Thursday November 3 Ag News

Foley,  Ibach Load First Boxes of Nebraska Beef Headed to Israel

Today, Lt. Governor Mike Foley and Nebraska Department of Agriculture Director (NDA) Greg Ibach were in Hastings, Nebraska to help load a shipment of beef headed to Israel. It was announced in February that WR Reserve, a beef processing company in Hastings, had been approved by the Israeli government as a source for kosher beef for import.

“Currently, WR Reserve is the only Israeli-approved kosher beef facility in the U.S.,” said Lt. Governor Foley. “As a result, the company is planning a $4.5 million expansion that will add approximately 100 jobs to the Hastings area.”

This will be the first shipment of beef from the United States to Israel since the announcement that a 13-year old ban on U.S. beef imports was being lifted. The ban was put in place after a case of bovine spongiform encephalopathy (BSE) was confirmed in Washington State in 2003.

“Nebraska is continuing to be looked at as a primary source of high-quality beef products by countries around the world,” said Director Ibach. “WR Reserve should be commended for meeting all the necessary requirements to get their Hastings facility approved. Having these additional exports shipped to an international market like Israel helps to support farmers and ranchers in the region.”

According to United States Department of Agriculture data, $433 million of beef products were imported by Israel in 2015, with more than 90 percent of those imports coming from South America and the rest from Europe.



Fischer Celebrates First Shipment of NE Beef to Israel

U.S. Senator Deb Fischer (R-Neb.) today released the following statement celebrating the first shipment of U.S. beef to Israel in 13 years. The shipment came from WR Reserve, a beef processing plant located in Hastings, Nebraska.

“Nebraska’s world-class beef is officially on its way to Israel for the first time in 13 years. I was proud to work closely with the Nebraska Department of Agriculture, USDA, and our ambassador in Israel to broker this historic agreement. It’s a big win for the Beef State and the people of Israel. Nebraskans feed the world and re-opening this market increases opportunities for our state’s ag producers, communities, and economy.”

In December 2003, Israel banned beef imports from the United States due to a confirmed case of bovine spongiform encephalopathy (BSE) in Washington state. Senator Fischer played an instrumental role in lifting this ban.

During a visit by Senator Fischer to Israel last fall, U.S. Ambassador to Israel Dan Shapiro asked her to work with the Department of Agriculture (USDA) to bring Nebraska beef to Israel. Senator Fischer worked collaboratively with USDA and officials from the Nebraska Department of Agriculture to lift the ban on U.S. beef imports.



 CHS posts fiscal 2016 earnings of $424.2 million

CHS Inc. (NASDAQ: CHSCP), the nation's leading farmer-owned cooperative and a global energy, grains and foods company, today announced earnings for fiscal 2016 of $424.2 million.

CHS net income for fiscal 2016 (Sept. 1, 2015 – Aug. 31, 2016) of $424.2 million was down 46 percent from $781.0 million for fiscal 2015, reflecting lower pre-tax earnings within the company's Energy and Ag segments, as well as its Corporate and Other category. Lower pre-tax earnings within these two segments were partly offset by increased pretax earnings in its Foods segment, and seven months of earnings from its Nitrogen Production segment which was created by the February 2016 strategic investment CHS made in CF Industries Nitrogen, LLC (CF Nitrogen). These results reflect the continued economic down cycle in the company's core energy and agriculture businesses, as well as the impact of one-time events.

"Like others in our core businesses of agriculture and energy, the ongoing global downturn continued to affect both our earnings and revenues in fiscal 2016," said Carl Casale, CHS president and chief executive officer. "Meeting the long-term needs of our owners and customers remains our priority as we continue to take prudent actions to ensure the company remains financially sound and positioned for future opportunities."

Revenues for the fiscal year were $30.3 billion, down 12 percent from $34.6 billion for fiscal 2015, primarily due to lower prices for the commodity energy, grains and fertilizer products that comprise much of the company's business.

"As fiscal 2017 unfolds, CHS will sustain its focus on its financial and operational priorities. This includes always putting safety first and taking mindful steps to maintain balance sheet strength and profitability," Casale added. "We'll continue to manage expenses and staffing prudently, while making investments in necessary maintenance and essential operational upgrades and ensuring assets deliver appropriate levels of return."

Year-over-year pre-tax earnings for the CHS Energy segment declined 49 percent to $275.4 million for the year ended Aug. 31, 2016, primarily due to significantly lower refining margins for the company's two refineries. Earnings for the company's transportation business also declined. Record performance by CHS propane business for fiscal 2016 was significantly ahead of fiscal 2015 which included reduced crop drying and winter heating demand. The CHS lubricants business also reported record earnings for a second consecutive year.

CHS reports results for its agricultural inputs, grain marketing, local retail and processing businesses under the Ag segment. The company recorded fiscal 2016 Ag earnings before taxes of $30.9 million, down 79 percent from fiscal 2015, a year in which results included a $116.5 million one-time impairment charge resulting from its decision to cease planned development of a nitrogen fertilizer plant at Spiritwood, N.D.

Within the Ag segment, earnings for the company's Country Operations local retail businesses declined primarily due to lower grain margins. This was partially offset by higher grain volumes in fiscal 2016 compared with fiscal 2015. Lower margins also contributed to a decline in earnings for the CHS wholesale crop nutrients business. CHS grain marketing earnings also decreased in fiscal 2016, primarily due to lower margins which were partially offset by higher volumes. CHS Processing and Food Ingredients saw lower year-over-year earnings for fiscal 2016, primarily due to costs associated with the sale and impairment of assets, along with a specific customer receivable and, to a lesser extent, lower soybean crushing margins. The company's renewable fuels marketing and production operations also declined from fiscal 2016 as a result of lower ethanol market prices, also partially offset by increased volumes.

CHS recorded fiscal 2016 income before taxes of $34.1 million, net of allocated expenses, from its February 2016 investment in CF Nitrogen reported in the company's Nitrogen Production segment. In addition, CHS recorded fiscal 2016 pre-tax earnings of $64.8 million, net of allocated expenses, for its ownership in Ventura Foods, LLC, under its Foods segment; these results had previously been reported under the Corporate and Other heading. Within the Corporate and Other category, CHS reported slightly higher earnings for fiscal 2016 for its business services operations, including the company's insurance, risk management and financing businesses, while year-over-year income from its ownership in the Ardent Mills, LLC, wheat milling joint venture declined.

In fiscal 2016, based on fiscal 2015 earnings, CHS returned $515.7 million to its owners as cash patronage, equity redemptions, preferred stock and dividends on preferred stock to its owners. Based on fiscal 2016 results, the company expects to return about $337 million to owners during fiscal 2017.



 Smith Signs Letter to Secretary Lew Opposing New Death Tax Regulations

Congressman Adrian Smith (R-NE) joined 23 fellow House Ways and Means Committee members in sending a letter to Treasury Secretary Jacob Lew today to urge the Treasury Department to withdraw newly proposed regulations which would increase the Death Tax burden on family-owned businesses.

“The Death Tax poses a significant threat to Nebraska’s farmers, ranchers, and small business owners.  They take pride in their hard work, and many want their children and grandchildren to continue it.  Unfortunately, new regulations proposed by the Obama administration would make it even more difficult for these family-owned businesses to survive through the generations.  If we want to grow opportunity in America, the endless roll of red tape must be stopped.”

Smith is also a cosponsor of H.R. 1105, the Death Tax Repeal Act.  The House passed H.R. 1105 last year.



NFU Defends Family Farmers Against Proposed Rule Change to Estate Tax

National Farmers Union (NFU) submitted comments to the Internal Revenue Service (IRS) urging that a proposed rule change for the taxable value of assets be amended to consider family farmers and ranchers.

The law currently provides meaningful relief for family farmers to transfer their farm operations to the next generation through provisions that account for several variations in asset valuation. However, the U.S. Department of Treasury announced in August a regulatory proposal that would remove this provision for all taxpayers without consideration for the unique challenges that farm families face.

“As most businessmen and women consider retirement, farm operators 65 and older make up the fastest growing segment of the farming population. Succession planning is an important aspect of any farm business. It’s essential that our tax laws provide the necessary provisions to ensure farm families can pass on their operations to the next generation without being forced to sell valuable farm land,” said NFU President Roger Johnson.

NFU has long advocated for an effective estate tax with reasonable limitations, Johnson explained. The concern is that “the new proposed regulation will go as far as to deny family farmers essential discounts currently afforded through lawful provisions in the tax code.”

“A majority of a farm’s value comes from real estate, which for farmers, is not viewed as a saleable asset. We are concerned that the changes within the proposed regulation would deny essential discounts to family farms and significantly increase taxes on the transfer of family farms, threatening the ability to keep the operation intact,” he added.

According to the Department of Treasury, the regulations will not take effect until public comments are carefully considered and then 30 days after the regulations are finalized. NFU is requesting the final regulations differentiate family farmers and ranchers from other economic categories considered under this rule.

“Treating family farmers, looking to responsibly transfer their operations, as wealthy individuals using aggressive tax strategies to artificially lower their asset value to avoid paying higher taxes is an unfair representation of family agriculture. I hope the Department of Treasury will take responsible action and consider family farmers and ranchers in their final rule,” Johnson concluded.



USDA Awards $4.3 Million to Ensure Access to Needed Veterinary Services in Rural Communities

The U.S. Department of Agriculture's (USDA) National Institute of Food and Agriculture (NIFA) today awarded more than $4.3 million to 48 American veterinarians to help repay a portion of their veterinary school loans in return for serving in areas lacking sufficient veterinary resources critical to America's food safety, food security, and to the health and well-being of animals and humans. The awards, made through NIFA's Veterinary Medicine Loan Repayment Program (VMLRP), will fill shortage needs in 27 states.

"Veterinarians play a critical role in keeping our nation's food supply safe and animals healthy," said NIFA director Sonny Ramaswamy. "The need for veterinarians in designated shortage areas is urgent. This loan repayment assistance program provides incentives for students to take up rural veterinary practices and help take care of American livestock."

Studies indicate there are significant shortages of food animal veterinarians in certain areas of the nation and in high-priority specialty sectors that require advanced training, such as food safety, epidemiology, diagnostic medicine and public health. A leading cause for this shortage is the high cost of professional veterinary medical training that leaves current graduates of veterinary colleges with, on average, student loan debt of more than $135,000.

New award recipients commit to practice at least three years in a designated veterinary shortage area. Loan repayment benefits are limited to payments of the principal and interest on government and commercial educational loans received for attendance at an American Veterinary Medical Association-accredited college of veterinary medicine resulting in a Doctor of Veterinary Medicine degree or the equivalent.

This is the fourth year NIFA has made renewal awards through VMLRP. Previous awardees that still owe at least $15,000 in educational loans are eligible to apply again, though renewal is not automatic and applications are subject to the same competitive review process as new applications.

In 2016, NIFA received 187 applications and made 48 awards totaling $4,391,144 in benefits. These include 38 new awards totaling $3,563,989 and 10 renewal awards totaling $827,155. New veterinarians who received degrees within the last three years account for 47.4 percent of new loan recipients.

Participants are required to serve in one of three types of shortage situations. Type 1 shortage areas are private practices dedicated to food animal medicine at least 80 percent of the award recipient's time. Type 2 shortages are private practices in rural areas dedicated to food animal veterinary services at least 30 percent of the time. Type 3 shortage areas are dedicated to public practice and awardees must commit at least 49 percent of their time. The new VMLRP awards include 11 Type 1 awards, 32 Type 2 awards and five Type 3 awards.



FSA County Committee Elections to Begin; Producers to Receive Ballots Week of Nov. 7

Farm Service Agency (FSA) Administrator Val Dolcini today announced that the U.S. Department of Agriculture (USDA) will begin mailing ballots to eligible farmers and ranchers across the country for the 2016 FSA County Committee elections on Monday, Nov. 7, 2016. Producers must return ballots to their local FSA offices by Dec. 5, 2016, to ensure their vote is counted.

“Producers elected to FSA county committees play a vital role in local agricultural decisions,” said Dolcini. “Their contributions are essential to the daily operation of nearly 2,200 offices across the country. It is a valued partnership that helps us better understand the needs of the farmers and ranchers we serve.”

Nearly 7,700 FSA County Committee members serve FSA offices nationwide. Each committee has three to 11 elected members who serve three-year terms of office. One-third of county committee seats are up for election each year. County committee members apply their knowledge and judgment to help FSA make important decisions on its commodity support programs, conservation programs, indemnity and disaster programs, and emergency programs and eligibility.

Producers must participate or cooperate in an FSA program to be eligible to vote in the county committee election. Approximately 1.5 million producers currently are eligible to vote. Farmers and ranchers who supervise and conduct the farming operations of an entire farm, but are not of legal voting age, also may be eligible to vote.

Farmers and ranchers will begin receiving their ballots the week of Nov. 7. Ballots include the names of candidates running for the local committee election. FSA has modified the ballot, making it easily identifiable and less likely to be overlooked. Voters who do not receive ballots in the coming week can pick one up at their local FSA offices. Ballots returned by mail must be postmarked no later than Dec. 5, 2016. Newly elected committee members will take office Jan. 1, 2017.

For more information, visit the FSA website at www.fsa.usda.gov/elections. You also may contact your local USDA Service Center or FSA office. Visit http://offices.usda.gov to find an FSA office near you.



Participation Needed in Farm Bill Survey

As the 2018 Farm Bill quickly approaches, the American Soybean Association (ASA) is conducting a survey of producers in states represented by ASA state soybean affiliates on key issues that are likely to be considered by Congress during the process of farm bill negotiations.

The survey results will be collected and summarized in time for discussion at ASA’s Board of Directors meeting in St. Louis on Dec. 7. Additionally, results will provide guidance to the ASA Governing Committee and our Farm Bill Working Group as we begin to discuss farm bill issues with the new Administration, members of the House and Senate Agriculture Committees and returning and new members of Congress in January.

The survey will close on Nov. 25, 2016. Please click here to access the survey... http://asa.informz.net/z/cjUucD9taT02MDMwMDczJnA9MSZ1PTEwNTE4MDE5NTImbGk9Mzg4NjUyOTM/index.html. 



U.S. Sorghum Export Sales Reach Historic Levels

Demand from the export market reached historic levels this week with 16 million bushels of sorghum sold since last Wednesday, according to the U.S. Department of Agriculture Foreign Agricultural Service's Nov. 3 report. This is one of the highest recorded export sales of sorghum in one week.

Two months into the 2016/2017 marketing year, sorghum export commitments have reached 58 million bushels, representing 20 percent of USDA’s 2017 export projections. China is leading sorghum purchases with 40 million bushels—70 percent of total U.S. grain sorghum exports. Meanwhile Mexico has committed to 4 million bushels for the current marketing year followed by Japan. Additional export customers include Canada, Indonesia, South Korea and Nigeria.

"These sales continue to reflect China’s need for high quality feed ingredients," said Florentino Lopez, Sorghum Checkoff executive director. "Maintaining and continuing to enhance and develop marketplaces is critical to helping farmers maximize their profit potential, and the Sorghum Checkoff and U.S. Grains Council remain engaged in current and future markets like China."



Doubts About The Times Article on GMOs

The October 29 New York Times article "Doubts About the Promised Bounty of Genetically Modified Crops" uses loaded language to paint an inaccurate, bleak picture of agricultural biotechnology. Yet, the article itself attempts to make this case in a non-transparent manner that, given the lack of background data provided and analytic reasoning, does not support its own claims.

The National Corn Growers Association recognizes that U.S. farmers make the best possible choices for their businesses and the environment using all available data. The fact that our nation's more than 300,000 farmers have adopted GMO technology on more than 90 percent of their corn acres demonstrates the effectiveness they see in their fields every day. In putting forth that there is no "discernible advantage in yields" provided by GMOs, the author ignores the important role biotech crops played in preserving yield in the face of environmental challenges, such as those seen in the United States in 2010, 2011 and 2012. Farmers, on the other hand, recognize the incredible importance of yield preservation given the innate sensitivity of their livelihood to weather-related events well beyond their control.

In the instance of yield analysis, the author chooses for reasons not provided to use rapeseed data. Yet, when moving on to pesticide claims, he switches without explanation to corn data. Without providing rationale, he blurs the picture and raises doubt about his intentions and the data.

In the section addressing pesticide use, the metrics put forth in the comparison of pesticide usage rates in the United States and France do not give an accurate depiction of how these chemicals are used in each country. The author only includes data for the total usage for two countries with a vastly different amount of land under cultivation, which only demonstrates that U.S. farms use more inputs on a much greater overall area. A better comparison is usage rates per acre or hectare.

Despite citing the National Academies Genetically Engineered Crop Report in his conclusions on yield gains, the author fails to heed the report's admonition not to simply publish data in terms of total pesticide use or use per hectare. Publishing this type of data without also including insights into the human or environmental risks of the pesticide used misleads readers. Surely we can agree that the toxicity of chemicals is more important than the total amount used, but the NYT omits this information.

Farmers care deeply about the soil, water and air. They not only share these precious resources with their urban and suburban neighbors, they rely upon them year after year. This connection to the land makes us keenly aware of the environmental benefits of adopting biotechnology. From decreasing soil erosion by 67 percent between 1980 and 2011 to reducing greenhouse gas emissions by 36 percent in that period, biotechnology has played an important role in facilitating environmental improvements throughout the agricultural industry.

America's family farmers strive to continuously improve the viability and sustainability of their farms, and GMO crops are one of many important tools that help them to do so. In choosing to manipulate data on a safe, proven technology, the author puts sensationalism before journalistic duty.



Farm Bureau Scores Big with Keynote Speakers

Peyton and Archie Manning will keynote the 2017 AFBF Annual Convention & IDEAg Trade Show closing general session on Monday, Jan. 9 in Phoenix.

A future Hall of Fame quarterback, Peyton embodies what it means to be a professional athlete in this day and age, making a lasting impact both on and off the field. He has championed numerous charitable organizations and foundations to further his positive impact on the community, including the PeyBack Foundation, which he founded in an effort to help underprivileged youth in Colorado, Indiana, Louisiana and Tennessee. The two-time Super Bowl champ quarterbacked for the Indianapolis Colts and the Denver Broncos after completing his college career at the University of Tennessee.

"In some of his recent television commercials, the NFL retiree seems to be embracing his football retirement, so we're glad to be able to give him something additional to look forward to," said AFBF President Zippy Duvall. "Peyton Manning is a model of success, with a strong work ethic and proven track record of helping others. We look forward to hearing from him about the importance of teamwork and a good game plan. We think the sports star will feel right at home with the superstars of American agriculture."

A member of the College Football Hall of Fame, Archie enjoyed an impressive college football career at the University of Mississippi that included leading his team to the national championship game, finishing top-four in Heisman Trophy voting twice and twice being named to the All-SEC team. Drafted with the second overall pick in the 1971 NFL Draft, Archie continued his illustrious football career with the New Orleans Saints, Houston Oilers and Minnesota Vikings. Archie has continued to excel post-football, serving as a broadcaster, restaurateur, endorser, founder of the Manning Passing Academy and philanthropist. In everything he does, Archie remains grounded and true to his "hard work means everything" mentality.

"Our annual convention is like a reunion for agriculture and the Farm Bureau Family," added Duvall, "so we're excited that father and son Archie and Peyton will join us and share some of their family's stories with us."

Join us in Phoenix to hear Peyton and Archie Manning! Register today at http://annualconvention.fb.org/.



USDA Dairy Products September 2016 Production Highlights

Total cheese output (excluding cottage cheese) was 981 million pounds, 1.6 percent above September 2015 but 1.8 percent below August 2016.  Italian type cheese production totaled 421 million pounds, 4.4 percent above September 2015 but 0.9 percent below August 2016.  American type cheese production totaled 378 million pounds, 0.3 percent below September 2015 and 2.9 percent below August 2016.  Butter production was 133 million pounds, 0.4 percent below September 2015 but 2.3 percent above August 2016.

Dry milk powders (comparisons with September 2015)
Nonfat dry milk, human - 126 million pounds, up 4.7 percent.
Skim milk powders - 38.4 million pounds, up 43.3 percent.

Whey products (comparisons with September 2015)
Dry whey, total - 74.5 million pounds, down 6.0 percent.
Lactose, human and animal - 91.5 million pounds, up 7.5 percent.
Whey protein concentrate, total - 34.2 million pounds, down 8.7 percent.

Frozen products (comparisons with September 2015)
Ice cream, regular (hard) - 62.2 million gallons, down 4.9 percent.
Ice cream, lowfat (total) - 34.1 million gallons, down 3.8 percent.
Sherbet (hard) - 3.23 million gallons, down 5.2 percent.
Frozen yogurt (total) - 5.12 million gallons, down 9.7 percent.



Zoetis Reports Boost in Quarterly Income

Zoetis Inc. reported its financial results for the third quarter of 2016 and updated its guidance for full year 2016 and 2017. The company reported revenue of $1.2 billion for the third quarter of 2016, an increase of 2% compared with the third quarter of 2015. Net income for the third quarter of 2016 was $239 million, or $0.48 per diluted share, an increase of 26% to both on a reported basis.

Adjusted net income for the third quarter of 2016 was $258 million, or $0.52 per diluted share, an increase of 2% and 4%, respectively. Adjusted net income for the third quarter of 2016 excludes the net impact of $19 million for purchase accounting adjustments, acquisition-related costs and certain significant items.

On an operational basis, revenue for the third quarter of 2016 increased 4%, excluding the impact of foreign currency. Adjusted net income for the third quarter of 2016 increased 6% operationally, excluding the impact of foreign currency.



Zidua PRO herbicide offers soybean growers another option for 2017

Soybean growers now have an additional tool to control weeds in 2017. BASF’s Zidua® PRO (Premium Residual Option) herbicide is a new broad-spectrum product with powerful burndown and residual control that helps growers address the issue of weed resistance. After receiving U.S. Environmental Protection Agency (EPA) registration earlier this year, Zidua PRO herbicide is now in market and available for purchase.

“Zidua PRO herbicide combines three sites of action for consistent control of tough weeds with built-in resistance management,” said Daniel Waldstein, Technical Marketing Manager, BASF. “As a contact burndown and residual pre-emergent, Zidua PRO herbicide helps growers keep fields clean from contact to canopy.”

Zidua PRO herbicide helps provide residual control up to 14 days longer than competitive group 15 herbicides when applied at full rate. Longer residual control means more time to make post-emergent applications, helping growers spray when weeds are less than four inches tall.

Zidua PRO herbicide enters the market during a critical time for soybean growers. With site of action resistance on the rise, a comprehensive approach to weed management offers the best solution to the agriculture community. Zidua PRO herbicide pairs with post-emergent herbicides, containing additional sites of action to effectively control otherwise detrimental weeds and protect against resistance. Currently pending U.S. EPA registration, BASF’s Engenia™ herbicide is a complementary innovation — and the most flexible and advanced formulation of dicamba from BASF for use in dicamba-tolerant soybeans and cotton.

“The pre-emergent residual component of Zidua PRO herbicide provides an effective starting point for season-long control of weeds like Palmer amaranth, waterhemp and marestail,” said Waldstein. “Following up post-emergence with the optimum program, which includes Engenia herbicide after registration, will bring total sites of action up to five. This will help sustain these new chemistries for future generations.”

Zidua PRO herbicide is offered in a single, premix formulation, making handling easier and reducing inventory needs for retailers and growers. It also offers greater planting flexibility with a zero-day planting interval on most soil types. The product label contains details on each soil type.