Weekend Ag News Summary - November 27

Lt. Governor Foley, NDA Assistant Director Travel to Israel to Promote Nebraska Ag

Lt. Governor Mike Foley and Nebraska Department of Agriculture (NDA) Assistant Director Mat Habrock will be in Israel Nov. 27-30 to promote the state's agriculture industry and attend a special dinner reception at the U.S. Ambassador's residence featuring beef from  Nebraska.

The dinner celebrates the arrival of the first shipment from the WR Reserve processing plant in Hastings, Nebraska, the only Israeli-approved kosher beef facility in the United States. Business leaders, politicians and members of the news media will be in attendance at the Ambassador's dinner to commemorate the arrival of U.S. beef to the newly-opened market.

"Along with showcasing Nebraska's quality beef, this trip gives us an opportunity to strengthen existing partnerships and build new relationships to further expand agriculture trade with Israel," said Foley. "Exporting our products to an international market like Israel helps grow Nebraska by creating opportunities for the state's ag producers, communities and the economy."   Earlier this month, WR Reserve announced that the export market spurred a plant expansion and would create 100 new jobs.

"Showcasing beef at special events like this is part of our ongoing effort to tell the story of Nebraska agriculture," said Habrock. "While we're in Israel we're going to work hard to develop and promote the Nebraska brand of excellence and further our state's export efforts for all Nebraska agricultural goods."

In December 2003, Israel banned beef imports from the United States due to a confirmed case of bovine spongiform encephalopathy (BSE) in Washington state. Israel lifted the 13-year-old ban on U.S. beef imports in February 2016. 

According to U.S. 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. Nebraska hopes to claim a significant share of this beef market.



Business Succession and Estate Planning Workshops

Free workshops on business succession and estate planning for farm and ranch owners, families and beginners will be held at several sites across the state this winter. Each workshop will also include a discussion of beginning farmer programs that can aid in succession planning.

To register or for more information on workshop times and specific locations, contact the Rural Response Hotline at 1-800-464-0258.

Topics will include:
-    stages of succession planning;
-    contribution, compensation, and balancing the interests of on-farm and off-farm heirs;
-    the importance of communication, goal-setting, assessing feasibility, and balancing intergenerational expectations and needs;
-    beginning farmer loan and tax credit programs;
-    the use of trusts, wills, life estate deeds and business entities (such as the limited liability company) in family estate and business succession planning; 
-    legal tools for balancing the interests of successors and off-farm heirs;
-    asset protection;
-    taxation (federal transfer taxes, Nebraska inheritance tax, basis adjustment), and
-    essential estate documents.

Speakers will include Joe Hawbaker, agricultural law attorney, with Hawbaker Law Office, in Omaha, and Dave Goeller, deputy director, Northeast Center for Risk Management Education, University of Nebraska Department of Agricultural Economics.

Locations - Additional dates may be announced later...
    Greeley – December 7
    O’Neill – December 8
    York – January 9
    Bridgeport – January 25
    Chadron – January 25 (evening)

This workshop is made possible by the Nebraska Network for Beginning Farmers and Ranchers, the Farm and Ranch Project of Legal Aid of Nebraska, USDA Farm Service Agency, National Institute of Food and Agriculture, the Nebraska Department of Agriculture’s Next Generation Program, and Nebraska Extension. There will be a local meal sponsor at each location.



TEST BEFORE FEEDING CORN STALK BALES
Bruce Anderson, NE Extension Forage Specialist

               Corn stalk bales will provide much needed feed this winter for many producers.  If you’re one of them, be sure to feed them effectively.

               Baled corn stalks are going to provide a lot of feed this winter.  But before you feed those bales, find out what they have to offer nutritionally.  Sample and test your bales as soon as possible so when snow gets deep or other feeds run out you will already know how to best feed your corn stalk bales.

               Begin by testing the bales for protein and energy.  You may be surprised at how variable the protein and energy content can be in corn stalk bales.  I’ve seen protein as low as 3 percent and as high as 7 percent.  Dry pregnant cows need 7 to 8 percent protein in their diet so high protein bales will need only a little extra  protein to adequately care for the cows.  But those 3 percent bales will need quite a bit of supplement to keep cows in good condition.

               Use a protein supplement that is nearly all natural and has sufficient rumen degradable protein.  Maintenance-level forage diets need degradable protein for the rumen microbes, but remember that urea and other non-protein nitrogen sources aren’t used as well.

               Many bales have pretty good TDN levels, nearly 60 percent.  Cows fed these bales should do very well up until calving with just corn stalk bales and adequate protein supplement.  However, stalks rained on before baling can be below 50 percent TDN.  Cows fed these lower quality bales will need some extra energy, too.

               If your bales came from stressed stalks, like from drought or hail, also get a nitrate test to be sure they are safe.

               Good testing of corn stalk bales can help make them a nutritious and safe feed.



Hybrid Turkeys Will Build New Hatchery in Beatrice and Is Looking For New Growers

For the past few months, Hybrid Turkeys has undergone an extensive search for a potential site to build a new hatching facility. After a thorough and comprehensive review, Hybrid Turkeys has announced that they will build the hatchery in Beatrice, NE. On November 21, they announced the land purchase of $60,000.

“This investment in a new turkey hatchery is representative of our commitment to fulfilling the needs of our clients and continuing to support the US turkey industry,” said Peter Gruhl, General Manager, USA.

The hatchery will be located in the northwest corner of the Gage County Industrial Park. It is expected to be operational by July 2017. They plan to hatch around 6 million birds per year and are looking for new Nebraska producer to raise turkeys.

Walker Zulkoski, executive director of NGage, says Hybrid Turkeys is also looking for new growers and they aren’t afraid to truck birds.



 Iowa Cattle Industry Leadership Summit to feature State of the Industry Session

In addition to continuing education for cattle producers and the Iowa Cattlemen’s Association policy committee meetings, the Iowa Cattle Industry Leadership Summit will also feature a State of the Industry panel discussion.

Dr. Phil Reemtsma, current ICA president and veterinarian from DeWitt, will join a representative from the United States Meat Export Federation and a well-known cattle market analyst on stage to dissect the current challenges the cattle industry in Iowa is facing, including increased competition from larger producers out of state and the record drop in cattle prices seen recently.

The panel will also provide an outlook into the future of Iowa’s cattle industry and the role that the cattle markets and international trade will play in the coming months and years.

Cassie Fish, a former CME trader and IBP, Inc./Tyson Fresh Meats Senior Director of Risk Management, currently operates her own risk management consulting and brokerage business. Fish also writes a daily market analysis blog, “The Beef.” Fish will use her vast knowledge of the cattle and futures markets to provide a perspective on the factors that have influenced the industry in the recent past and those that will play a large part in the future.

The United States Meat Export Federation (USMEF) is a trade association in the meat and livestock industry, representing beef/veal producers and feeders, as well as other sectors of the red meat industry. USMEF works to put “U.S. meat on the world’s table” and will give Iowa cattle producers an idea of what to expect in the export markets in the coming months and years.

The ICA and Iowa Beef Industry Council’s annual meetings will also take place at the Leadership Summit, and Iowa cattle producers and friends of the industry are invited to attend both of those meetings, as well.

The Leadership Summit is a free event for cattlemen and women and will be held at the Hansen Ag Student Learning Center in Ames. A complimentary lunch will be served, featuring the 2016 Iowa’s Best Burger from the Chuckwagon Restaurant in Adair. Attendees should RSVP by November 29 online at www.iacattlemen.org or by calling 515-296-2266.



INTL FCSTone Host Livestock Price Risk Management Academy

The cattle business is inherently risky thanks to the tremendous price volatility that can squeeze both sides of the business – from the cost of feed to the prices that the end-products fetch on the market.  Unfortunately, nobody knows in advance where those prices are headed. However, with the right insights and tools, feedlots, ranchers and feed manufacturers can learn how to manage that uncertainty.

That's why the FCM Division of INTL FCStone Financial Inc. is offering two 'pure education' events designed to help those in livestock industry manage their price risks, including the feeder cattle, live cattle and feed components. These programs will cover various risk management concepts, markets, contracts and strategies - including cash, futures, options and OTCs. Additionally, the program will feature outlooks for various livestock and grain markets.

Start out the New Year on the right foot by gaining practical knowledge, taking a peek into the future and networking with others in the livestock industry.

Who Should Attend?
Anyone in the livestock industry who wants to gain a solid understanding of the cash, futures, options and OTC markets as part of a comprehensive price risk management program, including:
-    Feed lot operators
-    Large livestock ranchers or operators
-    Meat processors
-    Risk managers, traders, back-office staff and upper management

Seminar Dates:
January 24, 2017 - Kearney, Nebraska, Fairfield Inn & Suites
January 25, 2017 - Garden City, Kansas, Hampton Inn Garden City

To Register:
Click here.... http://www.cvent.com/events/livestock-price-risk-management-academy-nebraska-and-kansas/event-summary-2a9f95cd3c314388bf1c3e712c9000e9.aspx?RefID=PardotCampaign&utm_source=PardotCampaign&utm_medium=email&utm_campaign=LivestockKC. 

About the Host:
FCM Division of INTL FCStone Financial Inc. is a pioneer in the development of and application of price risk management plans designed to protect margins and enhance profits. These products and strategies have been proven over time to minimize the impact of commodity price swings on your bottom line.



Statement from Agriculture Secretary Tom Vilsack on JCCT

Agriculture Secretary Tom Vilsack today released the following statement regarding the conclusion of the U.S.-China Joint Commission on Commerce and Trade (JCCT) and the need for further progress on biotechnology issues:

"We are disappointed that further progress was not made on agricultural biotechnology issues during the 27th JCCT. The focus of this JCCT was on the implementation of prior commitments.

"Although China has made some progress, it has not fully implemented commitments on agricultural biotechnology that it made to the United States which date back as far as September 2015. Those commitments still stand and the United States expects their full implementation.

"During this JCCT, the United States requested that China commit to clarifying how its approval system for approving biotech traits will operate in a predictable, transparent, and scientific manner. The U.S. further requested that China commit to work constructively to help address the global problem of asynchronous approvals for biotech products.

"The U.S. will be watching the meeting of China’s National Biosafety Committee scheduled to take place next month, and expects that the remaining eight biotech traits will be reviewed based on science and risk, and accordingly approved.

"Lack of progress on biotech issues will continue to add years to the process of commercializing them, will slow innovation and set back global efforts to address food security and climate change. The United States expects that China will fully implement its prior commitments and will work collaboratively with us to address these global challenges in the future."



Weekly Ethanol Production for 11/18

According to EIA data analyzed by the Renewable Fuels Association, ethanol production averaged 1.014 million barrels per day (b/d)—or 42.59 million gallons daily. That is down slightly by 3,000 b/d from the week before. The four-week average for ethanol production stood at 1.014 million b/d for an annualized rate of 15.54 billion gallons.

Stocks of ethanol stood at 19.0 million barrels. That is a 1.8% increase from last week.

Imports of ethanol remained unchanged at zero b/d for the 13th straight week.

Gasoline demand for the week averaged 379.0 million gallons (9.024 million barrels) daily. Refiner/blender input of ethanol averaged 917,000 b/d. That means gasoline supplied to the market contained an average of 10.2% ethanol—the fifth time in the last six weeks that the blend rate has exceeded 10.0%.

Expressed as a percentage of daily gasoline demand, daily ethanol production was 11.24%.



CME delays corn futures contract listings, eyes St. Louis delivery point

The CME Group will delay listing of two corn futures contracts that had been scheduled to start trading on Dec. 14 as it continues a review of delivery points which could expand to St. Louis in Missouri, the exchange said in a statement on Tuesday.

The delay covers the July 2020 and December 2020 contracts. The exchange said it would also delay listing of all subsequent months.

There are 25 delivery points for corn futures in the existing contract specifications. Of these, 23 are located along the Illinois River in Illinois and two along Lake Michigan, according to the exchange’s website.

St. Louis already is a delivery point for soybean and wheat.

“The more delivery points that you can have, it just makes it easier to utilize the contract, potentially,” said Joe Lardy, an analyst at CHS Hedging. “Spreading these points around just gives a little more flexibility.”

CHS Hedging is a division of CHS Inc, which owns two of the corn delivery points, at Pekin and Morris in Illinois.

Lardy did not know whether CHS had been asked to give feedback to the CME on the potential changes.



Foundation for Agriculture to Announce New Book of the Year at Annual Convention

The American Farm Bureau Foundation for Agriculture will announce its tenth Book of the Year on Sunday, Jan. 8, at the AFBF Annual Convention & IDEAg Trade Show in Phoenix, Arizona. The winning book will be revealed at the annual Flapjacks with the Foundation breakfast, where attendees will receive a free copy of the book provided by Farm Bureau Bank.

The author of the new Book of the Year will be in attendance to accept the award at the 7:45 a.m. breakfast event. Following Flapjacks with the Foundation, the Book of the Year author will be signing books at the Farm Bureau Bank booth in the Trade Show from 11:00 a.m-12:30 p.m. Copies of the book, educator guides and a new Ag Mag also will be available.

The Book of the Year award springs from the Foundation’s effort to identify “accurate ag books,” a collection of more than 400 books for children, teenagers and adults that accurately cover agricultural topics. In addition to their accuracy, Book of the Year selections are educational, reflect farmers’ and ranchers’ love for the land and what they do, create positive public perceptions about agriculture, inspire readers to learn more and touch their readers’ lives as well as tell the farmer’s story.

Previous Book of the Year selections are “First Peas to the Table” by Susan Grigsby, “The Apple Orchard Riddle” by Margaret McNamara, “The Beeman” by Laurie Krebs, “The Guardian Team: On the Job with Rena and Roo” by Cat Urbigkit, “How Did that Get Into My Lunchbox? The Story of Food” by Chris Butterworth, “Seed Soil Sun: Earth’s Recipe for Food” by Cris Peterson, “Soybeans in the Story of Agriculture” by Susan Anderson and JoAnne Buggey, “The Man Who Fed the World” by Leon Hesser and “The Tree Farmer” by Chuck Leavell.

Julie Tesch, the Foundation's executive director, said the tenth Book of the Year will continue the high standards of these previous selections.

Whether in their approach to storytelling or in their audience, all the Book of the Year all selections do a great job educating people about agriculture and how it touches everyone. The next Book of the Year, which has already been selected but won't be announced until the Flapjacks with the Foundation event, will continue that tradition of introducing to readers something they probably didn't know about agriculture, in the book's distinctive way.
—  Julie Tesch, executive director of the Foundation

Flapjacks with the Foundation is an incredibly popular Annual Convention events. Tickets, which can be purchased through the Annual Convention registration system , are $36 per individual or $340 for a table for 10.