Monday August 1 Crop Progress + Ag News

NEBRASKA CROP PROGRESS AND CONDITION

For the week ending July 31, 2016, temperatures averaged two to four degrees below normal, lessening crop moisture demands and livestock stress, according to the USDA’s National Agricultural Statistics Service. Precipitation was widespread, but amounts varied from over three inches in portions of central Nebraska to little or no accumulations in extreme eastern counties. Hail was reported in localized areas. There were 5.7 days suitable for fieldwork. Topsoil moisture supplies rated 7 percent very short, 27 short, 65 adequate, and 1 surplus. Subsoil moisture supplies rated 5 percent very short, 25 short, 69 adequate, and 1 surplus.

Field Crops Report:
Corn condition rated 1 percent very poor, 4 poor, 18 fair, 59 good, and 18 excellent. Corn silking was 95 percent, near 91 both last year and the five-year average. Dough was 25 percent, ahead of 20 last year, but near 26 average.

Sorghum condition rated 0 percent very poor, 0 poor, 16 fair, 68 good, and 16 excellent. Sorghum headed was 42 percent, behind 52 last year, but ahead of 37 average. Coloring was 1 percent, near 3 both last year and average.

Soybeans condition rated 1 percent very poor, 3 poor, 20 fair, 62 good, and 14 excellent. Soybeans blooming was 87 percent, near 86 both last year and average. Setting pods was 43 percent, behind 48 last year, and near 46 average.

Winter wheat condition rated 3 percent very poor, 8 poor, 24 fair, 50 good, and 15 excellent. Winter wheat harvested was 97 percent, ahead of 90 last year and 89 average.

Oats condition rated 2 percent very poor, 1 poor, 26 fair, 63 good, and 8 excellent. Oats harvested was 76 percent, ahead of 71 last year, but behind 82 average.

Alfalfa condition rated 4 percent very poor, 3 poor, 16 fair, 63 good, and 14 excellent. Alfalfa second cutting was 96 percent, ahead of 86 last year and 90 average. Third cutting was 41 percent, ahead of 29 last year and 32 average.

Livestock, Pasture and Range Report:
Pasture and range conditions rated 2 percent very poor, 4 poor, 21 fair, 62 good, and 11 excellent. Stock water supplies rated 1 percent very short, 8 short, 89 adequate, and 2 surplus.



IOWA CROP PROGRESS & CONDITION

Relatively dry conditions throughout the week were ideal for crop development and allowed Iowa farmers 5.4 days suitable for fieldwork for the week ending July 31, 2016, according to the USDA, National Agricultural Statistics Service. Activities for the week included cutting hay and aerial spraying of corn with fungicide and insecticide.

Topsoil moisture levels rated 2 percent very short, 10 percent short, 82 percent adequate and 6 percent surplus. Subsoil moisture levels rated 2 percent very short, 12 percent short, 81 percent adequate and 5 percent surplus.

Ninety-five percent of the corn crop reached the silking stage, five days ahead of last year and almost two weeks ahead of the five-year average. Thirty-five percent of the corn crop reached the dough stage. Isolated reports of corn starting to dent were received from across the State. Corn condition rated 83 percent good to excellent.

Soybeans blooming reached 90 percent, 6 days ahead of the previous year. Sixty-four percent of soybeans were setting pods, 5 days ahead of last year. Soybean condition rated 83 percent good to excellent. Seventy-eight percent of the oat crop for grain or seed was harvested, 2 days ahead of both last year and the average.

The second cutting of alfalfa hay reached 93 percent, more than 2 weeks ahead of last year and 10 days ahead of normal. The third cutting of alfalfa hay was 28 percent complete, 6 days ahead of average. Hay condition was rated 73 percent good to excellent, while pasture condition was rated 61 percent good to excellent. Reduced temperatures improved livestock conditions which were reported to be good.



IOWA PRELIMINARY WEATHER SUMMARY
Provided by Harry J. Hillaker, State Climatologist
Iowa Department of Agriculture & Land Stewardship

It was a dry week with seasonal temperatures across Iowa. Temperatures averaged slightly above normal in most areas through Wednesday (27th) and below normal for the remainder of the reporting week. Temperature extremes varied from Wednesday afternoon highs of 90 degrees at Sioux City and Donnellson to Saturday (30th) morning lows of 51 degrees at Sheldon and Spencer. Temperatures for the week as a whole averaged 0.6 degrees below normal. No rain of consequence fell over about one-half of the state with most of central, south central and southeast Iowa recording no rain at all. There were isolated thunderstorms on several days, but coverage was minimal. There was a small area of an inch or more of rain from western Crawford County down to Cass County on Wednesday. Similar storms popped up over the northeast and southeast corners of Iowa on Friday with localized inch or more rain amounts in northern Fayette, southern Allamakee and portions of Washington and Louisa counties. The maximum rainfall reported for the week was from Yellow River State Forest in southeast Allamakee County with 2.55 inches. The statewide average precipitation was 0.18 inches while normal for the week is 0.94 inches. This was the driest week in eleven weeks (mid-May).



USDA Weekly Crop Progress

Soybean condition ratings improved slightly while corn held steady during the week ended July 31, according to USDA's latest Crop Progress report released Monday.

The nation's corn crop is 91% silked and 30% in the dough stage, compared to 79% and 13% last week, 87% and 25% last year and five-year averages of 85% and 25%. Corn condition was unchanged from a week ago at 76% good to excellent.

Soybeans are 85% blooming and 54% setting pods, compared to 76% and 35% last week, 78% and 48% last year and five-year averages of 79% and 44%. Seventy-two percent of the nation's beans are rated good to excellent, up one percentage point from last week's 71%.

Winter wheat was 89% harvested as of Sunday, compared to 83% last week, 91% last year and an 86% average. "Monday's report is neutral for winter wheat," Hultman said.

Spring wheat harvest was reported for the first time this growing season at 10% complete. Last year at this time 6% of the harvest was complete and the average is 9%. Spring wheat condition was rated as 68% good to excellent, even with last week.

Cotton squaring was at 92%, compared to 85% last week, 90% last year and a 91% average. Setting bolls was reported at 54%, compared to 46% last week, 53% last year and a 57% average. Cotton condition worsened to 15% poor to very poor, compared to 13% last week.

Rice was 71% headed, compared to 57% last week, 60% last year and a 54% average. Rice condition worsened slightly to 66% good to excellent, compared to 67% last week.

Sorghum was 61% headed, compared to 49% last week, 54% last year and 50% on average. Coloring was reported at 26%, compared to 23% last week, 27% last year and a 29% average. Sorghum condition improved to 66% good to excellent compared to 65% last week.

Oats were 53% harvested as of Sunday, compared to 37% last week, 38% last year and a 42% average. Oats condition remained steady at 64% good to excellent.

Barley harvest was reported at 11% complete, compared to 14% last year and an 8% average. Barley condition was slightly worse at 72% good to excellent compared to 73% last week.



KREHBIEL NAMED HEAD OF UNL ANIMAL SCIENCE DEPARTMENT

    Clinton Krehbiel, Regents Professor of Animal Science and Dennis and Marta White Endowed Chair at Oklahoma State University, will join the University of Nebraska-Lincoln Jan. 1, 2017, as head of the animal science department. In addition to his faculty responsibilities, Krehbiel is assistant department head of animal science at Oklahoma State University.

    "The animal science department serves a part of agriculture that is very important to the economy of Nebraska," said Institute of Agriculture and Natural Resources Interim Vice Chancellor Ron Yoder. "I am pleased a leader and scientist with the stature of Dr. Krehbiel will be joining IANR to lead the department."

    "I am honored to be named head of the animal science department at UNL," Krehbiel said. "With the current leadership and vision at IANR and UNL, I believe the department is in a position to continue operating as one of the strongest worldwide. I look forward to working with faculty, staff and the student body to discover how we can make a significant contribution to the people of Nebraska and the growing population throughout the world."

    The animal science department provides resident instruction, extension programs and research in breeding and genetics, meat science, ruminant and non-ruminant nutrition, physiology, animal well-being, production and management. Species represented in these programs include beef cattle, dairy cattle, horses, poultry, swine, sheep, companion animals and laboratory animals. Students who graduate with a degree in animal science go into animal production, veterinary medicine, sales and marketing, research and many other career fields.

    Krehbiel has been at Oklahoma State University since 2000, coming through the ranks of assistant, associate, professor and Regents Professor. He is the inaugural holder of the Dennis and Marta White Endowed Chair in Ruminant Nutrition and Health. Krehbiel’s research interests focus on developing methods to reduce costs of production and optimize outputs that enable cattle producers to improve animal health, increase consistency and quality of their end product and become more profitable.

    Krehbiel received his bachelor and master's degrees from Kansas State University. He earned his doctorate from UNL in 1994 and was a postdoctoral fellow at the U.S. Meat Animal Research Center near Clay Center from March 1995 to July 1996. Prior to his time at Oklahoma State University, Krehbiel was an assistant professor of animal science at New Mexico State University.

    Krehbiel succeeds Larry Berger, who retired June 30 after being the department head for six years. Phil Miller, professor of animal science, will continue to be the interim department head until Krehbiel assumes the role.



SPREADING MANURE ON ALFALFA
Bruce Anderson, NE Extension Forage Specialist

               Will spreading manure during summer help or harm alfalfa?  To avoid much damage, some guidelines are needed.

               If you have manure to spread during summer, sometimes the only place available is an alfalfa field.  But be careful; manure can cause problems on alfalfa.

               Liquid manure can burn leaves due to salt injury, and dry manure can smother plants if it is applied too heavily or in large chunks.  Manure can spread weed seeds, and the nitrogen in manure can stimulate grasses already in the alfalfa to become more competitive.  Also, manure application equipment can damage alfalfa crowns and compact soil.

               Obviously, to avoid any of these problems, spread the manure on other land if it is available.  But if you have no other choice but to spread manure on alfalfa, follow these suggestions:

First — apply less than three thousand gallons of liquid manure or ten tons of solid manure per acre to minimize salt burn or smothering. If manure is dry, adjust the spreader to break up large chunks that can smother growth.

Second — spread manure immediately after removing a cutting to minimize direct contact with foliage.

Third — only spread manure when fields are dry and firm to limit soil compaction and avoid wheel traffic damaging plant crowns.

And finally —  if you wish to stimulate grass yield, apply manure to fields with lots of grass, otherwise select fields with little grass in order to minimize grassy competition.

               Manure is a great source of nutrients and can enhance biological activity and soil physical properties.  But be careful when applying it to alfalfa so you don't do more harm than good.



Latino Beginning Farmer and Rancher Workshops Coming to Central Nebraska

The Center for Rural Affairs is offering a six-week series of Latino Beginning Farmer and Rancher workshops in Schuyler, Nebraska. The sessions will be held every Tuesday from August 23 to September 27, 2016.

Workshops are designed for those in the Latino community who are interested in starting their own farm or ranch.

“These in-depth workshops are perfect for those with the passion to start your own farm or ranch business,” said Lucia Schulz with the Center for Rural Affairs. “You'll learn about business and financial themes, as well as production and marketing. You don't have to have land or experience to attend.”

What: six-session series of Latino Beginning Farmer & Rancher Workshops
When: Tuesdays August 23-September 27
Where: Schuyler Public Library, 1123 A St, Schuyler, Ne 68661 
Time: 5-7 p.m.

Workshops are free and open to the public, and will be instructed in both Spanish and English. Attendees will build their capacity for agricultural success, learning business management, financial literacy, and leadership tools.  Expert speakers, including farmer and financial experts, will present on topics such as producer associations and marketing. At the end of the series, attendees will have the opportunity to visit specific area farms, participating in more hands-on workshops, to learn more about direct-marketing and crop and animal handling.

“The goal of the program is to help aspiring and beginning Latino farmers become viable producers and be connected to the resources necessary to be successful,” added Schulz. "We will be bringing in different agencies to talk about opportunities Beginning Latino farmers have. From crop insurance, to conservation programs and different low interest loans available, there is a lot of different opportunities out there."

For more information or to register, contact Lucia Schulz at lucias@cfra.org or (402) 750-5727.  Additional information can be found here: http://www.cfra.org/latino-beg-farmer-workshops.



Green Plains Reports Second Quarter 2016 Financial Results

Green Plains Inc. (NASDAQ:GPRE) today announced financial results for the second quarter of 2016. Net income attributable to the company was $8.2 million, or $0.21 per diluted share, for the second quarter of 2016 compared with net income of $7.8 million, or $0.19 per diluted share, for the same period in 2015. Revenues were $887.7 million for the second quarter of 2016 compared with $744.5 million for the same period last year.

"We are pleased with our performance in the second quarter of 2016, which resulted in a $50 million increase of operating income compared with the first quarter," said Todd Becker, president and chief executive officer. "Our agribusiness and marketing and distribution segments reported strong results and the partnership segment generated its best results since going public in June of 2015. During the second quarter of 2016, we produced record ethanol volumes and with the current ethanol margin environment, we expect stronger production levels in the last half of the year."

During the second quarter, Green Plains produced 274.3 million gallons of ethanol compared with 238.7 million gallons for the same period in 2015. The consolidated ethanol crush margin was $45.3 million, or $0.17 per gallon, for the second quarter of 2016 compared with $46.5 million, or $0.20 per gallon, for the same period in 2015. The consolidated ethanol crush margin is the ethanol production segment's operating income before depreciation and amortization, which includes corn oil production, plus intercompany storage, transportation and other fees, net of related expenses.

Revenues were $1.6 billion for the six-month period ended June 30, 2016, compared with $1.5 billion for the same period in 2015. Net loss for the six-month period ended June 30, 2016, was $(15.9) million, or $(0.42) per diluted share, compared with net income of $4.5 million, or $0.11 per diluted share, for the same period in 2015.

"Ethanol demand continues to grow, supported by a 3% growth in domestic ethanol consumption and a 6% increase in U.S. ethanol exports year-to-date," commented Becker. "We continue to execute on our core strategy of capital allocation with an intense focus on growing our company, including both organic and acquisitive opportunities."

Second Quarter Highlights
    During the second quarter of 2016, Green Plains repurchased 323,290 shares of common stock for approximately $6.0 million. To date, 514,990 shares of common stock have been repurchased for approximately $10.0 million under the company's $100 million share repurchase program.
    
    On June 14, 2016, Green Plains and Jefferson Gulf Coast Energy Partners, a subsidiary of Fortress Transportation and Infrastructure Investors LLC, announced the formation of a 50/50 joint venture to construct and operate an intermodal export and import fuels terminal at Jefferson's existing Beaumont, Texas terminal. The joint venture is expected to invest approximately $55 million in its Phase I development, focused initially on storage and throughput capabilities for multiple grades of ethanol. Green Plains will offer its interest in the joint venture to the partnership once commercial development is complete.
    
    On June 12, 2016, Green Plains entered into an asset purchase agreement with Abengoa Bioenergy of Illinois, LLC and Abengoa Bioenergy of Indiana, LLC to acquire two ethanol plants located in Madison, Ill. and Mount Vernon, Ind. for approximately $200 million in cash, plus certain inventory adjustments and liabilities. The two plants have combined annual production capacity of approximately 180 million gallons of ethanol. The sellers and other affiliates have pending cases under Chapter 11 of the U.S. Bankruptcy Code. The asset purchase agreement constitutes a stalking horse bid, which is subject to bidding procedures and receipt of higher or otherwise better bids at the proposed auction for the plants, and approval by the U.S. Bankruptcy Court. If Green Plains is not the successful bidder at the auction, the sellers must pay a break-up fee equal to $2.5 million per plant, plus reimbursement of expenses up to $500,000. Should Green Plains submit the winning bid, the company expects the transaction to close during the third quarter of 2016 and to offer the plants' transportation and storage assets to the partnership.

Results of Operations
Consolidated revenues increased $143.2 million for the three months ended June 30, 2016, compared with the same period in 2015. Revenues from ethanol, corn oil and grain sales increased $103.4 million, $21.4 million and $11.0 million, respectively. Ethanol revenues were affected by increased volumes sold, partially offset by lower average realized prices. Corn oil revenues and grain revenues were impacted by increased volumes sold.

Operating income increased $3.0 million for the three months ended June 30, 2016, compared with the same period last year primarily due to increased margins on merchant trading activity and cattle. Interest expense remained flat for the three months ended June 30, 2016, compared with the same period in 2015. Income tax expense was $5.5 million for the three months ended June 30, 2016, compared with $5.2 million for the same period in 2015.

Earnings before interest, income taxes, depreciation and amortization (EBITDA) for the second quarter of 2016 was $47.7 million compared with $39.7 million for the same period last year.



USDA Announces Reopening of Brazilian Market to U.S. Beef Exports

The U.S. Department of Agriculture (USDA) has reached agreement with Brazil's Ministry of Agriculture, Livestock and Food Supply to allow access for U.S. beef and beef products to the Brazilian market for the first time since 2003. Brazil's action reflects the United States' negligible risk classification for bovine spongiform encephalopathy (BSE) by the World Organization for Animal Health (OIE) and aligns Brazil's regulations to the OIE's scientific international animal health guidelines.

"After many years of diligently working to regain access to the Brazilian market, the United States welcomes the news that Brazil has removed all barriers to U.S. beef and beef product exports," said Agriculture Secretary Tom Vilsack. "We are pleased that Brazil, a major agricultural producing and trading country, has aligned with science-based international standards, and we encourage other nations to do the same. Since last year alone, USDA has eliminated BSE-related restrictions in 16 countries, regaining market access for U.S. beef and pumping hundreds-of-millions of dollars into the American economy.

"The Brazilian market offers excellent long-term potential for U.S. beef exporters. The United States looks forward to providing Brazil's 200-million-plus consumers, and growing middle class, with high-quality American beef and beef products," Vilsack said.

Both countries will immediately begin updating their administrative procedures in order to allow trade to resume. U.S. companies will need to complete Brazil's regular facilities registration process.

In a separate decision, USDA's Food Safety and Inspection Service (FSIS) also recently determined that Brazil's food safety system governing meat products remains equivalent to that of the United States and that fresh (chilled or frozen) beef can be safely imported from Brazil. Following a multi-year science based review consistent with U.S. food safety regulations for countries that export meat, poultry and egg products to the U.S., FSIS is amending the list of eligible countries and products authorized for export to the United States to allow fresh (chilled or frozen) beef from Brazil.

The Brazilian agreement is just the latest example of USDA's ongoing efforts to knock down barriers to U.S. exports. In 2016 alone, these efforts have led to the reopening of the Saudi Arabian and Peruvian markets for U.S. beef, the South Korean market for U.S. poultry, and the South African market for U.S. poultry, pork and beef. In 2015, U.S. beef exports reached $6.3 billion thanks to aggressive efforts by USDA to eliminate BSE-related restrictions in 16 countries since January 2015, gaining additional market access for U.S. beef in Colombia, Costa Rica, Egypt, Guatemala, Iraq, Lebanon, Macau, New Zealand, Peru, Philippines, Saint Lucia, Singapore, South Africa, Ukraine, Vietnam and, now, Brazil.



 Rabobank Releases Report on Protein Markets - Report explores outlook for U.S. Farmers

As U.S. protein producers are currently seeing record growth in demand, prices over the next couple years are predicted to fall. These findings are part of “Chickens, Cows, and Pigs… Oh My!  Implications of Record U.S. Protein Expansion,” a new report from the Rabobank Food & Agribusiness Research and Advisory group, that explores the impact of growth on the future of the market.

Production of protein in the U.S. is projected to grow at a rate of 2.5 percent annually. However, after a 5 percent jump in consumption within the domestic market, there are still many questions about demand at home.

“While we don’t foresee margins falling to the lows of 2008 and 2009 as prices decline through 2018, any producer considering a possible sale or divestiture should move quickly, as the outlook for margins and valuation multiples isn’t moving in their favor,” notes report author and Rabobank senior analyst Will Sawyer.

The report finds the next couple years will be significant for all protein markets due to the strengthening of the dollar. Specifically against currencies such as the Canadian dollar, Japanese yen, and Mexican peso.

“2015 saw the largest increase in U.S. per capita meat consumption in 40 years. We expect growth to taper in the coming years (2016 through 2018) and for it to be much more evenly weighted between the three proteins,” says Sawyer.

The report, “Chickens, Cows, and Pigs… Oh My!: Implications of Record U.S. Protein Expansion,” also mentions that consumers can expect lower meat prices in the near future, especially in terms of beef and pork.



USDA Announces Commodity Credit Corporation Lending Rates for August 2016

The U.S. Department of Agriculture's Commodity Credit Corporation (CCC) today announced interest rates for August 2016. The CCC borrowing rate-based charge for August is 0.500 percent, down from 0.625 percent in July.

The interest rate for crop year commodity loans less than one year disbursed during August is 1.500 percent, down from 1.625 percent in July.

Interest rates for Farm Storage Facility Loans approved for August are as follows, .750 percent with three-year loan terms, down from 1.000 percent in July; 1.125 percent with five-year loan terms, down from 1.250 percent in July; 1.375 percent with seven-year loan terms, down from 1.500 percent in July; 1.500 percent with 10-year loan terms, down from 1.750 percent in July and; 1.625 percent with 12-year loan terms, down from 1.875 percent in July.



CWT Assists with 3.7 Million Pounds of Cheese, Butter and Whole Milk Powder Export Sales

Cooperatives Working Together (CWT) has accepted seven requests for export assistance from Dairy Farmers of America, Maryland & Virginia Milk Producers Cooperative Association and Michigan Milk Producers Association, who have contracts to sell 174,165 pounds (79 metric tons) of Cheddar cheese, 3.417 million pounds (1550 metric tons) of butter and 88,185 pounds (40 metric tons) of whole milk powder to customers in Asia, Central America, the Middle East, North Africa and Oceania. The product has been contracted for delivery in the period from August through November 2016.

So far this year, CWT has assisted member cooperatives who have contracts to sell 30.091 million pounds of American-type cheeses, 10.366 million pounds of butter (82% milkfat) and 22.948 million pounds of whole milk powder to 21 countries on five continents. The sales are the equivalent of 678.497 million pounds of milk on a milkfat basis.

Assisting CWT members through the Export Assistance Program in the long term helps member cooperatives gain and maintain market share, thus expanding the demand for U.S. dairy products and the U.S. farm milk that produces them. This, in turn, positively affects all U.S. dairy farmers by strengthening and maintaining the value of dairy products that directly impact their milk price.



USDA Fats and Oils: Oilseed Crushings, Production, Consumption and Stocks

Soybeans crushed for crude oil was 4.62 million tons (154 million bushels) in June 2016, compared to 4.83 million tons (161 million bushels) in May 2016 and 4.55 million tons (152 million bushels) in June 2015. Crude oil produced was 1.79 billion pounds down 5 percent from May 2016 but up 5 percent from June 2015. Soybean once refined oil production at 1.37 billion pounds during June 2016 decreased 5 percent from May 2016 and decreased 6 percent from June 2015.

Canola seeds crushed for crude oil was 194 thousand tons in June 2016, compared to 132 thousand tons in May 2016 and 104 thousand tons in June 2015. Canola crude oil produced was 168 million pounds up 49 percent from May 2016 and up 89 percent from June 2015. Canola once refined oil production at 152 million pounds during June 2016 was up 11 percent from May 2016 and up 42 percent from June 2015. Cottonseeds crushed for crude oil was 114 thousand tons in June 2016, compared to 127 thousand tons in May 2016 and 126 thousand tons in June 2015. Cottonseed crude oil produced was 32.2 million pounds, down 16 percent from May 2016 and down 17 percent from June 2015. Cottonseed once refined oil production at 37.4 million pounds during June 2016 was down 15 percent from May 2016 and down 23 percent from June 2015.

Edible tallow production was 74.1 million pounds during June 2016, down 11 percent from May 2016 but up 15 percent from June 2015. Inedible tallow production was 291 million pounds during June 2016, down slightly from May 2016 but up 3 percent from June 2015. Technical tallow production was 97.7 million pounds during June 2016, down 13 percent from May 2016 but up 13 percent from June 2015. Choice white grease production at 116 million pounds during June 2016 decreased 1 percent from May 2016 and decreased 1 percent from June 2015.



USDA Grain Crushings and Co-Products Production

Total corn consumed for alcohol and other uses was 472 million bushels in June 2016. Total corn consumption was down 1 percent from May 2016 and down 4 percent from June 2015. June 2016 usage included 90.9 percent for alcohol and 9.1 percent for other purposes. Corn for beverage alcohol totaled 2.60 million bushels, down 9 percent from May 2016 but up 4 percent from June 2015. Corn for fuel alcohol, at 421 million bushels, was down 1 percent from May 2016 and down 5 percent from June 2015. Corn consumed in June 2016 for dry milling fuel production and wet milling fuel production was 89.4 percent and 10.6 percent respectively.

Dry mill co-product production of distillers dried grains with solubles (DDGS) was 1.89 million tons during June 2016, up 3 percent from May 2016 but down 3 percent from June 2015. Distillers wet grains (DWG) 65 percent or more moisture was 1.22 million tons in June 2016, down 1 percent from May 2016 and down 5 percent from June 2015.

Wet mill corn gluten feed production was 332 thousand tons during June 2016, down slightly from May 2016 but up 3 percent from June 2015. Wet corn gluten feed 40 to 60 percent moisture was 312 thousand tons in June 2016, up 2 percent from May 2016 and up 3 percent from June 2015.



USDA Flour Milling Products
All wheat ground for flour during the second quarter 2016 was 225 million bushels, up slightly from the first quarter 2016 grind of 224 million bushels but down 1 percent from the second quarter 2015 grind of 227 million bushels. Second quarter 2016 total flour production was 104 million hundredweight, up slightly from the first quarter 2016 but down 1 percent from the second quarter 2015. Whole wheat flour production at 5.17 million hundredweight during the second quarter 2016 accounted for 5 percent of the total flour production. Millfeed production from wheat in the second quarter 2016 was 1.62 million tons. The daily 24-hour milling capacity of wheat flour during the second quarter 2016 was 1.61 million hundredweight.

Durum wheat ground for flour and semolina production during the second quarter of 2016 totaled 15.6 million bushels, down 7 percent from the first quarter 2016 but up 3 percent from the second quarter 2015. Second quarter 2016 durum flour and semolina production was 7.43 million hundredweight, down 4 percent from the first quarter 2016 but up 5 percent from the second quarter 2015. Whole wheat durum flour and semolina production was 158 thousand hundredweight, down 24 percent from 209 thousand hundredweight in the first quarter 2016 and down 7 percent from 170 thousand hundredweight from the second quarter 2015. Second quarter durum wheat millfeed production was 107 thousand tons and the daily 24-hour milling capacity for durum and
semolina production was 127 thousand hundredweight.

Rye ground for flour during the second quarter of 2016 was 633 thousand bushels, up 16 percent from the first quarter 2016 and up 21 percent from the second quarter 2015. Rye flour production during the second quarter of 2016 was 306 thousand hundredweight, compared to 266 thousand hundredweight in the previous quarter and 250 thousand hundredweight in the same quarter for the previous year. The daily 24-hour milling capacity for rye milling was 9.38 thousand hundredweight for the second quarter 2016.



EPA Releases Minutes from Third FIFRA SAP Questioning Role of Epidemiological Studies

On July 20, the U.S. Environmental Protection Agency (EPA) released the minutes from a Federal Insecticide, Fungicide & Rodenticide Act (FIFRA) Scientific Advisory Panel (SAP) titled, “Chlorpyrifos: Analysis of Biomonitoring Data.” During an open public meeting held by the SAP on April 19-21, panel members listened to comments from a diverse audience regarding EPA’s proposed use of an epidemiological study produced by the Columbia Center for Children’ s Environmental Health (CCCEH) in human health risk assessments. The minutes, dated July 15, and the final transcript confirm that the SAP questioned the usefulness of the outcomes from this specific epidemiological study.

“We see yet again, in the minutes submitted to EPA by the SAP, that the panelists question EPA’s shift to the use of certain epidemiological study outcomes, rather than toxicological data, in human health risk assessments,” stated Jay Vroom, president and CEO of CropLife America (CLA). “In our written comments submitted to the SAP, we specifically asked panelists to examine the question, ‘Can these epidemiological studies be appropriately used for quantitative risk assessment purposes?’ The answer is loud and clear – a resounding no. The crop protection industry now calls on EPA to base regulatory decision-making on hard toxicological data, helping farmers get and keep access to highly advanced products and keeping our food production standards high.”

Highlights from the SAP minutes include:
-    The SAP agrees with EPA that applying additional safety factors to the existing point of departure to account for a potential new mode of action would be problematic due to the challenges in justifying any particular value for such an adjustment;
-    Some SAP members stated that the sample size may have limited the CCCEH study’s ability to examine the association of chlorpyrifos blood concentration on neurodevelopment in more vulnerable populations; and
-    With respect to fetal exposure, the Panel noted that much uncertainty in the use of cord blood as a measure would be removed if the raw data from CCCEH were provided for reanalysis.

“We applaud the report of the SAP as the majority of the panel did not agree with the Agency’s use of the results from a single longitudinal study to make a decision based on the use of cord blood measures of chlorpyrifos to initiate risk assessment,” noted Dr. Janet Collins, senior vice president of science and regulatory affairs at CLA. “These epidemiologic studies were not designed to demonstrate cause of any human health impact and the effects of exposure to a single compound.”

Collins added, “We further applaud the SAP in its determination the panel did not have confidence that the CCCEH analytical data could accurately be used in quantitative risk assessment as a point of departure, due to the many uncertainties that cannot be clarified, since the raw data are not available for verification or validation of the analytical data. CLA has maintained for years that epidemiological data have an important role for EPA in decision making, but that the CCCEH study and EPA’s various considered uses of it do not serve a human health purpose.”



Early Registration Discount for the 2016 Global Conference on Sustainable Beef ends on August 15

The Conference will be held October 4-7, 2016 at The Fairmont Hotel in Banff Springs, Alberta, Canada. The conference's focus is building on experience both regionally and globally. It brings together beef value chain stakeholders and others from across the globe who are committed to making beef production more sustainable. In addition to seminars and moderator-led discussion groups, recent industry research will be presented. Participants will also have the opportunity to see sustainability at work through special tours arranged by the Canadian Roundtable for Sustainable Beef.

The Conference will also feature several sessions created to be highly interactive and focused on work being done in various regions of the world in myriad areas of beef sustainability. In 2014, GRSB adopted a set of five core principles to define global sustainable beef including natural resources; people & the community; animal health & welfare; food; and efficiency & innovation. These principles will be at the center of discussions of future efforts to advance sustainable practices globally in the production, processing, and merchandising of beef.

Dr. David Hughes, Emeritus Professor of Food Marketing at Imperial College London, is the Keynote Speaker for the Conference. Dr. Hughes is a much sought-after speaker on a wide variety of global food industry topics, including retail and consumer trends. He also serves as a consultant to food and beverage companies worldwide to assist them in management training, strategy, and leadership level decision making.

Early Registration Discount ends on August 15. Register today at https://www.regonline.com/2016GlobalConference.

More information on the 2016 Global Conference on Sustainable Beef is available at http://www.grsbeef.org/events.



Appeals Board Allows Growers to Use Existing Stocks of Belt While Siding with EPA on Cancellation

The U.S. Environmental Protection Agency's Environmental Appeals Board (EAB) has upheld an earlier EPA decision to cancel registration for Bayer’s insecticide flubendiamide, marketed in the U.S. as Belt®, but is allowing sales of existing stocks to growers.

The EAB overruled EPA’s proposed existing stocks determination and will permit distributors and retailers to distribute and sell remaining flubendiamide inventories, and permit growers to continue using product consistent with label use directions.

While Bayer intends to comply with the order, it will fully review the EAB’s decision and evaluate its options going forward.

Today’s ruling follows an earlier appeal to the EPA’s Administrative Law Judge, who ruled in favor of the Agency after excluding any documentary evidence and testimony regarding the scientific issues raised by EPA’s actions on flubendiamide.
 
From Dana Sargent, Bayer’s Vice President of Regulatory Affairs:
“Bayer maintains the EPA’s actions on flubendiamide are unlawful and inconsistent with sound regulatory risk assessment practices.  The science supporting the registration of flubendiamide may be complex, but it is solid, and it’s unfortunate that we were denied the opportunity to argue the scientific merits of our case. You cannot use the regulatory process as a shield to avoid engaging in meaningful dialogue, but that is exactly what the EPA has done.”

“Since we first learned of the EPA’s actions on flubendiamide a few months ago, we have tried our best to argue on behalf of our industry and the many growers who depend on these products for sustainable pest control. In the end it is they who will be most impacted by this decision.”

“The ruling was narrowly focused on process issues around the registration. It is notable that it did not weigh in on the lawfulness of EPA’s cancellation nor did it consider the fundamental science underpinning Bayer’s argument.”

“I want to express Bayer’s deep appreciation to everyone who supported us during this process, with a special thank you to Crop Life America, Agriculture Retailers Association, American Soybean Association, and all the groups that signed amici in support of a sound science regulatory process.”

Growers, retailers and distributors with questions about this issue, should contact their local Bayer Field Sales Representative, or call 1-866-99-BAYER (1-866-992-2937).