Monday, August 25, 2014

Monday August 25 Ag News

UNL Stored Grain Webinar Sept. 12

Harvest is just around the corner and grain storage preparations can help protect your stored crop.  A regional webinar, Stored Grain Integrated Pest Management, will be held Friday, Sept. 12, from 10 a.m. to noon to provide information on integrated pest management (IPM) strategies for stored grain.  The webinar will include:
-    Biology and identification of key stored grain pests; basics of IPM for stored grain; proper fumigation—issues and challenges with Tom Phillips, Professor of Entomology, Kansas State University, Manhattan, KS
-    Prevention of grain infestation: residual insecticides available and their proper application; strategic use of aeration for grain cooling and pest suppression with Frank Arthur, research entomologist, USDA ARS, Manhattan, Kan.
-   IPM for corn and other products in the upper Midwest: issues and challenges with grain drying and cooling; pest management for animal feed, ethanol and value-processed food with Linda Mason, professor of entomology, Purdue University, West Lafayette, Ind.

There will be a live question and answer period following the presentations. Instructional materials will be provided via internet links.  Pre-registration is required. Go to http://www.ncipmc.org/training/ to register.  Participation will be limited to the first 200 computers. Hosting of viewing sites locally by Extension, government agencies, and private industry is encouraged. This webinar will be archived for later viewing if you cannot attend this date and time.



Water: Making every drop count


Nebraska’s diverse landscape progresses from lush, fertile crop ground in the east to the temperate Sandhills in the west. This change in scenery is attributed in large part to differences in the amount of rainfall and the water available to grow a variety of crops. Thanks to innovative agricultural practices, Nebraska corn and soybean farmers are making every drop of water count.

Since rainfall varies so much across the state, many farmers depend on irrigation during the summer months to help supplement moisture deficiencies. To help put the variation into perspective, the amount of rainfall changes more from Omaha to Scottsbluff than it does from Washington D.C. to Omaha.

Water for Food

Three quarters of the planet is covered by water; but less than one percent of the water on earth is available for human use. Water is critically important to farmers and ranchers. In fact, 70 percent of the water available to humans worldwide is used to produce food. Nebraska farmers irrigate nearly 8.5 million acres, more than any other state in the country. And new tools are allowing farmers to use water more efficiently, ensuring clean water for future generations.

“We know that many consumers have questions about the water it takes to grow crops like corn and soybeans,” said Drew Guiney, consumer relations specialist for the Nebraska Soybean Board. “We want people to know that farmers need water, but they’re also dedicated to continuing to improve their practices to ensure a clean, plentiful supply for generations to come.”

Smart Water

The purpose of irrigation is to supplement rainfall as needed. Many farmers are now adopting technologies that allow them to use less water. By pulling local weather data and installing water sensors in their fields, farmers can know not only when it’s time to irrigate, but also exactly how much water should be applied. Sustainable technologies like these are helping farmers produce more grain while using fewer resources and helping to keep the water supply clean and plentiful for you and your family.

Some of these technologies include the SoyWater and CornWater Irrigation Management Tools released by University of Nebraska-Lincoln. These programs are online, real-time decision support tools that help farmers determine when to irrigate fields in Nebraska. Both programs were developed with the help of the Nebraska Soybean Board and the Nebraska Corn Board. 

To make irrigation recommendations, these tools evaluate several situations in the real-time, such as available soil water at different soil depths and possible water stress based on up-to-date weather data. Other factors include user-input crop information (including date of planting, hybrid maturity, plant population), and basic soil properties (including soil texture, soil water status at planting time, soil rooting depth, and soil surface residue coverage rate).

“Just as farmers adopted the use of pivots and sub-surface drip versus flood irrigation to increase efficiencies, they are now taking the next steps in conservation tillage, water mark sensors, and online decision support tools to continue in their quest to maximize the amount of yield per drop”, stated Kelly Brunkhorst, executive director for the Nebraska Corn Board.  “Farmers see this adoption of technology as just a step in their sustainability of producing corn and soybeans for food, feed, fuel and fiber.”



Tomorrow's Crop Scouts Compete

UNL Extension is pleased to announce six teams from across Nebraska competed in the first annual Crop Scouting Competition for Nebraska youth. It was held in at the ARDC near Mead August 6.  Teams of students (having completed 7th-12th grades) completed a written knowledge test and eight crop scouting exercises in field plots.

The purpose of the competition was to provide students an opportunity
-    to learn crop scouting and principles of integrated pest management (IPM) for corn and soybeans in Nebraska,
-    to obtain knowledge and skills that will be helpful in future careers and
-    to demonstrate newer crop scouting technologies.

2014 Results
-    First place: Colfax County 4-H (Alex Steffensmeier, Joey & Brad Kratochvil, and Korbin Kudera)
-    Second place: Ashland-Greenwood FFA (Samantha Teten, Claire Thomas, and Jared Stander)
-    Third place: Amherst FFA (Jacob Klingelhoefer, Brandt Florell, Kalen Klingelhoefer, Ty Hadwiger and Marissa Kegley)
-    Fourth place: Pawnee City FFA (Brooke Bowhay, Clayton Branek and Hayden Meyer)

Also participating were the Eustis-Farnam (Collin Thompson, Garhett Nielsen, Jordan Bischoff and Matthew Blender)  and Mead FFA (Lynn and Don Hanson, Margaret Johnson, and Kaitlynn Hunt) chapters.

Prizes awards to the top-scoring teams were: $500 for first, $300 for second, $250 for third and $100 for fourth place.  Teams were expected to know the basics of scouting corn and soybean fields. This included crop staging; looking for patterns of crop injury; disease, insect and weed seedling identification; etc.

This program was sponsored by DuPont Pioneer and UNL Extension.



USDA SERVICE CENTER MOVING FROM BATTLE CREEK TO NORFOLK


USDA offices in Madison County will be consolidating into a new office located at 2601 Lakeridge Drive, Norfolk, Neb. The move will begin August 27, and the new office will be open for business Sept. 4, 2014.

Offices impacted include the Farm Service Agency (FSA) and Natural Resources Conservation Service (NRCS) in Battle Creek and Rural Development (RD) and the NRCS Water Quality Team in Norfolk. On Sept. 4, all of these employees will be located at the Lakeridge Drive location in Norfolk and may be reached at (402) 371-5350.

Limited office operations will be available Aug. 27 – Sept. 3 while employees move offices.  Regular business is anticipated to resume on Sept. 4.

Local USDA staff has been working to ensure the transition goes smoothly. For the past several months, USDA staff at both office locations have been notifying customers of the office move.

An Open House will be held in the future and the public will be invited to see the new office space. For more information about USDA visit www.usda.gov.



AG Sack Lunch Program Kicks Off Fifth Year Telling the State’s Fourth-Graders about Agriculture’s Importance to Nebraska

Nebraska’s fourth-graders once again can enjoy a free sack lunch and a fact-filled presentation about Nebraska agriculture, thanks to the Ag Sack Lunch Program. The Nebraska Soybean Board (NSB), the Nebraska Pork Producers Association (NPPA) and the Nebraska Corn Board (NCB) are sponsoring the program for the fifth year.

Since its beginning in the 2010-11 school year, the program has shared its agriculture-centered message and a free lunch with a total of nearly 20,000 Nebraska fourth-graders. The program is designed to educate Nebraska fourth-graders—and by extension their parents— in a fun way about how important agriculture is to the state’s economy.

Reservations for the 2014-2015 school year are limited to 5,000 students on a first-come-first served basis. These spots fill up quickly, according to event coordinators, who urge teachers to sign up their classes as soon as possible, even if they don’t have firm schedules yet for their State Capitol visit. It is especially important that teachers wanting to bring their classes for the first time register quickly, they said, since many teachers have been bringing their classes back every year of the program’s existence.

Teachers can register their classes online at agsacklunchprogram.com

More than 20,000 fourth-graders visit the State Capitol in Lincoln each year as part of their state-mandated curriculum. The Ag Sack Lunch Program uses these visits as an opportunity to reach participating classes with its informative agriculture-centered message.   

Letters of invitation will be sent in early September to fourth-grade teachers in about 660 elementary schools across 44 counties in the eastern third of Nebraska, the classes most likely to make the Lincoln trip. A primary objective is to help students from urban areas develop a better understanding of how agriculture impacts their daily lives.

In addition to the free sack lunches, each student receives a card game full of farm-related facts to take home and play with their families. Many teachers use the game in classroom settings, as well.

The presentations, which last about 20 minutes, teach students about the vital role agriculture plays in the state’s economy. Presentation leaders are “Ag Ambassadors,” University of Nebraska-Lincoln students trained specifically to conduct these sessions. All come from farming backgrounds, and are enthusiastic about agriculture.

Among the facts the Ag Ambassadors tell students is that one in three jobs in Nebraska have some connection to agriculture, including equipment manufacturing and sales, building construction, transportation and supermarket retailers. Students also learn that Nebraska ranks first in the country in cattle production, sixth in pork production, and that over one-third of Nebraska-produced grain is fed to livestock within the state.

"Over its first four years, the Ag Sack Lunch Program has been successful in helping our fourth-graders understand where their food comes from and how Nebraska’s farm production methods help protect the environment while ensuring food safety and promoting animal health,” says Victor Bohuyslavsky, NSB executive director. “Participating teachers continue to tell us how their students learn so much from the presentations.” he says.

The NPPA also sees the Ag Lunch Program as reaching students effectively in a relaxed environment. “Since the kids come to Lincoln to tour the State Capitol anyway, it’s a great time to reach them with our message,” says Kyla Wize, the organization’s youth leadership and events specialist.

Teachers whose classes participated in the 2013-14 school year, voiced strong support for the program and its effectiveness in communicating its message to their fourth-graders.

“This is a great program,” says Bonnie Andrews, teacher at St. Mary’s School in David City. “I’m a teacher, but also a farmer and the facts given to the students are great. Keep up the awesome work.”

Lori Elder, fourth-grade teacher at Omaha’s Wilson Focus School, agrees. “We’ve been to the Capitol in the past, but we hadn’t done the Ag Sack Lunch program before. It was awesome? I loved how the lunch went along with the information the Ag Ambassadors shared. Very educational and engaging.”

Students learned how important farming is to Nebraska, according to Shawne Nelson, Yutan Elementary School in Yutan. “Students were very pumped up with Nebraska pride about

Larry Sitzman, NPPA executive director, says the Ag Sack Lunch Program has been exceptionally successful in reaching students with the message that agriculture is important to all of us. “This program allows us to reach students with the truth about the dedication of Nebraska farmers to providing safe, healthy food for us and the world.”



Heineman Provides Ag Update, Promotes Ag Internationally & Discusses State Fair


Today, Gov. Dave Heineman and Greg Ibach, Director of the Department of Agriculture, highlighted several positive activities within the agriculture sector, including a new ag building being featured at Nebraska’s State Fair and recent international export efforts for Nebraska commodities.

“Today, our state’s agriculture industry is more vibrant and active than ever,” Gov. Heineman said. “The Nebraska State Fair is booming. Livestock development is expanding and exports continue to increase.”

Gov. Heineman added, “With more than a quarter of our economy rooted in agriculture, it’s appropriate that Nebraskans take note of recent activities that continue to strengthen our ag sector.”

Weekend crowds at the Nebraska State Fair were able to enjoy learning about agriculture at the new Raising Nebraska exhibit space at the Nebraska Building. The 25,000-foot space features interactive educational experiences to help answer consumer questions about how their food and fuel is raised. Governor Heineman visited the Raising Nebraska exhibit space while attending the fair on Friday.

“Historically, the Nebraska State Fair has been a celebration of agriculture, and this new feature really highlights that point,” Gov. Heineman said. “I am proud that Raising Nebraska represents the collective efforts of the University of Nebraska, the Department of Agriculture, our commodity groups and agribusinesses.”

Director Ibach said recent livestock development activity is a positive sign that farmers and agribusinesses recognize the ongoing opportunities in the state.

“Nebraska agriculture is on the move. Recent swine and dairy barn openings represent added value to our raw commodities and livestock volume to support our processors. We are looking forward to continuing this momentum,” Dir. Ibach said.

Governor Heineman also highlighted Nebraska’s ongoing agricultural efforts in international markets. The Department of Agriculture recently has hosted international visitors as part of its ongoing work to brand Nebraska agriculture goods in the foreign marketplace. Customers from both Germany and England spent time in the past month meeting with the Governor and state agriculture leaders, touring farms, ranches and processors to gain an understanding of the state’s beef production sector.

“They are taking back promotional materials, such as photos, videos and stories from their visits,” Dir. Ibach said. “They leave for home saying, ‘This is exactly the kind of information our customers want to see and hear.’”

One customer from England began visiting Nebraska five years ago, after receiving an initial shipment of Nebraska beef into his high-end steakhouse restaurant, Goodman, in London. He has brought members of his restaurant team back annually and increased his purchase of Nebraska beef steadily since then.

Nebraska’s beef exports to Europe have increased significantly over the past five years, from about $41 million in 2009 to $132.6 million last year.



Sorghum Field Days to Showcase Hybrid Performance


The 2014 Sorghum Field Days will be held at five sites in September: Trenton, Sterling, Hazard/Litchfield, Orleans, and Farwell.

Field performance of leading hybrids, new market opportunities, and production practices are among the topics to be included on the program. The field stops include a plot tour with management information from the field cooperator; sorghum seed representatives will be available to share hybrid information.  A meal/program will follow the field tour. The program, which will vary by location, will include ethanol plant representatives discussing new market opportunities and sorghum checkoff representatives providing an update on research and market development projects. Ag West Commodities is scheduled to provide a market outlook at the Trenton location.

Schedule and Directions

-    September 3, 5:30 p.m. at Trenton, Mike Baker Farm, 4 miles north of Trenton to Rd 719; go west 1 mile, then south ½ mile, and west, again, ½ mile
-    September 4, 5:30 p.m. at Sterling, Jim Erickson Farm, Located between Ada.m.s and Bennet on Hwy 43; turn West on Pella Road (Pella Church) and go 1 mile.
-    September 16, 11 a.m. at Hazard/Litchfield, Seth Kucera and Bob Reissland Farms, From Hazard, go 2¼ miles north on County Road WPA Sherman Avenue to plot sign at the field on the right
-    September 17, 11 a.m. at Orleans (dryland & irrigated), Duane Vorderstrasse and James Dunlay Farms, From Orleans, go 1¼ miles northwest on Hwy 136, turn right onto County Road at the plot sign
-    September 18, 11 a.m. at Farwell (dryland & irrigated), John Dvoracek Farm, Off of Hwy 92 at west edge of Farwell, go 2 miles north on Salem, 1 mile west on 15th Avenue, and ¾ mile north on Tilden; turn left into field at plot sign at bridge

Participating seed companies include Alta Seed, Arrow Seed, Channel Seed, Dekalb, Dyna-Gro, Fontanelle, Gayland Ward Seed, NuTech Seed, Pioneer, Richardson Seed, and Sorghum Partners.

Planning and coordination of the event is sponsored by the Nebraska Grain Sorghum Board, Nebraska Grain Sorghum Producers Association, Abengoa Bioenergy, Servi-Tech, United Sorghum Checkoff Progra.m., and allied industry.



Nebraska Farmers Union PAC Says Mark Sullivan is the Strongest Voice for Agriculture and Nebraska in the Third Congressional District

NEBFARMPAC, the political action committee of the Nebraska Farmers Union, Nebraska’s second largest general farm organization with over 6,000 farm and ranch families announced its unanimous endorsement of Mark Sullivan for Congress in the Third District.

The NEBFARMPAC Board of Directors issued the following statement:

“Agriculture is the largest single industry in our state.  So goes agriculture, so goes Nebraska’s economy and fiscal condition.  The Third Congressional District is one of the top agricultural based Congressional District in the nation.  We think it is high time to send a “hands on” farmer, livestock producer, and cattle feeder to Congress, who understands agriculture, is passionate about agriculture, can communicate about the importance of agriculture, and has the ability to work with everyone to get things done for agriculture and Nebraska.”

“The last Farm Bill process should serve as a wake-up call for agriculture, rural communities, and the state as a whole.  For the first time in history, Congress not only allowed the Farm Bill to expire without Congressional reauthorization, it did so twice.”

“Our state is in a marginal rainfall area that is facing increasing weather volatility.  The Third District must have a Farm Bill that has a strong income safety net and crop insurance for grain producers, strong livestock disaster programs for livestock producers, strong conservation programs, and rural development programs that serves the needs of rural communities.  Growing crops and raising livestock in Nebraska is a mighty risky business that will likely get more risky in the years ahead.  The House of Representatives in particular needs new rural voices to more effectively communicate the needs of rural Nebraska and rural America. There is a good reason why the latest voter job approval rating for Congress is only 14%.”

“Mark Sullivan is an experienced and well respected farmer and cattle feeder.  He knows and understands the wide and diverse range of issues and challenges facing production agriculture and livestock production.  Mark is honest, hardworking, knowledgeable, trustworthy, and a pragmatic problem solver.  He knows how to get things done by working with people.  He is also not tied to any ideologically extreme groups dedicated to dismantling farm programs or renewable energy incentives.  Mark is a military veteran.  We think that is a very important qualification.”

NEBFARMPAC Secretary John Hansen said “Our NEBFARMPAC Board felt very strongly that agriculture and rural Nebraska would be well served to send one of our own respected farmers to Congress to represent and fight for our agricultural and rural interests. Mark Sullivan is the right person at this point in time to send to Washington, D.C. to represent our agricultural and rural interests.  Who better knows the needs and interests of agriculture than a hands-on farmer?  Who better knows the needs of veterans than a veteran?”



Iowa Ag Water Alliance to accelerate pace, scale of water quality improvement


Accelerating the pace and scale of quantifiable water quality improvements in Iowa is the mission of the Iowa Agriculture Water Alliance (IAWA) launched today by agricultural and environmental stakeholders at a news conference in Des Moines.

Created and funded by Iowa Corn Growers Association, Iowa Soybean Association and Iowa Pork Producers Association, the alliance (www.iowaagwateralliance.com) will increase farmer awareness of the Iowa Nutrient Reduction Strategy and their adoption of science-based practices proven to have environmental benefits.

Gov. Terry Branstad, Lt. Gov. Kim Reynolds, Iowa Agriculture Secretary Bill Northey and Iowa Department of Natural Resources Director Chuck Gipp participated in the announcement held at the Iowa State Capitol. They recognized the critical role farmers play in the strategy’s success and the role IAWA will serve in facilitating their engagement and participation.

“Farmers are problem solvers and they rise to any challenge,” Branstad said. “Iowa’s approach to positively impacting water quality as established in the nutrient reduction strategy is unprecedented nationally in both its scope and scale. The alliance will generate additional momentum to the benefit of all Iowans, rural and urban.”

The non-profit alliance is headquartered at the Iowa Soybean Association in Ankeny. It’s governed by a board of directors chaired by ISA CEO Kirk Leeds. Craig Floss, Iowa Corn CEO, serves as vice chair while Rich Degner, Iowa Pork Producers CEO, serves as secretary-treasurer. Additional board members will be added.

“A simplistic, regulatory scheme will not improve water quality nor will another marketing campaign touting the importance of farming,” Leeds said. “Serious matters demand a serious approach and farmers are committed to achieving results. The IAWA is one more example of their readiness to invest private resources to make a real and meaningful impact.”

Organization leaders say the alliance will leverage private partnerships and investments to ramp up public support. The nutrient reduction strategy, they say, is still in its early implementation and private support is critical to boost long-term investments and progress.

Sean McMahon will serve as IAWA executive director. He lives in Cumming, Iowa and presently directs The Nature Conservancy’s (TNC) North America Agriculture Program. He also served as state director of the Iowa Chapter of TNC and prior to that, directed national land stewardship campaigns with the National Wildlife Federation.

McMahon said he relishes the opportunity to serve, adding that the effort will take time and many partners and collaborators to achieve the necessary reductions in nutrient loss at the scale that’s needed.

“I welcome the opportunity to lead such a unique and important effort because I care deeply about Iowa’s natural resources and improving our water quality for current and future generations of Iowans,” said McMahon, who will begin his role with IAWA Sept.15. “Iowa producers have a crucial role to play in helping meet the growing domestic and international demand for food, feed, fiber and fuel and they can do so in an increasingly sustainable manner.

“I look forward to drawing upon my experiences and relationships in both the agricultural and environmental communities to help make significant improvements in Iowa’s water quality.”

One of McMahon’s first responsibilities will be to hire additional IAWA staff including a program-project manager and communications manager. In addition to increasing awareness of the nutrient strategy and increasing the adoption rate of conservation practices, the team will:
·         Enhance understanding by the public and key decision makers about the needed flexibility in addressing nonpoint nutrient sources impacting water quality;
·         Support Iowa State University and other committed partners in developing environmental performance metrics and measurements supported by credible data; and
·         Securing significant funding from public and private sources to accomplish the IAWA’s mission and goals.

The Iowa Nutrient Reduction Strategy approved last year is a science-based initiative to reduce nitrate and phosphorous loads in Iowa waterways from point and nonpoint sources by 45 percent.



Peterson Announces New Agriculture Committee Staff


House Agriculture Committee Ranking Member Collin Peterson today announced that Matt MacKenzie, Evan Jurkovich and Mike Stranz have joined the House Agriculture Committee Minority staff.

“A knowledgeable, experienced staff is important to the work we do on the House Agriculture Committee,” Peterson said. “These new hires will allow us to keep a close eye on USDA’s implementation of the 2014 Farm Bill, address regulatory concerns impacting our farmers and ranchers and continue the Committee’s work to reauthorize the CFTC. I welcome Matt, Evan and Mike to the Committee.”

Matt MacKenzie, Counsel: Matt joins the Committee from the office of Rep. Chellie Pingree, D-Maine, where he worked as counsel, focusing on financial services, budget and tax issues. He also served as a legislative assistant to former Rep. Jim Oberstar, D-Minn. Matt received his law degree from Loyola University Chicago School of Law and earned a B.A. in political science from St. Olaf College. He is a native of Montana.

Evan Jurkovich, Professional Staff:
Evan comes to the Committee from the office of Rep. Dave Loebsack, D-Iowa, where he most recently served as Senior Policy Advisor on issues including energy, environment, agriculture, transportation, infrastructure, science/technology, small business, FEMA, animal welfare and telecommunications. He holds a B.S. in Politics and a B.A. in journalism from Drake University and is pursuing a M.S. in energy policy and climate from Johns Hopkins University. Evan is a native of Minnesota

Mike Stranz, Professional Staff: Mike joins the Committee from National Farmers Union where he served as a Senior Government Relations Representative, developing strategies to implement the organization’s policies on a broad portfolio of agriculture issues. Mike served a similar role at Wisconsin Farmers Union. He holds a B.S. in International Agriculture and Natural Resources: Agricultural Journalism from the University of Wisconsin – Madison. Mike is a native of Wisconsin



Brazil's Soy Area To Grow Despite Price Slide


Brazilian farmers are fretting about the prospects of the upcoming soybean harvest with futures indicating the lowest prices in four years.  But the prospect of tight or non-existent margins won't be enough to stop the momentum of soybeans, the driver behind the impressive growth in Brazilian agriculture over the last decade.  Local analysts believe 2014-15 soybean area will actually grow, by around 4% to about 77 million acres.

That dynamic can be seen most clearly in Brazil's frontier regions. Buoyed by healthy soybean prices since 2011, farmers have converted large swathes of pasture to soybean production in eastern Mato Grosso, Piaui, Tocantins, Maranhao and most recently Para. Conversion takes two-to-three years and so area cleared in 2011 and 2012 will start coming on line this year.  That's a significant driver to the forecast three-million-acre-plus growth in area when planting starts next month.

For those renting land, soybean margins promise to be thin or even negative in Mato Grosso next year. But for those planting on their own land, there is at least some money to be made.  In Sorriso, the state's biggest grain district, planting soybeans offers a margin of R$465 per hectare ($83 per acre), ex-rental costs, according to local consultancy AgRural. That's half the rate registered in 2013-14 but still a profit of 24% over operating costs. And margins will be substantially larger in the south, where logistics are better.

Futures indicate the Brazilian real will fall by 6% between now and March, which would bolster prices for beans. And with the country in the middle of a presidential election, the real could drop even lower at certain moments.

Further good news for the 2014-15 crop comes in the form of the return of El Nino weather phenomenon after a two year absence.  Generally, the phenomenon causes irregular spring showers, which may delay planting, but promotes good summer rains in the south and is seen as a net positive for crops.  As a result, analysts believe summer soybean yields will rise next season, pushing output to around 10% higher than the 86 million metric tons produced last year.



Hormel Reports Record Third Quarter Results


Hormel Foods Corporation, Austin, Minn., reported its performance for the fiscal year 2014 third quarter. All comparisons are to the third quarter of fiscal 2013.

"Our team was able to achieve another quarter of record sales and earnings, with sales up 6% and earnings per share up 21% versus the same quarter a year ago," said Jeffrey M. Ettinger, chairman of the board, president and chief executive officer.

"Strong demand for pork and turkey, and increased sales of value-added products in our Refrigerated Foods, Jennie-O Turkey Store and International & Other segments more than offset a challenging quarter for our Grocery Products and Specialty Foods segments," commented Ettinger. "Our balanced model continues to support consistent revenue and earnings growth."

Grocery Products operating profit decreased 36 percent and total segment sales decreased 3 percent, as our core canned meat and microwave meal franchises were impacted by unusually high input costs and related pricing actions taken earlier this year. SKIPPY peanut butter, HORMEL bacon toppings and the HERDEZ line of products within our MegaMex Foods joint venture delivered volume growth.

Refrigerated Foods segment profit increased 101 percent, and sales increased 12 percent. Results were driven by strong pork operating margins and growth of retail and foodservice value-added products. BLACK LABEL bacon, HORMEL REV snack wraps, LLOYD'S ribs and HORMEL FIRE BRAISED meats experienced sales growth.

Jennie-O Turkey Store segment profit increased 42 percent this quarter and sales were up 4 percent. Increased sales of value-added products along with strong commodity turkey prices and lower feed costs more than offset lower live production performance and higher fuel expenses as the last winter flocks moved through our system this quarter. JENNIE-O ground turkey and JENNIE-O deli products contributed to sales growth during the quarter.

The Specialty Foods segment posted operating profits 25 percent lower than last year with a 10 percent decrease in sales. As expected, lower segment results were largely due to the July 2013 expiration of the agreement allowing Diamond Crystal Brands to sell certain sugar substitutes into foodservice trade channels.

The International & Other segment reported profits up 12 percent and a sales increase of 18 percent. Results were driven by strong growth in our China pork foodservice sales along with the addition of SKIPPY peanut butter in China. SPAM luncheon meat exports were impacted by high input costs.

"Heading into the fourth quarter we will build on the momentum of SKIPPY peanut butter and HORMEL REV snack wraps with advertising campaigns during the back-to-school season," commented Ettinger. "We are excited to enhance our portfolio of leading brands with the addition of MUSCLE MILK premium protein products in the high-growth sports nutrition category."

"We anticipate a strong finish to the year from our Jennie-O Turkey Store segment, aided by beneficial grain markets and growing value-added sales, and from our International & Other and Specialty Foods segments," remarked Ettinger. "The impact of cost pressures in our Grocery Products segment is likely to continue in the fourth quarter, and pork operating margins are not expected to be as beneficial to Refrigerated Foods. Taking all of these factors into account, we expect to finish fiscal 2014 within our previously stated guidance range of $2.17 to $2.27 per share," stated Ettinger.



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