Wednesday April 19 Ag News

USDA:  Record High Total Red Meat and Pork Production in 2016

Total red meat production for the United States totaled 50.5 billion pounds in 2016, 4 percent higher than the previous year. Red meat includes beef, veal, pork, and lamb and mutton. Red meat production in commercial plants totaled 50.4 billion pounds. On-farm slaughter totaled 93.2 million pounds.

Beef production totaled 25.3 billion pounds, up 6 percent from the previous year. Veal production totaled 81.0 million pounds, down 8 percent from last year. Pork production, at 25.0 billion pounds, was 2 percent above the previous year. Lamb and mutton production totaled 155.4 million pounds, down slightly from 2015.

Commercial cattle slaughter during 2016 totaled 30.6 million head, up 6 percent from 2015, with federal inspection comprising 98.5 percent of the total. The average live weight was 1,363 pounds, up 3 pounds from a year ago. Steers comprised 54.8 percent of the total federally inspected cattle slaughter, heifers 25.6 percent, dairy cows 9.6 percent, other cows 8.4 percent, and bulls 1.6 percent.

Commercial calf slaughter totaled 487,700 head, 8 percent higher than a year ago with 98.4 percent under federal inspection. The average live weight was 266 pounds, down 44 pounds from a year earlier.

Commercial hog slaughter totaled 118.2 million head, 2 percent higher than 2015 with 99.3 percent of the hogs slaughtered under federal inspection. The average live weight was down 1 pound from last year, at 282 pounds. Barrows and gilts comprised 97.3 percent of the total federally inspected hog slaughter.

Commercial sheep and lamb slaughter, at 2.24 million head, was up 1 percent from the previous year with 89.8 percent by federal inspection. The average live weight was down 2 pounds from 2015 at 134 pounds. Lambs and yearlings comprised 94.6 percent of the total federally inspected sheep slaughter.

Iowa, Kansas, Nebraska and Texas accounted for 49 percent of the United States commercial red meat production in 2016, unchanged from 2015.

Red Meat Production By State             
     (million lbs. -  '16 total - '15 total)
Nebraska ...:        8,007.8         7,475.1
Iowa ..........:        7,055.2         6,969.0
Kansas .......:        5,418.2         5,038.8
Texas .........:        4,392.4         4,082.8

There were 814 plants slaughtering under federal inspection on January 1, 2017 compared with 808 last year. Of these, 650 plants slaughtered at least one head of cattle during 2016 with the 13 largest plants slaughtering 58 percent of the total cattle killed. Hogs were slaughtered at 621 plants, with the 13 largest plants accounting for 60 percent of the total. For calves, 3 of the 200 plants accounted for 46 percent of the total and 3 of the 531 plants that slaughtered sheep or lambs in 2016 comprised 54 percent of the total head.   



CLAAS SENIOR LEADERSHIP TAKES ON NEW INDUSTRY ROLES

Two key members of the CLAAS leadership team have recently taken on additional responsibilities in their respective industry organizations. Both are excited to assume roles that stand to positively impact the ag manufacturing sector as a whole.

President of CLAAS Global Sales Americas Leif Magnusson, who recently fulfilled his term as chair of the Association of Equipment Manufacturers (AEM), will now chair the Infrastructure Vision 2050 Task Force for the organization.

“Infrastructure is a hot topic in Washington, D.C., and an important concern, especially for those who market to and live within rural communities,” explained Magnusson. “Agricultural equipment today is larger and more technologically advanced than ever before. We need roads, bridges and communication networks that support the latest innovations and high volumes of transportation that help our farmers feed the world.”

The Infrastructure Vision 2050 Task Force is one of the AEM’s most critical initiatives designed to encourage development and increased spending on critical infrastructure projects.

Maury Salz, president of CLAAS Omaha, LLC, oversees the manufacturing operation that produces LEXION combines for the North American market. Salz was recently selected to assume a three-year leadership role for the American Society of Agricultural and Biological Engineers (ASABE). He will take on his new role in July 2017 as president-elect, followed by a year as president beginning in July 2018 and past president beginning in July 2019.

For more than a century, the ASABE has been the professional home of engineers and others who work to find sustainable solutions for an ever-growing population. ASABE members are leaders in the production, transport, storage and use of safe and abundant food; clean water; fiber, timber and renewable sources of fuel; and life-enhancing and life-saving products from bio-based materials.

“I’m excited to become a part of the leadership team at ASABE. It is a very important community of professionals,” said Salz. “We are living in an extraordinary time where important advancements can have a huge impact on a rapidly growing population. I look forward to supporting our members and influencing our industry.”



Farm & Ranch Land Sales Increase for FNC

Farmers National Company reports that real estate sales volume is up 21 percent during the first half of its fiscal year compared to last year and up 38 percent from a year earlier with an increase in both individual sales transactions and acres sold.

Acres sold by the company increased 10 percent from last year and 27 percent compared to two years ago. Transaction volume has also been on the increase, up 47 percent in the past two years. For the first half of its fiscal year, which runs from October through March, there were 470 transactions involving 63,925 acres.

Randy Dickhut, senior vice president, noted that the sales activity is being driven primarily by non-operating landowners.

“So far, few farm operators are selling land and investors continue to be in the market looking for opportunities to add acres to their holdings. The slow decline in the land market is part of the reason some are selling,” he said.

Some landowners have decided that now is the time to sell and capture some of the land appreciation seen in the last few years. Dickhut said that there is still good demand for land in most of the company’s 28-state service area.

“The number of buyers and sellers for good land in most markets is in equilibrium and that seems to be helping our land sales. As long as the seller is realistic about today’s market price for land in their area, there are buyers looking to buy. I credit our increases in the face of a slowing land market to our large network of agents educating their clients on the current market prospects,” Dickhut said.

Farmers National also reports continued strong land auction activity with a 12 percent increase in the number of auctions sales over last year at this time. The volume of listings for sale is also strong.

“Having the ability to either sell land by auction or through a private treaty listing gives our sellers the most options to achieve a successful sale,” Dickhut said. 



Simpson Farm Enterprises, Inc. Expands with Fifth Apache Dealer Location

Simpson Farm Enterprises, Inc. has announced it will be opening a fifth Apache Sprayers dealership location in Grand Island, Nebraska, to provide service and sales to the surrounding region. The new dealership is set to open in the spring of 2017.

“Simpson Farm has been representing Apache Sprayers for years, so when we saw the opportunity to serve a large base of existing Apache owners in Nebraska we jumped at the chance,” said Jed Simpson, company president. “Our goal is to provide outstanding sales and service support to the state’s agriculture community.”

“The Simpson Farm team has been a trusted Apache dealer and service provider for nearly 20 years,” said Equipment Technologies CEO, Matt Hays. “We could not be more confident in their decision to expand. We’re eager to see what is in store for the new Grand Island dealership.”

Simpson Farm has been in the agricultural applications business for over 35 years. Company founder, Virgil Simpson became interested in no-till farming in the early 1970s and designed a special pull-type sprayer to improve the practice. Soon his neighbors were asking him to build sprayers for their operation and Simpson Farm Enterprises, Inc. was born.

“My brother Jay and I are the third generation to run the business,” Simpson said. “Throughout the years, Simpson Farm Enterprises has grown from selling one pull-type sprayer in our Ransom, Kansas, dealership to becoming a world-renowned dealer for several top-name brands.”

The Simpson Farm Enterprises team has been selling and servicing the Apache Sprayer line since 1998 in their four Kansas dealerships located in Ransom, Great Bend, Hays and Beloit.

“With our already knowledgeable and established team, we will be able to provide enhanced service and support at the Grand Island dealership,” Simpson said.



Senate to Vote on Perdue Nomination on April 24

The Senate is scheduled to vote at 5:30 p.m. on Monday, April 24, on President Trump's nomination of former Georgia Governor Sonny Perdue to be Agriculture Secretary.

The vote comes after the Senate Agriculture Committee held a confirmation hearing on his nomination on March 23, and a vote out of Committee on March 30.

The Department of Agriculture has been without a confirmed Secretary for nearly three months.

Next week will be busy, starting with a confirmation vote on Perdue followed by necessary action to pass a funding bill for the remainder of FY 2017 prior to the expiration of the current Continuing Resolution on April 28.



U.S. Gasoline Contained More than 10% Ethanol in 2016, Shattering the ‘Blend Wall’ Myth Once and For All

Gasoline consumed in the United States in 2016 contained more than 10% ethanol on average for the first time ever, according to an analysis of U.S. Energy Information Administration (EIA) data released today by the Renewable Fuels Association (RFA). The EIA data dispels the myth that 10% is the marketplace limit for ethanol content in U.S. gasoline, and demonstrates that the so-called “blend wall” is not a real constraint on ethanol consumption.

According to EIA data, finished motor gasoline consumption totaled 143.367 billion gallons in 2016. That volume of gasoline contained 14.399 billion gallons of ethanol, meaning the average ethanol content of gasoline consumed in 2016 was 10.04%.  According to the RFA report, the data “…further underscore that statutory Renewable Fuel Standard (RFS) blending obligations in excess of the 10.0% level can be readily satisfied by the marketplace.”

Growing consumption of E15 (gasoline blends containing 15% ethanol), mid-level blends (containing 20-50% ethanol) and flex fuels (containing 51-83% ethanol) was responsible for the increase in the average ethanol content of U.S. gasoline in 2016. The RFA report finds that 2016 consumption of mid-level blends and flex fuels was at least 450 million gallons, and may have been more than 1 billion gallons if the American Petroleum Institute’s (API) assertions about ethanol-free gasoline (E0) demand are correct.

A summary of key findings include:
• National average ethanol content was 10.0% or higher in six of the last seven months of 2016, culminating with a record high monthly rate of 10.30% in December.
• On a weekly basis, the ethanol blend rate hit a weekly record of 10.41% in early January 2017.
• These data undermine the assertion by API and others that the gasoline market cannot accommodate more than 9.7% ethanol due to purported infrastructure and vehicle constraints. April 2015 was the last time average ethanol content was below 9.7%.
• Using the most conservative assumptions, EIA data imply that 447 million gallons of mid-level blends and flex fuels (containing 313 million gals. of ethanol) were consumed in 2016.
• However, if API’s assumptions about E0 demand are used, then consumption of mid-level blends and flex fuels was 1.2 to 1.7 billion gallons (843 mil. to 1.17 bil. gals. of ethanol).

“EIA’s data once again shows that the oil industry’s blend wall narrative is bankrupt, intended only to mislead consumers and undermine support for the Renewable Fuel Standard,” said RFA President and CEO Bob Dinneen. “The facts provide a different narrative. Ethanol is the lowest cost and cleanest burning source of octane today. Driven by the RFS and attractive blending economics, domestic refiners and blenders used more ethanol in 2016 than ever before and it’s likely that trend will continue this year. Consumers are gravitating toward E15, E85, and other mid-level blends where they are available. The oil industry can no longer claim the blend wall is any barrier to the effective implementation of the RFS.”

“Additionally, with EPA poised to soon issue its proposed 2018 RFS renewable volume obligations, this analysis unequivocally proves the agency needs to implement the 15 billion gallon statutory requirement for conventional biofuel. A strong RFS benefits consumers with cleaner air, greater energy security and a boost to local economies. We look forward to EPA implementing a strong RFS for 2018,” Dinneen added.



Ethanol Stocks, Output Up

U.S. fuel ethanol inventories, plant production and blending demand all increased last week after falling week prior, according to the Energy Information Administration.

The EIA's Weekly Petroleum Status Report for the week-ended April 14 showed fuel ethanol inventories rose by roughly 100,000 barrels (bbl) to 23.0 million bbl, up 1.0 million bbl, or 4.5%, year over year.

Domestic plant production rose 7,000 barrels per day (bpd), or 0.7%, to 993,000 bpd last week, while 54,000 bpd, or 5.8%, higher year over year. For the four weeks ended last week, fuel ethanol production averaged 1.013 million bpd, up 52,000 bpd, or 5.4%.

Net refiner and blender inputs, a gauge for ethanol demand, increased by 4,000 bpd to 912,000 bpd during the week-ended April 14, while up 19,000 bpd, or 2.1%, over a year-ago level. For the four-week period ended April 14, blending demand were up 15,000 bpd, or 1.7%.



Average Retail Fertilizer Prices Show Some Signs of Weakening

For the first time in months, retail fertilizer prices are showing signs of weakening with just as many fertilizer prices lower as higher the second week of April 2017 compared to last month, according to fertilizer retailers surveyed by DTN.

Of the eight major fertilizers, half continued to be higher in price, while the other half were lower. None of the eight saw significant changes in price, though.

The four that were higher were MAP, potash, 10-34-0 and UAN32. MAP had an average price of $466 per ton, potash $338/ton, 10-34-0 $441/ton and UAN32 $280/ton.

The four fertilizers with lower prices from last month were DAP, urea, anhydrous and UAN28. DAP had an average price of $437/ton, urea $353/ton, anhydrous $505/ton and UAN28 $247/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.38/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. Three of the eight major fertilizers are still double digits lower.

10-34-0 is 21% lower from a year ago, anhydrous is 14% less expensive and UAN32 is 12% lower. DAP, urea and UAN28 are all 9% less expensive while both MAP and potash are both 8% lower compared to year earlier.



Beef Fuels Team Beef in Boston

Thanks to the national beef checkoff, beef was front and center during the 121st Boston Marathon on April 17. Thirty-one members of Team Beef started in Hopkinton, Mass., and ran along the rolling streets into downtown Boston on Marathon Monday to celebrate Patriots' Day with more than 30,000 other runners from nearly 100 countries.

The checkoff also participated in the John Hancock Sports and Fitness Expo leading up to the race. That event brought the beef message to 100,000 runners and their families.

This year marked the largest contingent of Team Beef members participating in the Boston Marathon to date. Members of Team Beef also received tips for including nutritious, lean beef in their training diet, beef recipes and cooking advice, and a Team Beef running jersey to wear during the race.

Earning a spot on Team Beef was no walk in the park. Like all Marathon runners, Team Beef members had to run a qualifying time during a previous marathon. For most runners, qualifying for the event is a”bucket list” accomplishment. For Team Beef member, Sam Brandt, it was nothing less than just that. “Seven years ago, I made it my goal to go to the Boston Marathon by planting the seed, believing in it and achieving it.” Sam ran as a Team Beef member at the 2015 and 2016 Marine Corp Marathon as well.

Brandt of Lynchburg, Va., was the first Team Beef member to cross the Boston Marathon finish line with a time of 2 hours 59 minutes and 24 seconds. Tammy Bogle of Austin, Texas, was the first female finisher for Team Beef, finishing in 3:22:39. The average finish time for the Team Beef runners was 3:40:10. Team Beef runners were from New York, New Jersey, Virginia, Wisconsin, Missouri, Nebraska, Arizona, Illinois, Colorado and Texas.

During the three-day Sports and Fitness Expo, the beef checkoff partnered with Boston-based Honest Beef Company to offer beef jerky samples to attendees. Millennial-2-Millennial collegiate advocate Olivia Richarte and Cattlemen’s Beef Board member Kristy Lage of Arthur, Neb., assisted checkoff staff at the beef booth during the Expo.

“The Boston Marathon provides a unique opportunity to encounter people who are at the intersection of elite fitness and often, urban lifestyles,” noted Hannah Raudsepp, owner of Honest Beef Company. “This gave us the chance to spread the good word about beef as an unparalleled source of fuel for competition and helped us better understand these individuals in terms of their feelings about beef. Only when we are able to 'meet them where they are,' can we begin to make headway closing the gap between urban Americans and those of us who raise their beef. We all have the ability to tell our story, but knowing how to tell it in a way that will resonate is critical to our success. The Beef Council has found powerful ways to effectively connect with consumers—and talking to them face-to-face at the Boston Marathon expo is a great example of this!”



2016 Count of Certified Organic Operations Shows Continued Growth in U.S. Market

The U.S. Department of Agriculture (USDA) today announced new data indicating the organic industry continues to grow domestically and globally, with 24,650 certified organic operations in the United States, and 37,032 around the world.

The 2016 count of U.S. certified organic farms and businesses reflects a 13 percent increase between the end of 2015 and 2016, continuing the trend of double digit growth in the organic sector. The number of certified operations has increased since the count began in 2002 and this is the highest growth rate since 2008.

Organic certification is an “opt-in” voluntary standard that is managed through a public-private partnership. The USDA accredits and oversees approximately 80 businesses and State governments that directly certify organic farms and businesses. USDA provides a number of educational resources to help organic producers access this growing market. These include interactive videos that help candidate farmers understand how to get and maintain organic certification, and fact sheets that explain the value proposition of organic certification and outline the standards in clear ways.



NMPF Statement in Response to Canadian Ambassador’s Comments on Dairy Trade Dispute
From Jim Mulhern, President and CEO, National Milk Producers Federation

“It’s absurd for the Canadian government to assert there is no relationship between its new Class 7 policy and the lost U.S. milk sales there. When customers in Canada, who have been purchasing milk products from American suppliers for years, suddenly decide to switch to domestic suppliers after Canada implements a major change in milk pricing, it is abundantly clear that the lost business incurred by U.S. farmers is directly tied to Canada’s milk pricing system.

“The problems this pricing policy are creating for dairy farmers in Wisconsin, New York and Minnesota are real, and they have nothing to do with U.S. ‘overproduction,’ as alleged in a recent letter from Canada’s Ambassador to the United States, David MacNaughton. U.S. companies had, until recently, supplied Canadian customers during periods of relatively tight supplies and when production increased. The only change has been Canada’s deliberate pricing policy decision – starting last year in Ontario and spreading more recently to other provinces – to create a national ingredients strategy to undercut competition from the United States. Canada didn’t like U.S. farmers supplying their processors’ demand for milk proteins, so they changed the rules of the game. First they moved to block our exports and, even more problematic, their new pricing strategy is positioning them to further undercut global powder markets by dumping their surplus on the world market.

“This situation is not just a bilateral trade problem for the United States. Canada’s policy change to manipulate internal prices to export more dairy ingredients globally is of great concern to other nations beyond just the United States. That’s why countries including Australia and New Zealand have also raised objections to Canada’s harmful actions.

“Canada’s effort to shift the focus away from the internal problems their milk pricing system is disingenuous at best. Canada can support its industry without intentionally using policy tools to harm U.S. dairy farmers and world dairy markets.”



Dairy Farmers of America Joins Newly Launched Project Gigaton Initiative to Reduce Emissions

Today, during Walmart’s Sustainability Milestone Summit, Dairy Farmers of America (DFA) joined the retailer and other organizations in announcing our participation in a new platform, Project Gigaton, aiming to reduce greenhouse gas emissions from our operations and supply chains one gigaton by 2030. Through Project Gigaton, a network of suppliers, companies and non-governmental organizations will submit goals and plans to eliminate one gigaton of emissions, the equivalent of taking more than 211 million passengers vehicles off of U.S. roads and highways for a year. The initiative has identified energy, agriculture, waste, packaging, deforestation and product use and design as the goal areas in which to focus emissions reduction efforts.

“We are excited to work with Walmart toward its sustainability goals, and are aligned with its vision,” said David Darr, president of farm services at DFA. “Our farmer members have a strong track record of progress and stewardship and are committed to producing safe, quality and wholesome dairy products through integrity-based, sustainable practices. We have a moral obligation to feed the world in a sustainable manner and look forward to continuing the journey as technology evolves in this area.”

DFA is committing to accelerating our work in the areas of manure management, anaerobic digestion, farm management and advanced management technologies. We see our work contributing to:
·         Significantly increase the number of manure management systems that mitigate greenhouse gas (GHG) emissions
·         Working with our nearly 8,000 members on farm management practices that lead to lower enteric GHG emissions
·         Promoting advanced systems and technologies that lead to more efficient dairy farms

DFA and other participating companies are being provided with an emission reduction toolkit that was designed with the input of the World Wildlife Fund, Environmental Defense Fund and other organizations. The toolkit provides guidance on implementing effective enterprise strategies in addressing sustainability challenges and underscores the business benefits in reducing emissions. According to a joint report published by the World Wildlife Fund and CDP, U.S. businesses that commit to annually cutting their carbon emissions can collectively reap as much as $190 billion in savings from reduced energy bills, increased productivity and other associated gains.

DFA is proud to join Walmart and other companies in Project Gigaton as we work to reduce greenhouse gas emissions in our operations and supply chains.