices dropped by 6.5 percent in 2015 after a five percent decrease the year before. 

“Cash rents are declining but not as fast as crop prices,” said Alejandro Plastina, assistant professor in economics and extension economist at Iowa State University. “Prices have dropped for cash crops by between 50 and 60 percent in the last three years and rent has gone down 15 percent. Profitability in cash rented acres will still remain tight despite lower cash rents in 2016.”

Rental rates are $230 per acre statewide, with a dip in prices shown in all nine of the state’s districts. The state average rate was $246 last year and was $270 just three years ago. The largest drop in prices came from District 3, a $23 drop in the counties making up the northeast corner of the state. Regions 4 (west-central), 5 and 7 (south-west) all saw decreases of $20 or more as well.

Despite its drop in rental price, District 3 also had the highest cost in the state for the second consecutive year, averaging $273 per acre.

The district with the lowest cost per acre, also saw the smallest drop in rental price. Cost per acre in District 8 (south central Iowa) went down just $4, falling from $187 per acre to $183.

“I don’t expect crop prices to improve a lot over the next year,” Plastina said. “With profitability of cash rented acres remaining tight over the course of 2016, I do not anticipate seeing an increase in cash rent prices either.”

Rental values were estimated by asking people familiar with land rental markets what they thought were typical rates in their county. Of the 1,585 responses received, 47 percent came from farm operators, 25 percent from landowners, 14 percent from agricultural lenders, 12 percent from professional farm managers and realtors and 2 percent from other professionals. Respondents indicated being familiar with a total of 2.5 million cash rented acres across the state.

Cash rent survey results can be used as a reference point for determining an appropriate cash rental rate for a particular farm, but a number of factors (such as small size or unusual shape of fields, terraces or creeks that affect the time it takes to plant and harvest crops, high or low fertility levels or pH index, or longevity of the lease) may justify a higher or lower than average rent.

The Cash Rental Rates for Iowa – 2016 Survey is available online from the Extension Store and Ag Decision Maker.



Grassley, Ernst Seek Information from Agriculture Secretary on USDA Payment Formula

In a letter to Agriculture Secretary Tom Vilsack, U.S. Senators Chuck Grassley and Joni Ernst requested more information from the United States Department of Agriculture regarding the methodology for determining county yields for the Agriculture Risk Coverage or ARC County program.

The majority of Iowa corn and soybean farmers signed up for the ARC program that was enacted in the 2014 farm bill. The formula used to determine ARC payments is composed of two factors, including the average marketing year price and the average county yield.

Grassley and Ernst are seeking to learn more about the process the USDA uses to determine county yields because there are several instances of significant discrepancies in payments between adjacent counties.

In 2014, Calhoun County received a payment of $23.21 per acre while the county directly north, Pocahontas County, received $91.52 and the two counties to the south received about $75 an acre. Webster County, to the East of Calhoun, received $46.80 per acre, double the payment that farmers in Calhoun County received.

“Farmers have raised concerns about the yield data being utilized by USDA and the resulting distribution of payments to counties," wrote Grassley and Ernst. "We recognize counties are different sizes which can affect how well the crops in a county correlate to the county average yield. However, legitimate questions have been raised about the significant payment disparity that has occurred between adjacent counties in certain areas throughout the country."



Wright Joins ISU Extension as Farm Management Specialist

Gary Wright, an Iowa State alumnus with extensive experience in agricultural finance and production, has joined the Iowa State University Extension and Outreach team as a farm management specialist, the university announced today.

Wright will serve as northwest Iowa’s farm management specialist, working with farmers and producers in Lyon, Osceola, Sioux, O’Brien, Plymouth, Cherokee, Woodbury, Dickinson, Emmet, Clay, Palo Alto, Buena Vista and Pocahontas counties. Wright’s office will be located in the Iowa State University Extension and Outreach – Woodbury County office.

Wright’s roots in northwest Iowa are deep, with over 20 years of experience working in that area of the state. The co-owner and operator/manager of family row crop LLC operations in the area, Wright has also worked as a credit officer, vice president of finance and director of human resources in the agricultural finance industry. Most recently he has served as a consultant for the Northwest Iowa Farm Business Association in Spencer, Iowa and as the agricultural marketing director for Heartland Farm Partners in Lincoln, Neb.

He also has educational experience, spending three years as an adjunct instructor at Western Iowa Technical and Community College. Additionally, Wright has earned multiple leadership certifications (Covey 7-Habits of Highly Effective People, Blanchard/Hersey Situational Leadership, Achieve-Global Leadership (Master Facilitator), Kaufman FastTrack Entrepreneurial Trainer).

“Gary already is familiar with northwest Iowa and has a deep background in farm financial management,” said Chad Hart, farm management team leader at Iowa State University Extension and Outreach. “We are adding someone with experience advising diversified farms, who has worked on the lending side and has a passion for educating people on agriculture. He is an educator with an outgoing personality who brings a wealth of experience to the team.”

Wright holds a degree in Agricultural Business and Finance from Iowa State University and has a Master’s of Business Administration from the University of South Dakota.



New Website for Regional Corn Nitrogen Rate Calculator

The regional Corn Nitrogen Rate Calculator website, which has been helping farmers determine profitable nitrogen rates since 2005, now has a new URL (cnrc.agron.iastate.edu) and a revised nitrogen response trial database, and is more user friendly for mobile devices.

The largest changes to the website are the updated individual state nitrogen rate response trial database and, for Iowa, the addition of the southeast Iowa region. Nitrogen response trial sites for Iowa are grouped by two geographic regions, which now matches guidelines in the publication Nitrogen Use in Iowa Corn Production (CROP 3073). The publication can be downloaded for free at the online Extension Store.

“The site revisions allow users to have access to the latest nitrogen rate research, and it offers more tailored rate guidelines in Iowa,” said John Sawyer, professor and extension soil fertility and nutrient management specialist at Iowa State University.

While suggested nitrogen rates may have changed somewhat due to the update, the concept and calculation process of the online tool remains the same. The method continues to be based on a regional approach, providing nitrogen rate guidelines in six states across the Corn Belt: Iowa, Illinois, Michigan, Minnesota, Ohio and Wisconsin.

“The corn nitrogen rate calculator benefits farmers so they can understand needed nitrogen application rates, adjust for different crop rotations, and provide guidance and flexibility in choice of application rate,” said Sawyer. “More importantly, it allows adjustment in rate for changing nitrogen and corn prices.”

Using the Maximum Return to Nitrogen concept within the CNRC also helps farmers implement the most economical nitrogen rate inputs, which helps moderate water quality issues.

For more information about the CNRC, visit cnrc.agron.iastate.edu.



Beef Feedlot Assessment Field Days Set in Northwest Iowa

Beef producers in northwest Iowa who haven’t yet completed a feedlot assessment are invited to learn about the process at one of four field days offered through Iowa State University Extension and Outreach this summer. Extension beef specialist Beth Doran said the Beef Feedlot Assessment Field Days are provided in partnership with the Iowa Beef Industry Council and the Iowa Cattlemen’s Association.

“The purpose of the field days is to educate feedlot operators on how to complete the Beef Quality Assurance feedyard self-assessment,” Doran said. “At each location, we’ll score the processing area for working cattle, bunk and water management, animal and pen cleanliness and discuss the importance of a veterinary-client-patient relationship.”

Doug Bear, director of industry relations for the Iowa Beef Industry Council, said the field days will build on the success of earlier BQA training sessions.

“Results from previous Beef Quality Assurance trainings indicate that feedlot producers were very successful in completing their BQA training and developing two required protocols,” Bear said. “However, where we still have opportunity for growth is completing the feedlot self-assessments, especially for our industry’s future.”

Each field day begins at 10 a.m. and lasts for an hour. Doran encouraged people to preregister to ensure adequate supplies and refreshments for all attendees.

Field day dates, locations and preregistration information
-    June 1.  Harold Peyton feedlot, 3491 250th Street, Lytton. Contact Kelsey Lohff, Sac County ISU Extension and Outreach office, 712-662-7131.
-    June 2.  Kent Pruismann feedlot, 3431 Fig Avenue, Rock Valley. Contact Anita Jeltema, Sioux County ISU Extension and Outreach office, 712-737-4230.
-    July 8.  Winter Feedlots, Inc., 17638 Fir Avenue, Akron. Contact Janelle Johnson, Plymouth County ISU Extension and Outreach, 712-546-7835.
-    July 13.  Ron and Clayton Christensen feedlot, 3965 170th Avenue, Spencer. Contact Sarah Dirks, Clay County ISU Extension and Outreach, 712-262-2264.



Cattlemen's Webinar Series - International Beef Trade
May 12, 2016 - 7:00 p.m. Central

Beef trade has long been an important component of the cattle industry and often a confusing topic for cattlemen. Trade issues have made recent headlines in ag media and in the popular press' coverage of the current election season.

The upcoming webinar will feature the insights of industry experts; Kent Bacus, National Cattlemen's Beef Association Director of International Trade and Market Access; and Dan Halstrom, U.S. Meat Export Federation Senior Vice President of Global Marketing.

Join the free webinar to hear an update on the current state of beef trade, policy issues that are effecting beef trade today and what the experts see in the future for beef trade. Participants will have the opportunity to ask questions immediately following the presentations.

Register here.... https://attendee.gotowebinar.com/register/8388965130867031553. 



Meat and Poultry Exports Ship Profits to U.S. Soybean Farmers

The importance of poultry and livestock to soybean farmers is well documented. What may not be as well-known are the benefits for soybean farmers when U.S. meat, milk and eggs are exported. As human demand for protein grows globally, so do the opportunities for U.S. soybean farmers.

According to a soy checkoff-funded study, 40.1 million tons of soybean meal, or the meal from 1.6 billion bushels of U.S. soybeans, were exported as meat and poultry between the 2005 and 2015 marketing years. This was worth $13.8 billion to the U.S. soybean industry. In particular, exports of chicken meat and pork were worth $6.4 billion and $5.5 billion, respectively.

“As a soybean farmer, it’s important to understand that when demand grows for livestock, our demand grows as well,” says Dan Corcoran, a soy checkoff farmer-leader from Ohio. “Exporting meat and poultry extends the market for our soybeans and benefits the U.S. economy all at the same time.”

Continued collaboration with the meat and poultry industries is important to farmers’ bottom lines. According to future projections from the study, 58.1 million tons of soybean meal will be fed to animals that will be exported as meat and poultry over the next 12 years. This will be worth $18.9 billion to the U.S. soybean industry.

U.S. animal ag consumes 97 percent of the domestic supply of soybean meal, making it the most important end user of U.S. soy. The checkoff works with organizations such as the U.S. Meat Export Federation and the USA Poultry and Egg Export Council to promote consumption of U.S. meat and poultry abroad.



USTR Challenges China's Non-Compliance at the WTO on Behalf of American Farmers

U.S. Trade Representative Michael Froman announced today that the United States is mounting a challenge to China at the WTO because of the Chinese Government’s failure to bring its antidumping and countervailing duties against imports of U.S. chicken broiler products into compliance with WTO rules.  These duties, which act as high taxes on American poultry exports to China, have remained despite a WTO report that previously found China to be breaching its WTO obligations.  Now, the United States is challenging these taxes on behalf of American poultry producers and the hundreds of thousands of people employed in the poultry industry.

This trade enforcement action marks the 12th complaint brought by the Obama Administration against China at the WTO, and the United States is firmly committed to ensuring that China lives up to its WTO obligations, and that American farmers and workers can compete and win on a level playing field in the global economy.

“Today’s action holds China accountable for unfair taxes they are imposing on American exports of broiler chicken products,” said U.S. Trade Representative Michael Froman. “These unfair and unjustified taxes are in direct violation of China’ s international commitments and tilt the playing field further against America’s poultry farmers. American farmers deserve a fair shot to compete and win in the global economy and this Administration will continue to hold China responsible when they attempt to disadvantage our farmers, businesses and workers. Today’s action is the 12th that this Administration has taken against China at the WTO – and to date we have won every case that been decided.”

“The food and agricultural products raised by America’s farmers and ranchers are among the most competitive in the world, and this Administration has proven that we will not stand for trade barriers that put them at an unfair disadvantage in the global marketplace. Thanks to the high quality of U.S. agricultural goods, including chicken, the past seven years have been the strongest period for American agricultural exports in history,” said U.S. Secretary of Agriculture Tom Vilsack. “Last year alone, the U.S. Department of Agriculture resolved more than 150 trade-related issues, and agricultural exports supported more than one million American jobs both on and off the farm. I am pleased to stand with USTR to show China and all of our trading partners that the United States means what we say when we call for fair and enforceable trading policies.”

“Delaware’s poultry farmers and producers are the strongest engines in our local economy and we know they have great potential to do even more, but when they’re shut out of international markets, that potential goes untapped,” said U.S. Senator Tom Carper (D-DE). “China’s hefty tax on American poultry imports is unfair and, while I’m still hopeful that China will right this wrong on its own, we must be prudent and pursue action by the World Trade Organization. I thank Ambassador Froman and his team for their continued work to ensure the global community holds China accountable for its unfair trade practices.”

“The United States has been the only country that has been willing to challenge China’s compliance at the World Trade Organization,” said U.S. Senator Johnny Isakson (R-GA), a member of the Senate Finance Committee and co-chair of the Senate Chicken Caucus. “Trade works when the rules are followed, and it is imperative that China—the world’s second largest economy—lives up to the rules it agreed to when it joined the WTO in 2001. I am pleased that the United States is mounting this challenge that will, if successful, put the hardworking poultry farmers of this country back on a level playing field.”

“The economic health of America’s agricultural sector, including Delaware’s poultry industry, is directly tied to its access to foreign markets,” said U.S. Senator Chris Coons (D-DE). “That’s why it is critical for the United States to fight unfair protectionist policies of some of the world’s biggest markets like China. I applaud the Obama Administration for taking action today to challenge China’s continued failure to meet WTO standards. Today’s announcement sends a clear message that the United States will continue to hold China’s feet to the fire until it plays by the rules and opens up its market to our poultry. I will continue to fight to make sure poultry farmers in Delaware and across the country have access to markets around the world.”

“This trade enforcement action is necessary to hold China accountable for unfair taxes imposed on U.S. chicken producers so that farmers in Arkansas and around the country have a level playing field,” said U.S. Senator John Boozman (R-AR) said. “Arkansas is a leader in chicken production and this is a step in the right direction to allow our producers an opportunity to compete fairly in the global marketplace.”



Statement of American Farm Bureau Federation Regarding China Poultry Dispute
Zippy Duvall, President, American Farm Bureau Federation

"United States Trade Representative Michael Froman today announced he would bring a challenge in the World Trade Organization against Chinese tariffs that unfairly tax U.S. poultry exports. We are enthusiastic supporters of Ambassador Froman's action."

"We agree: China is misusing anti-dumping rules. China's actions keep U.S. poultry from being sold to Chinese consumers at a price that reflects a fair profit for American farmers and real value for its own citizens."

"Trade enforcement is an essential part of an effective trade policy. Farm Bureau supports trade that brings fair prices to farmers and good nutrition to a rapidly-growing population around the world. We applaud USTR for pursuing this action."



Poll: Americans Overwhelmingly Support Farmers, Farm Policy, Crop Insurance

Nearly 90 percent of Americans have a favorable view of farmers, and 92 percent said it was important to provide them with federal funding, according to a new national poll released today.  Furthermore, positive marks cut across party lines, showing that a strong farm policy is a bipartisan issue.

“Americans overwhelmingly like farmers and support the programs that protect them,” explained Jon McHenry, vice president of North Star Opinion Research, the polling firm that explored the general public’s views on farmers, farm policy and crop insurance.  “This response is not surprising when you consider that eight in 10 voters believe a vibrant agricultural industry was critical to the country’s national security.”

More than 70 percent of voters also said they believed that farmers should help fund part of their own safety net.  This cost-sharing structure is at the heart of America’s crop insurance policy, with farmers paying a portion of their insurance premiums and shouldering, on average, 25 percent of crop losses through deductibles.

Those polled were impressed.  Nearly 80 percent said they supported giving farmers discounts on insurance premiums and the vast majority agreed that the current premium and deductible amounts absorbed by farmers were appropriate.

Americans also weighed in on the delivery of crop insurance.  When asked who should implement the system, voters agreed by a 20-point margin that farmers and taxpayers were better served by private companies delivering crop insurance instead of the government.

Support for farm policy and crop insurance even remained high when poll respondents were read a misleading statement often used by farm policy’s critics.

“In a question providing both sides, the security argument in favor of protecting farms wins by a two-to-one margin over the argument used by farm policy opponents,” McHenry said.

The public opinion poll, which was commissioned by the National Crop Insurance Services, is available atwww.cropinsuranceinamerica.org.  The phone survey of 1,000 registered voters was conducted April 3-7 and has a margin of error of 3.1 percent.



Brazil Cuts 15-16 Soy Crop Estimate

Brazilian crop agency Conab on Tuesday cut its soybean and corn crop estimates for the 2015-2016 season as irregular and scarce rains hit productivity.

The country's farmers produced 96.9 million metric tons of soybeans in the 2015-2016 harvest, which is now almost finished. That compares with Conab's forecast of 99 million tons in its April report, but is still an increase from the 96.2 million tons grown in 2014-2015, and a record.

Productivity declined to 2929 kilograms per hectare (1.3 U.S. tons per acre) in the just-ending season from 2988 kilograms per hectare in the previous season.

Brazil is the world's second-largest soybean grower in the world, after the U.S. Conab cut its corn crop forecast to 80 million tons from the April forecast of 84.7 million tons. In the previous season the corn crop reached 84.7 million tons.

Brazil's mild winters permit farmers to plant two crops each year, often alternating between soybeans and corn. The second corn crop, known in Portuguese as the safrinha, has grown in recent years and is usually bigger than the first harvest.

Dry weather in important corn-growing areas has hit the safrinha, leading Conab to cut its forecast for the first crop to 27 million tons from 27.5 million tons, and for the second crop to 52.9 million tons from 57.1 million tons.



EIA Revises 2016 Ethanol Output

In its latest Short-Term Energy Outlook released Tuesday, the Energy Information Administration again revised slightly higher its forecast ethanol production for this year while holding firm its demand outlook.

EIA said ethanol production averaged almost 970,000 bpd in 2015, slightly above last month's estimate, and is forecast to average 980,000 bpd in 2016 and 2017. This compares with last month's estimate for both years at "between 970,000 bpd and 980,000 bpd."

The agency repeated that ethanol consumption in 2015 averaged about 910,000 bpd, while holding firm its forecast for 2016 and 2017 to about 930,000 bpd.

"This level of consumption results in the ethanol share of the total gasoline pool averaging 10% in both 2016 and 2017. EIA does not expect significant increases in E15 or E85 consumption over the forecast period."

The U.S. Environmental Protection Agency on Nov. 30, 2015, finalized a rule setting Renewable Fuel Standard volumes for 2014 through 2016. EIA used these finalized volumes to develop the current STEO forecast and assumes the 2016 targets for 2017. However, EPA did issues a biomass-based diesel target for 2017 of 2.0 billion gallons, which the agency used for this forecast.

EIA continues to expect the largest effect of the proposed RFS targets will be on biodiesel consumption, which helps to meet the RFS targets for use of biomass-based diesel, advanced biofuel and total renewable fuel. Biodiesel production averaged 82,000 bpd in 2015 and is forecast to average 100,000 bpd this year, unchanged from last month's estimate. In 2017, the estimate is 106,000 bpd, also steady on the month. Net imports of biomass-based diesel are also expected to increase from 29,000 bpd in 2015 to 42,000 bpd in 2016, slightly below last month, and 47,000 bpd in 2017, flat from the prior month forecast.

The agency estimates that energy-related emissions of carbon dioxide decreased by 2.7% in 2015. Emissions are forecast to decrease by 1.5% in 2016 and then increase by 1.4% in 2017. These forecasts are sensitive to assumptions about weather and economic growth.



Boating Experts to Congress: Ethanol Best for Boats

Certified mechanics, engine performance experts, and professional fishermen briefed lawmakers on Capitol Hill today about the importance of ethanol in protecting the environment, preserving America's energy security, and providing a high-octane boost to marine engines.

The briefing, hosted by Fuels America, provided an important opportunity for experts to dispel myths about ethanol and make the case for full implementation of the Renewable Fuel Standard (RFS). The National Corn Growers Association is a member of Fuels America.

"I want to take my grandkids fishing someday. That means having clean water and clean air. Mixing ethanol into our fuel is the best way to reduce the pollutants that fossil fuels leave behind, so our lakes and rivers stay clean and marine life can flourish," said Brian Sowers, Co-Host of Crappie Masters TV, covering the Crappie Masters All American Tournament Trail.

The Clinton, Missouri-based Crappie Masters tournament trail is sponsored in part by the Missouri Corn Merchandising Council. A major initiative of this partnership is to educate boaters and consumers on ethanol production, its performance in boat motors, and its impact on the economy. Most of the 12 million recreational boats in the United States are approved to operate on fuel blended with 10 percent ethanol (E10).

Sowers notes that 100 percent of Crappie Masters tournament winners use an ethanol blend in their tanks. That comes as no surprise to Keith Holmes, President and Owner of CK Motorsports in Nunica, Michigan and a Certified Mercury Marine Racing Technician.

"We work on a wide variety of racing engines for watercraft, and they run at their absolute best on a high-octane ethanol blend," said Holmes. "Ethanol burns cleaner and cooler. Since the introduction of E10, we find that many engine parts have a 25 to 50 percent longer lifespan. The National Boat Racing Association exclusively uses E10 for all their races."

"Decades of experience with modern engines shows that E10 is the best fuel for marine applications," said Marc Rauch, Executive Vice President and Co-Publisher at the Auto Channel, based in Louisville, Kentucky. "As an oxygen booster, ethanol replaces toxins like MTBE, which are notorious for contaminating water supplies. And it reduces CO2 emissions by 34 to 100 percent or more compared to gasoline."

Joel Hennen, president and owner of Hennen's Auto Service in Shakopee, Minnesota, which serves communities on the Minnesota River and Prior Lake, said his customers expect to have choices at the pump, including E10. "Companies like Kawasaki, Mercury Marine, OMC, Pleasurecraft, Tigershark, Tracker, Honda, and Yamaha all approve the use of E10 in their engines," said Hennen. "The labels are clear, and whether customers have a flex fuel vehicle or a race boat, we make it easy to pick the most affordable option with the lowest emissions."

"Whether you farm, fish, swim, or ride a boat, everyone who spends time on the water cares about clean water and clean air. Ethanol is the best way to preserve these resources today and for future generations," said Beth Elliott, NCGA Director of Public Policy. "Today's briefing was an opportunity for us to educate lawmakers on ethanol and its performance in maritime engines, while continuing to highlight that it's a renewable, clean energy source for both boats and cars."

The White House Office of Management and Budget (OMB) is currently reviewing the Environmental Protection Agency's proposed blending requirements for ethanol and advanced biofuels in 2017.



Trivapro™ fungicide yield results from Syngenta elevate 2016 corn, soybean and wheat outlook

As growers evaluate business models and consider their 2016 management plans, strong first-year trial results for Trivapro™ fungicide from Syngenta show just how much the latest crop protection tool can help maximize yield and profit potential.

Under heavier than normal disease pressure, several 2015 field trials conducted in the Midwest and South reported high returns in corn, soybeans and wheat, after applications of Trivapro. In corn, treated fields produced 16 to 53 more bushels per acre (bu/A) than those left untreated. On average, across the U.S., Trivapro-treated corn produced a 21 bu/A[1] increase over untreated and competitive brands.

The gains didn’t end there. Researchers saw marked increases in other row crops as well. Trivapro-treated soybeans produced an average of 6 bu/A more beans[2], and Trivapro-treated wheat yielded 13 to 28 bu/A more wheat[3] than untreated and competitive brands.

“Everyone knows heavy disease pressure took its toll on corn, soybean and wheat yields in 2015, even those treated with competitive fungicide brands,” said Andrew Fisher, fungicide brand manager at Syngenta. “Yet, in our Trivapro trials, we consistently saw significant yield results.”

What sets Trivapro apart from competitors is active ingredient Solatenol® fungicide, the most potent SDHI on the market. Solatenol binds to the waxy layer of the leaf, maximizing the length of control. Teamed up with proven performers, azoxystrobin and propiconazole, growers can expect excellent preventive and curative disease control to hold rusts, leaf spots and blights completely at bay.

“Trivapro provides the best protection against row crop diseases, in addition to great crop enhancement benefits,” said Scott Cully, Syngenta agronomy service representative.

“We saw intense disease pressure in Illinois corn trials that greatly compromised unprotected crops and those treated with competitive brands, leading to premature plant death. With Trivapro, the plants remained green and alive approximately one to three weeks longer, and the stalks were noticeably stronger. This allowed more time for grain fill as well as improved grain quality and harvestability at the end of the season,” said Cully.

Plant pathologists predicted heavy disease pressure for 2016, due to mild winter weather in most corn-growing geographies. True to their predictions, early rust pressure has hit the South, Midwest and some Western states. Among other diseases, Northern corn leaf blight and frogeye leaf spot have also been flagged as likely threats.

In the face of low commodity prices, strategic applications of a broad-spectrum fungicide like Trivapro will be key this year to protecting yield, crop quality and, ultimately, profit potential.

“If you’re looking for the consistency of harder-working, longer-lasting residual control plus crop enhancement benefits to help maximize your return on investment, you’re going to get the best performance out of Trivapro,” Fisher said.