Thursday November 13 Ag News

U.S. Soy Exports Hit New Milestones

U.S. soybean farmers continue to provide their international customers with reliable, quality products, and those customers have once again rewarded them with big purchases. In the 2013/2014 marketing year, the United States exported over 2 billion bushels of U.S. soy, valued at more than $30 billion.

The year got off to a fast start, exceeding the predicted export numbers in early 2014 and finishing strong with record-size crops starting to come out of the fields. According to the U.S. Department of Agriculture, the 2013/2014 export total includes more than 1.6 billion bushels of whole U.S. soybeans, meal from 484 million bushels of U.S. soybeans and oil from 161 million bushels. This total represents 62 percent of U.S. soybean production from last year.

“U.S. soybean farmers are committed to meeting global demand with a quality product,” says Dwain Ford, United Soybean Board International Opportunities Target Area Coordinator and soybean farmer from Kinmundy, Illinois. “These export numbers prove that U.S. soy is a highly valued product in the global marketplace and that U.S. soybean farmers are doing our job.”

Top buyers of whole U.S. soybeans in 2013/2014 include:
•    China: 1.013 billion bushels
•    Mexico: 124 million bushels
•    Indonesia: 75 million bushels

Top buyers of U.S. soybean meal in 2014 include:
•    Mexico: meal from 68 million bushels of U.S. soybeans
•    Philippines: meal from 59 million bushels
•    Canada: meal from 45 million bushels

Top buyers of U.S. soybean oil in 2014 include:
•    Mexico: oil from 36 million bushels of U.S. soybeans
•    China: oil from 35 million bushels
•    Dominican Republic: oil from 22 million bushels



National Pork Board Introduces 2020 Strategic Plan Focused on People, Pigs and Planet

Following more than a year of planning and development, the National Pork Board today released its new strategic plan focused on anticipating and managing the changing world facing U.S. pork producers now and in the future. The plan, to be implemented starting in January 2015, will be in place through 2020 to guide the organization.

Rooted in collaboration between industry and supply chain partners, the new National Pork Board vision is to elevate U.S. pork as the global protein of choice by continuously and cooperatively working to do what’s right for people, pigs and the planet.

“It’s a plan sharply focused on a vision for the future of America’s pork producers. It defines in clear, customer-centered language a set of objectives focused on results,” said Dale Norton, Pork Checkoff president and a pork producer from Bronson, Mich. “Our task force, which included pork producers and representatives from allied industries, defined a commitment to leverage industry and supply chain collaboration to achieve the vision.”

During 2014, the task force met several times, analyzing and discussing economic forecasts and research collected from pork producers, protein processors, foodservice operators, retailers and consumers. Unlike the previous strategic plan, this new effort is more customer-centric, with a commitment to transparency and continuous improvement.

“In the planning process, we connected with customers and consumers. We heard their desire to better understand and have dialogue about U.S. pig farming,” Norton said. “The resulting commitment to greater transparency and collaboration takes on a whole new focus and priority in this plan.”

The task force set three distinct goals to drive National Pork Board performance. The goals, supported by a total of 17 specific and measurable objectives, include:
-    Build Consumer Trust – Working collaboratively with food chain partners, the National Pork Board will enhance consumer trust in modern pork production by promoting producer adoption of on-farm management practices that reflect the industry’s ethical principles and by sharing its commitment to continuous improvement with consumers and key stakeholders.
-    Drive Sustainable Production – The National Pork Board will invest in research and producer education programs that enhance pork productivity and sustainability of pork production and deliver benefits to producers, their communities and consumers.
-    Grow Consumer Demand – Working in concert with food chain partners, the National Pork Board will grow domestic and international consumer demand by focusing on pork’s improved nutrition, quality and sustainability.

Norton said the process also involved a thorough analysis of the domestic and global marketplace, including issues such as animal disease and welfare, food safety, nutrition, economics and the reputation of modern agriculture.

“Viewed collectively, the plan gives us a clear path for moving boldly from where we are now to where we want to be in the future,” Norton said. “We have our big-picture vision for the future and a collaborative blueprint for getting there together as an industry.”

Two additional priorities emerged during the planning task force’s meetings and discussions: clearly addressing the growing global need for pork and shaping the social responsibility commitment of the Pork Checkoff. Toward that end, the duties of two positions were expanded and elevated, with Becca Hendricks named as vice president of international marketing, and Jarrod Sutton named vice president of social responsibility.

“The concerns of our partners in both the international marketplace and the U.S. retail and foodservice arena need to be addressed,” said John Johnson, chief operating officer of the National Pork Board. “Food retailers’ growing interest in production practices and our pig farmers’ social license to operate have an increasing impact on the farm. While, as an industry, we perform well – anchored by our ethical principles – we are continuously striving to improve.”

The National Pork Board will make an increased effort over the next five years to demonstrate this improvement by sharing information with consumers and senior management of retail and foodservice companies, including directors of global supply chains and corporate sustainability officers.

“International markets continue to grow in their importance to the U.S. pork industry. Today, 28 percent of our pork production is marketed internationally,” Johnson said. “With rising incomes in the developing world and pork’s current position as the No. 1 source of animal protein worldwide, international trade requires a higher profile within our programs.”

“In the end, it’s all about helping ensure the long-term success of America’s hog farmers and their families,” Norton said. “This plan taps into the emotional connections consumers have with their food and fuels a fresh dialogue about modern pork production and continuous improvement for the benefit of people, pigs and the planet, while continuing pork’s role as the global animal protein of choice.”

The plan was developed with the guidance of a specially appointed task force. Its members included:
    Pork Board President Dale Norton and Karen Richter, immediate past president
    Board members Jan Archer and Glen Walters
    Roy Lee Lindsey, executive director, Oklahoma Pork Council
    Randy Spronk, past president, National Pork Producers Council
    Jay Akridge, dean of agriculture, Purdue University
    Pork producers Robert Dykhuis, James Heimerl, and Craig Rowles, DVM
    Rich Gallant, vice president, Cargill Meat Solutions
    Joe Jordan, vice president, Domino’s Pizza
    Joe Swedberg, vice president, Hormel Foods
    Leann Saunders, president, Where Food Comes From, Inc.
    Rick Parker, director, JBS USA
    Michael Skahill, vice president, Smithfield Foods
    A representative of a large national retailer



Farmers, Ag tech Providers Agree on Big Data

A coalition of major farm organizations and agriculture technology providers today announced an agreement on data privacy and security principles that will encourage the use and development of a full range of innovative, technology-driven tools and services to boost the productivity, efficiency and profitability of American agriculture.

"NCGA strongly believes that farmers are the sole owners of data gathered through precision farming practices," said NCGA First Vice President Rob Elliott. "This information should not be used, released, or sold without the farmer's consent, and this coalition is an important first step in addressing how farmers and ag tech providers will handle farm-generated data. NCGA will continue to be an active participant in industry-wide discussions about data protocols and protections."

In addition to the National Corn Growers Association, the coalition supporting the principles includes American Farm Bureau Federation, American Soybean Association, Beck's Hybrids, Dow AgroSciences LLC, DuPont Pioneer, John Deere, National Association of Wheat Growers, National Farmers Union, Raven Industries, The Climate Corporation - a division of Monsanto, and USA Rice Federation.

"The principles released today provide a measure of needed certainty to farmers regarding the protection of their data," said American Farm Bureau President Bob Stallman. "Farmers using these technology-driven tools will help feed a growing world while also providing quantifiable environmental benefits. These principles are meant to be inclusive and we hope other farm organizations and ATPs join this collaborative effort in protecting farm-level data as well as educating farmers about this revolutionary technology."

The principles promise to greatly accelerate the move to the next generation of agricultural data technology, which includes in-cab displays, mobile devices and wireless-enabled precision agriculture that has already begun to boost farm productivity across the United States. Many analysts compare today's big-data-driven precision ag to the "green revolution" of the 1960s and 70s, which has likely saved a billion lives or more from starvation since its inception.

Central to the effort surrounding the principles will be grower education initiatives that will include an easy-to-use transparency evaluation tool for farmers. The tool would allow farmers to compare and contrast specific issues within ATP contracts and to see how the contracts align with these agreed-upon principles, and how ATPs manage and use farmers' data.



Ag Land Prices Drop in Parts of Midwest

Farmland values declined across much of the Midwest in the third quarter, continuing a slowdown driven by two years of lower U.S. crop prices, according to Federal Reserve reports on Thursday.

The average price of farmland in the Federal Reserve Bank of Chicago's district, which includes Illinois, Iowa and other big farm states, fell 2% from the second quarter, the largest quarterly drop since the end of 2008, the Chicago Fed said.

In the Kansas City Fed's district, which includes Kansas and Nebraska, land values "declined modestly" from the second quarter, reflecting lower corn and soybean prices and a decrease in profit margins for U.S. farmers, the bank said.

The reports offer further evidence that the U.S. farmland market has cooled after a years-long boom that had prompted some economists to raise concerns about a price bubble. The slowdown started last year, when commodity prices tumbled as farmers harvested a record corn crop and the third-largest U.S. soybean crop. In previous years, rising crop prices stemming from drought and growing demand for corn in the U.S. and abroad fueled a rapid increase in farmland values.

This year, farmers are reaping an even-larger corn and soybean harvest, prompting a further drop in commodity prices and projected lowered incomes for farmers. Corn futures prices at the Chicago Board of Trade have fallen by more than half since reaching a record of more than $8.30 a bushel in 2012.

Some farmers are growing cautious about buying more land "because they aren't going to be making money this year," said Paul Sherrif, who grows crops on about 1,000 acres in western Illinois. "Before, they were all caught up in the returns from farmland, and now they're wondering if they'll have any returns at all."

In the Chicago Fed district, farmland values in the latest quarter were unchanged when compared with year-ago levels. Values rose in Indiana and Michigan on that basis, while declining in Iowa and Illinois, the largest corn-producing states.

"The downturn in crop prices of the past two years finally extinguished the trend of rising farmland values that had prevailed in the district since the fourth quarter of 2009," David Oppedahl, senior business economist at the Chicago Fed, wrote in Thursday's report.

The Chicago Fed said 56% of agricultural lenders it surveyed said they anticipated a further decline in land values in the fourth quarter. That marked the first time since 1998 that a majority of bankers were predicting a decline to come.

Farmland prices in the Kansas City Fed's district remained higher when compared with year-ago levels, with nonirrigated and irrigated cropland values up roughly 1% and 2%, respectively. Irrigated cropland is dependent on man-made water systems for moisture rather than rainfall.

But in Nebraska, where many farmers rely on income from growing grain, land prices declined year over year, dropping 2.5% for irrigated cropland and 2.6% for nonirrigated land.

"After several years of strong price appreciation, Tenth District cropland value gains have dropped considerably," the Kansas City Fed said.

Kansas City Fed district land values were propped up in the latest quarter by prices in areas such as Oklahoma, Wyoming and Colorado, where lessening drought conditions, revenue from mineral rights and a recovering livestock sector have led to healthier profits.

U.S. cattle and hog prices have climbed sharply this year due to tight supplies, and livestock producers have benefited from lower prices for the grain they feed to animals.

Lenders surveyed by the Chicago Fed said some farmers in the region had purchased livestock in the hope of winning back profits lost from growing crops. Still, the bank said gains made by those raising farm animals couldn't make up for losses among crop farmers or prevent land prices from falling in many regions.

Bankers in the Midwest warned of financial stress for crop farmers. Lenders in the Chicago region reported a significant rise in demand for farm loans from a year ago, and the Chicago Fed said an index of loan-repayment rates had reached the lowest level since 2010.



EIA: Weekly Ethanol Stocks Higher

Ethanol inventories in the United States increased for the second straight week ended Nov. 7 to a three-week high as production climbed while blending demand remained steady, the Energy Information Administration reported on Thursday, Nov. 13.

Total ethanol stocks surged 536,000 barrels (bbl) to 17.705 million bbl during the first week of November, climbing 2.6 million bbl, or 18.8%, above the level seen a year earlier.

The stock builds were reported in PADD 2 Midwest, PADD 3 Gulf Coast and PADD 5 West Coast, while flat in the PADD 4 Rocky Mountain region and PADD 1 East Coast.

The Midwest saw the biggest jump, rising 300,000 bbl to 5.8 million bbl, the highest supply rate for the region since the week-ended Sept. 12, the data showed, as logistical woes hampered shipments from the Midwest producer region.

Plant production jumped 17,000 barrels per day (bpd), or 3.1%, last week to 946,000 bpd while up 2.0% year-over-year, with four-week average output up 2.0% at 927,000 bpd. The increase in production was predicted by trade sources.

Blender inputs, a proxy for ethanol demand, held steady at 860,000 bpd while down 1.6% year-over-year, although four-week average demand edged up 0.7%.



Rail car loadings up 4.5 percent

The concern over the availability of rail service has the federal government tracking the railroads more closely. The latest numbers from the U.S. Energy Information Administration shows that for the first ten months of the year, railcar loadings of all commodities are up 4.5 percent compared to the same period in 2013.  Loadings of grain are up 15 percent and petroleum product loadings are up 13 percent year-to-date.

Coal is by far the largest commodity hauled by rail. The Association of American Railroads reports from January through October there were 4.9 million carloadings.  In the same period there were 878,824 carloadings of grain and 672,118 carloadings of oil and petroleum products.



Yili, DFA to Build Kan. Plant

China's Inner Mongolia Yili Industrial Group Co. is building a $100 million milk-powder factory in Kansas with Dairy Farmers of America Inc., as the country's second-largest dairy producer by revenue extends its year-old partnership with the U.S. cooperative amid an expansion race among Chinese dairy giants.

The plant will be able to produce 80,000 metric tons of milk powder a year, Yili said in a filing late Wednesday to the Shanghai Stock Exchange.

Under the terms of the deal, Yili will invest $30 million in the venture, and Dairy Farmers of America will provide the balance, the Chinese company said.



2014 U.S. Wheat Crop Quality Report Now Available

U.S. Wheat Associates (USW) has published its 2014 Crop Quality Report on www.uswheat.org at http://bit.ly/1wua5Uw. USW is now sharing the data with hundreds of customers around the world through its annual series of Crop Quality Seminars. “Wheat Letter” recently shared summary data for the 2014 soft red winter (SRW) and hard red winter (HRW), soft white (SW) and durum crops. We summarize 2014 quality data for hard red spring (HRS), soft white (SW) and durum in this issue. In addition, quality data for hard white (HW) is included in the final Crop Quality Report.

Hard Red Spring. The 2014 HRS crop is large with a good grade profile and generally similar functional quality to the 2013 crop. This crop is 14 percent larger than 2013 due to larger planted area and excellent yields, especially in the Northern Plains. Yields were below recent averages in the Pacific Northwest region. The average grade is No. 1 NS with 82 percent of the samples from the West export region and 90 percent from the East grading No. 1. Protein and vitreous kernels are lower than average because of late-season rainfall and will be premium-pricing factors. Average protein is 13.6 percent, similar to 2013 but about one-half point below the five-year average. Average vitreous kernel content (DHV) in both regions is 48 percent, the lowest average in a number of years. While DON and lower falling numbers affected some areas, these factors are not significant in the overall crop averages. Functional performance tends to improve with higher protein segments, though buyers may find good value opportunities in lower protein segments due to wide spreads in market pricing. Because of the quality variability this year, diligent contract specifications for DHV, DON and falling number are encouraged to ensure buyers get the quality they demand.

Soft White. The 2014 crop has the typical high quality expected of SW with high test weight, slightly higher than average protein and excellent milling and processing characteristics. Average SW wheat protein (12 percent mb) of 10.9 percent is higher than 2013’s 10.3 percent and the five-year average of 9.9 percent. White club (WC), a sub-class of SW, had average protein of 11.1 percent, which is also higher than last year’s 10.5 percent and the five-year average of 10.0 percent. SW and WC sponge cake volumes and scores are lower than 2013 and the five-year averages. SW cookie diameter is smaller than last year and the five-year average, while WC cookie diameter is similar to last year and the five-year average. SW and WC cookie spread factors are less than last year and five-year averages. Specific volumes for Chinese southern-type steamed bread, compared with a control flour, are higher for SW and WC than last year and five-year averages. Total steamed bread scores are slightly lower than 2013 but higher than the five-year average for SW and lower than the five-year average for WC.

Northern Durum. Buyers will find a wide range of values in the 2014 northern durum crop due to challenges from adverse weather. Variability in such key parameters as vitreous kernels, falling number, protein and DON mean buyers must evaluate the importance of each factor for their end-use needs. Similar conditions in Canadian durum production mean an extended period of challenge for the world’s durum buyers. Premium contract specifications will command higher prices and buyers will have to be diligent about contract specifications and communication with sellers.

Desert Durum®. While total 2014 Desert Durum® harvested area was lower than in 2013, higher yields helped offset a production drop. The new crop exhibited consistently large kernel size and low moisture, traits that contribute to high extraction rates. Overall, quality characteristics met expectations. As buyers have come to expect, the 2014 Desert Durum® crop will deliver valuable milling as well as strong semolina and pasta quality traits.



FMC Corporation Introduces 3RIVE 3D™ — New Crop Protection Delivery Platform for Three-Dimensional In-Furrow Protection

FMC Agricultural Solutions announces the introduction of a new at-plant crop protection delivery platform for row crops. The patent-pending 3RIVE 3D™ technology integrates formulation technology, application technology and active ingredients to increase the number of acres planted in a day, in-furrow protection and early season success.

FMC scientists used their market-leading formulation expertise to reduce the amount of water needed to deliver crop protection products to the furrow. Just 40 ounces of solution is applied per acre. The 3RIVE 3D manifold precisely mixes the right amount of product with a very low volume of water and expands the mixture up to 50 times into a three-dimensional continuous Zone of Protection delivered directly into the furrow. The 3RIVE 3D applicator includes a compact 130-gallon water tank, a 30-gallon product tank, and all moving parts, compactly skid-mounted for easy installation on all major planter brands.

“We developed the 3RIVE 3D technology to optimize 3D seed coverage for unmatched seed and seedling protection while simultaneously helping growers improve their efficiency. It creates an entirely new way to deliver crop protection products for seedling defense and yield enhancement,” said Aaron Locker, marketing director for FMC. “The system is designed to help plants and farmers thrive.”

This technology sets growers free to easily and efficiently cover more acres in less time while saving water, fuel and labor. “Growers can plant up to 500 acres between refills,” said Matt Hancock, FMC North American corn segment manager. “With tight planting windows and more variable weather, growers are demanding technology that allows them to cover more ground faster. 3RIVE 3D™ helps growers get more done in a day.”

Capture® 3RIVE 3D™ is the first product formulated to integrate with this game-changing delivery platform that brings a whole new dimension in precision and performance to in-furrow application. Capture® LFR® and Capture 3RIVE 3D are restricted use pesticides. Capture 3RIVE 3D offers all of the agronomic benefits of Capture LFR, the leading liquid at-plant insecticide brand, controlling corn rootworm as well as seed and seedling pests such as wireworm, cutworm, grubs, armyworm, seed corn maggot and common stalk borer. By overcoming issues like handling, convenience, water usage and weight, Capture 3RIVE 3D opens opportunities for more growers to take advantage of an at-plant solution that won’t slow them down and fits the way they farm.

The introduction of 3RIVE 3D is the first of many new product introductions expected from FMC as it increases its pace of new product launches. “The 3RIVE 3D system is part of a broader technology play of bringing innovative solutions that will help growers be more productive on every acre. We see this as an innovative platform that provides the opportunity to combine multiple active ingredients including insecticides, fungicides and biostimulants,” Hancock said. “Our pipeline is packed with potential new offerings.” With the purchase of the Center for Agricultural and Environmental Biosolutions, a strategic collaboration with Chr. Hansen and the acquisition of Cheminova that is expected to close in early 2015, FMC has invested billions to create an expanded pipeline of active ingredients and a biological platform to deliver effective and sustainable crop solutions.

Capture 3RIVE 3D was tested in 27 research trials across eight states and with six universities in 2014. Research trials will be expanded to 11 states in 2015. The technology will be deployed on 100 farms in 2015, with a full-scale launch in 2016. 3RIVE 3D formulated products will be sold to growers through the FMC network of qualified Star Retailers.

3RIVE 3D is a novel technology that combines molecule and machine into a precision platform for solutions and use patterns that will enhance productivity through seedling defense, plant health and farming efficiency.



Christie faces Iowa pressure on pig crate ban
(AP) -- There are not that many pigs in his home state. But there are millions in the early presidential voting state of Iowa. And that's making for a tough decision for Chris Christie, who is both New Jersey's governor and a potential presidential candidate.

Christie has until early December to decide whether to sign a bill that would ban pig farmers in the state from using devices called gestation crates, or metal cages, that are so small that pregnant pigs can't turn around.

The bill has the overwhelming support of Republican and Democratic state lawmakers in New Jersey, where it would have little-to-no impact - the state's roughly 300 pig farms don't regularly use the crates.

But Christie's decision is being watched closely in Iowa, the nation's largest pork producer and home of 2016's first presidential nominating contest.

In particular, Christie has received pressure from Iowa Gov. Terry Branstad, whose relationship he has carefully cultivated and who could prove a crucial ally in the early-voting state if Christie decides to run. Branstad, a Republican who won easy re-election last Tuesday, is ardently opposed to the restrictions and told The Associated Press he called Christie to urge him to reject the bill when an earlier version landed on his desk last year.

"I called him to tell him how bad I thought it would be and how the people that are involved in pork production, that really understand this, feel this would be very bad," said Branstad, who argued the crates provide protection to baby pigs that could be crushed to death by older pigs that fall over.

He said the two discussed the new legislation again when Christie attended Branstad's pre-election birthday bash fundraiser last month.

"I just think, unfortunately New Jersey's a state that doesn't raise a lot of hogs. There's a lot of misinformation," Branstad said.

Advocates of the change, however, argue the crates are cruel to pregnant pigs that aren't at risk of crushing piglets yet to be born. Matthew Dominguez, a public policy manager at the Humane Society, said breeding females can spend up to four years in the crates on some farms, which is "not only unnecessary, but incredibly detrimental" to their mental and physical health.

"There's no reason other than potentially Iowa why he would veto this bill," he said.

While New Jersey's pig population pales in comparison to states like Iowa - the United States Department of Agriculture estimates there were 9,000 pigs in New Jersey at the end of 2013, including about 700 breeding sows - he said the bill was aimed at ensuring the practice did not spread.

Christie vetoed an earlier version of the bill last year, saying the decision should be left to his Department of Agriculture.

"The proper balancing of the humane treatment of gestating pigs with the interests of farmers whose livelihood depends on their ability to properly manage their livestock best rests with the state's farming experts - the State Board and the Department," he wrote in his veto message.

The new bill puts more control in the department's hands.

A spokesman for the governor's office declined to comment except to say the bill remains under review.

This time, the Humane Society has also organized a more visible campaign, with letters from celebrities like Danny DeVito, Bob Barker and Bill Maher and displays across the state. They also commissioned a poll trying to show that Iowa GOP caucus-goers would view Christie more favorably - not less - if he signed the bill into law, which they shared with his staff.

"Anticipating that that might be a concern of his, we wanted to provide assurance that this is not just the popular thing to do in New Jersey, but also in Iowa," said Wayne Pacelle, the president pf the Humane Society of the United States.

State Sen. Raymond Lesniak, the bill's primary sponsor and a frequent Christie critic, said he was hopeful that playing to Christie's potential political ambitions would lead to a more positive outcome.

"I'm cautiously optimistic that we're going to have a different result this time around," he said.