Wednesday September 11 Ag News

Platte Valley Cattlemen Plan Annual Outlook Meeting
Crystal Klug, President

The calendar has turned to September which can only mean harvest is right around the corner. With the volatile grain prices, there is no better time for our annual outlook meeting.   The meeting will be held on Monday, September 16th, at Wunderlich’s Catering in Columbus with social hour beginning at 6:00 p.m. and the meal at 7:00 p.m. Thank you to our meal and social hour sponsors, Husker Coop and Pinnacle Bank!

This year’s outlook meeting will feature UNL Agricultural Economist, Dr. Kate Brooks. Dr. Brooks is a Livestock Marketing Specialist and has a research and Extension appointment.  She comes to UNL from West Texas A&M University where her research focused on Livestock Production Economics, Consumer Preferences, and Experimental Economics. Dr. Brooks obtained her Ph.D. at Oklahoma State University, her M.S. at Illinois State University, and her B.S. at Kansas State University.

We also want you to take note of an important interim hearing that will take place September 13, at 2:00 p.m. at the Nielsen Community Center in West Point. The Agriculture Committee will host a hearing for LR 271 and LR 290 – the interim study to examine issues, benefits, and costs associated with expanding the brand inspection area to include the entire state of Nebraska. IF YOU DO NOT WANT STATE WIDE BRAND INSPECTION, IT IS IMPERATIVE YOU LET YOUR VOICE BE HEARD! Nebraska Cattlemen will not be sending lobbyists to this meeting and are urging members to be present Friday, September 13!



Valmont Board Declares Quarterly Dividend

The Board of Directors of Valmont Industries, Inc. (NYSE: VMI) has declared a quarterly dividend of 25.0 cents per share payable on October 15, 2013 to shareholders of record on September 27, 2013.  The dividend indicates an annual rate of $1.00 per share.

Valmont is the global leader in designing and manufacturing poles, towers and structures for lighting and traffic, wireless communication and utility markets, industrial access systems, highway safety barriers and a provider of protective coating services.



Nebraska NRDs Announce Hall of Fame Inductees at Husker Harvest Days 2013

The Nebraska Association of Resources Districts (NARD) announced today it has created a Hall of Fame award for those individuals who have made significant contributions through Nebraska’s Natural Resources Districts.  Officials from Nebraska’s Natural Resources Districts (NRD) used Husker Harvest Days to announce the first three inductees into the Natural Resources Districts Hall of Fame.  The announcement of inductees took place outside the NRDs Natural Resources Building at Husker Harvest Days near Grand Island. Joe Anderjaska, Nebraska Association of Resources Districts (NARD) Board President announced the inductees on Wednesday morning.  Inaugural inductees recognized include: Ron Bishop, Central Platte NRD; Dick Mercer, Central Platte NRD; and former State Senator Maurice Kremer,

“This is an exciting time for the Nebraska Association of Resources Districts and the induction of the inaugural Hall of Fame recipients,” said Joe Anderjaska, Nebraska Association of Resources Districts (NARD) Board President. “The purpose of the Natural Resources Hall of Fame is to reward individuals for service and commitment to natural resources conservation and these three inductees are very deserving individuals,” said Anderjaska.

The candidates are elected into the Hall of Fame by vote of current NRD Managers and NARD Board members.  There are three Hall of Fame categories including: Natural Resources District Board Member, Natural Resources District Employee and “Other” NRD Supporter which includes individuals outside the NRD system.

Ron Bishop was nominated by the Central Platte NRD.  Bishop who recently retired as long-time manager at the Central Platte NRD had been with the district since its formation in 1972.  Bishop has played a critical role in helping to develop the NRD structure and promoting the importance of natural resources conservation. 

Dick Mercer has been dedicated to natural resources as a director and board member of the Central Platte NRD since 1972.  Prior to that, he was director on the Buffalo-Ravenna Soil and Water Conservation District.  Mercer was nominated by the Central Platte NRD.

Senator Maurice Kremer was nominated by the Upper Big Blue NRD for his exceptional leadership in the Nebraska Legislature for the enactment of the laws creating Natural Resources Districts and the Nebraska Groundwater Management Act.

“The award is designed to recognize outstanding effort and dedication to conservation, resulting in improving natural resources in Nebraska,” said Anderjaska.

The Nebraska Association of Resources Districts (NARD), the trade association for Nebraska's 23 natural resources districts, works with individual NRDs to protect lives, protect property, and protect the future of Nebraska’s natural resources.  These districts are unique to Nebraska. NRDs are local government entities with broad responsibilities to protect our natural resources.  Major Nebraska river basins form the boundaries of the 23 NRDs, enabling districts to respond best to local conservation and resource management needs. To learn more about Nebraska NRDs visit www.nrdnet.org.



Agreement Reached to Improve Iowa’s Concentrated Animal Feeding Operations Permit and Compliance Program

EPA has reached an agreement with the Iowa Department of Natural Resources (IDNR) to make changes to Iowa’s Clean Water Act (CWA) permit and compliance program for concentrated animal feeding operations (CAFOs).  The agreement includes specific actions the IDNR intends to take to remedy the program and a timeline for implementation of those actions to ensure clean, healthy water.

“Working with states to safeguard Midwestern waters is among EPA’s highest priorities,” said Karl Brooks, EPA regional administrator. “This agreement, developed after extensive public and industry input, commits the IDNR to making needed and achievable improvements to the system that keeps CAFOs compliant with the CWA.  Iowans who operate a world-class livestock sector will continue to thrive in a first-rate permitting and inspection program.”

EPA considered public comments in its assessment of IDNR’s proposed actions to ensure clean water across the state. Public comments, including feedback from the agricultural community, were taken into consideration in the drafting of the final agreement.

EPA’s investigation of Iowa’s permit and compliance program for CAFOs was carried out in response to a petition for withdrawal of the National Pollutant Discharge Elimination System (NPDES) program authorization from IDNR that was filed in 2007 by the Iowa Citizens for Community Improvement, Sierra Club and the Environmental Integrity Project.  Federal regulations allow interested parties to file these petitions when they are concerned that a state is not meeting the minimum NPDES program requirements.

The IDNR has committed to:
-    Change several provisions of Iowa’s CAFO rules so that Iowa state law is consistent with the federal CWA.
-    Conduct a comprehensive survey of all large CAFOs and medium animal feeding operations that currently don’t have CWA wastewater discharge permits and identify those that discharge to a water of the U.S. and have failed to comply with the permit application or other Iowa requirements. Size thresholds for each species define large and medium operations.  For example, operations with more than 1,000 head of cattle are defined as large and 300 to 999 are defined as medium.
-    Review all relevant available information to evaluate site specific factors that may signal the likelihood of a wastewater discharge to local waterways.  This desktop assessment will document baseline conditions at a facility and determine whether an on-site inspection will be conducted.
-    Conduct on-site inspections following agreed upon inspection procedures for all large CAFOs.  For medium operations, on-site inspections will be conducted when certain site specific circumstances exist or the desktop assessment determines that an on-site inspection is needed.
-    Inspect all permitted NPDES CAFOs within five years following an agreed upon inspection procedure.
-    Issue timely wastewater discharge permits to all CAFOs determined to discharge to local waterways.
-    Take timely and appropriate enforcement actions when needed, including assessing penalties that ensure violators do not gain competitive advantage from non-compliance.

On July 12, 2012, EPA released a report outlining its initial findings, which identified issues in IDNR’s program that the state agency will need to correct.  Among other findings, EPA found that IDNR does not have an adequate program to assess whether unpermitted CAFOs need NPDES permits. The findings also noted that IDNR must clarify its authority to issue NPDES permits to confinement (roofed) CAFOs that discharge.  EPA also found that in a number of cases involving CWA violations, IDNR failed to take timely and adequate enforcement actions, and assess adequate penalties.

The CWA requires EPA and authorized states to assess whether CAFOs discharge and need an NPDES permit. Any discharge of pollutants into a river or stream is a violation of the CWA unless the discharge is authorized by an NPDES permit. The CWA requires CAFOs that discharge to obtain an NPDES permit from EPA or authorized states.

A copy of the final work plan agreement can be found at www.epa.gov/region7/water. 



Feasibility and Acceptance Distinction
Glynn T. Tonsor, Associate Professor, Department of Agricultural Economics, Kansas State University

In multiple circles the cattle industry has a renewed sense of optimism with possible beef cow herd expansion being thoroughly discussed again. Underlying this optimism is a growing view that many cow-calf operators are nearing a situation of being not only able to physically add breeding stock but also that operators have forward-looking profit expectations that warrant expansion. All this being said, it is important to pause and discuss why some cow-calf producers may not initiate herd rebuilding or expansion.

Ultimately, each individual producer weighs opportunities for adjusting their operation against the expected economic returns associated with pursuing each opportunity. These opportunities are operation-specific as the practical feasibility of expanding varies. Similarly, producers are mixed in their level of optimism regarding future economic returns of their cow-calf enterprise. A point that often gets missed in these discussions is that not only does "expected profit per cow" have a role in producer decisions but importantly so do variability of profits over time and uncertainty on what profits in the future may be.

Is the world "gets more complicated" from the vantage point of cattle producers, points regarding profit variability and uncertainty arguably have a large role in investment decisions. If one considers most producers as being adverse to risk and uncertainty, for a given level of expected profit economists anticipate fewer investments to be made in settings viewed as more variable.

Given this backdrop it is useful to highlight that last week The Center for Food Integrity posted a tweet to Twitter that directly applies to this discussion: "Science tells us if we can do something. Society tells us if we should do it."[1] This quote starts by highlighting the fact that technical feasibility is determined by the state of scientific understanding. This feasibility changes over time as new technologies are explored and outcomes of research and development investments are realized. The quote ends by calling attention to the equally critical role of societal acceptance. There is a length list of meat industry examples one can use to drive this point home but perhaps the clearest illustration is offered by meat irradiation. Irradiation was shown several years ago to be highly effective from a bench science perspective at improving meat food safety yet the public as whole has been very resistant to industry implementation of irradiation. Recognition of sound science being necessary but not sufficient for new technologies and production practices to be implemented is critical.

Ultimately the entire meat supply chain adjusts over time reflective of changes in the state of technical feasibility along with acceptance of potential practices by consumers, within industry customers, and international trade partners. These ongoing adjustments are important to understand regardless of where in the supply chain a given operation exist. Operations who are less comfortable with this environment are likely not the entities who will be making capital investments or expanding their businesses. Conversely, those who are at least relatively speaking more comfortable with this important feasibility-acceptance distinction will increasingly comprise the operations and hence mindset of the meat industry going forward.



Bass and Beef: A Winning Combination in Japan

Beef and baseball are a winning combination in Japan as they are in the United States. To capitalize on that double-header pairing, USMEF recently involved Japanese baseball legend and Oklahoma state Senator Randy Bass in an extremely popular campaign to promote U.S. beef in Japan.

With coordination provided by the Oklahoma Beef Council, USMEF brought the two-time Japanese triple crown winner back to the scene of his spectacular baseball success to serve as headliner for a campaign to promote U.S. beef for yakiniku dishes.

Since Japan expanded access for U.S. beef earlier this year to include product from cattle up to 30 months of age, USMEF-Japan and its partners in the Japanese yakiniku industry have collaborated on a variety of promotional programs to let consumers know that popular U.S. beef – particularly beef tongue – is again being featured in the tabletop-grill cuisine.

As part of the fecent promotion, USMEF offerws baseballs and bats autographed by Bass as prizes in a drawing. To be eligible, consumers had to order the “Randy Bass Menu” at participating yakiniku chains nationwide.

The Oklahoma state senator was the ideal matchup for the promotion: an American slugger who turned Japanese baseball on its ear before retiring from the Hanshin Tigers in 1988. After playing professional baseball in the U.S. for 16 years, including six in the major leagues, he played the final six years of his career with the Tigers of Japan’s Central League. There, he set eight Japanese national records, including winning back-to-back triple crowns and setting a single-season batting average record of .389.

Even after 25 years away, Bass remains an extremely popular figure in Japan. Media coverage of his visit was carried by four daily newspapers, one TV program, seven industry publications and the tabloid Weekly Baseball.

Bass chose to meet first with children in the Tohoku region of Japan that was devastated by an earthquake and tsunami in the spring of 2011. USMEF represented the U.S. red meat industry in the region after the disaster, spearheading relief efforts designed to provide hot meals to people displaced from their homes.

During Bass’ visit, a Japanese charity returned the gesture, providing donations from Japanese children to help the Oklahoma residents displaced by a massive tornado earlier this year.

Bass, a wheat and cattle farmer in addition to serving as a state senator, also met with youth baseball teams and, while preparing beef dishes for the children, explained the importance of making protein-rich U.S. beef a part of their training table menu.

“My career as a Triple Crown winner was made by American beef,” Bass told the young athletes. “American beef contains good protein, vitamins and minerals such as iron and zinc, which are the best ingredients for athletes’ health.”

“The Japanese yakiniku market is extremely important for the U.S. beef industry,” said Takemichi Yamashoji, senior marketing director for USMEF-Japan. “We deeply appreciate the support from the Oklahoma Beef Council and the participation by Senator Bass to draw attention to this promotion and help accelerate the return of U.S. beef to the market-leading share it enjoyed previously.”

For the first time since 2003, U.S. beef has regained its status as the No. 1 export market for U.S. beef. Through the first seven months of the year, Japan has purchased 142,875 metric tons (315 million pounds) valued at $855.8 million – increases of 57 percent in volume and 43 percent in value versus 2012.



Soybean Rivals Team Up on Common Issues

Farmers who grow 90 percent of the world's soybeans and normally battle for global market share met recently to discuss how they can work together on issues that affect all farmers. Among other topics, they discussed what they could do to speed up getting new, biotechnology-enhanced soybean varieties approved in more markets around the world.

This type of gathering isn't new to these farmers, who are members of the International Soy Growers Alliance (ISGA), a group formed in 2005 to bring together Argentine, Brazilian, Paraguayan, Uruguayan and U.S. soybean farmers around issues that affect them all.

"It's important for us to come together and discuss issues we all have in common: trade relations, biotechnology, weather, to name a few," says Jim Stillman, soybean farmer and United Soybean Board (USB) chairman from Emmetsburg, Iowa. "When we are able to provide a united front on these issues that impact the global soybean industry, it makes a much stronger impression."

Farmer-leaders representing the soy checkoff, the American Soybean Association (ASA) and the U.S. Soybean Export Council (USSEC) participated in the most recent ISGA meeting, where members approved a resolution that, among other things, calls for science-based and more predictable approval systems for soybeans improved through biotechnology. Currently, these approvals in several countries tend to take long or not happen at all, holding up or blocking U.S. soybean sales or delay farmers' ability to plant new biotech varieties.

To show support for these issues, ISGA has also begun plans to bring together farmers from both continents to meet with common customers, decision makers and government officials next year. ISGA members will stress the importance of swift and science-based approval processes to prevent trade disruptions. In 2012, ISGA conducted a similar mission to the European Union, where U.S. and South American farmers met with officials from several countries to discuss the importance of biotechnology approvals and acceptance.

"One of the most rewarding aspects of ISGA is the opportunity to come together with farmers and representatives of other soy-growing-and-exporting countries to address the challenges we face as a global soy industry," adds Danny Murphy, soybean farmer and ASA president from Canton, Miss. "As representatives of the U.S. soy industry, together with USB and USSEC, we find that we have so many mutual goals with our ISGA partners, especially on issues like biotechnology approvals, in which barriers set up by one nation or coalition can have a significantly negative impact on all exporters."



Weekly Ethanol Production for 9/06/2013

According to EIA data, ethanol production averaged 848,000 barrels per day (b/d) — or 35.62 million gallons daily. That is up 29,000 b/d from the week before and a four-week high. The four-week average for ethanol production stood at 833,000 b/d for an annualized rate of 12.77 billion gallons.

Stocks of ethanol stood at 16.3 million barrels. That is a 0.3% increase from last week.

Imports of ethanol were 15,000 b/d, down from last week. Imports have been behind year-ago levels in five of the past six weeks.

Gasoline demand for the week averaged 361.4 million gallons daily, the lowest in 17 weeks.

Expressed as a percentage of daily gasoline demand, daily ethanol production was 9.85%, the highest rate in eight weeks.

On the co-products side, ethanol producers were using 12.858 million bushels of corn to produce ethanol and 94,639 metric tons of livestock feed, 84,372 metric tons of which were distillers grains. The rest is comprised of corn gluten feed and corn gluten meal. Additionally, ethanol producers were providing 4.42 million pounds of corn oil daily.



Tractor, Combine Sales Remain Strong in August

The Association of Equipment Manufacturer's monthly "Flash Report" shows the sale of all tractors in the U.S. for August 2013, were up 13% compared to the same month last year.  For the month, two-wheel drive smaller tractors (under 40 HP) were up 14% from last year, while 40 & under 100 HP were up 13%. Sales of 2-wheel drive 100+ HP were up 15%, while 4-wheel drive tractors were up 3%.  Combine sales were down 7% for the month. 

For the eight months in 2013, a total of 137,776 tractors were sold which compares to 122,324 sold thru August 2012, representing an 13% increase year to date.  So far this year, two-wheel drive smaller tractors (under 40 HP) are up 13% over last year, while 40 & under 100 HP are up 7%. Sales of 2-wheel drive 100+ HP are up 25%, while 4-wheel drive tractors are up 8%.  Combine sales for the first eight months totaled 6,669, an increase of 27% over the same period in 2012.



China Corn Output to Hit Record High

China's corn output this year is likely to rise 4.6% to a record 215 million metric tons, the Asidake Financial News website reported Wednesday, citing a forecast by the state-backed China National Grain and Oils Information Center.  Rice production may slip 1% from last year to 202 million tons due to drought, it said.  Soybean output may fall 4.2% to 12.5 million tons, the report said. China imports around 80% of its soybeans.  The government has said it expects the overall grain harvest this year to rise to a record from last year's 589.57 million tons. That figure includes wheat, corn and rice.



Deere to Manufacture High Horsepower 8R Tractors in Brazil

Deere & Company said it will invest approximately $40 million to create the capacity for manufacturing its popular 8R tractors at the company's Montenegro, Brazil factory -- an action that enhances John Deere's ability to serve customers in the important Brazilian market.

"Our customers in Brazil are investing in higher horsepower tractors in the range offered by the 8R model," said Mark Von Pentz, president, Worldwide Agriculture & Turf Division. "Our decision to manufacture the 8R in Montenegro should allow the machine to be eligible for FINAME financing -- the public program that targets investment in Brazil's economic development.

John Deere has a long history in Brazil, starting in 1979 when Deere first invested in a joint venture in the country. In 2008, Deere announced its decision to construct the Montenegro factory to increase its capacity for tractor production in the country.

Deere builds several models of tractors at the Montenegro facility but none in the high horsepower range offered by the 8R -- a tractor model that is a key component of the farming systems utilized by highly productive farms around the world.

"As we have recently stated, demand for John Deere equipment has remained strong both in North and South America," said Von Pentz. "Our customers are finding productivity gains in using the significant technology designed into the 8R and we want to continue to meet our customer demand as Brazil enhances its position as one of the breadbaskets of the world."

Deere currently manufactures 8R tractors in Waterloo, Iowa and will continue to do so for markets around the world. Deere said re-configuration of the Brazil factory will begin in later this year and it expects to be producing 8R models in Brazil by late fall 2015. Deere said the investment in Brazil will also increase the company's use of suppliers in the region.



America's Heartland Returns for Ninth Season with New Features

The popular television series America's Heartland features new themed episodes and the return of popular features and hosts as it premieres the ninth season of its public television series celebrating U.S. agriculture starting this week. The series is produced by KVIE Public Television and receives promotional support from the National Corn Growers Association, among others.

This season, the 22 episodes will focus on agriculture-related topics designed to address consumers' questions and concerns about food safety, animal welfare and environmental sustainability. Other themed episodes will celebrate a particular crop, commodity or farm animal. 

"We're delighted to provide our viewers new episodes that really address their questions about the origins of their food, fuel and fiber," said series producer Jim Finnerty. "We want to help each of them become savvy, better informed consumers, and we think we do that by focusing on a specific agriculture topic in each program."

"We've been a longtime supporter of America's Heartland because it helps farmers bring their story before an importance audience that has become more removed from the farm," said NCGA President Pam Johnson. "The direction that the program is taking in its ninth season is a perfect fit for a lot of our work with many of our programs aimed at educating urban and suburban people about today's farming."

Each episode is hosted by reporters Jason Shoultz, Sarah Gardner, or Rob Stewart.  Like last season, America's Heartland will also feature Sharon Vaknin, video host and editor at CNET and a popular online chef.  Sharon returns as the host of 'Farm to Fork', where she prepares innovative and tasty meals made with ingredients fresh-picked from the field or farm. All of the recipes will be posted on the America's Heartland website.

Another popular returning feature planned for America's Heartland's ninth season will be 'Off the Shelf', which looks at food choices that consumers make at the supermarket.

Launched in 2005, the award-winning America's Heartland travels the United States, introducing non-farm viewers to the men and women who provide the food, fuel, and fiber we use and consume daily.  The half-hour weekly series is seen on more than 240 public television stations, including stations in 21 of the top 25 U.S. markets, as well as three times per week on RFD-TV, the national cable and satellite channel available in more than 40 million households.

The America's Heartland website gives consumers easy connections to topics, educational resources, search functions and video offerings. To give viewers immediate access to stories and special segments, America's Heartland has expanded its social networking outreach with updated features and information on Facebook and Twitter.  Video plays an increasingly important role on the America's Heartland YouTube Channel, currently welcoming more than 200,000 views each month.

Farm Credit has generously renewed its full funding support for season nine of America's Heartland. Farm Credit is joined by CropLife America as the series' other sponsor. CropLife is one of the many organizations supporting the Pollinator Project, a nationwide effort to restore native bee populations throughout the United States.  The America's Heartland website will include a link to a specially designed CropLife pollinator landing page. The page is filled with information and resources about this important environmental and scientific effort.

America's Heartland also receives in-kind production support from many prominent agriculture organizations, including NCGA, United Egg Producers, U.S. Grains Council, American Soybean Association, FFA, National Association of Wheat Growers, and the National Cotton Council of America.