Wednesday July 27 Ag News

Three Public Hearings Scheduled at the Upper Big Blue NRD
The Upper Big Blue NRD Board of Directors have scheduled three upcoming Public Hearings.  The first two Public Hearings are the FY2017 Budget and the District Rule 8: Erosion & Sediment Control revisions scheduled for Thursday, August 18, 2016 at 7:30 p.m.  A Special Public Hearing for the FY2017 Tax Request is scheduled Thursday, September 15, 2016 at 7:30 p.m.

All three of these Public Hearings will be conducted at the Upper Big Blue Natural Resources District office building located at 319 East 25th Street, York, Nebraska.  The proposed budget and tax request for FY2017 continues to include safety measures for protecting District citizens and enhancing the delivery of quality services.  The Rule 8 revisions are reformatted to remain consistent with changes in statute passed by the Nebraska Legislature.  The public is welcome and encouraged to attend these Public Hearings.



Trade Visit to Demonstrate U.S. Wheat Competitive Advantages to Venezuelan Millers

Quality control and purchasing managers from three Venezuelan flour mills will visit North Dakota, Nebraska, Kansas and Ohio July 31 to Aug. 6, 2016, to learn more about the value of working with the U.S. wheat supply chain. With funding from USDA’s Foreign Agricultural Service, U.S. Wheat Associates (USW) is sponsoring this trade team in cooperation with the North Dakota Wheat Commission, Nebraska Wheat Board, Kansas Wheat Commission and Ohio Small Grains Marketing Program.

Chad Weigand, USW Assistant Regional Director for Mexico, Central America and the Caribbean, said U.S. wheat exports to Venezuela are not as strong as they once were, in part because increased government intervention and limited access to U.S. dollars have forced millers there to make cost a primary buying decision.

Venezuela imports durum, high protein spring wheat and soft red winter wheat. However, current market conditions there have given Mexican durum a competitive advantage. Canadian western red spring wheat has only recently come up in price to near parity with U.S. hard red spring (HRS) wheat, but the high U.S. dollar value continues to favor Canadian origin export prices. For the vibrant cookie and snack market in Venezuela, soft red winter grown in eastern Canada continues to compete with U.S. soft red winter (SRW). 

Participants on this team represent some of the largest mills in Venezuela, but they do not have significant knowledge of U.S. wheat quality, its marketing system or federal inspection services.

“With key decision makers like these, we have to demonstrate why performance and value is worth more, but it is very difficult for our staff to conduct activities in Venezuela,” said Weigand. “By coordinating with our state wheat commissions, however, we can bring these customers to the United States to see our production and export system at work. That first-hand experience will help increase their confidence in U.S. wheat.”

Weigand, who is based in USW’s regional office in Mexico City, is leading the team, which includes Jenny Villasuso, Purchasing Manager for MONACA, the second largest milling group in Venezuela. Laura Paz is Purchasing and Quality Manager for Pastas Capri in Caracas, one of Venezuela’s largest pasta producers. Violeta Rosales is Purchasing Manager for Molinos Hidalgo, which operates a mill in Catia La Mar.

USW is the industry’s market development organization working in more than 100 countries. Its mission is to “develop, maintain, and expand international markets to enhance the profitability of U.S. wheat producers and their customers.” USW activities are made possible through producer checkoff dollars managed by 19 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. USW maintains 17 offices strategically located around the world to help wheat buyers, millers, bakers, wheat food processors and government officials understand the quality, value and reliability of all six classes of U.S. wheat.



FARMERS ENCOURAGED TO APPLY NOW FOR COST-SHARE FOR COVER CROPS, NO-TILL/STRIP-TILL AND NITRIFICATION INHIBITOR

Iowa Secretary of Agriculture Bill Northey today reminded Iowa farmers that funds are available to help install practices focused on protecting water quality.  Practices eligible for this funding are cover crops, no-till or strip till, or using a nitrification inhibitor when applying fertilizer.

The cost share rate for first-time users of cover crops is $25 per acre, no-till or strip till are eligible for $10 per acre and farmers using a nitrapyrin nitrification inhibitor when applying fall fertilizer can receive $3 per acre. Farmers are eligible for cost share on up to 160 acres.

First-time users that apply by August 1 will be the first applications funded.  First-time users that apply after August 1 will still receive priority consideration, but funds will also be made available to farmers that have used cover crops in the past for cost share assistance at $15 per acre.

“We already have $1.6 million in applications from more than 700 farmers interested in trying a new practice on their farm to better protect water quality. However, we do have some funds available, both for first time users and those interested in trying cover crops again. I hope interested farmers will contact their local Soil and Water Conservation District soon to learn more about the assistance that is available,” Northey said.

Farmers are also encouraged to visit their local Soil and Water Conservation District office to inquire about additional opportunities for cost share funding through other programs offered at their local SWCDs.

The cost share assistance was announced on May 11.  Since then, the Governor has signed into law $9.6 million to support the Iowa Water Quality Initiative.

In the last 3 years this statewide program has been available, over 2,900 farmers in each of Iowa’s 99 counties have put in nutrient reduction practices on over 294,000 acres.  The state provided about $6.2 million in cost share funding to help farmers try a water quality practice and Iowa farmers provided more than $6.2 million of their own resources to support these water quality practices.



NORTHEY ENCOURAGES IOWANS TO CONSIDER RUNNING TO SERVE AS SOIL AND WATER CONSERVATION DISTRICT COMMISSIONER

Iowa Secretary of Agriculture Bill Northey today encouraged Iowans interested in protecting our state’s soil and water resources to consider running to serve as a Soil and Water Conservation District Commissioner.  Anyone interested in becoming a commissioner should contact their local Soil and Water Conservation District.  Nomination papers must be filed by August 31, 2016.

“Each of Iowa's 100 Soil and Water Conservation Districts are managed by five volunteer commissioners who help their community meet their conservation priorities,” Northey said.  “Commissioners help oversee the distribution of federal, state and local conservation aid in their community.”

Each of the 100 Soil and Water Conservation Districts (SWCDs) in Iowa (one in each county and two in Pottawattamie) is composed of five commissioners and are the local legal subdivisions of state government responsible under state law for soil and water conservation work within their boundaries. Candidates are elected locally on a nonpartisan ballot during the general election.

The Iowa Department of Agriculture and Land Stewardship and USDA Natural Resources Conservation Service (NRCS) provide assistance to the commissioners as they seek to address the natural resource issues that are most critical in their districts.

The Conservation Districts of Iowa has more information about being a Soil and Water Conservation District Commissioner available at http://cdiowa.org/conservation-districts-of-iowa/programs/commissioner-development/become-a-soil-and-water-conservation-district-commissioner. 



Fertilizer Prices Remain Slightly Lower

As the growing season marches on, retail fertilizer prices continue to decline slowly, according to retailers tracked by DTN for the third week of July 2016.

All eight of the major fertilizers were lower in price compared to the previous month, but, as been the case in recent weeks, none were down an amount of any significance. DAP had an average price of $464/ton, MAP $493/ton, potash $357/ton and urea at $357/ton. 10-34-0 was at $546/ton, anhydrous $546/ton, UAN28 $260/ton and $304/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.39/lb.N, anhydrous $0.33/lb.N, UAN28 $0.46/lb.N and UAN32 $0.48/lb.N.

Retail fertilizers are lower compared to a year earlier. All fertilizers are now double digits lower.

Both UAN32 and 10-34-0 are 14% lower, MAP is 17% less expensive and DAP is 18% lower. UAN28 is 20% lower, Anhydrous is 21% less expensive, urea is 24% lower and potash is 27% less expensive compared to last year.



DYK Beef Checkoff Audio Shorts - Foreign Marketing

Did you know ... at a recent checkoff-funded supermarket promotion in Lebanon – themed “U.S. Beef Takes Care of Your Health” – chefs grilled U.S. beef for shoppers and distributed an educational leaflet — Eat Right with U.S. Beef? In the Middle East, retail growth continues at a rapid pace and, due to a remarkable change in shopping habits, consumers increasingly seek the convenience, ambience, and wider variety of products offered in modern grocery stores. To ensure an increasing presence for U.S. beef in the region, the beef checkoff supports regular in-store promotions aimed at consistent, year-round sales of U.S. beef, using cooking demonstrations and tastings to showcase underutilized cuts and processed products.

Did you know ... hotels and restaurants in the former Soviet republic, Azerbaijan, are promising markets for alternative U.S. beef cuts? Given that, beef-checkoff export promotions have shifted focus from Russia to other markets in the region. Traditionally high levels of beef consumption improve opportunities for developing sales of high-quality U.S. beef, including offal. Earlier this year, the checkoff funded a workshop for chefs in Baku designed to create demand for a greater variety of U.S. beef cuts and grades and to expand the number of foodservice outlets selling U.S. beef and veal.

Did you know ... a key beef-promotion strategy in Taiwan is to educate restaurants and chefs about U.S. beef production, safety, and versatility? Increased demand in other Asian markets for Asia-specific U.S. cuts, such as chuck flap, top blade and boneless chuck short ribs, is driving family style restaurants to seek alternative high-quality beef products at a competitive price. With this in mind, the checkoff helped fund a “New Cuts and Creative Cuisine Seminar” for chefs, cooking instructors and other key restaurant staff in Taiwan, designed to highlight new dish ideas and reinforce the high U.S. beef-safety standards to Taiwan’s new generation of menu planners and buyers.

Did you know ... the checkoff helped fund spring retail promotions, featuring U.S. beef striploin, ribeye and chuck, recipe cards and educational materials in Oman – one of the most promising retail sectors for U.S. beef in the world? The Middle East imports a large share of its food to meet growing demand for premium items, including high-quality beef muscle cuts. The region’s large youth population is driving many of the trends in the food and beverage industry, with social media helping shape attitudes. This in-store U.S. beef promotion introduced shoppers to a variety of U.S. beef cuts and encouraged local distributors to overcome their hesitancy to promote U.S. beef muscle cuts with retailers by providing the marketing and merchandising knowledge to help them penetrate this sector effectively.

To learn more about your beef checkoff investment, visit MyBeefCheckoff.com.



EIA: Ethanol Stocks Down

The Energy Information Administration released data Wednesday showing ethanol inventories and domestic production fell while blender inputs increased slightly last week.

The data showed total inventories were drawn down 800,000 bbl or 3.6% to 20.4 million bbl for the week-ended July 22, with a year-over-year surplus reduced to 800,000 bbl or 4.1%.

Regionally, PADD 1 East Coast supplies fell by 100,000 bbl to 7.4 million bbl while PADD 2 Midwest supplies rose 100,000 bbl to 6.5 million bbl. PADD 3 Gulf Coast supplies fell 700,000 bbl to 3.7 million bbl while inventories in PADD 4 Rocky Mountain and PADD 5 West Coast were unchanged.

Plant production decreased 31,000 bpd or 3.0% to 998,000 bpd while up 27,000 bpd or 2.8% year-over-year.

Net refinery and blender inputs increased 2,000 bpd to 936,000 bpd during the week-ended July 22, while up 41,000 bpd or 4.6% year-over-year.



Japan Wants to Approve TPP, Despite U.S. Political Opposition

While the Republican Party and many Democrats may have cooled on the Trans-Pacific Partnership, Japan is forging ahead on the 12-country Asia-Pacific agreement. Prime Minister Shinzo Abe, who's Liberal Democratic Party recently secured a majority in the upper house of Japan's legislature, is working to get the Diet to ratify the TPP this fall. Japan is not interested in re-working the deal.

"Renegotiation is impossible because there is a delicate balance," Atsuyuki Oike, deputy chief of mission at Japan's U.S. embassy, recently told reporters at a National Foreign Trade Council briefing on the agreement.

The TPP, negotiations on which were initiated in late 2008 and concluded last October, is a regional trade deal that includes the United States, Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam, which account for nearly 40 percent of global GDP.



Fed Keeps Key Interest Rate Steady

(AP) -- The Federal Reserve is keeping interest rates unchanged while noting that near-term risks to the economy have diminished.

The Fed said Wednesday that the U.S. job market has rebounded, with strong job gains in June after a slump in May. But it said in a statement after its latest policy meeting that it still plans to monitor global economic threats and financial developments to ensure that they don't slow the economy.

The central bank gave no hint of when it might resume the rate hikes it began in December, when it raised its benchmark rate from a record low.

Some economists think a hike is possible in September, if hiring remains solid and the turbulence that followed Britain's vote to leave the European Union continues to stabilize.

The decision to leave its key rate unchanged in a range of 0.25 percent to 0.5 percent was approved on a 9-1 vote. Esther George, the president of the Fed's Kansas City regional bank, dissented for the third time this year, arguing for an immediate quarter-point rate hike.

The more positive tone in this statement, compared with the previous statement in April, will likely raise expectations that the central bank could be ready to boost rates at it September meeting if the economy keeps improving.

"Near-term risks to the economic outlook have diminished," the Fed said.

But it repeated a previous pledge to "continue to closely monitor inflation indicators and global economic and financial developments."

A few months ago, it was widely assumed that the Fed would have resumed raising rates by now. But that was before the U.S. government issued the bleak May jobs report and Britain's vote last month to quit the EU triggered a brief investor panic. Since then, though, a resurgent U.S. economy, the bounce-back in hiring and record highs for stocks have led many economists to predict a Fed move by December if not sooner.



CNH Industrial Reports Lower Sales, Net Income

CNH Industrial N.V. announced consolidated revenues of $6,753 million for the second quarter 2016, down 2.9% compared to the second quarter 2015. Net sales of Industrial Activities were $6,450 million in Q2 2016, down 2.8% compared to the same period in 2015.

Reported net income was $129 million in the second quarter, which includes an additional non-tax deductible charge of $49 million following finalization of the European Commission settlement on the truck competition investigation. Adjusted net income was $216 million for the quarter.

Agricultural equipment's net sales decreased 7.5% for the second quarter 2016 compared to the same period in 2015 (down 6.3% on a constant currency basis), as a result of lower industry volume, unfavorable product mix in the row crop sector in NAFTA and unfavorable industry volume in the small grain sector in EMEA. Net sales increased in APAC, mainly driven by higher volume in Australia. Sales in specialty tractors and harvesters in EMEA remain strong, and in LATAM sugar cane harvester demand offset the industry decline for tractors.

Meanwhile, operating profit was $301 million for the second quarter ($263 million in the second quarter 2015). The increase was primarily due to positive pricing and cost containment actions, including material cost reductions, and favorable foreign exchange impact. Operating margin increased 2.0 p.p. to 10.7%.