Tuesday February 14 Ag News

Northeast Nebraska and Northern Corn Belt See Fraction of Normal Precipitation
Al Dutcher, UNL Extension State Climatologist

With spring planting around the corner, it’s time to analyze the impact of recent precipitation events on soil moisture recharge and whether drought concerns are warranted for the northern Corn Belt. The early February snow brought valuable moisture to the southern two-thirds of the state, but little benefit to the driest region, northeastern Nebraska.

Most of south central and southeastern Nebraska received 1.50-2.00 inches of liquid equivalent moisture from the February 3-4 event, with southwestern Nebraska receiving 0.74-1.25 inches. Most of this moisture fell on soils with little, if any, frost. The lack of frost and high temperatures in the upper 20s to upper 30s promoted a slow melt, allowing thirsty soils to capture the moisture and reverse the dry pattern established since early December.

Unfortunately, northeastern Nebraska was on the extreme northern periphery of this system and saw liquid equivalent moisture totals in the trace to 0.50 inch range. This area has been on the southern flank of an area that has consistently experienced 25%-50% of normal moisture since October. The dry pattern actually began to develop in late August and was intensified by the lack of snowfall this winter.

Since October 1 much of southeast and south central Nebraska has received 4-5 inches of moisture, with areas in extreme south central and southeast Nebraska receiving 6-8 inches. Assuming that these precipitation events had a 70% effective infiltration rate, then soil moisture recharge should be about 3.5 inches, with about 5 inches in the wettest locations. Effective recharge across northeast Nebraska would be 1-2 inches using a 70% effective rate.

These recharge rates do not take into consideration the quantity of soil moisture at the end of the 2011 growing season. This is probably more relevant for irrigated acreage where late season water applications could have enhanced soil moisture if maturing crops didn’t fully extract the added moisture. More relevant is the accumulated precipitation departures since October 1 and whether this region will be susceptible to drought development or strengthening as the growing season progresses.

Accumulated moisture deficits since October 1 are running 1.5-3.0 inches over all of northeast Nebraska, with an area between Sioux City and West Point having deficits of 3.0-4.5 inches.  Under normal conditions this region would receive 5 inches of moisture from mid-February to the end of April. These deficits can be made up, but it will require an increase in the number and intensity of storm systems.

Using simple statistical analysis, the average likelihood of erasing 1-inch of accumulated deficit since October 1 is 38%. For a 2-inch deficit, the likelihood is 28%, and for a 3-inch deficit, it’s 20%. Conversely, there is a 36% chance that the deficits could increase another inch, a 19% chance they would increase 2 inches, and a 5% chance they would increase by 3 inches.

Moisture in the Great Plains
One of the major differences between this winter and last winter has been the absence of snowfall across the northern Great Plains. Storm systems have remained well to the south and north of the region. Last year most locations in North Dakota were approaching 50 inches of snow for the winter, while this year you would be hard pressed to find many locations that have received 12 inches so far this winter.

The disappointing snow totals across the northern Plains have definitely reduced the flood risk for the Missouri River basin. Unfortunately, the miserable snow season has extended westward to include most of the central Rocky and Sierra mountains. With 40% of the snow season yet remaining, there is time to benefit from late snow storm activity, but current streamflow estimates don’t paint a rosy outlook.

If normal moisture is received through the remainder of the winter, streamflow estimates for the Platte watershed indicate flows of less than 80% of normal. More concerning is that the average snowpack in the central Rockies is under 85%. When it drops below 85%, it may likely disappear before mid-June as it did in 2000, 2002, and 2006. This would increase the odds that heat and dryness would build eastward until the Monsoon season begins across the desert Southwest during the second half of July.

The next couple of months are critical for cutting into precipitation deficits that have accumulated since the end of the last growing season across the northern Plains. If there is below normal mountain snowpack and March storms don’t substantially cut into these moisture deficits, a drought alert will likely be issued for northeastern Nebraska by early April.



Hassebrook Launches Campaign for U.S. Senate

Today, Chuck Hassebrook, Executive Director of the Center for Rural Affairs and member of the University of Nebraska’s Board of Regents, announced his intention to run for Nebraska’s open United States Senate seat. Joined by more than 100 family, friends and supporters, Hassebrook made the announcement from Main St. in Lyons, Nebraska, his hometown.

In announcing his campaign, Hassebrook said, “I am running for United States Senate because it is time to make government work again. It is time to make government work for ordinary Nebraska families and create a better future for our children and our grandchildren.”

In introducing Hassebrook, Lyons Mayor Andy Fuston noted that Hassebrook is a strong public servant, committed to family and community, and is exactly the kind of person we need in Washington. Fuston, a Republican, endorsed Hassebrook’s candidacy.

Chuck Hassebrook is a native of Platte Center, Nebraska, where his family has farmed for more than a century. He attended Central Community College in Columbus and graduated from the University of Nebraska Lincoln, where his oldest son Anton is now studying engineering. He has lived in Lyons with his wife Kate and sons Anton and Peter, for nearly 13 years. In Lyons, he has coached youth baseball and been active in community development and his church.

Hassebrook has spent 35 years on the staff of the Center for Rural Affairs of Lyons -- leading the way for the last 15 years.  The Center is a nationally recognized research, advocacy and rural development organization that supports small communities, small business, soil and water conservation and family farming and ranching.  Hassebrook’s efforts have won changes in federal tax, farm, conservation and rural development policy.

Hassebrook has served for more than 17 years on the University of Nebraska’s Board of Regents, including two terms as Chair.  On the Board of Regents, he has championed initiatives to make college affordable to families of modest means, emphasize quality teaching, and improve research and extension programs supporting rural development and family agriculture.   

He currently serves on the Board of the USDA North Central Region Rural Development Center.  He previously served on the Nebraska Rural Development Commission, US Department of Agriculture National Commission on Small Farms, USDA Agricultural Science and Technology Review Board and the Board of Bread for the World, a Christian anti-hunger organization based in Washington, and has been inducted into the Nebraska Hall of Agricultural Achievement.



Invitation to Growers Informational Meeting

AgriGuardian and Agri-Gro are pleased  to sponsor a day-long workshop on  the importance  of  microbiology  and  micronutrients  as  an  important  part  of  plant health and crop performance. This workshop presents topics by experts  in their respective  fields  and  represents  decades  of  experience  helping  growers  to improve production, profits and sustainability of the soil. Registration  for  the workshops will begin at 8:30 a.m. and Workshops will begin at 9:00 a.m. and will end at approximately 4:00 p.m.  Topics include Soil Microbial Activity and Diversity Relationship to Crop Performance, Cultural Practices Influence on Soil Health and Plant Nutrition, Correlating Micronutrient Practices and Nutrient Levels with Crop Performance and Plant Health. and High Yield Corn and Soybean Production using a Complete Nutrition Program Including Micronutrients and Foliar Feeding.  Lunch  is  also  provided  free  of  charge.  However,  registration  is required. Call 706-549-8424 or 1-877-247-4476.  Walk-ins will be accepted only if space is available, and lunch will be on your own.  Dates and locaitons include:
February 23, 2012 - Thursday, Nielsen Community Center, West Point, NE 
February 24, 2012 – Friday, Clay County Regional Events Center, Spencer, IA 
February 25, 2012 - Saturday,  Opera House at Fort Museum, Fort Dodge, IA



Estate Planning Meeting This Week

The Boyd Holt Cattlemen will be hosting a meeting highlighting the importance of estate planning. The meeting is open to the public and will be held at the Blarney Stone in O’Neill, Nebraska on February 18th. This meeting will begin with a social at 6:00 p.m. with the meal and meeting to follow.

Andrew Hoffman of Krotter Hoffman will be the main speaker for the meeting. “Estate planning is not only important for cattlemen but also for others in the community and we are excited to have the opportunity to listen to Andrew’s personal stories and expertise,” states Gordon Dvorak, Boyd Holt Cattlemen President.

Besides being involved with the community, Andrew practices family law, criminal defense, civil litigation, real estate, estate planning, business planning and other transactional issues in the O’Neill and Atkinson offices.

To learn more about the meeting or to RSVP call Gordon Dvorak at 402.841.2894.



CHS, Consumer Supply Form Livestock Feed Venture

CHS Inc., St. Paul, Minn., and Iowa-based Consumers Supply Distributing Co., announced they will form a livestock and pet food manufacturing and wholesale distribution company.

The new entity will be called Consumers Supply Distributing, LLC, and will be based at Sioux City, Iowa. It will offer the CHS Payback livestock and Equis horse feed brands, along with the broad range of livestock and companion animal products currently carried by Consumers Supply Distributing, including its Running Horse brand equine feed and Ranchers Choice and Country Vet brand pet foods and treats.

"This is an outstanding opportunity to combine two strong, high quality feed organizations to meet the livestock and companion animal nutrition needs of our current customers, as well as position this business for growth," said Rod Paulson, general manager, CHS Nutrition.

David Patee, owner and operator of Consumers Supply Distributing, said partnering with CHS "allows us to expand our business with an established feed company with a growing presence throughout the central and northwest United States."

Patee will serve as the new limited liability company's manager.

Paulson said the new entity allows CHS to enter the pet food manufacturing sector and to gain greater distribution efficiencies and economies of scale. CHS Nutrition currently operates 11 feed manufacturing plants -- along with a premix plant in Shenandoah, Iowa, and a liquid feed plant Marshall, Minn. -- which serve the ration needs of all livestock species through its Payback and Equis brands. It also provides feed formulation and livestock leasing and risk management services. CHS will retain feed manufacturing and distribution operations independent of the new entity.

Consumers Supply Co., a wholesale distributor of agricultural and animal nutrition products since 1956, serves the livestock industry with feed ingredients, amino acids, pharmaceuticals, premixes and specialty products. It operates out of more than 310,000 square feet of storage space at Sioux City and Cedar Rapids, Iowa. It also operates a fleet of 53 semi tractors and 100 vans that provide weekly delivery service to 1,000 customers, including local cooperatives, feed manufacturers, farm store chains and large integrators.

CHS Nutrition, which will remain separate from the newly formed entity, will pay cash for its 50 percent ownership of the LLC. Consumers Supply Distributing will contribute its assets at its two Iowa locations. The LLC will have a six-person board of directors, with three representatives from each of the owners.



New Course Helps Farm Women Manage Today, Tomorrow

Creating a transition plan to make sure a farm continues as a productive, agricultural business can be challenging. Farm women can learn how to plan a successful farm transition through a four-session course offered by Iowa State University Extension and Outreach and Farm Credit Services of America. "Managing for Today and Tomorrow" is a new Annie's Project course being piloted in Ames and Shenandoah. Both courses begin on Feb. 27, and continue through March 19.

Farm women will learn about business, estate, retirement and succession planning from ISU Extension and Outreach specialists and area professionals. Besides brief presentations, there will be discussions based on participant questions and follow-up activities for family members to complete at home.

"I know how hard it can be to talk about passing on the farm," said Tim Eggers, ISU Extension field agricultural economist. ''Managing for Today and Tomorrow' will teach women the terminology and tools to start that conversation or be active participants in it."

Annie's Project, an agricultural risk management education program for women, has successfully reached more than 7,000 farmers and ranchers in 26 states. "This new curricula emphasizes the role women play in helping transition farms from one generation to the next," said Madeline Schultz, ISU Extension Value Added Agriculture Program coordinator.

During four weekly, three-hour sessions, farm women will learn about succession, business, estate and retirement planning. "Managing for Today and Tomorrow will empower women to take ownership of the future of their farms and ranches, particularly as it deals with the human resource and legal aspects of transitioning," said Shultz.

Angie Loew, Farm Credit Services of America financial officer in Carroll, Iowa, is a member of the curriculum development team. "I've worked with farmers for 24 years, know their questions and have seen the need for transitioning information," Loew said. "Offering a curriculum that involves local professional educators in the program delivery will better position families as they begin transitioning their operations."

Managing for Today and Tomorrow meets from 6 to 9 p.m. on Feb. 27, March 5, March 12 and March 19. The two Iowa locations are 1) Iowa Western Community College Page/Fremont Center, 1001 W. Sheridan Ave, Shenandoah and 2) Iowa State University Campus, Ensminger Room, Kildee Hall, Ames.

The cost is $50 per person, which includes a 260-page workbook filled with fact sheets, exercises, and presentations. A light dinner will be served prior to class start time. Course size is limited, and pre-registration is due by Feb. 23.

For more information and to register, call Lani McKinney at the Value Added Agriculture Program on the Iowa State campus at 515-294-2136 or email her at lanim@iastate.edu. Or call the Page County Extension at 712-542-5171 or toll free at 877-596-7243 or e-mail Heidi Carter at heidic@iastate.edu. The course is limited to 20 women per site.

Managing for Today and Tomorrow is supported by the Beginning Farmer and Rancher Development Program of the National Institute of Food and Agriculture, USDA, Grant # 2011-49400-30584. More information can be found on the ANNIES website at www.extension.iastate.edu/annie.



President’s Budget Threatens to Tax Agriculture Out of Business
NCBA Calls Estate Tax Counterproductive to Obama’s Stated Goals

President Barack Obama Mon., Feb. 13, 2012, proposed a multi-trillion-dollar-budget. The president said the budget is designed to spur job creation and impose higher taxes on the rich. However, National Cattlemen’s Beef Association President J.D. Alexander said the president’s take on the estate tax threatens job creation and punishes the producers of food and fiber.

“President Obama has much to learn about the realities of small businesses and production agriculture. Most of these farm and ranch families are not wealthy. Instead, their value is tied up in the land they work and the equipment they use to provide a safe and affordable food supply for a growing population," said Alexander. "The President's war against the rich will negatively impact farmers and ranchers who are simply trying to feed their neighbors. Increasing land values and the rising costs of equipment drive up the value of farm and ranch estates. If allowed to continue, the estate tax will continue to break up farms and ranches across America and will make it much more difficult to meet the increasing demand for food around the world.”

The president's budget proposes an estate tax at a $3.5 million exemption level with a maximum tax rate of 45 percent. As a result of a last-minute fix passed through Congress in December 2010, the current estate tax exemption level is $5 million per individual and $10 million per couple with a maximum tax rate of 35 percent. Alexander said the president’s proposed fix is not a solution but rather a continuation of unnecessary and outdated tax burdens on farmers and ranchers.

“Farmers and ranchers are asset rich and cash poor. Land and machinery does not equate to cash unless it is sold. When families are forced to sell off property to pay for the estate tax, the land seldom remains in production," he said. "This outdated tax is escalating the depopulation of rural America.”

Alexander said people need to be aware that Obama’s budget is only a suggestion and the actual budget will be determined by Congress.

“The details are in Congress. We will be engaging members of Congress over the next several months to ensure a permanent fix to the estate tax is achieved,” Alexander said.



ASA Statement on President’s Budget Proposal for Fiscal Year 2013

President Barack Obama unveiled his budget for fiscal year 2013 yesterday; a proposal that includes a $32 billion reduction in agricultural spending. American Soybean Association (ASA) President Steve Wellman, a soybean farmer from Syracuse, Neb., issues the following statement on the president’s proposal:

“The president’s proposed agriculture budget reduces the deficit by $32 billion over 10 years. ASA has advocated, throughout the entire deficit reduction conversation, a shared responsibility for deficit reduction across all mandatory and discretionary spending programs, up to and including the elimination of Direct and Counter-Cyclical Payments as well as the Average Crop Revenue Election program as part of ASA’s 2011 Risk Management for America’s Farmers proposal.

“However, with the enormous amount of risk farmers are about to undertake by planting a new soybean crop, now is exactly the wrong time to reduce support for the federal crop insurance program. The proposal put forth in the president's budget would reduce support to farmers who purchase the highest levels of coverage—a backwards approach that discourages producers from purchasing enough coverage to meet their substantial risk management needs.

“ASA does applaud the president’s request to increase the 2013 funding level for the Agriculture and Food Research Initiative (AFRI) to $325 million—an investment targeting areas key to American scientific leadership, including nutrition and obesity reduction, food safety, sustainable bioenergy, global food security, and climate change.

“ASA welcomes the president's proposed increase for competitive agricultural research at USDA, as all soybean farmers recognize the challenges that growing world food needs present. Ag research is the key to meeting these needs, and the nation simply cannot sustain any further cuts to its agricultural research infrastructure if it is to address the needs of a global population that will grow to more than 9 billion people by 2050. We hope Congress will fund AFRI at the $325 million level proposed by the president.”



Commodity Classic Shatters Attendance Records

With more than two weeks before the 2012 Commodity Classic kicks off in Nashville, Tenn., the show has broken all registration records. Last year, total attendance set a record of 4,826 show participants. This year, registrations for the 17th annual event have already surpassed the 5,000 mark with two more weeks left until onsite registration opens.

“We are thrilled that more and more growers and industry professionals recognize the value of attending Commodity Classic,” said Commodity Classic co-chair Martin Barbre. “Agriculture is both an exciting and challenging way of life. Because Commodity Classic addresses farming from a grower’s perspective, attendees find they can take information they’ve gathered from the show and put what’s practical for their operations into the field.”

More farm families, first-time attendees and agribusiness representatives will be at Commodity Classic than ever before. To celebrate the record breaking attendance, Commodity Classic’s 5,000th registrant, Kirk Zinkievich from Medina, N.Y., received a complimentary registration. “I’m amazed how big the show has become,” said Zinkievich. “It just shows you the importance of agriculture today.”

To register for Commodity Classic, to be held March 1-3 in Nashville, visit www.commodityclassic.com .

Commodity Classic is presented annually by the National Corn Growers Association, American Soybean Association, National Association of Wheat Growers and National Sorghum Producers. The event offers a wide range of learning and networking opportunities for growers in the areas of production, policy, marketing, management and stewardship—as well as showcasing the latest in equipment, technology and innovation.



NCGA, Other Ag Organizations Urge New Farm Bill in 2012

As the Senate begins to prepare for farm bill hearings, the National Corn Growers Association signed a letter with more than 80 other agriculture groups urging Congress to pass a new bill this year.  The letter was sent to the chairs and ranking members of the Senate and House Ag Committees.

"The 2012 farm bill is among the most important pieces of legislation the U.S. Congress will consider this year," the letter stated.  "We ask you to reject calls for delay and aggressively act to ensure that a new, comprehensive farm bill is passed this year.  Farmers need a safety net that works more effectively, and they need access to tools that help them be good stewards of our natural resources."

The letter also stated that a temporary extension of current policy would create uncertainty without addressing important issues such as job creation hunger prevention resources.

NCGA, States Recommend Better Path to Emissions Reductions
The National Corn Growers Association, in conjunction with the Illinois Corn Growers Association and the Minnesota Corn Growers Association, has filed comments with the Environmental Protection Agency and the National Highway Traffic Safety Administration outlining several concerns with the proposed Corporate Average Fuel Economy standards.

"We are concerned that the proposed CAFE/GHG rule is inconsistent with the RFS2 regulation and the EISA requirement to use 36 billion gallons of renewable fuel in 2022 in several areas," the letter stated. "In other regulatory actions, EPA continues to express support for achieving the requirements of RFS2, yet there is no mention in the CAFE/GHG rule concerning the role of renewable alternative fuels in achieving the required GHG reductions."

Commending the agencies on the joint effort to improve fuel economy and greenhouse gas emissions at a national level, NCGA urges the agencies to address the concerns outlined through a concerted dialogue prior to finalizing the rule.

Specifically, the comments recommend modifying three areas in order to achieve a more balanced, technology-neutral approach to controlling greenhouse gas emissions while improving fuel economy.

First, the comments recommend allowing vehicle and fuel technologies to compete on a level playing field when trying to meet the goals outlined in the standards. As currently written, the rule would favor electric vehicle technology over renewable fuels.

Next, the comments recommend that the rule be rewritten to integrate the revised Renewable Fuel Standard (RFS2) promulgated by the EPA in response to the Energy Independence and Security Act (EISA) of 2007, which was written to simultaneously address both national energy security as well as greenhouse gas emissions concerns.

Finally, the comments suggest that the proposed rule should be amended to provide incentives for the production of flex fuel vehicles that are needed to consume the target amounts of renewable fuels outlined in the RFS2. To ensure that the new rule is consistent with the intent of the EISA, continuation of incentives to produce vehicles designed for high-blend biofuel consumption is necessary at the current time.



ACE says E15 could help ease rising gas prices

The American Coalition for Ethanol (ACE), a national advocacy association for the U.S. ethanol industry, today says E15 (a blend of 85% gasoline and 15% ethanol) would benefit consumers and that federal officials should immediately complete any work needed to allow marketers to offer the fuel for sale at stations across the country.  After years of testing by EPA and the Department of Energy, E15 was approved more than a year ago, as an option for cars and light trucks built in 2001 and later.

ACE Senior Vice President Ron Lamberty says national surveys indicate that gasoline prices are up about 45 cents a gallon compared to a year ago, while ethanol prices have dropped more than 30 cents in the same time frame. Current ethanol wholesale prices are about 80 cents less than gasoline.

“At today’s prices, 10% ethanol blends are already saving consumers 8 to 10 cents per gallon compared to unleaded gasoline. Nationally, that saves almost $30 million dollars a day,” Lamberty says. “E15 could offer even greater savings. Drivers with vehicles new enough to use E15 could be saving 12 to 15 cents a gallon by choosing the E15 blend, potentially cutting gasoline costs by an additional $10 million dollars each day.”

“Ethanol opponents continue to create new roadblocks, claiming to be “pro-consumer” and “pro free market,” while they do everything they can to keep E15 - a tested, approved, safe fuel - off of the market. That causes consumers to over-pay for gas and it is the opposite of a free market.” says Lamberty. “E15 is approved as an option. Retailers don’t have to add it to their product slate and consumers don’t have to buy it. Yet there is considerable effort to continue misleading and frightening consumers into supporting this idea of an auto fuel Nanny Slate that only benefits the oil industry and those who depend on Big Oil’s support,” according to Lamberty.

“ACE is urging federal officials and Congress to get behind efforts to open up E15 for public sale to all vehicles that are 2001 and newer as soon as possible. It’s time that we allow American consumers the option to support a cleaner fuel that helps cut down on imports of foreign oil and supports American jobs.  We think that the majority of Americans would be in favor of something this beneficial for consumers rather than supporting efforts that only go to increase profits for oil companies,” Lamberty said.



Bipartisan Group of US Senators Urge Science-Based Trade Standards

A bipartisan group of 31 United States senators, led by Sen. Chuck Grassley (R-Iowa, sent a letter to the Office of Management and Budget and the U.S. Department of Agriculture’s Animal and Plant Health Inspection Service urging the agencies to finalize a comprehensive rule for Bovine Spongiform Encephalopathy (BSE), which has been a work in progress since 2004. The senators said the lack of a comprehensive rule has harmed U.S. beef trade.

 “Non-tariff trade barriers limit our ability to sell beef to consumers in other countries,” the senators penned. “Beef producers need our trade negotiators to significantly reduce or eliminate non-tariff trade barriers by requiring our trading partners to make science-based decisions regarding U.S. beef. By the same logic, it is also important for our government to take the necessary steps to properly address risk related to BSE by adopting a comprehensive rule.”

Citing an example of trade relations between the United States and Mexico, the senators said non-science based standards have limited the United States’ ability to sell beef in Mexico. While the International Organization for Animal Health (OIE) has recognized both Mexico and the United States as controlled risk countries, meaning both countries have effective BSE risk mitigation measures in place, since 2004, Mexico has not allowed the importation of U.S. cattle over 30 months of age. The senators said this restriction has resulted in U.S. beef producers losing $100 million annually.

National Cattlemen’s Beef Association (NCBA) Associate Director of Legislative Affairs Kent Bacus said cattlemen appreciate the letter because having a comprehensive BSE rule in place will show the United States is willing to talk the talk and walk the walk with regard to following OIE standards.

 “The United States should not continue demanding our trading partners to follow OIE standards when we are not here at home. The comprehensive BSE rule will change that and will solidify the United States’ commitment to basing our trade relationships on internationally-recognized, science-based standards,” Bacus said. “This rule has been a long time coming, and we stand ready to work with members of Congress and the administration to finalize this rule because it will give trade negotiators from the United States a stronger position to press other nations to follow OIE standards.”



Advanced Ethanol Leaders Urge Tax Extensions in Farm Bill

The Advanced Ethanol Council (AEC) today urged Senate Ag Committee Chair Debbie Stabenow (D-MI) and Ranking Member Pat Roberts (R-KS) to include two key tax extensions for advanced and cellulosic ethanol producers.

In a letter to the committee leaders, AEC Executive Director Brooke Coleman wrote, “The Cellulosic Biofuels Producer Tax Credit (PTC) -- created in the 2008 Farm Bill -- and the Special Depreciation Allowance for Cellulosic Biofuel Plant Property are vital to the ongoing development of the domestic advanced ethanol industry.  … Several billion dollars have been invested in advanced biofuels development with the expectation that Congress will stay the course with regard to its commitment to the industry.  A tax increase on advanced biofuels at this time would curtail investment and undercut an industry just starting to close deals and break ground on first commercial plants.”

Beyond the tax extension, Coleman also highlighted four areas in which the Farm Bill could help accelerate the commercialization of advanced and cellulosic ethanol technologies.  These areas include:
• Extend the U.S. Department of Agriculture (USDA) Loan Guarantee program for biorefinery projects, but improve critical provisions of the program to more effectively facilitate participation by lending institutions.
• Support USDA’s efforts to build out ethanol refueling infrastructure via the Rural Energy for America Program to allow ethanol to compete in the market based on price.  This will facilitate market access that is critical to the ongoing development and deployment of advanced ethanol fuels.
• Reform the Biomass Crop Assistance Program to increase cost effectiveness and better encourage and reduce the risk of energy crop production for the advanced biofuel sector, including efforts to preserve the environmental benefits of land coming out of conservation programs by incenting sustainable energy crop production.
• Modify the Repowering Assistance program to help existing bio-refining operations deploy advanced ethanol technologies and feedstock utilization.

“We are aware that the funding available for new Farm Bill will be reduced significantly.  We look forward to thinking creatively with you about comprehensive solutions that reduce cost but continue to provide meaningful value to an emerging advanced ethanol industry.  We appreciate your ongoing support for the advanced biofuels industry and look forward to further discussion of this important matter,” Coleman concluded.



More Stable Fertilizer Prices

Retail fertilizer prices tracked by DTN for the first week of February 2012 continue to remain fairly fixed. This is the fourth week in a row fertilizer prices have not moved any significant amount.  All eight major fertilizers were lower compared to the first week of January; however, these drops were fairly small. DAP had an average price of $659/ton, MAP $712/ton, potash $658/ton and urea was at $554/ton.  Starter fertilizer, 10-34-0, had an average price of $821/ton, anhydrous $783/ton, UAN28 $386/ton and UAN32 $434/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.60/lb.N, anhydrous $0.48/lb.N, UAN28 $0.69/lb.N and UAN32 $0.68/lb.N.

Just three of the eight major fertilizers are still showing double-digit increases in price compared to one year earlier. Leading the way higher is 10-34-0. The starter fertilizer skyrocketed in price last year but has fallen back some in recent months. It is now 24% higher compared to the first week of February 2011.  Potash has jumped 14% higher while urea has increased 13% from a year ago.  Four fertilizers have seen just slight price increases compared to a year earlier. UAN28 has now climbed 9% higher, UAN32 has increased 8%, anhydrous is up 6% and MAP has risen 2% compared to last year.

The remaining fertilizer, DAP, is now actually 3% lower compared to one year ago.



January NOPA Crush  Down From Dec

National Oilseed Processors Association reports soybean crush was 142.813 million bushels for January, down 2.607 million bushels from the previous month and down 1.822 million bushels from Jan 2011.  Soymeal yield was 47.95 pounds per bushel and soyoil yield was 11.44 pounds per bushel.  Soyoil production was 1.6 billion pounds, roughly unchanged from a year ago and the previous month.  Soyoil stocks stood at 2 billion pounds, up slightly from the previous month and down a billion pounds from a year ago.  Soybean meal exports (585,600 short tons) were down slightly for the month (608,000 st) but off significantly from a year ago (834,000 st).  Iowa soybean crush was 31.27 million bushels, down slightly from the 32.6 million bushels in the previous month and the previous year.  



Improving Antibiotic Residues in Dairy Cull Cows and Veal

The beef checkoff recently hosted Michael Apley, DVM, clinical pharmacologist and food animal production medicine specialist at Kansas State University, to address a group of dairy and veal producers about antibiotic resistance, residues and what role a veterinarian plays on today’s farm.  Apley says, “Well there’s two big real topics: one of them is going to be antibiotic resistance and what’s being expressed as concerns especially in the most recent cephalosporin extra label drug use prohibition order from the FDA/CVM and then a second is the residue issues in cull dairy cows and veal calves and what we need to do as an industry to make those go away.”

Apley says the dairy industry is unique, but that all producers – dairy, veal and beef – need to adhere to two simple rules. He says, “Well one of the unique things about dairy cattle is a lot of the treatment that occurs in a sick dairy cow occurs immediately prior to her being culled from the herd as opposed to beef and then also the immediacy of collecting milk. So there’s some immediacy issues that really affect dairy that don’t the others. And the residue issue is one in my opinion of making sure veterinarians are involved in the treatment decisions and the actual treatments and that they are overseeing the adherence to the regulations because avoiding residues is as simple as adhering to the withdraw time and having your records.”

Apley says in today’s environment producers need a healthy partnership with their veterinarian. This can only lead to reduced antibiotic residues which equates to a better beef product for consumers.  Apley says, “The first stop is your veterinarian and challenge your veterinarian and what they can do for you and what they know and if you’re not satisfied with the depth of knowledge they’re displaying on it, sometimes you need to look for one that’s really dedicated to the production systems you’re working in. But the number one step if they do anything after hearing this is to talk to your veterinarian and ask him what’s going on with cephalosporins, what’s going on with the residues, are we doing everything we can. And the first question on that is do we have written protocols for how we’re going to use drugs in this herd? And have we agreed on them and have we trained everyone – do we routinely train on it? if the answer to that’s no, the big first step is right there because 70 percent of the residues in cull dairy cows that happened between 2005 and 2008 had no veterinarian involvement. That’s the big first step.”



CWT Assists with 10.7 Million Pounds of Butter and Cheese Export Sales

Cooperatives Working Together (CWT) has accepted 36 requests for export assistance from Bongards, Dairy Farmers of America, Darigold, Maryland & Virginia Milk Producers Cooperative, Michigan Milk Producers Association, Upstate-Niagara subsidiary O-AT-KA and United Dairymen of Arizona to sell a total of 2,829 metric tons (6.237 million pounds) of Cheddar and Monterey Jack cheese and 2,043 metric tons (4.504 million pounds) of butter to customers in Asia, Central America, the Middle East and North Africa. The product will be delivered February through June 2012.

In 2012, CWT has assisted member cooperatives in making export sales of Cheddar, Monterey Jack and Gouda cheese totaling 23.2 million pounds and butter totaling 18.9 million pounds to 16 countries on four continents.

Assisting CWT members through the Export Assistance program positively impacts producer milk prices in the short-term by reducing inventories that overhang the market and depress cheese and butter prices. In the long-term, CWT’s Export Assistance program helps member cooperatives gain and maintain market share, thus expanding the demand for U.S. dairy products and the farm milk that produces them.

CWT will pay export bonuses to the bidders only when delivery of the product is verified by the submission of the required documentation.



Small Tractor Sales Up in January, Large Equip. Down

The Association of Equipment Manufacturers' monthly "Flash Report" says the sales of all tractors in the U.S. for January 2012 were up 4% compared to the same month last year.  For the month, two-wheel-drive smaller tractor (under 40 HP) were up 8% from last year, and 40 & under 100 HP were up 5%. Sales of two-wheel-drive 100+ HP were up 0.8% from last year, and four-wheel-drive tractors were down 30% for the month.  Combine sales were down 50% for the month, totaling 445 units.

So far in the year 2012, a total of 9,318 tractors were sold, which compares to 9,007 sold through January 2011.



NCC Survey Suggests U.S. Producers to Plant 13.63 Million Acres of Upland/ELS Cotton in 2012

Upland cotton intentions are 13.34 million acres, down 7.5 percent from 2011, while extra-long staple (ELS) intentions of 287,000 acres represent a 6.4 percent decline. The survey results were announced over the weekend at the National Cotton Council's 2012 Annual Meeting being held February 10-12 in Fort Worth.

With assumed above-average abandonment in Texas and Oklahoma and all other states set at historical averages, total upland and ELS harvested area would be 10.88 million acres, which is 20.3 percent below planted area. Applying state-level yield assumptions to projected harvested acres generates a cotton crop of 18.30 million bales, compared with 2011's total production of 15.67 million bales.

NCC Vice President Gary Adams said that, "Final production will be very dependent on weather developments, particularly in the southwestern U.S. If conditions worsen, we could see the U.S. crop be two million bales lower than early-season expectations."

The NCC survey, mailed in mid-December 2011 to producers across the 17-state Cotton Belt, asked for their intended 2012 cotton acreage as well as for their intended plantings of other crops in 2012. Survey responses were collected through mid-January. Adams noted that, "The expected drop in cotton area is consistent with current market signals. Since 2011, cotton prices have weakened relative to competing crop such as corn, soybeans and peanuts."



MasterCop Fungicide/Bactericide Approved by EPA

MasterCop fungicide/bactericide, from MANA Crop Protection, has received approval by the U.S. Environmental Protection Agency (EPA) for its new copper complex formulation of copper sulfate pentahydrate, delivering superior bioactivity for the control of bacterial and fungal diseases on citrus, vegetables, tree nuts, small fruits, vines and field crops.

Using MANA Crop Protection proprietary technology, new MasterCop touts a state of the art formulation which allows for targeted rates of copper to be delivered efficiently and effectively for broad spectrum disease management. With BioRetain technology as a key component of its formulation, MasterCop's penetration into the plant cuticle improves performance per pound of active ingredient. This novel uptake system also enhances retention and residual activity while providing superior safety to the crop.

"As the premier copper solution for bacterial and fungal diseases, MasterCop delivers all the proven performance features that growers want from copper-based inputs, but with improved bioactivity, less stringent management and superior environmental qualities," says Keith Miller, product leaders with MANA Crop Protection. "As a solution-based concentrate, MasterCop requires less attention to handling and storage, with no mixing or shaking of jugs."

Miller continues in saying that MasterCop's unique formulation prohibits copper within its solution from settling, which is problematic for most traditional delivery systems in this input category. "This extends the shelf life of MasterCop - with inventory accessible for use beyond just one season," he says. "This outstanding formulation property also reduces nozzle wear and provides more accurate spray coverage at time of application, which growers and applicators will immediately value upon first time use."

MasterCop provides locally systemic and preventive methods for disease control, which is one of the critical benefits of copper complex inputs on high-value crops.

MANA Crop Protection recommends MasterCop be applied at one pint per acre for annual crops and two pints per acre for permanent crops. Higher application rates are allowed for bacterial and fungal disease control when used according to label guidelines for selective crops.

Specific to industry concerns about soil-loading from copper-based inputs used on high-value crop acres, MasterCop's efficient use rate significantly reduces the impact on soil-loading versus traditional copper products. The Organic Materials Review Institute (OMRI) is currently evaluating MasterCop regarding formulation qualities and benefits specific to this topic. MANA Crop Protection anticipates OMRI certification in 2013.

"Copper continues to play a critical role in controlling fungal and bacterial diseases - especially as growers become increasingly worried about commonly used compounds having resistance issues," Miller says.

"Growers who rely on MasterCop this year will glean the disease protection they've come to expect from copper inputs, but with the added benefits of greater efficacy, easier handling and an improved environmental protect profile."

MasterCop has received federal registration approval from the EPA. State label approval currently exists for Alabama, Arkansas, Arizona, Colorado, Delaware, Florida, Hawaii, Idaho, Indiana, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, Missouri, Mississippi, North Carolina, North Dakota, New Jersey, New Mexico, Nevada, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Utah, Virginia, West Virginia and Wisconsin. Remaining state registrations are submitted and are expected within the 2012.