Tuesday May 14 Ag News

Soybean Growers Call for Swift Passage of Senate Farm Bill

With a vote of 15-5 this afternoon, the Senate Committee on Agriculture, Nutrition and Forestry passed the “Agricultural Reform, Food and Jobs Act of 2013,” the Committee’s version of a new Farm Bill. American Soybean Association (ASA) President Danny Murphy, a soybean farmer from Canton, Miss., called on the full Senate to pass the bill, and expressed ASA’s appreciation for the cooperative and bipartisan effort displayed by the Committee in crafting a bill that provides farmers with the certainty they need to continue producing enough food, feed, fiber, and biofuels to meet growing domestic and global demand.

“Led by Chairwoman Stabenow and Ranking Member Cochran, the members of the Committee came together to pass a bill today that takes great strides toward enacting legislation we’ve all worked so hard on since the first hearing in 2010,” said Murphy. “The Committee’s farm bill provides continued planting flexibility, reinforces crop insurance, protects our natural resources, authorizes and funds vital trade, research and education programs, and feeds our nation’s hungry, all while addressing our nation’s budget needs by reducing spending by $23 billion, including elimination of direct payments and duplication of conservation programs. This is a responsible bill and one that the Senate should pass without delay.”

Among the key provisions in the bill for ASA is the structure of the bill’s commodity programs in Title I. In addition to the Agricultural Risk Coverage (ARC) program to protect against revenue losses, the Committee approved a price-based Adverse Market Program which sets reference (target) prices at a percentage of recent average prices and provides that support levels be updated annually.

“By agreeing to support a decoupled, market-oriented approach to price protection, the Committee has resolved a philosophical difference between farm groups on how to keep government farm programs from distorting planting decisions, and has united all major production regions behind one approach,” added Murphy. “ASA recommended this approach in March in the interest of finding common ground on which we might move a new farm bill forward. Both Chairwoman Stabenow and Ranking Member Cochran deserve a great deal of credit for helping this process along, and ASA commends them for it.”

The Senate bill reauthorizes and funds numerous ASA priorities, including the Biodiesel Education Program, the Biobased Market Program, agricultural research initiatives, and the Foreign Market Development and Market Access Programs.  It also includes provisions that strengthen the crop insurance program, a top priority for ASA.

Johanns Opposes Costly, Gimmick-laden Farm Bill
U.S. Sen. Mike Johanns (R-Neb.), a former Secretary of Agriculture, today voted against advancing out of committee a farm bill that relied on budget gimmicks and outdated policy. Despite his opposition, the bill passed in the committee by a vote of 15-5.

“Ag producers and taxpayers deserve an updated, reform-minded farm bill that promotes free market principles and saves taxpayer dollars,” Johanns said. “Unfortunately, the bill considered by the Ag Committee did not do enough to save money, and took us a step back towards 1980s farm policy.

“Just last year, we were able to come together in the Senate to pass a good bill that moved farm policy away from income support and towards risk management.  While this bill contains some of those reforms, it represents a significant step backward for ag policy and reduces farm bill spending by just 1.5 percent.

The farm bill reported out of the Senate Agriculture Committee counts $6.4 billion in savings from spending cuts that are not even in the legislation, but were already signed into law in 2011. It also includes a budget gimmick that hides $3.1 billion in payments just outside the ten-year budget window to make the bill appear less-costly. All told, the bill actually saves just $15 billion over ten years instead of the $24 billion its supporters are claiming.

Although last year’s bill would have eliminated target prices, this year’s bill more than doubles target price payments from $1.5 billion to $3.5 billion, moving ag policy away from the goal of a market-based system. Target prices were also increased. Rice’s target price was increased by more than 25 percent, and peanut prices were six percent from levels that have already triggered payments every year for the past decade.

The legislation also failed to achieve available savings by modernizing farm payments or focusing nutrition programs, which can be done without affecting the benefits going to current eligible recipients.

Senator Johanns believes our country needs a long-term, reform-minded farm bill, especially in the midst of a prolonged drought, and looks forward to opportunities to offer fixes during the amendment process.

NCGA Applauds Senate Ag Committee Farm Bill Action
National Corn Growers Association President Pam Johnson released the following statement in response to the Senate Agriculture Committee’s farm bill passage:

“We greatly appreciate the work by Senate Agriculture Committee Chairwoman Debbie Stabenow and the Committee to put forth a well-crafted farm bill. The National Corn Growers Association is pleased to see the Committee listened to the concerns of our nation’s corn farmers and have done a great job keeping our priorities, especially the importance of crop insurance and risk management, under consideration while drafting the legislation.

 “While we understand this is the first step in a very long process, we applaud the Senate Ag Committee for completing their bill and are encouraged that the House Agriculture Committee will swiftly follow suit. We look forward to continued work with members and staff on this important piece of legislation and urge Congress to pass a farm bill as soon as possible this year.”

NCBA on Senate Agriculture Committee Farm Bill Markup
With the Senate Agriculture Committee markup of the 2013 Farm Bill completed today, farmers and ranchers now look toward the House Agriculture Committee markup of its version of the bill, scheduled for May 15, as Congress moves one step closer toward passing a full 2013 Farm Bill, which would set American agriculture policy for the next five years.

National Cattlemen’s Beef Association (NCBA) President Scott George, a beef and dairy producer from Cody, Wyo., said his organization is pleased with the outcome of the Senate markup, adding that having cattle producers’ top farm bill priorities included in the legislation is paramount to ensuring the viability and sustainability of the beef industry.

“This version of the farm bill incorporates the priorities which NCBA and our membership fought hard for last year. There is not a livestock title, the conservation programs are maintained and the research title is sustained,” said George. “These priorities address the needs of cattle producers while limiting invasive federal oversight and ensure that farmers and ranchers can continue to produce a wholesome, safe and affordable food supply.”

The bill passed by the committee this afternoon did not include the Humane Society of the United States (HSUS) / United Egg Producers (UEP) language. After announcing two weeks ago that it planned to include language in the draft farm bill legislation that would codify an agreement between HSUS and UEP to seek federally mandated production practices for the egg industry, the Senate Agriculture Committee made the decision last week that the proposal would not be included in their markup of the farm bill.

“Including the HSUS/UEP legislation in the farm bill would have created a potential slippery slope to allow the federal government to mandate on-farm production practices for all sectors of the agriculture. Cattlemen and women have worked closely with the committee and leadership over these past years and we are very pleased the Senate used commonsense judgment and decided to not include this proposal in the bill,” said George. “We support this legislation that has come out of committee today and will continue working with both the Senate and House Agriculture Committees to ensure the passage of agriculture policy which will provide certainty to farmers and ranchers.”

ACE: Bipartisan Support in Senate Ag Committee for Blender Pumps and E15
American Coalition for Ethanol Executive Vice President Brian Jennings released the following statement after the Senate Agriculture Committee concluded a markup of the 2013 Farm Bill today.  He says, “ACE thanks Chairwoman Stabenow and members of the Senate Agriculture Committee for adopting a Farm Bill which provides $800 million in mandatory funding for critical Energy Title initiatives, particularly $241 million in mandatory funding for the Rural Energy for America Program (REAP).  REAP provides vital cost-share assistance to help petroleum marketers make upgrades or install new equipment at retail stations, ensuring consumers have access to renewable and affordable fuels such as ethanol.  Today’s action highlights strong bipartisan support for market access to E15 and midlevel blends, such as E30 or E85.  We encourage the U.S. Senate to take action soon to enact the Farm Bill.”

NMPF Pleased with Senate Agriculture Committee Farm Bill Approval
“We commend the members of the Senate Agriculture Committee for approving a farm bill today to transform dairy policy, while making necessary improvements in other farm and nutrition programs. The dairy title of the committee’s bill contains the long-awaited reforms offered by the Dairy Security Act, which provides the best combination of effective risk management for dairy farmers, while minimizing program costs to the taxpayer," says Jerry Kozak, President and CEO of the National Milk Producers Federation. 

“Committee Chairwoman Debbie Stabenow (D-MI) has again proved to be an effective leader of her committee, and we thank her, Ranking Member Thad Cochran (R-MS), and the other members of the Agriculture Committee for working together on the overall farm bill. Dairy farmers look forward to that same leadership as the bill reaches the Senate floor in the coming days.

“We also urge members of the House Agriculture Committee, during their markup of the farm bill tomorrow, to approve the Dairy Security Act and oppose an effort by Rep. Bob Goodlatte that aims to weaken the bill’s protection of dairy farmers. The Dairy Security Act is the best approach to providing milk producers an effective safety net, while avoiding a scenario that Goodlatte’s amendment could cause where dairy margins are low for long periods, hurting farmers and taxpayers alike.”



CBO Releases Score on Senate Farm Bill

The non-partisan Congressional Budget Office on Monday released its score of the Senate farm bill, just prior to start of the Senate Agriculture Committee marking up the bill.

The score is roughly in line with preliminary estimates by Senate Democrats and shows how counting sequestration savings helps bump up the bill's deficit reduction totals, reports The Hill.

CBO says the bill, authored by Chairwoman Debbie Stabenow (D-Mich.), cuts $18 billion over 10 years, compared to current law. The bill cuts more, if one assumes that the automatic sequestration cuts that went into effect would be repealed. The farm bill keeps those cuts in place and can claim another $6.4 billion in savings by doing so.

Added together, the cuts compared to repealing the sequester yield $24.4 billion in savingsm about $1.4 billion more than Stabenow estimated when the bill was released last week.

The bill cuts $4 billion from food stamp programs, $17 billion from traditional farm subsidies and $3.6 billion from environmental programs. It then spends $5 billion to bolster crop insurance programs.

The CBO score indicates that a major challenge is in store for lawmakers when the House and Senate try to reconcile the bills they are crafting. The House farm bill is estimated to cut $20 billion from food stamps, a much higher figure sure to be opposed by Democrats.

The House marks up its bill on Wednesday.



New Economic Assessment of Farm Bill Dairy Security Act

A new analysis of the key Farm Bill dairy proposals under consideration in the House Agriculture Committee finds that the Dairy Security Act (DSA) is better for farmers – as well as taxpayers – compared to the Goodlatte-Scott alternative proposal that will be offered in the committee deliberations tomorrow.

The new report, prepared by University of Missouri agricultural economists Scott Brown and Daniel Madison, assessed how the Dairy Security Act would have affected farm-level economics during the period 2009 through 2012 compared with the impact of an alternative plan offered by Reps. Goodlatte and Scott (G-S). The DSA program offers dairy farmers margin insurance, coupled with a market stabilization mechanism that improves farm prices during low periods while also controlling the program’s cost. The Goodlatte-Scott amendment lacks the market stabilization feature.

According to Brown and Madison’s economic modelling, the DSA would have increased net farm revenues by $0.55 per cwt. over the period studied, while the Goodlatte-Scott amendment would have raised farm revenue by only $0.48 per cwt. More important from a budgetary standpoint, the Goodlatte-Scott proposal would have hiked government expenditures by $1 billion over the 2009 to 2012 period compared to the DSA, because G-S would encourage more milk production – even at lower margins.

“This new analysis gets to the heart of the question that our lawmakers must answer: do they support a plan that will save the government money while helping farmers, or will they instead endorse an alternative that results in the worst of all worlds -- lower farm milk prices and higher taxpayer outlays?,” said Jerry Kozak, President and CEO of NMPF. “Regardless of your politics, the Dairy Security Act is the more fiscally responsible choice.”

Contrary to claims that the DSA would short the market of milk, affecting both the domestic and export aspects of the U.S. dairy sector, the Missouri report found that “Milk production on average is virtually unchanged under either option.” Brown’s report did note that the DSA’s market stabilization program would slow milk output in response to market signals, but that it would not have been in place frequently enough to produce long-term changes in milk production.



Scout for Alfalfa and Clover Leaf Weevils in Alfalfa
Bob Wright, Extension Entomologist
Keith Jarvi, Extension Educator in Dakota, Dixon, and Thurston Counties
Michael Rethwisch, Extension Educator in Butler County

Insect development has been slowed this spring due to below average temperatures, but as temperatures warm up expect to see alfalfa weevil larvae in southern Nebraska and slightly later, in northern Nebraska. There have already been reports of feeding in Kansas. It is time to begin scouting for alfalfa weevils and the accompanying feeding damage.

Alfalfa Weevil Life Cycle
Most alfalfa weevils overwinter as adults, become active as temperatures increase, and lay eggs. Some may lay eggs in the stem during fall and, if winter is not too severe, will successfully overwinter. These eggs will hatch earlier than those laid in spring. This is most likely to occur in southern counties.

The seasonal occurrence of alfalfa weevils does not fit this general pattern in some areas in Nebraska. In the Panhandle and in the northern tier of counties there may be two flushes of weevil larvae in the spring. In the last few years some areas of the state have received damage to regrowth after the first cutting due to a combination of late larval feeding and adult feeding. This is something to be aware of after the first cutting.

While alfalfa weevil damage has been spotty in much of Nebraska over the past few years, the potential for damage always exists. Even with the pressure of planting row crops, producers growing high quality alfalfa hay should make time to monitor fields for weevils over the next few weeks.

Clover Leaf Weevils
Clover leaf weevils (CLW) are occasionally a problem, but are vulnerable to fungus disease. These pests haven’t been a problem since the late 80s to early 90s when spring rains were rare. Dry conditions over the past several years in western Nebraska may have helped populations increase, although recent rains may have knocked down populations.

To scout for clover leaf weevil, look in the debris around the crowns during day. Scratching in the soil around the crowns and counting the number of larvae found per crown will help give a better idea of clover leaf weevil infestation. Their brown heads will help distinguish them from the black-headed alfalfa weevil.  

Both the alfalfa and clover leaf weevils feed on first cutting alfalfa as larvae, and regrowth after the first cutting as adults (and sometimes larvae). While research in northeast Nebraska has shown that clover leaf weevil larva feeding does not cause yield reduction to first cutting alfalfa, alfalfa weevil feeding can cause severe losses to yield and quality of the first cutting. This is why it’s important to correctly identify the type of weevil feeding causing damage.

Scouting
It is essential that fields be monitored for alfalfa weevil feeding now. Damage consists of small holes and interveinal feeding on the newest leaflets near the stem tips. The larvae are small (1/16 to 3/8 inch long) and pale yellowish green, becoming a darker green when larger. These legless worms have black heads and a white stripe the length of the back. The alfalfa weevil larvae spend nearly all their time on the plant. They curl into a C-shape when disturbed.

Once the alfalfa is about 4-6 inches tall, take a net sample to establish whether weevils are present. If they are, carefully cut some stems at ground level (30 to 50 per field, from various spots in the field) and shake the stems against the side of a 5-gallon bucket. This will dislodge the weevils and make it easy to average the number of weevil larvae per stem.

Insecticides
Many insecticides are registered to control alfalfa weevil larvae. See the most recent edition of the Guide for Weed Management in Nebraska with Insecticide and Fungicide Information (UNL EC130) for rates and restrictions of commonly used insecticides for alfalfa weevil larval control. They differ in their modes of action as well as pre-harvest interval. Highly effective insecticides for alfalfa weevil control include those that are pyrethroids (active ingredient ends in “thrin”) and Steward.

Pyrethroid insecticides also can have detrimental effects on any beneficial insects present.



Nebraska a Long-time Leader in Research into Distillers Grains

            Terry Klopfenstein's first foray into the possibility of using distillers grains for cattle feed in the late 1960s was based on the idea of fermenting wheat because it was so cheap at the time.

            "I put together a plan that never took off. It's a good thing that it didn't," Klopfenstein recalled.

            Instead, the fledgling field took its lead from the distilling industry in Kentucky, which was about adult beverages, of course, even landing some early funding from the whiskey industry for research.

            At the time, cattle were fed corn, corn silage and alfalfa, but the industry was interested in the possibility of feeding a distillers byproduct, Klopfenstein said. Early research showed that with much of the starch removed, distillers grains were a better feed than corn.

           "That was a tough sell to feeders," Klopfenstein said.

            Later came another shift: In addition to being a source of protein, research showed, distillers grains could be a source of energy for cattle.

            Over the decades since, the Institute of Agriculture and Natural Resources has been a leader in the field, thanks to Nebraska's unique mix of corn, cattle and ethanol production. IANR animal scientists long have been leaders in researching how best to use byproducts from ethanol production for cattle feed. Their pioneering studies in the 1990s proved the benefits of feeding wet byproducts to cattle instead of drying the material. Eliminating drying reduces ethanol production costs, reduces greenhouse gas emissions from the agricultural complex, and provides an economical, high-performance feed. This work transformed wet byproducts into a feedlot staple and helped develop Nebraska's ethanol industry.

            Klopfenstein, now semi-retired, has been the one constant presence in that research. In addition, his former students now are all over the country carrying the work forward as feeders and consultants.

            Bill Dicke, who got bachelor's and master's degrees in ruminant nutrition from the University of Nebraska-Lincoln in the 1970s, founded Cattlemen's Nutrition Services LLC, based in Lincoln, one of the largest independent beef nutrition consulting firms in the nation.

            Dicke said Klopfenstein's research and teaching have been key in making Nebraska a leader.

            "We definitely use what we learned in graduate school over the years, and we continue to monitor research and follow the university's research very heavily," Dicke said.

            Klopfenstein's colleagues, including fellow animal scientist Galen Erickson, take university research to the industry through UNL Extension. In 2012, for example, Erickson advised consultants to use more corn silage in cattle's diets, in part to use drought-damaged corn. In fact, current IANR research is exploring working more corn silage back into cattle's diets after it was largely eliminated since the 1980s. "There's a synergy there between silage and distillers grains," Klopfenstein said.

            Klopfenstein praised the Nebraska Corn Board, and the livestock and ethanol industries for being a key part of the partnership.



IFBF Funds Entrepreneurship, Animal Care Programs

The Iowa Farm Bureau Federation (IFBF) has provided $150,000 to support two programs in the Iowa State University (ISU) College of Agriculture and Life Sciences. One encourages budding entrepreneurs to return to rural Iowa and another supports the expansion of swine welfare training.

The Agricultural Entrepreneurship Initiative will receive $100,000 and the animal science department’s applied research in animal care and well-being project will receive $50,000.

Kevin Kimle, director of the Agricultural Entrepreneurship Initiative, says the funds support students who plan to return to Iowa farms and communities or start businesses. Since its start, more than 200 students have enrolled in the program to develop business plans.

Students who start businesses after completing the course are provided support through the initiative’s Student Incubator Program. The program encourages students to implement business concepts on farms and in rural communities. The program also places student interns with existing entrepreneurs through its summer program.

The $50,000 animal science department funding will go toward study and outreach activities to bring the latest advances in animal welfare to Iowa farms. Anna Butters-Johnson, Iowa State associate professor of animal science, says the programming is based on the needs of Iowa’s swine, poultry, dairy and beef producers.

“The on-farm Extension programs will use sound science relevant to Extension and outreach activities that, in turn, will create a network for improved communications on animal care and welfare practices in the state,” Butters-Johnson says.

To improve communications with livestock producers, Butters-Johnson hired Larry Sadler to fill a new position beginning in August. Sadler will create web-based communications, including a newsletter and educational materials. The goal is to provide information about the Iowa Swine Welfare School, Iowa State research and Extension and feature livestock and poultry producers who are enhancing animal care and welfare.

“Today’s responsible farmers are always seeking continuous improvement on their farms and that means embracing scientifically-proven animal handling guidance. We are looking forward to all that this new position at ISU can bring and new ways to share that research to a wider audience,” says Craig Hill, president of IFBF and a Milo, IA, livestock farmer.

The funds also support a swine welfare training school for producers throughout Iowa. Sadler also will provide grant-writing support to help launch on-farm training programs for other livestock species.



North-South American Maize Growers Form International Alliance

The U.S. Grains Council (USGC), along with the National Corn Growers Association (NCGA), MAIZAR, representing Argentina producers and the maize supply chain and ABRAMILHO (Brazilian Association of Corn Producers) today signed a memorandum of understanding to form an alliance of North and South American maize (corn) producers to collaborate on a global basis to address key issues concerning food security, biotechnology, stewardship, trade and producer image.  The organizations will function under the name, MAIZALL—The International Maize Alliance.

Signatories to the memorandum representing the producer organizations included: Don Fast, Chairman, USGC; Pam Johnson, President, NCGA; Alberto Morelli, Chairman, MAIZAR; and Sergio Luiz Bortolozzo, 2nd Vice President, ABRAMILHO. The MAIZALL alliance was launched as part of the MAIZAR 2013 Congress meeting in Buenos Aires. Argentina

“As both populations and economies continue to grow, the global middle class in expanding rapidly. World population is expected to increase more than 30 percent in the next 40 years, from 7 billion in 2012 to more than 9 billion in 2050,” said Don Fast, USGC Chairman. “The increase in population and buying power has led to an ever-growing demand for maize and other food and feed ingredients as diets are improving globally.”

“Food Security is a priority for every country,” said Pam Johnson, NCGA President. “Countries can be food secure without being self-sufficient by establishing relationships and building trust with exporting countries to be long-term, reliable suppliers of quality feed and food supplies,” Johnson noted.

“As the world’s population increases, farmers in exporting countries are challenged to grow more with less while improving stewardship and sustainability,” said Alberto Morelli, MAIZAR Chairman. “In the three countries where it is embraced, biotechnology has boosted yields and grain quality, reduced the intensity of chemical and fertilizer application, conserved soil, organic content and moisture, and enhanced returns to producers. Agricultural biotechnology is a critical component of the larger bio-economy that is necessary to sustainably provide for the needs of the growing global population and mitigate the impacts of climate change.”

“We are at a time when the growth of the middle class is exerting sustained pressure on input and food prices,” Sergio Luiz Bortollozo, ABRAMILHO 2nd Vice President stated. “The lack of predictable, functional, practical and science-based regulatory and trade policies in reviewing and approving new crop technologies by governments worldwide are imposing a crippling burden on innovation. For growers, the delays in introducing new technologies mean lost opportunities for higher yields and lower input costs. For consumers facing ever-rising food prices, the consequences are more acute.”

The primary focus of this new alliance is emphasize the need for better consumer understanding of production agriculture, including the benefits of biotechnology and advancing the global acceptance on the capacity to produce maize for feed, food and fuel. MAIZALL will also conduct outreach to governments and stakeholders on the need for trade-enabling biotechnology policies and regulatory procedures.



USDA Announces Conservation Reserve Program Sign-Up

Secretary of Agriculture Tom Vilsack today reminded farmers and ranchers that the U.S. Department of Agriculture (USDA) will conduct a four-week Conservation Reserve Program (CRP) general sign-up beginning May 20 and ending on June 14. Vilsack also announced the restart of sign-up for continuous CRP, including the Conservation Reserve Enhancement Program, State Acres for Wildlife Enhancement Initiative, the Highly Erodible Land Initiative, the Grassland Restoration Initiative, the Pollinator Habitat Initiative and other related initiatives. Sign-up for continuous CRP began on May 13 and will continue through Sept. 30, 2013.

"As always, we expect strong competition to enroll acres into CRP, and we urge interested producers to maximize their environmental benefits and to make cost-effective offers," said Vilsack. "CRP is an important program for protecting environmentally sensitive lands from erosion and sedimentation, and for ensuring the sustainability of our groundwater, lakes, rivers, ponds and streams. Through the voluntary participation of our farmers and ranchers, CRP helps us to protect our natural resources, preserve wildlife habitat and bring good paying jobs to rural America related to hunting, fishing, and outdoor recreation.

Vilsack encouraged producers to look into CRP's other enrollment opportunities offered on a continuous, non-competitive, sign-up basis.

CRP has a 27-year legacy of successfully protecting the nation's natural resources through voluntary participation, while providing significant economic and environmental benefits to rural communities across the United States. Producers enrolled in CRP plant long-term, resource-conserving covers to improve the quality of water, control soil erosion and develop wildlife habitat. In return, USDA provides participants with rental payments and cost-share assistance. Contract duration is between 10 and 15 years. Currently, 27 million acres are enrolled in CRP through 700,000 contracts on 390,000 farms throughout the U.S., with enrollment in 49 states and Puerto Rico. Contracts on an estimated 3.3 million acres will expire on Sept. 30, 2013. Enrollment authority for all types of CRP, which had expired Sept. 30, 2012, was extended through 2013 by the American Taxpayer Relief Act of 2012.

Offers for general sign-up CRP contracts are ranked according to an Environmental Benefits Index (EBI). USDA's Farm Service Agency (FSA) collects data for each of the EBI factors based on the relative environmental benefits for the land offered. FSA uses the following factors to assess the environmental benefits for the land offered:
-    Wildlife habitat benefits resulting from covers on contract acreage;
-    Water quality benefits from reduced erosion, runoff and leaching;
-    On-farm benefits from reduced erosion;
-    Benefits that will likely endure beyond the contract period;
-    Air quality benefits from reduced wind erosion; and
-    Cost.

CRP soil rental rates for non-irrigated cropland were updated this year to better reflect location and market conditions. A nationwide cap was placed on the maximum amount that may be paid per acre for the general sign-up. Taken together these steps help ensure that taxpayer dollars are spent in a fiscally responsible manner while producing the maximum environmental benefits for each dollar spent.

CRP is the largest USDA conservation program and continues to make major contributions to national efforts to improve water and air quality, prevent soil erosion, and protect the most sensitive areas including those prone to flash flooding and runoff. At the same time, CRP has helped increase populations of pheasants, quail and ducks and is recognized as benefiting certain rare species like the sage grouse, the lesser prairie chicken and other grassland birds.



Retail Fertilizer Prices Unmoved for 6 Months

Fertilizer prices remain unmoved as spring field work inches along across the Corn Belt, according to retail fertilizer prices tracked by DTN for the first week of April 2013. Prices now have been nearly steady for exactly six months, with the last substantial move occurring in late October 2012.  Five of the eight major fertilizers slid lower compared to last month, but these moves were fairly small. DAP had average price of $613/ton, MAP $656/ton, potash $586/ton, urea $571/ton and anhydrous $853/ton.  The remaining three fertilizers were higher compared to the first week of April but again the move was minor. 10-34-0 had an average price of $614/ton, UAN28 $402/ton and UAN32 $449/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.62/lb.N, anhydrous $0.52/lb.N, UAN28 $0.72/lb.N and UAN32 $0.70/lb.N.

Only one of the eight major fertilizers is showing a price increase compared to one year earlier. Anhydrous is now 11% higher compared to last year.  Four fertilizers are a single digit lower in price compared to May 2012. DAP is 4% lower, both MAP and UAN28 are down 6% and UAN32 is 7% lower compared to last year.  The remaining three fertilizers are now down double digits from a year ago. Potash is now down 11% while 10-34-0 is 22% less expensive and urea is 25% lower.



Vilsack Unveils Vision for U.S. Organic Agriculture

Agriculture Secretary Tom Vilsack today discussed his vision for U.S. organic agriculture and USDA efforts to ensure its continued success during remarks to the Organic Trade Association. Vilsack announced a number of changes and new initiatives to support the continued growth of organic agriculture, including that the USDA's Risk Management Agency's (RMA) federal crop insurance program will increase coverage options for organic producers this year and provide even more options in 2014, including a contract price addendum as well as new premium price elections for organic crops. Additionally, RMA will remove the current five-percent organic rate surcharge on all future crop insurance policies beginning in 2014.

Vilsack also said USDA will be providing new guidance and direction on organic production to all USDA agencies in support of organic agriculture and markets. USDA is now asking each agency to routinely address the needs of the organic sector in their programs and services where appropriate. The National Organic Program has supported the continued growth of America's organic sector, which has been increasing market share each year and now is a more than $30 billion industry. Vilsack noted that accurate data is the biggest obstacle for developing better crop insurance options for organic farmers and expressed his desire that Congress help USDA make further progress by renewing the 2008 Organic Data Initiative as part of a new Food, Farms and Jobs bill.

"Organic agriculture is one of the fastest growing segments of American agriculture and helps farmers receive a higher price for their product as they strive to meet growing consumer demand," said Agriculture Secretary Tom Vilsack. "These new options will extend the safety net provided by crop insurance and provide fair and flexible solutions to organic producers. Coupled with the new guidance for agencies to support this growing sector, USDA recognizes that organics are gaining market share and is helping boost this emerging segment."

New crop-insurance pricing options will be available to organic producers who grow crops under guaranteed contracts beginning with the 2014 crop year. This contract price option allows organic producers who receive a contract price for their crop to get a crop insurance guarantee that is more reflective of the actual value of their crop. They will have the ability, where available and at their choice, to use their personal contract price as their price election or to choose existing crop insurance price elections. This contract price option will be available for between 60 and 70 crops in the 2014 crop year and this contract price feature will be available to the majority of insured organic crops. RMA is also changing organic transitional yields (t-yields) so they will be more reflective of actual organic farming experience, starting with the 2014 crop year.

All crops are being evaluated for establishing organic prices for the 2014 crop year. Current pricing options only allow farmers to insure organic crops at the conventional prices, with the exception of eight crops (corn, soybeans, cotton, processing tomatoes, avocados, and several fresh stone fruit crops) that already have premium organic price elections. RMA is working to provide organic price elections for six to ten crops in 2014. Oats and mint are two crops that have already been selected for organic price elections in 2014, and apricots, apples, blueberries, millet, and others are still under consideration.

USDA's Agriculture Marketing Service last year announced the Organic Literacy Initiative, a public outreach and employee training program to help connect current and prospective organic operations with appropriate USDA resources. To date, over 14,000 USDA employees have taken the basic training on USDA's role in organic agriculture. The new guidance will further improve USDA agencies' ability to incorporate the needs of the growing organic sector into their programs and services. These combined actions should result in staff better equipped to help organic farmers obtain technical and financial assistance, insure crops and livestock, access research findings, secure loans, develop conservation practices, find current organic price information, and access local, regional, and international markets. Through this effort, agencies will also better understand the scope and rigor of the certification process and how it complements their own programs.

Organic certification allows farmers and ranchers to receive premium prices for their value-added products. Over the past 10 years, the number of certified organic farms and businesses in the United States has expanded to approximately 17,750, representing a 240 percent increase since USDA first began collecting this data. Similarly, the retail value of the organic industry grew almost 9.5 percent in 2011 to $31.4 billion. Organic foods continue to gain market share in the food industry, climbing to 4.2 percent of U.S. retail food sales in 2011.



ACE’s Lamberty joins ASTM Technical Committee overlooking fuel standards

The American Coalition for Ethanol (ACE) has joined the ASTM (Formerly American Society for Testing and Materials) Technical Committee D02 on Petroleum Products and Lubricants, represented by ACE Senior Vice President Ron Lamberty. Lamberty is participating in a training meeting this week in New Orleans.

Lamberty says he’s excited to be a member of the committee and thinks he’ll be a good fit because of his background.  “After over 30 years as a fuel retailer and station owner, I will look at standards not only from the point of view of ethanol producers, but from the practical perspective of someone who has to work with those specifications in the "real world." I look forward to offering whatever information I can on ethanol, as we work on future fuels with higher octane and higher concentrations of ethanol,” said Lamberty.

The ASTM Committee D02 on Petroleum Products and Lubricants meets twice a year. The committee, currently has jurisdiction over 580 standards which are published in five volumes of the Annual Book of ASTM Standards. According to the ASTM, the standards developed during the committee meetings play an important role in all aspects relating to the standardization of Petroleum Products and Lubricants.



Oil Slides on IEA Output Forecast

(AP) -- The price of oil slid by nearly $1 a barrel Tuesday as the International Energy Agency raised its forecast for U.S. oil production while cutting its prediction for global crude demand.

Benchmark oil for June delivery dropped 96 cents to close at $94.21 a barrel on the New York Mercantile Exchange. Oil has declined $2.41 a barrel over the last four trading sessions.

The loss came after the Paris-based IEA, which advises 28 countries about energy issues, said rising U.S oil output will be the key source of new supplies over the coming five-year period.

"The supply shock created by a surge in North American oil production will be as transformative to the market over the next five years as was the rise of Chinese demand over the last 15," the IEA said in its in its medium-term market report.

While noting risks such as the effects of the "Arab Spring" on investment and capacity growth in the North African and Middle East oil industries, the IEA said it expected "a more comfortable global oil supply/demand balance" in the next five years.

Also weighing on prices was the IEA's decision to trim its global demand forecast for every year between 2013 and 2017. The agency cut its 2013 outlook by 20,000 barrels a day.

Overall the IEA forecast global oil demand growth to rise by a total of 6.1 million barrels a day over the next five years, from 90.6 million barrels a day in 2013 to 96.7 million barrels a day in 2018.

"Growth will remain subdued in 2013, then gain momentum in 2014-15 on stronger economic expansion, and slow down again in 2016-18 on efficiency improvements and fuel switching," the IEA said.



CWT Assists with 933,000 Pounds of Cheese Export Sales

Cooperatives Working Together (CWT) has accepted four requests for export assistance from Dairy Farmers of America, Northwest Dairy Association (Darigold) and Foremost Farms to sell 932,556 pounds (423 metric tons) of Cheddar cheese to customers in Asia and North Africa. The product will be delivered May through October 2013.

Year-to-date, CWT has assisted member cooperatives in selling 53.810 million pounds of cheese, 51.727 million pounds of butter, 44,092 pounds of anhydrous milk fat and 218,258 pounds of whole milk powder to 31 countries on six continents. These sales are the equivalent of 1.626 billion pounds of milk on a milkfat basis. That is more than USDA’s projected increase in milk marketings for all of 2013.

Assisting CWT members through the Export Assistance program positively impacts producer milk prices in the short-term by helping to maintain inventories of cheese and butter at desirable levels. 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 assistance to the bidders only when delivery of the product is verified by the submission of the required documentation.

April CWT-Assisted Export Sales Total 9.1 Million Pounds
In April, Cooperatives Working Together (CWT) received a total of 126 requests for export assistance from member cooperatives. Of those, 28 counter offers made by CWT were accepted, resulting in 3.9 million pounds of cheese and 5.2 million pounds of butter being sold, primarily to customers in Asia, the Middle East, and North Africa.

Through April, CWT has assisted 10 member cooperatives in making 308 export sales totaling 50.9 million pounds of cheese, 51.7 million pounds of butter, 44,092 pounds of anhydrous milk fat, and 218,258 pounds of whole milk powder. The product will be shipped through October of this year. It is equivalent to 1.6 billion pounds of milk, which exceeded USDA's estimate of the increase in U.S. milk production in 2013.

CWT-assisted shipments of cheese and butter in 2013, through April, totaled 52.9 million pounds of American-type cheeses and 29.9 million pounds of 82% milkfat butter. The majority of cheese will be going to Asia, while the majority of butter will be shipped to the Middle East and North Africa.



REAL Seal to Launch New Social Media Campaign

NMPF's efforts to revitalize the REAL® Seal will take a big leap forward this spring, as a new campaign to build interest in the seal through social media is being launched. The campaign will galvanize interest among consumers in real, American-made dairy products, using a new Facebook page, blogger outreach, and digital advertising. The program will be launched in time for June Dairy Month.

The revamped REAL Seal® Facebook page will create a new voice and visual feel to engage and cultivate target audiences, especially moms and heads of households consuming dairy products. The page's content will include interaction-provoking updates, multimedia presentations, contests, polls, and quizzes. One of the elements of the launch will feature a "Name the Character" contest. Kids submitting the winning name will receive a packet of coupons provided by product marketers using the REAL® Seal.

The blogger outreach will generate engagement, online conversation, and awareness surrounding the REAL® Seal campaign by driving consumers to official REAL® Seal platforms, and by interacting with bloggers writing about the mom/parenting, food/cooking, health/wellness, and lifestyle topic areas. Starting in July, a special Buyer's Guide section will be added to the REAL® Seal website, where consumers will be able to go to find REAL® dairy products, foods made with REAL® dairy products and restaurants that use and serve only REAL® dairy products. REAL® Seal users will have the option of providing links to their company's website as well.



Narrow Rows Will Shape the Future of Yield Potential

Stine Seed Company’s exploration of 12-inch row corn is attracting a lot of attention from growers and industry leaders. Last year, Stine planted 2,300 acres of corn and 100 acres of soybeans in 12-inch rows. Even with 2012’s drought conditions, results were impressive, reaffirming Stine’s belief that using space more efficiently, coupled with the right hybrids, will shape the future for higher corn yields.

To take this concept to the next level, this year Stine is planting 15,000 acres of corn and soybeans at the Stine Farm near Adel, Iowa, in 12-inch rows. Machinery specially customized for this effort includes modified planters, corn heads, sprayers and special floatation tractor tires that operate with just five pounds of air pressure.

“At Stine, we’re always looking for the next step to improving yields, and we think the answer is hybrids with the right genetics to perform in high populations,” says Stine Vice President of Sales and Marketing Myron Stine. “Growers want to produce more yield per acre, and we’re pushing the envelope to find ways to do that. One of the keys to high density production is working in narrower rows.”

With increasing interest in the 12-inch rows, Stine will plant between 50 and 70 12-inch row corn demo plots (as weather and logistics allow) across the Corn Belt to demonstrate how high density planting, coupled with selecting the right genetics, can help growers reach the maximum yield potential for their fields. The plots are designed to provide growers a glimpse of the future direction in crop production.

“We’re not telling anyone to go to 12-inch rows today,” says Stine. “However, we do believe that’s where corn production is heading, and we plan to be the ones leading the innovation.”

Stine’s 9733VT3PRO and R9733EVT3PRO are currently the company’s best performing hybrids in high population situations. Both are medium stature hybrids with good stress tolerance and excellent stalks and roots. These hybrids will be planted in many of the demo plots, along with a selection of seed genetics that are not suitable for higher populations. The intent is to demonstrate to growers how some genetics are more suitable than others for high populations and why proper hybrid selection is critical. A complete listing of demo sites will be made available on Stine’s web site.

The following is a list of anticipated locations for 12-inch corn row demo plots:
Nebraska: Hubbard; Ashland
Iowa: Alton; Rembrandt; Farnhamville; Paton; Earlham; Yale; Jamaica; Lytton; Early; Plainfield; Ackley; Britt; Rake; Carroll; Scranton; Oakland; Graettinger; Hartley; Sheldon; Harlan; Hills; Wilton; Osage; Iowa Falls; Winterset; Ankeny; Knoxville; Hanlontown; Jewell
South Dakota: Baltic
Kansas: Girard; Richmond; Valley Falls; Osborne; Winchester
Missouri: Sikeston; Hardin; St. Charles; Columbia; Smithville; Barnard; Bigelow; Laddonia
Minnesota: Wilmont; Redwood Falls; Sleepy Eye
Illinois: Griggsville; Hamilton; Brimfield; Bloomington; Cabery; Piper City; Breese; Litchfield; Greenfield; Casey; Marshall; Taylorville; Pawnee
Indiana: Windfall; Roann; Keystone; Dunkirk; Sheridan; Holland; Urbana; Alexandria; Portland
Michigan: Vermontville; Breckenridge
Ohio: Hamler; Delphos; Hickville; Marion



ASGROW BRAND SET TO DELIVER OUTSTANDING LINEUP OF ROCK STAR PRODUCTS AND NEW SOYBEAN ADVANCEMENTS IN 2014

The Asgrow brand is excited to offer a proven roster of high-performing, Rock Star products, along with an expansive range of soybean advancements that farmers can rely on for many seasons to come.

Asgrow Rock Star products feature the industry’s latest soybean trait technology, Genuity® Roundup Ready 2 Yield®  and have consistently achieved top-end yields through a combination of superior genetics, improved agronomic traits and the implementation of the Asgrow brand’s 4P System, which is a full-season management system including the “4P’s” – Plan, Plant, Protect and Perform.
“Both the Rock Star Products and new advancements are the best-of-the-best from the Asgrow brand’s elite breeding program,” said Jeff Schneider, Asgrow Line Product Manager. “These advancements are the first class of new products from our more extensive testing program across the U.S., which will ultimately lead to farmers having more confidence in the products they plant and ensure they receive maximum performance on their acres.” 

These tried and true products deliver yield stability and enhance the performance farmers have come to expect from Asgrow. In addition to the Rock Star lineup, Asgrow brand is featuring a diverse offering of new advancements that include industry-leading defensive packages that help farmers protect their yield from insects and devastating diseases such as Soybean Cyst Nematode, Phytophthora Root Rot and Iron-Deficiency Chlorosis tolerance. A field with Soybean Cyst Nematode pressure can result in a 40% loss of potential crop yield before a farmer is able to see above ground symptoms, which is what makes this parasite one of the most harmful yield-robbing pests. 

“For the last 40 years, the Asgrow brand has been dedicated to bringing farmers more advanced products and agronomic solutions,” said Fabrice Houdebert, Asgrow Brand Marketing Lead.  “Whether it’s our established lineup of Rock Star products, commitment to breeding the best defensive traits for farmers’ fields or providing sound, agronomic recommendations, Asgrow will continue to enhance the future of soybean innovation.”

The Rock Star products are designed to perform within the Asgrow 4P System, which is a year-long approach to increase yield potential and profitability of soybeans. By following the high yield management recommendations of the Asgrow 4P System, along with the expert advice provided by their Asgrow seed dealer, farmers can unlock the genetic potential in their fields.

The 2014 lineup of Asgrow Rock Star products include:
-    AG0832 brand (LATE 0)
-    AG1431 brand (MID 1)
-    AG1733 brand (LATE 1)
-    AG2031 brand (EARLY II)
-    AG2433 brand (MID II)
-    AG3231 brand (EARLY III)
-    AG3731 brand (LATE III)
-    AG3832 brand (LATE III)
-    AG4232 brand (EARLY IV)
-    AG4632 brand (MID IV)
-    AG5332 brand (EARLY V)