Monday Aug 7 Ag News

Continued Scouting Urged for Southern Rust Now in 26 Counties
Tamra Jackson-Ziems, Extension Plant Pathologist

Southern rust has now been confirmed in corn in 26 Nebraska counties. As we confirm more Nebraska counties with southern rust, it's important to know that the vast majority of rust reports have been sparse and no fungicide application was required at this time.

A few localized areas, especially where it was first reported, have required fungicide applications.

Rust will continue to build in the coming weeks and the weather, particularly warm humid conditions, will largely determine disease progression. Continued scouting is important as southern rust infection during the grain-fill through dough stages can cause critical injury.

Counties where southern rust has been confirmed...  Adams,  Antelope, Boone, Buffalo, Butler, Cass, Clay, Dodge, Fillmore, Gage, Hamilton, Holt, Jefferson, Kearney, Lancaster, Nemaha, Nuckolls, Otoe, Platte, Richardson, Saline, Saunders, Seward, Stanton, Thayer, York. 

Please continue to scout frequently for this disease and share observations and samples with the Plant and Pest Diagnostic Clinic so we can track its development.

Thank you to all who have submitted samples to help outline and better understand the movement and severity of southern rust in Nebraska this year.



Using Manure as an Aid in Reducing Erosion and Runoff 
Rick Koelsch - NE Livestock Environmental Engineer

Manure’s impact on formation of larger and more stable soil aggregates was the focus of an earlier article. This article reviews the soil erosion and runoff benefits resulting from changes to soil’s physical characteristics from manure.

Charles Wortmann and Dan Walters, faculty in the University of Nebraska-Lincoln Department of Agronomy and Horticulture, provide several important insights in a field research initiative that monitored soil erosion, runoff, and phosphorus (P) loss from replicated field plots over three cropping seasons immediately after manure application and four subsequent years when no manure was applied. This article reviews results published in a Journal of Environmental Quality article, Phosphorus Runoff During Four Years Following Composted Manure Applications, and related information.

Take Home Message
This research demonstrates that manure has significant value for reducing runoff and erosion. By itself, it can't solve the soil erosion shown in Figure 1, but when used in combination with other soil management practices, manure can protect our soils and limit agriculture’s environmental costs. In some instances, however, manure can be an environmental negative if phosphorus is allowed to accumulate in soils. To achieve the environmental benefits of manure and minimize the risks, manure application rates and frequency of re-application to the same field must maintain soil P levels near the agronomic levels required by the selected crops.

Wortmann and Walters’s primary intent was to understand P losses from manure application; however, they also observed several important impacts on soil physical and chemical characteristics. A low and high P composted beef manure was applied to replicated runoff plots (measuring 12 by 36 feet) with a median slope of 5.5% and soil series of Pohocco silt loam. Manure was applied to meet crop nitrogen requirements for three years in a row. Runoff plots were evaluated for these three cropping seasons immediately following manure application as well as three additional cropping seasons with no manure application. All erosion, runoff, and P loss resulting from natural rainfall and pivot irrigation was quantified from March through August of each of the six cropping seasons.

Lesson 1: Compost application reduced erosion…
and runoff by approximately two-thirds during the three cropping seasons following manure application. Improvements in soil water holding capacity and soil infiltration rates were responsible for the lower runoff and erosion levels. One would expect less total sediment, nitrogen, and pesticide levels reaching nearby surface water based on these results. However, increased P levels in neighboring surface waters is an expected negative environmental impact.

Lesson 2: Manure application had a residual benefit…
for runoff and erosion that persisted for at least the next three cropping seasons (blue bars in Figure 2). This research observed approximate reductions in runoff of 40% and of erosion, 55%. The reduced runoff also suggest additional soil moisture storage and greater crop resiliency to dry periods.

Lesson 3: Additional soil quality benefits…
were observed for soil bulk density, soil organic matter, and pH. Although visual evidence of compost disappeared within one year, soil organic matter content and pH benefits of manure were observed four years after the last manure application.

Lesson 4: Increased soil P levels…
were significant as a result of three consecutive years of compost manure application and producing increased P movement in runoff and erosion. Application to meet crop N requirements applies more P than is required for crop production. Repeating this practice three years in a row, in addition to applying a high P compost (manure from cattle fed diet with distillers grains), further aggravates this negative environmental impact. If manure is to be applied at a nitrogen-based rate, it is desirable both economically and environmentally to not reapply manure to the same field until soil P levels return to a level requiring additional P supplementation. For some manures with a low N to P ratio, it may be desirable to apply manure at a rate equal to the P removed by the next three to five cropping seasons and then supplement with commercial nitrogen fertilizer to meet crop N requirements. This strategy will produce economic and environmental value, while minimizing the P impact on local surface water.

Conclusion
Manure’s economic and soil improvement benefits should both be recognized and built into successful cropping systems. Thanks to the work of Wortmann and Walters, we have better insights as to how manure can improve the physical characteristics of soils thus reducing runoff and erosion.



You're Invited to an Employment Law Training

Date: August 30
Location:  Ramada in Columbus, NE
9:00 am to 12:00 pm - Employment Law Training
Lunch provided
1:00 pm to 4:00 pm - Poultry 101

Date:September 22
Location:  Venue restaurant in Lincoln, NE
1:00 pm to 4:30 pm - Employment Law Training
4:30 pm - Refreshments

Employment law training will be provided by Mark Fahlson, Partner with Rembolt Lutdke Law Firm.  His practice area focuses on employment and labor law.  Participants will be provided with a resource toolkit to take with them.

RSVP to Lori Anderson at loria@a-fan.org or 402-421-4472.  Both meetings are hosted by the Alliance for the Future of Agriculture in Nebraska. 



Stock Realty & Auction Co. Now BigIron Realty

A well-known real estate company is changing its name, but not the way it does business. Stock Realty & Auction Co. is now BigIron Realty, adopting the BigIron brand used by the online and onsite equipment auction business started by Ron and Mark Stock. The Stock brothers began their real estate careers to focus on farm and ranch land sales. The company is based in Nebraska and is licensed to do business in Nebraska, Kansas, Iowa, Colorado, South Dakota, Missouri, Minnesota and Oklahoma. Mark Stock says they plan to expand the BigIron Realty network throughout the Midwest and are recruiting new real estate agents. 

“We started in the real estate business to help serve farmers and ranchers,” said Stock. “Now we look to provide the same level of hometown service to landowners across the country. We thought it was a good time to adopt the BigIron name that farmers know and trust.”

In addition to their BigIron businesses, the Stock brothers both farm. Mark Stock says their roots in agriculture are important as they help farmers and landowners sell their precious resource.

“The decision to sell a farm or ranch can be difficult for families,” said Stock. “But our experience helps us handle each sale with respect and understanding while making the process as easy as possible. As we grow, we’ll look for partners who have the same philosophy of service.”

BigIron Realty provides a full range of real estate services and farm management. For more information visit BigIronRealty.com.



ACE conference reveals global ethanol demand opportunities

The 30th annual American Coalition for Ethanol (ACE) conference Aug. 15-17 in Omaha will highlight key efforts underway here and abroad to set the stage for higher ethanol blends.

One of this year’s featured speakers is Jim Galvin, CEO and Director of Lakeview Energy and the appointed leader of the U.S. Grains Council Advisory Team for Ethanol. Galvin will provide an update on market trends, factors driving (and restricting) global demand for ethanol and co-products, and implications of trade policy reform on the U.S. ethanol industry.

“We need to ensure that biofuels and ag commodities do not get caught up in trade wars or retaliatory responses from other countries as the current Administration navigates through its reviews of existing trade deals and develops new ones,” Galvin said. “The importance of exports for ag and more recently for biofuels cannot be underestimated by this Administration as tariffs would be extremely disruptive at a time when we see plentiful global supplies of these commodities.”

Galvin added that two critical issues facing the industry are remaining price competitive on the world market for octane and having efficient logistics to get product to export destinations. “At a government level, we see increased attention by some countries on considering imposing import duties on our ethanol,” Galvin said. “We as an industry need to vigorously defend against these barriers to free and open trade.”

Ethanol is becoming more widely used and accepted as part of the global fuel transportation mix, evidenced by the sale of U.S. ethanol to countries like China and South Korea in recent years. Policies are also emerging for the inclusion of greater biofuels in a country’s fuel mix to help improve air quality and reduce greenhouse gas emissions. The recent announcement by Mexico to adopt an E10 fuel is a prime example of this, Galvin said.

Kristy Moore, owner of KMoore Consulting LLC, has spent time in Mexico assisting with efforts for this market prospect. Moore will also speak at ACE’s upcoming conference. “The Mexico opportunity for ethanol is exciting for two key reasons: size of the market potential and geography,” Moore said. “Currently, Mexico consumes about 12 billion gallons of gasoline per year (BGY)—this is just under California gasoline consumption (15 BGY) and more than the size of the Texas gasoline market.   Mexico has never allowed ethanol blended gasoline, therefore the U.S. supply of gasoline, which nearly all of it contains 10 percent ethanol, was off limits.  Mexico is a brand-new market  opportunity.”

More on our agenda is available here... https://ethanol.org/events/conference. Online registration has been extended until this Wednesday, Aug. 9.



International Buyers of U.S. Soy Convene in Omaha

Nearly 60 percent of the soybeans currently growing in America’s soybean belt are exported. Soy exports generated more than $24 billion of revenue for the United States last year, and this number is growing alongside global populations and economies.

This month, many of the farmers who grow U.S. Soy will have the opportunity to meet the international buyers who purchase it. The U.S. Soybean Export Council (USSEC) will host its 5th annual U.S. Soy Global Trade Exchange Aug. 15-17 at Omaha’s CenturyLink Center, and attendees will represent a significant amount of U.S. Soy purchased.

“The United States is a top supplier of the world’s soy, thanks to the sustainable, consistent supply and exceptional composition that U.S. soybean farmers provide,” says Jim Miller, USSEC chairman of the board. “To maintain this leadership position, it’s imperative that we meet and exceed our customers’ demands. This event opens an important dialog that spans the soy value chain, from the U.S. soybean farmer to the end user.”

More than 250 international buyers from 50 countries are expected to attend the 2017 U.S. Soy Global Trade Exchange, in addition to 350 U.S. soybean farmers, exporters, traders and other industry representatives. They will attend trade team buyer/supplier meetings, enjoy a networking reception at the Joslyn Art Museum and participate in key discourse on recent global and commercial issues affecting international soy and grain markets.

Perhaps the most valuable takeaway from the U.S. Soy Global Trade Exchange is the relationships forged during it. Following the event, groups of international attendees will visit U.S. farms for a firsthand glimpse of sustainable U.S. soybean farming practices.

Indiana soybean farmer and USB director Mike Beard hosted a group of international buyers on his farm before the 2016 U.S. Soy Global Trade Exchange.

“I think I learned as much from them as they did from me,” he recalls. “It’s important to hear what your customers are asking for; after all, without them we don’t have a market for our product. Marketing is all about relationships, and developing relationships with our international customers creates mutually-beneficial opportunities.”

USSEC is hosting the event in conjunction with the Midwest Shippers Association. For additional information, visit http://www.grainconference.org.



Growing Trade with Canada
Nebraska Governor Pete Ricketts

This week, I am leading a trade mission to Canada.  The importance of Canada as a trading partner that is helping grow Nebraska cannot be overstated.  Canada is Nebraska’s largest export market and fourth largest agriculture export market.  In 2016, total agricultural exports from Nebraska to Canada equaled an estimated $468 million out of a total agriculture export value of $5.4 billion.  In addition to our important trade relationship, Nebraska and Canada are both celebrating our 150th birthdays this year, a special occasion which we will be highlighting along the way!

Our historic partnership is why I chose to lead what is quite possibly the first-ever, Governor–led Nebraska trade mission to Canada.  Why travel to Canada when Nebraska already has such a great relationship?  We cannot take our best customers for granted.  Appreciation is one of the most important aspects of any partnership, so we are taking the time to thank our largest export market for their business while solidifying our current relationships with government officials and investors.  This mission can also help open new doors and new opportunities for Nebraska ag producers and businesses looking to grow.

The timing of this trade mission is critical, as negotiations between the United States, Canada, and Mexico are set to begin on the modernization of the North American Free Trade Agreement (NAFTA).  NAFTA has been pivotal to growing Nebraska agriculture, our state’s number one industry.  According to the USDA Economic Research Service, exports from Nebraska to free-trade agreement markets grew 104 percent from 2005 to 2015, with growth in NAFTA trade far outpacing our trade with other partners.  As NAFTA negotiations have begun, Nebraska ag producers and I have been working together to showcase how critical this agreement is to the future of the farm families who help grow our state.

This week, the Department of Agriculture, the Department of Economic Development, as well as ag producers will be joining the mission.  During our visit we will share the story of Nebraska and the high quality commodities produced by our farm and ranch families with current and potential investors.

While in Canada, we will sit down for a roundtable discussion with the United States Consul General for Toronto, as well as a reception and meal featuring Nebraska beef that will be hosted by the Minister Counselor for Agricultural Affairs.  Nebraska beef products are Nebraska’s number one agricultural export to Canada, totaling $138.2 million in 2015. 

My cabinet directors and I will also have the opportunity to meet directly with the Minister of the Ontario Ministry of Agriculture, Food, and Rural Affairs.  This meeting will provide us an opportunity to share our thanks for the market access Nebraska products enjoy in Canada as well as a conversation about future growth opportunities.

Additionally, we plan to meet with the Canadian Pork Council and the Canadian Cattlemen Association at the U.S. Embassy.  Pork is Nebraska’s third highest agricultural export to Canada, providing $61.3 million of exports.  We look forward to sharing Nebraska’s beef and pork story with these two organizations. 

During the trade mission, participants will also receive a number of briefings on trade issues.  The Nebraska Department of Agriculture is hosting a workshop on the Safe Foods for Canadians Act.  This workshop, which is also open to Canadian businesses, will allow for an open discussion about how the Act will change the way we export food products to Canada.  During visits with the U.S. Consulate in Toronto and the US Embassy in Ottawa, the delegation will learn more about Canada’s economic and social structures and how those affect the Nebraska manufacturing and agricultural sectors.

Trade missions like these have allowed Nebraska to build on relationships that have been helping grow our state for 150 years.  Nebraska has achieved great growth through trade over the years because of an ongoing commitment by our agriculture and business communities to raising Nebraska’s international profile.  As work begins on modernizing NAFTA, it is more important than ever that we demonstrate our appreciation for our state’s largest customer, and this trade mission will help do just that.  If you have any questions about the trade mission or any other matter, I hope you will contact my office by emailing pete.ricketts@nebraska.gov or calling 402-471-2244.



June Results Confirm Strong First Half for U.S. Red Meat Exports

U.S. pork and beef exports continued to trend above year-ago levels in June, capping a very strong first half of the year. According to statistics released by USDA and compiled by the U.S. Meat Export Federation (USMEF), exports also achieved higher values on a per-head-slaughtered basis and accounted for a steady-to-higher percentage of total production.

June beef exports were the largest of 2017, reaching 109,554 metric tons (mt) – up 11 percent year-over-year and the largest June total since 2011. Export value increased 10 percent to $602.5 million. For January through June, beef exports were up 12 percent in volume (606,876 mt) and 15 percent in value ($3.35 billion) compared to the first half of last year.

Exports accounted for nearly 13 percent of total U.S. beef production in June and 10 percent for muscle cuts only – each about even with a year ago. The ratios were the same for January through June, which was also steady with the first half of last year. Export value per head of fed slaughter averaged $264.51 in June, up 6 percent from a year ago. Through June, per-head export value was up 8 percent to $269.21.

Pork exports totaled 200,229 mt in June, up 6 percent year-over-year and the largest June volume on record, valued at $527.1 million, up 4 percent. This pushed the first-half total to 1.25 million mt valued at $3.21 billion – up 13 percent and 16 percent, respectively.

Exports accounted for 27 percent of total pork production (up more than one percentage point from a year ago) in June and 22 percent for muscle cuts only (steady with last year). For the first half, with production at a record pace, both ratios increased significantly from a year ago. The percentage of total production jumped from 25.3 percent to 27.8 percent, and for muscle cuts the increase was from 21.4 percent to 23 percent. Export value per head slaughtered in June was up 1 percent to $53.41 and the first-half average increased 12 percent to $54.09.

“In this time of large red meat production, the upward trend in per-head export value and in the percentage of production exported is especially critical to the industry,” said USMEF President and CEO Philip Seng. “These metrics confirm that we’re not simply exporting more red meat because more is available – those exports are also generating excellent returns. It was also gratifying to see that the U.S. trade deficit narrowed in June due to an expansion of exports, knowing that the red meat industry made another solid contribution toward that effort.”

Chilled beef to Asia drives first-half growth, but exports increased to most destinations
Beef exports to leading market Japan continued to gain momentum in June, with volume up 7 percent to 27,521 mt and value up 13 percent to $174.4 million (the highest since 2000). First-half exports to Japan exceeded last year’s pace by 23 percent in volume (150,812 mt) and 28 percent in value ($905.8 million). This included a 40 percent increase in chilled beef exports to 70,807 mt, valued at $511 million (up 38 percent), as the U.S. captured more than 50 percent of the chilled beef market. While demand for U.S. beef is very strong in Japan’s retail and foodservice sectors, frozen exports to Japan face a higher tariff rate through March 2018. See more details on this issue online.

June exports to South Korea were the largest since January at 14,701 mt, up 14 percent from a year ago, valued at $92.4 million (up 20 percent and the highest of 2017). First-half exports to Korea were up 13 percent in volume (83,357 mt) and 21 percent in value ($527.7 million). The U.S. also captured more than 50 percent of Korea’s chilled beef market as chilled exports totaled 18,816 mt (up 83 percent year-over-year) valued at $166 million (up 86 percent).

Other first-half highlights for U.S. beef exports included:
-    Exports to Taiwan totaled 20,376 mt (up 19 percent from a year ago) valued at $179 million (up 26 percent). This included chilled beef exports of 8,178 mt (up 19 percent) valued at $93.5 million (up 22 percent) as the U.S. captured more than 70 percent of Taiwan’s chilled beef market.
-    After a slow start to the year, exports to Hong Kong rebounded to post double-digit first-half gains in both volume (56,846, up 11 percent) and value ($357.4 million, up 17 percent).
-    Exports to Mexico increased 3 percent in volume (114,923 mt) while slipping 3 percent in value ($459.7 million). But muscle cut exports to Mexico – mainly shoulder clods, rounds and other end cuts – fared better, increasing 9 percent in volume (61,782 mt) and 2 percent in value ($353.8 million).
-    Led by a doubling of exports to Vietnam and Indonesia and strong demand in the Philippines, exports to the ASEAN region increased 85 percent in volume (20,532) and 61 percent in value to $99 million.
-    Fueled by strong growth in Chile, Guatemala and Colombia, exports to Central and South America increased 11 percent in volume (19,137 mt) and 5 percent in value ($83.8 million). Exports to Brazil, which began in late April, totaled 412 mt of muscle cuts and 651 mt of variety meat at a combined value of $2.6 million.
-    After reopening in 2016, South Africa quickly emerged as the fourth-largest destination for U.S. beef variety meat, with first-half exports (mainly livers) reaching 7,849 mt – an increase of nearly 500 percent from a year ago – valued at $6 million.

First-half pork export growth led by Mexico, Korea, South America
Pork exports to leading volume market Mexico remained on a record pace in June, increasing 19 percent year-over-year in both volume (64,712 mt) and value ($124.9 million). This pushed the first-half total to 398,565 mt (up 23 percent) valued at $731.6 million (up 29 percent). A major factor behind this increase is that Mexican consumers are eating significantly more pork, both imported and domestic. Over the past 10 years, Mexico’s annual per-capita pork consumption has increased by about one third, and is expected to reach 18 kilograms this year (carcass weight equivalent), based on USDA estimates. Over the same period, Mexico’s pork production has increased by 30 percent.

June exports to leading value destination Japan were below year ago levels, dipping by 8 percent in volume (30,401 mt) and 10 percent in value ($124.3 million). But first-half totals remained higher than a year ago at 200,175 mt (up 4 percent) valued at $810.6 million (up 8 percent). Chilled pork exports to Japan declined 2 percent to 107,032 mt, but value increased 5 percent to $501 million. The U.S. holds 55 percent of the chilled pork market in Japan and continues to face growing competition from Canadian pork.

Other first-half highlights for U.S. pork exports included:
-    Capitalizing on rapid growth in home meal replacement items and other foods that emphasize convenience, as well as duty-free status for most cuts under the Korea-U.S. Free Trade Agreement, pork exports to South Korea climbed 31 percent from a year ago to 94,545 mt, valued at $258.5 million (up 38 percent). With a strong second half, exports to Korea could exceed the record set in 2011, when Korea was facing a domestic pork shortage due to foot-and-mouth disease. This year Korea’s imports have been driven by strong consumer demand, as Korea’s domestic pork production is slightly ahead of last year’s pace.
-    While exports to China/Hong Kong fell below last year’s pace in volume (271,297 mt), value still increased 3 percent ($558.4 million). This reflected the strong price commanded for pork variety meat, as first-half variety meat exports to the region climbed 19 percent in volume (172,269 mt) and 28 percent in value ($367.2 million).
-    Led by exceptional growth in Colombia and Chile, pork exports to Central and South America were up 51 percent in volume (81,930 mt) and 56 percent in value ($200.3 million). Exports also doubled to Peru and solid increases were achieved in Honduras, Panama, Nicaragua and El Salvador.
-    Strong growth in the Dominican Republic pushed pork exports to the Caribbean up 36 percent in volume (26,984 mt) and 35 percent in value ($63.7 million). Exports also increased to the Bahamas, Trinidad and Tobago, Haiti and Barbados.
-    Larger shipments to the Philippines and Singapore helped drive exports to the ASEAN region up 20 percent in volume (23,207 mt) and 28 percent in value ($59 million).
-    Led by the above-mentioned success in China/Hong Kong, pork variety meat exports achieved exceptional growth in the first half, increasing 19 percent year-over-year in volume (286,787 mt) and 32 percent in value ($580.3 million). Additional markets contributing to this growth included Mexico, Canada, Chile, Colombia and the Philippines. Variety meat export value averaged $9.78 per head slaughtered in the first half, up $2.10 from a year ago.

Lamb exports continue to show improvement
U.S. lamb exports exceeded year-ago levels for the second straight month in June, reaching 642 mt (up 40 percent) valued at $1.75 million (up 58 percent). First-half lamb exports were still down 13 percent from a year ago in volume (3,755 mt) but increased 10 percent in value to $9.6 million. For lamb muscle cuts only, first-half exports were up 20 percent in both volume (1,079 mt) and value ($6.6 million) including year-over-year growth to Mexico, the Caribbean, Central America and Taiwan.



USMEF Statement on West Coast Port Labor Contract Extension

On Aug. 4, the International Longshore and Warehouse Union (ILWU) announced that its members have approved a three-year extension of the labor contract covering 29 West Coast ports. The contract between ILWU and the Pacific Maritime Association (PMA) now runs through June 30, 2022. U.S. Meat Export Federation (USMEF) President and CEO Philip Seng issued the following statement:

“USMEF is pleased that ILWU and PMA pursued this early contract extension, which is a positive development for U.S. exporters and for the entire U.S. economy. The severe congestion we saw in the West Coast ports in 2014 and 2015 created major logistical problems for U.S. red meat exporters and prompted some international customers to seek alternative suppliers. The contract extension helps ensure that the United States will continue to live up to its reputation as a reliable red meat supplier. It is very good news for everyone in the supply chain – from farmers and ranchers to processors and traders – and for our customers in key Asian and Latin American markets.”



Seasonal Weakness Anticipated
Stephen R Koontz, Ag and Resource Econ., Colorado State University

Fed cattle, calf, and beef prices have been strong through the spring and early summer.  Domestic demand and product movement from featuring was excellent.  And even trade volumes were strong relative to the prior year.  However, recent weeks have seen carcass values backed off of $250/cwt levels by over 20%.  Larger marketings of fed cattle will happen and fall run of the calves will start early due to dry weather in the north plains states.  What are some likely market drivers as we move into late summer?

USDA Cattle on Feed reports have shown heavy relative-to-prior-year placements since March.  Placements over this four month span have been 11-16% above the prior year.  Heavier marketings were observed in June and these will continue well through October.  The seasonal increase in slaughter weights is underway albeit starting, and luckily, 20-30 pounds behind last year.  Current carcass weights are 12-13 pounds, or about 1.5%, behind last year.  Calculations of the inventory of cattle on feed >90 days and >120 days show the volume coming and what the market will have to address this late summer and early fall.  Both of these calculated inventories are well below last year communicating that marketings have been timely to aggressive through summer.  This will continue to hold some strength in fed cattle prices.  However, the inventory of animals on feed >120 days dropped sharply while the inventory >90 increased sharply.  Showlists are clean but very big numbers are coming.  Marketings through August and September will determine market price dynamics from October into next year.  With strong marketings then prices will just soften through the fall.  While if there is any slowdown in marketings for the next two months and if showlists become abundant then prices will move down sharply.  There is considerable downside risk for cattle and beef markets and the cattle side especially.

However, the futures are price appropriately - October live cattle is at a discount to August - to show market participants that this is coming.  And prices in general have been stronger than originally forecast.  Domestic demand is likely not as strong as in the spring with the elevated featuring that was done.  But the world economy continues to post good news and trade volumes are surprisingly strong.  There was some evidence in the spring that this was policy-trade-related just-in-case buying.  But it continues to persist and therefore has some fundamental justification.  But in the end, potential bullish news is hard to find.

What do the technical say?  The sharp up-moves seen in live and feeder cattle contracts during the spring have stopped and are unlikely to continue.  Resistance was established in early May for all summer and fall contracts.  This resistance was tested and held in early June and then again in mid-July.  Any up trend that you can identify from the spring moves is broken.  Thus, seasonal weakness into the fall is in the cards on the charts.  I advocated that producers establish some price protection in my prior two contributions to this newsletter.  Those that did so should be comfortable.  And my recommendations have not changed.



USDA and SCORE Launch Innovative Mentorship Effort to Support New Farmers and Ranchers

U.S. Agriculture Secretary Sonny Perdue today signed a Memorandum of Understanding with officials from SCORE, the nation’s largest volunteer network of expert business mentors, to support new and beginning farmers. Today’s agreement provides new help resources for beginning ranchers, veterans, women, socially disadvantaged Americans and others, providing new tools to help them both grow and thrive in agri-business.

“Shepherding one generation to the next is our responsibility. We want to help new farmers, veterans, and people transitioning from other industries to agriculture,” said Secretary Perdue. “They need land, equipment, and access to capital, but they also need advice and guidance. That's what SCORE is all about.”

SCORE matches business professionals and entrepreneurs with new business owners to mentor them through the process of starting-up and maintaining a new business. USDA and its partners across rural America are working with SCORE to support new farming and ranching operations, and identify and recruit mentors with a wealth of agricultural experience.

Secretary Perdue announced the new partnership in Des Moines during the Iowa Agriculture Summit. Perdue was joined by Steve Records, Vice-President of Field Operations for SCORE in signing a Memorandum of Understanding that will guide USDA and SCORE as they partner in the mentorship effort, which will soon expand to other states.
  
“SCORE’s mission to help people start and grow vibrant small businesses is boosted by this new partnership with USDA. America’s farmers, ranchers and agri-businesses will benefit from the business knowledge and expertise SCORE can offer,” said Records. “The partnership allows both SCORE and USDA to serve more people while providing America’s farmers added support to lead to more sound business operations, create profitable farms with sustainable growth and create new jobs. We are excited at the opportunity to extend SCORE’s impact to our farmers and the agriculture industry.”
  
SCORE mentors will partner with USDA and a wide array of groups already hard at work serving new and beginning farmers and ranchers, such as the Future Farmers of America, 4-H, cooperative extension and land grant universities, nonprofits, legal aid groups, banks, technical and farm advisors. These partnerships will expand and integrate outreach and technical assistance between current and retired farmers and agri-business experts and new farmers.

This joint initiative leverages SCORE’s 10,000 existing volunteer mentors and USDA’s expertise and presence in agricultural communities to bring no-cost business mentoring to rural and agricultural entrepreneurs. This initiative will also be another tool to empower the work of many community-based organizations, cooperative extension and land grant universities, working with beginning farmers in their communities. SCORE mentorship will also be available to current farmers and ranchers. Anyone interested in being a mentor can get more information and sign up on the USDA New Farmers’ website at https://newfarmers.usda.gov/mentorship.



CWT Assists with 352,740 Pounds of Cheese Export Sales

Cooperatives Working Together (CWT) has accepted 3 requests for export assistance from member cooperatives that have contracts to sell 352,740 pounds (160 metric tons) of Cheddar cheese to customers in Asia, the Middle East, and North Africa. The product has been contracted for delivery in the period from September through November 2017.

So far, this year, CWT has assisted member cooperatives who have contracts to sell 45.388 million pounds of American-type cheeses, and 3.013 million pounds of butter (82% milkfat) to 18 countries on five continents. The sales are the equivalent of 486.712 million pounds of milk on a milkfat basis. Totals adjusted for cancellations received.

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.



The Andersons Reports Lower Sales, Net Income

The Andersons reported a second quarter 2017 net loss attributable $26.7 million, or $0.94 per diluted share, on revenues of $1 billion. During the second quarter of 2017, the company recorded a non-cash and nondeductible goodwill impairment charge of $42 million or $1.48 per share related to the Plant Nutrient segment. Adjusted net income attributable to the Company for the period of $15.3 million, or $0.54 per diluted share, was a six percent improvement over the net income of $14.4 million, or $0.51 per diluted share, on revenues of $1.1 billion recorded in the same period of 2016.

"For the third successive quarter, our Grain Group recorded significantly improved year-over-year results. The second quarter improved by approximately $20 million, primarily because the group continued to earn better space income," said CEO Pat Bowe. "These results have transpired even as low grain prices have discouraged growers from selling old crop corn, and the market is encouraging the group to hold grain to earn storage income farther into the season. The Grain Group's affiliates also improved their performance year-over-year."

Bowe adds that ethanol margins were lower year-over-year for the quarter as supply outpaced demand, and the group is still dealing with both vomitoxin-related discounts and otherwise low distilled dry grain with solubles (DDGS) values relative to corn. The Rail Group's base leasing income and utilization improved sequentially, perhaps signaling a modest market upturn.



Syngenta licenses Enlist™ events

Syngenta announced today that it has entered into non-exclusive licensing agreements with Dow AgroSciences LLC and M.S. Technologies, L.L.C. for the Enlist E3 Event in soybeans in the United States, Canada and Latin America, and the Conkesta Enlist E3 stack in soybeans in Latin America, with options for global rights for both.  Syngenta has also entered into a non-exclusive licensing agreement with Dow AgroSciences for global rights for the Enlist event in corn. Terms of the agreement have not been disclosed.

“We will now have the opportunity to incorporate these traits into our genetics to provide growers additional seed and trait options with greater genetic diversity,” said Jeff Rowe, Syngenta president of Global Seeds and North America, “This is another step in delivering on our commitment to enhance our seed offering and ensure continued choice for growers.” 

“The Enlist System of novel traits and advanced herbicides along with Conkesta, represents the most complete and effective line of weed and insect control. We are pleased to license these innovative technologies, aligning to our strategy of ensuring broad availability to farmers across the Americas who need this technology to continue advancing their productivity,” said Joe Vertin, global business leader, Enlist Weed Control System, Dow AgroSciences.

"We at MS Technologies are extremely pleased that Syngenta has chosen to license Enlist E3 soybeans and Conkesta E3 soybeans," says Joe Merschman, president of MS Technologies. "Having Syngenta on board will allow us to work jointly to deliver high-yielding elite soybean genetics and exceptional weed control to even more soybean growers."



Monsanto and Valent U.S.A. LLC Announce Expanded Partnership in Roundup Ready PLUS® Crop Management Solutions

Monsanto Company (NYSE: MON) and Valent U.S.A. LLC, a wholly-owned subsidiary of Sumitomo Chemical Company, Limited, announced today their expanded partnership in the 2018 Roundup Ready PLUS® Crop Management Solutions platform.

Several key changes provide soybean, corn and cotton growers with the most effective solutions to be more productive. Valent will offer Valor® and Fierce® brands as the exclusive preemergence PPO residual herbicides in the program. In addition, new products will be added to the program, including solutions for control of tough weeds, such as new Mauler™ Herbicide and a line extension of the longest lasting residual, Fierce, with Fierce MTZ Co-Pack. Valor SX Herbicide will again be part of the program for 2018. Rowel® Herbicide and Rowel FX Herbicide will be phased out to streamline product offerings.  Valent's line of postemergence herbicides, including Cobra® and Select Max® Herbicide with Inside Technology™, will remain in the program.

In addition, growers will have access to the latest insecticide solutions from Valent in the 2018 program. Asana® XL Insecticide, an industry leader for broad spectrum foliar insect control and Zeal® SC, a proven residual miticide, will both be offered in the 2018 program. Valent and Monsanto are pleased to offer a broader range of insecticide solutions that will help growers maximize yields and protect their acres throughout the growing season.

"We're very excited about our partnership with Valent," said Scott Burchette, Monsanto North America Crop Protection Systems Lead. "The goal of Roundup Ready PLUS Crop Management Solutions is all about partnering with industry leading suppliers to deliver simple and effective options to combat herbicide-resistant weeds. Together with Valent, we are creating even more value through expanding product offerings while creating a better experience for retailers and growers alike."

"Valent looks forward to expanding our collaboration with Monsanto and Roundup Ready PLUS for the 2018 growing season and beyond," said Trey Soud, director of row crops for Valent U.S.A. LLC. "Growers trust the Fierce and Valor brands to protect their fields against a broad spectrum of weeds, and with the addition of Zeal SC and Asana XL, we are able to uphold our commitment to creating long-term value for growers through integrated agrosolutions."

The full portfolio of Valent soybean, corn or cotton crop protection products that will be endorsed in the 2018 Roundup Ready PLUS platform include Valor EZ, Valor XLT, Valor SX, Fierce, Fierce XLT, Fierce MTZ Co-Pack, Mauler, Chateau® Herbicide, Cobra, Select Max, Asana XL and Zeal SC.