Wednesday December 21 Ag News

CVA Coop Delivers Value - Distributes Patronage

Central Valley Ag (CVA) continues to give back to patrons, demonstrating the spirit of the cooperative system. Recently, CVA’s Board of Directors approved the distribution of patronage to its member-owners. A total payout of $8.0 Million was approved based on Central Valley Ag’s continuing success. The amount paid out in cash to CVA member-owners now stands at $62.6 Million over the past five years.

“I am proud of CVA’s performance, and our ability to deliver these payments to our patrons,” said Carl Dickinson, CEO of Central Valley Ag. “We truly appreciate the business of our member-owners, and are excited to share in the success of the cooperative.”

Dickinson says the success of Central Valley Ag is a result of its member-owners support, Board of Directors vision, and the employee’s dedication to great customer service.



Nebraska Cattlemen Support OIG Audit Report of U.S. MARC

The Office of Inspector General last week released its audit following an extensive and thorough investigation of the animal handling procedures of the U.S. Meat Animal Research Center in Clay Center. The audit results prove the high internal standards of the dedicated and talented scientists and researchers at U.S. MARC have been and continue to be upheld.

"The accusations have been painful and unfairly played out in the media. Justly, the impartial OIG audit report has proven the men and women at U.S. MARC have always cared for the animals to the highest standards," said Nebraska Cattlemen Executive Vice President Pete McClymont. "Animal rights activists have proven once again their calculated actions were meant to damage animal agriculture by maligning the reputation of the world's preeminent authority on livestock and meat protein research."

U.S. MARC is driven to provide food security and sustainability to producers and the growing world population. Nebraska Cattlemen members genuinely appreciate and thank the dedicated staff at U.S. MARC that have endured this unfortunate incident.

"One would hope the prejudiced attacks by animal rights activists against U.S. MARC and meat protein producers would now end but that would be a naïve belief. Producers must remain vigilant to animal rights activists," stated McClymont.



NCTA, SDSU partner for Aggie dairy program

Nebraska residents can start college classes in dairy production beginning in August at the Nebraska College of Technical Agriculture in Curtis through a partnership with South Dakota State University.

Leaders at NCTA and SDSU announced the new program which can lead to NCTA’s Associate of Applied Science (AAS) degree with a concentration in Dairy Production.

“We are pleased with this creative partnership that combines first rate, hands-on teaching facilities at both institutions to allow our students to get the practical experience they need to successfully enter into the dairy industry,” said NCTA Dean Ron Rosati.

Students will take animal science, agronomy, ag business and ag mechanics courses for three semesters at NCTA, and intensive dairy production courses for one semester at SDSU.

“We appreciate the opportunity from SDSU to allow Nebraska students access to their excellent free stall barns, milking parlors, milk processing labs and other dairy infrastructure,” Rosati said.

The SDSU College of Agriculture and Biological Sciences partnership with NCTA’s Division of Animal Sciences and Agricultural Education will help meet production needs faced by the region, said Interim Dean Daniel Scholl.

“We are so pleased that this strategic partnership with NCTA will help provide production agriculture with highly trained graduates heading into exciting careers,” Scholl said.

The new venture came about after the Nebraska Department of Agriculture and State Senator Jerry Johnson, then chairman of the Legislature’s Agriculture Committee, asked Rosati if NCTA would help the state prepare for an expanded dairy industry and growth initiative in Nebraska.

Industry and student requests for a dairy program then prompted discussions at SDSU, which maintains a production dairy herd with dairy manufacturing and food science research programs.

Neither NCTA nor the University of Nebraska-Lincoln had maintained commercial dairy herds.

“We are very pleased to integrate NCTA students into our Dairy Science program at SDSU,” says Vikram Mistry, Professor and Head of the SDSU Dairy and Food Science Department. “The dairy industry in this region is very dynamic and growing rapidly.  With this new partnership we will be training the future leaders of the dairy industry. We look forward to welcoming NCTA students to SDSU.”

While NCTA operates a 600-acre farm and student beef cattle herd along with horses, swine and other livestock, the Aggie campus has not had an operating dairy herd or facilities since the campus served as a high school more than 50 years ago.

“We will readily modify our existing livestock management, animal science, nutrition and reproduction courses that NCTA is known for in the beef cattle industry and apply those courses to dairy science students,” said Doug Smith, chairman of the NCTA Animal Science and Agricultural Education Division. “Our recruiting starts today for students interested in studying dairy science.”

The curriculum at NCTA includes courses such as animal management, introduction to animal science, ag economics and marketing, nutrition, large animal diseases, farm records, artificial insemination, ration formulation, farm and ranch management.  The SDSU semester will feature introduction to dairy science, introduction to dairy cattle breeding and evaluation, dairy cattle operations, two labs, and possibly an internship. NCTA tuition and fees will apply at Curtis, and SDSU tuition and fees applied when at Brookings. The AAS degree will be conferred by NCTA.  

“SDSU has the unique combination of providing dairy production (farm) and dairy manufacturing (processing plant) programs,” added Dr. Mistry. “Thus, NCTA students will have the opportunity to be engaged in the complete spectrum of the dairy industry, from farm to product.”

Nebraska agriculture and economic development leaders have been aggressively recruiting both dairies and processing facilities to the state.



Prairie Farms Dairy, Swiss Valley Farms to Merge

Two farmer-owned dairy cooperatives have announced plans to join forces. On Tuesday, the Illinois-based Prairie Farms Dairy and Swiss Valley Farms, headquartered in Iowa, have announced a merger agreement in which the assets of Swiss Valley Farms will be brought into Prairie Farms Dairy portfolio.

Swiss Valley's assets include five manufacturing plants that produce cheese and whey powder located in Shullsburg and Mindoro, Wisconsin; Luana, Iowa; and Rochester and Faribault, Minnesota. Swiss Valley Farms CEO Chris Hoeger will continue to oversee the plants, which will operate under the name Prairie Farms Dairy, Inc.

Prairie Farms Dairy is one of the largest dairy cooperatives in the region with over 600 farm families, 5,700 employees and 35 manufacturing plants. The company also has over 100 distribution facilities and annual sales of $3 billion. Swiss Valley Farms has 400 dairy producer members in Iowa, Wisconsin, Northern Illinois and Southern Minnesota

The terms of the agreement must be approved by cooperative members from both companies. Once the vote is passed, the deal is expected to close mid-2017.



Ethanol Stocks Steady, Blending Up

The U.S. Energy Information Administration Wednesday reported total ethanol stockpiles were unchanged while plant production eased slightly and blending demand again increased during the week ended Dec. 16.

The EIA’s weekly petroleum status report showed domestic fuel ethanol inventories at 19.1 million barrels (bbl), unchanged from a week ago. Year-over-year supply deficit was at 1.3 million bbl or 6.5% below levels one year ago. Stocks were at a 13-month low of 18.4 million bbl during the week ended Nov. 25.

Plant production decreased 4,000 barrels per day (bpd) or 0.4% to 1.036 million bpd for the week ended Dec. 16, up 63,000 bpd or 6.5% versus a year ago. For the four weeks ended last week, ethanol production averaged 1.028 million bpd, up 48,000 bpd or 4.9%.

Net refiner and blender inputs of ethanol, a gauge for demand, rose 24,000 bpd or 2.7% to 918,000 bpd during the week ended Dec. 16. Year-over-year, refiner and blender inputs were up 38,000 bpd or 4.3% from 880,000 bpd. For the four-week average, blending demand was up 26,000 bpd or 3% to 897,000 bpd.

Implied motor gasoline demand was up 395,000 bpd last week to 9.269 million bpd, 0.9% above the same week in 2015, the report said.



Fertilizer Prices Stuck in Neutral

Retail fertilizer prices tracked by DTN for the second week of December 2016 continue to show fertilizer prices in no strong pattern. While prices have moved both higher and lower for some nutrients compared to a month ago, the movement is slight.

Half of the eight major fertilizers nudged higher in the past month although again none by any substantial amount. The four higher were potash with an average price of $320/ton, urea $333/ton, UAN28 $219/ton and UAN32 $257/ton.

The remaining half of fertilizers were lower, although all moves were within our margin of error. DAP averaged $433/ton, MAP $443/ton, 10-34-0 $444/ton and anhydrous $463/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.36/lb.N, anhydrous $0.28/lb.N, UAN28 $0.39/lb.N and UAN32 $0.40/lb.N.

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

Urea is now down 15%, both DAP and MAP are 19% less expensive and UAN28 is 21% less expensive. Potash, 10-34-0 and UAN32 are all three 22% lower while anhydrous is 24% lower compared to a year prior.




K-State Researchers Recommend New Feed-Particle Size Analysis Method

There’s a big difference between coarse grind and fine grind, and it’s not just in our morning coffee. When it comes to grinding grain for livestock feed, especially swine, digestibility and efficiency are influenced by how large the grain particles are. Typically, the finer the grind the better —up to a point.

New research by Kansas State University shows commercial laboratories and livestock producers who run their own analyses on grain-particle size can reduce the time it takes to check a sample from 15 minutes down to 10 minutes and get the same result by making a couple of changes to the process.

“Grain accounts for a major component and cost in livestock diets,” said Charles Stark, associate professor in K-State’s Department of Grain Science and Industry.  The particle size of ground grain influences feed digestibility, feed efficiency, how well it mixes and how well it can be pelleted, so periodic particle-size evaluation is a necessary part of quality feed manufacturing.

For that reason, Stark and other K-State researchers and specialists recommend routine evaluation of the grinding process, whether through a hammermill or roller mill to determine grain-particle size.

The cost of the equipment needed to run such analyses, however, typically runs $5,000 or more, he said, so most producers in Kansas send grain samples to commercial laboratories or the K-State Swine Lab for analysis.

During the analysis process, grain samples go through a stack of sieves with coarse sieves at the top. As a machine shakes and taps, the grain works its way down through increasingly fine sieves, and ultimately to where the sieve opening is smaller than the smallest particle. The small sieves get down to particles of about 53 microns.

Stark outlined new recommendations based on the research at the recent K-State Swine Day 2016 in Manhattan and in a new publication, Evaluating Particle Size of Feedstuffs.

The new recommendations for running feed through a sieve to determine particle size are to use sieve shakers; sieve agitators, such as rubber balls or brushes; a dispersing or flow agent such as silicon dioxide; and to use 10 minutes of sieving time.

This is different than what many labs are doing, Stark said, and it’s been adopted by the K-State Swine Lab. Until now, the analysis process typically included a 10- or 15-minute sieving time and often hasn’t incorporated sieve agitators or flow agents, but K-State’s work indicates that a 10-minute sieving time is sufficient if labs incorporate sieve agitators and a dispersing agent.

Without sieve agitators or a dispersing agent, buildup occurs on the sieves, which keeps grain particles from moving through, making the results less accurate than they should be.

The research results showed that 10-minute cycles and 15-minute cycles with the sieve agitators are basically identical, so Stark and other K-State specialists believe 10 minutes with the agitators and flow agent will give the result needed, he said.

“With all of the different methods used in the industry and commercial labs, it’s important to know how your lab is conducting the analysis and that adding the agitators and flow agent will significantly reduce the particle result,” Stark said.



5 Tips for Selecting the Right Soybean Variety

High soybean yields take more than just picking a variety that wins a yield contest. Bayer U.S. Soybean Technology Manager William Johnson, Ph.D., offered five tips to identify the right Credenz® soybean seed varieties for your operation.

1.    Know your maturity group
Have a plan for when you want to plant and harvest your soybeans, Johnson said, because that will dictate the maturity group to choose. He also advises growers to diversify their soybean portfolio with different maturities. This will help you operate more efficiently by spreading out field activities.

“If you want to maximize yield,” Johnson said, “you need to plant the right maturity group. Remember, the highest yields typically occur if the soybean is blooming on the longest day of the year, June 21. The maximum solar energy possible funnels into the seed.”

2.    Know your production system
Factor in crop rotation, soil types and profiles, row widths, planting populations and tillage practices when choosing a variety. “Very few varieties can fit every system. Some fit a number, while some only fit one,” said Johnson. “Credenz soybean seed comes from a state-of-the-art breeding program that advances germplasm for an array of field conditions.”

Crop rotation can help with weed and disease resistance issues, even improve yield depending on the crop soybeans follow. Johnson cautioned against using a soy-on-soy rotation several years in a row since “soy-on-soy eventually gives up yield due to increased soil-borne pathogen presence.”

He said soil testing will help identify any nutrient that could limit yield, and it can measure pH levels. The optimum soil pH ranges from 6.0 to 7.5.

3.    Account for diseases
Disease issues vary from field to field. Certain host crops and soil types are more susceptible to disease issues. Growers need to take this into account when selecting their variety.

“Credenz varieties are tailored to combat diseases like SCN, sudden death syndrome, stem canker and phytopthora,” said Johnson. “Investments by Bayer in breeding innovations such as these help identify new varieties to enhance yields now and into the future.”

Johnson said growers should track disease issues to reveal patterns and select specific disease-tolerant varieties on a field-by-field basis.

4.    Consider your weed control options
“You can start with the highest-yielding variety, but if you can’t control weeds then you will have the lowest-yielding variety,” said Johnson.

The best way to minimize weed resistance risks, he said, is to rotate seed trait packages and herbicide modes of action. “Otherwise we might end up with areas where we won’t be able to grow soybeans because of herbicide-resistant weeds.”

Credenz offers growers varieties with different herbicide-tolerant traits to tackle tough weeds and protect yield potential, Johnson added.

5.    Use available resources
Do your homework on what varieties perform better for your field conditions. Universities are great resources for variety information and conduct tests across a number of growing conditions. Look for variety performance information that matches up with your fields. When possible, participate in plot tours to see varieties firsthand.

Johnson also encouraged growers to test varieties on their farm before they decide to plant a variety on a wider scale.

Johnson said growers should factor in the impact harvest aids can have on harvest dates when choosing their seed. He added growers need a contingency plan to switch to an earlier-maturing variety if Mother Nature delays planting time. They also need a back-up variety just in case their first choice is not available.



USDA Provides New Cost Share Opportunities for Organic Producers and Handlers

The U.S. Department of Agriculture (USDA) today announced that starting March 20, 2017, organic producers and handlers will be able to visit over 2,100 USDA Farm Service Agency (FSA) offices around the country to apply for federal reimbursement to assist with the cost of receiving and maintaining organic or transitional certification.

"USDA is committed to helping the organic sector grow and thrive through a wide variety of programs, and part of that commitment is making it easy for stakeholders to access our services. That's why, starting March 20, producers will be able to visit their local FSA offices to access organic certification cost-share reimbursements for up to 75 percent of the cost of organic certification," said FSA Administrator Val Dolcini. "This will provide a more uniform, streamlined process nationwide; and it will give organic producers a chance to learn about other valuable USDA resources, like farm loans and conservation assistance that can help them succeed."

USDA is making these changes to encourage increased participation in the National Organic Certification Cost Share Program (NOCCSP) and the Agricultural Management Assistance Organic Certification Cost Share Program, and at the same time provide more opportunities for organic producers to access a full range of USDA programs, such as disaster protection and loans for farms, facilities and marketing. Producers can also access information on nonfederal agricultural resources, and get referrals to local experts, including organic agriculture, through USDA's Bridges to Opportunity service at the local FSA office.

In the past, state departments of agriculture administered the cost share programs. States that still want to administer the program will have the opportunity to do so by applying for funding by Feb. 17, 2017.

"The Agricultural Marketing Service (AMS) and the National Organic Program look forward to this exciting opportunity to leverage the Farm Service Agency's rural footprint to reach more organic producers and handlers," said AMS Administrator Elanor Starmer. "At the same time it is important to recognize and continue the valuable partnerships with states that remain at the core of the program."

Eligible producers include any certified producers or handlers who have paid organic or transitional certification fees to a USDA-accredited certifying agent. Application fees, inspection costs, fees related to equivalency agreement/ arrangement requirements, travel/per diem for inspectors, user fees, sales assessments and postage are all eligible for a cost share reimbursement from USDA.

Once certified, producers and handlers are eligible to receive reimbursement for up to 75 percent of certification costs each year up to a maximum of $750 per certification scope—crops, livestock, wild crops and handling. Today's announcement also adds transitional certification and state organic program fees as additional scopes.

To learn more about organic certification cost share, please visit www.fsa.usda.gov/organic.