Wednesday March 22 Ag News

 Ethanol Shines In Nebraska Agriculture

Recent reports indicate a strong future for ethanol production in 2017. With added capacity and a diversified platform, ethanol is a bright spot in a bleak agriculture forecast.

An impact study by University of Nebraska-Lincoln economists in 2015 revealed Nebraska’s ethanol production capacity growth between 1995 and 2014 was tenfold with a $5 billion annual economic impact. Just a few years later, that growth continues.

With an operating capacity of approximately 2.2 billion gallons of ethanol, Nebraska ethanol producers used 31 percent of the state’s corn crop in 2016. This operating capacity is an increase of five percent compared to 2015. Production is expected to rise in 2017 with a projected record year for ethanol.

“In a challenging time of agriculture finances, the ethanol sector continues to be a strong market for corn growers,” said Todd Sneller, Nebraska Ethanol Board administrator. “This increase in Nebraska ethanol production shows that more corn is being purchased locally and turned into not only ethanol, but a number of valuable co-products.”

In 2016, Nebraska’s ethanol industry produced more than 7.2 million tons of distillers feeds and 268,000 tons of corn oil.  Additional co-products include corn syrup, dry starch and specialty livestock feeds.

“We see what economists describe as an economic ‘bounce’ when we take advantage of the added value as grain is converted to food, fuel, fiber and bio-products,” Sneller said. “There is enormous potential for biofuels to continue to strengthen the economic health of Nebraska.”

In addition to purchasing more corn, several ethanol producers have invested in new technology to increase capacity and product diversification. Sneller noted approximately $150 million in new investments to local ethanol plants like Siouxland Ethanol in Jackson, Flints Hills Resources in Fairmont, E-Energy in Adams, and Archer Daniels Midland (ADM) in Columbus.

“Plants in Lexington and Ravenna that were recently bought by Nebraska companies are running at capacity and investing in expanded capacity,” Sneller said. “These expansions and new co-products mean additional jobs and income in Nebraska.”

As the second largest producer in the United States, Nebraska’s ethanol production makes a global impact. According to the U.S. Energy Information Administration (EIA), the United States exported more than 1 billion gallons of ethanol in 2016, an increase of 26 percent compared to 2015. EIA estimates net exports of ethanol to rise another six percent in 2017.

“We continue to see huge demand for ethanol in Asian and South American markets,” Sneller said. “The robust ethanol export trade means we expect another record-level year in ethanol production.”



 NEBRASKA PART OF NATIONAL RESEARCH INITIATIVE TO IMPROVE COVER CROPS

The University of Nebraska-Lincoln is part of a $6.6 million research initiative to promote soil health through the development and adoption of new cover crops across the United States. The initiative was launched March 22 by the Foundation for Food and Agriculture Research and The Samuel Roberts Noble Foundation, which is the lead institution. 

The initiative, made possible by a $2.2 million grant from FFAR, will bring together representatives from the seed industry, the U.S. Department of Agriculture-Agricultural Research Service and Natural Resources Conservation Service, a producer network and multiple land-grant universities including Nebraska.

Cover crop is a term applied to a number of plant species that farmers, ranchers and landowners may plant to help manage soil erosion and fertility, preserve moisture content, and control weeds and diseases. The focus of the initiative will be to identify cover crop germplasm with the greatest potential to improve soil health across a broad geographic area. Germplasm improvement will focus on species within three groups: small grains (wheat, rye, oat and triticale), annual legumes (hairy vetch, winter peas and clovers), and brassicas (turnips, radishes, kale and mustards).

"Once The Noble Foundation identifies superior germplasm of these cover crop species, the role of the trial site collaborators is to test their regional adaptation," said John Guretzky, associate professor in the Department of Agronomy and Horticulture and co-leader of the project. "We'll be evaluating the germplasm to see how it performs in different environments."

Nebraska will be the Northern Plains trial site for the cover crop evaluations. Trials will also be conducted in Maryland for the Northeast, North Carolina for the Southeast, Oklahoma for the Southern Plains and Missouri for the Midwest.

"These sites have experience in cover crop evaluation and will allow us to effectively screen each species and variety for its effectiveness, its role with other crop mixes and its range of adaptation," said Twain Butler, Noble Foundation research agronomist and project manager. "These sites will also illustrate the use and effectiveness of cover crops for the purpose of sharing our findings with agricultural producers."

The project is not limited to traditional breeding and evaluation. Engaging both producers and industry, researchers will also seek to identify and introduce key traits that can improve crop performance and soil enhancement. Additionally, scientists at the Noble Foundation will utilize advanced breeding techniques – which have traditionally been limited in application to high-value, row-crops – to bring new and value-added characteristics to cover crops.

The short-term goals of the research are to identify the best cover crop species and varieties currently available through evaluation and screening, promote them to farmers and ranchers, and increase effective options within the marketplace.

"I expect that this project will generate a lot of performance data for producers, which should lead to better adoption of the new cover crop varieties," Guretzky said.

Researchers from this project will share results with the public through national meetings and peer-reviewed publications. Certain outcomes, including molecular markers, will be made available through publication and publicly accessible databases.



Michael Sieh, Stanton Community Schools Superintendent is the Featured Speaker at the NeFU District 7 Spring Meeting in Norfolk

In response to the growing new coalition “Nebraskans United for Property Tax Reform and Education” comprised of 21 agricultural and educational organizations, Michael Sieh, Stanton Community Schools Superintendent will be the featured speaker at the Nebraska Farmers Union (NeFU) spring District 7 meeting.  The public is invited to participate in the 6:00 pm meeting at Valentino’s, 1025 S. 13th Street, Norfolk Thursday, March 30th.  The “eat and meet” meeting will begin after the “on your own” supper.

“We are really excited to formalize and grow the relationship and conversation between agriculture and education.  Superintendent Sieh was born and raised on a northeast Nebraska farm, and has been working with farmers in rural school districts for many years.  We welcome the opportunity to share information and perspectives between our farmers and Superintendent Sieh.  We need to work together because we share common interests and goals,” said NeFU President John Hansen.

The new coalition issued a joint statement that included:  “As a coalition representing homeowners, business owners, farmers and ranchers, taxpayers, and groups across the spectrum of public education, we believe the Nebraska Legislature must work to provide adequate and sustainable funding for high quality education and do so in a way that reduces the over-reliance on local property taxes to fund education.”

For more information, call Art Tanderup (402) 278-0952 on his cell or (402) 887-1396 at home. 



NE Farmers Union District 7 Spring Meeting

Valentino’s, 1025 S. 13th St, Norfolk, NE 
Thursday, March 30, 2017, 6:00 pm buffet supper on own with meeting to follow.
· District 7 Director’s Report:  Martin Kleinschmit
· NFU Convention, state & national issues:  John Hansen
· Featured speaker Michael  J. Sieh, Superintendent for Stanton
Community Schools will share information and perspective with us on property tax relief and adequate funding for education.
Bring a friend, neighbor or family member.
For more info, call Art Tanderup (402) 278-0952 or (402) 887-1396.



Nebraska Brand Committee Announces New Payment Methods

The Nebraska Brand Committee has announced the acceptance of five types of payment methods when the new technology program rolls out in July, 2017.

“With the introduction of the new technology program this July, producers are going to have more options than they have ever had to process payments,” said John Widdowson, Vice Chair of the Nebraska Brand Committee and Chair of NBC’s Technology Working Group.

Currently the Nebraska Brand Committee accepts two forms of payments, cash and check.  With the transition from paper to electronic the Committee in July, will accept cash, check, ACH, credit/debit card on file, and credit/debit card swiped at time of inspection.

“Our priority is to increase the efficiency of inspections for our producers, by offering these additional options we are hoping to increase the value of the service we are providing,” said Widdowson. 

All payment options will be available for producers this coming July 2017 until July 2018.

“We will offer the five different payments method until July 2018, after that date, we will not accept cash as a payment method,” said Bill Bunce, Executive Director of NBC.  “Producers will have over a year to determine what other payment method(s) fits their operation, and what their preference is, but cash will no longer be an option starting July of 2018.”

“Producer security will be of the utmost importance, and Nebraska Interactive currently works with over one hundred partners in state and local government in the state of Nebraska,” said Widdowson referring to the technology company that is developing and hosting the electronic program for NBC.  “They have the utmost security procedures and expertise in place which we will be utilizing with the program.”

The Nebraska Brand Committee was created by the Legislature in 1941 to inspect cattle and investigate missing and/or stolen cattle.  It is a self-supporting cash fund agency.  Its operating fund comes solely from fees collected for brand recording, brand inspections, and registered feedyards. 



Statement by Steve Nelson on behalf of the Nebraska Agriculture Leaders Working Group Regarding Tax Reform Proposal

“While we understand the give and take of the legislative process, we are very disappointed in the tax reform proposal being considered by the Legislature’s Revenue Committee. Throughout the legislative hearing process, the Agriculture Leaders Working Group testified before the Revenue Committee on numerous bills that would provide a pathway to provide meaningful property tax relief for Nebraska farmers and ranchers, and all Nebraska property taxpayers.”

“Unfortunately, during National Ag Week, a tax reform proposal is being considered that would do the exact opposite of what farmers, ranchers, and other Nebraskans are seeking in tax reform. This proposal would intentionally divert dollars currently used to provide property tax relief and repurpose them to fund income tax cuts.”

“The message from Nebraskans has been clear. Property tax relief is the priority and it must be meaningful. Taking money away from property tax relief for income tax cuts will not do that. Should the Legislature go this direction it will be viewed by Nebraska taxpayers as a deliberate decision to increase the property tax burden on Nebraskans.”

“That said, we will continue to work with the members of the Revenue Committee, and others in the Legislature to find alternatives which meet the goals of meaningful property tax reform for all Nebraskans.”

The Agriculture Leaders Working Group includes 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.

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
Tim Chancellor – 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



Pork Checkoff Tours the No. 1 Customer for U.S. Pork Exports

With Mexico’s hunger for U.S. pork continuing to grow, members of the National Pork Board spent March 13-18 in Mexico City building trade relations. The delegation invested its time immersing itself in Mexico, which is one of America’s most important export markets. During the visit, the group emphasized the safety and reliability of the U.S. pork supply.

“Our visit to Mexico was eye opening. As board members, we were able to witness why Mexico is such an important trading partner,” said Jan Archer, National Pork Board president and a North Carolina pig farmer. “The average Mexican family spends 30 to 40 percent of its income on food, so they appreciate the ability to access safe, nutritious and affordable U.S. pork.”

The delegation received a warm welcome and were encouraged and enthused about the future of trade with Mexico. Within the next five years, economists predict Mexico may become the largest market for all U.S. goods, surpassing both Canada and the European Union.

During the week, board members saw firsthand the market opportunity and benefit of expanding trade with Mexico. The key objectives of the trip were to discuss and define areas of mutual interest, to extend appreciation to Mexico’s trade industry for the high volume of U.S. pork purchased and to emphasize the reliability and availability of U.S. pork and the next steps needed to support expanding trade.

In 2016, Mexico was again the No. 1 importer of U.S. pork in terms of volume. Mexico imported more than 730,000 metric tons of U.S. pork last year. In terms of value, Mexico was again No. 2 at $1.4 billion. In January 2017, which is the most recent data available, Mexico became No. 1 in both volume and value. The U.S. accounts for more than 90 percent of the total pork imported to Mexico.

At a high-level, the trip agenda included opportunities for board members to:
-    Meet with the USDA's Foreign Ag Service to understand Mexico’s economy and its current political environment.
-    Learn about new pork product development and innovation.
-    Visit places where pork is sold and marketed to Mexican consumers. Those outlets include high-end club stores, regional supermarkets, fast-casual restaurants and a traditional wet market.
-    Meet with Mexico’s largest retail chain that sells and processes almost exclusively U.S. pork and hear about plans for further growth.
-    Meet with some of Mexico’s largest importers to discuss mutual interests and ways U.S. pork can maintain its role as a strong supplier.

“We saw that our investment of producer dollars in the U.S. Meat Export Federation returns great dividends as it develops relationships with importers and retailers,” Archer said. “Our Mexican neighbors import fresh pork and ham, but also the products that have less value to the U.S. consumer. Pork byproducts, such as offal and pig heads, fill an important need in the Mexican marketplace.”

More than 35 percent of the U.S.-produced pork hams are exported to Mexico and processed in Mexican facilities where they are transformed into deli meats and formed-ham products. These products are crucial for low-income diets. That is why the National Pork Board is committed to sharing information with the National Pork Producers Council as it works on trade access issues. This cooperation enables the entire U.S. pork industry to work together efficiently.

“Pork is a mainstay in Mexican culture – consumers appreciate it and know how to prepare it,” said Bill Even, National Pork Board chief executive officer. “The challenge Mexico faces is getting more protein-rich food into the diets of low-income residents and children. This requires a focus on new product development and education.”

The National Pork Board works directly with the U.S. Meat Export Federation (USMEF) to address this key issue, specifically through outreach to dietitians and other medical professionals in Mexico. USMEF also educates students on the role pork and protein play in the diet and, to Mexican consumers, provides point-of-sale promotional materials at retail stores.

Beyond these direct consumer messages, Checkoff-funded USMEF activities include work with trade representatives – importers, brokers and processors – to educate these trade groups on the benefits of U.S. pork and its quality, safety and availability.

“As a producer, I value our trade relationship with our neighbor even more after visiting this beautiful country,” Archer said. “Growth in our industry is the result of a strong trade balance.”

In 1989, the U.S. had very few trade agreements, but today has 20 in place. Free trade agreements contribute to increased exports and enhance the opportunity to distribute U.S. pork worldwide.



USDA Cold Storage February 2017 Highlights

Total red meat supplies in freezers on February 28, 2017 were up 1 percent from the previous month but down 6 percent from last year. Total pounds of beef in freezers were down 7 percent from the previous month and down 1 percent from last year. Frozen pork supplies were up 9 percent from the previous month but down 9 percent from last year. Stocks of pork bellies were up 15 percent from last month but down 74 percent from last year.

Total frozen poultry supplies on February 28, 2017 were up 5 percent from the previous month and up 2 percent from a year ago. Total stocks of chicken were up 2 percent from the previous month but down 2 percent from last year. Total pounds of turkey in freezers were up 12 percent from last month and up 11 percent from February 29, 2016.

Total natural cheese stocks in refrigerated warehouses on February 28, 2017 were up 3 percent from the previous month and up 6 percent from February 29, 2016.  Butter stocks were up 28 percent from last month and up 20 percent from a year ago.

Total frozen fruit stocks were down 5 percent from last month but up 28 percent from a year ago.  Total frozen vegetable stocks were down 6 percent from last month but up 4 percent from a year ago.



DTN Retail Fertilizer Survey Shows Slightly Higher Prices.... Again

As has been the case in recent weeks, retail fertilizer prices are still on the rise but at a fairly small clip the second week of March 2017, according to fertilizer retailers surveyed by DTN. This marks the eighth consecutive week prices have moved higher.

All eight major fertilizers were higher compared to a month earlier, the fourth week in a row all were higher. While all fertilizers were higher once again, none of the eight were up any noteworthy amount. This is the third consecutive week prices were not up any noticeable amount.

DAP had an average price of $443/ton, MAP $462/ton, potash $337/ton and urea $360/ton. 10-34-0 had an average price of $441/ton, anhydrous $507/ton, UAN28 $247/ton and UAN32 $280/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.39/lb.N, anhydrous $0.31/lb.N, UAN28 $0.44/lb.N and UAN32 $0.44/lb.N.

Retail fertilizers are lower compared to a year earlier. Half of the eight major fertilizer are double digits lower.

10-34-0 is 21% lower from a year ago, both anhydrous and UAN32 are 11% less expensive and UAN28 is 10% less expensive. Potash is 9% less expensive, both MAP and urea is 8% lower, and DAP is 7% compared to year earlier.



DFA ANNUAL MEETING FOCUSES ON PRIDE IN DAIRY AS WELL AS THE COOPERATIVE

 This week, more than 1,500 members and guests gathered in Kansas City for the Dairy Farmers of America (DFA) Cooperative’s 19th annual meeting.

This year’s meeting emphasized what sets the Cooperative apart and those ideals and values that matter most to members, leaders and employees.

“We’re proud of who we are and what we do, and we want to show the world why,” said Randy Mooney, chairman of DFA’s Board of Directors. “We want to show them what’s behind our pride in our name, pride in our family farmer owners, pride in our businesses, pride in our products that deliver everyday simple pleasures to millions of consumers and pride in our role in society reflected in communities across the country.”

The meeting kicked off with the chairman’s report, delivered by Mooney, who operates a dairy farm in Rogersville, Mo. Mooney, who also serves as chairman of National Milk Producers Federation (NMPF), talked about the importance of the dairy community working together as well as the Cooperative’s ongoing efforts with trade negotiations and regulatory issues impacting the dairy industry.

An overview of DFA’s business was delivered by President and Chief Executive Officer Rick Smith. His presentation highlighted DFA’s financials for 2016 as well as how the Cooperative strives to take advantage of positive market trends, while also protecting its members from unpredictable market risks. Smith also discussed how the Cooperative remains focused on growing its commercial businesses, in order to better serve and provide value to members.

“Our dairy farmer members are at the heart of everything that we do at DFA, which is why we want to show the industry, as well as our customers and consumers, why being a part of DFA matters,” said Smith. “As we look to the future, we will continue to look for ways to maximize the milk check, while also identifying growth areas for our commercial businesses and providing on-farm services that make it easier and more profitable for our members to farm.”

Special guests and additional highlights of the meeting program included:
• A look at the dairy industry’s role in U.S. trade negotiations from Secretary Tom Vilsack, president and chief executive officer of the U.S. Dairy Export Council
• Futurist Mike Walsh shared the mega-trends shaping the future of business and lessons learned from successful companies on leveraging innovation, embracing data and transforming agriculture for the digital age
• An overview of dairy promotion activities by Tom Gallagher, chief executive officer of Dairy Management Inc.

The Cooperative’s Annual Banquet brought a host of recognitions, including the 2017 Members of Distinction. Every year, family members at one farm from each of DFA’s seven regional Areas are recognized for service to their dairies, their families, communities and the industry.

In addition, outgoing Board Directors Bill Beeman of Kingsley, Pa., Marilyn Calvin of Mount Vernon, Mo., Willem De Boer of Tulare, Calif., Jim Eschliman of Ericson, Neb., Mike Faulkner of Greeley, Colo., Don Gurtner of Fremont, Ind., George Mertens of Sonoma, Calif., Jerry Peterson of Harbor Beach, Mich., Ed Schoen of Phelps, N.Y., and John Woelber of Belen, N.M., were recognized for their contributions to DFA.

Winners of the 2017 DFA Cares Foundation Scholarship were announced at the banquet. DFA Cares Scholarships are awarded to outstanding students pursuing a career in the dairy industry. This year, 45 recipients will receive a combined total of $53,000 toward their undergraduate and graduate level studies.

Annual Meeting concluded on Wednesday with the resolutions process, which brought together more than 250 elected delegates from across the nation to vote on a slate of issues that guide the policy position and business activities of DFA for the coming year.



DFA Reports Record Profits

At the Cooperative’s annual meeting today, Dairy Farmers of America (DFA) officials reported net income of $131.8 million, compared to $94.1 million of net income for 2015. The increase was attributable to higher sales volumes, overall operating efficiencies and lower commodity input costs. The record earnings were also buoyed by the acquisition of the remaining 50 percent equity interest in DairiConcepts, a manufacturer of cheese, dairy ingredients and dairy flavor systems with eight facilities across the United States.

DFA’s net sales totaled $13.5 billion for 2016, compared to $13.8 billion in 2015. This decrease is primarily a result of lower milk prices. The U.S. annual average all milk price was $16.24 per hundredweight in 2016 compared with $17.12 per hundredweight in 2015.

“Being owned by dairy farmers, we are always working to strengthen our milk marketing business and to bring value to our dairy-farmer members,” said Rick Smith, president and chief executive officer. “While 2016 was a year of challenges for many of our farmers, DFA itself continues to grow, and remains focused on continuing our investments in new and existing plants, as well as progressing on our strategic initiatives.”

In 2016, DFA directed the marketing of 62.6 billion pounds of milk for both members and others through the Cooperative’s consolidated businesses, which represent approximately 29 percent of the total milk production in the United States. The average 2016 price paid to members per hundredweight of milk was $16.22 compared with $17.18 in 2015.

Cash distributed to members in 2016 totaled $42 million compared to $35 million in 2015. In 2016, members received $21 million in equity retirements and $21 million of allocated patronage dividends.

In 2016, DFA continued to expand its commercial investments. The Cooperative announced plans to construct a new cheese plant in Michigan with Glanbia PLC, the largest maker of American cheese in the world. This project is driven by Michigan’s growing milk supply and an increasing worldwide demand for dairy products. Joining DFA and Glanbia in this partnership are two other cooperatives, Foremost Farms USA and Michigan Milk Producers Association. DFA also broke ground on a premium cheddar cheese facility in Western New York, which is a joint venture between the Cooperative, DFA members from western New York and Arla Foods of Denmark. Additionally, progress continues on the construction of a new dairy ingredients plant in Garden City, Kan.

DFA’s Consumer Retail and Fluid Milk and Ice Cream divisions also had continued growth and success. Kemps® introduced a new line of frozen yogurt, Yo2, with a generational target: millennials. Borden® Cheese also launched a new campaign, “Love. Always an ingredient,” with an updated website and graphics that highlight the goodness that comes in every package.



Trade and infrastructure top concerns for NGFA members at 121st Annual Convention

More than 650 National Grain and Feed Association (NGFA) members gathered in New Orleans this week for the NGFA's 121st Annual Convention, where they discussed and debated industry priorities on trade, infrastructure and farm policy.

NGFA Chairman John Heck, senior vice president of Scoular in Omaha, Neb., told grain, feed and processing company executives that the NGFA will "fight tooth-and-nail to preserve the many positive features of the North American Free Trade Agreement" for U.S. agriculture, while also offering ideas to the Trump administration on how to modernize the 23-year-old trade accord in its effort to modernize and update the deal.  The NGFA noted that the Trump administration has been receptive to the offer of the NGFA and selective other agricultural organizations to be constructive, proactive partners.  "We have a seat at the table," Heck said.

John Murphy, senior vice president of international policy at the U.S. Chamber of Commerce, said during a panel discussion at the convention's Transportation and Trade Open Forum on Sunday that 14 million American jobs depend on trade with NAFTA members Canada and Mexico, "and if we mess that up there could be a cost. He added that "happily, I think that message is getting through" to the Trump administration.

Murphy noted that the U.S. Chamber is recommending a pragmatic approach to NAFTA renegotiation that improves on the agreement and doesn't undermine or put at risk any benefits. "We can start doing a better job just by enforcing the agreement as it exists today...just enforcing what we've got would be a big step forward," he said.

The chairman, president and CEO of Union Pacific, Lance Fritz, echoed that sentiment during a general session speech on Tuesday, noting that NAFTA is critical to the health of the U.S. economy. "NAFTA can be modified and should be modified," he said. "But vacating the agreement is not the right answer."

During his chairman's address, Heck summarized NGFA members' concerns about investing in infrastructure, particularly waterways and ports. "Given the commitment of the Trump administration to work with Congress to invest significantly in U.S. infrastructure, we have a golden opportunity to front-load investments to jumpstart and expedite construction and rehabilitation of our dilapidated locks and dams, as well as updating of our harbors and ports," he said.

When it comes to them next farm bill, Heck noted the association's specific concerns surrounding the Conservation Reserve Program, while reiterating its support for federal crop insurance.

"As consideration of the new farm bill begins, those in Congress who would repeat the (supply control) mistakes of the past are proposing massive increases in land-idling through the CRP that would cripple U.S. agriculture's future competitiveness and deny young farmers the chance they deserve to get into production agriculture," he said.

"The need for more active membership engagement has never been greater nor more immediate, Heck concluded.



USDA on Tainted Brazilian Meat: None Has Entered U.S., 100 Percent Re-Inspection Instituted

Today, the U.S. Department of Agriculture’s (USDA) Food Safety and Inspection Service (FSIS) announced additional steps to keep the food supply safe for American families in light of the recent investigations of Brazil’s meat industry. 

While none of the slaughter or processing facilities implicated in the Brazilian scandal have shipped meat products to the United States, FSIS immediately instituted additional pathogen testing of all shipments of raw beef and ready-to-eat products from Brazil upon hearing reports of the Brazilian investigation.  FSIS has also increased its examination of all these products at ports-of-entry across the country.  The agency will indefinitely maintain its 100% re-inspection and pathogen testing of all lots of FSIS-regulated products imported from Brazil.

"Keeping food safe for American families is our top priority,” said Mike Young, Acting Deputy Secretary of the U.S. Department of Agriculture.  “FSIS has strengthened the existing safeguards that protect the American food supply as a precaution and is monitoring the Brazilian government's investigation closely.”

The FSIS import inspection system (including equivalence determinations, in-country audits, and re-inspection processes) is designed to ensure that imported meat, poultry, and processed egg products are safe and wholesome. FSIS works closely with the U.S. Customs and Border Protection (CBP) and the Animal and Plant Health Inspection Service (APHIS) to ensure that these products are safe before they enter the country.

“FSIS will take any additional actions necessary to protect public health,” said Al Almanza, Acting Deputy Under Secretary for Food Safety. “It is our mission to keep the food on American dinner tables safe.”

Although none of the establishments implicated in the Brazil scandal have shipped meat products to the United States, effective March 18, FSIS instituted 100% point-of-entry re-inspection of all Brazilian beef imported into the United States, including conducting product examination on 100% of the lots. This re-inspection includes 100% testing of beef trimmings from Brazil for Salmonella, E. coli O157:H7, and non-O157 shiga-toxin producing E. coli (STEC). The 100% re-inspection also includes 100% testing of ready-to-eat products from Brazil for Salmonella and Listeria monocytogenes. FSIS will take immediate action to refuse entry of product into the United States if there are findings of food safety concern. 



ACE DC fly-in underscores biofuel’s importance to rural economy

The American Coalition for Ethanol (ACE) and over 70 of its grassroots members are in Washington, D.C. as part of the organization’s 9th annual fly-in today and tomorrow.

“This unique event brings together a group of advocates from all walks of life, putting a human face on the ethanol industry to communicate our policy priorities to Members of Congress and Executive Branch decision makers,” said Brian Jennings, ACE Executive Vice President. “What sets ACE and this event apart is the emphasis we place on using our most persuasive and effective spokespeople for our industry; the people whose everyday life experiences and authenticity illustrate how the decisions made in Washington, D.C. impact their businesses and communities.”

ACE members will have more than 100 meetings with lawmakers representing 35 states to convey the importance of the Renewable Fuel Standard (RFS), bipartisan legislation to extend Reid vapor pressure (RVP) relief to E15 and higher ethanol blends (S. 517 and H.R. 1311), and the biofuels sector to a robust rural economy. Attendees will also hear from Senior White House Advisor to the Department of Commerce Eric Branstad, who played a critical role in President Trump’s successful presidential bid, serving as state director for the campaign in Iowa. 

“As this fly-in is taking place during the first 100 days of the Trump presidency, there is no time like the present to ensure our voice is heard on Capitol Hill as Trump begins to prioritize his campaign promises into action,” Jennings said. “Rural America helped deliver President Trump’s victory on Election Day, and our fly-in provides corn farmers and biofuel advocates the opportunity to educate our newly elected office holders about how high-octane ethanol can help jumpstart economic growth in the U.S.”

To restore economic security in rural America, Congress needs to maintain the RFS. The point of obligation is one of the most important remaining tools to help drive higher blends in the RFS, and RVP relief and the RFS are a critical tandem. Shifting the RFS point of obligation away from refiners to downstream parties would put blenders, retailers and consumers at the mercy of refiners.

Other 2017 policy priorities include updating the corn ethanol lifecycle analysis, raising the minimum octane content in gasoline and streamlining the certification fuel petition process, and correcting the Motor Vehicle Emission Simulator (MOVES) model.



 NMPF President Says Strengthening Dairy Safety Net Program Must be Priority as Farm Bill Discussions Commence

As Congress begins its deliberations on the next farm bill, improvements to the dairy Margin Protection Program must be a top priority for lawmakers, said Jim Mulhern, president and CEO of the National Milk Producers Federation, who spoke today before the House Agriculture Committee.

During the farm bill hearing on Capitol Hill, Mulhern told committee members that the dairy Margin Protection Program (MPP) is failing to live up to its intended role as a viable economic safety net for farmers, and that a series of changes is needed to restore dairy producers’ confidence in the program. Mulhern’s full testimony can be found here.

“While MPP was, and is, the right approach for the future of federal dairy policy, the program in its current form does not provide meaningful safety net support to the nation’s dairy farmers,” Mulhern said.

The MPP is designed to allow farmers to insure the gap between milk prices and the cost of purchasing feed for dairy cattle. Farmers can choose to pay higher premiums for additional levels of margin coverage, although a decreasing number have elected that approach as they saw the program underperforming. The MPP will continue to falter “without action by this Congress to move it closer to the program it was originally proposed to be,” Mulhern said.

Since its creation in the 2014 farm bill, the MPP has offered little effective support to dairy farmers, resulting in dwindling participation in the program. To rectify that problem, Mulhern shared with the committee members the recommendations to improve the MPP that NMPF’s Board of Directors unanimously approved earlier this month.

NMPF’s proposal includes a series of adjustments that will affect the way both feed prices (including corn, alfalfa and soybean meal) and milk prices are calculated. The most needed improvement is restoring the feed cost formula to the one originally developed by NMPF, he said. During Congress’s deliberations in 2014, lawmakers implemented a 10-percent cut to the weightings of all three feedstuff components of the MPP feed cost formula, due to what turned out to be an inaccurate budget score from the Congressional Budget Office. The resulting feed formula “understates the price to farmers of producing 100 pounds of milk, thereby overstating the actual margins farmers are experiencing,” Mulhern said, adding that the Agriculture Committee “got the calculation right the first time,” and thus needs to restore the MPP feed formula to its original level. Margins using the current formula are approximately $1 per hundredweight higher than they would be if the original feed formula were in place.

NMPF is also asking that Congress direct the Agriculture Department to obtain more precise data for the prices dairy farmers are paying for corn, soybean meal and hay, while also collecting better data for the price farmers receive for milk. These changes will more accurately reflect the true margin dairy producers are experiencing, Mulhern said.

The other NMPF recommendations include: Improving the affordability of the program’s premiums; changing the timing of payments and annual enrollment to be more farmer friendly; and expanding the use of additional risk management tools, such as the Livestock Gross Margin Program, to complement the risk management offered by the MPP safety net.

“We look forward to working with this committee to enact these changes in the next farm bill,” Mulhern said.

His testimony also addressed an issue of great concern to many in the dairy community: the need for immigration reform. The importance of immigrant workers to the U.S. dairy industry cannot be overstated, Mulhern said. At least 50 percent of the U.S. dairy farm workforce is comprised of foreign-born labor. Because the seasonal H-2A visa program does not apply to dairy farms with a year-round demand for labor, Congress must provide the agriculture industry with an effective guest worker program to meet its future needs, while also providing a way to address current workers with improper documentation.

“Without access to a steady and reliable workforce, our industry will not be able to survive, let alone thrive, in the future,” Mulhern said.

Mulhern also touched on trade’s impact on dairy, which has expanded considerably in the last decade. The United States has gone from exporting less than $1 billion of dairy products in 2000 to a record $7.1 billion in 2014 – an increase of 625 percent. Because of this, Mulhern said, the United States must preserve and enhance successful elements of its free trade agreements, such as its partnership with Mexico, America’s No. 1 dairy export market. The federal government should also work to rectify problematic trade issues, such as Canada’s protectionist attempt to undermine its trade commitments to the United States, and the European Union’s attempts to co-opt the use of common food names like parmesan and feta.

“If we aren’t in the game actively negotiating on these issues, we are ceding ground to our competitors and those looking to make it tougher for us to do business in their markets,” said Mulhern.

Mulhern’s testimony also stressed the need for congressional support for the DAIRY PRIDE Act, introduced by Reps. Peter Welch, Mike Simpson and Sean Duffy in the House, and Sen. Tammy Baldwin in the Senate. The legislation would force the U.S. Food and Drug Administration to enforce its long-standing rules defining the composition of products that use the term “milk.”

Mulhern said that plant-based alternatives lack real milk’s consistent level of nutrition, and that in the absence of proper labeling enforcement, increasing numbers of nutritionally inferior dairy imitators will lead to confusion in the marketplace.



NFU Urges Administration to Keep COOL as a Priority for Trade Agenda

The Trump Administration this week released a list of 24 trade practices, including Country-of-Origin Labeling (COOL), that trade negotiators should prioritize in future negotiations. National Farmers Union (NFU) is urging the administration to keep COOL on the list, and to ensure a reinstatement of COOL would be allowable under any renegotiation of the North American Free Trade Agreement (NAFTA).

“For thirty years, NFU has championed Country-of-Origin Labeling, and we strongly believe the issue is important to American producers and consumers alike,” said NFU President Roger Johnson. “American producers raise the best beef and pork in the world, and they believe consumers should be able to know where the meat at the grocery store came from. The President should stick up for American consumers and producers by ensuring COOL is a priority for his administration’s trade negotiations.”

Mandatory COOL, first passed in 2002 and then again in 2008, required that muscle cuts of meat and some vegetables, nuts and fruits sold at retail must contain a label informing consumers about the country where the product was sourced. A May 2013 opinion poll showed more than 90 percent of consumers supported the law.

“COOL provided consumers with information they care about, and it allowed American family farmers and ranchers to differentiate their product,” noted Johnson.

The COOL law was repealed by Congress in December 2015 after a lengthy World Trade Organization (WTO) dispute with Canada and Mexico and pressure from multinational meatpackers. Faced with either making the law compliant by switching it to a voluntary system, paying more than $1 billion in retaliatory tariffs, or repealing the law, Congress chose to repeal the law. And when doing so, they even removed COOL labels from meats like ground beef and ground pork that were never at issue with the WTO.

“The U.S. Congress kowtowed to threats from an international tribunal and foreign governments, even as one of those foreign governments maintained a country-of-origin labeling system in their own country,” said Johnson. “The current administration has an opportunity to right an important consumer right to know and serious sovereignty issue here, and that is the ability of foreign governments or institutions to dictate the laws of our land.”

The administration’s priority list came just days after Brazil’s largest food-processing giants JBS and BRF were raided by government authorities for allowing rotten meat to be distributed in Brazil and exported to Europe.

“Without Country-of-Origin Labeling, cases such as this Brazilian rotten meat scandal can affect consumer confidence in the entire beef industry, harming American producers’ bottom line,” said Johnson.

“American consumers prefer meat from the U.S., and they used and preferred COOL to draw inferences related to a food product’s safety, taste and freshness. We’re hopeful Trump stands with American consumers, family farmers and ranchers, and negotiates a path forward for Country-of-Origin Labeling in the U.S.”



Bird Flu Confirmed in 3 Southern States

(AP) -- A bird flu outbreak that has resulted in the euthanasia of more than 200,000 animals in three Southern states already is the nation's worst since 2015 and new cases are still popping up, an expert said Wednesday.

Agriculture officials are trying to limit the damage from the disease, but it's unclear whether quarantines, transportation bans and mass killings will stop the spread, said Joseph Hess, a poultry science professor at Auburn University.

The disease was first confirmed in southern Tennessee earlier this month and has since been detected in northern Alabama and western Kentucky.

"We're at the point where it's a little here and a little there. It could fade away, but it could blow up into something bigger," said Hess, who also works with the Alabama Cooperative Extension System.

State officials say no infected birds have entered the nation's poultry supply, and the U.S. food chain isn't at risk.

The Kentucky Department of Agriculture said Tuesday that it was temporarily banning the transportation of poultry after a low-pathogenic form of the disease was found in a commercial flock of 22,000 hens in western Kentucky. The farm was placed under quarantine and the birds were killed.

The announcement came as the state of Alabama confirmed the presence of low-pathogenic bird flu in two flocks there, where more than 42,000 animals have been euthanized. High-pathogenic bird flu, a deadlier form of the illness, was previously detected in Tennessee, where 145,000 birds were put to death.

Hess said the illness is carried by waterfowl, which don't get ill but can pass along the disease to poultry.

The current outbreak has affected large commercial poultry houses, where at-risk birds typically are put to death by the thousands with foam that smothers them, and smaller, backyard operations.

Earlier this month, the U.S. Department of Agriculture said a flock of 84,000 turkeys had been confirmed with a low-pathogenic bird flu virus in Wisconsin.

None of the current outbreaks have been linked to the same high-pathogenic virus that resulted in the loss of millions of birds in the Midwest chicken egg and turkey industry in 2015.



Spring Vaccinations Set Calves Up for Long-Term Success

It’s never too early to think about a calf’s respiratory health. The steps producers take this spring with young calves not only help protect them through grazing season, but can prepare the calves for a more complete immune response with pre-weaning and weaning booster vaccinations.

“Spring vaccinations for respiratory disease set calves up for success during the summer grazing season,” said Jon Seeger, managing veterinarian with Zoetis. “Fall vaccinations help calves respond to disease challenges during weaning and comingling.”

Seeger says it is key to protect calves against viral diseases that cause respiratory challenges like bovine respiratory syncytial virus (BRSV), infectious bovine respiratory (IBR) disease and parainfluenza 3 (PI3).

“With INFORCE™ 3 we see a great value in the rapid, lasting immune response to the intranasal administration in the spring with young calves,” said Seeger. “But we also see a more robust immune response when we booster at pre-weaning with modified-live combination vaccine, like BOVI-SHIELD GOLD ONE SHOT®, when it follows the intranasal in the spring.”

Research at North Dakota State University demonstrated a significant (p=0.006) immune response to BRSV in calves given INFORCE 3 at approximately 74 days of age, and again when boosted 153 days later with BOVI-SHIELD GOLD ONE SHOT.

“The North Dakota study showed us that we had a solid immune response following primary immunization with the intranasal vaccine and had a significant boost in immunity when we gave the combination respiratory vaccine several months later in the fall,” explained Seeger. “The real benefit for calves to have the first dose in the spring is that if they are exposed to a disease challenge mid-summer they have a better immune response and are less likely to get sick, than if they aren’t vaccinated before summer grazing.”

Seeger also says it is important not to forget protecting against Mannheimia haemolytica and bovine viral diarrhea (BVD) types 1 and 2.

“The virals are our leading concern, but with a dose of ONE SHOT® BVD in conjunction with the intranasal, we can more completely protect the young calf from viral and bacterial challenges,” said Seeger. “And that first dose of Mannheimia really helps improve the response to the second dose at pre-weaning when bacterial pathogens are a bigger threat.”

Seeger concludes that producers should think of spring vaccinations as first steps in building a complete immunization plan for the calf. “Our goal is to set the calf’s immune system up for success in responding to disease challenges,” said Seeger.



Vibrating Membrane System Helps Turn Cow Manure into Clean Water & Organic Fertilizer

New Logic Research announced today the successful commissioning of a VSEP® vibrating membrane system to make clean water from digested cow manure. The VSEP® system, located in the Italian Alps region of Wipptal, takes the effluent from an anaerobic digester and transforms it into clean water which can either be reused or safely discharged to the environment. The project was implemented with the expert assistance of O.B. Impianti, New Logic's distribution partner in Northern Italy.

Although cows have a simple diet, the digestive system of ruminant animals makes for complicated wastewater treatment scenarios. VSEP's patented vibratory shear mechanism coupled with an innovative filter pack design means it can uniquely create crystal clear permeate from water heavily laden with biological material like cow manure. 

"Digesters are great at making green power and reducing contaminant levels in the waste, but in most cases, further treatment of the liquid effluent is still necessary. Many have tried to treat digester effluent with standard spiral-wound reverse osmosis membrane systems only to find that it's incredibly difficult, if not impossible," said New Logic CEO Greg Johnson. "That's why VSEP® is a perfect fit for digester effluent treatment: you get the reverse osmosis separation you desire, but deployed in a robust system designed to tackle the world's toughest applications."

The Wipptal project is a cooperative one, taking cow manure from more than three dozen local farmers. The liquid manure is transported to the treatment facility where more than 60% of it is transformed into clean water, while the remainder is turned into concentrated organic fertilizer. The only pretreatment between the digester and the VSEP is a 100 micron screening device to remove large particles from the feed material.

O.B. Impianti and New Logic are already building on the success of the Wipptal installation—they are currently working on two additional installations on the continent, where EU funding is frequently available for such projects.