Wednesday February 8 Ag News

PVC Planning Two Events in February
Marcus Urban, President, Platte Valley Cattlemen

Be sure to bring your Valentine for a belated night out Monday, February 19, at Wunderlich’s Catering. The night’s meeting will include Ruth Ready a Commonground member, whom will talk to us about breaking the myths of agriculture. The social hour will begin at 6:00 p.m. with dinner to follow at 7:00 p.m. Thank you to our social hour sponsors Lindsay Farmers Coop and First National Bank for sponsoring our meal.

Additionally, the 2017 Banquet is set for Saturday, February 11, at 5:30 p.m. at River’s Edge Convention Center Ramada Inn. The night’s entertainment is Comedian Michael Joiner. Tickets are on sale now for $35.00 each and are available from any Platte Valley Cattlemen Director.

We hope you and your spouse can join us for both events. Once again the banquet is Saturday, February 11, at River’s Edge Convention Center in Columbus.



Green Plains Reports Fourth Quarter and Full Year 2016 Financial Results
Company Reports 8th Consecutive Year of Profitability

Omaha-based Green Plains Inc. (NASDAQ:GPRE) today announced financial results for the fourth quarter of 2016. Net income attributable to the company was $18.7 million, or $0.47 per diluted share, for the fourth quarter of 2016 compared with net loss of $(3.6) million, or $(0.09) per diluted share, for the same period in 2015. Revenues were $932.1 million for the fourth quarter of 2016 compared with $739.9 million for the same period last year.

"Green Plains finished 2016 on a strong note, generating $74.3 million of segment operating income in the fourth quarter as we successfully integrated the acquisitions of three ethanol plants and Fleischmann's Vinegar Company into our platform," said Todd Becker, president and chief executive officer. "Each of our business units performed well during the quarter and the year, delivering strong results by continuing to focus on executing our long term strategy of diversification and achieving scale in all of our businesses."

With the addition of Fleischmann's Vinegar Company in the fourth quarter of 2016, Green Plains restructured its operating segments. The four segments include: ethanol production, agribusiness and energy services, food and food ingredients and partnership. Please see segment information below for more detail.

During the fourth quarter, Green Plains produced 334.2 million gallons of ethanol compared with 260.8 million gallons for the same period in 2015. The consolidated ethanol crush margin was $81.6 million, or $0.24 per gallon, for the fourth quarter of 2016 compared with $28.9 million, or $0.11 per gallon, for the same period in 2015. The consolidated ethanol crush margin is the ethanol production segment's operating income before depreciation and amortization, which includes corn oil production, plus intercompany storage, transportation and other fees, net of related expenses.

Revenues were $3.4 billion for the year ended Dec. 31, 2016, compared with $3.0 billion for the same period in 2015. Net income attributable to the company for the year ended Dec. 31, 2016, was $10.7 million, or $0.28 per diluted share, compared with net income of $7.1 million, or $0.18 per diluted share, for the same period in 2015.

"U.S. ethanol demand was strong in 2016 and we expect that to continue in 2017. In addition, exports were the strongest we have seen in 5 years. U.S. ethanol remains competitively priced and export demand could be even stronger this year," Becker added. "We expect to see solid infrastructure growth in support of E15 with new locations and more retailers expanding demand for the product. In all, we believe gasoline demand will continue to grow, leading to an improved ethanol margin environment as we approach the beginning of summer driving season in April.

"We invested over $550 million of growth capital in 2016, which we believe positions us to deliver stronger results in the future. We continue to evaluate additional growth opportunities across all of our segments and we look forward to the completion of the Jefferson Energy Terminal joint venture in the second half of this year," stated Becker.

Full Year Highlights
-    On Jan. 1, 2016, Green Plains sold the storage and transportation assets of the Hopewell and Hereford ethanol production facilities to Green Plains Partners for $62.3 million.
-    On June 14, 2016, Green Plains Inc. and Jefferson Gulf Coast Energy Partners, a subsidiary of Fortress Transportation and Infrastructure Investors LLC, announced the formation of a 50/50 joint venture to construct and operate an intermodal export and import fuels terminal at Jefferson's existing Beaumont, Texas terminal. Green Plains will offer its interest in the joint venture to the partnership once commercial development is complete, which is expected during the second half of 2017.
-    In Aug. 2016, Green Plains completed a private offering of $170 million aggregate principal amount of 4.125% convertible senior notes that will mature on Sept. 1, 2022. The net proceeds from the offering were used to finance the recent acquisitions.
-    On Sept. 23, 2016, Green Plains acquired three ethanol plants located in Madison, Ill., Mount Vernon, Ind. and York. Neb. for approximately $235 million in cash plus certain working capital adjustments. Concurrently, the ethanol storage assets were sold to Green Plains Partners LP for $90 million. The plants added 230 million gallons per year of ethanol production capacity.
-    On Oct. 3, 2016, Green Plains acquired SCI Ingredients Holdings, Inc. and its wholly owned subsidiary, Fleischmann's Vinegar Company, Inc., for approximately $258 million, financing the transaction with $135 million of debt and the balance with cash on hand. Fleischmann's Vinegar Company operates as a standalone business.

Results of Operations
Consolidated revenues increased $192.2 million for the three months ended Dec. 31, 2016, compared with the same period in 2015. Revenues were impacted by an increase in ethanol volumes sold and a higher average price realized for ethanol along with an increase in volumes of cattle sold, plus the addition of Fleischmann's Vinegar in the quarter. The increase in revenues were partially offset by lower volumes and average realized prices for grain sold.

Operating income increased $43.3 million for the three months ended Dec. 31, 2016, compared with the same period last year primarily due to increased margins on ethanol production.  Interest expense increased $8.3 million for the three months ended Dec. 31, 2016, compared with the same period last year primarily due to higher average debt outstanding. Income tax expense was $12.2 million for the three months ended Dec. 31, 2016, compared with $4.1 million for the same period in 2015.

Earnings before interest, income taxes, depreciation and amortization (EBITDA) for the fourth quarter of 2016 was $83.5 million compared with $32.5 million for the same period last year.



Net Farm Income Expected to Dip further in 2017; Cash Profit Measure Steadies
USDA Economic Research Service

Farm sector profitability measures are mixed for 2017. A narrow cash-based measure, net cash farm income, is forecast to rise by $1.6 billion to $93.5 billion from the 2016 value, an increase of 1.8 percent. In contrast, net farm income is forecast to decline by 8.7 percent to $62.3 billion, the fourth consecutive year of declines after reaching a record high in 2013. The difference between the two profitability measures is expected to increase in 2017 largely due to an additional $8.2 billion in cash receipts from the sale of crop inventories. The net cash farm income measure counts those sales as part of current-year income while the net farm income measure counted the value of those inventories as part of prior year income. If realized, net farm income in 2017 will be the lowest since 2002, in inflation-adjusted terms.

Overall, cash receipts are forecast to remain largely unchanged, with large offsetting changes in dairy receipts—up by $4.7 billion, or 13.7 percent, based on forecast higher prices—and cattle/calf receipts, which are forecast down by $4.5 billion (6.7 percent) based on anticipated lower prices. The forecast for crops is mostly unchanged, with wheat receipts changing most in absolute and percentage terms, falling $1.4 billion (16.6 percent) relative to 2016. Direct government payments are down by $0.5 billion (4.0 percent) to $12.5 billion.

The 2017 forecast for average net cash income for farm businesses is up by 2.2 percent, with the largest increases for farms specializing in cotton (up 34 percent) and dairy (up 47 percent). These strong gains are offset by a forecast drop in net cash farm income for cattle/calf operations (down 12.9 percent).

After declining for 2 consecutive years, the forecast for 2017 total production expenses is flat, with farm-origin expenses (including feed, livestock, and seed) down 2.6 percent as a group. Manufactured input expenses were more mixed, with fertilizer group expenditures forecast down by 9.1 percent and fuel/oil expenses up by 13.1 percent. Labor costs are also forecast to rise 5.4 percent in 2017.

Farm asset values are forecast to decline by 1.1 percent in 2017, and farm debt is forecast to increase by 5.2 percent. Farm sector equity, the net measure of assets and debt, is forecast down by $51.2 billion (2.1 percent) in 2017. The decline in assets reflects a 0.3-percent drop in the value of farm real estate, as well as declines in the remaining categories. The rise in farm debt is driven by higher real estate debt (up 7.3 percent). Financial liquidity measures, including working capital, are forecast to weaken in 2017, as are solvency measures such as the debt-to-asset ratio. The debt-to-asset measure is now above its average over the previous ten years.

Median Income of Farm Operator Households Expected to Rise 3 Percent in 2017
The median income of U.S. farm households increased steadily over 2010-14, reaching an estimated $81,637 in 2014. After dipping in 2015 to $76,735, median household income is forecast to rise over the next 2 years, reaching an expected $79,733 in 2017. Median farm income earned by farm households is estimated to be -$765 in 2015 and forecast to drop to -$1,328 in 2016 and -1,437 in 2017. In recent years, slightly more than half of farm households have lost money on their farming operations each year; most of these households earn positive off-farm income—median off-farm income is forecast to increase 6.7 percent over the next 2 years, from $67,500 in 2015 to $72,022 in 2017. (Because farm and off-farm income are not distributed identically for every farm, median total income will generally not equal the sum of median off-farm and median farm income.)



Farmer Volunteers Focus on Engaging with Consumers at Winter Meeting

Members of the National Corn Growers Association's Consumer Engagement Action Team met in Savannah, Georgia last week to review programs focused on the organization's strategic goals associated with strengthening consumer trust. The team, which was formed in October of 2016 to better align and focus with the goals of the new strategic plan, delved deeply into ongoing consumer engagement efforts while exploring future opportunities.

At the meeting, the team took a thoughtful look at pertinent sections of NCGA's Policy Book, examining the relevance of current language to the association's public policy work. They also took a deep dive into the ongoing activities of and budget for consumer engagement programs, such as the Corn Reputation project, CommonGround and the U.S. Farmers and Ranchers Alliance.

"With our new strategic focus, the importance of proactively engaging with consumers to foster understanding and mutual trust has come to the forefront as a key to ensuring future demand," said Patty Mann, who serves as chairwoman of the team. "Our farm families have so many challenges right now, whether its farm economics or regulatory intrusion, so we want to do all we can to help them by engaging as trusted advocates for agriculture with the ability to build a brighter future."

The team also spoke with several outside groups, such as Farm Journal Foundation and Bason Research, to explore the broad spectrum of ongoing activities and research relevant to consumer communications about agriculture. Through these presentation, members had the opportunity to view a wide range of activities, including those focused on efforts to explore ag on coastal college campuses.

During the team's visit, the Georgia Corn Growers Association graciously hosted them to a low country boil at the Georgia Coastal Botanical Gardens. Additionally, GCGA Executive Director Dr. Dewey Lee arranged for a series of tours for the group to help them explore consumer outreach activities in that state focused on highlighting the safety around oyster farming and expanding knowledge of local marine ecology.

In addition to Mann, the Grower Services Action Team includes Vice Chairman Ted Mottaz, Corn Board Liaison Tom Haag, and members, Debbie Borg, Dan Cole, Ralph Kauffman, David Merrell, Gerald Mulder, Leah Pottinger, Allen Rowland and state affiliate staff representative Shannon Textor of Iowa. The next meeting will take place in Washington in July.



WATER QUALITY EFFORTS TOUTED TO IOWA LEGISLATURE

Iowa Secretary of Agriculture Bill Northey, Iowa DNR Director Chuck Gipp and Iowa State University College of Agriculture and Life Sciences Associate Dean Dr. John Lawrence today highlighted coordination and scaling-up of water quality efforts in presentations before House and Senate Committees in the Iowa Legislature.

Northey also provided legislators an Iowa Water Quality Initiative scale-up plan that outlines the water quality efforts that will be prioritized as additional funding is available to the Iowa Department of Agriculture and Land Stewardship.  The scale-up plan can be found at www.IowaAgriculture.gov under “Hot Topics” or at http://www.cleanwateriowa.org/news-and-blog.aspx.

“The Governor and legislators have been very supportive of the Water Quality Initiative to this point and remain committed of identifying a growing, ongoing source of funding to expand efforts.  This scale-up plan identifies how our Department will prioritize additional funding on scientifically proven practices around land use, edge-of-field practices, cover crops and nutrient management to achieve our water quality goals,” Northey said.

Lawrence outlined research accomplishments of the legislatively funded Iowa Nutrient Research Center at Iowa State University. “Over the past four years, we've had more than 40 research collaborations involving nearly 80 scientists across the three Regents universities and including IDALS, DNR and USDA,” he said.  “The work is helping us better understand nutrient movement across the landscape, be more precise with conservation practices and address barriers to the use of cover crops.”

Lawrence also shared ideas developed by Iowa State water quality researchers on how the state of Iowa might consider increasing the implementation of water quality and soil conservation practices.

The Iowa Water Quality Initiative was established in 2013 to help implement the Nutrient Reduction Strategy, which is a science and technology based approach to achieving a 45 percent reduction in nitrogen and phosphorus losses to our waters.  The strategy brings together both point sources, such as municipal wastewater treatment plants and industrial facilities, and nonpoint sources, including farm fields and urban stormwater runoff, to address these issues.

The Initiative seeks to harness the collective ability of both private and public resources and organizations to deliver a clear and consistent message to stakeholders to reduce nutrient loss and improve water quality.

The initiative is seeing some exciting results. Last fall Northey announced that 1,800 farmers committed $3.8 million in cost share funds to install nutrient reduction practices.  The practices that were eligible for this funding are cover crops, no-till or strip till, or using a nitrification inhibitor when applying fall fertilizer. Participants include 980 farmers using a practice for the first time and more than 830 past users that are trying cover crops again and are receiving a reduced-rate of cost share.  Farmers using cost-share funding are providing an estimated $6 million in their own funding to adopt these water quality practices.

A total of 45 demonstration projects are currently located across the state to help implement and demonstrate water quality practices.  This includes 16 targeted watershed projects, 7 projects focused on expanding the use and innovative delivery of water quality practices and 22 urban water quality demonstration projects.  More than 150 organizations are participating in these projects.  These partners will provide $25.28 million dollars to go with the $16.09 million in state funding going to these projects.

More than $325 million in state and federal funds have been directed to programs with water quality benefits in Iowa last year. This total does not include the cost-share amount that farmers pay to match state and federal programs and funds spent to build practices built without government assistance.

More information about the initiative can be found at www.CleanWaterIowa.org.



Strong Finish for 2016 Red Meat Exports; New Volume Record for Pork

U.S. pork and beef exports wrapped up an excellent 2016 performance with very strong December results, according to statistics released by USDA and compiled by the U.S. Meat Export Federation (USMEF).

Pork export volume reached a record 2.31 million metric tons (mt) in 2016, up 8 percent year-over-year and 2 percent above the previous high in 2012. Export value increased 7 percent from a year ago to $5.94 billion. December pork exports totaled 222,635 mt, up 18 percent year-over-year, valued at $564.2 million, up 20 percent.

Exports accounted for 25.8 percent of total 2016 pork production and 21.5 percent for muscle cuts – up from 24.2 percent and 20.8 percent, respectively, in 2015. December ratios were 28 percent for total production and 23 percent for muscle cuts only – up significantly from December 2015. Export value per head slaughtered averaged $50.20 in 2016, up 4 percent from the previous year. The December average was $56.06, up 24 percent.

Beef exports increased 11 percent in volume (1.19 million mt) and 1 percent in value ($6.34 billion) from 2015. December exports totaled 116,847 mt, up 24 percent year-over-year. This was the largest monthly volume since July 2013 and the largest ever for December. Export value was $619.1 million in December, up 22 percent.

Exports accounted for 13.7 percent of total beef production in 2016 and 10.5 percent for muscle cuts – up from 13.1 percent and 10 percent, respectively, in 2015. December exports accounted for 15.6 percent of total December beef production and 12.1 percent for muscle cuts only – each up more than 2 percentage points from a year ago and the highest since 2011. Export value per head of fed slaughter averaged $262.17, down 6 percent from 2015, but the December average was $301.97 – up 14 percent and the highest in nearly two years.

Pork to Mexico sets fifth straight volume record; China/Hong Kong also record-large
A remarkable second half pushed 2016 pork export volume to Mexico to its fifth consecutive record at 730,316 mt – breaking the previous record by 2 percent. Export value to Mexico totaled $1.36 billion, up 7 percent year-over-year and the second-highest on record, trailing only the $1.56 billion mark reached in 2014.

“At this time of record-large pork production, it would be hard to overstate the importance of Mexican demand to the U.S. industry,” said Philip Seng, USMEF President and CEO. “This is especially true for hams, as we are locked out of Russia – once a large destination for U.S. hams – and China’s demand for imported hams has moderated in recent months. So now more than ever, we need strong demand from our key customers in Mexico, and they have responded with extraordinary results. December exports to Mexico accounted for nearly $16 per head, and that’s absolutely critical to the entire U.S. pork supply chain.”

Though down from the high levels seen earlier in the year, December pork exports to China/Hong Kong were still up 40 percent year-over-year in volume (47,242 mt) and 42 percent higher in value ($96 million). For the full year, exports to China/Hong set a new volume record of 544,943 mt (up 61 percent) and broke the $1 billion mark for the first time ($1.07 billion, up 53 percent).

Other 2016 highlights for U.S. pork exports include:
-    Japan remained the leading value destination for U.S. pork, though exports fell 5 percent in volume (387,712 mt) and 2 percent in value ($1.56 billion) compared to 2015. However, chilled exports to Japan set a new record of 218,211 mt, up 8 percent.
-    Led by a record performance in Central America and a fourth-quarter surge in Colombia and Chile, exports to the Central/South America region increased 11 percent in volume (135,954 mt) and 9 percent in value ($334.5 million).
-    Pork shipments increased to both Australia and New Zealand, as export volume to Oceania reached 69,963 mt (up 10 percent) valued at $197.3 million (up 3 percent).
-    Exports to the Dominican Republic set another record in 2016, topping the previous year’s totals by 10 percent in volume (25,591 mt) and 6 percent in value ($56.4 million).
-    Fueled by increases in China/Hong Kong and Canada and steady exports to Mexico, pork variety meat exports jumped 20 percent in volume to 523,199 mt and 24 percent in value to $999 million – just short of the record levels reached in 2014.

Asian markets drive strong beef export growth
Driven by strong demand for higher-value chilled cuts, beef exports achieved new value records in South Korea and Taiwan in 2016, and rebounded strongly in Japan.

In Korea, December beef exports soared by 81 percent in volume (20,333 mt) and 88 percent in value ($130 million) from a year ago, capping a remarkable year in which exports totaled 179,280 mt (up 42 percent) valued at $1.06 billion – up 31 percent from a year ago and breaking the previous value record by more than 20 percent. Korea’s per capita beef consumption set a new record in 2016 of 34 pounds (carcass weight) – so the U.S. not only gained market share, but also capitalized on the market’s overall growth.

Beef exports to Taiwan were also strong in December, with export value ($43.3 million) hitting its highest level ever. Full-year exports to Taiwan were up 25 percent in volume to 44,053 mt and 14 percent in value to $362.8 million.

2016 exports to Japan were the largest of the post-BSE era at 258,653 mt, up 26 percent year-over-year. Export value totaled $1.51 billion, up 18 percent. Chilled beef exports to Japan totaled 112,334 mt, up 44 percent from 2015.

“In addition to the strength of the U.S. dollar, U.S. beef overcame other severe challenges in these north Asian markets and achieved remarkable results,” Seng said. “Despite facing higher tariff rates in Japan compared to Australian beef, U.S. beef displaced its competition and won back significant market share. And the investment the U.S. industry made to rebuild consumer confidence in Korea is paying tremendous dividends, especially in the retail sector. We’re seeing U.S. beef featured regularly by retailers who were once reluctant to carry the product.”

Other 2016 highlights for U.S. beef included:
-    Beef exports to Mexico increased 7 percent year-over-year in volume to 242,373 mt, though value fell 11 percent to $974.9 million. While challenged by a weak peso, Mexico remains a key destination for muscle cuts such as shoulder clods and rounds, as well as for beef variety meat.
-    Led by strong growth in Chile and a doubling of exports to Colombia, beef exports to South America increased 6 percent in volume to 22,810 mt, valued at $92.7 million (down 2 percent). The region should see further growth in 2017 with the reopening of Brazil.
-    Exports to Central America were up 7 percent in volume (12,745 mt) with top market Guatemala up 1 percent and exports to Honduras nearly doubling. Export value was $71.8 million, up 1 percent.
-    Fueled by a resurgence in Indonesia and solid growth in Vietnam, beef exports to the ASEAN region were up 41 percent in volume (29,920 mt) and 15 percent in value ($156.9 million). Indonesia expanded access for U.S. beef in early August. Despite being closed to many products through the first seven months of the year, U.S. exports to Indonesia set a new value record of $39.4 million.
-    Beef variety meat exports increased 10 percent in volume (341,433 mt) and 4 percent in value ($902.2 million) in 2016. Liver exports increased 12 percent to 81,727 and reached a broader range of markets. While liver exports to Egypt – the largest destination for U.S. livers – increased 4 percent, further growth was achieved in Central and South America and with the reopening of South Africa to U.S. beef.

Lamb muscle cut exports continue upward trend
Although U.S. lamb exports were down in 2016, this was largely due to a sharp decline in variety meat exports. While total exports fell 11 percent in volume (8,248 mt) and 4 percent in value ($18.4 million), muscle cut exports increased 26 percent (2,239 mt) and 16 percent ($12.3 million) respectively. Leading market Mexico followed a similar pattern, as variety meat exports declined significantly, but muscle cut exports increased 9 percent in volume (965 mt) and 1 percent in value ($2.8 million). Emerging markets showing promise in 2016 included Bermuda, the Philippines, Vietnam and the United Arab Emirates.



UAN Fertilizers Higher Once Again

A majority of retail fertilizer prices continue to push higher, according to fertilizer prices tracked by DTN for the last week of January 2017. This marks the second consecutive week prices have been significantly higher, although prices have been trending higher much longer.

All but one of the eight major fertilizers were higher although only two were higher by any considerable amount. UAN28 was 8% higher compared to a month earlier while UAN32 was 6% more expensive. UAN28 had an average price of $236/ton while UAN32 was at $270/ton.

The remaining five fertilizers were slightly higher but not by a significant amount. MAP had an average price of $448/ton, potash $329/ton, urea $353/ton, 10-34-0 $439/ton and anhydrous $482/ton.

One lone fertilizer is slightly lower, but this move to the low side was not that notable. DAP had an average price of $430/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.39/lb.N, anhydrous $0.29/lb.N, UAN28 $0.42/lb.N and UAN32 $0.42/lb.N.

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

The one fertilizer no longer down double-digits is urea, which is now down 5%. UAN28 is now 10% less expensive while MAP is 11% lower. Both DAP and UAN32 are 12% lower, anhydrous is 13% less expensive, potash is 14% less expensive and 10-34-0 is 20% lower compared to a year prior.




EIA: Ethanol Stockpiles Build

The U.S. Energy Information Administration reported Wednesday total ethanol stockpiles rose last week for the fifth-consecutive week to a nine-month high even as blending demand surged to a six-week high. Ethanol plant production edged off a record high.

EIA's weekly petroleum status report showed domestic fuel ethanol inventories increased last week by 200,000 barrels to 22.1 million bbl. It is the highest level since the week-ended April 29, 2016, although supply is down 900,000 bbl or 3.8% against the comparable week a year ago.

The inventory building coincides with strong domestic plant production, which edged down 6,000 barrels per day to 1.055 million bpd from a record high during the week-ended Feb. 3. For the four weeks ended Feb. 3, ethanol production averaged 1.055 bpd, 87,000 bpd or 9% above the output rate during the corresponding period in 2016.

Net refiner and blender inputs of ethanol- a measure for demand- surged 38,000 bpd or 4.5% to 875,000 bpd during the week-ended Feb. 3. It is the highest blend rate since the week-ended Dec. 23. On a year-over-year basis, refiner and blender inputs are up 17,000 bpd or 2%, although the four-week average at 846,000 bpd is flat, down 2,000 bpd, against the prior year.



USGC, RFA, Growth Energy Urge Administration To Address China Trade Tariffs On Ethanol, DDGS

In a letter to President Donald Trump this week, the U.S. Grains Council (USGC), Renewable Fuels Association (RFA) and Growth Energy are asking for help "in urgently addressing China’s recent implementation of protectionist trade barriers that are shutting out U.S. exports of ethanol and distillers dried grains (DDGS)." Specifically, the three groups are asking the incoming U.S. Trade Representative to put China’s recent actions near the top of the administration’s China trade agenda.

In September 2016, after a nine-month investigation, China imposed a preliminary anti-dumping duty of 33.8 percent against U.S. DDGS and a countervailing duty of 10-10.7 percent. In a final ruling last month, China increased its DDGS anti-dumping duty to 42.2-53.7 percent and its DDGS countervailing duty to 11.2-12 percent. Additionally, the tariffs on U.S. ethanol have increased from 5 percent to 30-40 percent.

"It is widely believed that raising these tariffs will put an immediate end to ethanol exports to China, erasing the significant progress our industry made in developing that market over the past several years," wrote the groups to Trump. "[W]e respectfully ask that reform of these punitive ethanol tariff rates be included in any potential upcoming trade negotiations with China."

China has grown to be a top export market for U.S. DDGS. In 2015, the country imported 6.5 million metric tons of the ethanol co-product, worth $1.6 billion and accounting for 51 percent of total U.S. DDGS exports. By the end of 2016, China had become the U.S. ethanol industry’s third-largest export market, receiving nearly 20 percent of total exports. Nearly 200 million gallons of ethanol worth more than $300 million were shipped to China last year.

As the letter explained, China’s recent actions have contributed to lower prices for ethanol and DDGS. Ethanol prices have fallen 15 percent since mid-December 2016 while DDGS prices have fallen steadily since the summer of 2016. DDGS prices are currently approximately 40 percent lower than in June 2016.

“President Trump’s message of ‘America First’ with regard to trade policy resonated with the U.S. ethanol industry and farmers across the country,” said RFA President and CEO Bob Dinneen. “China’s growing demand for protein and renewable fuel has triggered significant investment to meet their needs. The sudden and unnecessary reversal in China’s trade policy, and the barriers to U.S. imports they have imposed, have jeopardized our industry and penalized Chinese consumers. They need to end. We look forward to working with the President and his Administration to restore free and fair trade to the betterment of both.”

“The U.S. Grains Council has worked for 35 years in China to help promote export of U.S. grains and their products and, as importantly, the development of the Chinese agriculture sector. We value these partnerships, however several recent moves in China policy are concerning,” said Tom Sleight, USGC president and CEO. “We are working with our industry and will work with the Trump Administration to get our relationship back on an even and fair footing.”

“Growth Energy is extremely disappointed with the decision by China to subject U.S. DDGS to anti-dumping and countervailing duties,” said Growth Energy CEO, Emily Skor. “While DDGS sales into other markets have partially offset the reduction in U.S. shipments to China, the economic loss to the industry and U.S. farmers is significant and underscores the uncertainty of China’s reliability as a trade partner. We will continue working with all parties on this important relationship and look forward to the opportunity of revisiting this decision in the future.”



FARM Environmental Stewardship Releases New Materials in Preparation for Launch

The Farmers Assuring Responsible Management (FARM) Environmental Stewardship Program is releasing educational materials for those interested in utilizing the new FARM Environmental Stewardship (ES) module, launching Feb. 13. FARM Environmental Stewardship is a voluntary tool that provides a comprehensive estimate of the greenhouse gas (GHG) emissions and energy use associated with dairy farming.

The tool is based on a life-cycle assessment (LCA) of fluid milk conducted by the Applied Sustainability Center at the University of Arkansas, incorporating data from more than 500 dairy farms across the United States. The FARM ES module asks a limited set of questions to assess a farm’s carbon and energy footprint – reducing the burden on farmers while still providing reliable, statistically robust estimates.

U.S. dairy farmers have a long-standing history of environmental stewardship. As dairy production has become more efficient, it requires fewer resources to produce the same amount of milk. Compared to 70 years ago, producing a gallon of milk uses 65 percent less water, requires 90 percent less land and has a 63 percent smaller carbon footprint. According to a study by the United Nations Food and Agriculture Organization, dairy farming in North America has the lowest greenhouse gas emissions intensity of any region in the world.

The FARM Environmental Stewardship (ES) module helps dairy companies capture and explain those improvements, and helps dairy farmers identify opportunities for continued improvements that benefit their farm’s bottom line. Cooperatives wishing to participate in the program can opt-in through the existing FARM database, which will allow FARM evaluators to see the assessment in the existing web and mobile data entry applications. FARM will also launch a random sampling protocol for those cooperatives wishing to participate in the program without having to do an assessment on each farm, while still receiving a statistically robust randomized result for their milk supply chain.



NMPF Opposes Proposal to Reduce Dairy Offerings in WIC Program
The National Milk Producers Federation pushed back against a proposal last month from the National Academies of Science (NAS) to reduce the amount of dairy foods offered through the federal assistance WIC program. In criticizing the recommendation, NMPF noted that dairy – an irreplaceable source of nutrition for Americans – is already widely under-consumed among WIC recipients.

Congress requested that the NAS review the WIC food offerings to provide support for aligning the WIC basket with those foods recommended by the Dietary Guidelines for Americans.  NMPF noted that milk, cheese and yogurt are “the No. 1 source of nine essential nutrients in children’s diets: protein, calcium, phosphorus, magnesium, potassium, vitamins A, B12, D and riboflavin.

The reason dairy foods are included in the WIC package is that no other food source can deliver such a wide range of vital nutrients to mothers and young children. Cutting back on dairy is a step in the wrong direction,” said Jim Mulhern, President and CEO of NMPF, who noted that milk has always been central to the WIC program’s goal of providing low-income participants with foods and nutrients they typically under-consume.

The NAS report did contain some pro-dairy provisions, such as that yogurt should be easier for women obtain through the WIC program. The NAS recommendations will now be reviewed by USDA.  NMPF will work with the International Dairy Foods Association to highlight the value to all Americans of dairy foods.



Implanting Calves, Increasing Gain

With nearly 70 years in the business, Graham Angus Farm in Georgia is known for its quality Angus genetics. The farm runs a commercial cattle operation and uses every edge to improve production and wean more pounds. Kip McMillan, cattle manager, implemented an implant program several years ago and continues to see value and return on his investment.

“The extra gain from using implants translates to extra dollars,” McMillan said. “With an average $2 investment per implant, we can see an added 25 pounds in weight on cattle, which easily brings an extra $50 per head. I feel comfortable that implants are a very solid investment.”

Calving at Graham Angus Farm runs from January through early March. At 45 days old, calves are tagged, tattooed and banded and receive their first round of vaccinations. At this time, calves are implanted with SYNOVEX® C. At weaning when calves are 8 months old, steers are implanted with SYNOVEX S to boost gain.

“Our steers are just as heavy as the bull calves, and I think the implants are making up for that,” McMillan said.

Implants change the rate at which animals deposit muscle, and it makes them more efficient in dietary protein utilization, transferring protein to muscle, explains Daniel Scruggs, DVM, managing veterinarian with Zoetis.

“When calves are on the cow and nursing, gaining 1.5 to 2 pounds a day, you can anticipate you’ll have between 15 and 22 pounds additional weaning weights on the calves, if they’ve been implanted,” Dr. Scruggs said. “Calves receive a lower dose implant because of their size, but like any implant, the magnitude of increased gain is improved with better nutrition.”

Calves are mostly nursing, so implant performance is improved with better milking cows. Creep feed or other supplemental nutrition can improve calf implant performance in less optimally milking cows. If calves aren’t receiving proper nutrition, the benefit of the implant will be reduced.

There is a commonly held misconception of lower prices for implanted cattle.

“Our cattle are always implanted and top every sale we go to,” McMillan said. “The gain you see is going to offset any premium you might receive by not being implanted and selling ‘natural’ calves. Implants are an inexpensive investment and offer a great return. I wouldn’t recommend implanting to other cattlemen if I wasn’t already doing it myself."



AGCO Introduces High Speed White Planters 9800VE Series Planters

AGCO Corporation (NYSE:AGCO), a worldwide manufacturer and distributor of agricultural equipment, is bringing to market White Planters™ 9800VE Series planters equipped with SpeedTube® seed tubes from Precision Planting®. The planter will be introduced and on display at the AGCO Exhibit, Lots 7801 and 7823 during the 2017 National Farm Machinery Show in Louisville, Ky.

“To achieve the best yields in corn, producers focus on getting as many acres as possible planted during that very narrow, five-to-10-day ‘optimum planting window’,” says Larry Kuster, senior product specialist for Seeding and Tillage at AGCO. “With SpeedTube on White Planters 9800VE Series planters, they can now achieve precise seed placement of corn at speeds nearly double traditional operating speeds.”

With SpeedTube on White Planters 9800VE Series planters, producers can now achieve precise seed placement of corn at speeds nearly double traditional operating speeds.

In field tests, the 9800VE Series planter with SpeedTube produced the same consistent seed spacing at ground speeds less than four miles per hour, as it did when planting at more than 9.8 miles per hour. That means more acres planted per day and a better chance of hitting the narrow five-to-10-day ‘optimum planting window’ important for top yields.

With traditionally designed seed tubes on planters, high speeds create a ricochet effect as seed travels down the tube, causing poor seed spacing in the furrow. SpeedTube controls the seed all the way from the meter to the furrow. Feeder wheels at the top take control of the seed from the seed meter disk and pull it into a flighted belt that places it in the bottom of the seed trench. The belt speed increases or decreases with planter speed and seeding rates, to ensure the desired seed placement.

The 9800VE Series planters with SpeedTube are the latest outcome from AGCO’s application of planting technology from Precision Planting.

“As more and more producers strive to cover more acres in less time and manage inputs on a prescription basis, AGCO is delivering the equipment, technology and crop production expertise our customers need,” Kuster adds. “White Planters 9800VE Series planters with SpeedTube components are just one example among many recent additions to AGCO’s full-line offering.”

White Planters 9800VE Series planters were introduced in early 2016 and take the renowned seed placement accuracy of White Planters to an even higher level, exemplifying AGCO’s commitment to helping producers improve yields.

The VE Series planters feature the vSet® seed meter, vDrive® electronic drive system, optional automated DeltaForce® hydraulic downforce plus fully integrated 20/20 SeedSense® monitoring so the operator can make needed adjustments to seed precisely, maintain depth, avoid compaction and troubleshoot mechanical problems. FieldView® data collection is available as a factory-installed option and offers real-time, high definition mapping and data collection.

As with other planters in the series, the White Planters 9800VE Series planters may be equipped to fit the needs of nearly any production system.