Tuesday December 27 Ag News

2011-2012 Nutrient Management Record Keeping Calendars are Available
Larry Howard, UNL Extension Educator, Cuming County

The University of Nebraska Animal Manure Management team with the help of Purdue University has developed an easy-to-use record keeping calendar for livestock operations that need to keep track of manure related records. The calendar is endorsed by the Nebraska Department of Environmental Quality and the U.S. Environmental Protection Agency for use by permitted operations.  With new regulations for medium and small operations that have waste control facilities, it’s a simple and organized way to keep monthly records in one place.   Contact your local Extension office or Leslie Johnson (402-584-3818, ljohnson13@unl.edu) to obtain a free copy of the 2011-2012 calendar. Calendars are good through December 2012.

Farmers Tax Guides Also Available
Farmers can better understand their 2011 tax returns with help from a guide available through the University of Nebraska-Lincoln Extension. The 2011 Farmers Tax guide has illustrated examples, a sample return and describes available deductions.  Cuming County Extension Educator Larry Howard says the tax guides are in and are free to local producers.  They can be picked up at the UNL Extension office in Cuming County, area tax preparers or any Cuming County bank.



Flooding Tops Farm Bureau’s List of Top 5 Nebraska Ag Stories

By any measure, the flooding along the Missouri and Platte Rivers was the state's top agricultural news story of 2011, Nebraska Farm Bureau said in releasing its annual list of the Top 5 Agricultural News Stories of the Year.

The flooding along the Missouri alone cost farmers with land along the river $105 million in crop losses and cost the state's economy as a whole nearly $189 million, according to a study commissioned by Nebraska Farm Bureau. Net farm income was $41 million less than it would have been without the flooding.

"Those numbers only tell part of the story," Farm Bureau President Steve Nelson said. "The farmers and ranchers who were affected by flooding will be dealing with the effects of the flood and reduced production for several years. Businesses that process crops, market and distribute crop products, and companies that sell equipment and machinery to farmers – all are affected."

The other Top 5 stories, in no particular order, are:
•    The strong response from Nebraska agriculture, local chambers of commerce and communities to attacks on agriculture, especially food animal production.
 "Animal rights groups stepped up their activity in Nebraska this year and it was gratifying to see nearly all of the ag groups coming together, including Farm Bureau, to oppose this activity and to educate about how we grow crops and livestock," Nelson said, by forming a new organization, We Support Agriculture. In addition, 13 local chambers of commerce, including the Omaha Chamber, adopted resolutions supporting Nebraska agriculture and opposing restrictions on livestock production which would harm Nebraska's way of life.

•    Record-setting ag land values and agricultural profitability. Farm land values in Nebraska increased roughly 41 percent over 2010, according to the Federal Reserve Bank of Kansas City and some irrigated crop land sold in excess of $10,000 an acre. Many ag commodities reached unprecedented price territory. UNL forecast net farm income for Nebraska for 2011 to be about $5.4 billion, compared to about $4.2 billion a year ago.  "Farmers paid down debt, upgraded equipment and purchased land," Nelson said. At the same time, high prices for energy drove up the cost of everything from production inputs to the retail cost of food, he said.

•    Regulatory overkill. "EPA wanted to regulate dust and spilled milk. The IRS wanted farmers to get or issue a form 1099 whenever purchases topped $600 in a year. The Department of Labor wants to restrict the jobs children can do on farms and ranches, including the very important job of detasseling. The Department of Transportation wanted owners and operators of farm equipment to get a Commercial Drivers License. And the list goes on," Nelson said.

Other examples: EPA sought to institute a new federal permit under the Clean Water Act for farmers who apply pesticides, even though the practice is already well-regulated under the Federal Insecticide, Fungicide and Rodenticide Act. EPA also sought new authority to regulate greenhouse gases which would have resulted in utilities, refiners and manufacturers passing on their increased costs to farmers as higher prices for fertilizer and fuel and other energy costs.

"These kinds of regulations show little understanding of today's farming and ranching practices and working to defeat them is taking more and more of farmers' time," Nelson said.

•    The federal budget deficit and the work of the Joint Committee on Deficit Reduction. "Nebraska farmers have a huge stake in the size of the federal debt because it affects their costs of borrowing money and the value of their commodities in export," Nelson said.

As part of the deficit reduction effort, the chairs of the House and Senate Agriculture Committees essentially drafted the next farm bill, he said. Although the Joint Committee failed to offer a proposal to Congress and the next farm bill will be developed in a more traditional manner, the process made it clear that direct farm payments are most likely a thing of the past, Nelson said, and that crop insurance will play a much larger role in providing a safety net in times of crop disasters.

Looking ahead to 2012, Nelson predicted the Top 5 Ag Stories of the New Year will be the farm bill, tax issues, profitability, the elections and continuing attacks on agriculture.

•    The farm bill. "The work done for the deficit reduction effort (in 2011) makes it clear that the next farm bill will put greater emphasis on assisting farmers when they're faced with major losses. Our members don't want the government to guarantee a profit, but they do want to maintain a strong crop insurance program," Nelson said.

•    Taxes. Several major tax provisions expire in 2012, including the rules for federal estate taxes, capital gains, depreciation and the current federal taxes rates. How these are handled will have a tremendous impact on farmers' and ranchers' day-to-day operations and estate planning, he said.

•    Profitability. Market prices for farm commodities will likely decline after 2011's record highs and net farm income is expected to be down. Rising costs for crop inputs and impacts from the financial world, such as the MF Global situation and Greece's instability, will be felt on the farm. "Achieving profitability will be much more difficult in 2012 than in 2011," Nelson said.

•    The 2012 elections. The presidential election will likely determine whether expansion of government regulations for agriculture continues, Nelson said. At the state level, legislative redistricting following the 2010 Census means the legislature will be more urban than ever. "As an organization, we'll continue to support candidates who understand agriculture and its needs," he said, and work with all state senators to support legislation that supports agriculture, Nebraska's economic driver.

•    Continued attacks on agriculture. "We see this continuing, and that means we in agriculture need to do even more to connect directly with consumers and answer their questions about how food is produced – rather than just tell them what we think they want to know," Nelson said.

Reflecting on Farm Bureau's predictions a year ago for 2011's top ag stories, Nelson said the organization did a good job of forecasting. The 2011 list included federal and state budget deficits; trade; increasing attacks on agriculture; market volatility, input costs and profitability; and regulatory uncertainty.

"Although looking back we didn't name trade as a top five  issue of 2011, certainly passage of the Free Trade Agreements with Columbia, Panama and South Korea this year, after many years of effort, will have major positive impacts for Nebraska farmers and ranchers," he said.

And the Platte and Missouri River flooding? "Many times we've had 'weather' as one of our top story predictions, but not for 2011. Most often drought is more of a concern in Nebraska than having too much water. Flooding is not on our list for 2012 because we believe the Corps of Engineers will take timely action this year to avoid it," he said.



2011 in Review
Senator Mike Johanns

It’s hard to believe 2011 has come to an end and my first term representing you in the U.S. Senate is at its midpoint. We’ve accomplished a lot this year, and I want to thank all of you who took time out of your busy schedules to meet with me. As 2011 draws to a close, I thought it would be appropriate to reflect upon the year.

We started right where we left off in 2010—working to repeal the burdensome 1099 mandate tacked onto the health care law. Repeal of 1099 was one of the first pieces of legislation I introduced in the new Congress, and I'm pleased that a bipartisan majority agreed with me. Repeal of this ill-advised mandate was signed into law by the President shortly thereafter, saving more than 40 million small businesses – our nation’s job creators – from a paperwork monsoon.

The new Congress also brought about a new committee assignment, and throughout the year I used my position on the Environment and Public Works (EPW) Committee to push back against EPA’s regulatory overreach. My legislation to exempt milk spills on dairy farms from being regulated in the same manner as oil spills raised the profile of this ludicrous EPA idea. I was pleased when EPA finally approved the exemption. I also worked hard to fight against the agency’s attempts to regulate farm dust. Facing the potential of an overwhelming bipartisan vote on my legislation, EPA Administrator Jackson announced the agency would back off the rule.

I've also been working to ensure those affected by the Missouri River flooding are receiving assistance. I introduced legislation to ensure the flood victims are treated fairly and signed onto a bill that would ensure the Army Corps take the devastating flood of 2011 into consideration when preparing their 2012 plan.  I witnessed firsthand extraordinary resolve as I visited affected communities to get a clear understanding of the challenges you face.

Our debt and deficit remains a serious challenge in Washington, and I cosponsored a balanced budget amendment and voted for the only bill brought to the floor that made a serious effort to cut spending. I also spearheaded an effort with Senator Michael Bennet to bring together more than 60 Senators – 32 Republican and 32 Democrat – to urge President Obama to join us in solving our budget woes.

We tackled many important issues this year, and I invite you to visit http://www.johanns.senate.gov for a full report. But our work is not done. Next year we must work even harder to rein-in government spending and control our ballooning debt. The federal bureaucracy continues its regulatory march. I will continue my work to stop the overreach and infuse some commonsense into regulations. Whether through email, on the phone, by signing up for my e-Update, or stopping by one of my offices to say hello, your insight is greatly valued and appreciated. After all, you are the reason Stephanie and I are so proud to call Nebraska our home. God bless.



Alltech North American Lecture Tour
January stops in NE, IA

Since the first intelligible sentence was carried through telephone wire on March 10, 1876 in the rented top floor of a Boston boarding house, the world has been on a constant move to find the latest breakthroughs in technology. These advances in technology will be showcased in Shaping Tomorrow’s World: Path to a Profitable Future, the theme of Alltech’s 2011 North American Lecture Tour. Speakers on the 24 stop tour will explore how the latest technological developments can move the agriculture industry forward.  The lecture tour will examine such issues as programmed nutrition, epigenetics, sales organizations, the Alltech Ag Network, social media and the implementation of algae in our nutrition program.  Stops include:  January 17, The Cornhusker Marriott, Lincoln, NE, 3pm;  January 31, Gateway Hotel and Conference Center, Ames, Iowa, 9am.  There is NO CHARGE for the event and a FREE DINNER will be served.  Bring a friend or neighbor!  Groups and students are encouraged to attend.  Please RSVP to Alltech South Dakota at 605.692.5310 or llangemeier@alltech.com.  Go here for more information... http://alltech.com/about/events/north-america-lecture-tour. 



Webinar to Discuss U.S., Farm Economic Outlook

While the agricultural industry is helping to strengthen the state's overall economy, it's important for Iowa farmers to carefully manage risk and understand economic challenges and opportunities, says the Iowa Farm Bureau Federation (IFBF). IFBF will offer a 2012 U.S. and farm economic outlook webinar on Jan. 17 at noon (CST).

The webinar will feature Robert Dieli, president of RDLB, Inc., and Paul Prentice, president of Farm Sector Economics. They will discuss the current volatility in agriculture and offer insight in opportunities and potential challenges.

Participants can access the free webinar at www.iowafarmbureau.com and look for the link on the main rotating banner. Registration is encouraged. Participants can also log in as guests on the day of the webinar.

For more information, contact Ed Kordick, Iowa Farm Bureau commodity services manager, at 515-225-5433.



Biodiesel Statement on EPA Renewable Fuels Rule

The National Biodiesel Board (NBB) expressed support Tuesday for the EPA's final rule establishing U.S. renewable fuel requirements for 2012 and called on the Obama administration to act quickly in completing a 2013 rule that maintains the EPA's recommended volume increases for Biomass-based Diesel.

The 2012 rule raises the Biomass-based Diesel program to 1 billion gallons, up from 800 million gallons this year. According to the latest EPA figures, the biodiesel industry had produced some 908 million gallons through the end of November, exceeding the 2011 requirement with one month of production remaining.

"This industry has shown without a doubt that it can meet and exceed the goals of this program in a sustainable way, with a diverse mix of feedstocks," said Anne Steckel, vice president of federal affairs at NBB, the trade association for the U.S. biodiesel industry. "Our industry has plants in nearly every state in the country that are hiring new employees and ramping up production, in part because of the demand that this policy creates. As the only EPA-designated advanced biofuel being produced on a commercial scale nationwide, we look forward to continued growth in 2012."

Steckel also urged the administration to issue a final rule for 2013 volumes raising the Biomass-based Diesel requirement to 1.28 billion gallons, as the EPA proposed earlier this year. The EPA on Tuesday postponed finalizing the 2013 volume, saying it needs more time for review.

"We would have preferred to see that number released in this announcement and hope to see it finalized soon so that our member companies can plan their investments and continue boosting this economy," Steckel said. "The increase will create thousands of jobs, improve our energy security by diversifying the fuel supply and cut down on pollution and greenhouse gas emissions."

A recent economic study on biodiesel found that domestic production of 800 million gallons supports more than 31,225 jobs, generates income of nearly $1.7 billion to be circulated throughout the economy, and creates more than $3 billion in GDP.  At 1.28 billion gallons of production - the EPA's initial proposal for 2013 - the industry would support 50,725, generate $2.7 billion in income, and create nearly $5 billion in GDP.

Biodiesel makes up the vast majority of the Biomass-based Diesel program under the RFS. Because it also qualifies as an advanced biofuel under the program - with greenhouse gas emission reductions of 57 percent to 86 percent - biodiesel is also eligible to help meet general advanced biofuels requirements under the program.



Brazil May Not Fill Ethanol Void

The U.S. will drop all trade barriers on ethanol imports from Jan. 1, but amid the ballyhoo, there's unlikely to be much impact as Brazil, the main potential supplier, is struggling to meet its own demand.

Congress adjourned on Friday without extending the tariffs on ethanol, including the $0.54 per gallon tax on imported ethanol and a corresponding tax credit of $0.45 per gallon for blenders.

The move was expected after U.S. producers gave up lobbying for the credit earlier this year. The industry is now seeking subsidies to build more ethanol-compatible fueling stations and for commercializing newer forms of ethanol made from the inedible parts of plants.

The U.S. industry "has evolved, policy has progressed, and the market has changed making now the right time for the incentive to expire," the U.S. ethanol trade group, the Renewable Fuels Association, said on its website Thursday.

Demand in the U.S. is assured through 2022 thanks to a federal mandate that forces refiners to blend more and more ethanol with gasoline--an opportunity which led Brazil to lobby hard for the expiration of the tariff for years.

Brazil wants to sell its sugarcane-based ethanol, which it says is cheaper to produce and more fuel efficient than U.S. corn-based ethanol. But shortages at home may not mean Brazilian producers will secure an overnight windfall, though they are optimistic about the long term.

"This is the beginning of the consolidation of ethanol as a global commodity," said Marcos Jank, president of Brazil's sugarcane association, Unica, in an interview. "It will guarantee a lower cost of gasoline at the pump for Americans."

For Brazilian farmers, the end of the U.S. trade barriers could prompt renewed investment after several years of uncertainty and misfortune on the production front, even as domestic demand soared thanks to sturdy economic growth.

Sugarcane ethanol is a major fuel source in Brazil, where half the domestic auto fleet--or around 15 million cars--have flex-fuel engines. Drivers can choose between filling their tanks with hydrous ethanol--a pure alcohol fuel--or gasoline, which contains a government-mandated 20% anhydrous ethanol.

But the sugarcane industry was hammered by the 2008 global financial crisis, with many farmers and processing plants falling into bankruptcy. Since then, much of the industry's attention has been focused on the wave of new capital, which has swooped in to snap up troubled companies, rather than on planting more sugarcane.

Added to that, Brazil's government has frozen fuel prices at below-market rates to avoid a significant impact on domestic inflation, though that has made pure ethanol less competitive. That distorts the balance between production of hydrous and anhydrous ethanol.

Finally, the industry has also been beset by climate problems, which damaged harvests. That led to some shortages of ethanol earlier this year, a sharp jump in ethanol prices and a surge in ethanol imports--some of which came from the U.S.--to meet the shortfall. The Brazilian government has since moved to introduce regulations that it hopes will ensure there will be sufficient ethanol supplies in the future.

"Brazil won't become a huge exporter that quickly," said Jank. But "over the next 10 years we will have the opportunity to expand production by 10 times, and will be able to meet some of the U.S. demand."

What Brazil needs most is some "predictability," said Jank, adding that the end to U.S. tariffs helps create that longer-term perspective.

Jank said that he hopes the move by the U.S. will now allow the South American free trade bloc, Mercosur, to reduce its barriers on ethanol. While Brazil eliminated its tariffs in 2010 as a result of its shortage, the other Mercosur countries, particularly Argentina, continue to protect their local industry with a 20% tariff.

"I can't understand how you could have a biofuels policy based only on domestic raw materials. With an agricultural commodity which depends on climate, by definition you have to talk of a global market," Jank said.