Monday July 12 Crop Progress, WASDE, Crop Production + Ag News

 NEBRASKA CROP PROGRESS AND CONDITION

For the week ending July 11, 2021, there were 5.6 days suitable for fieldwork, according to the USDA's National Agricultural Statistics Service. Topsoil moisture supplies rated 7% very short, 32% short, 57% adequate, and 4% surplus. Subsoil moisture supplies rated 8% very short, 38% short, 53% adequate, and 1% surplus.

Field Crops Report:
Corn condition rated 1% very poor, 3% poor, 19% fair, 53% good, and 24% excellent. Corn silking was 19%, near 17% last year, but behind 25% for the five-year average.

Soybean condition rated 1% very poor, 3% poor, 17% fair, 57% good, and 22% excellent. Soybeans blooming was 59%, near 55% last year, and ahead of 44% average. Setting pods was 16%, near 12% last year, and ahead of 4% average.

Winter wheat condition rated 4% very poor, 8% poor, 30% fair, 47% good, and 11% excellent. Winter wheat harvested was 23%, well behind 45% last year, and behind 40% average.

Sorghum condition rated 0% very poor, 1% poor, 19% fair, 59% good, and 21% excellent. Sorghum headed was 3%, behind 11% last year and 9% average.
 
Oats condition rated 5% very poor, 9% poor, 33% fair, 45% good, and 8% excellent. Oats harvested was 13%, behind 30% last year and 25% average.

Dry edible bean condition rated 0% very poor, 0% poor, 18% fair, 70% good, and 12% excellent. Dry edible beans blooming was 6%, behind 18% last year.

Pasture and Range Report:
Pasture and range conditions rated 4% very poor, 9% poor, 59% fair, 25% good, and 3% excellent.



IOWA CROP PROGRESS REPORT

 Much needed rainfall limited farmers to 4.2 days suitable for fieldwork during the week ending July 11, 2021, according to the USDA, National Agricultural Statistics Service. There were scattered reports of crops lying flat due to strong winds and hail. Field activities included hauling grain, applying fungicides and harvesting hay and oats.

Topsoil moisture levels rated 9% very short, 31% short, 56% adequate and 4% surplus. Subsoil moisture levels rated 16% very short, 40% short, 42% adequate and 2% surplus. Districts in northwest Iowa reported subsoil moisture conditions as 78% percent short to very short while subsoil levels in southeast Iowa rated 87% adequate to surplus.

Widespread precipitation helped with stress on crops and forages. Corn silking or beyond reached 21%, two days behind the 5-year average. There were scattered reports of corn reaching the dough stage. Iowa’s corn condition improved slightly to 66% good to excellent.

Fifty-six percent of soybeans were blooming, 5 days ahead of the five-year average. Fifteen percent of soybeans were setting pods, 5 days ahead of normal. Soybean condition improved to 65% good to excellent.

Oats headed or beyond reached 97% with 72% turning color, three days ahead of normal. Ten percent of oats for grain has been harvested, two days ahead of the 5-year average. Iowa’s oat condition improved to 62% good to excellent.

The second cutting of alfalfa hay reached 50% complete, one day behind the 5-year average. Hay condition rated 57% good to excellent.

Pasture condition was rated 43% good to excellent. There was little stress on livestock this past week although a few producers reported some pinkeye in cattle.



USDA Weekly Crop Progress Report

The condition of the nation's corn crop did something last week it hasn't done in a while -- it improved, albeit just slightly, USDA NASS said in its weekly Crop Progress report on Monday. Nationwide, corn condition was rated 65% good to excellent as of Sunday, July 11, up 1 percentage point from 64% the previous week. The current rating is the same as this time in 2017. Corn silking was estimated at 26%, the same as last year but 4 percentage points behind the five-year average of 40%. Corn in the dough stage was estimated at 3%, on par with both last year and the five-year average.

Meanwhile, soybean conditions held steady last week at 59%, though that's still the third-lowest rating in 12 years.  NASS estimated that 46% of the crop was blooming as of Sunday, equal to last year's pace but 6 percentage points ahead of the five-year average of 40%. Ten percent of soybeans were setting pods, equal to the five-year average.

Winter wheat harvest progressed 14 percentage points during the week to reach 59% complete as of Sunday. That is 6 percentage points behind the five-year average of 65%. NASS is no longer reporting conditions for this year's winter wheat crop.

For the first time in several weeks, spring wheat condition also held steady from the previous week, though it remains at an abysmal 16% good to excellent, still the lowest good-to-excellent rating since 1988.  Eighty-three percent of the spring wheat crop was headed, 2 percentage points ahead of the five-year average of 81%.



NEBRASKA CROP PRODUCTION REPORT

Based on July 1 conditions, Nebraska's winter wheat production is forecast at 42.0 million bushels, up 23% from last year, according to the USDA's National Agricultural Statistics Service. Average yield is forecast at 50 bushels per acre, up 9 bushels from 2020. Area to be harvested for grain is estimated at 840,000 acres, up 1% from a year ago.

Oat production is forecast at 1.26 million bushels, down 31% from last year. Average yield is forecast at 60 bushels per acre, down 3 bushels from 2020. Area to be harvested for grain is estimated at 21,000 acres, down 28% from a year ago.



IOWA CROP PRODUCTION REPORT

Oat production in Iowa is forecast at nearly 4.10 million bushels, down 28% from the 5.69 million bushels produced in 2020 according to the latest USDA National Agricultural Statistics Service - Crop Production report. Iowa oat growers intend to harvest 65,000 acres for grain, down 8,000 acres from last year. The expected yield is 63.0 bushels per acre, down 15.0 bushels from 2020.

The forecasts in this report are based on July 1 conditions and do not reflect weather effects since that time. The next crop production forecasts, based on conditions as of August 1, will be released on August 12.



U.S. Winter Wheat Production Up 4 Percent from June Forecast

Winter wheat production is forecast at 1.36 billion bushels, up 4 percent from the June 1 forecast and up 16 percent from 2020. As of July 1, the United States yield is forecast at 53.6 bushels per acre, up 0.4 bushel from last month and up 2.7 bushels from last year's average yield of 50.9 bushels per acre. Area expected to be harvested for grain or seed totals 25.4 million acres, unchanged from the Acreage report released on June 30, 2021, but up 11 percent from last year.

Other spring wheat production for grain is forecast at 345 million bushels, down 41 percent from last year. Based on July 1 conditions, yields are expected to average 30.7 bushels per harvested acre, down 17.9 bushels from 2020. If realized, this would be the lowest yield since 2002 for the United States. Area harvested for grain or seed is expected to total 11.2 million acres, unchanged from the Acreage report released on June 30, 2021, but 7 percent below 2020. Of the total production, 305 million bushels are Hard Red Spring wheat, down 42 percent from 2020.



USDA Increases Corn Production in July WASDE

DTN - USDA increased corn production to 15.165 billion bushels (bb), reflecting the updated 92.7-million-acre planting estimate from the June 30 Acreage report. It left yield estimates unchanged at 179.5 bushel per acre (bpa). Ending stocks for the 2021-22 crop year came in at 1.432 bb.

USDA's estimated soybean average yield was left untouched at 50.8 bpa. USDA also left 2021-22 soybean production unchanged at 4.405 bb.

Spring wheat production was forecast at 345 million bushels (mb), 41% below last year. Yields are expected to average 30.7 bpa, 17.9 bpa below last year.

CORN
UDSA's July supply and demand report reflects the higher acreage estimate from the June 30 survey of farmers. Using 92.7 million acres (ma) of planted acres, corn production increased by 175 mb. USDA also lowered beginning stocks, which are the ending stocks for the 2020-21 crop season by 25 mb.

Ending stocks for 2021-21 came in at 1.432 bb, reflecting the changes to supply but also numerous demand changes. USDA increased feed and residual use by 25 mb and exports by 50 mb.

The national average farm gate price was lowered by a dime to $5.60 per bushel.

USDA raised old-crop (2020-21) domestic ending stocks to 1.082 bb, a 25 mb increase that reflects higher feed and residual use implied by the June 30 Grain Stocks report.

Globally, USDA's outlook for 2021-22 corn ending stocks is 291.18 million metric tons (mmt), up 1.77 mmt from last month, largely reflecting increased production estimates from the United States.

Old-crop (2020-21) global ending stocks were lowered to 279.86 mmt. USDA lowered Brazil production to 93 mmt from last month's 98.5 mmt estimate, reflecting drought conditions that have taken a toll on the crop. Argentina partially made up for the decline in Brazilian production, with USDA raising its crop production estimate 1.5 mmt to 48.5 mmt.

SOYBEANS
With USDA's estimated soybean average yield untouched at 50.8 bpa, USDA also left 2021-22 soybean production unchanged at 4.405 bb. The agency also left all supply and demand for new-crop soybeans unchanged, as well as ending stocks for old-crop beans. That left new crop ending stocks at 155 mb, higher than most analysts expected.

U.S. farmgate soybean prices were trimmed 15 cents to $13.70 per bushel.

Globally, 2020-21 soybean ending stocks were boosted beyond analyst expectations to 91.49 million metric tons (mmt), up from 88 mmt in June. That spilled over into higher new-crop ending stocks of 94.49 mmt, despite trimming new-crop production estimates slightly to 385.22 mmt.

USDA's old-crop soybean production estimate for Brazil was left at 137 mmt, while USDA decreased Argentina's slightly to 46.5 mmt, down from 47 mmt in June.

WHEAT
USDA trimmed its estimate of all wheat production to 1.746 bb, down from 1.898 bb in its June report and on the low end of analysts' pre-report estimates. Ending stocks for old-crop wheat were left at 844 mb, unchanged from the June Grain Stocks report. With lower beginning stocks, lowered production, and trimmed feed and residual use more than offsetting a modest gain of 20 mb in imports, USDA dropped new-crop wheat ending stocks down to 665 mb, down from 770 mb in June -- again on the low end of pre-report estimates.

Wheat farm-gate prices were bumped up 10 cents to $6.60 per bushel.

USDA projected spring wheat production at just 345 mb below pre-report estimates and a whopping 41% decline from last year. Estimated spring wheat yield also took a hit from current drought conditions in the Northern Plains, dropping 17.9 bpa from last year to 30.7 bpa. If realized, this would be the lowest yield since 2002. USDA left expected harvested acreage at 11.2 million acres, unchanged from the June acreage report, and down 7% from last year.

Durum production was another victim on ongoing drought in the Northern Plains, with USDA hacking its production estimate down 46% from last year, to 37.2 mb, and average yield trimmed to 25.8 bpa, down 15.6 bpa from 2020.

Winter wheat is faring better, with USDA pegging winter wheat production 1.36 bb, up from 4% from the June estimate and up 16% from last year. As of July 1, yield is forecast of 53.6 bpa, up 2.7 bushels from last year. Area expected for harvest remains at 25.4 million acres, up 11% from last year.

Hard red winter (HRW) wheat production is also up 4% from the June estimate at 805 mb. Soft red winter (SRW) wheat is bumped up 8% from June to 362 mb. In contrast, white winter wheat production was trimmed due to ongoing droughty conditions in the Pacific Northwest, down to 198 mb, down 2% from the June estimate.

Globally, USDA put ending stocks for 2021-22 at 291.68 mmt, 5.12 mmt lower than last month due to reduced beginning stocks in some countries as wells as lower U.S. production.

LIVESTOCK
Monday's WASDE shared a different outlook than what the market saw a month ago. The biggest changes were seen in the pork sector as lower production had to be accounted for upon seeing the latest USDA Quarterly Hogs and Pigs report. The report indicated that there are fewer sows to be farrowed, which yields fewer hogs to market later in the marketing cycle, and already packers are running slower processing speeds amid tight market ready hog supplies.

For 2021, pork production was reduced by 40 million pounds, and beef production remained unchanged. Pork production was reduced as processing speeds have been cut, and unchanged beef production passes the smell test as lighter carcass weights offset the market's heightened slaughter pace.

Projected steer prices for the third quarter jumped $5.00 from last month to average an estimated $120.00, and fourth quarter steer prices jumped $3.00 to $123.00. These quarterly increases pushed the annual steer price to average $119.20, which is $2.20 more than last month's projection of $117.00

Barrow and gilt prices for the third quarter fell by $1.00 to $77.00, and fourth quarter hog prices fell by $2.00 to average an anticipated $64.00. These quarterly price reductions pulled the projected barrow and gilt prices to average $69.40, which is $0.80 less than last month's production.

Beef imports were unchanged from a month ago, but beef exports grew by another 80 million pounds to 3,422 million pounds for the year. Both pork imports and exports were unchanged from a month ago (imports at 982 million pounds and exports at 7,552 million pounds).



HARVESTING SUMMER ANNUAL GRASSES
– Jerry Volesky, NE Extension

It can be a little tricky to put up good quality hay from summer annual grasses like sorghum-sudan hybrids, pearl millet, and forage sorghums.  Here are some tips to help make sure these types of hay are of good quality and that hay is dry and will not heat or mold.

Nearly all problems making good summer annual grass or cane hay are caused by their stems.  Stems are low in protein and energy, they are unbearably slow to dry, and the lower stems contain most of the potentially toxic nitrates.

To solve some problems, cut early, when plants are only waist high.  When cut early, stems are smaller, they’re eaten more readily, and the hay contains more protein and energy.  Also, there is less plant volume.  So, with smaller stems and fewer of them, the hay will dry quicker.  Although you will have less tonnage when cutting early, you are creating more days for regrowth and a good second cutting.

Regardless of when you harvest though, cut it high, leaving eight to ten inches of stubble.  Tall stubble pays off three ways – it helps plants begin regrowth quicker, it holds hay off the ground so air can help dry underneath, and it keeps many nitrates out in the field stubble rather than harvesting them all in your hay.

And finally, always crimp the hay.  Even when stems are small, the waxy coating on the stems cause slow drying.  But if you break open these stems by crimping, water will be able to escape and evaporate more quickly.

So cut it early, cut it high.  Crimp the stems and they will dry.



Celebrating 49 years of Conservation!

July 2021 marks 49 years of protecting lives, protecting property, and protecting the future of natural resources for Nebraska’s 23 Natural Resources Districts (NRDs).  NRDs are unique because they are governed by locally elected boards and Nebraska is the only state to have this system.

Senator Maurice Kremer introduced and the Nebraska Legislature enacted Legislative Bill (LB) 1357 in 1969 to combine Nebraska’s 154 special purpose entities into 24 Natural Resources Districts by July 1972.  The original 24 NRDs’ boundaries were organized based on Nebraska’s major river basins which allows for better management practices to be applied to similar topography.  In 1989, the Middle Missouri NRD and the Papio NRD were merged into one, becoming the Papio-Missouri River NRD which resulted in the current 23-NRD system.

“Nebraska’s 23 NRDs have been involved in a wide variety of projects and programs to conserve and protect the state’s natural resources since 1972,” said Julie Wragge, Information & Education Specialist for the Lower Elkhorn Natural Resources District (LENRD) in Norfolk.

Wragge added, “NRDs are charged under state law with 12 areas of responsibility including flood control, soil erosion, and groundwater management.  While all NRDs share the 12 main responsibilities, each district sets its own priorities and develops programs to best serve local needs, protecting Nebraska’s natural resources for future generations.”



Analyzing the Proposed 30x30 Conservation Plan
July 22, Noon-1 p.m. CDT     
With: Dave Aiken, Professor and Agricultural Law & Water Specialist, Department of Agricultural Economics, University of Nebraska-Lincoln

On Jan. 27, President Biden signed his climate action executive order, pledging, among other things, to conserve at least 30% of U.S. land and water by 2030. On May 6, an interagency report to the president provided some detail for implementing the 30x30 plan. The report pledges to honor private property rights and to honor existing voluntary stewardship efforts of private landowners as well as building on existing land and water conservation programs. Aiken will describe the proposed 30x30 program and discuss how the U.S. may be closer to reaching 30% land protection than most realize.

Register at cap.unl.edu/webinars.



New resource can assist farmers beginning to implement conservation

For many producers, conservation is an important tool in keeping their farm or ranch resilient for years to come. One way producers can receive support for implementing conservation practices is through programs offered by the Natural Resources Conservation Service (NRCS).

For farmers and ranchers new to implementing conservation practices like cover crops, the path to receiving support through a cost-share program might not always be clear. A series of resource guides released today by the Center for Rural Affairs may be able to help, however.

“This new resource addresses some of the common questions we’ve received from years of connecting with farmers and ranchers, such as ‘Can I participate in federal cost-share programs if I rent the land I farm?' to ‘How do payments and taxes work for these programs?’” said Kalee Olson, a Center policy associate.

Available in English and Spanish, the resources provide details on two of the U.S. Department of Agriculture’s flagship working lands conservation programs—the Conservation Stewardship Program (CSP) and the Environmental Quality Incentives Program (EQIP). Both offer financial and technical assistance to producers who want to improve their natural resources, including soil, water, and wildlife habitat, without taking land out of production.

“One of the most important things a farmer or rancher can do is develop a good relationship with their local NRCS and Farm Service Agency (FSA) offices,” Olson said. “We hope farmers and ranchers will use these resources as a template for starting that partnership.”

The resource guides can be downloaded at cfra.org/publications. For more information, email Olson at kaleeo@cfra.org or call 402.687.2100, ext. 1022.



USDA Announces Dates for Conservation Reserve Program Grasslands Signups

Agricultural producers and landowners can apply for the Conservation Reserve Program (CRP) Grasslands signup from today until August 20. This year, the U.S. Department of Agriculture (USDA) updated signup options to provide greater incentives for producers and increase the program’s conservation and climate benefits, including setting a minimum rental rate and identifying two national priority zones.

The CRP Grassland signup is competitive, and USDA’s Farm Service Agency (FSA) will provide for annual rental payments for land devoted to conservation purposes.

“We are excited to roll out our new and improved CRP Grasslands signups,” said FSA Administrator Zach Ducheneaux. “Bottom line, CRP now makes more financial sense for producers while also providing a bigger return on investment in terms of natural resource benefits. The Grasslands signup is part of a broader suite of tools available through CRP to integrate key conservation practices on our nation’s working lands.”

Grasslands Signup
CRP Grasslands helps landowners and operators protect grassland, including rangeland, and pastureland and certain other lands, while maintaining the areas as working grazing lands. Protecting grasslands contributes positively to the economy of many regions, provides biodiversity of plant and animal populations, and provides important carbon sequestration benefits.

FSA has updated the Grasslands Signup to establish a minimum rental rate of $15 per acre, which will benefit 1,300 counties.

To focus on important wildlife corridors, FSA also identified National Grassland Priority Zones, providing extra incentives to producers for enrolling grasslands in important migratory corridors and environmentally sensitive areas – the Greater Yellowstone Elk Migration Corridor and the Severe Wind Erosion – Dust Bowl Zone. Counties within these two zones get extra ranking points as well as $5 added to their rental rate. The CRP Grasslands Ranking Factors fact sheet has additional information.

How to Sign Up
To enroll in the CRP Grasslands signup, producers and landowners should contact USDA by the August 20 deadline. Service Center staff continue to work with agricultural producers via phone, email, and other digital tools. Because of the pandemic, some USDA Service Centers are open to limited visitors. Contact your Service Center to set up an in-person or phone appointment. Additionally, more information related to USDA’s response and relief for producers can be found at farmers.gov/coronavirus.



Higher Octane Fuel Standard Would Benefit Drivers, Farmers, Rural Communities, and the Environment

As the Environmental Protection Agency (EPA) updates its greenhouse gas emissions standards for passenger vehicles and light duty trucks, a coalition of farm, biofuels, and environmental organizations is urging the administration to propose a higher octane fuel standard.

In a letter sent today to President Joe Biden, the group – which includes National Farmers Union (NFU) and several of its state divisions –  also requested that EPA open a comment period on the role that high octane low carbon (HOLC) fuels can play in advancing the administration’s “climate, environmental justice, public health, economic revitalization, and energy security objectives.” They noted that the Alliance for Automotive Innovation (AAI), which manufactures 99 percent of affected vehicles, also supports a transition to HOLC fuels.

NFU President Rob Larew expanded on the coalition’s priorities in a statement:
 
“High octane, low carbon fuels, including higher-level blends of ethanol, hold so much potential – and we should be doing everything we can to realize that potential.

"These fuels improve vehicle and fuel efficiency, which in turn can reduce greenhouse gas emissions, improve air quality, conserve oil, and strengthen energy security. That alone should be plenty of justification for the EPA to introduce a higher octane fuel standard. But the benefits go far beyond that – high octane fuels also drive economic growth and create new jobs in rural communities, slash pump prices for drivers, and open new markets for farmers. Given these many advantages, there’s really no reason the administration shouldn’t increase octane levels in fuel.”



Yogurt Rule May Aid Consumer Win on Fake Milk – If FDA Follows Through
National Milk Producers Federation

It’s a shame to even have to say this, but it’s 2021, so just to be clear: Logic matters. Consistency matters. That’s why a new FDA rule that defines what is and isn’t yogurt has much broader, and potentially very positive, implications in one of the most contested consumer issues of the day – the proper labeling of milk and dairy products.

Background: FDA last month issued a final rule taking effect today that amends yogurt’s standard of identity – the legal definition of what a food is – by modernizing rules to fit changes in yogurt-making technology. It also revokes the previous individual standards of identity for low-fat yogurt and nonfat yogurt. Industry compliance is expected by Jan. 1, 2024.

The new rule is rooted in a response to a citizen’s petition from the National Yogurt Association filed in February 2000. The slow pace isn’t unusual, unfortunately, and undoubtedly there will be quibbles with some details of the 22-page document. There always are. But FDA’s decision is important: It defends principles that support transparent food labeling and protects consumers. And those principles matter well beyond yogurt, with the FDA promising a review of a much larger issue – the labeling of plant-based milk alternatives – by next June.

The rule offers a robust defense of standards of identity, which ensure that consumers purchase products that meet their expectations. As FDA writes, “Any food that purports to be or is represented as yogurt, must conform to the definition standard of identity for yogurt.” So, what’s in yogurt? “Cream, milk, partially skimmed milk, skim milk, and the reconstituted versions of these ingredients may be used alone or in combination as the basic dairy ingredients in yogurt manufacture,” the rule states. And how is yogurt made? “Yogurt is produced by culturing the basic dairy ingredients and any optional dairy ingredients with a characterizing lactic acid-producing bacterial culture.”

In other words: How a food is made, and where it comes from, matters.

The rule also reaffirms the role of nutrition quality in meeting consumer expectations. Discussion of the “nutritional or functional purposes” of ingredients permeates the document, and while the rule allows some flexibility on the need to fortify with Vitamin A in lower-fat yogurts, it restates the basic, crucial role that nutritional value plays in a product’s definition, as evidenced by FDA’s emphasis on the preservation of protein content and nutritional quality in the product’s formulation.

In other words: Whether a food has the nutritional value expected of that food, matters.

So, what could a rule about yogurt mean for the decades-old debate over plant-based imposters? The FDA doesn’t address that issue directly. But it’s clear that non-dairy products that call themselves yogurt don’t fit the identity standard, and a look at nutrition labels shows nothing resembling equivalence between real dairy yogurt and plant-based pretenders.

The basic principles are clear. That makes the implications strong.

If standards of identity matter as much as FDA says it does, then the phrase “the lacteal secretion, practically free from colostrum, obtained by the complete milking of one or more health cows” is critical – because that’s the standard of identity for milk, which FDA is pledged to enforce. And if nutritional integrity is as important to a food’s definition as the yogurt rule says it is, then beverages that are wildly deficient in protein and other nutrients compared to milk, shouldn’t call themselves “milk.”

That’s good news for consumers. But whether encouraging restatements of principles translate into action will depend on how important logic and consistency turn out to be.

If they are, all FDA has to do is 1. Follow its logic and 2. Be consistent (and of course, enforce. None of today’s proliferation of imposters would be a problem if only FDA enforced existing standards of identity and labeling regulations). With that, a path forward on fake milk becomes clear, one in which dairy-product integrity is protected and consumers aren’t led to believe that certain products may provide value that they don’t because of their labeling. Just like the National Yogurt Association – whose petition outlasted its own existence -- we have a citizen’s petition too, filed in 2019. With the yogurt rule complete, our petition should be answerable in much less than 21 years.

FDA has shown its hand in a rule that will help consumers make informed decisions. Extending the logic and consistency of the new yogurt standard to labeling of products using terms like milk, cheese and butter – and then enforcing them -- is long overdue.

The yogurt rule shows that reason can still win out, with standards of identity and nutritional value protected. That matters. A lot.



Greener Grilling the Way with Environmentally Friendly Charcoal

Summer is the time of year when many people fire up their backyard grills. Arguably, there is nothing that tastes more like summer than a burger, hot dog, chicken, or vegetable cooked on a charcoal grill.

Each year, millions of consumers use charcoal briquettes as a fuel for grilling. But those who use charcoal-fueled grills typically use lighter fluid or self-lighting charcoal to start their fire, and both contribute to air pollution around residential neighborhoods. Wouldn't it be nice if you could have your favorite grilled foods and help the environment? ARS scientists may be able to help with an environmentally friendly, lightweight, self-lighting charcoal.

Most charcoal briquettes are difficult to light because of their density; only their surface is exposed to air--an essential ingredient for starting a fire.

At the Western Regional Research Center's Bioproducts Research Unit in Albany, Calif., ARS plant physiologist Gregory Glenn reasoned that a porous briquette should be much easier to light and therefore eliminate the need for lighter fluid. To test his theory, Glenn used a foaming technique he learned from working with foamed concrete to develop a porous, foam briquette.

"The experimental, foam briquette is created by combining a conventional crushed or powdered charcoal mixture with a surfactant (a foaming agent) and water then mixing and whipping it to create a charcoal-foam slurry, which can be poured into molds and dried into shapes like briquettes, logs or cubes," said Glenn. "The charcoal's porous structure promotes the flow of oxygen around the briquette, which enables it to ignite quickly and easily without the use of lighter fluid--simply hold the match to the briquette and it will light. Then it can be used as a starter briquette to light the rest of your charcoal."

In theory, briquette manufacturers could vary the amount of surfactant used in the manufacturing process and thereby customize the cooking (burn time) and heating characteristics of the resulting charcoal product to suit the needs of the customer. Increasing the density of the charcoal-foam increases the burn time while decreasing the density has the opposite effect.

This new "foam charcoal" will contribute to less airborne particles and pollutants, helping consumers comply with regulations when air quality alerts are issued in their area. And, best of all, because this new charcoal eliminates the need for lighter fluid, you won't end up with particulates from lighter fluid condensing on the food you are cooking.

While this new type of charcoal is not yet commercially available, ARS scientists have filed a patent on the technology which is now available for licensing.



CN and KCS Emphasize Compelling Case for Pro-Competitive Combination in STB Filing, Now Awaiting Final Ruling on Voting Trust

CN and Kansas City Southern recently made a joint submission to the Surface Transportation Board  that explains why the STB should approve CN’s voting trust structure, which is a critical step toward full STB review on the merits of the proposed CN-KCS combination. This submission closes the record on the voting trust for the CN-KCS combination, and we await the STB’s decision.

Over 1,750 letters of support have been filed with the STB, including more than 1,000 specifically requesting approval of the proposed voting trust, which is an important component of the CN-KCS combination. The voting trust prevents unlawful and premature control of KCS, allows KCS to maintain independence and protects KCS’ financial health during the STB’s review of the ultimate combination of CN and KCS – all while CN remains financially strong.

The confidence CN and KCS have in the strength of their case is supported by the views of industry experts. Former STB Commissioner and Vice-Chairman William Clyburn, Jr. wrote in a Railway Age op-ed dated June 10 that he believes the CN voting trust addresses “unlawful control” and the “public interest” standard under the new rules, and that as such, the voting trust should be approved.

The proposed combination will establish seamless, single-line service from Canada, through the United States and into Mexico. The end-to-end CN-KCS combination will expand North American trade and power economic prosperity, provide numerous new connections and service options for customers, and deliver many compelling and innovative benefits for ports, employees and communities.

CN and KCS Address Claims Raised During Comment Period
While KCS is in the voting trust, KCS will be managed day-to-day by KCS’ existing management team and board, overseen by an independent trustee with extensive knowledge of KCS. It will retain both full independence and the ability to increase capital investments beyond its planned capital program.

Under the voting trust, the STB has oversight over any divestiture of KCS, if necessary, and CN has committed to the STB that if it is required to divest KCS out of trust, it would instruct the trustee to divest KCS in a way that maintains KCS as an intact entity.

CN and KCS Will Enhance Competition
CN and KCS chose to have their merger reviewed by the STB under the current merger rules knowing that it means the proposal will have to meet a higher standard of “enhanced competition.” The decision was made because customers should have a say and the commitments CN has made can and will enhance competition in many different ways.

CN has committed to divesting the sole area of overlap between the CN and KCS networks – KCS’ 70-mile line between New Orleans and Baton Rouge – thereby making the combination a true end-to-end transaction.

CN and KCS are also committed to preserving access to all major gateways on commercially reasonable terms. This commitment enhances route choice and provides all market participants, railroads and shippers a fair chance to compete.

How this works is that customers enjoying competitive joint line routings with CN or KCS to gateways, in cities such as New Orleans, St. Louis and Kansas City, will continue to have those routings available upon completion of the merger. These customers keep the interline service options they have today and add to those choices new, enhanced single-line service. The gateway commitment is about providing greater choices to customers and it will extend to all major U.S. gateways served by CN and KCS today.

As outlined in the joint filing, CN and KCS have committed to further enhance competition by providing customers with increased pricing transparency. Customers benefit from this transparency because it offers negotiating leverage.

The unparalleled pro-competitive benefits are clear upon a review of the North-South trade routes through the industrial and agricultural corridors in the United States. A map of major routes in the U.S. illustrates the balance of the industry and how a merger would improve competition by allowing CN-KCS to more vigorously compete with larger Class Is and against long-haul trucks for North-South flows of traffic. The map shows that CN-KCS would not alter the competitive balance of the industry and will in fact create new opportunities and increase choice for customers. Importantly, this North-South merger involving two of the three smallest U.S. Class I railroads would, if approved, be only the fifth-largest U.S. Class I.

CN’s Strong Financial Profile Will Drive Growth Through Investments
CN has one of the strongest financial profiles of all the Class I carriers, and it plans to maintain a strong balance sheet and retain an investment grade credit rating throughout the transaction and beyond. It has set forth a plan, including suspending stock repurchases, to pay down rapidly the debt that it will secure to fund a portion of the KCS purchase. The dividend policy during the transaction will not change.

CN has been a sector leader in growth over the past two decades, with targeted investments in its network to add capacity, deploy technology to improve safety and productivity and invest in railcars and locomotives. CN has already committed to investing $250 million in infrastructure across CN and KCS lines. This investment will result in more efficiency, more capacity and more opportunities for employees and communities. The majority of this investment will be utilized to upgrade the newly designated Kansas City Speedway – the line between Kansas City, MO, and Gilman, IL, providing a better, more competitive connection between Kansas City and Chicago – with additional investments in Illinois, Missouri, Michigan, Louisiana and Texas.

Kansas City remains a key location as the site of the combined company’s U.S. headquarters, a major gateway and an additional line to Detroit. KCS’ Shreveport-Kansas City line will be critically important to providing additional CN service to key markets and will not be downgraded or divested. Investments in the route will be made at a similar level or higher in the years after the CN-KCS combination is consummated.

As a larger truly North American continental enterprise with complementary routes and an enhanced platform for revenue growth, capital investment and job creation, CN and KCS are well-positioned to create new growth opportunities for key stakeholders.