Tuesday December 6 Ag News

Confronting Crop Challenges Workshops Offer Crops Info AND Pesticide Training

Confronting Crop Challenges is a new series of workshops offered by Nebraska Extension in December for those wanting to learn more about the crops challenges from the past growing season and management options to deal with them during the 2017 growing season. Confronting Crop Challenges workshops will be offered at the following locations:

Friday, December 16
    9:00 a.m. to noon at the Community Building on the Fairgrounds in Stanton, and
    1:30 p.m. to 4:30 p.m. at the Nielsen Community Center in West Point

Wednesday, December 21
    9:00 a.m. to noon at the Extension Office in Fremont, and
    1:30 to 4:30 p.m. at the First National Bank Northeast meeting room in Tekamah

Topics to be covered include:
 *    The importance of factors to consider when selecting hybrids or varieties,
 *    A corn disease update including information on bacterial leaf streak, a new corn disease first discovered in Nebraska,
 *    Grain storage concerns in 2016-17,
 *    Options to control input cost when budgets are tight,
 *    Controlling Palmer amaranth, waterhemp and marestail, and
 *    A soybean disease update including information on seedling blights, phytophthora and SCN.

These topics will give farmers a better understanding of local crop challenges that emerged in 2016, such as bacterial leaf streak and the spread of herbicide-resistant weeds, and management options so you are prepared to deal with these issues during the 2017 cropping season.

A certification session at the end of each program will allow farmers needing to renew their private pesticide license to apply restricted use pesticides by April 15, 2017. This also meets the requirements for farmers needing an initial certification. This will satisfy the training requirements for the regular private applicator training sessions, of which additional trainings will be held in West Point on March 2nd. If you don’t need pesticide applicator training, you may leave after the last regular program session.

Registration for the general meeting is $10 for everyone. Those seeking to get a new or renew their private pesticide applicator license during the meeting will need to pay an additional $30, $40 total, for the training. The $30 fee is required and is the same as would be paid at the traditional training sessions in January through March.

Pre-registration for the West Point location is appreciated, but not required, by calling the Cuming County Extension office at 402.372.6006. These workshops will be presented by a local team of Nebraska Extension Cropping Educators including John Wilson, Nathan Mueller, and Aaron Nygren.

For more information, please visit Crop Tech Café at http://croptechcafe.org/ or contact Aaron Nygren, Extension Educator, Nebraska Extension in Colfax County at 402.352.3821 or anygren2@unl.edu.



Ricketts Issues Directive on Ag Land Assessments

Governor Pete Ricketts announced a plan today to make adjustments to the land assessment process that will exclude factors that cause premiums on the purchase price of land parcels.

“Farmers and ranchers identified a number of factors where non-ag premiums can drive up purchase prices on parcels and affect subsequent assessed values. My administration will be issuing a directive to clarify guidance on comparable sales and request the help of county assessors to make sure we are not including premium sales that distort the market,” said Governor Ricketts. “As agricultural markets continue to change and as cattle and crop prices decline it is important our valuation assessment process reflects the true market.”

Farmers and ranchers have shared examples where premiums paid on a land purchase because of special financing, tax advantages, or “once-in-a-lifetime” purchases to acquire adjoining land were then used as comparable sales to set surrounding assessments.

Next week a directive will be issued from the Department of Revenue to county assessors to provide guidance about what constitutes comparable sales to avoid premium sales from driving up the price for non-ag related factors. Field staff for the Department of Revenue will be on hand to assist with training to comply with the new directive.

“When land comes up across the road from the farm for the first time in 100 years, that becomes a once-in-a-lifetime purchase opportunity,” said Property Tax Administrator Ruth Sorensen. “I will work with county assessors to ensure these transactions are excluded from the analysis to determine the market value of property in the ‘ordinary’ course of trade.”

Factors that can lead to land premiums that the directive will control for include:
·      Acquisitions of adjoining land.
    -       Adjoining and “once-in-a-lifetime” sales can lead to bidding wars on a parcel
·      IRS 1031 like-kind exchanges of land.
    -       1031 exchanges are when property owners defer taxes on the purchase of land via a land exchange that can lead to premium prices
·      Ag land used for recreational purposes.
·      Special financing available to the purchaser.

Property assessments are based on the market value of property as of January 1, 2017.   Current law allows the Property Tax Administrator to issue guidelines to county assessors in determining what constitutes a comparable sale.  It is difficult to quantify what effect the new directive will have on assessments, but will prevent improper increases caused by anomalies in the market place.

“Tax relief remains a focus of my administration, including property taxes and this is one thing we can do immediately within the framework of the current law,” said Governor Ricketts.  “I will continue to do everything I can to protect taxpayers and grow Nebraska.”



Nebraska Drivers Save $17 Million Using Ethanol-blended Fuel
In 2016, Nebraska drivers will save approximately $17 million by using ethanol-blended gasoline. The savings is based on lower prices for ethanol compared to wholesale gasoline and the state’s projected spark-ignition fuel consumption of 900 million gallons.

According to the U.S. Department of Energy, ethanol is blended into virtually all U.S. gasoline. The most common ethanol blend sold nationwide is E10, a blend of 90 percent gasoline and 10 percent ethanol. Between August 2015 and August 2016, the cost of wholesale ethanol averaged 18 cents per gallon less than the minimum octane gasoline allowed to be sold in most of the U.S.

According to the Department of Energy, this year’s gasoline consumption by U.S. motorists will exceed 140 billion gallons and 97 percent of this fuel will contain ethanol. U.S. gasoline refiners continue to supply lower-octane gasoline which is typically enhanced with high octane ethanol to meet fuel standards. The octane-boosting capability and cleaner-burning attributes of ethanol make it an indispensable part of the U.S. motor fuel supply.

The significant role of ethanol in the nation’s fuel supply is likely to expand in 2017 to meet the requirements of the national Renewable Fuel Standard (RFS), noted Nebraska Ethanol Board Administrator Todd Sneller.

“Higher octane fuel reduces ‘engine knocking’ and provides better vehicle performance,” he said. “Adding ethanol to boost octane reduces the toxicity of gasoline. It’s a win-win for consumers and the environment.”

Adding 10 percent ethanol to low octane gasoline increases the octane rating to levels recommended by auto manufacturers and required by federal regulations.  In most parts of the country regular gasoline enhanced with ethanol has an octane rating of 87 which is the minimum octane recommended by automakers.

According to EPA’s Urban Air Toxics report to Congress, U.S. refiners increasingly boost octane by adding refining by-products such as benzene, toluene, ethyl benzene and xylene. Several of these chemicals are known and suspected carcinogens, and they’re more expensive additives. According to a February 2016 study by the University of Illinois at Urbana-Champaign, the price of petroleum-based additives range from 35 cents to a dollar per gallon more than ethanol.

“These products of oil refining, known as aromatics, can produce cancer-causing emissions which damage the human immune, respiratory, neurological, reproductive and developmental systems,” Sneller said. “Ethanol is much less expensive and cleaner-burning than these toxic petroleum-based chemicals.”

Nebraska is the nation’s second largest producer of ethanol with 25 plants producing a combined capacity approaching 2.5 billion gallons annually. The ethanol industry has a $5 billion annual economic impact in the state.

“Future growth in the ethanol industry is likely tied directly to automaker efforts to meet increasingly stringent U.S. fuel economy standards,” Sneller said. “New vehicles will have more efficient, higher compression engines that require even higher octane fuels. Ethanol will continue to play a role as a high-octane, low-carbon renewable choice in the U.S. and abroad.”



Holt County Farm Bureau Couple Take Home Young Farmer and Rancher Achievement Award

James and Katie Olson of Atkinson were honored as Nebraska Farm Bureau's 2016 Young Farmers and Ranchers Achievement in Agriculture award winners at the Nebraska Farm Bureau 99th Annual Convention Tuesday, Dec. 6 at the Younes Convention Center in Kearney.

Farm Bureau members 18 to 35 years of age apply for the award. The Olson’s were selected on the basis of performance in farm or ranch management, setting and achieving goals, overcoming obstacles, and service to the community and Farm Bureau.

James and Katie Olson are the fourth generation to farm near Atkinson in Holt County. They raise 85 head of cow/calf pairs and grow corn, soybeans, and hay on about 900 acres. Both grew up on farms, James near Atkinson and Katie on a dairy farm near Spencer. Both graduated from Northeast Community College in Norfolk with James receiving a degree in Farm and Ranch Management and Katie in Agribusiness.

The Olson’s keep family a top priority, balancing a busy schedule with farm life and working with Nebraska Farm Bureau. James and Katie have five children, 12-year-old Luke, 9-year-old Hannah, 8-year-old Elizabeth, 4-year-old Rebekah, and 10-month-old Sarah. 12-year-old Luke has shown some interest in being the fifth generation on the farm.

They got started farming when James’ grandfather, Carroll Olson, sub-leased an irrigated school land quarter. The farm has grown enough to take over that lease. James also works part time for his grandfather and does all the planting and harvesting, the majority of the tillage, and the majority of the irrigating for eleven irrigated quarters for his grandfather. This is all in addition to their own field work and irrigating. They are very diligent about taking good care of the land, so conservation is always in the back of their minds. In 2014 they purchased an Aerway, a vertical tillage machine, which has greatly reduced the amount of tillage they do in the spring. It has been a great tool for the Olson’s.

Katie does the majority of the trucking, haying, making sure the weaned calves are healthy, and taking care of the cattle. She also helps out with tillage, planting, calving, and servicing pivots. The couple work together, using each other’s strengths to make things on the farm run as efficient as possible.

“We have started using cover crops to help with erosion and keeping organic matter back in the ground. This method saves us money on fertilizer. We have our cows graze on those fields in the spring, which saves us from having to hay the cows until they can go to pasture. The fields also have moisture probes so we know just how much water is available for our crops, so we save money by not overwatering and we can easily monitor if the ground is getting too dry. The pivots are also linked to our smartphones so we can manage them wherever we are,” Katie Olson said.

The Olson’s try to find better ways to measure and evaluate the management of the operation. On the cow/calf side of the farm, they have been buying feeder calves and putting them in a feedlot. The Olson’s take the corn they grow to the feedlot to feed it to their calves. All of these methods help them to become as self-reliant as possible with the farming operation.

“This has allowed us to sell our corn for a fixed price where our profit is locked in. We also try to minimize our risk by hedging the cattle. We can lock in a profit on the corn side or the cattle side,” James Olson said.

The Olson’s currently are serving their second term on the state YF&R committee, representing district six. Katie is active on the local Holt County Farm Bureau board, currently serving as vice president. Both are very active in 4-H and their church. As winners of the Young Farmers and Ranchers Achievement Award, the Olson’s will receive a $500 cash prize and an all-expense paid trip to the 2017 American Farm Bureau convention in Phoenix, Arizona, in January, where they will compete in the national contest.



Paul and Elizabeth Janning and Randy Reinke Take Home NFBF Young Farmer and Rancher Awards

Paul and Elizabeth Janning of Hastings was named the recipient of the 2016 Young Farmers and Ranchers Excellence in Agriculture Award, and Randy Reinke of Neligh was selected as the winner of Nebraska Farm Bureau’s 2016 Young Farmers and Ranchers Discussion Meet. Both awards were given Tuesday, at the Membership Recognition luncheon during the Nebraska Farm Bureau Federation’s 99th Annual Convention held Dec. 4-6 in Kearney, Neb.

Paul and Elizabeth Janning, of Adams County Farm Bureau, were recognized for their ongoing involvement and commitment to agriculture. The Excellence in Agriculture Award is designed to recognize young farmers and ranchers for their contribution and involvement in Farm Bureau and agriculture. Candidates for the award are judged on their involvement in agriculture, leadership ability, and involvement and participation in Farm Bureau and other civic, service, and community organizations. Paul and Elizabeth Janning have two daughters, 3-year-old Maggie and 1-year-old Mary. Paul is currently employed with DuPont Pioneer Seeds as a maintenance mechanic at the Nebraska seed corn plant in Doniphan and Elizabeth is an Extension Educator at Raising Nebraska, where she focuses on connecting consumers to food and agriculture.

Randy Reinke received the top score of the contestants who advanced to the final round of the Discussion Meet contest. Rather than debating, contestants work to develop a solution to a problem being discussed, building on each other’s contributions. Competitors in the annual contest must be prepared to speak on any number of agriculture-related topics; the selected question is announced a short time prior to the contest round. Reinke and his wife Brendee grow corn and soybeans on their farm in Antelope County.

Anyone who is a Farm Bureau member between the ages of 18 and 35 can apply for the Young Farmer and Rancher Awards. Winners of each award receive $500 and an all-expenses paid trip to the American Farm Bureau Convention in Phoenix, Arizona in January 2017 to compete in the contests at the national level.



Local Dairy Days Feature Profitable Dairy Practices

Iowa dairy producers have the opportunity to learn about emerging dairy industry issues at the 2017 Dairy Days hosted by Iowa State University Extension and Outreach specialists. The program is scheduled at seven eastern Iowa locations between Jan. 16 and Feb. 2.

Holstein cows in a freestall barn“ISU Extension and Outreach conducts this workshop to provide the latest research to Iowa’s dairy producers,” said Jennifer Bentley, ISU Extension and Outreach dairy specialist. “Our goal is to help producers make sound herd management decisions that are backed by current and relevant information.

"This day-long program offers producers an opportunity to hear up-to-date information. They can also talk with our speakers for answers to their specific situations," said Bentley.

Topics covered at 2017 Dairy Days will include:
-    Colostrum Quality: How Does Yours Measure Up? Jenn Bentley, dairy specialist
-    Millionaire Model Dairies: Show Me the Money! Larry Tranel, dairy specialist
-    Woodland and Wildlife Mgt/Opportunities on your Dairy, Jesse Randall/Adam Janke, forestry/wildlife specialist
-    Keys to Successful Farm Transition, Melissa O’Rourke, farm management specialist
-    Silage, Snaplage and Shredlage: Know your Forages, Hugo Ramirez, assistant professor and dairy specialist
-    Balancing SCC and Milk Quality Decisions, Leo Timms, professor and dairy specialist

Dairy Days will be offered at seven Iowa locations: Jan. 16 in Waverly, Jan. 17 in Calmar, Jan. 19 in Riceville, Jan. 30 in Bloomfield, Jan. 31 in Kalona, Feb. 1 in Holy Cross and Feb. 2 in Ryan. Registration starts at 9:30 a.m. and the program will conclude by 3 p.m. Contact an ISU Extension and Outreach county office for more information.

A $15 registration fee covers the noon meal and proceedings costs. Pre-registration is requested by the Friday before each event to reserve a meal. Vouchers for the event may be available at local agri-service providers or veterinarian offices.

For more information contact an ISU Extension and Outreach county office or local dairy specialist, Jennifer Bentley at 563-382-2949 or Larry Tranel at 563-583-6496.



Choice Boxed Beef Rallies Late In the Year
Katelyn McCullock, Economist, American Farm Bureau Federation

Daily choice boxed beef cutout values advanced to the highest level seen since late September 2016 last week, reaching $190.50 per cwt on December 1. The boxed beef cutout value is a calculation using primal cuts' pricing and yield (rib, chuck, round, loin, brisket, short plate, and flank) for a specific grade.

Rib and tenderloin (loin) values tend to be seasonal, tied to Christmas and New Year's demand.  This year the seasonal rally was later than usual.  Given larger beef supplies and low prices, retailers did not pre-buy items until consumer demand was more apparent and specials/features/ads were fully fleshed out. As a result, rib pricing reached the highest value of 2016 on December 2nd, of $387.26 per cwt, rallying from its lowest point of the year in October of $290.17 per cwt, and increasing 33% since mid-October.  Loin values are up over recent weeks, but have not shown the strength relative to ribs.  Loins hit the lowest prices in mid-October, as well, and have climbed 6% to $234.31 per cwt over the last six weeks. Brisket prices have also contributed to the increase in the cutout over the same timeframe.  Brisket prices are up 14% since October, adding $69 per cwt.

Chuck, round, and short plate prices have lost ground from highs set earlier in the year and the week of 11/28/2016 moved opposite of the cutout on December 1st.  Still, chuck, round, and short plate prices are off their lows set for the year and are up 3-6%.  Flank prices have been the only primal setting an annual low in the last six weeks.  The lowest price recorded for the year is $83.30 per cwt, set the week if 11/28/2016.  Seasonally, chucks, rounds and flanks tend to be used more in winter months and end up on consumer tables as roasts and stews.  Short plate cuts are more dependent on the export markets, which were slow in the first half of the year but picked up in the third quarter.

Cutout values are still below year ago levels.  Rib and brisket primal values are the only cuts showing year over year increases in daily values and ribs will fade with the New Year. Chuck, round, and short plate prices are expected to play a larger role in the cutout movement after the first of the year, but those values now are down 9-15% compared to last year at this time. 



Commodity Classic Registration, Housing Opens Dec. 7 at 10 a.m. Central

Registration and housing for the 2017 Commodity Classic, March 2-4 in San Antonio, Texas, officially opens at 10 a.m. Central Time on Wednesday, Dec. 7, 2016.

All registration and housing reservations should be made online. Experient is the official registration and housing provider for Commodity Classic. In order to stay at an official Commodity Classic hotel, reservations must be made only through Experient to ensure favorable rates, reasonable terms and confirmed hotel rooms.

The 2017 Commodity Classic is at the Henry B. Gonzalez Convention Center. The convention center will house all Commodity Classic events, including the Welcome Reception, General Session, Evening of Entertainment, Trade Show, Learning Center Sessions and What’s New Sessions.

A detailed schedule of events is also available on the Commodity Classic website... www.commodityclassic.com. 



EIA: Higher Biodiesel Production in '17

 In its most recent short-term energy outlook Tuesday, the Energy Information Administration forecast biodiesel production for 2016 to average 99,000 barrels per day and 104,000 bpd in 2017, compared to 82,000 bpd in 2015.

Net imports of biomass-based diesel are expected to rise from 31,000 bpd in 2015 to 45,000 bpd in 2016 and 51,000 bpd in 2017.

Projected ethanol consumption averages about 940,000 bpd in both 2016 and 2017, reflecting the ethanol share of the total gasoline pool averaging 10% in both years.



US October Ethanol Exports Up 88% From Year Ago

The U.S. Census Bureau said Tuesday that exports of goods and services in October totaled $186.4 billion, down $3.4 billion from the previous month. Imports totaled $229.0 billion, up $3.0 billion from the previous month. USDA later filled in more details for exports of ethanol, biodiesel and distillers grains.

USDA said that U.S. exports of ethanol totaled 131.6 million gallons in October, up a whopping 88% from a year ago. Brazil was the top customer in October, accounting for 32% of all exports while Canada was number two. Year-to-date ethanol exports in 2016 are up 21% from a year ago. 

U.S. exports of biodiesel totaled 13,402 metric tons in October, down 41% from a year ago. Canada was again the top customer for biodiesel exports in October, taking 32% of exports while Mexico ran a close second. In the first 10 months of 2016, U.S. biodiesel exports are down 1% from a year ago. 

U.S. exports of distillers grains totaled 1.005 million metric tons in October, down 3% from a year ago. Mexico was the top export destination in October, accounting for 13% of total exports with China and Vietnam a close second and third. So far in 2016, U.S. exports of distillers grains are down 11% from a year ago.



Growth Energy Testifies Before EPA on Renewable Enhancement and Growth Support (REGS) Rule

Today, at a hearing in Chicago, Chris Bliley, Director of Regulatory Affairs for Growth Energy testified before the Environmental Protection Agency (EPA) on the Renewable Enhancement and Growth Support (REGS) Rule.

During his testimony, Bliley outlined Growth Energy’s concern regarding the impact of the REGs rule on the developing market for E15, a fuel mixed with 15 percent ethanol and 85 percent gasoline. Specifically, Bliley noted, “While we certainly appreciate and support the regulatory clarity and vapor pressure relief for ethanol flex fuels, we are concerned about the impact of this proposal on the developing market for E15. While the proposal doesn’t directly address E15, it would isolate E15 as the only ethanol-blended fuel that does not receive Reid Vapor Pressure (RVP) relief in conventional areas. This would deny retailers and consumers the choice of cleaner, less-expensive E15 in a large portion of the country during the height of the summer driving season. It is imperative that E15 be given the same RVP treatment as regular E10 gasoline because of its benefit to our nation’s air quality. Without relief, nearly 1,000 retailers will be forced to change their fuel blend to 16 percent ethanol and limit their sale to flex fuel vehicles, which represent a mere 8 percent of the total auto fleet, from June 1 to September 15 in conventional gasoline markets.”

Bliley also raised concerns about the limitations for natural gasoline used for flex fuel blending, explaining, “As proposed, the limits would likely force the use of other refined, hydrocarbon blendstocks and ultimately impose additional costs on the consumers of midlevel ethanol blends and E85.”

Bliley also discussed Growth Energy’s support of the use of biointermediates and new pathways to help develop cellulosic biofuels. He concluded by reiterating the importance of the Renewable Fuel Standard (RFS) stating, “The RFS injects competition and consumer choice into the vehicle fuels marketplace. It is moving America forward. With more and more retailers moving toward E15, and the USDA investments through the Biofuels Infrastructure Partnership, now is exactly the wrong time to orphan E15 as the only fuel that cannot be sold consistently year-round.”



Dairy Groups Send Letter to President-Elect Donald Trump Detailing Importance of Dairy Trade

The National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) sent a joint letter today to President-elect Donald Trump outlining the importance of exports to the U.S. dairy sector and seeking further dialogue on ways the organizations can work with the incoming administration on trade policy.

NMPF and USDEC said in their letter that expanded agricultural trade has created thousands of jobs and billions of dollars in economic activity in rural America. The two organizations said it is important “to preserve current overseas dairy sales while seeking to achieve new gains by removing foreign barriers that hold back additional exports,” according to NMPF President and CEO Jim Mulhern.

The USDA estimates that at the dairy farm level, each $1 billion of U.S. dairy exports generates more than 20,000 jobs and almost $3 billion of economic output. At the manufacturing level, USDA calculates that U.S. dairy exports support approximately 3,200 jobs per $1 billion of exports. Exports consume approximately 14% of the milk produced on American farms, the equivalent of one day’s production each week.

“During the last two decades, dairy exports have grown from less than a billion dollars a year to over $5 billion last year, in the process generating more than 120,000 jobs in dairy farming, manufacturing and related sectors,” said USDEC President Tom Suber.

He said that despite achievements made by free trade agreements, “rampant foreign nontariff barriers require a ramp-up in trade enforcement,” and urged the Trump Administration to closely monitor other nations’ compliance with existing market access concessions.

Emphasizing the need to ensure a level international playing field, Mulhern said that competitors to the U.S. dairy sector in Europe and Oceania “have not been happy to see the U.S. seizing market share from them in the last 15 years. They would relish the opportunity to regain an advantage over U.S. suppliers.”



USDA Invests $33 Million to Improve Water Quality in High-Priority Watersheds

Agriculture Secretary Tom Vilsack today announced an investment of more than $33 million in 197 high-priority watersheds across the country to help landowners improve water quality through the Natural Resource Conservation Service's (NRCS) National Water Quality Initiative (NWQI).

The NWQI helps farmers and ranchers implement voluntary conservation practices, such as nutrient management, cover crops, conservation cropping systems, filter strips, terraces and buffers, which protect and improve water quality where it is needed most. Conservation practices enhance agricultural productivity and profitability while also improving water quality by enhancing soil health and optimizing the use of agricultural inputs.

"USDA is committed to working hand-in-hand with farmers, ranchers, and landowners to address water quality issues and provide the tools necessary to ensure clean, safe water for communities and wildlife," Vilsack said. "This latest investment is yet another example of how voluntary, incentive-based conservation programs are benefitting both producers and our natural resources."

This year, NRCS added 42 new watersheds to the NWQI and selected 21 watersheds for new assessment projects. These assessment watershed projects span 17 states and include a variety of land uses and water quality issues. NRCS will provide resources for these assessment projects to leverage existing plans, data, and information, and fill gaps needed to complete watershed assessments and develop outreach plans. Experience and data gained from several studies, including the Conservation Effects Assessment Project (CEAP), have shown that improvements in water quality are more likely to be detected when conservation systems are placed in the most vulnerable areas of a watershed.

The goal of the NWQI is to implement conservation practices within a local area to protect water bodies within priority watersheds. NRCS works closely with conservation partners and State water quality agencies to select watersheds where on-farm conservation can deliver the greatest benefits for clean water. State water quality agencies also work to align U.S. Environmental Protection Agency funding with these priority watersheds.