Tuesday, July 9, 2013

Tuesday July 9 Ag News

UNL Extension hosts Herbicide Resistant Weed Mgt Field Days

One of the most daunting challenges to weed management is the continual evolution of weed species with resistance to one or more modes of action. Learn about herbicide resistance and the need for integrated weed management programs to delay the evolution and/or spread of herbicide-resistant weeds at the University of Nebraska - Lincoln Extension's Herbicide-Resistant Weed Management Field Days. The program will be held twice... once on August 6th on the southwest corner of David City and the other is on August 7th just east of Fremont.  There is no parking available at the Fremont field site, so you are asked to park in the Tractor Supply parking lot (across from Walmart) and shuttle busses will transport you 1.5 miles to the field day site. 

Programs at both sites will be similar, except where local challenges are addressed, including Glyphosate-resistant giant ragweed at David City and Glyphosate-resistant waterhemp at Fremont.

FIELD DAY SCHEDULE

9 a.m. Registration
9:20 a.m. Welcome
9:30 a.m. Field Study Tours
12 p.m. Lunch
12:15 p.m. Keynote Speaker
1:30 p.m. Adjourn

FIELD STUDIES ON THE TOUR

Glyphosate Dose Response - See how resistant weeds respond to increasing rates of glyphosate.
Management Systems - Study various herbicide programs and their effectiveness in controlling a glyphosate-resistant weed population.
Liberty Link Soybean - See how Liberty Link Systems can be used to sustainably manage weeds.
Dicamba-Resistant Soybean (Fremont) - View demonstrations of how dicamba-resistant soybean can provide another postemergence tool for weed management
Carrier Rate - See the impact of carrier rate on several herbicides. This stop will also address the importance of effective herbicide applications to manage the development of weed resistance.

The event is free but preregistration is required by Friday, August 2, so plans can be made for the complimentary meal, teaching resources, and tour logistics.  For more information, to register, or to print off a registration form to send in, go online to http://agronomy.unl.edu/weedresistmgt or contact your local UNL Extension office. 



2012 Irrigated Corn, Soybean Yields Second Best Ever; Dryland Worst in 30 Years


            Nebraska irrigated corn and soybean yields reached their second-highest averages in history in drought-plagued 2012, but yields for their dryland counterparts were at their lowest averages in about 30 years.

            The U.S. Department of Agriculture – National Agriculture Statistics Service reported state average yields of corn and soybeans of 190 bushels per acre and 59 bushels per acre, respectively, under irrigation – second only to 2009 for corn and 2011 for soybean.

            Under dryland conditions, average yields were 61 bushels per acre for corn and 25 bushels per acre for soybean, lowest since 1983 for the former and '84 for the latter.

            "The low dryland yields were not surprising given that the rainfall during the crop growing season did not exceed 10 inches at most locations, which is about half of the rain amount in a typical year," said Patricio Grassini, research associate professor in the University of Nebraska-Lincoln's agronomy and horticulture department..

            The 2012 irrigated corn yield average was 10 bushels above the 2011 yield and five bushels above the 2005-11 average. Highest county level averages were reported in south central Nebraska, ranging from 205 to 220, according to NASS.

            It was a very different story for dryland corn. That 59 bushel/acre average was 74 bushels below the 2011 average and 68 bushels below the 2005-11 average. 

            The highest county-level average dryland corn yields, in the range of 80 to 100 bushels/acre were reported in counties on the east central and east south edges of the state and in two counties in south central Nebraska.

            Nebraska statewide irrigated soybean yield in 2012 of 60.7 bushels/acre was only 0.4 bushel below the 2011 irrigated soybean average and 2 bushels above the past seven-year average (2005-2011). The highest county-level average irrigated soybean yields, in the range of 66 to 70 bushels, were reported for counties in south central Nebraska.

            For dryland soybean, the statewide average yield of 25 bushels/acre was 23 bushels below the 2011 average, and 20 bushels below the past seven-year average (2005-2011). The highest county-level average dryland soybean yields, in the range of 32 to 38 bu/ac, were reported for counties in the east central and east south edges of the state and for two counties in south central Nebraska.

            For more information, see CropWatch, UNL Extension's crop-production newsletter, at cropwatch.unl.edu.



Smith Introduces Rural Postal Services Act


Congressman Adrian Smith (R-NE) introduced H.R. 2615, the Securing Access to Rural Postal Services Act along with Congressman Mike McIntyre (D-NC).  The bill would ensure rural service is not inappropriately targeted by capping rural closures and consolidations at 5 percent of total closures and consolidations in any given year.

“In rural America, the post office is the center of the community and provides an important link to the rest of the nation,” said Smith.  “Closing smaller retail locations will not solve the Postal Service’s serious financial problems, and given the importance of universal service, rural post offices should not be disproportionately targeted.  This bill is a commonsense solution which would help the Postal Service uphold its mission to serve all Americans while it addresses its long-term fiscal challenges.”

In 2011, the U.S. Postal Service (USPS) announced it was considering the closure or consolidation of 3,652 postal facilities, 90 of which were located in Nebraska.  It was estimated closing all of these post offices would have saved the Postal Service about 4 percent of USPS’s $5 billion shortfall in 2011.

In addition to closure caps for rural facilities, the Securing Access to Rural Postal Services Act would set guidelines for closing or consolidating any post office to ensure those affected by such changes would maintain access to the Postal Service.

Under the bill, USPS would be required to provide 60 days’ notice of their intention to close or consolidate, and must survey affected customers to determine preferences for alternative access to postal services.  If USPS is unable to provide access through the alternative preferred by survey participants or the preferred option is cost prohibitive, USPS would be required to provide access to postal services through different means and give written explanation for why the preferred option was not possible.

Smith and McIntyre co-chair the bipartisan Congressional Rural Caucus which provides a forum to find workable solutions to the unique issues facing rural Americans.



State Land in Iowa Open to Emergency Haying and Grazing


The Iowa Department of Natural Resources (DNR) will open up state land to haying and grazing to help farmers impacted by severe weather conditions.  "This has been one of the most challenging weather patterns Iowa farmers have ever had to face and we want to be able to provide some additional options to our livestock producers," said DNR Deputy Director Bruce Trautman.

Most state lands in Iowa do not have proper fencing for cattle so farmers wanting to use the land for grazing would be responsible for setting up temporary electric fencing and watering tanks, making haying more likely to be the most viable option.

Haying and grazing can start after July 15 when the primary nesting season for upland birds has been completed.  Land available is primarily the upland grassland areas however there are some additional opportunities for "flash grazing" in northeast Iowa and other limited opportunities on land not currently being leased to farmers.

"The DNR is working very closely with the Iowa Governor's Office and all of our stakeholders to make emergency livestock forage available and to make sure that we are helping those who need assistance the most," said Trautman.

Farmers interested in this opportunity should contact the Iowa Department of Natural Resources at 515-281-5918.



No Interest Loans Available for Conservation in Iowa


Iowa Secretary of Agriculture Bill Northey announced that the Iowa Department of Agriculture and Land Stewardship has $865,000 of available through a no-interest revolving loan fund to help farmers install conservation practices.

The funding is available through all local Soil and Water Conservation District Offices, which are located with the USDA office in each county. Loans made under this program can be used to fund conservation practices that protect soil and water resources. Examples include terraces, water and sediment control basins, grade stabilization structures and waterways.

"Farmers understand the importance of keeping the soil on the farm and out of our lakes and rivers and the no-interest loans will help them put additional practices on the ground," Northey said. "Local Soil and Water Conservation District offices are there to work with farmers as they make conservation decisions and find programs that can help get the work done."

In response to request from farmers, the maximum no-interest loan available has been increased to $20,000 with a ten year term. Loan funds can also now be used in conjunction with other programs, including REAP and cost share assistance.

Applications will be accepted and funded on a first come first serve basis through Dec. 1. To apply, contact your local Soil and Water Conservation District office or apply online at www.iowaagriculture.gov.



UPDATE:  ISU Extension Offering Farmland Leasing Meetings in July and August


Farm tenants and land owners are invited to Iowa State University Extension and Outreach farmland leasing meetings during July and August. The 3-hour workshops are designed to assist landowners, tenants and other agri-business professionals with current issues related to farmland ownership, management and leasing agreements.  Each workshop attendee will receive a set of beneficial materials regarding farm leasing arrangements and farmland ownership. Resources on farmland surveys and leasing arrangements also are provided.

Topics covered include:
-    Iowa Cash Rental Rate Survey and Land Values Survey
-    Comparison of different types of leases
-    Lease termination
-    Impacts of yields and prices
-    Calculating a fair cash rent
-    Use of spreadsheets to compare leases
-    Issues unique to this year’s production and an outlook for 2014.
-    Available Internet resources

Here are some of the meetings being planned in Western Iowa...


Farm Leasing Arrangements Meeting

Date/Time:  7/26/2013 - 9:30 AM - 12:00 PM
Location:  Montgomery County Extension    
Address:  400 Bridge St. Suite 2, Red Oak  IA  51566    
Contact:  Stephanie Langner, 712-623-2592 or slangner@iastate.edu    
Registration:  Yes
Registration Fee:  $15.00

Farmland Leasing Meeting

Date/Time:  7/30/2013  6:30 PM - 9:00 PM
Description:  This workshop will feature facilitated discussions, training material, and an informational booklet. Melissa O'Rourke, Farm Management Field Specialist with ISU Extension, will facilitate this workshop. Registration fee is $20.00 per person if pre-registered, $25 at the door. Please preregister by July 26th.
Contact:  Mary Sechler, 712-225-6196 or sechler@iastate.edu    
Location:  Western Iowa Tech Community College, 200 Victory Dr, Cherokee  IA  51012

Farmland Leasing and Land Value Meeting

Date/Time:  8/1/2013  6:30 PM - 9:00 PM
Description:  Melissa O'Rourke, Extension Farm Management Field Specialist will present the latest information on farmland leasing and the land values in Northwest Iowa at this education event. Contact the Plymouth County Extension Office at 712-546-7835 for information or to register for this site. The registration fee is $20/person if you pre-register and $25 if you register at the door.
Contact:  Janelle Johnson, 712-546-7835 or janelle@iastate.edu    
Location:  Plymouth County Extension Office,  251 12th St. SE, Le Mars  IA  51031    
Registration:  Yes
Registration Fee:  $20.00    
Registration Deadline:  7/31/2013

The leasing meetings being held across Iowa are facilitated by farm management specialists with ISU Extension and Outreach. A listing of county extension offices hosting the meetings is available on the ISU Extension and Outreach calendar (http://www.extension.iastate.edu/calendar/ShowList.asp?Month=7&Year=2013&Category=13|Financial+Management+%26+Strategic+Planning&County=All+Counties&CountiesScope=) – check both months for a complete list of meeting dates, locations and links to more information.  Locations will be added as they become available, or contact your county extension office to find the nearest meeting location.



Eight U.S. and Canadian Meat and Livestock Organizations Challenge USDA Country-of-Origin Labeling Rule in U.S. District Court

            Eight organizations representing the U.S. and Canadian meat and livestock industries filed suit in the United States District Court for the District of Columbia to block implementation of a mandatory country-of-origin labeling (“COOL”) rule finalized by the U.S. Department of Agriculture in May 2013.

            In their complaint, the meat and livestock organizations explained that the final rule violates the United States Constitution by compelling speech in the form of costly and detailed labels on meat products that do not directly advance a government interest.  In addition, the organizations explained that the 2013 regulation exceeds the scope of the statutory mandate, because the statute does not permit the kind of detailed and onerous labeling requirements the final rule puts in place, and that the rule is arbitrary and capricious, because it imposes vast burdens on the industry with little to no countervailing benefit.

           Plaintiffs include the American Association of Meat Processors, American Meat Institute, Canadian Cattlemen’s Association, Canadian Pork Council, National Cattlemen’s Beef Association, National Pork Producers Council, North American Meat Association, and Southwest Meat Association.

            In the complaint, the organizations explained that the new and complex country-of-origin labels required for meat and poultry sold at retail constitute “compelled speech.”  Under the U.S. Constitution, commercial speech may be compelled only where it serves a substantial government interest—for example, if the compelled speech is aimed at preventing the spread of a contagious disease.  Because these labels offer no food safety or public health benefit, yet impose costs the government modestly estimates at $192 million, the government cannot require them.

          “All livestock and meat processed at federally inspected establishments in the United States and sold in interstate commerce are subject to the same health and safety requirements, as prescribed by the Federal Meat Inspection Act and the Poultry Products Inspection Act,” the complaint states.   “Those products are also graded for quality according to a system administered by AMS [Agricultural Marketing Service] without variation based on where an animal was born or raised.  In short, beef is beef, whether the steer or heifer was born in Montana, Manitoba, or Mazatlán.  The same goes for hogs, chickens, and other livestock.”

            The organizations also explain in their complaint that in addition to violating the Constitution, the new rule also violates the Agriculture Marketing Act because it exceeds the authority granted to USDA in the 2008 Farm Bill.  While Congress mandated COOL, the statute does not permit labels that detail where animals were born, raised and slaughtered -- yet that is what USDA will now require.  

            Finally, the meat and livestock organizations explain that the COOL rule is arbitrary and capricious.  The rule will fundamentally alter the meat industry and pick winners and losers in the marketplace with no benefit to anyone—and at great harm to many meat companies, especially those located along U.S.-Mexico or U.S.-Canada borders whose companies depend upon a steady supply of livestock that may have been born in another country.  For example, some Texas-based companies that rely on Mexican-born, but U.S.-raised and -slaughtered cattle will incur dramatic segregation costs that place their businesses at serious risk.  Companies along the U.S.-Canadian border will face the same issue.  And because retailers must implement the new labeling requirement, they, too, will face onerous segregation burdens in ensuring that meat from animals with multiple countries of origin is not packaged together.

          USDA proposed the new rule in March after the World Trade Organization (WTO) panel ruled in response to a complaint by Canada and Mexico that the existing country- of- origin labeling requirements violated the United States’ WTO obligations.  In a highly illogical move, USDA made COOL requirements even more complex and discriminatory against foreign meat and livestock, and Canada and Mexico have already made clear that the new rule does nothing to ease the concerns that prompted their original complaint.

          In fact, retail organizations have conveyed that the cost of segregating, tracking, and labeling meat according to these complex new rules will force them to reject meat sourced from Canada or Mexico and stock only meat with the designation “Born, Raised, and Slaughtered in the United States.”  Specifically, the complaint notes that new labels will need to be larger, and many grocers will have to acquire new weighing and labeling machines to handle the complex sorting of packages for each possible label.  Canadian cattle and hog producers have made clear that they will have to accept steep discounts to make up for the downstream production costs faced by processors and retailers, according to the complaint.

            “Sorting and tracking livestock and labeling meat by the various ‘routes’ that livestock may take on the way to market is needlessly complex with no measurable benefits,” said AMI Senior Vice President of Regulatory Affairs and General Counsel Mark Dopp.  “Shoes, for example, may say ‘Made in the USA.’  They do not say ‘Leather from cattle born in Canada, harvested in the USA, tanned in South Korea and processed in the USA, yet that is the sort of labeling that we are now being forced to apply.”

            “Congress mandated country-of-origin labeling for meat and poultry -- not lifetime itinerary labeling,”  Dopp concluded.  “Segregating and tracking animals according to the countries where production steps occurred and detailing that information on a label may be a bureaucrat’s paperwork fantasy, but the labels that result will serve only to confuse consumers, raise the prices they pay, and put some producers and meat and poultry companies out of business in the process.  Everyone loses under this rule.”



Heart-Check Mark Continues to Drive Beef Sales


Following the success of the 2011 American Heart Association (AHA) Food Certification Program pilot test with two grocery chains, the beef checkoff has collaborated with retailers to capitalize on the program’s ability to drive incremental beef sales and build customer loyalty. The results from that initial pilot are used to compel other retailers to display the American Heart Association’s Heart-Check Mark on-pack. Now retailers are seeing firsthand the impact of the program and the benefits of promoting beef's role in a healthy diet and helping nutrition-conscious shoppers make healthy choices in the meat case.

Hundreds of stores across the U.S. currently display the Heart-Check mark on certified beef items in the meat case and have signed up through the beef checkoff to participate in the American Heart Association Food Certification Program. Two such retailers include California-based Save Mart Supermarkets and Texas-based H-E-B.

Save Mart Supermarkets, which owns and operates 226 stores in Northern California and Northern Nevada under the Save Mart, S-Mart Foods, Lucky, Maxx Value Foods, and FoodMaxx banners, was an early adopter of the American Heart Association Food Certification Program for beef. In 2012, the chain rolled out four of the certified beef items -- Top Sirloin Petite Roast, Top Sirloin Filet, Top Sirloin Kabob and Top Sirloin Strips -- and in February, Save Mart implemented a promotion to increase shopper awareness of the cuts and generate demand for beef with their shoppers. With support from the beef checkoff, the retail chain held nearly 120 cooking and tasting demos of the Top Sirloin Stir Fry in their top 50 highest beef volume stores. Month-long featuring of the cuts, special pricing, in-store radio, on-pack labels and point-of-sale also supported the promotion.

The certified Top Sirloin Stir Fry item that was featured in the demos experienced a 19 percent increase in sales during the promotional period. In addition, overall sales for American Heart Association-certified cuts continued to grow another 2 percent the month post-promotion, with Top Sirloin Stir Fry sales seeing an additional 4 percent growth.

H-E-B is another retail chain that’s seen success in working with the checkoff on the American Heart Association Food Certification Program. H-E-B introduced five of the certified cuts in January and is currently working with the beef checkoff on a promotion around the Top Sirloin Filet which will make the product available in 300 of its locations, up from the 100 stores that previously sold the cut merchandised with the Heart-Check Mark. The promotion is running now through July 9 and again July 24-Aug. 6 and includes weekly featuring of the Top Sirloin Filet and an offer for customers to receive a free salad with their purchase of two packages of the AHA-certified Top Sirloin Filet.

The stores will also conduct demonstrations that will feature the filets prepared with the package recipe rub, served over the free salad mix with a light dressing. The beef checkoff created and provided labels, case dividers, recipes for demo and artwork for ads to support the program.

“The reinforcement to consumers that beef offers not only a delicious eating experience but one the American Heart Association has specifically identified as ‘heart-healthy’  is positive news for the checkoff,” says Jeanne Harland, a beef producer from Illinois and chairman of the checkoff's Nutrition and Health Subcommittee. “We are definitely seeing the American Heart Association-certified beef cuts gaining awareness among consumers and retailers are recognizing the value they bring in the meat case. It’s exciting to literally see our checkoff dollars at work in the meat case, providing return on investment to producers, but also providing that visible affirmation to consumers that they are making a nutritious purchase for mealtime. Beef can do a heart good!”



Farm, Consumer and Rural Organizations Urge Rejection of Smithfield Takeover


A coalition of farm, rural and consumer organizations delivered a letter to the members of the Committee on Foreign Investment in the United States urging them to recommend that the Obama administration reject the proposed Shuanghui International Holdings, Ltd. acquisition of Smithfield Foods. The letter details the significant risks of a Shuanghui takeover of Smithfield to food security, consumer food prices, food safety, farm and rural economies in the United States and national security.

“The White House should reject the sale of America’s food supply,” said Tim Gibbons with the Missouri Rural Crisis Center. “This proposed acquisition is a prime example of how expanded corporate consolidation in agriculture has gone too far, resulting in lack of markets for independent producers, and damaging effects on our rural economies and country. The Smithfield purchase turns over American farms to a consolidated, globalized meatpacking industry that leaves rural communities to clean up the waste while China gets the meat.”

Shuanghui’s purchase of Smithfield would transfer ownership of a company that controls more than a quarter of American pork production and buys or contracts a quarter of U.S. hogs. The proposed deal is expected to shift Smithfield pork production towards exports to feed the Chinese market, which would likely significantly increase retail pork prices for American consumers. It would make many U.S. hog producers dependent on a foreign firm for hog contracts and prices.

“U.S. farmers already sell livestock on a concentrated market where they often cannot get fair contract terms or receive fair prices and this cross-border takeover will worsen the conditions farmers face,” said Ben Burkett, Mississippi farmer and President of the National Family Farm Coalition.

The letter also demonstrates the risks the takeover could pose to U.S. food safety. First, the Chinese firm operates in one of the most notoriously lax food safety systems in the world, and the management culture clashes between Shuanghui and Smithfield could weaken the safety at Smithfield’s U.S. plants. Second, Shuanghui would eventually want to export pork products to the United States, which would expose U.S. consumers to the host of food safety scandals that plague the Chinese food system.

“As recently as 2011, Shuanghui managers were sentenced to prison for allowing illegal veterinary drugs into the pork supply in China and we don’t want to expose American consumers to such indifferent food safety standards,” said Food & Water Watch executive director Wenonah Hauter. “If Shuanghui eventually exported bacon, sausage or ham to the United States under the well-known Smithfield brands like Armour or Gwaltney, American consumers would not even know, because processed pork is exempt from country of origin labeling.”

The letter was delivered to the Cabinet Secretaries that make up the Committee on Foreign Investment in the United States on the eve of the U.S. Senate Agriculture Committee oversight hearing into the proposed acquisition of Smithfield. It was signed by Campaign for Contract Agriculture Reform, Coalition for a Prosperous America, Center for Rural Affairs, Contract Poultry Growers Association of the Virginias, Food & Water Watch, Iowa Citizens for Community Improvement, Land Stewardship Project, Missouri’s Best Beef Co-Operative, Missouri Farmers Union, Missouri Rural Crisis Center, National Family Farm Coalition, National Farmers Union, Nebraska Farmers Union, Organization for Competitive Markets, Rural Advancement Foundation International—USA, R-CALF USA and Western Organization of Resource Councils.



Cow Prices Impacted by U.S. and World Weather

Tim Petry, Livestock Economist, North Dakota State University Extension Service


Cow prices, while historically strong, have been below last year's record high levels for much of 2013. There are several reasons for the lower prices. Total cow slaughter was up 3.4% in the first half of 2013 compared to the previous year. In 2012, the meat industry was utilizing less trim from slaughter steers and heifers due to the lean fine textured beef media event. So, prices for 90% lean wholesale boneless beef from cows were record high in the first half of 2012. Higher beef imports in the first part of 2013 from drought impacted New Zealand also tempered cow prices.

So far this year beef cow slaughter was up just under 3.4% while dairy cow slaughter was up over 3.4%. Beef cow slaughter actually declined about 10% in January and February but then increased about 12% compared to last year since then. The lingering drought in the Western U.S., above average calving losses due to severe spring snow storms in the Northern Plains, and record high hay prices likely contributed to the higher beef cow slaughter.

Dairy cow slaughter has been above last year's levels for most of 2013. High feed costs and the closing of a Canadian cow slaughter plan have contributed to the higher slaughter. Through June 22, imports of cows from Canada totaled 147,785 head compared to 72,374 for the same period last year.

Through April, U.S. beef imports were 3.4% above 2012 due to a 35% increase in shipments of beef from drought impacted New Zealand. Australia is usually the leading beef supplier, but New Zealand is leading the way in 2013. Beef imports from all other countries including Australia were actually down 6% with Australian imports down almost 10%. Rains in New Zealand in late April and into May reduced dairy herd liquidation and beef exports there. May beef imports from New Zealand fell below last year and lead to total beef imports from all countries through May at 1% below 2012.

Cow prices in the second half of 2013 will continue to be impacted by weather and its effect on pasture and range conditions and hay supplies and prices. Moisture conditions are much better than last year in the Eastern half of the U.S., but the West remains very dry. For the week ending July 6, 49% of U.S. pastures and ranges were rated good and excellent compared to just 21% last year.  Twenty seven percent of pastures and ranges were poor and very poor compared to 50% last year.

USDA-NASS reported average U.S. alfalfa hay prices for June at $220 per ton, down from $221 in May but up from the $201 last year in June. Other hay prices for June were reported at $147, down from $154 in May and $162 in April but higher than the $133 in June 2012. Other hay in June ranged from a low price of $84/ton in North Dakota to a high of $230 in both Colorado and Washington.

If Mother Nature cooperates, the potential for both lower cow slaughter and beef imports in the second half of 2013 exists. That could support cow prices at higher levels than last year. However, an expansion of drought and continued high cow slaughter and high hay prices would pressure prices.



Pork Producers Can See Promised Land


Pork producers can see the "promised land" of lower feed costs, which will provide an extended period of profitability. According to Purdue University Extension economist Chris Hurt, those lower costs are not here yet but could be just weeks away as prospects for U.S. corn and soybean production have improved in recent days. Producers can see prospects for $2.00-per-bushel lower cash corn prices by harvest and $130-per-ton lower soybean meal prices in the July to October futures spread. While they see the market's anticipation of lower feed costs on the near-horizon, they recognize that there are still unknowns about acreage, weather for the remainder of the growing season, and early frost. But today's signals suggest they should begin to get the celebration under way.

"Feed-cost reductions, if realized, will be of record magnitude," said Hurt. "Estimated total costs for farrow-to-finish hog production will drop from $69 per live hundredweight in the second quarter of 2013 to about $56 in the final quarter of 2013. The $13 drop is the largest on record."

Hurt explained that the 2012 drought created extreme problems for pork producers and gave them little ability to avoid large losses. Much of the feed price rise occurred in about three weeks from mid-June to early July 2012. This gave pork producers almost no time to adjust their breeding programs and meant that all the pigs "in process" were going to consume very expensive feed and result in losses. In addition, they had little economic incentive to cut back on their breeding herds. This was because the time from breeding to market approaches one year and meant that sows bred in the summer of 2012 would have pigs marketed in the spring and summer of 2013 when the outlook called for a return to profitability.

"The drought put pork producers in a bind," Hurt said. "It resulted in large losses from mid-2012 to mid-2013. Their best alternative was to keep breeding and hope for more normal crop production in 2013 and for lower feed prices. That hope is now much closer to reality and means the outlook for the next 12 months is the polar opposite of the past 12 months," he said.

Compared to the last 12 months, Hurt said that corn prices are expected to be nearly $2.00 per bushel lower in the coming 12 months. Soybean meal prices are expected to be about $100 per ton lower on average. The combination of these two factors reduce estimated total costs by about $13 per live hundredweight. Hog prices are expected to be somewhat higher in the next 12 months as well.

"The bottom line is that losses of $21 per head during the last 12 months will give way to projected profits of $16 per head in the 12 months spanning the last half of 2013 and the first half of 2014," Hurt said.

In the June Hogs and Pigs report from USDA, producers who were surveyed in early June were keeping any expansion plans on hold, waiting to see if crop production would be restored in 2013. "The size of the spring pig crop was unchanged from the previous year reflecting a status-quo attitude in the industry," Hurt said. "Summer farrowing intentions were also unchanged and fall farrowing intentions were up slightly."

Hurt added that given the increasing realization of better crop production, pork producers are expected to begin some modest expansion late this summer and especially in the fall. The industry is expected to be profitable at least through next summer.This expansion may be in the 1 to 3 percent range over the coming year.

"In the longer run, producers will want to examine the yet-to-be-answered question of where feed prices will settle," Hurt said. "Corn prices under $5.50 per bushel could stimulate some expansion. The farther below $5.50 they go, the greater the expansion stimulus will be.

"Many analysts, including me, believe markets are entering a period in which grain and oilseed supplies will catch up to demand growth," Hurt said. "This means a period of increasing crop inventories, reduced feed prices, and reduced feed price volatility. All in all, a more favorable financial period for animal producers is expected. It should also be a period of increased animal production and recovering per capita consumption by our domestic and foreign meat customers," he said.

Hurt concluded that the last six years have been an unusual period for the pork industry in that feed costs have often been the biggest single driver of the financial outlook. "If crop production returns to more normal levels, feed costs will be less important and the industry will see the primary drivers shift to pork supplies, domestic meat demand, and exports," he said. "Pork producers can see the new era from current forward prices, and in another 30 to 60 days they may have the opportunity to cross over into that promised land."



Updated FARM Program Animal Care Manual Available to Dairy Producers

The National Milk Producers Federation (NMPF) has released a newly-revised animal care reference manual, containing the guidelines that comprise the core of the National Dairy FARM (Farmers Assuring Responsible Management) Program. The new manual can be found online at www.nationaldairyfarm.com.

The FARM Program was created four years ago to establish a national, voluntary dairy animal care program to bring consistency and uniformity to the practices used on America’s dairy farms. The original reference manual was used to guide animal care practices on farms that have enrolled in the program since 2009; this new manual will now be provided to those both currently enrolled, and those who will become part of the program going forward.

“This new manual reflects the continuous improvement process that is a hallmark of the FARM program,” said Jim Mulhern, Chief Operating Officer of NMPF. “It contains important revisions from the first manual, and it reflects both evolving management practices on the farm, as well as expectations for animal care from the entire dairy value chain.”

A variety of industry stakeholders provided input into the revision process, Mulhern said, and the end result includes findings from the third-party verification process that began in 2011. Among the improvements in the new manual is the overall checklist used to evaluate farms has been streamlined from 77 questions to 48, “simplifying the process for farmers, and more effectively capturing the pertinent information that animal care experts believe is relevant to proper dairy animal care,” Mulhern said.

In addition to the streamlined on-farm evaluation process, key areas of change in the areas of medical procedures, animal observations and housing include:

Medical Procedures:

·         A guideline on horn disbudding was added: Calves are disbudded at eight weeks of age or earlier and with appropriate use of analgesics and/or anesthetics.
·         Language was added to identify some best practices for disbudding, castration and extra teat removal.
·         Information is provided on proper branding techniques, as some states require this for animal ID.
·         Language was added encouraging the elimination of routine tail docking by 2022.

Animal Observations:

·         The hygiene guideline remains the same based on data collected by the FARM program. The locomotion guideline was changed to only score milking and dry cows. Two other guidelines were added to document practices in place to improve lameness.
·         The body condition score guideline was reduced to 1 percent of all animals in all pens from 10 percent because the FARM data showed that almost 98 percent of the farms in the program met this guideline. A second guideline was added to document practices are in place to improve an animal with poor condition.
·         The hock and knee lesion guideline was changed to score only the milking and dry cows. All experts agreed and the FARM data showed that this is the most high risk group on the farm for this type of injury.
·         A body abrasion section was added to allow for the collection of data on other body abrasions, besides knees and hocks, looking at all the animals on the farm. The FARM program will review the data collected after three years and decide if a guideline for body abrasions needs to be developed. The scoring system will target animals with an obvious swelling, lacerations or severe lesions of the skin.

Housing:

·         The housing section was streamlined to remove the separate section on housing types and creating guidelines that can be utilized for all systems by referring to lying areas.

Other areas such as feed and water have also been streamlined in this manner to make the evaluation more effective.

To order hard copies of the FARM Animal Care Reference Manual or the FARM Quick Reference User Guide, fill out the order form that can be found on the FARM website. The new guidelines will be implemented in the on-farm evaluation process later this summer.

The National Dairy FARM program currently has participant farms producing 70% of the nation’s milk supply, through 52 cooperatives and proprietary processors. More than 8,000 on-farm evaluations have been completed.



CWT Assists with 1.8 Million Pounds of Cheese and Butter Export Sales


Cooperatives Working Together (CWT) has accepted seven requests for export assistance from Bongards Creameries, Dairy Farmers of America and Maryland & Virginia Milk Producers Cooperative Association to sell 833,347 pounds (378 metric tons) of Cheddar and Monterey Jack cheese and 992,080 pounds (450 metric tons) of butter to customers in Asia, the Middle East and Central America. The product will be delivered July through December 2013.

Year-to-date, CWT has assisted member cooperatives in selling 67.757 million pounds of cheese, 53.385 million pounds of butter, 44,092 pounds of anhydrous milk fat and 218,258 pounds of whole milk powder to 32 countries on six continents. These sales are the equivalent of 1.790 billion pounds of milk on a milkfat basis.

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.



Colombian Importer Buys U.S. Corn for the First Time in Two Years


Last week, a large Colombian importer, with the guidance of the U.S. Grains Council, of which the National Corn Growers Association is a founding member, networked with U.S. grains exporters in Texas, Alabama and Louisiana resulting in the purchase of more than 787,000 bushels of U.S. corn. This was the importer's first purchase of U.S. corn in more than two years. With seven plants in Colombia, this importer is the largest animal feed manufacturer in Colombia and, thus, the relationship could lead to an important increase in U.S. corn exports to the country.

In 2008, U.S. corn imports accounted for 80 percent of the Colombian corn market. The delay in ratification of the U.S.-Colombian Free Trade Agreement contributed to a decline in U.S. market share. By 2011, U.S. corn accounted for only 21 percent of that market.

NCGA, along with a variety of other organizations, pushed vigorously for passage of the FTA and, in late 2011, this important trade agreement was ratified by the U.S. Congress.

For the past few years, the Colombian importer purchased grain from other South American countries but, as the quality and supply reliability were did not meet his expectations, he now can return to purchasing U.S. corn without paying tariffs in place prior to FTA implementation. As the FTA implementation continues, NCGA expects that more stories of increased market access benefitting U.S. corn farmers will arise.

"This purchase clearly illustrates both why NCGA's work in promoting trade agreements benefits U.S. corn farmers and the effectiveness of its work in collaboration with the U.S. Grains Council," said NCGA Trade Policy and Biotechnology Action Team Chair Jim Zimmerman, a farmer from Wisconsin. "Together, NCGA and USGC can affect real change by promoting policies that open markets and building the relationships that capitalize on said policies. While this work may seem ephemeral, the impact on corn demand has very concrete benefits for farmers."



NE-based Pentair To Be Featured On 'American Farmer'


Pentair is pleased to announce that the company and the Hypro® line of products will be highlighted in the nationally-televised series "American Farmer." The eight-minute video includes interviews with Hypro and University of Nebraska-North Platte experts and details the importance of Pentair's Hypro spray tips for weed control plans. 

"American Farmer" reaches over 500,000 viewers and educates viewers across the United States on the advancements of agriculture and farming.  In this segment, farmers will learn about the innovative technology behind the benefits of Hypro spray tips. It features a variety of visual examples and details about the on-target and on-technology relationship for spray efficacy, drift control, droplet size, drift minimization, optimal application and more. 

The segment is scheduled to air on RFD-TV on the following days:
-    July 30, 2013 at 8:30 a.m. EDT
-    August 20, 2013 at 8:30 a.m. EDT
-    Additional air dates will be communicated in the near future

You can also view the complete segment by going to http://vimeo.com/69581730 or view it on the Hypro Web-Site at www.hyprospraytips.com.

The segment features historical background and product design objectives by Pentair's Product Manager for Global Spray Technology, Gene Schellhorn and Vice President of Global Agriculture, Dave Huml.

The piece also features a testimonial from Greg Kruger, weed scientist at the University of Nebraska, conveying the importance of precision spray technology as it relates to efficiency and environmental stewardship. Pentair partners with the University of Nebraska's West Central Research and Extension Center in North Platte, Nebraska for testing and validating spray tips.



New Technology Improves Yield Measurement Accuracy, Resulting in Improved Decision-Making


Yield monitors are meant to give you information you can use to make sound decisions on hybrids and field management zones, but they often lack the accuracy needed to make the best decisions.

That’s according to Doug Sauder, Project Manager for Precision Planting. “Our new YieldSense™ system changes that,” he says. “It changes the way grain flow is measured, with a sensor and paddle that eliminate the variations of current yield monitor technology. Current systems tend to over-report yield at low flow rates and under-report at high flow rates. So, on average, they can be close. But that isn’t good enough when you are making decisions on variable rate crop plans or hybrid selection.”

In addition, Sauder says, YieldSense needs no calibration to maintain its accuracy. Sauder notes. “Load after load, pass after pass, you get yield data you can trust. Our testing has shown that even the most diligent calibration program doesn’t improve accuracy over multiple loads. We have developed a system that locks in accuracy without calibration.”

Testing by Precision Planting reveals that, while reported field totals from current systems may be within a few percent of elevator measurement, they’re off by 4% or more on about half of individual loads. “That’s not good enough to make critical decisions about hybrids and yield management zones,” says Sauder. “YieldSense achieves that accuracy, or better, 9 times out of 10, without calibration.”

YieldSense works with the 20/20 SeedSense® monitor. It includes a new flow sensor, elevator chain and paddle. Adding the FieldView™ app to an iPad delivers high-definition mapping.

YieldSense works with corn, soybeans and wheat. It is compatible with John Deere 50/60/70/S Series combines, and requires a CAN-based moisture sensor for operation.



Mosaic Launches CropNutrition.com


Recent research is definitive: As much as 60 percent of yield depends on soil fertility. Unfortunately, the science behind this imperative aspect of farming isn’t always so clear, confusing even the most veteran agriculture professionals. A new initiative from The Mosaic Company aims to better explain the various scientific aspects vital to achieving maximum yield.

Mosaic’s CropNutrition initiative is an integrated campaign designed to inform growers and retailers about key issues and trends affecting soil fertility. By using various vehicles to spread this message, Mosaic hopes to spread awareness of the fact that, for many farmers, the key to higher yield is right under their feet.

At the center of this program is CropNutrition.com, an educational digital hub that serves as a one-stop soil fertility resource for ag retailers, growers and industry experts looking to better understand the yield-sensitive scientific aspects of soil.

“What we know about fertility’s impact on yield is changing,” says Dr. Kyle Freeman, Manager of New Product Development for The Mosaic Company. “With so much attention paid to driving higher yields, the constant flow of new, highly scientific studies and information can be overwhelming for farmers and retailers. CropNutrition.com will take that information and not only make it easier to understand, but also applicable to real farm land.”

CropNutrition.com combines the best research and soil fertility resources from The Mosaic Company’s previous crop nutrition resource (Back-to-Basics.net) with new information from Mosaic’s global network of research partners. Additionally, research findings and insights from The Mosaic Company’s top agronomists provide timely, useful information on soil fertility.

CropNutrition.com delivers crop nutrition expertise in various ways, including dynamic videos, timely and topical blog posts, an Agronomy Resource Center, an interactive periodic table of essential crop nutrients and an extensive, searchable library.

Understanding that a crop’s success starts at the foundational level, The Mosaic Company has a team of top agronomists focused on helping farmers and retailers understand the impact a balanced approach to crop nutrition can have on yield. The CropNutrition initiative will provide numerous vehicles for The Mosaic Company to share the expertise and agronomic knowledge needed to understand the soil better, grow crops that are stronger, and harvest yields that are higher.    

“The goal of the CropNutrition initiative is simple — to give retailers and growers information on soil fertility, including the important role macronutrients and micronutrients play in driving yield increases, found right at their fingertips,” Dr. Freeman says. “While technological advancements in seed genetics and precision agriculture have made next-level yields possible, many have not made necessary adjustments to their approach to crop nutrition, which, ultimately, limits yield potential. The Mosaic Company is committed to expanding knowledge and providing resources to help retailers and their customers take yields to the next level.”



No comments:

Post a Comment