Friday May 25 Cattle on Feed + Ag News

NEBRASKA CATTLE ON FEED UP 9 PERCENT

Nebraska feedlots, with capacities of 1,000 or more head, contained 2.66 million cattle on feed on May 1, according to the USDA’s National Agricultural Statistics Service. This inventory was up 9 percent from last year.  Placements during April totaled 420,000 head, up 6 percent from 2017. Fed cattle marketings for the month of April totaled 430,000 head, up 10 percent from last year. Other disappearance during April totaled 20,000 head, up 5,000 head from last year.



IOWA CATTLE ON FEED REPORT

Cattle and calves on feed for the slaughter market in Iowa feedlots with a capacity of 1,000 or more head totaled 730,000 head on May 1, 2018, according to the latest USDA, National Agricultural Statistics Service – Cattle on Feed report. This was down 1 percent from April 1, 2018 but up 7 percent from May 1, 2017. Iowa feedlots with a capacity of less than 1,000 head had 555,000 head on feed, down 3 percent from last month and down 6 percent from last year. Cattle and calves on feed for the slaughter market in all Iowa feedlots totaled 1,285,000 head, down 2 percent from last month but up 1 percent from last year.

Placements of cattle and calves in Iowa feedlots with a capacity of 1,000 or more head during April totaled 80,000 head, a decrease of 25 percent from last month and down 16 percent from last year. Feedlots with a capacity of less than 1,000 head placed 34,000 head, down 11 percent from last month and down 17 percent from last year. Placements for all feedlots in Iowa totaled 114,000 head, down 21 percent from last month and down 16 percent from last year.

Marketings of fed cattle from Iowa feedlots with a capacity of 1,000 or more head during April totaled 87,000 head, down 6 percent from last month but up 6 percent from last year. Feedlots with a capacity of less than 1,000 head marketed 47,000 head, down 8 percent from last month and down 18 percent from last year. Marketings for all feedlots in Iowa were 134,000 head, down 7 percent from last month and down 4 percent from last year. Other disappearance from all feedlots in Iowa totaled 5,000 head.



United States Cattle on Feed Up 5 Percent
   
Cattle and calves on feed for the slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 11.6 million head on May 1, 2018. The inventory was 5 percent above May 1, 2017. This is the second highest May 1 inventory since the series began in 1996.

By State                (1,000 hd  - % May 1 '17)
Colorado .......:              940           98       
Iowa .............:               730          107     
Kansas ..........:            2,290          100         
Nebraska ......:            2,660          109      
Texas ............:            2,630          107       

Placements in feedlots during April totaled 1.70 million head, 8 percent below 2017. Net placements were 1.63 million head. During April, placements of cattle and calves weighing less than 600 pounds were 320,000 head, 600-699 pounds were 230,000 head, 700-799 pounds were 415,000 head, 800-899 pounds were 445,000 head, 900-999 pounds were 205,000 head, and 1,000 pounds and greater were 80,000 head.

By State                (1,000 hd  - % April '17)
Colorado .......:              145            94     
Iowa .............:                80            84     
Kansas ..........:              380            90      
Nebraska ......:              420           106       
Texas ............:              385            84    

Marketings of fed cattle during April totaled 1.80 million head, 6 percent above 2017.  Other disappearance totaled 63,000 head during April, 5 percent below 2017.

By State                (1,000 hd  - % April '17)
Colorado .......:             150           120    
Iowa .............:              87           106      
Kansas ..........:             420           109     
Nebraska ......:             430           110      
Texas ............:             445            99     



Heat Stress Resources 

Temperatures are climbing it's a good reminder to take the appropriate precautions to keep your cattle herd safe and well.

Key Points to Reduce Heat Stress
-    Supply access to abundant fresh water.  For every 1,000 lb of weight, cattle can require at least 20 gallons of water per day when the ambient temperature is above 80°F.
-    Provide sprinklers to wet pen floor.  Use sprinklers with large droplet size to keep pen floor and mounds cool for cattle to rest on.
-    Provide shade in pens.  Shading has shown to reduce solar heat load by 5-10°F for cattle resting under it.
-    Allow Airflow.  Move cattle away from windbreaks and allow as much airflow through the pens as possible during high heat and humidity events.
-    Process cattle in early mornings.  If cattle need to be handled, it is recommended to do it during early mornings before 10:00 a.m..

Nebraska Extension BQA Heat Stress Resources HERE...  https://bqa.unl.edu/heat-stress-resources. 



Nebraska Cattlemen Foundation Announces Scholarship Recipients

The Nebraska Cattlemen Foundation (NCF) is pleased to announce it has awarded $54,200 in scholarships to students furthering their education goals in the 2018-2019 academic year.

“The Foundation strongly believes in the importance of a sound education for tomorrow’s industry leaders,” says Scott Knobbe, president of the Nebraska Cattlemen Foundation. “Due to the generosity of many donors and the success of our Retail Value Steer Challenge fundraising project, the Foundation is able to provide this funding to these outstanding students to aid in their academic career.”

The 2018 Nebraska Cattlemen Beef State Scholarship was awarded to Hannah Esch of Unadilla. This premier scholarship is a $10,000 scholarship that was established in 2014 to support outstanding junior, senior or graduate level Nebraska resident students enrolled in a Nebraska college or university pursuing a beef industry related degree. Esch will be a junior this fall at the University of Nebraska pursuing an Animal Science degree, with minors in the Nebraska Beef Industry Scholars and Engler Agribusiness Entrepreneurship programs.

In addition to the Beef State Scholarship, the Foundation awarded 41 additional scholarships to the following students:
Chase Albers, Wisner – $1,200 Todd Ricenbaw Memorial Scholarship
Jayde Atkins, Broken Bow – $1,000 West Central Affiliate Scholarship
Mckenzie Beals, Friend – $1,200 Bill Heller Memorial Scholarship
Mekenzie Beattie, Sumner – $1,000 Retail Value Steer Challenge Scholarship
Sheldon Beierman, Albion – $1,000 Retail Value Steer Challenge Scholarship
Colten Bergt, Amherst – $1,200 Martin Viersen Range Management Memorial Scholarship
Emmet Caldwell, Edgar – $1,000 Retail Value Steer Challenge Scholarship
Corey Conway, Campbell – $1,000 Retail Value Steer Challenge Scholarship
Kailey Conway, Campbell – $1,000 Retail Value Steer Challenge Scholarship
Cassidy Curtis, Royal – $1,000 Retail Value Steer Challenge Scholarship
Payton Flower, Scottsbluff – $1,000 Retail Value Steer Challenge Scholarship
Austin Freeman, Pierce – $1,200 Nebraska Cattlemen Beef Pit Scholarship
Neleigh Gehl, Ericson – $1,000 Retail Value Steer Challenge Scholarship
Kathlyn Hauxwell, McCook – $1,200 Ron and Shirley Huss Scholarship
Colin Ibach, Sumner – $1,000 Retail Value Steer Challenge Scholarship
Devin Jakub, Brainard – $1,200 Bill Pullen Scholarship
Marissa Kegley, Kearney – $1,200 Col. Melvin Huss Memorial Scholarship
Sarah Kesterson, Bridgeport – $1,200 Donavan Yoachim Memorial Scholarship
Eric Klitz, West Point – $1,200 Bill Briggs Family Memorial Scholarship
Felicia Knoerzer, Elwood – $1,000 Retail Value Steer Challenge Scholarship
Malina Lindstrom, Elm Creek – $1,000 Retail Value Steer Challenge Scholarship
Jason Line, Miller – $1,000 Retail Value Steer Challenge Scholarship
Kelsey Loseke, Blair – $1,000 Retail Value Steer Challenge Scholarship
Shayln Miller, Norfolk – $1,000 Retail Value Steer Challenge Scholarship
Amanda Most, Ogallala – $1,200 Frank and Shirley Sibert Scholarship
Krista Ott, Wisner – $1,000 Retail Value Steer Challenge Scholarship
Kelsey Phillips, Mullen – $1,000 Retail Value Steer Challenge Scholarship
Jason Rainforth, Scribner – $1,000 Retail Value Steer Challenge Scholarship
Ralston Ripp, Kearney – $1,000 Retail Value Steer Challenge Scholarship
Jessica Rudolph, Gothenburg – $1,000 Retail Value Steer Challenge Scholarship
Alyssa Schmale, Carroll – $1,000 Retail Value Steer Challenge Scholarship
Ryan Schroeder, Lincoln – $1,200 Vance Uden Memorial Scholarship
Hannah Settje, Raymond – $1,000 Retail Value Steer Challenge Scholarship
Renae Sieck, Martell – $1,200 Vance Uden Memorial Scholarship
Isaac Stallbaumer, Oconto – $1,200 Cattlemen’s Open Scholarship
Colton Thompson, Eustis – $1,200 Clarence and Lois Jean Hartmann Scholarship
Emilye Vales, DeWitt – $1,000 Retail Value Steer Challenge Scholarship
Logan Van Anne, Gering – $1,200 Jim & Helen Gran Scholarship
Wesley Wach, Wauneta – $1,200 Robert F. Lute II Memorial Scholarship
Maverick Widdowson, Kearney – $1,000 Retail Value Steer Challenge Scholarship
Elizabeth Yrkoski, Fullerton – $1,000 Retail Value Steer Challenge Scholarship

All scholarship recipients will be recognized at the Nebraska Cattlemen Midyear Meeting in Grand Island, Thursday, June 7, during the Nebraska Cattlemen Foundation Lunch.



NFBF taking applications for NRRF Scholarship

The Nebraska Farm Bureau Foundation is now accepting applications for the Nebraska Rural Radio Foundation Scholarship in Honor of Max & Eric Brown.  This is a great opportunity for a non-traditional student!

Criteria:
- Must be 25 years old or older.
- Be legal residents of the United States.
- Show demonstrated commitment to the future of the industry of agriculture and rural communities in Nebraska.
- Be enrolled in post-secondary education institutions in Nebraska including, but not limited to - community college, technical school, or training programs.

Applications are due June 1.

Apply here: https://nefbfoundation.org/images/FOUndation/PDFs/2017-Application-Rural_Radio_Foundation_Scholarship.pdf



Iowa to Mark 5th Anniversary of Nutrient Reduction Strategy
A broad cross section of Iowa political, agricultural and community leaders will celebrate the fifth anniversary of the Iowa Nutrient Reduction Strategy at 10:30 a.m. on May 29 at the Iowa State University BioCentury Research Farm, 1327 U Ave. near Boone.

Iowa Governor Kim Reynolds, Iowa Secretary of Agriculture Mike Naig, Bill Ehm, Environmental Services Division Administrator for the Iowa DNR, Hongwei Xin, Interim Director of the Iowa Nutrient Research Center and Assistant Dean for Research with the College of Agriculture and Life Sciences at Iowa State University, and EPA Region 7 Administrator Jim Gulliford will speak at 11 a.m. to attendees.

The event is to celebrate the many farmers, landowners, communities, business, stakeholders and partners that have helped support the Iowa Nutrient Reduction Strategy over the past five years and share the vision for the Strategy over the next 5 years and beyond.



Aspiring Iowa Ag Leaders Embark on Mission to Japan and Vietnam

Members of the Iowa Corn Leadership Enhancement and Development (I-LEAD) program Class 8 traveled to Japan and Vietnam on an international trade mission in March to gain a greater understanding and appreciation of the global food system and to develop a deeper admiration for the views of U.S. agriculture’s international customers. The mission served as the capstone event as Class 8 wraps up their two-year program. Iowa Corn is now accepting applications for I-LEAD Class 9 at http://www.iowacorn.org/ilead. Iowa Corn developed the I-LEAD program in recognition that the future of Iowa agriculture depends on developing leaders who have a passion for agriculture.

“It was a once in a lifetime opportunity,” stated ILEAD Class 8 Member TJ Page. “I would absolutely recommend it to anyone. I grew both personally and professionally from the experience. During the mission, we discovered how important agriculture is to each of these countries and what they import and export with the United States. We saw first-hand the work of U.S. Grains Council and the U.S. Meat Export Federation and how it translates back from the Iowa Corn Promotion Board’s investments.”

I-LEAD Class 8 began their journey in Vietnam with a briefing from a USDA Foreign Agricultural Service (FAS) representative about the importance of Vietnam to U.S. agriculture exports.  Page said you could tell that Vietnam is a market ready to expand. “Outside China, it is one of the fastest growing economies, with additional economy prosperity, there will come an even greater need for protein. It is estimated that by the year 2050, Vietnam’s population will increase by 40 million and currently 60 percent of family income in Vietnam goes to food. They buy food daily and there is very little cold storage. There is also a huge market potential for U.S. ethanol. The sheer number of mopeds in South Vietnam was amazing. They cause 30 percent more emissions than a standard vehicle, and you see people wearing masks because of the air pollution. That’s a fantastic opportunity for cleaner-burning ethanol.”

Vietnam buys about $3 billion in U.S. agriculture products every year.  Many expect that number to increase as the country’s population increases and the citizens gain more wealth.  Vietnam has signed onto Trans-Pacific Partnership (TPP), so this will put the U.S. at a possible disadvantage with other competing countries importing to Vietnam.  

The class toured the Interflour port to see where bulk ships of imported grains offload into Vietnam. Vietnam buys about 8 million metric tons of corn and 1.2 million metric tons of DDGS every year.  The class also visited an ethanol plant outside of Ho Chi Min City.  In 2007, Vietnam passed an E5 ethanol mandate but has been in a trial period until 2018. The class also had dinner with grain buyers from Vietnam.  They discussed the opportunities and challenges the grain buyers face when importing corn.

“The mission provided class members the opportunity to meet with grain buyers and explore the region’s food, feed and fuel needs,” said Iowa Corn Growers Association Director Roger Wuthrich, a farmer from Bloomfield. “We gained insights about their ethanol industry and opportunities to increase ethanol blends.”

Next, I-LEAD Class 8 traveled to Tokyo, Japan which currently has the 3rd  largest GDP in the world, and a population of 130 million people.  However, due to aging citizens, the population is expected to decrease to 90 million people by 2060.  Japan also has a very open trade policy with trade agreements with many of America’s agricultural competing countries.

“We can learn a lot from Japan’s culture, the respect they convey to one another and the cleanliness of their cities,” explained Page. “History and culture are extremely important to the Japanese. It was important for us to get an understanding of the culture before meeting with Japanese companies.”

The class explored the AEON supermarket to understand how corn and meat products are sold in stores.  Page said Japan shoppers recognize U.S. products on the store shelves and will pay more for quality products. He said U.S. products have a good reputation for quality there.

They then traveled to Yamanashi Prefecture and had a courtesy call with the Vice  Governor.  Following a typhoon that hit  Japan in 1959, Iowa sent over hogs and corn to help the citizens of Yamanashi. The citizens, grateful for the aid, formed a sister-state relationship with Iowa which has lasted ever since.  The class learned about this relationship on their visit. 

One of the final stops in Japan included a tour of an agricultural high school.   Half of the high school graduates will attend college and the other half will enter the workforce. “When team members showed the students photos of their farms, they were amazed at the size of their operations. We were impressed by their high-tech classrooms and their student-run ice cream shop business,” said Page.

While on the mission, class members blogged about their experience, you can view their blog at http://www.iowacornstalk.com/.



SENATE COMMITTEE APPROVES AGRICULTURAL FUNDING BILL

The Senate Appropriations Committee this week approved the fiscal 2019 Agriculture, Rural Development, Food and Drug Administration, and Related Agencies bill on a 31-0 vote. The legislation provides $145.1 billion in funding for fiscal 2019 – which begins Oct. 1 – to support federal agriculture, conservation and nutrition programs, $6.1 billion above the president’s budget request. Among the departments the measure funds are the U.S. Department of Agriculture’s Food Safety and Inspection Service, the Animal and Plant Health Inspection Service, the Agricultural Research Service and the National Institute of Food and Agriculture. The Senate committee approval comes after the House Committee on Appropriations approved its version of the bill last week.



Expo Offers Information on Manure

North Dakota livestock producers and custom animal manure applicators will have a chance to improve their knowledge of manure nutrient use during the 2018 North American Manure Expo.

North Dakota State University Extension has teamed up with South Dakota State University, SDSU Extension and regional partners to host the event, which will be Aug. 15-16 at the Swiftel Center in Brookings, S.D.

"The North American Manure Expo will be a great opportunity for producers and custom applicators to learn about topics such as using manure as a crop fertilizer, nutrient management planning, soil health and water quality," says Mary Berg, Extension livestock environmental management specialist at NDSU's Carrington Research Extension Center.

The program will include a trade show; a manure agitation demonstration; a pump school; and educational sessions on topics including manure spreader calibration, manure-spreading equipment, water quality impacts of manure application during the winter, manure pit safety, spill prevention and response, and the economic value of manure as it relates to soil health. Participants also may take tours on moving manure on dairies, manure management systems and swine manure storage.

The expo is free of charge, but organizers encourage those planning to attend to preregister. The tours cost $20 and registration is required.  Details are here... http://www.manureexpo.org/. 



Dairy Farmers Have Until June 1 to Apply for Improved Safety Net under Dairy MPP

The U.S. Department of Agriculture (USDA) reminds dairy farmers of the June 1 deadline to enroll in the improved Margin Protection Program for Dairy (MPP-Dairy).  Many producers will see payments in early June, depending on the coverage they elect.

The program protects dairy producers by paying them based on the difference between the national all-milk price and the national average feed cost.  The 2018 Bipartisan Budget Act made several changes to the safety net program to provide better protections for dairy producers from shifting milk and feed prices.

“MPP-Dairy is an important, improved safety net tool for the dairy industry,” said Bill Northey, Under Secretary for Farm Production and Conservation. “We encourage all dairy producers to carefully weigh their options and make their way to one of our 2,100 FSA county offices nationwide to discuss signing up for the program before the June 1 deadline.”

Updates include:
-    Calculation of the margin period is monthly rather than bi-monthly.
-    Covered production is increased to 5 million pounds on the Tier 1 premium schedule, and premium rates for Tier 1 are substantially lowered.
-    An exemption from paying an administrative fee for limited resource, beginning, veteran, and socially disadvantaged producers. Dairy operators enrolled in the previous 2018 enrollment period that qualify for this exemption under the new provisions may request a refund.

Signup for 2018 will be retroactive to Jan. 1, of this year.  Margins for February and March 2018 have already been announced and payments for those months, along with potential payments for April, will be issued in June based on producer elections.

All dairy operations must make new coverage elections for 2018, even if the operation was enrolled during the previous 2018 signup period. Dairy producers should use the MPP-Dairy Decision Tool for support in making related enrollment decisions.

All dairy operations interested in MPP-Dairy coverage must sign up during the enrollment period and submit form CCC-782 to FSA to enroll. Dairy operations may still “opt out” by not submitting a form.

For more information, visit www.fsa.usda.gov/dairy.



Dairy Outlook Report Continues to See Optimism for the Future

Just in time for summer, dairy producers are slowly starting to reap the benefits of good domestic sales and stronger exports. That's the assessment of Dr. Bob Cropp with the University of Wisconsin-Extension. In his monthly Dairy Situation and Outlook report, the professor emeritus said May is already experiencing increases in dairy product prices after exports set a record high in March on a total volume basis surpassing the previous record set in early 2014.

"If these dairy product prices can hold, average May prices compared to April on the CME could average about 4 cents per pound higher for butter, about 14 cents for cheddar barrels, four cents for 40-pound cheddar blocks, eight cents for nonfat dry milk, and three cents dry whey," Cropp noted. "As a result the May Class III price would be near $15.25 compared to $14.47 in April the low of $13.40 back in February. The May Class IV price would be near $14.45 compared to $13.48 in April and the low of $12.87 back in February."

His summary further stated that the price of butter, cheese, nonfat dry milk and dry whey remain lower than and competitive with world market prices. But milk prices are expected to strengthen and possibly top out in October or November.

"The degree of strength will continue to depend upon the level of milk production and dairy exports," he said. "The summer weather, quality of forages harvested and the condition of the corn and soybean crop that will impact feed costs will have a bearing on milk production this summer, fall and into winter."

Meanwhile, the USDA's recent April milk production report also shed some positive news for milk prices. Compared to April 2017, milk production was just 0.6-percent higher and milk cow numbers declined by 2,000 head from the month earlier. Cropp has been saying for months that milk production will need to slow down if prices are going to catch its footing again.

All told, the retired professor says the Class III milk price could reach near $16 by June and reach even higher in July and beyond. Cropp further expects dairy margins to improve, but that depends on what feed prices do over the remainder of the year.



U.S. Ethanol Exports Running Above Year-Ago Levels

For the 2017/18 marketing year, U.S. year-to-date exports of corn-based ethanol reached approximately 982 million gallons, up 16 percent from the past year, according to the USDA's Foreign Agricultural Service.

Although Brazil imposed a 20 percent tariff (40 million gallons per quarter) on imports of U.S. ethanol at the beginning of the marketing year, it has not affected demand as expected.

Brazil continued as the top importer of U.S. ethanol, with 348 million gallons, up 13 percent from last year.

U.S. exports of ethanol to China, currently the fourth largest importer of U.S. ethanol, reached 77 million gallons, up 57 percent compared to last year.

Year-to-date exports of ethanol to Europe and South Korea are also up compared to the same time last year.



New Study: ‘Efforts to Limit HPO Would Increase Risks to Farmers’

Just before the U.S. House of Representatives was set to vote on a Farm Bill amendment that would’ve crippled crop insurance, a Kansas State University economist sent key policymakers a note alerting them to a new study that shed light on the negative impact of reducing revenue insurance coverage.

The study he circulated was not produced by Kansas State, but its contents were so timely and so significant, that he felt compelled to help its authors at the University of Illinois spread the word.

That paper, by Illinois professors Gary Schnitkey and Jonathan Coppess, examined how farmers use revenue crop insurance tools like the Harvest Price Option (HPO) to help them forward contract their commodities.

“Recent criticism of crop insurance suggests that amendments could be placed in the Farm Bill to curtail HPO coverage,” the authors wrote.  “As a result, understanding farmers pre-harvest hedging activities is important.”

Very little information existed about how farmers use these kinds of techniques, so Schnitkey and Coppess began their work with a survey of Midwest growers.

“Survey results indicate that farmers use what can be termed prudent hedging strategies prior to harvest for marketing their crops,” the authors explained.  In fact, the survey found that 84% of Midwest farmers hedged a portion of their anticipated crop.

The study succinctly explained how it works:
Pursuant to a forward contract, a farmer agrees to deliver grain to a country elevator or processor at some point in the future, often near harvest time, but based on futures market prices at the time of the contract. This legally-binding contract locks in the price for the delivered grain as a hedge against lower prices at the time of delivery. While advantageous to the farmer in terms of protecting against lower prices, it also comes with risks that prices will increase, often as a result of lower yields for the crop nationally. In extreme situations, a farmer with significant yield losses may not have enough bushels to fulfill the contractual obligations and will need to purchase bushels to make delivery; bushels purchased in such a situation could well be at a higher price than the farmer contracted.

And that’s where HPO comes in.  Farmers pay more for the insurance option. It indemnifies losses at harvest-time prices rather than planting-time prices, enabling farmers to purchase enough commodity off the open market to fulfill their forward contract.

Without access to HPO, as some agricultural opponents are advocating, farmers would reduce pre-harvest hedging, the study found, and introduce even more risk into farming.  This is particularly troubling considering the survey also found that the farmers who most use these techniques also report to obtain the bulk of their families’ incomes from the farm.

“In other words, those impacted the most by this policy change (eliminating HPO) are those who most rely on farming for their family income,” the study concluded.  “Congressional efforts to limit HPO would increase risks to farmers.”

Lawmakers in the House overwhelmingly defeated the amendment designed to harm crop insurance, though it still needs to pass the Farm Bill.  The Senate is slated to begin its Farm Bill deliberations soon, where critics are again expected to attack HPO and other components of farmers’ primary risk management tool.