Thursday August 4 Ag News

NEBRASKA 2015 FARM PRODUCTION EXPENDITURES UP 3 PERCENT

Farm and Ranch Production Expenditures for Nebraska totaled $22.7 billion in 2015, up 3 percent from a year earlier, according to USDA’s National Agricultural Statistics Service. Livestock expenses, the largest expenditure category, at $6.77 billion, increased 17 percent from 2014. Feed, the next largest expense category, at $2.65 billion, increased 22 percent from 2014. Rent, the third largest total expense category at $2.59 billion, decreased 1 percent from 2014.

Livestock expenses accounted for 30 percent of Nebraska’s total production expenditures. Feed accounted for 12, Rent 11, and Farm Services 8 percent.

The total expenditures per farm or ranch in Nebraska averaged $466,940 in 2015, up from $451,527, an increase of 3 percent. The Livestock expense category was the leading expenditure, at $139,014 per operation, more than 6 times the national average. Feed expenditures, at $54,415 per operation, were nearly 2 times the national average. The average Rent expenditure, at $53,183, was over 3.5 times the national average. Farm Services expenditures per operation, at $39,220, were nearly 2 times the national average.

These results are based on data from Nebraska farmers and ranchers who participated in the Agricultural Resource Management Study conducted by USDA’s National Agricultural Statistics Service. Producers were contacted in January through April to collect 2015 farm and ranch expenses. This is the eleventh year of state level information published for Nebraska from the Agricultural Resource Management Study.




IOWA 2015 FARM PRODUCTION EXPENDITURES DOWN 13 PERCENT

Iowa farm production expenditures totaled $27.8 billion in 2015, according to the latest USDA, National Agricultural Statistics Service – Farm Production Expenditures Annual Summary report. This was 13 percent below the 2014 total expenditures.

Feed expense, which fell 16 percent to $5.19 billion, represented the largest single production expense for Iowa farmers in 2015, accounting for 19 percent of the total. Livestock and Poultry purchases, which fell 7 percent to $5.12 billion, were the second largest expense, and accounted for 18 percent of total expenditures. Rent expense fell 5 percent to $3.97 billion, and accounted for 14 percent of the total.

The largest percentage decreases from last year were for Other Farm Machinery (down 37%), Tractors and Self-propelled Machinery (down 34%), and Farm Improvements (down 31%). Truck and Auto purchases (down 30%) and Miscellaneous Capital expenses (down 25%) also decreased significantly from 2014. Crop input expenditures were also lower, as Seeds and Plants dropped 8 percent to $2.01 billion, Agricultural Chemicals fell 8 percent to $990 million, and Fertilizers, Lime, and Soil Conditioners were down 11 percent to $2.04 billion.



2015 United States Total Farm Production Expenditure Highlights

Farm Production Expenditures in the United States are estimated at $362.8 billion for 2015, down from $397.6 billion in 2014. The 2015 total farm production expenditures are down 8.8 percent compared with 2014 total farm production expenditures. All but two expenditure items decreased from the previous year.

The four largest expenditures at the United States level total $177.3 billion and account for 48.9 percent of total expenditures in 2015. These include feed, 16.1 percent, livestock, poultry and related expenses, 12.5 percent, farm services, 11.5 percent, and labor, 8.8 percent.

In 2015, the United States total farm expenditure average per farm is $176,181 down 8.0 percent from $191,500 in 2014. On average, United States farm operations spent $28,408 on feed, $22,047 on livestock, poultry and related expenses, $20,202 on farm services, and $15,443 on labor. For 2014, United States farms spent an average of $30,680 on feed, $21,818 on farm services, $21,722 on livestock, poultry and related expenses, and $16,472 on labor.

Total fuel expense is $12.3 billion. Diesel, the largest sub component, is $8.0 billion, accounting for 65.0 percent. Diesel expenditures are down 24.5 percent from the previous year. Gasoline is $2.3 billion, down 25.8 percent. LP gas is $1.4 billion, down 34.1 percent. Other fuel is $650 million, down 31.6 percent.

The United States economic sales class contributing most to the 2015 United States total expenditures is the $1,000,000 - $4,999,999 class, with expenses of $119.2 billion, 32.8 percent of the United States total, down 11.8 percent from the 2014 level of $135.1 billion. The next highest is the
$5,000,000 and Over class with $81.3 billion, down from $102.0 billion in 2014.

In 2015, crop farms expenditures decreased to $180.3 billion, down 10.9 percent, while livestock farms expenditures decreased to $182.6 billion, down 6.6 percent. The largest expenditures for crop farms are rent at $25.4 billion (14.1 percent of total), farm services at $23.9 billion (13.3 percent), and labor at $22.6 billon (12.5 percent). Combined crop inputs (chemicals, fertilizers, and seeds) are $52.8 billion, accounting for 29.3 percent of crop farms total expenses. The largest expenditures for livestock farms are feed at $57.1 billion (31.3 percent of total), livestock, poultry and related expenses at $43.2 billion (23.7 percent), and farm services at $17.7 billion (9.7 percent). Together, these line items account for 64.7 percent of livestock farms total expenses. The average total
expenditure for a crop farm is $189,710 compared to $164,591 per livestock farm.

The Midwest region contributed the most to United States total expenditures with expenses of $113.1 billion (31.2 percent), down from $124.0 billion in 2014. The other regions, ranked by total expenditures, are Plains at $93.5 billion (25.8 percent), West at $74.9 billion (20.6 percent), Atlantic
at $44.2 billion (12.2 percent), and South at $37.1 billion (10.2 percent). The Midwest decreased $11.0 billion from 2014, which is the largest regional decrease.

Combined total expenditures for the 15 estimate states is $238.1 billion in 2015 (65.6 percent of the United States total expenditures) and $257.9 billion in 2014 (64.9 percent). California contributed most to the 2015 United States total expenditures, with expenses of $35.5 billion, (9.8 percent). California expenditures are down 12.6 percent from the 2014 estimate of $40.7 billion. Iowa, the next leading state, has $27.8 billion in expenses, (7.6 percent). Other states with more than $20 billion in total expenditures are Texas with $24.1 billion, Nebraska with $22.7 billion, and Kansas with $20.2 billion.



HAY & FORAGE HOTLINE BRINGS SELLERS AND BUYERS TOGETHER

Nebraska Department of Agriculture Director Greg Ibach is encouraging Nebraska producers with hay surpluses and pasture for rent, to register as a seller on the department’s online Hay & Forage Hotline service.

“Last year we had an outstanding alfalfa and prairie hay crop throughout much of Nebraska and early signs indicate another good crop this year,” said Ibach. “With drought conditions worsening in some other livestock producing areas of the country, this would be a good time for producers to register on the Hay & Forage Hotline. Buyers will also be looking for pastureland and corn stock ground to rent.”

According to USDA’s National Agricultural Statistics Service, Nebraska had a 16 percent increase in hay stocks from the previous year. As of May 1 of this year, hay stocks for the state were put at 1.45 million tons. The latest crop condition report rated the current alfalfa condition in the state at 77 percent good to excellent.

The most recent National Drought Monitor indicates extreme drought conditions in parts of northeast Wyoming and southwest South Dakota. Moderate drought and abnormally dry conditions are expanding in that region and now includes much of the Nebraska panhandle.

The Hay & Forage Hotline can be accessed on the Nebraska Department of Agriculture website at www.nda.nebraska.gov. Sellers can register by filling out an online form on the NDA website or by calling 800-422-6692.



HAYING WET MEADOWS THAT ARE TOO WET
Bruce Anderson, NE Extension Forage Specialist

               The extra rain received on rangelands this year has been mostly welcome.  But it has raised havoc with making hay, especially on wet meadows.

               Wet meadows are a great resource.  Their natural subirrigation enables them to reliably grow many of the plants cut for winter hay on many ranches.

               This year, however, many of these meadows have had too much of a good thing – rain.  Not only have frequent rain showers made it difficult to put up the hay, many meadows are so wet it’s been impossible to even get in to cut the hay.

               So what do you do?  I suppose you can continue to wait until the ground dries and firms up enough to drive haying equipment over it.  But the quality of this late cut hay isn’t going to be very good and the cost of putting it up will be high.  And for many of you, much of your summer hay crew will soon go back to school.

               Maybe a better idea would be to winter graze the meadows instead of cutting hay.  You might need to build some temporary fence and figure out how cattle will be watered, but there are several advantages to this approach.  First, it saves you the time and expense of cutting and feeding hay.  Second, it reduces the risk of damaging the meadow with heavy equipment running over it when it’s too soft.  Cattle won’t cause damage if you graze only when the ground is firm or frozen.  And finally, research on both meadows and uplands has shown that dry cows do well when winter grazing, often needing just a little protein supplement to assure good fiber digestion and healthy calves.

               With all these advantages, I wouldn’t be surprised if some of you ranchers who try it decide to do at least some of it on a regular basis.

 

RESEARCH: EASTERN REDCEDAR MAY AFFECT SCHOOL LAND TRUST

A new article authored by agronomy and horticulture students at the University of Nebraska-Lincoln indicates that the expansion of eastern redcedar into grasslands reduces grazing capacity and therefore could reduce funding available for public school education in Nebraska.

   Eastern redcedar is a tree native to Nebraska. Historically, cedar windbreaks have been used around houses and as protection for calves and cattle from spring storms. However, eastern redcedar has been invading into areas where it was previously absent or rare. When this happens, it can threaten livestock production, grassland wildlife, water resources as well as public safety from wildfires.

   Dirac Twidwell, assistant professor in the Department of Agronomy and Horticulture and contributing author on the report, said that in multiple regions of the Great Plains a 75 percent reduction in livestock potential has been observed once grassland is fully converted to juniper woodland. In response, the Nebraska Cattleman’s Association recently identified eastern redcedar as “an increasingly serious ecological and economic issue.”

   “As a rare plant, eastern redcedar has benefits, but plantings serve as a way for cedar trees to expand into new environments,” Twidwell said. “Once eastern redcedar trees become widely dominant, society bears the consequences, even in terms of funding available for public schools.”

   Over the past six years, the School Land Trust, known formerly as the Board of Educational Lands and Funds, has increased spending to control eastern redcedar from $175,000 to $400,000 annually. The School Land Trust serves as a trustee of the lands contributed to the state in 1867 by the federal government. The School Land Trust, the largest landowner in the state, receives no state funding, pays county real estate taxes and all of its net revenue goes to K-12 public schools.

   The trust owns and manages nearly 1.26 million acres of agricultural land in Nebraska. More than 950,000 acres of trust land are grasslands that generate income for public schools from grazing leases. In the last 15 years, the trust has contributed $573 million to K-12 public schools in Nebraska.

   To limit major economic losses resulting from eastern redcedar invasion on their land, the board is proposing to stop planting cedar trees and to remove existing seed sources, like windbreaks or female trees. The trust, like other landowners, also is increasing steps to control cedar from spreading. Removing the source of the problem and finding long term methods of controlling the spread of eastern redcedar onto grazing land is a key priority of the School Land Trust. By controlling the spread of eastern red cedar, the School Land Trust will maintain profitable grazing leases and revenue can focus on its intended purpose of funding K-12 public schools.

   The article urges Nebraskans to become informed of the consequences of the spread of eastern redcedar. In 2014, the Nebraska Conservation Roundtable, consisting of multiple state, federal and university experts, listed eastern redcedar as one of the greatest threats to natural resource conservation in Nebraska.

   The article, which has been released in Nebraska Extension's BeefWatch, was authored by students in the ecosystem monitoring and assessment course, along with Craig Allen from the Nebraska Cooperative Fish and Wildlife Research Unit. The Nebraska Board of Educational Lands and Funds also provided input. For more information, visit http://newsroom.unl.edu/announce/beef/5577/31325.



ICA Receives Conservation Collaboration Grant

The Iowa Cattlemen’s Association is a recent recipient of the 2016 Iowa Natural Resources Conservation Service (NRCS) Conservation Collaboration Grants. Grants were awarded to projects that leveraged NRCS resources, addressed local natural resource issues, encouraged collaboration and developed state- and community-level conservation leadership. ICA’s Conservation Collaboration Grant will be used to facilitate the Stewards of the Land project.

According to the ISU Leopold Center for Sustainable Agriculture, when grasslands are managed with a focus on the regenerative crop, cattle not only reduce overall GHG emissions, but also facilitate increased soil carbon sequestration, reduce environmental damage, and create habitat for various wildlife and pollinator species. 

In an effort to restore Iowa’s grasslands, the Stewards of the Land project will help farmers and ranchers make positive changes on their farm, such as enhancing current grassland management practices and  transitioning current crop ground and expiring CRP contract acres into working grasslands. According to the Iowa Nutrient Reduction Strategy, perennial cover and grazed pastures are estimated to reduce Nitrate loss by 85% and Phosphorus loss by 60%. 

Allocating additional acres to grasslands requires financial investment and technical expertise. Through the Stewards of the Land project, ICA will hire a Grazing Advisor that will work to educate Iowa cattlemen and encourage environmentally conscious  decisions when it comes to land management.  Through technical assistance, the ICA Grazing Advisor will work with area cattlemen to increase the productivity of current grasslands, while encouraging transformation of additional acres.

At this time the Iowa Cattlemen’s Association is seeking applicants for the ICA Grazing Advisor position. Those interested should contact the ICA office at 515.296.2266, or view the job application on the ICA website at www.iacattlemen.org. Applications are due August 30.  

The Iowa Cattlemen’s Association is the lead organization for the Stewards of the Land project and sincerely appreciates the support of project partners including the Iowa Cattlemen’s Foundation and Prairie Creek Seeds.



Kansas State University's CEEZAD receives $2.3 million grant for vaccine research

The Center of Excellence for Emerging Zoonotic and Animal Diseases, or CEEZAD, at Kansas State University will use a $2.3 million federal grant to study the safety in livestock of a newly developed vaccine to protect humans from the Ebola Zaire virus.

The grant is from the Defense Threat Reduction Agency in the U.S. Department of Defense through a collaboration with the commercial firm NewLink Genetics. A $100,000 matching contribution from the state of Kansas' NBAF Transition Funds brings the total project funding to $2.4 million.

The university's Biosecurity Research Institute will be used to conduct the project.

The vaccine is called VSV-ZEBOV, which is an acronym for Vesicular Stomatitis Virus-Zaire Ebola Virus. The virus can infect cattle and its clinical presentation is identical to the foot-and-mouth disease virus and the Zaire strain of Ebola virus — the main strain that causes the severe, often fatal, Ebola hemorrhagic fever disease in humans. The virus is thought to be transmitted to people from an as-yet unidentified wild animal reservoir, and then spreads in the human population through human-to-human transmission. The average disease case fatality rate is around 50 percent, but has varied from 25 percent to 90 percent in various outbreaks.

Jürgen Richt, regents distinguished professor at Kansas State University and director of the Center of Excellence for Emerging and Zoonotic Animal Diseases, will be the principal investigator for the project.

"We are very excited to begin research to test the safety of this vaccine, the only efficacious Ebola virus vaccine available," Richt said. "As the world saw with the deadly 2014 outbreak in West Africa, Ebola is one of the most serious emerging zoonotic threats to humans."

Richt also expressed appreciation for the contribution from the state's NBAF fund for the work. NBAF stands for the National Bio and Agro-defense Facility, which is the nation's premiere animal disease research facility that is currently under construction adjacent to the Kansas State University campus in Manhattan.

Zoonotic diseases are those capable of being transmitted from animals to humans and vice versa. It is thought that Ebola virus, which was first identified in 1976, is introduced into the human population through close contact with infected animals such as chimpanzees, gorillas, bats, monkeys, and maybe antelope and porcupines. It is also possible that the Ebola virus can be transmitted through sexual contact involving already-infected persons. The Zaire species of Ebola virus is one of five species that have been identified, and has been associated with large disease outbreaks in Africa — including the 2014 West African outbreak, which infected an estimated 28,600 people and resulted in more than 11,000 deaths.

No infectious Ebola virus will be used in the Biosecurity Research Institute during the studies. The work will provide information to supplement the overall safety of the VSV-ZEBOV vaccine.



USDA Announces Safety Net Assistance for Milk Producers Due to Tightening Dairy Margins

Agriculture Secretary Tom Vilsack today announced approximately $11.2 million in financial assistance to American dairy producers enrolled in the 2016 Margin Protection Program for Dairy (MPP-Dairy). The payment rate for May/June 2016 will be the largest since the program began in 2014. The narrowing margin between milk prices and the cost of feed triggered the payments, as provided for by the 2014 Farm Bill.

"We understand the nation's dairy producers are experiencing challenges due to market conditions," said Vilsack. "MPP-Dairy payments are part of a robust, comprehensive farm safety net that help to provide dairy producing families with greater peace of mind during tough times. Dairy operations enrolled in the 2016 MPP-Dairy program will receive approximately $11.2 million this month. I want to urge dairy producers to use this opportunity to evaluate their enrollment options for 2017, as the enrollment period is currently scheduled to end Sept. 30, 2016. By supporting a strong farm safety net, expanding credit options and growing domestic and foreign markets, USDA is committed to helping America's dairy operations remain successful."

Dairy producers who enrolled at the $6 through $8 margin trigger coverage level will receive payments. MPP-Dairy payments are triggered when the national average margin (the difference between the price of milk and the cost of feed) falls below a level of coverage selected by the dairy producer, ranging from $4 to $8, for a specified consecutive two-month period. All final USDA prices for milk and feed components required to determine the national average margin for May/June 2016 were released on July 29, 2016.

The national average margin for the May/June 2016 two-month consecutive period is $5.76277 per hundred weight (cwt.), resulting in the following MPP payment rates:

Margin Trigger Coverage Levels - Payment Rate/cwt.
$6.00           -            $0.23723         
$6.50           -            $0.73723
$7.00           -            $1.23723
$7.50           -            $1.73723
$8.00           -            $2.23723

State specific payment amounts can be found at www.fsa.usda.gov/dairy.



USDA Dairy Products June 2016 Production Highlights

Total cheese output (excluding cottage cheese) was 987 million pounds, 1.1 percent above June 2015 but 1.5 percent below May 2016.  Italian type cheese production totaled 432 million pounds, 2.2 percent above June 2015 but 2.0 percent below May 2016.  American type cheese production totaled 390 million pounds, 0.2 percent below June 2015 and 2.6 percent below May 2016.  Butter production was 153 million pounds, 6.4 percent above June 2015 but 10.1 percent below May 2016.

Dry milk powders (comparisons with June 2015)
Nonfat dry milk, human - 144 million pounds, down 13.2 percent.
Skim milk powders - 55.3 million pounds, up 59.5 percent.

Whey products (comparisons with June 2015)
Dry whey, total - 79.2 million pounds, down 7.7 percent.
Lactose, human and animal - 91.8 million pounds, up 2.0 percent.
Whey protein concentrate, total - 35.9 million pounds, down 7.9 percent.

Frozen products (comparisons with June 2015)
Ice cream, regular (hard) - 75.6 million gallons, up 4.2 percent.
Ice cream, lowfat (total) - 42.8 million gallons, down 8.0 percent.
Sherbet (hard) - 3.61 million gallons, down 6.8 percent.
Frozen yogurt (total) - 6.33 million gallons, down 10.5 percent.



Quarterly Sales, Earnings Up at Zoetis

Zoetis Inc. reported its financial results for the second quarter of 2016 and increased its revenue and adjusted net income guidance for full year 2016.

The company reported revenue of $1.2 billion for the second quarter of 2016, an increase of 3% compared with the second quarter of 2015. Net income for the second quarter of 2016 was $224 million, or $0.45 per diluted share, compared with a net loss of $37 million for the second quarter of 2015, on a reported basis.

Adjusted net income for the second quarter of 2016 was $246 million, or $0.49 per diluted share, an increase of 14%. Adjusted net income for the second quarter of 2016 excludes the net impact of $22 million for purchase accounting adjustments, acquisition-related costs and certain significant items.

On an operational basis, revenue for the second quarter of 2016 increased 6%, excluding the impact of foreign currency. Adjusted net income for the second quarter of 2016 increased 22% operationally, excluding the impact of foreign currency.



Clinton Campaign Studying Alternative to Ethanol Mandate

Democratic U.S. presidential candidate Hillary Clinton's campaign has solicited advice from California regulators on how to revamp a federal regulation requiring biofuels like corn-based ethanol be blended into the nation's gasoline supply, according to campaign and state officials. The move is an indication that Clinton would seek to adjust the Renewable Fuel Standard.

The Renewable Fuel Standard mandates that transportation fuel sold in the United States contain a minimum volume of renewable fuels. It was intended to cut greenhouse gas emissions and expand the U.S. renewable fuels sector while lowering reliance on imported oil. It is opposed by the oil industry and environmentalists and has been criticized as a mere subsidy to corn producers.

According to Reuters, Clinton advisers have contacted the California Air Resources Board to discuss whether a policy like California's Low Carbon Fuel Standard, a market-based system rather than a mandate, could be applied at a national level to replace or augment the Renewable Fuel Standard, and other issues, CARB officials said.

The U.S. corn lobby hopes to convince both Clinton and Trump to uphold the regulation, which requires a doubling of U.S. biofuels use to 36 billion gallons per year by 2022, when congressionally mandated volume targets are set to expire. The program is designed to last indefinitely after that.

Environmentalists, anti-hunger activists and the oil sector have called for the rule to be repealed or changed because they say it raises food and fuel costs without delivering the emissions reductions that it was intended to achieve.