Thursday October 29 Ag News

Take it from an Iowa farm girl: here are 10 good reasons to keep eating meat
Laurie Johns, public relations manager, Iowa Farm Bureau Federation

 Just when I’d dealt with the whole ‘sitting is the new smoking’ study, by upping my exercise regimen,  it now appears another aspect of my daily life is casting health dispersions; red meat.  But this one, I don’t plan to give up.  Let me explain.

First, what I’m talking about is a new report by the World Health Organization’s (WHO) International Agency for Research on Cancer, which puts processed meats in the same carcinogenic category as cigarettes, diesel-engine exhaust and asbestos. Specifically, the WHO hypothesis isn’t based on new studies, but a compilation of observational studies, which concluded that eating more than a pound a week of red and processed meat increases the risk of colorectal or stomach cancers.

Despite this study, the US Department of Agriculture hasn’t changed its recommendation for keeping lean meats in the diet (http://www.choosemyplate.gov/protein-foods-tips ).

So, with all that in mind, I submit my Top 10 List of Reasons Why I Still Eat Bacon:

10)   I grew up on a livestock farm.  My Grandma not only served meat three times a day, seven days a week and happily cooked pies with lard, she lived to the feisty age of 99.  We loved her, her BLT’s and her pies!

9) The World’s Oldest Woman, 116-year-old Susannah Mushatt Jones, has a sign on her kitchen that reads, “Bacon Makes Everything Better’ and eats two strips every day. She must know something.

8) I know hundreds of Iowa livestock farmers, hearty and strong, who eat meat every day, usually from animals they grow on their own farms.  They definitely know something!

7) Fake meat is, well, fake. Why do vegetarians go to such extremes to create fake foods that taste like meat?  Why do they need to, and who enjoys such things, especially after reading those tofu dogs not only have meat, but (ahem) human DNA? http://www.cnn.com/2015/10/26/health/vegetarian-hot-dogs-contain-meat-clear-foods-feat/index.html

6) As my favorite doctor, (my husband) always chirps; “Commonality doesn’t equal causality.”  So, if eating two slices of bacon a day raises the risk of getting cancer by 18-percent (according to the new WHO report), it doesn’t guarantee you’ll get it.  You can apply ‘lottery logic’ here; buying a ticket every day doesn’t mean you’ll win the lottery.  Besides, scientists agree when it comes to your cancer risk, the “genetic lottery” is a more predictable, if not a guaranteed indicator of risk: http://scienceblog.cancerresearchuk.org/2013/05/14/angelina-jolie-inherited-breast-cancer-and-the-brca1-gene/

5) Humans are mortal.  Unless you’re Susannah Mushatt Jones, life is short.  Do you want to live to 100 if all you could eat is fake cheese that won’t melt, Tofurky, flax, miso paste and beans?  Well, that’s your choice.  (I’ll be sitting upwind from you, thanks).

4) Sun exposure, genetics, obesity, radon, hair dyes, cell phones, lead, antiperspirants, eye shadow, Teflon and exposure to talcum powder and fluoridated water are also accused of increasing our risk to cancer.  Maybe the question should be; what doesn’t? Or, even better, who wants to deal every day with the stick-thin, smelly, off-the-grid, flax-eating, toothless, chaffed and desperate-for-a-make-over Nervous Nelly who lives her life to avoid all risks?

3) Steak with red wine shallot sauce? Testify! http://www.foodnetwork.com/recipes/food-network-kitchens/steak-with-red-wine-shallot-sauce-recipe.html

2) Red meat just goes with red wine.  Which I happily drink … for medicinal purposes. http://www.mayoclinic.org/diseases-conditions/heart-disease/in-depth/red-wine/art-20048281

1). Red meat is the tie that binds us all at so many family and social gatherings; it’s the hushed reverence we feel as Moms bring out the Thanksgiving turkey; it’s the steaks Dads brag about grilling to perfection on for the Fourth of July; it’s kids, enjoying a brat at the World Series; it’s football fans noshing on hamburger-hearty chili at Superbowl tailgates. In short; it’s just plain, unapologetically American, http://theweek.com/speedreads/585541/stephen-colbert-finds-unlikely-loophole-whos-red-meatcancer-warning and I, like many, proudly raise a fork and salute the men and women, the farmers, who help make it all happen!



Iowa Corn Applauds USDA’s $210 million Investment to Boost Biofuels Infrastructure

Wednesday, U.S. Department of Agriculture (USDA) Secretary Tom Vilsack announced Iowa as one of the 21 recipients of federal grants through the Biofuel Infrastructure Program (BIP) amounting in $210 million. The Iowa Department of Transportation will receive $5 million, which could bring as many as 100 new stations and 187 additional pumps to the state through the “Fueling Our Future 100” initiative.

“Iowa Corn farmers commend Secretary Vilsack on this funding commitment as it will nearly double the number of biofuel pumps nationwide, providing American consumers with additional fuel choices,” said Bob Hemesath, a farmer from Decorah and President of the Iowa Corn Growers Association (ICGA). “In Iowa, this initiative will provide consumers with greater access to higher blends of ethanol, all while lowering the cost at the pump, adding value to agricultural products such as corn and helping eliminate our dependence on foreign oil.”

A typical gas pump delivers fuel with 10 percent ethanol, which limits the amount of renewable energy that consumers can utilize. The new partnership will increase the number of pumps, storage tanks, and related infrastructure that offer higher blends of ethanol, such as E15, E85, and other mid-level blends.

“This goal of increased reliance on domestically produced renewable fuels can only be realized if the U.S. Environmental Protection Agency (EPA) upholds the higher renewable volume obligation numbers required under the Renewable Fuel Standard,” said Hemesath. “We urge them to consider revising their current proposed numbers by the November 30th deadline.”

The BIP program, which also requires a private match, is expected to support approximately $10 million in higher ethanol blend projects in Iowa with a partnership of investment from retailers, the state, and federal government. 



Sheep Production Skill Development Workshop Set for Nov. 21

The Sheep Production Skill Development Workshop will be held Saturday, Nov. 21, starting at 9:30 a.m. in the Deb and Jeff Hanson Agriculture Learning Center located at 2508 Mortensen Road in Ames.

Topics covered throughout the day will include reproductive management of ewe stock, basic sheep nutrition and feeding, a hands-on session at the Iowa State University Sheep Teaching Farm, condition scoring, mouthing, and aging, using CIDRs and ram breeding tests, and hay sampling.

“This workshop will be a great learning opportunity for sheep producers and breeders and allow attendees hands-on experience at our teaching farm,” said Daniel Morrical, professor and extension sheep specialist in animal science at Iowa State University. “Many decisions go into sheep production and we would like to help develop those management skills needed for a successful operation.”

The Sheep Production Skill Development Workshop is free to anyone interested in attending. Attendees are asked to wear clean shoes and clothes to reduce biosecurity risk. Registration will begin at 9:30 a.m. and the programming will begin at 10 a.m. The hands-on session at 1:15 p.m. will conclude the day. Lunch will not be provided.



Statement by Steve Nelson, Nebraska Farm Bureau President, On Reinstatement of Crop Insurance Funds in the Federal Budget

“We are pleased that a deal was reached to reinstate the $3 billion in cuts to crop insurance that Congressional leaders had sought in a budget agreement with the White House.”

“Reinstating these funds will help ensure that the crop insurance delivery system that farmers rely on each year will continue to operate without interruption.”

“Crop insurance is a key risk management tool for Nebraska farmers and one of, if not, the most important farm program component available to Nebraska farm families today.”

“While the agreement has been approved in the House, we urge the Senate to follow suit to protect this vital risk management tool.”



Wheat Growers Please with Promise to Reverse Crop Insurance Cuts

This morning in a colloquy on the Senate floor, Senate leadership committed to working with House leadership to reverse crop insurance cuts that are included as part of the Bipartisan Budget Agreement currently before the Senate as part of an omnibus appropriations bill, due in December.

Following is a statement from NAWG President, Brett Blankenship, wheat grower from Washtucna, Wash.

“After days of expressing concern over cuts to crop insurance to members of Congress, we are pleased that House and Senate leadership have committed to reversing the cuts currently proposed in the budget agreement. Crop insurance is an essential part of the farm safety net, and it needs to stay as such. It is encouraging to see leadership listening to grower concerns and keeping crop insurance in tact as a risk management tool for growers. I also want to thank Chairman Conaway, Ranking Member Peterson, Chairman Roberts and Ranking Member Stabenow for their tireless efforts to defend crop insurance.”

Earlier this week, the Administration and Congressional leadership announced a bipartisan budget deal that would both raise discretionary spending caps by $80 billion for FY 2016 and FY 2017 and it would increase the debt limit until March 15, 2017. As one of the offsets for the increase in discretionary spending, the deal also included a $3 billion cut, over ten years, to crop insurance. Following significant pushback from the agricultural community and many Members of Congress, Congressional leadership committed to reversing the crop insurance cuts when Congress turns to an omnibus appropriations bill later this year.



Agreement to Remove Crop Insurance Cuts Reached, NSP Applauds Ag Leadership

In the wake of the announcement this week of a two-year budget agreement, House Agriculture Committee Chairman K. Michael Conaway and Ranking Member Collin Peterson announced an agreement to avoid the cuts to crop insurance, which are included in the vote today on the Bipartisan Budget Agreement of 2015. While the language to cut crop insurance funding will remain in the bill, House leadership has agreed to reverse this provision in the omnibus bill later this year.

Following this announcement, National Sorghum Producers Chairman James Born released this statement:

“The work done in the last 48 hours to protect crop insurance, an essential farmer safety net element fought hard for through the 2014 Farm Bill process, is a true testament to the agriculture leaders we have representing farmers and ranchers across the United States.

On behalf of the sorghum industry and our producers, I extend my deepest gratitude to House Agriculture Committee Chairman Mike Conaway and Ranking Member Collin Peterson for their leadership in this matter. I also thank Senate Agriculture Committee Chairman Pat Roberts and Ranking Member Debbie Stabenow for their efforts in the Senate.

I would also like to thank the numerous Members who supported House Agriculture Committee leadership and the grassroots efforts by our members and proponents to ensure crop insurance remains intact as a vital component to the farm safety net.

Agriculture’s voice was heard loud and clear this week, and as agriculture income has dropped in the past two years, we remain united in working together to protect the agriculture safety net."



 NFU Cautiously Optimistic Over Removal of Crop Insurance Cuts from Budget Deal

National Farmers Union (NFU) President Roger Johnson today voiced cautious optimism over the budget deal passed by the U.S. House of Representatives this evening. The agreement, led by the House Agriculture Committee, would remove harmful provisions that would have undermined public-private delivery of crop insurance within the upcoming omnibus package. This will prevent further consolidation of the crop insurance sector, which would have provided less choice for family farmers who depend on this cost-effective safety net program.

“No one involved in agriculture was consulted when the budget was being negotiated,” said Johnson. “It’s outrageous to think that the agriculture committees were completely left in the dark, but we are thankful that the Committee, its members, and other members of Congress stood up for a program that is critical to family farmers.”

Johnson noted that the 2014 Farm Bill provided $24 billion in savings, which accompanies the $12 billion in savings that was part of the 2011 renegotiation of the Standard Reinsurance Agreement (SRA). “While the rest of Congress has been paralyzed, the agriculture committees delivered savings in the name of deficit reduction,” he said. “It would be shameful to punish agriculture for doing its job over the last several years.”

Absent this deal, the budget would require $3 billion in cuts to the reimbursement rates between the government and the companies that sell and administer the crop insurance program. The cut, from 14 percent to 8.9 percent, is far deeper than the 12 percent of previous proposals. However, the average rate of return for participating companies has been less than 4 percent, causing many crop insurance companies to exit the sector.

“Caps already exist on administrative and operating costs for crop insurance companies, and producers pay an estimated $4 billion into this program annually. It’s time for Congress to realize that crop insurance is not a piggy bank,” noted Johnson. “We are thankful for our allies in the House and the leadership of Chairman Conaway and Ranking Member Peterson.”

“We now call on the Senate leadership to follow the House’s lead and reject cuts to crop insurance,” he said.



USDA Overview of the United States Hog Industry
Breeding Herd Efficiency Continues to Increase

The Overview of the United States Hog Industry report provides an official periodic review of efficiency trends and changes in the structure of the United States swine breeding herd. This report will also note changes in hog inventory, compare historic hog prices and review live hog imports and
marketings. This report compares the current 2014 production year data to the 2008 production year data previously released in the Overview of the U.S. Hog Industry report, published in October 2009. 

The efficiency of the United States breeding herd increased significantly from 1994 through 2012. However, due to the effects of the Porcine Diarrhea Virus (PEDv), the average number of pigs per breeding animal declined in 2013 and 2014. The average number of annual pigs per breeding herd animal (including sows, gilts and boars) was 19.5 in 2014, down from 19.8 in 2013, but up from 18.7 in 2008. The steady increase in the average number of pigs per breeding animal prior to 2013 was due to the increase in the number of litters per sow per year and the increase in litter rates. Producers were able to increase pig crop while decreasing breeding herd and farrowings as a percent of the total inventory until the introduction of PEDv to the domestic herd in 2013. The average utilization of breeding females was 49 percent in 2014, up from 42 percent in 1994, but down from 50 percent in 2012. The size of the annual domestic pig crop increased 13 percent between 1994 and 2014 while the number of farrowings decreased 7 percent during the same period.

The influence of large operations, those with inventories of 5,000 or more hogs and pigs, on the United States annual litter rate has increased greatly since 1994. During that year, the average number of pigs weaned on operations with less than 5,000 head was 8.00. The average number weaned on all operations was 8.19 pigs per litter and the average on operations with 5,000 or more head was 8.73. By 2008, operations with 5,000 or more head weaned 9.48 pigs per litter while the average for all operations was 9.41 and the average for operations with less than 5,000 head was 8.93 pigs per litter. For the 2014 production year, operations with 5,000 or more head weaned 9.97 pigs per litter while the national average was 9.93 pigs per litter and operations with less than 5,000 head weaned 9.41 pigs per litter.

Historically, the majority of the annual pig crop was produced on operations with fewer than 5,000 hogs and pigs. By 1996, due to industry consolidation and the loss of many small operations, the percentages of the annual pig crop raised by operations with fewer than 5,000 head and by operations with at least 5,000 head were near equilibrium. For the 2014 production year, 93 percent of the annual pig crop was produced on operations with at least 5,000 head, up from 27 percent in 1994 and up from 88 percent in 2008. From information collected for the 2012 Census of Agriculture, only 5 percent of hog and pig operations had 5,000 or more head, but accounted for 68 percent of the nation's inventory. Conversely, 95 percent of operations had fewer than 5,000 head, but accounted for only 32 percent of the inventory.

Producers have increased production of total hogs and pigs over the last 20 years while decreasing the size of the breeding herd. The breeding herd accounted for 12 percent of the total United States hogs and pigs inventory in 1994, but only accounted for 9 percent in 2014. From 1994 to 2014 the total United States hogs and pigs inventory increased 7 percent while the breeding herd decreased 19 percent.

Iowa continues to be the largest pork producing state in the country. As of December 1, 2014, Iowa accounted for 31.4% of the total United States hog and pig inventory. North Carolina (13.0%), Minnesota (12.0%), Illinois (6.9%) and Indiana (5.5%) round out the top five pork producing states. 

The hog Market Year Average price was at or below $50 every year between 1998 and 2009 before increasing to $76.50 in 2014. The corn market year average price increased from $2.00 per bushel in 2005 to $6.89 per bushel in 2012. This resulted in a marketing year hog to corn ratio of 9.3 for 2012. The market year average price per bushel of corn in 2014 was $3.65 leading to a marketing year hog to corn ratio of 21.0 for 2014 compared to a ratio of 11.6 in 2008. 

Federally Inspected slaughter weights and dressing percentages have increased steadily for the last twenty years (page 12). In 1994, Federally Inspected live weights averaged 256 pounds per head. Dressed weights averaged 185 pounds resulting in an annual dressing percentage of 72 percent. For 2014, the average live weight had increased to 285 pounds while the average dressed weight increased to 214 pounds. This resulted in an average annual dressing percentage of 75 percent.

A product of increased slaughter weights and increased Market Year Average prices for hogs and pigs is an increased value per head. Although there has been fluctuation in the value per head, it has trended higher since 2008. The average value per head of all hogs and pigs in 2008 was $88.74. This resulted in a total value of 5.95 billion dollars for all hogs and pigs raised in the United States during that production year. The average value per head increased to $143.93 in 2014, resulting in a total value of 9.52 billion dollars for all hogs and pigs raised in the United States during that production year.

Gross income for United States hog and pig producers increased from 16.1 billion dollars in 2008 to 26.5 billion dollars in 2014. Additionally, gross income for meat animals (hogs and cattle) increased from 64.9 billion dollars in 2008 to 108.3 billion dollars in 2014.

Live imports into the United States continue to be important to the domestic hog industry, but have declined significantly since 2008. Imports of all hogs and pigs into the United States during 2014 totaled 4.9 million head, down 51 percent from the peak in 2007 (Source: USDA's Foreign Agricultural Service). Feeder pig imports from Canada during 2014 accounted for 3.9 million head, or 79.5 percent of the total 2014 imports into the United States (Source: USDA's Agricultural Marketing Service). The feeder pig imports accounted for approximately 15 percent of Canada's annual pig crop (Source: Statistics Canada, Agricultural Division). These feeder pigs, if produced domestically, would require about 3 percent more breeding herd annually in the United States. 

The majority of the annual hogs and pigs disposition is made up of marketings, which include custom slaughter for use on farms where produced and State outshipments, but exclude interfarm sales within the State. Marketings for the 2014 production year were 148.3 million head, up 47 percent from 101.1 million head in 1994 but down slightly from 148.8 million head in 2008.



University Researchers Studying Ways to Combat PEDv

Kansas State University is flexing its research muscle in swine nutrition and grain science in hopes of taking out Porcine Epidemic Diarrhea virus (PEDv), a disease with 100 percent mortality rate in piglets less than 7 days old.

European farmers have dealt with PEDv since the 1970s, but it wasn't until 2013 that the costly disease was discovered in a U.S. herd. Some estimates indicate that 8 million pigs died due to the virus in 2014. PEDv causes acute diarrhea and dehydration in pigs of all ages. It does not pose a risk to other animal species, and is not a threat to the human food supply.

Kansas State University researchers are studying the presence of the virus in animal feed, work that may help to implement further biosecurity measures and save pigs' lives.

"We have established that feed and feed ingredients may act as a vehicle to transfer the virus," said Jason Woodworth, a research associate professor of animal sciences and industry. "This is extremely important because feed and ingredients are not normally considered a vector in transmitting diseases."

One study found that pelleted feed should be processed to a minimum temperature of 130 degrees Fahrenheit to protect the feed from PEDv. Pelleted feeds are often used in hog operations to improve nutrient digestibility and feed conversion.

"The pellet mill we used in our study is similar to those used in commercial mills," Woodworth said. "By successfully determining an appropriate combination of conditioning time and temperature that can impact PEDv infectivity, we have established a mitigation step that can be implemented quickly in commercial feed production."

The studies involved nearly a dozen researchers from Kansas State University and Iowa State University, many specializing in swine nutrition, grain and feed science, and veterinary medicine. They conducted the feed processing portions of the research in the Cargill Feed Safety Research Center at Kansas State University's O.H. Kruse Feed Technology Innovation Center.



New USDA Commitments to Help Build Up Next Generation of Farmers and Ranchers

Agriculture Deputy Secretary Krysta Harden today announced a commitment by the U.S. Department of Agriculture (USDA) to prioritize $5.6 billion over the next two years within USDA programs and services that serve new and beginning farmers and ranchers. Deputy Secretary Harden also announced a new, tailored web tool designed to connect burgeoning farm entrepreneurs with programs and resources available to help them get started.

“Today’s announcement is symbolic of the evolution of USDA’s efforts to better serve the next generation of farmers and ranchers. What began seven years ago with the recognition that the rapid aging of the American farmer was an emerging challenge, has transformed into a robust, transparent, tech-based strategy to recruit the farmers of the future,” said Harden. “No matter where you’re from, no matter what you look like, no matter your background, we want USDA to be the first stop for anyone who is looking to be a part of the story and legacy of American agriculture.”

The new web tool is available at www.usda.gov/newfarmers. The site was designed based on feedback from new and beginning farmers and ranchers around the country, who cited unfamiliarity with programs and resources as a challenge to starting and expanding their operations. The site features advice and guidance on everything a new farm business owner needs to know, from writing a business plan, to obtaining a loan to grow their business, to filing taxes as a new small business owner. By answering a series of questions about their operation, farmers can use the site’s Discovery Tool to build a personalized set of recommendations of USDA programs and services that may meet their needs.

Using the new web tool and other outreach activities, and operating within its existing resources, USDA has set a new goal of increasing beginning farmer and rancher participation by an additional 6.6 percent across key USDA programs, which were established or strengthened by the 2014 Farm Bill, for a total investment value of approximately $5.6 billion. Programs were targeted for expanded outreach and commitment based on their impact on expanding opportunity for new and beginning farmers and ranchers, including starting or expanding an operation, developing new markets, supporting more effective farming and conservation practices, and having access to relevant training and education opportunities. USDA will provide quarterly updates on its progress towards meeting its goal. A full explanation of the investment targets, benchmarks and outcomes is available at: BFR-Commitment-Factsheet.

Deputy Secretary Harden made the announcements during remarks to more than 60,000 attendees at the National FFA Convention in Louisville, Kentucky. The National FFA Organization is the largest youth organization in the United States, and focuses on preparing students for a wide range of careers in agriculture, agribusiness and other agriculture-related occupations.

As the average age of the American farmer now exceeds 58 years, and data shows that almost 10 percent of farmland in the continental United States will change hands in the next five years, we have no time to lose in getting more new farmers and ranchers established.



NCGA Statement on Election of Speaker Paul Ryan

National Corn Growers Association Chip Bowling today released the following statement regarding the election of Paul Ryan as Speaker of the House of Representatives:

“We congratulate Speaker Ryan on his election and wish him the best of luck. In his speech today, Speaker Ryan called the House ‘broken’ and urged his colleagues to come together, re-establish order, and find unity and common ground. We hope Congress will heed the advice of their new leader. It’s time to get back on the path of doing the people’s business. From reforming our tax code to finding long-term solutions for our nation’s roads and bridges, there is important work to do. We ask Congress to take Speaker Ryan’s words to heart. Let’s wipe the slate clean, put aside partisan differences, and commit to moving our country forward together.”



New Seven-Figure Fuels America Ad Campaign Lays Out President Obama's Choice on the RFS:  Clean Renewable Fuel or Oil Industry Lies

Fuels America will launch a seven-figure TV and digital ad campaign Friday morning depicting President Obama's choice of who to listen to when it comes to the Renewable Fuel Standard: his own experts who have repeatedly shown that ethanol and renewable fuel is dramatically reducing carbon emissions, or the oil industry, which has spent decades covering up the science and facts on both renewable fuel and climate science.

"It's absurd that oil companies are feigning concern over America's climate after over a century of oil spills, pollution, and harm to our environment and public health," said Chip Bowling, President of the National Corn Growers Association. "The truth is that slashing the amount of clean, domestic renewable fuel in our motor fuel supply would dramatically increase pollution and carbon emissions, while strengthening the RFS and building on the progress of the past 10 years would help in our efforts to combat climate change."

The 30-second TV spot and digital ads [available upon request] are both airing in the Beltway. Members of the Fuels America coalition announced the new campaign today on a press call, which you can listen to here.

The campaign follows aggressive attempts by oil industry-funded special interest groups API and Smarter Fuel Future to discredit the climate benefits of renewable fuel-and as usual, their claims are false and wholly unsupported.

In reality, the RFS is the most effective policy reducing America's greenhouse gas emissions, and cutting down asthma- and cancer-causing pollution. The Department of Energy (DOE) found that using traditional corn ethanol reduces greenhouse gas emissions by 34 percent in comparison to regular gasoline. Administrator McCarthy recently called the RFS a "vital tool" in the fight against climate change. And DOE research has shown that advanced biofuels like cellulosic ethanol-the cleanest motor fuel in the world, produced right here in America-reduce greenhouse gas emissions by 88-108 percent compared to gasoline.

In the 10 years of its existence, the RFS has cut transportation-related carbon emissions by nearly 590 million metric tons - the equivalent of taking over 124 million cars from the road over the course of the decade. However, the Obama Administration's delays and misfires on the RFS have already frozen over $13.7 billion in investment in the next generation of biofuels, and the EPA's proposal has threatened to send billions of dollars and decades of innovation overseas.

"The oil industry has been covering up climate science for decades, and now suddenly they're advising the Obama Administration on climate policy," said Brent Erickson, Executive Vice President at BIO. President Obama's choice on the Renewable Fuel Standard is clear. He can choose to listen to Big Oil's distortions and lies, or he can listen to his own scientists who have shown that the RFS significantly reduces greenhouse gas emissions."



Bunge 3Q Earnings Down

Bunge Ltd. reported a steeper-than-expected slide in third-quarter revenue as strength in the commodity-trading firm's oilseeds and grains businesses wasn't enough to counter weakness elsewhere.

Like many other companies in the agriculture space, Bunge has grappled with softer commodity prices and weaker global demand. Earlier this week, seed maker DuPont said profit nearly halved in its latest quarter. Farm equipment maker Deere has been suffering from slumping commodity prices and reported a 40% profit decline in its most recent period.

Bunge, one of the world's largest traders and processors of agricultural commodities, saw profit in most of its business segments drop in the latest quarter. Fertilizer swung to a loss, while earnings from sugar and bioenergy plummeted to $3 million from $44 million. The company's food unit's profit fell to $45 million from $74 billion.

But in its core agribusiness division, earnings jumped 16%. Soybean processing in the U.S., Brazil, Argentina and Europe drove the increase, and increased farmer selling in Brazil bolstered Bunge's grains unit.

Pointing to some improvement in Brazil runs contrary to what many companies with operations have reported. DuPont saw third-quarter revenue from the country plunge 33%, and this week Cummins Inc. announced a 3% workforce reduction thanks in part to a hit from Brazil's flagging economy.

Looking ahead, Chief Executive Soren Schroder, said Bunge still expects at least $1 billion in agribusiness profit this year and sequential improvement in the food business.

The firm cut its capital spending forecast for the year to about $750 million from $875 million, but Bunge said the change is due to the timing of certain projects and that the $125 million gap will carry forward into 2016 and 2017.

Overall, the company reported a profit of $239 million, or $1.56 a share, down from $294 million, or $1.90 a share, a year earlier. Revenue declined 21% to $10.79 billion. Analysts expected $1.56 in per-share profit on $12.64 billion in revenue, according to Thomson Reuters.



Potash 3Q Earnings Down

Potash Corp. of Saskatchewan Inc. on Thursday reported an 11% decline in its third-quarter profit and cut its annual earnings guidance as a result of weaker market conditions for potash.

The Canadian fertilizer company also moved forward the planned closure of a New Brunswick potash mine to the end of November and said it would take three-week inventory shutdowns at three mines in its home province of Saskatchewan.

Potash Corp. said it expects the moves to lower potash production in the fourth quarter by almost 500,000 metric tons, but it doesn't expect any layoffs related to the changes.

"While this will reduce available production levels until our new Picadilly mine is fully ramped up, it is expected to improve our cost profile and help manage inventories," the company said in its earnings statement. Potash is building the 2-million-ton Picadilly expansion project in New Brunswick to replace the closing Penobsquis mine.

Potash Corp. said earnings for the quarter fell to $282 million, or 34 cents a share, from $317 million, or 38 cents a year earlier. Excluding a 3-cent charge largely related to its phosphate business, results were in line with the 37 cents analysts polled by Thomson Reuters expected.

Sales for the quarter fell to $1.53 billion from $1.64 billion, but came in ahead of the $1.45 billion analysts were expecting.

The company, a major producer of the key fertilizer ingredients of potash, nitrogen and phosphate, said global potash demand remained strong during the quarter, but as a result of economic headwinds and currency volatility, prices were lower in most key potash markets.