Wednesday July 6 Ag News

FINANCIAL HEALTH SURVEYS BEING SENT TO NEBRASKA FARMERS AND RANCHERS

The Nebraska Department of Agriculture (NDA), with the assistance of the Department of Agricultural Economics at the University of Nebraska-Lincoln, is conducting a survey on the financial health of producers in the state of Nebraska. The farm financial health review is a part of a four-state regional effort which includes Nebraska, Iowa, Kansas and Missouri.

“This survey will aid officials in the region to better develop programs that will assist producers with management and marketing decisions which is especially important during the current trend of decreased profitability,” NDA Director Greg Ibach said. “This critical information will also allow us to provide guidance and assistance to federal and state agencies as they develop programs in the coming months.”

A random selection of farmers and ranchers statewide will be receiving a letter and survey from the University of Nebraska. The survey can also be accessed online at http://bit.ly/farmhealth. Responding to the survey is voluntary and completely confidential. Respondents are asked to complete the survey by July 24, 2016.

Any questions regarding the study should be directed to Dr. Kate Brooks at (402) 472-1749 or email at kbrooks4@unl.edu.



NEBRASKA GRAZING CONFERENCE SET FOR AUG. 9-10 IN KEARNEY

    University presenters, farmers and ranch managers will discuss topics related to grazing animals and stewardship of grazing lands during the 16th annual Nebraska Grazing Conference Aug. 9-10 at the Kearney Ramada Inn, 301 Second Ave.

    "The planning committee for this annual evenxt strives for a balanced program that addresses both livestock grazing and environmental aspects of grassland management," said Pam Murray with the University of Nebraska-Lincoln Center for Grassland Studies, which coordinates the conference. The committee consists of farmers, ranchers, educators, researchers and consultants in the public and private sectors.

          "The conference evaluation forms year after year indicate that while agricultural producers want to hear from other producers, they also like to learn about the latest research that will help them increase profits and better manage the land for long-term ecological health," Murray said.

    Mary Drewnoski, assistant professor of animal science at UNL, and producer Wayne Rasmussen of Plainview, will address using annual forages and cover crops in grazing systems. Rick Rasby, animal science professor and associate dean of Nebraska Extension, will provide results of a study that examined the impact of removal of corn residue on grain yield and forage measurements. Trey Patterson, CEO and president of Padlock Ranch Company in Ranchester, Wyoming, will discuss factors to consider when making production and economic decisions for larger operations. Fairfield farmer Brian Shaw will describe management practices that led to his family receiving the Nebraska 2015 Leopold Conservation Award. Agricultural economist Derrell Peel from Oklahoma State University will talk about forage and future U.S. beef production. Another Oklahoman, Sam Fuhlendorf, will discuss pyric herbivory (interaction of fire and grazing) to promote livestock production and wildlife conservation. UNL graduate student Maggi Sliwinski will provide results of her research on the effect of grazing system type on bird habitats and bird communities in the Nebraska Sandhills.

    In 2012, many Nebraska producers experienced why it is important to be prepared for inevitable drought periods. Tonya Haigh, rural sociologist in the School of Natural Resources at UNL, will discuss building rangeland resilience to drought, and South Dakota rancher and Leopold Conservation Award recipient Jim Faulstich will share his thoughts on drought planning.

    The average age of today's farmer and rancher is approaching 60. Many young people want to own or manage an agricultural production operation but don't have the capital required to get started. Ron Rosati, dean of the Nebraska College of Technical Agriculture, Lyle Perman of Lowry, South Dakota, and Ryan Sexson of Nenzel, will address this issue.

    Texas rancher and humorist Bob Kinford will discuss cattle handling, holistic herding and planned grazing, and will also entertain at the Tuesday evening banquet.

    Full registration is $80 if paid by Aug. 1 and $100 afterward. Reduced registration fees apply to full-time high school and college students. One-day registrations are also available.

     For more information and to register, visit http://grassland.unl.edu/current-conference.

    The event is sponsored by several public and private organizations, including the 2016 conference underwriters: Farm Credit Services of America, Nebraska Grazing Lands Coalition and the UNL Center for Grassland Studies.



Iowa Corn 300 Celebrates 10th Anniversary with Ethanol Powered Racing on July 10
The Iowa Corn 300 will race into the Iowa Speedway on Sunday, July 10th. This will be the 10th running of the Iowa Corn sponsored event to promote the power and performance of ethanol on the fastest short track on the planet!

The Iowa Corn Growers Association (ICGA) and the Iowa Corn Promotion Board (ICPB) look forward to once again being able to tout the many benefits of ethanol to fans at the track and around the world including its value to the U.S. economy, to reducing fuel costs and carbon emissions as well as providing a homegrown fuel source.

“The Iowa Corn 300 provides a great platform to promote the nearly 40 years corn farmers have been building the corn-based ethanol market,” said ICPB President Mark Heckman, a farmer from West Liberty. “Indy Cars, which run at speeds over 200 miles per hour, are powered by 85 percent ethanol, so fans can see firsthand the power and performance of ethanol. We are pleased to continue to bring the premier racing event to Iowa and continue our partnership with Iowa Speedway and IndyCar.”

ICGA President Bob Hemesath sees the race as an opportunity to connect with consumers. “With over 1,500 ICGA members typically attending the race, and a full house at the track, this event is a great place to connect with people from across the state. We have an even larger audience tuning in from across the nation and world. This year, U.S. Congressman Dave Loebsack (D-District 2) and Iowa Secretary of Agriculture Bill Northey will also be joining us. Promoting Iowa Corn, celebrating homegrown ethanol, and educating consumers are all accomplished with this one great event.”

“We are excited to unveil the new Iowa Corn Mobile Education Center at the Iowa Corn 300,” said Heckman. “The new trailer will be a great educational resource to showcase the many programs of Iowa Corn and the 4,000 every day products made from corn. We encourage all fans to visit the Iowa Corn trailer in the Midway/Concourse area to learn more about Iowa Corn because corn, it’s everything!”



ASA Calls for Further Progress on GMO Labeling Compromise

American Soybean Association (ASA) President Richard Wilkins, a soybean farmer from Greenwood, Del., welcomed the Senate’s action today supporting compromise biotech labeling legislation from Senate Agriculture Committee Chairman Pat Roberts and Ranking Member Debbie Stabenow. In a statement, Wilkins called on the Senate to finalize approval of the measure this week and provide certainty in the marketplace for the nation’s farmers and consumers:

“ASA welcomes today’s vote in the Senate, and we appreciate very much the hard work from Chairman Roberts and Ranking Member Stabenow to get us this far. Their cooperation and coordination has yielded a package that provides consumers the information about biotech content in food products that they need without stigmatizing a completely safe and sustainable food technology.

“We’re now six days into implementation of the Vermont law, and already we’ve seen more than 3,000 food products removed from shelves in Vermont. This drop in sales, coupled with the potential drop in sales due to consumer misperception of the misleading Vermont on-pack label, is already beginning to manifest itself in the marketplace. It’s clear that Congress must act quickly. We call on the Senate to pass the bill when it comes up for a vote later this week.”



NMPF Commends Senate for Moving Roberts-Stabenow Biotech Labeling Amendment Toward Final Vote

The National Milk Producers Federation thanked Senate members for approving a cloture motion today that will set up a final vote on legislation that would create a federal, uniform labeling system for foods produced using biotechnology. The final vote is expected to take place by Friday afternoon.

The legislation, negotiated by Sens. Pat Roberts (R-KS) and Debbie Stabenow (D-MI) of the Senate Agriculture Committee, would preempt Vermont’s state GMO labeling law that took effect July 1, and instead establish national guidelines for how companies disclose the presence of ingredients and foods made with biotechnology. Cloture was invoked Wednesday afternoon with the bipartisan support of 65 Senators. Members now have 30 hours to debate the measure before it moves to a final vote.

“We are now a major step closer to ending the confusion that has already arisen because of the Vermont law,” said NMPF President and CEO Jim Mulhern. “With final passage by the Senate, approval by the House, and with President Obama’s signature, we can establish a national framework to provide information to consumers without stigmatizing agricultural biotechnology and complicating how companies market foods in interstate commerce.”

NMPF expressed its appreciation for the commitment that Sens. Roberts and Stabenow gave to reach a solution on this issue that reaffirms the federal government’s role in food labeling policy.

Mulhern noted that nearly 3,000 products have been pulled from Vermont supermarket shelves in the past week, as a result of companies making decisions not to sell certain products there, now that the state’s own mandatory labeling law is in effect.

“The understandable decision by companies to avoid the Vermont market because of the new state law hurts consumers and is evidence that an issue of this importance must be resolved at the federal level, not on a state-by-state basis,” Mulhern said.

NMPF continues to urge its members to contact their Senators to encourage passage of the Robert-Stabenow agreement, using the organization’s online Dairy GREAT website email tool. The organization recently joined nearly 1,100 food companies in signing a letter pushing for the bill’s passage.

Food ingredients made using biotechnology have been proven safe by more than 2,000 studies from leading scientific bodies worldwide. The U.S. Department of Agriculture, the U.S. Food and Drug Administration, and the U.S. Environmental Protection Agency have all reaffirmed their long-standing recognition of the safety of the technology.



NCGA Urges Quick Action on GMO Labeling Following Important Procedural Vote

National Corn Growers Association President Chip Bowling released the following statement in response to the Senate's cloture vote on the Roberts-Stabenow agreement:

"The National Corn Growers Association is pleased the cloture vote on the Roberts-Stabenow GMO labeling agreement received 65 votes, more than the 60 votes necessary to move the legislation forward. However, there is still important work that needs to be done. We urge the Senate to quickly take action and pass this legislation."

Vermont's mandatory law requiring on-package labels of foods containing ingredients that have been genetically modified went into effect last week. Congress needs to act now to avoid the chaos in the marketplace that will result from having different labeling standards from one state to the next. Multiple studies have shown that the costs associated with Vermont's GMO-labeling law, and a subsequent patchwork of state laws, will cost American families hundreds of dollars more in groceries each year - with low-income Americans being hit the hardest.

The Roberts-Stabenow agreement brings consistency to the marketplace, ensuring that consumers have the access to product information they deserve without stigmatizing this safe, proven, technology valued by American farmers.

NCGA, working with partners across the value chain, has pushed for a solution to this issue for more than two years now as a member of the Coalition for Safe Affordable Food.

For more information on the need for a federal labeling standard, visit the Coalition for Safe Affordable Food, at www.CFSAF.org.



Cloture Vote on GMO Labeling Bill
Zippy Duvall, President American Farm Bureau Federation

"The Senate today did the right thing by voting to move toward a full debate on the merits of the GMO labeling bill. The legislation is not perfect, but it does take critical steps to prevent a confusing 50-state patchwork of laws disclosing the presence of entirely harmless ingredients. It is time for the Senate to pass this legislation so the House can do likewise at its first opportunity."



Statement by Zippy Duvall, President American Farm Bureau Federation, Regarding House Republican Tax Reform Blueprint

"Farmers and ranchers need a tax code that recognizes the unique financial challenges we face. Running a farm or ranch business is challenging under the best of circumstances as we meet with whatever the markets and Mother Nature send our way. But the tax code shouldn't be as unpredictable as the weather.

"Speaker Ryan, Chairman Brady and House Republicans are to be commended for developing a blueprint for rewriting of our nation's cumbersome, convoluted and complex tax code. Their plan is a strong and much-needed start to what will surely be an extensive tax reform discussion. Farm Bureau is very pleased to see the plan includes several very important features for farmers and ranchers including full expensing, exclusions for capital gains and repeal of the estate tax. We look forward to continuing the conversation about meaningful tax reform that benefits the whole economy.

"Agriculture operates in a world of uncertainty, and we appreciate the focus on simplifying and streamlining the tax code. Still, the plan runs deep and wide with bold proposals that will require careful analysis. The American Farm Bureau Federation will take a serious look at the proposal and thanks House Republicans for this dedicated effort."



NMPF Recommends Next Steps to Government on Animal Antibiotic Data Collection
As the federal government continues its focus on the health impacts of antibiotics use in people and animals, the National Milk Producers Federation has provided the Presidential Advisory Council on Combatting Antibiotic-Resistant Bacteria with input on how drugs are used on dairy farms, and how the government should consider updating its data collection process.

Current data collection efforts on farm animal antimicrobial use are fragmented and ad hoc, “resulting in information that has not been scientifically beneficial,” NMPF wrote June 22 to the Department of Health and Human Services, which is the lead federal agency on this issue.

NMPF cautioned that a mere comparison of sales data to animal and human markets is not helpful, and that such comparisons create the impression that sales volumes correlate to the risk of spreading antibiotic-resistant bacteria. Rather than comparing the relative sales of antibiotics for animal and human uses, NMPF believes a national data collection program should be:

1. Objective driven.  A data collection program should start with a clearly stated scientific purpose which drives the collection method.  To date, this clear objective has been lacking in federal data collection efforts.

2. Comprehensive.  Data should be collected on all uses, and data from the human, veterinary and other sectors should be collected in a way that makes meaningful comparison possible.  Human health care systems are not reporting on a weight based measure, but rather in either days of treatment or defined daily doses. Simple comparisons by kilograms or pounds of antibiotics between animal and humans are inherently misleading due to the larger size of most food animals.

3. Globally comparable.  Events continue to demonstrate the global nature of the antibiotic resistance challenge.  Other countries have moved away from volume measurements toward animal defined doses.  Ensuring the U.S. produces globally comparable data will assist in the necessary global coordination of mitigation efforts.

4. Protective of confidentiality.  Public use of farm-level data must be aggregated to protect confidentiality and raw data must be protected from public disclosure. 

NMPF expressed support in its comments for a USDA Animal and Plant Health Inspection Service initiative that features a more comprehensive data collection process.  National Milk has been part of a coalition of livestock, veterinarian, and allied industry organizations that are urging Congress to allocate funding to USDA for this effort.

NMPF’s comments also outlined the value of the National Dairy Farmers Assuring Responsible Management (FARM) animal care Program’s guidance on the proper use of antibiotics as part of an overall herd health plan, along with the importance of the FARM program’s Milk and Dairy Beef Drug Residue Prevention Manual.

The CARB process is a multi-year effort across the federal government to address several related priorities, including on-farm antibiotic use data collection and increased antimicrobial stewardship in food and companion animals.



UAN32 Leads the Way Lower Again

Average retail prices for fertilizers continued to move lower the last week of June 2016, according to fertilizer retailers surveyed by DTN. This marks three weeks in a row fertilizer prices have been notably lower.

All eight of the major fertilizers were lower in price compared to the previous month. However, the only fertilizer to show a significant move was UAN32. The liquid nitrogen fertilizer was down 5% compared to the previous month and had an average price of $304 per ton.

The remaining seven fertilizers were lower in price from last month, but their moves were fairly small. DAP had an average price of $468/ton, MAP $495/ton, potash $358/ton, urea $365/ton, 10-34-0 $554/ton, anhydrous $566/ton and UAN28 $266/ton

On a price per pound of nitrogen basis, the average urea price was at $0.40/lb.N, anhydrous $0.34/lb.N, UAN28 $0.47/lb.N and UAN32 $0.48/lb.N.

Retail prices for all fertilizers are now double digits lower compared to a year ago. 10-34-0 is 14% lower while MAP is 17% less expensive. DAP and UAN32 are both 18% lower. Both anhydrous and UAN28 are 20% lower while urea is 22% lower. Potash is 27% less expensive compared to last year.



National FFA Organization Names 2016 New Century Farmers

The National FFA Organization has selected 33 outstanding young people to participate in the 2016 New Century Farmer conference. This exclusive, highly competitive program develops young men and women committed to pursuing a career in production agriculture.

Participants will take part in an intensive seminar July 10-16 in Johnstown, Iowa. They will learn from each other and industry experts during a series of workshops and sessions. Topics will include the global marketplace, farm financing, demographic trends and risk management. New Century Farmers will hear from motivating and informative keynote speakers who will educate them on the risk and rewards involved with production agriculture. In addition to classroom learning, students will experience the latest developments in agricultural technology.

The New Century Farmer conference is sponsored by DuPont Pioneer; Case IH; CSX Corporation; and Farm Credit with media partner Successful Farming as a special project of the National FFA Foundation. The program is designed to provide participants with valuable skills and knowledge applicable to their own farm/ranch operations. In addition, they will build a network of colleagues that will benefit them throughout their careers.

The 2016 New Century Farmers are:

Cheyenne Upton of Oroville, Calif; Daniel Quinn of Stratford, Conn.; Shelbi McCall of Mayo, Fla.; Morgan Howard of Craigmont, Idaho; Riley Lewis of Ind.; David Turnis of Bernard, Iowa; Anthony Bittel of Owensboro, Ky.; Shelby Wade of Carlisle, Ky.; Alex Heldt of Watertown, Minn.; Asa Nelson of Tracy, Minn.; Mary Sarah Sauber of Motley, Minn.; Cara Fordyce of Maryville, Mo.; Morgan Cuttlers of Raymond, Neb.; Ethan Holland of Olin, N.C.;  Kevin Osborn of Tuttle, Okla.; Tyler Schnaithman of Garber, Okla.; Andrew Armstrong of South Charleston, Ohio; Matthew Klopfenstein of Haviland, Ohio; Michaela Kramer of Wapakoneta, Ohio; Jenna lee of Marysville, Ohio; Abigail Motter of Mansfield, Ohio; Madison Sheahan of Curtice, Ohio; Austin Wippel of Orient, Ohio; Brandon Myers of Lexington, S.C.; Kaden Eisenbraun, of Wall, S.D.; Caleb Brannon of Puryear, Tenn.; Colson Dreibrodt of San Marcos, Texas; Cameron Young of Lubbock, Texas; Jacob Lake of Logan, Utah; Rebekah Slabach of Alton, Va.; Maggie Elliot of Prosser, Wash.; Logan Zepp of Elma, Wash.; and Matt Kortbein of Warrens, Wis.

The National FFA Organization provides leadership, personal growth and career success training through agricultural education to 629,367 student members who belong to one of 7,757 local FFA chapters throughout the U.S., Puerto Rico and the Virgin Islands.



Growth Energy and Prime the Pump Welcome RaceTrac to Growing Number of E15 Retailers

Today, Growth Energy announced that RaceTrac is joining a growing list of retailers as part of the Prime the Pump initiative. Growth Energy works in collaboration with Prime the Pump members to make higher biofuel blends, like E15, available to more Americans across the nation. RaceTrac joins the ranks of Sheetz, Kum & Go, MAPCO, Minnoco, Thorntons, Murphy USA, Protec, and several others as the newest retailer to offer consumers a cleaner burning, home-grown American fuel.

“We are thrilled to have RaceTrac join our retailer family and look forward to expanding access to E15 for consumers across the Southern United States with them,” said Growth Energy CEO Emily Skor. “As a longtime supporter of alternative fuels, such as E85, RaceTrac is committed to providing its customers with a choice at their pumps. By adding E15, RaceTrac will bring even more renewable fuel options to consumers, providing greater choice and savings to motorists.

“We are proud to be a part of this effort, and are confident that consumers will choose E15 because it reduces harmful emissions, burns cooler and has increased octane levels which results in enhanced vehicle performance, while also saving drivers money.”

RaceTrac is headquartered in Atlanta, Georgia and operates more than 600 company-owned and third-party contract operated stores under the RaceTrac and RaceWay names in 12 southern states.



Brexit and the Cattle Markets
Brian R. Williams, Assistant Extension Professor
Department of Agricultural Economics, Mississippi State University

As most are already aware, the citizens of the United Kingdom voted on June 23, 2016 to end its membership in the European Union. The immediate effect of the vote caused markets across the globe to come tumbling down. The Dow Jones industrial average dropped just under 3.4 percent following the vote, while some individual European stocks dropped by as much as 20 percent. Meanwhile the value of the dollar jumped to the highest levels since March as investors sought more stability. In the days following the United Kingdom's decision to leave the EU, many of the markets have begun to return to pre "Brexit" levels. The Dow Jones industrial average has fully recovered its lost value, while the U.S. dollar index has slowly began to creep lower again.

In terms of trade, the vote to leave the EU means that the United Kingdom will also be leaving behind many of the trade agreements with the EU. That includes agreements made between the EU and the U.S. On the positive side, that leaves the U.K. with more freedom to negotiate its own trade agreements with the U.S. and may be able to avoid the restrictive policies toward U.S. beef in any new trade agreements. In recent years, U.S. beef trade with the United Kingdom has been limited but growing. The U.S. exported 3.668 million pounds of beef to the U.K. in 2015, up from 913,000 pounds in 2014 and 502,000 pounds in 2013. While U.K. imports currently pale in comparison to countries such as Canada, Mexico, and Japan, with the ability to directly negotiate with the U.S. without interference from its other European counterparts we could eventually see a boost in U.S. beef exports headed to the U.K.

So what does this all mean for beef markets? In the very short run, the "Brexit" vote caused a drop in cattle markets as traders feared that falling stock markets could put a damper on beef demand. But, as I mentioned earlier, the Dow Jones Industrial average has fully recovered and the effect on cattle markets didn't last long at all. In the days following the vote, other factors took hold in the cattle markets and traders have essentially forgotten the vote. Ultimately, in the long run the U.K.'s vote to leave the EU will not change the cattle market fundamentals. Factors such as feed prices, herd size and growth, and domestic consumer demand, among other things will continue to be the drivers behind cattle markets.



US Ethanol, DDG Exports Down From 2015

U.S. exports of goods and services totaled $182.4 billion in May, down $0.3 billion from April while imports increased $3.4 billion to $223.5 billion, the U.S. Census Bureau reported early Wednesday. USDA later provided more details for exports of ethanol, distillers grains and biodiesel.

USDA said that U.S. exports of ethanol totaled 55.7 million gallons in May, down 14% from a year ago. Canada was the top customer, accounting for 38% of May's sales with China a close second. In the first five months of 2016, U.S. ethanol exports were up 6% from a year ago.

USDA said that U.S. exports of distillers grains totaled 1.06 million metric tons in May, down 9% from a year ago. China was the top customer in May, taking 27% of total exports, but distillers grains exports to China for all of 2016 are down 59% from a year ago. In the first five months of 2016, U.S. exports of distillers grains were down 4% from a year ago.

USDA said that U.S. exports of biodiesel totaled 47,040 metric tons in May, up 31% from a year ago. Canada was the dominant buyer again in May, taking 74% of all exports. In the first five months of 2016, U.S. biodiesel exports were up 25% from a year ago.



UDSA Dairy Products May 2016 Production Highlights

Total cheese output (excluding cottage cheese) was 998 million pounds, 1.2 percent above May 2015 and 0.7 percent above April 2016.  Italian type cheese production totaled 439 million pounds, 5.2 percent above May 2015 and 0.6 percent above April 2016.  American type cheese production totaled 400 million pounds, 1.9 percent below May 2015 but 1.1 percent above April 2016.  Butter production was 170 million pounds, 0.3 percent above May 2015 but 3.7 percent below April 2016.

Dry milk powders (comparisons with May 2015)
Nonfat dry milk, human - 165 million pounds, down 8.3 percent.
Skim milk powders - 50.3 million pounds, up 41.4 percent.

Whey products (comparisons with May 2015)
Dry whey, total - 81.8 million pounds, up 3.1 percent.
Lactose, human and animal - 89.9 million pounds, up 1.9 percent.
Whey protein concentrate, total - 38.4 million pounds, down 12.6 percent.

Frozen products (comparisons with May 2015)
Ice cream, regular (hard) - 71.9 million gallons, up 9.8 percent.
Ice cream, lowfat (total) - 40.3 million gallons, down 2.1 percent.
Sherbet (hard) - 3.49 million gallons, down 6.6 percent.
Frozen yogurt (total) - 5.75 million gallons, down 1.4 percent.



 CWT-assisted member export sales contracts hit 7.4 million pounds in June

Cooperatives Working Together member cooperatives captured 17 contracts to sell 4.868 million pounds of American-type cheese, 458,562 of butter and 2.119 million pounds of whole milk powder in June. These products will go to customers in Asia, Central America, the Middle East, North Africa, Oceania and South America. The product will be shipped from June through December 2016.

For the first six months of 2016, CWT assisted members in winning export sales contracts totaling 28.098 million pounds of American-type cheese, 5.351 million pounds of butter (82% milkfat) and 20.406 million pounds of whole milk powder going to customers in 20 countries on five continents. The sales are the equivalent of 528.696 million pounds of milk on a milkfat basis. Totals are adjusted to reflect cancellations.

Assisting CWT member cooperatives gain and maintain world market share through the Export Assistance program expands the long-term demand for U.S. dairy products and the U.S. farm milk that produces them. This, in turn, positively impacts all U.S. dairy farmers by strengthening and maintaining the value of dairy products that directly impact their milk price.



Purdue/CME Ag Barometer Shows Producer Sentiment Rebound

Producer sentiment surrounding the U.S. agricultural economy rebounded in June after a dip in May, according to the latest survey results from the Purdue/CME Group Ag Economy Barometer.

The June Producer Sentiment Index landed at 104, up seven points from the May reading. The index is based on a monthly survey of 400 U.S. agricultural producers and includes measures of sentiment surrounding both current conditions and future expectations.

Barometer principal investigator Jim Mintert said the increase can be at least partially attributed to stronger overall grain and oilseed markets over the last three months. In June, corn and soybean both traded at prices not seen since summer 2015. Soybean prices approached $12 per bushel, well above $8.75 that producers saw in April.

"Evaluating the barometer more closely shows us that the uptick in producer sentiment was driven primarily by an improvement in the Index of Current Conditions, which jumped from 83 in May to 98 in June," said Mintert, who is the director of Purdue's Center for Commercial Agriculture and a professor of agricultural economics. "Additional increases in overall producer sentiment came from the Index of Future Expectations, which settled slightly higher at 107, up three points since May."

Ag Barometer JuneSurveys over the last three months also have shown that producers view their own farm operations' financial health differently than they view the health of the overall agricultural economy, said David Widmar, Purdue research associate who works on the barometer.

"Producers hold a more pessimistic view of their own farms' financial situations than they do of the agricultural economy," he said.

For example, after declining significantly in April, the number of producers expecting their farm operations to be worse off financially in a year moved higher, increasing from just 27 percent in April to 37 percent in June.

In contrast, the share of respondents who expected financially bad times for the overall agricultural economy in the next 12 months trended lower over the same time period, declining from 75 percent in April to 65 percent in June.

The reasons why these sentiments vary isn't clear, but a continuation of the trend could be a sign that producers will emphasize controlling costs through reduced spending, Widmar said.

One factor weighing heavily on producers' minds is the summer weather. While farmers always have to deal with the weather, there has been some concern surrounding the possibility of La Nina setting in and the impact it could have on U.S. corn and soybean production.

Barometer researchers included weather-related questions on the June survey given the impact that weather speculation already has had on rising grain and oilseed market prices, Mintert said. Producers were asked about the likelihood of widespread adverse impacts on 2016 crop yields associated with extreme weather events. About 44 percent of respondents reported that they felt this was at least somewhat likely to happen. When asked about the likelihood of weather-related yield loss in their local areas, just over half of survey respondents - 53 percent - reported that they expect extreme weather to reduce crop yields in 2016.

Researchers also asked producers whether they had changed their farms' marketing plans because of the potential for extreme weather events in the next year. Nearly 30 percent of respondents said they had.

To read the full June report, access additional resources, including webinar archives and schedules, visit purdue.edu/agbarometer.



Agrium Buying 18 Cargill Retail Dealers

(AP) -- Agribusiness giant Cargill Inc. is selling 18 retail crop input dealers to Canadian-based crop production services company Agrium Inc.

The companies said in a statement Wednesday that the locations have annual revenues of over $150 million. The outlets are in Nebraska, South Dakota, Minnesota, Wisconsin, Michigan and Indiana. The sale does not involve Cargill's Canadian crop input retail business.

Agrium president and CEO Chuck Magro said the retail locations are in areas of the Corn Belt where his company has a limited presence. Agrium's retail distribution network has over 1,400 facilities selling fertilizers, herbicides, insecticides, fungicides, seeds and services.

The group leader of Cargill's North American agricultural supply chain, Roger Watchorn, said that privately held Cargill will focus on being the world's leading merchant of grain and oilseeds.