Wednesday February 15 Ag News

Nebraska Corn Growers Association Returns from Washington DC Leadership Mission

This past week young leaders from across the state took part in the Nebraska Corn Growers Association 29th annual Washington D.C. Leadership Mission. From February 6th to February 10th, 16 producers, along with four grower leaders, got a firsthand experience of Washington D.C. and the legislative process.

The leadership mission trip to Washington D.C. is a great way for Nebraska corn farmers to engage with key contacts and help put a face on Nebraska agriculture. The participants had a full slate of meetings over three days. This included meeting with the Nebraska congressional delegation as well as important industry partners. The participants were able to talk with a wide variety of people and organizations who have a great deal of influence over their operations back in Nebraska.

“The DC Leadership Mission is a chance for new leaders to gain a better understanding of the legislative process and the current issues that face Nebraska’s corn farmers. It is our hope that they will take this knowledge and enthusiasm back with them to their local organizations. This trip is the place where many of our current leaders got their start.” Said Dan Wesely, current president of NeCGA.

The groups met with the following organizations:
Renewable Fuels Association
Corn Refiners Association
National Cattlemen’s Beef Association
National Pork Producers Council
U.S. Grains Council
National Corn Growers Association
Animal Agriculture Alliance
CropLife America
FieldtoMarket
Waterways Council, Inc.
Union Pacific
American Farm Bureau
BIO

This leadership mission trip would not be possible without support from our sponsors, the Nebraska Corn Board and Farm Credit Services.



UAN, Urea Prices Push Higher

Retail fertilizer prices tracked by DTN for second week of February 2017 continue to show higher retail prices. This marks the third week in a row some nutrients have made significant jumps as demand builds with southern regions beginning to make applications and plant first seeds of 2017.

All fertilizers tracked by DTN, except DAP, moved higher, with three products higher by a considerable amount.  UAN28 was 7% higher compared to a month earlier, while UAN32 was 6% more expensive and urea was 5% higher. UAN28 had an average price of $238/ton, UAN32 $273/ton and urea $354/ton.  Four fertilizers were slightly higher than the month previous. MAP had an average price of $448/ton, potash $330/ton, 10-34-0 $440/ton and anhydrous $485/ton.  DAP had an average price of $431/ton, slightly lower than the second week of January.

On a price per pound of nitrogen basis, the average urea price was at $0.39/lb.N, anhydrous $0.30/lb.N, UAN28 $0.42/lb.N and UAN32 $0.43/lb.N.

Retail fertilizers are lower compared to a year earlier. Six of the eight major fertilizer are double digits lower. 10-34-0 is 23% lower from a year ago while potash is 13% less expensive, anhydrous is 12% lower. DAP, MAP and UAN32 are all 10% compared to year earlier.  UAN28 is now 9% lower while urea is 4% less expensive compared to last year.



Conference to address advances in water and food security from local to global scales

Registration is open for the 2017 Water for Food Global Conference organized by the Robert B. Daugherty Water for Food Global Institute at the University of Nebraska. The conference, held April 10-12 at Nebraska Innovation Campus in Lincoln, Nebraska, USA, will examine the work being done to ensure water for food security from local to global scales. A discount of $100 is available to those who register on or before March 10. Conference details, including how to register, are available at waterforfood.nebraska.edu/2017wfc.

The three-day event will bring together experts from around the world to explore “Water for Food Security: From Local Lessons to Global Impacts,” a theme inspired by the notion that global breakthroughs come from local action.

Speakers from academia, nonprofit organizations, government agencies and private industry we will share best practices and advances in science, technology and policy that are helping to achieve greater food security with less pressure on scarce water resources. The conference includes collaborative sessions developed with key partners of the Daugherty Water for Food Global Institute, including the International Water Management Institute, the United States Department of Agriculture, International Food Policy Institute and The World Bank, among others.

In addition to the rich variety of plenary sessions, concurrent sessions and technical seminars and workshops, there will be special events to facilitate networking among participants, including two receptions featuring international fare and live entertainment; student poster competition; photography competition and exhibit and a Nebraska bar-be-que banquet in the 100-year-old Creekside Barn at Roca Berry Farm.

Topics include:
-    Expanding access to irrigation for smallholder farmers in sub-Saharan Africa
-    Developing market-based approaches to drought management
-    Enhancing high productivity irrigated agriculture, highlighting challenges and opportunities from the Great Plains to sub-Saharan Africa
-    Improving water management and governance for food security in great river basins of the world
-    Transforming water policy to develop sustainable and equitable water management practices in local regions around the world
-    A View from the Field – how farmers from different parts of the world are using technology and best practices to increase yields
-    Engaging students, stakeholders and future leaders through science literacy and citizen science to examine the relationships between water, food and energy, as well as agriculture and public health.

Featured speakers:
-    Closing Keynote/Heuermann Lecture by A.G. Kawamura, former California Secretary of Agriculture, third generation fruit and vegetable grower from Orange County and co-chair of Solutions from the Land, an organization developing a roadmap for 21st century agricultural systems
-    Ann Bartuska, Deputy Under Secretary for Research, Education, and Economics with the U.S. Department of Agriculture
-    Marlos De Souza, Secretary, Water Platform Land & Water Division, Food and Agriculture Organization of the United Nations (FAO)
-    Chandra Madramootoo, James McGill Professor, Bioresource Engineering Department, Faculty of Agricultural and Environmental Sciences, McGill University; Past President of the International Commission on Irrigation and Drainage
-    Sithembile Ndema Mwamakamba, Climate Smart Agriculture Programmes Manager, Food, Agriculture and Natural Resources Policy Analysis Network (FANRPAN)
-    Steven Schonberger, Practice Manager for Middle East and North Africa Region and Global Lead for Water in Agriculture, Water Global Practice, The World Bank

Registration:
-    Early registration runs through March 10: $450
-    Regular registration runs March 11 to April 1: $550

Special registration discounts are available to academic faculty, staff and students. The 2017 Water for Food Global Conference is a North American Regional Event for the 8th World Water Forum, the world’s largest water-related forum organized by the World Water Council.

Stay up-to-date with the latest information on the conference by visiting http://waterforfood.nebraska.edu/2017wfc.  



Lower Costs Bring Cautious Optimism in 2017

The cost of corn and soybean production in Iowa is expected to fall this year, according to a new study done by Iowa State University Extension and Outreach. The cost of corn production is expected to drop by 12 percent and soybean production will dip by 9 percent.

While dips in production costs are encouraging, the large drop is attributed more to math than it is to lower input prices.

“The study shows the driver behind these falling costs is the decline in both rent and machinery costs,” said Alejandro Plastina, assistant professor and extension economist with Iowa State University. “Both of those variables are affected by a one-time change in methodology.”

In May 2016, Ag Decision Maker published an article on farm machinery efficiency. The new information on increasingly efficient machinery was incorporated into the formula used to calculate input costs.

“Despite the projected increase in fuel prices, the total machinery costs ended up being lower than what we reported last year because of an improvement in the efficiency of those machines,” said Plastina. “There has also been a $30-35 gap between the cash rent projected for the estimated costs of production and the cash rents reported in our annual cash rent survey since January 2014. The 2017 production cost estimates now use cash rent totals that are expected to be within $8 of the reported averages in the 2017 cash rent survey.”

As for the results, the cost per bushel for mid-range yield corn is projected at $4.08 for corn following corn and $3.51 for corn following soybeans. Costs per bushel of soybeans are $9.66 for the herbicide tolerant variety and $9.60 for non-herbicide tolerant beans.

“A decline in the price of fertilizer and lime prices, machinery costs and land rents are expected to more than offset increases in herbicide costs,” said Plastina.

These lower costs of production, when combined with a well-executed marketing plan, will likely result in small but positive profit margins in certain rented acres of both corn and soybeans with cash rents similar to the ones used in the report, as well as owned land with reasonable fixed costs associated with ownership factors. Budgets are available for corn following soybeans, corn following corn, and soybeans following corn. They are also available for low-till, strip till, hay, oats and pasture acres.

“If current price projections are realized with the cost structure we are using, then there should be some positive margins this year,” Plastina said.

Input costs and yields vary between operations across the state. Decision Tool spreadsheets are available to aid in individual analysis of an operation’s own cost of production.

Further details about the report is available in the February issue of Ag Decision Maker. The full report, titled “Estimated Costs of Crop Production in Iowa – 2017” (FM 1712), can be accessed through the Extension Store.



Bipartisan Bill to Relieve Farmers of Redundant Regulation

U.S. Senator Pat Roberts, chairman of the U.S. Senate Committee on Agriculture, Nutrition, and Forestry, with a bipartisan group of senators, introduced S.340, the Sensible Environmental Protection Act, to eliminate redundant federal permitting requirements for pesticide applications.

Introduced by Sens. Mike Crapo, R-Idaho, and Claire McCaskill, D-Mo., S.340 amends the Clean Water Act and the Federal Insecticide, Fungicide and Rodenticide Act (FIFRA) to clarify Congressional intent regarding the regulation of the use of pesticides in or near navigable waters. The legislation requires U.S. Environmental Protection Agency (EPA) to report to Congress on streamlining data collection and use regarding water quality due to the registration and use of pesticides. EPA will also provide recommendations on how FIFRA can better protect water quality and human health.

"This is the fifth consecutive session of Congress that I have joined in the effort to stop this duplicative and burdensome requirement on our farmers and ranchers. I'm hopeful that this is the last time," said Chairman Roberts. "Our farmers and ranchers work too hard to be forced to comply with regulations that are redundant and provide absolutely zero environmental protection or benefits."

Other cosponsors of the legislation include: Sens. John Barrasso, R-Wyo.; Roy Blunt, R-Mo.; John Boozman, R-Ark.; Joe Donnelly, D-Ind.; Mike Enzi, R-Wyo.; Joni Ernst, R-Iowa; Deb Fischer, R-Neb.; Jeff Flake, R-Ariz.; Heidi Heitkamp, D-N.D.; Jim Inhofe, R-Okla.; Jerry Moran, R-Kan.; Jim Risch, R-Idaho; and John Thune, R-S.D.



House Committee Approves Regulatory Transparency Bill

The House Government Reform and Oversight Committee on Tuesday passed Farm Bureau-supported legislation that would ensure both the public and Congress have increased access to federal agency communications beyond those published in the Federal Register.

The Regulatory Integrity Act of 2017 would require federal regulatory agencies to maintain written, electronic and social media information on pending regulatory actions. The bill would require federal agencies to maintain all public communications associated with guidance, policy statements, directives, rule making and adjudications for a period of no less than 5 years.

The measure also incorporates language that would prohibit agencies from advocating on behalf of their own proposed rules. The language comes from an amendment offered by Rep. Collin Peterson (D-Minn.) that was included in the Regulatory Accountability Act of 2017 (H.R. 5), which was passed by the House earlier this year.



Sorghum Checkoff Releases 2016 Annual Report

Today the United Sorghum Checkoff Program released its 2016 annual report that highlights major achievements in crop improvement, market development and renewables for the year. The annual report showcases the dedication of the Sorghum Checkoff to meet the needs and interests of sorghum producers through investments to increase producer profitability and enhance the sorghum industry.

"This past year was one full of continued growth and development for sorghum growers," said Florentino Lopez, Sorghum Checkoff executive director. "The 2016 annual report highlights new and developing programs, market opportunities and research that will have direct impact on sorghum producers and the industry for years to come."

The report features summaries on the Department of Energy (DOE) investments leveraged in 2016 totaling $6.9 million, the Collaborative Sorghum Investment Program to increase grain sorghum productivity and expand markets for U.S. sorghum farmers by 2025, the growth of sorghum use in the consumer food market with the launch of the consumer-facing brand, Sorghum. Nature's Super GrainTM, and developments in sugarcane aphid research and management funded through an investment of $300,000 from the Sorghum Checkoff.

The 2016 annual report showcases the checkoff's focus on developing programs that will help create opportunity for a return on investment to farmers, in addition to the development of relationships and collaborations that continue to increase producer profitability. The Sorghum Checkoff remains committed to meeting the needs of U.S. sorghum producers. A full copy of the report can be found on the Sorghum Checkoff website (http://www.sorghumcheckoff.com/news-and-media/newsroom/2017/02/14/2016-annual-report/).



USGC Advisory Teams Contribute To Global Trade Strategy At Panama Conference

Members of the U.S. Grains Council's Advisory Teams met this week at the organization's 14th International Marketing Conference and 57th Annual Membership Meeting in Panama City, Panama, to set direction and priorities for the Council’s global activities.

“As market opportunities constantly ebb and flow, so must USGC continuously adjust our activities to maintain our long-term global trading partners and meet increasing demand in developing markets,” said Chip Councell, USGC chairman and a grain farmer in Maryland. “The input of our Advisory Teams is essential to both developing the Council’s overarching strategy and planning the Council’s annual activities.”

The committees, often referred to as A-Teams, met to discuss issues of importance in each region and on major topics including ethanol, innovation and sustainability, trade policy and value-added products. The Council delegates also met Tuesday in sector-specific groups, for corn, barley and sorghum producers as well as agribusinesses and general farm organizations.

The input from the A-Teams and Council’s international staff will form the backbone of the Council’s Unified Export Strategy (UES), the operational blueprint and long-term planning document used to apply for USDA Foreign Agricultural Service (FAS) market development and export promotion programs, including the Market Access Program (MAP) and Foreign Market Development (FMD) program.

On Monday, board directors, delegates, members and spouses toured the Panama Canal expansion in Colon, Panama, and representatives of the Council and the Panama Canal Authority signed a memorandum of understanding pledging mutual cooperation.

“Roughly one third of U.S. grain exports travel through the Panama Canal,” said Tom Sleight, USGC president and CEO. “We appreciate the working relationship between the Panama Canal Authority and U.S. grain exporters that make it possible for our producers to reliably meet the world’s increasing demand for food, feed and fuel.”

The sessions in Panama concluded Wednesday with business meetings of the full USGC Board of Delegates and the Board of Directors.



U.S. Tractor, Combine Sales Fell in January

The Association of Equipment Manufacturer's monthly "Flash Report" shows that the sale of all tractors in the U.S. in January 2017 were down 2% compared to the same month last year.

For the month, two-wheel drive smaller tractors (under 40 HP) were up 14% from last year, while 40 & under 100 HP were down 10%. Sales of 2-wheel drive 100+ HP were down 29%, while 4-wheel drive tractors were down 38%.

Combine sales were down 51% for the month.

A total of 10,851 tractors were sold which compares to 11,056 sold thru January 2016 representing a 2% decrease for the year.

For the twelve months, two-wheel drive smaller tractors (under 40 HP) were up 14% over last year, while 40 & under 100 HP are down 10%. Sales of 2-wheel drive 100+ HP are down 1%, while 4-wheel drive tractors were down 38%.

Sales of combines for the year totaled 205 a decrease of 51% in 2016.



AGCO and Hesston by Massey Ferguson Introduce Square Baler Classifications

AGCO Corporation (NYSE:AGCO) and Hesston by Massey Ferguson®, the industry-leading hay equipment brand from AGCO, introduced a standardized classification system for small and large square balers during the 2017 World Ag Expo in Tulare, Calif.  The square baler classification system places balers in Class 1 through Class 8. This new system clearly defines the capabilities of balers in each class and their most appropriate uses so producers will be better able to choose the right baler for their needs.

“Hesston alone offers four models of large square balers ranging from 3’ x 3’ to 4’ x 4’ and six small square balers to produce four sizes from 14” x 18” to 16” x 22”,” explains Shaun Allred, marketing manager for hay and forage at AGCO. “Dairy, beef and equine customers, as well as commercial hay and biomass harvesting operations that harvest, store and ship large quantities of material all have different needs in a baler.

“These classes clearly define the capabilities of the various models from Hesston by Massey Ferguson and Challenger®. The baler classification system will give customers a better understanding of the entire lineup of balers so they can make better purchase decisions,” Allred continues. “This system is similar to the classification system for combines that uses horsepower ranges to rank the size and productivity of combine harvesters.”

Bale density is focus when choosing a baler
The square baler classification system uses rated plunger load to define each of the eight baler classes. Plunger load was chosen because it is the most measurable factor impacting the density of the finished bale.

“Bale density is a key consideration when customers purchase a square baler, because it affects the amount of material in the finished bale; bale weight; stacking, storage and transportation, as well as the productivity and efficiency of the baling process,” Allred points out. “Producers will be able to use this system to choose the baler that fits the crops they harvest, their end-use needs and the baler that optimizes their hay harvesting productivity and efficiency for the best return on investment.”

Rated plunger load is determined by measuring the kilonewtons (kN) of force on the face of the plunger. One kilonewton equals 224.8 pounds of force. Load sensors on the plunger arms measure compression of the plunger arms to provide the plunger load rating. Current AGCO customers are familiar with this number because it is displayed on the in-cab monitor as the Load Setting.

Using experience gained from more than 70 years as an industry-leading manufacturer of equipment for producing and harvesting quality forage, the hay experts at Hesston developed clear descriptions of the most appropriate uses for balers within each class.

“Balers in Class 5 and Class 6 offer our customers the greatest harvesting productivity and efficiency – more material baled per hour,” says Allred. The system also includes plunger load for Class 7 and Class 8.

“We know the hay and forage baling needs of our customers will continue to evolve, just as they have throughout history,” explains Allred. “With a full range of classes in place, customers will be knowledgeable and better prepared as advancements in baler manufacturing technology allow new products to come to market.”

For full details about the square baler classification system and more information about Hesston or Challenger hay equipment, visit your local Hesston by Massey Ferguson or Challenger hay equipment dealer or visit www.hesston.com/therightbaler.