Friday May 5 Ag News

Ricketts Proclaims May is Beef Month in Nebraska

Today, Governor Pete Ricketts proclaimed May is Beef Month in Nebraska to recognize the state’s beef producers and celebrate the many ways Nebraska leads the nation in beef production. Joining the Governor for the proclamation signing was Nebraska Department of Agriculture (NDA) Director Greg Ibach and representatives from Nebraska Cattlemen and the Nebraska Beef Council.

“Nebraska became the nation’s number one exporter of beef in 2016 giving us the world-wide recognition we deserve for our great tasting, quality beef,” said Gov. Ricketts. “Additionally, May kicks off grilling season in Nebraska, making this month the perfect time to celebrate beef and recognize the hard-working ranchers who continue to grow the state’s beef industry.”

Along with being the nation’s number one exporter of beef, Nebraska continues to be the number one processor of beef and the number one state in the nation for cattle on feed, according to the U.S. Department of Agriculture. Nebraska has exceeded the $1 billion mark in overall beef exports every year since 2014.

“Our efforts to market and promote Nebraska beef products nationally and internationally, along with our reputation for delivering premium beef products, are increasing Nebraska’s beef exports,” said NDA Director Greg Ibach. “It’s opening doors for us in new and existing markets.”

Buck Wehrbein, Waterloo, Chairman of the Board for the Nebraska Beef Council, agreed saying how much producers appreciate the recognition of Beef Month in Nebraska.

“Beef Month is another opportunity to share the story with consumers of premium beef from Nebraska,” said Wehrbein. “Nebraska farmers and ranchers have high standards and work hard to deliver quality beef products that consumers desire.”

“Family farms and ranches have a rich history here in Nebraska,” said Troy Stowater, president of Nebraska Cattlemen and rancher from Wayne. “Our families care for the land, provide a safe and comfortable environment for their animals, protect natural resources, and work diligently to provide people with delicious and nutritious food.”                     



Flow meters required for all wells designed to pump more than 50 gallons per minute

At the April board meeting of the Lower Elkhorn Natural Resources District (LENRD), the board held a public hearing to consider amending its rules to expand the requirement of flow meters.  The amendment added the requirement of flow meters on all public water supply, commercial, industrial, and livestock wells designed to pump more than 50 gallons per minute.  The board approved these changes, which become effective on May 26, 2017.  The amended rules require flow meters to be installed on these wells by January 1, 2019. 

LENRD Water Resources Manager, Brian Bruckner, said, "These high-capacity wells in the district join irrigation wells in the requirement to have flow meters installed.  All irrigation wells must have flow meters installed by January 1, 2018."

Mike Sousek, LENRD General Manager, said, "This makes the groundwater management rules more equitable across the district.  The board made the decision that instead of focusing everything on agriculture, we need to look at all the stakeholders.  If your well pumps more than 50 gallons per minute, you will need a meter installed."

Sousek added, "We're going to work with the communities in our district, explaining the next steps.  This will be a benefit to them in the long run.  When a drought hits, especially a multi-year drought, it affects everyone."

In other action, the board also approved cost-share funding for the City of Randolph’s Middle Logan Creek channel enlargement and floodplain reduction project.

The LENRD board and staff recently celebrated the retirement of Assistant General Manager, Ken Berney, of Stanton.  Ken has been on the staff at the LENRD for almost 40 years.  He has formed lasting relationships with, not only his co-workers and the board, but with the numerous partners and agencies that have worked with the LENRD since 1972.  Sousek said, “Thank you, Ken, for your commitment to the protection of our natural resources, and for your constant support of our projects and programs for the past 39 ½ years.  We wish you all the best in retirement.”

Visit the LENRD website to sign up for emails from the district.  Like us on Facebook, and follow us on Twitter.  www.lenrd.org.



Lower Elkhorn NRD offers Scholarships to attend 4-H & NRD Camps

The Lower Elkhorn Natural Resources District (LENRD) is accepting applications for 4-H & NRD summer camp scholarships from youth throughout the 15-county district. The LENRD will reimburse the winning applicants for their camp registration fee.

Scholarships are available for various 4-H and NRD sponsored camps around the state, including the Nebraska Range Youth Camp, and the Adventure Camp about the Environment (ACE Camp).

4-H scholarship winners must register for the camp of their choice, arrange for their own transportation and pay all fees.  The LENRD will reimburse the registration fee after the scholarship winners send camp attendance verification to the LENRD office.

Any 4-H member who would like to apply for these scholarships should contact their local Extension office or the LENRD office for more information and an application form.  All applications must be received by Friday, May 26th.  4-H scholarship winners will be notified the week of May 29th.

For more information, and a complete listing of all area camps, visit the University of Nebraska Extension 4-H web site at:  www.4h.unl.edu.



NE Corn Board to Meet

The Nebraska Corn Board will hold its next meeting on Tuesday, June 6, 2017 at River’s Edge Convention Center, 265 33rd Avenue in Columbus, Nebraska.

The meeting is open to the public, providing the opportunity for public comment.  The Board will conduct regular board business, consider funding requests and set the budget for fiscal year 2017-2018.  The meeting is open to the public.  A copy of the agenda is available by writing the Nebraska Corn Board, PO Box 95107, Lincoln, NE  68509, sending an email to susan.zabel@nebraska.gov or calling either 402/471-2676 or 800-NECORN1.




Buhr Joins the Nebraska Soybean Board

The Nebraska Soybean Board is pleased to announce the hiring of Cale Buhr as the Communications Coordinator.

In his role, Buhr will handle internal and external communications, media planning and public relations on behalf of the Nebraska Soybean Board (NSB). He will manage the Nebraska Soybean Board’s quarterly magazine as well as other ag-related communications and marketing projects to promote the Nebraska soybean industry.

Buhr was raised in Trumbull, Nebraska, and is a 2015 graduate of Hastings College, where he received his degree in Communication Studies and Advertising/Public Relations. Prior to joining the NSB, Buhr worked for the travel media company Sojern, where he practiced effective promotion among multiple media channels.

“Growing up on a farm, I learned to appreciate the hard work and dedication of our Nebraska soybean farmers,” said Buhr. “The checkoff program is a great way to promote all of the benefits that soybeans bring to our state and I’m excited to be a part of it.”

With this hire, the NSB will also move current Marketing and Communications Director Andrew Guiney to the role of Director of Market Development.



USDA Secretary Tours Couser Cattle Company, Hosts Farmer Town Hall

Iowa Farm Bureau President Craig Hill and other Iowa agriculture leaders and elected officials are energized by the Trump administration’s renewed pledge for trade and renewable energy, following the first Iowa visit for new U.S. Agriculture Secretary Sonny Perdue.

Perdue toured Farm Bureau member Bill Couser’s farm in Nevada and gave his first farm policy speech Friday morning, to rousing applause by farmers.  Perdue, who was sworn in as U.S. Agriculture Secretary just over a week ago, says the Trump administration will fight to eliminate unfair trade barriers and open new markets for U.S. agricultural commodities.

“What are we going to do about trade? Governor Branstad and I are going to go to China and sell all of the Iowa beef we can,” said Perdue, to an enthusiastic crowd of farmers.  Purdue also said he will be “an unapologetic advocate for trade.  If you grow it, we’ll sell it.”

Perdue also met with Hill and a select group of farm leaders at a town hall meeting following his address, and said the Trump administration will keep their promise to maintain renewable energy targets.  President Hill, a Warren County crop and livestock farmer, says IFBF’s diverse membership will be pleased to hear that the Trump administration sees the value of Iowa agriculture. “We’re so appreciative to have a Secretary of Agriculture with his experience and his philosophy. It really improves the outlook for all of agriculture to have somebody like him advocating for us.”



Online Tool Helps Farmers Target Ideal Alfalfa Feed Value

Relying on calendar date is not the best way to determine when to harvest the first alfalfa crop of the season, due to climatic variations impacting alfalfa growth and development.

A better way to make harvest decisions is the PEAQ method (Predictive Equations for Alfalfa Quality) which takes climate variations into account to roughly estimate the relative feed value (RFV) of standing alfalfa in the field.

“This system provides a quick and easy ballpark estimate of forage quality,” said Brian Lang, field agronomist with Iowa State University Extension and Outreach. “Planning harvest of alfalfa by calendar date doesn’t work to determine forage quality. Instead farmers should pay attention to plant height and maturity to estimate the crop’s relative feed value.”

ISU Extension and Outreach is monitoring alfalfa fields across Iowa using PEAQ and posts readings online.  Obviously farmers monitoring their fields in southern Iowa will reach their target RFV values earlier than those in northern Iowa. But fields in the same region can also show different PEAQ readings relative to variety and response to last season’s management.

“We are trying to create awareness of the growing conditions across the state,” Lang said. “We really want farmers to check their own fields. Even on their own farm they might have three alfalfa fields that will measure differently. This approach helps them know what field to harvest first and when they might want to start that harvest relative to their forage quality needs.”

There is a fact sheet that instructs farmers how to use PEAQ in their own fields. A critical step with the PEAQ method is to understand that readings from the field represent standing crop quality and that those readings need to be adjusted to account for harvest losses. Harvest losses equal about 15 RFV units for haylage and about 25 RFV units for hay. Therefore, if the target for harvest is 150 RFV alfalfa, it is recommended to harvest haylage when PEAQ measurements predict about 165 RFV for haylage and 175 RFV for hay.



Herbicide Research Field Day Showcases Current ISU Research

Iowa State University Agronomy Department Weed Science Project will host a Herbicide Research Program Field Day on June 22 at the Curtiss Farm (2219 520th Avenue) in Ames, Iowa. The field day, which has occurred since 1982, is an event that allows the weed science program at Iowa State to demonstrate its research to the public.

Attendees will have the opportunity to review new herbicides, application techniques and other weed management strategies in corn and soybeans.

“As weeds continue to evolve herbicide resistance, the need to find better management strategies increases,” said Mike Owen, university professor and extension specialist in agronomy and weed science at Iowa State. “We need to continue to work to find solutions to these developing problems. This field day will provide attendees an opportunity to look at what may be those solutions.”

Registration begins at 8:30 a.m. with the program beginning at 9 a.m. and continuing until noon. A field book describing each experiment will be available for a self-guided tour. There is no cost to attend and refreshments will be provided.

All are welcome to attend the event free of charge, with no preregistration required.

Directions to the Curtiss Farm are as follows: Exit U.S. 30 at University Boulevard and turn south to the round-about. Turn right (west) on Oakwood and proceed to the first stop sign which will be a “T” intersection. Turn right (north) on State Street to the Curtiss Farm entrance. Turn left (west) and follow the cinder road to the field day tent.

Contact Owen at 515-294-5936 or mdowen@iastate.edu with any questions.



Iowa’s Best Burger is at Smokin’ Hereford BBQ in Storm Lake

The 2017 Iowa’s Best Burger has been named at Smokin’ Hereford BBQ in Storm Lake, Iowa. The Iowa Cattlemen’s Association (ICA) and the Iowa Beef Industry Council (IBIC) announced the winner on Monday, May 1, during a live broadcast in Storm Lake.

This is the eighth year the two organizations have teamed up to sponsor the Iowa’s Best Burger contest. This year, Iowans submitted more than 9,200 nominations representing nearly 500 restaurants in February and March. Those nominations were used to select the Top Ten restaurants. The Top Ten were independently visited and judged based on the hamburger’s taste, appearance, and proper serving temperature (160 degrees).

“The judges found the burgers at the Smokin’ Hereford were very juicy with outstanding flavor,” comments Brooke German, Director of Marketing for the IBIC. “They also noted that the burger was presented very nicely and cooked to medium doneness as they had requested.”

The restaurant serves The Hereford Burger which is 8 ounces of hand-pattied Hereford beef dressed with their house seasoning, made to order. The burger is cooked over a flame grill and is served with a choice of one side and corn bread. The burger is served with lettuce, tomato, onion and pickle on the side, and served on a toasted bun.

The restaurant owners, Nathan and Nancy Jenson, and Chad and Jennifer Hustedt, opened the restaurant in October of 2015. When the restaurant opened, the menu was limited and has since grown into a more complete menu and now offers caterings. In January of 2016, the decision was made to add a burger special on Friday and Saturday nights. The burger special went over so well, that within one month, the burger was added to the menu.

“They do a tremendous job of helping their customers connect the pasture to plate story by identifying where their beef comes from on each menu,” says Matt Deppe, CEO of the ICA. “Like all of Iowa’s 26,000 beef producers, Seth and Etta Smith are dedicated to producing a safe and wholesome product for this restaurant.”

The Smokin’ Hereford is located at 1605 W. Milwaukee Ave., Storm Lake, IA 50588; look for Smokey the Bull on their sign in front of the restaurant. The hours are Monday – Saturday 11:00 a.m. – 9:00 p.m. and they are closed on Sunday. Reservations are accepted for four or more except for Friday and Saturday evenings after 4:30 p.m. The restaurant has a seating capacity of 123.

The burger starts at $9.99, or for an extra charge it can be customized one of five ways. Extras include: bacon, friend banana pepper, coleslaw, blue cheese or spicy mac & cheese.

“We are ecstatic to be named Iowa’s Best Burger!” says Jennifer. “It’s so rewarding. We have worked so hard to put this all together. Now that it’s a reality, all of that hard work has paid off to become such a great accomplishment.”

On Monday, the restaurant offers a slider special. The sliders are 4 ounces of their Hereford Burger beef with beer-battered fries for $5.99 each or three specialty sliders for $15.99.

Other restaurants that made the Top Ten in addition to the Smokin’ Hereford are (alphabetically): Ankeny Diner, Ankeny; BeerBurger, North Liberty; BW’s Burgers, West Des Moines; Doc’s Stadium and Grill, Jefferson; Down Right Delicious, Clarinda; Elm’s Club, Creston; The Irish Shanti, Elgin; Saucy Focaccia, Cedar Rapids; and Vaughn’s Café & Bakery, Clarinda.

Previous winners in the contest are: 2016 – The Chuckwagon Restaurant, Adair; 2015 – The Cider House, Fairfield; 2014 – Brick City Grill, Ames; 2013 - 61 Chop House Grille, Mediapolis; 2012 - Coon Bowl III, Coon Rapids; 2011 - Rusty Duck, Dexter; and 2010 - Sac County Cattle Company, Sac City.



Record Volume for U.S. Pork Exports in March; Beef Exports Remain Strong

U.S. pork and beef exports capped a strong first quarter with excellent March results that included a new record volume for pork, according to statistics released by USDA and compiled by the U.S. Meat Export Federation (USMEF).

Pork exports reached 227,955 metric tons (mt) in March, up 16 percent year-over-year and topping the previous monthly high set in November 2016. Export value was $586.6 million, up 22 percent. For the first quarter, pork exports were up 17 percent in volume (627,647 mt) and 22 percent in value ($1.58 billion).

March exports accounted for 28 percent of total pork production and 23.3 percent for muscle cuts only, up from 25.4 percent and 22 percent, respectively, last year. First-quarter ratios were also significantly higher at 27.2 percent and 22.6 percent, compared to 23.9 percent and 20 percent in 2016. Export value per hog slaughtered averaged $54.93 in March, up 15 percent year-over-year, while the first-quarter average increased 18 percent to $52.42.

Beef exports totaled 105,310 mt in March, up 18 percent year-over-year, with value increasing 22 percent to $588.2 million. First-quarter beef exports were up 15 percent in volume (292,215 mt) and 19 percent in value ($1.61 billion).

March exports accounted for 12.5 percent of total beef production and just under 10 percent for muscle cuts only, each up slightly from last year. For the first quarter, the percentage of total beef production exported was down slightly from a year ago (12.4 percent vs. 12.5 percent) despite an increase for muscle cuts (9.8 percent vs. 9.4 percent). Export value per head of fed slaughter averaged $270.14 in March, up 11 percent from a year ago, while the first-quarter average increased 10 percent to $267.71 per head.

“Entering 2017 with record-large pork production and an uptick in beef slaughter, we knew this ‘wall of U.S. meat’ presented a challenge for our industry,” said USMEF President and CEO Philip Seng. “So the fact that first-quarter export volumes are higher than a year ago is not surprising, but it’s important to look beyond that – to the higher percentage of production being exported and the strong return on those exports. The U.S. is not just moving more meat internationally because we have more available. Our products are commanding solid prices and winning back market share in many key destinations, even with a strong U.S. dollar and many trade barriers still in place. But our competitors are working every day to reverse this trend, so we must aggressively expand and defend our international customer base.”

Mexico, Korea and South America fuel record volume for pork exports
The red-hot pace for U.S. pork exports to Mexico continued in March, with volume up 34 percent year-over-year to 68,866 mt, and value increasing 47 percent to $127.2 million. For the first quarter, exports to Mexico totaled 206,262 mt (up 29 percent) valued at $371.9 million (up 42 percent). Strong demand from Mexico is especially important for U.S. ham prices, but pork variety meat exports to Mexico also posted a strong first quarter, increasing 14 percent in volume (37,596 mt) and 38 percent in value ($58.1 million).

In leading value market Japan, March exports increased modestly in volume (37,806 mt, up 2 percent) but climbed 12 percent in value to $155.2 million – the highest since October 2014. In the first quarter, export volume to Japan was up 7 percent in volume (101,581 mt) and 13 percent in value ($411.3 million). Chilled pork exports to Japan increased 3 percent to 56,307 metric tons, while value increased 10 percent to $260 million.

Other first-quarter highlights (compared to year-ago levels) for U.S. pork included:
-    Strong variety meat demand in China/Hong Kong helped drive exports to the region 5 percent higher in volume (131,036 mt) and 11 percent higher in value ($258.8 million). While muscle cut exports slowed, variety meat volume climbed 24 percent (to 86,097 mt) while value was up 29 percent to $176.2 million – making an important contribution to per-head value.
-    Since posting a slow start in 2016, pork exports to South Korea have steadily regained momentum as exports totaled 51,158 mt (up 31 percent) valued at $137 million (up 39 percent). Most U.S. pork now enters Korea duty-free under the Korea-U.S. Free Trade Agreement, which has helped boost volumes of raw material for further processing, as well as processed pork products.
-    Another major market rebounding from last year’s slow start is Colombia, where U.S. pork also benefits from lower tariffs secured in a recent free trade agreement. First quarter exports to Colombia doubled from a year ago in both volume (16,532 mt) and value ($36.5 million). Also bolstered by a near-doubling of exports to Chile and Peru, first-quarter pork exports to South America were up 95 percent in volume (23,838 mt) and 94 percent in value ($57 million).
-    In Australia, an important market for U.S. hams and other cuts utilized in further processing, exports increased 38 percent in volume to 20,607 mt, while export value climbed 43 percent to $57.7 million.

Beef exports move higher in Asian and North American markets
March beef exports to Japan increased 41 percent in volume (28,135 mt) and 39 percent in value ($167.7 million). This capped a very strong first quarter in which exports jumped 41 percent (to 74,411 mt) and 42 percent (to $427.3 million), respectively. This included a 55 percent increase in chilled beef volume to 33,366 mt, as U.S. beef captured its highest-ever market share in Japan’s high-value chilled sector.

Coming off a record performance in 2016, beef exports to South Korea posted a very strong first quarter, with volume up 23 percent to 42,551 mt and value increasing 30 percent to $267.5 million. With U.S. beef continuing to gain momentum in Korea’s retail and restaurant sectors, first-quarter chilled beef exports were up 78 percent to 8,508 mt.

Other first-quarter highlights (compared to year-ago levels) for U.S. beef included:
-    Exports to Mexico posted a solid increase in volume (57,057 mt, up 17 percent), while value increased 3 percent to $226.8 million. An important destination for shoulder clods, rounds and other beef end cuts, muscle cut exports to Mexico expanded at an even faster pace, climbing 23 percent in volume (30,015 mt) and 11 percent in value ($175.1 million).
-    Despite a recent slump in the value of the Canadian dollar, beef exports to Canada have rebounded in 2017, with solid increases in both volume (29,909 mt, up 14 percent) and value ($190.5 million, up 19 percent).
-    In Taiwan, where U.S. beef captures more than two-thirds percent of the chilled beef market, exports increased 28 percent in volume to 9,746 mt and 29 percent in value to $85.7 million. This included a 10 percent increase in chilled beef volume to 3,650 mt.
-    Beef exports to South America were down 2 percent in volume (4,919 mt) but increased 16 percent in value ($23 million), bolstered by a strong performance in Colombia and a recent rebound in Peru. This week USDA also confirmed the arrival of the first U.S. beef shipments to Brazil since a BSE-related suspension was imposed more than 13 years ago. The first significant export volumes for Brazil will likely appear in the May USDA data, which will be available in early July.
-    March exports to South Africa (1,107 mt) were the highest since the market opened last year, making it the month’s 10th largest volume destination for U.S. beef. For the first quarter, South Africa ranked 11th at 1,971 mt. Export value was $1.5 million, with most of the volume being beef livers.

Lamb export value highest in 18 months
U.S. lamb exports showed notable improvement in March as volume increased 6 percent from a year ago to 926 mt, while export value reached $2.3 million – up 35 percent and the highest since October 2015.

For the first quarter, lamb exports were still down 26 percent year-over-year in volume (1,986 mt) due to weak variety meat demand, but export value increased 10 percent to just under $5 million. Growth was driven in large part by a strong performance in the Caribbean, where volume increased 17 percent (to 187 mt) and value climbed 34 percent to $1.6 million.



National Biodiesel Board Applauds House Biodiesel Bill That Closes Loophole, Saves Taxpayer Dollars and Creates U.S. Jobs

Today the National Biodiesel Board applauded the introduction in the U.S. House of Representatives of a bipartisan biodiesel tax credit bill that would convert the blender’s credit for biodiesel to a $1-per-gallon production credit for fuels produced in the United States for 2017, 2018, 2019 and 2020. The bill, H.R. 2383, led by U.S. Representatives Kristi Noem (R-S.D.) and Bill Pascrell (D.-N.J.), provides an additional 10-cent-per-gallon credit for small U.S. biodiesel producers. Companion legislation was recently introduced in the U.S. Senate by Senators Chuck Grassley (R-Iowa) and Maria Cantwell (D-Wash.).

“We are thrilled to see momentum building in both chambers of Congress for this important tax reform. It is long overdue to close this loophole and better align the incentive with Congress' intent—to invest American taxpayer dollars to spur job creation here at home. We look forward to working with Congress to move this proposal forward,” said Anne Steckel, vice president of federal affairs at the National Biodiesel Board. After all, the U.S. biodiesel industry supports more than 50,000 jobs.

This bipartisan bill seeks to reinstate the biodiesel and small producers tax credits that expired at the end of 2016, but with a change to who is eligible for the credit. Previously, the tax credit was open to blenders of biodiesel, but this legislation would provide tax credits to U.S. producers instead of blenders. Doing so prevents subsidization of foreign manufacturers.

Taxpayer dollars and U.S. energy policy should be—and typically are—aimed at incentivizing domestic production, not foreign production. The current structure of the biodiesel tax incentive as a blender’s credit increasingly allows foreign producers to access the credit if their fuel is blended in the United States. Importantly, this reform would not block imported biodiesel from entering the U.S. market; in fact, significant imports would likely continue coming to the U.S. and receiving incentives under the RFS and California’s Low Carbon Fuel Standard.

U.S. biodiesel producers just need a level playing field to compete with foreign production. For example, since 2009, the European Union has levied duties on U.S. biodiesel that effectively block U.S. biodiesel from entering the European market. At the same time, U.S. policy is incentivizing European biodiesel shipments to the U.S. by rewarding it with the $1-per-gallon credit. Additionally, Argentinian biodiesel that receives significant incentives under that country’s Differential Export Tax regime is increasingly being shipped to the U.S. market where it also can qualify for the U.S. tax incentive. Without this reform, U.S. tax policy is increasingly creating competitive disparities in which U.S. companies are losing U.S. market share to subsidized foreign production in Europe, Argentina and other nations.

Changing the structure of the tax credit also would save taxpayers millions of dollars. Biodiesel imports to the U.S. have grown sharply in recent years, largely as a result of the tax credit. In 2015 alone, the U.S. Treasury spent more than $600 million on tax credits for imported biodiesel and renewable diesel. Importantly, this fuel often had already received subsidies in its country of origin (Argentina, Indonesia and the European Union, for example).

The Senate version was introduced by U.S. Senators Chuck Grassley (R-Iowa) and Maria Cantwell (D-Wash.), with 14 other original cosponsors, including Pat Roberts (R-Kan.), Heidi Heitkamp (D-N.D.), John Thune (R-S.D.), Sheldon Whitehouse (D-R.I.), Martin Heinrich (D-N.M.), Joni Ernst (R-Iowa), Joe Donnelly (D-Ind.), Roy Blunt (R-Mo.), Mazie Hirono (D-Hawaii), Al Franken (D-Minn.), Patty Murray (D-Wash.), Amy Klobuchar (D-Minn.), Tom Udall (D-N.M.) and Jeanne Shaheen (D-N.H.). The House version was also cosponsored by Rep. Dave Loebsack (R-Iowa).



Dairy Groups Applaud Sen. Johnson's Guest Worker Bill

Individual states will be allowed to tailor a guest worker program that meets their own specific workforce needs under a plan being introduced by U.S. Senator Ron Johnson. The Wisconsin Republican, who chairs the Senate Homeland Security and Governmental Affairs Committee, unveiled the 'State Sponsored Visa Pilot Program Act of 2017' on Wednesday. He said the measure is necessary to help sectors of the economy, such as the dairy industry, by filling jobs positions that are often difficult to place in certain parts of the country.

"We have a shortage of workers in all different areas of the economy. We need to recognize that a one-size-fits-all federal model for visas or guest workers doesn't work," Johnson said. "Let the states manage the visas, allocate them to the industries that need the workers, set prevailing wage rates. I think states would do a better job of protecting their state workers--American workers--as well as making sure their industries have the people they need to be able to grow."

Rep. Ken Buck from Colorado plans to introduce an identical version of the bill in the House of Representatives.

Meanwhile, the American Dairy Coalition applauded the effort. CEO Laurie Fischer says policies like this are desperately needed to secure workers to milk cows and harvest crops.

"For years, farmers have tried to hire domestic workers, but they are simply not attracted to these jobs, even though starting pay has increased to $13.00 to $15.00 an hour plus benefit packages," Fischer said. "It is critical for the dairy industry to have a means to utilize a legal workforce since current immigration visa programs are not available for dairy farms."

Last month, Congressman Sean Duffy introduced a bill that would expand the H-2A worker program to benefit Wisconsin's dairy farmers. His measure is called the Defending the Agricultural Industry's Requirements Year-round Act of 2017 or ''DAIRY Act,' which modifies the existing immigration program to allow dairy workers to hold a visa for 18 months, thus giving state dairy producers stability within their workforce.



Livestock Risk Protection Insurance for Lambs Available

Sales of Livestock Risk Protection insurance for lambs (LRP-Lamb) resumed on April 24. LRP-Lamb has not been available for about one year while revisions were made to the program.

LRP-Lamb is a single-peril price insurance policy offered by the U.S. Department of Agriculture's Risk Management Agency (RMA) and is sold by livestock insurance agents (who also sell crop insurance). A list of approved agents is available on the RMA website at http://bit.ly/LRPapprovedagents.

"LRP-Lamb was designed to protect lamb producers from declines in lamb prices,"

says Tim Petry, North Dakota State University Extension Service livestock economist. "It is available to producers in North Dakota, Minnesota, Montana, South Dakota and other lamb-producing states."

Lamb producers who are considering purchasing LRP first must submit a one-time application for approval. Once a policy is approved, producers are eligible to purchase specific coverage endorsements (SCE). Each SCE will cover up to 2,000 head of lambs weighing 50 to 150 pounds. The annual limit per crop year, which is July 1 through June 30, is 28,000 head.

LRP-Lamb will be available once a week on Monday from 10 a.m. to 7 p.m. Central time.

Coverage prices, ranging from 80 to 95 percent of the lambs' expected ending value, will be available on the RMA website at http://bit.ly/LRPcoverageprices.

Premiums, which must be paid to the insurance agent before a SCE is submitted, are subsidized 13 percent by the USDA and also will be shown on the same RMA website. Beginning farmers may receive a 23 percent subsidy.

Lamb producers may select coverage prices for 13-, 26- or 39-week insurance periods, which should correspond to the actual marketing date for lambs. Because lambs must not be sold until 30 days prior to the maturity date, selecting the appropriate policy length is important, Petry says.

On the maturity date, if the actual ending value is below the coverage price, an indemnity for the difference will be paid to the producer. The actual ending price reported for the week of April 21 was $140.66 per hundredweight (cwt).

On April 24, the 95 percent coverage price for the 26-week contract was $136.525/cwt, with a subsidized premium of $5.15/cwt. and a maturity date of Oct. 23, 2017.

The American Sheep Industry Association has a LRP online education course available at http://bit.ly/LRPcourse. It was designed for producers and insurance agents to learn more about LRP and to assist with the decision to purchase insurance.



Time to Act
Stephen R Koontz, Ag and Resource Econ, Colorado State University

The fed cattle and feeder cattle markets have continued their impressive rallies that took off last week.  Live cattle futures increased $15/cwt and better than $30/cwt since the beginning of April.  Feeder cattle futures $20/cwt and $30/cwt since April 1.  Do these rallies have legs or, in other words, are there underlying fundamentals that support these prices?

The fundamentals are there but are short term and will not likely persist through the summer.  I do not believe these opportunities will continue until cow-calf enterprises have the chance to market the current calf crop on video auctions.  My recommendation is to establish price floor protection now or as soon as the rally slows.  If you didn't learn how to trade options over the last two years then there's no time like the present.

What's the fundamentals behind the rally?  In short, Memorial Day.  The grilling season is upon retailers and aggressive meat as well as beef purchases have been seen over the last two weeks.  Fed cattle marketings have been very strong and needed to happen with very short showlist inventories.  The opposite side of the same coin that drove prices so low and lower in fall of 2015 is now driving them high and higher in spring of 2017.  Marketings have been strong, market-ready inventories low, and slaughter weights continue to drop - more animals are needed to secure the tonnage.

All this will likely not persist into August.  Slaughter weights show a normal seasonal increase beginning in May and continuing through October.  Cattle on feed placements were heavy in March and are expected to be so again in April.  And packer margins have been very tough in 2017.  As soon as beef supplies in the marketing pipeline are replenished the market will likely soften and become focused on larger summer supplies.

Late summer and early fall live cattle and feeder cattle futures contracts are trading at a respectable discount to the nearby contracts but all are a good $15-$20/cwt better than two weeks ago.  I believe it's time to get some price floor insurance purchased on fall calves in particular.  October feeder cattle options are very pricy at-the-money after all it's a long time until October.  But a Put with a $130 strike price is trading around $2.35/cwt.  That's $1,175 without commissions to buy a floor at $130.  More liquid options are at higher strike prices and have higher premiums.

What do the technicals say?  It's hard to draw a believable trend line with the speed of this rally so selling at resistance is the reasonable alternative.  Live cattle show firm long-term resistance at slightly better than $140.  There are little fundamentals to support that high of a fed cattle price.  Feeder cattle show similar resistance at $165 and the August contract is close to that now.  Again, I believe it is time to act.  A price floor at $130 plus a reasonable Colorado basis on a 5-6 cwt steer calf of $20/cwt is a cash price floor of $150/cwt.  Compared with last fall, that's a number that hard to argue with.



Texas Tech Researchers Earn Grant to Study Stress of Weaning Pigs

Though it’s not always seen, stress affects almost every mammal on the planet, whether it walks on four legs or two, whether it speaks or not. And stressors come in all shapes and sizes.

For young piglets, one of the biggest stressors is weaning, which brings about a litany of social, environmental and nutritional stresses. And the stronger those stressors on a pig, the more they can restrict its ability to grow and develop at a normal pace by exaggerating the animal’s immune responses.

A team of researchers in the Texas Tech University College of Agricultural Sciences & Natural Resources, however, is working to reduce the effects of those stressors on piglets by showing how the anti-inflammatory drug cortisol and its analogs can regulate a pig’s immune system, allowing it to grow normally.

To that end, assistant professor Anoosh Rakhshandeh and his collaborators, professor John McGlone and research assistant professor Arlene Garcia-Marquez, all from the Department of Animal and Food Sciences, received a grant for $296,000 from the United States Department of Agriculture’s National Institute of Food and Agriculture (NIFA). The grant was made possible through the NIFA’s capacity-building grants for Non-Land Grant Colleges of Agriculture (NLGCA) program, which was authorized by the 2014 farm bill.

“Weaning is the most stressful period in a pig’s life, which results in a post-weaning growth lag and production of less resilient pigs,” Rakhshandeh said. “During this period, piglets are exposed to immunological, environmental and nutritional stresses. Our funded research proposal focuses on the use of cortisol analogs (CA) as an alternative to antibiotics. We hypothesized that cortisol analogs mitigate the negative effects of immunological stress and improve digestive physiology and overall productivity and robustness of the newly weaned pigs. In addition, we will explore the underlying mechanism through which cortisol analogs improve the productivity and welfare of piglets.”

The goal is to minimize the impact stress has on newly weaned pigs, which could lead to the production of a more robust and resilient pig. Researchers will evaluate the effects of CA on weaning pigs who are fed an antibiotic-free diet under controlled conditions, identify the mechanisms that allow CA to improve growth performance and determine whether it’s best to administer the drug through injection or through ingestion of water or food.

Efforts in these research laboratories have already resulted in a significant increase in growth rates and improved feed efficiency for pigs when treated with CA.

“We initially thought that the problem with stress is that there is too much cortisol produced,” McGlone said. “When we blocked cortisol, the pigs did not do as well. So we took the opposite approach, even though it may be counterintuitive. When we gave a cortisol-like drug at the time of stress, pig health and growth improved. This provides a novel way to improve pig health and welfare without the use of antibiotics.”

The project will then look at expanding CA treatment to the swine industry by repeating these controlled experiments in an industrial setting.



Rising Demand, Evolving Markets Fueling Optimism and Change in Feed Business

A prolonged period of low feed prices combined with steadily growing demand for animal protein continues to fuel profitability and optimism for U.S. feed mill operators, according to a new report from CoBank. However, changes in the industry are spurring the need for newer, larger facilities and forcing the closure of older mills that lack the newest technology.

The abundant and affordable supply of grains and oilseeds has led to a 19 percent increase in total domestic feed usage since 2012, when use had plummeted to its lowest level since 1995. With many mills operating at capacity, they are now gearing up for the next surge in demand, due to come from the swelling U.S. hog population.

“Many feed mills are investing in upgrades to aging facilities or replacing them with new facilities that boost capacity and efficiency to meet the growing demand for livestock feed,” said Tanner Ehmke, CoBank senior economist, grains, oilseeds and ethanol, and farm supply. “There are several reasons for the huge investments being made, but expansion in the hog sector is the leading factor,” added Ehmke.

As the level of feed demand from the animal production sector has expanded and evolved, so has the nature of that demand. It’s become considerably more diverse and specialized. Livestock and poultry operators are increasingly calling for custom feed formulations with micro-ingredients. New feed mills are more frequently focusing on serving single specie markets with fewer general purpose toll mills.

“Large bulk orders are increasingly replacing smaller orders and bagged feed,” said Ehmke. “There’s also a greater tendency for new mills to offer animal nutrition expertise and consulting services, along with formulations requiring veterinarian feed directives (VFDs),” said Ehmke.

Rising labor costs and a tightening labor market are also driving feed mills to pursue new efficiencies through technology and automation. Consequently, the total number of feed mills continues to decline as older mills are consolidated.

Additionally, the new regulatory environment highlighted by the Food Safety Modernization Act (FSMA) is expected to hasten consolidation within the industry with bigger, technology-driven mills that meet the more stringent requirements.

The costs associated with FSMA compliance may lead some mill operators to exit the business, while others will merge, consolidate or invest in new procedures to ensure compliance.

“Despite these challenges, the outlook for the feed business remains strong over the next few years, particularly for those mills positioned to invest in facility enhancements,” said Ehmke. “Meat packers are making plans to increase slaughter capacity, while profitability at the producer and integrator level is triggering production expansion. That adds up to a positive outlook for improved feed demand, particularly over the next two years before animal production is expected to stabilize.”