Tuesday November 8 Ag News

Field to Market Workshop: Field Assessment to Improve Efficiency

Nebraska Extension is hosting a workshop for farmers interested in field sustainability and continuous improvement.  Using the Field to Market Fieldprint calculator farmers will enter management and production information which will be used to compare fields with national states, and local averages for the metrics of yield, erosion, irrigation efficiency, energy use, and greenhouse gas emissions.  Data and production information is all kept confidential. 

Mon, Dec. 5th 9 a.m. to Noon – Dodge Co. Extension Office, Fremont, NE, Preregister: 402-727-2775
Tues, Dec. 6th 9 a.m. to Noon – Farm Credit Services of Am., Columbus, NE, Preregister: 402-563-4901
Tues Dec. 6th 3 p.m. to 6 p.m. – York County Extension Office, York, Preregister: 402-362-5508
Wed Dec. 7th 9 a.m. to Noon – Holt County Courthouse Annex, O’Neill, NE, Preregister: 402-336-2760
Thur Dec 8th 9 a.m. to Noon – Pender Fire Hall, Pender, NE, Preregister: 402-374-2929
Thur Dec. 8th 2 p.m. to 5 p.m. – Central Valley Ag, Oakland, NE, Preregister: 402-374-2929

Please re-register for this workshop by Wednesday December 1st. 



USDA Announces Enrollment Period for Safety-Net Coverage in 2017

U.S. Department of Agriculture (USDA) Farm Service Agency (FSA) Administrator Val Dolcini has announced that producers on farms with base acres under the safety-net programs established by the 2014 Farm Bill, known as the Agriculture Risk Coverage (ARC) or Price Loss Coverage (PLC) programs, can begin visiting FSA county offices now to sign contracts and enroll for the 2017 crop year. The enrollment period opened on Nov. 1 and will continue until Aug. 1, 2017.

“FSA issued more than $7 billion in payments in October 2016 under the ARC-County and PLC programs for the 2015 crop to assist enrolled producers who suffered a loss of price or revenue or both,” said Dolcini. “Since shares and ownership of a farm can change year-to-year, producers on the farm must enroll by signing a contract each program year. I encourage you to contact your local FSA office today to schedule an appointment to enroll.”

If a farm is not enrolled during the 2017 enrollment period, the producers on that farm will not be eligible for financial assistance from the ARC or PLC programs for the 2017 crop should crop prices or farm revenues fall below the historical price or revenue benchmarks established by the program. Producers who made their elections in 2015 must still enroll during the 2017 enrollment period.

The ARC and PLC programs were authorized by the 2014 Farm Bill and offer a safety net to agricultural producers when there is a substantial drop in prices or revenues for covered commodities. Covered commodities include barley, canola, large and small chickpeas, corn, crambe, flaxseed, grain sorghum, lentils, mustard seed, oats, peanuts, dry peas, rapeseed, long grain rice, medium grain rice (which includes short grain and sweet rice), safflower seed, sesame, soybeans, sunflower seed and wheat. For more details regarding these programs, go to www.fsa.usda.gov/arc-plc.



Dangerous Gases a Concern During Removal of Slurry and Bedded-pack Manure
Amy Millmier Schmidt, NE Extension Livestock Bioenvironmental Engineer

Gases produced during manure decomposition can build up in confined spaces and be released in deadly concentrations during agitation and pumping of slurry pits and removal of bedded-pack manure. Recent deaths of cattle in the Midwest have been attributed to lethal concentrations of hydrogen sulfide gas released during slurry manure agitation. Even more devastating are the losses of human lives resulting from manure gases.

As crops come out of fields, farmers and custom manure haulers are focused on getting manure applied before snow or frozen soils preclude application. Removing manure from storages, particularly slurry storages and pits located beneath a facility housing animals, requires careful attention and practices to avoid hazards to both workers and animals. Likewise, entering a manure pit to access equipment or other items is simply not acceptable without personal protection equipment. The following manure handling guidelines apply when working around manure storages.

NEVER ENTER A MANURE STORAGE STRUCTURE without proper personal protection equipment (PPE): a self-contained air supply, a safety/rescue harness, and a second person who remains outside the structure and can rescue the worker from the pit, if necessary, using the safety harness. Entering a structure to retrieve an unconscious person can easily result in multiple casualties. Being able to retrieve an unconscious person via safety harness may save their life by minimizing their length of exposure to manure gases.

NEVER ENTER LIVESTOCK HOUSING WHILE MANURE IS BEING AGITATED. Even when ventilation is operating, workers should avoid entering a building where a pit beneath the production area is being agitated. Entrances to buildings should be marked with caution tape or other bold signage to prevent entry by workers.

ALWAYS OPERATE VENTILATION SYSTEMS AT THEIR MAXIMUM CAPACITY when agitating manure in a pit below where animals are housed. Hydrogen sulfide gas is heavier than air. In a recent report of cattle deaths during manure agitation, those animals lying down were lost to asphyxiation while those that were standing survived.

If possible, REMOVE ANIMALS FROM BUILDINGS BEFORE MANURE AGITATION BEGINS. If animals must remain in the buildings, monitor animals from outside the building and discontinue agitation and pumping if signs of animal stress are observed.

BE AWARE THAT HYDROGEN SULFIDE CAN “SETTLE” NEAR THE GROUND during agitation of outdoor slurry storages, particularly when the ambient air is still and temperature is cooling. Evening and early morning conditions can produce some of the most hazardous conditions. Avoid agitation of storages under these conditions or utilize fans/blowers to mix the air and dilute gases.

To minimize release of gases during manure agitation:
•Agitate below the manure surface to minimize turbulence, which can cause greater gas releases.
•Maintain a steady agitator intensity and depth below surface, which minimizes turbulence.
•Direct agitator nozzles towards the center of the pit to avoid “churning” of manure near walls and pillars.
•Maintain at least 18” of clearance between stored manure and slatted floors to minimize hydrogen sulfide dispersion into the breather zone of animals.

BEDDED-PACK BARNS can also be a source of hydrogen sulfide release during clean-out due to the minimal oxygen present in the bedded pack. The use of gypsum for cow bedding in these systems may contribute to greater hydrogen sulfide generation. When cleaning out these types of barns: use large fans or blowers to mix air; open all available doors, windows, and other air inlets/outlets; and consider testing gas concentrations during manure removal to ensure that workers are not exposed to hazardous gas levels.

DISTILLER’S GRAINS contain greater concentrations of sulfur than corn resulting in greater excretion of sulfur in manure. Therefore, feeding distiller’s grains to cattle in a slatted floor or bedded pack confinement system may contribute to greater risk of hydrogen sulfide release during manure removal.

HANDHELD AND WEARABLE HYDROGEN SULFIDE MONITORS are available from a number of online sources (enter search term: hydrogen sulfide monitor) for around a hundred dollars. Less expensive “test kits” that require monitoring a color change on a piece of reagent paper are not recommended as they require a liquid sample and cannot be used to monitor the changing gas concentration during manure removal activities. While the initial investment for a handheld monitor may seem high, being able to determine if lethal concentrations of hydrogen sulfide are present in and around livestock housing and manure storage facilities is priceless when it comes to protecting the lives of people and animals.



Online Review Course Prepares Certified Crop Advisers for Exam

A Certified Crop Adviser (CCA) online review course is being offered through Iowa State University Extension and Outreach to help individuals prepare for the next CCA examination on Feb. 3, 2017. The review course is offered exclusively online and includes presentations on crop management, pest management, nutrient management and soil and water management.

“There is so much material covered on the exam that it was impossible for instructors to cover the review material in a one or two-day meeting,” said Bob Hartzler, professor in agronomy and extension weed specialist at Iowa State University and course chairperson.  “The online platform allows people to access the material when they have the time.”

Each presentation includes a practice quiz to help test knowledge and comprehension. The review course includes supplemental materials and an overall practice exam, which may be attempted three times.

“The online review course is designed to specifically focus on information related to the CCA exam, and each question on the review course is linked directly to CCA performance objectives,” said Kristine Schaefer, program manager for the Pesticide Safety Education Program with ISU Extension and Outreach. “Once registered, the course is available anytime there is internet access.”

Technology requirements
Technology requirements include a valid email address, a web browser and connection to the internet, connected speakers, a printer if you wish to print out PDF versions of the presentations, and the Flash Player browser plug-in to view the presentations. If you don’t have a Flash Player, you may download it for free. Adobe Reader is needed to open PDF documents, however, if you don’t have Adobe Reader, you may download a free copy. All review course materials such as quizzes, PDF files and supplemental materials are available on iOS devices, such as iPads, with the exception of the flash-based presentations.

How to register
For more course details and to register, visit www.aep.iastate.edu/cca. For assistance with registration, contact ANR Program Services at 515-294-6429 or anr@iastate.edu. For questions regarding the CCA program and course content please contact Bob Hartzler at 515-294-1164 or hartzler@iastate.edu or Kristine Schaefer at 515-294-4286 or schaefer@iastate.edu.



Cattle Prices, More Room for Recovery?
Chris Hurt, Purdue University

Some are saying this is the most volatile cattle market ever. An evaluation of that statement would take considerable number crunching, but everyone can agree that few expected cattle prices to go above $170 per hundredweight in late-2014, and then to fall below $100 in mid-October 2016. That was an incredible decline of $75 in about two years.

Of course there is the old adage that "what goes up, must come down." If finished cattle prices dropped by nearly $75 in the two years after the 2014 high price, how much did they rise in the two years before the high? The lowest weekly price of finished steers in 2012 was $113. Prices rose by $59 before falling by $75.

Of course the supply and demand for beef are the primary drivers of finished cattle prices. Small supplies of cattle in 2014 were the result of the devastating Southern Plains drought and of high feed prices in the 2010 to 2014 time period. Small cattle supplies meant high finished cattle prices. In 2015 and 2016, lower feed prices and more cattle coming out of feedlots resulted in lower prices. However, another little- reported potential driver of this price volatility lies in the fact that adjustments at different levels in the beef chain occur at different rates. Stated most simply, cattle prices and wholesale beef prices tend to adjust quickly to changes in cattle supply while retail prices adjust more slowly. As cattle prices rise, retailers are slow to increase retail beef prices. This keeps the quantity of beef demanded strong and more of the retail price is bid back into the cattle price. This may "overstimulate" cattle prices.

We are now on the other side of that relationship as retail beef prices have been slower to come down, keeping retail beef prices higher and weakening the quantity of beef demanded and thus lowering the share returned to the cattle price. This may cause cattle prices to drop more sharply and overshoot on the downside. This overshooting on the downside may have occurred most recently. Packer and retail margins were narrow in 2014 and the farmer's share of the retail dollars spent on beef was 55 percent, the highest annual level since 1993. This year the opposite is true, with packer and retail margins at record highs resulting in the farmer's share of only 45 percent.

Into 2017, retail beef prices will likely continue to decrease and marketing margins will likely decrease with a greater share of the retail beef dollar getting back to the cattle price. While it is difficult to accurately predict how large this impact will be, it seems within reason to expect about an $8 to $12 improvement in finished cattle prices just based on narrowing marketing margins in 2017.

Trade is going to help as well in 2017. As U.S. beef prices come down in 2017 there will be less beef imports and more beef exports. USDA's current projections are for 11 percent less beef imports and a six percent rise in beef exports. Even though U.S. beef production could be up three to four percent in 2017, the positive impacts of trade mean that per capita beef supplies in the U.S. may only rise less than one percent. If demand stays similar, 2017 finished cattle prices would be expected to be modestly lower than this year's $118 to $120.

There continues to be a wide variation of opinions about the cattle market in 2017. Cash cattle prices have recovered about $7 in the past three weeks. Futures prices also recovered. However, futures traders remain far more pessimistic than the current fundamentals seem to suggest. Using futures prices on November 7 as a proxy for cash prices suggest 2017 finished cattle would average in the higher $90's. USDA analysts who use fundamental price models are forecasting the average finished cattle price to be $112 to $121. The mid-point of their forecast range is $116.50 per hundredweight, which is more consistent with current supply and demand expectations.

Clearly, wide swings in the cattle market over the past four years has made it difficult to establish benchmarks of what a high price, or a low price, for cattle should be. Cattle prices have lost their price reference points. Nevertheless, it should be remembered that it is the role of markets to "discover" the correct price over time.

The cattle industry has been through numerous shocks, including high feed prices and drought, in recent years. In trying to discover the right price, markets often have to overshoot and then undershoot as they continue to adjust in the search for the correct price. Finding the right price is not easy, yet markets are generally considered the most efficient way to find that elusive level. At the same time, we need to remember that the volatility implied in finding that right price has major financial consequences on participants in the entire beef chain, from cow-calf operations, to feedlot owners, to packers, to retailers.



Only 3 Days Left to Nominate Soy Grower Leaders for 2017 Lifetime Achievement Awards

The American Soybean Association (ASA) needs your help identifying outstanding grower leaders for the 2017 ASA award and recognition program. There are only three days left to submit a nomination! If you know someone who goes above and beyond for the soybean industry and amplifies truly outstanding leadership, we want to hear about it and recognize them for their hard work! Three major awards are presented:
    Lifetime Achievement Award – Association Focus
    Lifetime Achievement Award – Membership Focus
    Special Meritorious Service

Please consider submitting a nominee for one or all three categories. For more details, visit ASA’s website... www.soygrowers.com.  All nominations must be received no later than Friday, Nov. 11, 2016. If you have any questions, email Farris Haley at fhaley@soy.org or call 1-800-688-7692 Ext. 1284. The awards will be presented at the ASA Awards Banquet on Friday, March 3, 2017 during Commodity Classic in San Antonio, Texas.



NCGA Seeks a Few Good Leaders for 2018 Corn Board

The National Corn Growers Association Nominating Committee reminds members it is currently accepting applications for the 2018 Corn Board.  Through the Corn Board, members can become an integral part of the organization's leadership.  Click here for the application, which provides complete information on requirements, responsibilities and deadlines.

"I have had the privilege of working with so many talented, dedicated volunteers who step forward to lead this organization during my years on the Corn Board," said NCGA Chairman and Nominating Committee Chair Chip Bowling. "Their willingness to step forward as volunteer leaders plays a crucial role in building NCGA's future successes. As a true grassroots organization, we rely upon farmers to volunteer to lead, helping to shape policy and drive efforts. Serving on the Corn Board empowers farmers to play a proactive role in determining the collective future of our industry."

The NCGA Corn Board represents the organization on all matters while directing both policy and supervising day-to-day operations.  Board members serve the organization in a variety of ways.  They represent the federation of state organizations, supervise the affairs and activities of NCGA in partnership with the chief executive officer and implement NCGA policy established by the Corn Congress. Members also act as spokespeople for the NCGA and enhance the organization's public standing on all organizational and policy issues.

Applications are due Friday, January 6. Nominated candidates will be introduced at the March 2017 Corn Congress meeting, held in conjunction with the Commodity Classic in San Antonio, Texas. Corn Board members will be elected at the July 2017 Corn Congress in Washington, D.C., and the new terms begin Oct. 1.

For more information, growers may contact Kathy Baker at NCGA's St. Louis office at (636) 733-9004. To find out more about the NCGA Nominating Committee, which reviews applications and shapes the election process, welcomes questions, conversations and inquiries from association members, click on the www.ncga.com web site. 


The Andersons, Inc. Reports Third Quarter Results

The Andersons, Inc. (NASDAQ: ANDE) announces financial results for the third quarter ended September 30, 2016.
-    Company reports third quarter net income of $1.7 million, or $0.06 per diluted share
-    Grain Group turns in $1.9 million of pre-tax income after shedding underperforming assets and positioning itself to take advantage of improved crop conditions at harvest
-    Ethanol Group reports pre-tax earnings of $9.5 million, up from $5.9 million in the third quarter of 2015 on record production and a good margin environment
-    Plant Nutrient Group reduces pre-tax loss to $7.2 million as the Group navigates a difficult environment in the industry
-    Rail Group earns $6.8 million of pre-tax income as utilization rates soften

The Company reported net income attributable to The Andersons of $1.7 million for the third quarter of 2016, or $0.06 per diluted share, on revenues of $860 million. This represents a $2.9 million improvement compared to the net loss of $1.2 million in the same period in 2015, or ($0.04) per diluted share, on revenues of $909 million.

Year to date, the Company has produced net income attributable to The Andersons of $1.4 million or $0.05 per diluted share compared to the prior year when it generated $34.0 million, or $1.19 per diluted share.

"Conditions are improving for our Grain Group and margins are strong for the Ethanol Group, but challenges persist with our Plant Nutrient Group facing weak margins and our Rail Group continuing to experience softening in utilization," said CEO Pat Bowe.  "In this mixed environment, the team is making good progress on our $10 million cost reduction initiative and continuing to take action on the items within our control to combat uncertainty in some of our markets."