Tuesday August 9 Ag News

Beef Feedlot Schools at four locations
Beef feedlot employees and supporting industry personnel will get a hands-on learning experience in feedlot horse care and ruminant nutrition at the 2016 Beef Feedlot Schools Aug. 15, 16, 24, and 31 in Curtis, Holdrege, West Point and Mitchell.

The Nebraska Extension Feedlot School will be offered Aug. 15 at the Nebraska College of Technical Agriculture Livestock Teaching Center in Curtis, at the Phelps County Ag Center & Arena in Holdrege on Aug. 16, at the Cuming County Fairgrounds in West Point on Aug. 24 and at the Scottsbluff County Fairgrounds in Mitchell on August 31.

Registration begins at 12:30 p.m. with introductions and welcome at 1.  The program will conclude by 5 p.m.

The afternoon sessions will cover feedlot horse management topics that include: horse psychology/behavior, body condition scoring, basic health, grooming, tack, foot care and other horse management topics unique to feedlot use.  General ruminant nutrition concepts will also be discussed as they relate to animal health crews.  This hands-on learning opportunity will include a team of Nebraska Extension Faculty that can tailor the program to feedlot employee needs related to horse care.

Pre-registration is available by phone, fax, e-mail or mail and requested one week prior to the event at each location. Cost is $20 and will be accepted with preregistration at the door. Cost for those who have not pre-registered will be $30. For more information or a registration form contact Matt Luebbe at the Panhandle Research and Extension Center, phone 308-632-1260, fax 308-632-1365 or e-mail mluebbe2@unl.edu.  Or contact Larry Howard at the Cuming County Extension office at 402-372-6006. 



AUG. 20 FARM TOUR TO LOOK AT COVER CROPS, FLAMING AND CRIMPING

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

“This is a great opportunity for farmers to share information and ask questions about cover crops, reduced tillage, and weed management using a roller crimper or flamer,” said Rich Little, tour organizer and research technologist in the University of Nebraska–Lincoln’s Department of Agronomy and Horticulture.

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

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

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

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

The UNL event is sponsored by OCIA, the Organic Crop Improvement Association.



CORRECT TIMING MAKES THE BEST SILAGE
Bruce Anderson, NE Extension Forage Specialist

               Will you chop corn silage this year?  Do it right and time your harvest correctly.

               High-quality corn silage often is an economical substitute for some of the grain in finishing and in dairy rations.  And corn silage can be an important winter feed for cow-calf producers.  All too often, though, we fail to harvest silage to get its best feed value.

               Harvest timing is critical for success.  Timing needs to be based on moisture content of the silage.  Silage chopped too early and wetter than seventy percent moisture can run or seep and it often produces a sour, less palatable fermentation.  We often get this wet silage when we rush to salvage hail or wind damaged corn.  Live green stalks, leaves, and husks almost always are more than eighty percent moisture so be patient and wait until these tissues start to dry before chopping.

               Normal corn, though, is often chopped for silage too dry, below sixty percent moisture.  Then it's difficult to pack the silage adequately to force out air.  The silage heats, energy and protein digestibility declines, and spoilage increases.  If your silage is warm or steams during winter, it probably was too dry when chopped.

               Many corn hybrids are at the ideal 60 to 70 percent moisture as corn kernels reach the one-half milkline.  This guide isn’t perfect for all hybrids, though, so check your own fields independently.

               Corn kernels in silage between half milkline and black layer are more digestible.  Drier, more mature corn grain tends to pass through the animal more often without digesting unless processed.  Also, older leaves and stalks are less digestible.

               So chop your silage at the proper moisture level this year.  The outcome will be better feed and better profits.



Burt County as Nebraska’s Newest Livestock Friendly County

On Monday, Governor Pete Ricketts announced that Burt County had become the newest county in the state to be designated as a Livestock Friendly County (LFC) through a program administered by the Nebraska Department of Agriculture (NDA).

“Burt County has a rich history in agriculture, and the livestock industry generates millions of dollars in income for the county’s farm and ranch families,” said Gov. Ricketts.  “By seeking the Livestock Friendly County designation, the county is sending the message that they want to continue to grow both their county and the state through livestock development.”

Created in 2003 by the Nebraska Legislature, the LFC program is designed to recognize counties in the state that support the expansion of the livestock industry.  In 2014, livestock receipts in the state comprised over half of the almost $25 billion of Nebraska’s total on-farm receipts.  The LFC designation gives counties an extra promotional tool to encourage expansion of current livestock operations and attract new businesses that spur local economies.

“Adding new or expanding existing livestock operations can offer opportunities for family members in Burt County to return back to the family operation,” said NDA Director Greg Ibach.  “Livestock development will also increase local demand for the large stocks of corn, soybeans and grain sorghum produced by Burt County farmers.”

With the addition of Burt County, there are now 37 counties designated as Livestock Friendly through the state program.

Counties wishing to apply for the LFC designation must hold a public hearing and the county board must pass a resolution to apply for the designation.  Then a completed application must be submitted to NDA.  Local producers or groups can encourage county officials to apply.

Additional information about the Livestock Friendly County program is available on the NDA website at www.nda.nebraska.gov or by calling 800-422-6692.



NCGA Welcomes Chinese Delegation for Regulatory Discussions

The National Corn Growers Association welcomed two regulators from the Ministry of Agriculture in China today for discussions on the need to better synchronize regulatory systems and the importance U.S. farmers place upon the availability of new technologies. The meeting was only one stop in a three-month long program designed by Dr. Nicholas Kalaitzandonakes, director of the Economics and Management of Agrobiotechnology Center at the University of Missouri - Columbia, through which the officials will delve into how the U.S. regulatory testing system functions.

In addition to NCGA, the team has already met with farmers, the U.S. Soybean Export Council and various private companies. Next, they will travel to Washington for discussions with the U.S. Department of Agriculture.

NCGA Vice President of Production and Stewardship Paul Bertels and Director of Biotechnology and Crop Inputs Nathan Fields participated in today's discussion. In addition to learning more about the regulatory system as a whole, the group is looking at how data is generated to support these processes.



Few Farms Affected by 2014 Farm Act Eligibility Income Cap

The 2014 Farm Act revised the maximum income limitations that determine eligibility for most commodity and conservation programs and payments by replacing the separate limits on farm and nonfarm income specified in the 2008 Farm Act with a single total adjusted gross income cap of $900,000.

Based on data for 2009-14, a period of overall increasing farm sector income, a comparison of the impact of the income caps imposed by the 2008 and 2014 Farm Acts finds that the number of potentially ineligible farms increases over the period under both income caps.

The potential number of farms affected by the 2014 income cap is below the number affected by the 2008 income caps, averaging 1,500 farms per year (about 0.1 percent of all farms) for the period 2009-14.



EIA Maintains 2016 Ethanol Outlook

 In its Short-term Energy Outlook for July, the Energy Information Administration left unchanged its projected demand outlook for ethanol while also holding firm its estimate for production of the fuel blendstock for this year and in 2017.

EIA continued to estimate ethanol production for 2015 at an average of almost 970,000 barrels per day (bpd) and reiterated production estimates for this year and 2017 at 980,000 bpd.

The agency repeated that ethanol consumption in 2015 averaged about 910,000 bpd, while holding steady its forecast for consumption for 2016 and 2017 at roughly 930,000 bpd.

"This level of consumption results in the ethanol share of the total gasoline pool averaging 10% in both 2016 and 2017."

The U.S. Environmental Protection Agency on Nov. 30, 2015, finalized a rule setting Renewable Fuel Standard volumes for 2014 through 2016 and on May 18 released its proposed RFS volumes for 2017 along with finalized biomass-based diesel volumes for 2017. The agency used both the final and proposed volumes to develop the current STEO forecast through 2017.

EIA expects that the largest effect of the RFS targets will be on biomass-based diesel consumption, which includes both biodiesel and renewable diesel and helps to meet the RFS targets for use of biomass-based diesel, advanced biofuel, and total renewable fuel. Biodiesel production averaged 82,000 bpd in 2015 and is forecast to average 99,000 bpd this year, unchanged from last month's estimate. In 2017, the estimate is 106,000 bpd, steady on the month. Net imports of biomass-based diesel are also expected to increase from 29,000 bpd in 2015 to 41,000 bpd in 2016 and 47,000 bpd in 2017, each unchanged from the prior two STEOs. EIA assumes about 10,000 bpd of domestic renewable diesel consumption will be used to help meet the biomass-based diesel and advanced biofuels RFS targets in both 2016 and 2017.

The agency estimates that energy-related emissions of carbon dioxide decreased by 2.7% in 2015. Emissions are forecast to decrease by 1.5% this year and then increase by 0.8% in 2017. These forecasts are sensitive to assumptions about weather and economic growth.



Quarantined Washington State Wheat Tests Negative for GMO

No genetically modified wheat has been found in a Washington state farm's crop tested after an unapproved biotech variety was discovered growing there in June, the U.S. Department of Agriculture said on Friday. The quarantined grain will be allowed to enter the marketplace.

According to Reuters, the Animal and Plant Health Inspection Service has launched an investigation into how an unapproved GMO wheat variety developed by Monsanto Co but never approved by federal regulators came to be growing in Washington. It was the third such finding since 2013.

There are no commercially approved varieties of GMO wheat.

The discovery, announced last week, prompted importers such as Japan and South Korea to suspend purchases of some U.S. wheat.

South Korea's Ministry of Food and Drug Safety said on Friday that it has not found any GMO wheat in tests on imported wheat and flour from Washington state after receiving testing supplies on Aug. 1, reports Reuters. The fifth largest buyer of U.S. wheat said it will continue testing incoming U.S. wheat and reject loads containing any rogue wheat.



Tyson Foods Reports Higher Quarterly Profits

Tyson Foods Inc. reported a higher-than-expected quarterly profit, helped by lower feed and livestock costs, and lifted its adjusted earnings forecast for the year. According to Reuters, shares of the maker of Jimmy Dean sausages and Ball Park jerky were up 5 percent in light premarket trading on Monday.

Tyson said it May it expected good cattle supply for its beef business, its largest, through the summer and into 2017. Livestock costs are falling in the United States as farmers build up their cattle herds, which hit a 63-year low in 2014 because of a drought.

Feed costs have also been falling due to a global glut of corn and soybeans that has kept grain prices depressed for three straight years.

The net income attributable to Tyson rose to $484 million, or $1.25 per share, in the third quarter ended July 2, from $343 million, or 83 cents per share, a year earlier.

Excluding items, the company earned $1.21 per share. Sales fell 6.6 percent to $9.40 billion. Cost of sales fell 10 percent to $8.18 billion in the quarter.



AgriBank Reports Second-Quarter 2016 Financial Results

 Today St. Paul-based AgriBank announced financial results for the second quarter of 2016 with continued stable net income, sound credit quality, and robust liquidity and capital.

Highlights: 
-    Stable net income: Net income grew $18.5 million, or 7.7 percent, to $260.2 million for the six months ended June 30, 2016, compared to the same period of the prior year. This increase was driven by continued strong net interest income, significantly offset by a decline in mineral income due to continued lower oil prices.
-    Sound credit quality:  Total loan portfolio credit quality remained sound, as acceptable loans stood at 99.6 percent. Credit quality of the retail loan portfolio has moderated to 95.5 percent acceptable as of June 30, 2016, compared to 97.3 percent at the end of last year.
-    Robust liquidity and capital: Cash and investments totaled $15.9 billion at June 30, 2016, compared to $16.2 billion at the end of last year. End-of-the-quarter liquidity was 151 days, well above the regulatory requirement. Capital also remained well above the regulatory minimum and company targets.

“Our key financial measures remained strong, reflecting the enduring strength of borrowers and affiliated Farm Credit Associations even as the outlook for many producers remains challenging,” said William J. Thone, AgriBank Interim Chief Executive Officer. “For more than 100 years, financial strength has enabled us to be the reliable, consistent source of credit and financial services that rural communities and agriculture need.”

Year-to-date 2016 Results of Operations
Net income increased $18.5 million, or 7.7 percent, to $260.2 million for the six months ended June 30, 2016, compared to the same period of the prior year.

Net interest income increased to $280.8­­ million for the six months ended June 30, 2016, compared to $255.3 million for the same period in 2015, primarily due to increased wholesale loan volume compared to the same period of the prior year.
Provision for loan losses was $4.5 million for the six months ended June 30, 2016, compared to $3.0 million for the same period in 2015.

Non-interest income decreased to $44.0 million, compared to $48.4 million for the same period in 2015. This decrease was primarily driven by lower mineral income due to continued lower oil prices.
 
Second Quarter 2016 Results of Operations
Second quarter 2016 net income was $135.8 million, an increase of $17.9 million, or 15.2 percent, compared to the same period of the prior year. This increase was driven by an increase in net interest income and non-recurring gains on sales of available-for-sale investment securities, partially offset by a decline in mineral income driven by continued low oil prices.

Loan Portfolio
Total loans increased $1.7 billion, or 2.0 percent, to $84.5 billion from year-end 2015, primarily due to increases in wholesale loans to affiliated Associations, partially offset by repayments received on real estate mortgage loan participations purchased.

The solid liquidity and equity positions of many retail borrowers are reflected in the sound credit quality of the AgriBank portfolio at 99.6 percent acceptable loans as of June 30, 2016. Acceptable loans represent the highest quality assets. Credit quality remains relatively consistent with the position as of December 31, 2015; however, these historically strong positions are beginning, and will continue, to revert to levels more in line with historical norms. The credit quality of our retail loan portfolio declined to 95.5 percent acceptable at June 30, 2016, compared to 97.3 percent acceptable as of December 31, 2015. This decline was driven primarily by downgrades in credit quality in equipment finance loans purchased through the AgDirect program. Nonaccrual loans increased slightly to $51.6 million at June 30, 2016, but remain at acceptable levels.

The U.S. Department of Agriculture’s Economic Research Service’s (USDA-ERS) projects both net cash and net farm income to decline for the third consecutive year in 2016, after reaching a record high in 2013. Net farm income is projected to fall by 3.0 percent to $54.8 billion for 2016 compared to 2015, primarily related to feed crops, dairy and most protein sectors. Crop producers may benefit somewhat from a projected increase in direct government farm payments as well as reduced expenses, primarily related to energy cost savings.

Macroeconomic events of recent concern to agriculture include the recent Brexit referendum vote by the British public to begin the process of leaving the European Union and the resulting political and economic fallout from the decision. For U.S. agriculture, the immediate risk is through the impact of the decision on exchange rates and the potential for continued appreciation in the U.S. dollar which has had a negative impact upon U.S. agricultural exports.
 
Capital Resources and Liquidity
Total capital remains very strong, increasing $92.5 million during the period to $5.3 billion, driven primarily by net income, partially offset by patronage and dividends, and other comprehensive losses.

Cash and investments totaled $15.9 billion at quarter-end, compared to $16.2 billion at the end of 2015. The Bank’s end-of-the-period liquidity position represented 151 days coverage of maturing debt obligations, which supports AgriBank’s operational demands, and is well above the 90-day minimum established by AgriBank’s regulator.

AgriBank is one of the largest banks within the national Farm Credit System, with over $100 billion in total assets. Under the Farm Credit System’s cooperative structure, AgriBank is primarily owned by 17 affiliated Farm Credit Associations. The AgriBank District covers America’s Midwest, a 15-state area stretching from Wyoming to Ohio and Minnesota to Arkansas. With about half of the nation’s cropland located in the AgriBank District and over 100 years of experience, the Bank and its Association owners have significant expertise in providing financial products and services for rural communities and agriculture.



2016 full-year earnings outlook maintained; organic sales outlook adjusted to 2-4%

Novozymes, the world’s largest producer of industrial enzymes, today announced its results for the first half of 2016. Sales grew by 3% organically and were flat in DKK compared with the first half of 2015. EBIT was on par, and the EBIT margin was 27.2%, also on par with the first half of 2015. Adjusting for the restructuring costs in Q1, the EBIT margin would have expanded to above 28% and EBIT growth to around 4% compared with the first half of 2015. Net profit grew by 8%. Net investments were DKK 542 million, free cash flow before acquisitions was DKK 1,354 million and ROIC (incl. goodwill) was 25.4%.

The outlook for full-year organic sales growth is adjusted to 2-4%, down from previously 3-5%. The adjustment reflects uncertainty in most of the industries in which Novozymes operates. The outlook for sales in DKK is unchanged. The outlook for each of EBIT, EBIT margin, net profit, net investments, free cash flow and ROIC is also unchanged.

Peder Holk Nielsen, President and CEO of Novozymes, comments:
“Our business improved in the second quarter. We delivered strong earnings, and we increased our sales growth although we had aimed higher. We're on track to reach our full-year profit target, but we adjust our sales expectations due to the performance in the second quarter and the uncertainty facing many of our markets. Our pipeline of sustainable biological solutions remains strong, and we'll soon launch exciting, new innovation in BioAg.”



Zeal® SC Miticide Now Registered for Soybeans

Valent U.S.A. Corporation announced today the Environmental Protection Agency (EPA) registration of Zeal® SC Miticide for soybeans. Zeal is a proven residual miticide to be labeled for use on soybeans, providing growers with a new tool for long-lasting control of spider mites.

Zeal SC Miticide, a proven residual miticide, is now available for soybeans

Zeal helps prevent the yield-loss potential caused by two-spotted spider mites and other spider mite species that could feed in soybeans. The mode of action of Zeal ensures at least three weeks or more of residual control, enabling growers to target all stages of a mite's life cycle, from egg to adult. This residual aids in helping to control multiple generations and ultimately in protecting the crop.

Soybean growers now have a new tool with a long-lasting residual for managing mites and preserving yields," said Katie Tougeron, marketing manager at Valent. "The fast-acting translaminar activity in Zeal is unique among miticides that are currently available to soybean growers."

The translaminar movement of Zeal travels through the soybean leaf to quickly reach mites where they hide and feed. Soybeans are the most recent registration for Zeal, following registration in field corn, cotton and melons. The pursuit of the new registration was sought when Valent noticed an increasing demand for a true miticide for soybeans.

"Zeal is a much-needed solution for soybean growers who are struggling to manage mite populations," said Carlos Granadino, product development manager for Valent. "Mite damage in soybeans is prevalent in drought and dry conditions, which for many soybean geographies, is an annual occurrence."

Zeal is also farm-friendly. The low application rate of Zeal allows aerial applicators to treat more acres with one load. Additionally, the liquid formulation of Zeal helps with ease of mixing.