NEBRASKA 2017 ANNUAL CROP PRODUCTION SUMMARY
Corn for grain production in Nebraska based on year-end surveys is estimated at 1.68 billion bushels, down 1 percent from 2016, according to the USDA's National Agricultural Statistics Service. Yield of 181 bushels per acre is up 3 bushels from last year. Farmers harvested 9.30 million acres of corn for grain, down 3 percent from 2016.
Corn for silage production is 4.10 million tons, down 13 percent from last year. Silage yield of 19.5 tons per acre is unchanged from last year. Corn for silage harvested acreage of 210,000 acres is down 30,000 acres from last year. Corn acreage planted for all purposes is 9.55 million acres, down 3 percent from last year.
Soybean production for 2017 totaled a record high 326 million bushels, up 4 percent from 2016. Yield, at 57.5 bushels per acre, is down 3.5 bushels from a year earlier. Area for harvest, at a record high 5.67 million acres, is up 10 percent from 2016. Planted acreage totaled 5.70 million acres, up 10 percent from last year.
Sorghum for grain production in 2017 is estimated at 12.0 million bushels, down 33 percent from 2016. Yield, at 89 bushels per acre, is down 13 bushels from a year earlier. Area harvested for grain, at 135,000 acres, is down 23 percent from 2016.
Sorghum for silage production is 220,000 tons, up 57 percent from last year. Silage yield of 10.0 tons per acre is down 4.0 tons from last year. Sorghum for silage harvested acreage of 22,000 acres is up 12,000 acres from last year. Sorghum acreage planted for all purposes is 180,000 acres, down 20,000 acres from last year.
Alfalfa for hay production, at 3.28 million tons, is up 5 percent from a year earlier. The average yield, at 3.95 tons per acre, is down 0.20 tons per acre from 2016. Area harvested for dry hay, at 830,000 acres, is up 11 percent from 2016. Alfalfa haylage or greenchop production, at 67,000 tons, is down 48 percent from last year. Alfalfa haylage yield, at 6.70 tons per acre, is up 0.20 tons per acre from last year. Acreage harvested for haylage, at 10,000 acres, is down 10,000 acres from last year. Seedings of alfalfa during 2017 totaled 150,000 acres, up 40,000 acres from the year earlier.
All other hay production, at 2.88 million tons, is up 9 percent from last year. The average yield, at 1.60 tons per acre, is up 0.05 tons per acre from last year. Area harvested of other dry hay is 1.80 million acres, up 6 percent from 2016. All other haylage production, at 160,000 tons, is up 16 percent from last year. The average yield, at 8.00 tons per acre, is up 2.50 tons per acre from last year. Acreage harvested for all other haylage, at 20,000 acres, is down 5,000 acres from last year.
Proso millet production in 2017 is estimated at 2.35 million bushels, down 24 percent from last year's production. Yield, at 27 bushels per acre, is down 8 bushels from a year earlier. Area harvested for grain, at 87,000 acres, is down 1 percent from 2016. Area planted, at 105,000 acres, is up 11 percent from last year.
Oil sunflower production in 2017 is 41.0 million pounds, up 9 percent from last year. Yield, at 1,440 pounds per acre, is up 90 pounds from a year earlier. Area harvested, at 28,500 acres, is up 2 percent from 2016. Area planted, at 30,000 acres, is up 3 percent from last year. Non-oil sunflower production of 28.1 million pounds is up 38 percent from last year. Yield, at 1,870 pounds per acre, is up 20 pounds from a year earlier. Area harvested, at 15,000 acres, is up 4,000 acres from 2016. Area planted, at 15,500 acres, is up 24 percent from last year.
Sugarbeet production is estimated at 1.44 million tons, up 2 percent from last year. Record high yield is estimated at 31.8 tons per acre, up 1.9 tons from the previous year. Acres harvested are estimated at 45,200 acres, down 4 percent from the previous year. Area planted, at 46,100 acres, is down 1,900 acres from last year.
Dry edible bean production of 3.90 million cwt is up 41 percent from a year ago. Record high yield, at 2,520 pounds per acre, is up 250 pounds from a year earlier. Area harvested, at 155,000 acres, is up 27 percent from 2016. Area planted, at 180,000 acres, is up 30 percent from last year.
Fall potato production is 9.07 million cwt, up 23 percent from 2016. Record high yield, at 480 cwt per acre, is up 30 cwt from a year earlier. Area harvested, at 18,900 acres, is up 2,500 acres from 2016. Area planted, at 19,000 acres, is up 2,500 acres from last year.
NEBRASKA DECEMBER 1, 2017 GRAIN AND HAY STOCKS
Nebraska corn stocks in all positions on December 1, 2017 totaled 1.46 billion bushels, up 3 percent from 2016, according to the USDA's National Agricultural Statistics Service. Of the total, 910 million bushels are stored on farms, up 5 percent from a year ago. Off-farm stocks, at 551 million bushels, are down slightly from last year.
Soybeans stored in all positions totaled 264 million bushels, up 15 percent from last year. On-farm stocks of 97.0 million bushels are up 15 percent from a year ago, while off-farm stocks, at 167 million bushels, are up 14 percent from 2016.
Wheat stored in all positions totaled 66.1 million bushels, down 20 percent from a year ago. On-farm stocks of 4.10 million bushels are down 45 percent from 2016 and off-farm stocks of 62.0 million bushels are down 17 percent from last year.
Sorghum stored in all positions totaled 9.76 million bushels, down 25 percent from last year. On-farm stocks of 1.70 million bushels are down 23 percent and off farm holdings of 8.06 million bushels are down 26 percent from last year.
On-farm oats totaled 600 thousand bushels, down 23 percent from 2016.
Hay stocks on Nebraska farms totaled 4.25 million tons, down 8 percent from last year.
Grain storage capacity in Nebraska totaled 2.11 billion bushels, up 7 million bushels from December 1, 2016. Total grain storage capacity is comprised of 1.18 billion bushels of on-farm storage, unchanged from last year, and 930 million bushels of off-farm storage, up 7 million bushels from last year.
NEBRASKA WINTER WHEAT SEEDINGS
Winter wheat seeded area for 2018 is estimated at 1.03 million acres, down from last year's seeded area of 1.12 million acres, according to the USDA's National Agricultural Statistics Service. If realized this would be a new record low, below the 1.12 million acres planted for harvest in 2017.
Winter Wheat Planted Acres Down Less Than 1 Percent
U.S. Winter wheat seeded area for 2018 is expected to total 32.6 million acres, down less than 1 percent from 2017. Approximate class acreage breakdowns are: Hard Red Winter, 23.1 million; Soft Red Winter, 5.98 million; and White Winter, 3.56 million.
IOWA 2017 FINAL CROP PRODUCTION TOTALS
Corn for grain production in Iowa for 2017 is estimated at 2.61 billion bushels, according to the USDA, National Agricultural Statistics Service Crop Production 2017 Summary report. Current year production is 5 percent less than the previous record of 2.74 billion bushels set in 2016. Iowa has led the Nation in corn production for the last 24 consecutive years and 39 of the last 40 years. Iowa's corn for grain yield is estimated at 202 bushels per acre. This is only the second time Iowa’s average corn for grain yield has been over 200 bushels per acre. Area harvested for grain is estimated at 12.9 million acres, equal to the November 1 forecast but 600,000 acres below 2016. Corn planted for all purposes in 2017 is estimated at 13.3 million acres.
Corn for silage production is estimated at 6.93 million tons, down 12 percent from 2016. The silage yield estimate of 21.0 tons per acre is down 3.0 tons per acre from 2016. Producers harvested 330,000 acres of corn for silage unchanged from 2016.
Soybean production is estimated at 562 million bushels in 2017. This is down 1 percent from the record of 566 million bushels set in 2016. The Iowa soybean crop yielded 56.5 bushels per acre in 2017. The harvested acreage of 9.94 million is down 10,000 acres from the November 1 forecast, but up 500,000 acres from 2016. Soybean planted acreage, at 10.0 million, is unchanged from November 1, but 500,000 acres above 2016. This year saw the most planted acres to soybeans in Iowa since 2006.
All hay production for the state is estimated at 3.35 million tons, up 4 percent from the 3.21 million tons produced in 2016. Producers averaged 3.10 tons per acre, down from 3.53 tons in 2016. All hay harvested acres are estimated at 1.08 million acres, up 170,000 acres from 2016.
Alfalfa and alfalfa mixtures production is estimated at 2.52 million tons, up 9 percent from 2016. Producers averaged 3.50 tons per acre, down 0.70 tons from 2016. Harvested acres are up 170,000 from last year, to 720,000 acres. Iowa producers seeded 80,000 acres of new seedings of alfalfa and alfalfa mixtures in 2017, equal to 2016.
Other hay production is estimated at 828,000 tons, down 8 percent from 2016. Producers averaged 2.30 tons per acre, 0.20 tons per acre below the 2016 yield. Harvested acres of other hay, at 360,000, are equal to 2016.
IOWA GRAIN STOCKS
Corn stored in all positions in Iowa on December 1, 2017, totaled 2.38 billion bushels, down 1 percent from December 1, 2016, according to the latest USDA, National Agricultural Statistics Service – Grain Stocks report. Of the total stocks, 63 percent were stored on-farm. The September - November indicated disappearance totaled 727 million bushels, 4 percent below the 755 million bushels from the same period last year.
Soybeans stored in all positions in Iowa on December 1, 2017, totaled 487 million bushels, 6 percent above the 458 million bushels on hand December 1, 2016. Of the total stocks, 43 percent were stored on-farm. Indicated disappearance for September - November is 127 million bushels, 12 percent below the 145 million bushels from the same quarter last year.
Oats stored on-farm in Iowa on December 1, 2017, totaled 1.75 million bushels, up 35 percent from December 1, 2016.
All hay stored on Iowa farms as of December 1, 2017, is estimated at 2.28 million tons, a decrease of 14 percent from December 1, 2016, according to the latest USDA, National Agricultural Statistics Service – Crop Production report. Disappearance from May 1, 2017, through December 1, 2017, totaled 1.70 million tons, compared with 1.18 million tons for the same period in 2016.
IOWA GRAIN STORAGE CAPACITY
Iowa on-farm storage capacity on December 1, 2017, was 2.10 billion bushels, up 50 million from December 1, 2016, according to the latest USDA, National Agricultural Statistics Service – Grain Stocks report. Iowa’s 880 off-farm storage facilities have a storage capacity of 1.47 billion bushels, up 40 million from the previous year. As of December 1, 2017, Iowa had a total of 3.57 billion bushels of storage capacity, the largest total storage capacity of any State.
USDA Crop Production 2017 Summary - January 2018
Corn for grain production in 2017 was estimated at 14.6 billion bushels, down 4 percent from the 2016 estimate. The average yield in the United States was estimated at a record high 176.6 bushels per acre, 2.0 bushels above the 2016 average yield of 174.6 bushels per acre. Area harvested for grain was estimated at 82.7 million acres, down 5 percent from the 2016 estimate.
Sorghum grain production in 2017 is estimated at 364 million bushels, down 24 percent from the 2016 total. Planted area for 2016 is estimated at 5.63 million acres, down 16 percent from the previous year. Area harvested for grain, at 5.05 million acres, is down 18 percent from 2016. Grain yield is estimated at 72.1 bushels per acre, down 5.8 bushels from 2016.
Rice Production in 2017 totaled 178 million cwt, down 20 percent from the 2016 total. Planted area for 2017 was estimated at 2.46 million acres, down 22 percent from 2016. Area harvested, at 2.37 million acres, was down 23 percent from the previous crop year. The average yield for all United States rice was estimated at 7,507 pounds per acre, up 270 pounds from the 2016 average yield of 7,237 pounds per acre.
Soybean production in 2017 totaled a record 4.39 billion bushels, up 2 percent from 2016. The average yield per acre was estimated at 49.1 bushels, 2.9 bushels below the record yield in 2016. Harvested area was up 8 percent from 2016 to a record high 89.5 million acres.
All cotton production is estimated at 21.3 million 480-pound bales, up 24 percent from 2016. The United States yield is estimated at 899 pounds per acre, up 32 pounds from last year. Harvested area, at 11.3 million acres, is up 19 percent from last year.
USDA: Corn Stocks Up 1 Percent from December 2016
Soybean Stocks Up 9 Percent
All Wheat Stocks Down 10 Percent
Corn stored in all positions on December 1, 2017 totaled 12.5 billion bushels, up 1 percent from December 1, 2016. Of the total stocks, 7.74 billion bushels are stored on farms, up 2 percent from a year earlier. Off-farm stocks, at 4.78 billion bushels, are up slightly from a year ago.
The September - November 2017 indicated disappearance is 4.38 billion bushels, compared with 4.50 billion bushels during the same period last year.
Soybeans stored in all positions on December 1, 2017 totaled 3.16 billion bushels, up 9 percent from December 1, 2016. Soybean stocks stored on farms totaled 1.49 billion bushels, up 11 percent from a year ago. Off-farm stocks, at 1.67 billion bushels, are up 7 percent from last December. Indicated disappearance for September - November 2017 totaled 1.54 billion bushels, down 4 percent from the same period a year earlier.
All wheat stored in all positions on December 1, 2017 totaled 1.87 billion bushels, down 10 percent from a year ago. On-farm stocks are estimated at 393 million bushels, down 31 percent from last December. Off-farm stocks, at 1.48 billion bushels, are down 2 percent from a year ago. The September - November 2017 indicated disappearance is 393 million bushels, 16 percent below the same period a year earlier.
Durum wheat stored in all positions on December 1, 2017 totaled 56.2 million bushels, down 23 percent from a year ago. On-farm stocks, at 30.7 million bushels, are down 38 percent from December 1, 2016. Off-farm stocks totaled 25.5 million bushels, up 8 percent from a year ago. The September - November 2017 indicated disappearance of 9.91 million bushels is 48 percent below the same period a year earlier.
Barley stored in all positions on December 1, 2017 totaled 155 million bushels, down 19 percent from December 1, 2016. On-farm stocks are estimated at 74.3 million bushels, 25 percent below a year ago. Off-farm stocks, at 80.8 million bushels, are 14 percent below December 2016. The September - November 2017 indicated disappearance is 24.6 million bushels, 35 percent below the same period a year earlier.
Oats stored in all positions on December 1, 2017 totaled 66.8 million bushels, down 12 percent from the stocks on December 1, 2016. Of the total stocks on hand, 23.3 million bushels are stored on farms, down 23 percent from a year ago. Off-farm stocks totaled 43.5 million bushels, down 3 percent from the previous year. Indicated disappearance during September - November 2017 totaled 5.19 million bushels.
Grain sorghum stored in all positions on December 1, 2017 totaled 226 million bushels, down 27 percent from a year ago. On-farm stocks, at 33.8 million bushels, are down 21 percent from December 1 last year. Off-farm stocks, at 192 million bushels, are down 28 percent from a year earlier. The September - November 2017 indicated disappearance from all positions is 171 million bushels, down 18 percent from the same period in 2016.
Pulse crops stored in all positions on December 1, 2017 are: dry edible peas, 9.48 million cwt; lentils, 4.20 million cwt; Austrian winter peas, 233 thousand cwt; all chickpeas, 2.62 million cwt; small chickpeas, 1.01 million cwt; and large chickpeas, 1.61 million cwt.
Corn states partner together for E15 television campaign on Big Ten Network
Big Ten Network viewers, meet Mike. Mike is the animated star of a new advertising campaign initiated by the Nebraska Corn Board. He’s a smart guy who cares about his car and its engine performance. In these 15-second and 30-second television commercials, a narrator describes why Mike chooses clean-burning, high-performing E15, which is a fuel choice blended with 15 percent American Ethanol.
In order to maximize the frequency and reach of the commercials on the Big Ten Network, the Nebraska Corn Board partnered with the corn checkoff boards from Iowa, Illinois, Ohio and Kansas to amplify overall exposure. The collaboration also helps establish consistent ethanol messaging between major corn producing states.
“We’ve been working for a number of years to develop and implement a campaign on the Big Ten Network,” said Dave Merrell, farmer from St. Edward and chairman of the Nebraska Corn Board. “BTN has a loyal following across the nation. With this widespread coverage, we’re able to reach parts of the country that may have the infrastructure for higher ethanol blends, but don’t necessarily have the advertising budgets to educate consumers.”
“Consumers are seeing more choices at the pump, which is great, but it can also be confusing,” said Paul Jeschke, farmer from Mazon, Illinois, and chairman of the Illinois Corn Marketing Board. “With this campaign, we chose to focus on E15, which can be used to fuel most cars on the road today and can be found at more than 1,300 fuel stations across the country.”
A website was also created to complement the television spots. On this website, motorists can provide their location to identify E15 fueling stations near them. The website is available by visiting http://www.getbiofuel.com/BTN.
“As corn states, we all have the similar goal to enhance demand for our farmers,” said Duane Aistrope, farmer from Randolph, Iowa, and president of the Iowa Corn Promotion Board. “Ethanol has been a huge driver of corn demand, and there is still so much potential for more growth. There are also so many benefits for consumers to fill up with more homegrown fuel that’s safe for their engines and better for our environment. We hope this campaign will encourage consumers to fuel up with higher blends of ethanol.”
The E15 television commercials began airing in January 2018 during the men’s basketball season and will continue to air through the next seasons of football and volleyball. In addition to the airings on the college sports network, the spots will be added to local network and cable channels.
March 1, 2018 Deadline for Soybean Farmers Interested in United Soybean Board Nominations
The Nebraska Soybean Board (NSB) is looking for soybean farmers interested in filling one of Nebraska’s four director positions with the United Soybean Board (USB), for a three-year term.
USB is made up of 73 farmer-directors who oversee the investments of the soybean checkoff on behalf of all U.S. soybean farmers. Checkoff funds are invested in the areas of animal utilization, human utilization, industrial utilization, industry relations, market access and supply. As stipulated in the Soybean Promotion, Research and Consumer Information Act, USDA’s Agricultural Marketing Service has oversight responsibilities for USB and the soybean checkoff.
Any farmer interested in applying needs to meet the following criteria:
1. Be involved in a farming operation that raises soybeans
2. Be a resident of Nebraska
3. Be at least 21 years of age
To be considered for the national leadership position, interested farmers need to submit a USDA Background Information Form before the March 1, 2018 deadline. To obtain this form, contact Victor Bohuslavsky at the Nebraska Soybean Board office at (402) 432-5720.
The NSB Board of Directors will submit to the U.S. Department of Agriculture a “first preferred choice nominee” and “second preferred choice alternate” for the open positions. The Secretary of Agriculture will make the final appointments. The USDA has a policy that membership on origin, gender, religion, age, disability, political beliefs, sexual orientation and marital or family status. The chosen individual will begin serving a three-year term in December 2018. Each individual appointed is eligible to serve a total of three consecutive terms.
Nebraska Sorghum Meeting Next Week
Making planting decisions for next year’s cropping system is one of the most important tasks facing farmers this time of year. The 2018 Nebraska Sorghum Symposium, to be held January 18 at the Nebraska College of Technical Agriculture in Curtis, Nebraska, will help the process by providing timely and useful information to aid farmers in making informed production and management decisions for their operation. Gain insight on the weather, market dynamics, production and management strategies, new technology in sorghum, sorghum’s grazing value, risk management, and more! Representatives of National Sorghum Producers will be available to provide an in-depth look at new developments and policy priorities as they work on behalf of sorghum producers – both at home and abroad. The meeting will conclude with the annual membership meeting of the Nebraska GSPA. Register by email at sorghum.board@nebraska.gov or call 402-471-4276. There is no cost to attend – lunch is included.
Key seminars being offered at 2018 Iowa Pork Congress
The Iowa Pork Producers Association has lined up several important business seminars for pig farmers and other attendees at the 2018 Iowa Pork Congress in Des Moines.
The 46th annual convention and trade show will be held Jan. 24 and 25 at the Iowa Events Center and all of the educational opportunities are offered at no additional cost to attendees.
IPPA is committed to offering seminars on the timely subjects and issues of greatest importance to pig farmers and the industry at Pork Congress. The swine industry's leading experts will present sessions on regulations, manure and cover crops, prices and profitability and foreign animal disease, as well as several others. The seminars are offered at no additional charge.
In addition to the seminars, producers can obtain or renew certification in the pork industry's PQA Plus and TQA program as well as manure application.
The following is a complete schedule of seminars, training sessions and speakers:
Wednesday, Jan. 24
Seminars
● Iowa Regulations & Nuisance Case Update
Eldon McAfee - Brick Gentry Law Firm
9:15 a.m. - 10:30 a.m.
Hy-Vee Hall, lower level, rooms 105 & 106
● Utilizing Livestock Manure in a Cover Crop Program
Dr. Dan Andersen - Iowa State University
Dr. Matt Helmers - Iowa State University
10:45 a.m. - 12:15 p.m.
Hy-Vee Hall, lower level, rooms 107 & 108
● Chesapeake Bay Lessons Learned: Producer Perspective
Jennifer Debnam - Maryland Pork Producers Association
1 p.m. - 2 p.m.
Hy-Vee Hall, lower level, rooms 105 & 106
● There's a Snake in my Bumper! - Keynote
Mr. Matt Rush
2:15 p.m. - 3:15 p.m.
Hy-Vee Hall, lower level, rooms 107 & 108
● Prices & Profitability: Economic Outlook
Dr. Steve Meyer - Express Markets, Inc.
3:30 p.m. - 4:30 p.m.
Hy-Vee Hall, lower level, rooms 105 & 106
Underwritten by National Hog Farmer
Training Sessions
● Pork Quality Assurance Plus certification
Mark Storlie - Iowa State University
10 a.m. - 12:30 p.m.
Hy-Vee Hall, lower level, room 103
● Transport Quality Assurance certification
Dave Stender - Iowa State University
1 p.m. - 3:30 p.m.
Hy-Vee Hall, lower level, room 103
Thursday, Jan. 25
Seminars
● Foreign Animal Disease Prep: What Should You Know?
Dr. Jim Roth - Iowa State University
Dr. Judith Labounty - Iowa Dept. of Ag and Land Stewardship
9:15 a.m. - 10:30 a.m.
Hy-Vee Hall, lower level, rooms 107 & 108
● Washington in the Age of Trump: Can Republicans Govern?
Jim Wiesemeyer - ProFarmer
10:45 a.m. - 11:45 a.m.
Hy-Vee. Hall, lower level, rooms 105 & 106
● EMMP Update from Iowa DNR
Ted Petersen - Iowa Dept. of Natural Resources
12 p.m. - 12:45 p.m.
Hy-Vee Hall, lower level, rooms 107 & 108
● USDA Dietary Guidelines: Why aren't they telling us to eat like pigs?
Dr. Eric Berg - North Dakota State University
1 p.m. - 2 p.m.
Hy-Vee Hall, lower level, rooms 105 & 106
● How NOT to fail an Audit: Euthanasia and other considerations
Erik Potter - Iowa State University
2 p.m. - 4p.m.
Hy-Vee Hall, lower level, rooms 107 & 108
Training Sessions
● Confinement Site Manure Applicator certification
Jeff Prier, Iowa Department of Natural Resources
Dan Andersen- Iowa State University
10 a.m. - Noon
Hy-Vee Hall, lower level, room 103
All seminars and training sessions are held in the lower level of Hy-Vee Hall at the Iowa Events Center. Seminars are funded by the Pork Checkoff!
The Iowa Pork Congress is open to all pork producers, allied business partners and others involved in the pork industry. Show hours are 9 a.m. to 5 p.m. on Jan. 24 and 9 a.m. to 4 p.m. on Jan. 25.
Admission at the door is $10 for those not preregistered.
For more information, contact the Iowa Pork Producers Association at (515) 225-7675, (800) 372-7675 or visit www.iowaporkcongress.org.
USDA Rule Allows Pork Imports From Mexico
The U.S. Department of Agriculture today finalized a regulation that will allow all Mexican states to export pork to the United States, a move supported by the National Pork Producers Council.
USDA’s Animal and Plant Health Inspection Service (APHIS) is implementing a science-based risk assessment that determined Mexico is free of Classical Swine Fever (CSF), highly contagious viral disease in pigs. It was eradicated from the United States in the late 1970s. APHIS in 2016 concluded that the risk of CSF from pork imports from Mexico is negligible.
“The U.S. pork industry is a strong supporter of free trade and of using epidemiological science and risk analyses to determine if trade can be safely conducted between countries,” said NPPC President Ken Maschhoff, a pork producer from Carlyle, Ill. “Mexico in 2017 was our No. 2 export market, so maintaining our good relationship with that country by ensuring fair and reciprocal trade is paramount for our producers.”
Through November last year, the United States shipped $1.4 billion of pork to Mexico.
Mexico in late 2007 requested market access to the United States for pork from the eight states in its central region but later amended that request to include all Mexican states. APHIS at that time conducted multiple reviews and determined Mexico’s control program for CSF was not sufficient to classify the country as negligible risk for the disease.
But because of the importance to the United States of the trade relationship with Mexico, USDA’s Foreign Agriculture Service provided funding through a Global Based Initiative to assist that country with improving its control program. Through the grant, Mexican officials received training in foreign animal disease diagnostics at USDA’s Plum Island Animal Disease Center and in-country training on case management and control activities. A subsequent review by the World Organization for Animal Health (OIE) determined that Mexico was free of CSF.
PORK SLAUGHTER RULE ONE STEP CLOSER TO FINAL
The White House Office of Management of Budget this week cleared the Modernization of Swine Slaughter Inspection Rule, the last step in the rule-making process before the regulation is finalized. Also known as the HACCP Inspection Models Project, or HIMP, the rule would allow the U.S. Department of Agriculture’s Food Safety Inspection Service to better focus its inspection resources and partner with the pork industry to ensure safe products are entering the food supply. It shifts certain food-safety responsibilities from federal inspectors to packing plant workers.
The National Pork Producers Council strongly supports the regulation, which will increase efficiency and effectiveness of the federal inspection process and allow for the rapid adoption of new food-safety technologies in pork slaughter. It also has the potential to increase U.S. hog slaughter capacity.
Currently, five U.S. pork packing plants are participating in HIMP pilot projects.
Growing Appetites Fuel Record U.S. Meat Production
America is producing more meat than ever. Farmers and meatpackers produced a record 99.7 billion pounds of red meat and poultry in 2017, the U.S. Department of Agriculture estimates. They are on track for an even bigger slaughter this year.
Tyson Foods Inc., Sanderson Farms Inc. and other meat companies are building new plants that are expected to push U.S. meat production up 3.8% in 2018, the biggest increase in more than 20 years.
"We have a world that has a growing middle class that's demanding protein," said Dean Meyer, a farmer near Rock Rapids, Iowa who built a new hog barn and cattle feedlot to grow his sales to nearby slaughterhouses run by Tyson, JBS and others. "We think that's a great opportunity."
Statement of Under Secretary Greg Ibach on Section 199A Tax Code Fix
The U.S. Department of Agriculture’s (USDA) Under Secretary for Marketing and Regulatory Programs Greg Ibach today issued the following statement regarding efforts to address concerns with recent changes to Section 199A of the federal tax code. Some agriculture stakeholders have raised questions about potential market effects on cooperatives and independent grain-related businesses.
Ibach’s statement is as follows:
“The aim of the Tax Cuts and Jobs Act was to spur economic growth across the entire American economy, including in the agricultural sector. While the goal was to preserve benefits in Section 199A for cooperatives and their patrons, the unintended consequences of the current language disadvantage the independent operators in the same industry. The federal tax code should not pick winners and losers in the marketplace. We applaud Congress for acknowledging and moving to correct the disparity, and our expectation is that a solution is forthcoming. USDA stands ready to assist in any way necessary.”
CHS reports $180.1 million first quarter earnings for fiscal 2018
CHS Inc. (NASDAQ: CHSCP, CHSCO, CHSCN, CHSCM, CHSCL), the nation's leading farmer-owned cooperative and a global energy, grains and foods company, today reported net income of $180.1 million for the first quarter of its 2018 fiscal year (three-month period ended Nov. 30, 2017), compared to net income of $209.2 million for the same period a year ago.
Consolidated revenues for the first quarter of fiscal 2018 were $8.0 billion, the same as fiscal 2017. Pretax income was $199.6 million and $225.6 million for the first quarter of fiscal 2018 and 2017, respectively.
"Despite challenging market conditions, CHS experienced a solid first quarter thanks to our continued focus on three key priorities: strengthening relationships, sharpening operational excellence and restoring financial flexibility," said CHS President and Chief Executive Officer Jay Debertin. "In the first quarter, we recorded solid earnings from our businesses and reduced long-term debt. These actions are helping to strengthen and grow CHS."
For the first quarter of fiscal 2018, reporting segment results were:
Energy
Energy generated pretax income of $113.1 million during the first quarter, compared to $70.0 million during the same period last year.
The $43.1 million increase was primarily driven by improved margins within refined fuels.
Ag
The Ag segment, which includes domestic and global grain marketing and crop nutrients businesses, renewable fuels, local retail operations, and processing and food ingredients, generated pretax income of $74.5 million for the three months ended Nov. 30, 2017, compared to $109.2 million for the same period the previous fiscal year.
The $34.7 million decrease was primarily the result of lower margins in grain marketing, processing and food ingredients and renewable fuels. Lower volumes in grain marketing and processing and food ingredients also contributed to the decrease.
The decrease was partially offset by an increase in earnings in the crop nutrients and country operations businesses.
Nitrogen Production
This segment is comprised of the company's investment in CF Industries Nitrogen, LLC (CF Nitrogen), and generated pretax income of $5.7 million during the first quarter of fiscal 2018, compared to $27.0 million during the same time in fiscal 2017.
The decrease in earnings was primarily due to a gain of $29.1 million from an embedded derivative associated with CF Nitrogen that was recognized in fiscal 2017. There was no comparable gain in the current fiscal year.
This decrease was partially offset by higher urea and urea ammonium nitrate prices.
Food
This segment is comprised of the company's investment in Ventura Foods, LLC (Ventura Foods), and generated pretax income of $1.0 million in the first quarter of fiscal 2018, compared to $10.6 million during the same period of fiscal 2017.
The decrease in earnings was due to lower margins at Ventura Foods.
Corporate and Other
This category is primarily comprised of the company's wheat milling joint venture and its financing, hedging and insurance operations, and generated pretax income of $5.3 million in the first quarter of 2018, compared to $8.7 for the same period of fiscal 2017.
The decrease in earnings was due to lower earnings from the wheat milling joint venture and less interest revenue due to amending a receivables securitization agreement in late FY17, pursuant to which we no longer receive interest income from those receivables.
Livestock Traceability: Opportunities for Animal Agriculture
The National Institute for Animal Agriculture will fuse new features into this year's conference, titled Livestock Traceability: Opportunities for Animal Agriculture, taking place April 10th–12th at the Renaissance Denver Stapleton Hotel in Denver, Colorado. NIAA will once again offer animal agriculture stakeholders opportunities for communication, education and consensus–building on a critical issue concerning its constituency.
Livestock Traceability impacts all of animal agriculture. Possible disease outbreaks, international trade concerns, biosecurity issues, food globalization, and place of origin labeling discussions influence consumers, policy makers, producers and distribution industries.
It's in the media, it's on the minds of shoppers, and it's at the forefront of agendas for both industry associations and government agencies. It is up to animal agriculture professionals to lead the discussion.
NIAA will also be hosting a very interactive workshop titled: Traceability and the Real World on Thursday, April 12, immediately following the conference. This workshop will focus on economics, technology, data management, action items, and next steps.
Also new this year will be the Trade Show/Technology Showcase with specific and expanded hours to allow plenty of time for attendees to learn about the most current technology, products and services focused on Livestock Traceability.
To maximize the effectiveness of the meeting, the NIAA Species Committee members will be included into the Issue Council discussions. All the issues that matter to individual species groups will now be part of the larger conversation in the six different Councils meetings on Animal Health Emergency Management, Global Animal Health and Emerging Disease, Antibiotics, Animal Care, Animal ID & Information Systems, Food Security, Regulatory & Trade and a special meeting of the Aquatic Livestock Committee.
Join NIAA for another outstanding, interactive event at the 2018 NIAA Annual Conference April 10–12, 2018 in Denver, Colorado. Registration is now open. Go to the NIAA website www.animalagriculture.org.
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