Monday November 7 Ag News

NEBRASKA CROP PROGRESS AND CONDITION

For the week ending November 6, 2016, above normal temperatures combined with dry conditions promoted fall harvest activities, according to the USDA’s National Agricultural Statistics Service. Temperatures averaged nine to twelve degrees above normal. Rain was limited to a few south central counties, with less than one-half inch received. Most of the harvest activities were focused on corn acres. There were 6.9 days suitable for fieldwork. Topsoil moisture supplies rated 14 percent very short, 35 short, 50 adequate, and 1 surplus. Subsoil moisture supplies rated 12 percent very short, 29 short, 58 adequate, and 1 surplus.

Field Crops Report:
Corn harvested was 84 percent, equal to last year, and near the five-year average of 83.

Sorghum harvested was 91 percent, ahead of 80 last year and 84 average.

Soybeans harvested was 96 percent, near 98 last year and 99 average.

Winter wheat condition rated 2 percent very poor, 10 poor, 33 fair, 49 good, and 6 excellent.

Alfalfa fourth cutting was 96 percent.

Livestock, Pasture and Range Report:
Pasture and range conditions rated 7 percent very poor, 12 poor, 29 fair, 48 good, and 4 excellent.  Stock water supplies rated 2 percent very short, 14 short, 83 adequate, and 1 surplus.



IOWA CROP PROGRESS & CONDITION REPORT

 Despite 6.0 days suitable for fieldwork statewide during the week ending November 6, 2016, corn for grain and soybean harvest progress remains behind both the previous year and the five-year average, according to the USDA, National Agricultural Statistics Service. A wide variety of activities were performed during the week, including chopping and baling corn stalks, tillage, tiling, and manure and fertilizer applications. Corn for grain continued to be piled outside as storage becomes tighter.

Topsoil moisture levels rated 1 percent very short, 7 percent short, 85 percent adequate and 7 percent surplus. Subsoil moisture levels rated 1 percent very short, 5 percent short, 83 percent adequate and 11 percent surplus.

Eighty-six percent of the corn crop for grain has been harvested, 4 days behind last year and 1 day behind the five-year average. Moisture content of all corn for grain being harvested in Iowa dropped to 16 percent. Ninety-five percent of the soybean crop has been harvested, 1 week behind last year, and 5 days behind normal. Corn and soybean harvest in southwest and south central Iowa continues to lag behind the rest of the State.

Grain movement from farm to elevator was rated 62 percent moderate to heavy. Off-farm grain storage availability was rated 69 percent adequate to surplus. On-farm grain storage availability was rated 62 percent adequate to surplus.

Livestock conditions were described as excellent with drier than normal feedlots for this time of year when compared to the previous 2 years.



USDA Weekly Crop Progress

Corn and soybean harvest are now both slightly ahead of the average pace, according to USDA's latest Crop Progress report released Monday.  The nation's corn crop was 86% harvested as of Sunday, compared to 75% last week, 91% last year and an 85% average.  Meanwhile, 93% of the soybeans were harvested as of Sunday, compared to 87% last week, 94% last year and a 91% average. 

The winter wheat crop was 91% planted, even with a year ago and slightly below the five-year average of 92%. Seventy-nine percent of the crop had emerged, up from 78% a year ago and also above the five-year average of 78%.  Winter wheat condition held steady from the previous week at 58% good to excellent.

Cotton harvested was reported at 56% compared to 46% last week, 56% last year and a 60% average. Sorghum harvest was 84% complete, compared to 76% last week, 83% last year and a 78% average.



Soil Moisture Spurs Brazil Planting

Better conditions for early growth have Brazil soybean planting ahead of both last year and the five-year average.

Soybean planting in Brazil is off to a strong start. Brazilian agricultural consultancy Safras and Mercado reports that, as of Nov. 4, Brazilian farmers had finished 52.5% of their planting. This rate is more than 10% percentage points ahead of 2015's 42.3%, and is also ahead of the five-year average of 48.7%.

In Mato Grosso state, Brazil's most important soybean producer, planting was 82% finished, while in Parana state farmers had finished 73% of their planting work, planting work, according to Safras.

Forecast rain for Brazil calls for 1.5 to 3 inches in Mato Grosso and Goias during this week, and one-tenth to one-half inch in Rio Grande do Sul, Parana, and Mato Grosso do Sul. The lighter rains in southern Brazil will favor additional planting, while the heavier rains farther north will continue to support soil moisture recharge.



MARKET JOURNAL ROADSHOW TO ADDRESS AG OUTLOOK, MANAGEMENT DECISIONS

    The 2016 Market Journal Roadshow will focus on ag outlook and management decisions for Nebraska farmers and ranchers at four locations across the state from Nov. 28 to Dec. 2. The roadshow is in collaboration with the University of Nebraska-Lincoln's Department of Agricultural Economics' Cornhusker Outlook Series. There is no cost to attend.

    The roadshow will provide an opportunity to gather information on the current agricultural outlook and apply it to management decisions for 2017 and beyond, according to Brad Lubben, Nebraska Extension policy specialist and series organizer.

    "With lower commodity price prospects and profit potential right now, producers are looking closely at production, marketing and financial decisions to manage successfully in this challenging environment," Lubben said. "Our annual outlook series, combined with the focus and attention of the Market Journal television show, provides the right information at the right time to help producers analyze and make management decisions today to prepare and position operations for the year ahead."

Meeting locations are:
    > Kearney, Nov. 28, 1 to 4 p.m., Holiday Inn, 110 Second Ave.
    > Sidney, Nov. 29, 9 a.m. to noon MST, Country Inn and Suites, 664 Chase Blvd.
    > Norfolk, Dec. 1, 1 to 4 p.m., Lifelong Learning Center, 701 E. Benjamin Ave.
    > Lincoln, Dec. 2, 9 a.m. to noon, Nebraska Innovation Campus Conference Center, 2021 Transformation Drive.

    The roadshow is structured for a concise, fast-paced discussion of crop, livestock, policy, financial, weather and climate outlook with attention to production, management and marketing decisions for 2017.    

Presenters include:
    > Jay Parsons, Nebraska Extension economist, will draw on his expertise in risk management to incorporate the marketing, production, policy and financial discussion into risk-management decisions.
    > Tina Barrett, director of Nebraska Farm Business, Inc., will be the keynote speaker and discuss farm financial outlook and financial management decisions ahead for producers.
    > The Nebraska Department of Agriculture will present results and implications from a recent survey on farm finance conducted in partnership with the university's Department of Agricultural Economics.
    > Jeff Wilkerson, host of Market Journal, will convene an ag outlook panel featuring Cory Walters, Nebraska Extension crop economist; Lubben; and a livestock economist to be named. The panel will discuss the current price environment and market outlook for Nebraska crop and livestock producers as well as the policy outlook, with implications for production, marketing and risk management decisions in the year ahead.
    > Al Dutcher, Market Journal weatherman and Nebraska Extension agricultural climatologist, will discuss the weather and climate outlook.

    Pre-registration for the roadshow is requested. For more information and to register, visit http://marketjournal.unl.edu/roadshow.



NDA ANNOUNCES NEBRASKA AG YOUTH COUNCIL MEMBERS

Today, Nebraska Department of Agriculture (NDA) Director Greg Ibach announced the selection of the members of the 2016-2017 Nebraska Agricultural Youth Council (NAYC). The Council is comprised of Nebraska college students who have a passion for agriculture and who are committed to promoting the ag industry around the state. NDA sponsors NAYC and its activities throughout the year.

 “Agriculture is the number one industry in Nebraska offering a diverse and interesting range of career choices,” said NDA Director Greg Ibach. “These Council members will have many opportunities to talk with Nebraska’s youth about agriculture and all the careers available in the industry.”

 The NAYC is entering its 46th year with the installation of this group of Council members. Throughout the year, the Council coordinates several agricultural learning experiences for Nebraska youth including: visiting elementary classrooms to discuss where food comes from; taking urban youth to experience farms and what a day in the life of a farmer is like; and visiting with high school students from across the state. The primary focus of NAYC is to coordinate the annual Nebraska Agricultural Youth Institute, a five-day summer conference for current high school juniors and seniors.

“NAYC members are the future leaders of our agricultural industry,” said Ibach. “I’m excited to see what these students can accomplish during their time on the Council.”

This year’s Council is comprised of 21 young men and women. The 2016-2017 NAYC leadership includes:
·         Head Counselors: Rebecca Cornelius, Madrid, and Maggie Louthan, Smithfield;
·         President: Rachel Ibach, Sumner;
·         Secretary: Amanda Kowalewski, Gothenburg;
·         Vice President of Promotions: Grant Suddarth, York;
·         Vice President of NAYI Development: Sarah Wollenburg, Beatrice;
·         Vice President of Communications and Social Media: Logan Kalkowski, Omaha;
·         Vice President of Sponsorship and Alumni Relations: Ryan Schroeder, Wisner;
·         Vice President of Youth Outreach: Hannah Borg, Wakefield; and
·         Vice President of NAYI Improvement: Hunter Schroeder, Howells.

Additional NAYC members include: Eric Leisy, Wisner; Kate Likens, Swanton; Brent Miller, Lyons; Matthew Morton, Nehawka; Brandon Nichols, Bridgeport; Jacob Schlick, Fairfield; Hannah Settje, Raymond; Kevin Sousek, Malmo; Landon Swedberg, North Platte; Collin Thompson, Eustis; and Grant Uehling, Uehling.

To learn more, visit the NAYI website at www.nda.nebraska.gov/nayi/ or search for Nebraska Agricultural Youth Institute on Facebook.



Farmers & Ranchers College Returns Dec. 14 

David Kohl, agricultural economics professor emeritus at Virginia Tech University, will present the first of four programs in the 2016-17 Farmers and Ranchers College.

Kohl, who received his M.S. and Ph.D. degrees in agricultural economics from Cornell University, for 25 years was professor of agricultural finance and small business management and entrepreneurship in the Department of Agricultural and Applied Economics at Virginia Tech.

As facilitator of the United States Farm Financial Standards Task Force and member of the Canadian Agricultural Financial Standards Task Force, Kohl was a leader in establishing guidelines for the standardized reporting and analysis of agricultural producers' financial information on a national and international basis. Kohl's personal involvement with agriculture and interaction with key industry players have provided him with a unique perspective into the future trends of the agricultural industry and economy, insights he plans to share during his Dec. 14 presentation, Ag at the Crossroads.

2016-17 Farmers & Ranchers College Program Schedule
December 14 — Agriculture at the Crossroads with David Kohl, professor emeritus, Department of Agricultural and Applied Economics, Virginia Tech University, at the Opera House in Bruning from 1-4 p.m.
January 31 — Partners In Progress Beef Seminar Cow/Calf College at the US Meat Animal Research Center near Clay Center from 10 a.m. - 3:30 p.m. Registration at 9:30 a.m.
February 22 — Managing for Difficult Times (Cutting Costs Without Cutting Yields) at Fillmore County Fairgrounds, Geneva from 9:30 a.m. - 3 p.m. Registration at 9 a.m.
February 27 — Tips and Tricks for the Women of Agriculture at Lazy Horse Winery near Ohiowa. Registration at 5:45 p.m., followed by the program at 6 p.m.

The Farmers and Ranchers College was formed in January 2000 to provide high quality, dynamic, up-to-date educational workshops for agricultural producers in south central Nebraska through a collaborative effort among business, industry and higher education leaders. The programs provide tools to help agricultural producers respond positively to these changes using a profitable decision-making process.

Please note: Programs are free; however, preregistration for the January and February events is appreciated to provide for a meal count. Please call the Fillmore County Extension Office at (402) 759-3712 one week prior to the program to reserve your spot.

The Farmers and Ranchers College Committee consists of Fred Bruning of Bruning, Bryan Dohrman of Grafton, Sarah Miller of Carleton, Jennifer Engle of Fairmont, Ryne Norton of York, Jim Donovan of Geneva, Bryce Kassik of Geneva, Eric Kamler of Geneva, and Brandy VanDeWalle of Ohiowa.



USMEF Conference Concludes with Election of New Officers

The U.S. Meat Export Federation (USMEF) Strategic Planning Conference wrapped up Friday, Nov. 4 with the election of new officers. USMEF chairman for 2016-2017 is Bruce Schmoll, a soybean and corn producer from Claremont, Minnesota, where he lives with his wife, Tarrie. Schmoll is a past president of the Minnesota Soybean Growers Association and for several years has represented the oilseed producing sector on the USMEF Executive Committee.

Schmoll has also served on his county planning and zoning board and on a township board of supervisors. He drew on that experience when addressing USMEF members, reminding them of the opposition and obstacles livestock producers often face when attempting to locate or expand hog production or cattle feeding facilities.

“I know what a devastating effect these proceedings can have on someone, so when we get a chance, we really need to support our livestock producers,” Schmoll said. “They’re trying to grow food for our country and for our international customers, so I just want to share these thoughts and hopefully build more appreciation for the people producing the red meat products that we export.”

Schmoll succeeds Roel Andriessen, Tyson Foods senior vice president for international sales, as USMEF chair. A longtime industry leader is promoting red meat exports, Andriessen has been active with USMEF since the mid-1980s.

Dennis Stiffler, Ph.D., is the new USMEF chair-elect. Stiffler recently retired as chief executive officer of Mountain States Rosen and has 30 years of livestock, meat industry and international marketing experience. He also spent 10 years at major universities involved in teaching, research and extension services.

Serving as USMEF vice chair is Iowa pork producer Conley Nelson, general manager of Smithfield Foods’ hog production division in the company’s five-state Midwest region. Nelson is a past president of the National Pork Board and operates a farm that has been in his family for more than 120 years.

The newest USMEF officer is Idaho cattle feeder Cevin Jones, serving as secretary-treasurer. Along with his brother and other family members, Jones operates Intermountain Beef, a custom feedlot. He is vice chairman of the Federation of State Beef Councils, has served on the National Cattlemen’s Beef Association board of directors and is a past winner of the Idaho Cattle Feeder of the Year Award.

“Exporting red meat is very important for us if we want to expand as livestock producers,” Jones said. “USMEF plays a major role in identifying, opening and developing markets for U.S. red meat, so I look forward to being involved as an officer. When you see the commitment by the stakeholders, the members of USMEF, along with the staff who does such a great job of promoting our products overseas, whether it’s beef or pork or lamb, you understand what makes this a successful organization.”

At its closing business session, the USMEF board of directors approved an update to the organization’s resolution on livestock traceability, which was originally adopted in 2011.

“The updated resolution doesn’t alter USMEF’s fundamental position or approach on traceability, but it better reflects the current trade environment,” Schmoll explained to members. “This resolution more accurately outlines our trading partners’ expectations in the event of an animal disease outbreak. It also eliminates references to the European Union and Japan, since traceability can potentially be an issue in any number of our international markets.”



September Results Show Strong Third Quarter for Red Meat Exports

September was another solid month for U.S. red meat exports, with pork, beef and lamb totals well above year-ago levels, according to statistics released by USDA and compiled by the U.S. Meat Export Federation (USMEF).

September beef export volume was 101,224 metric tons (mt) – down slightly from August, but 27 percent above last September. Third-quarter volume was 307,383 mt, the largest since the fourth quarter of 2014. For January through September, export volume was 8 percent above last year’s pace at 848,930 mt. September export value was up 17 percent from a year ago to $533.3 million. For the first three quarters of 2016, export value was $4.54 billion, down 5 percent from a year ago.

Beef exports accounted for 13.5 percent of total beef production in September and 10 percent for muscle cuts only. January-September ratios were also 13.5 percent and 10 percent, up slightly from a year ago. Export value per head of fed slaughter averaged $256.98 in September, the first year-over-year increase (up 10 percent) of 2016. Through September, export value averaged $253 per head, down 10 percent from last year.

September pork export volume was 183,936 mt – also down slightly from August but up 7 percent from a year ago. For January through September, export volume was 5 percent above last year’s pace at 1.66 million mt. September export value was up 8 percent from a year ago to $491 million, while January-September export value was $4.27 billion, up 1 percent from the same period last year.

Exports accounted for 24 percent of total pork production in September and 20 percent for muscle cuts only. January-September ratios were 25 percent and 21 percent, up slightly from last year, mainly reflecting growth in variety meat exports to China/Hong Kong. Export value per head slaughtered averaged $48.29 in September, up 3 percent year-over-year. January-September export value was down slightly, averaging $49.24.

“Red meat exports continued to build positive momentum in September, and it couldn’t come at a better time,” said Philip Seng, USMEF president and CEO. “We have large supplies of pork and beef hitting the market and moving these higher volumes is certainly a challenge. But this is also presenting expanded opportunities in the international markets, as we are able to introduce new cuts and value-added products, and recapture market share from our key competitors.”

Seng noted that while the upward trend in export volume is encouraging, it is also critical that exports contribute to carcass value and deliver returns for the entire supply chain. For example, per-unit values for pork exports have trended higher since June, and chilled beef exports to Asia are performing exceptionally well this year.

September beef exports reach new milestones in Japan, Korea
September beef exports were led by tremendous year-over-year growth in Japan (22,882 mt, up 49 percent year-over-year) and South Korea (14,840 mt, up 75 percent). Export value in these markets also surged, up 32 percent in Japan ($132.1 million) and 83 percent in Korea ($86.6 million). Japan’s imports of U.S. chilled beef surpassed chilled imports from Australia for the first time ever in September, and based on preliminary October data Korea’s total beef imports from the U.S. also topped Australian beef. For January through September, U.S. beef exports to Japan were up 20 percent in volume to 193,457 mt and increased 11 percent in value to $1.12 billion. Exports to Korea were up 33 percent in volume (122,695 mt) and reached $715.5 million in value – up 17 percent from a year ago and on pace to exceed the 2014 full-year record of $847.4 million.

Other January-September highlights for U.S. beef exports include:
-    Strong September results pushed exports to Taiwan 12 percent ahead of last year’s pace in volume (30,064 mt) and up 2 percent in value ($245.6 million). The U.S. holds two-thirds of the chilled beef market in Taiwan, the highest share of any Asian market.
-    Despite a persistently weak peso, beef exports to Mexico were up 8 percent from a year ago to 174,667 mt, including a 10 percent increase in muscle cuts (90,724 mt). Export value to Mexico has trended lower this year, down 9 percent for total exports ($732.5 million) and 10 percent for muscle cuts ($538 million).
-    While January-September exports to Hong Kong were lower in both volume (74,945 mt, down 5 percent) and value ($452.5 million, down 20 percent), September was the second consecutive month of solid year-over-year growth. September exports totaled 9,715 mt (up 19 percent) valued at ($59.5 million, up 17 percent).
-    Fueled by strong growth in Indonesia and Vietnam, exports to the ASEAN region increased 18 percent to 17,797 mt, though value fell 5 percent to $97.4 million. Exports to Indonesia are well-positioned for a strong finish in 2016 following the recent easing of import restrictions in an effort to address the tight beef supply situation.

Strong momentum continues for pork exports to Mexico
After a somewhat slow first half of the year, pork exports to Mexico moved higher in August and continued to climb in September – posting the second-largest monthly volume on record (66,567 mt, up 14 percent from a year ago). September value to Mexico was $131.4 million, up 25 percent from a year ago and the highest since December 2014. For January through September, exports to Mexico pulled within 4 percent of last year’s record pace in volume (510,737 mt) and moved 1 percent higher in value ($939.7 million). USMEF’s efforts to bolster pork demand in Mexico continue to pay dividends, as per capita pork consumption has increased nearly 20 percent since 2011 and now exceeds 40 pounds per year.

Another positive factor for pork exports to Mexico has been the slowdown in shipments to China/Hong Kong, where the product mix tends to be similar. While still well above last year, September exports to China/Hong Kong (36,184 mt, up 26 percent) were down significantly from the May peak of 58,000 mt, reflecting a rebound in China’s domestic pork production. For January through September, exports to China/Hong Kong were up 70 percent from a year ago in volume (406,422 mt) and 57 percent higher in value ($787.3 million).

Other January-September highlights for U.S. pork exports include:
-    While pork exports to Japan were below last year’s pace in both volume (289,594 mt, down 8 percent) and value ($1.16 billion, down 5 percent), higher-value chilled exports remain on a record pace – climbing 10 percent from a year ago to 164,087 mt. During periods of large U.S. production, chilled exports to Japan provide an especially important outlet for loins and butts.
-    A rebound in Korea’s pork production led to a slow start for U.S. exports in 2016, but exports to Korea are poised for a strong finish as September results moved higher year-over-year for the second consecutive month. Compared to last year’s large totals, January-September exports to Korea were down 27 percent in volume (94,774 mt) and 33 percent in value ($252.1 million).
-    Exports to Colombia have slowed in 2016 (24,851 mt, down 22 percent, valued at $56 million, down 30 percent) due to a spike in domestic pork production and other headwinds, including the weak Colombian peso. But exports to Colombia rebounded in September, climbing 35 percent in volume (3,456 mt) and 29 percent in value ($8.2 million).
-    Pork exports to Central America cooled in September but remain well above last year’s pace in 2016, totaling 46,426 mt (up 16 percent) valued at $110 million (up 11 percent). Exports were higher year-over-year in mainstay markets Honduras and Guatemala and more than doubled to Nicaragua, as every Central American market except Belize is currently a top 20 volume destination for U.S. pork.

Lamb exports improve in September
September exports of U.S. lamb totaled 740 mt, up 19 percent from last year’s low volume, while export value was $1.68 million – up 26 percent from a year ago and matching the highest monthly value of 2016. Exports to leading market Mexico edged higher in September and it was also a strong month for exports to the Bahamas, Canada and the Philippines. For January through September, lamb exports were 3 percent below last year’s pace in volume (6,520 mt) and down 7 percent in value ($13.4 million).



BASF and FMC Corp Announce Agreement to Bring Next Generation of Crop Care to the Corn Furrow

BASF and FMC Corporation (NYSE:FMC) announced an agreement that brings novel in-furrow crop protection products to the U.S. corn market. The companies will integrate their market-leading insect and disease protection technologies into new products formulated with the convenient LFR® patented technology from FMC.

BASF and FMC will deliver unprecedented in-furrow insect and disease protection. These new products include market-leading active ingredients, the same technology found in Headline® fungicide and in FMC proprietary LFR formulations in Capture® LFR® Insecticide. The unique LFR technology is unmatched in its ability to mix readily with liquid fertilizers, provide consistent active ingredient distribution, and stay in suspension for uniform application from the first acre to the last.

“The LFR technology brings greater convenience, simplicity and dependability to our customers,” said Scott Stout, Corn Fungicide Products Manager, BASF. “FMC is a recognized liquid in-furrow leader, and our customers will benefit from our leading disease control and plant health fungicide with the best below-ground insect control and in-furrow insecticide formulation technology available.”

“The collaboration combines the core competencies of two market leaders. FMC is an in-furrow formulations technology leader and BASF is a fungicide active ingredient leader,” said Rick Ekins, fungicide and insecticide portfolio manager for FMC. “This alliance allows both companies to help our customers take yields and profits to the next level. In-furrow protection has never been so convenient or powerful.”

Companies to launch new products
Each company will offer new products as a result of the agreement. For 2017, BASF will launch Manticor™ LFR® In-Furrow Fungicide/Insecticide. FMC will launch Temitry™ LFR® Insecticide/Fungicide. EPA registration has been granted for both products.

According to Stout and Ekins, BASF and FMC are developing new solutions that will sustainably feed a growing world population.

“As an industry, we need new tools to push yield potential higher without using more of our natural resources,” said Stout. “These kinds of collaborations help us reach that goal.”



CoBank Reports Lower Incoming During Third Quarter

CoBank, a cooperative bank serving agribusinesses, rural infrastructure providers and Farm Credit associations throughout the United States, announced financial results for the third quarter and first nine months of 2016. Net income for the third quarter decreased 2 percent to $231.7 million, compared to $235.8 million in the third quarter of 2015. For the first nine months of 2016, net income increased 3 percent, to $718.3 million.

The primary reason for the quarter-over-quarter decrease in net income was a $20 million provision for loan losses, compared to no provision taken in the same period last year. The third-quarter 2016 provision reflects a higher level of lending activity and deterioration in credit quality in the bank's Agribusiness operating segment. Net interest income for the third quarter was $334.0 million, a 6 percent increase compared to $315.2 million in the same period last year. For the first nine months of 2016, net interest income increased 8 percent to $1.017 billion, compared to $939.8 million in the prior-year period.

The increase in net interest income was primarily driven by higher average loan volume and increased earnings on balance sheet positioning, somewhat offset by lower overall spreads in the bank's loan and investment portfolios. Average loan volume rose 9 percent during the quarter to $90.9 billion, from $83.2 billion in the third quarter of 2015.

"CoBank continues to perform very well despite market conditions that remain challenging, including stresses in key sectors of the U.S. rural economy," said Bob Engel, CoBank's chief executive officer. "We are pleased with our results for the quarter, but our primary focus continues to be supporting our customers and ensuring they have access to the dependable credit and financial services they need to be successful."

At quarter-end, 0.75 percent of the bank's loans were classified as adverse assets, compared to 0.70 percent at December 31, 2015.

The bank's allowance for credit losses totaled $647.9 million at quarter-end, or 1.45 percent of non-guaranteed loans when loans to Farm Credit associations are excluded.