Wednesday August 3 Ag News

CFI Research Webinar Explores Keys to Food System Transparency

Today's consumers want to know what's in their food, who's producing it, how it's produced and how it will impact their health. It's a new day where transparency is no longer optional; it's expected. The latest research from The Center for Food Integrity (CFI) shows that food companies, many that have made dramatic shifts to meet consumer demand, are held most responsible.

Featuring The Hershey Company, Campbell Soup Company and CFI consumer research, a complimentary one-hour webinar on Wed., Aug. 17, from 10:30 to 11:30 a.m. CDT, will explore both companies’ transparency initiatives, consumer expectations and what this transparency revolution means for the supply chain when it comes to earning trust. Participants will come away with a better understanding of why transparency matters and specific strategies to put transparency into action.

Presenters include:

Niki King, senior manager of the Corporate Social Responsibility Program Office, Campbell Soup Company. The centerpiece of Campbell’s transparency efforts is www.whatsinmyfood.com, where consumers can access a wide range of information about Campbell's products, and have questions addressed in one easily accessible place. In addition, the company is moving toward a "real food" focus, recently committing to sourcing antibiotic-free chicken and to remove artificial colors and flavors from its North American products.

Deb Arcoleo, director of product transparency, The Hershey Company. Hershey launched a Simple Ingredients initiative last year and made continued progress on sourcing sustainable ingredients from its suppliers. Hershey is also making information about its products easier to find and understand through its leadership in the creation of the Grocery Manufacturers Association's (GMA) new SmartLabel™ program.

Charlie Arnot, CFI CEO. Now approaching its 10th anniversary, CFI has conducted the most comprehensive consumer trust research in the country, providing its members with a roadmap to effectively engage consumers. Beginning in 2013, CFI zeroed in on the role of transparency in earning trust and by 2015, developed and tested a tool to measure transparency. Along with seven other companies, The Hershey Company and Campbell Soup Company both participated in a beta test of this new tool. The latest research demonstrates that transparency earns trust and details what consumers expect from today's food industry.

To register for the webinar, log on to www.foodintegrity.org/event/the-transparency-revolution-what-food-companies-expect/. For more information, contact Jana McGuire at jana.mcguire@foodintegrity.org.




 Land O’Lakes, Inc. Announces 2016 Second Quarter Results Farmer-owned cooperative reports 67 percent increase in net earnings over second quarter in 2015

Land O’Lakes, Inc. today announced second quarter financial results, reporting quarterly net earnings of $134 million on sales of $3.5 billion for the period ending June 30, 2016. Second quarter results were up 67 percent compared to the same period in 2015. Year-to-date net sales totaled $7.1 billion with net earnings of $238 million. These results were significantly higher over the same period in 2015, with year-to-date earnings up 33 percent year-over-year.

“Despite sustained market volatility and headwinds across the segments where we operate, Land O’Lakes, Inc. is reporting significantly higher results year-over-year with strong performance across all of our business units,” stated Chris Policinski, Land O’Lakes, Inc. president and CEO. “We will continue to invest in growth, innovation and our core businesses, and with the addition of our new business unit SUSTAIN continue to collaborate on and improve environmental sustainability for the benefit of our members, customers and partners.”

Results remained strong across the Animal Feed portfolio – particularly within Milk Replacer and Nutra Blend, and within the Lifestyle segment – during the second quarter of 2016. The division saw strong growth over the same period in 2015, driven by strong margins and growth in certain branded and proprietary products.

The Dairy Foods segment, including the LAND O LAKES brand, saw higher results over the same period in 2015, due in part to less volatile markets and strong volumes and overall performance in the Foodservice division.

Overall second quarter results in Crop Inputs were driven by the addition of United Suppliers, Inc. combined with improved performance in proprietary products. This increase was partially offset by lower seed volumes driven by a strong fourth quarter in 2015 combined with a tighter gross margin environment.



EIA: Ethanol Stocks, Production Higher

Ethanol inventories, domestic production and blender inputs all increased last week, according to a report released Wednesday by the Energy Information Administration.

The data showed total inventories increased 200,000 barrels (bbl), or 1.0%, to 20.6 million bbl for the week-ended July 29 while up 1.4 million bbl, or 7.1%, year over year.

Plant production increased 6,000 barrels per day (bpd), or 0.6%, to 1.004 million bpd while up 42,000 bpd, or 4.5%, year over year. Four-week average production was up 38,000, or 3.8%, at 1.009 million bpd.

Net refinery and blender input increased 15,000 bpd, or 1.6%, to 951,000 bpd during the week-ended July 29, while up 41,000 bpd, or 4.5%, year over year. The four-week average blender input rate was up 37,000 bpd, or 4.1%, at 935,000 bpd.

EIA reported ethanol imports of 36,000 bpd, with the imports received along the West Coast.



DOE Labs Report Shows Significant Benefits of Mid-Level Ethanol Blends

Recently, the Department of Energy’s Oak Ridge, Argonne, and National Renewable Energy Laboratories released their “Summary of High Octane, Mid-Level Ethanol Blends Study.” This scientific analysis showed the numerous benefits of using high octane mid-level ethanol blends in future optimized engines.  Some of these benefits include: increased vehicle efficiency, increased acceleration, and significant reductions in greenhouse gas (GHG) emissions. In particular, these mid-level blends such as E25 and E40 have significantly more octane which allows automakers to manufacture more efficient engines without compromising performance, ultimately saving consumers at the pump as well as further reducing GHG emissions.

In response, Growth Energy Director of Regulatory Affairs, Chris Bliley issued the following statement:

“This report reinforces what consumers know today – more ethanol means more consumer savings at the pump and less pollutants in the air we breathe. I am pleased that this report recognizes and confirms what we’ve said for a number of years – automakers can take advantage of ethanol’s high octane properties to achieve the administration’s ambitious climate goals. As the Environmental Protection Agency, the National Highway Traffic Safety Administration, and the California Air Resources Board undertake their mid-term review, they should appropriately recognize the ability of high-octane, mid-level ethanol blends to meet the future greenhouse gas and fuel economy standards.”

Among the report’s conclusions:

“The experimental and analytical results of this study considered together show that high octane fuels (HOF), specifically mid-level ethanol blends (E25-E40), could offer significant benefits for the United States. These benefits include an improvement in vehicle fuel efficiency in vehicles designed and dedicated to use the increased octane…Furthermore, dedicated HOF vehicles would provide lower well-to-wheel GHG emissions from a combination of improved vehicle efficiency and increased use of ethanol.”



ISU Extension and Outreach specialists to present on cover crop use in southwestern Iowa
The Iowa State University Extension and Outreach organic agriculture program’s research will be a focus of the Neely-Kinyon Field Day on Aug. 23 from 4-7 p.m. in Greenfield, Iowa.

“Iowa State’s organic agriculture program has studied best management practices for maintaining high yields while enhancing soil and water quality during transitioning and certification of organic farmers,” said Kathleen Delate, professor and extension organic specialist in horticulture and agronomy at Iowa State University. “Through timely weed management, longer crop rotations and appropriate manure-based fertilization, we have demonstrated comparable organic corn, soybean, oat, alfalfa, vegetable and fruit yields compared to conventional crops.”Kathleen Delate at organic field day

Organic agriculture was listed as a $43 billion industry in the United States in 2015, with the number of organic businesses increasing 12 percent last year.

Field day topics covered by ISU Extension and Outreach researchers and specialists will include cover crop use in southwestern Iowa, a tour of a demonstration site for the STRIPS project, and the effort to grow habitats for monarch butterflies and other pollinators.

Additional field day topics include:

    The Long-Term Agroecological Research (LTAR) experiment, one of the oldest comparisons of organic and conventional crops in the U.S., supported by the Leopold Center for Sustainable Agriculture

    An organic vegetable research experiment comparing performance of organic no-till production using a roller-crimper, compared to tilled and mulched systems

    Soil and water quality data from the organic experiments presented by Dr. Cynthia Cambardella, Soil Scientist at the USDA-ARS in Ames

    Organic growing season update and marketing opportunities from David Rosmann, Practical Farmers of Iowa board member and organic farmer

    Discussion on an integrated crop and livestock project highlighting the benefits of grass-based cattle production, including a higher Omega-3 healthy fatty acid profile in the resulting meat

The field day will begin at 4 p.m. with a light supper of local, organic foods served at 6 p.m. The farm is located at 2557 Norfolk Avenue, Greenfield, Iowa. The farm can be found by driving two miles south of Greenfield on Highway 25, turning east on 260th Street for one mile before heading north on Norfolk Avenue.

Contact Kathleen Delate at kdelate@iastate.edu or 515-294-7069 for more information. Research information is available at: http://extension.agron.iastate.edu/organicag/. The field day is supported by Practical Farmers of Iowa.



Fertilizer Prices Dip Again

As has been the case for the last several weeks now, average retail fertilizer prices continued to be just slightly lower the fourth week of July 2016, according to fertilizer retailers surveyed by DTN.

All eight of the major fertilizers dipped in price compared to the previous month, but once again none were down by any significance. DAP averaged $459 per ton, MAP $492/ton, potash $356/ton and urea also at $356/ton. 10-34-0 was at $543/ton, anhydrous $545/ton, UAN28 $257/ton and UAN32 $304/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.39/lb.N, anhydrous $0.33/lb.N, UAN28 $0.46/lb.N and UAN32 $0.48/lb.N.

For the time being, DTN's retail fertilizer prices remain lower compared to a year earlier. All fertilizers are now double digits lower.

UAN32 is 14% lower, 10-34-0 is 15% less expensive and MAP 17% lower. DAP is 19% lower and both anhydrous and UAN28 are 21% less expensive. Urea is 24% less expensive and potash is 27% less expensive compared to last year.



CWT-Assisted Member Export Sales Contracts Total 8.4 Million Pounds in July

Cooperatives Working Together member cooperatives captured 29 contracts to sell 1.993 million pounds of American-type cheese, 5.016 million pounds of butter and 1.411 million pounds of whole milk powder in July. These products will go to customers in Asia, Central America, the Middle East, North Africa and Oceania. The product will be shipped from July through November 2016.

In the first seven months of 2016, CWT assisted members in winning export sales contracts totaling 30.090 million pounds of American-type cheese, 10.366 million pounds of butter (82% milkfat) and 22.948 million pounds of whole milk powder for customers in 21 countries on five continents. The sales are the equivalent of 678.497 million pounds of milk on a milkfat basis.

Assisting CWT member cooperatives gain and maintain world market share through the Export Assistance program in the long-term expands the demand for U.S. dairy products and the U.S. farm milk that produces them. This, in turn, positively affect all U.S. dairy farmers by strengthening and maintaining the value of dairy products that directly impact their milk price.



Rain Disrupts German Grain Harvest; Yields Seen Down 10-20%

Recent rainfall in Germany has disrupted the country's wheat harvest, leading to possible yield losses of up to 20%, the German Farmers' Association said Wednesday.

Due to bad weather in recent days and weeks, only a third of the winter wheat harvest has been completed, the association said, emphasizing that achievable yields are highly uncertain. However, it said yield losses of 10-20% from last year are possible.

Similar yield losses have affected the winter barley harvest, which begins earlier in the year. The 2016 harvest is expected to fall by 10% from 2015 to 8.6 million metric tons, the association said.



Food Ingredient Prices Outpace Values of Other Convenient Food

Beginning in 2004, prices of basic food ingredients purchased in grocery stores grew faster than prices of ready-to-eat meals and snacks purchased in grocery stores. The USDA reports that basic ingredients are raw or minimally processed foods, such as milk, dried beans, and fresh meat, used in producing a meal or snack.

Ready-to-eat meals and snacks, such as refrigerated entrees and side dishes, yogurt, and candy, require no preparation beyond opening a container.

A recent ERS analysis found that between 1999 and 2010, spending by a typical American household on basic ingredients was not as responsive to these price changes as spending on ready-to-eat meals and snacks.

In the first quarter of 1999, 5.2 percent of the average food budget was spent on basic ingredients and 18.0 percent on ready-to-eat meals and snacks.

By the fourth quarter of 2007, the share of total food expenditures spent on basic ingredients remained fairly constant but increased during the 2007-09 recession.

The share of total food expenditures spent on ready-to-eat meals and snacks, on the other hand, steadily declined to 17.1 percent before rising back to 1999 levels during and following the 2007-09 recession.



Spray Technology Equipment Offer Helps Grower Maximize On-Target Herbicide Applications

Growers participating in Roundup Ready PLUS® Crop Management Solutions now have an opportunity to upgrade sprayers with broadcast hoods at low cost to maximize on-target applications during the 2017 Spray Technology Equipment Offer, which runs from July 1, 2016 to January 31, 2017.

Qualified growers will be offered a 30 percent discount and a 10 percent rebate on the purchase of either a Willmar Fabrication SPK645 self-propelled broadcast hooded retrofit kit, or a 642E three-point wheel boom broadcast hooded sprayer with over-center fold. Both products feature the Redball® Gen II Broadcast Spray-Hoods. When used during ground applications, Redball Gen II hoods are proven in field trials to help greatly improve sprayer accuracy and coverage, and minimize pesticide drift by up to 90 percent*, especially when combined with other drift reduction technologies such as drift retardant adjuvants or low drift nozzles.

“Roundup Ready PLUS Crop Management Solutions does an outstanding job of helping farmers choose the best strategies and products for effective over-lapping herbicide programs,” said Steve Claussen, president of Willmar Fabrication. “Together, Willmar and Monsanto are taking things to another step to help farmers improve accuracy and minimize waste when they are spraying their crops.”

To qualify, growers must be active participants in the Roundup Ready PLUS platform and purchase a total of 60 units of Roundup Ready 2 Xtend® Soybeans and/or Genuity® Roundup Ready 2 Yield® Soybeans, or a total of 12 units of Bollgard II® XtendFlex® Cotton before January 31, 2017. Upon purchase of the seed, growers will be offered a 30 percent discount when they purchase a qualifying hooded sprayer directly from Willmar using their Monsanto Tech ID number. By submitting their Willmar proof-of-purchase and the Monsanto Tech ID number, growers will then receive a 10 percent rebate on the qualifying equipment purchase.

A second option to this offer allows growers who purchase the required amount of seed to qualify for a 30 percent discount on the purchase of a qualifying hooded sprayer between February 1, 2017 and June 30, 2017.

Qualifying Equipment
The SPK645 Self-Propelled Broadcast Retrofit Kit includes Redball Gen II Broadcast Hoods, mounting brackets, hardware to mount hoods on center section, and right and left primary booms. The kit is easy to mount and available for most self-propelled makes and models. Initial installation takes approximately 10 hours. After hoods are installed, they can be removed or put back on in 10 minutes. Spray nozzles are mounted inside the hood to protect the spray pattern from wind disruption for better coverage. 

The 642E Three-Point Broadcast Hooded Sprayer with Over-Center Fold features a new and simple design that offers the same great drift protection and spraying accuracy. Just like its 642 companion, the 642E is ideal for spraying field borders and buffers. The sprayer also demonstrates good stewardship and is equipped with Redball Gen II Broadcast Spray Hoods. The new optional trailer hitch attachment makes the 642E Hooded Sprayer more versatile than ever. The 642E Sprayer and hitch attachment are ideal for ag retailers as a rental unit. The hitch attachment allows for easy transportation behind a truck for delivery to farmers and field locations and a quick hook-up to a tractor. In addition the hitch attachment can be removed and the sprayer can operate with a three-point hitch.

To place an order, or for more details, call 877-865-5887. Find out more about broadcast hoods at www.willmarfab.com or on our YouTube channel.

For more about Roundup Ready PLUS Crop Management Solutions, visit http://www.roundupreadyplus.com/. 



New Vive Crop Protection Products Debut on Acres in Six Midwestern States

After being introduced to the market in March, two products that feature a new nanotech delivery system for fungicide and insecticide have performed well in field observations.

The technology, called Allosperse™, uses polymer nanoparticle shuttles to control how and when crop protection products are delivered to the plant after being applied. This is new technology for agriculture that is comparable to how some pharmaceuticals are delivered to precise targets within the human body.

Farmers in Minnesota, Nebraska, South Dakota, North Dakota, Iowa and Illinois applied the two new products, AZteroid™ and Bifender™, to corn and soybean acres this spring. In addition, trials were conducted in potato and sugarbeet plots.

It’s still too early to assess yield results, said Dr. Darren Anderson, chief communications officer for Vive Crop Protection, but producer feedback and field observations have been excellent. “AZteroid is the first fungicide built for compatibility with liquid fertilizer, and producers were pleased with their new-found ability to apply starter fertilizer and fungicide in-furrow in a single pass.”

In field observations, corn and soybean plants grown with a combination of starter fertilizer and AZteroid applied in-furrow were larger with significantly more root mass when compared with plants that only received starter fertilizer.

This combination of AZteroid and fertilizer was applied as one uniform mixture, thanks to the Allosperse technology. Crop protection products typically fail to mix thoroughly with liquid fertilizer. However, with Allosperse this problem is no longer an issue. As a result, multiple products can be conveniently applied in a single pass across the field.

“One producer relayed a story of mixing AZteroid with starter fertilizer in the tank, only to be delayed for four days because of rain,” Dr. Anderson explained. “When he was finally able to get in the field, there was only a small amount of residue in the check balls and even that came right off once he got moving.”

Producers said the products worked well when mixed directly in the fertilizer tank as well as when applied through a Dosatron. There were no problems even with a high-zinc starter fertilizer, and the products exhibited excellent mixing properties with glyphosate and Capture® LFR®.

About AZteroid and Bifender
AZteroid contains azoxystrobin and provides broad-spectrum control for a variety of seed and seedling diseases. Bifender contains bifenthrin and provides broad-spectrum control of many serious insect pests dwelling at or below the soil surface.

Bifender has the same excellent fertilizer compatibility as AZteroid and can be tank-mixed with AZteroid by growers who want to simultaneously control seedling disease and soil-borne insect pests. Bifender is particularly useful applied to seed that has not received a seed treatment, but both Bifender and AZteroid can also be used to provide extra protection to treated seed.