Thursday November 10 Ag News

Financial Stress in Farm Sector Shows Slow but Steady Increase
Nathan Kauffman, Assistant Vice President and Omaha Branch Executive
Matt Clark, Assistant Economist

Third Quarter 2016A slow but steady rise in financial stress in the farm sector continued in the third quarter of 2016 as income in the sector remained low. Persistent weakness in both the crop and livestock sectors has caused producers to expend more working capital to meet short-term financial obligations. An ongoing decline in farmland values and cash rental rates has accelerated slightly under prolonged pressure from falling farm income. Alongside increased risk in the Tenth District’s agricultural economy, bankers reported an increase in collateral requirements for agricultural loans and declines in available funds and farm loan repayment rates.

Farm Income
Low commodity prices continued to weigh on farm sector profits in the third quarter. As of the end of September, cattle and hog prices were 21 percent and 14 percent less, respectively, than a year ago, and profit margins remained poor. Corn and wheat prices also were less than a year ago alongside expectations for 2016 of strong production throughout the District. Soybean prices advanced due to strong export demand during the late summer months, and some producers may profit from extremely strong yields this fall. However, profit margins in the quarter generally remained weak  throughout the agricultural sector.

Amid tightening profit margins, respondents to the Tenth District Survey of Agricultural Credit Conditions reported additional declines in farm income. In fact, more than 87 percent of bankers reported a decline in farm income in the third quarter from the same quarter a year ago. Respondents also noted that capital and household spending continued to decrease alongside falling farm income.

The decline in farm income in the District has taken a bigger bite out of farm borrowers’ working capital. More than 90 percent of bankers reported some deterioration in the level of working capital among borrowers in the crop sector, versus just 1 percent of bankers that reported an improvement from a year ago. Moreover, nearly 30 percent of bankers reported a significant deterioration in working capital from a year ago, about twice the number at the same time in 2015. Because working capital is an important buffer against potential financial difficulties, additional deterioration could result in some borrowers becoming more highly leveraged as they continue to try to support operations through short-term financing.

Farmland Values and Cash Rents
Ongoing weakness in the District’s farm economy in the quarter caused a more significant decline in farmland values. The value of each type of farmland—nonirrigated cropland, irrigated cropland and ranchland—fell more than 6 percent from a year ago. The decrease in the third quarter was the sharpest year-over-year reduction in the value of each type of farmland throughout the District since the mid-1980s. However, the declines have remained relatively modest. For example, the survey indicated irrigated cropland that might have been valued at $7,000 per acre in 2014, on average, would have been about $6,450 in the third quarter of 2016.

Evidence of steepening declines in farmland values was seen throughout the District. Except for western Missouri, the value of nonirrigated cropland decreased in all District states. Similarly, the value of irrigated cropland fell in all but the Mountain States, and cropland values declined at a significantly sharper pace in Kansas. In addition, ranchland values decreased in all states in the District for only the second time since 2002.

Similar to farmland values, cash rental rates for both cropland and ranchland decreased in the third quarter, following a recent trend of sharper declines. In the third quarter, cash rent for both irrigated and nonirrigated cropland was down nearly 10 percent from a year ago. The reduction in cash rents, the result of persistently weak profit margins for farm operations throughout the District, may represent a significant reduction in costs in the coming months at a time when revenue has remained relatively weak.

Credit Conditions
Reduced farm income has continued to weaken credit conditions in the agricultural sector in the District. Demand for farm loans, as well as renewals and extensions, increased in the third quarter alongside additional declines in repayment rates for farm loans. The third quarter started a fourth year of increasing demand for farm loans and renewals and extensions, following a period of relatively subdued demand for farm loans and strong repayment rates. Loans used to pay operating expenses have remained a primary driver of increased demand for financing. In 2016, operating loans have comprised nearly 60 percent  of the volume of all non-real estate loans at commercial banks nationally, and have supported a steady increase in total outstanding farm debt.

Decreasing repayment rates for farm loans pointed to rising financial stress for farm borrowers. More than half of bankers surveyed in the third quarter reported loan repayments had decreased, while less than 2 percent reported an improvement. As evidence of relatively widespread deterioration in agricultural credit conditions, no state in the District had more than 4 percent of bankers report stronger repayment rates, and none of the respondents from Kansas or Missouri reported an improvement. Moreover, bankers in each District state indicated they expect repayment rates to decline again in the fourth quarter.

The widespread decline in the rate at which farm loans are being repaid likely has been due to intensifying weakness across all segments of the Tenth District farm economy. For instance, when asked about near-term repayment rates by industry, bankers indicated they expect additional declines in loan repayment rates for each major industry in the Tenth District agricultural economy.  Some segments of the livestock sector that had been relatively strong as recently as 2014 have weakened significantly over the past year.

Weakening credit conditions have caused bankers to add more farm borrowers to their watch and classified lists. In the third quarter, bankers reporting an increase from the previous year in the number of farm borrowers on their watch list grew to 58 percent from 30 percent in 2015. Likewise, 44 percent recorded some increase of farm borrowers on the classified list, up from 21 percent in 2015. Bankers also indicated they expect additional increases to the watch and classified lists. In fact, nearly 60 percent of bankers indicated they anticipate the volume of loans on their watch list will increase in the next three months.

Agricultural Lending
As the risks in the farm sector have grown, some banks have made adjustments to lending terms for their agricultural portfolio. For example, bankers reported a notable increase in the amount of collateral required to obtain farm loans. While collateral requirements have increased steadily over the past few years, the rate of increase has been steeper in recent quarters. In fact, the share of bankers that indicated collateral requirements had increased in the third quarter was the highest in 25 years, according to the survey. In many cases, agricultural lenders increasingly have relied on farm borrowers’ real estate as a source of collateral for other agricultural loans.

In addition to increased collateral requirements, bankers also reported fewer funds available for financing than a year ago. The decline in available funds, which has persisted for nearly two years, was preceded by nearly nine consecutive years in which bankers reported consistent increases in financing availability, a time when the District’s agricultural economy was extremely strong. The recent period of reduced farm income and increased demand for farm loans, however, likely has cut into funds available for financing.

Bankers also raised interest rates on farm loans, particularly for variable rate loans. Although variable interest rates for operating, machinery and farm real estate loans generally remained low, each of these rates increased in the third quarter. Variable interest rates on farm operating loans, which typically comprise the largest share of farm lending at agricultural banks in the District, increased to an average of 5.4 percent. Fixed interest rates for machinery loans also increased in the third quarter, whereas fixed interest rates for operating loans remained steady; interest rates for farm real estate loans continued to edge lower.

Conclusion
The pressure that has been building in the Tenth District’s farm economy continued at a modest pace in third quarter. Agricultural credit conditions and farmland values deteriorated more rapidly under prolonged pressure from low commodity prices and tight profits margins. Although defaults on farm loans remain low, bankers indicated they expect farm income, farmland values and repayment rates to dip further in the coming months. If these expectations hold, the slow but steady increase in farm financial stress appears likely to continue.



Annual report highlights the Water for Food Global Institute’s steps to ‘move the needle’ toward water and food security

Now in its sixth year, the Robert B. Daugherty Water for Food Global Institute (WFI) continues to make progress in leveraging the University of Nebraska’s expertise to address one of the biggest challenges of our time: ensuring a water and food secure world for future generations.

In fiscal year 2016, the institute and its many partners helped fuel dynamic advancements in water and food security within selected areas of the world — from Nebraska to the Middle East. WFI, along with university faculty, worked alongside farmers, scientists and communities, and forged partnerships with key national and international organizations.

The institute’s most recent annual report is now available, highlighting WFI’s outcomes through collaborative initiatives and partnerships.

The report outlines the institute’s impact in the following areas:
-    Closing water and agricultural productivity gaps
-    Improving groundwater management for agricultural production
-    Enhancing high productivity irrigated agriculture
-    Freshwater and agricultural ecosystems and public health
-    Education and engagement
-    Communications

Together with partners, researchers and scientists, including 84 Faculty Fellows from across the University of Nebraska’s four campuses, the WFI achieved success in three notable areas. These projects are launched, funded and showing much promise:

    Partnership with the Indo-U.S. Science and Technology Forum and the Department of Science and Technology of the Government of India. Ten doctoral students and postdoctoral fellows are working in Nebraska on some of the world’s most severe water and food challenges, using exciting new technologies.

    WFI’s work in the Middle East and North Africa region is advancing rapidly, addressing drought through the use of geospatial mapping and monitoring to improve irrigation management and crop productivity. This work is funded by the U.S. Agency for International Development and is carried out in collaboration with the National Drought Mitigation Center at the University of Nebraska–Lincoln and the Dubai-based International Center for Biosaline Agriculture.

    WFI’s signature event, the Water for Food Global Conference, has come of age. The seventh conference, held for the first time at Nebraska Innovation Campus in April, drew more than 350 participants. Sixty speakers from around the globe shared their expertise on leveraging public-private partnerships for improved water and food security in the 21st century.



CFRA Report examines benefits renewable energy projects provide for rural Midwest and Great Plains

Today the Center for Rural Affairs released a report titled Link to Rural Development and a Renewable Future, that examines the benefits that renewable energy projects provide for the Midwest and Great Plains.

“The United States continues to develop new clean and renewable energy resources to replace aging, carbon-emitting generating facilities. Much of the new renewable energy generation can be found in lightly populated rural areas. These locations often host significant resources for renewable energy generation and provide ample space for new development, especially from wind energy,” says Lu Nelsen, Center for Rural Affairs Energy and Climate Program Associate and author of the report.

“Wind energy projects contributed a significant portion of new generation completed in 2015, making up 41 percent of a total 14,468 megawatts built last year,” Nelsen continued. “Many of these new additions were located in the Midwest and Great Plains, regions of the country that boast some of the richest wind energy resources in the nation. Rural communities in these regions stand to benefit from new renewable development, as projects provide new economic activity and revenue for these areas.”

Projects provide new tax revenue to rural communities and supply added income for landowners. Also, the building and operation of these facilities bring new jobs to the area. The Bureau of Labor Statistics noted that wind turbine technicians are the fastest growing profession in the country. The Department of Energy estimates the wind energy industry could support up to 380,000 jobs by 2030, a significant increase over the current 88,000 jobs. However, while rural areas have significant potential to generate renewable wind energy, development has traditionally been hindered by a lack of means to transmit that power.

To view or download a full copy of the report go to: http://www.cfra.org/node/6483.

According to Nelsen, without sufficient transmission, there is a limit to renewable energy development in rural places. Transmission infrastructure has been a persistent barrier to renewable energy in the Great Plains and Midwest, especially for rural areas. Electric transmission was traditionally built to service areas with sizeable populations or provide service directly to large individual generating units, leaving rural production areas without necessary transmission capacity.

“Without improved electric transmission infrastructure to transport new renewable energy to market, developers are less likely to continue building renewable generation on pace with previous years. For the renewable energy industry to continue to grow, the transmission system must be updated to connect areas where projects are developed to the larger grid and to deliver renewable power to consumers,” concluded Nelsen.



 Export Numbers Show Dramatic Increase In Corn, Other Grain Product Exports Last Month

U.S. Department of Agriculture (USDA) export data for the month of September, the first in the 2016/2017 marketing year, showed a dramatic increase in exports of feed grains in all forms, a bright spot in the overall challenging farm economy.

Total feed grains in all forms - which includes corn, sorghum, barley, meats, ethanol and distiller’s dried grains with solubles (DDGS) - in September were up nearly 34 percent from September 2015.

With 10.7 million metric tons (421 million bushels) of feed grains in one form or another exported, the month was also one of the strongest for exports in recent memory and a hopeful way to begin the new year for farmers and agribusinesses looking at record grain crops.

U.S. corn exports in September increased 89 percent to 6.3 million metric tons (248 million bushels) from year ago levels; shipments to Japan, South Korea, Peru and Taiwan more than doubled. The top three customers for U.S. corn in September 2016 were Japan, Mexico and South Korea, respectfully.

Exports of U.S. ethanol also rose sharply as monthly exports hit almost 100 million gallons for the first time since December 2011, up 59 percent from the previous September and representing 903,000 metric tons (35 million bushels) of corn equivalent.

This boom included a return of China to the market after three months of no denatured shipments at all. Overall, Canada, Brazil and China ranked as the top three destinations for U.S. ethanol, and all three saw significant gains from a year ago. Ethanol exports to Singapore and the Philippines increased two fold.

U.S. exports of all three meats included in feed grains in all forms calculations -  beef, pork and poultry -  also experienced gains in September, with product weight shipments exceeding 600,000 metric tons, up 14 percent from the previous year. These shipments equated to more than 1.8 million tons (71 million bushels) of feed grains.

Exports of U.S. corn gluten feed and corn gluten meal (CGFM) rose almost 10 percent from September 2015. More than 153,000 metric tons of CGFM were exported in September 2016 as opposed to more than 139,000 metric tons in September 2015.

Not every product category experienced an increase in September. Exports of distiller’s dried grains with solubles (DDGS) decreased 14 percent from the same time last year, from more than 1.15 million metric tons to 990,000 metric tons. This was due largely to reduced sales to China, last year’s top market. 

U.S. sorghum exports in September dropped 63 percent from last year, totaling 410,000 metric tons (16 million bushels), also due to reduced sales to China.

U.S. exports of barley dropped 89 percent in September from year-ago levels to 1,700 metric tons (78,000 bushels).



UAN28 Jumps to August Level

Average retail prices for most fertilizers continued to languish in the first week of November, according to fertilizer retailers surveyed by DTN. Five of the eight major fertilizers slipped 1% or less compared to a month earlier.

On a national average basis UAN28 was a notable exception, settling at August levels at $244 per ton, or a 9% spike from the previous month.

Anhydrous settled at $471 per ton, 10-34-0 at $452 per ton, UAN32 at $262 per ton, MAP $451 per ton, DAP at $436/ton, potash at $314/ton, and urea at $319/ton.

On a price per pound of nitrogen basis, the average UAN28 price was $0.44/lb.N, urea $0.35/lb.N, anhydrous $0.29/lb.N, and UAN32 $0.41/lb.N.

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

DAP is down 20%, MAP 19%, 10-34-0 has dropped by 22%, while UAN32 is down 21%. Urea is 21% less expensive, UAN28 is 16% less expensive, anhydrous is 26% lower and potash is 27% less expensive compared to the previous year.



Growth Energy Supports EPA Proposal to Maintain Current Point of Obligation

Today, the Environmental Protection Agency (EPA) proposed denying a petition by a group of merchant oil refiners to change the point of obligation under the Renewable Fuel Standard (RFS). Under the current RFS structure, oil refiners are the parties obligated to blend more renewable fuel into the nation’s transportation fuel supply. The refiners’ petition seeks to change the obligated party from the refinery to those entities that own gasoline before it is blended for retail sale. The EPA announced there will be a 60-day comment period for interested parties to offer their comments.

In response, Emily Skor, CEO of Growth Energy issued the following statement:

“The EPA has made the correct decision in proposing to deny this petition. The RFS is working and refiners have had over 11 years to comply with it. The current structure appropriately incentivizes marketers to blend additional biofuels, and encourages the availability of higher-level ethanol blends to retailers who wish to sell them. The bottom line is that the current point of obligation encourages consumer choice and cost savings at the pump, and any change would undermine the intent of the RFS and reward those parties who have refused to comply with the intent of the law.

“Growth Energy looks forward to providing substantive comments as to why the point of obligation should remain as is.”



Kansas State University researchers aim to heighten feed mill biosecurity

They've come a long way already, but Kansas State University researchers studying the safety of animal food produced in feed mills say they've got plenty more to learn as they work to maintain safe food for animals and humans.

The researchers are trying to protect food from dozens of risks to raw agricultural products entering and leaving the nearly 6,000 feed mills in the United States.

"For many decades, we were manufacturing feed but we really never thought of feed as one of those things that could be bringing some of these diseases into our animals," said Cassie Jones, assistant professor of animal sciences and industry. "Just like food can make humans sick, some contaminated animal food can — rarely, but can — make animals sick."

According to the American Feed Industry Association, nearly 300 million tons of agricultural commodities are processed annually in American feed mills, providing feed for 9.6 billion food-producing animals as well as 70 million dogs and 74 million cats.

Jones and several of her colleagues have focused their research on swine feed, and have been conducting trials in the Cargill Feed Safety Research Center, part of the university's O.H. Kruse Feed Technology Innovation Center.

Kansas State University's mill is considered the only biosafety level-2 facility in the world that can conduct this type of research, using feed processing equipment that is similar to that used in commercial mills.

"A lot of these concepts started with the work we've done previously on porcine epidemic diarrhea virus, or PEDv," said Jason Woodworth, research associate professor of animal sciences and industry.

In 2015, Woodworth and a team of Kansas State University researchers discovered that feed could be a vector for PEDv, a destructive disease that caused an estimated 8 million pig deaths in 2014.

"That whole concept that a virus can be carried in the animal food and infect pigs was something that people thought was a possibility but maybe didn't believe until our research helped prove it," he said.

While their findings on PEDv were a major breakthrough, Kansas State University researchers are also on the lookout for safeguards against other diseases, such as salmonella. One research team hopes to provide solutions against feed contamination from classical swine fever and African swine fever, two diseases present in other countries but not currently in the United States.

Some of the biosecurity measures being implemented in feed mills are familiar to the industry: knowing where trucks have traveled from, washing hands, showering between barns, cleaning boots and controlling foot traffic in and out of the facility, among others.

Newer research includes finding the best ways to clean concrete floors, rubber boots and stainless steel equipment; reducing grain dust, which may carry viruses or toxins; and adding nutrients to feed such as medium chain fatty acids or coconut oil that can provide added protection against target pathogens.

The university's work includes animal scientists, nutritionists, veterinarians, feed scientists and an army of graduate and undergraduate students. Iowa State University and other industry partners have provided help in areas that couldn't be addressed at Kansas State University.

"We're collecting information and doing the research that is going to help the industry define ways that we can do a better job of providing food for the pigs," said Woodworth, who noted that the group's findings should also be transferrable to cattle, chickens, domestic pets and other animal species.

Ultimately, the research will lead to safer food for American consumers.

"The U.S. food supply is the safest food supply in the world," Jones said. "There is not an inherent problem with the food supply currently or with pork or the feed we're manufacturing for swine. By doing this research, we are raising the bar to make us even safer.

"We are trying to understand the lingering issues that could impact animal food safety, as well as understanding some of the things we can do from the feed mill perspective to ensure that the feed and the products that the animals are consuming are not only manufactured in a way that meets all of their nutritional requirements, but are safe at all times."

Jones noted that implementing biosecurity measures on farms many years ago led to animals that were healthier and grew faster with less incidence of disease. She foresees similar benefits by improving feed mill biosecurity.

"Considering the lessons we've learned along the way, we're just at the infancy of applying those across the industry," she said.

The National Pork Board and the U.S. Department of Agriculture have provided most of the funding for the university's work.



Massachusetts Votes to Ban Battery Cages, Crates

Massachusetts voters passed a farm animal welfare ballot measure this week that will improve conditions for livestock while potentially raising prices for consumers.

According to the Boston Herald, beginning on Jan. 1, 2022, the state will prohibit any confinement that prevents pigs, veal calves and laying hens from lying down, standing up, turning around or fully extending their limbs. It also will prohibit the sale in Massachusetts of products from animals confined that way.

"This is a very modest measure to end some of the most egregious conditions animals are kept in," said Rob Halpin, spokesman for the MSPCA-Angell, before the vote.

A coalition calling itself 'Citizens Against Food Tax Injustice' ran TV ads claiming that food prices would skyrocket if Question 3 passed.

"This is non-farmers dictating to farmers how to raise and care for their animals," said Dave Warner, a spokesman for one of the coalition's citizens, the National Pork Producers Council. "This is going to end up costing Massachusetts consumers."

But as far back as 2007, Iowa State University researchers found that group housing for sows may produce piglets at a lower cost than individual gestation stalls, which have been banned in some states and the European Union because they are so small that they do not allow a pig to even turn around.



Ag Scientists Elevate Soil Health Potential at International Meeting
The biggest agronomic, crop science and soil science group in the country this week demonstrated their growing emphasis on the importance of soil health. The Soil Health Partnership, an initiative of the National Corn Growers Association, was invited to give five presentations during the event.

Known as the “tri-societies,” the American Society of Agronomy, Crop Science Society of America, and Soil Science Society of America hosted more than 4,000 scientists, professionals, educators, and students at the 2016 International Annual Meeting, Nov. 6-9 in Phoenix.

“Our level of participation with this critical group of scientists was unprecedented this year, and demonstrates the scientific community is paying close attention to the agricultural and environmental strides we can make through better soil health,” said Nicholas Goeser, SHP director and NCGA director of soil health and sustainability. “It’s important to our mission to engage with this group of scientists.”

The SHP brings environmental, academic, agricultural and governmental partners together in a united mission to identify, test and measure farm management practices that improve soil health and benefit farmers. Those practices include conservation tillage, advanced nutrient management and growing cover crops.

Also this week, SHP takes part in the Foundation for Food and Agriculture Research event for soil research. SHP staff will help guide the FFAR scientific program in the “Healthy Soils, Thriving Farms Challenge Area.” It’s aimed at increasing soil health by building knowledge, fueling innovation, and enabling adoption of existing or new innovative soil health-promoting practices.

The FFAR sessions take place Nov. 9-10 in Phoenix, following the tri-societies event.

“Having a seat at the table at both of these events is an opportunity to create awareness on smart soil practices and research needs,” Goeser said. “Science and data are powerful drivers of change.”



Controlling Lice in Cattle: Now is the Time

If producers notice their cattle rubbing, biting or scratching with irritation at their neck, shoulders and rump — including the loss of hair in those areas — they could be experiencing a lice problem. Lice are a common annoyance to cattle, especially in the winter months. The energy sucking lice rob from the animal can result in anemia, slowed recovery from diseases and decreased gain during infestation.

“Cattle producers and their herds experience more lice problems during the wintertime, by far,” said Jon Seeger, DVM, managing veterinarian with Zoetis. “Now is the time to treat cattle for lice.”

Two different types of lice commonly affect cattle throughout the winter:
·         Sucking lice: With relatively small, narrow heads designed to pierce the skin and suck blood, sucking lice can cause anemia, with production loss in heavy infestations. Sucking lice can do serious damage in large numbers and even kill young calves.
·         Biting or chewing lice: With larger, rounder heads, biting lice feed on skin debris, scabs and blood. Chewing lice do not cause a direct production loss. This biting insect causes severe irritation and discomfort to cattle. Cattle may experience such irritation that they could damage working facilities, fences, trees and feed bunks, using them as rubbing posts for some relief. Their coats may appear rough, with patches of hair loss.

The eggs of both lice types cling to the hair and hatch within 14 days. Adults live up to 28 days, with females laying an average of one egg per day.2

Tips for controlling lice in cattle:
·         Treat cattle for lice during the fall months, beginning in October, as populations are growing.
·         Administer DECTOMAX® Pour On to aid in controlling both biting and sucking lice.
·         Consider a follow-up treatment two to three weeks later to allow time for any eggs to hatch but not mature into adults.
·         Assume lice are present upon receiving a load of cattle. Treat and quarantine the group.
·         Move cattle to a different pasture to avoid any commingling over the fence with untreated cattle, as lice are easily spread.

For more information about lice control and DECTOMAX Pour On, please visit with your veterinarian or Zoetis representative.



Strong 2016 Yields Showcase DuPont Pioneer Hybrids and Varieties

DuPont Pioneer announced 2016 North American harvest results today, and the data show many growers across the Corn Belt have weighed in excellent bushels-per-acre with Pioneer® brand products and services.
   
“Yield results from nearly 50,000 on-farm comparisons validate the value of Pioneer® brand products – hybrids and varieties that our growers ask for by name,” said Steve Reno, DuPont Pioneer vice president, business director — U.S. and Canada. 

“DuPont Pioneer’s commitment to research, breeding and rigorous testing down to the local level benefit growers by providing more consistent product performance across a variety of environments and management practices,” Reno said. “Our focused R&D efforts, combined with a team of local experts and advanced services such as Encirca℠ services, Pioneer® GrowingPoint® agronomy and Pioneer Premium Seed Treatment offerings aim to help growers confidently make the most of every input and maximize productivity every season.”
 
Leading corn products out-perform competitors in on-farm trials
Two Pioneer brand families of products, the world-record-setting P1197 and P0157, illustrate the strong performance of Pioneer brand corn products across North America. Because these families of products are widely adapted across the U.S. Corn Belt, growers planted P1197 and P0157 on several million acres in 2016. They also harvested outstanding yields from these proven performers:
-    The Pioneer brand P1197 family of products provided more than 8 bu/acre yield advantage over the competition in more than 4,800 comparisons from more than 1,250 locations.
-    The Pioneer brand P0157 family of products provided a nearly 9 bu/ac advantage in over 2,000 comparisons from more than 750 locations.

“Our strong performance extends beyond leader products, as DuPont Pioneer has invested in developing a variety of Pioneer brand corn platforms to meet growers’ needs,” Reno said. "Our diverse product portfolio also provides unique offerings from high-performing products such as brown mid-rib (BMR) silage, ultra-early maturities, drought tolerant Pioneer® brand Optimum® AQUAmax® products and Pioneer brand food-grade white and yellow corn hybrids."

Pioneer® brand soybeans leading the industry
“Pioneer brand soybeans strengthened their leadership position among competitors in 2016, demonstrating how Pioneer technology innovations such as AYT 4.0 can bring high-yielding products to market in less time,” Reno said.

For the third consecutive year, the overall yield advantage of Pioneer brand varieties increased across all trials, with top products surpassing competition by nearly 2 bu/acre. This collection of varieties, called the Pioneer leader package, features products with outstanding yields and strong agronomic traits that address a range of disease and insect pressures.

“Bin-busting performance of Pioneer brand soybeans is back and better than ever, and local Pioneer Yield Leaders are the buzz in communities where they are grown,” Reno added.

Even in areas where disease pressure was high, yield performance held strong. The top three Pioneer brand soybean varieties by volume, collectively planted across millions of acres in 2016, all out-yielded the competition:
-    Pioneer variety P28T08R provided nearly 3 bu/acre advantage over the competition, in more than 370 comparisons from more than 140 locations.
-    Pioneer variety P31T11R, the first product developed using AYT 4.0, provided a more than 2 bu/acre advantage in more than 225 comparisons from more than 100 locations.
-    Pioneer variety P22T69R provided nearly 2 bu/acre advantage, in more than 250 comparisons from more than 140 locations.

Additionally, Pioneer® brand Plenish® high oleic soybeans continued to expand to new markets with their introduction into Nebraska and Kansas. The acreage footprint of Plenish high oleic soybeans more than doubled again in 2016 as they added approximately $11 million to the bottom lines of U.S. soybean growers through processor-paid premiums.

“Pioneer is dedicated to expanding the Plenish high oleic soybean market opportunity and increasing the value soybean growers earn from their acres, in collaboration with the United Soybean Board,” said Reno. “As the leader in soybean output traits, Plenish high oleic soybean varieties are helping raise the bar for the soybean industry across the value chain.”



CNH Industrial Brands Win 2017 Tractor of the Year Titles

The global agricultural brands of CNH Industrial N.V., Case IH and New Holland Agriculture, have both succeeded in winning Tractor of the Year 2017 titles, which were announced today at the EIMA 2016 exhibition held in Bologna, Italy. EIMA is a biennial event that hosts some 1,900 companies from 40 countries exhibiting more than 50,000 models of machinery and equipment for all types of agricultural operations.

The TOTY 2017 awards are determined by a jury of professional trade journalists from Europe's top agricultural publications. The jury deliberated over the latest tractor models, with the 2017 edition seeing 15 finalists vie for the four main category titles: Tractor of the Year, Best Utility, Best of Specialized and Best Design. Case IH and New Holland Agriculture were nominated finalists in three of the four categories, winning in the Tractor of the Year and Best Utility categories respectively.

Taking top honors in the awards was Case IH, whose Optum 300 CVX tractor won for a series of determining factors, including its focus on reducing soil compaction and improving fuel efficiency. The model is built at CNH Industrial's plant in St Valentin, Austria. It features a new, strong yet lighter weight design with a robust front axle and structural engine design that meet customer requirements for a 250-300 horsepower tractor with a high power-to-weight ratio and a compact, maneuverable package.

New Holland Agriculture won the Best Utility title for its T5.120 tractor, which is built at CNH Industrial's plant in Jesi, Italy. The new T5 Tier 4B tractor range has been re-engineered to meet the evolving needs of livestock farmers and those who require a nimble, mid-powered tractor for dairy and mixed farming. The T5.120 stands out for its ability to carry out multiple tasks and best-in-class comfort.