Wednesday September 5 Ag News

Nebraska Farm Bureau Has Two Finalist in the 2017 Rural Entrepreneurship Challenge

Nebraska Farm Bureau congratulates Ryan and Austin Stauffer of Seward County and Martin Bremmer of Perkins County for being selected as finalists for the 2016 American Farm Bureau Rural Entrepreneurship Challenge.

“There were a total of 10 teams selected for the 2017 Farm Bureau Rural Entrepreneurship Challenge, four finalists and six semi-finalist,” Audrey Smith, director of youth, collegiate & young leader programs said. “This is a great way to provide opportunities for individuals to showcase business innovations being developed in rural regions of the U.S. It is the first national business competition focused exclusively on rural entrepreneurs developing food and agriculture businesses,” she said.

Ryan and Austin Stauffer’s business is called Levrack, a storage system that came out of a need for storage on their farm in Seward. The versatile storage system is sturdy enough for the farm and sleek enough for home use.

Martin Bremmer’s business is called Windcall Manufacturing, Inc., which manufactures the GrainGoat, the smallest most efficient grain combine on the market. The GrainGoat is a hand-held harvester that collects, cleans, and calculates the moisture of small grains all within minutes.

According to Smith, entrepreneurs sent in 365 applications from across the nation. This is quite an accomplishment for the Nebraska teams and she is excited to see Nebraska entrepreneurs showcase their talents. Team Stauffer and Bremmer have been awarded $15,000 in startup funds.

“Rural entrepreneurs typically face unique challenges including limited options for startup funding, which Farm Bureau aims to address through the challenge. We would love to see more entries from Nebraska. Farm Bureau is focused on elevating rural entrepreneurs, their ideas, and their skills to make good things happen,” Smith said.

In January, both Nebraska team members will also attend and compete during the American Farm Bureau Federation (AFBF) Annual Convention in Phoenix, Arizona, for a chance to win an additional $15,000 in prize money, courtesy of sponsor Farm Bureau Bank. After the live-streamed event, members of the public will be invited to vote online for the People’s Choice Award, which gives an additional $10,000 in start-up funds.



Nebraska Farm Bureau Warns of a $13,269 Hit to Nebraska Corn Farms if Atrazine is Eliminated

Nebraska Farm Bureau submitted comments to the Environmental Protection Agency (EPA) strongly opposing the agency’s efforts to eliminate the availability of atrazine; the removal of which is estimated to cost $13,269 per Nebraska corn farm. President of the Nebraska Farm Bureau Steve Nelson, also urged the agency not to ignore the thousands of good scientific studies that show atrazine does not cause “an unreasonable adverse effect on human health or the environment.”

According to Nebraska Farm Bureau’s estimates, the loss of atrazine for weed control on corn would cost Nebraska farmers almost $315 million based on per acre figures published in private economic studies. If broken down further, $315 million totals 5% of the total value of corn production in our state in 2015. This would equate to a cost of $13,269 per Nebraska corn farm. With net farm income decreasing 40 percent over the past three years, the loss of atrazine would be another significant financial hit to Nebraska farmers.

“Nebraska currently ranks third nationally in corn production producing and Nebraska’s farmers, diligently and sparingly use atrazine,” Nelson said.

The Nebraska Department of Environmental Quality’s 2015 Nebraska Groundwater Quality Monitoring Report indicates Nebraska groundwater samples have been collected and examined for atrazine since 1974, with an average atrazine concentration of 0.81 parts per million, compared to the EPA’s Maximum Contaminant Level of 3 parts per million. The latest numbers from 2014 showed that none of the 126 samples collected that year even showed a concentration above the reporting limit.

“Atrazine is one of the oldest and thus most studied crop protection products on the market having first registered for use in the United States in 1958. It has been subject to intense scrutiny, investigation and scientific evaluation with some placing the number of studies dedicated to atrazine at nearly 7,000. Unfortunately, it appears that EPA has allowed policy prejudices to overtake scientific judgments. Farm Bureau believes that science should drive policy, not the other way around,” Nelson said.



POLL SHOWS RURAL NEBRASKANS ARE SATISFIED WITH THEIR COMMUNITIES

    Rural Nebraskans are optimistic about their communities and would rate many characteristics as good or excellent to someone looking to move there, according to the 2016 Nebraska Rural Poll.

    In general over the past 21 years, more rural Nebraskans have believed their community has changed for the better during the past year than those who believed it changed for the worse. In fact, the gap between the two opinions has widened during the past six years.

    A similar trend is present when asked how they believe their community will be 10 years from now. The proportion believing it will be a better place to live a decade from now has steadily increased during the past six years, from 20 percent in 2011 to 27 percent this year.

    "This trend is both encouraging and important," said Randy Cantrell, a rural sociologist with the Nebraska Rural Futures Institute. "Those who believe that things are getting better, and will continue to do so, are likely to also be the people who are willing to invest time and resources in order to continue that trend."

Other indicators:
    > Most rated their city or town as friendly, trusting and supportive – 74, 62 and 65 percent, respectively.
    > Fifty-two percent say it would be difficult to leave their community, while 32 percent say it would be easy.
    > Sixty percent disagree that their city or town is powerless to control its future.

    When asked to rate items in their community to a person looking to move there, most rural Nebraskans would rate the safety, environment for raising children, natural/outdoor environment, church/religious community, and friendliness or supportiveness of neighbors as excellent.

    "It is very encouraging for new resident recruitment to see these attributes listed by our current residents," said Cheryl Burkhart-Kriesel, professor and Nebraska Extension community vitality specialist. "In our Nebraska research, those are seen as key pull factors to bring new residents to this state."

    Size impacts rural Nebraskans' views. Residents of larger cities are more likely than residents of smaller towns to say their community has improved during the past year and are more likely to be optimistic about its future. They are also more likely than residents of smaller towns to disagree that their community is powerless to control its own future. However, residents of smaller towns are more likely to say it would be difficult to leave.

    People living in smaller towns are more likely than those living in or near larger cities to rate the following characteristics as excellent to a newcomer: environment for raising children, natural/outdoor environment, sense of community among residents, and cost of living. Other items are more likely to be rated as excellent by persons living in or near larger communities: church/religious community; available outdoor recreational opportunities; civic and nonprofit organizations; arts, entertainment and cultural activities; and available child care services.

    Most rural Nebraskans say they have conservative political views on both economic and social issues. They also rate their community's political views as conservative. Rural Nebraskans view their community's views on social issues as more conservative than their own.

    The Rural Poll is the largest annual poll of rural Nebraskans' perceptions on quality of life and policy issues. This year's response rate was 29 percent. The margin of error is plus or minus 2 percent. Complete results are available at http://ruralpoll.unl.edu.

    Although the Grand Island area (Hall, Hamilton, Howard and Merrick counties) was designated a metropolitan area by the U.S. Census Bureau in 2013, the Rural Poll continues to include those counties in its sample. Also, Dixon and Dakota counties were added to the poll last year.

    The University of Nebraska-Lincoln's Department of Agricultural Economics conducts the poll in cooperation with the Nebraska Rural Futures Institute, with funding from Nebraska Extension and the Agricultural Research Division in the Institute of Agriculture and Natural Resources.



RFA Welcomes New Member Siouxland Ethanol

The Renewable Fuels Association is pleased to announce the addition of Siouxland Ethanol to its membership.

Siouxland Ethanol is a locally owned company near Jackson, Nebraska, that began production in May 2007. The ethanol plant processes 24 million bushels per year into 70 million gallons of ethanol, 2,000 tons of corn oil and 175,000 tons of distillers dried grains with solubles used by local cattle feeders. The company has nearly 35 employees and an annual payroll of approximately $2 million.

Siouxland Ethanol is also moving ahead with a planned expansion to boost production capacity by 15 percent, which is expected to be completed by the end of this year.

“The Renewable Fuels Association is a tireless advocate for the ethanol industry and we are pleased to join its membership,” said Pam Miller, director of industry and investor relations and board chair at Siouxland Ethanol. “As we work to ensure the long term inclusion and growth of ethanol in America’s transportation portfolio, the Renewable Fuels Association’s leadership will be needed. We look forward to our membership.”

“We are thrilled to announce that Siouxland Ethanol has joined our organization,” said Renewable Fuels Association President and CEO Bob Dinneen. “The hardworking employees of the company have been producing ethanol for nearly a decade, with production increasing in order to provide consumers with the lowest cost, cleanest-burning and highest octane source in the world. We welcome Siouxland Ethanol to our membership and look forward to their contributions.”



Celebrate Nebraska Farm to School Month in October

October is Nebraska Farm to School Month, a time to celebrate connections happening all over the state of Nebraska between schools and local food. 

In 2010, Congress designated October as National Farm to School Month. This acknowledged and celebrated that farm to school programs are an important way to improve child nutrition, support local economies, and educate children about where their food comes from.

On Sept. 7, 2016,  Gov. Pete Ricketts proclaimed October as Nebraska Farm to School Month in recognition of  the growing importance and role of Farm to School programs in the state as a means to improve child nutrition, support local farming and ranching economies, spur job growth and educate children about agriculture and the origins of their food.

    “Healthier Nebraska kids means smarter Nebraska kids, and as research indicates healthy students perform better on testing and are absent less often,” said Gov. Ricketts.

In Nebraska, 29 percent of schools report participating in farm to school activities, including sourcing food locally, growing food in a school garden, and learning about food and agriculture in the classroom. That’s 71 districts with 458 schools and at least 188,637 students (source: USDA farm to school census). An additional 13 percent of Nebraska schools plan to start farm to school activities in the future.

The Center for Rural Affairs, a long-time leader for Farm to School activities in Nebraska and across the country, initiated the request for the October Farm to School Month proclamation.

“We hope that Nebraska schools and farmers will take One Small Step Forward for farm to school during the month of October,” commented Sarah Smith with the Center for Rural Affairs.

The Center will host myriad Farm to School activities throughout October, including the Midwest Great Apple Crunch. Participants of all ages are invited to join others around the Midwest in eating apples at exactly noon on Thursday, Oct. 13, from the comfort of their own homes and schools. Find out more and sign up to participate at http://www.cfra.org/f2smonth.

“The Crunch encourages healthy eating and supports farm to school and other local food procurement. Students and staff participate by crunching on an apple all at the same time, maybe at lunch or as a classroom activity,” stated Smith. “It’s also a fun way to connect food and agriculture to all kinds of classroom curricula – from science to art. Of course, if you are unable to participate on Oct. 13, or exactly at noon, we encourage you to plan an Apple Crunch event anytime during October for National and Nebraska Farm to School Month.”

Crunch participants are encouraged to post their Crunch and follow along on social media using #F2SMonth, #F2SCrunch, #F2SMidwest or #MidwestAppleCrunch.

Smith added that participating schools in the statewide Crunch should  SIGN UP (http://www.cfra.org/f2smonth) to be counted and receive a free Crunch Guide with steps for a successful crunch event.

According to Smith, nearly 7,000 students in Nebraska have signed up to crunch in schools like Malcolm and Thayer Central. Omaha Public Schools is also spearheading a crunch involving over 50,000 students! In addition, 3,000 students have signed up to crunch in Midwest schools like Clear Creek Schools in Amana, Iowa, and Missouri Baptist Sunrise School in DeSoto, Mo.

In Lincoln, Neb., where at least 976 students will be crunching, apples from Bellevue, Neb., will be featured in Lincoln Public Schools. Those students will have a chance to crunch at lunch and in the classroom on Oct. 13. According to Jessie Coffey, nutrition and special diet specialist, this is the first year the school district is crunching. They will also highlight their Farm to School Month activities on a new blog. Faith Lutheran School of Lincoln will join in the Midwest Crunch as well.

At Norris School District in Firth, Neb., Jane Hansmeyer, family and consumer science teacher and Rural Nebraska on the Move project director, is leading the school district’s crunch. All 2,300 students will take part on Oct. 13. Plans involve each of the four buildings on their campus crunching at a certain time of day, as well as several different varieties of apples prepared in unique ways at breakfast and lunch times. Norris will send out their drone to capture photos of the students and share with their communities.  

The Center for Rural Affairs has many resources for helping bring the farm to the school. One such tool is the Farm to School Producers Map (found here: http://www.cfra.org/findfarmer), inspired by our online Nebraska Find-A-Farmer Tool designed to link a school or program with a farmer to work with directly.

Also available are webinars filled with useful information for school staff and farmers and ranchers interesting in starting or expanding Farm to School programs in their communities. The hour long webinars cover a wide range of topics such as how food service staff have participated in local food procurement, key points farmers and ranchers should consider when working with schools as a market opportunity, and how Nebraska farmers, ranchers and food producers have made the school connection. Those can be found here: http://goo.gl/HMUrCd

Other Farm to School resources can be found at the main Farm to School page here: http://www.cfra.org/f2s. 



Early Bird Registration Deadline for Nebraska Wind and Solar Conference Approaching
The ninth annual Nebraska Wind and Solar Conference is a little more than a month away and the early registration deadline of October 8, 2016 is just days away.  People wishing to attend the ninth annual conference and take advantage of the low registration cost of $125 need to register by October 8. This year’s conference is November 7-8, 2016 at the Cornhusker Marriott, 333 S. 13th Street, Lincoln, NE.

The registration fee of $125 covers all sessions including updates from the Public Power CEO’s of Lincoln Electric System, Nebraska Public Power District and Omaha Public Power District, as well as State Senators. Other featured speakers include Ryan Callahan on Tech Environmental, Tom Budler of Berkshire Hathaway Energy and Suzanne Tegen of National Renewable Energy laboratory.

“The speakers for this year’s conference are covering a variety of topics ranging from “Wind Turbine Sound-Just the Facts,” “Rural Agriculture Economy & Effects of Renewables” and “Wind Turbine & Solar Zoning Regulations,” said John Hansen, conference co-chairman. “Attendees will be updated with information relevant to the industry by top experts.”

This year’s conference will kick off with a site tour of Lincoln Electric System’s SunShares Community Solar Project, Sunday, November 6 from 2 p.m. to 5 p.m. The tour will leave from the Cornhusker Marriott Hotel and the fee is just $10. Registration for the conference is $125 before midnight October 8, $150 after that deadline, and $175 for walk-in registrations the day of the conference. Student registration is only $65. Visit our website at www.nebraskawindandsolarconference.com to register for the conference and solar project tour and to make your hotel reservations. Also check out this year’s conference agenda.



Nebraska Cattlemen Oppose Southeast Community College Bond Proposal

Yesterday, Nebraska Cattlemen voted to oppose the $369 million ($369,000,000) Southeast Community College (SCC) bond issue. The Board of Directors did not take this decision lightly as NC is very supportive of education and job training at the community college level.

Nebraska Cattlemen is engaged in an ongoing effort to find propertytax relief for members across the state. As a result, the Board's primary opposition comes from the substantial increased tax burden this bond would put on taxpayers in the 15 county area. NC recognizes that significant infrastructure needs exist for agricultural and vocational technical programs, and many of the facilities that support these programs are drastically outdated. SCC has not provided clarity as to what specific projects the proposed funds will be directed towards on each campus, and the bond language contains no prioritization of projects or discussion on how these proposed renovations will meet current and future workforce needs, particularly in agriculture. This lack of detail is especially troubling for a request of this size.

Furthermore, community colleges currently have a two cent levy available for repair, construction and maintenance of buildings, which is not included in the bond proposal. Monies from that levy could be imposed on taxpayers in addition to the $369 million if SCC so chose in the future.

"Education is very important to Nebraska Cattlemen. We know there is a need for improvements on some of the campuses but we cannot support a $369 million bond that will continue to increase property taxes for our members while we are still searching for overall tax relief." said Barb Cooksley, Nebraska Cattlemen President.



USDA Dairy Products August 2016 Production Highlights

Total cheese output (excluding cottage cheese) was 990 million pounds, 1.2 percent above August 2015 but 2.2 percent below July 2016.  Italian type cheese production totaled 422 million pounds, 5.0 percent above August 2015 but 4.7 percent below July 2016.  American type cheese production totaled 389 million pounds, 1.4 percent below August 2015 and 2.4 percent below July 2016.  Butter production was 129 million pounds, 0.7 percent above August 2015 but  10.4 percent below July 2016.

Dry milk powders (comparisons with August 2015)
Nonfat dry milk, human - 117 million pounds, down 5.8 percent.
Skim milk powders - 46.1 million pounds, up 17.2 percent.

Whey products (comparisons with August 2015)
Dry whey, total - 75.8 million pounds, down 8.4 percent.
Lactose, human and animal - 92.1 million pounds, up 6.5 percent.
Whey protein concentrate, total - 34.2 million pounds, down 13.7 percent.

Frozen products (comparisons with August 2015)
Ice cream, regular (hard) - 70.5 million gallons, up 1.4 percent.
Ice cream, lowfat (total) - 44.3 million gallons, up 4.0 percent.
Sherbet (hard) - 3.11 million gallons, down 12.4 percent.
Frozen yogurt (total) - 5.92 million gallons, up 0.4 percent.




Weekly Ethanol Production Is Lower

According to EIA data analyzed by the Renewable Fuels Association, ethanol production averaged 980,000 barrels per day (b/d)—or 41.16 million gallons daily. That is down 9,000 b/d from the week before. The four-week average for ethanol production stood at 988,000 b/d for an annualized rate of 15.15 billion gallons.

Stocks of ethanol stood at 20.2 million barrels. That is a 1.9% decrease from last week.

Imports of ethanol were zero b/d for the sixth straight week.

Gasoline demand for the week averaged 394.4 million gallons (9.390 million barrels) daily. Refiner/blender input of ethanol averaged 919,000 b/d.

Expressed as a percentage of daily gasoline demand, daily ethanol production was 10.44%.



Beef Price Spreads
Brenda Boetel, Dept of Ag Econ, University of Wisconsin-River Falls

Since 2010 average retail beef prices have increased from $4.173 per pound in January 2010 to $6.412 in May 2015, a 53.65% increase. Live Kansas cattle prices have increased from $84.10 per cwt in January 2010 to a high of $172.94 in November 2014, a 105.64% increase.  Since their respective highs, retail beef prices have decline 8% to $5.915 per pound, whereas live Kansas cattle prices have declined 38.2% to $106.89 per cwt. The discrepancies in beef and cattle price changes is accounted for in the live to retail price spread and dissecting this spread can provide information on where profits and losses are occurring in the marketing chain.

The live to retail price spread was record large in June 2016.  This live to retail price spread can be broken down into two other spreads: the live to cutout spread and the cutout to retail spread.  The live to cutout price spread assumes a 63% dressing percentage and shows the difference in price paid for a steer and the wholesale value of beef plus the drop value.  Assuming an average live weight of 1300 pound, the live to cutout spread was at a high of $439.30 per head in June 2016 and has averaged $270.80 per cwt so far this year, up from an average of $173.60 over 2010-2014 and an average of $198.70 in 2015.  Note that this is not processor profit.  This spread represents a gross processing margin and does not account for the processor's fixed and variable costs, including labor, energy, etc.  If one assumes a rough industry average of $165 per head costs (they vary significantly from plant to plant), then one can see that although processors are doing quite well this year, in 2014 they would have averaged profits of only $1 per head.

The difference between the wholesale value of the beef sold by packers and the retail value is the cutout to retail spread and covers the retail industry's costs to market beef to consumers.  In June 2016, this cutout to retail price spread was $1960 per head, compared to the average of $1303 over 2010-2014, $1607 in 2015 and $1737 in 2016 to date.  Again, one cannot assume these are profits as fixed and variable costs such as trucking and energy have not been accounted for.  Note though that only 50% of the cost of retail beef actually comes from the cost of the wholesale beef, indicating considerable amount of marketing services are added between wholesale and retail levels. Another way to look at this level between retail and wholesale is if wholesale beef prices decreased 50%, retail prices could only hypothetically decrease 25% keeping all else equal.

By looking at the percentage changes between 2016 and the 5-year average of 2010-2014 in the different spreads, one can see that there has been a much larger percentage increase in the live to cutout spread than the cutout to retail spread, indicating that a majority of the profits available from beef marketing are currently being held at the processor level.

With the recent decline in boxed beef cutout, processor margins will likely decline faster than retail margins as retail prices tend to be stickier due to the consumers' general dislike of price variability. Decreasing processor margins does not necessarily mean increased cattle feeder profits as the profits and losses may be distributed among retailers.  



Fertilizer Prices Continue to Plunge

Retail fertilizer prices tracked by DTN continued to slide lower the fourth week of September 2016, although the amount of declines is not as much as in recent weeks. All eight of the major fertilizers are lower compared to last month with only two fertilizers down a considerable amount.

Down 6% compared to a month earlier is 10-34-0. The starter fertilizer averaged $465 per ton. The other fertilizer down a significant amount is UAN28. The liquid nitrogen fertilizer is now 5% less expensive than a month earlier and averaged $223/ton.

The remaining six fertilizers were all lower compared to last month, but the move to the low side was slight. DAP averaged $440/ton, MAP $458/ton, potash $317/ton, urea $322/ton, anhydrous $486/ton and UAN32 $271/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.35/lb.N, anhydrous $0.30/lb.N, UAN28 $0.40/lb.N and UAN32 $0.42/lb.N.

Retail fertilizers are lower compared to a year earlier. All fertilizers are now double digits lower.

MAP is now down 20%, UAN32 is 21% less expensive, and both DAP and 10-34-0 are 22% lower. Urea is down 24%, both anhydrous and UAN28 are now 25% less expensive, and potash is 30% lower compared to a year prior.



Two Teams of Japanese Grain Buyers To Attend Export Exchange 2016

Representatives from eight Japanese grain importers will participate in U.S. Grains Council (USGC) trade teams as part of Export Exchange 2016.

The event is scheduled for Oct. 24 to 26 in Detroit, Michigan, sponsored by USGC and the Renewable Fuels Association (RFA). This year’s conference is slated to be the largest on record with more than 215 buyers and end-users from more than 35 countries organized into 19 USGC trade teams.

Representatives from several countries in East Asia will be in attendance, including two teams from Japan filled with long-time customers of U.S. commodities.

One team will be made up of members of the Japanese feed industry with a particular interest in corn, distiller's dried grains with solubles (DDGS) and sorghum for feed use. A second team will include representatives from food corn companies, including corn wet millers manufacturing corn starch and sweetener products and a dry miller manufacturing corn grits and flour for food products.

With a population of 127 million and a thriving agricultural sector, Japan leads the way in imports of U.S. corn, sorghum and barley as well as co-products featured at the Export Exchange event.

“This buyers coming on this year’s Japan teams are interested in learning more about all U.S. grains and their co-products,” said Tommy Hamamoto, director of the USGC office in Japan. “Increased promotion of ethanol and U.S. quality standards in Japan is expected to expand market opportunities as customers look for ways to improve food and fuel production.”

Representatives from the following companies are scheduled to be in attendance:
- Doto Feed Co., Ltd
- Keiran-Niku Joho Center
- Marubeni Nisshin Feed Co., Ltd.
- National Federation of Agricultural Cooperative Associations (JA Zen-noh)
- Nosan Corporation
- Snow Brand Seed Co., Ltd.
- Toyohashi Feed Mill Co., Ltd.
- Zenkei Co., Ltd.

The Council works to increase demand for feed grains and related products among feed millers, regulators and other end-users in Japan and conducts programming that focuses on export promotion and customer knowledge of U.S. quality standards.

Export Exchange allows attendees to do business and form relationships with buyers in person and in one location. These two factors make the event a highly successful contributor to feed grain sales, with 2014 Export Exchange participants reporting sales of more than $900 million during the conference.



Cargill reports fiscal 2017 first-quarter results

Cargill today reported financial results for the fiscal 2017 first quarter ended Aug. 31, 2016. Key measures include:
-    Adjusted operating earnings rose 35 percent to $827 million in the first quarter, compared with $611 million in the year-ago period.
-    Net earnings on a U.S. GAAP basis were $852 million, up 66 percent from $512 million a year ago. The variance between adjusted and net earnings was largely a function of timing differences related to inventory, derivatives and hedging.
-    Revenues were $27.1 billion, essentially even with last year’s $27.5 billion.

“We posted a strong start to the new fiscal year,” said David MacLennan, Cargill’s chairman and chief executive officer. “We’ve been charting a new path to higher performance, and it’s rewarding to see the many changes we’ve made resulting in gains across much of the company.” He noted that recent acquisitions have brought in new capabilities alongside Cargill’s continuous work to optimize plant efficiency, supply chains and cost structure. “These actions are making us more competitive and equipping us to serve a broadening range of customer needs.”
Segment results

The Animal Nutrition & Protein segment was the largest contributor to adjusted operating earnings in the first quarter, with results up sharply from the prior year. Profitability was led by the segment’s beef business, which benefited from the North American market’s ongoing transition to increased cattle supplies as well as renewed consumer demand for beef. The global group of poultry businesses, along with U.S.-based turkey and further processed eggs, delivered increased earnings over the prior year. Animal nutrition contributed to the strong results, as well, with sales growth in parts of Asia and in North America. Sales volume for aqua feeds was reduced by weather-related events in some countries. The segment’s new aqua nutrition unit offset part of the impact with its sales strength in high-value functional feeds and in raw material sourcing.

To grow its protein portfolio, Cargill purchased Five Star Custom Foods, which specializes in cooked protein products for the foodservice and food manufacturing sectors, with facilities in Fort Worth, Texas, and Nashville, Tennessee. Cargill is selling two cattle yards in the Texas Panhandle to Amarillo-based Friona Industries, which is already a significant supplier of fed cattle to Cargill. The sale will allow capital used today to buy and feed cattle to be redeployed in other parts of the business. With the upcoming introduction of the antibiotic-free Honest Turkey™ product line, the company is expanding its commitment to turkeys raised without the use of antibiotics, which will differentiate these products from conventional offerings.

Origination & Processing earnings rose moderately from last year’s first quarter, due in part to the realization of improved soybean processing margins in the current period along with the reversal of mark-to-market losses taken in the preceding quarter. Results also were boosted by good performance in Brazil, North American grain exports, canola in Canada, and biodiesel in North America and Europe. As announced in August, Cargill is selling to Bunge its soybean and rapeseed crush, oil refining and related bulk storage assets in Amsterdam, and soybean crush facility in Brest, France. The transaction is subject to regulatory clearance from the European Union. Cargill is retaining its soybean processing plants in Barcelona, Spain, and Liverpool, U.K, as well as other oilseed processing and refining facilities in Europe.

Improved earnings in starches and sweeteners, and edible oils lifted segment earnings in Food Ingredients & Applications. Cocoa and chocolate products contributed to the upturn, though earnings were restrained by this season’s shortage of mid-crop cocoa beans in Ghana. Salt earnings were flat, with good performance in salts for food and other applications offset by less demand for road salt and deicing products in the current period. The segment’s flour business in Argentina was sold to Molinos Cañuelas, a local, family-owned retail food company with a flour business of its own.

Industrial & Financial Services was profitable for the quarter, with returns from Cargill’s asset management investments offsetting weak performance in other parts of the segment. Petroleum results were impacted by low global demand for oil in oversupplied markets; likewise, the metals business in North America dealt with weak demand as it works to reduce inventory.

MacLennan emphasized Cargill is keeping its focus on three connected priorities: sustainability, food security and nutrition. The August debut of the Midwest Row Crop Collaborative shows how Cargill can bring unique insights to advancing sustainable agriculture. Industry and conservation leaders came together in this collaborative to bring sustainability work to a larger scale. In its launch, the MRCC announced it will support and build out current programs that seek to improve soil health and water quality in Illinois, Iowa and Nebraska. MacLennan noted, “Cargill is committed to the success of the MRCC because we believe that sustainability programs like this will benefit agricultural supply chains from end to end.”



Bayer and West Central Distribution, LLC Introduce Soybean Seed Treatment Combination

Bayer and West Central Distribution, LLC announced today the introduction of Redigo™ 480 + Trilex®, a combination of fungicide seed treatments for soybeans offered exclusively through West Central Distribution.

Redigo 480 is a seed treatment fungicide from Bayer for control of seed and soil-borne disease on soybeans and other crops.

Redigo 480 + Trilex brings two powerful modes of action against many seed and soil-borne fungi, including Rhizoctoniaand Fusarium. The combination is offered in West Central’s STI Customized seed treatment service and as components using the On Demand™ system from Bayer.

“West Central is pleased to be the exclusive provider of the Redigo 480 + Trilex combination,” said Blake Murnan, product development manager for Custom Seed Treatments at West Central. “This exclusive offer reinforces West Central’s continued commitment to offering unique, high-quality seed treatment solutions.”

Melissa Chu, Bayer SeedGrowth product manager, echoed this enthusiasm. “We are thrilled to be able to work with West Central to bring this exciting technology to the market. Bayer is committed to providing solutions to help soybean growers combat disease and optimize yields.”



Monsanto Sees Unexpected Profit

Monsanto Co. swung to an unexpected adjusted profit in the most recent quarter as revenue grew more than anticipated, and the biotech-seed company reiterated its commitment to its takeover by Bayer AG, though it offered a tepid outlook for the current year.

The results come after the U.S. seed maker last month agreed to sell itself to Bayer in a $57 billion deal creating one of the world's largest agrochemical firms. The agreement capped a months-long courtship by the German pharmaceuticals and chemicals giant, and followed a summer in which Bayer's top brass spent much time trying to persuade skeptical investors that the deal would create value for both sides.

"Despite challenges to our business in fiscal year 2016, we delivered on the drivers that position Monsanto for the return to EPS growth in the year ahead," Monsanto Chief Executive Hugh Grant said Wednesday, adding the company's priorities for the year include "executing on the necessary steps to close the deal with Bayer."

For fiscal 2017, Monsanto projected earnings of $3.83 to $4.35 a share. Adjusted earnings, factoring out restructuring charges, Argentine-related tax matters and proposed Bayer transaction related costs, are estimated at $4.50 to $4.90 a share. Analysts polled by Thomson Reuters forecast on average earnings of $4.91 a share. The company said increased penetration of soybean technologies and improved soybean costs should help drive gross profit growth in the seeds and genomics segment -- its largest.

"We are entering a new era in agriculture, where growers are demanding new solutions and technologies to be more profitable and more sustainable," said Mr. Grant. "We believe that combining with Bayer secures our shared vision to provide a wide set of solutions to meet these demands and feed a growing world."

In all for the August quarter, Monsanto reported a loss of $191 million, or 44 cents a share, compared with $495 million, or $1.06 a share, a year ago.

Excluding certain items, adjusted per-share earnings swung to a profit of 7 cents from a loss of 19 cents a year earlier. Total sales shot up 8.8% to $2.56 billion. Analysts, on average, projected an adjusted a per-share loss of 3 cents on $2.36 billion in sales.

Revenue from seeds and genomics, Monsanto's biggest business, surged 25% to $1.57 billion. Sales in its agricultural productivity segment, meanwhile, slid 9.7% to $997 million.