Wednesday December 14 Ag News

PrairieLand RC&D Meeting Set for Dec. 21

The PrairieLand Resource Conservation & Development Council will hold their monthly meeting on Dec. 21 at the St. Edward City Library in St. Edward.

The meeting will start at 10:30 am followed by a roundtable discussion at the Grapevine Restaurant in St. Ed. The council will continue their discussion regarding the future of the RC&D program, upcoming electronics/tire recycling events and the new tree program project.

The public is always invited and encouraged to attend all PrairieLand RC&D meetings. PrairieLand RC&D is a non-profit organization helping concerned citizens complete vital rural development projects in Nance, Boone, Colfax, Madison, Stanton and Platte Counties.

Everyone is encouraged to participate in active projects, propose new projects and attend meetings. Please join us to find out what you can do to get involved in helping your rural community.

Contact the RC&D office at 402-454-2026 for more information.



Agriculture Secretary Vilsack Announces Funding To Create Jobs, Reduce Energy Costs for Agricultural Producers and Rural Small Businesses

Agriculture Secretary Tom Vilsack today announced loans and grants for agricultural producers and rural small businesses across the country to implement renewable energy and energy efficiency measures in their operations. The funding is provided through USDA Rural Development's Rural Energy for America Program (REAP). Under Secretary for Rural Development Dallas Tonsager made the announcement on behalf of Secretary Vilsack while attending an energy efficiency conference here today.

"Stable energy costs create an environment for job growth in rural America," Vilsack said. "The Obama Administration is helping agricultural producers and business owners reduce their energy costs and consumption – and by doing so is helping preserve our natural resources, protect the environment and strengthen the bottom line for businesses, ranchers and farm operations."

Collectively, these REAP-funded projects announced today, and those announced earlier by USDA are expected to lower energy usage by 2 billion kilowatts and prevent nearly 2 million metric tons of emissions from being released into the environment. Today's announcement concludes the REAP awards cycle for 2011. REAP, authorized through the 2008 Farm Bill, provides loans and grants for farmers, ranchers and rural small business owners to purchase and install renewable energy systems and make energy-efficiency improvements. These federal dollars are leveraged with other funding sources for the projects.

Tonsager said that in Fiscal Year 2011, USDA Rural Development provided through the REAP program a total of $23.2 million for energy efficiency projects, $20.9 million for biodigesters, $20.3 million for solar energy projects, $8.2 million for hydroelectric systems, $7 million for biomass energy projects, $4.28 million for flexible fuel pump projects, $3.9 million for wind energy projects, $1.4 million for geothermal installations.

Improving Energy Efficiency
One recipient announced today, Wilford J. Hayden in Lowell, Ind., is expected to save almost 1.4 million kilowatt hours when he replaces a grain dryer with a more efficient one. K and K Farms, Inc., in Stuart, Iowa, has been selected to receive a $10,737 grant to help purchase a new grain drying system that is expected to reduce annual energy costs by more than 57 percent.

Under Secretary Tonsager noted that the nearby Port of New Orleans moves more than half of the nation's grain exports, and that the more fuel efficient grain dryers that USDA is helping to fund contributes to that success. "The Port of New Orleans is considered America's gateway to the global market. It helped American farm exports reach a record high of $137.4 billion for fiscal year 2011 -- supporting 1.15 million jobs, and creating a record trade surplus of $42.9 billion," said Tonsager. "As Secretary Vilsack stated last month, strong export performance means higher incomes for farmers and ranchers, more opportunities for small business owners and jobs for folks who package, ship and market agricultural products."

With today's announcement, USDA Rural Development is funding more than 280 projects to help reduce energy costs. In all, the department funded more than 1,100 energy efficiency projects in fiscal year 2011, including improvements in aquaculture, poultry lighting and ventilation, irrigation system upgrades, maple syrup production efficiency, small business heating and cooling, rural grocery cooler replacement and others.

Flexible Fuel Pumps
USDA is providing support for 12 flexible fuel pump projects in eight states as part of today's announcement, bringing the number of flex-fuel projects funded to 65 in FY 2011, with 266 new pumps being installed in 30 states. Installing flexible fuel pumps encourages the use of biofuels and supports our nation's growing clean-energy economy. Flexible fuel pumps are specifically designed to dispense ethanol-gasoline blends that contain up to 85 percent ethanol and 15 percent gasoline. In addition, they may also dispense mid-level blends, such as E15 and E30.

For example, Mid-Iowa Cooperative in Beaman, Iowa, has been selected for a $94,211 grant to purchase and install six flexible fuel pumps. The following is a list of additional flexible fuel projects announced today that USDA is funding:

Nebraska
    NCP Fuel Services, LLC – $418,250 grant to construct a new fueling station with seven flexible fuel stations that will offer ethanol and biodiesel blends

Iowa
    Freedom Rock Renewable Fuels, LLC #1 – $49,925 grant to install two flexible fuel pumps
    Freedom Rock Renewable Fuels, LLC #2 – $49,578 grant to install a flexible fuel pump
    Heller Implement, Inc. – $36,001 grant to install three flexible fuel pumps and a new underground biofuel storage tank
    Marcus Junction, LLC – $7,500 grant to install a blender fuel pump
    Mid-Iowa Cooperative – $94,211 grant to buy and install six flexible fuel pumps

South Dakota
    Stone Oil Company, Inc. – $33,307 grant to install flexible fuel pumps

North Dakota
    Farmers Union Oil Company of Velva – $159,739 grant to purchase and install 13 flexible fuel dispensers

Kansas
    CC of Hays, Inc. – $35,925 grant to install a flexible fuel pump, underground biofuel storage tank and fuel lines

Minnesota
    Farmers Cooperative Oil Company – $68,205 grant to install eight flexible fuel blender pumps at two locations

Michigan
    Zeeland Fuel Services, LLC – $500,000 grant to install seven flexible fuel dispensers, several underground biofuel storage tanks and associated infrastructure at a new fuel station that will sell ethanol and biodiesel fuel

Utah
    CP Fuels, LLC – $500,000 grant to construct and install five flexible fuel pumps

USDA Rural Development also is funding several other types of renewable energy and energy efficiency projects through the REAP program. For example, Kyle Van Dyke has been selected to receive a grant to help replace a conventional heating system for his Edgerton, Minn.-based business with a geothermal system that is expected to reduce annual energy costs by nearly $3,900. Ken's Greenhouses, Inc., Kalamazoo, Mich., has been selected to receive a grant to install energy efficient greenhouse curtains. With its grant award, Wildflower Farms, Inc. in Clearwater, Neb., expects to save 406.8 million BTUs annually by converting a diesel irrigation motor to an electric motor.



Iowa Corn Future of Agriculture Scholarships Available

The Iowa Corn Growers Association (ICGA) and Iowa Corn Promotion Board (ICPB) are excited to again offer the Iowa Corn Future of Agriculture scholarships to aid in the development of future talent for the Iowa agriculture industry.   This year Iowa Corn will award 10 scholarships to undergraduate and graduate students who are pursuing a degree in the 2012-13 school year.

“Iowa Corn understands that to remain successful as an industry, we must develop a strong group of agricultural experts who are entering the industry – both producers and agribusiness professionals,” said Bob Hemesath, a farmer from Calmar and chair of the Iowa Corn committee that oversees the scholarship program.  “This scholarship program is an important component of developing youth in agriculture and to the future of the agriculture industry in Iowa.”

The Iowa Corn Future of Agriculture Scholarship program will award five $500 first-year scholarships and five $500 upperclassman scholarships for individuals who are pursuing a degree in agriculture or an agriculture related field.  Applicants also must either be a member of ICGA or a dependent of a member.

First-year scholarship applicants must be entering their first undergraduate year at an accredited junior college, college or university.  Upperclassman scholarship applicants must be entering at least their second year at an accredited junior college or university.

Scholarship applications are available online at www.iowacorn.org/scholarship or by requesting one via email at corninfo@iowacorn.org.   Applications must be postmarked by Friday, February 3, 2012. 



NOPA October Soybean Crush 141.3

The National Oilseed Processors Association (NOPA) issued the following monthly soybean crushings and processing data for the month of October:  Members reported crushing 141.1 million bushels of soybeans in October, 2011, compaired to 110.3 million bushels in September 2011 and 151.8 million bushels in October, 2010.  Soybean oil stocks sit at 1.87 billion pounds for October 2011, which compares to 1.95 billion pounds in September 2011 and 2.82 billion pounds in October 2010.  October soybean meal yield averaged 47.64 pounds of soybean meal per bushel for October 2011.  It was 47.86 in the previous month and 47.40 in the same month one year ago.  Soybean oil yield for October 2011 averaged 11.56 pounds per bushel, slightly lower than the previous month's 11.70, however slightly higher than 11.45 in October 2010.  Iowa plants reported 33,058,000 bushels crushed for the month and stocks of soybean oil at 736,055,000 pounds, both of which were slightly above the previous month and slightly below the year ago figure. 



Agrium to Expand Potash Capacity

Agrium's board has signed off on a long-planned $1.5 billion project to expand potash production capacity by about 50 percent, aiming at capitalizing on demand for the crop nutrient.

Calgary, Alberta-based Agrium said on Wednesday the expansion of its operations at Vanscoy in the potash-rich Western Canadian province of Saskatchewan will cost less and take less time than building a potash mine from scratch.

"Our brownfield potash expansion will ultimately be much quicker to bring on, and significantly less expensive to develop, than any greenfield project that is under consideration," Chief Executive Mike Wilson said in a statement.

Agrium, a fertilizer producer as well as the largest farm products retailer in North America, also said it is quadrupling its semi-annual dividend to 22.5 cents a share from 5.5 cents a share.

"The increase in our dividend is a result of the continued growth in stable earnings from our retail business and the strength in our wholesale earnings profile and outlook," Wilson said.

The company said the mine expansion will boost its potash output capacity to about 3 million tonnes a year at a cost of about $1,500 a tonne.



Senators Send Letter Requesting Action on H.R. 872
(from the National Corn Growers Assoc.)

After efforts to pass the Reducing Regulatory Burdens Act of 2011, H.R. 872, failed in the Senate earlier this fall, a bipartisan group of Senators sent a letter to Majority Leader Harry Reid (D-NV) and Minority Leader Mitch McConnell (R-KY) asking for full consideration on the Senate floor before the end of the year. The legislation previously passed the House of Representatives in March and passed the Senate Agriculture Committee in June.

"We are aware that efforts had been made to come into a bipartisan resolution before these new permitting requirements went into effect," the letter stated. "However, we believe there is still an opportunity to resolve this matter in a way that will protect the environment while avoiding undue costs on rural communities and municipalities nationwide. Thus, it is our sincere hope that you will allot floor time for the Senate to have a full, open debate on this matter."

The legislation would clarify that National Pollutant Discharge Elimination System (NPDES) Permits are not required when applying pesticides according to their EPA-approved label. While the court ordered implementation deadline for the NPDES permitting program was October 31, the EPA announced they will not begin enforcing the permits until January 2012.

Under a federal court ruling in 2009, certain pesticide applicators would have to apply for an NPDES permit if the chemical reaches a body of water, which could include ditches and culverts. The new requirements will expose farmers to potential citizen action suits for routine pesticide applications that have already been deemed safe by the EPA. NCGA also signed onto a coalition letter with 38 other agriculture organizations urging the Senate for swift action.



Biodiesel Industry Urges Congress to Extend Tax Incentive

Representatives of the U.S. biodiesel industry urged Congress at a Senate hearing Wednesday to pass a seamless extension of the biodiesel tax incentive to avoid putting thousands of jobs at risk.

"Like the rest of the industry, RBF has seen a tremendous increase in demand for its product during 2011. We are running our facility harder than ever," Paul Soanes, president and CEO of Texas-based Renewable Biofuels, Inc. (RBF), said in testimony before the Senate Finance Committee at a hearing on renewable energy incentives. "But stable, long-term federal incentives are necessary for this industry to continue to grow."

Soanes emphasized the turnaround his company has seen with the reinstatement of the tax incentive after it was allowed to expire in 2010. RBF has increased production at its plant in Port Neches, Texas, from 9 million gallons in 2010 to more than 62 million gallons this year, hiring new employees and investing in capital improvements.

Similar stories are taking place across the country as the biodiesel industry recovers from last year's slump, when production plummeted, dozens of plants closed, and thousands of people lost jobs after the tax incentive lapsed. With the incentive's reinstatement this year, the industry has set a new production record of more than 802 million gallons through October. That is more than double last year's volume of about 315 million gallons.

The increased production will support more than 31,000 jobs this year while generating at least $3 billion in GDP and $628 million in federal, state and local tax revenues, according to a recent economic study conducted by Cardno ENTRIX, an international economics consulting firm.

"Our industry's numbers speak for themselves. We're on track to nearly triple our production from last year, and that translates directly into jobs and productivity," said Anne Steckel, vice president of federal affairs at the National Biodiesel Board (NBB). "This tax incentive is a job creator, and Congress will be putting jobs in jeopardy if it adjourns without passing an extension."

The $1-per-gallon biodiesel tax credit is slated to expire on Dec. 31. Bipartisan legislation has been introduced in the House and Senate to extend it for three years. Wednesday's hearing on alternative energy tax incentives was held by the Senate Finance Committee's Subcommittee on Energy, Natural Resources, and Infrastructure.



NCBA Hosts Hands-On Education at Annual Convention

The National Cattlemen’s Beef Association (NCBA) will host the 19th annual Cattlemen’s College sponsored by Pfizer Animal Health on Wed., Feb. 1, 2012 in Nashville, Tenn., in conjunction with the 2012 Cattle Industry Convention and NCBA Trade Show. In addition, events at the Stockmanship and Stewardship Demonstration Area will be featured throughout the week for all convention participants.

The annual educational events focus on progressive ranching practices and this year will touch on a number of issues, including reproductive technology, beef safety strategies and value-added management practices. CattleFax Market Analyst Lance Zimmerman said the addition of value-added management practices will allow producers to be more profitable.

“There is more value today in producing higher quality cattle than ever before,” Zimmerman said. “Whether it’s a feedlot order buyer or a stocker operator looking for calves to put into their operation, they’re going to be placing more importance on value-added management traits going forward. The long-term trend we’ve seen over the last five to ten years of vertical coordination is only going to become stronger as we move into 2012 and beyond.”

Whether you’ve been to Cattlemen’s College 18 times or if you’re planning to attend each featured event at the Stockmanship and Stewardship Demonstration Area, the hands-on industry information that will be provided at both venues will be an asset to your operation. To register for the events, or for more information, visit NCBA’s website at www.beefusa.org, or contact Grace Webb, Manager of Producer Education at gwebb@beef.org.



Rain Sparse in S. Brazil

Rains forecast for Brazil's main soy belt should alleviate concerns that a few weeks of dry weather might turn into a widespread drought and hurt the world's second largest soy crop.

But fields in the No. 3 growing state Rio Grande do Sul, which is about to finish planting in the coming days, will likely continue dry for a couple weeks, local forecasters said. And the southernmost state has a history of prolonged droughts.

Most of Brazil's soy belt finished November with below average rainfall and concerns over dry weather over the broader grain crop has been supporting futures prices in Chicago.

Soy farms in the soy-rich center-west states will see fresh rains in the coming days, however, local independent meteorologists Somar said on Wednesday.

And Parana, the No. 2 soybean growing state, got some refreshing rains last week which will help it bide the time till new moisture reaches the region. It is located in the south, closer to Rio Grande do Sul.

Drew Lerner at World Weather Inc said, "Favorable soil moisture is still being rated in much of Brazil."

Although it is still early and no losses have been suggested for Rio Grande do Sul, producers will be watching forecasts closely for the next sign of rains.



Cargill Cautions on Biotech Seed Sales

Distributing biotech seeds to American farmers before they are approved in major grain export markets is not good for U.S. agriculture, an executive with agribusiness giant Cargill Inc said on Tuesday.

"We do not support the commercialization of GM traits ahead of major market approvals," Randal Giroux, vice president of food safety for Cargill, told the members of the National Grain and Feed Association, the largest U.S. grain group, at a meeting.

"We don't think it's good for U.S. agriculture. We think that we should wait for the commercialization of these traits until we have major market approvals," Giroux said.

Cargill and other U.S. processors and exporters became hypersensitive to issues related to GMO corn after a variety that was not approved for food use -- known as Starlink -- was discovered in a U.S. shipment to Japan in 2000. Sales to the biggest U.S. customers at the time, Japan and South Korea, dried up overnight.

The subsequent tracing, sorting, testing, separating and certifying of GMO cost the industry millions of dollars.

It can take just one kernel of corn not approved for use in a given market to contaminate an entire grain shipment, thus preventing foreign buyers from unloading the vessel.

Restrictions on GMO grains in key markets such as the European Union, as well as among domestic and foreign food processors with standards for "organic" and other non-GMO foods, keep the dangers of mixing grains at the forefront for grain handlers.

Early commercialization of biotech seeds -- when acceptance of the grains has not been cleared in markets like the EU, for example -- has been hotly debated this harvest season when the three top U.S. grain handlers -- Cargill, Archer Daniels Midland and Bunge -- said they were either restricting or not accepting a biotech corn variety not approved in major export markets, like the EU or China.

The discussions have centered on Agrisure Viptera, a biotech corn variety developed for its resistance to insects by Syngenta that was planted in the U.S. this spring before it was approved in major export markets.

Syngenta has said the variety has been approved for shipment to several major corn export destinations, including Australia, Brazil, Canada, Japan, Mexico, New Zealand, the Philippines and Taiwan.

China, which recently returned as a buyer of corn and which is expected to import some 3 million tonnes this marketing year, has yet to approve the variety. Syngenta expects approval from China by early 2012 and from the EU by the first half of 2013.

"We have to recognize that when those major markets have not approved it, the threshold is zero," Giroux told the group of grain handlers. "We have to make sure that we are seen as a credible and consistent supplier of agricultural products."

"It's not a decision we should make alone, it's something we should be working with the technology companies on, trade associations," Giroux said.