Wednesday July 13 Ag News

Nebraska Ethanol Board Comments to EPA Focus on Life Cycle Emissions

Nebraska Ethanol Board joined the Clean Fuels Development Coalition (CFDC) and an ad hoc coalition of clean energy advocates in calling on the U.S. Environmental Protection Agency (EPA) to recognize the true carbon reduction of ethanol in the Renewable Fuels Standard (RFS) regulations.

Along with the Clean Fuels Development Coalition, Nebraska Ethanol Industry Coalition, Energy Future Coalition, Urban Air Initiative, Governors’ Biofuels Coalition and the 25x‘25 Alliance, Nebraska Ethanol Board argued that EPA has not updated their life cycle analysis since 2010. Many improvements in ethanol feedstocks and production have reduced ethanol's carbon intensity dramatically.

“For more than 25 years, CFDC has fought for cleaner, healthier fuels,” said Douglas Durante, CFDC executive director. “To the extent carbon reduction is a new measuring stick, we are getting shortchanged, plain and simple.”

Durante also noted that the substitution of toxic compounds in gasoline with cleaner-burning ethanol addresses a range of pollutants beyond CO2 reduction.

“We have been calling for the reduction of toxics since 1989,” he said. “If EPA opened the door to higher blends of ethanol from corn and cellulosic feedstocks we could have a major impact on everything EPA is charged with doing.”

With increasing fuel economy standards, higher octane gasoline blended with ethanol reduces carbon emissions at the refinery level while allowing automakers to achieve higher efficiency, further adding to ethanol's low carbon footprint, Durante added.

“It is critical that ethanol not only participate in federal programs but also in low carbon fuel standards at the state level,” Durante said.



High Tech Sensors in Action Featured at Upcoming Project SENSE Update Days

Project SENSE update sessions are planned for several locations across Nebraska.  Growers will learn how to outfit and implement the project’s Nitrogen management strategy on their operations. Project SENSE (Sensors for Efficient Nitrogen Use and Stewardship of the Environment) focuses on improving the efficiency of nitrogen fertilizer use.

Strategies which direct crop nitrogen status at early growth stages are a promising way to improve nitrogen fertilizer efficiency and improve groundwater nitrate levels.  Growers will see a live demonstration of the project’s high clearance nitrogen applicator outfitted with active crop canopy sensors and will see the high tech sensors in action.  Attendees will learn how producers are conducting research trials on their own fields in partnership with the Project SENSE team.

Project SENSE is a collaborative effort between the University of Nebraska-Lincoln, the Nebraska Corn Board, five Natural Resources Districts (Central Platte, Little Blue, Lower Loup, Lower Platte North, and Upper Big Blue) in Nebraska, and producers participating in the Nebraska On-Farm Research Network.

Update sessions will take place from 11:00 a.m. – 1:00 p.m. on the following days and locations:  July 29 - Cole Anderson Farm, 3730 Denton Road, Beaver Crossing, NE; Aug. 1 - Bailey’s Ag Supply - 548 Road 14, Schuyler, NE; and Aug. 3 - Duncan Fire Hall, Duncan, NE.  A session will also be held at the Arnie Hinkson farm on July 27 from 10:00 a.m. – 12 noon, 2003 N Cameron Road in Cairo, NE.  

A free noon lunch will be served.  Please preregister 2 days in advance for meal planning purposes. To preregister, call 402-624-8000 or e-mail christina.franklin@unl.edu.  RSVP by July 20 with Central Platte NRD at (308) 385-6282 or lee@cpnrd.org for the Cairo location only.

Flyers for each session can be downloaded at:  http://ardc.unl.edu/training.shtml.  CCA credits are available.



First National Bank Invests $500,000 in the Center for Rural Affairs

First National Bank provided a $500,000 Equity-Equivalent Investment to the Center for Rural Affairs, announced Alec Gorynski, Director, Community Development and Social Responsibility.  The Center for Rural Affairs (CFRA) is a nonprofit organization working to strengthen small businesses, family farms, and rural communities with an emphasis on economic development, social justice and environmental stewardship. 

First National Bank’s investment will be used to support micro and small business lending activities throughout rural communities within the state of Nebraska via CFRA’s lending arm, the Rural Investment Corporation.  Specifically, the funds will be used to provide financing and technical assistance in support of community development, including start-up and expansion of small businesses, job creation and other community assets, improving access to services and ownership opportunities, especially for low-income or otherwise disadvantaged individuals.

“The demand for small business financing in rural Nebraska is extremely high,” said Jeff Reynolds, Center for Rural Affairs – REAP Director and Rural Investment Corporation COO.  “We look forward to getting these critical small business loan dollars out to startup and existing businesses in the First National Bank trade area and continuing our mission of creating vibrant rural communities through small business development.”

“First National Bank’s investment in the Center for Rural Affairs reflects our commitment to strengthening the local economies in all the communities we serve,” said Gorynski.  “It is extremely important to us that rural communities continue to thrive and we believe they will through new and expanded businesses, an adequate job supply and access to a variety of local services.”  

In 2015, the bank awarded more than $3 million in sponsorships, donations, and community development grants and investments to organizations who support strong local economies across its seven-state service area.  By 2020, the bank hopes to help create or retain 25,000 jobs in communities across its footprint via targeted investments and grants to community partners who help grow small businesses through training, technical assistance and loans. To learn more about First National Bank’s community contributions, view the “First in the Community Impact Report” by visiting: https://www.firstnational.com/site/about-us/in-the-community/index.fhtml

First National Bank is a subsidiary of First National of Nebraska.  First National of Nebraska is the largest privately owned banking company in the United States.  First National of Nebraska and its affiliates have $20 billion in assets and 5,000 employee associates.  Primary banking offices are located in Nebraska, Colorado, Illinois, Iowa, Kansas, South Dakota and Texas.

Established in 1973, the Center for Rural Affairs is a private, non-profit organization working to strengthen small businesses, family farms and ranches, and rural communities through action oriented programs addressing social, economic, and environmental issues.

The Rural Investment Corporation, a Nebraska nonprofit corporation, is a subsidiary corporation of the Center for Rural Affairs. The Rural Investment Corporation was incorporated in 1997, capitalized in 2011, and was certified as a Community Development Financial Institution in 2013. The Rural Investment Corporation works in partnership with the Rural Enterprise Assistance Project, a program of the Center, as well as with REAP’s Women’s Business Center and Latino Business Center.

These valued components of the Center for Rural Affairs provide comprehensive business development services – specialized technical assistance, business management training, networking, and access to credit to small businesses and microenterprises in rural Nebraska.



USDA to Help 821 Rural Small Businesses Boost Renewable Energy Use, Save on Energy Costs

Agriculture Secretary Tom Vilsack has announced funding for 821 projects across the nation that will help rural small businesses and agricultural producers reduce energy usage and costs in their operations. Twenty Nebraska recipients received nearly $198,000 for energy projects.  The funding is available through the Rural Energy for America Program (REAP) and will be used to make energy efficiency improvements and install renewable energy systems.

"Since 2009, the Rural Energy for America Program has helped roughly 15,000 small businesses and farms save enough energy to power about 730,000 homes and reduce greenhouse gas emissions by more than five million metric tons annually," Vilsack said. "These investments in clean energy are good for the environment, are good for each business's bottom line and they support the broader rural economy by encouraging the production of renewable energy sources."

USDA is providing $43.2 million in loan guarantees and $11.6 million in grants through REAP for projects in every state, as well as in the Virgin Islands, the Western Pacific and the Commonwealth of Puerto Rico. Funding of each award announced today is contingent upon the recipient meeting the terms of the loan or grant agreement.

The Nebraska recipients by selected counties are:

Cedar
Hansen Hog Haven, Inc.-$16,915-LED lighting replacement
REPS Fitness, LLC-$4,676-Replace front door, windows, lighting

Holt
Barlow, Keith-$4,049-Diesel to electric irrigation motor conversion
Olson Industries, Inc.-$7,460-LED lighting replacement
Rocking Diamond A Ranch, LLC-$3,115-Diesel to electric irrigation motor conversion

Lancaster
Bevans, William B.-$14,446-Waste heat recovery systems

York
Goertzen, John S.-$20,000-Grain dryer replacement
Harmony Nursery & Daylily Farm, Inc.-$17,794-25 kW solar array
KLD, Inc.-$9,030-Grain dryer replacement

The Rural Energy for America Program also helps businesses create jobs, helps farmers and rural businesses reduce their carbon footprint, and helps the country move closer to energy independence. For information on the Rural Energy for America Program (REAP) in Nebraska contact Energy Coordinator Jeff Carpenter, 402.437.5554 or jeff.carpenter@ne.usda.gov.



Cass, Dodge, Douglas, Sarpy, Washington Counties Added to EAB List

Effective immediately, the Animal and Plant Health Inspection Service (APHIS) is adding Cass, Dodge, Douglas, Sarpy, and Washington counties in Nebraska to the list of regulated areas for the emerald ash borer (EAB). APHIS is taking this action in response to the detection of EAB in Douglas County.

To prevent the spread of EAB to other states, the attached Federal Order outlines specific conditions for the interstate movement of EAB-regulated articles from the quarantined areas in Nebraska. Specifically, the interstate movement of EAB-host wood and wood products from the quarantined area in Nebraska is regulated, including firewood of all hardwood species, nursery stock, green lumber, waste, compost, and chips of ash species.

EAB is an invasive wood-boring beetle that is native to China and other areas of East Asia. The beetle is present in some portions of the United States, and because of its continuing spread, APHIS has established regulated areas that are designated in the Code of Federal Regulations (CFR) at 7 CFR 301.53-3 and the Federal Orders located at www.aphis.usda.gov/planthealth/eab_quarantine

The interstate movement of firewood from quarantined areas is an especially high-risk pathway for the spread of EAB. Therefore, APHIS works with state cooperators and foresters to prevent the human assisted movement of EAB, develop biological and other controls for EAB, and raise public awareness about this pest and the potential threats associated with the long-distance movement of firewood.

Previous Federal Orders pertaining to the expansion of quarantined areas in the EAB domestic regulations have been necessary due to the continuing spread of EAB. This Federal Order further expands the quarantined areas as described in the previous EAB Federal Orders.

For more information on the federal EAB regulatory program, please call National Policy Manager Paul Chaloux at 301-851-2064. For information on the regulatory requirements to move articles out of quarantined areas in Nebraska, please call APHIS State Plant Health Director Shayne Galford, at 402-434-2346. 



ICA Leaders address Cattle Market Policy at NCBA's Summer Business Meeting

Delegates from the Iowa Cattlemen’s Association travel to Denver, CO this week for the National Cattlemen’s Beef Association (NCBA) Cattle Industry Summer Business Meeting. During this meeting NCBA’s policy committees will meet to review policies and discuss industry issues. On Saturday, July 16, the NCBA will hold their Board of Directors meeting, at which Iowa’s cattle industry will be represented by ICA’s five voting delegates.

One of the topics of interest was recent cattle market volatility. ICA members strongly support measures that will make the live cattle futures contract more reliable as a risk management tool. Those measures include more cash negotiated trade in all major cattle feeding regions, enhancing the Live Cattle Futures Contract delivery process, and encouraging more engagement from NCBA on market issues.

“ICA members are strongly opposed to the proposed $1.50/cwt discount on cattle delivered to the Worthing, SD delivery point. This issue, among others, requires involvement of NCBA’s Cattle Marketing and International Trade Committee, led by ICA past president Ed Greiman. We intend to express our members’ interest to leaders of this policy committee,” says Phil Reemtsma, ICA President. “Our goal is to strengthen NCBA’s policy related to the CME Live Cattle Futures Contracts to make sure that we stand united as an industry on issues that will reduce cattle market volatility.”

The following policies were adopted by the ICA Board of Directors after an analysis and review by ICA’s Feedlot Council and Cattle Production policy committee. ICA delegates attending the Denver meeting will represent Iowa cattle producers by following the guidance laid out in these policies. 

CP-LCM-31 Chicago Mercantile Exchange (CME) Live Cattle Futures Contracts
WHEREAS, fed cattle futures provide an important risk management tool for Iowa cattlemen; and WHEREAS, cattle feeding in Iowa continues to enjoy a resurgence because of ethanol co-products and feed availability
THEREFORE, BE IT RESOLVED,:
1. That ICA oppose any changes by the Chicago Mercantile Exchange (CME) that would adversely affect Iowa cattle feeders’ ability to deliver on CME contracts;
2. That the CME allow heifers to be delivered to meet futures market obligations;
3. That the CME set the weight specs consistent with carcass and live delivery and applicable to current industry weights;
4. That the CME continue the existence of the Worthing, South Dakota delivery point for CME Live Cattle futures contracts and reject any discounting of cattle delivered to the Worthing, South Dakota delivery point;
5. The CME add more delivery points for cattle on the Live Cattle Futures Contract;
6. The CME avoid creating a cash settled Live Cattle Futures Contract;
7. The CME increase transparency, level access to information, and transactions, and foster an environment that builds confidence in the ability to use the Live Cattle Futures Contract; and
8. That NCBA retain staff and budget resources to investigate and represent cattle industry issues to the CME.

CP-LCM-44 Increasing Price Discovery
WHEREAS, the Iowa cattlemen who sell their cattle on the open market rely on competitive price discovery to get a fair price for their cattle; and
WHEREAS, most independent Iowa cattlemen wish to avoid vertical integration that is evident in the pork and poultry sectors; and
WHEREAS, the popularity of packer formula pricing  based on the weighted average limits negotiations on the open market.
THEREFORE BE IT RESOLVED, ICA work with its membership as well as NCBA to encourage and educate producers in all major cattle feeding regions to market 50% or more of their cattle on negotiated cash trade for their benefit as well as that of the beef industry.
BE IT FURTHER RESOLVED, ICA and NCBA encourage members to utilize voluntary price reporting of fed cattle prices.

ICA’s grassroots policy development process began at the 2016 Regional BeefMeets held on June 22, 23, 27, and 28 across the state. At the BeefMeets, ICA members gathered into their ICA districts and discussed industry topics and issues of concern.



Iowa soybean farmers support counties sued by Des Moines Water Works

It’s a must-win case, and Iowa soybean farmers stepping up to help the people and counties caught in the middle.

The Iowa Soybean Association (ISA) Board of Directors unanimously approved $150,000 to help Sac, Buena Vista and Calhoun counties defend themselves against a lawsuit brought by the Des Moines Water Works. The noncheckoff farmer membership funds, approved June 30, will be sent to the Sac County Legal Defense Fund to help pay legal expenses for all the defendants.

ISA President Wayne Fredericks of Osage said the lawsuit, if successful, would not only impact farmers in the three counties but across the state.

“It’s a case the counties and its residents can’t lose,” Fredericks said. “As the lawsuit has progressed, it become more clear to Iowa soybean farmers the need to show strong support for the counties. We don’t want to look back and say we could have done more.”

The water works, Iowa’s largest public utility, is suing boards of supervisors in the counties for allegedly allowing nitrates coming from 10 drainage districts they control to pollute the Raccoon River, a primary source water for 500,000 customers.

The lawsuit, filed in March of 2015, is scheduled to go to trial next June. Water works seeks financial relief for nitrate treatment and it wants ag drainage tiles to be considered point sources of pollution under the Clean Water Act. This would require farmers and landowners to get federal discharge permits and likely lead to more regulations on production agriculture.

Nonpoint source discharges have been exempt for decades from regulations under the Clean Water Act, including ag drainage tile.

ISA CEO Kirk Leeds calls the lawsuit an “unfortunate distraction” from the cooperative, proactive approach the association and farmers believe is the best way to improve water quality. By helping the counties, Leeds said that will bring a quicker end to the lawsuit. Then rural and urban neighbors will be able to work together to find solutions for a difficult and complex problem.

“For all of these reasons, ISA has once again stepped up to defend Iowa agriculture and farmers,” Leeds said. “At the end of the day, it’s who we are — an organization of family farmers who rally around neighbors in need as Iowans often do.”

The ISA provided $65,000 earlier this spring to pay legal expenses for the counties.

Dean Stock, chairperson of the Sac County Board of Supervisors, expressed his appreciation for ISA’s support. He farms with family in Sac and Calhoun counties.

“On behalf of our local drainage districts and the farmers in those districts, I want to express our deepest appreciation to the Iowa Soybean Association and all its members for standing with us as we defend our local economy, and farmers across the nation, from an attack on our ability to make our land productive,” Stock said.



NCBA Submits Comments to Organic Marketing Proposed Rule
 
Today, the National Cattlemen’s Beef Association submitted comments on the USDA Agriculture Marketing Service’s National Organic Program; Organic Livestock and Poultry Practices proposed rule. NCBA President Tracy Brunner, said that voluntary agency marketing programs are not the place to codify animal production practices.

“Organic programs are marketing programs and therefore not the place to prescribe animal welfare practices,” said Brunner. “America’s cattle producers are the best stewards of their herds and they take pride in the welfare of their animals. That is why, over the past thirty years, cattlemen and women have worked to develop and improve animal care and handling standards through the Beef Quality Assurance Program. Rather than set rigid political standards in statute, the Beef Quality Assurance program is driven by experts in animal care, using industry-accepted and peer reviewed science to set the program guidelines. Instead of attempting to address continuously changing animal care and handling practices in this rule, we recommend the USDA suggest that organic producers become BQA certified.”

While the Beef Quality Assurance Program is recognized as the gold standard in cattle care and handling, there is concern that setting welfare standards through the National Organic Program proposed rule will mislead consumers and support standards that do not have a basis in science.

“We know the Beef Quality Assurance Program sets the highest standard for animal welfare, and that standard is continuously reviewed and updated as new science becomes available,” said Brunner. “Efforts by the USDA to set a secondary animal welfare standard for organic will inevitably mislead consumers into thinking that such arbitrary standards are handled in a manner different than conventionally produced beef. The cattle industry supports voluntary marketing programs like the organic program and we have producers who participate in these programs, but consumers need to clearly understand regardless of what product they choose to buy the commitment to safety, quality and animal welfare remains the same.”

NCBA encourages the USDA Agriculture Marketing Service to withdraw the current proposed rule and work with all producers to draft a rule that gives consumers choice and producers marketing opportunities that do not disparage conventional products.



House to Vote on GMO Bill
Committee Advances Senate Version of Disclosure and Labeling Bill
Jerry Hagstrom, DTN Political Correspondent

House Rules Committee voted Tuesday to advance S. 764, the genetically modified foods disclosure and labeling bill, to the House floor, setting up for debate without amendments and a vote this week.

The bill is a compromise written by Senate Agriculture Committee Chairman Pat Roberts, R-Kan., and Senate Agriculture ranking member Debbie Stabenow, D-Mich., that requires mandatory disclosure of genetically modified ingredients through on-package wording, a symbol or a link through a QR code to further information. It passed the Senate last week.

The bill will come to the floor under a closed rule, meaning no amendments will be allowed. Rep. Jim McGovern, D-Mass., offered an amendment for an open rule, which would have allowed amendments, and Rep. Jared Polis, D-Colo., offered an amendment to require on-package labeling rather than the QR code.

House Rules Committee Chairman Pete Sessions, R-Texas, noted that the House has a lot of business to do before Friday, and the Republican-dominated committee rejected both the McGovern and Polis amendments.

McGovern told the American Soybean Association earlier Wednesday that he expected his amendment to fail, but he also expects the bill to pass the House, which would make it ready to be sent to President Barack Obama for his signature. Obama is expected to sign the bill. Agriculture Secretary Tom Vilsack has been a prominent backer of a QR code as a compromise to resolve the labeling issue.



NBB Releases Statement on Senate Biodiesel Tax Legislation

The National Biodiesel Board released the following statement from Vice President of Federal Affairs Anne Steckel after Sens. Chuck Grassley, R-Iowa, and Maria Cantwell, D-Wash., introduced new legislation with 12 additional cosponsors to extend the biodiesel tax incentive through 2019 and reform it as a domestic production credit:

“Biodiesel and renewable diesel producers around the country are yet again facing what effectively amounts to a tax increase in less than six months. Congress can keep that from happening by passing this bill. It will give producers the certainty they need to hire and grow in the coming years. It will continue our success in diversifying the diesel market and reducing our dependence on petroleum. And it will help clean the air by cutting carbon emissions and other pollution.”

“It also will appropriately reform this incentive by applying it only to domestic biodiesel production, ending a growing practice where foreign producers are taking advantage of our tax system. Our tax law should not be incentivizing foreign fuel, and this bill fixes that loophole so that we’re stimulating jobs and economic development here at home.”

“On behalf of biodiesel and renewable diesel producers across the country, we want to thank Sens. Chuck Grassley, R-Iowa, and Maria Cantwell, D-Wash., for their continued leadership on this issue as well as the additional cosponsors, Sens. Roy Blunt (R-Mo.), Joe Donnelly (D-Ind.), Joni Ernst (R-Iowa), Al Franken (D-Minn.), Martin Heinrich (D-N.M.), Heidi Heitkamp (D-N.D.), Mazie Hirono (D-Hawaii), Mark Kirk (R-Ill.), Patty Murray (D-Wash.), Pat Roberts (R-Kan.), John Thune (R-S.D.) and Sheldon Whitehouse (D-R.I.). We urge Congress to take up this bill and pass it as quickly as possible so that we can continue expanding biodiesel’s role as the leading Advanced Biofuels in America.”

The bill, which can be found here, follows similar legislation Sens. Grassley and Cantwell have introduced previously, including last year when it cleared the Senate Finance Committee without objection. It also mirrors House legislation (H.R. 5240) introduced by Reps. Kristi Noem, R-S.D. and Bill Pascrell, D-N.J.

Background: After expiring on Dec. 31, 2014, the $1-per-gallon biodiesel tax incentive was reinstated in late 2015 and is slated to expire again on Dec. 31, 2016. Under the current “blender’s” structure of the incentive, foreign biodiesel imported to the U.S. and blended with petroleum diesel in the U.S. is eligible for the tax incentive. Increasingly, foreign biodiesel producers are taking advantage of the U.S. incentive by shipping their product here. In 2015 alone, some 670 million gallons of biodiesel and renewable diesel was imported to the U.S., making up nearly a third of the U.S. market.



Prices of All Fertilizers Lower Again

Fertilizer prices continued to work lower the first week of July 2016, according to retailers tracked by DTN. While prices are lower, no fertilizer value moved significantly lower, thus snapping a three-week run of notable price drops.

All eight of the major fertilizer were lower in price compared to a previous month but, again, none were down significantly. DAP had an average price of $469/ton, MAP $496/ton, potash $359/ton and urea at $361/ton. 10-34-0 was at $546/ton, anhydrous $554/ton, UAN28 $261/ton and UAN32 $304/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.39/lb.N, anhydrous $0.34/lb.N, UAN28 $0.47/lb.N and UAN32 $0.48/lb.N.

Retail fertilizer prices are lower compared to a year earlier. All fertilizer prices are now double-digits lower.

10-34-0 is 15% lower while both MAP and UAN32 are both 17% less expensive and DAP is 18% lower. Both anhydrous and UAN28 are 20% lower while urea is 23% lower and potash is 27% less expensive compared to last year.



Growers Exercise Leadership Skills in Nation's Capital
   
Corn farmers from across the country traveled to Washington this week to take part in the second phase of the Advanced Leadership program co-sponsored by the National Corn Growers Association and Syngenta. This program, now in its sixth year, offers high-level training for a select group of Leadership At Its Best alumni. While in town, participants visited numerous members of the Senate and House of Representatives, met with Secretary of Agriculture Tom Vilsack and received an insider's view of how lobbyists work on Capitol Hill.

"The Advanced Leadership program offers an exciting way to build upon the training offered by Leadership at Its Best," said NCGA President Chip Bowling, himself a graduate of the program. "These farmers have stepped up as leaders, volunteering their time and talent on behalf of corn farmers and the entire agricultural community. They are passionate about farming. Our goal is to give them the knowledge and tools to harness that passion and drive positive change."

The Advanced Leadership Academy class underwent extensive media training and heard directly from consumers about their attitudes and perceptions of modern farming. The participants delved into the workings of government agencies during a visit to the U.S. Department of Agriculture where they met with Secretary of Agriculture Tom Vilsack. 

The Advanced Leadership Academy class includes Chris Edgington (Iowa), Tom Haag (Minn.), Gail Lierer (Ohio), and Rachel Vonderhaar (Ohio).

The Advanced Leadership program held its first session in September in Greensboro, N.C. Applications for Leadership At Its Best and for Advanced Leadership will be available this fall from state and national offices.



FAO Food Price Index posts biggest monthly jump in four years

International food commodity prices shot up 4.2 percent in June, their steepest monthly increase of the past four years.

The UN Food and Agriculture Organization (FAO) Food Price Index, released today, averaged 163.4 points in June and is now one percent below the level reached a year earlier. The June rise, which affected all commodity categories except vegetable oils, was the fifth consecutive monthly increase.

The price movement reflects FAO's  updating of its cereal supply and demand forecasts for the 2016/17 marketing season.
FAO's Food Price Index is a trade-weighted index tracking international market prices for key traded food groups.

The FAO Sugar Price Index rose 14.8 percent from May, as Brazil, the world's largest sugar producer and exporter, endured heavy rains that hindered harvesting and dented yields.

The FAO Cereal Price Index rose 2.9 percent in the month and is now 3.9 percent below its level of June 2015. Maize prices drove that increase, primarily due to tightening spot export supplies from Brazil. Ample wheat supplies and reports of record yields in the United States held down wheat prices.

The FAO Dairy Price Index rose 7.8 percent from May, spurred by an uncertain outlook in Oceania and slower production growth in the European Union. Nonetheless, the index remained 14 percent below its level of  a year ago.

The FAO Meat Price Index rose 2.4 percent from its revised May value, as average quotations for pork, beef and poultry all rose for the third consecutive month.

The FAO Vegetable Oil Price Index defied the trend, declining 0.8 percent from its May level.

Higher forecasts for wheat output and cereal consumption in 2016/17
FAO's Cereal Supply and Demand Brief, also released today, pointed to improved production prospects primarily for wheat.

Global wheat production is now pegged at 732 million tonnes, more than one percent higher than anticipated in June, mainly due to improved prospects in the EU, the Russian Federation and the U.S., as a result of better weather conditions.

The forecast for world maize production in 2016 was, however, cut down as prospects for the second crop in Brazil have dimmed and as reduced government support in China led to lower planting. Overall coarse grain production for this year is now expected to be 1 316.4 million tonnes, some 0.6 percent lower than last month's forecast.

World total cereal utilization in the 2016/17 marketing year, meanwhile, is now projected at 2 555.6 million tonnes, 1.3 percent higher than the estimate for 2015/16.

As a result, global cereal stocks by the end of farming season in 2017 are expected to stand at 635 million tonnes, 1.5 percent below their opening level. The resulting world stocks-to-use ratio for cereals would stand at 24.2 percent in 2016/17, compared to the 2007/08 historical low of 20.5 percent.



Merck Animal Health Launches a New ‘Creating Connections’ Educational Module

Merck Animal Health, in partnership with the Beef Cattle Institute and Production Animal Consultation (PAC), today released the sixth module in the CreatingConnections™ Educational Series that features industry experts who share unique insights and proven techniques to help ensure low-stress cattle handling. This module, now available at www.creatingconnections.info, focuses on the stress of heat load on cattle, as well as heat stress management practices and their significance in maintaining the animals’ well-being.

“Planning ahead is critical to the effective management of heat stress,” said Grant Crawford, Ph.D., technical services manager, Merck Animal Health. “Feedlots should determine their risk of heat stress based on feedlot type, cattle type, water space and other environmental factors, and plan accordingly. High heat loads can put tremendous stress on cattle and, if not managed appropriately, can result in decreased ration intake, poor performance, a myriad of health issues and death loss.”

Dr. Crawford also noted it’s important to understand that heat load is about more than just the temperature on the thermometer. It also involves humidity, wind and solar radiation. “With the right techniques and keeping a keen eye on short- and long-term weather conditions, though, producers can help recognize the early signs of heat stress and help mitigate its impact,” he adds.

The new module, which is comprised of several video lessons, provides important information and management practices that producers can implement immediately to help ensure the well-being of their cattle during periods of high heat. According to Kevin Sullivan, BVSc, Partner, PAC, producers should keep the following things in mind when working to manage heat stress.

-    Utilize shade, air movement, water and feedlot design to help reduce heat load; extra water tanks should be on hand, if needed.
-    Keep the perimeter of feedlot pens clean from standing water or weeds as these may attract flies, further exacerbating stress associated with heat.
-    Sprinklers can be very useful, but feeders must ensure that they cover enough space, otherwise cattle will crowd under the sprinkler. Sprinkling should be completed by early-to-mid morning. Otherwise, it will contribute to increased humidity in the pens and will be of very little benefit.
-    If it appears that heat stress days are imminent, feed deliveries should be static and possibly decreased to reduce the amount of feed wastage. A larger portion of the feed delivery should be fed in the afternoon rather than morning to allow cattle to carry the heat load associated with feed intake into the evening rather than the day.
-    Avoid working cattle during temperature extremes; handle them early in the morning.

Dan Thomson, D.V.M., Ph.D., the Jones Professor of Production Medicine and Epidemiology at Kansas State University, served as moderator for this module, which can be accessed at http://www.creatingconnections.info/en-US/Home/Index.



Mycogen® Brand Hybrids Available With PowerCore® Trait Technology

Mycogen Seeds now offers corn hybrids with PowerCore®, a new trait technology from Dow AgroSciences. PowerCore delivers superior control of above-ground insects in corn.

Cole Hansen, corn portfolio leader, Mycogen Seeds, says adding PowerCore trait technology is part of Mycogen Seeds’ dedication to customers. “With the PowerCore trait technology available in our corn hybrid lineup for 2017, we can provide options for every grower, regardless of the insect pressure they face.”

PowerCore is a pyramid of Bt traits that combines three proteins for the market’s broadest-spectrum control of above-ground insects. PowerCore trait technology protects crops against corn earworm, western bean cutworm, black cutworm, European corn borer, southwestern corn borer, sugarcane borer and fall armyworm. Growers with corn rootworm pressure can still select Mycogen® brand hybrids with SmartStax® trait technology if they need both above- and below-ground insect protection.

Mycogen Seeds offers growers five hybrids that combine the PowerCore trait with the newest high-yielding germplasm available.

-    MY09V45: This 109-day top-yielding hybrid performs well on high-producing soils. It shows strong emergence and early season vigor, performing well in no-till soils and early planting conditions. This hybrid also has strong tolerance to northern corn leaf blight and Goss’s wilt.
-    MY15J45: This 115-day hybrid performs well in Southern growing regions as well as the Corn Belt. Through testing, this hybrid provided consistent yield and performance.
-    MY13A35: Bred for stress tolerance, this 113-day hybrid works well in the western corn-growing regions. It’s a full flex-ear-type hybrid, adapted to lower to moderately high plant populations. This hybrid also is tolerant to high-pH soils and Goss’s wilt.
-    MY12G35: Strong performance and late-season agronomics are key characteristics of this 112-day hybrid — a solid hybrid choice for Corn Belt and Southern growers.
-    MY12H25: Featuring strong genetic potential and adapted to eastern corn-growing regions, this 112-hybrid shows top-end yield potential.

“Growers with little to no corn rootworm pressure now have the added benefit of choosing the best technology to match their farm’s needs,” says Tom Eubank, Ph.D., Mycogen Seeds commercial agronomist. “We work with growers to make sure they are using the right hybrid on each acre, whether it’s genetic disease tolerance or a hybrid that performs well on their toughest acre. PowerCore is another way for us to provide growers with the right tools to produce a successful crop.”