Thursday December 8 Ag News

Nebraska Farm Bureau Foundation’s Inaugural Grower’s Gala Auction a Success

The Nebraska Farm Bureau Foundation held its Inaugural Grower’s Gala on Dec. 5 during the 2016 Nebraska Farm Bureau Annual Convention. The evening was filled with dinner, a live auction, and entertainment by rockabilly duo The Time Burners.

The live auction featured a Golfer’s Dream Getaway at the Prairie Club in Valentine, a Case power washer, sporting events, and travel and entertainment packages. Wayne Thunker of Keith County Farm Bureau was the lucky winner of the Remington 870 Wingmaster shotgun raffle.

“We are grateful for the more than 300 people that attended the Grower’s Gala and supported the future of agriculture,” said Megahn Schafer, executive director of the Nebraska Farm Bureau Foundation. “The money raised from the event will go to support our programs which connect with youth and consumers and share the message that agriculture is important to all Nebraskans.”

More than $47,000.00 was raised in support of the Foundation’s programs including Nebraska Agriculture in the Classroom, the Ag Pen Pal program, scholarships and awards, and consumer engagement efforts.

Special thanks to auctioneer Rick Shoemaker and the following live auction and raffle donors: Rob Robertson, Lincoln Salt Dogs, Embassy Suites Downtown Lincoln, Titan Machinery of Fremont, Lied Center for Performing Arts, Lincoln Marriott Cornhusker, CASE IH, Andrew Ward, Steve and Elma Nelson, Green Line Equipment, Kevin and Penny Burch, NMC CAT, Phelps-Gosper County Farm Bureau, Great Wolf Lodge, Kevin Lofton, and Nebraska Farm Bureau Southeast Membership District.



Valmont Board Declares Quarterly Dividend

The Board of Directors of Valmont Industries, Inc has declared a quarterly dividend of 37.5 cents per share payable on January 17, 2017 to shareholders of record on December 30, 2016. The dividend indicates an annual rate of $1.50 per share.

Valmont is a global leader, designing and manufacturing engineered products that support global infrastructure development and agricultural productivity. Its products for infrastructure serve highway, transportation, wireless communication, electric transmission, and industrial construction and energy markets. Its mechanized irrigation equipment for large scale agriculture improves farm productivity while conserving fresh water resources.

In addition, Valmont provides coatings services that protect against corrosion and improve the service lives of steel and other metal products.



REFERENDUM TO REINSTATE THE IOWA BEEF CHECKOFF PASSES

The Iowa Department of Agriculture and Land Stewardship today announced the passage of the referendum to reinstate the $.50 per head Iowa beef checkoff that was held November 30th.

The preliminary results show a positive vote of 56 percent to 44 percent in favor of reinstating the assessment.  A simple majority was needed for passage.

The Department has until December 30th to certify the referendum results.  Collection of the checkoff will begin March 1, 2017.

The Iowa beef checkoff will be mandatory, but refunds will be available to interested producers. The federal beef checkoff of $1 per head remains in place and would not be affected by the Iowa vote.

A petition to vote on the state beef checkoff was delivered to the Iowa Department of Agriculture and Land Stewardship on September 2 by the Iowa Cattlemen’s Association. The petition contained over 500 signatures of cattle producers in the state of Iowa who are interested in a referendum.



ICA & IBIC pleased with state beef checkoff referendum results

The Iowa Department of Agriculture and Land Stewardship today announced the passage of the referendum to reinstate the $.50 per head Iowa beef checkoff that was held November 30th. 

The preliminary results show a positive vote of 56 percent to 44 percent in favor of reinstating the referendum.  A simple majority was needed for passage.

The Department has until December 30th to certify the referendum results.  Collection of the checkoff will begin March 1, 2017.

The Iowa Cattlemen’s Association (ICA) was responsible for changes to Iowa code 181 regarding the state checkoff, and also delivered a petition with 500 signatures of cattle producers interested in a referendum to the Iowa Department of Agriculture and Land Stewardship.

ICA’s board of volunteer leaders gathered input from members across the state before initiating the process to reinstate the state assessment. The feedback indicated five priority use options for state checkoff funds and the Iowa code governing the state beef checkoff now includes those priorities, which are:
-Marketing & promoting Iowa’s beef and beef products
-Enhancing Iowa’s beef industry image
-Production research
-Expanding international trade relationships
-Providing producer, consumer, and youth educational opportunities

“We are very pleased with the results of the referendum. Reinstating our state checkoff has been a priority mission for the Iowa Cattlemen’s Association over the last year and we've been encouraged at each step in the process by the input and support of producers around the state,” says Dr. Phil Reemtsma, veterinarian and president of the Iowa Cattlemen’s Association.

The Iowa beef checkoff will be mandatory, but refunds will be available to interested producers. The federal beef checkoff of $1 per head remains in place and would not be affected by the Iowa vote.

The federal beef checkoff is administered by a board of directors representing Iowa cattle producers. The state beef checkoff will be administered by the 10 member executive committee who will serve on both boards of directors for the Iowa Beef Industry Council.

“We look forward to the opportunity with additional funding to build beef demand both domestically and globally.  We work on behalf of Iowa’s cattle producers for the long-term sustained growth of the Iowa beef industry,” says Scott Heater, Chairman of the Iowa Beef Industry Council.



2017 Feedlot Forum to Focus on Lingering Issues

The new year is a time of new beginnings, but beef feedlot producers know that much of their future is quite uncertain. To help them learn more about what they need to know and the decisions they need to make, these issues — Veterinary Feed Directive, feedlot assessments, market volatility, market prices and industry updates — will be center stage at Feedlot Forum 2017. The event is set for Tuesday, Jan. 17, at the Terrace View Event Center in Sioux Center, and opens with a trade show at 8:30 a.m.

feedlot forum 2017Iowa State University Extension and Outreach beef program specialist Beth Doran said all the issues to be covered continue to be timely to the industry. Market volatility especially is a concern, with historical extremes from record high prices to fed cattle prices of less than $100/cwt.

“This is why we’re having David Lehman of the Chicago Mercantile Exchange Group present a CME update,” Doran said. “We know everyone is concerned, but the real question is how to correct the huge volatility in the market. He’ll help us understand the current situation and how to think about the future.”

Other topics and nationally recognized presenters at Feedlot Forum 2017 include:
-    Veterinary Feed Directive: What the Producer Needs to Know - Grant Dewell, DVM at Iowa State University
-    What’s on the Packer’s Horizon - Lora Wright, Tyson
-    Taking Control of Your Cattle Price - Carl Babler, Atten and Babler Commodities, LLC
-    The Beef Checkoff Program Update - Doug Bear and Kent Pruismann, Iowa Beef Industry Council
-    ICA Update - Matt Deppe, Iowa Cattlemen’s Association
-    District 1 ICA Update - Craig Moss, Iowa Cattlemen’s Association Director

“This year’s forum also features 26 trade show exhibitors — a record,” Doran said. “They are all very in-tune with and supportive of the topics that will be presented.”

Feedlot Forum 2017 is co-hosted by ISU Extension and Outreach, Iowa Beef Center, and the Sioux, Lyon, Plymouth and Iowa Cattlemen’s Associations. Special highlights include a steak dinner and a $10 beef certificate to each attendee.

Registration is $25 per person, with a special reduced rate of $10 for students. People should register at the ISU Extension and Outreach Sioux County Office by Jan. 12. The event brochure contains the complete agenda, list of sponsors and registration form. For more information, call the ISU Extension and Outreach Sioux County Office at 712-737-4230.



Heinrich re-elected Iowa Farm Bureau Vice President
Johnson Elected, Podhajsky, Rozenboom Re-Elected to State Board of Directors

Joe Heinrich of Maquoketa was re-elected vice president of the Iowa Farm Bureau Federation (IFBF) for a two-year term at the organization’s 98th annual meeting in Des Moines.  Heinrich has served as IFBF vice president since 2011.

Heinrich, a Jackson County farmer, farms with his family, including his wife Shelley and a nephew.  Together, they have a diversified farming operation including corn, soybeans, oats, and hay.  They also have a beef cow-calf herd and a dairy operation.  Heinrich was first elected to the IFBF board in 2004, representing District 6, prior to his service as vice president.  Before his election to the state board, Heinrich served as Jackson County president, vice president, voting delegate, young farmer chair, and served on the state internal study committee.

IFBF voting delegates also re-elected Nick Podhajsky of Tama County and Calvin Rozenboom of Mahaska County to the state board of directors.  Brent Johnson of Calhoun County was elected to the state board, following the retirement of Doug Gronau of Crawford County.  Each director will serve a three-year term.

Podhajsky represents District 6, which consists of 11 counties in eastern Iowa.  He was elected to the position in 2011.  Podhajsky was a 2010 Iowa delegate representative for the American Farm Bureau Federation annual meeting and has served in many other elected positions in his county Farm Bureau office, including president and county voting delegate.

Rozenboom represents District 8, which consists of 10 counties in south central Iowa.  He was elected to the position in 2001.  Before that, he was very active in the Mahaska County Farm Bureau where he served as president and vice president.  He has also served as chairman of the IFBF swine advisory committee and as a member of the IFBF resolutions committee.  He was also a member of the AFBF swine advisory committee.  He has spent six years on the board of directors of CRWRC, an international relief agency which currently serves in 28 countries, primarily providing community development, health education, literacy services and disaster relief.

Brent Johnson was elected to represent District 4, which consists of 12 counties in west central Iowa.  Prior to his election to the state board of directors, Johnson served as president, vice president, secretary, and treasurer of the Calhoun County Farm Bureau.  Johnson and his wife LuAnn farm near Manson and grow corn, soybeans and have a herd of beef cattle.

Nine delegates were elected to represent Iowa at the American Farm Bureau Federation (AFBF) Annual Convention in Phoenix, January 8-13.  They include: IFBF President Craig Hill of Warren County; IFBF Vice President Joe Heinrich of Jackson County; Nick Podhajsky of Tama County; Gary Rayhons of Hancock County; Terry Murray of Buena Vista County; Allen Burt of Marshall County; Karen Seipold of Mills County; Don Swanson of Wapello County; and Andy Hill of Worth County.  Steve Hoffman of Decatur County was elected as an alternate.

Matt Schuiteman of Sioux County was elected to a three-year term on the IFBF internal study committee.  The internal study committee serves as a liaison between the county Farm Bureau voting delegates and the state board of directors. 



Soy Growers Participate in Mission to Argentina

U.S. soy growers traveled to Argentina earlier this month to discuss market access issues and priorities for the coming year.

The U.S. Soybean Export Council (USSEC) participated in an International Soybean Growers Alliance (ISGA) mission, which provides an excellent forum to share experiences and exchange ideas on how to address the challenges farmers face from many different sources. American Soybean Association Director and USSEC Chairman Jim Miller, joined United Soybean Board (USB) Director Jimmy Sneed, USSEC CEO Jim Sutter and USSEC Marketing Director – Market Access / Freedom to Operate Roz Leeck in the USSEC delegation.

This meeting in Argentina was a significant step forward on setting the agenda and priorities for the upcoming year. It also marked the first official meetings since Argentina’s ISGA members assumed the role of Secretariat. The group continues to target market access issues of mutual interest.

Key topics included:  biotechnology approvals and acceptance (especially in China, India and European Union), pesticide tolerance levels and the market acceptance of soy products derived by using Plant Breeding Innovation. The group also shared issues that farmers face in each of the member countries.  Many of these issues are regarding regulatory and social pressures.

Prior to participating in the ISGA meetings, the group visited Rosario, Santa Fe, stopping at a farm for an afternoon of discussion and a field tour. They also visited T6, a joint venture between Bunge and AGD, which is one of the largest crush plants in the world in addition to serving as an export facility for soy, soy products, corn and wheat.

The ISGA delegation had the opportunity to meet with the Minister of Agriculture and the Secretary of Agriculture. In those meetings, a number of different issues were discussed, including the changes Argentina has made in Differential Export Tax as well as the ongoing debate on seed law and intellectual property protection.

Both the Minister and Secretary recognized the significance of the six soy producing nations coming together to work on market access issues of mutual concern and encouraged the farmers to continue their efforts. This view was also expressed when the U.S. team met with David Mergen, the U.S. Department of Agriculture (USDA) Ag Counselor located in Buenos Aires.



Merger Discussions, Elections Push Soy Checkoff into 26th Year

Navigating profitability through challenging times. That’s the thought on every soybean farmer’s mind and it resonates strongly with those appointed to serve on the United Soybean Board (USB). Charged with the fiduciary responsibility to invest farmer checkoff funds in research and promotion, USB takes the commitment to maximizing U.S. soybean farmers’ profit opportunities seriously.

Meeting for their annual board meeting, the farmer-leaders looked hard at investments that can bring innovative solutions back to their peers. From improving meal and oil to sustainability issues, the farmers have identified these opportunities to return the most value to the marketplace.

Over the last several years, the board has elevated its relationships with ag industry partners and the annual meeting was a great opportunity for Monsanto and Bayer to discuss the merger and the impact to farmers.

“From trait approvals, patent protection and brand equity, the two companies addressed what was top of farmers’ minds,” says John Motter, newly elected chair and farmer from Jenera, Ohio. “It was nice to hear about their plans to raise the bar in innovation and technology and ways to impact profit opportunities for U.S. soybean farmers into the future.

Motter will lead USB as its 26th chair. He has served on the board for eight years and also served as Ohio Soybean Council Chairman, USB treasurer, and USB vice chair. Also elected to the Executive Committee are:
- Lewis Bainbridge, Vice Chair – South Dakota
- Jimmy Sneed, Secretary – Mississippi
- Keith Tapp, Treasurer – Kentucky
- Mike Beard, Indiana
- John Dodson, Tennessee
- Nancy Kavazanjian, Wisconsin
- Jim Carroll, Arkansas
- Dan Farney, Illinois
- Gregg Fujan, Nebraska

The farmers also selected members to serve on the Strategic Management Committee. Those farmers include Mark Seib, Indiana; Doug Winter, Illinois and Jay Myers, North Dakota.



Moore Assumes American Soybean Association Presidency, Iowa's Heisdorffer Elected Vice President

Ron Moore, a soybean farmer from Roseville, Ill., assumed the role of president of the American Soybean Association (ASA) at the organization's annual winter meeting this week in St. Louis. Moore served as ASA's vice president throughout 2016, and per the structure of the organization, the vice president moves into the president's role for the following year.

"The industry faces many challenges and many opportunities in the year to come, and I am excited to tackle all of them," Moore said. "As we work to advance farmer priorities on our most important issues like trade, biotechnology and others. I look forward to drawing on the multiple talents of our dedicated board of directors to continue our success for soybean farmers."

Elected to fill the role of ASA vice president is John Heisdorffer, a farmer from Keota, Iowa, placing him in line to become ASA's President in 2018. Heisdorffer previously served as ASA secretary.

"This is an organization that, as it approaches its 100th anniversary, only becomes more impactful and more important as a voice for farmers," Heisdorffer said. "We've come very far, but there is still so much work to do to make sure that all soybean farmers have the policy and regulation and market conditions in place to succeed. I am excited to work over the coming years to see that through."

Richard Wilkins, who farms in Greenwood, Del., and served in 2016 as ASA's president, now moves to the role of chairman, and outgoing Chairman Wade Cowan of Brownfield, Texas, rotates off the Governing Committee. Davie Stephens, of Wingo, Ky., will serve a third consecutive term as ASA's secretary, and Bill Gordon, of Worthington, Minn., was elected to the position of ASA treasurer. Bret Davis, of Delaware, Ohio; Kevin Scott, of Valley Springs, S.D.; Sam Butler, of New Hope, Ala.; and Eric Maupin, of Dyersburg, Tenn., were elected as at-large members of ASA's Governing Committee.

Also at the meeting, the ASA board celebrated retiring directors Mike Cunningham, of Illinois, Ray Gaesser and Mark Jackson, of Iowa, Kevin Hoyer and Dan Roe, of Wisconsin, Ted Glaub, of Arkansas, Lance Peterson, of Minnesota and Wyatt Whitford, of North Carolina. ASA welcomed new directors Stan Born, of Dunlap, Ill.; Brad Doyle, of Weiner, Ark.; Morey Hill, of Madris, Iowa; Brian Kemp, of Sibley, Iowa; Brad Kremer, of Pittsville, Wis.; Kurt Krueger, of Rothsay, Minn.; Don Lutz, of Scandinavia, Wis.; Brian Ogletree, of Milner, Ga.; Bill Raben, of Ridgeway, Ill.; Rob Shaffer, of El Paso, Ill. and Jimmy Thomas, of Timberlake, N.C.



South Africa Approves Biotech Corn Events, Opening Door for U.S. Sales

South Africa’s government announced this week it is eliminating import restrictions on some biotech corn products, likely opening it for additional imports of U.S. corn.

The list of products, or events as they are described by the scientific community, announced by the country’s Department of Agriculture, Forestry and Fisheries (DAFF) that were previously ineligible for import includes several grown by U.S. corn producers either in single-event varieties or stacked varieties.

They include:
    MON 87460 x NK603
    3272 x Bt11 x MIR604 x GA21
    TC1507 x 59122 x MON810 x MIR604 x NK603
    TC1507 x 59122 x MON810 x NK603
    TC1507 x MIR604 x NK603
    TC1507 x MON810 x MIR162 x NK603
    MON87460 maize event

These events have all been found safe by other global regulators, including in the United States, but had faced process delays in South Africa.

The effort to achieve their approval ramped up late last year after a U.S. Grains Council (USGC) mission to South Africa uncovered a significant near-term opening for U.S. feed grain imports following a severe drought.

Under normal conditions, South Africa is a net exporter of corn, shipping approximately 1 million metric tons (39.4 million bushels) each year. However, weather conditions resulting from El Nino caused a short crop and necessitated imports of both yellow and white corn. White corn is a staple in the diets of South Africans and those in neighboring countries to whom they export in most years.

Unfortunately, lagging biotech approvals in South Africa have long hindered trade with the United States, leading South Africa to typically source yellow corn from Argentina and white corn from Mexico.

While some U.S. white corn not produced with biotechnology was shipped to South Africa early in 2016, the majority of imports came from Mexico, which in turn required Mexico to import more yellow corn from the United States to cover the white maize disappearance.

USGC has been diligent in its efforts to help ease trade roadblocks and promote U.S. feed grains in South Africa since discovering the depth of the issue.

Members first met with South African industry and government officials on this topic as part of an officers’ mission in December 2015. USGC members, staff and consultants also participated in an industry and government roundtable on the issue, presenting on white corn global supply and demand issues as well as solutions to enable U.S. corn shipments. Following that meeting, USGC representatives continued working with industry partners and DAFF towards a suitable resolution of this trade issue.

The United States is now in a better position to tap into an estimated market potential of approximately 400,000 metric tons (15.7 million bushels) of yellow maize and 300,000 tons (11.8 million bushels) of white maize anticipated through April 2017.

As this market opens up, USGC consultants locally and staff in the region and in the United States will continue to work closely with our South African partners to build a mutually beneficial trade partnership.



Dairy products getting a bubbly boost from Kansas State University scientists

Kansas State University researchers are deploying small air bubbles invisible to the human eye in a quest to improve several popular dairy products and co-products.

Food scientist Jayendra Amamcharla said his research team is perfecting a process to incorporate air bubbles into condensed milk and yogurt to make the texture of these products more desirable for consumers.

"The consumer trend is toward high-protein yogurt products," said Amamcharla, an assistant professor of animal sciences and industry. "But one of the disadvantages of having higher proteins is that it increases the viscosity, or thickness, of the yogurt. It becomes so thick that you can eat it only with a spoon. We have incorporated air bubbles into a high-protein yogurt to reduce its viscosity so that it is drinkable."

The process developed by the Kansas State University team is patent pending, but Amamcharla says that when ready, it will be fairly simple to implement for milk processing facilities.

"From the manufacturers' side of this, it will improve the efficiency of processing milk, thus saving money for the plant," Amamcharla said.

"The other side is consumers," he said. "We are improving the acceptability of high-protein dairy products. There shouldn't be any differences in how these products taste, but there should be an improvement in how they feel on the tongue and in the mouth when consumers eat these products."

Amamcharla said the benefits of incorporating air bubbles will go beyond yogurt. The researchers are also finding positive results in other products and processes used in the dairy industry, including condensed milk, milk protein concentrates and whey protein concentrates.

Kansas State University's work has been funded by the Midwest Dairy Food Research Center and the National Dairy Council. Amamcharla credits Bingyi Li, master's student in food science, and Zhe "Dylan" Liu, postdoctoral researcher in animal sciences and industry, as being especially critical in the progress the team has made so far.



Global Commodity Oversupply and Industry Consolidation to Reshape U.S. Grain and Farm Supply Industries  

A confluence of market factors will dramatically reshape the U.S. grain and farm supply industries between 2017 and 2019, according to new report from CoBank. Continued low commodity prices, increased foreign competition and the strong U.S. dollar will stress U.S. crop and animal supply chains leading to more industry consolidation, which will introduce the next phase in the evolution of the agricultural industry.

Prices across the crops sector will continue to remain low as a result of a significant global oversupply. While low commodity prices are also boosting consumption and overall global demand, strong production will continue to outpace demand over the next three years, barring a severe weather event in a major agricultural producing country.

“The U.S. grain and farm supply industries have reached another historic inflection point that will be good news for some and bad news for others,” said Tanner Ehmke, CoBank senior economist and author of the new report. “The co-ops that thrive through this cycle will be those that offer innovative products and services to their farmer customers, are earnest and unrelenting in controlling costs, are properly aligned in the industry chain, and focused on risk management. These co-ops ultimately end up well positioned as the industry realigns.”

Adding to the list of market challenges is the increased competitiveness of foreign producers—​particularly countries such as Argentina, Brazil and Russia—which have expanded production to take advantage of the export opportunities created by their weaker currencies. Ehmke notes that a strong dollar will continue to impede U.S. exports and is causing many producers to reconsider their crop rotations, switching from wheat to more profitable and higher-performing crops, such as corn and soybeans.

These conditions are expected to exert additional pressures across the U.S. agricultural spectrum—from producers to farm suppliers to retailers—which will drive a continuing trend of consolidation. Farm size is expected to increase as farmers acquire acreage outside their existing territory, which will exert consolidation pressure on the retailers that serve them. In addition to consolidation within the respective retail and wholesale categories, some wholesalers are expected to merge with retailers, resulting in compression of the supply chain.

“This trend is expected not only to continue, but to accelerate as agribusinesses adjust to a climate of low prices and thinning margins,” said Ehmke.

Disruptive factors such as severe weather or sudden changes in foreign exchange rates could prompt a deviation from the current cycle. However, given the current environment of low commodity prices, a strong dollar and increased competition, a sustained recovery over the next three years in unlikely.

A synopsis of the report, “What’s Ahead for the Grain Markets and Farm Supply in 2017-2019” is available at CoBank.com.



Milk Prices Poised for Modest Improvement

After a few years of significant challenge the outlook for U.S. milk producers is beginning to improve, according to a new report from CoBank. Despite projected supply increases, milk prices are poised for modest improvement in the years ahead thanks to new export opportunities and gains in processing and production efficiency.

“We’re seeing dairy farm expansions, meaning producers are hopeful that prices will increase from today’s levels,” says Ben Laine, senior economist at CoBank. “These dairies are banking on the future and on global growth. We believe that there is cause for cautious optimism given prospects for strengthened international demand and the industry’s long track record of innovation.”

U.S. dairies will produce over 225 billion pounds of milk in 2020—approximately 7 percent higher than today’s output—according to projections from the U.S. Department of Agriculture. And domestic demand for milk and milk products will remain relatively flat, given the maturity of the U.S. consumer market. Nonetheless, Laine says, the industry is poised to benefit from overseas demand in Asia, Latin America and Africa driven by population growth and increased middle class consumption.

Exports now represent about 14 percent of all U.S. milk production, compared to less than 8 percent a decade ago. That increases the amount of exposure U.S. dairies have to currency risk, geopolitical events and other unpredictable factors. “The outlook for the next several years is positive, but precarious,” Laine says.

One immediate challenge facing the industry is that processing capacity has not kept up with the growth in milk production.

“New processing plants and plant expansions over the next couple of years will provide some relief,” says Laine. “Meanwhile, the U.S. dairy industry must do everything it can to maintain and develop domestic demand and evolve with customers. This includes the development of innovative products to adapt to changing consumer tastes.”

Going forward the U.S. will need to position itself strategically to be able to compete with other mature dairy producing regions, the European Union in particular. Additionally, the U.S. dairy industry must invest in establishing relationships within sophisticated global supply chains to further develop demand and open new markets, according to the CoBank report.

“Success will hinge on the ability to balance innovation in domestic products with responsiveness and competitiveness abroad,” Laine says.

A synopsis of the report, “Future of the U.S. Dairy Industry Hinges on Exports” is available at CoBank.com.