Tuesday October 18 Ag News

NIFA Awards $2.3 Million to Relieve Shortages of Rural Vet Services

The U.S. Department of Agriculture's (USDA) National Institute of Food and Agriculture (NIFA) Monday announced 12 awards in 10 states totaling $2.3 million to help relieve shortages of veterinary services through education, extension, training and support for new or existing veterinary practices in designated rural shortage areas. These fiscal year 2016 competitive grants are funded through the new Veterinary Services Grant Program (VSGP), authorized by the 2014 Farm Bill.

"The new Veterinary Services Grant Program will enable training and retention initiatives to support veterinarians and veterinary technicians so they can continue to provide quality services in rural areas," said NIFA Director Sonny Ramaswamy. "It also supports the expansion of existing veterinary educational programs and facilities, including mobile services."

VSGP grants fund work by universities, veterinary associations, and state, local or Tribal agencies to help relieve veterinary workforce shortages in the U.S. food and agriculture sector. Funds may also be used to support the establishment or expansion of veterinary services in eligible rural areas.

Fiscal year 2016 grants include:
-- American Association of Bovine Practitioners, Opelika, Ala., $224,136
-- Colorado State University, Fort Collins, Colo., $238,251
-- University of Georgia, Athens, Ga., $236,243
-- Kansas State University, Manhattan, Kan., $239,656
-- University of Minnesota, St. Paul, Minn., $238,346
-- Betsy the Vet, Inc., Hardin, Mont., $124,462
-- Lewistown Veterinary Service, Lewistown, Mont., $116,036
-- Town and Country Veterinary Clinic, Auburn, Neb., $124,760
-- Utah State University, Logan, Utah, $236,619
-- University of Wisconsin, Madison, Wisc., $237,32
-- Wisconsin Veterinary Medical Association, Madison, Wisc., $238,429
-- Squared Circle Veterinary, Evanston, Wyo., $104,000

Among the funded projects, Kansas State University will use its grant to training and networking opportunities for rural production animal veterinarians. Town and Country Veterinary Clinic in Nebraska will expand its mobile veterinary practice service radius an additional 20-40 miles with the help of its grant. More information on these and other projects is available on the NIFA website.



Farm Bill Safety Net Payments Provide Producers Small Cushion

Final data on 2015 county level yields was recently released by the USDA Farm Service Agency. This is the final information needed for calculating payment rates under the Agriculture Risk Coverage-County (ARC-CO) program.

The Marketing Year Average (MYA) prices for the marketing year starting Sept. 1, 2015 and ending Aug. 31, 2016 were $3.61 for corn and $8.95 for soybeans. The payments released by the USDA Farm Service Agency starting in October 2016 are for crop acres enrolled during the 2015 crop year.

Payments under the 2014 Farm Bill are tied to the base acres on a farm and are not influenced by the crop grown in the payment year.

ARC-CO Payments
Under the ARC-CO program, producers receive payment on 85 percent of their base acres. This 15 percent reduction is factored into the values seen in the related figures. Furthermore, a 6.8 percent deduction is applied due to the federal government’s sequestration of the budget. Seven counties (Appanoose, Decatur, Henry, Lucas, Marion, Monroe and Washington), all located in the south central and southeast portion of the state, will not see a payment for corn or soybean acres.

Eight counties (Clarke, Jefferson, Keokuk, Pottawattamie, Ringgold, Van Buren, Warren and Wayne) will receive a payment on soybean acres and not on corn. Another 26 counties will receive a corn payment and no soybean payment (Adair, Bremer, Buena Vista, Calhoun, Carroll, Cerro Gordo, Clay, Davis, Dickinson, Emmet, Floyd, Franklin, Guthrie, Hancock, Howard, Humboldt, Kossuth, Madison, Mitchell, Monona, Palo Alto, Pocahontas, Sac, Winnebago, Worth and Wright). Base acres enrolled in ARC-CO in the remaining fifty-eight counties will receive a payment at some level for both crops.

PLC Payments
With the 2014 Farm Bill, Iowa producers had two options to choose from, ARC-CO or Price Loss Coverage (PLC). The PLC program provided a safety net for producers should the MYA prices be below the set reference prices of $3.70 for corn and $8.40 for soybeans. No payments were seen in Iowa under the PLC program for 2014, but a small payment will be received for corn base acres enrolled in PLC for 2015. The payment per bushel will be $0.07 (after 6.8 percent sequestration) and based on yield information at the farm level. Producers were given the option to update their yield information with FSA during program sign-up.

Statewide Payments
The average ARC-CO payment per base acre on corn was $33.51 and $15.68 for soybean acres in Iowa. With over 22 million base acres in the state enrolled in ARC-CO or PLC, estimated payments for Iowa producers under ARC-CO for the 2015 marketing year is approximately $646 million with another $3.8 million going towards corn base acres enrolled in PLC.

More information on the 2014 Farm Bill, including decision tools to see detailed calculations of payments by county, are available through the Ag Decision Maker website. Maps of payments can be found through the Center for Agricultural and Rural Development Farm Bill mapping tool. Projections for 2016/17 payments are updated regularly as information is released by USDA FSA.



Iowa Corn Farmers Host Mexican Grain Buyers

Representatives from five Mexican grain importers will visit Iowa this week prior to the U.S. Grains Council (USGC) Export Exchange scheduled October 24-26 in Detroit, Michigan.

“We’re thrilled to host this team in an effort to further develop and strengthen the relationships between Mexican corn and distillers grains buyers and U.S. grain suppliers, and are hopeful our efforts will result in more sales of corn and distillers grains to Mexico,” said Iowa Corn Growers Association (ICGA) Director Jerry Maier, a farmer from Eagle Grove.

The grain buyers visit will begin on Wednesday at Landus Coop in Farnhamville, the largest farmer-owned local agriculture cooperative in Iowa. They will then travel to and tour the Poet Ethanol Plant in Gowrie which is designed to produce 69 million gallons of ethanol annually. Next stop on the trip will take them to the Pro Cooperative in Havelock. Their day will end with dinner and a tour of Jerry and his son Brandon Maier’s farm in Wright County.

“As the largest buyer of U.S. corn, Mexico continues to be a bright spot for U.S. ag exports,” said Maier. “U.S. corn exports reached a record high this marketing year. Our Mexican grain and feed buyers rely on the quality and availability of U.S. corn and distillers grains which are shipped directly from states like Iowa keeping transportation cost low. We look forward to further expanding this important market in the future.”

On Thursday, the team will visit the Maxyield Cooperative in Belmond and have lunch and visit Corn LP in Goldfield. They will then stop at the Ag Partners feed mill in Ellsworth followed by dinner and a “meet the buyers” session with Iowa grain, feed and equipment suppliers. On Friday, the team will begin at Innovative Ag in Hubbard, followed by a visit to ICGA Director Denny Friest’s farm in Radcliffe and a tour of the nearby Heartland Coop.

In the 2015/2016 marketing year, an estimated 13.3 million tons of U.S. corn was exported to Mexico, a 17 percent increase from the previous year of 11.3 million tons and a 75 percent increase from 2010/2011. In addition, distillers grains experienced a 19 percent increase from the previous marketing year, increasing from 1.59 million tons to an estimated 1.9 million tons.



Record Corn Harvest Sets Tone for Next Week’s Export Exchange

With U.S. farmers anticipating a record corn harvest and U.S. ethanol producers expecting record production of animal feed co-products, the timing could not be better for Export Exchange 2016, scheduled for next week in Detroit.

More than 200 international buyers and end-users of coarse grains and co-products, including distiller's dried grains with solubles (DDGS), are expected in the Motor City for this premier biennial networking event.

Co-sponsored by the U.S. Grains Council (USGC) and the Renewable Fuels Association (RFA), Export Exchange offers attendees an unparalleled opportunity to meet and build relationships with domestic suppliers of corn, DDGS, sorghum, barley and other commodities.

This year’s anticipated attendees represent a diverse cross-section of customers for U.S. grains.

“At a time when we are looking at a record corn harvest and the clear need for international trade to be championed by our country’s leaders, Export Exchange is critical for our industry,” said Tom Sleight, president and CEO of the U.S. Grains Council. “It is essential for us to strengthen the bonds between suppliers and partner countries, and the connections made next week will not only help propel our industry this year, but for years to come.”

Export Exchange will host more than 200 international buyers from more than 35 countries as well as members of the U.S. grain supply chain.

“In today's volatile ethanol market, DDGS have become even more important for producers. A growing and vibrant export market will be key to future success. With buyers from more than 35 counties participating in this year's event, the 2016 Export Exchange is a can't miss event,” said Renewable Fuels Association President and CEO Bob Dinneen.

In addition to networking opportunities, the conference will feature engaging speakers addressing critical issues facing U.S. agricultural exports, offering customers and sellers in attendance an increased awareness of the benefits of U.S. coarse grains and co-products.

Scheduled sessions include:

- "Balancing Customer Expectations with the Realities of a Growing Population" – Todd A. Armstrong, Sr. Director, Global Market Access, Elanco

- "Co-product Supply and Demand in a Turbulent Global Market" – Geoff Cooper, Senior Vice President, Renewable Fuels Association (RFA)

- "Global Grains Outlook" – Nancy DeVore, President, DHF Team LLC

- "The 2016 U.S. Elections: What’s at Stake for Global Trade?" – Bob Dinneen, CEO, Renewable Fuels Association (RFA)

- "Keeping Grain and Product Trade Moving, the Transportation Issues and Challenges Outlook" – Ken A. Eriksen, Senior Vice, Head of Client Advisory and Development, Informa Economics

- "Sorghum: The Smart Choice ®" – Florentino Lopez, Executive Director, United Sorghum Checkoff Program (USCP)

- "Global Megatrends Affecting Agribusiness" – Chris Nolan, Managing Director, Pricewaterhouse Coopers Corporate Finance LLC

- "DDGS: All Species, All Markets" – Dr. Gerald 'Jerry' Shurson, Professor, University of Minnesota

- "Weather Trends and the Global Grain Markets” – Kyle Tapley, Senior Agricultural Meteorologist, MDA Weather Services

The conference will also feature a panel discussion on DDGS utilization between USGC consultants from North Africa and Southeast Asia.



Trade Continues to Move in the Right Direction
David P. Anderson, Extension Economist, Texas A&M AgriLife Extension Service

Two interesting trade reports have been released by USDA in the last two weeks.  One is the monthly beef trade data.  The other is from the Foreign Ag Service and is a bi-annual report on world markets and trade.  With all the talk about Brazil and China in the beef news lately it's a good chance to look over trade trends.

Beef imports in August (the latest data) was 16 percent lower than in August 2015.  Imports from Australia continue to fall, down 50 percent from August the year before.  For the first time in over two years, the US imported more beef from Canada than from Australia.  Beef imports from Canada and Mexico continued to increase, year-over-year in August.  For the year to date, imports from Canada and Mexico are up 14 and 10 percent, respectively, while imports are down from every other major import source.  Year to date imports are 13 percent (312 million pounds) below last year.

Beef exports are about 94 million pounds ahead of last years pace.  Exports have picked up some steam late in the year, with August exports up about 30 percent (52 million pounds).  Exports have grown to most major markets and are only lower to Canada and Hong Kong.  On balance, net imports were only 35 million pounds in August, the smallest since December 2015, when exports exceeded imports.

Beef production is expected to increase in most major producing countries in 2017 by almost 1 million metric tons.  Production in Brazil is projected to grow by almost 200,000 metric tons, or 2 percent, in 2017.  In comparison, U.S. beef production is expected to increase by about 400,000 metric tons.  World beef trade is also expected to increase in 2017.  To fuel growing consumption, China is expected to import an additional 125,000 metric tons of beef, for a 15 percent increase.

I am often asked what all this trade stuff really means.  Certainly exports have been a growth market for the cattle and beef industry.  The net change in 2016 trade compared to 2015 due to the decline in imports and increase in exports has been 405 million pounds less beef on the U.S. market.  While beef production is up almost 1 billion pounds though the first 3 quarters of the year, total supplies are only up 628 million pounds.  When the growth in exports is included the total available beef on the U.S. market has only grown by about 528 million pounds. 



ASA, NOPA Signal Strong Push on TPP in Lame Duck

With the release of a new document on the benefits to soybean farmers, processors, and exporters from the Trans-Pacific Partnership (TPP) this week, the American Soybean Association (ASA) and the National Oilseed Processors Association (NOPA) put Congress on notice that the groups will continue their push to approve TPP in the lame duck session following the presidential election.

Designed for delivery to congressional staff, the document contains detailed infographics showing the ways in which the TPP benefits soybean farmers, as well as the processors and exporters that take U.S. soybeans to markets around the world.

“The TPP has huge potential benefits for soybean farmers,” said ASA President and Greenwood, Del., farmer Richard Wilkins. “First, we achieve better market access for soybeans and soy products in 11 partner nations. More impactfully, though, we will increase sales of soybean meal for animal feed as a result of a dramatic increase in the sale of poultry, pork, beef, dairy and eggs to TPP markets. There is too much promise in the TPP for us to give up.”

Prospects for passage of TPP are dim, with both presidential candidates opposed, and a crowded lame duck congressional calendar. ASA and NOPA aren’t giving up, however.

“NOPA strongly supports the Trans-Pacific Partnership because the Asia-Pacific region—comprising almost 40 percent of global GDP—is where the future growth markets will be for U.S. soybean farmers, processors and exporters, as well as domestic meat and poultry producers, which are our industry’s largest customers.” said Tom Hammer, NOPA President. “Unfortunately, the benefits of a TPP that has the potential to become the largest U.S. regional trade agreement in history, cannot be realized if it is not approved by the United States Congress.”

Together, the organizations are confident that this new document depicting the strong benefits to soybean farmers, processors, and exporters helps to provide some weight to the ongoing National debate on the positive trade value of the TPP.

“We’ve heard repeatedly from lawmakers that what they need to not only support the agreement but also to help grow that support is hard data on the benefits of TPP for their constituents,” added Wilkins. “This document does exactly that.”



Large U.S. Crops Place Emphasis on Foreign Markets
Todd Hubbs, University of Illinois

Corn and soybean harvest future prices moved higher after the release of the USDA October World Agricultural Supply and Demand Estimates report on October 12. December corn futures closed the week ending October 14 at a 3 month high of $3.54 per bushel while November soybean futures moved up to close at $9.62 per bushel. Price movements through harvest in the United States can still be impacted by the domestic crop prospects for both corn and soybeans. In particular, yield forecasts for soybeans may be poised for an increase in November. Increasingly, the prospects for major price changes in both markets are linked to South American production outcomes and the ability to export corn and soybeans into foreign markets. Pricing opportunities can occur as South American crop conditions change and export markets respond to importer demand and prices.

Corn production in the United States is forecast to be 15.06 billion bushels in marketing year 2016/17 and is down 36 million bushels from the September WASDE forecast. While acres harvested is increased by 200,000 acres, the one bushel per acre yield reduction to 173.4 lowered the production forecast number. Domestic use numbers remained stable from the September 12 forecast. As a previous report indicated (see farmdoc daily, October 10, 2016 ), there is strong domestic demand currently for corn use in ethanol production. United States exports for corn are forecast to increase by 50 million bushels over the September forecast. While strong export shipments through the first few weeks of the marketing year look promising, weekly export sales numbers through October 6 indicate a need to sell 29.26 million bushels per week for the rest of the marketing year in order to reach the USDA projection of 2.225 billion bushels.

World supply and demand projections for corn in the 2016/17 marketing year moved lower due to United States production numbers. Brazil's forecast production increased by 39 million bushels. For the marketing year, South American production is set at 5.16 billion bushels, which is a 962 million bushel increase over 2015/16 production estimates and signifies recovery from the poor crop last year. Argentina and Brazil are forecast to export an additional 39.37 million bushels each above the September WASDE forecast. South American corn exports for the marketing year are forecast to be 2.08 billion bushels. Given the increase in South American production and exports, the evolution of crop conditions in the region may provide pricing opportunities for corn producers under the current strong export demand for U.S. corn.

Prior to the release of the October WASDE report, an increase in the United States soybean yield forecast was expected. The report forecast 2016/17 marketing year yield at 51.4 bushels per acre with only a minor change in harvested acres. The yield increase of 0.8 bushels per acre leaves some room for growth in the yield forecast in November based on many yield reports around the country. United States soybean production is forecast to increase by 68 million bushels to 4.3 billion bushels. Forecasts of soybean exports by the United States increased by 40 million bushels to 2.025 billion bushels for the marketing year. Current weekly export inspections for soybeans are strong. To meet the marketing year forecast, 19.8 million bushels a week need to be sold. Ending stocks in the United States were forecast to be 395 million bushels, up 30 million from the September 12 forecast.

World production forecasts for the marketing year increased 102 million bushels on the larger U.S. crop and a Brazilian production forecast to increase by 36.74 million bushels over the September forecast. South American soybean exports are forecast to be 2.64 billion bushels over the marketing year. China is forecast to import 3.16 billion bushels of soybeans over the marketing year. On October 13, the Foreign Agricultural Service released a Global Agricultural Information Network on China Oilseed Products report indicating Chinese domestic expectations for domestic production vary but are estimated at 478 million bushels. Additionally, soybean imports could be helped by solid, but weakening, profit margins for Chinese hog producers and a reduction in DDGS imports due to the recently imposed tariff. At a national level, recent Chinese economic data provided no clarity on economic growth in the country as one report showed growth in factory output while another indicated weak exports despite recent depreciation of the yuan.

In assessing the prospects for corn and soybean prices in the current marketing year, South American production and the ability for the U.S. market to meet export forecasts provide key supply and demand indicators. Since the South American planting season is off to a good start and current U.S. export levels are significantly higher than in the 2015/16 marketing year, poor weather in South America or strong economic growth indications in major importer markets should provide pricing opportunities for this record crop in the next few months.



Global Conference on Sustainable Beef a Success in Alberta, Canada

Advancing zero deforestation in beef production, assessing the overall sustainability of the beef value chain and connecting consumers and sustainability were just a few of the topics discussed at the 2016 Global Conference on Sustainable Beef (GCSB) held October 4–7 at the Fairmont Hotel in Banff Springs, Alberta, Canada. Nearly 225 beef value chain stakeholders from 15 countries around the world participated in seminars and moderated discussions focused on advocating for continuous improvement in the global beef value chain. The Conference was co-hosted by the Global Roundtable for Sustainable Beef (GRSB) and the Canadian Roundtable for Sustainable Beef (CRSB).

“We were delighted with the mixture of people that attended the conference,” said Dennis Laycraft, president of the GRSB. “We covered a number of critical industry topics on beef sustainability and fostered discussions that brought people together. With that, I think we achieved what we had hoped for – we are bringing more interest and recognition to sustainability and the role of the beef industry.”

The Conference, themed “Building On Experience: Regionally and Globally,” offered more than 15 interactive sessions and 50 presentations on areas of beef sustainability and continuous improvement. Dr. David Hughes, Emeritus Professor of Food Marketing at Imperial College London, began the Conference with a keynote presentation entitled “What Do You Want with Your Beef,” which addressed the history of consumer consumption and marketing of beef and current consumer expectations of the industry. Regional roundtables, including the U.S., Canada and Brazil among others, gave presentations on how they are adapting sustainable beef practices within their geographical areas and measuring the impact on a local level. Panel discussions provided a sounding board for open dialogue on beef sustainability practices and progress throughout the world.

“Canada was honored to co-host this forward-thinking conference and pleased to showcase the work being done here," said Cherie Copithorne-Barnes, a rancher from Alberta and Chair of the CRSB. “The conference was a great opportunity to exchange information and learn from our global partners and stakeholders.”

During the Global Conference, the CRSB launched its National Beef Sustainability Assessment and Strategy. The Assessment is a farm to fork study examining the environmental, social and economic performance of the Canadian beef industry. The Sustainability Strategy sets goals, baselines, key performance indicators and action items to help the CRSB target its efforts and move sustainability forward.

“The sustainability of agri-food systems is critical as consumers look for safe, healthy and affordable food that is raised in an environmentally sound, socially responsible and economically viable way,” said Fawn Jackson, Executive Director of the CRSB. “The Assessment provides the CRSB with a benchmark and important communication tool as we implement the Sustainability Strategy.”

The CRSB also held its annual general meeting (AGM) on October 7. The AGM saw the election of the following individuals to Council, the CRSB’s governing body:
-    Bob Lowe, Canadian Cattlemen’s Association and Alberta Beef Producers, and Greg Bowie, Alberta Beef Producers, Producer/Processor Organization seats.
-    Frank Middleton, Processor seat.
-    Jeff Fitzpatrick-Stilwell, McDonald’s Canada, Retail and Food Service seat.
-    Tim Hardman, World Wildlife Fund, non-governmental organization seat.
-    Jodi Banks, Saskatchewan Ministry of Agriculture, and Sean Royer, Alberta Agriculture and Forestry were both appointed by Council to the ex-officio seats.
-    Cherie Copithorne-Barnes, Chair of the CRSB.

“The Canadian Roundtable has shown practical examples of beef sustainability at the conference,” added Ruaraidh Petre, executive director of the GRSB. “They are actually putting GRSB’s criteria and principles, which are very high level, into more practical implementation on the ground. But even beyond that, they are also demonstrating how you measure the impact.”

In 2014, the GRSB held its first ever Global Conference on Sustainable Beef in Sao Paulo, Brazil. At the Conference, GRSB adopted five core principles that define global sustainable beef including natural resources; people & the community; animal health & welfare; food; and efficiency & innovation. These principles were at the center of discussion during the Conference in Banff, as members presented efforts to contribute to sustainable practices on a local level in the production, processing, and merchandising of beef.

Membership of GRSB spans five constituency groups: beef producers & producer organizations; civil societies (non-governmental organizations); retailers; processors and commerce; as well as the regional beef roundtables from around the world. GRSB also provides the ability for observers to be a part of all functions.

“The conference is critical not only to the beef industry but to consumers as well,” said Petre. “It brings the beef industry together to share ideas and learn of how sustainable practices are being implemented around the world. It also allows us to address consumer interest around sustainable beef. Consumers may not be directly involved in the industry, but they have questions. And we want to engage in that conversation, we have been able to demonstrate that we are working on it, we are on top of it, and we are coming up with solutions and are able to show them what it looks like in a local context.”

Video presentations from the Conference will soon be made available online. For more information on the Global Conference for Sustainable Beef and GRSB, please visit www.grsbeef.org.