Tuesday January 20 Ag News

Beef Profit Tips Workshop to be Held in West Point

Area Cow/Calf producers will want to make plans to attend the Beef Profit Tips Workshop.  According to Nebraska Extension Educator in Cuming County, Larry Howard, the workshop will be held on Thursday, February 19 at 6:30 p.m. at the Cuming County Courthouse Meeting Room in West Point.

Topics on this years program are Alternative Forages, Windrow Grazing and Beef Economics/Industry Outlook.  The registration fee is only $10 per person payable at the meeting.  Pre-registration is encouraged by noon on February 18 by contacting the Cuming County Extension Office in West Point.



Cuming County Cow/Calf Association to Meet

The Cuming County Cow/Calf Association will be holding their annual membership meeting on Sunday, February 15 at JD’s Bar & Grill in West Point.  Social hour will be held at 6:30 p.m. with meal and program to follow.

The program is “Using Cover Crops for Forage” and will be presented by Mary Drewnoski, Nebraska Extension Beef Systems Specialist from Lincoln.

All current or prospective members are encourage to attend.



On-Farm Research Network Update
Keith Glewen, UNL Extension Educator

This is an exciting time of the year for those of us involved in working with the Nebraska On-farm Research Network as we see firsthand the results from growers who conducted research on their farms in 2014 and to discuss what research is needed in 2015.

Consider this your invitation to join us at one of the dates below where we will cover all of the on-farm research studies conducted in 2014. Those dates and locations are:
  - Friday, Feb 13 - Hall County Extension Office, College Park, Grand Island.
  - Monday, Feb 16 - Northeast Research & Extension Center, Lifelong Learning Center, - Norfolk
  - Tuesday, Feb 17 - Southeast Research & Extension Center/ARDC, Near Mead

Thanks to financial support from the Nebraska Corn Board, Nebraska Corn Growers Association and the Nebraska Soybean Board there is no cost to attend. 5 CCA Credits are being offered pending approval.

Starting time is 9:00 (CST) Registration, coffee & rolls, 9:30 program starts and we’ll conclude by 3:30 p.m.

For meal planning purposes and printing reports, we need you to pre-register by calling 402-624-8000 for any one of the three locations.

We hope you will be able to join us. Historically this program provides for a lot of good discussion among those present concerning the agronomics associated with crop production.



Nebraska Farm Bureau Backs Bills Providing a “Foundation” for Property Tax Relief

Nebraska farm and ranch families seeking relief from a property tax burden that has skyrocketed over the last decade and left agriculture landowners to shoulder a disproportionate share of the property tax burden statewide, would find relief under a series of legislative bills the Nebraska Farm Bureau Federation believes should serve as the foundation for property tax relief efforts in the 2015 Legislative session.

“The pieces necessary to provide a foundation for meaningful property tax relief have been introduced for consideration in the Legislature and we are very appreciative of those who have introduced those bills and of others who have brought ideas to the table,” said Nebraska Farm Bureau President Steve Nelson, Jan. 20.

Nebraska farmers and ranchers account for less than three percent of the state’s population but now pay nearly 30 percent of the total property taxes collected statewide, a trend that began in 2008 when taxes collected on agricultural land began to climb at an accelerated rate in comparison to commercial and residential sectors. During that same time not only did farmers’ and ranchers’ share of property tax responsibilities grow, the amount of property taxes collected reached unprecedented levels. Nebraska farm and ranch families now pay the third highest property taxes in the country. Only agriculture land owners in California and Texas pay more in property taxes.

“We know there are a lot of ideas out there about how to tackle the property tax issue. The bills we are backing address several issues. Among them is the inequity in the property tax system as it relates to Nebraska farm and ranch families. It also reflect opportunities to provide immediate tax relief, but also start down the path of providing long-term property tax reform by limiting property tax growth and starting the process of addressing how we fund schools, the largest user of property taxes. We believe the combination of approaches in these bills would provide relief to farmers, ranchers and all Nebraskans seeking property tax relief,” said Nelson.

The bills Farm Bureau believes should serve as the foundation for tax relief include:
LB 178 – Introduced by Sen. Dan Watermeier of Syracuse, the bill reduces the level of taxable value for agricultural land for school taxation purposes. The measure would lower the taxable value from 75 percent of market to 55 percent of market over a four year period, with similar adjustments being made in the calculation of state aid to schools.
LB 350 – Introduced by Sen. Lydia Brasch of Bancroft, the bill would reduce the value of agricultural land from 75 percent of market value to 65 percent of value for taxation purposes.
LB 351 – Introduced by Sen. Lydia Brasch of Bancroft, the bill would send 20 percent of the state income taxes collected in a local school district, back to the district for school funding purposes. Current state law calls for 12 percent of income taxes collected locally to be returned to the district. The bill also removes the minimum levy penalty in the state aid to schools formula that penalizes districts for having lower tax levies.
LB 364 – Introduced by Sen. Dan Watermeier of Syracuse, the bill would allocate an additional $60 million per year for the next two years to the state’s Property Tax Credit Program. The program provides direct relief to all Nebraskans who pay property taxes.

“Property taxes are the number one issue I hear about from constituents. Putting more dollars into the Property Tax Credit Program will provide immediate and direct relief to individuals in my district and individuals statewide. The additional $60 million dollars for the Property Tax Credit Program would not only reduce the overall collection of property taxes, but provide nearly $50 million in property tax savings for farm and ranch families through the Property Tax Credit Program,” said Sen. Dan Watermeier.

“Lowering the value of agricultural land from 75 percent of value to 65 percent of value for tax purposes will provide direct relief to our agriculture families and do so in a uniform manner. In addition, the concept of returning a greater percent of income taxes to local schools would ensure all schools receives some form of state funding assistance. That’s an issue that has been a concern for schools that receive no equalization aid and for tax payers in those districts,” said Sen. Lydia Brasch.

Nebraska Farm Bureau president Nelson said the organization looks forward to further working with members of the Legislature and the Governor to discuss the merits of the ideas contained in these proposals.

“We are confident the Legislature understands the need for property tax relief and it is imperative we work collectively to make that happen. We believe the core of these bills present a path to move forward to address the property tax issue,” said Nelson. 



Agriculture, Environment and Natural Resources becomes a Bureau within the NE A-G’s office

As one of his first actions of taking office, Attorney General Doug Peterson advanced an existing section of agriculture and environmental issues within the Consumer Protection Division to become a Bureau of the Attorney General’s office.

Justin Lavene is the Bureau Chief of the newly formed Agriculture, Environment and Natural Resources Bureau. “Elevating these important areas to the Bureau level reflects the longstanding battles we have had to address in Nebraska related to water as well as the imminent concerns of what is on the horizon with federal regulations.” Peterson said.

Peterson goes on, “As an agriculture rich state, we are proud to recognize Nebraska’s rich agricultural heritage with a dedicated Bureau in the Attorney General’s office.”

Justin Lavene supervises the litigation support for Nebraska state agencies and boards, including the Department of Natural Resources, Department of Environmental Quality, Department of Ag, Game and Parks Commission, Environmental Trust and the State commodity boards.



Market Trends Continue to Point to ‘Soft Landing’ for Farmland

Cropland prices in Iowa, Nebraska, South Dakota and Wyoming declined some in the final six months of 2014, while demand for pastureland remained strong. The latest benchmark farm values and sales data tracked by Farm Credit Services of America (FCSAmerica) continue to point to a “soft landing” for farmland after years of price increases.

FCSAmerica releases its farmland study every January and July, using sales records and its 64 benchmark farms to compile the largest database of land values in the four states.

Iowa - Fifteen of the 21 benchmark farms tracked by FCSAmerica in Iowa decreased in value during the past year, with an average drop of 8.8 percent. Only one benchmark farm increased in value. As a whole, Iowa benchmark farm values were down 6.1 percent in January 2015 compared to July 2014. This follows 10 years of rising land prices, with farmland values still up 196 percent. In areas of Iowa, sale prices remain near historical highs. The highest sale in the fourth quarter of 2014 was $15,300 per acre in Plymouth County.

Nebraska - Benchmark farm values decreased 1.7 percent in the last six months of 2014 and were down 0.2 percent in January 2015 compared to January 2014. Five of the 18 benchmark farms increased in value, while four remained unchanged. Nebraska farmland values remain up nearly 290 percent compared to 10 years ago.

South Dakota - Values on 13 of the 23 benchmark farms increased or remained unchanged in the final six months of 2014. As a whole, benchmark values were up 2 percent in the last half of 2014 and 7.8 percent for the year. Farmland values have increased more than 280 percent during the past decade.

Wyoming - Values on benchmark farms were up nearly 7 percent compared to the end of 2013, driven by strong beef calf prices and returns.

The decline in land values reflects softening in the cropland market following significant drops in grain prices. As corn prices settle at about $3.50 to $4.00 per bushel, profitability on higher-priced land is top of mind for many producers, putting downward pressure on cropland prices and cash rents. Cropland prices in the final six months of 2014 fell 7.1 percent in Iowa; 4.8 percent in Nebraska; and 4.6 percent in South Dakota.

By comparison, strong livestock prices increased demand for pastureland in each of FCSAmerica’s four states. Prices for pastureland rose 0.2 percent in Iowa; 5.9 percent in Nebraska; 4.8 percent in South Dakota; and 1.7 percent in Wyoming.



Nebraska Farmers Examine Export Markets in South America

Corn Board member and district two representative, John Greer from Edgar, Nebraska recently had the unique opportunity to experience a global market in South America from both the eyes of a customer and competitor.

Greer was a member of the U.S. Grains Council’s (USGC) Grain Export Mission (GEM) that travelled to South America to observe local conditions, learn about trade opportunities and constraints and also meet with foreign customers eager for insight into U.S. production and export systems.   Greer and his group visited Colombia and Brazil while another GEM group visited Argentina and Mexico. 

“Traveling to South America was an exceptional opportunity to see the global market place at work”, said Greer. “After spending some time with buyers and end-users in Colombia, we were pleased to hear that the U.S.-Colombia free trade agreement has created significant market opportunities for U.S. corn and corn co-products.”

Colombia is the second largest corn importer in the Latin American region and a country in which the United States traditionally captured more than 80 percent of the market, though there had been erosion in U.S. market share due to unfavorable tariff treatment.

This year, Colombian buyers returned to purchasing U.S. corn, driven by price and advantages from the implementation of the free trade agreement.  In fact, the country exceeded its tariff rate quota (TRQ) in June but still continued to purchase U.S. corn.

Greer’s team also visited Brazil, a critical competitor for U.S agricultural exports but a market that faces many challenges with infrastructure. Understanding the current reality and the future prospects of Brazil’s agricultural production is vital for U.S. farmers as they continue to export their commodities into the global marketplace.

“Colombia and Brazil are emerging economies that have remarkable global potential,” said Greer. “As they continue to work to overcome their security and infrastructure problems, I predict their grain and livestock industries will develop into even greater market prospects for American exports.”

At the completion of the mission, the two GEM groups met with USGC leadership and staff in Panama to debrief about their experience. Alan Tiemann, farmer from Seward, NE and at-large director on the NCB and vice chairman of the USGC, led many discussions with the GEM participants during their time in Panama. The participants concluded their mission with a tour of the Panama Canal, which gave them an opportunity to see first-hand the progress of the Panama Canal’s expansion project.

“The purpose of the GEM is for participants to gain a clearer understanding of the challenges, opportunities and competition we face in the international marketplace, said Tiemann. “The opportunity for American producers to personally communicate and establish relationships with these key end-users and buyers is an essential piece to our global success. With 95 percent of the world’s population living outside our borders, global awareness and connections are increasingly vital for everyone involved in agriculture.”



2015 ISU Crop Cost Estimates Released

Iowa State University Extension and Outreach released its annual publication titled Estimated Costs of Crop Production in Iowa – 2015. The publication is intended to help farmers determine their own potential 2015 crop costs per acre and per bushel. The calculations take into consideration the various crop costs like tillage practices, machinery, inputs, labor and land for varying yield expectations.

“In 2015, we expect a drop in the crop cost estimates for both corn and soybean production in Iowa,” said Steve Johnson, farm management specialist with ISU Extension and Outreach. Due to differences in soil potentials, crop rotations, quantity of inputs used and other factors, production costs will vary from farm to farm.

As reported in the January 2015 issue of Ag Decision Maker newsletter, Johnson explained how they present the estimates, “The 2015 Iowa Crop Cost Estimates bar chart indicates the 2015 cost estimates for three different crop rotation options assuming conventional tillage practices and medium-yield expectations. Total costs are expected to decline from 2014 by 1 to 2 percent depending on the crop planted," he said.

These cost estimates are representative of average costs for farms in Iowa. Very large or small farms may have lower or higher fixed costs per acre.

To calculate annual production costs, farmers may enter individual assumptions in the blanks on the budget tables in the 13-page publication. “Under ‘Your Estimate,’ farmers can list inputs like cash rent equivalents, rents for lower-grade land and even machinery operating costs, which all are projected to drop. Others like seed corn or fertilizer and lime costs for corn production may increase. "This tool will make it easier to project crop production costs when planning this year’s income and expenses,” said Johnson. Decision Tool spreadsheets for each crop budget also are available to do the calculations electronically and allow users to save the analysis to their computer.



In Wake of State of the Union, Corn Growers Call for Trade Promotion Authority

With President Obama and Sen. Joni Ernst each highlighting the importance of trade in the 2015 State of the Union address and Republican response, the National Corn Growers Association urged passage of bipartisan Trade Promotion Authority legislation this year. 

“Modernized TPA improves our nation’s ability to advance trade agreements that open markets for U.S. farmers,” said NCGA President Chip Bowling. “Ag exports, at nearly $150 billion, support over one million American jobs.” 

Currently, the United States is pursuing an ambitious set of trade negotiations, including the Trans-Pacific Partnership and the Transatlantic Trade and Investment Partnership. Trade Promotion Authority legislation, which renews the president's authority to submit trade agreements to Congress for an up-or-down vote without amendments, is critical in finalizing agreements such as TPP because it assures our trading partners that a final deal won't be altered by Congress.

“We are encouraged by Senator Ernst’s call to work together and tear down trade barriers. Couple TPA with normalized relations with Cuba, and farmers and consumers – both here and abroad – will benefit,” Bowling said.



Soy Growers Call on Congress, White House to Unite on Trade, Infrastructure, Rural Development Improvements

The American Soybean Association (ASA) issued its annual response to the president's State of the Union address on Tuesday night, and called on the Obama Administration and members of the House and the Senate to work together on issues vital to soybean farmers, including trade, infrastructure and rural development.

"Congress and the administration are at a crossroads," said ASA President and Texas farmer Wade Cowan. "They have an opportunity to come together on issues that can drive real progress for soybean farmers across the country. In his address tonight, President Obama focused on several projects that we at ASA believe are essential to our success moving forward."

"First, Trade Promotion Authority is long overdue," said Cowan. "The United States is currently involved in the negotiation of major trade deals, including the Trans-Pacific Partnership and the Transatlantic Trade and Investment Partnership, which have the potential help to protect and expand agriculture market access in the Pacific Rim and Europe. Soybeans are the nation's leading farm export, and it's critically important that Congress pass and the President sign a completed TPA package that will lay the groundwork for robust and comprehensive trade agreements."

"We cannot improve trade without modern ports," continued Cowan, "and we are pleased to see the president discuss our nation's infrastructure needs as well. We depend on ports in nearly every coastal region of the United States to carry our soybeans abroad, and we must continually invest in this supply chain to stay ahead of our foreign competitors."

Cowan also noted ASA's enthusiasm with the administration's work towards the normalization of relations with Cuba. "It is encouraging to see that steps are being taken to normalize relations with Cuba, though there is more work to be done," he said. "Congress must work to fully end the long-standing embargo and allow open trade and investment that will enhance Cuban citizens' access to affordable food and provide the U.S. farmers with expanded market access opportunities."

Finally, Cowan welcomed President Obama's commitment to broadband internet connectivity, and in particular rural broadband internet access. "The president's support for bringing broadband and wireless services to 'every community' including those in rural America is extremely important for our farmers, especially in light of the precision agriculture tools we use in our operations," Cowan added. "As we become ever more connected, this effort will ensure rural communities share in the opportunities afforded by modern broadband access, and their collective progress will continue."

"In the eyes of America's soybean farmers, these are no-brainers," concluded Cowan. "These are bi-partisan issues around which we believe all parties can coalesce and find consensus. We are committed to working with them to see these plans to fruition, and we hope they will echo that commitment."



Prices for All Retail Fertilizers Creep Higher

All retail fertilizer prices tracked by DTN for the second week of January 2015 edged slightly higher compared to a month earlier, DTN's latest national survey found.

However, prices for none of the eight fertilizers registered a move of any significance, with DAP averaging $566 per ton, MAP $594/ton, potash $486/ton and urea $465/ton. 10-34-0 had an average price of $581/ton, anhydrous $710/ton, UAN28 $325/ton and UAN32 $364/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.51/lb.N, anhydrous $0.43/lb.N, UAN28 $0.58/lb.N and UAN32 $0.57/lb.N.

cHalf of the eight major fertilizers are now double digits higher in price compared to January 2014, all while commodity prices are significantly lower from a year ago. DAP, 10-34-0 and anhydrous are all now 15% more expensive while MAP is 14% more, potash is 3% higher and UAN28 is 1% more expensive.

Two nutrients are still lower compared to retail prices from a year ago. Both urea and UAN32 are 1% less expensive from a year previous.



Brazil's Center-West, Southeast Soy Farmers Wait For Rain

After a couple of weeks of irregular showers, Brazilian farmers in the top-producing Center-West and neighboring Southeast are uneasily waiting for rain.

With crops variously in flowering and pod-filling stages, heavier precipitation is vital.

Weather forecasts indicate the atmospheric block that has stopped rain-carrying weather systems from passing over the region may finally be pierced this week.

Not only has rainfall been below average across most of the Center-West soy belt in January, temperatures have been high.

Soybean harvesting is moving forward in Mato Grosso, reaching 4.1% as of Friday, up two percentage points on the week before, according to the Mato Grosso Agricultural Economy Institute.

Average yields up to now have been a respectable 48 bushels per acre.

Elsewhere, in Parana and Goias, harvesting is about 1% complete. In Goias and the north of Parana more rainfall is needed. However, in the rest of Parana, the No. 2 soy state, and Rio Grande do Sul, the No. 3 soy state, soil moisture levels are high.



Biodiesel leaders say policy makers need to consider the facts to get the Renewable Fuels Standard back on track

Arguing that federal policy makers must see through the false attacks by renewable fuels opponents and provide certainty for their advanced biofuel industry, biodiesel advocates opened the doors to the public today at the National Biodiesel Conference and Expo in Fort Worth.

Last year, the Obama Administration failed to finalize biodiesel volumes required under the Renewable Fuel Standard (RFS). As a result, indecision surrounding the policy led numerous biodiesel plants to shutter operations, decrease production and lay off workers.

“President Obama has declared an all-of-the-above energy policy and made addressing climate change a priority,” said Joe Jobe, CEO of the National Biodiesel Board. “The RFS has demonstrated success in contributing to both those top priority goals.

“It is our goal for 2015 to get the RFS back on track.”

After the record year of nearly 1.8 billion gallons in 2013, the EPA initially proposed in November 2013 to hold the 2014 RFS biodiesel volume at 1.28 billion gallons. The agency subsequently withheld a final rule and has still not established 2014 volumes, even as it has signaled that it will improve the original proposal. The continued uncertainty throughout the year has left the industry in a state of limbo, although many biodiesel companies continued producing based on assurances from the Administration that RFS volumes would increase.

Delivering his remarks at the Fort Worth Convention Center, Jobe began his presentation by invoking the tenants of Joseph Pullitzer and the first rule of journalism: “the truth matters.”

While acknowledging the biodiesel industry has many friends and good working relationships among oil producers, RFS opponents have distorted the record of renewable fuels, as well as made alarming predic- tions for the program – predictions that have proven wildly inaccurate, Jobe said. As a result, he said, the implementation of effective policy has been consistently damaged by their misleading rhetoric.

In one example, Jobe pointed to a 2012 study by the American Petroleum Institute that predicted that biodiesel requirements under the RFS would result in a “Diesel Death Spiral” that would increase diesel fuel costs to about $15 per gallon in 2014 and $70 in 2015. Their predictions proved to be wildly incorrect, yet they continue to site the flawed study.

Obviously, Jobe said, it’s an understatement to say those predictions were vastly off the mark. “Sensationalist tabloid headlines have no place in serious public policy debate – it makes for bad public policy,” Jobe said.

Now, Jobe said, some in the petroleum industry claim that America has achieved energy independence thanks to fracking of shale oil in Texas and North Dakota and from strip mining of Canadian Tar Sands. However, the fallout from the decision not to decrease production by the Organization of Petroleum Exporting Countries (OPEC) has demonstrated once again the fallacy of that argument.

Since OPEC’s Thanksgiving decision, an already glutted fuel market became flooded in oil from Saudi Arabia and other members of their international cartel, driving prices so low they threaten to bankrupt the domestic fracking industry.

With a trillion dollars in reserves and production costs less than $6 per barrel, “The Saudis can outlast all their competitors,” Jobe said. “This is what monopolies and cartels do. They use anti-competitive tactics to raise, or in this case lower prices to squeeze competitors and alternatives out of the market. Then they increase prices to maximize their profits.”

That’s why the RFS is such a critical policy, Jobe said. Only by diversifying the transportation fuels market and providing competition to crude oil can the U.S. truly achieve energy security, he explained.

“The RFS is a good policy – it is pro-competitive, pro-consumer, free-market capitalist policy,” Jobe said. And, “2015 was intended to be a turning point for the RFS,” he said. “For the first seven years, conventional biofuel was designed to lead the growth in volumes until 2015 where conventional biofuel is statutorily capped at 15 billion gallons. From 2015 on, advanced biofuels are intended to lead the growth of the program. And so far, biomass-based diesel has emerged as the only domestically-produced, fully commercialized advanced biofuel.

“2015 has to be the year we get back to the future of this program and out of the uncertainty the past.” ”



DuPont Pioneer Encirca℠ Yield Stand Helps Growers Maximize Plant Stands and Yield Potential

DuPont Pioneer is expanding Encirca℠ services to help growers maximize plant stands and yield potential by providing information that will allow growers to look at their fields in an entirely new way. The new service is Encirca℠ Yield Stand, which joins the Encirca℠ Yield Nitrogen Management Service as a cutting-edge input management offering for growers.

The novel approach of the Encirca℠ Yield Stand service helps growers tailor corn and soybean planting prescriptions to unique areas of each field.  Risk analysis and planting priority tools help growers make real-time adjustments if weather or other factors interfere with spring planting. Post-season yield analysis and consultation with a trusted Pioneer advisor offers the opportunity to learn from every field every season.

"The mission of Encirca℠ Yield is to give growers information to help them maximize yield by holistically optimizing inputs like seed and nitrogen fertilizer while also factoring production challenges like planting delays and unseasonal weather," said Steve Reno, DuPont Pioneer vice president, regional director – U.S. & Canada.

Using 20 years of Pioneer agronomy research, Encirca℠ Yield Stand can make a prediction of the impact from a planting delay of even a few days. For instance, if rain delays corn planting, a Pioneer advisor can work with the grower using the tools in Encirca℠ Yield Stand to help the grower assess whether to change the order of the fields they are planting. The goal is to maximize performance considering estimated crop yields along with potentially limiting factors like heat risk during flowering and pollination and historic trends for early and late season frosts.

Additionally, Encirca℠ Yield Stand works together with the Nitrogen Management Service to help growers differentially manage acres at a sub-field level or decision zone to improve productivity and control costs.  The Nitrogen Management Service helps growers apply varied rates of nitrogen fertilizer (N) to improve yields in parts of the field that can benefit from higher N levels. Encirca℠ Yield Stand allows growers to adjust seeding rates to make better use of fertility-enhancing nutrients and high-productivity areas.

Since 2011, Pioneer advisors have been working with growers to create variable rate seeding (VRS) prescriptions. In 2014, Pioneer mapped more than 2 million VRS acres.  This experience, combined with the whole-farm solutions approach of Encirca℠ services, has enabled Pioneer to create this enhanced offering.

“Today’s Encirca℠ Yield Stand service is a superior approach that is helping growers better use on-farm data to make real-time decisions that can help raise return on investment, improve productivity and hold down costs,” said Reno.

Encirca℠ services are tailored to a grower’s operation through a trusted local advisor. Through the offering, Pioneer expects to create or liberate as much as $100 of value per acre through real-time insights.