Nebraska Extension offering Land Application Training in Feb.
Eight Nebraska Extension offices across the state will offer workshops in February providing livestock and crop farmers with information on how to turn manure nutrients into better crop yields while protecting the environment.
“The workshops will help livestock producers put to use the nutrient management planning requirements of Nebraska’s Department of Environmental Quality regulations and increase the economic value of manure,” said Leslie Johnson, UNL Animal Manure Management coordinator. Participants who attend the day-long event will receive NDEQ Land Application Training Certification.
Livestock producers with livestock waste control facility permits received or renewed since April 1998 must be certified, and farms must complete an approved training every five years. Re-certification will be held during the first two hours of the day-long land application training. Farm personnel responsible for land application of manure are encouraged to attend for either the initial or re-certification portion of the training.
The morning portion of the workshops will consist of a two-hour program including updates on changing regulations and other manure management topics, such as protecting herd health with biosecurity. Any farm staff responsible for implementing the farm’s nutrient plan are encouraged to attend.
Pre-registration is required for all workshops. A $60 fee per operation (includes one representative) will be charged for the workshops plus a $15 fee for each additional participant to cover local costs including lunch.
The re-certification portion of the workshop is $30 for each participant.
Dates, times and locations include:
WEST POINT: Feb. 13, 9 a.m., Nielsen Center, 200 Anna Stalp Ave.
LEXINGTON: Feb. 15, 9 a.m., Extension office, 1002 Plum Creek Parkway
OGALLALA: Feb. 16, 9 a.m., Extension office, 511 N. Spruce St.
SCOTTSBLUFF: Feb. 21, 9 a.m., Extension center, 4502 Ave. I
AINSWORTH: Feb. 22, 9 a.m., Courthouse meeting room, 148 W 4th St.
WILBER: Feb. 23, 9 a.m., Extension office, 306 W. Third
COLUMBUS: Feb. 26, 9 a.m., Pinnacle Bank, 210 East 23rd St.
NELIGH: Feb. 28, 9 a.m., Courthouse meeting room, 501 M St.
The workshops are sponsored by the Nebraska Extension Animal Manure Management Team, which is dedicated to helping livestock and crop producers better utilize manure resources for agronomic and environmental benefits.
For additional information on the workshops and other resources for managing manure nutrients, visit http://manure.unl.edu or contact Johnson at 402-584-3818 or ljohnson13@unl.edu.
Trends, Issues and Production Topics Headline Nebraska Dairy Convention
Fourth generation California dairy farmer Brad Scott, whose 1,000-cow dairy farm Scott Brother’s Dairy was featured on the television show “Undercover Boss,” is among the featured speakers at the 2018 Nebraska Dairy Convention February 27 at the Ramada Inn, Columbus, Neb. Scott will discuss his experience being featured on the reality show at the convention’s evening banquet at 6:30 p.m. The convention, sponsored by the Nebraska State Dairy Association, includes sessions surrounding dairy production, a trade show and the association’s annual business meeting.
Bruce Anderson, an extension professor in agronomy and horticulture from the University of Nebraska- Lincoln, will discuss recommendations for raising dairy quality forage in a beef state, and Maggie Faulkner, field representative from Acumen Detection will discuss the costs associated with mastitis. Their presentations are scheduled for 9:30 a.m. and 1:30 p.m., respectively.
Nancy Huls, vice president of research and innovation with the Midwest Dairy Association, will be featured at the noon luncheon, providing an update on the organization’s work on dairy farmers’ behalf. Amber Pankonin, RD, a local nutrition communications consultant and Caryn Kusleika, RD of Midwest Dairy, will present a communications workshop from 2:30 p.m. to 3:30 p.m.
Dairy production awards will be presented at 2:30 p.m., with a Grow Nebraska Dairy update at 3:30, followed by the Nebraska State Dairy Association’s annual business session at 4 p.m. The trade show hours are from 9:30 a.m. to 4:30 p.m.
Award presentations and the coronation of the 2018 Nebraska Dairy Princess and Ambassadors will also take place during the evening banquet.
The Nebraska Dairy Convention is free to all Nebraska dairy farmers, families and guests. Pre-registrations are encouraged by February 20. Attendee and sponsorship registration forms are available at nebraskamilk.org. Questions about the convention can be directed to Rod Johnson, Nebraska State Dairy Association, at 402-853-2028 or rod@nebraskamilk.org.
Cattlemen Kick Off Campaign to Prevent Farms, Ranches From Being Regulated Like Toxic Superfund Sites
The National Cattlemen’s Beef Association (NCBA) today kicked off a media campaign aimed at spotlighting and correcting a recent court decision that will require livestock producers to comply with laws that are only meant to apply to highly toxic Superfund sites.
The Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) was enacted to provide for cleanup of the worst industrial chemical toxic waste dumps and spills, such as oil spills and chemical tank explosions. The Emergency Planning and Community Right-to-Know Act (EPCRA) was enacted to ensure that parties who emit hazardous chemicals submit reports to their local emergency responders to allow for more effective planning for chemical emergencies. Both of these laws include reporting requirements connected to the events at hand.
Neither of these laws was ever intended to govern agricultural operations, for whom emissions from livestock are a part of everyday life. To make this clear, in 2008, the Environmental Protection Agency (EPA) finalized a rule to clarify that farms were exempt from CERCLA reporting and small farms, in particular, were exempt from EPCRA reporting, given that low-level livestock emissions are not the kind of "releases" that Congress intended to manage with these laws.
Upon being sued in 2009, the Obama Administration's EPA defended the exemption in court on the grounds that CERCLA and EPCRA do not explicitly exempt farms because Congress never believed that agriculture would be covered under these statutes, so a specific statutory exemption was not viewed to be necessary. Unfortunately, in April 2017, the D.C. Circuit Court vacated the EPA's 2008 exemption, putting nearly 200,000 farms and ranches under the regulatory reporting authorities enshrined in CERCLA and EPCRA. The new reporting requirements could go into effect as soon as Jan. 22.
“This is just another example of radical environmental groups using the courts to wildly distort the original Congressional intent behind legislation,” said NCBA President and Nebraska cattleman Craig Uden. “Unless this ridiculous situation is fixed, agricultural producers will soon have their operations treated like toxic Superfund sites, and government agencies like the U.S. Coast Guard will be inundated with unnecessary questions and reports.”
NCBA’s issue campaign kicked off with a new online video featuring the group’s Chief Environmental Counsel, Scott Yager. In the video, Yager dons a yellow hazmat suit and explains the issue at an actual toxic Superfund site near Fredericksburg, Virginia. He then shows the contrast between the contaminated Superfund site and a cattle farm in nearby Louisa County, Virginia, that would likely have to comply with the new reporting requirements.
“This is most certainly not a toxic Superfund site,” Yager explains from the Virginia cow pasture. “Unfortunately, a recent court decision may force cattle producers and other agricultural operations to report a bunch of information about their cow poop to the federal government under the Superfund laws that were only meant to deal with toxic waste. That is unless Congress acts soon.”
NCBA is working with allies on Capitol Hill to introduce and quickly pass legislation that would correct the situation. The group is also working with other agricultural organizations to spotlight the issue and build support for a legislative fix.
Sorghum Checkoff Seeks Applicants for Leadership Sorghum
The Sorghum Checkoff is accepting applications for Leadership Sorghum Class IV, a program designed to develop the next generation of sorghum leaders.
During the 15-month leadership program, class members will be exposed to various aspects of the sorghum industry in addition to personal development and networking opportunities. Class members will participate in both hands-on and classroom-style learning experiences to gain an understanding of how sorghum moves through the value chain, how checkoffs and stakeholder organizations interact on behalf of the industry and what the future holds for sorghum.
"Leadership Sorghum is a unique opportunity to develop strong leaders with a desire to learn and develop a passion for this industry," said Florentino Lopez, Sorghum Checkoff executive director. "This program is a way to invest in the future of our industry by equipping growers with the skills, knowledge and understanding necessary to become advocates for sorghum."
Eligible applicants must be farmers actively engaged in sorghum production in the United States. Fifteen growers will be accepted into the program's fourth class.
"It is so fulfilling to see our class members grow, learn and experience new things," said Shelee Padgett, Leadership Sorghum program director. "Our goal is to equip them to be leaders and advocates for sorghum, taking their knowledge back to their communities and furthering the industry by becoming involved locally, in their state and nationally."
Full consideration will be given to all applicants, regardless of age, gender, race or occupation. Every effort will be made to select a class, based on the applicant pool, which is representative of the entire sorghum industry, its diversity and rural community interests.
Applications for the program are available at LeadSorghum.com and are due by 5:00 p.m. March 16, 2018. Following the application deadline, all applications and references will be reviewed by a selection committee. Finalists may be contacted via phone to arrange an interview. Class members and alternates will be notified of acceptance by May 1, 2018. More information on the class schedule and program criteria can be found at LeadSorghum.com.
Animal Agriculture Alliance announces chance for farmers to win free registrations to 2018 Stakeholders Summit
Today, the Animal Agriculture Alliance announced that five farmers and ranchers can win a free registration to the 2018 Stakeholders Summit. The 2018 Summit, themed “Protect Your Roots” will be held May 3-4 at the Renaissance Capital View Hotel in Arlington, Va.
“Last year the Alliance hosted our first photo contest to encourage farmers to attend our 2017 Summit and received such a great turnout that we’ve decided to host another photo contest this year,” said Hannah Thompson-Weeman, Alliance vice president of communications. “Farmers and ranchers should be at the table to discuss issues impacting the food supply and we hope to welcome even more producers to our 2018 Summit.”
The Summit will inspire attendees representing all facets of animal agriculture to be proud of their past and current roles in the industry and challenge them to be forward-thinking about how we can continue to grow into the future. Even if communication is not part of their job description, Summit attendees will leave with new perspectives on key issues and ready to engage with influencers to secure the future of animal agriculture.
“Farmers and ranchers are often the best storytellers,” said Casey Whitaker, Alliance communications manager. “We want to see photos from across the country showing why farmers believe it is important to protect their roots and continue telling agriculture’s story.”
Photo Contest – Deadline 2/14/2018
To enter, farmers and ranchers need to share a photo and caption on social media that shows and explains why they believe it is important to protect their roots. Entries must be posted with the hashtag #ProtectYourRoots with the Alliance tagged by February 14. To confirm their entry, contestants need to complete the contest form at https://www.cognitoforms.com/AnimalAgAlliance/ProtectYourRootsPhotoContest
Top photos will be shared on the Alliance’s Facebook page and be open for public voting on February 15.
The five photos with the most ‘likes’ by February 28 will be announced as the winners.
Winning prizes:
First place: Free registration to our 2018 Summit, a two-night stay in the Summit hotel and a $300 travel stipend.
Runner-up: Free registration and a two-night stay in the Summit hotel.
3rd - 5th place: Free registration.
Not a farmer or rancher? You can still help spread the word about Summit and win a prize through the “Refer-A-Friend” contest! Encourage friends, co-workers and colleagues to attend the event, and have them put your name as the referrer when registering. If someone enters your name, you will be entered to win one of ten prizes. You must be present at the 2018 Summit to claim your prize.
Be sure to check the Summit website for the most up-to-date Summit information. You can also follow the hashtags #AAA18 and #ProtectYourRoots for periodic updates about the event. For general questions about the Summit please contact summit@animalagalliance.org or call (703) 562-5160.
Get involved:
Show your support for the Alliance’s outreach efforts by becoming an official Summit sponsor today! For a complete listing of the 2017 Summit sponsors or to see the 2018 sponsorship opportunities, please visit www.animalagalliance.org/summit. For more information, contact Allyson Jones-Brimmer at ajonesbrimmer@animalagalliance.org.
Thank you to our 2018 Summit sponsors: Watt Global Media, Farm Journal Media, Meatingplace, American Feed Industry Association, National Cattlemen’s Beef Association, National Pork Board, Council for Biotechnology Information, DairyMAX/Western Dairy Association, Farm Credit Council, United Egg Producers, Cobb-Vantress Inc., National Biodiesel Board, Protect the Harvest, Agri Beef, Kemin, National Chicken Council and North Carolina Farm Bureau.
The Alliance also thanks the following members for their continued support of Summit and other Alliance programs: U.S. Poultry & Egg Association, Merck Animal Health, Charleston|Orwig, Diamond V, Zoetis, Alltech, Inc., Aviagen Group, Bayer HealthCare Animal Health, Cargill, Cattle Empire, LLC, Genus PLC - PIC/ABS, Hendrix Genetics, Hy-Line North America LLC, National Pork Producers Council, National Turkey Federation, Potash Corp., Provimi North America, Inc., Seaboard Foods LLC, Smithfield Hog Production and Iowa Soybean Board.
Syngenta and NRGene Expand Collaboration as Syngenta Signs Long-Term Licensing of GenoMAGIC
Syngenta, a global leading agrochemical and seed company, and NRGene, the premier genomic big data company, have continued to advance their cooperation in breeding and trait discovery in key crops.
Syngenta has licensed NRGene’s GenoMAGICTM, a cloud-based big data analytics platform, to evaluate, predict, compare and select the best genetic makeup for crop molecular breeding and genomic selection. The agreement is on a non-exclusive, multi-year basis.
The GenoMAGIC system will be implemented in Syngenta’s advanced R&D pipeline and will influence key decision making for hardier, more productive crops. GenoMAGICTM was developed by a unique mix of highly experienced algorithm designers, software engineers, plant breeders, and plant geneticists and is used by seed companies like Syngenta and major academic and research institutions worldwide to actively battle world hunger and increase profitability for growers.
GenoMAGICTM reveals the broad genetic diversity of crop plants and optimizes the use of genetic diversity throughout the breeding pipeline. Syngenta was an early adopter of GenoMAGIC and has demonstrated the significant advantages of using NRGene’s pangenome approach to haplotyping.
“NRGene’s GenoMAGIC system is an enabler for us to unlock the full potential of the genetic diversity available within our breeding programs,” said Dr. Michiel van Lookeren Campagne, Head Seeds Research at Syngenta. “This next phase in our collaboration should greatly improve our ability to predict performance and accelerate our ability to bring innovation into the hands of growers around the globe.”
“The fact that leading international companies like Syngenta have chosen to adopt GenoMAGIC reinforces the fact that we're on the right track, developing the big data tools to facilitate cutting- edge, highly sophisticated breeding, adding our modest contribution toward global food security,” said Dr. Gil Ronen, chief executive officer of NRGene. “We look forward to broadening the use of our tools to support the genetic research of plants and animals, as well as humans.”
Welcome to the KTIC Agriculture Information blog!!! Check back here for the latest in ag news and information, from local events to international happenings and government reports that affect your operation. Please email with suggestions! -Chad Moyer, Farm Director, KTIC Radio
Wednesday, January 17, 2018
Monday, January 15, 2018
Monday January 15 Ag News
Cuming Co. Extension Board to Elect New Officers
The Cuming County Extension Board will hold their re-organizational meeting on Monday, January 29. The meeting will be held in the Courthouse Meeting Room beginning at 7:00 p.m. The 2017 President will preside at the meeting until new officers are elected. Other items of business for the meeting are finalizing plans for Board of Supervisors luncheon, January 31 and NACEB Annual Meeting. The full agenda for the Extension Board meeting is available for review at the Extension office.
What is the Economic Value of Beef Manure?
Amy Timmerman – NE Extension Educator
Manure has value. That value may result from improvements in soil quality, increases in yield, and replacement of commercial nutrient required for crop production. Previous articles on manure’s value have focused on its soil health (https://go.unl.edu/q23y), environmental benefits (https://go.unl.edu/hqd5), and tools for estimating manure’s value (https://go.unl.edu/w9xn). This article will focus on the economic benefits of manure. Key take home messages include:
1) Targeting fields requiring supplemental phosphorus (P) produces the largest economic value from manure.
2) Targeting fields requiring supplemental potassium (K) significantly increase manure’s value.
3) Additional value result from manure nitrogen (N) and micro-nutrients as well as from yield increases. However, these benefits are typically less important than P and K.
The assumptions used for this analysis are found at https://go.unl.edu/si6m.
NITROGEN AND PHOSPHORUS VALUE
Manure is a supplemental source of P, organic-N, ammonium-N, and micro-nutrients commonly required by many fields. Cropland receiving surface applied manure (not incorporated) benefits from both the organic-N and P. The value of the nutrients in beef manure (open lot) is heavily influenced by the value of the P and to a lesser extent the organic-N (see Figure 1 (https://go.unl.edu/ukfk) and assumptions for all figures presented. All assumptions are found at end of article. ). Because feedlot manures and many solid manures contains little ammonium-N, incorporation to conserve N would produce little additional value.
For slurry manures such as captured by a beef barn with a pit below a slatted floor, immediate incorporation of manure is important for gaining value from the important ammonium-N content. Slurry manures generally conserve the ammonium-N fraction commonly lost from open lots. Figure 2 (https://go.unl.edu/s5ig) illustrates the value of incorporating beef manure with a below barn pit. Approximately 35% of its value results from the ammonium-N conserved by direct injection.
Note the importance of P to achieving value from both of these manures. Almost half or more of each manure’s value will only be realized by applying manure to fields requiring P supplementation (typically, fields with Bray soil P levels below 30 ppm). Thus, farmers wanting to gain the greatest value from manure should target those fields with low soil P levels. A 25 ton load of open lot beef manure has a fertility value of $350. However, 2/3 of this value will not be realized if applied to a field with high soil P levels.
POTASSIUM VALUE
To further enhance the value of manure, targeting those fields that have a K requirement offers additional value. Soil tests for highly productive fields are increasingly identifying a need for K supplementation. Manures are an excellent source of K. For the beef feedlot manure example shared in Figure 1, the manure’s value has almost doubled by applying it to a field with a K requirement (Figure 3 https://go.unl.edu/3gik).
YIELD RESPONSE
Economic value can also be gained from a yield response to manure. Such yield responses can be a result of improved soil structure and greater drought tolerance of the soils receiving manure or from the increased biological activity in the soil producing a number of benefits such as greater nutrient availability to the plant. A recent worldwide literature review of 159 research comparisons of the nutrient replacement value of manure observed an average yield increase of 4.4%. Adding a 5% yield increase to a 200 bushel/acre corn crop will produce some additional value. However, note that this yield boost does not compare with the value of the P and K in manure assuming a 5% yield increase is achieved.
Similar benefits are observed for manures produced in other beef systems houses in open lots, bedded back barns, and barns with a deep pit.
KEYS TO MANURE VALUE
Key to gaining the economic value from manure nutrients is the rate at which manure is applied. To receive the returns shown in this articles graphics, the following practices must be followed:
1. Manure should be applied at a rate that does not exceed the crop N requirements for a single year. Excess manure N application is likely to be leach beyond the root zone and be lost. See Determining Crop Available Nutrients from Manure (https://go.unl.edu/r7bx) for more information.
2. Manure applied at rates near the crops N requirement typically over apply P and K. However, these nutrients will continue to be available to crops in future years. To gain the manure’s P and K value, target those fields requiring supplemental P and K (see Nutrient Requirements for Agronomic Crops in Nebraska (https://go.unl.edu/vvmr) or your state specific recommendations). In addition, avoid re-applying manure to the same field until soil testing suggests need for supplemental P and K.
Accessing the economic value of manure begins by targeting fields low in P and K.
Chemigation Training Schedule for 2018
Nebraska Extension Chemigation Training has been scheduled at a number of sites for growers needing their chemigation certification in 2018. Training opportunities run from January into the first week of June. Online chemigation training is available for recertification only.
"Nebraska has been a national leader in chemigation research, application and training," said Bill Kranz, director of the Extension Chemigation Training Program and northeast extension district associate director. Other states have modeled their programs after Nebraska.
Participants will receive educational materials and training so they can properly calibrate the chemical system injection pump for the amount of chemical and water they want to apply, Kranz said.
The training also will cover the evolution and application of chemigation from EPA's initial approval in the late 1980s to the Nebraska Chemigation Act and chemigation rules and regulations as developed by the Nebraska Department of Environmental Quality (NDEQ). The Act allowed NDEQ to contract with the University of Nebraska to deliver training.
View the full Chemigation Training schedule for 2018 here.... https://cropwatch.unl.edu/2018-CW-News/2018-documents/Extension-Meetings/2018-CHEMIGATION-TRAINING-DATES-1-10-18.pdf. For information on certification and recertification training opportunities, and study materials see the Nebraska Extension water.unl.edu webpage: Using Chemigation Safely and Effectively.... https://water.unl.edu/article/agricultural-irrigation/chemigation.
Spring Lecture Series to Focus on Advances in Irrigation
Advances in irrigation management will be the focus of a new lecture series being offered this spring at the University of Nebraska-Lincoln.
The lectures make up the university’s annual spring semester water and natural resources seminar organized by the School of Natural Resources and the Nebraska Water Center.
“Evolving and advancing irrigation management practices are at the very core of Nebraska’s powerful and productive agricultural economy. It is safe to say that without development of the irrigation technologies and management we have today, our state economy would be far different than it is,” said Chittaranjan Ray, director of the Nebraska Water Center. “Irrigation is not without risk, responsibility and a clear focus on the future.”
The series opens with a 3:30 p.m. Jan. 17 talk by Cody Bailey of Reinke Manufacturing. The talk, "A Unique View of an Advanced Center Pivot Irrigation System," is in the Hardin Hall Auditorium.
Subsequent lectures, held roughly every-other-Wednesday afternoon through April 18, will look at advances in the irrigation equipment, science and management practices. Each talk is 3:30 to 4:30 p.m. in the Hardin Hall Auditorium.
According to the Nebraska Department of Agriculture, there were just under 2.2 million acres of crop and pastureland under irrigation in 1964. Fifty years later, in 2014, that number had increased to just under 8.3 million acres, representing just under half of the total cropland harvested in the state.
Lectures in the seminar series are:
Jan. 17 — Cody Bailey, Reinke Manufacturing, “A Unique View of an Advanced Center Pivot Irrigation System”
Jan. 31 — Williams Memorial Lecture, Ken Quandt, McCrometer Corporation, “McCrometer Flow Connect: Building on Irrigation Flow Meter Fundamentals”
Feb. 14 — Trenton Franz, hydrogeophysicist, School of Natural Resources, “Spatiotemporal Prediction of Soil Properties and States in Variably Saturated Landscapes”
Feb. 28 — Daran Rudnick, assistant professor, biological systems engineering, “Performance of Tools and Technologies for Scheduling Irrigation and Fertigation in Western Nebraska”
March 14 — Kremer Memorial Lecture, Kurtis Charling, Lindsay Corporation, “Using Proven Science, Research, and Big Data to Simplify and Optimize Irrigation Management”
April 4 — Derek Heeren, assistant professor, biological systems engineering, “Variable Rate Irrigation: Potential Benefits, Limitations, and Management Practices”
April 18 — Xin Qiao, assistant professor, biological systems engineering, “Irrigation Management in Western Nebraska and Future Opportunities”
In addition to being offered free to the public, the seminar can be taken for student credit through the School of Natural Resources.
Individual lecture videos and speaker PowerPoint presentation will be posted online.
Overview of Tax Law Changes for Ag Operations
Tina Barrett - Executive Director of Nebraska Farm Business Inc.
As I wrote an article on possible tax reform back in October 2017, it seemed like it was still a long shot. Now we have signed legislation that really is a significant change to the tax structure … at least for a while. Most of the individual tax changes will “sunset” in 2025 or return to current law if Congress doesn’t act again to extend or make the changes permanent. Most of the provisions only affect future years so we have some time to digest all the changes and really understand the impact. Following is an overview of some of the changes that may affect ag operations.
Increased Standard Deduction
The 2017 Tax Relief Act sets the standard deduction at $24,000 and eliminates the personal exemption. This will significantly reduce the number of individuals who itemize their deductions and simplify many tax returns. The 2017 standard deduction was $12,700 for Married Filing Joint Returns. With the elimination of personal exemptions, the child tax credit was increased to $2,000 per child and the family income limit was increased so more families will qualify. The personal exemption amount in 2017 was $4,050 for each member of the household. In general, your family size and the age of your children will largely determine whether this combined exemption will increase or decrease your tax bill.
Change to the Individual Tax Rate Structure
The law retains seven brackets and a marriage tax penalty. (Two individuals can make more money at a lower rate than a married couple.) The maximum rate has been reduced from 39.6% to 37%.
Alternative Minimum Tax (AMT)
The original house proposal would have eliminated the AMT tax. This tax was imposed many years ago with the idea that it kept high-income taxpayers from taking advantage of too many tax benefits. However, the limits were not indexed for inflation and the levels where the AMT tax would kick in started to affect many taxpayers. Instead of full repeal, the compromise bill increased the limit again so fewer taxpayers will be subject to the tax. Without full repeal, it doesn’t really simplify the tax code.
Interest and Real Estate Taxes
We have fielded more questions about the elimination of interest and real estate taxes than anything else over the past few months. It is important to recognize that not all interest and real estate taxes are the same. The discussion of elimination of these came mostly from Schedule A (Itemized Deductions). For most farmers, these are the Real Estate taxes paid on the house and mortgage interest on the house. This had nothing to do with business interest or real estate taxes paid on your farm real estate.
There is a provision to limit interest on businesses that gross more than $25 million. This could affect cattle feeders and other large operations. There are some rules that will allow these businesses to still deduct interest. If this affects you, you will want to work with your tax preparer to see what you need to do.
Estate and Generation-Skipping Taxes
The house proposal eliminated the “death” tax and the generation-skipping transfer taxes while retaining a full step-up in basis. However, the proposal didn’t make the compromise bill. The compromise doubles the exclusion per person from $5 million to $10 million, but only through 2025 so we are back to dealing with an unknown. Since few of us know exactly what year we are going to die, it is really hard to plan on anything other than the $5 million per person exclusion. The rates will continue to be indexed for inflation so the actual amount a person can pass on in 2018 will be $11.2 million. This increase is beneficial, but without a permanent law, it is really just a benefit for a few years.
New Tax Rate for Small Businesses
There has been a lot of discussion about the pass-through business income. This includes S-Corps and Partnerships as well as Schedule C and F businesses. The compromise has settled on a 20% deduction for your farm income. For example, if you recognize $100,000 on your Schedule F, you will automatically get a $20,000 deduction. This effectively lowers your tax bracket by 20%. If your total income is over $315,000, the deduction starts to get complicated. The final regulations on this new law will be interesting as it gets unveiled in 2018.
New Tax Rate for Corporations
The corporate tax rate (for C-corporations) will be a flat 21%. For many with C-corporations, this will actually be a tax increase since we are used to using the 15% bracket. However, when it comes time to recognize more income (high profit years, liquidation, etc) it will be very nice to have a cap at 21% instead of the max rate of 39%.
Section 179 and Bonus Depreciation
The new law sets the Section 179 deduction at $1 million (up from $500,000) and raises the purchase phase out to $2.5 million. As most producers weren’t reaching the maximum deduction when it was $500,000, this is not a major change. The new law does reinstate bonus depreciation at a rate of 100% through 2022. For those of you looking to put up a building, this may be a good time. The law also changed the rules so bonus depreciation will apply to both new and used property.
Elimination of the Section 1031 for Personal Property
We often think of 1031 Exchanges being for real estate, but actually that part of the code section is regularly used on farm returns with equipment trades. The new tax law eliminates the ability to use this section for personal property (equipment). When you trade tractors this year, you will have to recognize the gain on the sale of the old tractor and will put the new tractor on deprecation at full value. This won’t really make a huge difference on your tax return with the increased amounts of bonus and Section 179, but for Nebraskans, this will be a large impact to your Personal Property Tax Return. Expect that bill to increase, starting with your 2019 return.
Conclusion
The 2017 Tax Relieve Act contains many changes and it’s hard to try and quantify the effect on farms in general. It will take a personalized approach to see if this is a win for you. In general, this seems to be a good thing for farmers. The biggest downside is the return of the “sunset” and being back to the need to wait on extender bills.
New Beef Cuts for the New Year
The annual What's Hot culinary forecast released by the National Restaurant Association named "new cuts of meat" as the top trend for 2018. As the authority on all things beef, the Beef. It's What's For Dinner. Culinary Center chefs and meat scientists have put together a list of the top five innovative cuts you need to know.
1) Shoulder Tender
2) Sirloin Bavette
3) Coulotte
4) Petite Sirloin
5) Tri-Tip Roast
While many of these cuts are available to the home cook, some are just starting to gain popularity in restaurants.
"If you like Brisket, you might want to try a Tri-Tip Roast. Or, if you're in the mood for Strip Steak, you will probably enjoy the Coulotte," explains Chef Laura Hagen, senior director, culinary, National Cattlemen's Beef Association, a contractor to the beef checkoff. "It's exciting to see innovative cuts gain popularity across the country. Diners and home cooks shouldn't let a name they don't recognize keep them from trying something new."
Whether dining in or eating out, you can count on the beef experts to help navigate these innovative cuts. The new BeefItsWhatsForDinner.com has a section dedicated to beef cuts with details on everything including where the cut comes from, how to cook it, and similar cuts that can be substituted.
For example:
- The Shoulder Tender is a lean cut that is shaped like the Tenderloin, but smaller. Like Tenderloin, it can be cut into medallions and is great for grilling, roasting, or broiling.
- The Sirloin Bavette, also known as the Sirloin Flap, is a thin boneless cut that's great for fajita meat. It should be marinated and then grilled or broiled.
- The Coulotte, a juicy, savory roast, is known by many other names including Top Sirloin Cap. It is best roasted in the oven or smoked slowly on the grill. It can also be cut into Coulotte Steaks.
- The Petite Sirloin, also known as the Ball Tip, is a small roast. It's a great cut for someone looking to maximize value and can be roasted, broiled, or braised.
- Finally, the Tri-Tip Roast is well known across much of the west, but is just gaining popularity on the East Coast. This lean cut is tender, full of flavor and can be grilled, roasted, braised, or broiled.
The new year is the perfect time to try a new cut of beef or a new beef recipe. With more than 60 percent of whole muscle beef cuts considered lean and CattleFax experts predicting beef prices to be down in 2018, people can enjoy beef's great taste all year long.
Applications Available for the 2018 America’s Pig Farmer of the Year Award
The National Pork Board is seeking the next America’s Pig Farmer of the YearSM, with applications now open for the annual industry award at americaspigfarmer.com. The award recognizes a U.S. pork producer who demonstrates excellence in raising pigs using the We Care ethical principles and in sharing his or her story with the public. The application period is open through March 11.
“This program creates a national platform to connect pig farming with today’s consumers,” said National Pork Board President, Terry O’Neel, Friend, Nebraska. “Identifying a pig farmer who can share the story of pork production allows all pig farmers to continue to raise pigs and underscore their important role in feeding the world.”
A panel of third-party judges will again help to determine the final award recipient, with the winner announced during national pork month this October. The public can also play a role in selecting the 2018 winner through viewing short clips of the finalists on their farms at www.americaspigfarmer.com, and voting for their favorite through the Pork Checkoff’s social media outlets.
“This award embodies the We Care ethical principles pig farmers demonstrate every day,” O’Neel said. “I encourage those who enjoy sharing their pig farming story to apply today. The past winners have traveled throughout the country, meeting with consumers, sharing what it means to be a pig farmer and how they personally produce healthy, wholesome food.”
Anyone can nominate a U.S. pork producer who is at least 30 years old as of Jan. 1, 2018, at www.americaspigfarmer.com/nominate. Complete rules of the award program are on the site as well, along with answers to frequently asked questions.
CWT Assists with 3.3 million Pounds of Cheese and Butter Export Sales
Cooperatives Working Together (CWT) has accepted 21 requests for export assistance from Dairy Farmers of America, Northwest Dairy Association (Darigold), Tillamook County Creamery Association and United Dairymen of Arizona. These cooperatives have contracts to sell 2.652 million pounds (1,203 metric tons) of Cheddar and Monterey Jack cheese and 688,945 pounds (313 metric tons) of butter to customers in Asia, the Middle East, North Africa and Oceania. The product has been contracted for delivery in the period from January through April 2018.
Total CWT-assisted member cooperative 2018 export sales are 2.652 million pounds of American-type cheeses and 690,047 pounds of butter (82% milkfat) to 9 countries on three continents. These sales are the equivalent of 40.006 million pounds of milk on a milkfat basis.
Assisting CWT members through the Export Assistance program in the long term helps member cooperatives gain and maintain market share, thus expanding the demand for U.S. dairy products and the U.S. farm milk that produces them. This, in turn, positively affects all U.S. dairy farmers by strengthening and maintaining the value of dairy products that directly impact their milk price.
Fuel Economy in U.S. Vehicles Hits New Highs
The real-world fuel economy of new U.S. cars and trucks hit a record 24.7 miles per gallon in the 2016 model year, a government report said, even as regulators consider whether to revise fuel efficiency requirements.
The U.S. Environmental Protection Agency said in a report that fuel economy rose by just 0.1 mpg in 2016 and is projected in the 2017 model year to hit another record of 25.2 miles per gallon.
With low oil prices and Americans buying more trucks and SUVs, automakers are concerned that rising fuel efficiency requirements through 2025 may be too stringent, reports Reuters.
Environmentalists say automakers must do more to make vehicles more efficient.
The Cuming County Extension Board will hold their re-organizational meeting on Monday, January 29. The meeting will be held in the Courthouse Meeting Room beginning at 7:00 p.m. The 2017 President will preside at the meeting until new officers are elected. Other items of business for the meeting are finalizing plans for Board of Supervisors luncheon, January 31 and NACEB Annual Meeting. The full agenda for the Extension Board meeting is available for review at the Extension office.
What is the Economic Value of Beef Manure?
Amy Timmerman – NE Extension Educator
Manure has value. That value may result from improvements in soil quality, increases in yield, and replacement of commercial nutrient required for crop production. Previous articles on manure’s value have focused on its soil health (https://go.unl.edu/q23y), environmental benefits (https://go.unl.edu/hqd5), and tools for estimating manure’s value (https://go.unl.edu/w9xn). This article will focus on the economic benefits of manure. Key take home messages include:
1) Targeting fields requiring supplemental phosphorus (P) produces the largest economic value from manure.
2) Targeting fields requiring supplemental potassium (K) significantly increase manure’s value.
3) Additional value result from manure nitrogen (N) and micro-nutrients as well as from yield increases. However, these benefits are typically less important than P and K.
The assumptions used for this analysis are found at https://go.unl.edu/si6m.
NITROGEN AND PHOSPHORUS VALUE
Manure is a supplemental source of P, organic-N, ammonium-N, and micro-nutrients commonly required by many fields. Cropland receiving surface applied manure (not incorporated) benefits from both the organic-N and P. The value of the nutrients in beef manure (open lot) is heavily influenced by the value of the P and to a lesser extent the organic-N (see Figure 1 (https://go.unl.edu/ukfk) and assumptions for all figures presented. All assumptions are found at end of article. ). Because feedlot manures and many solid manures contains little ammonium-N, incorporation to conserve N would produce little additional value.
For slurry manures such as captured by a beef barn with a pit below a slatted floor, immediate incorporation of manure is important for gaining value from the important ammonium-N content. Slurry manures generally conserve the ammonium-N fraction commonly lost from open lots. Figure 2 (https://go.unl.edu/s5ig) illustrates the value of incorporating beef manure with a below barn pit. Approximately 35% of its value results from the ammonium-N conserved by direct injection.
Note the importance of P to achieving value from both of these manures. Almost half or more of each manure’s value will only be realized by applying manure to fields requiring P supplementation (typically, fields with Bray soil P levels below 30 ppm). Thus, farmers wanting to gain the greatest value from manure should target those fields with low soil P levels. A 25 ton load of open lot beef manure has a fertility value of $350. However, 2/3 of this value will not be realized if applied to a field with high soil P levels.
POTASSIUM VALUE
To further enhance the value of manure, targeting those fields that have a K requirement offers additional value. Soil tests for highly productive fields are increasingly identifying a need for K supplementation. Manures are an excellent source of K. For the beef feedlot manure example shared in Figure 1, the manure’s value has almost doubled by applying it to a field with a K requirement (Figure 3 https://go.unl.edu/3gik).
YIELD RESPONSE
Economic value can also be gained from a yield response to manure. Such yield responses can be a result of improved soil structure and greater drought tolerance of the soils receiving manure or from the increased biological activity in the soil producing a number of benefits such as greater nutrient availability to the plant. A recent worldwide literature review of 159 research comparisons of the nutrient replacement value of manure observed an average yield increase of 4.4%. Adding a 5% yield increase to a 200 bushel/acre corn crop will produce some additional value. However, note that this yield boost does not compare with the value of the P and K in manure assuming a 5% yield increase is achieved.
Similar benefits are observed for manures produced in other beef systems houses in open lots, bedded back barns, and barns with a deep pit.
KEYS TO MANURE VALUE
Key to gaining the economic value from manure nutrients is the rate at which manure is applied. To receive the returns shown in this articles graphics, the following practices must be followed:
1. Manure should be applied at a rate that does not exceed the crop N requirements for a single year. Excess manure N application is likely to be leach beyond the root zone and be lost. See Determining Crop Available Nutrients from Manure (https://go.unl.edu/r7bx) for more information.
2. Manure applied at rates near the crops N requirement typically over apply P and K. However, these nutrients will continue to be available to crops in future years. To gain the manure’s P and K value, target those fields requiring supplemental P and K (see Nutrient Requirements for Agronomic Crops in Nebraska (https://go.unl.edu/vvmr) or your state specific recommendations). In addition, avoid re-applying manure to the same field until soil testing suggests need for supplemental P and K.
Accessing the economic value of manure begins by targeting fields low in P and K.
Chemigation Training Schedule for 2018
Nebraska Extension Chemigation Training has been scheduled at a number of sites for growers needing their chemigation certification in 2018. Training opportunities run from January into the first week of June. Online chemigation training is available for recertification only.
"Nebraska has been a national leader in chemigation research, application and training," said Bill Kranz, director of the Extension Chemigation Training Program and northeast extension district associate director. Other states have modeled their programs after Nebraska.
Participants will receive educational materials and training so they can properly calibrate the chemical system injection pump for the amount of chemical and water they want to apply, Kranz said.
The training also will cover the evolution and application of chemigation from EPA's initial approval in the late 1980s to the Nebraska Chemigation Act and chemigation rules and regulations as developed by the Nebraska Department of Environmental Quality (NDEQ). The Act allowed NDEQ to contract with the University of Nebraska to deliver training.
View the full Chemigation Training schedule for 2018 here.... https://cropwatch.unl.edu/2018-CW-News/2018-documents/Extension-Meetings/2018-CHEMIGATION-TRAINING-DATES-1-10-18.pdf. For information on certification and recertification training opportunities, and study materials see the Nebraska Extension water.unl.edu webpage: Using Chemigation Safely and Effectively.... https://water.unl.edu/article/agricultural-irrigation/chemigation.
Spring Lecture Series to Focus on Advances in Irrigation
Advances in irrigation management will be the focus of a new lecture series being offered this spring at the University of Nebraska-Lincoln.
The lectures make up the university’s annual spring semester water and natural resources seminar organized by the School of Natural Resources and the Nebraska Water Center.
“Evolving and advancing irrigation management practices are at the very core of Nebraska’s powerful and productive agricultural economy. It is safe to say that without development of the irrigation technologies and management we have today, our state economy would be far different than it is,” said Chittaranjan Ray, director of the Nebraska Water Center. “Irrigation is not without risk, responsibility and a clear focus on the future.”
The series opens with a 3:30 p.m. Jan. 17 talk by Cody Bailey of Reinke Manufacturing. The talk, "A Unique View of an Advanced Center Pivot Irrigation System," is in the Hardin Hall Auditorium.
Subsequent lectures, held roughly every-other-Wednesday afternoon through April 18, will look at advances in the irrigation equipment, science and management practices. Each talk is 3:30 to 4:30 p.m. in the Hardin Hall Auditorium.
According to the Nebraska Department of Agriculture, there were just under 2.2 million acres of crop and pastureland under irrigation in 1964. Fifty years later, in 2014, that number had increased to just under 8.3 million acres, representing just under half of the total cropland harvested in the state.
Lectures in the seminar series are:
Jan. 17 — Cody Bailey, Reinke Manufacturing, “A Unique View of an Advanced Center Pivot Irrigation System”
Jan. 31 — Williams Memorial Lecture, Ken Quandt, McCrometer Corporation, “McCrometer Flow Connect: Building on Irrigation Flow Meter Fundamentals”
Feb. 14 — Trenton Franz, hydrogeophysicist, School of Natural Resources, “Spatiotemporal Prediction of Soil Properties and States in Variably Saturated Landscapes”
Feb. 28 — Daran Rudnick, assistant professor, biological systems engineering, “Performance of Tools and Technologies for Scheduling Irrigation and Fertigation in Western Nebraska”
March 14 — Kremer Memorial Lecture, Kurtis Charling, Lindsay Corporation, “Using Proven Science, Research, and Big Data to Simplify and Optimize Irrigation Management”
April 4 — Derek Heeren, assistant professor, biological systems engineering, “Variable Rate Irrigation: Potential Benefits, Limitations, and Management Practices”
April 18 — Xin Qiao, assistant professor, biological systems engineering, “Irrigation Management in Western Nebraska and Future Opportunities”
In addition to being offered free to the public, the seminar can be taken for student credit through the School of Natural Resources.
Individual lecture videos and speaker PowerPoint presentation will be posted online.
Overview of Tax Law Changes for Ag Operations
Tina Barrett - Executive Director of Nebraska Farm Business Inc.
As I wrote an article on possible tax reform back in October 2017, it seemed like it was still a long shot. Now we have signed legislation that really is a significant change to the tax structure … at least for a while. Most of the individual tax changes will “sunset” in 2025 or return to current law if Congress doesn’t act again to extend or make the changes permanent. Most of the provisions only affect future years so we have some time to digest all the changes and really understand the impact. Following is an overview of some of the changes that may affect ag operations.
Increased Standard Deduction
The 2017 Tax Relief Act sets the standard deduction at $24,000 and eliminates the personal exemption. This will significantly reduce the number of individuals who itemize their deductions and simplify many tax returns. The 2017 standard deduction was $12,700 for Married Filing Joint Returns. With the elimination of personal exemptions, the child tax credit was increased to $2,000 per child and the family income limit was increased so more families will qualify. The personal exemption amount in 2017 was $4,050 for each member of the household. In general, your family size and the age of your children will largely determine whether this combined exemption will increase or decrease your tax bill.
Change to the Individual Tax Rate Structure
The law retains seven brackets and a marriage tax penalty. (Two individuals can make more money at a lower rate than a married couple.) The maximum rate has been reduced from 39.6% to 37%.
Alternative Minimum Tax (AMT)
The original house proposal would have eliminated the AMT tax. This tax was imposed many years ago with the idea that it kept high-income taxpayers from taking advantage of too many tax benefits. However, the limits were not indexed for inflation and the levels where the AMT tax would kick in started to affect many taxpayers. Instead of full repeal, the compromise bill increased the limit again so fewer taxpayers will be subject to the tax. Without full repeal, it doesn’t really simplify the tax code.
Interest and Real Estate Taxes
We have fielded more questions about the elimination of interest and real estate taxes than anything else over the past few months. It is important to recognize that not all interest and real estate taxes are the same. The discussion of elimination of these came mostly from Schedule A (Itemized Deductions). For most farmers, these are the Real Estate taxes paid on the house and mortgage interest on the house. This had nothing to do with business interest or real estate taxes paid on your farm real estate.
There is a provision to limit interest on businesses that gross more than $25 million. This could affect cattle feeders and other large operations. There are some rules that will allow these businesses to still deduct interest. If this affects you, you will want to work with your tax preparer to see what you need to do.
Estate and Generation-Skipping Taxes
The house proposal eliminated the “death” tax and the generation-skipping transfer taxes while retaining a full step-up in basis. However, the proposal didn’t make the compromise bill. The compromise doubles the exclusion per person from $5 million to $10 million, but only through 2025 so we are back to dealing with an unknown. Since few of us know exactly what year we are going to die, it is really hard to plan on anything other than the $5 million per person exclusion. The rates will continue to be indexed for inflation so the actual amount a person can pass on in 2018 will be $11.2 million. This increase is beneficial, but without a permanent law, it is really just a benefit for a few years.
New Tax Rate for Small Businesses
There has been a lot of discussion about the pass-through business income. This includes S-Corps and Partnerships as well as Schedule C and F businesses. The compromise has settled on a 20% deduction for your farm income. For example, if you recognize $100,000 on your Schedule F, you will automatically get a $20,000 deduction. This effectively lowers your tax bracket by 20%. If your total income is over $315,000, the deduction starts to get complicated. The final regulations on this new law will be interesting as it gets unveiled in 2018.
New Tax Rate for Corporations
The corporate tax rate (for C-corporations) will be a flat 21%. For many with C-corporations, this will actually be a tax increase since we are used to using the 15% bracket. However, when it comes time to recognize more income (high profit years, liquidation, etc) it will be very nice to have a cap at 21% instead of the max rate of 39%.
Section 179 and Bonus Depreciation
The new law sets the Section 179 deduction at $1 million (up from $500,000) and raises the purchase phase out to $2.5 million. As most producers weren’t reaching the maximum deduction when it was $500,000, this is not a major change. The new law does reinstate bonus depreciation at a rate of 100% through 2022. For those of you looking to put up a building, this may be a good time. The law also changed the rules so bonus depreciation will apply to both new and used property.
Elimination of the Section 1031 for Personal Property
We often think of 1031 Exchanges being for real estate, but actually that part of the code section is regularly used on farm returns with equipment trades. The new tax law eliminates the ability to use this section for personal property (equipment). When you trade tractors this year, you will have to recognize the gain on the sale of the old tractor and will put the new tractor on deprecation at full value. This won’t really make a huge difference on your tax return with the increased amounts of bonus and Section 179, but for Nebraskans, this will be a large impact to your Personal Property Tax Return. Expect that bill to increase, starting with your 2019 return.
Conclusion
The 2017 Tax Relieve Act contains many changes and it’s hard to try and quantify the effect on farms in general. It will take a personalized approach to see if this is a win for you. In general, this seems to be a good thing for farmers. The biggest downside is the return of the “sunset” and being back to the need to wait on extender bills.
New Beef Cuts for the New Year
The annual What's Hot culinary forecast released by the National Restaurant Association named "new cuts of meat" as the top trend for 2018. As the authority on all things beef, the Beef. It's What's For Dinner. Culinary Center chefs and meat scientists have put together a list of the top five innovative cuts you need to know.
1) Shoulder Tender
2) Sirloin Bavette
3) Coulotte
4) Petite Sirloin
5) Tri-Tip Roast
While many of these cuts are available to the home cook, some are just starting to gain popularity in restaurants.
"If you like Brisket, you might want to try a Tri-Tip Roast. Or, if you're in the mood for Strip Steak, you will probably enjoy the Coulotte," explains Chef Laura Hagen, senior director, culinary, National Cattlemen's Beef Association, a contractor to the beef checkoff. "It's exciting to see innovative cuts gain popularity across the country. Diners and home cooks shouldn't let a name they don't recognize keep them from trying something new."
Whether dining in or eating out, you can count on the beef experts to help navigate these innovative cuts. The new BeefItsWhatsForDinner.com has a section dedicated to beef cuts with details on everything including where the cut comes from, how to cook it, and similar cuts that can be substituted.
For example:
- The Shoulder Tender is a lean cut that is shaped like the Tenderloin, but smaller. Like Tenderloin, it can be cut into medallions and is great for grilling, roasting, or broiling.
- The Sirloin Bavette, also known as the Sirloin Flap, is a thin boneless cut that's great for fajita meat. It should be marinated and then grilled or broiled.
- The Coulotte, a juicy, savory roast, is known by many other names including Top Sirloin Cap. It is best roasted in the oven or smoked slowly on the grill. It can also be cut into Coulotte Steaks.
- The Petite Sirloin, also known as the Ball Tip, is a small roast. It's a great cut for someone looking to maximize value and can be roasted, broiled, or braised.
- Finally, the Tri-Tip Roast is well known across much of the west, but is just gaining popularity on the East Coast. This lean cut is tender, full of flavor and can be grilled, roasted, braised, or broiled.
The new year is the perfect time to try a new cut of beef or a new beef recipe. With more than 60 percent of whole muscle beef cuts considered lean and CattleFax experts predicting beef prices to be down in 2018, people can enjoy beef's great taste all year long.
Applications Available for the 2018 America’s Pig Farmer of the Year Award
The National Pork Board is seeking the next America’s Pig Farmer of the YearSM, with applications now open for the annual industry award at americaspigfarmer.com. The award recognizes a U.S. pork producer who demonstrates excellence in raising pigs using the We Care ethical principles and in sharing his or her story with the public. The application period is open through March 11.
“This program creates a national platform to connect pig farming with today’s consumers,” said National Pork Board President, Terry O’Neel, Friend, Nebraska. “Identifying a pig farmer who can share the story of pork production allows all pig farmers to continue to raise pigs and underscore their important role in feeding the world.”
A panel of third-party judges will again help to determine the final award recipient, with the winner announced during national pork month this October. The public can also play a role in selecting the 2018 winner through viewing short clips of the finalists on their farms at www.americaspigfarmer.com, and voting for their favorite through the Pork Checkoff’s social media outlets.
“This award embodies the We Care ethical principles pig farmers demonstrate every day,” O’Neel said. “I encourage those who enjoy sharing their pig farming story to apply today. The past winners have traveled throughout the country, meeting with consumers, sharing what it means to be a pig farmer and how they personally produce healthy, wholesome food.”
Anyone can nominate a U.S. pork producer who is at least 30 years old as of Jan. 1, 2018, at www.americaspigfarmer.com/nominate. Complete rules of the award program are on the site as well, along with answers to frequently asked questions.
CWT Assists with 3.3 million Pounds of Cheese and Butter Export Sales
Cooperatives Working Together (CWT) has accepted 21 requests for export assistance from Dairy Farmers of America, Northwest Dairy Association (Darigold), Tillamook County Creamery Association and United Dairymen of Arizona. These cooperatives have contracts to sell 2.652 million pounds (1,203 metric tons) of Cheddar and Monterey Jack cheese and 688,945 pounds (313 metric tons) of butter to customers in Asia, the Middle East, North Africa and Oceania. The product has been contracted for delivery in the period from January through April 2018.
Total CWT-assisted member cooperative 2018 export sales are 2.652 million pounds of American-type cheeses and 690,047 pounds of butter (82% milkfat) to 9 countries on three continents. These sales are the equivalent of 40.006 million pounds of milk on a milkfat basis.
Assisting CWT members through the Export Assistance program in the long term helps member cooperatives gain and maintain market share, thus expanding the demand for U.S. dairy products and the U.S. farm milk that produces them. This, in turn, positively affects all U.S. dairy farmers by strengthening and maintaining the value of dairy products that directly impact their milk price.
Fuel Economy in U.S. Vehicles Hits New Highs
The real-world fuel economy of new U.S. cars and trucks hit a record 24.7 miles per gallon in the 2016 model year, a government report said, even as regulators consider whether to revise fuel efficiency requirements.
The U.S. Environmental Protection Agency said in a report that fuel economy rose by just 0.1 mpg in 2016 and is projected in the 2017 model year to hit another record of 25.2 miles per gallon.
With low oil prices and Americans buying more trucks and SUVs, automakers are concerned that rising fuel efficiency requirements through 2025 may be too stringent, reports Reuters.
Environmentalists say automakers must do more to make vehicles more efficient.
Saturday, January 13, 2018
Friday January 12 Ag News
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.
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.
Thursday, January 11, 2018
Thursday January 11 Ag News
Biodiesel Takes Bigger Bite of Big Apple Energy Market
A quest for cleaner air led New York City to add more biodiesel into its energy mix, with some help from the Nebraska Soybean Board and ongoing support from the U.S. Soybean Checkoff. Soybean growers from Nebraska and the region recently visited the Big Apple to see how city leaders have made biodiesel a key part of their strategy to reduce vehicle and heating oil emissions. Soybean oil is the feedstock for the majority of biodiesel produced in the U.S.
A biodiesel blend of heating oil, known as Bioheat, has been provided by New York City heating oil dealers for several years. Last year the city council mandated an increased level of biodiesel in the blend due to the success in reducing emissions by using cleaner-burning biodiesel. The Nebraska Soybean Board was instrumental in developing the Bioheat market by funding the testing that led to its approval as a home-heating fuel. Soybean grower Wayne Heermann from Pilger, Neb. participated in the tour and learned firsthand about the role of the Soybean Checkoff in growing the use of biodiesel in New York City.
“I was impressed that the Nebraska Soybean Board and the United Soybean Board were able to get that done. I was proud of how they worked with New York City Council members and others to increase the use of Bioheat,” said Heermann.
New York officials have also increased the use of biodiesel blends to fuel their fleet of diesel vehicles, including fire engines and other equipment they count on in emergencies, even in cold weather.
“It says a lot that the fire department has enough faith in biodiesel to use it when they can’t afford to fail,” said Heermann. “They believe in the quality and reliability of biodiesel and that could lead other cities to try it.”
In 2017 NYC used a record amount of biodiesel blended fuel to keep the nation’s largest municipal vehicle fleet moving. Victor Bohuslavsky, executive director of the NSB, says the growth of Bioheat and biodiesel use in New York is good for Nebraska farmers living more than a thousand miles away.
“As demand for biodiesel grows, so does demand and prices for soybeans. By investing in developing markets for biodiesel, the Soybean Checkoff helps the farmer’s bottom line,” said Bohuslavsky.
Smart Ag delivers first cloud-based platform for driverless tractors
An Iowa technology company has unlocked the tremendous potential for automation in agriculture by developing the first cloud-based platform for driverless tractors. Smart Ag officials in Ames announced today they are releasing on a limited basis, the first application for the platform, called AutoCart®. This software application fully automates a grain cart tractor, which provide farmers much needed assistance during the demanding harvest season.
Colin Hurd, the founder and CEO of Smart Ag, said the innovative technology will allow farmers to automate their existing equipment and maximize its efficiency and capacity – regardless of manufacturer.
"Farming should no longer be defined by what the equipment industry decides is better or more profitable. We believe agriculture is best when farmers have choices," Hurd said. "The best way to improve our customers' operational capacity is to enable them to use automation and driverless technology on their farms. With the correct technology and knowledge, farmers can do the seemingly impossible."
Over two years in development, AutoCart, along with the tractor automation kit, is a plug-and-play system that automates existing grain cart tractors and is compatible with any brand or combination of brands. The system allows a combine operator to set staging and unloading locations in a field, adjust speed, monitor location and command the grain cart to sync precisely to the speed and direction of the combine. After it is loaded, the AutoCart automatically returns to an unloading point elsewhere in the field.
According to Hurd, the AutoCart application provides a solution to one of the biggest challenges facing every farmer – critical labor shortages during harvest. He said Smart Ag's driverless tractor technology "empowers farmers to leave the cab" and complete their operations faster and with less labor than ever before.
"AutoCart performs the same function as a driver, only it is more profitable, more reliable and safer," Hurd added. "Our technology has the potential to bring significant change to U.S. crop production through improved productivity, profitability and safety."
Smart Ag recently completed a comprehensive beta test of AutoCart on Midwest farms during the corn and soybean harvest. One of those test sites was Kyle Mehmen's fifth-generation MBS Family Farms near Plainfield, Iowa.
"The AutoCart system performed extremely well for us during our corn harvest, and I fully expect it to be a game changer for agriculture," Mehmen said. "These are the kind of technologies that we're going to adopt on our farm one way or the other. It's simply a matter of when and which ones."
The AutoCart technology is now available on a first-come, first-served basis through the Smart Ag website: www.Smart-Ag.com. Hurd said that the cost of the system is comparable to retrofitting a sprayer or planter with precision technology.
Based in Ames, Iowa, Smart Ag is an investor-backed technology company developing autonomous farming solutions for row crop agriculture. The company was founded in 2015 and is offering aftermarket retrofit kits to automate farm equipment, as well as a platform to connect, manage, and safely operate autonomous agricultural machinery. Smart Ag is led by successful ag entrepreneur Colin Hurd and former John Deere ISG and Ag Leader Manager Mark Barglof. For additional information, go to www.Smart-Ag.com.
National Biodiesel Conference to Celebrate 25 Years of Growth
Producers, marketers and aficionados are preparing to return to Fort Worth this month when the National Biodiesel Conference & Expo opens at the convention center for four days of all things biodiesel.
This year’s conference will also serve as a celebration for the conference sponsor when the National Biodiesel Board is honored for 25 years of service providing research and representation for the industry in Washington, DC, and across the country.
“Every conference we’ve sponsored has been an exciting event for our industry,” said NBB CEO Donnell Rehagan. “But this one is obviously going to be special as we take the opportunity to not only recognize the milestones we’ve passed over the last two-and-half decades, we’ll also look forward to meeting the challenges ahead as the industry continues to grow and plays an even greater role in America’s ever more critical energy sector.”
And the conference isn’t just for industry insiders. The public is invited Tuesday to join in the discussions focused on biodiesel technology, public policy and more. They will also have the opportunity to explore the event’s Conference Central, where they can learn all about how biodiesel is made from an increasingly diverse mix of resources such as recycled cooking oil, soybean oil and animal fats. A Texas driver’s license is required for local residents to attend free of charge. Wednesday, the public is invited back to participate in a “ride-and-drive” with vehicles provided by area dealers and equipped with the latest diesel engines.
Other highlights for attendees include a session with the filmmakers who premiered “Hot Grease” at the prestigious DOC NYC film festival before its debut on the Discovery Channel last November. The feature length documentary tells the story of biodiesel’s rise and the industry fight for survival in the face of numerous public policy challenges. The producers spent countless hours documenting the experiences of biodiesel entrepreneurs in Texas, while advocates in Washington, D.C., come together to fight off a barrage of attacks from opponents more interested in protecting the status quo.
The National Biodiesel Conference & Expo take places January 22 - 25 at the Fort Worth Convention Center. To learn more about the conference, including a full schedule of events and information on how to register, visit http://www.biodieselconference.org/.
Commodity Classic Trade Show Features 360+ Exhibitors; Wide Array of Equipment, Technology & Innovation
With a trade show featuring more than 360 exhibitors commanding nearly 2,000 booth spaces, Commodity Classic attendees are strongly encouraged to wear comfortable shoes!
The 2018 Commodity Classic, the nation’s largest farmer-led, farmer-focused convention and trade show, will be held Feb. 27-March 1 in Anaheim, Calif. The trade show is open all three days.
“The farmers who attend Commodity Classic are aggressively pursuing in making their farms even better,” said Gerry Hayden, a Kentucky farmer and co-chair of the 2018 Commodity Classic. “That quality of farmer encourages exhibitors to staff their booths with knowledgeable people who can answer challenging questions. It’s really about getting the best of the best together.”
While many of the world’s leading agribusiness companies are on site, so are scores of smaller exhibitors offering a wide range of technology, equipment and innovation. “I think of it as ‘density’—and I’m not just talking about wheel-to-wheel equipment,” said Paul Taylor, an Illinois farmer and co-chair of the 2018 Commodity Classic. “I’m talking about density of knowledge from the presenters and the folks who exhibit. This is a high-quality show, where people can get answers and take a look at some things that might be new to them.”
Admission to the trade show is included with the registration fee. Complimentary hot buffet meals on the trade show floor are included with registration. The trade show also includes the Main Stage with a robust schedule of educational programming. A kids’ activity area is also located inside the trade show. The nation’s top ag media will have a private preview prior to the opening of the trade show.
The trade show is just one of the many reasons to attend Commodity Classic. Commodity Classic offers a wide range of educational sessions including Learning Centers, What’s New Sessions, Mini What’s New Sessions, the General Session and Early Riser Sessions. Commodity Classic also includes entertainment and the opportunity to network with thousands of America’s best farmers.
Detailed information on all educational sessions and the entire Commodity Classic schedule are available at www.commodityclassic.com. Online registration and housing are also available on the website.
Grain Companies Fear Harm From New Tax Law
The new U.S. tax law is poised to drive more control over the nation's grain supply to farmer-owned cooperatives, provoking concern among ethanol producers and privately run grain handlers that they could be squeezed out of the competition to buy crops. Until now, the cooperatives, private companies and publicly traded firms had a more even opportunity to handle the grain supply used in everything from loaves of bread in supermarkets to livestock feed.
The changes mean massive grain traders such as Archer Daniels Midland Co, Bunge Ltd and Cargill Inc could find it difficult to source corn, soybeans and wheat, reports Reuters. The perceived threat to these companies stems from a provision included in the final stages of the law's passage in December. It gives farmers such a big tax deduction for selling their produce to agricultural cooperatives that private firms fear their grains supply will dry up.
The provision was championed by Republican farm state senators including John Thune of South Dakota and John Hoeven of North Dakota.
Privately held Cargill said on Tuesday it was surprised the provision was added to the bill at the last minute and is evaluating its potential impact.
Rival ADM, which also produces ethanol, said it too was evaluating the provision and various potential solutions to it.
NGFA & NCFC on Section 199A Tax Provisions
Chuck Conner, President & CEO, National Council of Farmer Cooperatives
Randy Gordon, President & CEO, National Grain and Feed Association
“We are aware of questions and concerns raised about the potential marketplace effects of the new section 199A of the Tax Cuts and Jobs Act as it relates to producers and agribusinesses. Congress’s intent in including this provision was to replicate the tax treatment previously available to co-op farmer-members, consistent with the bill’s overarching goal of creating jobs and economic growth including in rural America.
“We are working intensively with stakeholders, including cooperatives, non-cooperative-owned agribusinesses and Senate offices, including Senators Hoeven, Thune and Roberts. The goal of these discussions is to arrive at an equitable solution that preserves the benefits that cooperatives and their farmer patrons previously enjoyed under Section 199 of the tax code, while addressing any unforeseen impacts on producers’ marketing decisions. NCFC, NGFA and our stakeholders are committed to reaching a solution in a thoughtful and expeditious manner, and to working with Congress to address this issue promptly.”
USDA Announces its 94th Ag Outlook Forum
The U.S. Department of Agriculture reminds those interested in attending this year's Agricultural Outlook Forum that early bird registration ends Friday, January 26, 2018. The two-day meeting will be held at the Crystal Gateway Marriott Hotel in Arlington, Virginia, February 22-23, 2018.
The Agricultural Outlook Forum is the USDA's largest annual meeting, attracting as many as 2,000 attendees nationally and internationally. The Forum highlights key issues and topics within the agricultural community, offering a platform for conversation among producers, processors, policymakers, government officials, and non-governmental organizations, both foreign and domestic.
The theme for this year's 94th Annual Agricultural Outlook Forum is "The Roots of Prosperity." Along with a host of prestigious plenary speakers and discussions, attendees may choose from 30 informational sessions with more than 80 speakers and a host of agriculture related exhibits to visit.
High Oleic Soybeans Achieve Final Global Regulatory Milestone
High oleic soybeans have crossed their final regulatory hurdle, clearing the way for farmers to plant more acres of high oleic soybeans in 2018. Full global regulatory approval can help expand the market for high oleic soy and create opportunities to increase U.S. soybean value and competitiveness in the global marketplace.
“Achieving high oleic global regulatory approval enables us to meet end-user needs with a product they want and increase the use of U.S. soybean oil,” says Lewis Bainbridge, United Soybean Board chair and farmer from Ethan, South Dakota. “We encourage farmers to talk with their seed representatives about high oleic soybean variety options for 2018 planting to help keep pace with growing demand for this high-functioning oil.”
The soy checkoff has invested in research to ensure that high oleic soybeans deliver the qualities required by oil end users. These varieties produce a more stable oil for food industry use in restaurants and packaged goods. The oil also expands uses for non-food applications, such as synthetic motor oil and automotive lubricants.
For farmers, checkoff-supported research has helped ensure that high oleic soybeans perform the same as other soybean varieties and that variety development expanded to a wider range of maturity groups.
“For high oleic soybeans to be successful, we can’t sacrifice performance in the field or limit the geographies where they are grown,” says Bainbridge. “Farmers who plant high oleic soybean varieties consistently report that their high oleic varieties yield as well or better than their other soybean varieties.”
In order for end users to convert to high oleic soybean oil, they need a reliable, consistent supply. The checkoff has been working with industry partners to ramp up acreage of high oleic soybean varieties to meet growing demand. High oleic soybean varieties were initially grown in three states and are now grown in 13 states. Acreage of high oleic soybean varieties has grown from 50,000 acres in 2013 to more than 625,000 acres in 2017.
Given this regulatory milestone, its proven performance and anticipated continued growth in market demand, high oleic soybeans are expected to become the fourth-largest grain and oilseed crop in the U.S., with a goal of planting 18 million acres of high oleic soybeans.
Farmers interested in learning more about high oleic soybeans are encouraged to talk with their local seed representative and visit www.soyinnovation.com.
December Tractor Sales Rose, While Combines Fell Slightly
According to the Association of Equipment Manufacturer's monthly "Flash Report," the sale of all tractors in the U.S. in December 2017, were up 18% compared to the same month last year.
For the month, two-wheel drive smaller tractors (under 40 HP) were up 5% from last year, while 40 & under 100 HP were down 2%. Sales of 2-wheel drive 100+ HP were down 7%, while 4-wheel drive tractors were up 18%. Combine sales are down 3% for the month.
For the twelve months in 2017, a total of 220,546 tractors were sold which compares to 211,133 sold thru December 2016 representing a 5% increase for the year. For the year, two-wheel drive smaller tractors (under 40 HP) are up 8% over last year, while 40 & under 100 HP were even. Sales of 2-wheel drive 100+ HP are down 8%, while 4-wheel drive tractors are up 5%. Sales of combines for the year total 4,112 an increase of 4% from 2016.
Conab Raises Grain Estimates
Brazilian agriculture agency Conab raised its estimates for the country's soybean and corn harvests in the 2017-2018 growing season as good weather helped the crops.
Brazilian farmers will produce 110.4 million metric tons of soybeans in the season, Conab said Thursday, up from its forecast of 109.2 million tons in December. Brazil produced a record 114.1 million tons of soybeans in the 2016-2017 season.
Conab forecast a total corn crop of 92.3 million metric tons in the 2017-2018 season, up from the 92.2 million tons the agency forecast in December, though less than the 97.8 million tons produced in 2016-2017.
USGC Sees Growth Potential For Feed Production, Grain Imports In Myanmar
The US Grains Council recently conducted an on-the-ground assessment of the growth potential for Myanmar’s animal and feed manufacturing sectors - and how that growth could translate into increased exports of U.S. feed grains and co-products.
The Council assessed the Myanmar market for demand in the growing poultry and swine sectors as well as future areas of potential growth like aquaculture.
“Myanmar is advantageously positioned to experience double digit growth in its livestock sector over the next five years,” said Caleb Wurth, USGC assistant director of Southeast Asia. “The effect of Myanmar re-entering the international community after years of political and economic isolation will be a driving force in the increased economic growth of the country.”
Myanmar has a population of more than 60 million, and industry experts peg its growth rate as higher than neighboring countries Vietnam and Thailand. These dynamics create the potential for strong growth in livestock production, particularly poultry and swine, over the next few years.
Leading regional feed millers are already rapidly investing in feed mills and milling capacity in Myanmar. While on the ground, Council staff visited multiple feed mills, each projecting 20 to 30 percent growth expectations for both poultry and swine in the next year. Substantial port and infrastructure investments are also in progress.
Myanmar is currently a net corn exporting country, sending grain primarily to to China. However, growth in the feed sector still presents import opportunities. U.S. farmers and agribusinesses are already seeing Myanmar’s economic growth translate into imports of U.S. distiller's dried grains with solubles (DDGS). Myanmar imported 35,700 metric tons of U.S. DDGS in 2016/2017, a 154 percent increase year-over-year. Thus far in 2017/2018 (September-November 2017), Myanmar has purchased 10,600 tons of U.S. DDGS, a 22 percent increase from the same time the year prior.
While in country, representatives from the Council met with participants in the feed manufacturing and livestock sectors and those working in future growth markets like aquaculture. These partnerships will prove valuable as the Council works to establish additional market share for U.S. exporters in this growing economy.
These efforts complement work by the Council to meet new phytosanitary requirements related to pest risks, resulting in the re-opening of the corn market for U.S. exports, as of Dec. 1, 2017.
“It is important for us to take a hands-on approach in the development stages of new emerging markets,” Wurth said. “This input helps us be proactive as opposed to reactive when it comes to sensitive topics and building overall name recognition of U.S. feed grains and co products.”
During USGC Seminar, Bolivian Government Announces Intent To Establish E10 Mandate
The Bolivian government announced its intention to establish an ethanol blend mandate during a December seminar conducted by the U.S. Grains Council (USGC).
The Council traveled to Bolivia and Ecuador to continue dialogue on the benefits of ethanol following the Ethanol Summit of the Americas.
Bolivian Vice President Garcia Linera made the announcement during closing remarks at the event, reporting the government’s decision to implement an ethanol blend mandate starting at 10 percent in 2018 with goals of mid-level blends in coming years.
Bolivia did not previously have an ethanol blending mandate, though the country has seven sugarcane milling facilities already producing ethanol domestically. Linera emphasized the mandate would help increase domestic gross domestic product (GDP) in Bolivia by supporting local industry, while maintaining a role for trade to help consistently meet the E10 blend level.
“The Bolivian announcement is an exciting development for ethanol policy in the Americas,” said Mike Dwyer, USGC chief economist. “This success of the Council’s work to promote biofuels policies with a role for trade is directly attributable to the efforts to increase knowledge sharing and collaboration like at the Ethanol Summit of the Americas last fall.”
Linera’s comments followed a seminar organized by the Council to provide information on the economic and environmental benefits of biofuels. In addition to Dwyer, speakers from Mexico, Paraguay and Argentina provided information on the movement towards using ethanol and discussed the main constraints to developing biofuels policies in their respective countries.
“The seminar helped start the discussion between the public and the private sector in Bolivia for establishing an ethanol mandate,” Dwyer said. “Additionally, we offered knowledge and expertise from the U.S. perspective in growing an ethanol industry to help make it happen.”
During the same mission, the Council traveled to Ecuador to continue a similar dialogue on biofuels. Ecuador does have an E5 mandate in place, but a reliance on sugarcane to produce ethanol results in difficulty guaranteeing the blend rate during heavy rainy seasons that disrupt local production.
In contrast, an ethanol mandate with a role for trade would support the Ecuadorian domestic industry while ensuring the blending rate is met throughout the year, no matter the local weather disruptions. The blend mandate also contributes to Ecuador’s commitments under the Paris climate agreement to implement effective strategies to reduce greenhouse gas emissions.
“The Council expects this open dialogue between the private sector and government officials to result in future cooperative efforts to increase ethanol consumption,” Dwyer said. “The Council helped this effort by providing firsthand information about ethanol’s environmental benefits and market opportunities for the local industry in Ecuador.”
The Council arranged the meetings in Ecuador and Bolivia as a direct follow-up to the Ethanol Summit of the Americas in October 2017, after which representatives from both countries expressed additional interest in developing ethanol policies and requested further discussions. The Council plans to continue this dialogue and encourage the generation of biofuels policies throughout the world.
“U.S. ethanol has a competitive advantage in Latin America driven by cost of production, efficiencies and reduced transportation costs,” Dwyer said. “We aim to expand the use of ethanol in the region - including in Bolivia and Ecuador - through continuing to facilitate discussions on establishing pathways for its use.”
A quest for cleaner air led New York City to add more biodiesel into its energy mix, with some help from the Nebraska Soybean Board and ongoing support from the U.S. Soybean Checkoff. Soybean growers from Nebraska and the region recently visited the Big Apple to see how city leaders have made biodiesel a key part of their strategy to reduce vehicle and heating oil emissions. Soybean oil is the feedstock for the majority of biodiesel produced in the U.S.
A biodiesel blend of heating oil, known as Bioheat, has been provided by New York City heating oil dealers for several years. Last year the city council mandated an increased level of biodiesel in the blend due to the success in reducing emissions by using cleaner-burning biodiesel. The Nebraska Soybean Board was instrumental in developing the Bioheat market by funding the testing that led to its approval as a home-heating fuel. Soybean grower Wayne Heermann from Pilger, Neb. participated in the tour and learned firsthand about the role of the Soybean Checkoff in growing the use of biodiesel in New York City.
“I was impressed that the Nebraska Soybean Board and the United Soybean Board were able to get that done. I was proud of how they worked with New York City Council members and others to increase the use of Bioheat,” said Heermann.
New York officials have also increased the use of biodiesel blends to fuel their fleet of diesel vehicles, including fire engines and other equipment they count on in emergencies, even in cold weather.
“It says a lot that the fire department has enough faith in biodiesel to use it when they can’t afford to fail,” said Heermann. “They believe in the quality and reliability of biodiesel and that could lead other cities to try it.”
In 2017 NYC used a record amount of biodiesel blended fuel to keep the nation’s largest municipal vehicle fleet moving. Victor Bohuslavsky, executive director of the NSB, says the growth of Bioheat and biodiesel use in New York is good for Nebraska farmers living more than a thousand miles away.
“As demand for biodiesel grows, so does demand and prices for soybeans. By investing in developing markets for biodiesel, the Soybean Checkoff helps the farmer’s bottom line,” said Bohuslavsky.
Smart Ag delivers first cloud-based platform for driverless tractors
An Iowa technology company has unlocked the tremendous potential for automation in agriculture by developing the first cloud-based platform for driverless tractors. Smart Ag officials in Ames announced today they are releasing on a limited basis, the first application for the platform, called AutoCart®. This software application fully automates a grain cart tractor, which provide farmers much needed assistance during the demanding harvest season.
Colin Hurd, the founder and CEO of Smart Ag, said the innovative technology will allow farmers to automate their existing equipment and maximize its efficiency and capacity – regardless of manufacturer.
"Farming should no longer be defined by what the equipment industry decides is better or more profitable. We believe agriculture is best when farmers have choices," Hurd said. "The best way to improve our customers' operational capacity is to enable them to use automation and driverless technology on their farms. With the correct technology and knowledge, farmers can do the seemingly impossible."
Over two years in development, AutoCart, along with the tractor automation kit, is a plug-and-play system that automates existing grain cart tractors and is compatible with any brand or combination of brands. The system allows a combine operator to set staging and unloading locations in a field, adjust speed, monitor location and command the grain cart to sync precisely to the speed and direction of the combine. After it is loaded, the AutoCart automatically returns to an unloading point elsewhere in the field.
According to Hurd, the AutoCart application provides a solution to one of the biggest challenges facing every farmer – critical labor shortages during harvest. He said Smart Ag's driverless tractor technology "empowers farmers to leave the cab" and complete their operations faster and with less labor than ever before.
"AutoCart performs the same function as a driver, only it is more profitable, more reliable and safer," Hurd added. "Our technology has the potential to bring significant change to U.S. crop production through improved productivity, profitability and safety."
Smart Ag recently completed a comprehensive beta test of AutoCart on Midwest farms during the corn and soybean harvest. One of those test sites was Kyle Mehmen's fifth-generation MBS Family Farms near Plainfield, Iowa.
"The AutoCart system performed extremely well for us during our corn harvest, and I fully expect it to be a game changer for agriculture," Mehmen said. "These are the kind of technologies that we're going to adopt on our farm one way or the other. It's simply a matter of when and which ones."
The AutoCart technology is now available on a first-come, first-served basis through the Smart Ag website: www.Smart-Ag.com. Hurd said that the cost of the system is comparable to retrofitting a sprayer or planter with precision technology.
Based in Ames, Iowa, Smart Ag is an investor-backed technology company developing autonomous farming solutions for row crop agriculture. The company was founded in 2015 and is offering aftermarket retrofit kits to automate farm equipment, as well as a platform to connect, manage, and safely operate autonomous agricultural machinery. Smart Ag is led by successful ag entrepreneur Colin Hurd and former John Deere ISG and Ag Leader Manager Mark Barglof. For additional information, go to www.Smart-Ag.com.
National Biodiesel Conference to Celebrate 25 Years of Growth
Producers, marketers and aficionados are preparing to return to Fort Worth this month when the National Biodiesel Conference & Expo opens at the convention center for four days of all things biodiesel.
This year’s conference will also serve as a celebration for the conference sponsor when the National Biodiesel Board is honored for 25 years of service providing research and representation for the industry in Washington, DC, and across the country.
“Every conference we’ve sponsored has been an exciting event for our industry,” said NBB CEO Donnell Rehagan. “But this one is obviously going to be special as we take the opportunity to not only recognize the milestones we’ve passed over the last two-and-half decades, we’ll also look forward to meeting the challenges ahead as the industry continues to grow and plays an even greater role in America’s ever more critical energy sector.”
And the conference isn’t just for industry insiders. The public is invited Tuesday to join in the discussions focused on biodiesel technology, public policy and more. They will also have the opportunity to explore the event’s Conference Central, where they can learn all about how biodiesel is made from an increasingly diverse mix of resources such as recycled cooking oil, soybean oil and animal fats. A Texas driver’s license is required for local residents to attend free of charge. Wednesday, the public is invited back to participate in a “ride-and-drive” with vehicles provided by area dealers and equipped with the latest diesel engines.
Other highlights for attendees include a session with the filmmakers who premiered “Hot Grease” at the prestigious DOC NYC film festival before its debut on the Discovery Channel last November. The feature length documentary tells the story of biodiesel’s rise and the industry fight for survival in the face of numerous public policy challenges. The producers spent countless hours documenting the experiences of biodiesel entrepreneurs in Texas, while advocates in Washington, D.C., come together to fight off a barrage of attacks from opponents more interested in protecting the status quo.
The National Biodiesel Conference & Expo take places January 22 - 25 at the Fort Worth Convention Center. To learn more about the conference, including a full schedule of events and information on how to register, visit http://www.biodieselconference.org/.
Commodity Classic Trade Show Features 360+ Exhibitors; Wide Array of Equipment, Technology & Innovation
With a trade show featuring more than 360 exhibitors commanding nearly 2,000 booth spaces, Commodity Classic attendees are strongly encouraged to wear comfortable shoes!
The 2018 Commodity Classic, the nation’s largest farmer-led, farmer-focused convention and trade show, will be held Feb. 27-March 1 in Anaheim, Calif. The trade show is open all three days.
“The farmers who attend Commodity Classic are aggressively pursuing in making their farms even better,” said Gerry Hayden, a Kentucky farmer and co-chair of the 2018 Commodity Classic. “That quality of farmer encourages exhibitors to staff their booths with knowledgeable people who can answer challenging questions. It’s really about getting the best of the best together.”
While many of the world’s leading agribusiness companies are on site, so are scores of smaller exhibitors offering a wide range of technology, equipment and innovation. “I think of it as ‘density’—and I’m not just talking about wheel-to-wheel equipment,” said Paul Taylor, an Illinois farmer and co-chair of the 2018 Commodity Classic. “I’m talking about density of knowledge from the presenters and the folks who exhibit. This is a high-quality show, where people can get answers and take a look at some things that might be new to them.”
Admission to the trade show is included with the registration fee. Complimentary hot buffet meals on the trade show floor are included with registration. The trade show also includes the Main Stage with a robust schedule of educational programming. A kids’ activity area is also located inside the trade show. The nation’s top ag media will have a private preview prior to the opening of the trade show.
The trade show is just one of the many reasons to attend Commodity Classic. Commodity Classic offers a wide range of educational sessions including Learning Centers, What’s New Sessions, Mini What’s New Sessions, the General Session and Early Riser Sessions. Commodity Classic also includes entertainment and the opportunity to network with thousands of America’s best farmers.
Detailed information on all educational sessions and the entire Commodity Classic schedule are available at www.commodityclassic.com. Online registration and housing are also available on the website.
Grain Companies Fear Harm From New Tax Law
The new U.S. tax law is poised to drive more control over the nation's grain supply to farmer-owned cooperatives, provoking concern among ethanol producers and privately run grain handlers that they could be squeezed out of the competition to buy crops. Until now, the cooperatives, private companies and publicly traded firms had a more even opportunity to handle the grain supply used in everything from loaves of bread in supermarkets to livestock feed.
The changes mean massive grain traders such as Archer Daniels Midland Co, Bunge Ltd and Cargill Inc could find it difficult to source corn, soybeans and wheat, reports Reuters. The perceived threat to these companies stems from a provision included in the final stages of the law's passage in December. It gives farmers such a big tax deduction for selling their produce to agricultural cooperatives that private firms fear their grains supply will dry up.
The provision was championed by Republican farm state senators including John Thune of South Dakota and John Hoeven of North Dakota.
Privately held Cargill said on Tuesday it was surprised the provision was added to the bill at the last minute and is evaluating its potential impact.
Rival ADM, which also produces ethanol, said it too was evaluating the provision and various potential solutions to it.
NGFA & NCFC on Section 199A Tax Provisions
Chuck Conner, President & CEO, National Council of Farmer Cooperatives
Randy Gordon, President & CEO, National Grain and Feed Association
“We are aware of questions and concerns raised about the potential marketplace effects of the new section 199A of the Tax Cuts and Jobs Act as it relates to producers and agribusinesses. Congress’s intent in including this provision was to replicate the tax treatment previously available to co-op farmer-members, consistent with the bill’s overarching goal of creating jobs and economic growth including in rural America.
“We are working intensively with stakeholders, including cooperatives, non-cooperative-owned agribusinesses and Senate offices, including Senators Hoeven, Thune and Roberts. The goal of these discussions is to arrive at an equitable solution that preserves the benefits that cooperatives and their farmer patrons previously enjoyed under Section 199 of the tax code, while addressing any unforeseen impacts on producers’ marketing decisions. NCFC, NGFA and our stakeholders are committed to reaching a solution in a thoughtful and expeditious manner, and to working with Congress to address this issue promptly.”
USDA Announces its 94th Ag Outlook Forum
The U.S. Department of Agriculture reminds those interested in attending this year's Agricultural Outlook Forum that early bird registration ends Friday, January 26, 2018. The two-day meeting will be held at the Crystal Gateway Marriott Hotel in Arlington, Virginia, February 22-23, 2018.
The Agricultural Outlook Forum is the USDA's largest annual meeting, attracting as many as 2,000 attendees nationally and internationally. The Forum highlights key issues and topics within the agricultural community, offering a platform for conversation among producers, processors, policymakers, government officials, and non-governmental organizations, both foreign and domestic.
The theme for this year's 94th Annual Agricultural Outlook Forum is "The Roots of Prosperity." Along with a host of prestigious plenary speakers and discussions, attendees may choose from 30 informational sessions with more than 80 speakers and a host of agriculture related exhibits to visit.
High Oleic Soybeans Achieve Final Global Regulatory Milestone
High oleic soybeans have crossed their final regulatory hurdle, clearing the way for farmers to plant more acres of high oleic soybeans in 2018. Full global regulatory approval can help expand the market for high oleic soy and create opportunities to increase U.S. soybean value and competitiveness in the global marketplace.
“Achieving high oleic global regulatory approval enables us to meet end-user needs with a product they want and increase the use of U.S. soybean oil,” says Lewis Bainbridge, United Soybean Board chair and farmer from Ethan, South Dakota. “We encourage farmers to talk with their seed representatives about high oleic soybean variety options for 2018 planting to help keep pace with growing demand for this high-functioning oil.”
The soy checkoff has invested in research to ensure that high oleic soybeans deliver the qualities required by oil end users. These varieties produce a more stable oil for food industry use in restaurants and packaged goods. The oil also expands uses for non-food applications, such as synthetic motor oil and automotive lubricants.
For farmers, checkoff-supported research has helped ensure that high oleic soybeans perform the same as other soybean varieties and that variety development expanded to a wider range of maturity groups.
“For high oleic soybeans to be successful, we can’t sacrifice performance in the field or limit the geographies where they are grown,” says Bainbridge. “Farmers who plant high oleic soybean varieties consistently report that their high oleic varieties yield as well or better than their other soybean varieties.”
In order for end users to convert to high oleic soybean oil, they need a reliable, consistent supply. The checkoff has been working with industry partners to ramp up acreage of high oleic soybean varieties to meet growing demand. High oleic soybean varieties were initially grown in three states and are now grown in 13 states. Acreage of high oleic soybean varieties has grown from 50,000 acres in 2013 to more than 625,000 acres in 2017.
Given this regulatory milestone, its proven performance and anticipated continued growth in market demand, high oleic soybeans are expected to become the fourth-largest grain and oilseed crop in the U.S., with a goal of planting 18 million acres of high oleic soybeans.
Farmers interested in learning more about high oleic soybeans are encouraged to talk with their local seed representative and visit www.soyinnovation.com.
December Tractor Sales Rose, While Combines Fell Slightly
According to the Association of Equipment Manufacturer's monthly "Flash Report," the sale of all tractors in the U.S. in December 2017, were up 18% compared to the same month last year.
For the month, two-wheel drive smaller tractors (under 40 HP) were up 5% from last year, while 40 & under 100 HP were down 2%. Sales of 2-wheel drive 100+ HP were down 7%, while 4-wheel drive tractors were up 18%. Combine sales are down 3% for the month.
For the twelve months in 2017, a total of 220,546 tractors were sold which compares to 211,133 sold thru December 2016 representing a 5% increase for the year. For the year, two-wheel drive smaller tractors (under 40 HP) are up 8% over last year, while 40 & under 100 HP were even. Sales of 2-wheel drive 100+ HP are down 8%, while 4-wheel drive tractors are up 5%. Sales of combines for the year total 4,112 an increase of 4% from 2016.
Conab Raises Grain Estimates
Brazilian agriculture agency Conab raised its estimates for the country's soybean and corn harvests in the 2017-2018 growing season as good weather helped the crops.
Brazilian farmers will produce 110.4 million metric tons of soybeans in the season, Conab said Thursday, up from its forecast of 109.2 million tons in December. Brazil produced a record 114.1 million tons of soybeans in the 2016-2017 season.
Conab forecast a total corn crop of 92.3 million metric tons in the 2017-2018 season, up from the 92.2 million tons the agency forecast in December, though less than the 97.8 million tons produced in 2016-2017.
USGC Sees Growth Potential For Feed Production, Grain Imports In Myanmar
The US Grains Council recently conducted an on-the-ground assessment of the growth potential for Myanmar’s animal and feed manufacturing sectors - and how that growth could translate into increased exports of U.S. feed grains and co-products.
The Council assessed the Myanmar market for demand in the growing poultry and swine sectors as well as future areas of potential growth like aquaculture.
“Myanmar is advantageously positioned to experience double digit growth in its livestock sector over the next five years,” said Caleb Wurth, USGC assistant director of Southeast Asia. “The effect of Myanmar re-entering the international community after years of political and economic isolation will be a driving force in the increased economic growth of the country.”
Myanmar has a population of more than 60 million, and industry experts peg its growth rate as higher than neighboring countries Vietnam and Thailand. These dynamics create the potential for strong growth in livestock production, particularly poultry and swine, over the next few years.
Leading regional feed millers are already rapidly investing in feed mills and milling capacity in Myanmar. While on the ground, Council staff visited multiple feed mills, each projecting 20 to 30 percent growth expectations for both poultry and swine in the next year. Substantial port and infrastructure investments are also in progress.
Myanmar is currently a net corn exporting country, sending grain primarily to to China. However, growth in the feed sector still presents import opportunities. U.S. farmers and agribusinesses are already seeing Myanmar’s economic growth translate into imports of U.S. distiller's dried grains with solubles (DDGS). Myanmar imported 35,700 metric tons of U.S. DDGS in 2016/2017, a 154 percent increase year-over-year. Thus far in 2017/2018 (September-November 2017), Myanmar has purchased 10,600 tons of U.S. DDGS, a 22 percent increase from the same time the year prior.
While in country, representatives from the Council met with participants in the feed manufacturing and livestock sectors and those working in future growth markets like aquaculture. These partnerships will prove valuable as the Council works to establish additional market share for U.S. exporters in this growing economy.
These efforts complement work by the Council to meet new phytosanitary requirements related to pest risks, resulting in the re-opening of the corn market for U.S. exports, as of Dec. 1, 2017.
“It is important for us to take a hands-on approach in the development stages of new emerging markets,” Wurth said. “This input helps us be proactive as opposed to reactive when it comes to sensitive topics and building overall name recognition of U.S. feed grains and co products.”
During USGC Seminar, Bolivian Government Announces Intent To Establish E10 Mandate
The Bolivian government announced its intention to establish an ethanol blend mandate during a December seminar conducted by the U.S. Grains Council (USGC).
The Council traveled to Bolivia and Ecuador to continue dialogue on the benefits of ethanol following the Ethanol Summit of the Americas.
Bolivian Vice President Garcia Linera made the announcement during closing remarks at the event, reporting the government’s decision to implement an ethanol blend mandate starting at 10 percent in 2018 with goals of mid-level blends in coming years.
Bolivia did not previously have an ethanol blending mandate, though the country has seven sugarcane milling facilities already producing ethanol domestically. Linera emphasized the mandate would help increase domestic gross domestic product (GDP) in Bolivia by supporting local industry, while maintaining a role for trade to help consistently meet the E10 blend level.
“The Bolivian announcement is an exciting development for ethanol policy in the Americas,” said Mike Dwyer, USGC chief economist. “This success of the Council’s work to promote biofuels policies with a role for trade is directly attributable to the efforts to increase knowledge sharing and collaboration like at the Ethanol Summit of the Americas last fall.”
Linera’s comments followed a seminar organized by the Council to provide information on the economic and environmental benefits of biofuels. In addition to Dwyer, speakers from Mexico, Paraguay and Argentina provided information on the movement towards using ethanol and discussed the main constraints to developing biofuels policies in their respective countries.
“The seminar helped start the discussion between the public and the private sector in Bolivia for establishing an ethanol mandate,” Dwyer said. “Additionally, we offered knowledge and expertise from the U.S. perspective in growing an ethanol industry to help make it happen.”
During the same mission, the Council traveled to Ecuador to continue a similar dialogue on biofuels. Ecuador does have an E5 mandate in place, but a reliance on sugarcane to produce ethanol results in difficulty guaranteeing the blend rate during heavy rainy seasons that disrupt local production.
In contrast, an ethanol mandate with a role for trade would support the Ecuadorian domestic industry while ensuring the blending rate is met throughout the year, no matter the local weather disruptions. The blend mandate also contributes to Ecuador’s commitments under the Paris climate agreement to implement effective strategies to reduce greenhouse gas emissions.
“The Council expects this open dialogue between the private sector and government officials to result in future cooperative efforts to increase ethanol consumption,” Dwyer said. “The Council helped this effort by providing firsthand information about ethanol’s environmental benefits and market opportunities for the local industry in Ecuador.”
The Council arranged the meetings in Ecuador and Bolivia as a direct follow-up to the Ethanol Summit of the Americas in October 2017, after which representatives from both countries expressed additional interest in developing ethanol policies and requested further discussions. The Council plans to continue this dialogue and encourage the generation of biofuels policies throughout the world.
“U.S. ethanol has a competitive advantage in Latin America driven by cost of production, efficiencies and reduced transportation costs,” Dwyer said. “We aim to expand the use of ethanol in the region - including in Bolivia and Ecuador - through continuing to facilitate discussions on establishing pathways for its use.”
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