Thursday August 18 Ag News

CVA Welcomes Matthew Ashton as Grain SVP

Earlier this week, Carl Dickinson, CEO of Central Valley Ag announced to employees that Matthew Ashton has accepted the role of Senior Vice President of Grain, and will be joining the CVA Team beginning September 12, 2016.

“I am confident that Matthew will be an excellent match for this position and a strong asset to our Grain Division,” said Carl Dickinson, CEO of CVA. “I’m excited about this decision and look forward to seeing the contributions Matthew will make to CVA’s future.”

Matthew comes to Central Valley Ag with over 18 years of agricultural cooperative experience, his most recent experience as the CEO of Central Farmer’s Cooperative/Fremar LLC, based out of Marion, South Dakota. He is well respected throughout the grain industry and is known for his expertise, knowledge, insight and ethics. Matthew’s documented financial success and ability to grow business and sustain profitability during challenging times makes him a great fit for the vision of CVA; to be a world-class cooperative ensuring the long-term success of our employees and customers.

“I’m very appreciative for the opportunity to become a part of the CVA team,” said Ashton. “I’m excited to meet CVA patrons, board members, the management team and employees; I’m ready to continue providing the outstanding service that CVA patrons have come to expect from the grain division.” Matthew and his family look forward to relocating to York area.



NE FFA Foundation Annual Tire Auction to Include Harley-Davidson, Motorcycle, and JD Gator 

Titan Tire Corporation, a subsidiary of Titan International, Inc., will be hosting a tire auction for Nebraska FFA at Husker Harvest Days on Wednesday, September 14, 2016. In its fourth year, the 2016 auction will also include a 2005 Harley Davidson Road King Classic motorcycle and John Deere Gator.

“We take great pride in supporting the FFA and helping to benefit the next generation of growers,” says Scott Sloan, agricultural product manager at Titan International. “FFA is a great leadership program for students looking to continue in agriculture and ag business fields. If you spend any time with these kids, you can see that the future is bright for agriculture, and Titan is glad to help them along the way.”

To participate in this year’s auction:

·       Sign in at the FFA registration desk for a bid number to participate in the auction in person. Can’t make it to the sale? The auction will be streamed live on bigiron.com. Cash, check and credit cards will be accepted.

·       Starting at 11:00 a.m. on Wednesday, September 14, participants can place bids on a selection of Titan and Goodyear Farm tires, as well as a John Deere Gator and Harley Davidson motorcycle. The highest bids win and all proceeds support Nebraska FFA members.

·       The list of tires that will be auctioned off and details on the John Deere Gator and Harley Davidson can be downloaded at neffafoundation.org.




Deadline Extended: Cattlemen’s Boot Camp in Nebraska

Cattle producers, mark your calendars. A Cattlemen’s Boot Camp will be hosted Sept. 21-22 at the Animal Science Complex on the University of Nebraska’s East Campus in Lincoln, Neb.

The educational event will be hosted jointly by the American Angus Association and the University of Nebraska Lincoln (UNL), and will provide purebred and commercial cattle producers with timely information presented by academic and industry professionals.

Register online at angusonline.com, or download and send your application by mail before Aug. 29 to ensure you don’t miss all that this event has to offer.

“The Cattlemen’s Boot Camp workshop is a great event for cattle producers across the country,” says Jaclyn Clark, Association director of events and education. “The workshop offers industry-specific information from speakers and research that will offer insight into the beef business for both seedstock and commercial producers.”

Generously funded by the Angus Foundation, the Cattlemen’s Boot Camp is open to all cattle producers and features two days of educational speakers and workshops, and hands-on activities to help cattlemen and cattlewomen improve their herd operations. Attendees will look forward to hearing from industry professionals on a market outlook, range and crop management tips, updates on carcass trends and information on bull selection, source verification, genetic improvement, and general herd management.  A tentative schedule follows.

Wednesday, Sept. 21
12:30-1 p.m. – Registration
1 p.m. – Welcome: Brad Bennett
1:15-1:30 p.m. – Welcome: Ronnie Green
1:30-2:15 p.m. – Market Outlook: Kate Brooks
2:15-3 p.m. – Range Management: Jerry Volesky

3-3:15 p.m. – Break

3:15-4 p.m. – Cover Crops: Mary Drenowski
4-4:45 p.m. – Corn Residue: Rick Rasby
4:45-5:30 p.m. – Value-added Cuts: Gary Sullivan

5:45-6:30 p.m. – Dinner: Pete McClymont, executive vice president of Nebraska Cattlemen

6:30-7:15 p.m. – Beef Tenderness: Chris Calkins
7:15-8 p.m. – Certified Angus Beef: Larry Corah

Thursday, Sept. 22 - East Campus Union
8-8:15 a.m. – Introduction: Brad Bennett
8:15-9 a.m. – AAA Login/Member Services: Jerry Cassady
9-9:45 a.m. – Dry Lot Cows: Karla Jenkins

9:45-10 a.m. – Break

10-10:45 a.m. – Reproduction: Rick Funston
10:45-11:30 a.m. – Bull Selection: Dan Moser
11:30 a.m.-12:15 p.m. – Feedlot: Galen Erickson

12:15-1:15 p.m. – Lunch

1:15-2 p.m. – Source Verification: Ginette Gottswiller
2-2:45 p.m. – Angus Media/I Am Angus: Eric Grant
3 p.m. – Closing: Tom Field and ASCI Department Head

Registration is $75 per person, and includes meals and educational materials. Registration forms are due Aug. 29 and can be submitted online or mailed to Jaclyn Clark at the American Angus Association, 3201 Frederick Ave., Saint Joseph, MO 64506. Late and walk-in registrations will not be accepted.

A block of hotel rooms are reserved at the Holiday Inn located at 141 N. Ninth St. in Lincoln, Neb., for $119 plus tax until Sept. 1.



Rural Mainstreet Index Below Growth-Neutral for 12th Straight Month

The Creighton University Rural Mainstreet Index rose for August, but remained below growth neutral for the 12th straight month, according to the monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy.  

Overall: The index, which ranges between 0 and 100 increased to 41.1 for August from July’s weak 39.8. This month’s reading is well off the index for August 2015 when it stood at 50.0. 

“Over the past 12 months, farm prices have fallen by 11 percent, cattle prices are off by 22 percent, and grain prices are down by 20 percent.  Weak agricultural commodity prices are pushing farm income lower and sinking the overall Rural Mainstreet economy,” said Ernie Goss, Jack A. MacAllister Chair in Regional Economics at Creighton University's Heider College of Business.

Farming and ranching: The farmland and ranchland-price index for August slumped to 25.6 from 31.3 in July. This is the 33rd straight month the index has languished below growth neutral 50.0.

This month, bankers estimated, on average, farmland prices would fall by another 6.9 percent over the next 12 months. However, as in previous months, there is a great deal of variation across the region in the direction and magnitude of farmland prices, with prices growing in some portions of the region.

Bank CEOs reported an average annual cash rent per acre of $252 with almost one-fourth of bankers detailing annual cash rents exceeding $299.

The August farm equipment-sales index increased to 14.8 from 10.7 in July. “Weakness in farm income and low agricultural commodity prices continue to restrain the sale of agriculture equipment across the region,” said Goss.

Nebraska: The Nebraska RMI for August advanced to regional high of 64.5 from 51.5 in July. The state’s farmland-price index sank to 43.5 from July’s 49.3. Nebraska’s new-hiring index grew to 59.2 from 55.2 in July. Nebraska job growth over the last 12 months; Rural Mainstreet, 1.6 percent; Urban Nebraska, 1.1 percent.

Iowa: The August RMI for Iowa advanced to a strong 58.3 from July’s 51.9. Iowa’s farmland-price index for August slumped to 40.5 from 49.7 in July. Iowa’s new-hiring index for August expanded to 58.1 from July’s 55.4. Iowa job growth over the last 12 months; Rural Mainstreet, 1.1 percent; Urban Iowa, 1.7 percent.

Each month, community bank presidents and CEOs in nonurban agriculturally and energy-dependent portions of a 10-state area are surveyed regarding current economic conditions in their communities and their projected economic outlooks six months down the road. Bankers from Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota and Wyoming are included. The survey is supported by a grant from Security State Bank in Ansley, Neb.

This survey represents an early snapshot of the economy of rural agriculturally and energy-dependent portions of the nation. The Rural Mainstreet Index (RMI) is a unique index covering 10 regional states, focusing on approximately 200 rural communities with an average population of 1,300. It gives the most current real-time analysis of the rural economy. Goss and Bill McQuillan, former chairman of the Independent Community Banks of America, created the monthly economic survey in 2005.



Missouri, Iowa, Kansas, Nebraska Leaders Talk Farm Economy

Missouri Department of Agriculture's Richard Fordyce and University of Missouri Extension's Dr. Scott Brown hosted a Four-State Economic Discussion with state leaders from Missouri, Iowa, Kansas and Nebraska in St. Joseph, Mo. The meeting was a unique opportunity for collaboration and allowed each state to report feedback gathered from producers and agriculture finance experts in their respective states. This feedback will ultimately assist in setting outreach and policy priorities.

"Our meeting this week was both productive and unprecedented," Missouri Director of Agriculture Richard Fordyce said. "Having state department representatives and university extension leaders from each of the states all in one room resulted in key takeaways that will ensure agriculture continues to thrive."

Other state leaders in attendance included Loyd Wilson, Missouri Department of Agriculture deputy director; Rob Kallenbach, University of Missouri; John Lawrence and Chad Hart, Iowa State University; Chad Bontrager, Kansas Department of Agriculture deputy secretary; Janel Koons, Kansas State University Research and Extension; Mat Habrock, Nebraska Department of Agriculture assistant director and Dave Aiken, University of Nebraska.

"We've been told time and time again to support international trade," said Chad Bontrager, Kansas Department of Agriculture. "This meeting highlighted that need even further with the discussion around a historic supply and demand situation."

The meeting also included presentations by Sterling Liddell, Rabo AgriFinance, and James Glueck, U.S. Senate Committee on Agriculture, Nutrition and Forestry.

"I applaud the Kansas, Missouri, Iowa, and Nebraska state departments of agriculture for proactively engaging in this discussion," Glueck said. "We have a responsibility to educate folks on agriculture, when times are tough and when times are good."

Common themes that emerged from the discussion included the importance of encouraging international trade, supporting younger generations' efforts to return to the farm and helping producers recognize break-even points and profit margins.

In July 2016, Director Fordyce and department staff toured the state to listen to farmers, ranchers and community leaders about their take on the current financial situation and current opportunities and challenges facing the industry. Nearly 400 people came to discuss the latest topics in Missouri agriculture. Similar sessions were hosted by departments of agriculture and university extension offices in Iowa, Kansas and Nebraska.



Corn: It’s Everything at the Iowa State Fair This Friday

Iowa Corn is proud to sponsor Iowa Corn Day at the Iowa State Fair on Friday, August 19. This year’s activities will include:

    A family-friendly scavenger hunt where fair goers locate five stations scattered throughout the fairgrounds, take a selfie and post them to social media using #CornItsEverything. If you complete three of the five stations located throughout the fairgrounds, you will receive a free Iowa Corn t-shirt*! If you complete all five stations you can also be entered into a drawing to win a set of tickets to KISS at the Grandstands on Friday, August 19 or two tickets to the Iowa Corn Cy-Hawk Series Football game on September 10, 2016 in Iowa City. Savenger hunt cards will be handed out at the main entrances or they will be available at the Iowa Corn booth on the Grand Concourse.

    New to the fair is the highly-interactive Iowa Corn Mobile Education trailer. The 40-foot state-of-the-art mobile display brings to life Iowa Corn’s successful “CORN: IT’S EVERYTHING” campaign. It takes visitors on a multi-media journey showing how Iowa Corn farmers conserve their land while growing corn that’s used for food, feed, fuel and the 4,000 other products made from you guessed it, corn. The outside of the trailer depicts a multi-generational farm family looking out over a cornfield. This represents the 96 percent of Iowa farms that are family-owned.

There are five main themes included in the display:

        The Iowa Corn Farmer: Includes video testimonials from farmers discussing their different production practices and explains the difference between sweet corn versus field corn.

        It’s Fuel: Discusses how homegrown ethanol is good for Iowans by reducing the cost of fuel and creating jobs in our state. It explains how ethanol is good for America by reducing our dependence on foreign oil and how it’s good for the environment by reducing greenhouse emissions. AND finally, how it’s good for the performance of our vehicles with Indy Car and NASCAR having logged several million miles using ethanol. This section also allows visitors to find out if your vehicle is E15 and E85 friendly and provides you a list of the closest stations to home or work.

        It’s Feed: Highlights the importance of the livestock industry to the sustainability of the corn industry and showcasing Iowa Corn’s many partners in the livestock sector.

        It’s Food: Includes an ask a farmer about your food video testimonials and demonstrating some of the many products made of corn.

        It’s Everything: You would be surprised the many products made from corn. This section walks you through the four side to every corn kernel including starch, fiber, protein and oil. Don’t forget to take a selfie with the many products made from corn and post it to your social media channels.

Throughout the fair, Iowa Corn will also have a presence at the Little Hands on the Farm Exhibit and on August 20 in the Ag Building.



USDA to Fund Agricultural Wetland Mitigation Banks in 10 States

Natural Resources Conservation Service (NRCS) Chief Jason Weller today announced that the U.S. Department of Agriculture is investing more than $7 million to fund agricultural wetland mitigation banks in 10 Midwest and Northern Great Plain states.

The Wetland Mitigation Banking Program, created by the 2014 Farm Bill, helps states, local governments or other qualified partners develop wetland mitigation banks that restore, create, or enhance wetland ecosystems, broadening the conservation options available to farmers and ranchers so they can maintain eligibility for other USDA programs.

“Wetlands are vital and dynamic ecosystems that provide important functions—from groundwater recharge to prime wildlife habitat,” Weller said. “USDA’s new Wetland Mitigation Banking Program will ensure meaningful wetland restoration and protection on the landscape while expanding options for farmers and ranchers.”

Wetland mitigation banking uses a market-based approach to restore, create, or enhance wetlands in one place to compensate for unavoidable impacts to wetlands at another location. Banked wetland mitigation credits are made available after the restoration, creation, or enhancement of previously converted wetlands protected by a conservation easement. Wetland mitigation requires the replacement of all lost wetland functions, values, and acres.

Today’s announcement includes funding for eight new wetland mitigation banks, and will help two existing banks expand to meet the needs of agriculture operations. Below is a list of impacted states and selected projects:
    Georgia – Corblu Ecology Group, LLC
    Illinois – Magnolia Land Partners, LLC
    Iowa – Iowa Agricultural Mitigation, Inc.
    Michigan – Michigan Quality of Life Agencies (Department of Natural Resources, Department of Agriculture and Rural Development and Department of Environmental Quality)
    Minnesota – Minnesota Board of Water and Soil Resources
    Missouri – Minton Environmental Consultants, LLC,
    Nebraska – Westervelt Ecological Services, LLC
    North Dakota – Dakota Wetland Partners, LLC
    Ohio – North Coast Regional Council of Park Districts
    South Dakota – Dakota Wetland Partners, LLC

A complete list of the selected, multi-year projects with short descriptions is available on the wetland mitigation banking page.

This announcement follows a request for proposals earlier in 2016. USDA sought projects that would support local efforts to conserve wetlands in geographic areas where the potential for agricultural wetland conversion is high. USDA also considered the applicants’ experience with wetland mitigation banking and their ability to provide wetland credits within two years.



Animal rights activists encouraged to be more aggressive in mission to “destroy animal agriculture”

The Animal Agriculture Alliance released a report today detailing observations from the Animal Rights National Conference, hosted July 7-10 in Los Angeles, Ca. by the Farm Animal Rights Movement. According to conference organizers, more than 1,700 individuals were present at the event, described as “devoted to advancing the vision of animal rights.”

“We are alarmed by the statements animal rights movement leaders made at this conference encouraging activists to be increasingly aggressive in seeking liberation for farm animals,” said Kay Johnson Smith, Alliance president and CEO. “The speakers made their end goal – ending animal agriculture and securing a vegan society – very clear. If you have a vested interest in producing, processing or selling meat, poultry, eggs and dairy, you need to read this report and understand the forces our industry is up against.”

Various conference speakers offered a consistent message – the animal rights movement is pushing for an end to the consumption of animal products, and they believe they are progressing toward that goal. “We are trying to destroy animal agriculture,” said Wayne Hsiung, Direct Action Everywhere. Television personality Simone Reyes stated, “we’re praying on emotions to push our vegan agenda,” likening animal agriculture to slavery and murder. Lisa Levinson, sustainable activism campaign manager for In Defense of Animals clearly outlined her organization’s mission: “to liberate animals” and “create vegan communities.”

Animal rights activist organizations have historically targeted large-scale, modern operations (calling them “factory farms”), but several conference speakers urged attendees to broaden their scope. Karen Davis, founder and president of United Poultry Concerns told the audience to target the industry as a whole, suggesting they “stop saying “stop factory farming” and say “stop all animal farming.”” Mike Wolf, investigations manager for Compassion Over Killing, echoed this sentiment, commenting, “Humane meat? There is no such thing.”

Activists in attendance were encouraged to amplify their efforts, with David Coman-Hidy, executive director of The Humane League, stating, “we cannot lose if we keep our eyes on the prize and are relentless in our fight for animals.” Coman-Hidy gave tips for pressuring brands and companies, telling attendees to “find a vulnerable target” and “assemble an overwhelming force to utilize from day one.” “The crueler it is, the quicker the fight is over,” he concluded.

A final concerning trend was a focus on engaging with youth and college students. “By focusing on the youth, we are able to target the age group who is trying new things,” said Jon Camp, director of outreach, Vegan Outreach. Nathan Runkle, president and founder of Mercy For Animals, said the animal rights movement is driven by the young. Vic Sjodin, Vegan Outreach, explained the reason behind making this age group a priority, stating, “People in college are questioning their values and able to make food decisions for the first time.”

Also speaking at the conference were: Alex Hershaft, president, Farm Animal Rights Movement; Michael Webermann, executive director, Farm Animal Rights Movement; Nick Cooney, vice president, Mercy For Animals and managing trustee, New Crop Capital (former spokesperson for Stop Huntingdon Animal Cruelty); Steve Hindi, founder and president, Showing Animals Respect and Kindness; Erica Meier, executive director, Compassion Over Killing and Paul Shapiro, Kristie Middleton, Kenny Torrella and Ken Botts – all with The Humane Society of the United States.

The 2016 Animal Rights National Conference Report, which includes personal accounts of speaker presentations and general observations, is available to Alliance members in the Resource Library on the Alliance website. The Alliance also released a report earlier this summer from the Humane Society of the United States’ Taking Action for Animals Conference which is accessible to members on the Alliance website.



USGC Welcomes U.S. Corn Back to Malaysia

Following a five-year hiatus from Malaysian shores, the U.S. Grains Council (USGC) was recently on hand to welcome back the first vessel of corn from the United States since the historic drought in 2012/2013. The vessel, which was loaded from the Pacific Northwest, was sold from one USGC member to another, destined for a consortium of several key USGC allies.

“This is an exciting opportunity,” said Kevin Roepke, USGC South and Southeast Asia regional director. “We're able to build partnerships that help this bit of trade happen, which is a big win for Malaysia and U.S. producers.”

The geared handimax, the Yasa Gulten, berthed over the weekend in Port Kelang after initially unloading in Southern Malaysia’s Pasir Gudang, immediately across from Singapore. It will ultimately venture east to Vietnam.

The vessel was seen by the industry as a “trial run” to retest U.S. quality following significant engagement from the Council to encourage readoption of U.S. grains. In particular, USGC's quality reports issued each year to offer in-depth information to customers about the current year’s crop helped alleviate objections and some nervousness about U.S. corn quality.

According to operations employees, the recently-arrived vessel came in around 1 percent higher in moisture and with similar rates of broken corn as South American origin corn. High moisture has always been a concern for U.S. origin corn in Southeast Asia because hot and humid weather conditions make even short-term storage challenging. The cargo was reportedly loaded at roughly 13.7 percent and arrived at approximately 14.7 percent, close to the threshold of 15 percent.

The Council will continue to work with Malaysian buyers to help answer additional questions as they use the corn and, in time, pave the way for future sales.

“Buyers want the best quality and we work hard to answer their questions and help them have confidence in buying from the United States,” Roepke said.

Should the market deem the quality comparable to South American-origin corn, it should signal a turning point for the Malaysian corn market, with the South American crop under pressure this year and the United States expecting an abundant harvest.

Particularly if U.S. corn comes in at the high-quality expected, the U.S. could be receiving more and more business from Malaysia and Southeast Asia in general.



The Cattle Futures Market Descends into Chaos

Wild swings in the cattle futures market have prompted some traders to call it "the meat casino."

In response, the world's largest futures exchange has refused to list new contracts, leaving ranchers with fewer tools to hedge the $10.9 billion market. CME Group Inc. said that is because trading of physical cattle has become so scant that the futures market can't get the signals it needs to set prices.

"It's madness. The market makes major moves for no reason," said Blake Albers, a cattle feeder in Wisner, Neb.

The decision to delay new contract listings is the culmination of alarms raised by the exchange and industry groups this year that problems in the physical marketplace have affected futures -- a highly unusual meltdown in a market that has attracted more speculators.

Few producers complained as cattle prices surged to record highs in 2014 and early 2015. But as prices this summer sank to five-year lows, financial strain on the industry has highlighted the extent of the problem. Revenue from cattle sales is forecast to drop 3.9% this year to $73.6 billion, after falling 5.7% in 2015, according to U.S. Department of Agriculture data.

Live-cattle futures climbed as high as $1.4155 a pound before free-falling to $1.1580 over seven weeks this spring. That represents a more than $10,000 drop in income for a single contract. Many producers have lost money as prices tumbled to a five-year low of $1.07525 a pound this summer.

"Guys like me who have been around a long time aren't putting as many positions on," said Dan Norcini, an independent livestock-futures trader in Coeur d'Alene, Idaho. "It's just not worth the risk anymore, when there's no rhyme or reason to these price swings."

Through July, futures volume fell 1.9% compared with the same period in 2015, and was down 9.7% from 2014, according to CME data.

Each futures contract represents the obligation to buy or sell 40,000 pounds, or around 35 head, of cattle. While few traders actually deliver or receive livestock, they look to the price of cattle sold at auctions and at feedlots to keep futures prices anchored to the real world. But structural changes to the way cattle are bought and sold have made it harder to see physical market prices.

For nearly a century, meatpackers and producers would haul animals to stockyards and auction barns, to physically buy and sell thousands of cattle almost daily for cash. But over time they found it inefficient and expensive to travel miles with cattle in tow to barter over pennies and nickels per pound, so many buyers and sellers gave up negotiating each day.

The number of participants negotiating prices started to decrease in the 1980s and today, only small number of cash trades -- which take place just once or twice a week -- serve as a proxy for the base price used by the rest of the industry. Most of the cattle delivered to slaughter plants today are priced using a formula that incorporates the cash market value as a base, plus or minus premiums and discounts.

"Someone sells 40 head in Iowa and it has the potential to revalue all the cattle in the nation," Mr. Albers said.

The deals that do take place between cash market buyers and sellers frequently end up being completed on Friday after the 2:05 p.m. ET close of the futures market. That means financial traders spend most of the week with limited up-to-date data.

"There is very little underlying information to use," said David Lehman, CME's managing director of commodity research. The CME has listed only one live-cattle contract since March and it is set to expire in October 2017.

The CME has formed a working group with cattlemen to discuss fixes, including ways to increase the number of cash traders. The exchange shortened trading hours for the livestock futures contracts in February to confine market activity to the daytime, when liquidity is higher, after ranchers complained that speculators had too great an impact on prices in the evening trading.

"Every aspect of the cattle futures contract is under review to see if there's a way to redesign so it's a more effective tool for risk management," Mr. Lehman said.

The failure to list contracts after October 2017 is a problem for ranchers buying calves this summer. They typically need around 18 months to grow to slaughter weight, meaning ranchers are exposed to possible price swings in the 2017 winter.

Steve Sunderman, a partner at a feedlot in Norfolk, Neb., recalls watching cattle futures prices earlier this year rise and fall by more than one cent in just 15 minutes, unprecedented leaps in a market more accustomed to daily moves of fractions of a penny. The swings made him uneasy about locking in a hedge for his cattle on a Friday, when prices had climbed over $1.15 a pound only to settle at $1.12975, thinking the market would likely climb further.

"You lose confidence in your decision," he said.

Some in the cattle industry blame high-frequency traders who can place or receive orders more quickly, and with more money, than bona fide commercial hedgers -- often located in rural ranching communities.

But CME said that opening up markets to a diverse group of investors, including hedge funds and algorithmic traders, adds liquidity to products like cattle futures, which tend to be more thinly traded than gold or oil. Just 10% of the total volume in live-cattle futures came from high-frequency trading in 2015 for which the latest data is available, the exchange said.

"We need to figure out why the cattle market can go from $1.30 in one week to $1.15, when we haven't added more cattle to the marketplace," said Ed Greiman, an Iowa farmer who sells about 100 cattle a week and is leading a cattle-marketing committee at the National Cattlemen's Beef Association.

The solution will have to involve addressing the level of activity in the barns and feedlots, according to cattle industry groups and the exchange.

Some producers are trying to find their own solutions. Superior Livestock Auction LLC, an Oklahoma City-based livestock-marketing firm, piloted a video auction program to broker sales of slaughter-ready animals that would mirror sales in the cash markets, showing bids and offers in the middle of the week. Interest in streaming the auction online has been so strong that it has crashed Superior's website in the most recent sales.

"The hope is to add a transparent venue for price discovery," said Jordan Levi, a cattle feeder based in Oklahoma City who spearheaded the initiative. "It's not a playground. This is U.S. agriculture, and futures should be a risk management tool."



Land O’Lakes Animal Milk Products certifies automatic calf feeder experts

Land O’Lakes Animal Milk Products Co., has invested in automatic calf feeding certification and training programs to equip its sales and service personnel with the latest information and skills to advise clients using automatic calf feeders.

“As more dairies embrace automatic calf feeders, our staff will be prepared to assist them in developing and managing a successful system and nutrition program,” says Tom Earleywine, Ph.D., director of nutritional services for Land O’Lakes Animal Milk Products Company. “Integrating an automatic calf feeder into your calf program requires a systematic approach and a higher level of management, as well as proper consideration and planning.”

Land O’Lakes Animal Milk Products, who has almost 10 years of research with automatic calf feeders, developed a training program with German-based Förster-Technik, a manufacturer of automatic calf feeders. The certification and training covers programming, operating and maintaining automatic calf feeder systems, as well as managing the nutrition systems to do what is best for calves.

“Because automatic calf feeders provide round-the-clock access to liquid nutrients, they closely mimic the feeding patterns of calves nursing their dams. This ready supply of nutrients also helps promote full potential feeding -- delivering at least 2.5 pounds of milk solids in 8 to 12 liters of water per day,” notes Earleywine. “A growing body of research shows full potential feeding of pre-weaned calves leads to better feed efficiency, lower age at first calving and higher first-lactation milk production as animals mature.”

A cornerstone of Land O’Lakes Animal Milk Products training efforts is the certification of both Land O’Lakes Animal Milk Products national account managers and Purina Animal Nutrition’s regional calf and heifer specialists. These professionals are available throughout the United States. You can find a new interactive map to contact your local representative by visiting www.lolmilkreplacer.com.

“Our team is here to help you at every stage – whether you are considering an automatic calf feeder or already own one, they are prepared to help you select a nutrition and management plan to match your goals,” says Earleywine.