Tuesday January 10 Ag News

Are You Ready for Calving?
Larry Howard, NE Extension Educator, Cuming County

It is already time to start thinking about and planning for calving season. Planning ahead and being prepared can help increase the chances of success. You can begin by asking yourself two simple questions. Are my cows ready for calving? Am I ready for calving?

Ideally, we would like our cows to give birth to healthy, vigorous calves with little calving difficulty and successfully re-breed. A major factor to this happening is the nutritional status of the cows at calving. Calving takes work and cows that are undernourished have a greater chance of problems such as prolonged calving, increased calving difficulty, weak calves, colostrum issues, and prolapses. Evaluating the nutritional status of your cows using Body Condition Scores (BCS) 60 to 80 days prior to the calving season provides a means to offset these problems. Cows with a BCS 5 and heifers with a BCS 6 on a 1 to 9 scale at calving are much less likely to suffer these problems and have a much greater chance of re-breeding. For more information on BCS scoring please see Body Condition Scoring Your Beef Cow Herd (http://go.unl.edu/73kx).

Getting yourself ready for calving season starts with evaluating calving areas to make sure that all are clean, dry, strong, safe, and functioning correctly. Consider assembling an obstetrical kit with needed supplies so everything is in one place. Supplies should include disposable obstetrical sleeves, disinfectant, lubricant, obstetrical chains, and obstetrical handles.

Lastly, before calving season starts, review and develop a protocol. See Assisting the Beef Cow at Calving Time (http://go.unl.edu/y3at) for information. You should plan what to do, when to do it, who to call for help, and how to know when you need help. Review these plans with all family members or helpers. Make sure everyone is familiar with what to expect during a normal calving and how to determine if there is a problem. Visit with your veterinarian about the protocol and incorporate his/her suggestions. Having a plan and being prepared will help make the calving season a success.

2017 Nutrient Management Record Keeping Calendars are Now Available
This easy-to-use record keeping calendar for livestock operations that keeps track of manure related records is available to all livestock producers. The calendar was designed to be used by all sizes of livestock operations and includes all records required for operations permitted for the National Pollutant Discharge Elimination System (NPDES). It has been approved by the Nebraska Department of Environmental Quality (NDEQ) and recognized by the U.S. Environmental Protection Agency (EPA) as a valuable resource for livestock producers.

Records of rainfall, storage depth gauge levels, and storage and equipment inspections are an important aspect of required manure and runoff storage records for a NDEQ permit. These and other records will help you gain value from manure nutrients and document your stewardship of the environment.

The calendar is available for free by contacting Leslie Johnson (leslie.johnson@unl.edu), the NDEQ office or you can pick one up at the Cuming County Extension office. Calendars are good through January 2018. On-line orders can also be made at http://go.unl.edu/nm. To view an electronic sample of the calendar, go to http://extensionpublications.unl.edu/assets/pdf/ec136.pdf.



R-CALF meeting info

Area livestock producers are invited to a R-CALF meeting in Norfolk and Columbus areas January 24 2017.  Bill Bullard CEO of R-CALF USA will be here discussing the causes of the recent collapse of the cattle market and identify solutions to help reverse the unprecedented price decline. Also updates on Country of Origin Labeling, GIPSA rules and Check-off law suite. These meetings will be held at Shadows Restaurant and Pub in Columbus January 24 @ 1:30pm. In Norfolk@ Divots Conference Center in the Dakota Room January 24 @ 7:00 pm.  Meetings are free of charge and the public is welcome to attend.  For more information call Richard Schrunk@ (402)-340-1222.



Trade Travels Build Business, Personal Ties

Nebraska farmers export more than half of the soybeans they grow. Nationwide, more than 60 percent of the soybean crop is shipped to other nations. But strong export markets don’t just happen. It takes a lot of time and effort to build the kinds of relationships necessary to sell more soybeans abroad.

Chapman soybean farmer Greg Greving has seen the value of meeting with overseas customers and getting to know them on a personal level firsthand. Greving is a past director on the United Soybean Board and an ex officio member of the Nebraska Soybean Board. He recently returned from a trade mission to the Philippines and Thailand, one of several visits he’s made to Southeast Asia since 2013.

“Someone once told me the Asian people value a contact more than a contract, and I’ve found that to be very true,” said Greving. “It’s important for U.S. farmer leaders to meet with overseas customers and put a face on American soybean producers.”

The Philippines is the second largest customer for U.S. soybean meal, and Greving has seen every step of the supply chain there—from the unloading facilities to feed mills and, ultimately, the livestock producers and aquaculture facilities that use the soybean meal. In return, Greving has hosted visitors from the Philippines and other Southeast Asian nations at his farm during harvest. He’s made lasting friendships that go beyond business.

“The first time I hosted a delegation, I made sure to include my parents and my sons, who farm with me, because it was important to my guests to meet my family.”

Over the years, Greving has made a lot of friends through the trade visits, including family members of the largest importer of soybeans in the Philippines. The quality and reliability of U.S. soybeans are important to all customers, but so is the friendship.

“We’re friends on Facebook and frequently talk on the phone. They’ll ask how my beans are doing, and I can just post a picture to keep them up-to-date,” said Greving.

The most recent trade mission was conducted in cooperation with grain marketer AGP, which sponsors annual trips to Southeast Asia to promote understanding between soybean farmers and their overseas customers. 



Nebraska Agriculture Leaders Outline Principles for Property Tax Reform

Leaders of Nebraska agriculture organizations who represent tens of thousands of Nebraska farmers, ranchers, and livestock feeders have come together to outline principles to guide actions on comprehensive tax reform for Nebraska. The principles are targeted at addressing Nebraska’s current tax system, which has led to an imbalance and overreliance on property taxes to fund government services, said Dennis Fujan, president of the Nebraska Soybean Association, Jan. 10.

“With the legislature convening, it’s important we collectively share where we believe the discussion on tax reform needs to go. Our principles provide parameters for the critical discussions that need to take place this session,” said Fujan. “It’s also important Nebraskans know we believe tax reform should benefit all Nebraska property taxpayers, including Nebraska homeowners and businesses.”

The Agriculture Leaders Working Group which developed the principles, include member-elected leaders from the Nebraska Cattlemen, Nebraska Corn Growers Association, Nebraska Farm Bureau, Nebraska Pork Producers Association, Nebraska Soybean Association, and the Nebraska State Dairy Association. The group has been meeting for several months to discuss priority issues for Nebraska agriculture, specifically tax reform and property taxes.

The Agriculture Leaders Working Group principles for tax reform state:
1.            Tax reform, whether through legislation or ballot initiative, should seek a more balanced tax system to fund government services and education and benefit all property owners, including agriculture, residential, and commercial property. Collections from property, sales, and income taxes shall share the burden with none of the three individually exceeding 35 percent of the tax liability.

2.            Agricultural property owners currently pay a disproportional amount of the total property tax liability. All future property tax relief produced at the state level must seek to reduce this proportional share.

3.            Tax reform should encourage fiscal responsibility and be revenue neutral. Actions to achieve such measures may include new tax sources or modify existing revenue sources to provide dollar for dollar reductions in property taxes.

4.            Reform must ensure adequate funding for high quality education for Nebraska students, but reduce the reliance on property taxes for educational funding.

5.            Tax reform must provide fiscal restraint in government spending, including budget growth limitations.

“With property taxes comprising 48 percent of the combined collections of property taxes, state sales tax, and state income tax, it is critical we work to re-balance the tax burden in a way that benefits all Nebraskans. These principles will move us in that direction,” said Steve Nelson, Nebraska Farm Bureau president.

While members of the Agriculture Leaders Working Group organized to identify ways to work together on issues across both crop and livestock sectors, it became apparent in discussions that property taxes and tax reform is the top issue.

“Property tax and the need for tax reform has been at the forefront of every conversation we’ve had. It’s time fixing this issue moved to the front of the Legislature’s “to do” list. We’re committed to working with the governor, the Legislature and others to make it a reality,” said Troy Stowater, Nebraska Cattlemen president.

Those participating in the Agriculture Leaders Working Group include:
Troy Stowater – Nebraska Cattlemen, president
Galen Frenzen – Nebraska Cattlemen, president-elect
Dan Wesely – Nebraska Corn Growers Association, president
Steve Ebke – Nebraska Corn Growers Association, past president
Steve Nelson – Nebraska Farm Bureau, president
Mark McHargue – Nebraska Farm Bureau, first vice president
Russ Vering – Nebraska Pork Producers Association, president
Darin Uhlir – Nebraska Pork Producers Association, vice president
Kevin Peterson – Nebraska Pork Producers Association, vice president
Dennis Fujan – Nebraska Soybean Association, president
Dwaine Junck – Nebraska State Dairy Association, vice president
Doug Temme – Nebraska State Dairy Association, past president



Ag Land Values in Limbo in 2017 - Interest rates will play a role in setting the stage

Several factors will come into play in 2017 that will determine the direction of land values.

Randy Dickhut, senior vice president of real estate operations for Farmers National Company, said that in the past three years, agricultural landowners in many regions across the country have seen a decline in profits, which also pushed land values lower.

“This winter, questions abound as to the direction of commodity prices, interest rates, inflation, challenges in the world economy, weather and U.S. tax law,” Dickhut said. “Buyers of ag land are asking if it is an opportune time to make a purchase of a farm or ranch, while sellers are asking if the market dynamics are indicating that it is good time to sell land. Depending on location, quality of land and other factors, our agents report seeing regions and local areas where land prices are stable to somewhat strengthening post-2016 harvest. Then there are other areas where land values have continued to decline.”

A key factor impacting land prices will be interest rates, Dickhut said. Grain and livestock prices affecting farm and ranch income also will influence land values.

“Foreign trade policy and its effect on agriculture will be closely watched over the next few months. Potential changes in tax laws could affect estate taxation and capital gains rules that in turn influence buying and selling decisions,” Dickhut said.

Nebraska
Land values for the first half of 2017 in Nebraska likely will remain relatively flat unless there is an uptick in grain and livestock commodity prices, said JD Maxson, assistant area sales manager for Farmers National Company in North Platte, Neb. Overall, the land market has softened due to weak grain and livestock commodity markets. But, Maxson anticipates high quality land in sought-after locations to continue to be in demand in the first half of the year.

“A farm with Class I and II soils, good access, water and a level to gently rolling topography has and will continue to get the attention of local neighboring farms and investors,” Maxson said. “Typically, this type of farm offers high yields and excellent productivity, which translates to bottom line profits and above average return-on-investment. In comparison, an average to medium quality farm with any tract needing improvements such as gravity irrigation to pivot, which is a combination farm with Class III and above soils and may need cedar tree removal, is being discounted by as much as 25 to 30 percent.”

Maxson also said inflation could be on the horizon with the recent one-fourth of a percent hike in interest rates.

“However, land is a hard asset and can be leveraged against inflation versus other paper investments,” he said.

Still, since August 2016, top quality land in Nebraska continues to hold its value, while medium and low quality land is trending lower. Hard grass and meadow acres, as well as soft grazing acres, also are trending lower.

High quality farms are selling best through the auction process and sell within days if priced for the market, while medium and low quality farms are moving better with private treaties, but sit on the marketplace for longer periods of time. Almost all auctions have been successful in this state from June 2016 forward.

Unfortunately, Maxson has seen a few forced sales due to farmers’ financial constraints.

“However, lenders have been meeting with the producers after harvest. We certainly could see an 80-acre farm or short-quarter come on the market to generate operating capital for 2017,” he said.
Active sellers include absentee land owners, farmers/owner-operators and trusts. In the last few months, buyers have been investors.

“1031 money has had a huge impact in the last 90 days,” Maxson said. “High quality farms are holding value, while medium and low quality farms with issues like access, soil and water, along with a low percentage of tillable acres or land that needs improvements, are taking a hit of 25 to 35 percent.”

Iowa
The second half of 2016 saw a jump in land auctions in the state of Iowa with a $34.859 million greater volume in the second half of the year and 3,763 more acres sold, said Sam Kain, ALC,
GRI, ABRM, national sales manager for Farmers National Company based out of West Des Moines, Iowa. Auctions are the most successful approach to selling land in Iowa, with 97 percent of auctions resulting in a sale the day of the event.

Top quality land remains stable with a possible five percent decrease. Medium quality land is experiencing a five percent decrease and low quality land is seeing a 10 percent decrease in value. Pasture ground remains stable. Kain said he is seeing some land sales resulting from farmers experiencing financial pressures. Approximately 85 percent of buyers are local farmers and 15 percent are investors.

“The land market has been stronger since harvest was completed, which I attribute to above average yields,” Kain said. “For 2017, a lot will depend upon how much land comes on the market. Current commodity prices indicate land values should be trending downward, but if we continue to see so few farms come on the market, prices will stay steady.”



Farm Bureau Convention Concludes with 2017 Policy Roadmap

Delegates to the American Farm Bureau Federation’s 2017 Annual Convention today approved a host of public policy measures designed to help assure a prosperous future for farmers, ranchers and everyone who depends on them for food, fuel and fiber.

Delegates covered the full range of agriculture policy over the day-long session. Resolutions passed included important measures covering regulatory reform, crop insurance, the inclusion of food assistance in the upcoming farm bill, school nutrition, biotechnology, energy and more.

“The actions taken today by our farmer and rancher delegates from across the nation represent the culmination of our year-long grassroots policy process,” said AFBF President Zippy Duvall. “It also provides us a roadmap for actions AFBF will take to implement our policies throughout this year, and I am optimistic about those prospects.”

Regulatory Reform
Delegates approved policy supporting regulatory reform, including legislation to eliminate “judicial deference,” which has essentially nullified the power of the courts to serve as a check on agency abuses.

Also on the topic of regulations, delegates approved policy to oppose agency advocacy campaigns in support of their own proposed regulations.

Delegates passed a sense-of-the-body resolution calling for comprehensive regulatory reform, driving home the importance of the issue for farmers and ranchers.

New language was approved to require the Bureau of Land Management, U.S. Forest Service, U.S. Fish and Wildlife Service and other federal agencies to coordinate and cooperate in a meaningful way with state and local governments in making land management plans and decisions as required by Congress. They also supported mandatory recusal for federal officers who face conflicts of interest in their work.

Hunger and Nutrition
Delegates overwhelmingly approved language supporting efforts to fund nutrition programs including food assistance and school lunches through the same, unified farm bill that funds farm safety-net programs.

Delegates also called on Congress to support incorporating all types of domestic fruits and vegetables into the Fresh Fruit and Vegetable Program for schools. Delegates supported the use of fresh and locally grown product when available.

Farm Support
Delegates reaffirmed strong support for risk-management and safety-net tools to defend against volatile commodity markets.

Immigration
Delegates reaffirmed support for flexibility in the H-2A program that would allow workers to seek employment from more than one farmer.

Big Data
Delegates reaffirmed support for the protection of proprietary data collected from farmers, voting that farmers should be compensated when their data is used by third parties. Delegates also supported sale of proprietary data to third parties.



USDA Licenses Diagnostic Kit to Improve Management of Johne’s Disease in Cattle

The United States Department of Agriculture (USDA) has issued Thermo Fisher Scientific a Veterinary Biological Product License for its Applied Biosystems VetMAX-Gold MAP Detection Kit, a real-time polymerase chain reaction (PCR)-based solution designed to detect the bacterium that causes Johne’s disease. The debilitating condition costs the dairy and beef cattle industries up to $350 million each year in the United States alone.

A serious problem among production and dairy cattle worldwide, Johne’s disease is a chronic and sometimes fatal condition caused by the presence of Mycobacterium avium subsp. paratuberculosis (MAP) in the small intestine of ruminants. Diagnosis of clinical infection is usually confirmed by the detection of the causal organism in feces or in intestinal tissues postmortem.

Approval of the VetMAX Gold MAP Detection Kit is based on the successful completion of the USDA’s stringent review process to ensure safety and effectiveness of the test and evaluation of production and quality systems compliance at the manufacturing site. With the addition of this recent license, Thermo Fisher now offers six USDA-licensed molecular diagnostic tests for customers, more than any other company in the animal health space.

“We strive to provide products that will help our lab partners bring real value to their customers and help maximize their profitability,” said Martin Guillet, global head and general manager of AgriBusiness at Thermo Fisher. “With the availability of VetMAX-Gold MAP Detection Kit, labs will have the confidence they are using a functionally validated test that is subjected to ongoing quality monitoring and USDA product release requirements. This will in turn build confidence among their customers that the best tools are being used to effectively monitor and manage Johne’s disease in their herd.”



Corn Consumption from Ethanol Production
Todd Hubbs, University of Illinois

The U.S. ethanol industry ended 2016 on a high note. Ethanol production for the week ending December 30 set a new ethanol production record with an average of 1.043 million barrels per day. The March futures price for corn moved higher last week to close at $3.58 in large part due to strength in the ethanol sector. Ethanol production and exports returned strong numbers over the first quarter of the marketing year. Currently, the WASDE forecast for corn consumption for ethanol production is 5.3 billion bushels. When taking into account an increase in projected gasoline consumption in 2017 and robust ethanol export levels, the ability to surpass this projection is a strong possibility.

Domestic ethanol consumption in 2017 will be influenced by domestic gasoline consumption, due to the ethanol blending requirement, and the biofuels volume requirement associated with the Renewable Fuels Standard. The EPA final rulemaking for the Renewable Fuels Standard for 2017 was released on November 23 and is discussed in greater detail in this November 30, 2016 farmdoc daily article. In brief, the renewable fuels volume requirement is set at 19.28 billion gallons for 2017 which is up from the 18.11 billion gallons required in 2016. The conventional ethanol requirement is set at 15 billion gallons for 2017, 500 million gallons larger than 2016 and equal to the statutory requirement level. If the gasoline consumption forecast used by the EPA is correct, the E-10 blend wall will be 14.36 billion gallons in 2017. The EPA believes an ethanol supply of 14.56 billion gallons is reasonably attainable in 2017. Within the 14.56 billion gallons, E15 and E85 blends are expected to be 107 and 204 million gallons respectively. The ability to attain the E15 and E85 blend levels remains to be seen but the increase in ethanol requirements provides support for greater corn usage in 2017.

U.S. retail gasoline prices averaged $2.14 per gallon in 2016 which is 12% less than the price experienced in 2015 and is the lowest price since 2004. The December Energy Information Agency (EIA) Short Term Energy Outlook projected an increase in gasoline prices for 2017 to $2.30 per gallon. Despite the projection of higher gasoline prices, gasoline consumption is forecast at 143.60 billion gallons in 2017 which is up from the 142.72 billion gallons consumed in 2016. Ethanol production is forecast to be 1 million barrels per day. If the EIA projection is correct, approximately 15.3 billion gallons of ethanol will be produced in 2017. When considering the robust ethanol export trade currently in process, the U.S. ethanol industry is expected to produce a record level of ethanol in 2017.

Ethanol export numbers are available from U.S. Census trade data for 2016 through November. U.S. exports of ethanol thus far are at 948 million gallons which is up almost 27% from the similar period in 2015. For 2016, the prospect of ethanol exports exceeding 1 billion gallons is not unreasonable. Canada, China, and Brazil imported approximately 67% of the ethanol shipped from the U.S. through November. The increase in ethanol exports is driven largely by increased volumes sent to China and Brazil. China imported 179 million gallons through November which far exceeds the 73.8 million gallons imported during the entirety of 2015. Brazil imported 224 million gallons through November which is almost double imports from 2015. As we progress into 2017, the increases are expected to persist in Brazil since high sugar prices are expected to decrease ethanol production as mills allocate cane for sugar production in 2017. There is concern that China could raise ethanol tariffs and reduce ethanol imports in 2017 due to a possible trade dispute with the new administration.

The implications for corn consumption during the 2016-17 marketing year can be seen in the USDA Grain Crushing and Co-Product Production report released on January 3. Grain crushing for fuel alcohol is available through November. For the first three months of the marketing year, 1.34 billion bushels of corn has been processed for ethanol. This is up 3.2% from 2015 processing numbers. If corn used for ethanol production maintains this pace, 5.37 billion bushels will be processed in the marketing year. Using EIA weekly ethanol production numbers, December ethanol production averaged over 1 million barrels per day. These production levels place corn use for ethanol production in a range of 455 to 460 million bushels for the month if corn use maintains the pace of the three previous months. With a conservative estimate of corn crush in December, total corn consumption for ethanol production through the first third of the marketing year would be above the current WASDE projection.

Lower corn prices, strong ethanol exports, and greater blending requirements combine to make 2017 appear to be a strong year for corn consumption in ethanol production. If the U.S. ethanol industry produced over 1 million barrels per day for the entire year, the ability to blend at requirement levels under an expanded gasoline consumption scenario and meet potential export market demand bodes well for corn use in the sector for 2017.



Poll: Trump Voters Overwhelmingly Support Ethanol

A new post-election survey released today shows that decisive voters in the 2016 presidential election are staunch supporters of American ethanol. The survey of 3,000 Trump voters in the Midwestern battleground states of Michigan, Wisconsin, Ohio, Iowa, Indiana and Minnesota found that more than eight in 10 respondents agree with the President-elect’s vocal support for ethanol and believe the homegrown biofuel is vital to American jobs and energy security.

“Conservatives and liberals alike need to take a fresh look at Trump voters in the Midwest – they are staunchly pro-ethanol,” said Emily Skor, Growth Energy CEO. “These are voters who clearly understand that biofuels like ethanol are delivering greater U.S. energy security, more jobs, cleaner air, and better fuel options for consumers. The road to victory is powered by clean-burning, homegrown biofuels.”

According to the poll, conducted between December 6 and 22 by Quadrant Strategies, 83 percent of Midwestern Trump voters agreed with the President-elect's campaign promise to promote the addition of more homegrown ethanol in America's fuel supply.

Voters overwhelmingly indicated their support for the fuel based on its importance to energy security and American jobs. 85 percent of respondents said ethanol was important to U.S. energy security and 88 percent indicated that ethanol was important to creating American jobs.

“Support for biofuels is something that resonates across party lines, especially in America’s heartland, and President-elect Trump tapped into that,” added Skor. “Lawmakers can see what happens when you underestimate rural and Midwestern voters.”

This survey was conducted by Quadrant Strategies between December 6 and 22 among 3,000 Trump voters across six Midwestern states: Michigan, Wisconsin, Ohio, Iowa, Indiana and Minnesota. The sample size in each state was 500. The overall margin of error for this survey is +/-1.8 percent. The survey was conducted using major, best-in-class national online sample vendors who curate demographically-representative panels, adhering to market research industry standards.



Federal Agencies Partner to Motivate Americans to Be Healthy and Active

Today, the U.S. Department of Health and Human Services (HHS) and the U.S. Department of Agriculture (USDA) announced that USDA's free online tool, SuperTracker, has incorporated the President's Council on Fitness, Sports & Nutrition's (PCFSN) Presidential Champions program as an additional incentive to motivate Americans to be more physically active. Gamification, the application of points and achievements to non-game contexts, has been shown to inspire both youth and adults to engage in physical activity and to monitor progress toward their own health goals. Now, anyone who has a SuperTracker account can participate in the Presidential Champions program by simply logging into their SuperTracker account and recording their daily physical activity.

Since 2003, the Presidential Champions program has motivated Americans ages six and older to become physically active and live a healthier lifestyle. Based on the Dietary Guidelines for Americans, SuperTracker empowers people to improve eating habits, manage weight, and reduce risk of chronic disease. Users can determine what and how much to eat; track their food intake, physical activity, and weight; and personalize their SuperTracker experience by setting individual goals, journaling, and receiving virtual coaching. With the addition of the Presidential Champions program, SuperTracker's millions of users can now also be recognized with awards. Through SuperTracker, Presidential Champions participants can now sync their Fitbit accounts and easily track their activity without manually entering data to accumulate points.

"The partnership between these two agencies is truly a win for all involved. We know that the Presidential Champions program has dedicated participants who will benefit from the incredible suite of tools available in the SuperTracker application," said Angie Tagtow, Executive Director for the USDA's Center for Nutrition Policy and Promotion, which created and manages SuperTracker. "We now have yet another way for existing SuperTracker users to stay motivated to make positive choices every day on their path to a healthier lifestyle."

"We are excited for our long-time Presidential Champions participants to continue earning awards for achieving their healthy goals, while gaining access to the personalized physical activity and nutrition features of SuperTracker," said Dr. Don Wright, Acting Executive Director of PCFSN. "This partnership encompasses the core theme of the Council's 60th anniversary #0to60 Campaign – inspiring all Americans to accelerate their journey to living healthy."