Thursday February 9 Ag News

EXTENSION INITIATIVE AIMS TO STRENGTHEN AG ECONOMY

     Low commodity prices paired with high costs of doing business have crop and livestock producers operating in a low profit-environment. To help manage operations during this challenging time, Nebraska Extension has launched a new initiative called Strengthening Nebraska’s Agricultural Economy.

     The state department of agriculture estimates one in four jobs in the state is related to agriculture. In addition, Nebraska’s farms and ranches utilize over 90 percent of the state’s total land area.

     “We understand the importance of the agricultural economy to Nebraska, so we’ve created this initiative to help navigate this challenging time,” said Rick Rasby, associate dean of Nebraska Extension. “It’s about putting tools into the hands of producers to help them make critical decisions when faced with low commodity prices and high-input costs.” 

     Through the initiative, Nebraska Extension specialists and educators from multiple disciplines are sharing research-based information to help producers reduce input costs, increase efficiencies and improve profitability of farm and livestock operations.

     To finance day-to-day operating needs such as feed, fuel, labor, seed, fertilizer and other essential ag inputs, many producers rely on annual operating notes, which can be challenging to obtain in this economy. As part of the initiative, Nebraska Extension’s CropWatch website, http://cropwatch.unl.edu, features information for producers preparing for their renewal appointment with their lender. Costs for the coming year, a reasonable cash flow and spending for family living are all estimates that producers should be prepared to cover during their renewal appointment.

     Other CropWatch articles, which will be shared in coming months, feature options for changing crop production or farm management practices to find hidden cost savings or income potential.

     Analyzing inputs against the value of production can improve profit potential. Through the Strengthening Nebraska’s Agricultural Economy initiative, beef experts from Nebraska Extension have compiled a series of beef profit tips that outline management strategies for producers to consider that influence input costs. One of those tips is to purchase protein supplements after comparing options on a cost per pound of protein basis.

     “The objective of a good supplementation program should be to supply the required amount of protein rather than a specific amount of supplement. Therefore, when choosing among various supplements, a good strategy is to calculate the cost of each supplement on a cost per pound of crude protein, then purchase in the most economical way,”  Nebraska Extension Educator Aaron Berger said.

     Many of the topics within the initiative have been featured in the Farm Financial Management webinar series by Nebraska Extension, the Department of Agricultural Economics at Nebraska and the state's department of agriculture. The webinars focused on economic outlook, cost control, negotiating a lease, communicating with ag bankers and decision-making in an uncertain world. Those webinars are available at http://farm.unl.edu/farmfinances.

     There are a variety of places producers can find resources provided through this initiative. Educational materials will be featured on the Nebraska Extension CropWatch at http://cropwatch.unl.edu/strengthening-nebraskas-agricultural-economy, and the beef site at http://beef.unl.edu/. Additional interviews will be provided through Ag Almanac radio and Market Journal. Producers can find information related to the initiative on Twitter at #StrongNebAg.  

     Despite today’s economic challenges, those at Nebraska Extension don't want producers to feel discouraged.

     “Cattle and crop cycles aren’t new to the industry," Rasby said. "We just came off higher-than-ever commodity prices and now that they’re lower, producers should know that Nebraska Extension is here to support them."



Ethanol Videos Fuel Student Creativity

Nebraska high school students from Cambridge, Gibbon and Wayne pocketed $2,000 in awards from Nebraska Ethanol Board’s Field to Fuel video contest.

The Field to Fuel video contest encouraged Nebraska high school students to explore the importance and value of American Ethanol. With a focus on informing the public about renewable fuels, students were asked to research, film and edit a two-minute video.

Cambridge High School students – Seth Andrews, Wyatt Fiene, Dawson Horwart, Avery Johnson, Matt Pearson, Caleb tenBensel and Tyler Witte – took first place honors with a $1,000 prize. Their video included a tour of the Nebraska Corn Processing ethanol plant and aerial footage of farming, the ethanol plant and Anew Travel Center.

“These students not only wrote an articulate script that is informative, but they took the time to film in various parts of Cambridge,” said Megan Grimes, Nebraska Ethanol Board public relations coordinator. “The sound and video quality shows they took this project seriously.”

Seniors Amanda Hendrickson and Madison Roblyer of Gibbon High School took home a second place prize of $600. Their video focused on the depleted ozone layer and how they could save the world using renewable fuel.

Senior Adam Bentjen of Wayne High School was awarded third place and $400 for his creative work. His high-energy video included ethanol facts racing down a blacktop road.

"We appreciate all the creative submissions we received for our third annual video contest,” Grimes said. “Our goal is to get youth interested in renewable fuels while having fun, too.”

To see all the videos that were submitted this year visit the Nebraska Ethanol Board YouTube Channel. The winning video from Cambridge High School will be debuted at the Ethanol 2017: Emerging Issues Forum in Omaha April 13-14.



CVA Directors Complete “Director Certification Program”
Alex Brookhouser, Ryan Crumly, and Pat Wemhoff, directors of the Central Valley Ag Co-op of York, recently completed a four-phase educational program co-sponsored by the Nebraska Cooperative Council and CoBank. Each will receive a Certificate of Recognition acknowledging completion of the program.

The Director Certification Program is a unique educational program specifically designed to assist cooperative directors to more fully understand their ever-changing responsibilities. The program has been presented annually at various locations throughout Nebraska since its inception in 1978. More than 8,175 phases have been completed. The program consists of four one-day courses designed to help participants become more effective cooperative directors. Some of the workshop topics include legal obligations of directors; cooperative principles and practices; using financial statements in making decisions; the benefits of long-range planning; capitalization of cooperatives; and a director’s role in establishing proper controls. Workshop segments are patterned to closely follow the growing responsibilities of cooperative directors.

Rocky Weber, President & General Counsel of the Nebraska Cooperative Council of Lincoln, said, “Farm supply and marketing cooperatives are essential segments of the agribusiness industry in Nebraska. These local cooperatives contribute to the success of today’s farmers and ranchers, and the complexities of cooperatives only grows. This requires local directors to continually seek out training programs to enhance their skill set. The Council continues to place a high priority on director education programs because education will be a key factor in determining the future success of Nebraska’s cooperatives.”

The Nebraska Cooperative Council is the trade association for agricultural cooperatives. Over 96% of the agricultural cooperatives throughout Nebraska are members of the Council.



FROM GREAT TO GRAND: AKSARBEN STOCK SHOW FINDS NEW HOME IN GRAND ISLAND

AKSARBEN Foundation has announced a new partnership with the Grand Island Livestock Complex Authority and the relocation of the AKSARBEN Stock Show and Purple Ribbon Auction to Grand Island, NE beginning in 2017.

The $42 million livestock facilities located at Fonner Park will host the event. Completed in 2012, the facilities include nearly 500,000 sq.ft. of state-of-the-art exhibition, livestock and equine facilities constructed initially for the Nebraska State Fair and utilized throughout the year. Buildings include the Five Points Bank Arena and dedicated barns for cattle, swine, sheep and goats, as well as the Pinnacle Bank Expo Center.

“With the continued growth of the AKSARBEN Stock Show, we believe this is the right fit for us,” said Kevin Kock, executive director of AKSARBEN Agriculture Initiatives. “It will provide everyone from exhibitors to spectators with cutting-edge facilities and proper space to improve on what is already the premier livestock show in our region.”

For 89 years, the AKSARBEN Stock Show has called Omaha home. As the nation’s largest 4-H Stock Show, the event draws thousands of 4-H youth, family members and attendees from across the country, creating millions in direct economic impact for the Heartland. Proceeds from the event benefit scholarships, premiums, and awards for 4-H youth.

AKSARBEN Foundation officials believe the move to Grand Island provides the Foundation with opportunities to expand its impact statewide and increase the number of business and community leaders carrying out its mission to leverage collective business leadership to build a more prosperous Heartland.

“AKSARBEN Foundation has a long tradition of making meaningful and sustainable impacts beyond Omaha,” said Kirk Kellner, chairman of the Knights of AKSARBEN and regional president of Wells Fargo Bank. “Moving the AKSARBEN Stock Show to Grand Island demonstrates a commitment by AKSARBEN Foundation to maximize its impact in Greater Nebraska and grow the Knights of AKSARBEN leadership network.”

As part of the transition, day-to-day operation of the AKSARBEN Stock Show will shift to the Grand Island Livestock Complex Authority (GILCA) by 2019. GILCA is a collaborative which includes the Nebraska State Fair, Fonner Park, the Grand Island Chamber of Commerce, and Grand Island Hall County Convention and Visitors Bureau. AKSARBEN Foundation will remain the perpetual title sponsor, and members of the Knights of AKSARBEN will sit on the event’s oversight committee.
The Purple Ribbon Auction, which supports AKSARBEN Foundation’s annual contribution of $150,000 to 4-H youth in the form of scholarships, premiums and awards, will be driven by a committee of Grand Island and Tri-Cities business and community leaders.

Cindy Johnson, President of the Grand Island Area Chamber of Commerce, said Grand Island and communities across central Nebraska will enthusiastically embrace the AKSARBEN Stock Show at its new location.

“Our region has made significant investments to attract leaders in the livestock show industry and drive economic impact,” Johnson said. “The AKSARBEN Stock Show is the premier 4-H stock show in the nation, and we anticipate tremendous interest among 4-H families and the Tri-Cities community. It’s a win-win for central Nebraska and for the AKSARBEN Stock Show.”

“In the four short years since the creation of the Grand Island Livestock Complex Authority, we have worked diligently to bring national shows to Grand Island, with considerable success,” said Joseph McDermott, Executive Director of the Nebraska State Fair. “Never in my mind did I think that we would land one of the most prestigious shows in the country. This move of the AKSARBEN Stock Show to Grand Island exemplifies the hard work and hospitality of our community.

“The impacts of the cattle shows in Grand Island have been enormous and now the ability to have AKSARBEN, one of the most prestigious names in the livestock industry to come here, is a real identifier for our community,” said Brad Mellema, Executive Director of the Grand Island Convention and Visitors Bureau.

At its new venue in Grand Island, the AKSARBEN Stock Show is expected to draw more than 1,200 4-H Exhibitors from states throughout the Midwest, including Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota and Wyoming. National Livestock Judging and Quiz Bowl competitions will draw an additional 700 competitors from across the nation.

The expanded facilities at Fonner Park house various exhibits including the Raising Nebraska interactive agriculture science experience, birthing pavilion and milking parlor, offering youth and visitors opportunities to learn more about the agriculture landscape of food, fiber and fuel production.

“Agriculture and education are central to the prosperity of our Heartland and are core initiatives of AKSARBEN Foundation,” Kock said. “With our partnership with Grand Island, AKSARBEN Stock Show’s vision is to grow as a premier destination for 4-H youth and as a leader in our support of youth agriculture education.”




East Coasters Avoid Winter Chills Thanks to Bioheat®

While the Northeast gets rocked by Winter Storm Niko, residents can stay warm with Bioheat®, a clean burning heating oil courtesy of U.S. soybean farmers.

Homes, offices and municipalities in the Northeast and Mid-Atlantic rely on heating oil to stay warm during the winter. Many areas use Bioheat, a blend of biodiesel and ultra low sulfur heating oil, and that means more demand for soybean farmers. Bioheat replaces petroleum-based heating oil with biodiesel, which is often soy-based, delivering a quality product that is nontoxic and reduces greenhouse gas emissions. As temps stay cool thanks to Winter Storm Niko, more Bioheat means more profit opportunities for U.S. soybean farmers.

“The U.S. has been using biodiesel in trucks and tractors for more than 20 years,” says Ralph Lott, a soybean farmer from Seneca Falls, New York, and farmer-leader on the United Soybean Board (USB). “Bioheat represents an exciting growth market and an opportunity to have an economic impact; the checkoff is working to make that market an even bigger reality.”

Used in 23 states, residential heating oil represents at least a 4 billion gallon market annually. Many municipalities have adopted policies to impact the use of Bioheat in their districts. New York City, for example, requires Bioheat be used at a two percent level, with an increase to five percent coming later in 2017. With NYC using 40 million gallons of pure biodiesel annually and growing, soybean farmers have an opportunity to increase demand for soybean oil and, in return, increase their profitability.

Aside from the sustainable benefits of Bioheat, it also is what the industry calls a drop-in solution. Bioheat can be used in existing infrastructure, so building owners don’t have to invest in costly upgrades to use the fuel.

“These cities in the Northeast use a lot of heating oil, so the potential to convert to a biodiesel blend holds significant benefits for building owners and residents,” says Lott. “We’re providing a solution for them while ultimately looking at what can provide more value for U.S. soybean farmers.”



Soy Aquaculture Alliance Applauds Approval of Taurine

The Soy Aquaculture Alliance (SAA) welcomed approval last week of a new definition for taurine that now includes fish. Taurine is an important amino acid for fish, but it was not approved for use in aquafeeds produced in the United States. This left feed formulators in the U.S. with only the option of using fishmeal in the diets to meet the taurine needs of our animals, reducing the amount of U.S. soy that could be utilized. This approval caps a multi-year research effort supported by SAA, the United Soybean Board (USB), the National Oceanic and Atmospheric Administration (NOAA) and the U.S. Department of Agriculture (USDA).



Ethanol Production Forecast to Increase

The U.S. Energy Information Administration has released the February edition of its Short-Term Energy Outlook, predicting U.S. fuel ethanol production will average 1.01 million barrels per day in 2017 and 2018, up from 1 million barrels per day in 2016. In January, the EIA predicted ethanol production would average 1 million barrels per day this year, increasing to 1.02 million barrels per day next year.

On a quarterly basis, fuel ethanol production is expected to average 1.02 million barrels per day during the first three months of this year, falling to 1 million barrels per day in the second quarter, increasing to 1.02 million barrels per day in the fourth quarter and finishing out the final quarter of the year at 1 million barrels per day. In 2018, the EIA currently expects fuel ethanol production to reach 1.03 million barrels per day during the first quarter, falling to 1.02 million barrels per day during the second and third quarters, and falling to 980,000 barrels per day during the fourth quarter.

According to the February STEO, the EIA currently expects U.S. fuel ethanol consumption to average 940,000 barrels per day in 2017 and 2018, maintaining the 2016 consumption level.

U.S. regular gasoline retail prices are expected to fall from an average of $2.35 per gallon in January to an average of $2.27 per gallon in February, before increasing to an average of $2.33 per gallon in March. For the full year 2017, gasoline prices are expected to average $2.39 per gallon, increasing to $2.44 per gallon in 2018.



Ethanol Industry Leaders Gather for Growth Energy’s 8th Annual Executive Leadership Conference

Today, Growth Energy is hosting leaders and allies of the ethanol industry for its eighth annual Executive Leadership Conference (“The Driving Force of Change”) in Miami. The gathering will provide an opportunity to set the stage for Growth Energy’s 2017 priorities and the path forward for the ethanol industry. The conference begins today and concludes on Friday, February 10. It will feature presentations by leading fuel retailers on the energy behind E15 adoption, panels including automotive experts to discuss the performance benefits of higher ethanol blends, engagement workshops, presentations on the regulatory and policy landscape for ethanol as well as the future of advanced biofuels, and Growth Energy’s annual award dinner to recognize outstanding leaders in the industry.

“Growth Energy is looking forward to showcasing how we will carry our industry to new heights in partnership with the leaders and supporters mobilized at our conference,” said Emily Skor, Growth Energy CEO, “We are excited to offer the latest insights from distinguished experts on all aspects of the ethanol industry, to celebrate our many accomplishments over the past year, and discuss the new direction we are taking to tackle the challenges and opportunities ahead of us in 2017.”

The Executive Leadership Conference will feature a variety of panels and workshops tailored to our membership and the most relevant topics to the ethanol industry. Our members will have the opportunity to attend any of the following:

Thursday, Feb. 9
·       The Energy Behind E15 Adoption, Featuring RaceTrac
·       Mycogen Seeds – Cross Industry Partnership
·       The Future of Advanced Biofuels
·       American Ethanol: A 21st Century Fuel for 21st Century Performance
·       Reshaping the Ethanol Narrative for Consumers
·       E15 Branding, Driving Even More Sales
·       Changing Lanes: Ethanol’s New Narrative Workshop
·       How to Hustle… For Friends and Followers Online Workshop
·       Join the Speakeasy Club: Talking about Ethanol in your Community Workshop

Friday, Feb. 10
·       Going Global: A Strategy to Grow the U.S. Ethanol Industry
·       Protecting and Preserving the Market through Regulatory and Technical Advocacy
·       Crystal Ball into Ethanol Policies: 2017 & Beyond
·       Securing E15 Success Depends on Preserving the RFS Point of Obligation
·       Get to Know Growth Energy’s CEO, Emily Skor

The ethanol industry is an American success story contributing to our energy security and growing American jobs. Growth Energy’s Executive Leadership Conference brings together leaders of the biofuels industry and provides them with the most current insights affecting the ethanol industry and celebrates the achievements of the industry in moving America forward.



Growth Energy Panel Discusses Engine Performance with Ethanol at 8th Annual Executive Leadership Conference

Today, Growth Energy hosted an expert panel at its eighth annual Executive Leadership Conference to discuss the engine performance benefits of biofuels, like ethanol. The panel, “American Ethanol: A 21st Century Fuel for 21st Century Performance” featured Dr. Andy Randolph, Technical Director of ECR/RCR Engines, Keith Holmes of CK Motorsports, Kyle Mohan of Kyle Mohan Racing, and was moderated by Steve Anderson of Minnoco.

“We are excited to have been able to assemble such a phenomenal range of experts touching on every facet of engine performance for our members,” said Emily Skor, Growth Energy CEO, “Each one of these experts sees firsthand the tremendous benefits of ethanol for engines—whether those be race engines, marine engines, or everyday vehicles. We’re thrilled to showcase how these benefits extend to American drivers who are embracing higher ethanol blends, like E15 for its performance, environmental, and cost considerations.”

The panel discussed how ethanol stands up to the most rigorous tests across multiple racing disciplines, and how that same performance translates for American drivers across the United States. The panel dispelled myths about biofuels and illustrated the advantage of higher ethanol blends for consumers.

Dr. Randolph discussed the octane boosting properties of ethanol and concluded that it adds up to better engine performance for not only racecar drivers, but all drivers. “Let your wallet talk to you,” he said and added cost savings to the long list of benefits of choosing E15 at the pump. Holmes chooses ethanol to fuel his Cat Can Do Racing boats because it gives him a competitive advantage, burning cleaner and cooler. Mohan concluded that drivers should fuel up with E15 because it’s better for the environment and gives consumers more miles per dollar.

The ethanol industry is an American success story contributing to our energy security and growing American jobs. Growth Energy’s Executive Leadership Conference brings together leaders of the biofuels industry and provides them with the most current insights affecting the ethanol industry and celebrates the achievements of the industry in moving America forward.



U.S. and Canadian Wheat Farmer Leaders Call for Open Wheat Trade in Op-Ed

In an op-ed published in Canada’s “News Hub Nation,” U.S. Wheat Associates Chairman and wheat farmer Jason Scott and Western Canadian Wheat Growers Association President and wheat farmer Levi Wood called on the Canadian government to take the steps needed to allow “a free flow of grain in both directions across the border to improve the efficiency of the grain handling systems in both countries and eliminate artificial price distortions that frustrate farmers.”

In the op-ed, Scott and Wood said: “Since the end of the Canadian Wheat Board’s government monopoly control over the marketing of western Canadian wheat … one of the most significant changes to come from marketing freedom for wheat farmers has been the growth in sales of Canadian wheat into the U.S. market.”

“Currently, Canadian farmers delivering wheat into the U.S. receive equitable treatment with grain grown south of the border; however, because of legislation and regulation that existed for years before the marketing freedom changes came to western Canada, U.S. producers who currently deliver wheat into Canada automatically receive the lowest grade, regardless of the quality or variety of grain, even if the variety is registered in Canada … This inequity has created significant concerns in the Canadian and U.S. wheat industries, especially given the potential of re-opening the North American Free Trade Agreement (NAFTA).”



Crop Insurers Reflect on Past, Plan for Future at Annual Conference

An industrywide crop insurance convention just adjourned, ending three days of sessions where participants discussed the importance of partnering with the new Administration to help farmers manage their growing risks.

The event, organized by National Crop Insurance Services (NCIS) and American Association of Crop Insurers, brought together industry members, agricultural producers and key lawmakers.

"We're grateful to our friends on Capitol Hill who established crop insurance as the centerpiece of America's farm policy," said NCIS President Tom Zacharias, "And, we appreciate the outgoing Administration, which partnered with crop insurers over the last eight years to make coverage more affordable and available."

He highlighted several recent successes:
-    Farmers helped fund their own safety net, collectively spending more than $30 billion from their own pockets on insurance coverage since 2009.
-    Because of crop insurance, Congress didn't have to pass costly ad hoc disaster bills after severe flooding in the Midwest in 2011 or the widespread drought of 2012.
-    25 million more acres are covered today than in 2009, thanks to steps taken to add new products and make premiums more affordable for farmers.
-    Instances of improper crop insurance payments in 2016 — a common measure of government program efficiency — were just 2.02 percent, compared to a 4.67 percent average for other government programs.
-    Since passage of the 2014 Farm Bill, crop insurance costs have come in under budget estimates by approximately $3 billion.
-    In 2012 alone, crop insurance saved 20,900 jobs across Iowa, Nebraska, South Dakota and Wyoming with an annual labor income of $721.2 million, according to a new study by Farm Credit Services.

Zacharias believes this solid foundation can be built upon for years to come.  "The new Administration's promise to protect and grow American jobs, and its pro-business attitude give us reason to be optimistic," he explained. "We are eager to partner with the incoming USDA to strengthen rural America and help our farmers."

He concluded: "The cost-sharing attributes of crop insurance help shield taxpayers from risk. Private-sector efficiencies speed aid when its needed the most. Farmers can tailor coverage to their own unique operations. And crop insurance is popular throughout rural America. All of which should bode well in the upcoming Farm Bill debate."



Syngenta Reports $12.8 Billion in Sales for 2016

Syngenta, a leading agriculture company helping to improve global food security by enabling millions of farmers to make better use of available resources, reported a strong full year free cash flow generation and fourth quarter sales. The company said it had sales of $12.8 billion, 2 percent lower at constant exchange rates, but up 1 percent excluding Brazil sales terms change and 2015 corn trait royalty. It also reported sales were 5 percent lower during its fourth quarter but that regional sales were up 7 percent excluding corn trait royalty.

Erik Fyrwald, Syngenta CEO, said, "In 2016, Syngenta showed a resilient performance in the face of another difficult year for the agriculture industry, with crop prices remaining low and grower profitability under pressure in many areas. The announcement of the transaction with ChemChina promises continuity for the future and has allowed our people to remain focused on delivering their business goals.

"We saw an encouraging sales performance in the fourth quarter, with regional sales up 7 percent excluding the non-recurring corn trait royalty received in 2015. Europe showed excellent growth, resulting in a solid performance for the full year despite very adverse weather in the second quarter. Asia Pacific continued its recovery as the effects of El Nino receded. North and Latin America both showed moderate growth excluding the corn trait royalty.

Innovation also played an important role in Syngenta during 2016 with a number of new product launches. In the USA, its new corn herbicide ACURON achieved sales of over $200 million. Syngenta saw the further geographic expansion of SOLATENOL-based fungicides and the registration of ADEPIDYN in Argentina. In seeds, the unparalleled performance of Syngenta's VIPTERA trait drove an increase in corn market share in Brazil.