Monday August 8 Ag News + Crop Progress

NEBRASKA CROP PROGRESS AND CONDITION

For the week ending August 7, 2016, temperatures averaged near normal as cooler conditions arrived the last half of the week, according to the USDA’s National Agricultural Statistics Service. Precipitation of an inch or more was limited to portions of the southeast and some central areas. In the west, Panhandle producers were preparing for winter wheat planting. Irrigation was active in many counties. There were 5.9 days suitable for fieldwork. Topsoil moisture supplies rated 7 percent very short, 29 short, 63 adequate, and 1 surplus. Subsoil moisture supplies rated 5 percent very short, 26 short, 68 adequate, and 1 surplus.

Field Crops Report:
Corn condition rated 1 percent very poor, 4 poor, 19 fair, 59 good, and 17 excellent. Corn dough was 47 percent, ahead of 37 last year, and near the five-year average of 45. Dented was 9 percent, ahead of 4 last year, and equal to average.

Sorghum condition rated 0 percent very poor, 0 poor, 14 fair, 70 good, and 16 excellent. Sorghum headed was 73 percent, near 75 last year, but ahead of 62 average. Coloring was 5 percent, near 4 last year, and equal to average.

Soybeans condition rated 1 percent very poor, 3 poor, 19 fair, 62 good, and 15 excellent. Soybeans blooming was 94 percent, near 93 both last year and average. Setting pods was 65 percent, near 63 both last year and average.

Oats harvested was 85 percent, near 81 last year, but behind 90 average.

Alfalfa condition rated 4 percent very poor, 3 poor, 16 fair, 64 good, and 13 excellent. Alfalfa third cutting was 59 percent, well ahead of 38 last year, and ahead of 45 average. Fourth cutting was 4 percent, near 3 last year.

Livestock, Pasture and Range Report:
Pasture and range conditions rated 2 percent very poor, 4 poor, 22 fair, 61 good, and 11 excellent. Stock water supplies rated 1 percent very short, 9 short, 88 adequate, and 2 surplus.



IOWA CROP PROGRESS & CONDITION REPORT

 Frequent but scattered precipitation throughout the week allowed Iowa farmers 5.1 days suitable for fieldwork for the week ending August 7, 2016, according to the USDA, National Agricultural Statistics Service. Activities for the week included cutting hay and fungicide and insecticide applications.

Topsoil moisture levels rated 1 percent very short, 11 percent short, 83 percent adequate and 5 percent surplus. Subsoil moisture levels rated 2 percent very short, 10 percent short, 83 percent adequate and 5 percent surplus. South central and southeast Iowa reported the lowest levels of subsoil moisture with over one-quarter short to very short.

Ninety-eight percent of the corn crop reached the silking stage, 11 days ahead of normal. Sixty-one percent reached the dough stage, 5 days ahead of last year and 9 days ahead of the 5-year average. Seven percent of Iowa’s corn crop reached the dent stage. Corn condition rated 83 percent good to excellent.

Soybeans blooming reached 94 percent, 6 days ahead of the previous year. Seventy-nine percent of soybeans were setting pods, one week ahead of normal. Soybean condition rated 82 percent good to excellent. Ninety percent of the oat crop for grain or seed has been harvested.

The second cutting of alfalfa hay reached 97 percent, more than 2 weeks ahead of last year and 9 days ahead of normal. The third cutting of alfalfa hay was 42 percent complete, 6 days ahead of average. Hay condition rated 73 percent good to excellent, while pasture condition rated 62 percent good to excellent. Frequent rains have been good for pastures, but made it difficult to cut and bale hay. Livestock were reported to be in good condition with very little stress.



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

Very warm and humid weather prevailed from Monday (1st) through Thursday (4th). The hottest weather was on Thursday when actual temperatures peaked at 96 degrees at Lamoni while the heat index reached 111 degrees at Newton, Perry and Shenandoah. Drier and cooler weather finished out the week with Sheldon and Spencer recording Saturday (6th) morning lows of 50 degrees. Temperatures for the week as a whole averaged 0.7 degrees above normal although much of far southern Iowa averaged a little cooler than usual thanks to heavier rainfall in that area. Showers and thunderstorms were widespread over about the southwest one-half of Iowa on both Monday (1st) morning and Tuesday (2nd) morning. Heavy rains of two to four inches were common from Carroll County to Ringgold County on Monday with one to three inch amounts common from near Knoxville south to Centerville and Bloomfield on Tuesday. The most widespread rains of the week came on Thursday (4th) and Thursday night with rain falling over most of the southeast three-fourths of the state. High winds accompanied the Thursday storms over parts of central and northeastern Iowa. Weekly rain totals varied from only sprinkles at Swea City and Estherville to 4.83 inches at Mount Ayr and 4.68 inches at Creston. The statewide average precipitation was 1.25 inches while normal for the week is 0.96 inches.




USDA Weekly Crop Progress

Corn condition fell as 9% of the nation's crop moved into the dent stage, while soybean conditions held steady during the week ended Aug. 7, according to USDA's latest Crop Progress report released Monday.

The nation's corn crop is 97% silked, 53% in the dough stage, and 95% dented, compared to 91%, 30% and not available last week, 94%, 44% and 8% last year and averages of 94%, 42% and 12%. Corn condition fell from 76% good to excellent to 74%.

Soybeans are 91% blooming and 69% setting pods, compared to 85% and 54% last week, 86% and 65% last year and five-year averages of 88% and 61%. Seventy-two percent of the nation's beans are rated good to excellent, equal to last week.

Winter wheat was 94% harvested as of Sunday, compared to 89% last week, 96% last year and a 91% average.

Spring wheat harvest is 30% complete, compared to 10% last week, 22% last year and 18% on average. Spring wheat condition was rated as 68% good to excellent, even with last week.

Cotton squaring was at 96%, compared to 92% last week, 95% last year and a 96% average. Setting bolls was reported at 70%, compared to 54% last week, 65% last year and a 72% average. Nine percent of cotton bolls were opening, compared to 6% last year and a 7% average. Cotton condition worsened to 48% good to excellent, compared to 50% last week.

Rice was 86% headed, compared to 71% last week, 76% last year and a 68% average. Nine percent of the rice crop was harvested, compared to 7% last year and a 5% average. Rice condition held steady at 66% good to excellent.

Sorghum was 74% headed, compared to 61% last week, 68% last year and 61% on average. Coloring was reported at 31%, compared to 26% last week, 31% last year and a 33% average. Sorghum condition fell slightly to 65% good to excellent compared to 66% last week.

Oats were 68% harvested as of Sunday, compared to 53% last week, 57% last year and a 57% average.

Barley harvest was reported at 32% complete, compared to 11% last week, 35% last year and a 19% average. Barley condition was equal to last week at 72% good to excellent.



Frogeye Leaf Spot Starting to Show Up in Soybean
Loren Giesler - Extension Plant Pathologist

Over the past week some initial reports of frogeye leaf spot of soybean started coming in.  Frogeye leaf spot is a fungal disease caused by Cercospora sojina. It is not common across the state but is becoming more widespread.

Nationally, yield loss due to frogeye leaf spot with extensive leaf blighting has been estimated as high as 30%; however, in Nebraska I would estimate potential loss in highly susceptible varieties at less than 20%. The disease is most severe when soybean is grown continuously in the same field, particularly in fields where tillage is reduced, since this is a residue-borne disease.

The primary sources for this disease are infested residue, infected seed, and airborne spores.  In areas where this disease was observed in past years it will typically show up again if weather conditions are favorable.

What to Look For
Infection can occur at any stage of soybean development, but most often occurs after flowering and in the upper canopy.  Initial symptoms are small, dark spots on the leaves. Spots eventually enlarge to a diameter of about ¼ inch. Lesion centers will turn gray to brown and have a reddish purple margin. Individual leaf spots can coalesce to create irregular patterns of blighting on the leaf.

Management of Frogeye Leaf Spot
Resistance.  Soybean varieties vary in their resistance to frogeye leaf spot. Several genes are commonly used for resistance. You will want to know the susceptibility of your variety if you’re trying to decide whether a fungicide is warranted.

Cultural Practices. Frogeye leaf spot is more severe in continuously cropped soybean fields. Reduced tillage systems will tend to have more as the pathogen overwinters in residue.

Fungicide Application. In Nebraska a fungicide application typically is not warranted to manage frogeye leaf spot. Fields with a history of frogeye should be watched carefully and if disease develops, application of a strobilurin fungicide at the R3 (pod set) to early R4 growth stage is considered to be most effective.

In 2010 resistance of this pathogen to strobilurin fungicide was reported for the first time in Tennessee. Since then there has been significant spread of the resistance in the Mississippi valley, but none has been observed in Nebraska. If an application is made and control is not as expected, it is possible that resistance has spread; however, most likely, it will not be an issue for us in Nebraska for several years.  In addition, most fungicide products on the market today are combinations with different modes of action with activity against this fungus.



 Aug. 20 Farm Tour to Look at Cover Crops, Flaming, and Crimping August 1, 2016

A Butler County farm tour will look at two operations where growers have integrated cover crops and used flaming or crimper tecnology to manage weeds. The tour will be Saturday, August 20 from 1:30 p.m. to 5:30 p.m. and followed by a meal.

"This is a great opportunity for farmers to share information and ask questions about cover crops, reduced tillage, and weed management using a roller crimper or flamer," said Rich Little, tour organizer and research technologist in UNL's Department of Agronomy and Horticulture.

The tour starts at 1:30 p.m. at Larry Stanislav's farm two miles north of Abie. Stanislav practices reduced tillage and uses a flamer to manage weeds in soybean. He will discuss how he has incorporated cover crops into his crop rotation, saving money on nitrogen and reducing soil erosion. Participants will view crimping research using UNL experimental lines of early-maturing triticale as mulch for weed suppression and evaluate the cash crop of drilled soybean. Stanislav is a cooperator in a Ceres Trust grant that provided partial funding to develop a twin-roller, adjustable-angle roller crimper, which will be on display at the field day.

At 3:30 pm participants will tour Randy Fendrich's farm three miles southeast of the Stanislav farm. Fendrich has demonstration plots of organic corn and soybean varieties that he is evaluating for yield. He will discuss his cultural practices and crop rotation, his use of a 12-row flamer/cultivator, and his program to build soil health. He also will discuss his succession plan for bringing his daughter into the farming operation.

At 5 pm Randy Anderson, research agronomist in the USDA North Central Agricultural Research Laboratory, will discuss
-    canopy architecture of cover crops for planning mixtures,
-    berseem clover establishment, and
-    improved crop tolerance to weed interference.

At 6 p.m. a free meal will be served. Call Dee at 402-584-3837 by Aug. 12 to reserve your meal.

The UNL event is sponsored by OCIA, the Organic Crop Improvement Association.  For more information about the farm tour contact Little at 402-805-7482 or email rlittle2@unl.edu.



PLANNING NEXT YEAR'S GRAZING TODAY
Bruce Anderson, NE Extension Forage Specialist

               Do you have extra grass this year?  If so, there are ways you can improve next year's grazing by managing this year's grass.

               Extra grass is not normal.  If you are lucky enough to have more grass than needed this year, don’t forget that next year could be hotter and drier than this year – producing less grass.

               But you can boost carrying capacity and gains on next year's pasture by strategically managing your extra grass this year.

               Start by identifying pasture improvements that could help future grazing.  Control weeds, accumulate enough growth on warm-season grass pastures to conduct an effective prescribed burn next spring, or select pastures where stressing the existing stand will help you establish legumes next spring.  All these practices can temporarily reduce pasture growth, but they can provide long-term benefits.  Thus, it is better to do them when you have extra grass rather than when grass is short.

               Another way to help next year's growth is to avoid overgrazing this fall unless you are doing it intentionally to prepare for interseeding next spring.  Heavy fall grazing weakens plants as they go into winter and causes them to grow less vigorously after spring green-up.  If you do graze heavy this fall, though, do it on pastures that will be used last next spring.  This will give them extra time to recover.

               A particularly valuable way to manage extra grass is to begin to stockpile some growth now for either grazing this winter or to start grazing extra early next spring.  This could save on winter hay needs or give you an area to get animals away from mud next spring.  Plus, it's usually good for your grass, too.

               Take advantage of extra grass to begin long-term pasture improvements.  It happens so rarely that next year might be too late.



RURAL POLL SHOWS NEBRASKANS’ OPTIMISM

    Rural Nebraskans continue to be optimistic about their current situation and future, according to the 2016 Nebraska Rural Poll.

     Fifty-two percent of respondents said they are better off this year than five years ago, holding steady from 53 percent last year, the highest proportion in all 21 years of the study, also occurring in 2008. Only 16 percent said they were worse off.

     The University of Nebraska-Lincoln Department of Agricultural Economics conducts the poll in cooperation with the Rural Futures Institute at the University of Nebraska, with funding from Nebraska Extension and the Agricultural Research Division in the Institute of Agriculture and Natural Resources.

     This optimism was also reflected in their outlook on the future, with 46 percent believing they will be better off in 10 years. The results were similar to last year's 48 percent. The percentage of those who thought they will be worse off increased slightly, from 17 percent in 2015 to 20 percent this year.

     Respondents' assessment of their current situation reflects a general pattern of growing optimism over the 21 years of poll results, with bigger declines occurring in 2003, 2006, 2009 and 2013. When looking to the future, there has also been a general trend of increasing optimism over the past 21 years, with two bigger declines in 2003 and 2013. This poll was conducted in the spring.

     “There can be quite bit of annual variation in these confidence measures resulting from timing with regard to large events and statistical error. However, the trend over the poll’s entire 21 years has been for that confidence to slowly increase,” said Randy Cantrell, rural sociologist with the Nebraska Rural Futures Institute. “If one considers the array of the things that affect an individual’s day-to-day life, many if not most have in fact improved. If nothing else, technology has made a lot of things easier and created a new set of possibilities for individuals to learn, to participate with others in pursuing their interests, to engage in commerce, and in general to see more opportunities for themselves and their surroundings.”

     Brad Lubben, assistant professor of agricultural economics, said he was surprised by the continued optimism from those employed in agriculture.

     “I would have expected the ag sector to be less optimistic. They may still be better than five years ago from accumulated wealth, but the outlook for the next 10 years is surprisingly strong,” Lubben said. “Maybe they are looking past the short-run difficulties at the long-run opportunities for growth.”

     In addition, most rural Nebraskans disagreed that people are powerless to control their own lives (55 percent). The proportion remained the same as last year.

     Differences in satisfaction with respondents’ financial security during retirement were found by community size. Over one-half of persons living in or near the smallest communities (55 percent) report being dissatisfied with their financial security during retirement. In comparison, only 39 percent of persons living in or near communities with populations ranging from 5,000 to 9,999 are dissatisfied with this item.

     Other results:
     * Rural Nebraskans continued to be most satisfied with their marriage, family, friends, the outdoors, their safety and their general quality of life. They continue to be less satisfied with job opportunities, current income level, their ability to build assets and wealth and financial security during retirement.

     * Certain groups remained pessimistic about their current and future situation. Those with lower household incomes, older respondents and those with lower educational levels were most likely to be pessimistic about the present and the future.

     * Rural Nebraskans with lower education levels were more likely than persons with more education to believe that people are powerless to control their own lives. Thirty-six percent of respondents with a high school diploma or less education agreed that people are powerless to control their own lives. However, only 19 percent of those with at least a four-year college degree shared this opinion.

    The Rural Poll is the largest annual poll of rural Nebraskans’ perceptions on quality of life and policy issues. The poll has a collection of data about rural trends and perceptions that is unmatched in the country, said Becky Vogt, survey research manager who has worked on the Rural Poll since its second year. This year’s response rate was 29 percent and the margin of error was plus or minus 2 percent.

    The 21st annual poll was sent to 6,115 households in 86 Nebraska counties in April. Results are based on 1,746 responses. Complete results are available at http://ruralpoll.unl.edu.

    Although the Grand Island area -- Hall, Hamilton, Howard and Merrick counties -- was designated a metropolitan area by the U.S. Census Bureau in 2013, the Rural Poll continues to include those counties in its sample. Also, Dixon and Dakota counties were added to the poll in 2014.



Northey and India Ag Minister to Sign Memorandum of Cooperation

Iowa Secretary of Agriculture Bill Northey and Om Prakash Dhankar, Cabinet Minister of Agriculture, Animal Husbandry & Dairying, Fisheries, Irrigation and Development for the state of Haryana, India, have signed a Memorandum of Cooperation during a meeting in the Iowa Capitol yesterday.

Dhankar and a delegation from Haryana are visiting Iowa to learn about our state's agriculture production. In addition to the event at the capitol, the delegation will also visit Iowa State University, tour an Iowa farm and meet with representatives of Iowa agriculture groups.

Northey visited India twice in 2013, including participating in a trade mission lead by Gov. Terry Branstad in September of that year. This visit by a delegation from Haryana is a step by the two state's Departments of Agriculture to work more closely together to promote collaborations and partnerships in agriculture.

Haryana is located in the northwestern part of India and approximately 84 percent of the state's land is under cultivation. As a result, agriculture is the principal occupation with about 65 percent of the population engaged in agriculture and its allied sectors.

The Green Revolution of 1960's that made India self-sufficient in food grain production was first established in Haryana and the neighboring Punjab and West Uttar Pradesh, together considered as the 'Grain Basket' of India. Haryana is now a leading contributor to the country's production of food grains and milk and have the major share in exports of long grain Basmati rice from India.



Scoular Names Paul Maass Chief Executive Officer

The Scoular Company announced today that its Board of Directors has appointed Paul Maass as Chief Executive Officer, effective August 22, 2016.  Maass will office in the company's Omaha, Nebraska headquarters and be responsible for worldwide strategic leadership.

Maass most recently served as President of ConAgra Foods' Commercial Foods and Private Brands segments as well as Chairman of the Ardent Mills joint venture.  In that role, he led businesses with total annual revenue of $13 billion and more than 15,000 employees and 90 manufacturing facilities in seven countries.

He began his 27-year career with ConAgra as a commodity merchandiser after graduating from Iowa State University with a degree in agricultural business.  Throughout his career, he served in various leadership positions, including Director, ConAgra Trade Group (now Gavilon, LLC); President, ConAgra Mills; President, Lamb Weston; and President, Commercial Foods division.

"Following a six-month search, we are pleased to have found a seasoned, accomplished agribusiness executive like Paul," said David Faith, Chairman of the Board for The Scoular Company. "His diverse background and solid experience are an excellent fit for Scoular, from commodity merchandising and logistics to commercial food ingredient processing, sales and P&L management.  Further, his proven experience in successful corporate strategy will be a great asset to Scoular as we continue to pursue growth opportunities, domestically and internationally."

"I am thrilled with the opportunity to join the team and lead Scoular. I've known Scoular my entire career and have always admired the great people and the integrity of the company," said Maass.  "I am excited about the future as we work together to leverage our unique potential and create value."



U.S. Pork, Beef Exports Solid in June; First-half Volumes Ahead of Last Year

U.S. red meat exports ended the first half of 2016 on a positive note, as June export values for both pork and beef were the highest of the year. June also marked the second consecutive month of solid year-over-year volume growth, according to statistics released by USDA and compiled by the U.S. Meat Export Federation (USMEF).

Pork exports reached 187,939 metric tons (mt) in June, up 8 percent from a year ago, while export value increased 11 percent to $505.4 million. For the first half of the year, pork export volume was up 2 percent to 1.1 million mt, but value was down 4 percent to $2.77 billion.

Exports accounted for 26 percent of total pork production in June and 22 percent for muscle cuts only – each up one percentage point from a year ago. For January through June, these ratios were 25 percent and 21 percent, respectively, up slightly from last year. Export value per head slaughtered was $52.83 in June – up 10 percent from a year ago. First-half per-head value was $48.34, down 5 percent.

June beef export volume increased 2 percent from a year ago to 98,920 mt, while export value was $545.4 million, down 5 percent. First-half export volume was up 3 percent to 541,547 mt, while value fell 10 percent to $2.91 billion.

Exports accounted for 13 percent of total beef production in June and 10 percent for muscle cuts only – each down about 1 percentage point from a year ago. For January through June, these ratios were also 13 percent and 10 percent, respectively, steady with last year. Export value per head of fed slaughter was $250 in June and $249.67 for the first half – each down 14 percent from a year ago.

Pork exports strong to China/Hong Kong, Canada, Central America
June pork exports to China/Hong Kong remained well ahead of last year’s pace, increasing 84 percent in volume (50,374 mt) and 73 percent in value ($98.8 million). But June volume was the lowest since February, reflecting some cooling of the market. Exports to China/Hong Kong finished the first half 80 percent higher than a year ago in volume (284,900 mt) and 63 percent higher in value ($540.5 million).

“New opportunities for U.S. pork were developed in China/Hong Kong over the past year, and the inroads we made with importers and other key buyers in the region will pay long-term dividends,” said USMEF President and CEO Philip Seng. “But it is important to recognize the shift in market conditions in China, which means growth in other key markets is essential to achieving a successful second half in 2016.”

Leading pork value market Japan showed renewed momentum in June, with exports up 1 percent from a year ago in volume (32,879 mt) and 6 percent higher in value ($138.1 million). First-half exports to Japan were still down 13 percent in volume (192,862 mt) and 10 percent in value ($749.6 million), as record volumes of chilled U.S. pork entering Japan (109,665 mt, up 19 percent, valued at $485 million, up 14 percent) were offset by lower imports of frozen product.

After a strong May performance, pork exports to Mexico took a step back in June, falling 13 percent from a year ago in volume (54,335 mt) and 5 percent in value ($105.4 million). First-half export volume to Mexico was 324,745 mt, down 8 percent from a year ago, while value fell 9 percent to $566 million. A spike in ham prices, compounded by the weak peso, significantly impacted June export results. But with ham prices moderating by mid-July, USMEF anticipates a rebound in demand.

June results were better north of the border, as pork exports to Canada totaled 16,731 mt – up 11 percent from a year ago and the largest of 2016 – while export value increased 13 percent to $69.5 million. This pushed first-half exports to Canada slightly ahead of last year’s pace at 96,582 mt, while value was steady at $381.6 million.

Led by mainstay markets Honduras and Guatemala, U.S. pork posted a very strong first half in Central America as exports climbed 16 percent from a year ago in volume (31,274 mt) and 7 percent in value ($72.5 million). In addition to Honduras and Guatemala, exports also increased year-over-year to Nicaragua, Costa Rica, El Salvador and Belize.

June was also a very strong month for U.S. pork in the Philippines, a highly competitive market that purchases large volumes of raw material for further processing. June exports to the Philippines increased 54 percent from a year ago in volume (3,454 mt) and more than doubled in value ($10.3 million, up 126 percent). First-half exports totaled 15,995 mt (up 6 percent) valued at $37 million (up 23 percent).

U.S. beef reclaims market share in Japan; June ASEAN volume doubles
June beef exports to Japan were the largest in nearly two years at 25,836 mt, up 29 percent from a year ago. First-half exports climbed 12 percent in volume (122,316 mt) and 5 percent in value ($707.2 million). Showing strong demand for high-quality cuts, Japan’s first-half imports of chilled U.S. beef surged 51 percent from a year ago to 50,795 mt. These shipments were valued at $369 million, up 32 percent. Japan’s first-half import data also show a strong rebound in market share for U.S. beef at 38.5 percent – up from 33 percent in 2015 and about one percentage point higher than in 2014. Australia’s market share, which was nearly 57 percent in the first half of last year, fell to 52 percent.

“U.S. beef faces a significant tariff rate disadvantage in Japan, and this gap will grow larger unless and until the Trans-Pacific Partnership is ratified,” Seng said. “But rather than dwell on the challenges we face in this market, the U.S. industry needs to capitalize on its opportunities. And USMEF is doing so by educating retail and foodservice buyers about the wide range of U.S. beef cuts that appeal to their customers. We’re pushing well beyond the forequarter cuts traditionally marketed in Japan, and consumers are responding in a very positive way.”

Beef exports to Mexico remained strong in June, increasing 14 percent from a year ago to 20,021 mt, though value was down 13 percent to $76.2 million. First-half exports to Mexico were up 3 percent in volume to 111,834 mt, valued at $475.4 million (down 11 percent).

U.S. beef continues to gain market share in South Korea, with June export volume up 2 percent from a year ago at 12,880 mt. For January through June, exports to Korea were up 21 percent from a year ago in volume (73,942 mt), while value was 3 percent higher at $436.4 million. Chilled beef to Korea totaled 10,288 mt (up 45 percent) valued at $89 million (up 33 percent) as U.S. beef rapidly expands its retail presence.

Fueled by strong growth in the Philippines, Indonesia and Vietnam, June exports to the ASEAN region reached 2,582 mt, up 113 percent from a year ago, while export value climbed 57 percent to $12.6 million. First-half exports totaled 11,091 mt (up 7 percent) valued at $61.6 million (down 14 percent).

Lamb exports slump due to low variety meat volume
June lamb exports were the lowest of 2016 at 457 mt, down 58 percent from a year ago, though this was due in large part to a sharp decline in variety meat exports to Mexico. June export value fell 39 percent to $1.1 million. For the first half of 2016, lamb exports were down 9 percent from a year ago in volume (4,330 mt) and fell 13 percent in value ($8.7 million). Exports to Bermuda continued to perform well in June.



Advocates Celebrate 11th Anniversary of America's Most Successful Biofuels Program

Eleven years ago this Monday, August 8, the Renewable Fuel Standard (RFS) was signed into law, ushering in a new era of rising energy security, cleaner air, and more affordable options at the pump. After more than a decade, the program continues to drive U.S. job creation and startling new innovations in renewable energy, a fact celebrated today by the nation's leading biofuel advocates.
 
"Our government challenged the biofuels industry to produce the world's cleanest, most affordable and sustainable fuel for cars and trucks. We delivered - and America continues to benefit," said Adam Monroe, President, Americas, Novozymes North America Inc. "The RFS is a proven winner: it grows communities with hundreds of thousands of good-paying jobs; saves American drivers money and keeps billions of their dollars in the US versus going to the Middle East; and fights climate change by preventing millions of tons of carbon emissions from getting into our air. Let's not roll back a winner; let's let it work to its full potential. We urge the administration to maximize renewable fuel production."
 
"This is a good opportunity to remind the Environmental Protection Agency (EPA) that the RFS is designed to get stronger over time, delivering a greater share of renewable energy into our fuel mix," said Emily Skor, CEO of Growth Energy. "The agency has proposed cutting RFS targets for 2017, which would needlessly undermine eleven years of progress toward a cleaner environment and a healthier, more secure America. Ethanol producers, retailers and the current auto fleet are 100 percent capable of providing consumers with a true choice at the pump, and now is certainly not the time to roll back the clock. EPA must get the program back on track and deliver on the promise of new, more affordable options for consumers."

"Passage of the 2005 Energy Policy Act could not have been possible were it not for the cooperation between the ethanol, agriculture and oil sectors," said Bob Dinneen, president and CEO of the Renewable Fuels Association. "The oil industry needed an off ramp from the use of MTBE, which was polluting groundwater across the country, and the ethanol industry needed a growth path if farmers were ever to realize the promise of value-added markets. Every stakeholder cheered the passage of this groundbreaking legislation, and it was an immediate success. MTBE disappeared as a gasoline additive, investments in U.S. biofuel production soared, farmers saw increased demand for their commodities allowing Congress to dramatically cut farm program costs, consumers saw pump prices fall as ethanol displaced more expensive oil, and carbon emissions from the transportation sector fell precipitously. All of those benefits continue to this day."
 
"The RFS guarantees America's leadership in the global transition to ethanol, which has cut world-wide carbon emissions 589 million metric tons over the past decade, the equivalent of taking more than 124 million cars off of the road," said Chip Bowling, president of the National Corn Growers Association. "And thanks to innovation in U.S. agriculture, we are growing more crops on less land than we cultivated when the RFS was first enacted."

"Simply put, the RFS is delivering on its promise," said Brooke Coleman, executive director of the Advanced Biofuels Business Council. "Almost every gallon of gasoline in the country now contains renewable fuel. Consumers are gaining access to new biofuel blends that reduce pump prices, increase octane, deliver better performance, and replace cancer-causing gasoline additives like benzene. With cellulosic biofuels -- the lowest carbon motor fuel in the world -- now coming online, the RFS is driving innovation like we have never seen before in the transportation fuel sector."

On August 8, 2005, the bipartisan RFS was signed into law by President George W. Bush as part of the Energy Policy Act of 2005 (EPAct). The legislation was passed by the House by a vote of 275 to 156 and the Senate by a vote of 74 to 26. Expanded in 2007, it requires refiners to blend increasing amounts of biofuels into new options for consumers at the pump. It has since sparked billions of dollars in U.S. investments and driven America's emergence as a world leader in renewable technology.



 Growth Energy Applauds California Delegation Letter to EPA

Today, representatives from the California delegation sent a letter to Environmental Protection Agency (EPA) Administrator Gina McCarthy, urging the EPA to finalize blending targets under the Renewable Fuel Standard (RFS) to the statutory limits as originally called for by Congress. The letter highlights the importance of this program, and points out the EPA’s flawed methodology that would absolve the obligated party’s requirements to continue to provide higher biofuel blends. Emily Skor, Growth Energy CEO, issued the following statement:

“The letter explicitly urges EPA to put the RFS program back on track by finalizing blending targets that are in line with Congress’ original intent. The RFS program has been a resounding success. EPA’s methodology, as it currently stands will let the obligated parties off the hook, decreasing the commercial availability of higher blends, such as E15. By returning to the statutory levels, the administration would will send a signal to the renewable fuels industry that they are committed to achieving the goals of carbon reduction, a free and fair fuel marketplace where consumers have a choice, and reaffirm their commitment to reduce our dangerous dependence on foreign oil.

“We commend these members of Congress for supporting renewable fuels by acknowledging the industry’s tremendous innovation, investment and contributions. The biofuels industry and the RFS are advancing consumer choice, job creation and environmental improvement by reducing greenhouse gas emissions and removing other toxic alternatives, which have been proven to cause cancer, smog and groundwater contamination. Getting the RFS back on track is critical if we wish to continue to build on the progress already achieved.

“The RFS is our nation’s most successful energy policy, and the biofuels industry is an American success story. We thank this group of representatives for their commitment to fostering growth in the American biofuels industry, and stand with them in support.”



Which is Bigger: Brazil-US Beef Trade Announcement or US Jobs Report?
Glynn T. Tonsor, Professor
Department of Agricultural Economics, Kansas State University

This past week included several reports, announcements, and market updates of central interest to US cattle producers.  The CME announcement of changes to their Live Cattle contracts warrants a separate discussion and will not be covered here.  Similarly, ongoing declines in expected upcoming corn prices are supportive to cattle markets but will not be outlined in this article.  Rather this week's article is a synthesis comparison of changes in US-Brazil beef trade and employment in the US.

Last Monday an updated agreement to bilateral beef trade between Brazil and the US was announced.  Going forward the trade deal terms may well change, exchange rates are bound to move over time, underlying supply and demand fundamentals are certain to adjust, and a wealth of additional research and discussion is sure to focus on updating and expanding understanding of animal health risks involved.  What is easier to speak to is the shorter-term likely economic impacts.

While the US has been accepting beef from Brazil it has largely been confined to cooked or processed product, rather than fresh or frozen, due to past concerns regarding FMD (Foot and Mouth Disease) risks.  The updated agreement will extend Brazil's access by allowing fresh or frozen beef to be imported as part of the Other countries tariff rate quota (TRQ) currently available.  What is most important from an aggregate economic impact perspective is that this Other countries TRQ currently amounts to about 15% of what is available to Australia.  Coupling this with the observation of FSIS (Food Safety and Inspection Service) having yet to approve any Brazilian plants suggests the net economic impact under the current TRQ and broader economic situation will likely be rather minimal.

The flip side of the US-Brazil beef trade announcement is Brazil allowing imports of US beef for the first time since the BSE event of 2003.  While any enhancement in ability to export beef is a positive for the US industry, on balance this likely will also have a small impact in the short term.

A report released later last week is arguably more important to the near term cattle market situation.  The US jobs report indicates that 255,000 jobs were added in July which is a full 75,000 jobs above pre-report expectations.  Coupled with an increase in base wages this is certainly a positive update for meat demand.  Increases in employment and wages is beneficial to meat demand given protein is one of the more expensive food items.  Going further, given the heavy reliance on domestic consumption this report is particularly good for the beef industry and increases the viability of ongoing production expansion while at least partially mitigating downward pressure on retail beef (and hence cattle) prices.

I'll end by emphasizing it is important to appreciate the relative impact of US employment changes and the Brazil-US beef trade announcement.  The increase in employment and wages is certainlysupportive of beef and cattle prices while the Brazil-US beef trade announcement seems likely to have a much lower net economic impact in the near term. 



 CWT Assists with 1.2 Million Pounds of Cheese and Whole Milk Powder Export Sales

Cooperatives Working Together (CWT) has accepted four requests for export assistance from Dairy Farmers of America, Northwest Dairy Association (Darigold) and Michigan Milk Producers Association, who have contracts to sell 608,476 pounds (276 metric tons) of Cheddar cheese and 573,202 pounds (260 metric tons) of whole milk powder to customers in Asia and South America. The product has been contracted for delivery in the period from August through October 2016.

So far this year, CWT has assisted member cooperatives who have contracts to sell 30.699 million pounds of American-type cheeses, 8.415 million pounds of butter (82% milkfat) and 21.301 million pounds of whole milk powder to 21 countries on five continents. The sales are the equivalent of 628.192 million pounds of milk on a milkfat basis. Totals have been adjusted due to cancellations.

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.



Brazil to Plant More Soybeans, Corn in 2016-17

High prices will prompt summer corn to rob soybean area in southern Brazil during the upcoming 2016-17 season, according to Agroconsult, a local farm consultancy.

But expansion elsewhere will mean soybean area also grows, said Andre Pessoa, an Agroconsult director, during an agribusiness event in Sao Paulo Monday.

First-crop summer corn area will grow around 6% to 8.4 million acres, going against the trend over the last decade for area to decline.

But the preference for corn won't be enough to stop the juggernaut that is Brazil's soybean crop.

Soybean planted area will grow by approximately 1.5% to 83.2 million acres, Pessoa told reporters.

Even with soybean futures slipping from recent highs and a strengthening Brazilian real, the prospects for planting beans remains positive and, with around 25% of the crop sold in Mato Grosso, farmers are already committed to increasing area.