Tuesday February 24 Ag News

Nebraska Farm Bureau Seeks Extension for Farm Bill Sign-Up

The Nebraska Farm Bureau Federation (NFBF) is asking U.S. Secretary of Agriculture Tom Vilsack to provide farmers more time to evaluate and make decisions on farm programs associated with the passage of the 2014 Farm Bill. The new farm bill brought many changes to farm programs and decisions related to those programs are currently required to be made by the end of February, while others must be made by the end of March.

“Over the past several months Farm Bureau has had the opportunity to work one-on-one with farmers across the state to see how changes in farm bill programs might affect them and how different options might fit into their risk management strategies. While Nebraska seems to be equal or ahead of states in terms of sign-up, providing additional time would be beneficial to many farmers here in Nebraska and across the country,” said Steve Nelson, Nebraska Farm Bureau president.

In a Feb. 24 letter to Sec. Vilsack, Nelson asked the United States Department of Agriculture (USDA) to give farmers until April 30, 2015 to make decisions related to base acre reallocations, yield updates and all other commodity related farm program decisions.

“Overall we’ve been pleased with the help and support provided by USDA’s Farm Service Agency offices to Nebraska farmers who have worked through program changes, but the shear amount of options available to farmers under the program and the reality that they will be bound by these decisions for the next five years has added to the need for farmers to make more informed decisions,” said Nelson.



RICKETTS COMMENTS ON NEBRASKA’S SUCCESS WITH SUPREME COURT RULING ON REPUBLICAN RIVER COMPACT

Today, Governor Pete Ricketts commented on Nebraska’s success with the U.S. Supreme Court ruling regarding Republican River water usage. The Court has ordered Nebraska to pay $5.5 million to Kansas, significantly less than the $80 million originally asked.

“Today is a good day for Nebraska,” said Governor Pete Ricketts. “I am pleased to see that the court has made a reasonable decision. I look forward to working with the governors of Kansas and Colorado to move forward.”

“This is a win for Nebraska’s farmers and ranchers,” said Acting Director Jim Schneider. “By lessening Nebraska’s compliance burden, this ruling will in effect lessen Nebraska’s need to regulate for compliance. Nebraska’s water users should be very pleased.”

Today’s ruling upholds the Special Master’s ruling from November 2013. The dispute centers on a 1943 compact allocating 49 percent of the river's water to Nebraska, 40 percent to Kansas and 11 percent to Colorado.



KS Gov, AG Statements regarding the U.S. Supreme Court ruling

In an announcement made today, the U.S. Supreme Court issued a ruling ordering Nebraska to repay Kansas $3.7 million to compensate for Kansas’s actual economic losses during 2005-06 and another $1.8 million as partial disgorgement of Nebraska’s unjust gains from illegally using Kansas water. The Supreme Court also ordered technical changes to the calculation of future water flows from the Platte River basin into the Republican River basin as requested by Nebraska. The decision to order that reformation of the accounting procedure was 5-4.

Statement by Governor Sam Brownback: "Today's ruling is good for Kansas and demonstrates the importance of our continuing efforts to protect the rights of Kansas water users.”

Statement by Kansas Secretary of Agriculture Jackie McClaskey: “I am pleased that the Court has provided a strong incentive for our neighbors to comply with the Republican River Compact, but I believe that our best path forward is the one we’re on now, collaboration, negotiation, and common sense agreements with our neighbors that serve the best interests of our water users.” 



Iowa Soybean Association lauds action on fuel tax
Legislation will improve roads and bridges, spur growth of biodiesel usage in Iowa
The Iowa Soybean Association (ISA) lauded approval by the Iowa Legislature of a 10-cent increase in the state’s fuel tax, a move that will improve the quality of Iowa’s aging roads and bridges and boost the use of renewable fuels.

The bill was passed today by a vote of 28 – 21 in the Iowa Senate, and a vote of 53 – 46 in the Iowa House.

Included in the legislation that now heads to Gov. Terry Branstad for his signature is a provision providing a 3-cent-per-gallon exemption for diesel blended with at least 11 percent biodiesel.

ISA President Tom Oswald of Cleghorn recognized legislators for supporting the timely and necessary legislation.  

“Iowa’s infrastructure, including critical farm-to-market roads and bridges, continues to deteriorate, jeopardizing personal safety and the ability to conduct business,” Oswald said. “Today’s action pivots us from focusing on the shortcomings of our infrastructure to going to work to improve it.”

Grant Kimberly, ISA market development director and executive director of the Iowa Biodiesel Board, recognized Branstad and Lt. Gov. Kim Reynolds for acting boldly on behalf of biodiesel, an advanced biofuel derived from Iowa-grown soybeans.

“The provision for biodiesel is smart policy that positively impacts our environment and economy and the competitiveness of Iowa soybean farmers,” he said.

ISA President Elect Wayne Fredericks of Osage said today’s votes advance sustainability and environmental quality.

“In one move, the Iowa Legislature has voted in favor of better roads and bridges and reaffirmed its support of renewable fuels,” he said. “Every gallon of biodiesel we use at home is one less that we need to import, benefiting local jobs, farms, families and communities.”

Iowa is the nation’s leader in renewable fuels production and is home to 12 biodiesel facilities with the capacity to produce nearly 315 million gallons annually. The production of this renewable fuel supported the employment of 4,300 working Iowans and contributed more than $470 million to the state’s gross domestic product.



Iowa Crops Value over $14 Billion

The production of Iowa’s field and miscellaneous crops was valued at $14.4 billion in 2014, according to the USDA, National Agricultural Statistics Service – Crop Values summary. This was an 8 percent decrease from 2013. 

The value of corn production totaled $8.76 billion, down 9 percent from the previous year, even though production was up 11 percent. Iowa’s corn price averaged $3.70 per bushel, a decrease of $0.79 from the last marketing year. 

Down 7 percent from 2013, the value of soybean production was $5.11 billion. Average prices dropped $3.00 from the previous year to $10.10 per bushel. 

Value of production decreased in 2014 from 2013 for oats,winter wheat, alfalfa hay, other hay, and forage.



Corn Growers: Don't Cut the Farm Bill

In a letter sent to Congressional leaders this week, the National Corn Growers Association and a broad range of nearly 400 food and farming organizations urged Congress not to reopen and make cuts to the 2014 farm bill.

"The 2014 Farm Bill required over three years of debate in both chambers of Congress and ultimately ended with the consolidation of over 100 programs and cuts to mandatory spending across many titles, including the elimination of the direct payment program," the letter states. "This bipartisan legislation was estimated to contribute $23 billion to deficit reduction over 10 years when including sequestration. These difficult cuts were made across the farm safety net, conservation programs, and nutrition programs."

The letter also noted that the farm bill needs time before it can be fully judged. "The policy changes and reforms associated with these cuts are only now being fully implemented by the United States Department of Agriculture. As such, no additional cuts to these programs should be considered, at least until these policies have time to take place and be thoroughly evaluated."



Fertilizer Slow But Steady Price Rise Continues

Fertilizer prices continue their slow move higher, according to retailers tracked by DTN for the third week of February 2015.

Seven of the eight major fertilizers were higher compared to a month earlier, but none of the seven were up any significant amount. DAP had an average price of $568 per ton, MAP $597/ton, potash $495/ton and urea $472/ton. 10-34-0 had an average price of $593/ton, UAN28 $330/ton and UAN32 $370/ton.

One fertilizer, anhydrous, posted a price just slightly lower than a month ago. The nitrogen fertilizer had an average price of $706/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 $0.59/lb.N and UAN32 $0.58/lb.N.

Three of the eight major fertilizers are now double digits higher in price compared to February of 2014, all while commodity prices are significantly lower than a year ago. 10-34-0 is 16% higher while anhydrous is 14% more expensive and MAP is 13 more compared to year earlier.

DAP is now 6% more expensive and potash is 5% more expensive compared to a year earlier.

Three nutrients are now lower compared to retail prices from a year ago. UAN28 is down 3% while UAN32 is now 5% less expensive and urea is 9% less expensive from a year previous.



First Report under New Current Agricultural Industrial Reports Program Released Today

The U.S. Department of Agriculture’s National Agricultural Statistics Service (NASS) released the first report under its new Current Agricultural Industrial Reports (CAIR) program today. Called Grain Crushings and Co-Products Production, the publication provides data about agricultural commodities consumed for alcohol and other uses as well as the production of co-products and products in the United States from October-December 2014. The report will be published monthly with the second report, to include January and final December data, scheduled to be released March 2, 2015.

Key highlights from the Grain Crushings and Co-Products Production report include:

    Total corn consumed for alcohol and other uses was 510.1 million bushels in December 2014. Total corn consumption was up five percent from November 2014 and up seven percent from October 2014.

    Sorghum consumption for fuel alcohol was 889 thousand hundredweight during December 2014. Total sorghum consumption was down 57 percent from November 2014 and down 53 percent from October 2014.

    Dry mill co-product production of distillers dried grains with solubles (DDGS) was at 1.9 million tons during December 2014, up eight percent from November 2014 and up three percent from October 2014.

    Wet mill corn gluten feed production was at 329.4 thousand tons during December 2014, up 12 percent from November 2014 and up three percent from October 2014.

In addition to Grain Crushings and Co-Products Production, other publications scheduled to be released within the CAIR program include:
    Flour Milling (quarterly beginning May 1, 2015.)
    Cotton System (monthly beginning May 1, 2015.)
    Fats & Oils: Production, Consumption and Stocks (monthly beginning August 3, 2015.)
    Oilseed Crushings (monthly beginning August 3, 2015.)

“Data from the CAIR program are crucial to U.S. economic policy, help industries analyze markets, plan, forecast, and make well-informed business decisions,” said NASS Administrator Joseph T. Reilly.

Certain publications, which included data about agricultural manufacturing, were previously part of the U.S. Census Bureau’s Current Industrial Reports (CIR) program which began in 1904. Due to budget reprioritizations, the bureau discontinued its collection of data for the CIR program in 2011. Given its long and well-respected history of gathering and publishing agricultural data, Congress authorized and appropriated funds for NASS to design and implement the Current Agricultural Industrial Report program.

“Although the industry’s participation in the CAIR program is required by law, we truly appreciate the time and effort all of our respondents expend when they fill out the questionnaires.” said Reilly. “We at NASS are committed to the success of the CAIR program because the data are vital to all who use our reports including private industry, academic researchers, government agencies, and many others.”

NASS safeguards the privacy of all respondents, ensuring that no individual respondent or operation can be identified. Participation in the CAIR program is both required by law and protected by law (Title 7, U.S. Code). NASS collects information directly from industry representatives who participate on a confidential basis. Confidentiality rules require reporting data only in aggregate form. NASS cannot report data where a single producer dominates a production category and could be identified.



Factors Exist to Help Dairy Markets in 2015

We all know that milk prices have been heading down for some time. But University of Wisconsin-Extension expert Bob Cropp says there is a little bit of good news to report as we look ahead to the rest of the year. In his latest Dairy Situation and Outlook report, Cropp says milk prices are expected to average higher than what was forecast earlier due to a smaller increase in this year's milk production.

"Earlier USDA was forecasting 2015 milk production to increase 2.8 percent and have now reduced that to 2.6 percent," he said. "Domestic sales will show growth led by a continued increase in cheese sales. But, exports are forecasted to be lower, particularly for butter and cheese. Nonfat dry milk/skimmilk powder, dry whey, whey protein concentrates and lactose exports are expected to far better. For now dairy product prices on the CME have been holding at levels higher than earlier predicted."

He also noted that the increase in milk production for 2015 could well end up lower than earlier forecasts if January is any indication. Last year milk production July through December was 3.5 percent higher than the year before resulting in a 2.4 percent increase in milk production for the year. December's milk production was 3.1 percent higher than the year before.

"But, USDA's milk production report estimates January 2015 milk production for the U.S. to be just 2.1 percent higher than a year ago. Milk cow numbers were 96,000 head higher than a year ago, a 1.0 percent increase. But, milk per cow was just 1.0 percent higher average averaging 2.0 percent higher last year."

Meanwhile, the effect of the drought and the start of lower milk prices appear to be impacting California's milk production. New Mexico's output was lower due to less milk per cow. And Idaho had 2.5 percent more cows but 1.0 percent less milk per cow.

Cropp says milk prices may improve compared to earlier projections, but production is currently running strong in the Northeast and the Midwest and several other states and spring flush is still ahead of us.

"World dairy product prices also appeared to have bottomed out and are now improving, but remain lower than U.S. prices," he said. "So U.S. dairy exports are not likely to show improvement until the last half of the year."

The February Class III price will be near $15.55 compared to $16.18 in January and $17.82 last December.


USDA Offers Renewal Option for Expiring Conservation Stewardship Program Contracts, Extends Deadline for General Sign-up Applications
Natural Resources Conservation Service Chief Jason Weller today announced that the U.S. Department of Agriculture is offering a renewal option through Tuesday, March 31, 2015 for eligible agricultural producers and forest landowners with expiring Conservation Stewardship Program (CSP) contracts. These producers must be willing to adopt additional conservation activities aimed at helping them achieve higher levels of conservation on their farms, forests and ranches.

USDA will also extend the deadline for general sign-up CSP applications until Friday, March 13, 2015 providing farmers, ranchers, and private forest managers two additional weeks to apply for this funding round of $100 million.

“CSP producers are established conservation leaders who work hard at enhancing natural resources on private lands,” Weller said. “This contract renewal period will provide greater opportunities for these conservation stewards to voluntarily do even more to improve water, air and soil quality and enhance wildlife habitat on their operations. By extending the deadline for general sign-up applications, we are ensuring that landowners will be able to take advantage of a program that will enroll up to 7.7 million acres this year.”

Changes in the 2014 Farm Bill will allow CSP participants with expiring contracts to renew them by exceeding stewardship thresholds for two or more existing natural resource concerns specified by the Natural Resources Conservation Service (NRCS) or by meeting stewardship thresholds for at least two new natural resource concerns such as improving water quality or soil health. NRCS administers CSP.

About 9,300 contracts covering more than 12.2 million acres are nearing the end of their five- year term and can be renewed for an additional five years. The agricultural producer or forest landowner must complete all conservation activities contained in the initial contract before a renewal can be granted.

The renewal process is optional but benefits CSP participants with expiring contracts because it is non-competitive. In order to renew, an agricultural producer or forest landowner must meet the minimum criteria established by NRCS. Contract renewal also offers these agricultural producers and forest landowners an opportunity to add new conservation activities to meet their conservation goals and protect the natural resources on their farms, forests or ranches. The 2014 Farm Bill includes an expanded conservation activity list that offers producers more options to address natural resource challenges. New conservation activities include cover crops, intensive rotational grazing and wildlife-friendly fencing.

USDA’s largest conservation program by acreage, CSP pays participants for conservation performance — the better the performance, the higher the payment. Nearly 70 million acres have been enrolled in the program since its launch in 2009.

Along with the renewal option announced today, USDA announced last month that it will make available $100 million this year through the CSP in 2015. Although CSP applications are accepted all year, farmers, ranchers and forest landowners should submit applications by the funding deadline, extended to Friday, March 13, to ensure they are considered for this year’s funding. Applications should be submitted to local NRCS offices, and as part of the CSP application process, applicants will work with NRCS field personnel to complete a resource inventory of their land, which will help determine the conservation performance for existing and new conservation activities. The applicant's conservation performance will be used to determine eligibility, ranking and payments.

USDA offers financial and technical assistance to agricultural producers or forest landowners for the active management and maintenance of existing conservation activities and for carrying out new conservation activities on working agricultural land. Eligible lands include cropland, grassland, prairie land, improved pastureland, rangeland, non-industrial private forestland and tribal agricultural land. Applicants must have control of the land for the 5-year term of the contract.

Agricultural producers or forest landowners with existing contracts scheduled to expire this calendar year and who wish to renew for an additional five-year term must submit an application indicating their intent to renew to their local NRCS office prior to the national application deadline of March 31, 2015.

To learn more about CSP contract renewals, visit your local NRCS office.