Monday June 19 Ag News

Ricketts, Local Leaders Cheer Economic Impact of Costco’s First Poultry Processing Facility

Today, Governor Pete Ricketts and local leaders celebrated another clear marker of economic momentum for the State of Nebraska and the Fremont region with Lincoln Premium Poultry’s groundbreaking for Costco’s first-ever poultry processing plant, hatchery, and feed mill facility.

Projected to open in April 2019, the $300-million project is expected to generate an overall economic impact of $1.2 billion annually, create approximately 800 new jobs, and connect Costco to a dedicated network of producers in eastern Nebraska.

“This is a monumental day for Costco, Fremont, and the State of Nebraska,” said Governor Pete Ricketts.  “Costco has a reputation for being a great corporate citizen, and today’s groundbreaking highlights what’s to come: good paying jobs, more opportunity for our local farmers, and the all-important expansion of value-added agriculture in our state.”

The Lincoln Premium Poultry facility, will utilize the latest technology to process an expected 2 million chickens a week for sale in Costco stores.

“We’re thrilled Costco chose to partner with our community and region to expand its business model and launch this new endeavor here,” said Cecilia Harry, Executive Director of the Greater Fremont Development Council.  “We celebrate the new jobs and investment and the impact this will have on our agricultural industries – whether its helping area farmers diversify their businesses, encouraging the next generation of farmers, or growing firms that will support facility operations.”

Lincoln Premium Poultry joins a critical mass of agricultural-based companies that call Nebraska and the Greater Omaha region home.  Statewide, one-in-four jobs is related to agriculture.  Throughout the region, livestock and food processing industries employ nearly 20,000.

“We are eager to continue our work with the community, officials at all levels, our trusted construction partners, and with everyone else involved in order to make this business something that Fremont, Nebraska and Costco can truly be proud to be part of,” said Jonathan Luz, Director of Strategic Planning and Development for Costco.

Over the past year, the retail giant has worked with a multitude of partners to locate the facility in the Fremont area.  Those partners include the Greater Fremont Development Council, City of Fremont, Greater Omaha Chamber Economic Development Partnership, Nebraska Department of Economic Development, Nebraska Department of Agriculture, and Alliance for the Future of Agriculture in Nebraska.

“This facility is going to be state-of-the-art, using the most advanced technology in the world, adding a broad array of jobs to the region’s workforce,” said Randy Thelen, Senior Vice President-Economic Development for the Greater Omaha Chamber.  “Our community is gaining a new economic engine whose positive impact will extend throughout the region.”

“This project will have a significant economic impact on the region and the state as a whole,” said Courtney Dentlinger, Director of Nebraska Department of Economic Development.  “In addition to the substantial capital investment, Costco will create 800 new jobs, including jobs in information technology, mechanics, and management.  The Department was pleased to partner with a number of organizations to help the company choose Nebraska after its highly competitive site selection process.”

Complementing the region’s existing industries, the farmer network needed for a facility of this scale brings an opportunity for farmers to diversify their portfolios and expand existing operations.

“This facility will create an opportunity for diversification for farmers in the Greater Fremont area.  The producers who choose to build poultry houses will have an opportunity to add another income source to their operation.  All row crop farmers will have a new market for corn and soybeans which will be utilized in the poultry rations,” said Nebraska Department of Agriculture Director Greg Ibach.  “Costco has also indicated a willingness to be a great partner for Nebraska as a whole, going above and beyond all environmental requirements and offering new and innovative contractual relationships that will be revolutionary for the poultry industry.”

“This is an exciting time to be in Fremont and eastern Nebraska,” said Fremont Mayor Scott Getzschman.  “We are already experiencing economic growth because of the project, and we are excited for that growth to continue as the Costco facilities are built and begin their operations.”



USDA FUNDING AVAILABLE TO HELP CONTROL EROSION ON CROPLAND.

            The USDA Natural Resources Conservation Service (NRCS) has funding available to help Nebraska’s farmers control erosion on their cropland. This funding is available through a special Ephemeral Gully Control Initiative under the Environmental Quality Incentives Program. Eligible producers have until July 21 to apply.

            According to NRCS, recipients of USDA program benefits – like federal crop insurance subsidies and conservation program payments – are required to control erosion on all cropland determined to be highly erodible. The funding available through this special initiative can help farmers meet that requirement.

            Nebraska State Conservationist Craig Derickson said, “Conservation practices such as cover crops and grassed waterways are good solutions for controlling ephemeral gullies, which is required by conservation compliance provisions. Conservation buffers are effective in controlling erosion from both water and wind and help protect the soil, improve air and water quality, enhance fish and wildlife habitat, and beautify the landscape.

According to NRCS, over the last couple of decades, there has been a continual decrease in grassed waterways due largely to the adoption of large-scale farming equipment and conservation cropping systems that rely heavily on herbicides to control weeds. On some fields, this has led to increased erosion and ephemeral gullies.

Derickson said, “Ephemeral gullies are those rough spots where water concentrates and causes soil to wash away, creating small ditches. While the damage to cropland appears to be small, if not controlled, the negative impacts like loss of inputs, decreased soil health and yields can be significant. Plus, it can cause farmers to be out of compliance with USDA’s Food Security Act requirements.

“I want to encourage producers who have ephemeral erosion on their cropland to take this opportunity to address this issue. Our conservationists are available to work with farmers one-on-one to develop a custom conservation plan to help keep farmers in compliance with USDA Farm Bill requirements and keep their farm ground healthy and productive.”

For more information, and to apply for funding through this special initiative, visit NRCS in your local USDA Service Center before July 21.



HERBICIDE CHALLENGES WHEN REPLANTING FOLLOWING BAD WEATHER
Bruce Anderson, NE Extension Forage Speciaist

               Crop disasters like hail, flash floods, and tornadoes can happen any time.  When it strikes, replanting options may be needed.

               After weather disasters strike, replanting a grain crop may be nearly impossible due to herbicide carryover or the late planting date.  As a result, annual emergency forage crops might be your only choice.

               Unfortunately, previous herbicide use may cause even more problems with forages.  Many pre-emerge herbicides for corn and milo will injure teff, pearl millet and foxtail millet.  But, sudangrass, forage sorghum, and sorghum-sudan hybrids will tolerate moderate levels of atrazine; and safened seed can be used if several other herbicides have been applied.  These sorghums also tolerate most herbicides labeled for use with grain sorghum.  Another possible emergency forage crop is short-season corn as silage or as late season pasture, especially if corn herbicides eliminate other possibilities.

               Soybean herbicides that have residual soil activity can cause even bigger problems for replanting to forages.  All summer grasses are sensitive to most soybean herbicides.  Sunflowers for silage and replanted soybeans for hay or silage are among the few alternatives compatible with soybean herbicide carryover.

               Even when you find out that an annual forage will grow, sometimes you may not be allowed to feed it legally.  Many row crop herbicides have specific restrictions or at least lack approval for use with forages.  So check out your options closely and carefully before making your selection.

               Nobody likes to replant, but if you must, select a forage that is compatible with your herbicides and livestock.



May Milk Production in the United States up 1.8 Percent

Milk production in the United States during May totaled 18.9 billion pounds, up 1.8 percent from May 2016.  Production per cow in the United States averaged 2,016 pounds for May, 19 pounds above May 2016.  The number of milk cows on farms in the United States was 9.39 million head, 71,000 head more than May 2016, and 2,000 head more than April 2017.

IOWA Milk production in Iowa during May 2017 totaled 448 million pounds, up 1 percent from the previous May according to the latest USDA, National Agricultural Statistics Service – Milk Production report. The average number of milk cows during May, at 217,000 head, was the same as last month and 4,000 more than last year. Monthly production per cow averaged 2,065 pounds, down 10 pounds from last May.



Heat Mitigation Awareness and Strategies for Beef Producers

Cattle producers should take notice of temperatures increasing above normal highs for this time of year. After a cool spring that may feel good to some, many cattle that have not adapted to warmer weather still have remnants of a winter hair coat. To those animals, the increasing temperature will be an unwelcome change.

Temperatures are expected to reach mid- to upper 90’s across Iowa this week. Although cattle should be able to tolerate this heat, it's a good reminder that more is yet to come and a cool spring may turn to a hot, dry summer.

"This early heat event is a good opportunity to make sure that mitigation strategies will be functional for the rest of the summer," said Dr. Grant Dewell, extension beef veterinarian with Iowa State University.  "Pay close attention to cattle this week as the rapid change in temperature may catch some at-risk cattle (cattle at end of feeding period, cattle with previous respiratory disease and cattle that have not shed out) dealing with excessive heat stress."
The Iowa Beef Center website has information and details on proper heat abatement strategies such as shade and sprinklers.

Check out these additional resources:
    Heat Stress in Beef Cattle 4-page publication by Dewell, available as free download - https://store.extension.iastate.edu/Product/14166
    USDA ARS 7-day heat stress forecast - https://www.ars.usda.gov/plains-area/clay-center-ne/marc/docs/heat-stress/cattle-heat-stress-forecast/. 

    USDA smartphone app provides forecasts of weather conditions that can trigger heat stress in cattle. Free download from Google Play (Android) and the App Store (Apple devices)



Learn About Leasing Arrangements at Farmland Leasing Meetings

Iowa State University Extension and Outreach will host multiple farmland leasing meetings during July and August at various times and locations throughout Iowa. The annual meetings are offered to address questions that land owners, tenants or other interested individuals have about leasing farmland.farm leasing meeting

Core components of the program will include land values and cash rent trends, cost of production, methods for determining a rental rate, legal updates regarding leases and communication between tenants or landlords. Additional topics vary by location.

“More than half of Iowa’s farmland is rented, and strong landlord/tenant relationships are important for the long-term viability of Iowa’s valuable farmland,” said Alejandro Plastina, assistant professor of economics and extension economist at Iowa State University. “Cash rent values across the state of Iowa have declined for the fourth consecutive year, dropping by 4.8 percent from 2016, an accumulated 18.9 percent decline since 2013. Variations in the survey results occur at the county and district level. Farmland leasing meetings provide an outlet for further understanding of these results and more.”

The three-hour workshop is designed to assist landowners, farm tenants and other agri-business professionals with current issues related to farmland ownership, management and leasing arrangements. Attendees will gain a better understanding of current cash rental rate surveys and factors driving next year’s rents such as market trends and input costs. Comments from past participants highlight the value of the materials provided and depth of information covered in the short program.

A 100-page workbook is compiled for the programs, with resources regarding land leasing agreements such as surveys, sample written lease agreements and termination forms, along with many other publications.

Attend a local meeting
The leasing meetings being held across Iowa are facilitated by farm management specialists with ISU Extension and Outreach. An online listing of County Extension Offices hosting the meetings is available with additional information available through the Ag Decision Maker website.

Thursday, July 27, 2017
    6:00 PM - 8:00 PM  Farmland Leasing Meeting   Carroll /Carroll County

Tuesday, August 1, 2017
    6:30 PM - 9:00 PM  Farmland Leasing Meeting   Oakland/East Pottawattamie County

Wednesday, August 2, 2017
    9:00 AM - 11:30 AM  Farmland Leasing Meeting   Red Oak/Montgomery County
    6:30 PM - 9:00 PM  Farmland Leasing Meeting   Greenfield/Adair County

Thursday, August 3, 2017
    9:00 AM - 11:30 AM  Farmland Leasing Meeting   Malvern/Mills County

Friday, August 4, 2017
    9:00 AM - 11:30 AM  Farmland Leasing Meeting   Council Bluffs/West Pottawattamie County
    1:30 PM - 4:00 PM  Farmland Leasing Meeting   Council Bluffs/West Pottawattamie County

Wednesday, August 9, 2017
    6:30 PM - 9:00 PM  Farmland Leasing Meeting   Atlantic/Cass County

Thursday, August 10, 2017
    9:00 AM - 11:30 AM  Farmland Leasing Meeting   Shenandoah/Page County

Wednesday, August 23, 2017
    6:30 PM - 8:30 PM  SW Iowa Beginning Farmers   Red Oak/Montgomery County

For registration information, contact an ISU Extension and Outreach county office. Pre-registration is encouraged as an additional $5 fee may be added if registering less than two calendar days before the meeting date.



2017 World Pork Expo: One for the Record Books

Seeking out new ideas, information and innovations, more than 20,000 pork producers and ag professionals from throughout the world attended the 29th World Pork Expo, June 7-9, in Des Moines. Presented by the National Pork Producers Council (NPPC), the 2017 Expo hosted more than 1,000 international guests from nearly 40 countries.

Highlights included the world’s largest pork-specific trade show, a wide variety of educational seminars and another barn-busting Junior National swine show. Iowa’s summer weather provided a pleasant backdrop for the allied industry hospitality tents that lined the streets of the Iowa State Fairgrounds, as well as a relaxing evening for MusicFest. As always, there was plenty of mouthwatering pork served, including more than 10,000 free lunches from the Big Grill — prepared by Iowa’s Tama County Pork Producers Association members — throughout the three days.

“World Pork Expo gives producers the opportunity to see and touch the newest products and technologies for their pork businesses,” says Ken Maschhoff, NPPC president and Illinois pork producer. “It’s a place for producers to interact with each other and share ideas. It also gives employees at all levels a chance to learn, deepen their connection to pork production and have some fun.”

Innovation takes center stage
Expo presents the world’s largest pork-specific trade show, and this year’s event included more than 450 commercial exhibits from companies throughout the world. Another 53 allied industry hospitality tents offered companies and producers the opportunity to discuss products, services and technologies that can help produce high-quality pork efficiently, responsibly and successfully.

Steady traffic flow within the trade show left exhibitors with a positive impression of this year’s Expo. “What’s new? What makes your product different? and What’s on the horizon?” were common inquiries from producers walking the 320,000 square feet of exhibit space.

Today’s Expo visitors are more technology savvy and data-driven, points out Eric Holtkamp, chief executive officer of Control Tech, whose company has exhibited for more than a decade.  “For both new and older barns, producers want to monitor the facilities from their cell phones. They want to track factors like feed, water, temperature and then get immediate alerts if there’s an issue,” he notes.

This type of technology also makes data collection and analysis easier and more useful. “Previously, when customers looked at building controls, purchasing decisions were more cost-driven. Today, they’re more feature-driven; producers are looking for specific functionality,” Holtkamp says.

Interactions between vendors and producer customers are key drivers for a successful Expo. “It was a fantastic week. We had good traffic and customer interactions,” says Matt Kocher, marketing director for Ceva Animal Health, a first-time exhibitor. “We’re here to help producers solve challenges and advance their businesses, and the conversations we had were forward-looking and constructive.”

Kocher particularly likes Expo’s atmosphere, which combines a learning environment with some fellowship, and that it presents a broad view of the industry all in one place. “Naturally, pork business owners attend Expo, but you’ll also find managers at various levels and barn workers. It gives you a perspective on what they do and what they need. Expo cuts pretty broad and deep,” he adds.

Junior National sets another record
To accommodate its ever-expanding presence, the World Pork Expo Junior National began on Monday, June 5, with events filling out the week. Hosted by the National Junior Swine Association and Team Purebred, the Junior National set another record for the number of participants, with 1,050 youth exhibitors from 32 states. Considered one of the nation’s premiere youth swine shows, the Junior National combines educational activities such as a Skillathon and Youth PQA Plus® certification, with swine judging, live-hog competitions and showmanship.

The youth show filled the swine and sheep barns with 2,500 hogs exhibited this year, up slightly from 2016’s record setting 2,351 hogs. Juniors also were eligible to join other swine breeders to exhibit their pigs in the open show on Friday, June 9, with more than 1,000 crossbred and purebred boars and gilts. Breeding stock was presented for sale on Saturday morning, including Berkshire, Chester White, Duroc, Hampshire, Landrace, Poland China, Spotted, Yorkshire and crossbred swine. Results for the open shows and sales for National Swine Registry breeds can be found online at their blog.

Education and networking round out the events
Educational and business seminars filled out the schedule for both Wednesday, June 7, and Thursday, June 8. In all, pork producers and their employees could select from 18 free seminars, where they could interact with a range of pork experts and get answers to their questions.

This year’s business seminars addressed topics from consumer impressions of pork production to data analysis, piglet care and nutrition management. Meanwhile, the PORK Academy seminars provided insights into pork quality research, sow housing tools and third-party audits. Of particular note was an in-depth discussion of the Secure Pork Supply Plan and strategies to maintain business continuity should the United States ever encounter a market-limiting foreign animal disease. The producer program’s focus is to be proactive and prepared.

Market outlook and weather presentations, as well as discussions on export and international trade issues, completed the educational events and provided producers with information to use for long-term planning.

While World Pork Expo provides pork professionals with a wealth of networking opportunities, MusicFest has evolved into a relaxing evening of fun and fellowship. Free music and plenty of pork are the featured festivities along Grand Avenue of the Iowa State Fairgrounds.

“World Pork Expo is always surprising. This year’s event had more exhibit space, more hogs, more hospitality tents and more new products and technology,” NPPC’s Maschhoff says. “It’s a dynamic show, and a great place to learn what’s going on politically, globally and among fellow producers that could impact your business. It’s truly an impressive event.”

Looking ahead, 2018 will mark World Pork Expo’s 30th Anniversary. NPPC has selected June 6-8, 2018, as the dates for next year’s show at the Iowa State Fairgrounds in Des Moines. Remember, it’s never too early to start making plans to attend the 2018 World Pork Expo.



Applied Reproductive Strategies in Beef Cattle Workshop Set for late August in Kansas

Registration is now open for the 2017 Applied Reproductive Strategies in Beef Cattle Workshop set for Aug. 29-30 at the Hilton Garden Inn and Conference Center in Manhattan, Kan. The program is targeted toward commercial and seedstock producers, the artificial insemination and allied industries and veterinarians interested in using or improving implementation of reproductive management tools and associated genetic tools.

Kansas State University extension beef specialist Sandy Johnson is host for this annual meeting.

“Cow-calf producers know that reproduction is the most economically important trait,” Johnson said. “Thus, reproductive management choices and implementation are critical to profitability.”

Johnson also is a member of the Beef Reproduction Task Force, which includes reproductive physiologists from land grant universities who work together on reproductive management education. Garland Dahlke of Iowa Beef Center is an Iowa State University representative on the task force. The 2017 ARSBC program is provided through a joint effort of the Task Force and K-State Research and Extension.

This year's workshop contains segments focused on foundational principles, practical application of systems, nutritional components, bulls, systems and health and leveraging genetics. In total, this year’s program will bring 22 nationally recognized academics, industry personnel and producers to serve as speakers. Beyond attending the formal presentations, attendees will have opportunities to network with these speakers during breaks, meals and an evening discussion session. Graduate students with current research related to reproductive management will be invited to share posters of their current work.

The two-day program will run from 8 a.m. to 5 p.m. on Tuesday, Aug. 29 and 8 a.m. to noon, Wednesday, Aug. 30. After a steak dinner at the Stanley Stout Center Tuesday evening, discussion groups will continue to address questions from the day. An optional lab session will be held Wednesday afternoon.

Lab topics will include semen quality and handling, collecting and storing samples for DNA analysis, what happens after the DNA is collected, reproductive tract scoring and blood pregnancy tests and a look at technology for ultrasound diagnosis of pregnancy (not a how-to training). A variety of other tools and technology to help with AI programs will also be part of the lab session.

Together with the national Beef Reproduction Leadership Team, the Beef Reproduction Task Force works to promote wider adoption of reproductive technologies among cow-calf producers, educate cow-calf producers in management considerations that will increase the likelihood of successful AI breeding, and educate producers in marketing options to capture benefits that result from use of improved reproductive technologies.

The group’s mission is to optimize the productivity and improve the profitability of cow-calf operations by facilitating the adoption of cost-effective, applied reproductive technologies. The goal is to educate beef cattle producers on sustainable reproductive management systems to maintain U.S. leadership and competitiveness in the world beef market.

Those with questions on the workshop content can email Johnson at sandyj@ksu.edu . Detailed information on registration, lodging and sponsorship opportunities is available on the workshop website.



U.S. Ethanol Organizations Applaud Mexico's Adoption of E10

The Mexican Energy Regulatory Commission (CRE) announced recently a change that will increase the maximum amount of ethanol that can be blended in Mexican gas supplies from 5.8 percent to 10 percent, except in the cities of Monterrey, Guadalajara and Mexico City.

The announcement modifies the Mexican Official Standard NOM 016-CRE-2016 regarding the quality specifications for fuels by increasing the maximum volume content of anhydrous ethanol as an oxygenate in regular and premium gasolines in Mexico.

This change comes as part of ongoing energy reforms in Mexico and follows input from stakeholders in the government, private sector, research scientists and social interest groups.

Mexico’s regulators moved in August 2016 to allow ethanol in local fuel supplies, except in its three largest metropolitan areas. In its decision, the CRE recognized the benefits of E10, which will help demonstrate that a 10 percent ethanol blend can positively contribute to air quality improvement and reduced cancer risk throughout the country. The Mexican Institute of Petroleum is also studying the merits of E10 blends.

The decision moves Mexico toward global standards in the use of renewable and sustainable energy resources like ethanol that offer environmental, economic, social and public health advantages over other additives and oxygenates for gasoline.

"We are pleased to see this decision, which is the culmination of significant work by Mexican authorities and industry as they continue to diversify and improve their fuel supplies," said Tom Sleight, U.S. Grains Council (USGC) President and CEO. "We appreciate the opportunity to work with Mexican leaders as they seek to build their own biofuels industry and offer cleaner fuels for the Mexican people."

“We’re strongly encouraged by this announcement, which clears the way for further adoption of ethanol into the Mexican fuel supply,” said Growth Energy CEO Emily Skor. “By doing so, Mexican consumers will see how embracing ethanol will reduce harmful emissions, help contribute to a cleaner environment, and will create a stronger rural sector.”

“We are greatly encouraged by Mexico’s recent decision to allow the sale and use of 10 percent ethanol (E10) as part of its fuel market reform efforts,” said Renewable Fuels Association President and CEO Bob Dinneen. “By permitting the use of E10 in its fuel market, Mexico will have blend levels consistent with fuel sold and used throughout the United States and Canada. Not only will Mexico be able to achieve greater octane and oxygenate benefits from using E10, it will help to drive trade and investment in its ethanol fuel sector. We hope the Mexican Institute of Petroleum will soon conclude its study, and are confident the study will affirm the air quality benefits of the use of E10 in the country’s most populous cities, thereby allowing it to be used in all regions of the country.”



U.S. Ethanol Organizations Applaud Mexico's Adoption Of E10

The Mexican Energy Regulatory Commission (CRE) announced recently a change that will increase the maximum amount of ethanol that can be blended in Mexican gas supplies from 5.8 percent to 10 percent, except in the cities of Monterrey, Guadalajara and Mexico City.

The announcement modifies the Mexican Official Standard NOM 016-CRE-2016 regarding the quality specifications for fuels by increasing the maximum volume content of anhydrous ethanol as an oxygenate in regular and premium gasolines in Mexico.

This change comes as part of ongoing energy reforms in Mexico and follows input from stakeholders in the government, private sector, research scientists and social interest groups.

Mexico’s regulators moved in August 2016 to allow ethanol in local fuel supplies, except in its three largest metropolitan areas. In its decision, the CRE recognized the benefits of E10, which will help demonstrate that a 10 percent ethanol blend can positively contribute to air quality improvement and reduced cancer risk throughout the country. The Mexican Institute of Petroleum is also studying the merits of E10 blends.

The decision moves Mexico toward global standards in the use of renewable and sustainable energy resources like ethanol that offer environmental, economic, social and public health advantages over other additives and oxygenates for gasoline.

"We are pleased to see this decision, which is the culmination of significant work by Mexican authorities and industry as they continue to diversify and improve their fuel supplies," said Tom Sleight, U.S. Grains Council (USGC) President and CEO. "We appreciate the opportunity to work with Mexican leaders as they seek to build their own biofuels industry and offer cleaner fuels for the Mexican people."

“We’re strongly encouraged by this announcement, which clears the way for further adoption of ethanol into the Mexican fuel supply,” said Growth Energy CEO Emily Skor. “By doing so, Mexican consumers will see how embracing ethanol will reduce harmful emissions, help contribute to a cleaner environment, and will create a stronger rural sector.”

“We are greatly encouraged by Mexico’s recent decision to allow the sale and use of 10 percent ethanol (E10) as part of its fuel market reform efforts,” said Renewable Fuels Association President and CEO Bob Dinneen. "By permitting the use of E10 in its fuel market, Mexico will have blend levels consistent with fuel sold and used throughout the United States and Canada. Not only will Mexico be able to achieve greater octane and oxygenate benefits from using E10, it will help to drive trade and investment in its ethanol fuel sector. We hope the Mexican Institute of Petroleum will soon conclude its study, and are confident the study will affirm the air quality benefits of the use of E10 in the country’s most populous cities, thereby allowing it to be used in all regions of the country.”



Increased Planning and Strategic Engagement Critical to Future Ethanol Growth
   
Using ethanol personally, promoting the fuel to the public and supporting ethanol-friendly legislation have been bread-and-butter activities for corn farmers and their respective associations for more than two decades. Although this is not likely to change in the months and years ahead, challenges and pressures on the ethanol front make strategic thinking and demand-driving initiatives increasingly critical.

State and National Corn Grower staff just concluded two days of meetings to conduct an in-depth, state of the ethanol industry analysis in Bloomington, Illinois at the offices of Illinois Corn. The goal was to discuss and review the ethanol plan constructed by the group last November.  As market conditions and the political environment change, the plan will continue to evolve.

During last week's meeting, participants heard from various speakers and received updates on market conditions, legislative and regulatory issues and projects. Speakers included Marty Ruikka with ProExporter, who reviewed economic conditions and forecasts along with Scott Richman with Informa Economics who provided an update on ethanol-related analyses being conducted on behalf of NCGA and the U.S. Grains Council.

"We have to recognize that the current yield trend requires us (farmers and related industry) to always be engaged in capital maintenance and marketing mode. Organizations like NCGA, U.S. Grains Council and the U.S. Meat Export Federation have to be super aggressive to keep up with yield growth," according to Ruikka of PRX. "Maintaining our markets and working constantly to assure incremental growth in corn use is therefore critical."

The corn team reviewed ethanol production, demand and volume obligation scenarios under the Renewable Fuels Standard.  Several key components of a successful strategy for corn were discussed, including:
-    Growing ethanol consumption in the domestic market through expanded use of higher ethanol blends.
-    Expanding relationships and communication with automakers as older vehicles in the nation's auto fleet are replaced.
-    Maintaining an up-to-date strategy that reflects the rapid change in the auto and fuel industry.
-    Assuring a united approach with consistent messaging from corn farmers and other ethanol supporters.
-    Growth of ethanol exports as nations work to meet their commitments to reducing Green House Gas emissions to address climate change.
-    Keeping farmers informed and activated in a strategy of unrelenting engagement.