Monday April 17 Crop Progress + Ag News

NEBRASKA CROP PROGRESS AND CONDITION

For the week ending April 16, 2017, temperatures averaged four to six degrees above normal, according to the USDA’s National Agricultural Statistics Service. Rainfall of an inch or more was limited to portions of the eastern half of the State. Dry soil moisture conditions continued in southwestern Nebraska. The first fields of corn were planted, however, fieldwork in most areas was limited to spring tillage and fertilizer application. There were 4.8 days suitable for fieldwork. Topsoil moisture supplies rated 5 percent very short, 18 short, 74 adequate, and 3 surplus. Subsoil moisture supplies rated 7 percent very short, 23 short, 68 adequate, and 2 surplus.

Field Crops Report:
Corn planted was 3 percent, near 6 last year, and equal to the five-year average.

Winter wheat condition rated 1 percent very poor, 8 poor, 38 fair, 46 good, and 7 excellent. Winter wheat jointed was 7 percent, behind 17 last year and 13 average.

Oats planted was 70 percent, near 68 last year and 66 average. Oats emerged was 26 percent, ahead of 20 last year, and near 22 average.

Livestock, Pasture and Range Report:
Cattle and calf conditions rated 0 percent very poor, 0 poor, 15 fair, 71 good, and 14 excellent. Calving progress was 82 percent complete, near 84 last year and 83 average. Cattle and calf death loss rated 1 percent heavy, 65 average, and 34 light.

Sheep and lamb conditions rated 0 percent very poor, 1 poor, 22 fair, 68 good, and 9 excellent. Sheep and lamb death loss rated 1 percent heavy, 74 average, and 25 light.

Hay and roughage supplies rated 1 percent very short, 4 short, 91 adequate, and 4 surplus.

Stock water supplies rated 1 percent very short, 5 short, 93 adequate, and 1 surplus.



Access the National publication for Crop Progress and Condition tables at:
http://usda.mannlib.cornell.edu/usda/nass/CropProg/2010s/2017/CropProg-04-17-2017.pdf

Access the High Plains Region Climate Center for Temperature and Precipitation Maps at: http://www.hprcc.unl.edu/maps.php?map=ACISClimateMaps

Access the U.S. Drought Monitor at:
http://droughtmonitor.unl.edu/Home/StateDroughtMonitor.aspx?NE



IOWA CROP PROGRESS & CONDITION REPORT

 Rain continued to be an issue for Iowa farmers with just 3.0 days suitable for fieldwork statewide during the week ending April 16, 2017, according to the USDA, National Agricultural Statistics Service. Corn planting has been limited as producers have been patiently waiting for warmer and drier soil conditions. Other field activities included CRP burning; anhydrous, manure, and fertilizer applications; and field cultivation where conditions allowed.

Topsoil moisture levels rated 0 percent very short, 1 percent short, 74 percent adequate, and 25 percent surplus. Subsoil moisture levels rated 1 percent very short, 3 percent short, 76 percent adequate, and 20 percent surplus. Southeast Iowa continues to have the lowest subsoil moisture levels with 30 percent rated short to very short.

Two percent of the State’s expected corn acreage has been planted, five days behind the previous year and three days behind the 5-year average. Forty-two percent of the oat crop has been planted, four days behind average, with 10 percent emerged. Northwest, west central, and central Iowa farmers have planted over half their expected oat acreage.

Pasture condition rated 3 percent very poor, 4 percent poor, 24 percent fair, 57 percent good, and 12 percent excellent. Pastures have begun to show good growth with some cows and calves already turned out into the fields. Livestock conditions have been good, although many feedlots remain muddy.



US Corn Planting Falls Behind Normal Pace Due to Widespread Rain

After debuting last week at a pace equal to the five-year average, U.S. corn planting progress fell behind normal in USDA's weekly Crop Progress report released Monday afternoon. USDA estimated 6% of the nation's corn crop was planted as of Sunday, behind last year's pace of 12% and also behind the five-year average pace of 9%.

The delay in planting was due to frequent and widespread showers across the Corn Belt last week.

USDA also reported that 19% of U.S. winter wheat was headed as of Sunday, April 16, up from 11% a year ago and also up from the five-year average of 13% headed.  Fifty-four percent of the winter wheat crop was rated good to excellent.

Meanwhile, spring wheat planting was reported at 13% complete as of Sunday, down from last year's 25% and also below the five-year average of 21% planted.

In other crop reports, sorghum was 21% planted, compared to 16% last year and a 20% five-year average. Cotton planting was 8% complete, compared to 7% last year and a 9% average. Rice was 55% planted, compared to 46% last year and a 37% average. Twenty-five percent of rice was emerged.

Oats were 45% planted as of April 16, compared to 53% last year and a 52% average. Emergence was at 29%, compared to 29% last year and a 35% average.



Japanese Beetles Migrating West
Robert Wright - NE Extension Entomologist

A newly released map of confirmed Japanese beetle populations in Nebraska shows their westward movement from where they were first identified near Lincoln and Omaha several years ago.  Infestations have been confirmed in Dakota, Wayne, Madison, Burt, Platte, Colfax, Dodge, Washington, Saunders, Douglas, and Sarpy counties, plus many other southern Nebraska counties stretching as far west as Lincoln County. 

The map  is based on the 2016 survey for Japanese beetle adults conducted annually by the Nebraska Department of Agriculture. Shaded counties had established populations of Japanese beetles in one or more locations in 2016.

Japanese beetle adults can damage a broad range of plants, including many trees and shrubs planted in the landscape, such as crab apple, roses, linden trees, and many others. They also have been commonly observed feeding on corn and soybeans in parts of eastern Nebraska in the last few years.

Be on the lookout for these beetles in corn and soybeans in 2017 as they begin to emerge in late June if you are in an infested area. See this CropWatch article for more information on management of Japanese beetles in corn and soybeans.

Typically, Japanese beetles are brought into new areas with landscape trees and shrubs imported from infested areas. The root soil may be infested with larval Japanese beetles when these plants are transported to Nebraska.



Agriculture Leaders Say Tax Bills Unacceptable as Proposed

Two high profile bills scheduled for debate by Nebraska lawmakers don’t do enough to provide meaningful property tax reform and relief according to leaders of Nebraska agriculture organizations. The agriculture leaders, representing tens of thousands of Nebraska farmers, ranchers, and livestock feeders, say the tax related provisions included in LB 640 and LB 461 fall short of the expectations of Nebraska property taxpayers.

“We like where Senator Groene is coming from in LB 640. The concept of limiting the amount of property taxes that can be used to fund schools makes a lot of sense and we want to keep pressing that point. Unfortunately, the bill is paid for using the Property Tax Credit Fund – dollars already being used to deliver property tax relief. In that regard, LB 640 is little more than status quo for property taxpayers in terms of additional relief,” said Dennis Fujan, President of the Nebraska Soybean Association. “The Legislature must add new and alternative sources of revenue to underwrite additional property tax savings for LB 640 and deliver meaningful property tax reform for Nebraskans. Repurposing money from the Property Tax Credit Fund, without a significant reduction in the cap on property taxes, isn’t the answer.”

The agriculture leaders’ concerns about lack of action on property taxes extends to LB 461. The bill has been promoted as providing tax savings for both income and property taxpayers in the state. The agriculture leaders say tax savings proposed in the legislation are far out of balance when it comes to addressing property taxes. The bill is projected to provide more than $400 million in individual and corporate income tax relief, while only around $45 million is expected to be returned in property tax relief through the TEEOSA formula (state aid to schools).

“A ten to one ratio of income tax reductions to property tax reductions is not what Nebraskans have asked for, nor is that the message our group and others have delivered to the Capitol. The current version of LB 461 completely misses the mark. LB 461 is in no way acceptable in its current form,” said Fujan.

The agriculture leaders adopted a series of principles prior to the legislative session outlining parameters in how the group would evaluate legislative proposals related to property taxes and tax reform. The group testified before the Legislature’s Revenue, Education and Appropriations Committees offering support for numerous bills that would provide the means for the Legislature to deliver property tax reform and relief this session.

“We’ve talked to senators about the importance of balancing the tax burden between property, state sales, and state income taxes to reduce our overreliance on property taxes. We’ve pointed out the need for revenue neutral solutions that expand the tax base and use those revenues to provide dollar for dollar reductions in property taxes. We’ve shared the need for property tax reforms that benefit all property owners, and we’ve talked about ways to lessen the reliance on property taxes without harming our schools,” said Fujan. “Based on our evaluations, LB 640 and LB 461 fail to meet many of the principles we’ve outlined as a group. By potentially forcing more burden onto property taxpayers down the road, LB 461 is actually a step backward.”

Fujan said the group and their organizations will continue to work with members of the Legislature to try and improve the bills so they deliver for property taxpayers.

“We want to make these bills better, but there’s a lot of work that must be done to make them acceptable,” said Fujan.

LB 640, introduced by Sen. Mike Groene, of North Platte, is slated for legislative debate Tuesday, April 18.

LB 461 was advanced by the Legislature’s Revenue Committee and contains several tax related provisions including pieces of Governor Pete Ricketts’ tax reform package. The bill is slated for debate Friday, April. 21.

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



Export Protocol Negotiation Will Decide the Timeline for U.S. Beef in China
Josh Maples, Assistant Professor, Dept of Ag Econ, Mississippi State University

It was reported last week that China has agreed to allow beef imports from the U.S. for the first time since 2003. This announcement follows a very similar announcement made in September of 2016, though no actual trade has occurred yet. Gaining access to the most populated country in the world would be a very positive development for the U.S. beef industry. China represents a multibillion-dollar market and has the greatest growth potential for beef consumption of any country in the world. China has a large and growing middle class and has experienced steady increases in beef consumption. China and Hong Kong combined to be the largest beef importers in the world in 2016. While the U.S. already exports to Hong Kong, 87 percent of China's 2016 beef imports were from Brazil, Uruguay, Australia, and New Zealand.

If the U.S. is going to be able to export beef to China, a bilateral agreement over trade specifications must be reached by both countries. The three step process for resuming trade was discussed in a USDA Foreign Agriculture Service report last September (available here). The first step was lifting the ban on U.S. beef. The second and third steps involve negotiating export protocol conditions and an audit of these protocols. The report also pointed toward the discussion of traceability requirements as part of the protocol negotiation. The announcement made last week should be viewed more of a repeat of the first step.

We can look to the process Canadian beef followed to re-enter the Chinese market as a reference. China also closed the door on Canadian beef in 2003 as a response to bovine spongiform encephalopathy (BSE). In June of 2010, China announced it would reopen imports of Canadian beef in stages. The first stage was boneless frozen beef from cattle under 30 months of age which began shipment in May of 2011. China agreed to allow Canadian bone-in frozen beef from cattle under 30 months old in September of 2016. The specifications for Canadian boneless beef and the proposed requirements for bone-in beef are available here. With regards to traceability, the cattle from which the beef is harvested must meet the requirement that "each animal has a unique identity, the farm of origin (place of birth) can be traced, and the cattle should be slaughtered less than 30 months of age." The process to begin shipment of U.S. will not necessarily have to follow the same staged process or take the same amount of time. However, this is a good example of the type of protocols and regulatory hurdles that must be negotiated.

It is important to note that if and when we finally start exporting beef to China, much work will need to establish market share of U.S. beef in China. Per capita consumption of beef is much lower in China (forecasted 12.7 lbs. per person in 2017) as compared to the U.S. (forecasted 56.2 lbs. per person in 2017). While this shows enormous room for growth, the growth will likely be throttled by household income. Average per capita income in China was $8,028 (USD) in 2015 - significantly lower than the U.S. average of $56,116. This leads many Chinese consumers to be very price sensitive. Further, the beef produced in the U.S. is overwhelmingly grain-fed as compared to the predominantly grass-fed beef produced by most of China's current trading partners. However, the population of China leads even gaining a small share of the per capita consumption totals to have a large impact on U.S. exports.

While the possibility of exporting to China should assuredly be viewed as very positive for U.S. beef producers, we have not yet reached the finish line. The resurgence of the topic in media stories last week is more of a reminder of how important beef exports to China could be to our industry than a new development.



CWT Assists with 2.3 Million Pounds of Cheese Export Sales

Cooperatives Working Together (CWT) has accepted 15 requests for export assistance from member cooperatives that have contracts to sell 2.335 million pounds (1,059 metric tons) of Cheddar and Monterey Jack cheeses to customers in Asia, the Middle East and Oceania. The product has been contracted for delivery in the period from April through July 2017.

So far this year, CWT has assisted member cooperatives who have contracts to sell 28.432 million pounds of American-type cheeses, and 1.427 million pounds of butter (82% milkfat) to 12 countries on four continents. The sales are the equivalent of 294.464 million pounds of milk on a milkfat basis.

Assisting CWT members through the Export Assistance program in the long term helps member cooperatives gain and maintain market share, thus expanding the demand for U.S. dairy products and the U.S. farm milk that produces them. This, in turn, positively affects all U.S. dairy farmers by strengthening and maintaining the value of dairy products that directly impact their milk price.



Alltech expands team to support local dairy industry

Global animal health and nutrition company Alltech is proud to announce the expansion of the South Dakota regional team with the addition of on-farm dairy specialist Jeff Johnson.

Johnson is a University of Wisconsin–River Falls graduate who grew up in west central Minnesota. Currently, he lives near Grove City, Minnesota. He comes to Alltech from Land O’ Lakes, where he held multiple positions during his 35 years of experience, including milk production specialist, regional milk procurement manager, national milk quality trainer and animal care specialist.

“Jeff is coming to Alltech with a wide range of knowledge related to proper milking procedures and animal care,” said CJ Tanderup, South Dakota regional manager for Alltech. “We are looking forward to the expertise and advice he will not only be able to give to our team, but to the dairies in the region.”

Johnson’s primary duties as an Alltech on-farm dairy specialist will include working with dairy operations to help manage and prevent health challenges in addition to conducting audits and educating producers on milk quality and procedures. The Alltech South Dakota regional team covers Montana, Wyoming, North Dakota, South Dakota, Nebraska and Iowa.



MN, SD Deere Dealers Announced Merger Plans

A group of John Deere dealers in Minnesota and South Dakota have consolidated their various locations, creating a 17 store chain. According to a release on their respective websites, Kibble Equipment, James River Equipment, Schuneman Equipment Co. and Larson's announced the merger of their businesses.

"This will bring together a group of stable, neighboring John Deere dealerships in an effort to enhance the services we provide to our customers," the group of dealers said in a joint statement. "The anticipated date of merger is June 5, 2017. This merger is a positive step as we look toward the future. It will create a sustainable platform allowing our adaption to the market while ensuring efficient utilization of assets."

Farm Equipment magazine reports that with 17 locations, the new dealer group will be among Deere's top 15 largest dealers by ag store locations.