Monday July 3 Ag News

Handling Cattle Through High Heat Humidity Indexes
Larry Howard, NE Extension Educator, Cuming County

During the summer months, livestock producers need to understand and deal with heat and humidity. They need to consider some guidelines to help them reduce additional stress on cattle during these events and incorporate some of the following practices into our management practices.

The most important is to understand the relationship between temperature and humidity in respects to the Temperature Humidity Index (THI) or Heat Index.  The Cattle THI Chart (http://go.unl.edu/9gr4), will help to determine the risk level in planning cattle handling during the summer months. Producers need to be aware of the risk based on weather forecast of the heat stress.

Handling cattle early in the mornings before temperatures get too high is always recommended. Plan to handle cattle before 8:00 a.m. and never after 10:00 a.m. during summer months. Remember that the animal’s core temperature peaks approximately two hours after the environmental temperature peaks and takes four to six hours to lower back to normal temperature. With this in mind you should not think that handling cattle in the evening will reduce the risk of heat stress.

When processing cattle during high heat seasons, work cattle in smaller groups, so cattle are not standing in the holding area much longer than 30 minutes. Cattlemen should consider facilities that are shaded with good air flow to help reduce the heat. A sprinkler system may assist in cooling the area, if the water droplet size is large. Never over-crowd working facilities, work cattle slowly, and use low-stress handling techniques. Remember that processing cattle in any temperature elevates the animal’s core temperature.

Cattle movements should be short distances during hot seasons. Strategic planning on pen movements can assist in reducing unnecessary movements and potential heat stress. Moving heavier cattle closer to loading facilities throughout the feeding period can benefit in managing heat effects.

When planning or improving cattle handling and feeding facilities, cattlemen need to take into consideration air flow, shade, and sprinkler systems for cooling livestock. These considerations can help the danger of heat stress on livestock and improve feeding efficiencies during hot temperature periods.

Another important thing to remember is that compromised animals are at higher risk for heat stress. Those animals that are sick or lame are usually running higher temperatures than normal (average temperature for a beef animal is 101.5 degrees Fahrenheit), combined with hot temperature and high humidity raises their risk of heat stress. Producers will need to take extra precautions with these animals to provide additional shade and cooling.

Summer can be challenging for many cattle producers. By implementing some handling guidelines, cattlemen can reduce the risk level of heat stress and improve cattle performance.  Nebraska Extension has a publication “Feedlot Heat Stress Information and Management Guide” (http://extensionpublications.unl.edu/assets/pdf/g2266.pdf) that is a good resource on dealing with heat stress.



2017 Farm Real Estate Report Details Price Decline
Jim Jansen - NE Agricultural Systems Economics Extension Educator

The 2017 Nebraska Farm Real Estate Report released Friday indicates that based on 2017 market values, the estimated total value of agricultural land and buildings in Nebraska fell to approximately $127.7 billion. That represents a decline of approximately $5.6 billion from 2016.

Crop and livestock prices were cited as the main reasons for the drop in agland prices. Survey panel members also cited property taxes, farm input costs, and financial health of current owners.

The report, which breaks down agland values by use and by district, can be downloaded from the Department of Agricultural Economics website at http://agecon.unl.edu/realestate/2017-farm-real-estate-report.  The Northeast district land market value dropped 8% to $5505/acre.  In the East-central district, land value was down 9% at $6395/acre. 

Jansen notes that this marks the third consecutive year of value decline from the record high of 2014 in the all-land category across Nebraska. For the year ending Feb. 1, 2017, ag land values averaged about 9% lower than the previous year. The state average was $2,820 per acre or about 9% ($295 per acre) less than the prior year’s value of $3,115 per acre. Ag real estate values in the western two-thirds of Nebraska, which includes the northwest, north, central, southwest, and south districts, dropped an average 5%-10%, Jansen said, while ag land in the northeast, east, and southwest districts dropped 10%-15%.



Time to Scout for Western Corn Rootworm Beetles 
Robert Wright - NE Extension Entomologist

Western corn rootworm beetles began emerging in southeast and south central Nebraska this week. Beetles typically emerge somewhat later in northeastern and western Nebraska.

Beetles emerging before silk emergence may feed on corn leaves. They feed by scraping the surface tissue, leaving a white parchment-like appearance. Once silks emerge, they become the favored food. The earliest silking fields in an area often are most heavily damaged because beetles will move to them in search of green silks.

There are no thresholds for silk-clipping damage based on beetle numbers because damage levels are not correlated well with beetle densities. Usually an average of 5-10 beetles per ear is required to seriously affect pollination. Severe silk feeding (silks clipped to less than ½ inch from the ear) at 25%-50% pollen shed may indicate a need to apply insecticide. Silk feeding after pollination is complete does not affect yield potential.

See the 2017 Guide for Weed, Disease, and Insect Management in Nebraska (EC 130), for insecticides labeled for adult rootworm control.



CHANGE GRAZING MANAGEMENT AS PASTURES DRY UP
Bruce Anderson, NE Extension Forage Specialist

               Some folks received needed rain recently, but many areas have become increasingly dry.  As pastures dry up, how should you graze?

               Many pastures are getting dry.  Even if spring rain was adequate, recent dry weather combined with all the hot days lately is producing some drought-stressed pastures.  Many pastures are, or soon will be, completely grazed out.

               When your pastures run out of water, some grazing rules no longer work.  Probably the main rule that breaks is one called ‘grass grows grass’.  Have you ever heard that phrase?  It describes leaving enough grass in a grazed pasture so it can regrow more quickly.  But when we say ‘grass grows grass’, we expect everything grass plants need for regrowth will be available, including moisture.  But if moisture is absent it’s a totally different story.

               As soils begin to get dry, I still suggest leaving grass behind to encourage regrowth that uses what little moisture is available.

               Once soils get so dry, though, that you’ll need a heavy rain for any regrowth to occur, grazing management can change.  At that point consider grazing pastures completely, leaving behind only enough grass and litter to protect your soil from eroding.  Any extra grass left behind will not regrow when it gets this dry, and probably will be gone or worthless by the time cattle return later.

               Suppose you do graze completely, and it does rain.  Then, do not graze the regrowth until it has been at least six weeks since that regrowth started to avoid injuring plants.  Notice – I said since regrowth started, not just when grazing ended.

               Drought causes changes in the way plants grow.  Your grazing management should change, also, to get the best use of your grass.



Nebraska’s Exports Strong, But Concentrated
Nathan Kauffman, KC Fed Assistant Vice President and Omaha Branch Executive

Nebraska’s export-based industries recently have been on solid footing, though exports are also highly concentrated among a few trading partners and one major industry. More than two-thirds of Nebraska’s exports are destined for just five countries; Mexico and Canada account for nearly half. Moreover, food exports have accounted for a large majority of Nebraska’s products sent overseas. The economies of Nebraska’s major trading partners have been relatively stable, and food exports recently have been on the rise. These factors should support Nebraska’s future exports, but increased diversification among destinations or products could also offer some protection against country-specific or industry-specific shocks.

Nebraska Export Trends
The value of products exported from Nebraska is a notable component of the state economy, but international exposure has remained slightly less than the nation. In line with the nation as a whole, the value of Nebraska’s exports as a share of the overall economy increased significantly from 2004 to 2011. In Nebraska, exports grew from about 4 percent of the state economy in the early 2000s, to almost 8 percent in 2011, and dropped to less than 6 percent in 2016. Similar trends occurred in the neighboring states of Iowa and Kansas. Nationally, exports accounted for nearly 10 percent of gross domestic product (GDP) in 2011, and fell to just under 8 percent in 2016.

Changes in exports as a share of the overall economy have occurred alongside changes in the value of the U.S. dollar. Currency rates determine how expensive or affordable a country’s products are to foreign buyers. If the value of the U.S. dollar falls in relation to another country’s currency, it reduces the relative price of U.S. goods in that market. Conversely, if the dollar’s value rises, U.S. goods become more expensive. From 2002 to 2011, the value of the dollar, measured against a broad basket of other currencies, declined about 25 percent as the value of U.S. and Nebraska exports increased. Since 2011, however, the value of the dollar has increased 26 percent, and exports as a share of GDP have declined modestly.

Unlike the nation and surrounding states, however, the export of manufactured products as a share of total exports has increased in Nebraska in recent years. From 2000 to 2011, manufactured exports, as a share of total exports, fell from 84 percent to 72 percent, a trend similar to the nation. But since 2011, this share has increased back to 81 percent in Nebraska, even as the downward trend continued nationally and, generally, in neighboring states.

The primary driver of the recent strength in Nebraska’s exports of manufactured products has been food products, specifically meat. Since 2011, the value of Nebraska’s food exports has increased 4.7 percent, despite a 16-percent decline in the value of exports overall. The next strongest contributors to Nebraska’s exports are machinery and agricultural products, which since 2011 also have dropped 30 percent and 40 percent, respectively, due to a sharp drop in agricultural commodity prices that began in 2013.

Export Concentration
A snapshot of Nebraska’s export environment underscores a strong sense of optimism driven by solid global partners, but also at the same time notable concerns due to a lack of diversification. Nebraska’s top five trading partners account for more than two-thirds of the state’s exports. These trading partners include, in order of significance, Mexico, Canada, Japan, China and South Korea. Nebraska’s level of exposure to its top five trading partners ranks the state 10th nationally. It is worth noting, however, that the concentration of Nebraska’s top five trading partners is third highest for a landlocked state that does not share an international border. 

More notably still, Nebraska’s exports are highly concentrated among its top five trading partners in its most significant export category. Nearly 30 percent of Nebraska’s exports, in terms of value, are food products shipped to one of these top five countries. Moreover, Nebraska leads all states in the value of its food exports as a share of total exports to all destinations at almost 40 percent of exports. 

On one hand, the general economic strength of Nebraska’s top trading partners points to further momentum for export activity. Economic growth in each of the top five trading partners has been relatively steady the past two years, and is generally expected to remain steady this year and next (Chart 8). The unemployment rate in each of these countries also has been stable the last few years, overall, and has declined notably in Japan. However, a concentration among just a few trading partners, or in one primary industry (food products), could also leave Nebraska more exposed than other states if one of those major partners, or the food production industry, experiences an economic downturn.

Recent Export Developments
In recent months, Nebraska has maintained its export momentum. Through April, the value of Nebraska’s exports increased significantly from the year before, bucking the trend of recent years when exports had been falling.

Similar to recent years, food exports also have been particularly strong in 2017. The value of food exports from Nebraska through April has increased 16 percent from a year ago, driven by substantial increases in shipments to East Asia (Japan, mainland China and Taiwan). Meat exports have accounted for more than 75 percent of Nebraska’s food exports in 2017, similar to recent years’ trends.

A recent agreement to open Chinese markets to exports of U.S. beef products points to further optimism for Nebraska exports. In 2003, China banned imports of U.S. beef following the discovery of mad cow disease in some U.S. cattle herds. China, with a population of about 1.4 billion, would represent a significant opportunity for future export growth for Nebraska, which is currently the nation’s second-largest exporter of meat products. In fact, since 2000, China’s imports of meat products have increased by an average annual rate of more than 90 percent.

Despite the recent agreement with China, however, uncertainty about future trade policy has clouded the outlook. With discussions about the future of the North American Free Trade Agreement (NAFTA) still ongoing, areas with the most significant amount of trade to Canada and Mexico may have the most at stake in their export markets, depending on NAFTA’s future. Although Canada and Mexico are Nebraska’s top two trading partners, the economies of many other states are more highly exposed to exports to these two countries. Nevertheless, recent exports from Nebraska to Canada and Mexico have been particularly strong. In 2016, exports to Mexico were up 16 percent from the year before and exports to Canada through April 207 have surged nearly 40 percent.

Conclusion
Prospects of economic growth among Nebraska’s major trading partners should continue to support export-based industries. Despite a downturn in agricultural commodity prices that has limited the value of exports among industries connected to farming, food exports recently have been strong. Food products are the dominant export category for Nebraska, which is likely to continue to drive further growth, but adding other markets and destinations could also provide some additional diversification to growth derived from export activity.



CWT Assists with 1.9 Million Pounds of Cheese Export Sales

Cooperatives Working Together (CWT) has accepted 10 requests for export assistance from Bongards Creameries, Dairy Farmers of America, Northwest Dairy Association (Darigold) and Tillamook County Creamery Association that have contracts to sell 1.9 million pounds (853 metric tons) of Cheddar and Monterey Jack cheeses to customers in Asia, Central America and the Middle East. The product has been contracted for delivery in the period from July through September 2017.

So far this year, CWT has assisted member cooperatives that have contracts to sell 41.9 million pounds of American-type cheeses and 3 million pounds of butter (82% milkfat) to 17 countries on five continents. The sales are the equivalent of 453.9 million pounds of milk on a milkfat basis.

Assisting CWT members through the Export Assistance program in the long term helps member cooperatives gain and maintain market share, thus expanding the demand for U.S. dairy products and the U.S. farm milk that produces them. This, in turn, positively affects all U.S. dairy farmers by strengthening and maintaining the value of dairy products that directly impact their milk price.



USDA Announces Commodity Credit Corporation Lending Rates for July 2017

The U.S. Department of Agriculture’s (USDA) Commodity Credit Corporation today announced interest rates for July 2017. The Commodity Credit Corporation borrowing rate-based charge for July is 1.125 percent, unchanged from 1.125 percent in June.

The interest rate for crop year commodity loans less than one year disbursed during July is 2.125 percent, unchanged from 2.125 percent in June.

Interest rates for Farm Storage Facility Loans approved for July are as follows, 1.500 percent with three-year loan terms, unchanged from 1.500 percent in June; 1.750 percent with five-year loan terms, down from 1.875 percent in June; 2.000 percent with seven-year loan terms, down from 2.125 percent in June; 2.250 percent with 10-year loan terms, down from 2.375 percent in June and; 2.250 percent with 12-year loan terms, down from 2.375 percent in June.



 Rabobank Beef Quarterly Q2 2017: Market Disruption Changing Trade Flows

Political upheaval in Brazil, a new trade agreement between the US and China, and proposed bans on slaughter in India: All involve the major bovine-exporting nations of the world and have the potential to cause material shifts in global trade.

According to Angus Gidley-Baird, Rabobank Senior Analyst Animal Protein: “While U.S. exports continue to perform strongly (and have now reached record levels), reduced supply from Australia and New Zealand, along with potential shocks from Brazil and India, could see the balance in the beef market shift back to a supply-limited market.”

Brazil’s meat sector has been rocked by two political events during 1H 2017. In March, the Brazilian federal police investigation into irregularities in meat inspections resulted in most of Brazil’s importing countries placing temporary restrictions on Brazilian meat imports (they have since been lifted). In May, Brazil’s largest beef processor was caught up in political scandal. Brazilian beef exports dropped by around 10% YOY in the first five months of 2017, opening space in the global beef market, and the recent drop in cattle prices may lead to a future reduction in production.

In early June, the Indian federal government released a directive that would ban the sale of cattle, including buffalo, in notified livestock markets for non-agricultural purposes—which would include the sale of cattle for slaughter. As India is one of the largest global bovine exporters, any ban on slaughter would have enormous global impact. At the time of writing, no further information was available as to how many states would conform to the federal government directive, and when.

The Rabobank Seven-Nation Beef Index remained relatively stable up to May, bumping around the 165-point mark for the past 12 months.



Vanilla Ice Cream Reigns Supreme; Chocolate Dominates in Top Five

While vanilla ice cream continues to reign supreme as America's favorite, chocolate-filled flavors dominate the top five bestselling ice cream flavors according to a recent survey of ice cream makers and retailers across the United States. The survey was conducted by the International Dairy Foods Association (IDFA) among its members who make and market ice cream as well as members of the National Ice Cream Retailers Association, which includes operators of ice cream parlors in the United States.

IDFA released the results to launch its celebration of National Ice Cream Month, which runs throughout the month of July.

According to the survey, America's top five flavors are: vanilla, chocolate, Cookies N' Cream, Mint Chocolate Chip and Chocolate Chip Cookie Dough.

"Vanilla has long been the best-selling ice cream flavor not only because it is creamy and delicious, but also because of its ability to enhance so many other desserts and treats," said Cary Frye, IDFA vice president of regulatory and scientific affairs and nationally respected expert on ice cream and frozen desserts. "It tastes great topped by whipped cream and fudge sauce in a sundae, with root beer in a float or atop a warm slice of apple pie."

When asked to name their most daring and creative flavors, the respondents listed less traditional options including Lemon Poppyseed Muffin, Black Sesame and a bourbon- and caffeine-spiked concoction called Exhausted Parent.

Survey results also confirmed that many ice cream makers and retailers have family-owned businesses, have been in operation for more than 50 years and primarily market their products locally and regionally.

From neighborhood scoop shops to national brands, the ice cream industry in the United States contributes more than $39.0 billion to the national economy and creates more than 188,000 jobs nationally.

The Great Lakes region of the United States in particular, which includes Illinois, Indiana, Michigan, Ohio and Wisconsin, is a hot spot for the chilled treat. For respondents who market their products regionally, the area earned the top spot for the most successful and the most served market.

Respondents also ranked the Southwest, Plains and the Mideast regions as their next most successful markets, helping to answer the often-asked question: "Which region consumes the most ice cream?"

When asked about ingredients added to ice cream, the majority of those surveyed said that pecans are the most popular nut or nut flavoring, while strawberries are the most popular fruit added to their frozen treats.

Waffle cones and sugar cones were voted as equally popular containers with consumers, while ice cream sandwiches came out on top as America's favorite novelty product. Respondents voted the ice cream sandwich as their best-selling novelty over ice cream cups, pops, cones and bars respectively.

In 1984, President Ronald Reagan designated July as National Ice Cream Month and the third Sunday of the month as National Ice Cream Day. He recognized ice cream as a fun and nutritious food that is enjoyed by a full 90 percent of the nation's population. In the proclamation, President Reagan called for all people of the United States to observe these events with "appropriate ceremonies and activities."

IDFA encourages retailers, scoop shops and consumers to celebrate National Ice Cream Day, which is July 16. For a summer treat, grab a cone, make a sundae or scoop a dish!

IDFA, headquartered in Washington, D.C., represents the nation's dairy manufacturing and marketing industries and their suppliers, with a membership of 550 companies representing a $110-billion a year industry. IDFA's 220 dairy processing members run more than 600 plant operations, and range from large multi-national organizations to single-plant companies. Together they represent more than 85 percent of the milk, cultured products, cheese and frozen desserts produced and marketed in the United States.