Thursday August 11 Ag News

NEBRASKA EXTENSION OFFERS CROP DIAGNOSTIC CLINIC, CORN AND SOYBEAN SCHOOL

    Nebraska Extension is providing a late-season crop diagnostic clinic Aug. 24 and a corn and soybean production school Aug. 25. Both sessions will be at the Agricultural Research and Development Center, 1071 County Road G, near Mead.

    Aug. 24 topics include corn and soybean disease analysis; crop scene investigation; end-of-season pivot checkup; field to market – quantifying sustainability in crop production; hail damage in soybeans; and summer forages for silage and hay. Nine Certified Crop Adviser credits are available.

    Aug. 25 topics include implications of growth and development on corn management; hail injury and corn recovery; cover crops in corn; tradeoffs associated with planting early-maturing corn hybrids; and how not to be a "you don't know Jack" soybean agronomist. Six and a half Certified Crop Adviser credits are available.

     "In-season crop management practices will be covered at both clinics," said Nebraska Extension Educator Keith Glewen. "We will take a look at how to best manage what has been taking place in Nebraska fields this year, as well as potential situations that could still arise."

    During the Aug. 25 corn and soybean production school, participants will compare multiple maturities in the same field, Glewen said. The various growth and development stages will be used to demonstrate the impact that management practices could have on final yield.

    Registration for both clinics begins at 7:15 a.m. The Aug. 24 training runs from 8 a.m. to 5 p.m., and the Aug. 25 session is from 8 a.m. to 3:15 p.m. Participants will meet at the August N. Christenson Research and Education Building.

    Early registration is recommended to reserve a seat and resource materials. Cost for the Aug. 24 session is $170 for those registering one week in advance and $195 afterward. Cost for the Aug. 25 session is $100 for those registering one week in advance and $125 afterward.

    For more information or to register, contact Nebraska Extension CMDC Programs, 1071 County Road G, Ithaca, NE 68033, call (800) 529-8030, fax (402) 624-8010, email cdunbar2@unl.edu or visit http://ardc.unl.edu/training.shtml.



Ag Credit Conditions Deteriorate Further
Nathan Kauffman, Assistant Vice President and KC Fed - Omaha Branch Executive
Matt Clark, Assistant Economist

Agricultural credit conditions throughout the Tenth Federal Reserve District continued to deteriorate in the second quarter of 2016 as farm income remained subdued. Repayment rates for farm loans softened again and bankers reported a modest increase in both loan repayment problems and the number of loan applications that were denied. Weak farm income and worsening credit conditions also continued to trim farmland values, and respondents in general indicated they expect farmland values to trend lower in the months ahead.

Farm Income
Respondents to the Tenth District Survey of Agricultural Credit Conditions indicated farm income in the quarter continued to tighten. Nearly 75 percent of surveyed bankers reported farm income was less than a year ago, although the percent of bankers that reported weaker farm income declined slightly from the first quarter.  Respondents also noted that agricultural producers continued to reduce capital and household spending as profit margins generally remained weak.

Bankers also indicated they expect farm income to remain weak in the third quarter. Similar to last year, a significant number of bankers in each District state expect farm income in the third quarter to be less than a year earlier. They also expect the rate of decline to be sharpest in the Mountain States and Oklahoma, which are relatively more dependent on income from wheat, cattle and energy production than other parts of the District. As the outlook in these three sectors has become increasingly downbeat, more bankers in those regions expect farm income to decline further.

Low commodity prices continued to be the primary driver of reduced farm income. Prices for most of the top commodities produced in the Tenth District have fallen from a year ago and are well below prices of recent years. For example, at the end of July 2016, corn and soybean prices were 47 percent and 24 percent less, respectively, than the same period in 2013. Cattle and hog prices also were lower than a year ago and remained lower than in 2013.

Weaker farm income has continued to have an adverse effect on the District’s Main Street businesses. Almost 85 percent of bankers noted that the weakening farm economy has reduced Main Street business activity, up from about 60 percent last year and just under 40 percent in 2014. The change in spillover effects from the farm economy to Main Street businesses was most significant in the Mountain States and Oklahoma, regions with a stronger relative dependence on the livestock and energy sectors. However, a large number of bankers in Nebraska also continued to report that a weaker farm economy was affecting businesses in their region at a pace similar to last year.

Farm Loan Demand and Credit Conditions
Persistent declines in farm income in the District have continued to affect agricultural credit conditions. Demand for non-real estate farm loans and loan renewals continued to climb in the second quarter with additional increases expected in the third quarter. As noted in the Kansas City Fed’s most recent Agricultural Finance Databook, the rising demand for farm loans has been driven primarily by the need to finance short-term operating expenses as profit margins have remained weak.

Slimmer profit margins also have pulled down the rate of loan repayments. Almost half of all respondents reported that loan repayment rates in the second quarter were lower than a year ago. In addition, the severity of repayment rate problems has increased slightly over the past year. In 2016, more than 7 percent of farm loans had major or severe repayment problems, a relatively large increase from the 2011-13 average of less than 3 percent. The share of farm loans with at least minor repayment problems was approximately 22 percent in the second quarter, and has trended up since 2014.

Evidence of repayment problems also has surfaced at the state level. The share of farm loans with identified repayment problems has increased to at least 18 percent in all states. In the Mountain States, more than 30 percent of farm loans had some type of repayment problem, a jump of 17 percentage points from the 2011-13 average. Loan repayment problems also increased in other District states from the 2011-13 average, reflecting the effects of prolonged weakness in farm income throughout the District.

In response to a weakening farm economy and increased problems with loan repayments, bankers reported an increase in the share of loan applications that were denied in the second quarter. In 2016, almost 15 percent of bankers reported that they denied more than 10 percent of applications for farm operating loans. By comparison, only 5 percent of bankers indicated they had denied loan applications at this rate in 2015. Although District bankers continued to report that ample credit was available for borrowers who are in a strong financial position, the higher rate of loan denials suggests the number of farm borrowers who are less creditworthy has increased over the past year.

Farmland Values
Weakening farm income and deteriorating credit conditions continued to pressure farmland values lower. Values of nonirrigated and irrigated cropland declined 3 percent and 5 percent, respectively, from a year ago. Ranchland values also declined 3 percent, continuing the downward trend of recent quarters. From 2002 to 2014, the value of both irrigated and nonirrigated cropland declined in only one quarter (the third quarter of 2009). As of the second quarter, however, irrigated cropland values have declined in each of the past six quarters and nonirrigated cropland values have declined in four of the past six quarters.

In general, cropland values also have trended lower in each District state. Declines in cropland values were most significant in Kansas and Oklahoma, likely due to sustained weakness in profit margins associated with wheat and cattle production and potential spillover effects from difficulties in the energy sector. The declines in Kansas cropland values were, in fact, the largest year-over-year declines in any state during the downturn of the past two years. Cropland values in Nebraska fell for an eighth consecutive quarter, and the 5 percent decrease in irrigated cropland values for the District was the largest decrease in 29 years.

Many bankers continued to anticipate further declines in farmland values in the months ahead. Specifically, more than 30 percent of bankers expect the values of all types of farmland to decline in the next quarter while less than 2 percent expect an increase. When asked to rank factors contributing to the changes in farmland values, the majority of bankers continued to rank the overall level of farm wealth as the most significant. However, bankers also expect farm income to have a more significant effect this year in the adjustment of farmland values than in previous years, suggesting that reductions in cash flow may continue to weigh on farmland values.

Looking Ahead
Low commodity prices have continued to drag down farm income and weaken agricultural credit conditions. At the end of the second quarter, crop prices appeared poised to remain low alongside growing expectations of a strong fall harvest. Borrowers without sufficient liquidity, substantial net worth or large borrowing bases may find it increasingly more difficult to attain financing if their creditworthiness continues to decline. Moderating farmland values may also add pressure to borrowers and banks that rely on highly leveraged farmland as collateral. Despite these concerns, farm loans in the second quarter that were significantly past due or non-accruing remained slightly below recent averages amid a general, gradual downturn in the farm economy.



Small Grains County Agricultural Production Survey

Many Nebraska producers recently received a survey to collect data that will be used to determine small grain county level acreage, yield, and production estimates for 2016. The USDA’s National Agricultural Statistics Service (NASS) mailed these surveys in late July to producers.

“County-level yields have a direct impact on farmers around the State. USDA’s Farm Service Agency uses the data in administering producer programs such as the Agricultural Risk Coverage (ARC) included in the 2014 Farm Bill, and in determining disaster assistance program calculations,” said Dean Groskurth, Director of NASS’s Northern Plains Region. “NASS cannot publish a county yield unless it receives enough reports from producers in that county to make a statistically defensible estimate. So, it is very important that producers respond to this survey. In 2015, we were unable to publish several large producing counties because we lacked a sufficient number of responses.”

“As required by Federal law, all responses are completely confidential,” Groskurth continued. “We safeguard the privacy of all respondents, ensuring that no individual operation or producer can be identified. Individual responses are also exempt from the Freedom of Information Act.”

“Many producers respond by mail or on our secure website. If not enough responses are received from a county, we will begin contacting producers by phone or in person. County-level data for winter wheat and oats will be published in December.”



Farmers National Company Land Value Update - Nebraska

While farmland prices set records in 2012-2013 and enjoyed double-digit increase in the past 10 years, 2016 has seen a plateau in farmland values. From June 2015 to June 2016, high quality land is selling for $1,500 less per acre on average.

“And they continue to tail off,” said JD Maxson, area sales manager for Farmers National Company in North Platte, Neb. “This decline in farmland values in Nebraska denotes the first decline in recent years. It’s a result of a weak commodity market, soft cash rents and continued stress on livestock producers’ bottom line profit. Corn prices are at the lowest level in three years, affecting profit margins. Producers are waiting for an upward bump in prices, which explains the 'glut' of corn in on-site corn storage, and lower commodity prices have forced investors and owner/operators to rethink their strategies for calendar year 2016.”

Furthermore, as the demand for tillable cropland acres has dropped off, grazing pasture acres paralleled this downward trend as ranchers and livestock producers became more prudent and cautious, Maxson said.

“Livestock producers experienced a record-setting cattle market in 2014 and throughout 2015, only to see cattle numbers increase (heifers to feedlots and not held back for breeding). Livestock producers (cow/calf and cattle on feed) have experienced a sharp decline in bottom line profitability, which has a direct impact on pastureland/grazing acres. With cattle numbers up, one would automatically expect additional pressure on grazing acres; however short line profits have seemingly depressed the pastureland market. Purchasing additional grazing acres, while realizing lower profits at market time, has had a direct reflection on prices paid per acre. Buyers are more cautious and have been forced to be more selective with their long-term farmland investments.”

However, Maxson noted that specific pockets of Nebraska farmland have seen land pricing steady to strong. For example, a March 24 land auction in Milford, Neb., for 260 acres in Seward County sold in three tracts for $10,500-10,700, proving high quality land with improvements like tiling, center pivot irrigation, abundant water and good access to grain markets is still in demand, he said.

On the flipside, dryland cropland is showing a stronger rate of decline,15 to 25 percent location specific, compared to pivot and gravity irrigated cropland. Then in other areas of the state, cropland values vary with the biggest adjustments found in central and western Nebraska. Maxson said he anticipates lower grain prices will persist throughout the rest of 2016, which will continue to have a negative impact on cash rental rates for early 2017.

“With the double digit appreciations over the past almost 10 years, these recent small declines in land values basically just bring us back to normalcy,” he said.



Current National Drought Summary - The Plains and Midwest

Moderate to heavy rain fell in a band from northern New Mexico northeastward through much of northern Oklahoma, Kansas, and the southern and northern reaches of Missouri, and adjacent Iowa last week, with amounts of 3 to 5 inches recorded in a few spots in north-central Missouri and adjacent Iowa, northern and southern Kansas, and northeasternmost New Mexico. Farther north, moderate to heavy rain was also observed in a smaller swath covering south-central to southeastern Nebraska. Light to moderate totals were observed in the central High Plains and eastern Iowa, and only a few tenths of an inch at best fell elsewhere. This pattern of variable precipitation amounts prompted numerous changes of relatively small scale. For instance, patches of deterioration were noted in South Dakota, western Iowa, and south-central Oklahoma while improvements were introduced in southern Nebraska, southeast Oklahoma, southern Kansas, and areas near the Iowa/Missouri border.

Looking Ahead
During the next 5 days (August 11 – 15), heavy precipitation (more than 1.5 inches) is expected in a broad swath from the Big Bend region in Texas eastward through upper central Texas, most of the Mississippi Valley, the adjacent central Gulf Coast, the Ohio Valley, the western Great Lakes region, and interior sections of the Northeast and New England. Amounts may reach 4 to 8 inches in the eastern half of Louisiana and adjacent locations, 3 to 6 inches in the Big Bend, 2 to 5 inches in the upper Midwest (centered near the Wisconsin/Iowa/Minnesota triple point), and 2 to 5 inches along and just north of the Ohio River. Moderate amounts are anticipated in the Southwest, eastern Colorado, most of Florida, the central Plains, and the southern reaches of the Northeast and New England. A few tenths of an inch at best are expected in most other areas, although amounts may approach an inch in the southern Appalachians. High temperatures will average a few degrees above normal in the Great Lakes region, mid-Atlantic, and Northeast, as well as the West Coast states away from the immediate coastline. Near- or below-normal temperatures seem likely elsewhere.

During August 16 – 20, the odds favor wetter than normal weather in a broad swath from the southern Rockies eastward through the southern Plains, lower Mississippi Valley, mid-Atlantic region, and Southeast (outside the Florida Peninsula). The odds also favor wet weather in the northern Great Plains. However, enhanced chances for drier than normal weather exist in the Northwest, the Intermountain West, central sections of the Rockies and Plains, and southern and eastern portions of the Great Lakes region. The odds favor warm weather from the Rockies westward, from the Appalachians eastward, and along the northern one-third of the Nation. In contrast, cooler than normal weather is favored from the Southwest eastward through the lower Mississippi Valley away from the immediate Gulf Coast.



Iowa State University Agronomist Hired to Create Cropping Systems Management Program

A 15-year veteran of helping Iowa farmers improve their cropping practices has joined Iowa State University’s agronomy faculty.

Mark LichtOn Aug. 1, Mark Licht began his new role as an assistant professor in the Department of Agronomy, focused on integrated cropping systems extension. His work will aim to improve crop productivity, profitability and the stewardship of natural resources.

“Sometimes to get the best fit for a position, you have to grow your own,” said John Lawrence, associate dean in the College of Agriculture and Life Sciences and director for Agriculture and Natural Resources Extension and Outreach. “Mark excelled as an extension field agronomist in west central and central Iowa before starting his doctorate program. He understands Iowa fields and has worked closely with Iowa farmers and their crop advisers.”

Licht worked in ISU Extension and Outreach programs for nearly 15 years, serving as an extension program specialist, an extension field agronomist and most recently as an extension cropping systems agronomist.

As a faculty member, Licht’s extension and research responsibilities will address current and emerging issues of agronomic production systems in Iowa, enhancing cropping system performance by promoting practices such as integrating diverse cropping systems and precision agricultural technologies. He also will teach agronomy classes.

Licht earned a bachelor’s degree in agronomy and agricultural extension education in 2000; a master’s degree in soil science in 2003; and a doctorate in crop production and physiology in 2015; all from Iowa State.



Leadership At Its Best Sharpens Skills in Greensboro

Growers gathered in Greensboro, N.C. this week for the first session of the National Corn Growers Assoc. Leadership Academy, co-sponsored by Syngenta. This year's class includes 18 aspiring leaders from 11 states. Upon completion of the program in January, the participants will join more than 500 colleagues who have graduated from this program in the past 30 years.

At the meeting, participants got an up-close look at NCGA from First Vice President Wesley Spurlock, a Leadership Academy alumnus. Spurlock also provided an insightful examination of the main issues facing the association, and the nation's corn farmers, today.

The farmers attending took part in media training and public speaking exercises as well as association management skill building. In addition, the class enjoyed a look at the future trends that will impact the industry and a comprehensive economic forecast given by futurist Bob Treadway. Including presentations focused on communicating in today's ADD world and a deep dive into how personalities impact interactions, the training provided not only tools but insight into how they can be applied most effectively.

"As a Leadership Academy graduate, I have a deep appreciation for the confidence and skills attendees develop in such a short time," Spurlock said. "The Syngenta speakers, as well as the many outside experts brought in, have an incredible ability to hone in on precisely what will be most beneficial for our participants.

"As NCGA's First Vice President, I am excited to see new leaders who want to take on an active role in the association. When these volunteers come together, you can feel their commitment to the industry. It is heartening to know that such strong farmer leaders will carry on our mission well into the future."

This year's Leadership at Its Best Class includes: Duane Aistrope (Iowa); Jayne Dalton (Wis.); Sarah Delbecq (Ind.); Deb Gangwish (Neb.); Patricia Geerdes (Minn.); Jeff Gormong (Ind.); Brent Hoerr (Mo.); Mike Lefever (Colo.); William Leigh (Ill.); Stacy Mayo (Kan.); Lawrence Onweller (Ohio); Mark Recker (Iowa.); Betty Skunes (N.D); Randall Small (Kan.); Clint Stephens (Mo.); Roger Sy (Ill.); Scott Winslow (Minn.); and Josh Yoder (Ohio).



High Oleic Leaps from Field to Fryer

Collaboration is instrumental to change. When the U.S. soybean industry rolled out high oleic soybean varieties more than five years ago, it knew it would take an industrywide effort to bring solutions to the market.

“The success of high oleic soy depends on the collaboration of many partners – from end users all the way back to the seed companies and the farmers,” says John Motter, soybean farmer from Jenera, Ohio who grows high oleic soybeans and also serves as United Soybean Board vice chair. “For us to see growth – in acres and demand – it will take a continuation of these efforts to bring profitability to soybean farmers.”

Enter the town of Findlay, Ohio. Motter and other farmers around Findlay were some of the first to grow high oleic soybeans in 2011. Today, the town of 40,000 was the site of a high oleic takeover of sorts. Farmers gathered to learn from their peers about growing high oleic soybean varieties and passers-by were able to sample goodies cooked in high oleic soybean oil.

For farmers, these varieties perform right along with other varieties in their fields and pack a premium to add to farmer profitability. For food companies, high oleic soybean oil offers a familiar taste with lower saturated fats and without unnecessary trans fats.

“I’m proud to bring a domestic oil back to the food industry,” adds Motter. “So much of our soybean oil demand has been lost to imported oils and that affects my bottom line.”

High oleic soybeans are expected to top one million acres in 2017 – a milestone for the crop. But, the soy industry estimates the demand for high oleic will top 18 million acres by 2023. Farmers are encouraged to seek out local contracts and join their peers in growing high oleic soybeans. To find out more information, visit soyinnovation.com or talk to your local seed representative.



STB Addresses Competitive Switching, Other Rail Oversight Issues

Last week the Surface Transportation Board (STB) proposed new regulations regarding competitive switching on railroads, which if adopted would give shippers who are served by only one major railroad the option to seek competing bids for access to a second Class I railroad nearby without facing hefty fees.

Railroads play an important role in moving soy products in the U.S.

The Proposed Rule responds to a petition for rulemaking submitted by the National Industrial Transportation League (NITL) in July of 2011. The STB initiated a proceeding (EP-711) to consider NITL’s proposal, and received public comments.  In March 2014, the STB held a two-day public hearing to receive live testimony from stakeholders. The STB is now granting, in-part, the NITL’s petition for new regulations and setting out proposed regulations for comments, which are due on September 26th. The American Soybean Association (ASA) will be working with agricultural industry partners to analyze the Proposed Rule and potentially submit joint comments.

In addition to the Proposed Rule on competitive switching, the STB is working on separate action to expedite consideration of rail rate dispute cases and implementation of the STB reform and reauthorization bill enacted by Congress.

This week, the Senate Commerce Committee is holding a field hearing on rail shipper issues in Sioux Falls, S.D. that will focus on implementation of the STB reform and reauthorization bill. STB Board Members Dan Elliot and Deb Miller and a representative of CHS, on behalf of The Fertilizer Institute, will testify at the hearing.



Tractor Sales Rose in July, Combines Fell

According to the Association of Equipment Manufacturer's monthly "Flash Report," the sale of all tractors in the U.S. in July 2016, were down 14% compared to the same month last year.

For the seven months in 2016, a total of 128,122 tractors were sold which compares to 1027,975 sold thru July 2015 representing a 0.8% increase year to date.

For the month, two-wheel drive smaller tractors (under 40 HP) were down 6% from last year, while 40 & under 100 HP were down 23%. Sales of 2-wheel drive 100+ HP were down 25%, while 4-wheel drive tractors were down 48%.

For the seven months, two-wheel drive smaller tractors (under 40 HP) are up 10% over last year, while 40 & under 100 HP are down 6%. Sales of 2-wheel drive 100+ HP are down 24%, while 4-wheel drive tractors are down 34%.

Combine sales were down 16% for the month. Sales of combines for the first seven months totaled 1,212, a decrease of 22% over the same period in 2015.



Cargill reports fiscal 2016 fourth-quarter and full-year results

Cargill today reported financial results for the fourth quarter and full fiscal year ended May 31, 2016. The company is on a transformative path to strengthen financial performance, move in step with changing consumer values, and become the most trusted source of sustainable products and services for customers.

Full-year results
-    Adjusted operating earnings were $1.64 billion, a 15 percent decrease from the prior year. On a U.S. GAAP basis, net earnings totaled $2.38 billion, up 50 percent from fiscal 2015.
-    The variance between adjusted and net earnings included gains on sales of businesses and other assets, asset impairment charges and a LIFO inventory adjustment.
-    Revenues totaled $107.2 billion, an 11 percent decline that reflected lower commodity prices, a strong U.S. dollar and divestitures.
-    Cash flow from operations equaled $3.41 billion.

Fourth-quarter results
-    The company recorded an adjusted operating loss of $19 million compared with a $230 million profit in the prior period. On a U.S. GAAP basis, net earnings were $15 million against a $51 million loss in last year’s fourth quarter.
-    Revenues dipped 5 percent to $27.1 billion.

“We are looking ahead as we position our company for higher performance and sustained growth,” said David MacLennan, Cargill’s chairman and chief executive officer. “We have more work to do, but where we have already made changes we are seeing improved results.”

MacLennan cited the broad earnings improvement in food ingredients and the reshaping of the company’s portfolio. “We made important changes, adding capabilities essential to our customers’ success. This includes more than $3 billion in strategic acquisitions and new or expanded facilities, as well as nearly $2.4 billion in divestitures. These moves are making us more competitive in sectors where we intend to lead.”

Cargill delivered strong performance in global animal nutrition, value-added protein and poultry in many regions. In addition, the company posted good results in grain and oilseeds in South America and China, and in food ingredients such as salt, starches, sweeteners and texturizers. Trading activities yielded mixed results, in part due to low volatility in agricultural commodity markets for most of the fiscal year. Stalled growth in several emerging economies also affected earnings.

In recapping the year, MacLennan noted Cargill realized more than $425 million from innovation, primarily new products and services. It saved more than $200 million by increasing efficiency in its plants and supply chains, and by scaling up global shared services.

Throughout the year, Cargill brought together thought leaders and partners to address the linked challenges of food security, sustainability and nutrition. As part of its pledge to end deforestation, the company released a new forest policy and action plans to safeguard resources in critical supply chains. It joined with World Resources Institute to advance thinking on how global agriculture uses water and forest resources. Cargill also led Food Chain Reaction, a global food security simulation that gathered more than 60 leaders from different countries and organizations to explore solutions for the food systems of tomorrow.

This June, Cargill awarded more than $13 million in grants that will improve the lives of more than 1 million people in 15 countries. Among the implementing partners are CARE USA, The Nature Conservancy, Heifer International, Feeding America and Second Harvest Heartland.

“Working with customers and partners around the world, our Cargill team of 150,000 people in 70 countries is helping create the tomorrow we all want to see: one, where together, we thrive.”

Segment results
The Food Ingredients & Applications segment was the largest contributor to adjusted operating earnings in the fourth quarter and full year, with results up substantially from a weak comparative period. The focus on improving performance lifted earnings broadly across edible oils, malt, starches, sweeteners and texturizers, as did the first-quarter acquisition of a chocolate business. Salt for food and other applications posted outstanding results. NatureWax®, a natural vegetable-based wax business, was acquired in the fourth quarter; it is now part of the segment’s bioindustrial products group.

Adjusted operating earnings in Animal Nutrition & Protein rose significantly in the fourth quarter. Full-year results edged below the prior year due to difficult market conditions globally in beef through the first three quarters, with some improvement in North America in the fourth quarter. Elsewhere, segment performance was strong, including in global animal nutrition, turkey and value-added protein in North America, and global poultry with the exception of China. Over the course of the fiscal year, Cargill acquired salmon nutrition leader EWOS; announced about $500 million in acquisitions and investments to grow its North American protein business; and partnered with Jollibee Foods, Asia’s largest foodservice company, to build a supply chain for specialty poultry products in the Philippines.

Full-year earnings in Origination & Processing decreased significantly from a year ago. Three years of good weather in major growing regions and sluggish global demand led to large stocks, weak prices and low volatility, all of which limited trading opportunities. Even so, the segment had strong performance in South America and China. The fourth quarter was not profitable, with results negatively affected by trading and timing effects in oilseed processing. Performance in South America and China, however, continued strong in the fourth quarter. Among the year’s investments, Cargill completed a new oilseed crush, refining and port complex in northeastern China and formed a joint venture to build a grain export terminal in Ukraine on the Black Sea. It also is undertaking significant expansions of its oilseed processing facilities in Três Lagoas, Brazil, and Wichita, Kansas. The company sold its crop insurance agency in the U.S., and exited from crop inputs in Central and Eastern Europe. In the fiscal 2017 first quarter, it agreed to sell its U.S. crop inputs business to Crop Production Services, a subsidiary of Agrium.

Industrial & Financial Services recorded losses for both the quarter and the year, largely due to a fourth-quarter adjustment taken for counterparty risk in ocean shipping. The energy businesses generated operating profits for the full year, despite a small loss in the fourth quarter; metals was profitable in both periods. In the third quarter, subsidiary Black River Asset Management was spun off into three independent firms.



U.S., Mexican Dairy Industry Leaders Pledge Renewed Cooperation at Conclusion of Successful Dairy Summit

Concluding a successful two-day summit here, leaders of U.S. and Mexican dairy industry organizations yesterday pledged to work together to boost trade between the two countries, address mutual challenges and increase dairy consumption while also promoting milk production on both sides of the border.

The dairy leaders signed a memorandum creating a US-Mexico Dairy Alliance that will meet annually to exchange information, review industry trends, and identify and seek solutions for problems affecting either side.

Also in the plan going forward will be ways to further reduce trade barriers between the two countries and defend against efforts to capture generic cheese names like parmesan, asiago and feta for the exclusive use of some European producers.

Signing the memorandum for the United States were Jim Mulhern, president and CEO of the National Milk Producers Federation, and Tom Suber, president of the U.S. Dairy Export Council. Signing for Mexico were Salvador Álvarez Morán, president of the Mexico Livestock Association (CNOG) and Juan Carlos Pardo, president of the National Chamber of Industrial Milk (CANILEC).

Mulhern and Suber characterized the summit as re-energizing a relationship forged under the North American Free Trade Agreement (NAFTA), which came into force in 1994. Mulhern described NAFTA as an example of a trade agreement that substantially benefits both countries.

“Since NAFTA, our markets have converged seeing both U.S. and Mexican dairy farmers growing. U.S. dairy exports to Mexico have increased significantly, while Mexico’s internal milk production has also seen expansion.”

“At the same time,” added Suber, “volatile markets, increased imports from third countries and consumer misinformation about dairy products pose challenges for the dairy industries in both countries that can be best solved through both industries working together.”

Formal goals of the U.S.-Mexico Dairy Alliance include unifying efforts of dairy producers and industries in both countries, maintaining a communication channel between the industry organizations, and analyzing and seeking mutually beneficial solutions to problems affecting the dairy industry in both countries.



EU Watchdog Probes Dow, DuPont Merger

The European Union's antitrust authority on Thursday opened a full-blown investigation into plans by Dow Chemical Co. and DuPont Co. to merge, on concerns the deal would reduce competition in the global agricultural sector.

The European Commission said it would investigate whether the deal may reduce competition in areas such as crop protection, seeds and certain petrochemicals. Announced in December, the proposed merger aims to create an American industry giant with a combined market cap of about $122 billion.

In-depth antitrust inquiries are common for large merger reviews in Brussels and don't necessarily mean a deal will be blocked. If the EU confirms its concerns, the companies can decide to offer concessions, such as selling assets, to assuage the regulator. If those aren't deemed sufficient, Brussels can block the deal.

"The livelihood of farmers depends on access to seeds and crop protection at competitive prices. We need to make sure that the proposed merger does not lead to higher prices or less innovation for these products," said European competition commissioner Margrethe Vestager.

Dow and DuPont on July 20 sought to address some of the concerns raised by the EU, the commission said. However, the commission found their commitments "insufficient to clearly dismiss its serious doubts" about the merger being in line with EU rules.

Given the scale of the two companies, the commission said it was "cooperating closely" with other competition authorities in the U.S., Brazil and Canada, which are also scrutinizing the deal.

DuPont and Dow on Thursday said they had expected "a thorough review" by regulators, but were still confident about the deal closing by the end of the year.

A final EU decision is expected by Dec. 20.



Janet Donlin named executive vice president/CEO of the American Veterinary Medical Association

Dr. Janet Donlin has been named executive vice president/chief executive officer of the American Veterinary Medical Association (AVMA). Donlin will succeed Dr. Ron DeHaven, who is retiring after nine years of service to the AVMA.

Donlin has served as chief executive officer of the AVMA Professional Liability Insurance Trust (AVMA PLIT) since April 2013. The AVMA PLIT is now in its 54th year of dedicated service to AVMA members, providing a wide variety of insurance-related products to veterinarians, veterinary practices and veterinary students.

AVMA President Dr. Tom Meyer cited Donlin’s decades-long service to the veterinary profession and her extensive professional achievements as key factors to her being named the lead executive of a national veterinary association that is approaching a total membership of 90,000 veterinarians from all walks of professional life.

“Dr. Donlin is one of the true champions of veterinary medicine and all it stands for,” Meyer said. “She has an outstanding record of success in both the veterinary association arena and in the animal health industry. She is a skilled strategist with a proven background of diverse AVMA experience and a known reputation for working with leaders from all segments of the veterinary profession, key stakeholders and staff members to drive innovation, growth and success.

“Janet is highly skilled at building teams that can identify member needs and drive programs that deliver the products and services our members want, need and expect,” Meyer continued. “The AVMA is fortunate to welcome Janet to the helm of our national association. She understands the importance of working collaboratively to achieve our shared objectives. She is uniquely qualified to take the role of AVMA executive vice president and chief executive officer.”

Donlin’s hiring marks her return to an association for which she first started working in 1991 as an assistant director in what was then the AVMA Scientific Activities Division. Over the course of the next 17 years, she served as an interim division director, associate executive vice president and assistant executive vice president. Her role as assistant executive vice president required her to work hand-in-hand with the executive vice president to drive execution of the objectives established by the AVMA Board. From 2000-2001, Donlin’s role at the AVMA also included serving as interim CEO of the National Commission on Veterinary Economic Issues, where she oversaw the establishment of the commission as a nonprofit organization.

“My time at the AVMA and my experiences across the profession have reinforced for me time and again that our membership is very diverse, our needs are constantly evolving and our profession continues to face new challenges and opportunities,” Donlin said. “That’s why I’m committed to making certain we continue to build on the AVMA’s core strengths so that we are even more responsive to the needs of our members, and that we advocate with a strong, clear voice on behalf of our entire profession.

“I’m excited to work closely with AVMA leadership and staff, and our colleagues and strategic partners, to advance the AVMA’s mission ‘to lead the profession by advocating for our members and advancing the science and practice of veterinary medicine to improve animal and human health.’ ”

Retiring CEO DeHaven said Donlin’s hiring will bring skilled leadership, as well as sound foundational knowledge, to an association that continues to evolve in order to best meet its members’ needs.

“Dr. Donlin is an experienced association professional with an exceptional amount of knowledge of, and experience with, the AVMA and our membership,” DeHaven said. “She is exactly the right person to continue what we are doing to meet member needs and to take us to the next level.”

Donlin served as chief veterinary officer in the Global Veterinary Business Channel of Hill’s Pet Nutrition from August 2007 to March 2013, where she provided veterinary insights to drive development of innovative products and services to meet the evolving needs of the veterinary profession and pet owners.

She received both her DVM and her Bachelor of Science degree in medical technology from the University of Minnesota. She is also a graduate of the veterinary technician program at the Medical Institute of Minnesota. She is a licensed veterinarian in Illinois, Minnesota and Wisconsin, and has professional membership in several associations, including the AVMA, the American Animal Hospital Association, the American Association of Bovine Practitioners, the American Association of Equine Practitioners, the American Association of Swine Veterinarians, the Illinois State Veterinary Medical Association, the American Society of Association Executives, and the American Association of Corporate and Public Practice Veterinarians.

Donlin is the first veterinarian to earn the Certified Association Executive credential from the American Society of Association Executives. She is a former trustee of the AVMA’s Group Health Life Insurance Trust (now known as AVMA Life), and she is a former board member of the American Association of Corporate and Public Service Veterinarians.

Donlin will begin her employment at the AVMA September 12.

“I’m passionate about member service, and I am honored and humbled to be entrusted with what I consider to be one of the most important positions in veterinary medicine,” Donlin said.