Thursday September 7 Ag News

Big Red Grain Mkt & Risk Mgt Breakfast

Extension is hosting a "Big Red Grain Marketing & Risk Management" breakfast meeting on Friday Sept 15th at ENREC (formerly ARDC) near Mead.  Breakfast at 745am, featured speaker at 8:15am.  Guest speakers are Jeff Peterson with Heartland Farm Partners, NE Extension Economist and Ag Mkt Sp. Cory Walters, and Saunders Co FSA Exec. Dir. Tim Davis.  You're asked to RSVP with Keith Glewen by noon on Sept 13th.... call 800-529-8030 or email kglewen1@unl.edu. 



DON'T OVERGRAZE WARM-SEASON GRASSES
Bruce Anderson, NE Extension Forage Specialist
               Remember the old grazing adage “take half and leave half”?  Let’s see how it applies to your pastures this fall.

               "Take half and leave half” was the grazing management recommended for many years on rangeland and for planted warm-season grasses.  And in many cases it still is.  But today, more emphasis is on grazing techniques that use cross-fences to form multiple paddocks.  These techniques are known by many names like management intensive grazing, controlled grazing, even mob grazing.  Used correctly, they permit increased stocking rates and can produce excellent animal performance.

               How you graze your pastures, though, does not affect the basic growth processes of your grasses. If you severely graze a pasture short, plants in that pasture need extra time to recover before they are grazed again.  And warm-season grasses are particularly sensitive to recovery periods that are too short.  This is true regardless of whether the plants are in a continuously grazed pasture or the plants are separated into many rotationally grazed paddocks.

               Recovery time is particularly important as winter approaches.  Extra rain on many pastures recently allowed grass to thrive.  You still may have enough growth to provide grazing for another month or two.  But plants grazed hard earlier this summer may not have fully recovered yet despite the rain.  Severe grazing now, before full recovery from earlier grazing, will weaken plants as they go into winter.  Plants probably will survive, but next spring they will green-up later, early growth will be slow, and they'll compete poorly with weeds.

               As we approach winter, “take half and leave half” still may be a good management technique.  It helps assure that your pastures will be healthy and grow vigorously again next year.



Farmers elected to Iowa Soybean Association, national leadership posts

Soybean farmers were elected to leadership positions at the September meeting of the Iowa Soybean Association (ISA) board of directors.

Those tabbed to serve as ISA officers were: Lindsay Greiner, Keota — president-elect; Stephanie Essick, Dickens — treasurer; Tim Bardole, Rippey — secretary; and Dave Walton, Wilton — executive committee.

Bill Shipley of Nodaway accepted the gavel as president and welcomed the newly elected state soybean leaders to their key posts.

“It’s an important time in agriculture as we work to manage the variability and uncertainty that accompanies erratic weather, trade and regulations,” he said. “The Iowa soybean board is committed to serving the needs of farmers by providing the tools and resources to manage the continuous changes that impact our competitiveness as farmers.

“I look forward to working with our executive committee and all directors to represent the needs of all farmers,” he added, “while effectively managing the investment soybean farmers make in their industry courtesy of the soybean checkoff.”

ISA directors also elected John Heisdorffer of Keota to serve a third term as a director of the American Soybean Association.

Heisdorffer said he looks forward to helping craft a new farm bill and serving fellow farmers and soybean growers.

“We’ll continue to focus on trade given the importance of finding markets for America’s most valuable export,” he said. “We’ll also remain actively engaged in production issues, including the use of dicamba. It’s important we work with industry to review, investigate and, where necessary, resolve any performance issues related to this important tool for managing weeds.”



U.S. Beef Exports Stay Red-hot in July; Pork Exports Lower

U.S. beef exports remained well above last year’s pace in July, posting one of the highest monthly export value totals on record, according to statistics released by USDA and compiled by the U.S. Meat Export Federation (USMEF). July pork export volume dipped below its year-ago level for the first time in 15 months, with export value also down slightly.

July beef exports totaled 104,488 metric tons (mt), up 5 percent year-over-year, while export value reached $623.7 million – up 18 percent from a year ago and the highest since December 2014. For January through July, exports increased 11 percent in volume (711,364 mt) and 15 percent in value ($3.97 billion) compared to the first seven months of last year.

Exports accounted for 13.2 percent of total U.S. beef production in July and 10.7 percent for muscle cuts only. These were the highest ratios of 2017, but down from 14.2 percent and 11 percent, respectively, last July. For January through July, beef exports accounted for 12.8 percent of total production and 10 percent for muscle cuts – roughly steady with last year. Export value per head of fed slaughter averaged $299.21 in July, up more than $35 (or 13 percent) from a year ago. Through July, per-head export value was up 9 percent to $273.52.

Pork exports totaled 173,675 mt in July, down 4 percent year-over-year, valued at $488.9 million, down 0.6 percent. January-July volume was still up 11 percent from a year ago to 1.43 million mt, while export value was up 13 percent to $3.7 billion.

Exports accounted for 26 percent of total pork production in July (down from 27.5 percent a year ago) and 21 percent for muscle cuts only (down from 23 percent). For the first seven months of the year, with U.S. production at a record pace, the percentage of total production exported increased from 25.6 percent to 27.5 percent. For muscle cuts only, the increase was from 21.6 percent to 23 percent. Export value per head slaughtered in July was $54.22 – up slightly from June but 3 percent below last July. The January-July per-head average increased 10 percent from a year ago to $54.11.

“July was certainly a solid month, especially for beef exports, but these results remind us that the U.S. red meat industry operates in an intensely competitive global environment,” said USMEF CEO Philip Seng. “At a time when some of our most essential trade agreements are under review, we must be mindful of how these agreements have helped make U.S. beef, pork and lamb more readily available and more affordable for millions of global customers, to the benefit of U.S. producers and everyone in the U.S. supply chain.”

Beef export volume to Japan largest in four years; value highest of post-BSE era
Beef exports to leading market Japan totaled 27,689 mt in July, up 20 percent from a year ago and the largest since July 2013 – which was shortly after Japan increased the eligible U.S. cattle age to 30 months. July export value to Japan increased 36 percent to $175.7 million, the highest monthly total since 1996. For January through July, exports to Japan were up 23 percent in volume (178,501 mt) and 29 percent in value ($1.08 billion). USMEF’s featuring of chilled beef in Japan continues to pay dividends as chilled exports were up 39 percent to 83,951 mt valued at $613 million (up 40 percent). Driven by strong growth in Japan’s foodservice industry, especially the gyudon beef bowl chains which heavily rely on U.S. short plate, U.S. frozen beef exports to Japan were up 12 percent to 64,928 mt (valued at $250 million, up 18 percent). But Japan’s frozen beef safeguard was triggered in late July, increasing the duty on frozen beef imports from suppliers without a trade agreement with Japan, including the U.S., from 38.5 percent to 50 percent. The impact of the safeguard is not likely to surface until the September export data is available. But since August, U.S. frozen beef has been at an even larger tariff disadvantage compared to Australian beef, which is subject to a duty rate of 27.2 percent under the Japan-Australia Economic Partnership Agreement.

Beef exports to South Korea dipped below the large volume of last July to 15,587 mt (down 5 percent), but were still the largest of 2017. July export value to Korea increased 8 percent from a year ago to $101.7 million. Through July, exports to Korea increased 9 percent in volume (98,944 mt) and 19 percent in value ($629.4 million), including an impressive 83 percent increase in chilled beef exports (22,432 mt) valued at $199 million (up 88 percent). The U.S. is now the largest supplier of beef to both Japan and Korea on a value basis, with the U.S. share of Korea’s imports increasing from 43 percent to 48.5 percent.

Other January-July highlights for U.S. beef exports included:
    After a slow start in 2017, beef exports to Hong Kong continue to rebound. Exports were up 13 percent year-over-year in volume (65,379 mt) and 21 percent higher in value ($417.8 million). July was the first full month for exports to China, as exports totaled 137 mt valued at $1.3 million.
    Beef exports to Taiwan increased 16 percent from a year ago in volume (24,234 mt) and 24 percent in value ($215.5 million), including chilled beef exports of 9,883 mt (up 19 percent) valued at $114 million (up 22 percent). U.S. beef holds more than 70 percent of Taiwan’s chilled beef market, the highest share of any Asian destination.
    Led by strong growth in Chile, Peru and Colombia, beef exports to South America increased 20 percent year-over-year in volume (16,159 mt) and 21 percent in value ($63.2 million). Exports to Brazil, which launched in late April, reached 1,198 mt valued at $3.2 million.
    A strong performance in the Philippines, Indonesia and Vietnam fueled 79 percent year-over-year growth in export volume to the ASEAN region (23,376 mt), with value up 59 percent to $114.1 million. This region is especially strong for beef variety meat exports, as volume reached 7,145 mt (up 176 percent) valued at $12.5 million (up 164 percent).
    Within North America, beef exports were fairly steady with last year as Mexico continues to be the second-largest volume destination for U.S. beef exports while Canada ranks fourth. Exports to Mexico increased 2 percent in volume (134,543 mt) but slipped 2 percent in value ($544.8). Exports to Canada were up 1 percent in volume (68,097 mt) and 4 percent in value ($475.7 million).

July pork exports slip despite powerful growth in Mexico, Korea, South America
Pork exports to Mexico remained on pace for a sixth consecutive annual volume record, with July volume up 7 percent from a year ago to 58,625 mt and value increasing 9 percent to $122.9 million. Through July, exports increased 20 percent in volume (457,190 mt) and 26 percent in value ($854.4 million). Both the U.S. and domestic pork industries continue to reap the benefits of Mexico’s rapidly growing per capita pork consumption, which has increased by about one-third over the past 10 years to 18 kilograms annually (based on USDA estimates).

Leading pork value market Japan saw a year-over-year decline in July, as exports dipped 7 percent in both volume (28,314 mt) and value ($120.5 million). Through July, exports to Japan remained modestly higher year-over-year in both volume (228,489 mt, up 2 percent) and value ($931.1 million, up 6 percent). This included chilled pork exports of 122,755 mt (down 3 percent) valued at $577 million (up 3 percent), as Canada continues to compete strongly for Japan’s high-value chilled pork market.

Other January-July highlights for U.S. pork exports included:
    In South Korea, pork exports continued to capitalize on strong red meat consumption growth, especially for convenience products and home meal replacement items, as exports to Korea climbed 30 percent in volume (103,142 mt) and 36 percent in value ($282.6 million).
    Led by strong growth in Colombia and Chile, pork exports to South America more than doubled year-over year in both volume (56,345, up 104 percent) and value ($143.6 million, up 109 percent). The White House recently announced that Argentina will soon open to U.S. pork, adding further opportunities in this growing region.
    Led by Honduras, exports to Central America are on a record pace, reaching 38,720 mt, up 6 percent from a year ago, valued at $92.4 million (up 8 percent). 2017 is also shaping up as a record year for pork exports to the Dominican Republic, where exports totaled 21,278 mt (up 42 percent) valued at $47.8 million (up 49 percent).
    Strong growth in the Philippines fueled a 24 percent increase (to 26,710 mt) in pork exports to the ASEAN region, valued at $68.8 million (up 34 percent). Exports also increased to Singapore and were steady to Vietnam.
    In the China/Hong Kong region, July exports dropped significantly from a year ago to 32,167 mt (down 33 percent) valued at $68.8 million (down 27 percent). July variety meat exports were the smallest in 18 months at 22,960 mt (down 10 percent). As China’s domestic pork production continues to rebound in 2017, January-July exports to the region were 8 percent below last year’s pace in volume (306,404 mt) but slipped just 1 percent in value ($627.1 million).

Lamb exports lose momentum in July
U.S. lamb export volume in July was below last year’s level at 593 mt (down 13 percent) while value was fairly steady at $1.48 million. Through July, lamb exports were down 13 percent from a year ago in volume (4,348 mt) but increased 8 percent in value to $11.1 million. For lamb muscle cuts only, January-July exports were up 13 percent in volume (1,264 mt) and 18 percent in value ($7.7 million) including year-over-year growth to Mexico, Central America, the Caribbean and Canada.



U.S. Exports Of Feed Grain In All Forms Breaks Record In 2016/2017 Marketing Year

The U.S. government released international trade figures for July on September 6, the eleventh month of data for the 2016/2017 marketing year for corn and sorghum. With just one month of data still unpublished, U.S. exports of feed grain in all forms (GIAF) has set a new record high, the result of increased demand, competitive U.S. prices and extensive marketing efforts by the U.S. Grains Council (USGC).

Thus far this marketing year (September-July), U.S. GIAF exports increased 17 percent from the same time the year prior (Sept.-July) to 106.4 million metric tons, according to data from the U.S. Department of Agriculture (USDA) and USGC analysis. The 11-month total now exceeds to previous record set for the full 2015/2016 marketing year.

Impressive year-over-year gains for corn and the grain equivalent of ethanol bolstered the record for exports. Corn exports totaled 54.7 million tons (2.15 billion bushels) during the first 11 months of the marketing year, a 29 percent jump year-over-year and the best performance for U.S. corn exports since 2007/2008.

With one month of data still remaining, current ethanol exports of 1.3 billion gallons have already exceeded the all-time high of 1.1 billion gallons set in 2011/12, largely due to record-setting exports to Brazil and India.

Additionally, increases in the grain equivalent of beef, pork, and poultry meat exports realized an 11 percent gain in corn compared to the same time the year prior and account for more than 21 million tons (827 million bushels) of corn equivalent exported in the form of meat.

These large export increases offset declines in other coarse grains (sorghum and barley) of 30 percent for a year-to-date export total of 5.8 million tons. Of note, exports for U.S. distiller’s dried grains with solubles (DDGS) and corn gluten meal fell only slightly year-over-year, despite the absence of the top two traditional buyers - China and Vietnam - the latter of which announced a return to the market as of Sept. 1, 2017. Other markets, including the Southeast Asian region and countries like Mexico, have diversed the marketplace this year by increasing purchases.



All Fertilizers Lower at End of August

Retail fertilizer prices continued to move lower the fifth week of August 2017, according to fertilizer retailers surveyed by DTN.

All eight of the major fertilizers were lower compared to last month. But, like last week, only two were down by any significant amount. UAN32 was 6% lower compared to the previous month and had an average price of $248 per ton. UAN28 was also lower, down 5% compared to last month. UAN28 had an average price of $215/ton.

The remaining six fertilizers were just slightly lower compared to last month. DAP had an average price of $433/ton, MAP $457/ton, potash $338/ton, urea $303/ton, 10-34-0 $418/ton and anhydrous $417/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.33/lb.N, anhydrous $0.25/lb.N, UAN28 $0.38/lb.N and UAN32 $0.39/lb.N.

All but one retail fertilizer are lower compared to a year earlier. Three of the eight major fertilizers are double digits lower.

Anhydrous is now 18% lower from a year ago, while 10-34-0 is 15% less expensive and UAN32 is 10% lower. UAN28 is 8% less expensive, urea is 7% lower, DAP is 4% less expensive and MAP is 2% lower.

The one fertilizer that is higher compared to last year is potash, which is now 3% more expensive.



Application Deadline for Conservation Legacy Awards Extended to Sept. 15

Share the story of how conservation is part of your farm operation, and you could be recognized with a Conservation Legacy Award at the next Commodity Classic, Feb. 27 – March 1, 2018, in Anaheim, Calif. This program showcases farm management practices of U.S. soybean producers that are both environmentally friendly and profitable. If you’re using conservation practices on your farm such as cover crops, reduced tillage, or other valuable conservation practices, don’t miss your opportunity to apply for this award. The deadline to enter is extended to Sept. 15.

All U.S. soybean farmers are eligible to enter to win a Conservation Legacy Award. Entries are judged on soil management, water management, input management, conservation, environmental management and sustainability. Three regional winners and one national winner are selected.

Award Winners Receive:
• An expense paid trip for two to Commodity Classic, Feb. 27 – March 1, 2018, in Anaheim, Calif.
• Recognition at the ASA Awards Banquet at Commodity Classic.
• A feature on your farm and conservation practices in Corn & Soybean Digest and a special online video.
• Potential opportunity to join other farmer-leaders on a trip to visit international customers of U.S. soybeans.

The Conservation Legacy Awards are sponsored by the American Soybean Association, BASF, Corn & Soybean Digest, Monsanto, the United Soybean Board/soybean checkoff and Valent. More information on past winners of the award and how to submit your application is available here... www.soygrowers.com. All applications must be submitted by Sept. 15, 2017.



Cattlemen Launch Monthlong Media Campaign for Comprehensive Tax Reform

The National Cattlemen’s Beef Association today kicked off a media and advertising campaign that will shine a spotlight on how various federal tax provisions impact America’s cattle and beef producers. The campaign, which will focus heavily on the death tax, aims to build support in Washington for comprehensive tax reform that makes our tax code fair for agricultural producers. The campaign will be centered around a new website, CattlemenForTaxReform.com, and will run through September.

“We have a once-in-a-generation opportunity to enact truly comprehensive tax reform, and we can’t afford to let this opportunity pass or to get it wrong,” said NCBA President and Nebraska cattleman Craig Uden. “Family ranchers and farmers deserve a full and permanent repeal of the onerous death tax, which charges them in cash on the often-inflated appraised value of their property and equipment. This campaign will shine a spotlight on the stories of real ranchers who have had to deal with this issue, and it will also highlight current tax provisions that we need to maintain, such as stepped-up basis, cash accounting, and deducibility of interest payments.”

In addition to the launch of the new website, the campaign kicked off with a two-minute video that will be heavily promoted on Facebook, Twitter, and other social media platforms. The campaign’s first video features fifth-generation California rancher Kevin Kester, whose family struggled for a decade to pay a large death-tax bill after his grandfather passed away. With the specter of the death tax still looming, Kevin is forced to spend precious time and energy – not to mention thousands of dollars – planning for how to pass the ranch on to his children and grandchildren.

“Without a doubt the biggest challenge that keeps me up at night is trying to figure out how to pass the ranching operation – our family operation on to the next generation,” Kester says in the video as he drives across his Bear Valley Ranch near Parkfield, Calif. “The current tax code is…leading toward more fragmentation of farms and ranches, which is not good for the environment or our ranchers and farmers.”

Over the coming weeks, NCBA will roll out several other promoted videos and infographics featuring profiles of ranchers and other members of the cattle-production community. The products will enable American cattlemen and women to share their priorities for tax reform in their own words. The campaign will also connect grassroots ranchers and producers with their elected officials on Capitol Hill as tax-reform legislation is considered this autumn.

“There’s a lot of misinformation out there on the tax debate – especially when it comes to who’s affected by the death tax,” Uden said. “This campaign will educate elected officials, the media, and the general public about how the tax code affects our American farmers and ranchers, who literally feed the world.”



American Biofuels Producers Demand U.S. Government Respond to Brazilian Tariff

Growth Energy, the Renewable Fuels Association, and the U.S. Grains Council are calling upon the U.S. government to develop an immediate response to Brazil’s newly implemented tariffs on U.S. ethanol imports, a trade barrier that threatens over $750 million in U.S. exports and American jobs.

On August 23, 2017, Brazil’s Chamber of Foreign Trade imposed an immediate two-year tariff-rate quota (TRQ) system for ethanol imports. Under the TRQ, a 20 percent tariff will be applied to purchases from the U.S. after a 600 million-liter (158.5 million gallon) quota is met. This year fuel ethanol exports to Brazil are at 1.17 billion liters (310 million gallons) through July, according to Census Bureau trade data.

The three organizations, which work jointly and with the U.S. Department of Agriculture (USDA) to develop overseas markets for U.S. ethanol, are imploring the Administration to immediately engage their Brazilian counterparts on the future of our relationships with regard to biofuels. It is vital that the Administration take immediate action and consider all avenues to encourage Brazil to either revoke the TRQ or substantially increase the tariff-free quota level to better reflect the current ethanol market and trade realities.

Brazil’s tactics are the latest step in a troubling global trend towards protectionist tariffs and other actions against the American biofuels industry. As the largest ethanol export market for American producers, the impact of this economic attack is both damaging and thoroughly counterproductive. American jobs, farms, and businesses are at risk; this cannot go unanswered.

As the two largest democracies and economies in the Western Hemisphere, Brazil and the U.S. share one of the world’s most important trade and economic relationships. However, this decision will not only hurt America’s ethanol industry, because ultimately, Brazil’s consumers will also pay the price as this will drive up their costs at the pump. Our hope is that this decision will be reversed.

“Brazil’s action is a violation of our mutual, longstanding agreement to maintain open trade between our countries, and the United States should not take this lying down,” Growth Energy CEO Emily Skor said.

“When faced with the consequences of their decisions and bad economics, countries are shifting the pain to the American corn farmer. Brazil’s actions undermine the zero-ethanol tariff arrangement between our two countries that has been in place for several years and that damage the potential cooperation between our two countries to expand global ethanol demand and trade. President Trump has been a strong supporter of America’s biofuels producers, and decisive action to defend this crucial domestic industry will be a clear reminder of the Administration’s continued commitment to strengthen the American economy. With ethanol production remaining a significant market for American corn and America’s farmers facing low commodity prices, government inaction on this vital issue would signal a detrimental economic downturn,” Skor said.

"About a decade ago, the U.S. and Brazil put aside a long-standing dispute over trade policy and began a process of mutual trade barrier disarmament,” said Renewable Fuel Association President and CEO Bob Dinneen. “In fact, U.S. policies like the RFS actually created additional opportunities that further incentivized the importation of Brazilian sugarcane ethanol. Both countries have benefited greatly from the free and fair trade that resulted from the elimination of arcane barriers, and the U.S. and Brazilian ethanol industries worked arm-in-arm to build a robust global market for renewable fuels. Unfortunately, Brazil’s recent protectionist actions are turning back the clock to an era of isolationism and inefficient global trade. In the end, Brazil’s new trade policy not only harms U.S. ethanol producers, but also penalizes Brazilian consumers who will be forced to pay more for their fuel as a result of CAMEX’s actions,” he added.

“We are encouraging our leadership to take action that will get us working together again,” said U.S. Grains Council President and CEO Tom Sleight. “I look forward to the day we are back to working together on global markets rather than putting in place protectionist measures that will ultimately hurt the global industry and our collective ability to reap the benefits of biofuels.”




Deere to Advance Machine Learning Capabilities in Acquisition of Blue River Technology

Deere & Company (NYSE: DE) has signed a definitive agreement to acquire Blue River Technology, which is based in Sunnyvale, California and is a leader in applying machine learning to agriculture.

"We welcome the opportunity to work with a Blue River Technology team that is highly skilled and intensely dedicated to rapidly advancing the implementation of machine learning in agriculture," said John May, President, Agricultural Solutions, and Chief Information Officer at Deere. "As a leader in precision agriculture, John Deere recognizes the importance of technology to our customers. Machine learning is an important capability for Deere's future."

As an innovation leader, Blue River Technology has successfully applied machine learning to agricultural spraying equipment and Deere is confident that similar technology can be used in the future on a wider range of products, May said.

Blue River has designed and integrated computer vision and machine learning technology that will enable growers to reduce the use of herbicides by spraying only where weeds are present, optimizing the use of inputs in farming – a key objective of precision agriculture.

"Blue River is advancing precision agriculture by moving farm management decisions from the field level to the plant level," said Jorge Heraud, co-founder and CEO of Blue River Technology. "We are using computer vision, robotics, and machine learning to help smart machines detect, identify, and make management decisions about every single plant in the field."

Already in 2017, Blue River Technology has been listed among Inc. Magazine's 25 Most Disruptive Companies, Fast Company's Most Innovative Companies, CB Insights 100 Most Promising Artificial Intelligence Companies in the World, and the Top 50 Agricultural Innovations by the American Society of Agricultural and Biological Engineers.

Deere said it will invest $305 million to fully acquire Blue River Technology. Deere plans to have the 60-person firm remain in Sunnyvale with an objective to continue its rapid growth and innovation with the same entrepreneurial spirit that has led to its success. The transaction is expected to close in September.

May said the investment in Blue River Technology is similar to Deere's acquisition of NavCom Technology in 1999 that established Deere as a leader in the use of GPS technology for agriculture and accelerated machine connectivity and optimization.



Farmer’s Business Network, Inc. Releases Seed Relabeling Report

Farmer’s Business Network, Inc., analyzed more than 7,500 seed labels, 2,550 unique genetic varieties from 110 seed companies, and 10,000 seed price invoices, and released the industry’s first-ever Seed Relabeling analysis. Comprising at least a $2.5 billion segment of the US corn and soybean market, Farmers Business Network℠ analysts set out to study the impact of relabeling on American farms and to add transparency to farmers’ arguably most important purchasing decision.

Seed Relabeling is a practice in which identical seed varieties and hybrids are sold by under multiple different brand names, often in the same market for very different prices. Seed companies use different “brand names” for each seed, which are almost always different than a seed’s actual genetic “Variety ID”, making it nearly impossible for farmers to track which products are resold by which brands.

Through its analysis, the report found that a full 38% of corn seed analyzed, and 45% of soybean seed analyzed, are relabeled and re-sold by multiple different brands. Individual corn seeds were found being sold by as many as 12 brands, for as much as a $97/bag price difference (35%) in the same state.

Over 63% of FBN℠ members planted seeds sold by multiple brands, and 95% of FBN members planted seeds from a seed company that engages in relabeling. Relabeled varieties are planted on at least 17% of FBN corn and soybean acres.

Seed Relabeling and Its Impact on Farmers
Seed relabeling has been a major frustration for farmers for a long time, but has lacked any transparency. Farmers can substantially over pay for seed by not knowing that the identical seed is sold by other brands at a lower price. It also means the actual genetic diversity available within each crop is much smaller. And most importantly, it can create the dangerous potential for farmers to accidentally concentrate genetic risk, leading to increased resistance issues.

An Industry-Wide Practice, Not Just Smaller Companies
Seed Relabeling was found to be common amongst the vast majority of seed companies. 71% of corn seed companies, and 79% of soybean companies studied, were found to be relabeling at least some of its seeds. More than 50 corn seed companies relabeled more than 50% of its seeds, and 10 companies more than 80%.

Many smaller, regional, and independent seed companies without breeding programs utilize relabeling to increase their product offerings and compete on price and service. However, the study also found widespread relabeling amongst the major consolidated agrichemical companies. Amongst the very largest seed and agrichemical companies, it is not uncommon to see more than 60% of a company’s seed product portfolio being relabeled and re-sold by multiple brands.

First Ever Broad Analysis
Seed Relabeling is relatively common knowledge but there’s been little transparency brought to the table to decode how prominent seed relabeling is. University researchers have in the past created variety matching analysis in particular crops, but have never been able to analyze the majority of the seeds available on the national market. 

“This was only possible by crowdsourcing from thousands of farmers, nationwide, simultaneously this planting season,” said FBN network Head of Analytics, Matt Meisner. “We rigorously examined every seed label and pricing invoice to build our cross-matching database.”

“We are a network of and by farmers whose mission it is to put Farmers FirstSM,” said Co-Founder & VP of Product, Charles Baron. “This information is critical for farmers and is their basic right as consumers.”

Likely A Conservative Estimate
As widespread as the practice of relabeling was found to be, FBN analysts still believe the estimates are actually conservative. “Each additional new seed entered in our system, the likelihood that it matches another seed increases. As the data set expands to encompass  all seeds on the market, the percent of each brand’s relabeling will almost certainly rise,” said Meisner.

FBN Network Providing Resources to Assist Farmers in Identifying Relabeled Seeds
As a part of the FBN membership, FBN analysts create a personalized Seed Relabeling assessment for any farm that adds seed tags. Later this fall, Seed Relabeling analysis will be incorporated into the industry leading FBN Seed Finder product.

“Once you’ve determined if your brands relabel,” said Baron, “it’s critical to identify identical hybrids to find the best prices and make the most informed seed purchase possible.”