Tuesday August 8 Ag News

Gov. Ricketts Begins Trade Mission to Canada

This morning, Governor Pete Ricketts is kicking off his first trade mission to Canada, leading a Nebraska trade team on the state’s first official trade mission to the country.  During the five-day trade mission, delegates will meet with government, agricultural, and manufacturing officials in Toronto and Ottawa.

“As Nebraska’s largest export market and fourth largest agriculture export market, Canada is vitally important to the state,” said Governor Ricketts.  “Appreciation is a key component of any relationship.  During this mission, we are thanking our best customer for their current business, identifying ways to expand our positive trade relationship with Canada, and utilizing this opportunity to open new doors for Nebraska companies to grow their businesses.”

The Governor is leading the delegation along with Nebraska Department of Agriculture (NDA) Director Greg Ibach and Nebraska Department of Economic Development (DED) Director Courtney Dentlinger.  Representing the agricultural community are Mark McHargue, Nebraska Farm Bureau; Eric Kamler, Nebraska Corn Growers and Nebraska Corn Board; and Galen Frenzen, Nebraska Cattlemen Association.  Mindy Ruffalo, Greater Omaha Chamber of Commerce, will also accompany the delegation for part of the trip.

The Governor’s Office, NDA, DED, and Canadian officials developed the itinerary for the trade mission, which includes a U.S. Consulate briefing and meetings with the Ontario Ministry of International Trade as well as the Ontario Ministry of Agriculture, Food, and Rural Affairs.

Later in the week, delegates will participate in a roundtable discussion with the U.S. Consul General for Toronto, as well as attend a reception and meal hosted by the Minister Counselor for Agricultural Affairs.  The meal will feature Nebraska beef.

“In 2016, total agricultural exports from Nebraska to Canada equaled an estimated $468 million out of a total agriculture export value of $5.4 billion,” said NDA Director Greg Ibach.  “During this trip, we look forward to meeting with representatives from the Canadian Pork Council and the Canadian Cattlemen Association to share information about Nebraska’s quality beef and pork.”

Nebraska beef products are Nebraska’s number one agricultural export to Canada, totaling $138.2 million dollars in 2015.  Pork is Nebraska third highest agricultural export to Canada, with $61.3 million dollars of exports.  

During visits with the U.S. Consulate in Toronto and the U.S. Embassy in Ottawa, the delegation will learn more about Canada’s economic and social structures in an effort to understand how those affect the Nebraska manufacturing and agricultural sectors.

“Nebraska businesses have built strong relationships in Canada, and we have significant investment from Canadian companies in our state,” said DED Director Courtney Dentlinger.  “This mission allows us to express our thanks to our largest trading partner, and to promote additional opportunities to grow Nebraska's economy.”

To help showcase how critical NAFTA is to Nebraska and our trading partners, Canadian and Nebraska business leaders will participate in a NAFTA Workshop to discuss and learn more about Canadian food regulations as we continue to export food products to the country, and the implications the Canadian Safe Food Act has for both Canadian and U.S. companies.

“International trade and engagement is a crucial part of our state’s long-term growth,” said Governor Ricketts.  “That’s why my administration is continuously pursuing new strategies for expanding international markets, attracting new investment, and building the state’s profile internationally.  We are committed to maintaining a competitive edge in a global economy.” 



LEASED PASTURES DURING DROUGHT
Bruce Anderson, NE Extension Forage Specialist

               Are you grazing cattle on rented pastures?  If so, the current drought or abnormally dry conditions may force some important decisions.

               No matter if you own the cattle or own the pasture, or maybe both, when dry weather reduces pasture growth way below original expectations, adjustments are needed. Continuing to graze while ignoring the dry weather and reduced pasture growth risks damage to both the pasture and the livestock.  Landowners risk having the pasture become overgrazed, resulting in future weed problems, reduced long-term production, and lowered value.  The cattle owner risks poor performance or health of the livestock due to less forage and lower quality feed.  This can lead to higher supplemental feed costs or being forced to sell the cattle.

               Ideally, you have a written lease and have included clauses that identify conditions that require removal of animals.  If so, good for you.  Check those conditions now and act on them if needed.

               Unfortunately, many pastures are rented without written leases or without drought clauses.  If this describes your situation, now might be a good time to initiate discussion about how you will handle the grazing if growing conditions don’t improve enough soon.  Planning now helps avoid arguments and panicky decisions later.

               This discussion should include who makes the decision to remove the cattle and what criteria will be used to base that decision.  Also discuss any adjustment in rent because less grazing was provided.  Usually, it is best to design the agreement so both landowner and cattle owner share in losses associated with drought.  This may be especially important if you hope to conduct business together in the future.

               Drought can cause a lot of headaches.  But good planning and communication can reduce some of the pain.



JULY ELECTION RESULTS FOR DIRECTORS ON NEBRASKA SOYBEAN BOARD

The Nebraska Soybean Board held an election in July for the Director Seats in District 5, 7 and At-Large. Nebraska soybean farmers in those districts (5 & 7) voted with the following results:

District 5 (Counties of Cass, Johnson, Lancaster, Nemaha, Otoe, Pawnee and Richardson)
Candidates:
                Andy Dunn, Falls City, NE – Richardson County
                Daryl Obermeyer, Brownville, NE – Nemaha County - Re-elected
                Brent Steinhoff, Syracuse, NE – Otoe County
The re-elected Director, Daryl Obermeyer, will begin his second term on the board.

District 7 (Counties of Adams, Buffalo, Clay, Franklin, Hall, Kearney, Nuckolls and Webster)
Candidates:
                Doug Saathoff, Trumbull, NE – Adams County - Elected
                Cecil Schriner, Hildreth, NE – Franklin County
The elected Director, Doug Saathoff, will begin his first term on the board.

At-Large
Candidates:
                Greg Anderson, Newman Grove – Madison County - Re-elected
                Nathan Dorn, Firth, NE – Gage County

The elected Director, Greg Anderson, will begin his second term on the board.

“A special thank you to all the candidates who took time out of their busy schedule to run in this year’s election. The two returning directors and one new director will continue to face the many challenges and seek opportunities that will benefit all soybean farmers in Nebraska,” said Victor Bohuslavsky, Nebraska Soybean Board executive director.

The elected directors will serve a three-year term beginning October 1, 2017 and ending September 30, 2020.



Growing In-Demand Soybeans Can Boost Profitability for Farmers

The farm economy has been in a holding pattern for years now, and managing for the future is more important than ever. On his family farm in the Shenandoah Valley, Marty Kable has had to make some tough decisions. This year, he, along with farmers in 12 states around the U.S., planted high oleic soybeans to increase his profit potential. In total, U.S. soybean farmers planted 650,000 acres of the premium soybeans this year.

Kable has actually increased acreage for High Horizons Farm, Inc., on the eastern tip of West Virginia, through careful management and support from his team – his wife and two sons who join him on the operation as well as experts like his agronomist, Bob Chandler.

When margins are tight, farmers start to look toward cutting costs to make ends meet, but Kable takes a different approach. “You can’t cut too many costs or you start reducing your crop’s performance,” he says. “We’re doing everything we can, from seed selection to inputs, to produce the best yield on any given acre.”

And this year, Kable’s seed decision made a big market impact. “Counting the double-crop that will be going in behind wheat, we’ll have a total of 2,376 acres of high oleic soybeans,” Kable says. “There was a lot of interest in the ag community around me, and we tested the varieties on our land last year. We saw yield that was as good as – even better than – anything else we planted, so the results were encouraging to grow more this year."

Kable’s agronomist, Bob Chandler, agrees. “I also sell seed for several thousand acres of soybeans in this area. More than half of those acres are in high oleic varieties this year,” he says.

What’s so attractive about high oleic soybeans? Beyond the competitive yield, Kable says he likes growing a product that has a defined market. His high oleic acres are contracted with Perdue AgriBusiness, which processes the soybeans for premium soybean oil used by restaurants, food companies and in non-food applications because of its high-heat and shelf stability.

End-use customers want more of the oil than processors have in stock, so they offer a premium for high oleic soybeans to farmers who grow them. The biggest difference between growing high oleic and conventional soybeans, Kable says, is that farmers keep them separate to deliver them to the contracted processor – and that it comes with added profit.

For farmers, high oleic soybeans help build long-term soybean oil demand. Growing high oleic takes some of the commodity soybean oil off the market, and replaces it with a growing supply of high oleic soybean oil to meet end-user needs.

“All our beans this year are high oleic,” Kable says, “due in part to the profit opportunity for our farm and for all soybean farmers. We like to stay up on anything new and exciting in the industry, and high oleic has real potential to add demand for U.S. soybean farmers.”



ISU Extension and Outreach offers publications to help farmers monitor their fields
Crop scouting allows farmers to monitor the growth of their crops and address any issues that arise during the growing season.

“Crop scouting is foundational to making in-season management decisions,” said Adam Sisson, extension specialist for the Integrated Pest Management program at Iowa State University. “If you don’t know what you are attempting to manage, it can easily lead to mismanagement or spending money that could otherwise have been saved. Identification is always the first step to proper management.”

Getting into the field on a regular basis is the first step to scouting.

“Start by getting a good big picture of the field to see if there are any large problem areas,” Sisson said. “But don’t stop there. Walk into the field and get a good representative sample. Look at individual plants to determine their condition. Also, have a good idea of what an ideal field should look like at the time as it helps you know if something has gone wrong.”

Sisson also recommends scouting as often as possible, focusing on insects, weeds, disorders and diseases that are affecting that year’s crop. But while the focus of scouting is on the current crop, taking past practices into account as well can be helpful for a proper diagnosis of issues.

“If you come across a problem, there are pieces of information from previous growing seasons that can be useful in determining what caused the issue,” Sisson said. “Herbicides from past years can carry over from season to season. Also if this is the second or third consecutive year the same crop has been planted in that field there may be diseases from the past that remain in the crop residue.”

Iowa State University Extension and Outreach has a series of resources designed to help farmers scout their crops for potential issues to be managed.

    Corn and Soybean Field Guide (IPM 1): This publication combines the previously separate Corn Field Guide and Soybean Field guide into a single volume. It provides tools for identifying insects, diseases and disorders of corn and soybean in the Midwest.

    Corn and Soybean Field Guide Web Book (IPM 81): The web book takes the information from IPM 1 and moves it to an online medium complete with videos, slide shows, interactive graphs, simulations and virtual quizzes.

    Corn Diseases (IPM 5): An updated version of this pub will be available by Sept. 1, providing information on how to identify corn diseases and provide general recommendations for disease management.

    Weed Identification Field Guide (IPM 3): This is a revised and expanded pocket-sized guide for farmers and agronomists to use for weed identification in Iowa corn and soybean fields.

    Speed Scouting for Soybean Aphid (CSI 15): A tool for growers to monitor soybean aphid populations in their fields by using a speed scouting technique. The publication provides instructions on speed scouting and guidelines for recording soybean aphid sightings in the field.

    Fungicide Classification (IPM 80): Repeated use of fungicides with the same mode of action can result in the selection of fungicide-resistant strains of plant pathogens. This publication (in poster format) divides fungicides into six modes of action to provide for greater diversity in the fungicides used.



Research: Milk Proteins Higher Quality Than Plant Proteins

When it comes to protein, research continues to suggest milk has some of the highest quality protein available, according to a new study published in the British Journal of Nutrition.

Researchers used a new scoring system, which is believed to be more accurate, to measure the quality of milk proteins and plant proteins, and they confirmed milk proteins ranked as some of the highest quality proteins available, especially compared to plant-based proteins like soy and pea protein. A protein's quality indicates how easily it can be digested and used in our bodies.

Milk proteins were ranked as "excellent" quality sources of protein, whiles soy proteins were ranked lower as "good" quality sources. Pea protein scored too low to qualify for a protein quality claim.

From muscles to hair and bones to teeth, our bodies need protein to be healthy and strong. This is especially true for growing kids. With 8 grams of high-quality protein in each 8-ounce glass, real milk offers between 2 to 7 more grams of protein compared to non-dairy alternatives like almond or rice drinks. Pairing a glass of real milk with your meals is an easy way for you and your kids to get protein you need.



Antimicrobial Resistance: What Beef Producers Should Know

Join Dr. Bob Smith for a free webinar Thursday, August 10 at 3 p.m. CST, hosted by the National Institute for Animal Agriculture on behalf of the beef checkoff. The webinar will allow beef producers the unique opportunity to explore antimicrobial resistance in the U.S. and provide a forum to share knowledge around antibiotic stewardship.

Click here to register.... https://register.gotowebinar.com/register/7910123429613907715. 

For more information about your beef checkoff investment, visit MyBeefCheckoff.com.



Beef - A WISE Choice!
Polly Ruhland, Cattlemen's Beef Board CEO

"Diets are boring!"

"I hate trying to lose weight, it's no fun."

"Who wants to eat salad for dinner every night?"

Do these sound like excuses you’ve heard from friends or family when it comes to exercise to lose weight?

Well, if you missed it, the news is out and it’s exciting:  the new Beef WISE study found that lean beef, as part of a healthy, higher-protein diet, can help people lose weight while maintaining muscle and a healthy heart.

The Beef WISE Study adds to the growing body of research demonstrating the role of lean beef in heart-healthy diets and strong bodies. This includes another beef-checkoff funded study called BOLD (Beef in an Optimal Lean Diet), and independent research DASH (Dietary Approaches to Stop Hypertension).

Building on Previous Research
In recent years, higher-protein diets have become a popular diet strategy for weight loss. Dietary recommendations such as the 2015 Dietary Guidelines for Americans may suggest that eating patterns with lower intake of red meats are associated with a reduced risk of obesity. However, these recommendations to limit red meat are based primarily on observational studies, whereas clinical trials such as the three I mentioned largely found no detrimental impact of lean red meat consumption on markers of cardiometabolic health during weight loss or weight maintenance.

Red meat is a major contributor of protein in the American diet and represents 58 percent of all meat consumption in the United States, thus its exclusion from the diet can pose as a barrier to sticking with a higher-protein diet for the long-term.

A Protein-Conscious Consumer Environment
Few clinical trials have compared different high-quality protein sources to understand their effectiveness in a weight loss or maintenance diet. The Beef WISE study did a direct comparison of the State of Slim eating plan with half the participants consuming four or more weekly servings of lean beef as the only source of red meat, compared to participants who did not consume any red meat during the study. Subjects in both groups lost equal amounts of body weight and fat mass while preserving muscle.

The WISE study, made possible by a research grant from your checkoff, demonstrates that lean beef doesn’t have to be restricted in a higher-protein diet and is just as effective as other protein choices in supporting healthy weight loss and leaner bodies.

In order to get this good news out to health and fitness leaders, your checkoff sent custom emails along with a press release to approximately 150 targeted media outlets and reporters. These selected outlets cover health and fitness for consumers or are nutrition/science-focused publications

Be proud of your checkoff’s work in this arena as this study is great news for people who enjoy beef but may have been told they should avoid it while following weight loss diets. It underscores, once again, lean beef can be part of a healthy, higher-protein diet for weight loss.



Congress Poised for Tax Code Overhaul

A joint statement on tax reform released recently by Republican congressional leaders and administration officials signals that lawmakers plan to make good on their promise to overhaul the tax code as soon as this fall.

“America’s farmers and ranchers are encouraged to see that key congressional leaders and the administration understand how important tax reform is to all Americans. Fixing our tax system now is crucial to creating economic opportunities for farmers, ranchers and other family-owned businesses. This is especially important as farmers continue to face down tough economic challenges,” American Farm Bureau Federation President Zippy Duvall said in response to the statement.

Among farmers’ and ranchers’ top priorities are comprehensive tax reform that helps all farm and ranch businesses; the reduction of combined income and self-employment tax rates to account for any deductions or credits lost; and cost-recovery tools like allowing businesses to deduct expenses when incurred; and a continuation of cash accounting, Section 1031 “like-kind exchanges,” and the deduction for state and local taxes.

The repeal of estate taxes and the continuation of stepped-up basis, along with reduced capital gains taxes, are important as well.

“Not only will reform strengthen our economy, but by addressing key issues like overall tax rates, capital gains taxes and enhanced expensing, it will be good for farms and other businesses,” Duvall said.

The group of congressional leaders and administration officials who released the joint statement on tax reform includes House Speaker Paul Ryan (R-Wis.), Senate Majority Leader Mitch McConnell (R-Ky.), Treasury Secretary Steven Mnuchin, National Economic Council Director Gary Cohn, Senate Finance Committee Chairman Orrin Hatch (R-Utah) and House Ways and Means Committee Chairman Kevin Brady (R-Texas).

In the statement, the group issued its support for lower taxes for individuals and businesses, with specific references to reduced business tax rates, expanded expensing and permanence. Noticeably absent is the border adjustment tax championed by House leadership.



MAIZALL Moves Forward in Collaborative Work for Corn Farmers

Last month, a delegation from the International Maize Alliance (MAIZALL), including NCGA Past and MAIZALL current President Pam Johnson, met with their South American counterparts in Argentina to collaborate on strategic planning for MAIZALL and to meet with a number of senior Argentine government officials.

While the participants in MAIZALL compete for markets abroad, they came together to reaffirm their commitment to and discuss their work toward common goals that benefit corn farmers in America, Brazil and Argentina. MAIZALL works to: enhance public support for trade, grow public understanding of and support for biotechnology; encourage transparent, predictable, science-based regulatory systems; promote synchronicity in approval processes; and encourage trade-enabling low level presence policies.

During the meetings, the board also re-established its priority activities. It was determined that tier one priorities included: working through the World Trade Organization to engage China and Europe; advancing harmonization; increasing outreach in Africa; and improving communications. In addition to these top-tier goals, the partners will also continue addressing crop protection and maximum residue levels issues and advancing sustainability.

The MAIZALL Board met with the Ministry of Agro-Industry of Argentina, the Buenos Aires Grains Exchange, the Institute for International Agriculture Negotiations, ArgenBio, the Argentina Seed Association, Aapresid, and the Agriculture Committee of the Chamber of Deputies.

These meetings focused primarily on efforts to cooperate on access issues in markets such as China and the African continent. MAIZALL received substantial feedback on how they could continue to collaborate to further these initiatives. Additionally, the Buenos Aires Grains Exchange invited MAIZALL to participate in a side event to the WTO Ministerial in December 2017.

"I have been working with MAIZALL since its inception and am impressed by how it has grown into a successful model for collaboration around a common purpose related to agricultural innovation," said Johnson. "This meeting brought the principals together to confer and renew our commitment to this important work. Following the dialogue, we emerged reinvigorated and eager to elevate our engagement even further."

The delegation included, in addition to Johnson, U.S. Grains Council Chairman Chip Councell, USGC Former Chairman Julius Schaaf, USGC Director of Industry Relations and Manager of Global Biotechnology Andrew Conner.

MAIZALL was formalized in June of 2013 with the signing of a MOU in Buenos Aires, Argentina.  MAIZALL is a farmer led, private sector partnership of three countries and four associations representing the major maize producers and exporters of the Americas: MAIZAR (Argentina); ABRAMILHO (Brazil); the National Corn Growers Association; and the U.S. Grains Council (United States).



Dow DuPont Merger to Occur on August 1

DuPont and The Dow Chemical Company announced that all required regulatory approvals and clearances have been received in order to close their merger by the end of the marketing day on August 31, 2017.

Shares of Dow and DuPont will cease trading at the close of the New York Stock Exchange at the end of the month.

Shares of DowDuPont will begin trading on the NYSE under the stock ticker symbol "DWDP" on September 1.

The companies continue to expect the intended spin-offs to occur within 18 months of closing.



Tyson Posts Better-Than-Expected Earnings

Tyson Foods Inc reported stronger-than-expected quarterly results on Monday, sending its shares up 5 percent, and said it would ramp up chicken production in the face of record demand from U.S. consumers. According to Reuters, the company spent more money on advertising and marketing for chicken in the third quarter ended on July 1, bringing down operating income for that segment.

Still, the company is working to increase its production capacity for fully cooked chicken and raw meat sold in packages in grocery stores to meet demand, Chief Executive Officer Tom Hayes said on a conference call with analysts.

Tyson is "essentially busting at the seams on both those areas," he said. "What we are focused on is making sure our supply meets our demand, and we're having a challenge right now."

U.S. per capita consumption of chicken is expected to hit a record high this year, according to National Chicken Council annual data that runs from 1965.

Sales of chicken have increased as consumers seek more protein in their diets. It is cheaper than beef and pork and considered more healthy.

Tyson said its sales volumes for chicken rose 1.6 percent in the third quarter ended on July 1, and average prices were up 2.9 percent.

Beef prices rose 5.3 percent on average, while pork prices rose 3.3 percent. Sales volumes for each were up less than 1 percent.

For the fiscal year, Tyson raised the low end of its profit forecast by 5 cents a share to $4.95, excluding special items. It kept the top end at $5.05 per share.

The company said it expected sales of more than $38 billion. It previously said they would remain flat at $36.88 billion.

For the quarter, Tyson said profit dropped 22 percent in its chicken unit, and operating margins fell to 10.4 percent from 13.9 percent. The company expects those margins to remain around 10 percent next year, with a nearly 3 percent growth in volume.

Net income attributable to Tyson fell nearly 8 percent to $447 million from $484 million a year earlier. Excluding items, earnings of $1.28 per share beat the analysts' average estimate of $1.18, according to Thomson Reuters I/B/E/S.