Monday May 1 Ag News

Monsanto Announces 'Farm Mom of the Year' Finalists

Monsanto and the American Agri-Women named five regional winners of the America's Farmers Mom of the Year program. These regional winners represent the important and continually evolving role that women play in American farms, families, rural communities and the agriculture industry.

America has the opportunity to vote for this year's National Mom of the Year by visiting AmericasFarmers.com through May 10.

The regional winners were nominated by those close to them who see their commitment to their families, communities and farms each and every day. To honor these efforts, each of the five regional winners will receive $2,000 to direct to an eligible nonprofit organization of her choice in her community, as well as $3,000 for her personal use.

This year's finalists include:
•Northwest: Nancy Kirkholm, Homer, Neb.
•Midwest: Shari Sell-Bakker, Dike, Iowa
•Southwest: Becca Ferry, Brigham City, Utah
•Northeast: Susan Brocksmith, Vincennes, Ind.
•Southeast: Cala Tabb, Eupora, Miss.

"Every year, I look forward to reading through the entries, and am astounded by the incredible women that are nominated," said Tracy Mueller, Monsanto's Marketing Communications Manager. "This year was no exception. The five regional winners' strength and determination is seen throughout all aspects of their lives, and we are honored to recognize them for their contributions."

Since the program began in 2010, the America's Farmers Mom of the Year program has recognized 40 exceptional individuals. In 2017, the program is focusing even more on the communities in which these women live and work by providing financial support to eligible nonprofit organizations these farm moms are passionate about.



Green Plains Reports First Quarter 2017 Financial Results

Green Plains Inc. (NASDAQ:GPRE) today announced financial results for the first quarter of 2017. Net loss attributable to the company was $3.6 million, or $(0.09) per diluted share, for the first quarter of 2017 compared with net loss of $24.1 million, or $(0.63) per diluted share, for the same period in 2016. Revenues were $887.7 million for the first quarter of 2017 compared with $749.2 million for the same period last year.

"We reported a nearly $50 million improvement in EBITDA year over year despite a seasonally soft first quarter," said Todd Becker, president and chief executive officer. "We had solid earnings contributions from our non-ethanol businesses during the quarter, with both Green Plains Cattle and Fleischmann's Vinegar reporting record quarters. We continue to diversify our revenue and income streams with a more balanced portfolio of businesses to minimize the impact of a soft ethanol quarter."

During the first quarter, Green Plains produced 326.4 million gallons of ethanol compared with 247.0 million gallons for the same period in 2016. The consolidated ethanol crush margin was $37.7 million, or $0.12 per gallon, for the first quarter of 2017 compared with $4.1 million, or $0.02 per gallon, for the same period in 2016. The consolidated ethanol crush margin is the ethanol production segment's operating income before depreciation and amortization, which includes corn oil production, plus intercompany storage, transportation and other fees, net of related expenses.

"U.S. ethanol exports have started 2017 stronger than any year on record and we have continued to focus on international markets, exporting approximately 20% of our production in the first quarter," Becker added. "Global demand for each of the products we produce, whether ethanol, corn oil or distillers grains, is strong and we are well positioned to benefit from these opportunities."

"We believe that 2017 could develop into a favorable year for ethanol margins as the forward curve is stronger going into the summer driving season compared with 2016. Our focus is to drive free cash flow in the current environment and further strengthen our balance sheet in 2017."

Results of Operations
Consolidated revenues increased $138.5 million for the three months ended March 31, 2017, compared with the same period in 2016. Revenues were impacted by an increase in ethanol, corn oil and cattle volumes sold, plus the addition of Fleischmann's Vinegar during the fourth quarter of 2016. This was partially offset by a decrease in grain trading activity volumes and lower average realized prices for grain and cattle.

Operating income increased $40.0 million for the three months ended March 31, 2017, compared with the same period last year primarily due to increased margins on ethanol and cattle production. Interest expense increased $7.7 million for the three months ended March 31, 2017, compared with the same period in 2016, primarily due to higher average debt outstanding and borrowing costs. Income tax benefit was $2.4 million for the three months ended March 31, 2017, compared with $14.9 million for the same period in 2016.

Earnings before interest, income taxes, depreciation and amortization (EBITDA) for the first quarter of 2017 was $43.8 million compared with $(5.8) million for the same period last year.



Nebraska Farmers Union Submits Comments to Federal Trade Commission Opposing China National Chemical Corporation’s proposed purchase of Syngenta AG

Nebraska Farmers Union submitted written comments to the Federal Trade Commission opposing China National Chemical Corporation’s (ChemChina) proposed purchase of Syngenta AG for four basic reasons:

1.      Based on decades of market consolidation and concentration issues, NeFU knows this merger will mean fewer choices in the ag supply marketplace for farmers to choose from, and higher prices for products purchased.  More mergers mean more market failures and more misery for farmers in the days to come. 

2.      Nebraska Farmers Union also strongly opposes the ChemChina proposed purchase of Syngenta AG because it makes an already non-competitive ag supply marketplace that is currently in the process of imploding even less competitive, more concentrated, and more expensive for the families that produce crops.

3.      If ChemChina’s proposed $43 billion purchase of Syngenta is approved, one more major state owned company will use their unfair economic, legal, and regulatory advantages to distort and control traditional marketplace competition between companies.  Conventional companies cannot compete against state owned companies over time.  Our regulatory system must adjust to properly regulate the far reaching threat state owned companies bring to our marketplace. 

4.      When our government allows foreign governments to buy private companies of this magnitude and importance, we believe it does so at the expense of our own national security interests.  NeFU strongly feels it was a monumental mistake for the European Union and United States to grant antitrust approval for ChemChina’s proposed acquisition of Syngenta AG.  While our organization is alarmed at the emergence of state owned companies and the failure of regulatory bodies to fully comprehend the far reaching implications of their impacts on traditional markets, an equally disturbing prospect is the use of state owned companies by countries to achieve foreign policy objectives.

“It is not in the interest of American farmers or our nation as a whole to allow China’s $43 billion purchase of Syngenta.  This is the largest Chinese purchase of any foreign firm in history, giving them control of the world’s largest manufacturer and distributor of agrichemicals and pesticides,” said Nebraska Farmers Union President John Hansen.  “History teaches us that the Chinese government uses its economic leverage from deals like this to accomplish their government objectives.”



Simpler to Ask Plant and Insect Diagnostic Clinic to Identify Pests and Problems

It is now simpler for Iowans to submit insects and plants for identification and diseases for diagnosis. In an effort to streamline processes, the Iowa State University Plant and Insect Diagnostic Clinic has updated and simplified submission forms for receiving requests for diagnosis for plant problems and insect, plant or mushroom identification.

The “Plant Nematode Sample Submission Form” (PIDC 0032) and “Sample Submission Form” (PIDC 0045) are now available through the ISU Extension Store and through the Clinic website (http://www.ipm.iastate.edu/ipm/info/contact). These two forms replace six forms that were previously available for submitting samples.

“These are the forms that must accompany any samples sent to the clinic,” said Laura Iles, director and extension entomologist with the Plant and Insect Diagnostic Clinic. “They provide the information we need to diagnose the samples sent in by our clients and we wanted to make sure they were as user-friendly as possible.”

Clients who are submitting samples to the clinic will also find a change in billing policy. Money no longer needs to be submitted with the sample; clients will be billed at the time of diagnosis.

The Plant and Insect Diagnostic Clinic provides diagnosis of plant problems and the identification of insects and weeds from the field, garden and home. In operation for over 50 years, the clinic helps Iowans diagnose and identify about 1,500 samples each year.

“We are the first step people should take before attempting to manage any plant or insect problem,” Iles said. “A proper initial diagnosis will insure that the management practices employed will work. We try to emphasize that rather than guessing what the problem might be and applying a pesticide, you should send us a sample so we can properly diagnose the problem. We can then provide you with the best management information for your specific plant or insect problem. Applying unnecessary pesticides will not solve your problem and leads to negative environmental and human health impacts.” 



NORTHEY: 2017 IOWA LEGISLATIVE WRAP-UP

Iowa Secretary of Agriculture Bill Northey today shared key agriculture provisions passed by the Iowa legislature during the 2017 legislative session.  This includes additional funding to support water quality and soil conservation efforts, funding for additional foreign animal disease response planning, continued funding for the Renewable Fuels Infrastructure Program.

“I was encouraged by the strong support for a number of key ag issues this past legislative session, including conservation efforts, animal disease response planning and renewable fuels.  I clearly understand the difficult budget situation they faced and I greatly appreciate their efforts to provide funding for these important priorities,” Northey said.

The Legislature approved $10.575 million to support the Iowa Water Quality Initiative in the next fiscal year, which starts July 1.  This is a $975,000 increase in funding from the current fiscal year.  The legislation now goes to Governor Branstad and must be signed before going into effect.

This included $3 million for water quality from the general fund (SF 510), $2.375 from the Environment First Fund (SF 510) and $5.2 million from the Rebuild Iowa Infrastructure Fund (RIIF budget, HF 643).

The funds will allow the Iowa Department of Agriculture and Land Stewardship to continue to offer cost share statewide to farmers trying new water quality practices, continue work in targeted watersheds to achieve measurable water quality improvements, expand urban conservation efforts, and develop new programs to help engage all Iowans in improving water quality.

The Department received $8.325 million for soil conservation cost share.  Of that amount, $450,000 is directed to the hungry canyon’s account, and $40,000 to the loess hill’s alliance account.  The remaining $7.835 million for the Department’s cost share program is an increase from the $6.75 million the Department received for cost share this year.  In 2016, the state’s investment in this program generated $8.676 million in matching funds from Iowa farmers and land owners for soil conservation practices.

The Iowa legislature also provided $1.875 million to support the closure of Agriculture Drainage Wells (ADWs).  Of the 300 registered ADWs in Iowa, 18 remain to be closed at an estimated cost of $7.5 million.  This level of funding over each of the next four years would allow all of the remaining ADWs to be closed.

“Legislators made significant investments in conservation and water quality efforts again this session despite the challenging budget situation. I am extremely encouraged the annual funding for water quality continues to grow and remain committed to working with legislators to finalize an ongoing water quality funding stream,” Northey said.

The legislature also provided $100,000 to aid in preparing for a foreign animal disease outbreak, such as Foot and Mouth Disease or Highly Pathogenic Avian Influenza (HPAI).  The funds will increase the capacity of the animal industry bureau and provide resources to better equip and prepare for a future animal disease response.

The Department also received $3 million through the Rebuild Iowa Infrastructure Fund to continue the Iowa Renewable Fuels Infrastructure Program.  This program offers cost-share grants for the installation of E85 dispensers, blender pumps, biodiesel dispensers, and biodiesel storage facilities.  Since 2007, the Renewable Fuels Infrastructure Program has provided more than $33 million to fuel retailers for infrastructure that give customers additional access to renewable fuels.  This includes 309 projects installing E85 or ethanol blender pumps and 413 projects installing biodiesel pumps or storage tanks.

Legislation changing some annual licenses from the Department to two-year licenses to increase efficiency was proposed by the Department and passed.  Licenses that were part of the legislation include commercial feed, egg handlers, and poultry dealers.  The legislation is still awaiting the Governor’s signature.

Finally, the list of noxious weeds that is included in Iowa weed law and Iowa seed law was updated to include Palmer Amaranth in response to the recent discovery of the weed in Iowa.  The Department is also planning to hold stakeholder meetings later this year to discuss possible updates to the noxious weed law that may provide additional tools as farmers and communities respond to noxious weeds.



NFU Calls on FTC to Oppose ChemChina Acquisition of Syngenta

Continuing a long tradition of advocating for competitive marketplaces for family farmers and ranchers, National Farmers Union (NFU) today urged the Federal Trade Commission (FTC) to oppose the proposed China National Chemical Corp’s (ChemChina) acquisition of Syngenta AG.

In public comments to FTC Secretary Donald S. Clark, NFU President Roger Johnson asserted that the deal further consolidates the highly globalized agricultural inputs sector. This decreases competition amongst the few companies that dominate the marketplace, limiting choice and raising prices for family farmers.

“ChemChina’s proposed takeover of Syngenta would disrupt trade flows and accelerate the international consolidation of food and agribusiness industries,” said Johnson. “We urge you to stand up for family farmers and ranchers and oppose the merger.”

Johnson noted that the ChemChina-Syngenta merger occurs against a complex industry backdrop, marked by highly concentrated agricultural biotechnology and seed markets. The global agricultural input marketplace is in the midst of a third wave of consolidation, as the Syngenta acquisition occurs alongside the proposed Monsanto acquisition by Bayer and a merger between Dow and DuPont.

“For 30 years, major agribusiness companies have been acquiring small companies, consolidating the marketplace and increasing their market share,” said Johnson. “Because these companies hold so much market power, family farmers have had less choice, less competition, and higher prices for their inputs.”

Johnson also noted that because ChemChina is owned by the Chinese government, the post-merged ChemChina-Syngenta would have a significant edge over its rivals in accessing the Chinese market. China’s seed market is the second largest in the world, and the largest international seed companies only capture 20 percent of the Chinese market.

“The Chinese government provides a host of benefits to its domestic enterprises that make them more competitive than international firms that operate without state subsidies,” said Johnson. “These firms receive below-market interest rate loans from state-owned banks and often the debt from these loans is forgiven or significantly written down. China’s policy to ensure food self-sufficiency provides an unfair subsidy for domestic food processing, meatpacking and agricultural production.”

Johnson pointed to the Chinese meat processing company Shuanghui (now known as WH Group) purchase of Smithfield Foods in 2013. Just two years later, Smithfield’s exports to China rose 50 percent and accounted for 97 percent of all U.S. pork exports to China.

“The ChemChina-Syngenta merger creates trade barriers and uncertainty in international markets. And alarmingly for American farmers, it further consolidates the international agricultural inputs sector. The FTC should reject ChemChina’s proposed purchase of Syngenta,” Johnson concluded.



USDA Fats and Oils: Oilseed Crushings, Production, Consumption and Stocks

Soybeans crushed for crude oil was 4.80 million tons (160 million bushels) in March 2017, compared to 4.53 million tons (151 million bushels) in February 2017 and 4.99 million tons (166 million bushels) in March 2016. Crude oil produced was 1.86 billion pounds up 6 percent from February 2017 but down 4 percent from March 2016. Soybean once refined oil production at 1.40 billion pounds during March 2017 increased 10 percent from February 2017 but decreased slightly from March 2016.

Canola seeds crushed for crude oil was 185 thousand tons in March 2017, compared to 167 thousand tons in February 2017 and 150 thousand tons in March 2016. Canola crude oil produced was 156 million pounds up 12 percent from February 2017 and up 27 percent from March 2016. Canola once refined oil production at 123 million pounds during March 2017 was up 5 percent from February 2017 and up slightly from March 2016. Cottonseed once refined oil production at 49.2 million pounds during March 2017 was up 11 percent from February 2017 but down 7 percent from March 2016.

Edible tallow production was 79.3 million pounds during March 2017, up 10 percent from February 2017 and up 27 percent from March 2016. Inedible tallow production was 322 million pounds during March 2017, down 4 percent from February 2017 but up 12 percent from March 2016. Technical tallow production was 83 million pounds during March 2017, down 28 percent from February 2017 and down 11 percent from March 2016. Choice white grease production at 110 million pounds during March 2017 decreased 9 percent from February 2017 and decreased 2 percent from March 2016.



USDA Flour Milling Products

All wheat ground for flour during the first quarter 2017 was 224 million bushels, down 4 percent from the fourth quarter 2016 grind of 233 million bushels and down slightly from the first quarter 2016 grind of 224 million bushels. First quarter 2017 total flour production was 105 million hundredweight, down 3 percent from the fourth quarter 2016 but up 1 percent from the first quarter 2016. Whole wheat flour production at 5.81 million hundredweight during the first quarter 2017 accounted for 6 percent of the total flour production. Millfeed production from wheat in the first quarter 2017 was 1.59 million tons. The daily 24-hour milling capacity of wheat flour during the first quarter 2017 was 1.62 million hundredweight.

Durum wheat ground for flour and semolina production during the first quarter of 2017 totaled 17.0 million bushels, down 7 percent from the fourth quarter 2016 but up 2 percent from the first quarter 2016. First quarter 2017 durum flour and semolina production was 8.08 million hundredweight, down 6 percent from the fourth quarter 2016 but up 5 percent from the first quarter 2016. Whole wheat durum flour and semolina production was 169 thousand hundredweight, down 8 percent from 184 thousand hundredweight in the fourth quarter 2016 and down 19 percent from 209 thousand hundredweight from the first quarter 2016. First quarter durum wheat millfeed production was 120 thousand tons and the daily 24-hour milling capacity for durum and semolina production was 127 thousand hundredweight.

Rye ground for flour during the first quarter of 2017 was 458 thousand bushels, down 8 percent from the fourth quarter 2016 and down 16 percent from the first quarter 2016. Rye flour production during the first quarter of 2017 was 222 thousand hundredweight, compared to 238 thousand hundredweight in the previous quarter and 267 thousand hundredweight in the same quarter for the previous year. The daily 24-hour milling capacity for rye milling was 9.39 thousand hundredweight for the first quarter 2017.



USDA Announces Commodity Credit Corporation Lending Rates for May 2017

The U.S. Department of Agriculture’s (USDA) Commodity Credit Corporation today announced interest rates for May 2017. The Commodity Credit Corporation borrowing rate-based charge for May is 1.000 percent, unchanged from 1.000 percent in April.

The interest rate for crop year commodity loans less than one year disbursed during May is 2.000 percent, unchanged from 2.000 percent in April.

Interest rates for Farm Storage Facility Loans approved for May are as follows, 1.500 percent with three-year loan terms, down from 1.625 percent in April; 1.875 percent with five-year loan terms, down from 2.000 percent in April; 2.125 percent with seven-year loan terms, down from 2.250 percent in April; 2.375 percent with 10-year loan terms, down from 2.500 percent in April and; 2.375 percent with 12-year loan terms, down from 2.500 percent in April.



Farm Bureau Marks National Small Business Week with Opening of $145K Rural Entrepreneurship Challenge

The American Farm Bureau Federation is opening online applications for its fourth Rural Entrepreneurship Challenge today, to coincide with National Small Business Week (April 30 – May 6). Entrepreneurs will compete for $145,000 in startup funds.

The competition provides an opportunity for individuals to showcase ideas and business innovations that benefit rural regions of the United States. It is the first national rural business competition focused exclusively on innovative entrepreneurs working on food and agriculture businesses.

Competitors are invited to submit for-profit business ideas related to food and agriculture online starting May 1 at www.strongruralamerica.com/challenge.

Businesses related to food and agriculture include farms or ranches, value-added food processing, food hubs, community-supported agriculture programs, farm-to-table restaurants, farmers’ markets and craft beverage startups. Businesses can also support food and agriculture such as crop scouting, agritourism, ag advertising agencies and ag technology companies.

“Rural entrepreneurs typically face hurdles that make it challenging to develop successful businesses, including lack of capital, business networks and business training,” said AFBF President Zippy Duvall. “Through the challenge, we’re helping food and agricultural entrepreneurs take their businesses to the next level.”

Owners of all types of businesses across the food and agriculture supply chain are encouraged to enter the competition. Applications, which include a business plan, video pitch and photo, must be submitted online by June 30. Judges will review the applications and provide feedback to the participants.

The top 10 teams, to be announced in October, will be offered the opportunity to pitch to multimillion dollar investors, in addition to education about venture capital and expanding their businesses.

New this year, six best-in-show winners will each be awarded $10,000 in startup funds in the categories below.....
  - Best Farm Startup – farms, ranches, hydroponics, aquaponics, greenhouse production, forestry, etc.
  - Best Agritourism Startup – farm-to-school programs, pumpkin festivals, farm stays, etc.
  - Best Farm-to-Table Startup – CSAs, food hubs, farmers’ markets
  - Best Ag Tech & Support Services Startup – hardware, software and support services (marketing programs, scouting services and other services targeting farmers)
  - Best Craft Beverage Startup – including breweries, wineries, cideries and distilleries
  - Best Local Product Startup – food and non-food products

The final four teams will compete in a live competition at AFBF’s 99th Annual Convention in Nashville on Jan. 7 to win:
-    Farm Bureau Entrepreneur of the Year award and $30,000 (chosen by judges)
-    People’s Choice award and $25,000 (chosen by public vote)
-    First runner-up prize, $15,000
-    Second runner-up prize, $15,000

The Entrepreneur of the Year award and the People’s Choice award will be awarded to two different teams. The team that wins the Entrepreneur of the Year award will not be eligible for the People’s Choice Award. The competition timeline, detailed eligibility guidelines and profiles of past Challenge winners are available at www.strongruralamerica.com/challenge.



Global Pork Quarterly Q2 2017: Favorable Global Pork Market to Continue into Q3

The Rabobank RaboResearch Food and Agribusiness analysts find the global pork market is relatively stable, with rising supply from the Americas easily absorbed in the main import markets in Asia, resulting in a steady development of the Rabobank Five-Nation Hog Price Index.

Continuing strong Asian imports are supporting pork prices across the globe, with the supply volume in each region determining the actual level. This is according to the Rabobank Global Pork Quarterly Q2.

“The overall outlook is positive right now,” says Justin Sherrard, Global Strategist Animal Protein at Rabobank. “The demand market will continue throughout Q2, supporting margins along the supply chain.”

Highlights from the Pork Quarterly Q2 2017 include:

China: production relocation continues
The steady, regulatory driven relocation of pork production will support good price levels and stabilize imports in the coming months. Local supply will start to recover in Q3, with investments of recent years coming on-stream and reaching their potential.

EU: elevated prices due to pressured supply
The European pig market is booming, with rapidly rising prices due to pressured supply. This situation will continue towards summer, with record piglet prices during Q1. Exports remain the wild card for the market’s price top, with high prices limiting the competitive position and resulting returns.

U.S.: export to determine price level
The forecast 4 percent increase in pork production in 2017 is the driving force in the US pork industry. With consumption moving to record levels, exports will determine the final price level. Current low prices are supportive and also challenge supply from the main export competitor, the EU.

Brazil: limited impact of scandal on exports
Brazil is steadily growing its position in pork export markets, with rising volumes flowing into all main destinations, especially China. The recent meat scandal has had little, if any, impact on export volumes and related prices.

The rise of pork concepts
“Over the last decade, pork production systems have diversified in many countries, with a commodity focus making way for more specialized production.” says Justin Sherrard.  The report provides an analysis of the development of pork concepts and their implications for the supply chain going forward.

Volume and price drivers are changing
The global pork industry was relatively straightforward for many years, i.e. produce as much pork as possible and sell it to the highest bidder globally. Productivity, volume, and price of an increasingly ‘lean’ product were the key variables. This resulted in an interchangeable commodity product and growing competition.

This traditional production approach is, however, changing, in response to some consumers’ concerns around animal welfare, human health, and the environment. In addition, some farmers were not happy with the volume and price ‘squeeze’. Furthermore, food safety scandals increased retail and foodservice demand for improved product tracking & tracing. This is not only observed in the developed world, but—due to social media—also increasingly in the cities in the developing world.

Pork concepts are emerging
These factors resulted in the development of new production systems, or concepts. Concepts differ from traditional production systems and each other, with specific requirements regarding animal health, human health/healthy eating, food safety, medicine use, etc., or are produced for a specific retailer/foodservice supplier. Initiators are farmers looking for a steadier and (hopefully) a higher margin, slaughterhouses safeguarding sales channels, or retailers setting up dedicated supply chains to have 100% tracking & tracing or for specific niches.



CWT ASSISTS WITH 494,000 POUNDS OF CHEESE EXPORT SALES

Cooperatives Working Together (CWT) has accepted 4 requests for export assistance from member cooperatives that have contracts to sell 493,836 pounds (224 metric tons) of Cheddar and Monterey Jack cheese to customers in Asia. 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 29.658 million pounds of American-type cheeses, and 1.427 million pounds of butter (82% milkfat) to 14 countries on four continents. The sales are the equivalent of 305.859 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.



Ag Secretary Perdue Moves to Make School Meals Great Again

U.S. Secretary of Agriculture Sonny Perdue today announced that the U.S. Department of Agriculture (USDA) will provide greater flexibility in nutrition requirements for school meal programs in order to make food choices both healthful and appealing to students.  Perdue made the announcement during a visit to Catoctin Elementary School in Leesburg, Virginia to mark School Nutrition Employee Week.  Perdue signed a proclamation which begins the process of restoring local control of guidelines on whole grains, sodium, and milk.  Perdue was joined by Sen. Pat Roberts (KS), Chairman of the Senate Committee on Agriculture, Nutrition, and Forestry, and Patricia Montague, CEO of the School Nutrition Association.

“This announcement is the result of years of feedback from students, schools, and food service experts about the challenges they are facing in meeting the final regulations for school meals,” Perdue said.  “If kids aren't eating the food, and it’s ending up in the trash, they aren't getting any nutrition – thus undermining the intent of the program.”

"I commend Secretary Perdue for taking this important step,” said Montague. “We have been wanting flexibility so that schools can serve meals that are both nutritious and palatable. We don't want kids wasting their meals by throwing them away. Some of our schools are actually using that food waste as compost. That shouldn't be happening."

Schools have been facing increasing fiscal burdens as they attempt to adhere to existing, stringent nutrition requirements.  According to USDA figures, school food requirements cost school districts and states an additional $1.22 billion in Fiscal Year 2015.  At the same time costs are going up, most states are reporting that they’ve seen a decrease in student participation in school lunches, as nation-wide about one million students choose not to have a school lunch each day.  This impacts schools in two ways: The decline in school lunch participation means reduced revenue to schools while they simultaneously are encountering increased costs.

“I was talking to some folks in Washington about this, and they said that the current program is working.  ‘How do you know?’ I asked.  They said it’s because 99 percent of schools are at least partially compliant.  Well, only in Washington can that be considered proof that the system is working as it was intended,” Perdue said.  “A perfect example is in the south, where the schools want to serve grits.  But the whole grain variety has little black flakes in it, and the kids won’t eat it.  The school is compliant with the whole grain requirements, but no one is eating the grits.  That doesn’t make any sense.”

The specific flexibilities are:

Whole grains:
        Schools are experiencing challenges in finding the full range of products they need and that their students enjoy in whole grain-rich form. They need continued flexibility in meeting the whole grain requirements for school meals.
        USDA will allow states to grant exemptions to schools experiencing hardship in serving 100 percent of grain products as whole-grain rich for School Year 2017-2018.  USDA will take all necessary regulatory actions to implement a long-term solution.

Sodium:
        For School Years 2017-2018 through 2020, schools will not be required to meet Sodium Target 2. Instead, schools that meet Sodium Target 1 will be considered compliant.
        The time frame will provide schools and the school nutrition industry with the certainty and predictability they need to make appropriate plans for creating foods with the appropriate amount of sodium.  During this period, USDA will take all necessary regulatory actions to implement a long-term solution.
        USDA will dedicate significant resources to providing technical assistance to schools as they continue to develop menus that are low in sodium and appealing to students.

Milk:
        Milk is a key component of school meals, meaning schools must have more options for students who select milk as part of their lunch or breakfast.
        Perdue will direct USDA to begin the regulatory process for schools to serve 1 percent flavored milk through the school meals programs.  USDA will seek to publish an interim rule as soon as possible to effect the change in milk policy.

“I’ve got 14 grandchildren, and there is no way that I would propose something if I didn’t think it was good, healthful, and the right thing to do,” Perdue said.  “And here’s the thing about local control: it means that this new flexibility will give schools and states the option of doing what we’re laying out here today.  These are not mandates on schools.”

Perdue lauded the efforts of the nation’s food service staff in serving healthful, appealing meals and underscored USDA’s commitment to help them overcome any remaining challenges they face in meeting the nutrition standards.

“The hard work and dedication of the people who prepare nutritious meals for our children should serve as an example to all, and we will continue to support them,” Perdue said.  “We also have a responsibility to our shareholders and our customers – the American taxpayers – to provide our school children with healthful and nutritious meals in the most efficient and cost effective way possible.”



MONSANTO’S NEMASTRIKETM TECHNOLOGY APPROVED BY EPA

Monsanto Company (NYSE: MON) announced today that the U.S. EPA issued registration for tioxazafen, which is branded as NemaStrikeTM Technology. This approval will enable farmers to realize the nematode control benefits of the technology in 2018, pending state approvals.

NemaStrike Technology, a nematicide that will be offered as part of Acceleron® Seed Applied Solutions, will offer a novel mode of action that stays in the root zone where nematodes attack. NemaStrike Technology will provide broad-spectrum control of plant parasitic nematodes and consistent yield protection performance in corn, soybeans, and cotton.

“This blockbuster technology will be a game-changing addition to our seed applied solutions portfolio by providing a novel solution to a yield robbing pest,” said Brett Begemann, Monsanto President and Chief Operating Officer. “We work to provide farmers with highly effective and easy-to-use management tools to protect the health and potential of their crops. In 2018, NemaStrike Technology will provide breakthrough yield protection technology to farmers across the United States.”

Plant parasitic nematodes are microscopic roundworms in the soil that steal corn, soybean, and cotton yields by feeding on plant roots, facilitating bacterial and fungal infections, and spreading viruses. Nematode damage is often mistaken as other issues in the field, so growers do not always recognize they have a problem. However, EPA has stated that plant parasitic nematodes cause an estimated 14 percent loss in agriculture production worldwide, with $80-100 billion worth of crop losses every year globally.*

Over the last three years in Monsanto product development field trials, NemaStrike Technology provided a yield protection performance advantage over the competitive standard of 7 bushels per acre with a 73 percent positive response rate in corn, 3 bushels per acre with a 68 percent positive response rate in soybeans, and 80 lbs. lint per acre with an 86 percent positive response rate in cotton (results varied based on nematode pressure in each field).

“Nematodes are a real concern, and farmers may be significantly underestimating the damage nematodes are causing to their crops,” said Jared Thomas, Monsanto North America seed applied solutions portfolio manager. “Monsanto offers a variety of seed applied solutions today, and we’re always working to develop new options for farmers. We’re focused on helping farmers protect the potential of their crops with tools that can fit into their overall strategy for managing pests.”  



Beef Producers Gather for “Keep Calves Healthy” Meeting

Beef cattle producers gathered in Oklahoma City, Oklahoma, recently for a Keep Calves Healthy meeting sponsored by Boehringer Ingelheim (BI). Producers had the opportunity to hear from industry experts on important issues and the latest ways to keep their calves healthy and improve herd performance.

Presenters included:
    Dr. Mike Apley, DVM, PhD, Kansas State University
    Dr. Bob Smith, DVM, MS, Stillwater, Oklahoma
    Dr. John Davidson, DVM, DABVP, senior professional services veterinarian with BI

One of the hottest topics facing the industry today is antibiotic stewardship. Dr. Apley discussed the important role antibiotics will play in the future of protecting cattle health. “It’s crucial that we use our antibiotics in a very targeted manner, with clear reasons why we are doing so, and not out of habit or convenience,” said Dr. Apley.

He emphasized resistance challenges in both human and veterinary medicine. “We have a real obligation to be good stewards of antibiotics. We’re already good stewards of our animals and we don’t want to see them suffer or get sick. Genetics, nutrition and vaccination are key to keeping our animals healthy. It helps our businesses stay economically viable, so we must use antibiotic resources wisely.”

Basing decisions on the best scientific research was the key takeaway from Dr. Smith. “Disease is expensive. It costs us in terms of having to buy medicine, death loss and reduced performance,” he explained. Dr. Smith stressed that disease prevention is not going to occur just through medicine and vaccination, but it also requires a combination of animal health practices, keeping good records and using animal health products judiciously. “Animals are providing protein to our consumers, and it’s our responsibility to provide good care for our animals. We need to do the right thing all the time. We have a responsibility to provide the safest and most wholesome food we can.”

Dr. Davidson reviewed ways producers can maximize health and performance of their herds to help build profit, specifically through preventive medicine. “The keys to an effective health program are efficacious vaccines, good nutrition and an effective parasite control program,” he said. Dr. Davidson also discussed how proper vaccination can decrease the chance of having to treat sick animals later. “There is increasing pressure to reduce antibiotics usage in animal agriculture. We can do that by focusing on our prevention methods.”

Early in a calf’s life is a critical time for disease prevention and takes careful planning and management. Keep Calves Healthy is a philosophy that embodies the goal of every cattle producer - if you keep your calves healthy, you’re setting your operation up for success from the start.



Bayer Reports Higher Quarterly Sales, Net Income

The Bayer Group got off to a very successful start to 2017 and generated strong sales and earnings growth in the first quarter. CEO Werner Baumann said when he presented the interim report for the first quarter last week, Consumer Health, Crop Science and Animal Health registered increases in sales.

Sales increased by 11.7 percent to EUR 13,244 million (Q1 2016: EUR 11,854 million) in the first quarter. Adjusted for currency and portfolio effects (Fx & portfolio adj.), sales advanced by 9.4 percent. Sales of the Life Science businesses amounted to EUR 9,680 million, up by 4.9 percent (Fx & portfolio adj.) year on year. Group EBITDA before special items improved by 14.9 percent to EUR 3,893 million (Q1 2016: EUR 3,387 million). EBIT climbed by a substantial 34.3 percent to EUR 3,116 million (Q1 2016: EUR 2,320 million) after special charges of EUR 85 million (Q1 2016: EUR 272 million).

These mainly resulted from expenses related to efficiency improvement programs, impairment losses on intangible assets, and costs in connection with the agreed acquisition of Monsanto. EBIT before special items moved ahead by 23.5 percent to EUR 3,201 million (Q1 2016: EUR 2,592 million). Net income climbed by 37.9 percent to EUR 2,083 million (Q1 2016: EUR 1,511 million), and core earnings per share from continuing operations by 11.5 percent to EUR 2.62 (Q1 2016: EUR 2.35).

Sales of the agriculture business increased by 3.2 percent (Fx & portfolio adj.) to EUR 3,120 million (Q1 2016: EUR 2,936 million). "Crop Science benefited primarily from encouraging performance in North America," Baumann said. Sales in that region grew by 8.9 percent (Fx adj.). Business development was also positive in Europe/Middle East/ Africa (Fx adj.: plus 2.0 percent) and in Asia/Pacific (Fx adj.: plus 2.9 percent), while sales in Latin America declined by 9.8 percent (Fx adj.).

Meanwhile Seeds (which also includes the traits business) rose by 8.0 percent (Fx and portfolio adj.). At Crop Protection, gains were primarily recorded at SeedGrowth (seed treatment products) and Herbicides, which posted increases of 7.1 percent and 5.3 percent (both Fx and portfolio adj.), respectively. Business at Insecticides expanded by 3.9 percent (Fx and portfolio adj.), while sales at Fungicides were 6.2 percent lower (Fx and portfolio adj.) than in the prior-year quarter. Sales growth of 20.5 percent (Fx and portfolio adj.) at Environmental Science was based on the delivery of products to the company that acquired the consumer business in October 2016.