Tuesday October 4 Ag News

Effects of a Freeze on Forages
Larry Howard, NE Extension, Cuming County

When plants freeze, changes occur in their metabolism and composition that can poison livestock. But you can prevent problems.

Sorghum-related plants, like cane, sudangrass, shattercane, and milo can be highly toxic for a few days after frost. Freezing breaks plant cell membranes. This breakage allows the chemicals that form prussic acid, which is also called cyanide, to mix together and release this poisonous compound rapidly. Livestock eating recently frozen sorghums can get a sudden, high dose of prussic acid and potentially die. Fortunately, prussic acid soon turns into a gas and disappears into the air. So wait 3 to 5 days after a freeze before grazing sorghums; the chance of poisoning then becomes much lower.

Freezing also slows down metabolism in all plants. This stress sometimes permits nitrates to accumulate in plants that are still growing, especially grasses like oats, millet, and sudangrass. This build-up usually isn't hazardous to grazing animals, but green chop or hay cut right after a freeze can be more dangerous.

Alfalfa reacts two ways to a hard freeze, down close to twenty degrees, cold enough to cause plants to wilt. Nitrate levels can increase, but rarely to hazardous levels. Freezing also makes alfalfa more likely to cause bloat for a few days after the frost. Then, several days later, after plants begin to wilt or grow again, alfalfa becomes less likely to cause bloat. So waiting to graze alfalfa until well after a hard freeze is a good, safer management practice.

Frost causes important changes in forages so manage them carefully for safe feed.



3M JOINS ALLIANCE FOR ADVANCED FOOD SANITATION

    Materials science company 3M has joined the Alliance for Advanced Food Sanitation, launched last year by the University of Nebraska-Lincoln. The partnership stemmed from a research collaboration between 3M and the university's Food Processing Center.

    The company's technologies have spawned a variety of products, such as cleaning products for surfaces, Condensation Management Film that helps control condensation hazards, Clean-Trace Swabs that monitor surface hygiene, and Petrifilm Plates that test for microbes.

    "Food safety is a global megatrend that affects everyone," said Greg Anderson, vice president of the 3M Corporate Research Laboratory. "As a member of the alliance, we are given the opportunity to be part of a collaborative environment focused on creating and disseminating improved sanitation approaches that can benefit our customers, the industry and society at large."

    Angela Anandappa, director of the Alliance for Advanced Food Sanitation, said: "The university has a rich history of working well with industry, especially with the food industry. 3M's passion is about investing in innovations that improve the lives of people, and we share in this desire to see further into our future where human lives will be improved significantly through our collaborations.”

    The university announced the alliance in October 2015, along with founding members Cargill, Hershey, Kellogg's, Nestle, ConAgra Foods, Ecolab, Neogen and Commercial Food Sanitation. The alliance's work includes identifying and evaluating new and improved materials fit for food manufacturing environments to better control pathogens and biofilms; identifying improved products and methods of cleaning; and improving the effectiveness and ecological friendliness of cleaning agents for all types of manufacturing processes.

    The alliance is based in the Food Innovation Center on Nebraska Innovation Campus.



Nebraska Corn Growers Association Announces  New Scholarship Program

The Nebraska Corn Growers Association is pleased to announce the formation of a new scholarship program for future ag leaders in Nebraska. The Nebraska Corn Growers Association (NeCGA) will award up to 5 $2,000 scholarships to high school seniors in the state of Nebraska. The NeCGA Future Leaders in Ag Scholarship Program (FLAGship Program) is open to high school seniors who will be continuing their education in state and pursuing a degree in an ag-related field.

“Young people are the future of our industry, and we want to help them take the next steps in their education,” said Dan Nerud, chairman of the Grower Services Committee. “With this scholarship we hope to not just encourage young people to go into the agricultural industry, but also to stay involved in the industry  within Nebraska.”

To be eligible for this scholarship students must be a member of NeCGA or the son/daughter of a NeCGA member. The application for the FLAGship Program must include two letters of recommendation, a current resume, as well as proof that the student is continuing their education. The students are also asked to explain why they are seeking a degree in the agricultural field as well as what issues they see the ag industry facing.

Applications must be postmarked by December 2nd, 2016. Packets can be mailed to 1111 Lincoln Mall, Suite 308, Lincoln, NE 68508 ATTN: Scholarship, or emailed to mwrich@necga.org. Recipients will be notified in February 2017 and scholarships will be distributed in May 2017. For more information about the scholarship and an application, please visit necga.org or call (402) 438-6459.



Bloss Elected Chairman of National Sorghum Producers, New Directors Appointed

The National Sorghum Producers board of directors elected Don Bloss, sorghum farmer from Pawnee City, Nebraska, as chairman at the annual August board meeting.

“Don Bloss is an experienced voice in the sorghum industry, having served previously as the chair of NSP’s Legislative Committee,” said Tim Lust, NSP CEO. “We look forward to his contributions and insights as NSP engages in discussions related to the next farm bill.”

The NSP board of directors also elected Dan Atkisson from Stockton, Kansas, as vice chairman. James Born from Booker, Texas, moves to the past chairman position. Mike Battin of Chromatin Inc., who serves as the industry member on the NSP board, was also re-elected to a second term.

In addition to electing officers, the NSP board of directors appointed three new members who will serve a three-year term beginning Oct. 1, 2016: Bobby Nedbalek from Sinton, Texas; Kody Carson from Olton, Texas; and Larry Earnest of Star City, Arkansas. 

“We welcome these new leaders and are excited to have their representation and diverse experiences on the NSP board of directors,” said Bloss. “There are crucial issues our board will face in the coming year, and we look forward to their assistance in moving the sorghum industry forward.”

Nedbalek farms in South Texas and is a member of Texas Regional Water Planning Group, San Patricio County Economic Development Corporation and the South Texas Cotton and Grain Association. Nedbalek hopes to utilize his experience to work with industry leaders and consumers in promoting the sorghum industry.

Carson is an active member in his local West Texas community where he farms. He is also involved with the Ag Producers Co-op and Plains Cotton Cooperative Association. Carson wants to capitalize the strengths within the sorghum industry when working on legislative and marketing matters.

Earnest farms in southeastern Arkansas and is currently involved in the National Research Center Administrators Society and the Southern Association of Agricultural Scientists. Earnest plans to work on increasing awareness of the value of sorghum and linking the importance of sustainable agriculture to both the public and world leaders.

On Oct. 1, 2016, three members departed from the NSP board of directors: Blake Tregellas from Perryton, Texas; Sam Simmons from Harlingen, Texas; and Terry Swanson from Walsh, Colorado.

“These directors have served our industry well during their tenure on the NSP board of directors,” Bloss said. “We appreciate their time and devotion to the industry and the legacy they leave to future sorghum leaders.”



Branstad to Lead Trade Mission to China and Japan

At his weekly press conference Monday, Gov. Terry Branstad announced he will lead a trade mission to China and Japan in mid-November. Gov. Branstad was joined by President of the Iowa Pork Producers Association, Al Wulfekuhle and Executive Director of the Iowa Beef Industry Council Chris Freland.

In 2015, Iowa companies exported $1.2 billion in manufactured and value-added goods to China and $1.1 billion to Japan. China is Iowa's third largest export destination, while Japan is the fourth largest. In addition, Japan is Iowa's leading export market for pork and beef products. Iowa companies exported $564 million in meat products to Japan in 2015.

"This mission marks my fourth visit to China and third to Japan since 2011 and is a testament to my long-standing commitment to strengthening economic ties with these important export markets for the state," said Governor Branstad. "Trade missions like this one allow Iowa companies to expand their markets outside of the U.S. and ultimately creates more jobs and strengthens our economy."

The mission is comprised of stops in Beijing and Hebei (Iowa's sister state) in China while Tokyo is the primary destination in Japan. In China, Governor Branstad is slated to speak at China's Food Security and Food Safety Strategy Summit and the International Meat Conference. Additional mission highlights include a potential meeting with Chinese President Xi Jinping, attending a reception at U.S. Ambassador to Japan Caroline Kennedy's residence and meetings with investment or trade prospects.

"This trade mission is part of IEDA's ongoing strategy to build on Iowa's success in exporting to China and Japan," said IEDA Director Debi Durham. "These markets are important to our agricultural commodities and with the recent announcement that China plans to lift the 13-year ban on beef imports from the U.S., Iowa is poised to benefit from renewing our relationships in this industry."

Mission participants include Iowa companies involved in meat processing and representatives from the Iowa Pork Producers Association, Iowa Beef Industry Council, Iowa Corn Promotion Board and Iowa Soybean Association. Iowa companies will participate in meetings specific to their market entry or expansion needs. IEDA is working with the state's China contract representatives and the U.S. Meat Export Federation (USMEF) to identify trade and investment prospects for the delegation.



PARTNERING FOR GROWTH BIOTECH INNOVATION SHOWCASE NOW ACCEPTING APPLICATIONS

Iowa Biotechnology Association (IowaBio) Executive Director Joe Hrdlicka announced applications are now being accepted for the Partnering For Growth Biotech Innovation Showcase to be held Tuesday, March 21st.

This Innovation Showcase event is the result of industry leaders and investors seeking to establish a gathering of innovators, inventors and investors to collaborate on their work specific to the field of biotechnology. The Showcase provides a forum for biotech leaders in Iowa and beyond to present their innovations to potential investors from throughout the country.

“We have established an expert panel for innovators to make presentations that address important topics including the development of biofuels and biomaterials; advances in food, ag and plant genetics; progress in animal health; as well as human health and medical technology,” Hrdlicka said. “This event will help solidify Iowa’s position as a leader in bioscience.”

The top company as selected by the event’s Investor Panel wins a $5,000 prize.

Applications to present will be accepted beginning Oct. 3, 2016 and accepted through Jan. 6, 2017, Hrdlicka said. “This is a great opportunity to see the leading biotech startup concepts emerging in the field,” Hrdlicka said. “Those interested in this event should visit the website we’ve established – www.iowabio.org/pfgapply.”

IowaBio’s Partnering For Growth forum is the state’s “biotechnology summit” targeted to senior leaders in biotech who have funding, human resources, issues management, business development and research in their areas of responsibility. Dr. Feng Zhang of the Broad Institute at MIT and Harvard; Dr. Robert Zolynas, Vice President, Research and Development, Bayer Health Care; Mike Stern, President of the Climate Corporation and Jim McCaughan, CEO of Principal Global Investors will be keynote speakers at the event, Hrdlicka said. The event also attracts public leaders who lead programs assisting the biotech sector from a funding, regulatory or economic development perspective. In addition to the Innovation Showcase, Partnering For Growth features a series of educational presentations, track sessions and networking activities aimed at sharing best practices and opportunities for collaboration within the industry.

While the Innovation Showcase will be held from 7:30 a.m. to 4:30 p.m. on the 21st, the forum event the next day will be held from 7:30 a.m. to 1:15 p.m. on Wednesday, March 22nd at the FFA Enrichment Center located at the DMACC campus in Ankeny at 1055 Southwest Prairie Trail Parkway.



University receives patent for vaccine that could protect livestock, make food safer
A newly patented vaccine by Kansas State University researchers could be good news for meat consumers.

The researchers developed a solution that could provide effective, antibiotic-free prevention of Fusobacterium necrophorum infection. The bacterium afflicts sheep and cattle with liver abscesses, calf diphtheria and foot rot or abscesses.

Currently, antibiotics are used to control these infections, but the vaccine takes a different approach to keep animals healthy and consumers happy.

"The Food and Drug Administration has issued guidance to minimize the use of many antibiotics in cattle, especially those similar to ones with human applications, so this vaccine is an alternative," said lead researcher Sanjeev K. Narayanan, professor of diagnostic medicine and pathobiology in the university's College of Veterinary Medicine. "This way, we don't expose people's food to bacteria that have acquired resistance to many antibiotics, so the vaccine protects both animals and humans."

The vaccine patent team includes M.M. Chengappa, distinguished professor of diagnostic medicine and pathobiology; T.G. Nagaraja, distinguished professor of diagnostic medicine and pathobiology; and Amit Kumar, formerly of Kansas State University. The team also received support from Elanco, a company that provides antibiotics to the livestock feedlot industry, for their vaccine.

Their vaccine uses a two-pronged approach. It first immunizes the animal against leukotoxins, which kill white blood cells and Kupffer cells — the liver's natural weapons against bacteria. Nagaraja and his associates discovered that the Fusobacterium bacterium is able to survive in the liver because it produces leukotoxins. By immunizing, if the bacterium enters the liver, there are antibodies built up against it, and the antibodies will neutralize the toxin.

The second element of the vaccine was developed in Narayanan's laboratory, where he, Kumar and Chengappa identified the protein that allows the bacterium to attach to the walls of the rumen — the first compartment of the cow's stomach — and the liver. They were then able to identify a major protein in Fusobacterium necrophorum that is responsible for attaching to organs. Antibodies generated in the animal against the protein will prevent bacterial attachment.

"If you can prevent attachment, you can prevent infection," Nagaraja said. "That's why this patented vaccine uses a two-pronged approach."

The vaccine patent was issued to the Kansas State University Research Foundation, a nonprofit corporation responsible for managing technology transfer activities at the university.

The vaccine is currently in testing for cattle, and may eventually be available also for sheep and for people. The researchers plan to continue working on further developing the vaccine and prevent disease in livestock and people.

The researchers received more than $1.5 million to develop their vaccine. Along with support from Elanco and other corporate sponsors, they also received a grant from the U.S. Department of Agriculture and intramural funding from the College of Veterinary Medicine.



Food and Agriculture Co-op Income Again Sets Record in 2015, USDA Data Show

Net income for the nation's agricultural cooperatives soared by 14 percent last year, according to data released today by the U.S. Department of Agriculture (USDA). In its annual report on national cooperative business sales, USDA reported that the country's farmer, rancher and fishery cooperatives posted record net income of $7 billion in 2015.

"The cooperative business model continues to perform strongly," Agriculture Secretary Tom Vilsack said. "While the model has long been one of the hallmarks of rural economies, its reach has greatly expanded to include almost every aspect of U.S. commerce. The latest data show that cooperatives are a key to building stronger and more vital communities, particularly in rural areas."

Rural Business-Cooperative Service Administrator Sam Rikkers announced the Top 100 ag cooperatives on Vilsack's behalf at an Interagency Working Group on Cooperative Development meeting at the Department of Commerce. The group, which is led by USDA, was established to foster cooperative development and ensure coordination between federal agencies and national and local organizations.

Again, this year's list shows that Iowa is home to more Top 100 co-ops than any other state, with 15. It is followed by Minnesota with 11 and Nebraska with nine. California and Illinois each have six, while Wisconsin has five. Minnesota and California each gained a new co-op in the Top 100 in 2015.

USDA indicated that total business volume fell for the Top 100 cooperatives, from $177 billion in 2014 to $149 billion in 2015. However, net income rose from $4.3 billion to $4.9 billion in 2015, an increase of 14 percent.

CHS Inc., a fuel, grain and food cooperative based in Inver Grove Heights, Minn., remains the nation's largest cooperative in the United States, with $34.7 billion in total business volume for 2015. Dairy Farmers of America, a milk marketing cooperative based in Kansas City, Mo., came in second place, with $13.9 billion in total revenue. Land O'Lakes, a dairy foods and farm supply co-op, based in Saint Paul, Minn., was third, with $13.1 billion in sales.

The biggest 'gainer' on the list from 2014 was Producers Livestock Marketing Association, based in North Salt Lake, Utah. It rose from 90th place in 2014 to 58th place.

Top Local Cooperatives
Rank, Coop name, HQ Office Location, 2015 Revenue ($ million)
1-CHS Cooperative, St. Paul MN, $34,700
2-Dairy Farmers of America, Kansas City MO, $13,900
3-Land O Lakes Cooperative, St. Paul MN, $13,000
5-Ag Processing Inc, Omaha NE, $4,450
16-Producers Livestock, Omaha NE, $1,490
20-Central Valley Ag, York NE, $1,160
32-Heartland Coop, West Des Moines IA, $871
34-Aurora Cooperative, Aurora NE, $852
36-Farmers Cooperative, Dorchester NE, $833
44-NEW Cooperative, Fort Dodge IA, $701
63-West Central Cooperative, Ralston IA, $519
70-Farmers Coop Society, Sioux Center IA, $437

Cooperatives big and small continue to play a key role in creating vibrant rural economies. In 2012-2013, the Montana Cooperative Development Center helped the Big Flat Market Cooperative steering committee with its incorporation process and business planning. The result of this hard work is the Big Flat Grocery store, now open in rural Turner, Mont., near the Canadian border.

The release of the co-op Top 100 report comes as USDA celebrates National Cooperative Month throughout October. This year's theme is "Cooperatives Build."



USDA Issues Safety-Net Payments to Farmers in Response to 2015 Market Downturn

The U.S. Department of Agriculture (USDA) announced that beginning today, many of the 1.7 million farms that enrolled in either the Agriculture Risk Coverage (ARC) or Price Loss Coverage (PLC) programs will receive safety-net payments due to market downturns during the 2015 crop year.

"This fall, USDA will be making more than $7 billion in payments under the ARC-County and PLC programs to assist participating producers, which will account for over 10 percent of USDA's projected 2016 net farm income. These payments will help provide reassurance to America's farm families, who are standing strong against low commodity prices compounded by unfavorable growing conditions in many parts of the country," said Agriculture Secretary Tom Vilsack. "At USDA, we are standing strong behind them, tapping in to every resource that we have to help. So far in 2016, this has included creating a one-time cost share program for cotton ginning, purchasing about $800 million in excess commodities to be redirected to food banks and those in need, making $11 million in payments to America's dairy farmers through the Dairy Margin Protection Program, and reprogramming Farm Service Agency funds to expand credit options for farmers and ranchers in need of extra capital. As always, we continue to watch market conditions and will explore opportunities for further assistance in the coming months. For producers challenged by weather, disease and falling prices, we will continue to ensure the availability of a strong safety net to keep them farming or ranching."

Unlike the old direct payment program, which issued payments during both weak and strong market conditions, the 2014 Farm Bill authorized the ARC-PLC safety net to trigger and provide financial assistance only when decreases in revenues or crop prices, respectively, occur. The ARC and PLC programs primarily allow producers to continue to produce for the market by making payments on a percentage of historical base production, limiting the impact on production decisions.

Nationwide, producers enrolled 96 percent of soybean base acres, 91 percent of corn base acres and 66 percent of wheat base acres in the ARC-County coverage option. Producers enrolled 99 percent of long grain rice and peanut base acres and 94 percent of medium grain rice base acres in the PLC option. Overall, 76 percent of participating farm base acres are enrolled in ARC-County, 23 percent in PLC and one percent in ARC-Individual. For other program information including frequently asked questions, visit www.fsa.usda.gov/arc-plc.

Payments are made to producers who enrolled base acres of barley, corn, grain sorghum, lentils, oats, peanuts, dry peas, soybeans, wheat and canola. In the upcoming months, payments will be announced after marketing year average prices are published by USDA's National Agricultural Statistics Service for the remaining covered commodities. These include long and medium grain rice (except for temperate Japonica rice), which will be announced in November, remaining oilseeds and chickpeas, which will be announced in December, and temperate Japonica rice, which will be announced in early February 2017. Upland cotton is no longer a covered commodity.

The Budget Control Act of 2011, passed by Congress, requires USDA to reduce 2015 ARC and PLC payments by 6.8 percent. For more information, producers are encouraged to visit their local Farm Service Agency (FSA) office.



Safety Net Payments Will Provide Needed Assistance to Farm Country, NFU Says

The U.S. Department of Agriculture (USDA) announced today it would be making more than $7 billion in safety net payments to many of the 1.7 million farms enrolled in either the Agriculture Risk Coverage (ARC) or Price Loss Coverage (PLC) programs. In response, National Farmers Union (NFU) President Roger Johnson released the following statement:

“A strong farm safety net is a critical risk management tool for agriculture, and we’re pleased to see the ARC and PLC safety net programs will assist producers faced with low commodity prices. The more than $7 billion in payments announced today by USDA will provide needed assistance to farms that are facing severe strife amid the current economic downturn.

“USDA has done a commendable job in using all available tools provided through the Farm Bill Title for the benefit of producers. These programs are not absent of flaws, but without these types of programs, producers would be in a much more difficult spot than they are right now. We look forward to continued engagement with the USDA as they look to assist producers struggling during this challenging environment.

“NFU will continue to promote the importance of a strong farm safety net, and we will work with Congress to encourage improvements to the comprehensive safety net package in the next Farm Bill in a way that more accurately reflects true costs of production.

“In the interim, we call on Congress to provide USDA with the authority to make advance payments to farmers so they don’t have to wait a full year to receive their earned payments. We also ask that Congress repeal the aspects of the Budget Control Act of 2011, which are preventing producers from receiving the full amount of assistance that they are entitled to under the 2014 Farm Bill.  In these difficult times, producers should not be penalized 6.8 percent because of the inaction of Congress.”



USDA Food Safety & Inspection Service Proposes Requirements for Various Label Claims

A federally inspected meat or poultry establishment is required to use labels that are in compliance with the Federal Meat Inspection Act, the Poultry Products Inspection Act, and the implementing regulations. Requirements include all mandatory labeling requirements as prescribed in Title 9 of the Code of Federal Regulations section 317.2 and 381 Subpart N.

All labels with special claims, including animal-raising claims, need to be submitted to FSIS prior to being used on the product under 9 CFR 412.1(c)(3). As with all labels with special claims, labels with animal-raising claims must be submitted to the Labeling and Program Delivery Staff, Office of Policy and Program Development in FSIS with specific documentation to support all such claims that appear on that label. Examples of animal-raising claims include, but are not

Advance copy of document submitted to Office Federal Register. May be subject to minor changes.
limited to: “Raised Without Antibiotics,” “Organic,” “Grass-Fed,” “Free-Range,” and “Raised without the use of hormones.” For most animal-raising claims, the documentation typically needed to support these claims includes:
1. A detailed written description explaining the controls used for ensuring that the raising claim is valid from birth to harvest or the period of raising being referenced by the claim;
2. A signed and dated document describing how the animals are raised (e.g., vegetarian-fed, raised without antibiotics, grass- fed), to support that the specific claim made is truthful and not misleading;
3. A written description of the product-tracing and segregation mechanism from time of slaughter or further processing through packaging and wholesale or retail distribution;
4. A written description for the identification, control, and segregation of non-conforming animals or products; and
5. If a third party certifies a claim, a current copy of the certificate.

FSIS previously issued a compliance guideline on animal-raising claims in 2002. The changes included in this version of the guideline include definitions for frequently used animal- raising claims, the detailed supporting documentation required for each specific claim that appears on the label, additional information regarding the claim grass fed, information required for duplicating raising claims from purchased product, and examples of labels bearing claims.

Advance copy of document submitted to Office Federal Register. May be subject to minor changes.
raising claims, the detailed supporting documentation required for each specific claim that appears on the label, additional information regarding the claim grass fed, information required for duplicating raising claims from purchased product, and examples of labels bearing claims.

This guideline represents FSIS’s current position and procedures for approving animal-raising claims, and although FSIS is requesting comments on this guideline and may update it in response to comments, FSIS encourages establishments that wish to submit request for approvals of animal raising claims on product labels to begin using this guideline.

More information, including guidelines to submit comments, can be found here.... http://www.fsis.usda.gov/wps/wcm/connect/d11dde0b-6638-4465-b8fd-25be98f1bd4b/2016-0021.pdf?MOD=AJPERES. 



Pork Outlook Turns Sour
Chris Hurt, Purdue University

Hog prices have collapsed to levels far below breakeven. There is worry that there are more hogs headed to market this fall than available packing capacity, and the latest USDA inventory indicates there are more hogs than had been anticipated. These factors are providing a sour taste for the industry's financial outlook through 2017.

Pork markets have been concerned about packing capacity this fall and the September Hogs and Pigs report from USDA provided reasons for additional concern. Producers indicated that the number of market hogs was up nearly three percent on September 1, and numbers in the heaviest weight categories were up four percent. This is consistent with September slaughter numbers that were up about five percent. However, the greatest concern was in the last half of September when the packer head counts were up almost eight percent. Over the past two weeks, slaughter numbers have averaged about 2.45 million head per week and packer capacity is thought to be around 2.5 million head per week. This means capacity is just two percent higher than the head counts for the past two weeks.

The slaughter numbers should ease a bit through the last quarter of the year. The USDA report suggest the numbers will be up four percent in October, but drop to three percent higher in October and then two percent higher in December. If those projections are correct, packer capacity will be sufficient.

The nation's breeding herd was reported as up just 0.5 percent, continuing a modest expansion that began in 2014 following record high hog prices and record producer profits. While the breeding herd expansion has remained small this year, the number of pigs per litter is setting new records. The summer weaning rate was up nearly two percent to a record 10.58 pigs per litter and the annual rate for 2016 is expected to reach a record 10.5 pigs per litter. Farrowing intentions for this fall are unchanged from a year-ago, and are down slightly for the winter. Still, with the number of pigs per litter rising about one percent per year, these modest farrowing reductions will still result in increases in pork production in 2017.

Market weights dropped a bit more than one percent in September and could be an indication that producers have recently been pulling some hogs forward to avoid even lower prices later in the fall. If this is the case, it may provide some relief to slaughter numbers into October and November. Pork supplies are expected to be up two to three percent in the final quarter this year. In the first quarter of 2017 pork production is expected to be up one percent and then be unchanged to up one percent for the second and the third quarters next year.

Hog prices have been dropping under pressure of higher than expected market hog numbers, concerns about inadequate fall packer capacity, and continued increases in supply of competitive meats. National lean prices on a liveweight basis have fallen to the higher $30s. These are prices not seen since 2008 and 2009 when the Great Recession weakened meat demand. Liveweight prices are expected to average in the mid-to-higher $30s this fall, in the higher $30's this winter, and then in the mid-to-upper $40s for the second and third quarters of 2017. Hog prices averaged about $50s in 2015, but will drop to an average near $46 this year and to around $43 next year.

Lower corn and soybean meal prices this fall will drop estimated costs of production to about $47 to $48 per live hundredweight. With hog prices in the higher $30s this fall and winter, estimated losses will be $25 to $30 per head. Losses are expected to moderate in the spring and summer of 2017 and intensify once more in the fall of 2017. For the year 2016, estimated losses are about $10 per head and for 2017, projected losses are at $16 per head.

The issue of inadequate packer capacity should be eliminated in 2017 with the opening of two new facilities in Iowa and Michigan that will expand capacity by around six percent. With the recent squeeze on capacity, packer margins have been strong. The new capacity should reduce packer margins and provide the opportunity for farm level prices to be higher. However, this is not likely to be helpful this fall and winter.

Losses are expected to be large this fall and winter, and at levels not seen since late 2012. Expected losses for 2017 should begin to move the industry toward thoughts of reducing the breeding herd. If price prospects do not improve it will likely be the second half of 2017 when a movement toward liquidation gets underway. This means that hog prices could begin to improve in the spring of 2018.

Feed costs from the 2016 crops are expected to be at their lowest level in years. Higher feed costs can be expected for the 2017 and 2018 crops assuming a normal world weather situation. If 2017 weather should be adverse in a major growing region of the globe, then higher feed prices would be a greater stimulus to initiate a liquidation period.



Registration Open for 2017 Cattle Industry Convention and NCBA Trade Show
 
Registration and housing for the 2017 Cattle Industry Convention and National Cattlemen’s Beef Association Trade Show is now open. The 120th annual convention will be held in Nashville, Tenn., Feb. 1-3, 2017. Advanced registration is open until Jan. 4, 2017. Convention participants will hear from industry leaders, gather insight on industry trends, and enjoy an evening of stars and guitars at the Country Music Hall of Fame as well as an exclusive event at the famous Grand Ole Opry.  NCBA President Tracy Brunner said this convention is a must for everyone involved in the cattle industry.

“The Cattle Industry Convention is the oldest and largest national convention in the cattle business,” Brunner said. “We look forward to another great meeting in a great location for cattle producers. Once again, NCBA will have one of the largest trade shows in agriculture and revisit one of our favorite cities, with great entertainment around every corner.”

In addition to access to all of the 2017 convention events, registrants for the full convention will receive a 50 percent off coupon for Roper and Stetson apparel and footwear at the NCBA Trade Show. To register and secure housing for the 2017 Cattle Industry Convention and NCBA Trade Show, visit www.beefusa.org or e-mail meetings@beef.org.



Western Feedlots Ltd. Closing for Business in Canada

One of Canada's largest cattle feeder operations is shutting down, blaming market forces currently rocking the feedlot sector as well as what it calls Alberta's poor political and economic environment. Western Feedlots Ltd.--which has sites near Strathmore, High River and Mossleigh, with standing capacity for 100,000 head--said it will idle its operations in early 2017, after it finishes marketing the cattle it currently owns.

President and CEO Dave Plett said in an interview that the majority of Western's approximately 85 employees will eventually be laid off, and the company has teams working now to assist them with transition. He said all of Western's equipment will be shuttered, stored and maintained in functional condition.

Alberta's minister of agriculture and forestry says he was surprised by the move, expressing disappointment at the looming job losses but insisting the industry remains strong.

Western, which started in 1958, has been hit hard by recent volatility in the cattle markets. Alberta cattle prices surged to record heights in 2014 and 2015, but have since plummeted.



DuPont Pioneer Introduces Exclusive Pioneer® Brand Alfalfa Varieties with HarvXtra® Technology

DuPont Pioneer announced today that Pioneer® brand alfalfa varieties with HarvXtra® technology are available for growers. These exclusive varieties with significant lignin reductions enable producers to achieve higher quality hay and forage compared to varieties without HarvXtra technology, no matter when they cut.
   
“These varieties are part of the DuPont Pioneer commitment to improving forage quality at every stage,” said Dan Wiersma, DuPont Pioneer alfalfa business manager. “They increase the level of forage digestibility by 10 to 15 percent, which leads to higher energy in forage diets and may result in more milk production.”

In addition to increased benefits for cattle, the new varieties also offer strong agronomic benefits, producing high yields with resistance to multiple diseases. All Pioneer brand alfalfa products with HarvXtra technology contain the Genuity® Roundup Ready® trait for weed control and have strong winter hardiness profiles. This trait package has shown no impact on lodging resistance compared to most varieties without HarvXtra technology.

“These top-performing products give growers more flexibility at cutting time, based on the needs of their operation,” Wiersma said. “The HarvXtra technology enables growers to maintain their harvest schedule routines and obtain peak quality level, and they can even delay harvest by a few days to obtain higher tonnage without sacrificing acceptable forage quality.”

Pioneer brand alfalfa varieties with HarvXtra technology will be available to fit a wide variety of geographies for both spring and fall plantings.