Friday, September 20, 2013

Friday September 20 Cattle on Feed + Ag News

NEBRASKA CATTLE ON FEED DOWN 7 PERCENT 

Nebraska feedlots, with capacities of 1,000 or more head, contained 2.09 million cattle on feed on September 1, according to the USDA’s National Agricultural Statistics Service. This inventory was down 7 percent from last year.  Placements during August totaled 440,000 head, down 6 percent from 2012.   Fed cattle marketings  for  the month of August  totaled 420,000 head, down 6 percent  from  last year.   Other disappearance during August totaled 10,000 head, down 33 percent from a year ago.


United States Cattle on Feed Down 7 Percent

Cattle and calves on feed for slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 9.9 million head on September 1, 2013. The inventory was 7 percent below September 1, 2012.

Placements in feedlots during August totaled 1.79 million, 11 percent below 2012. Net placements were 1.73 million head. During August, placements of cattle and calves weighing less than 600 pounds were 405,000, 600-699 pounds were 338,000, 700-799 pounds were 430,000, and 800 pounds and greater were 615,000. Placements for the month of August are the lowest since the series began in 1996.

Marketings of fed cattle during August totaled 1.88 million, 4 percent below 2012. Monthly marketings for August are the second lowest since the series began in 1996.


Sept 1 2013 Cattle on Feed

State             (1,000 head, % of Sept 1, 2012)

Colorado ........:       830            89     
Iowa ..............:       550            93       
Kansas .........:      1,980            91       
Nebraska ......:     2,090            93       
Texas ...........:       2,430            93      


Cattle Placed on Feed in Aug 2013

State                      (1,000 head, % of Aug, 2012)

Colorado ..........:              145            76    
Iowa ................:                66            87      
Kansas ............:               385            89      
Nebraska .........:              440            94      
Texas ..............:               450            91      


Cattle Marketed in Aug 2013

State                  (1,000 head, % of Aug, 2012)

Colorado ..........:        180            92    
Iowa ................:         73             87     
Kansas ............:         395            98    
Nebraska .........:        420            94     
Texas ..............:          495            97      



Nebraska Farm Bureau’s “Join the Drive” Campaign Aids Farmers, Ranchers in Tax Reform Talks


The Nebraska Farm Bureau is inviting farmers and ranchers from across the state to join Farm Bureau and its members in engaging in the discussion about state tax reform through the organization’s “Join the Drive, Help Steer Nebraska Taxes” campaign. The campaign was developed in response to ongoing talks about broader state tax reform initiated in the 2013 legislative session.

Discussions about tax reform are ongoing through the legislature’s Tax Modernization Committee which has been charged with identifying possible changes for consideration in the 2014 legislative session, said Nebraska Farm Bureau President Steve Nelson.

“With the Committee actively seeking input from Nebraskans, it is important they hear from Farm Bureau members about the various ideas that are being discussed. The “Join the Drive” campaign was started to bring awareness about the opportunities to engage in the discussion, but also to put information and resources into the hands of our farmers and ranchers,” said Nelson.

Farm Bureau is encouraging members to use the “Join the Drive” campaign to make property tax relief a major part of the legislature’s conversations. Agriculture landowners represent less than 3 percent of Nebraska’s overall population, but pay nearly a quarter of the total property taxes collected statewide.

Farm Bureau is also encouraging members to let senators know that putting sales taxes on purchases of business and agriculture inputs, machinery and equipment is not good tax policy.

“There were proposals last session to go in that direction. Those initiatives would have significantly added to the average farm and ranch family’s tax burden, and it’s important the Committee understand tax policy of that type would not only hurt farm families, but rural Nebraska and state’s broader economy,” said Nelson. 

Farm Bureau has developed a one-stop location on its website at nefb.org for the “Join the Drive” campaign to help Farm Bureau members interested in the tax reform topic with background information, ways in which to engage and other resources.

“With the legislature’s tax committee holding hearings across the state in late September and early October now is the time for Farm Bureau members to let their voice be heard. We hope other farmers and ranchers will join us,” said Nelson.



Innovating for the Future: 2013 Environmental Stewards Combine Ingenuity with Integrity


The Pork Checkoff’s Environmental Stewards subcommittee has selected four pork farms to be honored as the 2013 Pork Industry Environmental Stewards.The farms join other pork operations across the country in their commitment to protecting natural resources while minimizing the environmental footprint. This year’s awards will be presented to:

Bacon Hill Farm, Dodge, Neb. –

Fifth-generation family famers Danny and Josie Kluthe seamlessly mix pork production and cutting-edge technology. An anaerobic manure digester on site uses natural gas to supplement fuel for their farm’s vehicles and help provide electricity to area homes. The Kluthes have six 1,000-head finishing barns and market about 15,000 finisher hogs annually. They grow corn and soybeans on 280 acres and raise 100 chickens every year for family and friends. Being good environmental stewards is key to all of their endeavors at Bacon Hill.

Russell Brothers LLC, Monticello, Iowa –

Jason and Sarah Russell are building on a family legacy that can be traced back to the Civil War when the Russell family established its roots in Linn County, Iowa. They farm with Jason’s brother, Eric, pigs, corn, soybeans and hay on 390 owned acres and 160 custom-farmed acres.They market more than 14,000 hogs a year as part of The Maschhoff production network.A 50-kilowatt wind turbine helps the farm conserve electric energy by generating 60 to 80 percent of the farm’s needs.

Krikke Pork, Greenwich, Ohio –

Howard and Jane Krikke raisereplacement gilts for Kalmbach Swine Management, based in Upper Sandusky, Ohio.Since 2006, Krikke Pork has been home to two 2,500-head wean-to-finish buildings, bordered on the south and west by 30 acres of native hardwoods.State-of-the-art technology is the watchword in the two barns, which house 5,000 wean-to-finish pigs. This includes tunnel ventilation, drop curtains, self-contained pits, flip-to-clean feeders and Integra-link feed tank monitoring.

Blue Mountain Farm, Milford, Utah –

Blue Mountain site 42304, located in the high desert of southern Utah, produces 55,000 hogs annually in 10 feeder-to-finish barns. The farm, a Murphy-Brown subsidiary and offshoot of Smithfield Foods, takes steps to minimize its environmental footprint and give back to the community, says Jim Webb, environmental, safety and public affairs manager for Circle Four. Blue Mountain farm supplies manure to Alpental Energy Partners, which uses anaerobic digesters and large Cat engines to produce electricity.

“The forward-thinking 2013 Stewards focus on innovative solutions and ideas on their farms,”said Lynn Harrison, chair of the Environmental Stewards selection subcommittee and former president of the National Pork Board.“From turning manure into fuel to operate farm vehicles, to generating enough power to light up to 3,000 homes, the 2013 Stewards are putting their own stamp on raising high-quality pork for customers. And like other farms, they are doing it while adhering to the industry’sWe CareSMethical principles.”

The award, now in its 19th year, recognizes producers who demonstrate a firm commitment to safeguarding the environment and their local communities. The winners were chosen earlier this year based on their manure management systems, water and soil conservation practices, odor-control strategies, farm aesthetics, neighbor relations, wildlife habitat promotion and innovative ideas used to protect the environment. The judges represented pork producers and environmental organizations.

Their peers will recognize the 2013 Environmental Stewards at the 2014 National Pork Industry Forum next March in Kansas City, Mo. To view videos featuring their farms, go to pork.org.



Wellman Named to CME Group’s New Agricultural Markets Advisory Council


American Soybean Association Chairman Steve Wellman of Syracuse, Nebraska, met with fellow farm leaders during today’s inaugural meeting of the CME Group’s newly-formed Agricultural Markets Advisory Council (AMAC). The AMAC consists of representatives of CME Group’s participants, including grain merchandisers, millers and food producers; leaders from agricultural organizations like ASA; and members of the academic space. The AMAC is co-chaired by CME Group Executive Chairman and President Terry Duffy, and former Agriculture Secretary Dan Glickman.

According to its charter, the purposes of the AMAC are to “facilitate an open dialogue among agricultural organizations, commodity groups and academics; gain insights from its members, and address the macro issues that impact their respective constituents as well as agricultural markets in general; drive deeper collaboration among the farmer and rancher and agriculture community and CME Group; provide a forum where participants involved in traditional production agriculture, newer participants in the food sector and CME Group can discuss relevant market issues and research; and identify areas of mutual success that advance the objectives of CME Group and its agricultural participants, and in so doing also advance the U.S. agricultural economy.

During the meeting, the AMAC heard from Jack Sinclair, Walmart’s executive vice president for food, and discussed the challenges facing the world’s largest food distributor. The group also spoke with Randy Russell, principal at the Washington-based Russell Group, and CME Group Senior Managing Director of Government Relations and Legislative Affairs Linda Rich on policy issues facing agricultural markets.



UNL Food Processing Center Bakes Gluten-Free Cookies for Husker Harvest Days


            One hundred fifteen pounds. That's how much cookie dough students at the University of Nebraska-Lincoln's Food Processing Center prepared to make 2,634 gluten-free cookies for Husker Harvest Days. All in one day.

            The cookies were made for the Nebraska Grain Sorghum Board, which distributed the cookies at Husker Harvest Days Sept 10-12.

            The Nebraska Grain Sorghum Board wanted to promote sorghum in baking the cookies.

            "To make gluten-free cookies, you have to get rid of the wheat flour and sorghum flour is a good replacement," said Laurie Keeler, senior manager for product development in UNL's Food Processing Center.

            The board gave Keeler a recipe, which her students helped to convert into a percentage basis to accommodate for the massive quantities of ingredients. Then the students baked the cookies, about 24 dozen at a time, using the Food Processing Center's Pilot Plant equipment, then cooled and individually packaged each cookie.  Students also assisted in providing the board with the correct ingredient statement and nutritional information for the cookies.

            "It was fun making the cookies," said Miranda Schurr, a senior food science and technology major who helped make the cookies. "I have never really made anything without gluten. It was a learning experience of what you can and cannot use."

            Schurr said that students were surprised at how the cookies turned out.

            "We had our food science club try it and they said they wouldn't have noticed the difference between cookies without gluten and regular cookies," Schurr said. "They were very good."

            Keeler said that she felt students learned a lot about food science from this experience.

            "I think they learned a lot about ingredients and setting up an assembly line," she said.



Iowa Soybean Association strengthens relationships with soybean buyers


With a handshake and a smile, and an occasional embrace, Iowa Soybean Association (ISA) members and staff reassured customers from around the world recently that the state and nation will continue to be a reliable supplier of high-quality soybeans.

Hundreds of soybean buyers and industry officials from 47 countries gathered at The River Center in Davenport for the 2013 U.S. Soy Global Trade Exchange and Midwest Specialty Grains Conference and Trade Show from Sept. 16-18. The purpose of the event was to grow soybean demand and facilitate trade.

The conference and trade show, funded in part by the soybean checkoff, was hosted by the U.S. Soybean Export Council and the Midwest Shippers Association. The ISA was a sponsor. Marketing, transportation and supply and demand seminars, among others, were held. The final day featured tours of John Deere’s World Headquarters in East Moline, Ill.; River Gulf Grain in Bettendorf, a barge loading facility and Lock and Dam No. 14, where U.S Army Corps of Engineers officials provided an overview of shipping on the Mississippi River.

“This conference is absolutely about building relationships and connections. The good news is that many of these (conference goers) are old friends,” says Kirk Leeds, ISA CEO. “That’s important because when they (buyers) go to the market place, the U.S. is not the only supplier. Because of these relationships, (buyers) know when they buy soybeans from the U.S. that these are quality soybeans and they will get them on time.”

After another challenging growing season, buyers seemed most interested in this year’s soybean crop. ISA representatives were peppered with size and quality questions. Harvest has begun on a very limited basis in Iowa, though combines won’t roll on a widespread basis for a couple of weeks.

ISA President Brian Kemp, who farms near Sibley, described crop conditions on his farm and throughout Iowa to interested parties. Many foreign trade delegates visited farms prior to and after the conference.

Kemp says buyers believe Iowa’s farmers – though supplies will be tight --- will meet their needs, noting ISA earned that trust by maintaining close relationships with customers.

“I find it interesting to reconnect with some of the foreign buyers that have visited my farm over the years or met while on some of the international trade missions. The relationships are so important when marketing our soybeans internationally,” Kemp says.

During the last marketing year, the United States exported about 1.8 billion bushels of soybeans valued at $23 billion, according to industry statistics. Exports have nearly doubled since 2000.

That’s because check-off funded efforts has helped turn China into the biggest international destination for U.S. soybeans, according to the United Soybean Board (USB). Last year the country purchased 850 million bushels from the U.S., or more than one out of every four rows grown.

During the conference multiple Chinese companies agreed to purchase 177.5 million bushels of soybeans worth $2.8 billion.

“China needs our U.S friends to plant better and more soybeans,” says Shang Quingmin, director general of China’s National Grains and Oils Information Center.

Deirdre Webb, director of the Irish Grain and Feed Association, says sustainability is very important to European customers. Among other reasons, Webb says she attended the conference to learn how learn more about U.S soybean production.

After speaking with several farmers, Webb says she’s satisfied farmers are taking steps to prevent soil erosion and fertilizer runoff and to ensure future generations have an opportunity to farm.

“It boils down to three words --- know your supplier. These events are really, really important to build the supply chain,” Webb said.

Last year Ireland imported 790,000 tons of soybean meal and hulls for livestock feed, she says.

Big or small, ISA member Larry Marek says all buyers are important. The United Soybean Board director from Washington said the conference helps to put a face to products.

“(Buyers) like to know their suppliers,” says Marek. “The more they know, the better customers they become.”



Number of Injuries to Farm Children Going Down


There is some good news to report during this year's National Farm Safety Week. According to the National Children's Center for Rural and Agricultural Health and Safety, the number of non-fatal injuries to children on family farms continues to decline steadily.

The NCCRAHS says preliminary figures from the Childhood Agricultural Injury Survey shows that total reported injuries to children on farms since 1998 were less than in previous years. However, there was a slight rise in the rate of injury for non-working children, which would include young children brought into the worksite by parents because of a lack of other childcare.

NCCRAHS Director Barbara Lee, Ph.D. says the National Children's Center has been increasing its focus on non-working youth, who account for more than half of non-fatal injuries to children younger than 10 years of age. The center is renewing its campaign to 'Keep Kids Away from Tractors' in the wake of several high-profile runover deaths this summer in which children as young as one year of age were riding on tractors as passengers.

"In addition we have launched a Web-based effort, 'Cultivate Safety,' to reach more parents of household farm youth with straightforward guidance on evidence-based safety strategies," Dr. Lee said, adding that fatal injuries to youth on farms remains steady at about 100 per year.

The CAIS collects information on nonfatal injuries to youth less than 20 years of age on farms. Injury data includes both work and non-work injuries occurring to youth living on, working on, or visiting the farm.

Lee suggests that some might expect fewer total injuries given that the total number of youth living on farms dropped from 1.03 million in 2009 to just over 955,000 in 2012. But the rate of injury also dropped, from 9.9 per 1,000 farm household youth in 2009 to 8.15 in 2012.



ASA Writes CFTC Opposing New Rules on Margin Requirements


The American Soybean Association and a coalition of agricultural stakeholders wrote this week to commissioners at the Commodity Futures Trading Commission (CFTC) in opposition to proposed new rules that would significantly increase margin requirements for farmers. The “Customer Protection” rule would re-interpret how margin obligations will be determined, likely requiring futures commission merchants (FCMs) to assume that all margin calls from each customer are simultaneously not able to be collected, resulting in customers being asked to pre-fund their margin or pay to use the capital of the FCM as an injection into the customer account.

The group writes, “We support strongly the Commission’s efforts to enhance futures customer protections. However, the capital charge and residual interest provisions of this rule will have the opposite impact – if adopted, customers will be exposed to significantly greater financial risk.”

Among likely impacts listed by the group are that “Futures customers will be compelled to send excess margin to their FCMs in anticipation of future market movement on existing positions – many billions of dollars more than needed to cover existing positions – the last thing customers want to do now, in the wake of MF Global and Peregrine Financial Group.” Additionally, “Futures customers will be compelled to borrow more money just to post margin on potential market moves – difficult for both lending banks and for customers to predict, and potentially difficult for smaller local banks. This increased borrowing requirement negatively affects a customer’s ability to invest in their own business.”



Ag Groups Write CFTC on Concerns About Customer Protection Rule


The National Association of Wheat Growers and 20 other groups wrote the Commodity Futures Trading Commission (CFTC) and Members of the Senate and House Agriculture Committees this week to express concerns about the CFTC’s new interpretation of capital charge and residual interest rules. The proposal asks futures commission merchants (FCMs) to maintain enough residual interest in a customer funds account at all times to exceed the total of all margin deficits. This would represent a significant change from current requirements in which segregation calculations are made daily, and an FCM must hold sufficient funds at that specific point in time. The new rule changes would likely lead to FCMs asking their customers, including farmers and agribusinesses, to pre-fund their margin hedge accounts. This increase in cost to users could discourage many producers from using the futures market and may force some to look to alternative risk management tools. The full letter to CFTC is available at http://www.wheatworld.org/wp-content/uploads/other-commodity-letter-cftc-customer-protection-20130918.pdf.



Informa Updates Acres, Production, and 2014 Acreage Guess


Private analytical firm Informa Economics incorporated recent Farm Service Agency data into its expectations for USDA's next round of crop reports and lowered 2013 planted acreage for corn and soybeans.

For 2013, Informa expects USDA to trim 1.5 million acres from its June corn planting estimate, putting total planted acreage at 95.8 million acres.  Informa also reduced 391,000 acres from its soybean estimate to 76.8 million acres.

Informa expects USDA to forecast corn production at 13.89 billion bushels, 46 mb above USDA's September forecast and 149 mb above Informa's previous estimate. Informa lowered its forecast for corn abandonment from USDA's 8.2 million acres to 7.7 million acres. Informa expects an average yield estimate of 157.6 bpa.

On soybeans, Informa expects production to total 3.22 bb, 75 mb above USDA's September estimate due to a higher yield forecast of 42.4 bpa.

Looking forward to 2014, Informa's estimates are based on prevailing economic and weather conditions.  Next year, Informa expects farmers to plant 92.7 million acres of corn, which is below 2013's 95.8 ma. Informa notes that this would be a dramatic reversal considering how many corn acres would have been planted if this spring wasn't so wet.

Soybean acreage will see a big boost next year if Informa's forecasts pan out. It expects farmers to plant 83.6 million acres to soybeans, which would be far above the previous record of 77.5 ma that were planted in 2009.

Informa expects USDA to peg this year's all-wheat production at 2.09 billion bushels, which is 25 mb lower than its August forecast and 180 mb lower than last year, with an average yield of 46.3 bpa.

USDA will report on wheat, barley and oat acreage and production on Monday, Sept. 30, at 11 a.m. CDT. The National Ag Statistics Service will incorporate FSA acreage in the next Crop Production report that will be issued on Oct. 11.



The Natural State to Host National Beef Ambassador Contest


Springdale, Ark. is the location for next week's 2014 National Beef Ambassador contest. The contest is on tap for Sept. 27-28, 2013, in this town in the Northwestern corner of Arkansas, between Bentonville and Fayetteville. Thirty-four contestants from across the United States will compete at the Holiday Inn Springdale for a prestigious spot on the 2014 National Beef Ambassador team. All judged events will be conducted Saturday, Sept. 28, followed by the awards presentation that evening.

The National Beef Ambassador Program is funded, in part, by the beef checkoff and is managed by the American National CattleWomen, Inc. This program strives to provide an opportunity for youth to educate consumers and students about beef nutrition, food safety and stewardship practices of the beef industry. National Beef Ambassadors tell the beef production story to consumers and youth through promotion, education, media and the online environment.

Visit www.nationalbeefambassador.org for more information and follow @beefambassador on Twitter.



Sorghum Checkoff Seeking External Committee Member Applicants


The Sorghum Checkoff is now accepting applications from individuals interested in serving as an external committee member on one of the board of director’s three committees: Crop Improvement, High Value Markets and Renewables.

In 2011, the Sorghum Checkoff board of directors amended the organizational bylaws to allow for external committee members to serve on board committees. The Sorghum Checkoff believes in the importance of having outside committee members that will provide important insight in each program area. 

The Sorghum Checkoff is focused on making an impact in the industry and is seeking individuals who are willing to serve and help make a difference. External committee applicants should possess a commitment to the sorghum industry and the desire to be instrumental in moving the industry forward.

Responsibilities of external committee members include following all USCP board policies while acting as a resource and providing supportive information, attending scheduled committee meetings and/or calls, and voting on projects and issues brought before the committee.

Applications can be found online at www.SorghumCheckoff.com and submitted to positions@sorghumcheckoff.com. The deadline for application submission is Oct. 7, 2013. Applications will be reviewed and accepted by the board on or before Dec. 11, 2013.



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