Wednesday June 21 Ag News

USDA Drought Monitor Offers a Way to Report Impacts

The U.S. Drought Monitor's reporting feature offers producers an opportunity to submit drought impact and condition reports

The USDA, in partnership with the National Oceanic and Atmospheric Administration and the University of Nebraska-Lincoln, produced the U.S. Drought Monitor to include a reporting feature that allows producers to report local drought impacts and conditions.

The report allows producers to:
- Provide a written description of drought impacts on livelihood, activities, etc.
- Select categories to show losses and gains as a result of the drought
- Report on the duration of drought event
- Select affected places -- geographic areas ranging from an entire state to a small area within a state
- Submit images that document the drought and its impact
- Provide contact information (includes an option to keep information confidential).

The reporting tool for producers to record the effects of the drought can be accessed at the following link: droughtreporter.unl.edu/submitreport/.

More information, including state-specific drought impact maps, can be found on the U.S. Drought Monitor homepage: droughtmonitor.unl.edu/Home.aspx.



EXERCISE HELD TO HELP CONTINUE IOWA’S ANIMAL HEALTH EMERGENCY PLANNING EFFORTS

Last week over 60 federal, state and local agency, academic and industry professionals met to participate in a mock animal disease emergency response exercise. The exercise was hosted by the Iowa Department of Agriculture and Land Stewardship with the support of Iowa Homeland Security and Emergency Management.

“Unfortunately, Iowa saw firsthand how devastating an animal health emergency can be with the Highly Pathogenic Avian Influenza outbreak that severely impacted our poultry industry in 2015.  The Department has made it a priority to take the lessons learned from that disaster and help us be better prepared should we have to deal with another event in the future.  This exercise was another step in that process and I greatly appreciate all the stakeholders from across the state that participated,” Iowa Secretary of Agriculture Bill Northey said.

The tabletop exercise was designed to help test response capabilities and review the Department’s updated Foot-and-Mouth Disease Response Plan that was completed this spring.  Foot and Mouth Disease is a highly contagious viral disease of livestock that affects cattle, swine, sheep, goats and other cloven-hoofed ruminants. This disease is not transmissible to humans and there are not food safety concerns with the disease.

This all-day exercise allowed leaders in industry, academia and government to talk through the plan and process of preventing, detecting, and responding to various scenarios involving an outbreak response.

“We greatly appreciate the leadership by the Department to develop this plan and continue the process by holding this exercise so we can continue to learn and improve,” said Pat McGonegle, CEO of the Iowa Pork Producers Association who participated in the exercise.

A Foot and Mouth Disease outbreak has the potential to be devastating to the Iowa and national economy. Iowa is the number one pork producing state in the nation and 4th in beef production.  Iowa 3rd in milk goat inventory and 9th in all sheep and lamb inventory. Our state also has over 200,000 dairy cows and is in the top 15 nationally for milk production.  Livestock feed is the top customer of both corn and soybeans, so grain farmers would also be significantly impacted if the disease is found.

The Center for Food Safety and Public Health at Iowa State coordinated the development of the updated response plan.  The exercise was organized/conducted by SES, Inc. out of Merriam, Kansas, who provided facilitators and evaluators to document discussion, resolve questions, and advise on plans, policies, and procedures.



Register Today for the 11th annual Iowa Women in Agriculture Conference

Iowa Women in Agriculture invite you to join us for the 11th annual Conference at the FFA Enrichment Center in Ankeny on August 1.

The 2017 Conference will deliver a full menu of decision-making ingredients for success in today’s difficult economic climate: the latest outlook for ag trade, marketing strategies for low commodity prices, financial risk management tactics, transition and estate-planning tips, and ideas for generating new income and adding value. Our keynote speakers will highlight the unique challenges of women’s roles, offer opportunities to laugh and learn, and to celebrate agriculture.

The one-day Conference runs from 8:00 a.m. to 4:45 p.m. Krysta Harden, former USDA deputy secretary and current vice-president of public policy and chief sustainability officer for DuPont-Pioneer, will open the conference with a video message highlighting the ag outlook for 2018. Harden also will share her experiences as an ag leader, and encourage women to pursue active roles in agricultural associations and agribusinesses.

Keynote speaker Ambassador Darci Vetter, a strategic consultant on international trade, food and agriculture issues, will address the ag trade outlook, and share her insights on the intersections between the current trade agenda, and the proposed budget and policy priorities regarding rural development and farm programs.

Elaine Kub, author of Mastering the Grain Markets: How Profits Are Really Made, DTN analyst, and frequent guest on Iowa Public Television’s Market-to-Market, will tackle the challenges of today’s markets. Angie Treptow, regional vice-president, Farm Credit Services of America will wrap up the morning sessions with a deep dive into lender expectations for 2018.

Luncheon keynoter Natalina Sents, an Iowa native, will share her amazing experiences and observations gleaned from meeting farmers during her recently-completed 50-state Why I Farm Road Trip tour.

The afternoon’s choice of breakout sessions and presenters features:
  - Top 10 Estate and Transition Planning Mistakes; Melissa O’Rourke, Iowa State University Extension and Outreach agribusiness specialist
  - Harvesting Health & Happiness; Dr. Tina Chasek, Assistant Professor, Dept. of Counseling and School Psychology, University of Nebraska at Kearney
  - Generating New Income/Adding Value; Grazing Cover Crops, Meghan Filbert, livestock coordinator, Practical Farmers of Iowa and Hampton, Iowa, farmer Margaret Smith; Hydroponic Farming, Mike Phelan, Beaver Creek Produce, Berkley, Iowa.

The Conference will conclude with capstone speaker Amanda Freund, a Connecticut farmer and ag advocate, who will wrap up the Conference with Connected Across the Generations: Women in Agriculture.

Participants also will have a unique pre-conference opportunity to attend a Water-Quality& Beef Production/Pollinator Habitat Tour on Monday, July 31, hosted by Iowa State University Extension and Outreach Women in Agriculture Program. The motor coach tour, from 12:30 p.m. to 5 p.m. will feature a visit to the Bill and Nancy Couser beef cattle operation near Nevada, followed by a stop at Reiman Gardens in Ames to focus on pollinator habitats and a tour of Reiman Gardens. The tour begins at the Courtyard by Marriott Ankeny, 2405 SE Creekview Dr., Ankeny, Iowa.

A Wine and Cheese Welcome & Networking Reception will be held on Monday, from 5:30 p.m. to 7:30 p.m. at Courtyard by Marriott Ankeny. Californian Ruth Rabinowitz, Rabinowitz Family Farms, will share the story of her journey of learning how to manage her family’s 10 Iowa farms in six different counties. She’ll detail the steps she’s taken to master the challenges of understanding farm programs and initiating critical conservation management methods.

Registration for the conference is $50 until July 22, and $70 after that date. Registration includes the pre-conference tour, evening welcome reception, continental breakfast, lunch, and snacks. Register online, or from 7:15 a.m.-8:00 a.m. on the day of the conference.

Early bird registration is required for those attending the Pre-Conference Tour. For questions about the tour, contact Madeline Schultz at 515-294-0588.

All early-bird paid Conference registrants are eligible to win a FREE mini i-pad. (Sorry, but no registration refunds will be possible.)

For more Conference information, contact IWIA president Cheryl Tevis at 515-353-4425 or visit our IWIA web site  for a full Conference agenda and registration details... http://iowawomeninag.org/annual-conference/. 



Management of European Corn Borer Difficult without Hybrid Traits
The implementation of Bt hybrids have allowed a generation of farmers to grow up without having to think about managing for European corn borer. These hybrids have been extremely effective in keeping European corn borer from impacting corn yields, a far cry from the estimated one billion dollars annually the pest was costing farmers in yield losses plus control costs.

Today some farmers, in an effort to lower costs as commodity markets remain low, have started planting corn without the Bt traits that have proven so effective against European corn borer and other caterpillars.

“Use of the Bt traits for corn borers meant that farmers haven’t experienced losses from corn borers in a long time,” said Erin Hodgson, associate professor and extension specialist in entomology at Iowa State University. “People who have started farming in the last 20 years haven’t experienced devastation from corn borers because they’ve had very good control. With some farmers backing off of Bt traits, they are now having questions about the biology, life cycle and management of European corn borer.”

With these pests still active and prevalent, Hodgson authored ISU Extension and Outreach publication “Ecology and management of European corn borer in Iowa field corn” (CROP 3139) to help provide information about the insect to farmers who are encountering it for the first time.

The publication discusses the life cycle, biology and egg laying of European corn borers, as well as the damage an infestation can do to plants and severe yield loss.

How to manage the pest if not using Bt traits in seed is also covered in depth.

“If a farmer decides not to use the traits they will have to incorporate an extensive scouting program,” Hodgson said. “Farmers must be very proactive because it is such a devastating pest. Management must target the eggs and small larvae before they are able to move into the ear. Once they enter the ear there is nothing that can be done. Scouting and quick decision making is very important because the eggs and larvae are exposed for a limited amount of time.”

Worksheets on how to scout and the management decisions that should be made are included in the publication. Also included is a table to track the life cycle of European corn borer based on accumulating degree-days. Degree-days are the average number of degrees above the developmental threshold occurring each 24-hour period.

“We need to have some sort of assessment of adult European corn borer activity,” said Hodgson. “Using degree-days is the most accurate way to track development.”




EIA: Ethanol Stocks, Output Down

Energy Information Administration data for the week-ended June 16 released Wednesday, June, 21, shows total domestic fuel ethanol inventories declined as plant production fell and implied demand continued higher week-over-week.

The EIA's Weekly Petroleum Status Report for the week profiled shows fuel ethanol stockpiles declined about 200,000 barrels (bbl) to 22.3 million bbl, leaving stocks at a 5.7% year-over-year supply surplus.

Domestic plant production dropped 12,000 barrels per day (bpd), or 1.2%, to 990,000 bpd last week, 28,000 bpd, or about 3%, higher than output during the corresponding week in 2016. For the four weeks ended June 9, ethanol production averaged 1.003 million bpd versus 985,000 bpd during the same four week period in 2016.

Net refiner and blender inputs, a gauge for ethanol demand, increased 12,000 bpd, or 1.3%, to 943,000 bpd during the week-ended June 16, which was 15,000 bpd, or 1.6%, higher than a year ago. For the four-week period ended June 16, blending demand averaged 933,000 bpd, up 14,000 bpd from the corresponding four-week period in 2016.



NAGC Celebrates One-Year Anniversary

The National Agricultural Genotyping Center, championed by the National Corn Growers Association, marks its one-year anniversary today and it does so with a significant list of accomplishments of importance to corn farmers.

NAGC's mission is to translate scientific discoveries, such as the information from the maize genome project, into solutions for production agriculture, food safety, functional foods, bioenergy and national security.

"We are extremely excited to see this state-of-the-art facility living up to its promise," said Larry Hoffmann, chair of the NCGA's Corn Quality and Productivity Action Team. "The Genotyping Center is already building a reputation for using its high-throughput genotyping technology to both inform and solve problems facing agriculture."

In just a year's time, NAGC has been able to commercialize tools to help corn growers and all of agriculture, Hoffman noted, including a screening assay for honey bee diseases and faster and more effective tests to accurately identify corn diseases like Xanthmonas and Goss's Wilt. Additional test for corn and soybean diseases are in the research pipeline.



New FMD Rapid Diagnostics Licensed for U.S. Livestock

The U.S. Department of Homeland Security Science and Technology Directorate (DHS S&T) announced today the licensing of a rapid-response (three-hour) Foot-and-Mouth Disease (FMD) diagnostic kit by the U.S. Department of Agriculture (USDA) Center for Veterinary Biologics (CVB). Developed by a large research consortium of federal agencies, academia and animal health industry scientists, this is the first licensed FMD diagnostic kit that can be manufactured on the U.S. mainland, critical for a rapid response in the event of a FMD outbreak. This diagnostic kit provides animal health first responders with an important tool to mitigate the potentially catastrophic economic and animal welfare impacts of a FMD outbreak. This high-performance test can be used for cattle, swine, and sheep, and will be commercialized and sold by Veterinary Medical Research and Development (VMRD), Inc., a U.S. manufacturer of veterinary diagnostics.

"This assay will be a pivotal tool for U.S. emergency preparedness and response and for ensuring the resiliency of U.S. animal agriculture, a critical infrastructure" said DHS Acting Under Secretary William N. Bryan. "Successfully bringing this test to market exemplifies the type of public-private partnership among DHS S&T, Centers of Excellence, government labs, and commercial industry necessary to support U.S. agriculture and global FMD control and eradication programs."

FMD virus is highly contagious in cloven-hoofed animals, including: cattle, pigs, small ruminants. Globally, FMD has a significant impact on livestock trade economics and extensive regulatory programs exist in the U.S. to facilitate identification of, response to, and control of the disease. With one in nine Americans employed in the agriculture or allied industries, the effects of an FMD outbreak in the U.S. would be devastating ­-- estimated at nearly $200 billion in lost revenue over 10 years across affected industries.

This rapid, specific, and sensitive FMD diagnostic assay was developed and validated over a seven year period by a consortium of scientists at Texas A&M University and the Institute for Infectious Animal Diseases in College Station, Texas (a DHS S&T Center of Excellence); DHS S&T's Plum Island Animal Disease Center, USDA Animal and Plant Health Inspection Service Foreign Animal Disease Diagnostic Laboratory and USDA Agricultural Research Service Foreign Animal Disease Research Unit; and through a Cooperative Research and Development Agreement with VMRD, Inc. Funding was provided by the Agriculture Defense Branch of DHS S&T's Homeland Security Advanced Research Projects Agency,Chemical and Biological Defense Division and DHS S&T Office of University Programs. DHS S&T has also granted an intellectual property license to VMRD, Inc. for the test and a patent application has been filed with the U.S. Patent and Trademark Office.



Second Chance at Forward Pricing
Stephen R Koontz, Agricultural and Resource Economics, Colorado State University

Commodity markets rarely give second chances but sometimes patience is rewarded.  I believe that time is now.  In May, I advocated that producers with anticipated fall marketings of calves purchase some price protection in the form of options.  This article does the same.  Let's get right to the technicals.

The October feeder cattle contract put in a key reversal top on May 4.  This is an outside day - with a higher above the previous day's high and a low below the previous day's low - with a low or weak close.  These are significant in that they communicate the day finishes at a rather different level than traded during.  The market retreated from price levels set in early May - this establishes the high as a resistance plane - and then made another run at those highs in late May and early June.  Resistance was pressured but largely held.  On June 6, there is another close-to outside day and a very weak close.  This resistance plane is attracting a lot of selling pressure.  The market retreats again from the resistance plane and this becomes a solid sell signal.  Were you listening?

Of course that was over two weeks ago so the pricing opportunities are this week not as good.  But the technical picture remains the same.  It looks to me like the spring top is in and we are likely in for price weakness the remainder of the year.  The technical patterns for live cattle contracts are very similar just not in the detail.  Highs established in early May were pressured in late May and early June, these resistance planes have held and sell signals were generated.  Live cattle and feeder contracts are in agreement.

What do the fundamentals say?  My main concern for the coming summer and early fall is from the fact that placements over the prior five months have been above or the same as last year.  We have not seen larger volumes at heavier weights yet but they are inevitable.  When this occurs there will be price weakness for fed animals and feeders.  The weakness has not emerged because packer margins have been very strong.  Boxed beef composite values have rallied to over $250 per cwt - a level not seen in all of 2016 - and the Choice/Select spread is above $30 - again something not observed in 2016.  The calculated volume of cattle on feed over 120 days and over 90 days is the smallest that I can recall seeing relative to the numbers of animals on feed.  Excellent beef movement and fed cattle marketings in combination with tight market-ready inventories is the story this spring.  The short term fundamentals are much stronger than the long term.  And these market situations have a propensity to change sometime between June and October.

Returning price protection, that October feeder cattle Put with a $130 strike price was $3.85/cwt on June 19.  This is as opposed to $2.35 on May 3.  And of course, options which are further out-of-the-money are less expensive.  Reasonable basis estimates suggest this is close to a $150/cwt price floor for 5-6 cwt calves.  And I still the purchase of this price protection is a smart decision for many cow-calf producers with calves to market this fall.



Fertilizer Prices Hold Steady Second Week of June

Retail fertilizer prices continued to hold fairly steady the second week of June 2017, according to fertilizer retailers surveyed by DTN. For several weeks in a row now, prices for all fertilizers have seen only minor moves in either direction.

Of the eight major fertilizers, prices for all but one were slightly lower compared to a month prior. Those were DAP with an average price of $437 price ton, MAP $470/ton, urea $338/ton, 10-34-0 $435, anhydrous $500/ton, UAN28 $246/ton and UAN32 $278/ton.

The remaining fertilizer, potash, was just slightly higher compared to the previous month. Potash had an average price of $341/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.37/lb.N, anhydrous $0.31/lb.N, UAN28 $0.44/lb.N and UAN32 $0.43/lb.N.

In addition, he also utilizes a crop scout who gives him various crop-related recommendations. Jacobsen watches his own crops pretty closely, as well.

Retail fertilizers are lower compared to a year earlier. Two of the eight major fertilizers are still double digits lower.

10-34-0 is 22% lower from a year ago while anhydrous is 12% less expensive. UAN32 is 9% lower and both UAN32 and urea are down 8%. DAP is 7% less expensive and both MAP and potash are both 5% lower.



June Diary Month Feature:  Cropp Expects Better Days Ahead for Dairy Farm Prices

As Dr. Bob Cropp predicted about a month ago, it appears that April will be the low-point for farm-paid milk prices this year. In his monthly Dairy Situation and Outlook report, the professor emeritus with the University of Wisconsin-Extension says the May Class III milk price rose to $15.57, and June could end the month nearly a dollar higher. He also predicted that milk prices will continue to increase and peak out in October or November.

"Improved exports have supported higher cheese, butter, dry whey and nonfat dry milk prices," Cropp explained in his latest summary. "In April, U.S. dairy export volume was higher than year-ago levels for the 11th straight month. Compared to a year ago exports to the top 10 markets showed [double-digit improvements] in China, Oceania, Japan, South Korea, South America, Southeast Asia, Mexico and Canada."

He adds that dairy product prices on the Global Dairy Trade keep on strengthening as the summer months approach--making U.S. products more price competitive around the world.

"Exports are expected to continue to show improvement," he said. "World demand is expected to be stronger and increases in world milk production to be modest. Milk production had been running lower in major exporters such as EU, New Zealand, Australia and Argentina. Milk production may start to run above year ago levels by summer and fall in both EU and New Zealand, but stronger world demand could absorb the increase."

As he had been proclaiming for most of the year, Cropp feels the level of milk production will be a major factor on how much milk prices will strengthen. He says if output growth continues at two-percent or less, the Class III price could be in the mid $16s by July, and in the $17s for the remainder of the year. However, dairy futures are currently less optimistic prices to reach that level.

Meanwhile, Cropp says the recent wet weather could be another factor in the market. He says forage quality in the Northeast and Midwest could negatively affect increases in milk per cow in these regions.



NAWG Responds to Senate Finance Hearing Examining the Administration’s Top Trade Priorities

Today, the Senate Committee on Finance held a hearing to discuss the Administration’s trade agenda and its FY18 Budget Request for the Office of the United States Trade Representative (USTR). Members heard testimony from USTR Robert Lighthizer who spoke on the Administration’s top trade priorities and defended the Administration’s FY18 Budget Request.

NAWG President David Schemm submitted written testimony for the record and made the following statement:

“With the United States exporting around 50% of its wheat, trade is a top priority for U.S. wheat farmers. In fact, U.S. 2017/18 wheat exports are expected to reach 27.2 MMT, down 1% from 2016/17 but still 9% above the five-year average.

“NAWG welcomes opportunities to improve trade for U.S. wheat farmers, including efforts to make sure our competitors like China are playing by the rules set by the WTO and by creating new markets such as increasing access to Cuba. China’s domestic support programs have been causing significant economic harm to U.S. wheat farmers, and Cuba represents untapped trade potential within our own hemisphere, and an end to the embargo would greatly benefit the U.S. export economy.

“Modernizing NAFTA is also an excellent opportunity to improve domestic and export marketability of U.S. crops. However, NAWG strongly opposes any changes that might limit the current NAFTA’s benefits for wheat farmers and their customers. Exiting NAFTA and certain changes, could lead to tariffs on U.S. wheat and threaten to undermine the long-standing, loyal relationship U.S. wheat farmers have built with Mexico’s wheat buyers and food industry.

“NAWG is looking forward to working with the Senate Finance Committee on creating new trade opportunities for our wheat farmers and improving relationships with our current global partners.”



JBS Unveils $1.8 Billion Divestment Plan

JBS, whose controlling shareholder recently agreed to pay a massive leniency fine after becoming embroiled in sweeping graft probes that have ensnared politicians and executives, said in a securities filing that its board and state development bank BNDES still had to approve the planned asset sales. The plan, which aims to raise 6 billion reais ($1.8 billion), includes a 19.2 percent stake in Brazil-based dairy company Vigor Alimentos SA, along with its Northern Ireland unit Moy Park and Five Rivers Cattle Feeding in North America.

According to Reuters, Five Rivers has a combined feeding capacity of more than 980,000 head of cattle and locations in Colorado, Kansas, Oklahoma, Texas, Arizona, and Idaho, according to its website. Five Rivers also manages a 75,000-head capacity feedyard in the Canadian province of Alberta.

U.S. feeder cattle futures fell to nearly a two-month low of 140.775 cents per pound after the JBS announcement, before rebounding to trade down 1.625 cents at 143.175 cents. JBS shares were down 3.46 percent at 6.13 reais in early afternoon trading in Sao Paulo.

Traders said some investors were paring bets that JBS would have to sell larger slaughter operations, which would have been far more disruptive than selling its feed operations.

Reuters reported last week that two investment banks empowered to handle a sale of Vigor have contacted French dairy producers Danone SA and Groupe Lactalis SA, Mexico's Grupo Lala SAB de CV and Switzerland's Emmi AG to analyze the business. JBS has a minority state in Vigor, which is majority-controlled by JBS' parent, J&F Investimentos SA.



Take These Steps to Optimize Implant Results
Gary Sides, managing nutritionist, Beef Strategic Technical Services, Zoetis

While it’s a challenging time in the cattle industry, as a progressive cattle producer you still have opportunities to add value to your final product. Using growth implants is one of the most profitable tools available to help you achieve this goal — returning far more in weight gain and feed efficiency than the cost of the implant itself.

There’s a common misconception that implants only benefit cattle in a stocker or feedlot setting. But the truth is, any cattle producer who wants to improve weight gain can benefit from SYNOVEX® implants — cow/calf producers included.

In fact, studies demonstrate that calves implanted with SYNOVEX C gained an average of 19 pounds more than nonimplanted calves at weaning2 — at $1.77 per pound for weaned calves, that’s an extra $33 per head at sale time and a 30-to-1 return on investment.

So, whether you’re reading this from a cow/calf, stocker or feedlot perspective, make sure you’re not forfeiting gain and profit.

To optimize implant results and profit for every dollar invested in your implanting program, work with your processing crew to implement best-practice implanting techniques.

Here are seven steps to help you make the most from an implant program:
1)    Before implanting, work with your nutritionist, veterinarian or Zoetis representative to match the correct implant dosage with desired cattle performance targets.

2)    Follow low-stress cattle handling procedures to avoid exciting and overcrowding cattle. Overcrowding causes additional manure contamination of cattle’s heads and ears.

3)    Use good head restraint for the animal’s safety and yours. Never sacrifice safety and proper technique for speed.

4)    Always implant a clean and dry ear. If the ear is wet or dirty, clean the ear with a brush soaked in a proper concentration of Nolvasan® Solution or other disinfectant before implanting. Refresh the water and disinfectant when it becomes dirty.

5)    Before implanting, tag ears in a location that will not be used for implants, or tag the ear not being implanted. Place the implant at least one finger width from new or previous incisions (ear tags, implants, etc.).

6)    When ready, insert the needle subcutaneously starting at the outer one-third of the ear, which places the implant in the middle one-third of the ear.

7)    Make sure your processing crew is familiar with the SX-10 Precision Applicator or Revolver implanting device. Clean the implant needle immediately if it slips or skips across the surface of ear before the injection is made to avoid contamination and infection.

Implanting aligns well with key cattle preconditioning processes, such as immunizing and deworming, and will likely not require an extra trip through the chute (and even if so, the performance response more than outweighs the extra processing expense). Long-duration implant options, like SYNOVEX ONE, allow cattlemen to increase operational flexibility and decrease labor costs by extending the window for weight gain up to 200 days.