Wednesday February 27 Ag News

New Grand Ocean International opens for business in Omaha

New Grand Ocean International, a Chinese-owned agribusiness based in Thailand with operations throughout eastern Asia, cut the ribbon today on its newest—and only North American— facility in Omaha.  Joining New Grand Ocean Owner Qian Chen and Vice President Harry Hou were Governor Dave Heineman and several state, local and business representatives.

“During my trade mission to China last year, I had the opportunity to speak with Chinese Vice Premier Wang about opportunities for greater value-added exports to China, fueled in part by foreign investments,” said Gov. Heineman. “New Grand Ocean’s location in Nebraska helps with that effort. Asia’s growing population needs more food and value-added products, and it makes perfect sense for us to use our world-leading productivity to process more of those products here before shipping them abroad.”

The family-owned company is a large wholesale distributor of beef, pork and chicken products, earning $40-45 million in annual sales. The company, which expects to rely heavily on Nebraska suppliers, will immediately hire two employees. Phase two plans call for construction of a processing plant with the potential for hiring 15 to 20 people.

“We truly hope to become a great bridge between Nebraska agriculture and Asia market. We also hope to establish a long stable and constructive partnership with local business. And we will try our best to give back to the community and create more job opportunities for Nebraska,” said Mr. Chen.

“The Chamber is committed to increasing global business in the Greater Omaha area. We have made significant efforts to promote bilateral trade and investment between Omaha and Asian nations. We welcome New Grand Ocean International to the Omaha business community,” said David Brown, Greater Omaha Chamber president and CEO.

It is the latest of a number of international companies locating in the state. During the past four years, Nebraska recorded 29 international investments from 12 countries, totaling more than $4.17 billion and creating approximately 1,473 jobs.

In 2012, KPMG and the Tax Foundation ranked Nebraska as the number one state in the U.S. for newly locating corporate headquarters. Nebraska ranked second in the U.S. for manufacturing in KPMG and the Tax Foundations’ State Business Tax Climate Index.



3rd Annual Best Burger Contest Launches March 1st

Nebraska’s farmers and ranchers along with the Nebraska Beef Council have announced the launch of the 3rd annual Nebraska’s Best Burger contest. Nominations for the award will be accepted March 1 through March 31, 2013.

The public is encouraged to nominate their favorite burger by visiting www.nebeef.org and completing the online form or visiting the Nebraska Beef Council Facebook Page. The top prize last year went to Stella’s Bar & Grill of Bellevue for their Stella’s Cheese Burger.

“Hamburgers are a staple menu item in many restaurants throughout the state” said Adam Wegner, Director of Marketing for the Nebraska Beef Council. “This contest not only recognizes restaurants that serve great burgers, it also shows the passion Nebraskan’s have for great tasting, quality beef.”

Changes to the contest this year include the addition of the Consumer’s Choice award which will be presented to the restaurant receiving the most overall electronic votes. The top 5 nominated burgers will then be evaluated by a panel of judges to determine the overall Best Burger winner. While any restaurant can win the new Consumer’s Choice award, past grand prize winners are not eligible for the Best Burger award meaning a new winner will be announced the end of April. The Cellar Bar & Grill in Kearney, NE won the inaugural award in 2011.

For a full list of rules, contest details or to submit a nomination, visit www.nebeef.org or contact the Nebraska Beef Council at 308-236-7551.



Differentiating Forage Rye and Ryegrass
Bruce Anderson, UNL Extension Forage Specialist

What comes to mind when you hear "forage rye?" What about "ryegrass?" These words can describe half a dozen, very different types of forage, which can lead to some confusion when selecting seed.

"Rye" typically refers to the cereal or small grain plant. As a forage, it can produce high tonnage but is relatively coarse and less palatable than some other forages. Like wheat, there can be either winter ryes or spring ryes. Spring-planted ryes tend to grow tall and form seed, while winter ryes stay short and produce leaves but no seeds. Fall-planted spring types grow tall but die over winter. Winter varieties stay leafy during fall, survive winter and grow tall and form seed the next spring.

"Ryegrass," though, is a very palatable, high quality forage grass. There are several types of ryegrass and variety differences within each type. For example, perennial ryegrass produces very high quality pasture but only lasts for a few years under most Nebraska conditions.

The biggest confusion comes from annual ryegrass and Italian ryegrass. Technically, they refer to the same plants but in the forage world they have acquired different meanings. Annual ryegrass refers to varieties that are used for turf or for winter and spring forage in the Gulf-state region. Spring plantings in Nebraska head out and regrow very slowly during the heat of early summer, usually dying over winter. Italian ryegrass, however, is more like a biennial and produces mostly leaves while growing throughout summer and fall if moisture is available. Many varieties survive winter and then produce seedheads the following spring.

If you aren't sure whether you want rye or ryegrass or which variety of either, be sure to carefully describe to your seed dealer  when you want to plant and how you want to use your grass. They can help you get the right kind of rye or ryegrass.



Survey Gauges Nebraska Interest in Local Food

Today, the Center for Rural Affairs released a report examining Nebraska consumers’ interest in and perceptions of local and regional foods. Nebraskans spend $4.4 billion annually on food with 90 percent of that money leaving the state. The Center for Rural Affairs report finds, however, that an opportunity and a need exist - stemming from the current positive attitude toward local foods and growing national emphasis on food security, health and environment - to create comprehensive regional food systems in Nebraska that include farming and community gardening, processing, storage, distribution and transportation, and food access.

The report, entitled, Regional Food Systems in Nebraska: The Views of Consumers, Producers and Institutions, demonstrates that Nebraska consumers are overwhelmingly interested in purchasing food directly from local producers but a large majority believe the supply of producers selling food directly is difficult to find.

“Consumers also showed a willingness to pay slightly more for locally grown food, but that willingness has a limit,” said Jon Bailey, Center for Rural Affairs Director of Rural Research and Analysis and co-author of the report. “Beyond a ten percent price increase willingness to pay decreases.”

To view or download a full copy of the Regional Food System report go to http://files.cfra.org/pdf/ne-food-systems-report.pdf

According to Bailey, the demand for locally grown food exists among consumers, but the market, or at least the perception of the market, may be lacking. Farmers markets and grocery stores are the most common places to purchase locally produced foods. And consumers want increased grocery store and restaurant options to purchase locally produced foods.

“A number of consumers commented on the hours and location inconvenience of farmers markets, which may mean more business training is needed for those operating farmers markets,” Bailey explained.

“Producers also acknowledge that they face numerous challenges in building a regional food system. Producing sufficient volume of products and transportation were the most common challenges cited by respondents,” Bailey explained. “But a large majority of responding producers are interested in expanding their local food production capacity and a majority are interested in participating in a regional food system.”

“Our survey data paints a clear picture that the prevailing attitudes among consumers, producers and institutions toward the growth of local and regional food systems are overwhelmingly positive,” concluded Bailey. “And while real challenges exist there is also real opportunity and a desire among all parties to meet those challenges.”



Practical Farmers of Iowa and Iowa Learning Farms Co-Host Cover Crop Field Days

Practical Farmers of Iowa joins with Iowa Learning Farms to have farmers showcase their experiences with cover crops this spring at eight field days across Iowa. County Soil and Water Conservation District Commissioners and Eastern Iowa Hay Producers Association are helping to sponsor the spring field days that focus on the use and management of cover crops.

A record 100,000 acres of cover crops were planted in Iowa in 2012. This increasingly popular conservation practice protects soil from wind and water erosion and captures nitrogen that can otherwise leach from the soil and pollute nearby waterways.
Iowa Cover Crop Field Day Schedule

All field days are free, open to the public and include lunch.
    Friday, March 15, 9:30 a.m.-2:30 p.m. Northwest Iowa No-Till Conference, Moville Area Community Center, 815 Main St., Moville
    Tuesday, March 19, 10 a.m.-12:30 p.m. Dustin Kaestner Farm, 7381 16th Ave., Luzerne
    Thursday, March 21, 10 a.m.-2:00 p.m. Buzzy’s Pizza, 414 Main St.,Welton, with field tour at Neal Engle farm (25439 Highway 64, Maquoketa)
    Friday, March 22, 10 a.m.-12:30 p.m. Black Hawk Marsh State Game Management Area, 3575 Quincy Ave., field tour at Russ Schelle farm (10326 Granite Ave., Breda) lunch at the Breda park shelter
    Tuesday, March 26, 10 a.m.-12:30 p.m. Mike Sporrer Farm, Dedham, Carroll Co.
    Thursday, March 28, 10 a.m.-12:30 p.m. Kent Swanson Farm, 2670 K Ave., Red Oak
    Monday, April 1, 10 a.m.-1 p.m. Dordt College Research Farm, 3598 U.S. Highway 75, Sioux Center
    Thursday, April 4, 11 a.m.-2 p.m. Johnson’s Restaurant, 916 1/2 High St NE, Elkader, field tour at Gary Kregel Farm
    Wednesday, May 22, 1 p.m.-3:30 p.m. Dan Specht Farm, 12794 Pleasant Ridge Road, Monona

Each cover crop field day will include discussions and presentations including area-specific topics such as: no-tillage/strip-tillage systems, rotational grazing or grazing cover crops for livestock feed, soil and nutrient management benefits of cover crops and spring management for cover crops. For more information, contact Aaron Andrews at 515-294-4922 or Sarah Carlson at 515-232-5661.



Farm Poll Examines Where, How Farmers Get Their Information

Iowa farmers rely primarily on agribusinesses, Iowa State University Extension and Outreach and state agencies for their information needs, according to the 2012 Iowa Farm and Rural Life Poll.

The annual poll surveyed 1,296 farmers about the information sources they rely on when making decisions that affect their farm operations, said J. Gordon Arbuckle Jr., a sociologist with Iowa State University Extension and Outreach. Arbuckle co-directs the annual Iowa Farm and Rural Life Poll with Paul Lasley, another ISU Extension and Outreach sociologist.

“Farmers can choose from many sources to get the information they need to make decisions. We wanted to find out who they go to first for information on specific agricultural topics,” Arbuckle said.

“We’ve asked similar questions in previous surveys, and results show that ISU Extension and Outreach continues to be among farmers’ ‘go to’ information sources. We also asked farmers to tell us how they prefer to receive ISU Extension information and educational programming that supports their farming and farm management decisions,” Arbuckle said.

Primary Sources of Information
Farmers were asked to select the category of information provider that they would go to first when seeking information on crop production, nutrient management, pest and disease management, conservation, finances and marketing, Arbuckle explained. For each topic, farmers could choose fertilizer or agricultural chemical dealers, seed dealers, USDA/NRCS/SWCD service centers, private crop consultants, ISU Extension and Outreach, commodity associations and “other.”

For crop production — including corn production, soybean production and seed selection — seed dealers were the first choice for a plurality of farmers. A majority of farmers selected fertilizer or agricultural chemical dealers as their primary source of crop disease, insect and weed management information. Fertilizer or agricultural chemical dealers also were selected as the preferred provider of information on fertilizer application rates and nutrient management.

USDA/NRCS/SWCD service centers were designated as the preferred resource for information for both conservation tillage and soil and water conservation in general. Responses for farm financial management and marketing showed that many farmers did not select any of the listed entities as their primary information source, with 57 percent selecting other.

“Extension and Outreach ranked second or third in all categories, with the highest percentages being for pest and disease management, conservation, and farm financial management. Overall, 54 percent of farmers indicated that they would go to Extension first for at least one category of information. That said, chances are that much of the information farmers are receiving from other sources is based to some extent on Iowa State research,” Arbuckle said.

Partnerships with Stakeholders
“ISU Extension and Outreach delivers science-based agricultural information both directly to farmers and through key agricultural stakeholders who also have contact with farmers. Agribusinesses, crop consultants, commodity groups, state agencies and other ag information providers rely heavily on Iowa State research and extension information as they formulate their technical assistance recommendations for farmers,” Arbuckle said.

“These partnerships help us make sure that farmers are able to base their decisions on current research. The bottom line is that together we are able to place science-based information in the hands of more farmers across the state,” he added. Arbuckle said the Farm Poll results demonstrate the value of this approach.
Preferences for ISU Extension Information

The 2012 Farm Poll also asked farmers how they preferred to receive information from ISU Extension and Outreach. For each of several topics they could choose from a list ranging from field days and workshops to webcasts and apps. Farmers were asked to check all that applied.

“In general, results indicate that farmers are fairly diverse in their preferences. Traditional, in-person events such as field days and meetings were the most popular means of delivery for most types of information. However, substantial numbers of farmers expressed preference for electronic distribution of materials and programming through online videos, webcasts and downloaded publications. Very few, however, selected smartphone or tablet apps,” Arbuckle said.



Anderson hired to lead supply and production efforts at Iowa Soybean Association

The Iowa Soybean Association (ISA) has hired Ed Anderson as the organization’s senior director of supply and production systems.

In this position, Anderson will integrate ISA’s contracted research programs and supervise the teams involved with the On-Farm Network® and Environmental Programs and Services. He will collaborate with a number of entities including ISA staff, directors and members, land grant universities, United Soybean Board and North Central Soybean Research Program and strengthen relationships with a variety of soybean and agricultural industry groups.

“Ed is a proven leader when it comes to integrating technical, leadership and communication skills across a variety of teams and departments,” said Karey Claghorn, ISA chief operating officer. “For an organization like ours that produces, houses and distributes so much information, research and talent, we know that Ed’s abilities in establishing and managing efficient processes will be vital. He’ll be a catalyst in bringing all of these areas and skills together in ways that will benefit our farmers, support our supply development efforts and take ISA to the next level.”

Anderson most recently worked for DuPont Pioneer in Johnston, serving as the senior strategy manager for the disease & outputs traits/enterprise trait strategy team. In addition, he has served as an assistant professor in plant pathology at the University of Arkansas and worked as a research assistant at the graduate and post-graduate levels at the universities of Florida and Missouri.

Anderson grew up on a farm in north central Iowa. He earned a Bachelor of Science degree from Iowa State University and has a doctorate in molecular plant virology from the University of Missouri-Columbia.



USDA to Survey Farmers about their 2013 Planting Intentions

Over the next several weeks, the U.S. Department of Agriculture’s National Agricultural Statistics Service (NASS) will survey tens of thousands of growers about their 2013 planting intentions. The results of this survey will help all participants in the agriculture sector determine what to expect this growing season after a drought-hampered 2012 season. In addition to grain growers, NASS will also survey thousands of pork producers about their hog and pig inventories and spring farrowing intentions.

“The information we collect from producers during the first two weeks of March establishes a trend that we’re likely to see in  the entire growing season,” said Bob Bass, NASS’ National Operations Division director. “This year, after a weather-plagued 2012 season, it’s more important than ever to understand planting intentions for this year.”

Most survey participants should have received their questionnaires in the mail yesterday and can now respond via NASS’s secure website or by filling out and mailing the forms back. Trained NASS interviewers will visit those who do not respond to answer any questions they may have and to help them fill out their survey forms.

“These surveys require a pretty quick turnaround so that the information is as current as possible,” added Bass. “Not only do we publish the Prospective Plantings and Quarterly Hogs and Pigs reports on March 28, but we also recognize that farmers have a very busy time ahead of them and we want to let them get back to the task at hand as soon as possible.”

As with all of its surveys, NASS keeps all individual responses confidential. The published reports will include only national and state aggregate data, ensuring that no individual operations can be identified.



Weekly Ethanol Production for 2/22/2013

According to EIA data, ethanol production averaged 812,000 barrels per day (b/d) — or 34.10 million gallons daily. That is up 15,000 b/d from the week before and the highest rate of output in seven weeks. The four-week average for ethanol production stood at 793,000 b/d for an annualized rate of 12.16 billion gallons.

Stocks of ethanol stood at 19.4 million barrels, down less than 1 percent since last week.

Imports of ethanol showed 32,000 b/d.

Gasoline demand for the week averaged 361.1 million gallons daily.

Expressed as a percentage of daily gasoline demand, daily ethanol production was 9.45%, the second-highest of the year.

On the co-products side, ethanol producers were using 12.312 million bushels of corn to produce ethanol and 90,622 metric tons of livestock feed, 80,790 metric tons of which were distillers grains. The rest is comprised of corn gluten feed and corn gluten meal. Additionally, ethanol producers were providing 4.23 million pounds of corn oil daily.



All Quiet on the Fertilizer Front

According to retail fertilizer prices tracked by DTN for the third week of February 2013, prices continue fairly steady as has been the case for the last four months.  Five of the eight major fertilizers nudged lower compared to last month, but these moves were fairly small. DAP had average price of $623 per ton, MAP $665/ton, potash $594/ton, 10-34-0 $610/ton and anhydrous $861/ton.  The other three fertilizers edged higher compared to the third week of January, but again the move was insignificant. Urea had an average price of $575/ton, UAN28 $384/ton and UAN32 was at $438/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.63/lb.N, anhydrous $0.53/lb.N, UAN28 $0.69/lb.N and UAN32 $0.68/lb.N.

Three of the eight major fertilizers are showing a price increase compared to one year earlier. Anhydrous is now 11% higher while urea is 4% higher and UAN32 is 2% above last year.  Three fertilizers are single digits lower in price compared to February 2012. UAN28 is 1% less expensive, DAP is 5% lower and MAP is 6% lower compared to last year.  The remaining two fertilizers are now down double digits from a year ago. 10-34-0 is 25% less expensive and potash is 10% less from a year earlier.



NCGA Seeks a Few Good Grower Leaders

The National Corn Growers Association invites farmers who are graduates of the NCGA Leadership Academy to further hone their leadership skills by participating in the Advanced Leadership Program, sponsored by Syngenta. Applications for the program are due April 12. NCGA urges interested members to contact their state associations now for further information and to be nominated to participate.

"Building a strong cadre of well-trained leaders is an important part of growing a respected and professional association," said NCGA President Pam Johnson. "Our grower leaders serve a great role as industry spokespersons and valuable thought-leaders, and programs like Advanced Leadership give them the opportunity to learn leadership and practice what they learned in several important ways. I found my participation in Advanced Leadership to be invaluable."

The Advanced Leadership Program is open to graduates of Leadership Academy. The first session addresses personal communications, negotiation skills, transformational leadership and association management. The second session addresses advanced media training, deeper examinations of public policy issues, and working with lobbyists, NGOs and regulators.

The focus of the Advanced Leadership Program is to develop graduates into leaders who can take what they have learned and return to their state organizations or national positions and be transformational leaders for those around them. The curriculum is designed to empower this elite group of grower leaders with highly relevant training regarding issues facing state or national leadership that they can, in turn, share with others in their organization.

Prospective participants must be registered members of NCGA. Those interested should contact their state corn organization which will submit nominees for the program. The class size is limited to five to seven participants so the class may fill up quickly.

Advanced Leadership and Leadership Academy are part of Syngenta's "Leadership At Its Best" Program. Since 1986, the National Corn Growers Association, the state corn associations and, most importantly, the U.S. corn industry, have benefited tremendously from this program. More than 570 growers have gained invaluable media, communications, association management and public policy knowledge and skills over the lifetime of the program.

Applications are also available from state association offices for the Leadership Academy Program. Two applicants per state are invited to apply for that program, which are due March 29.



Farm Bureau Urges New Ag Labor Guestworker Program

A new, modern guestworker program for agricultural workers is needed so that U.S. farmers and ranchers can continue growing food, tending livestock and contributing to the nation’s economy, American Farm Bureau Federation President Bob Stallman told Congress today.

“We want to keep these jobs in America for U.S. workers, not outsource them,” Stallman testified to the House’s Judiciary Subcommittee on Immigration and Border Security. Farm Bureau urged lawmakers to implement a new, market-based labor program administered by the Agriculture Department.

The new program would serve as a substitute for and eventually replace the H-2A program now in place, Stallman explained. It would also provide farmers with access to a legal and stable workforce over the long-term. In addition, the new program would provide employers with greater certainty that they will have access to the workforce they need, when they need it and at a competitive cost.

American Farm Bureau Federation President Bob Stallman testified before Congress about the need for a new, modern guestworker program for agricultural workers. Click on the image for a high resolution copy.

“Ultimately, agriculture’s goal is to develop a program that treats workers fairly, while being efficient and economical for employers to use,” Stallman said, noting that workers would be able to work for multiple employers under a structure that enforces worker rights and protects them from exploitation.

Stallman also addressed agriculture’s short-term labor needs in his testimony.

“In order to provide short-term stability and an orderly, effective transition to a new guestworker program it is imperative that any legislation approved by Congress include provisions permitting current agricultural workers who might not otherwise qualify to obtain work authorization,” Stallman said.

“Any new program will take time to be implemented fully,” Stallman said. “Granting existing experienced agricultural workers work authorization is a crucial part of making sure that there is not economic dislocation in the agricultural sector while we transition to a new program.”

AFBF economists estimate that the agricultural economy and the broader U.S. economy are facing $9 billion or more in lost productivity each year if the agriculture labor force issue is not addressed.

In closing, Stallman reiterated the cooperative efforts of a broad coalition – the Agriculture Workforce Coalition – that is working in a unified manner “to construct a model agricultural labor program that will work” for all sectors of agriculture.



RFA Releases “40 Facts About Ethanol” Video

The Renewable Fuels Association (RFA) today released a new video entitled “40 Facts About Ethanol.”  It is a fast-paced, up-tempo, animated data-based review of ethanol past, present and future. To view this video, please visit www.EthanolRFA.org or RFA’s YouTube channel. 

“This video proves once and for all that today’s ethanol is not your father’s ethanol. The ethanol industry has made impressive strides in the last 30 years in production volumes, foreign oil displacement, production efficiencies, co-products, job creation, and cellulose and advanced ethanol market entry. The ethanol industry has a great story to tell and this video helps us tell it with data, color and occasionally humor. Whether you think you know all there is about ethanol or you are new to the topic, this video is a must-see! It is a great primer,” said Bob Dinneen, RFA’s President and CEO.

40 FACTS:
    1982: A handful of small ethanol plants produced 350 million gallons of ethanol.
    1992: 39 ethanol plants produced 985 million gallons of ethanol.
    2002: 66 ethanol plants were in operation, producing 2.14 billion gallons.
    2012: 211 ethanol plants produced 13.3 billion gallons.
    That’s 3700% growth in 30 years.
    Today, ethanol makes up 10% of the U.S. gasoline supply. That’s up from less than 1% just 20 years ago.
    Ethanol is blended in more than 97% of U.S. gasoline today, from coast to coast and border to border. That compares to just 15% in 2002.
    Last year, ethanol displaced an amount of gasoline refined from 462 million barrels of imported crude oil. That’s more oil than we imported from Saudi Arabia.
    And it means the U.S. reduced expenditures on imported oil by $44 billion last year.
    Oil imports from OPEC are down 22% since the Renewable Fuel Standard was expanded in 2007.
    And oil imports from the Persian Gulf are down 30% over the past decade.
    Oil import dependence dropped to 41% in 2012 — the lowest since 1995. Without ethanol, oil import dependence would have been 48%.
    Today’s producers get more ethanol out of every bushel—and use less energy and water to do it. That’s the definition of sustainability.
    Since 2001: Natural gas energy required to produce a gallon of ethanol has fallen 28%.
    Electricity use is down 32%. The amount of ethanol produced per bushel of corn has increased to 2.8 gallons, up more than 5%.
    Water use has fallen to 2.7 gallons per gallon of ethanol, down 40% over the last decade and comparable to water use for gasoline production.
    Producing 20 barrels of ethanol requires just 1 barrel of crude oil.
    Ethanol’s energy balance is continually improving: 1 unit of energy invested in making ethanol yields up to 2.3 units of energy available for the consumer.
    Ethanol reduces greenhouse gas emissions by 40-50% when compared directly to gasoline.
    Emissions of particulate matter, carbon monoxide, air toxics and volatile organic compounds are also reduced when ethanol is blended with gasoline.
     Ethanol is the cleanest and most affordable source of octane on the market today, displacing toxic aromatics such as benzene and toluene.
    Ethanol plants are important economic engines in Rural America.
    The industry was directly responsible for 87,000 jobs in 2012 and indirectly supported 295,000 more.
    More than $43.4 billion in U.S. gross domestic product was generated by the industry last year.
    Consumers benefit too: ethanol reduced gasoline prices by an average of $1.09 per gallon in 2011.
    That means the average American family saved $1,200 on gasoline purchases in 2011 because of ethanol.
    From 2000 to 2011, growth in ethanol use reduced gasoline prices by an average of $0.29 per gallon.
    That saved the U.S. economy nearly $40 billion per year from 2000-2011 in gasoline purchases.
    Ethanol plants make more than fuel; they also generate highly nutritious animal feed.
    1/3 of every bushel processed by a plant is used to make animal feed, while 1/3 goes to ethanol, and the other 1/3 produces CO2.
    Ethanol uses only the starch in the grain—the protein, fat, and fiber components are made into animal feed, such as distillers grains.
    Distillers grains have superior feeding value to corn, but typically costs less.
    Distillers grains are fed to beef and dairy cattle, hogs, poultry, fish and other meat animals around the world.
    The industry generated 37 million metric tons of feed in 2012—enough to produce seven quarter-pound hamburger patties for every person on the planet.
    The first generation of ethanol plants primarily uses grain to produce ethanol. But a second wave of advanced ethanol plants is being built that will use a new generation of feedstocks.
    At least eight commercial advanced ethanol plants are under construction or commissioning. At least 10 more facilities are in the engineering phase, while a dozen more are in the pilot/demonstration stage.
    These plants will use “cellulosic biomass” to make ethanol; things like corn stalks, wheat straw, poplar, paper waste, forestry residues, municipal waste and other materials.
    Cellulosic ethanol promises to reduce GHG emissions by up to 110% compared to gasoline.
    Many of these plants will also produce electricity.
    The U.S. could produce 75 billion gallons of cellulosic biofuels, five times the amount currently produced, according to the Department of Energy.



USDA Invests in Research to End Hunger and Address Food Security Challenges

Agriculture Deputy Secretary Kathleen Merrigan visited South Dakota State University today to announce more than $75 million in grants for research, education and extension activities to ensure greater food security in the United States and around the world. The awards were made to teams at 21 U.S. universities to conduct research that will find solutions to increasing food availability and decreasing the number of food insecure individuals. Merrigan announced the awards at the university's campus in Brookings, S.D., with university president David L. Chicoine and Barry Dunn, dean of the College of Agriculture and Biological Sciences.

"Millions of American households lack the resources to access sufficient food, and many of those, including our children, may go hungry at least once this year," said Merrigan. "The grants announced today will help policymakers and others better recognize the food and nutrition needs of low-income communities in our country, while improving the productivity of our nation's agriculture to meet those needs. Globally, the population is expected to grow by more than 2 billion people by 2050. By investing in the science of America's renowned land-grant universities, our aim is to find sustainable solutions to help systems expand to meet the demands of growing populations."

USDA's National Institute of Food and Agriculture (NIFA) made the awards through the 2012 Agriculture and Food Research Initiative's (AFRI) Food Security program. The program supports research that will keep American agriculture competitive while helping to end world hunger, and focuses on achieving the long-term outcomes of increasing domestic and international food availability and food accessibility.

This year's funded projects include research at South Dakota State University to examine community efforts to encourage healthy food choices; research at Purdue University to develop new strategies to defend against ear rot diseases in corn. Scientists at the University of Tennessee will identify ways to improve milk quality in the Southeast and enhance the sustainability of the Southeast dairy industry. A team at the University of California in Berkeley will work with tribal groups in the Klamath Basin in Oregon and California to build sustainable regional food systems to aid in enhancing tribal health and food security.

Fiscal year 2012 awards include:
    Auburn University, Auburn, Ala., $3,963,395
    University of California, Berkeley, Calif., $3,997,212
    University of California, Davis, Calif., $3,750,000
    University of California, Riverside, Calif., $416,130
    University of Delaware, Newark, Del., $26,000
    University of Georgia, Athens, Ga., $410,906
    Purdue University, West Lafayette, Ind., $5,349,650
    Iowa State University, Ames, Iowa $5,358,680
    Iowa State University, Ames, Iowa, $2,998,931
    Iowa State University, Ames, Iowa, $20,195
    Kansas State University, Manhattan, Kan., $5,500,000
    University of Kentucky, Lexington, Ky., $2,925,456
    Michigan State University, East Lansing, Mich., $2,989,032
    Michigan State University, East Lansing, Mich., $2,913,199
    University of Michigan, Ann Arbor, Mich., $3,997,207
    University of Missouri, Columbia, Mo., $2,997,040
    University of Nebraska, Lincoln, Neb., $3,730,635
    University of Nebraska, Lincoln, Neb., $1,166,650
    State University of New York, Buffalo, N.Y., $3,965,003
    North Carolina State University, Raleigh, N.C., $3,971,568
    Pennsylvania State University, University, Park, Pa., $420,000
    South Dakota State University, Brookings, S.D., $3,964,611
    University of Tennessee, Knoxville, Tenn., $3,000,000
    Texas AgriLife Research, College Station, Texas, $2,977,638
    Virginia State University, Petersburg, Va., $1,141,005
    Washington State University, Pullman, Wash., $2,984,255
    University of Wisconsin, Madison, Wis., $33,400
    USDA Agricultural Research Service, Fort Pierce, Fla., $419,631

AFRI is NIFA's flagship competitive grants program and was established under the 2008 Farm Bill. The five AFRI Challenge Areas—food safety, global food security, childhood obesity prevention, sustainable bioenergy and climate adaptation—advance fundamental sciences and deliver science-based knowledge to people, allowing them to make informed practical decisions.

These grants complement numerous efforts by USDA and partners to end hunger. The Healthy, Hunger-Free Kids Act President Obama signed into law in 2010 is a significant investment in our children and efforts to end childhood hunger. The Act expanded the at-risk meals program (CACFP) which provides supper and after-school snacks to low-income children in all states. The Act also makes it easier for children to receive free meals in the National School Lunch and School Breakfast programs through more expansive direct certification and community eligibility using existing data sources. USDA oversees the administration of 15 nutrition assistance programs that touch the lives of one in four Americans over the course of a year. These programs work in concert to form a national safety net against hunger.

Through federal funding and leadership for research, education and Extension programs, NIFA focuses on investing in science and solving critical issues impacting people's daily lives and the nation's future. For more information, visit www.nifa.usda.gov.



Land O'Lakes Reports 2012 Results; Company Reports Record Sales and Net Earnings

Land O’Lakes, Inc., today released its 2012 financial results, reporting record sales of $14.1 billion and record net earnings of $241 million. Additionally, three of the business segments achieved record sales, and the Crop Inputs segment had record earnings in addition to record sales.

The company also returned $113 million to members in 2012, the fourth consecutive year in which member returns exceeded $100 million.

The strong results in 2012 continue a trend of exceptional performance. The years of 2007 to 2012 represent the top six years for net sales and earnings in company history. During the same time, the company returned more than a half billion dollars to members.

“This consistent, positive performance is a direct result of the continuing implementation of strategies designed to build our value-added, branded businesses in Dairy Foods, Feed and Crop Inputs,” said Chris Policinski, president and CEO of Land O’Lakes, Inc. “These are strong, growing segments of agribusiness.”

A variety of factors influenced the 2012 performance. Among the factors were warmer-than-normal weather, which benefitted the Crop Inputs business, volatile dairy markets, and fluctuations in commodity pricing. Overall, Land O’Lakes’ results were positively impacted by the continuing implementation of strategies focused on consolidating and strengthening the company’s business platform, reducing costs and driving growth, Policinski said.

“Our growth strategy is fueled by the generation of cost savings and the enhancement of revenues in our businesses through a program we call Total Margin Management.  We use these funds to reinvest in product innovations and building our industry-leading brands,” Policinski continued. “We also completed several key acquisitions in 2012. This requires a financial strategy that balances short-term earnings and returns with long-term investment to achieve even greater future rewards.”

Sales and Earnings
Land O’Lakes 2012 net sales totaled $14.1 billion, up 10.2 percent from 2011’s net sales of $12.8 billion. Net earnings for 2012 totaled $241 million, a 31 percent increase from 2011’s $184 million.

Balance Sheet
Total balance sheet debt, including capital leases, was $1,242 million at year-end, versus $915 million as of Dec. 31, 2011. To fund its 2012 acquisitions, the company issued $300 million of senior unsecured notes.

Business Unit Performance
Dairy Foods
Dairy Foods achieved strong results in 2012 despite significant challenges in the first half of the year caused by unexpected and exceptional growth in milk supplies and volatile markets. Net sales were $4.2 billion, down 4 percent from 2011, while pretax earnings improved to $38 million, a 34 percent increase from prior year.

Within the Dairy Foods portfolio, Retail Foods recorded exceptional performance including a number of new records. Record volumes were achieved by Superspreads, which include LAND O LAKES® tub butter products. Continuing innovation generated new product offerings during the year, including Butter With Olive Oil and Sea Salt and Unsalted Butter Half Sticks, a Land O'Lakes exclusive. Retail Cheese also had a strong year; LAND O LAKES® Deli cheese products moved into several of the nation’s largest retail chains and innovation continued with the launch of a new 4 Cheese Italian Blend.

The Land O'Lakes strategy of growth also reshaped the portfolio mix of Dairy Foods in 2012. New growth initiatives included the launch of Sauté ExpressTM Sauté Starter, an on-trend, highly convenient product. Another significant growth development was the launch of Koru™ Creamery Style Yoghurt, a premium craft yoghurt that is targeted at the highly valued younger consumer.

Dairy Foods also grew through significant new acquisitions in 2012, including that of Kozy Shack Enterprises, Inc., adding this leading brand of refrigerated desserts to its product offerings. Dairy Foods also benefited from its 50 percent ownership in Eggland’s Best, LLC, a newly formed joint venture with Eggland’s Best, Inc.  Eggland’s Best, LLC provides new outlets for the LAND O LAKES brand in the high growth category of specialty eggs.

Strong results were also achieved in the Business-to-Business segment of Dairy Foods, specifically Foodservice, which provides products to schools, full-service restaurants, and government organizations. The Industrial Foods business was negatively impacted by unexpected milk volume in the first half of the year plus commodity price impacts on cheese and whey. Despite these adverse market conditions, Land O’Lakes continued to expand its relationships with large, global customers.

Feed
Purina Animal Nutrition delivered very good performance in 2012. Results were driven by strong margins throughout its portfolio plus the launch of a major new branding platform, new product lines and a key acquisition. Net sales were $4.6 billion, 15 percent more than last year while pretax earnings for the year totaled $31 million, 63 percent favorable to 2011.

Purina achieved significant margin improvement gains in the Lifestyle and Livestock businesses through improved product mix, focused pricing actions and successful risk management. The 2012 results were also favorably influenced by strong protein margins in the ingredients business and by the successful acquisition of Old Mill Troy in the premix business.

In 2012 the company unified its feed products under the Purina brand name and changed the name of the feed company to Purina Animal Nutrition, LLC. This strategy was designed to foster growth by leveraging the power of the iconic Purina brand, focusing product identity and maximizing brand marketing power to drive sales.

This brand strategy came to life with the launch of a new Purina® small animal product line, expanding the power of the Purina brand into the $500 million small pet market. Additional product innovations included the introduction of several new horse products including high-margin supplements and Hydration Hay™ Blocks. Livestock and cattle innovations included HeiferSmart® and STORM® Cattle Mineral, an industry-leading weatherized cattle mineral product.

Crop Inputs
Winfield Solutions delivered record results in 2012 bolstered by a powerful new branding strategy, continuing innovation and warmer-than-normal weather conditions that drove demand for WinField’s industry-leading products and services to new highs. Net sales for 2012 totaled $4.7 billion, 18 percent higher than the prior year. Pretax earnings for the year were $228 million, 62 percent more than 2011.

Major brand building advances in 2012 included uniting the company’s extensive lineup of product and services under the WinField brand, providing an integrated, customer-facing brand platform. This initiative was launched with a national media campaign including television and print advertising, public relations and on-line brand awareness strategies.

WinField also continued to build its leadership position in technology and innovation. The acclaimed R7® Tool continued to expand with over 300 accounts enrolled and 2,500 sellers trained to leverage Answer Plot® data in a Global Information System framework. In recognition of its achievements, WinField earned the 2012 Agriculture Technologies Award from the Agricultural Retailers Association.

In 2012, WinField also acquired Precision Turf & Chemical, Inc., the latest expansion of the company’s Professional Products Group, which markets products and services to golf courses, recreational facilities and sports venues.

Layers
The Layers segment, conducted through Moark, LLC, experienced a challenging year with unfavorable results driven primarily by high feed costs and lower commodity and brown egg pricing. Losses for the Layers segment totaled $34 million in 2012 compared with a loss of $3 million in 2011. Net sales achieved a new record of $735 million, 23 percent more than 2011.

A confluence of significant industry-wide challenges combined to produce the losses in Layers in 2012. These included lower than average commodity pricing, lower brown egg pricing due to excess supply in the market and excess production of small and medium eggs as a result of younger flocks and hot weather during the summer. The earnings challenges in Layers are being addressed through a sharpened focus on quality improvements and margin enhancement initiatives. Despite the industry-wide headwinds, Moark continued to pursue sales growth and achieved significant success with product introduction into one of the nation’s largest retailers.



DuPont Leader Updates 2013 Agriculture Research Pipeline with Investors

At the Goldman Sachs 17th Annual Agribusiness Conference today, DuPont Executive Vice President James C. Borel highlighted 2013 growth drivers and advancements of its agriculture research pipeline to sustain innovation across its seed, crop protection and nutrition and health businesses. Recent portfolio changes continue to solidify DuPont’s unique ability to address the global food security challenge by providing solutions across the food value chain.

"Ongoing global dynamics like increased urbanization in developing economies and consumer demand for protein-rich diets continue to strain today’s agriculture and food system. Farmers, grocers and food manufacturers seek new innovations to produce and package safe, nutritious food," said Borel. "DuPont is uniquely positioned to leverage science to provide options and local solutions that help feed a growing global population."

DuPont’s recent acquisition of Danisco and full ownership of Solae further strengthen the company’s ability to bring new innovation and solutions to customers across the food value chain.

Borel discussed the 2013 agriculture research pipeline that features an integrated approach to product development including germplasm, native and biotech traits, with 12 product advancements including 4 program additions as a result of sustained R&D efforts.

Following the strong commercial launches of Optimum® AQUAmax™ hybrids, Optimum® AcreMax® insect protection and Optimum® AcreMax® Xtra products in 2012, this year’s pipeline advancements underscore DuPont Pioneer’s progress in bringing local solutions to growers’ biggest challenges. Together with the solid growth of DuPont Crop Protection’s DuPont™ Rynaxypyr®, and launches of DuPont™ Cyazypyr™, Dermacor® seed treatment and Penthiopyrad, DuPont’s Agriculture pipeline is delivering today and poised for future growth.

"Our ability to unlock our strong seed germplasm potential using biotechnology, sustainable chemistry profiles and leading nutrition science demonstrates DuPont science at work for the global marketplace. Our unique routes-to-market, application development capabilities and local footprint ensures a close relationship with growers and food companies alike to bring tangible solutions from the ground up," Borel said.

Borel used the Brazil corn business as an example of successful product introductions combined with our advantaged route-to-market. Using advanced breeding and biotechnology, DuPont scientists have created unique products like Optimum® Intrasect®, with two modes of action for lepidopteran insect control, and early soybean varieties and corn hybrids uniquely designed to enable safrinha double-cropping systems. These 2 high-yielding products with native and biotech protection, delivered through our system of local sales professionals helped DuPont Pioneer achieve a multi-point gain in corn market share in the Brazil summer season and position us for continued growth in the current safrinha season.