Wednesday February 10 Ag News

Nebraska Farm Bureau Foundation for Agriculture 2016 Teachers of the Year Announced

The Nebraska Farm Bureau Foundation for Agriculture’s Board of Directors, Promotion and Education Committee and staff have selected two teachers as their 2016 Teachers of the Year.

Anica Brown, a seventh grade teacher at Pound Middle School in Lincoln and Judi Roach, a fourth grade teacher at North Elementary in Sidney were honored.

“Both of these educators demonstrate how teachers can incorporate agriculture examples and hands on teaching methods into standards-based curriculum to engage the next generation in critical thinking about where their food, fiber and fuel comes from,” said Megahn Schafer, executive director of the Nebraska Farm Bureau Foundation for Agriculture.

Brown currently teaches seventh grade science at Pound Middle School in Lincoln. She enhances her lessons with an agricultural perspective by connecting with farmers and ranchers in Nebraska through the Foundation's Ag Pen Pal program. Brown’s Pen Pals include, Brock and Kerry Elsen, Buffalo County Farm Bureau members, Darren and Stacy Nelson, Platte County Farm Bureau members, Ben Hendrix, Dundy County Farm Bureau member, Cheryl Feala from North Bend and high school students from the Cody Killgore FFA Chapter. Brown is one of many teacher in the program who have multiple Ag Pen Pals. She wants to show the diversity of agriculture across Nebraska.

“These experiences are rich in diversity and bring to life real lessons about Nebraska agriculture that help my students grow in their knowledge about food production in our state,” Brown said.

She began with the Ag in the Classroom program while teaching fourth grade at Belmont Elementary School in Lincoln. Brown grew up in the city but spent many summers with her grandma, aunts and uncles who lived on farms just west of Emerald and near Malcolm, Nebraska.

“My students are engaged in learning about Nebraska’s roles in food and livestock production through the wonderful letters and, we hope, visits that will come about because of this program,” she said.

Judi Roach first participated in the Ag Pen Pal program in 2012, when her fourth grade students wrote letters to Jeff and Robyn Huffman, Lincoln County Farm Bureau members and Ag Pen Pals. The student’s exchanged letters, visited via Skype technology and were able to take a field trip to the Huffman farm. “The visit to the farm made the whole Ag Pen Pal experience come full circle,” said Roach.

Judi’s class participated in multiple Google handout sessions with Jeff. During each session the students asked questions and Jeff would answer them. During one particular session Jeff showed the class how the corn planter worked and shared when he would begin planting. On the first day of planting Jeff was able to virtually show the class how to fill the planter and how it operated. “It was great that we were there on the first day of planting via technology!” Roach said.

Through the incorporation of the Ag Pen Pal program and Ag in the Classroom, Roach’s class has created an Ag Pen Pal Show that is shared with grades 1-4. They are using video footage from their field trip and are going to be showing it throughout the year. Roach’s class continues to be an Ag Pen Pal with the Huffman family.

Each teacher is being awarded an all-expenses paid trip to the National Agriculture in the Classroom Conference in Litchfield Park, Arizona, June 20-24. The conference brings educators together from all over the United States to collaborate on how to incorporate agriculture into their curriculum and engage students. Teachers will have the opportunity to attend tours of local ag businesses along with farms in the area.



CENTRAL PLAINS IRRIGATION CONFERENCE SET FOR FEB. 23-24 IN KEARNEY

    The Central Plains Irrigation Conference is scheduled for Feb. 23-24 in Kearney. The meeting is hosted by Nebraska Extension in collaboration with Kansas State University and Colorado State University.

    The conference will include presentations by experts in irrigation water management and water resources issues. In addition, during an equipment exposition, participants will have access to companies that manufacture and market equipment used to manage and apply irrigation water. Keynote speeches will be delivered by Don Kraus with the Nebraska Public Power and Irrigation District and Kent Zimmerman with the Nebraska Department of Natural Resources.

    "Participants will hear about recent research results dealing with water use by cover crops, evaluation of different soil-monitoring equipment, accuracy of water meters, a new way of characterizing the underground aquifer and much more," said Bill Kranz, Nebraska Extension irrigation specialist who led the planning team for the conference.

    The conference will take place at the Holiday Inn and Convention Center, 110 S. Second Ave. in Kearney.

    Registration information is available at Nebraska Extension offices or by contacting Kranz at 402-584-3857 or wkranz1@unl.edu.



Water for Food Global Conference will focus on public-private partnerships to achieve water, food security, April 24-26

Registration is open now for the 2016 Water for Food Global Conference organized by the Robert B. Daugherty Water for Food Institute at the University of Nebraska. The conference will be held April 24-26 at Nebraska Innovation Campus in Lincoln, Nebraska, USA. A discount of $100 is available to those who register on or before March 18. Conference details, including how to register, are available at http://waterforfood.nebraska.edu/wff2016/.

The conference brings together experts from around the world to discuss advances in science, technology and policy to help address one of the most urgent challenges of the 21st century: how to achieve greater food security with less pressure on water resources.

This year's theme is "Catalytic Collaborations: Building Public-Private Partnerships for Water and Food Security," focusing on the powerful impact that can be achieved through public-private partnerships (PPPs) in water for food research, technology and project development.

The conference features a mix of plenary sessions, concurrent sessions, side events and workshops representing different voices in PPPs. There will also be various special events to facilitate networking among participants, including a workshop on smallholder irrigation in Africa co-convened with the Bill & Melinda Gates Foundation and KickStart; the world premiere of "Thirsty Land," a documentary feature film; a student poster competition; photography competition and exhibit; farm-to-table dinner and closing reception with live music.

Session topics:
-    Irrigation research and technology for smallholder farmers, including remote sensing and apps that help farmers target water usage to maximize yields
-    Agricultural solutions in both crop development and management; and livestock
-    Information technology to improve water and agricultural productivity
-    Food processing advancements to reduce water use in the food and beverage sector
-    Mitigating the effects of climate change on water and food security and public health
-    The rapidly-growing agricultural entrepreneurship ecosystem and its role in PPPs

Plenary speakers:
-    Hank Bounds, president, University of Nebraska
-    Melissa Ho, managing director, Africa at Millennium Challenge Corporation
-    Martin Fisher, co-founder and CEO, KickStart
-    Patricia Mulroy, senior fellow, Metropolitan Policy Program, Brookings Institute and former general manager of the Las Vegas Valley Water District
-    Jeff Raikes, co-founder, Raikes Foundation and Water for Food Institute board chair
-    Executive director-designate, Water for Food Institute
-    Sally Rockey, executive director, Foundation for Food and Agriculture Research - Closing Keynote and Heuermann Lecture

Registration fees:
-    Early registration runs through March 18: $450
-    Regular registration runs March 19 to April 15: $550
-    Registration for university faculty and staff: $250

The previous conference in Seattle, Washington, attracted more than 250 practitioners, scholars, farmers and thought leaders from 23 countries. This year, the conference will return to Nebraska.

Roberto Lenton, founding executive director of the Water for Food Institute, said the international event is a key part of the institute's efforts to provide educational outreach and facilitate partnerships beyond Nebraska.

"We look forward to holding the conference at Nebraska Innovation Campus for the first time, as well as hearing perspectives from speakers from around the globe who represent important facets of public-private partnerships, including those from NGOs, governmental groups, philanthropy, industry and academia," he said. "The event provides an excellent forum to bring together diverse voices and to help catalyze change."

Stay up-to-date with the latest information on the 2016 Water for Food Global Conference by visiting http://waterforfood.nebraska.edu/wff2016/. 



Green Plains Reports Fourth Quarter and Full Year 2015 Financial Results

Omaha-based Green Plains Inc. (NASDAQ:GPRE) today announced its financial results for the fourth quarter of 2015. Net income attributable to the company for the quarter was a loss of $(3.6) million, or $(0.09) per diluted share, compared with net income of $42.2 million, or $1.07 per diluted share, for the same period in 2014. Revenues were $739.9 million for the fourth quarter of 2015 compared with $829.9 million for the same period last year.

"The company performed well in a challenging margin environment with over $32 million in EBITDA this quarter," stated Todd Becker, president and chief executive officer. "We were profitable before tax but an unusually high effective tax rate led to a small EPS loss this quarter. With that said, we achieved a record 261 million gallons of ethanol production for the fourth quarter of 2015 and benefitted from our diversified platform. Our agribusiness, marketing and distribution, and partnership segments all reported solid results for the fourth quarter."

During the fourth quarter, Green Plains' ethanol production totaled 260.8 million gallons, or approximately 93.9% of its daily average production capacity. The consolidated ethanol crush margin was $29.8 million, or $0.11 per gallon, for the fourth quarter of 2015, compared with $94.2 million, or $0.38 per gallon, for the same period in 2014. The consolidated ethanol crush margin is the ethanol production segment's operating income before depreciation and amortization, which includes corn oil production, plus intercompany storage, transportation and other fees.

Revenues were $3.0 billion for the year ended Dec. 31, 2015, compared with $3.2 billion for the same period in 2014. Net income attributable to Green Plains for the twelve months ended Dec. 31, 2015, was $7.1 million, or $0.18 per diluted share, compared with net income of $159.5 million, or $3.96 per diluted share, for the same period last year.

"Even with strong global and domestic ethanol blending growth, U.S. production continues to outpace demand for the time being," continued Becker. "We are carefully managing our supply chain and production levels in the first quarter until the forward curve shows some measurable improvement as we approach stronger seasonal demand."



NCGA Action Team Plans to Develop New Tools for Farmers, New Markets for Corn

Last week, the National Corn Growers Association's Research and Business Development Action Team met in Phoenix, Arizona to review recommendations coming out of NCGA's Priority and Policy Conference and explore potential economic opportunities for farmers while growing new markets for corn products.

Meetings included a tour of the U.S. Arid-Land Agricultural Research Center in Maricopa, Arizona. While there, the team explored phenotyping technology, including discussions of where phenotyping efforts are now and where they will need to be in the future. Notably, this facility holds the largest field-based phenotyping facility in the world.

During these meetings, the team renewed its focus on efforts that will help get new technology into the hands of farmers to meet changing needs in their fields. Additionally, they put a plan into place to foster new uses research and development.

The members of RBDAT also looked at how goals set out in NCGA's strategic plan can be achieved. Using their unique perspective, the team offered strategic suggestions needed to help the Corn Board guide NCGA policy effectively.

In addition to Chairman Larry Hoffmann of North Dakota, the Research and Business Development Action Team includes: Vice Chairman Dennis Maple of Indiana; Corn Board Liaison Bob Bowman of Iowa; Randy DeSutter of Illinois; Phillip Gordon of Michigan; Tom Haag of Minnesota; Kyle Phillips of Iowa; Quint Pottinger of Kentucky; Greg Schneider of Missouri; Scott Sperry of South Dakota; Roger Sy of Illinois; Bob Timmons of Kansas; Daniel Wesely of Nebraska; Chad Willis of Minnesota; and Colorado Corn Growers Association CEO Mark Sponsler.  NCGA staff in attendance included NCGA Director of Research Dr. Richard Vierling, Public Policy and Regulatory Affairs Manager Layla Soberanis and Production and Utilization Assistant to Vice President Sandra Wright.



Medium Chain Fatty Acids Protect Pigs from PEDv

Fatty acids, well known to have a positive effect on human nutrition, may also one day help to protect pigs from a deadly virus.

Kansas State University researchers have proven that when swine feed contains medium chain fatty acids -- a category of fatty acids known for being easily absorbed by a human body -- those pigs will be able to fend off the porcine epidemic diarrhea virus, or PEDV, which claimed an estimated 8 million pigs in 2014.

Their research, however, is far from done as they try to figure out how to use the medium chain fatty acids at low enough levels to keep producers' feed costs down.

"We have confirmed that pretreating feed with the medium chain fatty acids protects pigs from infection," said Cassie Jones, an assistant professor of grain science and industry at Kansas State University.

Until recently, researchers did not know that feed and feed ingredients could act as a vehicle to transfer PEDV. More than a dozen researchers at Kansas State University and Iowa State University have since been working together to determine methods to prevent or eliminate PEDV from feed.

"In our trial, we treated feed with a mixture of medium chain fatty acids, inoculated that feed with PEDV, and then fed it to animals under carefully controlled conditions," said Roger Cochrane, a Kansas State University doctoral candidate in grain science and industry. "This mixture protected the animals from the PED virus."

Jones pointed out that researchers used a 2 percent inclusion level, or concentration, of medium chain fatty acid, which is considered very high. The typical source of medium chain fatty acids is palm kernel, which is not immediately available to U.S. producers.

They have since tested with an inclusion level of 1 percent, with the same positive results, and plan to eventually test feed that is treated at even lower levels.

"We're hoping to find a formulation that is practical for U.S. producer's feed budgets," Jones said.

PEDV is particularly viral and Jones says that even a thimble full of feces from an infected pig contains enough of the virus to infect 20, 24-ton trucks of feed -- or approximately 500 tons.

"That level of pathogenicity is the source of our concern from the feed mill perspective," Jones said. "There may be a high likelihood of cross-contamination. We're talking about a minuscule amount of fecal material. We are trying to focus on what we can do during ingredient receiving, manufacturing and feed delivery to prevent that fecal material from entering the mill or being infectious in the feed."

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. The disease is not transmissible between species or humans, and it is not a threat to the safety of food.

Kansas State University's research on PEDV and medium chain fatty acids is funded by the U.S. Department of Agriculture and the National Pork Board, with support from other industry partners. The research team received a patent in 2014 for its work, which is scheduled for publication in an upcoming issue of the Journal of Swine Health and Production.



CME Shortens Livestock Trading Hours

CME Group will shorten trading hours for livestock contracts effective Monday, Feb. 29.

The move follows escalating criticism that extreme volatility has rendered cattle futures effectively broken for cash market hedgers. Cattlemen have pointed to many factors in that volatility, most prominently the rise of automated trading and the shrinking number of cattle traded on a cash-negotiated basis.

Pending approval by the Commodity Futures Trading Commission, live cattle, feeder cattle and live hog futures and options will trade electronically from 8:30 a.m. to 1:05 p.m. Central Time Monday through Friday. Open outcry hours will be from 8:30 a.m. to 1:02 p.m. CT. The daily settlement period and procedures will remain unchanged.

CME shortened electronic trading hours in October 2014, reducing them from 23 hours per day to the current schedule, which varies by day. On Mondays, Globex trades from 9:05 a.m. to 4:00 p.m. CT. From Tuesday to Thursday, it trades from 8:00 a.m. to 4:00 pm., and on Fridays, the market is open from 8:00 a.m. to 1:55 p.m.

The shorter day will align trade with the period of greatest liquidity, CME said. During 2015, roughly 87% of daily livestock futures and options trades occurred during the proposed hours.

"Nothing is more important to us than the integrity of our markets, which help farmers and ranchers to discover prices and transfer risk," said Tim Andriesen, CME group managing director of agricultural products. "We believe these actions will further enhance our cattle markets for all participants."

CME also announced several other changes, including a review of the Worthing, South Dakota, delivery point for live cattle and the formation of a cattle market joint working group with the National Cattlemen's Beef Association to discuss other possible changes.



By-Products Continue to Drift Lower
David P. Anderson, Professor and Extension Economist
Texas A&M AgriLife Extension Service

Steer by-product values continue to drift lower in 2016.  Last week's by-product values averaged $10.40 per cwt live.  That was down $4.20 from a year ago and down from $10.54 during the first week of 2015.  Last week's $10.40 was the lowest value since April 2010, when by-products averaged $10.24.  In terms of value of the value of the live fed steer, a 1300 pound steer would have an implied by-product value of $135.33 per head, down $54.60 per head from a year ago.  An over $50 per head decline in value is a significant amount of money in today's cattle market.

Market analysts don't often talk about by-products because they are of  much less importance than the cattle price, yet the large decline in value over the past year is an important contributor to cattle value.  A large portion of by-products are exported, whether its hides to Asian countries for further processing into finished products or livers to Egypt.  An economic slowdown in Asia and other countries and a rapidly increasing value of the dollar contributes to the decline.

The value of the dollar has increased from 9 percent to 40 percent over the last 2 years across a number of livestock and meat important trading partners.  The U.S. dollar is up 26 and 27 percent versus Australia and New Zealand currencies since January 2014, respectively.  The dollar strength has encouraged beef and lamb imports.  In our North American market, the dollar is up 32 percent versus Canadian dollar and 40 percent versus the peso.

It is important to remember that the exchange rate is not the only factor in trade.  Exchange rate moves are translated into price changes for the goods traded.  Other events like drought and economic slowdowns can trigger indirect effects changing trade levels.

This week is the Southern Agricultural Economics Association annual meeting where researchers and graduate students across the South present the results of their recent research.  The meeting coincides with researchers from other disciplines such as animal science.  Several paper topics caught my eye including research on valuing characteristics of bred cows, impacts of brahma breed on South Texas calf markets, and economic factors affecting grid price discounts. 



US Ethanol Stocks Hit Record

The Energy Information Administration released data Wednesday, Feb. 10, showing an increase for domestic ethanol production while total inventories jumped to a record high and implied demand increased as well.

The data showed total inventories increased 600,000 barrels (bbl), or 2.7%, to 23.0 million bbl during the week-ended Feb. 5, raising the year-over-year surplus to 1.8 million bbl, or 8.6%.

Plant production ramped higher after falling three weeks straight, up 10,000 barrels per day (bpd) to 969,000 bpd last week, while up 0.7% year over year.

Blender inputs, a proxy for ethanol demand, rose 43,000 bbl, or 5.3%, to 858,000 bpd for the week, while up 3.9% year over year.



Ag professionals should consider key policy issues in upcoming election cycle

As presidential candidates stake out their 2016 election platforms and key priorities, growers and their business partners should seek opportunities to move agricultural priorities forward this election season.

“The upcoming election won’t determine the size and scope of a farm bill or determine farm prosperity,” says Bruce Knight, principal and founder of Strategic Conservation Solutions. “But it could impact areas related to trade, immigration and regulatory standards.”

2016 also marks the last year of President Barack Obama’s second term, making it likely the administration will work to address legacy issues that could impact the ag world. Jeffrey Sands, manager of federal government relations for Syngenta, believes that international trade and energy are among the legacy issues that ag interests might be able to work on with the Obama administration during its waning months.

Below are some political developments that growers and resellers should follow over the next 12 to 15 months:

·         Trade Pact Delay – Negotiations have concluded on the Trans-Pacific Partnership, and now it’s up to Congress to pass the massive trade deal among 12 countries that rim the Pacific Ocean. Many view the deal as beneficial for American agriculture, but some analysts think Congress won’t act on the deal until after the 2016 election cycle.

“Trade could face some setbacks as a result of campaigning and concerns about what issues make up the agreement,” says Sara Wyant, president of Agri-Pulse Communications Inc.

·         Immigration Reform Challenges – The majority in Congress has indicated that they are not particularly interested in working with the president on immigration in 2016. While rhetoric about immigration may be part of the campaign trail, inactivity will likely continue on any sort of overhaul to the program in the immediate future.

·         Regulatory Focus – Experts expect to see regulatory action increase significantly as agency heads have been charged with putting the finishing touches on key legacy issues for the Obama administration. Although a federal court ruled in late 2015 that the U.S. Environmental Protection Agency (EPA) overstepped its authority on the Waters of the United States rule, similar proposals may become talking points for various groups in an attempt to influence campaigns.

·         Biotech Acceptance – Known as the Coordinated Framework, a proposed effort to modernize the regulatory channels for approving new biotech traits within three federal agencies (U.S. Department of Agriculture, Food and Drug Administration, and EPA) is speeding up the conversation regarding biotechnology acceptance. A federal bill to standardize how food containing genetically modified ingredients is labeled is also moving through Congress.

·         Energy and Climate Change – This is another legacy area where agricultural interests may be able to work with the Obama administration, but regulatory and congressional action late in 2015 may have limited the possibilities. The EPA’s recent release of a new renewable fuel standard (RFS) for 2014, 2015 and 2016 means that more biofuels will be blended in 2016 when compared with the agency’s previous proposal, but the prospect of additional blending of biofuels in future years is uncertain because of the EPA’s movement away from the volumes in the RFS statute. Efforts to roll back the RFS or make it less ambitious could impact the marketplace and demand for commodities, as well as slow the overall demand for biofuels, says John Fuher, director of legislative affairs for Growth Energy.

Although the emphasis may not be on agriculture as an industry in this election cycle, there’s still a lot at stake for agribusiness. Growers and their business partners alike need to measure what opportunities are available to move agricultural priorities forward.

“The key thing is putting ourselves in front of these issues,” Sands says. “We have to drive home the importance of rural America inside the beltway and to the presidential hopefuls.”